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									                                 Seawater Desalination:
                                 An Ocean of Opportunity
                                 This document is intended as an overview of the issues addressed in the Draft Recirculated
                                 Environmental Impact Report (EIR) prepared by the City of Huntington Beach released in April
                                 2005.

                                 This overview document addresses the following issues:

                                 •   Why this water treatment facility is needed

                                 •   The ways this facility will benefit both Huntington Beach and Orange County

                                 •   The quality of the desalinated drinking water

                                 •   The ability of the water treatment facility to operate with or without the generating station

                                 •   Ensuring the protection of the coastal environment

                                 •   Analyzing the growth potential related to the water treatment facility

                                 •   The remediation and beautification of the area through tank removals and extensive new
                                     landscaping

                                 •   The conceptual water delivery pipeline alignments



“If we could produce fresh
water from salt water at a low
cost, that would indeed be a
service to humanity, and would
dwarf any other scientific
accomplishment.”

John F. Kennedy
1961




  i
Project Overview

Seawater Desalination:                            •   It will create 18 full-time jobs, 2,000   “Making sure we have the
A limitless supply of safe and                        construction jobs and 322 indirect        parks, the police department,
                                                      jobs, bringing prosperity and tax         the fire department and all the
reliable drinking water                                                                         other assets that make a great
                                                      revenue to the city.
                                                                                                city, is vital. And two million
•   Desalination is a state of the art water                                                    dollars a year in tax revenue
    purification process that removes salt         •   Poseidon Resources will install           helps us secure that future for
    and other impurities out of ocean water.          new landscaping and pay for street
                                                                                                Huntington Beach.”
                                                      improvements for both Newland Ave.
•   Desalinated seawater is as pure as any            and Edison Way.
                                                                                                Charlie Bunton
    bottled water on the shelves of your                                                        Huntington Beach
    grocery store.                                •   Three old, rusty 40-foot oil tanks        Chamber of Commerce
                                                      will be replaced with low-profile
•   Cruise ships, navy vessels and countries          architecturally pleasing water
    throughout the world use seawater                 treatment facilities.                     A Guaranteed Water
    desalination safely and successfully                                                        Source for Huntington
    every day.                                    •   Poseidon has offered to build the         Beach
                                                      city a needed 10-million gallon water
•   Seawater desalination would provide               storage tank valued at approximately
                                                                                                In case of an emergency,
    Orange County drought-proof water                 $14 million.
    “insurance.”                                                                                Huntington Beach will
                                                  •   Only through a private company            automatically have
Benefits for Huntington Beach                          will the city maintain oversight and
                                                      receive tax revenue. Additional           access to the desalinated

•   Poseidon Resources will constantly                benefits are under consideration by        seawater.
    and carefully protect and monitor the             the city.
    Huntington Beach ocean water, as it is
    the source for its drinking water.            Local Control - Public Oversight -
                                                  No Cost to Taxpayers
•   Because Poseidon Resources is a
    private company, Huntington Beach             •   Poseidon Resources will enter into
    will receive approximately $1.8 million           a long-term partnership with the
    annually in property tax revenue from the         community through a guaranteed
    desalination facility with little demand on       contract that specifies all tax revenue
    city services.                                    will continue even if there is a change
                                                      in ownership.
•   Huntington Beach will have an
    opportunity to receive this new, high-        •   The project will have extensive and
    quality water supply.                             ongoing public agency oversight.
                                                      Poseidon Resources must obtain
                                                      permits, approvals, or lease

    BOTTOM LINE
    This seawater desalination facility will bring the City of Huntington Beach a guaranteed
    fresh drinking water source in case of emergency, jobs, and about $1.8 million annually                                 ii
    in property tax revenue.
                                  Project Overview
                                      agreements from every one of the                    facility, which will go into the city’s
                                      following public agencies before the                general fund, which may enhance police
                                      water treatment facility can be built.              and fire protection or improve the city’s
                                                                                          parks and libraries.
                                      °   City of Huntington Beach
                                      °   California Coastal Commission               •   Huntington Beach will receive additional
                                      °   State Department of Health Services             funds from annual franchise payments
                                      °   Santa Ana Regional Water Quality Control        for using City streets for pipeline
                                          Board
                                                                                          installation and operation.
                                      °   South Coast Air Quality Management
Today 20% of California                   District
                                      °   U.S. Army Corps of Engineers                •   The Metropolitan Water District (MWD),
residents are served water                                                                which provides imported water for
                                      °   Caltrans
managed by private water              °   County of Orange                                Southern California, is supporting local
                                      °   City of Costa Mesa                              seawater desalination projects like the
companies with public
                                      °   Mesa Consolidated Water District                one in Huntington Beach by providing a
oversight.                            °   Municipal Water District of Orange County       $250 per acre-foot subsidy to local water
                                      °   Metropolitan Water District of Southern         agencies.
                                          California
                                      °   California State Lands Commission
                                                                                      •   As the cost of imported water is
                                      °   Local water agencies
                                                                                          rising, the cost of desalinated water is
                                      °   Orange County Sanitation District
                                                                                          decreasing. Within a few years after
                                                                                          the water treatment facility has been
                                  •   Poseidon Resources will pay for all costs
                                                                                          operating, the cost of desalination is
                                      related to construction and operation of
                                                                                          expected to be equal to or less than the
                                      the facility. No public funds are needed.
                                                                                          cost of imported water.
“Tree ring records and other          There is no risk to the taxpayers.
data suggest the West may
be in for longer, drier periods   •   Because the ocean provides a consistent
in the coming decades, some           and stable water supply, water customers
experts say.”                         will have more price certainty because
                                      water rates won’t fluctuate based on
Copley News Service
                                      rainfall or imported water availability.
August 16, 2004

                                  •   Huntington Beach will receive tax
                                      revenue estimated to be $1.8 million
                                      annually from a private water treatment




