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by John Earl, cross-posted from Surf City Voice.
Centuries ago, explorers sailed Poseidon’s Seven Seas looking for beautiful mermaids and lands full of golden treasures.
Although some of the hapless adventurers may have found what they were looking for, those who didn’t drink too much seawater were usually disappointed.
Today, it looks like Poseidon, the God of the Sea, is up to his old tricks again.
This time, taking corporate form (same as being human under American law), he’s promising to build a new source of water – an ocean desalination plant in Huntington Beach – that will create an additional and reliable supply of water for the Orange County Water District’s ratepayers.
At least that’s what most people think he is promising.
But is he?
Any proposed deal between the OCWD and Poseidon Resources Inc. to build an ocean desalination plant will depend upon a subsidy of $400 million, doled out to Poseidon for a 15-year-period, courtesy of water ratepayers throughout Southern California.
The OCWD manages the Santa Ana River Groundwater Basin, which supplies over 70 percent of the drinking water for Central and North Orange County.
The desalination plant would turn about 56,000 acre feet of seawater into drinking water every year.
Poseidon and OCWD officials are currently negotiating a contract to build and operate the $1 billion plant, but one detail is 100 percent certain: no subsidy, no project, say Poseidon CEOs.
The subsidy would have to be approved by the Metropolitan Water District of Southern California and funneled through its Local Resources Program (LRP).
Under currently proposed terms, OCWD would be required to buy all 56,000 acre feet of Poseidon’s water every year for 50 years at rates three or more times higher than imported water the District currently buys from the MET for basin replenishment.
But there is a misunderstanding about the supposed benefits of the Poseidon project by some members of the OCWD Board of Directors and other project supporters: they believe that it creates a larger and more reliable water supply for residents living in OCWD’s region.
But the strings attached to the LRP subsidy would make Poseidon’s increased water supply as hard to find as the water spirit in Hans Christian Andersen’s Little Mermaid.
The Municipal Water District of Orange County’s top engineer, Karl Seckel, the acknowledged expert on MET policies, explained the eligibility requirements, strings and all, to the Surf City Voice by email, quoted here in part:
“Any project that produces potable supplies qualifies because as long as the supply is produced it will result in offsetting a potable demand on MET.”
OCWD’s imported water “demands” that have to be offset include MET water purchased directly by OCWD or separately by any of its 19 [water agency] members, Seckel said.
“Even though OCWD purchases vary from year to year, they are always greater than the 56,000 AF being considered by the Poseidon project”, he added.
[Seckel’s complete email was subsequently included with OCWD’s final report on the conclusions of its Ocean Desalination Citizens Advisory Committee.]
In other words, there will be no net gain of water supply for OCWD from the Poseidon project, as OCWD’s Director of Engineering, John Kennedy, made clear to Director Stephen Sheldon who seemed to suggest otherwise at a board meeting in July, 2014.
Poseidon’s water “introduces more water to the region, has an overall net effect of pumping up our reliable supply in addition to what’s being produced”, Sheldon postulated at that meeting.
“Well, no,” Kennedy answered. “It is increasing the water that the region will have so that it is improving our reliability, but it’s not increasing the amount of groundwater.”
The “region” of increased water reliability that Kennedy refers to is outside of the OCWD service area (conceivably including South Orange County which imports virtually all of its water) where water reliability will be increased by the freed-up and cheaper (MET) imported water that OCWD will replace with desalinated water.
In effect, outside water agencies will receive a generous subsidy for MET’s cheaper water, courtesy of OCWD’s ratepayers, a fact that Peer Swan, a director at the Irvine Ranch Water District, has pointed out for years to deaf ears, starting with a Surf City Voice story in 2011.
Like the sailors of mermaid mythology, who sailed their ships into the rocks by following a beautiful illusion, OCWD’s water board may yet find that Poseidon’s promise has lead them astray.
Photo credit, with apologies: “A Mermaid” by John William Waterhouse.
Also, Photoshop credit (adding Poseidon VP Scott Maloni’s face)
goes to Greg Diamond of the Orange Juice Blog.
– See more at: http://www.surfcityvoice.org/2015/06/poseidon-desal-will-ocwd-be-shipwrecked-by-mermaids/
Maloni is 15 years a slave to this corporation. HB would be advised of the pressures this boondoggle confers. A ruined ecosystem, no water for city of HB and a billion dollars debt….
