1. SPI – “The Membrane Technology Consultants” James C. Vickers, P.E. Vice President Separation Processes, Inc. 3156 Lionshead Ave. Suite 2 Carlsbad, CA 92010 T: 760-400-3660 www.spi-engineering.com jvickers@spi-engineering.com The Maritime Alliance August 23, 2012

2. AGENDA Water Supply Perspective RO Technology – Membranes – Systems SPI Capabilities

3. Importance of Water in United States Agriculture Municipal Industrial

4. Importance of Water in United States Agriculture Municipal Industrial

5. California Water Challenges Surface Water – Snowmelt – Transportation – Environmental

6. California Water Challenges Groundwater – Quality Degradation Nitrates (Agriculture and CAFO) Seawater Intrusion – Overdrafting

7. Meeting Water Supply Challenges with Technology Water Recycling (Developed) – Irrigation (Title 22) – Indirect Potable Reuse (Recharge) Orange Co. GWRS (Water Factory 21) West Basin Municipal Water District Seawater (Development) – Carlsbad – Los Angeles – Orange County – Monterey

8. Reverse Osmosis

9. Reverse Osmosis History 1950’s - 60’s: Seawater Desalination Effort – Lead by UCLA – Development of Loeb-Sourirajan Membrane RO Membrane Development – 1964: Cellulose Acetate Membrane – 1967: Spiral Wound Configuration – 1976: Polyamide “Thin Film Composite” Membrane – Commercialization of RO Systems Late- 1970’s - 1980’s – Split of RO Systems from Element Manufacturing – Softening (NF) Membranes 1990’s – Lower Energy Membranes – Higher Rejection Membranes – MF/UF Commercialization 2000’s – Integration of RO Membranes with MF/UF Systems First Spiral Wound Reverse Osmosis Module General Atomic (San Diego, CA) circa 1964 Photo courtesy of Fluid Systems Corporation

10. Major RO Manufacturers ManufacturerLocation of US Manufacturing Hydranautics (Nitto-Denko)Oceanside, CA DOW-FilmtecMidland, MI GE (Desal-Osmonics)Vista, CA CSMAnahiem, CA TorayPoway, CA Koch Membrane Systems (GA – Fluid Systems) San Diego, CA (formerly) TrisepGoleta, CA

11. Introduction to SPI

12. SPI – “The Membrane Technology Consultants”

13. SPI National and International Experience 13 Hawaii – 3 Projects Australia – 10 Projects Canada – 5 Projects

14. Advancements in Membrane Treatment Technology Membrane Element Evaluations Membrane System Design Integrated Membrane Systems Water and Wastewater Applications

15. Advancements in RO Systems Large diameter RO – 16 inch and 18 inch membrane elements 18 inch Manufacturers: Koch 16 inch Manufacturers: Toray, Dow, Hydranautics, CSM Space savings Install savings City of Scottsdale 18 inch RO Train

16. Process Monitoring and Optimization Services

17. Real World Operational Experience Support Services Totaling >500 mgd Capacity Thirty (30) Distinct Membrane Facilities Monitored

18. Optimization – Energy Costs Versus Operating Costs Net Revenue, $/year CIP Interval, days RO Groundwater Desalter

19. Questions? Thank You!