                                      BOTTOM LINE
                                      Poseidon Resources will use only private funds to finance, build and operate the water
  iii                                 treatment facility and fund other city improvements at no cost to the taxpayers.
Table of Contents
Orange County Water Supply ...............................................................................................1            “Desalination must become
                                                                                                                                       part of our water solution.”
Project Description ...............................................................................................................2
Complying with City Regulations .........................................................................................4             Michael Chrisman
                                                                                                                                       California Secretary of
Protecting Our Coastal Environment .....................................................................................5              Resources
                                                                                                                                       March 4, 2005
Beautification of Site Location ..............................................................................................8
Relationship with Generating Station ...................................................................................9
Providing Water for the Next Generation ............................................................................10
Safe and Clean Drinking Water ...........................................................................................11
Pipeline Routes and Underground Pump Stations .............................................................12
Running a Quiet and Clean Water Treatment Facility ..........................................................13
Energy Consumption ..........................................................................................................14
Temporary Impacts During Construction ..........................................................................15
One Piece of the Puzzle ......................................................................................................16
Alternatives to the Water Treatment Facility .......................................................................17
Glossary of Terms ..............................................................................................................19




Huntington Beach Water Treatment Facility
419 Main Street, Suite A, Huntington Beach, CA 92648-9942 • Tel.714.754.1234 • www.hbfreshwater.com                                                               iv
                                                Orange County Water Supply

                                                Project Need and Objectives
                                                Section 3.4

                                                The project meets Orange County’s water                                       •   The Metropolitan Water District of
                                                needs in four different ways:                                                     Southern California (MWD) through its
                                                                                                                                  Integrated Resources Plan (IRP) and
                                               A
                                               A.    The project would provide Orange County with
                                                      increased water supply reliability during times of
                                                                                                                                  the Municipal Water District of Orange
                                                                                                                                  County (MWDOC), which are the public
                                                      drought shortages in other water supplies.
Project Objective                                                                                                                 water agencies responsible for providing
                                               BB.   The project would replace imported water                                     Southern California and Orange County
                                                      supplies lost by Orange County to statewide and                             respectively with imported water, are
“To provide a drought-                                environmental needs.                                                        planning for seawater desalination to
proof, high quality, new
                                                                                                                                  meet the long-term water supply needs
potable water supply to                        C
                                               C.    The project would provide a new water supply
                                                                                                                                  of the area.
                                                      source to accommodate Orange County’s
residents and businesses
                                                      increasing water needs as shown in the water
in Huntington Beach and                               plans adopted by state, regional and local water                        •   Approximately 50% of Orange County’s
throughout Orange County.”                            agencies.                                                                   water supply is provided by the county’s
                                                                                                                                  groundwater basin, which is managed
Diversified Water Supply Portfolio
                                               D
                                               D.    The project would provide a new source of
                                                                                                                                  by the Orange County Water District
                                                      supply, thus allowing operational flexibility in
                                                      managing the amount of groundwater pumped                                   (OCWD). The other half of our local
                                                      from underground aquifers. This would assist in                             water supply is imported from the
          Groundwater                                 protecting the groundwater basin from seawater                              Colorado River and the State Water
                                                      intrusion and/or replace groundwater supplies
                                                                                                                                  Project and is managed locally by
   Imported                    Desalination           vulnerable to overuse.
   Water                                                                                                                          MWDOC.
                              Recycled Water
                                                     Orange County’s Part in the IRP *                                        •   According to OCWD, which is
                        Conservation
                                                     MWD’s Expectation from Orange County                                         responsible for the county’s groundwater
“Desalinated water gradually                    1,000,000                                                                         basin, Orange County’s aquifer is
will become cheaper, and at the                  900,000                 Conservation is expected to                              overdrafted by more than 100 billion
same time, reduced allocations                   800,000                 save 84,000 acre-feet in 2005
                                                                                                                                  gallons.
                                                                         and 148,000 acre-feet in 2025
of Colorado River water and                      700,000

higher energy rates will drive up                600,000

imported water costs. Prices                     500,000                                                                      •   The federal government is limiting
are expected to intersect in
                                                 400,000                                                                          the amount of Colorado River water
about a decade.”
                                                 300,000                           Local Supply is expected to grow
                                                                                   from 350,000 acre-feet in 2005
                                                                                                                                  California is permitted to import.
                                                 200,000
                                                                                   to 512,000 acre-feet in 2025
                                                 100,000

Kevin P. Hunt
                                                       0                                                                      •   According to the California Department
General Manager
                                                                2005                                                   2025
                                                                                                                                  of Water Resources (DWR), the 1976-
Municipal Water District of                                           Met Projected Conservation in OC
                                                                                                                                  77 drought cost the state $2.5 billion in
Orange County                                                         Met IRP Expected Local Supply in Orange County              reduced gross revenue ($6.5 billion at
                                                              * Integrated Resources Plan (IRP)                                   today’s cost).
Orange County Register
April 4, 2005
                                                      BOTTOM LINE
                                                      Orange County must diversify its water supply. Public water agencies agree that
  1                                                   desalination is an important piece of the region’s water portfolio.
Project Description

Purpose of EIR                                                 Project Description                                “Besides its water expertise,
Section 2.1                                                    Section 3.0                                        Poseidon takes on much of the
                                                                                                                  risk of building desalination
                                                                                                                  plants – a great benefit to
The Draft Recirculated Environmental Impact                    The proposed Seawater Desalination
                                                                                                                  municipalities facing severe
Report, written by a nationally-respected,                     Project at Huntington Beach would
                                                                                                                  budget shortfalls.”
independent environmental research firm                         produce 50 million gallons of drinking
under the guidance of the City of Huntington                   water per day. After up to 500 million
                                                                                                                  Business Week
Beach, describes the purpose and need                          gallons of screened seawater passes
                                                                                                                  May 1, 2003
for the project, the potential environmental                   through the Huntington Beach Generating
impacts of the project and suggests feasible                   Station to cool its condensers, a
mitigation measures.                                           fraction of that water (approximately
                                                               100 million gallons) would be diverted
On December 15, 2003, the Huntington                           to the water treatment facility. Using a
Beach City Council voted to deny certification                  reverse osmosis desalination process,
of the original EIR citing a lack of sufficient                 50 million gallons would become high-
information regarding marine biology, growth                   quality drinking water for the residents
inducement, entrainment and impingement,                       and businesses of Orange County
and product water compatibility.                               and 50 million gallons would become
                                                               concentrated seawater, which would be
In the Recirculated EIR, a substantial amount                  mixed with up to 400 million gallons of
of information has been added to address                       seawater before flowing back into the
those concerns. After additional research,                     ocean.
scientists have concluded that the project
does not have any long-term impacts.