Is there a transcript of the meeting? I understand some citizens were taping the meetings, are those available?
John has been filming or “livestreaming” them for a few months; around the same time we finally talked them into at least putting AUDIO on their website.
But which meeting are you referring to? This is mostly based on studying MET policies, and the Poseidon term sheet.
It is still not clear to me how it is that for every acre foot produced by Poseiden we lose access to an acre foot from MET.
Because Poseidon wants the rebate from MWD.
MWD has a goal to reduce the water it imports. To get there, they offer subsidies for local options to replace imports. They also offer rebates to remove turf, which lowers (permanently) demand for imported water. OCWD imports water through MWD to recharge the aquafer.
To get the subsidy, Poseidon will locally produce water, which displaces MWD imports (OCWD will use Poseidon water to recharge the aquifer instead of MWD), which nets Poseidon a subsidy.
Here’s the awesome part.
To fund the subsidy, MWD tacks a fee onto the water it imports. So, you’re paying MWD to pay Poseidon to charge you more money for the water you already have access to.
All kinds of stupid.
MET will be exporting less water to OCWD (thus OCWD will be importing less from MET) in the amount equal to the amount of water that Poseidon is producing from ocean water. That is what has to happen in order for Poseidon to get the $400 million (399 actually) that it must have to satisfy investors and in order to get the project built. The water that MET doesn’t export to OCWD due to Poseidon (in other words, the water that OCWD doesn’t import due to Poseidon) will be available for OTHER water districts elsewhere. So there is no NET gain in water for OCWD due to Poseidon. This companion article explains it from the point of view of the Irvine Ranch Water District: http://www.surfcityvoice.org/2015/06/poseidons-reliability-promise-pay-more-for-the-same/
Then those agencies that take our water that we are supposed to get should be paying the premium why is OC paying this to the benefit of other areas?
Because the people making the decision are in Poseidon’s back pocket.
I c ant see for the life of me how this has gotten so far in Conservative OC.. At the costs they are projecting we could go to full tertiary treatment of the OCWD wastewater instead of discharging it out to sea in the exact same plot of land they want to build the Poseiden plant.
Because the powers that be in the OC are not really conservative – they are Kleptos!
Thought you knew that.
it is not clear because it is not true Paul. Earl got it wrong again. GWRS gets subsidies from Met without ocwd losing any access to met water should it ever be available to them again.
perhaps cantor will point out someone was snacking on a side of stupid when doing his blog article? probably not, inconsistent though.
Probably not.
Considering MWD has cut what they deliver to their members by 15% already and there is no indication that they are going to be producing any more water in the near future, you don’t think it’s a good idea to replace that 15% with an inexhaustible, locally controlled source of fresh water?
No.
My question about meeting transcripts was rooted in how we have determined that those on OCWD board are already sold on the idea. My fellow board members in any number of orgs force me to “consider and discuss” a lot of whacka doodle stuff, discussing it doesn’t mean I am on board for it, so I assume statements have gone beyond the “let’s look into it” phase, and I assume that has taken place in public meetings, where I need to find more than action item minutes that tell us nothing of the deliberative process. Thus the request for transcripts or audio/video.
And keep in mind I know how ignorant my questions are, I have been so underwater myself (no pun intended, too obvious) that I have attended NONE of these meetings and am only now getting up to speed on the issue at all. Stupid of me I know, when one’s home is on fire you don’t worry about the armed robbery across the street, as serious as that may be. So I want to know what separates OCWD board members from exploring options for renewable water sources from OCWD board members being sold out to Poseidon, and I know Cantor especially does not go off half cocked so there have to be statements out there to indicate predetermined consensus. Where do I find these statements of OCWD board members so I can get up to speed on who is already positioned to sign on the dotted line and who is still trying to find mitigation middle ground?
BTW THANK YOU for staying on top of this for those of us unable to do so.
Nobody is calling YOU lazy or stupid, that’s for sure! Here is the audio for the June 14 meeting where the term sheet was approved (which we are constantly assured is not “100% final.”) http://www.ocwd.com/Portals/0/BoardAgendas/2015/20150514.SPX.BOD.mp3
When John Earl comes around again, maybe he can give a link to the video he did, or some other helpful video.
