Test Slant Well Project Permit Amendment (Coastal Commission Agenda Item Tu 15a) Date: Oct. 6, 2015 Presented by CAW at the Oct. 6, 2015, California Coastal Commission hearing

Cal-Am Concurs with Staff Cal-Am fully supports the Commission’s Staff Report, recommended actions and findings Cal-Am also agrees with all of the expert conclusions of the Commission’s independent hydrogeologist

Court Fully Upheld Test Slant Well CDPs Commission unanimously approved the CDPs for this temporary scientific test project project in Nov. 2014 Two lawsuits challenged the Commission’s approval Santa Cruz Superior Court fully upheld the Commission's approval and its CEQA review of the Project The Court fully rejected each of the opponent’s claims The Court found the Project would not result in groundwater impacts

Approved Project Goals Gather important data re: geologic, hydrogeologic, and water quality characteristics in the underlying aquifers Key to determining the feasibility of slant wells for water production in the area of the Monterey Bay Subsurface intakes are the preferred method of seawater intake by coastal regulators Monterey Bay National Marine Sanctuary requires that the feasibility of such intakes be investigated Subsurface intakes require research to establish a location with ample water supply and acceptable water quality that will not impact inland groundwater supplies

Test Well Construction and Operation Monitoring well data showed that regional groundwater levels declined in Spring 2015, prior to Project pumping Major construction completed in Feb. 2015; finishing work and initial tests occurred in March 2015, and pumping began in April and continued until June 5, 2015 From April to June, water levels continued the downward trend at MW-4 and approached a 1.5 foot decline Pumping stopped on June 5 to comply with Special Condition 11 Based on data from when the test well was both on and off, the Hydrogeologic Working Group determined that the test well may have contributed (if at all) to at most a ¼ foot drop at MW-4 This is less than groundwater modeling projected

Regional Groundwater Trends HWG determined that downward trends in water levels were due to factors other than the test slant well Since June 5, MW-4 continues to decline in response to regional groundwater pumping inland “These seasonal declines are not a result of the cone of depression from one or a few wells, but rather a cumulative decline in groundwater levels and groundwater storage from tens to hundreds of pumping wells. . .” HWG Letter to Charles Lester (July 23, 2015)

Proposed CDP Amendment is Narrow The proposed CDP amendment does not re-open the Commission’s prior findings concerning the Project as a whole The amendment is narrowly focused on a single condition To ensure that the condition governing groundwater monitoring is protective and can be practically implemented given observed changes in regional groundwater levels

Amendment to Special Condition 11 Intent of Special Condition 11 was to establish a performance standard to ensure that test well would not cause water level decreases or salinity increases greater than modeling results In order for these performance standards to work in practice, they must be applied against regional trends in water levels and salinity not caused by the test well The amendment would retain previously approved numerical standards, but would compare monitoring results to observed regional trends The Commission’s independent hydrogeologist confirmed that in the proposed language for Special Condition 11, “the threshold values and monitoring approach are appropriate for preventing impacts to agricultural groundwater”

Opponent Claims are Not Supported Monitoring well data shows no measurable effects from the test well outside 2,500 feet Data shows no effect in 400 Foot Aquifer Data confirms test slant well pumps water from Dune Sand and 180 Foot Aquifers – both intruded with seawater in capture zone Expert analysis confirms that Special Condition 11’s standards will protect groundwater and that no adverse impacts will occur

Broad Community Support Surfrider Foundation Sierra Club Salinas Valley Water Coalition Planning and Conservation League Foundation Monterey Regional Water Pollution Control Agency Monterey Peninsula Water Management District Monterey Peninsula Regional Water Authority Monterey County Water Resources Agency Monterey County Farm Bureau LandWatch Monterey County County of Monterey Coalition of Peninsula Businesses CPUC Office of Ratepayer Advocates City of Pacific Grove California American Water All support the test slant well at the CEMEX site (Signatories to CPUC Settlement)

Recommendation Cal-Am respectfully requests that the Commission approve the permit amendment and adopt the findings in the Staff Report