The Recirculated EIR meets the requirements
of the California Environmental Quality Act
(CEQA).
                 Inside a reverse osmosis water treatment facility                                        Artist Rendering of Administration Building




                                                                                                                                                2
                                                         Project Description

                                                         Project Location                                Project Schedule
                                                         Section 3.1                                     Section 3.5

                                                         The water treatment facility will be            Planning and EIR analysis
                                                         approximately 11 acres in size and located      3 yr. (2002-2005)
                                                         on the site of unused oil storage tanks next
                                                         to the Huntington Beach Generating Station      Obtaining permits and entitlements
                                                                                                         1 yr. (2006)
                                                         to the southwest, the Huntington Beach
                                                         Channel to the east, a fuel oil storage tank    Project construction
                                                         to the north, a wetland area to the southeast   2 yrs.(2007-08)
Why Huntington Beach?                                    and an electrical switchyard to the west.
Existing infrastructure available
                                                                                                         Operational and on line in 2008

Proper Zoning

Proximity to ocean source water

Insignificant Environmental
impacts

Proximity and access to regional
water distribution pipeline


“Desalination is a concept and a
technology on which California
must begin to rely.”

Richard Polanco
Assemblyman
D - Los Angeles


      1    Huntington Beach Generating Station
      2    Pacific Holdings Storage Tank Facility
      3    Ascon/Nesi Landfill
      4    Edison High School
      5    Edison Community Center/
           Cannery Street Landfill (closed)
      6    Mobile Home Parks
      7    Open Space/Wetlands
      8    Project Site
      9    Distillate Fuel Storage Tank
      10   South Fuel Oil Storage Tank
      11   East Fuel Oil Storage Tank
      12   West Fuel Oil Storage Tank
      13   North Fuel Oil Storage Tank

      Sources: Site Vicinity Map, Exhibit 3-2,
               Draft Recirculated EIR for the Seawater
               Desalination Project at Huntington
               Beach.




  3
Complying with City Regulations

Existing Site Conditions                                                                        “The future is local and
Section 4.0 and Appendix Q                                                                      regional projects involving
                                                                                                water efficiency, water re-use
                                                                                                and ocean desalting (emphasis
Land Use                                          Huntington Beach Generating Station
                                                                                                added).”
This proposed water treatment facility is         Future Operations
consistent with city zoning regulations for the                                                 Ron Wildermuth
site:                                             •   HBGS Units 3 and 4, which had             Spokesperson
                                                      been shut down by Southern                Orange County Water District
•   The proposed seawater desalination                California Edison in 1995 have been       Orange County Register
                                                                                                April 17, 2003
    project is a permitted use.                       refurbished and were placed in
                                                      operation in July of 2002 and August
•   Zoning for this use was reaffirmed in the          of 2003, respectively.
                                                                                                No zoning or land-use
    1996 General Plan Amendment and in
    the January 2003 Coastal Commission           •   In 2001 these units received a            variances or waivers have
    approval of the zoning designation.               certificate from the California Energy     been requested or are
                                                      Commission (CEC) that allows them
•   The proposed project site would be                to operate for an initial period of ten   needed.
    situated in an area where there are               years with conditions.
    unused oil storage tanks.
                                                  •   Two of the four units at the HBGS
                                                      have received “Reliability Must Run
                                                      (RMR)” contracts for each of the last
                                                      four years.

                                                  •   There is a power contract between
                                                      the State of California and Williams
                                                      Energy Marketing and Trading that
                                                      relies on HBGS and extends through
                                                      2018 as well as a separate contract
                                                      with Southern California Edison
                                                      (SCE).




    BOTTOM LINE
    City zoning permits a water treatment facility on this site. A private company is
    required to comply with city zoning requirements and contribute to the city’s tax base.                              4
                                          Protecting Our Coastal Environment

                                          Ocean Water Quality and Marine Biological Resources
                                          Section 5.10 and Appendix C


                                          SALINITY DISCHARGE

                                          •   The outfall occurs a quarter-mile off          •   Dr. Scott Jenkins, Ph.D. of the Scripps
                                              shore where the saline discharge and               Institution of Oceanography, has
                                              the ocean water discharge are mixed in             determined that the environmental effects
The Goby is one of several common,
                                              the open ocean. Even under worse-case              of the salinity discharge are insignificant
non-endangered marine species that
live in the water off Huntington Beach.       conditions, the salinity level would vary          due to the mixing from the open ocean
                                              less than 10% from the ambient seawater            wave action.
Information in this section of the            a short distance from the end of the pipe.
EIR was compiled by the following
scientists and scientific organizations:
                                          •   Most marine organisms living near              •   Dr. Jenkins’s and Dr. Graham’s analyses
Dr. Jeffrey B. Graham, Ph.D.,                 Huntington Beach can also be found                 and conclusions have been peer
Scripps Institution of Oceanography
Dr. Scott A. Jenkins, Ph.D.,                  elsewhere in the Southern California               reviewed by Dr. Stanley Grant, Professor
Scripps Institution of Oceanography           Bight where salinities are naturally               of Environmental Engineering at UC
Tenera Environmental
MBC Applied Environmental Sciences
                                              greater than what would occur in the area          Irvine and MBC Applied Environmental
State Water Resources Control Board           surrounding the desalination discharge             Services, the city’s marine biological
                                              pipe.                                              science consultant.
The models used in this EIR are the
scientific standards that are accepted
by state and federal agencies.            •   There are no endangered species or kelp        •   Any chemicals used to clean the
                                              beds in the Huntington Beach waters.               desalination membrane screens will
                                                                                                 be discharged to the Orange County
                                          •   The ocean floor is sandy. There is no               Sanitation District, not to the HBGS
Environmentally Safe                          rocky substrate for organisms to form              outfall pipe.
Pre-treatment                                 fixed habitats. Floating and moving
                                              organisms move through the higher              •   The Regional Water Quality Control
Poseidon Resources will pre-                  salinity level within 10 minutes. Dr.              Board will have additional monitoring and
treat the ocean water with iron               Jeffery Graham, Ph.D. of the Scripps               regulatory oversight.
and sulfate to settle out the
                                              Institution of Oceanography has
solids in the seawater.
                                              determined that no floating or moving
Iron and sulfates are chemical                organisms will be affected due to the
compositions that are found                   elevated salinity level.
naturally in abundance in ocean
water.