Tyler reported on that meeting here: http://www.orangejuiceblog.com/2015/05/the-poseidon-adventure-sails-on/
7 out of 10 members voted to proceed with the term sheet – all but Flory, Anthony and Yoh.
The other 7, if you listen to them, sound just like Poseidon lobbyists when they speak. If anything, Roman Reyna might be a LITTLE torn. Cathy Green, Harry Sidhu, Denis Bilodeau, all talk about how much we need the water and the “reliability.” Dina Nguyen and Shawn Dewane, the same, but add the fact that they got lots of campaign contributions from the firm last year. And Steve Sheldon, the board’s Alpha Dog, add all of the above plus the fact that he actually worked as a CONSULTANT for Poseidon for a couple years.
We sometimes wonder who is flippable, because this could be reversed. Roman Reyna seems a little uncomfortable with environmental aspects (but also generally out of his depth.) Some say Bilodeau is too smart to not see through all this, but I’m not sure if “smart” is enough to make someone do the right thing. And some imagine that Cathy Green could flip, as 1) she wants everyone to like her, and 2) she was part of the original HB Council team that approved the plant, and Poseidon has already reneged on half the things they promised HB that year.
Replacing a couple members at the next election (cough Cathy Green) could also save the day.
John wrote TWO pieces this week, both explaining how we gain nothing from Poseidon, two pieces written from slightly different angles. I decided to only “cross-post” the above one, but interested readers might also want to check out the other. It does include a helpful graphic:
http://www.surfcityvoice.org/2015/06/poseidons-reliability-promise-pay-more-for-the-same/comment-page-1/
“Well, no,” Kennedy answered. “It is increasing the water that the region will have so that it is improving our reliability, but it’s not increasing the amount of groundwater.”
This we call….pleasant bureaucratic double speak. Do they really know how to pour wet stuff from their boot? No net increase? Let’s see Poseidon get $400 million dollars over 15 years to produce ONE GALLON of water a year. But because that ONE GALLON is just EXTRA….then OCWD will not have to produce ONE GALLON of Reclaim water to buffer the brackish seawater or provide ONE GALLON to a water fountain at a public park? OK, then if Poseidon delivers 3000 acre feet of potable drinking water …per month. That means that OCWD still gets its cut, but doesn’t have to produce ANYTHING? Yep, CA/OC Public Employee Double Speak……they should really have a class at Orange Coast College on that.
a lot of comments but you are missing the point: earl is incorrect. there is no offset. that has been made clear if you would attend producers meetings. Do you realize the GWRS also gets subsidies, with no offset. you need to quit thinking peer swan is the authority on water issues, he is not. he is an outlier to put it mildly. poor scholarship in the earl article(s).
There is no offset because you say so?
Boohockey.
It comes down to this.
This boondoggle isn’t reliable or drought proof. It is absurdly expensive.
It’s a waste of millions with absolutely no impact on mandated use restrictions and no guarantees for production for the sake of enriching a well connected private out of state corporation.
I’ve said it before, I’ll say it again. It’s stupid.
How’s that for inconsistent?
So, I don’t know, but suspect, that Mr. Jim Fisler is here again 🙂 In fact, the GWRS did get a subsidy from MET and it was offset, though it was not based on a cost differential. Also, there is no dispute from any OCWD or MWDOC officials on my description of the LRP, which is understandable since the information comes from them.
It is reliable and local and drought proof. Eating stupid this morning? There is no offset just because earl says there is. Met says there isn’t. Not for Poseidon water subsidy. Not for gwrs subsidy and not for the water saved by turf removal subsidy.
It’s not reliable. Total count of reliable plants built by Poseidon: Zero.
It’s not local. Profits go back to Connecticut.
It’s not drought proof. If this plant were functioning today, it would have ZERO impact on use restrictions.
It is, however, absurdly expensive.
Stop trying to be cute. You suck at it.
