The South Coast Water District announced on Thursday morning, April 11, the potential to earn roughly $39.9 million over the next 15 years for production of water through its Doheny Ocean Desalination Project, thanks to a new agreement between Southern California water agencies.
The roughly $140 million seawater desalination plant aims to produce 5 million gallons of water per day (MGD), equal to 5,600 acre-feet (AF) per year. On Monday, April 8, the Metropolitan Water District of Southern California Board of Directors authorized entry into a Local Resources Program (LRP) Agreement with the SCWD and the Metropolitan Water District of Orange County (MWDOC) that would provide incentive payments for producing up to 5,600 AF annually.
A draft LRP from 2014 stated the agencies agreed on the mutual benefits of local water projects that would supplement Metropolitan’s imported potable water, that Metropolitan wanted to contribute to increased use of local water supplies by providing a financial incentive, and that funding would be dependent on the delivery and verification of production of desalinated water.
“MWDOC and SCWD believe that Metropolitan’s continued financial contribution toward the cost of the Project will make Project operation economically viable, and both agencies are committed to implementation of the Project,” the document read.
Among three incentive payment structure options, SCWD chose a “sliding scale” option that would provide up to $475 per acre-foot produced per year.
“Although the Project will anticipate a minimum online percentage of 95%, equating to a minimum annual delivery of 5,321 AF, it is planned and required that the Project will be capable of producing and distributing 5,600 AF per Year for use by its End Users,” the document read. “Therefore, the value of 5,600 AFY is being proposed as the Allowable and Ultimate Yield.”
The staff report for the Metropolitan board item also detailed how the project would reduce future demands on the agency for imported water supplies and decrease the burden on the agency’s infrastructure.
Before the Metropolitan board’s April 9 approval, the MWDOC’s Board of Directors also approved the LRP at an April 3 meeting. During the meeting, according to SCWD’s Thursday press release, SCWD Director Bill Green referenced the excitement associated with the agreement and thanked MWDOC directors for their assistance in the permitting process.
“MWDOC Director Megan Yoo-Schneider expressed that ‘this is an exciting moment given the key role Doheny plays for Orange County’s overall reliability, and it underscores the importance of the project for the entire region,’” the release added.
SCWD has steadily progressed on the project’s development in recent years, earning the support from numerous regulatory agencies that has allowed the district to move toward the project’s construction.
The Dana Point Timespreviously reported in March that SCWD completed geotechnical testing and monitoring in February, seeks to award a contract for the project’s design, build and operation in May, and is actively working to bring in project partners.
SCWD anticipates the desalination plant will begin producing water in 2028, according to Assistant General Manager Marc Serna.
More information about the Doheny Ocean Desalination Plant can be found at scwd.org.