ENVIRONMENTAL IMPACT

LESS THAN SIGNIFICANT

                                              BOTTOM LINE
                                              Putting saltwater back into the ocean does not harm the coastal environment.
  5                                           Poseidon will carefully monitor and protect the ocean water since it is their source for
                                              drinking water.
Protecting Our Coastal Environment

Ocean Water Quality and Marine Biological Resources                                           “Desalination will create
Section 5.10, 4.5 and Appendix E                                                              a drought-proof supply
                                                                                              of water”
BEACH HEALTH                                                                                  Bob Yamada
                                                                                              Seawater Desalination
•   All cleaning chemicals used for the water        the adjacent wetlands as the likely      Program Manager
    treatment facility are sent to the Orange        sources of beach contamination. The      San Diego County
                                                                                              Water Authority
    County Sanitation District (OCSD).               Regional Water Quality Control Board
                                                     continues its efforts to isolate and
•   The water habitat near the HBGS                  minimize the effects of these sources
    discharge site is not home to any                of contamination.                       The generating station
    endangered marine species.                                                               is not a significant
                                                 •   The seawater is drawn and
                                                                                             contributor of bacteria to
•   No bacteria are created or transferred by        discharged by HBGS outside the
    the water treatment facility. Additional         surfzone through underwater pipes.      the surf zone or the beach.
    pretreatment steps will be taken as added                                                This was the conclusion
    insurance.                                   •   Poseidon Resources will continually
                                                     monitor and protect the water quality   of a study prepared by
•   All studies point to urban runoff from the       because this is their source water.     the California Energy
    Santa Ana River and animal waste from                                                    Commission (2003 KOMEX
                                                                                             Study).




                                                                                             ENVIRONMENTAL IMPACT

                                                                                             LESS THAN SIGNIFICANT

    BOTTOM LINE
    Three separate extensive scientific studies conducted between 2001 and 2002
    demonstrated that HBGS is not the source of bacteria in the surf zone.                                                6
                                   Protecting Our Coastal Environment

                                   Ocean Water Quality and Marine Biological Resources
Typical species found
                                   Section 5.10 and Appendices T and S
in the water off of
Huntington Beach:                  IMPINGEMENT / ENTRAINMENT
• Gobies                           •   The project does not take seawater                  •   The generating station has a legal
• Blennies                             directly from the ocean. The water                      and regulatory responsibility for
                                       treatment facility uses only the                        impingement and entrainment.
• Croakers
                                       water already used by the generating
• Northern Anchovy                     station. That is, the seawater used for             •   The primary use for the screened
• Garibaldi                            desalination will already have served its               feedwater and outfall pipes is
                                       purpose of cooling the generating station               to deliver seawater to cool the
• Silversides
                                       and will be on its way back out to the                  generating station.
• Sand Dollars                         ocean via the outfall pipe.
                                                                                           •   The water treatment facility will not
                                                                                               increase or decrease the volume
All of these creatures are                                                                     or velocity of the seawater that
found in abundance and                                                                         is already being used to cool the
none are endangered
                                                                                               generating station.

                                                                                           •   Less than two-hundredths of one-
                                                                                               percent (0.02%) of fish larvae and
                                                                                               plankton may suffer entrainment
                                                                                               mortality as a result of the
“It is important to note that                                                                  desalination project operations,
in the case of co-locating a                                                                   under the most conservative
desalination plant with an                                                                     assumptions. This is an insignificant
existing power plant, there will                                                               amount.
be no additional entrainment
and impingement impacts.”

California Water
Desalination Task Force
“Feedwater Impact Issue
Paper Revised Draft”
September 12, 2003



ENVIRONMENTAL IMPACT

LESS THAN SIGNIFICANT                  BOTTOM LINE
                                       The water treatment facility will use only water that is already destined for discharge after
                                       being used by HBGS and the water treatment facility will have no effect on the amount of
                                       water the generating station uses. Because the primary use for the seawater is to cool
  7                                    the generating station, the generating station operator has the responsibility to secure the
                                       proper permits, which it has done.
Beautification of Site Location

Environmental Setting and Aesthetics                                                        “We have to have another
Section 3.2 and 5.7                                                                         water source. We need to step
                                                                                            up to the plate now to ensure
                                                                                            that these issues are solved for
•   Poseidon Resources will fund the              •   Poseidon Resources will install
                                                                                            our children down the road.”
    demolition and site remediation of three          landscaping to provide a visual
    of the 40-foot oil tanks and replace              improvement over what exists today.   Suzanne Beaukema
    them with lower-profile, architecturally-                                                Huntington Beach
    pleasing water treatment facilities, which                                              business owner
    will not exceed two stories in height.

                                                                                            Poseidon Resources will
                                                                                            fund street improvements
                                                                                            on Newland Avenue and
                                                                               BEFORE       Edison Way.




                                                                               AFTER




                                                                                            ENVIRONMENTAL IMPACT

                                                                                            LESS THAN SIGNIFICANT
                                                                                            WITH MITIGATION
    BOTTOM LINE
    Poseidon Resources will pay for city-approved aesthetics of the area to make it
    more visually appealing.                                                                                           8
                                 Relationship with Generating Station