Jim, now I know it’s you. First, don’t be a coward–again–hold yourself accountable for the ridiculous things you say. There isn’t even an LRP application for Poseidon in yet except the old one made long ago by MWDOC. And the MET has said nothing unless Mr. Fisler has information that no other far-more-expert-than-he public official has at MWDOC and OCWD. The information doesn’t come from my apriori, as yours seems to come to you, but from the experts. Whoever you are (almost certainly Jim Fisler) you should come out of your bitter alcoholic stupor and join the human race.
someone hit a nerve with earl. personal denigration attempts show his utter lack of valid argument points. Exposed, his head is spinning. Panicked, he must lash out with negative innuendo as he circles the drain desperate to get the focus off his disproven blog story.
Mr. Inconsistent: You are projecting (Freudian term meaning casting your traits upon someone else as a defense mechanism). You started with the insults, as usual, then you cry, as usual, when your negative innuendo doesn’t stick.
Look, Jim Fisler, you keep digging your hole deeper and ruining what little credibility you have left as a water director. In asking you to come out of your “alcoholic stupor” I was speaking metaphorically, but you do exhibit the symptoms of bitterness and delusion that often accompany that terrible disease. Which leads me to think that I am done with you because you are a sad case deserving only of our pity. If you need the Mesa Water Benefits that bad then by all means please take them. You poor, poor, man.
If you’re anonymously speaking on an issue that’s before you in an official capacity, not only are you a coward, you’re also probably breaking the law.
Shape up and fly right.
my post was that earl was incorrect and thus his article was poor scholarship. don’t think that was a personal insult, just fact. the personal insults were initiated by earl, standard MO. Other than knowledge, I have nothing to do with this issue Cantor, setting the record straight is not illegal-except maybe here on this blog.
If you’re on the Water Board, you should have a long chat with your attorney concerning your activity here.
Do us a favor and have it in open session.
“Illegal, except maybe on this blog”?
OK, who told this guy about OJB’s private police force, judicial system, and secret prisons?
They were supposed to be a surprise.
Sorry, I forgot. I’ll keep it on the QT.
But seriously though– who is this douche that thinks it’s acceptable to discuss the people’s business that may come before his PUBLIC OFFICE anonymously on a blog?
Talk about a flagrant disregard for basic good government ethics. Unbelievable.
We in the management (i.e., not including you) don’t disclose anonymous commenters’ names as a rule. And even if we think we know them, we have to beware of false flags.
Well, he pretty much admitted who he was to Zenger about a month ago. I like having him give the pro-Poseidon side of things here (so we can kick it around)… but I don’t understand why he can’t just comment as “Jim Fisler.”
As far as I know, the Mesa Water Board on which he serves is one more North OC “pumper” that is NOT interested in purchasing Poseidon’s water. I’m puzzled as to whether Mr. Fisler is a loose-cannon dissenter on that board? I posted links to the letters written to OCWD about Poseidon by several of the pumpers here, but I didn’t do Mesa: http://www.orangejuiceblog.com/2014/12/poseidon-ocwd-bring-their-snake-oil-show-to-the-countys-pumpers-tomorrow-morning-show-up/
Yet you allow commenters to out anonymous commenters, right?
Ask Vern.
As a rule, NO. But this case is a little unusual: As Ryan points out, this is an elected official pontificating “anonymously” on matters that HAVE and probably WILL AGAIN come within his purview.
Back when he was “deadwhitemale” he started things by personally insulting John Earl, who tried to out him, but (if I remember right) I stopped John. But then half a year ago, something happened where Zenger, Earl and Diamond were all accusing him of doing something – I think acknowledging knowing something – that a Mesa Water Board guy shouldn’t have – and he got scared off.
Then he came back as “inconsistent” and I was glad to see him again, because we get so few “knowledgeable” Poseidon backers we can practice arguing with. But now Ryan and John Earl have figured out who it is – it’s so obviously the same guy. And again, this is an elected official pontificating “anonymously” on matters that HAVE and probably WILL AGAIN come within his purview.
What I don’t understand is why he just can’t come on this blog and comment as “Jim Fisler,” if he believes in what he’s saying. I mean, he makes nearly the identical comments under his own name on Facebook, all the time! And we love having elected officials make their case here.
OK…that was all VERY interesting.
But you do allow contributors to disclose…
With twisted ethics like that you could work for the NSA.
Close to never. In fact, we’ve banned people for it. The exceptions I can think of have been where a person’s identity is an “open secret” and they are taking advantage of their anonymity to be abusive.
Fisler is a bootlicking bigot.
Or is this his little buddie Howard Hull?