                                 Public Service and Utilities
Huntington Beach                 Section 5.6 and Appendix Q
Generating Station
                                 The generating station is permitted to screen           •    In its certification of units 3 & 4 in May
• Built in the late 1950’s       and take in seawater to cool its condensers                  2001, the California Energy Commission
                                 before returning that seawater to the ocean.                 said it was aware of the proposed water
• HBGS is an integral part
                                 The water treatment facility would take a                    treatment facility, but has stated that “no
  of the regional power
                                 portion of that used seawater before it is                   land-use decisions would have an effect
  system. Two of the
  four units at HBGS have        discharged to the ocean and turn it into                     upon the land-use decisions relevant to
  received “Reliability          drinking water. The salt that is screened out                the power plant.”
  Must Run” contracts            will be mixed with the remaining seawater
  since 2001.                    and discharged to the ocean.                            •    City zoning laws permit a water treatment
                                                                                              facility on the site and the water
• Under long-term                •   The water treatment facility will not                    treatment facility will not request re-
  contracts to provide               extend the life of the generating station.               zoning, a variance or a waiver.
  power through 2018
                                 •   The water treatment facility does not               •    The California Coastal Commission
                                     need the generating station to desalinate                recommends that desalination facilities
Power plant operators said
                                     seawater. If the generating station                      use existing infrastructure like that which
they intended to stick around
                                     ceases operations, Poseidon Resources                    exists in Huntington Beach.
whether desalination happens
or not. “If AES is not running       will have the option to purchase the
a power plant here, someone          seawater intake facilities and to apply for         •    The water treatment facility, which is
else will be,” said Eric             the permits necessary to operate them.                   independent from HBGS, will obtain its
Pendergraft, plant manager for                                                                own permits and will not rely on permits
AES in Huntington Beach.         •   The water treatment facility and                         secured by the generating station.
                                     generating station have a tenant-landlord
Los Angeles Times                    relationship, but in this case they share           •    Appendix Q of the EIR shows that the
February 12, 2005                    the use of a “common driveway” (the                      state has an existing power supply
                                     outfall pipe).                                           contract with HBGS through 2018 and
                                                                                              that there is a long-term need for the
                                                                                              Huntington Beach Generating Station.

                                                                                         •    The Integrated Energy Policy Report
                                                                                              issued by the California Energy
                                                                                              Commission (CEC) in 2004 found that
                                                                                              older power plants are critical to meeting
The generating station today
                                                                                              state needs, particularly in Southern
                                                                                              California.
ENVIRONMENTAL IMPACT                                               Conceptual Rendering of

LESS THAN SIGNIFICANT                BOTTOM LINE                   Water Treatment Facility

WITH MITIGATION                      The water treatment facility is independent and will not extend the life of the generating
                                     station. The Coastal Commission recommends the co-location of desalination facilities
                                     with generating stations, as is being proposed at this site. City zoning laws permit
  9                                  this proposed water treatment facility and the applicant will obtain separate permits
                                     independent from HBGS and is not requesting any variances or waivers.
Providing Water for the Next Generation

Growth Inducing Impacts                                                                                                         “Growth isn’t driven by water
Section 6.2 and Appendix P                                                                                                      supply. If it were, Humboldt
                                                                                                                                County (in rainy northwest
                                                                                                                                California) would be the state’s
•   Orange County’s population will continue     •    The water treatment facility will
                                                                                                                                fastest-growing area.”
    to grow whether we use desalinated                provide a safe, reliable, new source
    water or not.                                     of water to accommodate Orange                                            Joseph Grindstaff
                                                      County’s growing population.                                              Chief Deputy Director,
•   According to the Center for Demographic                                                                                     California Department of
    Research (CDR) at Cal State Fullerton,       •    The drinking water provided by this                                       Water Resources
                                                                                                                                San Bernardino Sun
    Orange County is expected to grow by              water treatment facility will only                                        11/28/04
    26% between 2000 and 2030.                        serve Orange County residents.

•   Growth is managed by your city and           •    Huntington Beach will have the
    county through a General Plan.                    opportunity to purchase water from
                                                      the facility. Other Orange County
•   Even as growth continues, Orange                  water agencies such as members of
    County’s supply of imported water from            MWDOC may purchase the water as
    Northern California and the Colorado              well.
    River is declining.
                                                 •    The 50 million gallons per day of
•   According to a 2004 Orange County                 drinking water provided by this
    housing study conducted by LSA                    proposed project will not go directly
    Associates, Inc., 76% of all proposed             to end users, but will be delivered to
    new residential development projects in           public water agencies.
    Orange County of more than 500 homes
    including Rancho Mission Viejo have               Components of Population Growth, 2000-2030
    already identified their water supply              300,000

    sources. None of the proposed housing             250,000
    developments in Orange County are                 200,000
    contingent upon this proposed water
                                                      150,000
    treatment facility (Appendix P).
                                                      100,000


•   MWD has a twenty-year plan that relies             50,000                                                           Migration

    on desalination, other local recycling                 0
                                                                                                                        Natural Increase

    projects and conservation to meet future          -50,000                                                     Source: Center for Demographic Research,
                                                                                                                  California State University, Fullerton,

    demand.                                          -100,000
                                                                                                                  Orange County Projections 2004
                                                                    5



                                                                            0



                                                                                    5



                                                                                            0



                                                                                                    5



                                                                                                              0
                                                                  -0



                                                                          -1



                                                                                  -1



                                                                                          -2



                                                                                                  -2



                                                                                                            -3
                                                                  00



                                                                          05



                                                                                  10



                                                                                          15



                                                                                                  20



                                                                                                          25
                                                                20



                                                                        20



                                                                                20



                                                                                        20



                                                                                                20



                                                                                                        20




                                                                                                                                ENVIRONMENTAL IMPACT
    BOTTOM LINE                                                                                                                 LESS THAN SIGNIFICANT
    The drinking water from the water treatment facility will not create growth in Orange
    County; it will accommodate the growth that planners say is inevitable. MWD has a
    20-year water supply plan that includes desalination as an essential component. The
    water from this facility will serve Orange County residents.                                                                                             10
                                  Safe and Clean Drinking Water

                                  Product Water Quality
                                  Section 5.11, 3.0 and Appendix O

                                  •   The water treatment facility uses the          •   The project must receive approval from:
                                      same reverse osmosis process that is
                                      used to purify bottled water.                      °    California Department of Health
                                                                                              Services
                                  •   The reverse osmosis process removes                °    Metropolitan Water District
                                      not only salt, but every impurity and              °    Municipal Water District of Orange
                                      takes only water molecules out of the                   County
                                      seawater.                                          °    City Water Departments

                                  •   Minerals are added to the pure water to        •   Poseidon Resources will ensure
                                      give it taste – similar to that of bottled         protection of the distribution system
                                      water.                                             against any potential variances in water
                                                                                         pressure or corrosion (see section 3.0
                                  •   The state of the art reverse osmosis               and Appendix O of the EIR).
                                      process has been approved by the
                                      California Department of Health Services.      •   Poseidon Resources is working with
                                                                                         Orange County water agencies and MWD
                                                                                         on the operational issues of introducing
                                                                                         a new water source. Some of these
                                                                                         studies are included in Appendices D, N
                                                                                         and O. These studies address corrosion,
“Clearly, desalination is a
                                                                                         water quality and system operations.
technology whose time has                                                                Additional studies on potential customer
arrived – not only to combat                                                             concerns, such as taste, will be
the effects of drought, but to                                                           addressed over the next year.
provide cleaner, safer drinking
water everywhere.”

Business Week
May 1, 2003




                                      BOTTOM LINE
                                      The water quality of desalinated seawater is equivalent to that of bottled water.
  11
Pipeline Route and
Underground Pump Stations
Pipeline Route and Underground Booster Pump Stations                                                  “Scientists at the U.S.
Section 4.2 and 4.3                                                                                   Geological Survey say it
                                                                                                      could be the worst drought in
                                                                                                      500 years. Reservoirs have
•   The pure desalinated drinking water            •   Two underground pump stations are
                                                                                                      drained, rivers have dropped,
    will be delivered through a water                  needed as part of the distribution             and the mountain snowpack
    transmission pipeline into the existing            system.                                        – the source of three-fourths
    regional water distribution system that                                                           of the West’s water – has been
    is operated and maintained by our public           °   The “OC-44” pump station is                meager.”
    water agencies.                                        proposed to be located within
                                                           an unincorporated area of the              San Diego Union-Tribune
•   The conceptual primary pipeline route                  County along the eastern border            January 13, 2005
    and the alternative alignment are planned              of the City of Newport Beach.
    for existing public streets or other rights-           The site is located adjacent
    of-way and are not anticipated to require              to, but outside of, a Natural
    disturbance of any sensitive natural                   Community Conservation
    habitat or native vegetation.                          Plan/Habitat Conservation Plan
                                                           (NCCP/HCP) area.
•   The pipes will be no more than 48 inches
    in diameter and will range in length from          °   The “Coastal Junction” pump
    30,000 to 40,000 linear feet.                          station is proposed to be located
                                                           within the parking lot at St.
                                                           Paul’s Greek Orthodox Church at
                                                           4949 Alton Parkway in Irvine.




                                                                                               Sources: Carollo Engineers, August 2002.
                                                                                                        Conceptual Pipeline Alignments, Exhibit
                                                                                                        3-3, Draft Recirculated EIR for the Seawater
                                                                                                        Desalination Project at Huntington Beach.




                                                                                                                                               12
                                Running a Quiet and Clean
                                Water Treatment Facility
                                Air Quality, Noise, Light, Odor and Aesthetics
                                Sections 5.4, 5.5 and 5.7

                                •   The water treatment facility generates no       •   Because of the location of the water
                                    gaseous emissions and will do nothing to            treatment facility, the minimal light
                                    harm the air quality.                               needed for the security of the facility
                                                                                        and the safety of its employees will
                                •   The water treatment facility and all its            not impact any of the residents in the
                                    pumps will be located either inside a               surrounding community or the adjacent
                                    soundproof building or underground and              wetlands.
                                    will meet all city noise restrictions.
                                                                                    •   The water treatment facility will emit no
                                                                                        odor.

                                                                                    •   The aesthetics of the property will be
                                                                                        enhanced through:
                                                                                                      °       landscape
                                                                                                              improvements

                                                                                                      °       demolishing three
“We’ve lost half of our                                                                                       dilapidated oil tanks
allocation of the Colorado                                                                                    and replacing them
River, one of our primary                                                                                     with lower profile water
sources of imported water...                                                                                  tanks.
Now, more than ever, it’s
imperative that the entire
Southern California region
work together as a team to
develop new sources of water:
desalination, reclamation and
water transfers.”

Wes Bannister
Chairman
                                                                                                          Sources: Melville C. Branch and R. Dale
Metropolitan Water District                                                                                        Beland, Outdoor Noise in the Metropolitan
of Southern California                                                                                             Environment, 1970.
January 12, 2005                                                                                                    Environmental Protection Agency,
                                                                                                                    Information on Levels of Environmental
                                                                                                                    Noise Requisite to Protect Public Health and
                                                                                                                    Welfare with an Adequate Margin of Safety
                                                                                                                    (EPA/ONAC 550/9-74-004), March 1974.
                                                                                                                    Sound Levels and Human Response,
ENVIRONMENTAL IMPACT                                                                                                Exhibit 5.5-1, Draft Recirculated EIR
                                                                                                                    for the Seawater Desalination Project at
LESS THAN SIGNIFICANT                                                                                               Huntington Beach.

WITH MITIGATION
                                    BOTTOM LINE
                                    The water treatment facility contributes no significant noise, air quality or light
  13                                impacts to the environment.
Energy Consumption

Public Services and Utilities                                                                   “Ten years ago, desalination
Section 5.6 and Appendix Q                                                                      was the crazy aunt in the attic.
                                                                                                That’s changed, and as a water
                                                                                                supply strategy, it is now
•   The water treatment facility’s electrical      •   The water treatment facility will
                                                                                                entering the mainstream and
    power source would be controlled                   require approximately 30-35              being taken seriously.”
    by a power marketing company                       megawatts per hour to produce and
    in consultation with the California                distribute its drinking water.           Barry Nelson
    Independent System Operator (Cal ISO).                                                      NRDC
                                                   •   The water treatment facility does
                                                       not need the generating station to
                                                       operate.                                Putting Power in
                                                                                               Perspective

                                                                                               The water treatment
                                                                                               facility will increase the
                                                                                               energy demand in Orange
                                                                                               County by less than 1%.




                                                                                               ENVIRONMENTAL IMPACT

                                                                                               LESS THAN SIGNIFICANT

    BOTTOM LINE
    The water treatment facility is not reliant on HBGS for its energy and will increase the
    energy demand in Orange County by less than 1%.                                                                       14
                          Temporary Impacts
                          During Construction
                          Construction Related Impacts
                          Section 5.9

                          Hydrology and Water Quality                        Hazards and Hazardous Materials
                          Construction of the proposed project may           Any hazards or hazardous materials
                          result in minor and temporary erosive              encountered during demolition will be
                          conditions including a small amount of             removed and disposed of properly in
                          sediment storm runoff. The construction            compliance with OSHA’s Safety and Health
One unavoidable short-    team will minimize these impacts through           Standards, city code, the Regional Water
term significant impact    mitigation including “Best Management              Quality Control Board (RWQCB) and the
(air quality)             Practices” as determined by city and state         South Coast Air Quality Management District
                          agencies.                                          (SCAQMD).
During the construction
                          Air Quality                                        Traffic
of the water treatment    The temporary construction process would           A Traffic Management Plan will be prepared
facility, there may be    have short-term air quality impacts. The           and implemented. Construction will be
                          construction area will be watered and              limited to one side of the road at a time, when
temporary, short-term     transport vehicles will be covered to minimize     possible. Commercial and residential access
emissions of Nitrous      the amount of dust in the air.                     will be open during construction. A truck
                                                                             routing plan will be submitted to the city and
Oxide and dust from the
                          Noise                                              county for approval. There will be frequent
construction equipment.   All construction will comply with the City’s       consultation and communication with the
                          municipal noise control code. Construction         affected neighborhoods.
                          won’t take place on weekends or federal
NO OTHER UNAVOIDABLE
                          holidays and it will be limited to the hours       Cultural Resources
SIGNIFICANT IMPACTS       specified by the City Noise Ordinance.              Should buried historical or archeological
HAVE BEEN IDENTIFIED                                                         resources be discovered during excavation,
                                                                             all construction work in that area shall be
FOR THIS PROJECT                                                             halted until a qualified archeologist can
                                                                             evaluate the nature and significance of the
                                                                             finds.




ENVIRONMENTAL IMPACT

ONE UNAVOIDABLE
SHORT-TERM
SIGNIFICANT IMPACT
(AIR QUALITY)
                              BOTTOM LINE
                              The construction of the water treatment facility is expected to begin in 2006 and will take
  15                          approximately two years to complete. During construction, the contractor will conform
                              to all city codes as well as state and federal environmental laws.
One Piece of the Puzzle

Cumulative Impacts                                                                            “The key to survival is to
Section 6.3 and Appendix C                                                                    diversify your portfolio.
                                                                                              We’re looking for a buffer, an
                                                      increase created by the natural         insurance policy to account for
•   The proposed water treatment facility
                                                                                              supply uncertainty.”
    in Huntington Beach is one of 11                  evaporation loss in the Southern
    desalination facilities being planned             California Bight (Appendix C).          Kathy Cole
    in Southern California. Should all 11                                                     Metropolitan Water District
    be built, they will provide 240 million       •   Given the physical distance from
    gallons of fresh water per day to                 the proposed desalination facility in
    Southern California.                              Huntington Beach to other proposed
                                                      desalination facilities in Southern
•   It would take 2,163 desalination facilities       California, there would be no
    the size of the proposed facility in              negative cumulative water quality or
    Huntington Beach to match salinity                marine habitat impacts.
                                                                                                   CEQA and the Coastal
                                                                                                   Act define “cumulative
                                                                                                   effects” as the
                                                                                                   incremental effects fo
                                                                                                   an individual project in
                                                                                                   conjunction with the
                                                                                                   effects of past projects,
                                                                                                   the effects of other
                                                                                                   current projects, and the
                                                                                                   effects of probable future
                                                                                                   projects.




                                                                                                   ENVIRONMENTAL IMPACT

                                                                                                   LESS THAN SIGNIFICANT

    BOTTOM LINE
    The water treatment facility would meet with the goals of the California Ocean Plan.
    Even if all eleven planned desalination facilities were built, they would not have                                      16
    overlapping effects on marine habitat or ocean water quality.
                                Alternative to the
                                Water Treatment Facility
                                Alternatives to the Proposed Action
                                Section 7.0

                                In conformance with environmental                 •   The Increase Groundwater Usage
                                requirements, various alternatives to                 alternative would require tapping further
                                the water treatment facility have been                into Orange County’s aquifer, which is
                                analyzed and studied. The proposed                    reported to be more than 100 billion
                                project is the best alternative to meet the           gallons overdrafted today.
                                project objectives while minimizing the
                                environmental impacts.                            •   The Alternative Ownership alternative
                                                                                      would result in the exact same
                                •   The No Project alternative does not               environmental impacts as the proposed
                                    meet the project objective of providing a         project. Some allege that a multinational
                                    drought-proof, high quality, new potable          corporation may use international law
                                    water supply.                                     to avoid environmental review, however
                                                                                      the California Department of Water
                                •   Orange County is currently conserving             Resources has reached the opposite
                                    84,000 acre-feet per year (approximately          conclusion saying that no international
                                    20% of its supply). Programs are                  treaty would prevent any U.S.
                                    underway to increase our conservation             governmental agency from reviewing
                                    levels to 140,000 acre-feet per year by           and regulating water projects - including
                                    2025. The Conservation alternative                desalination facilities. For this project
                                    would require conserving an additional            the issue is irrelevant anyway because
                                    56,000 acre-feet of water, which would            Poseidon Resources is a U.S. corporation
                                    probably require restrictive regulations          and is not a “multi-national” corporation.
“I see great potential for
desalination to be part of          on water usage. New water sources are
a long-term solution to             needed.                                       •   The Alternative Intake Design alternative
help restore our rivers and                                                           studies beach wells and other seawater
fisheries”                       •   The Increase Imported Water alternative           intake collection systems. The
                                    would require increased water transfers           construction and long-term impact of
Jared Huffman                       from the Colorado River and Sacramento            building the infrastructure necessary
California State Desalination       Delta. Importing an additional 56,000             would have an unneeded negative impact
Task Force                          acre-feet of water annually would                 on coastal access and recreational use
July 28, 2003                       result in significant economic and                 without meeting the primary objective of
                                    environmental degradation.                        the project. The HBGS screened intake
                                                                                      and outfall pipes already exist and will be
                                                                                      in use no matter what intake collection
                                                                                      system the water treatment facility
                                                                                      uses. There are no long-term significant
                                                                                      impacts with the current proposed
                                                                                      design.
                                    BOTTOM LINE
                                    The proposed water treatment facility is needed and because of the existing feedwater
  17                                            infrastructure, the Huntington Beach site is an excellent location for a
                                    and outfall infrastructure the Huntington Beach Generating Station is the best location in
                                    desalination facility. desalination facility.
                                    Orange County for a
Alternative to the
Water Treatment Facility


•   The Construction of Additional Local       •   The Alternative Project Discharge
    Water Supply Project alternative               alternative analyzes the possibility
    addresses other local projects.                of discharging the concentrated
    The drinking water that would be               seawater to the Orange County
    provided by the Huntington Beach               Sanitation District (OCSD). In a
    Water Treatment facility is needed to          response letter dated June 24, 2004,
    supplement other local projects as well        OCSD indicated that it does not have
    as conservation in order to meet the           the capacity to process an additional
    Metropolitan Water District’s Integrated       50 million gallons of concentrated
    Resources Plan (IRP) that requires the         seawater per day.
    region to produce 52 billion gallons of
    additional water annually.

•   The Alternative Site alternative was
    studied, however at other locations            BEACH WELL SYSTEM
    either the infrastructure for a
    desalination facility is not already in
    place (Dana Point and San Clemente)
    or the engineering and site location
    acquisition may be problematic (San
    Onofre).

•   The Reduced Size Facility alternative
    studies the effects of a 25 mgd project
    instead of the proposed 50 mgd project.
    Analysis shows that a smaller facility
    would not significantly reduce potential
    environmental impacts. Additionally,
    a reduced-size facility that produces
    half the drinking water compared to
    the proposed facility would not meet
    the project’s objectives to provide a
    sufficient amount of water to meet the
                                                   • Best suited for 10 mgd or less
    future water needs estimated by Orange         • 24 beach wells (1.8 miles of beach) needed
    County water purveyors.                        • Economically and regulatorily infeasible for this
                                                     location.




                                                                                                         18
     Glossary of Terms

     Acre foot                                          Desalination
     The amount of water needed to cover one            The process of removing salt and other
     acre of land one foot deep (about 326,000          particles from seawater or brackish water
     gallons). One acre-foot of water provides, on      resulting in pure drinking water
     average, two families with water for one year.

                                                        Drought
     Aquifer                                            A prolonged period of below average
     An underground layer of rock, sediment or          precipitation
     soil that is filled or saturated with water

                                                        Entrainment
     Basin                                              The process by which small marine species,
     A groundwater reservoir defined by the              plankton and larvae, slip through the screens
     overlying land surface and underlying              on the intake pipe and are taken into the
     aquifers that contain water stored in the          generating station with the feedwater and
     reservoir                                          rarely survive the process


     Brackish                                           Environmental Impact Report
     A mixture of freshwater and salt water             A state-mandated written summary of
                                                        the positive and negative effects on the
                                                        environment caused by the construction and
     Brine                                              operation of a project
     Water saturated with or containing a high
     concentration of salts, usually in excess of
     36,000 milligrams per liter (mg/L)                 Fresh water
                                                        Water containing less than 1,000 parts per
                                                        million (ppm) of dissolved solids of any type
     Cubic foot of water
     The amount of water needed to fill a cube
     that is one foot on all sides; about 7.5 gallons   Groundwater
                                                        Water under ground, such as in wells,
                                                        springs and aquifers
     CEC
     California Energy Commission




19
Glossary of Terms

HBGS                                             Membrane
The Huntington Beach Generating Station          The element of the process that
                                                 separates the salt for the water. The
                                                 membrane allows the smaller water
Intake pipe                                      molecules through while screening out
The pipe through which water is drawn in to      the larger salt molecules.
cool HBGS

                                                 MWD (or “Met”)
Impingement                                      Metropolitan Water District
The process by which marine species are
held against the screen of the intake pipe
                                                 MWDOC
                                                 Municipal Water District of Orange
Imported water                                   County
Water brought into an area from a distant
source, such as from one part of a state to
another via an aqueduct                          Outfall pipe
                                                 The pipe through which the used
                                                 seawater is discharged back into the
IRP                                              ocean
Integrated Resources Plan

                                                 Overdrafting
Komex Study                                      The pumping of water from the
A 2002 study commissioned by the CEC,            groundwater basin in excess of the
which found that HBGS did not negatively         recognized annual sustainable yield of
impact the ocean water quality.                  the basin.


mg/L – milligrams per liter                      Potable
Milligrams per liter of water. This measure is   Drinkable; safe to drink
equivalent to parts per million




                                                                                          20
     Glossary of Terms

     ppb – parts per billion                          Seawater reverse osmosis (RO)
     Number of parts of a chemical found in one       The process of turning salt water into
     billion parts of a solid liquid or gaseous       freshwater. The salt water is forced under
     mixture. Equivalent to micrograms per liter      pressure against a membrane that filters out
                                                      the salt and other impurities, allowing only
                                                      freshwater to flow through
     ppm – parts per million
     Number of parts of a chemical found in one
     million parts of a solid liquid or gaseous       Southern California Bight
     mixture. Equivalent to milligrams per liter      The coastal waters from Santa Barbara to
                                                      Baja, Mexico

     Recharge
     The process of water seeping into the ground     ug/L – micrograms per liter
     and refilling the aquifer                         Micrograms per liter of water. One thousand
                                                      micrograms per liter is equivalent to
                                                      one milligram per liter. This measure is
     Reclaimed water                                  equivalent to parts per billion (ppb)
     Water that has been used and then treated or
     cleansed so that it is safe to be used again
                                                      Wastewater
                                                      Water that has been used and is no longer
     Reservoir                                        clean
     A natural or man-made basin where water is
     collected and stored
                                                      Water conservation
                                                      The protection and wise use of water
     Salinity
     Saltiness
                                                      Watershed
                                                      An area of land that drains surface water
     Saltwater intrusion                              runoff into a waterbody
     A process in which saltwater is drawn into
     the freshwater zone of an aquifer, making that
     source not fit for drinking                       Wetlands
                                                      Land where the soil is very wet or soaked
                                                      with water most of the time; marshes or
                                                      swamps




21
22
Huntington Beach Water Treatment Facility
419 Main Street, Suite A
Huntington Beach, CA 92648-9942
714.754.1234

www.hbfreshwater.com
This document has been prepared by Poseidon Resources
and is based on the information presented by the City
of Huntington Beach, which prepared and released the
Environmental Impact Report for the Seawater Desalination
Project at Huntington Beach. The contents of this document
do not necessarily reflect the views or policies of the City of
Huntington Beach.

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