1. San Diego County Water Issues 2010 Update Maritime Business and Technology Summit November 16, 2010 Seawater Desalination for San Diego

2. Water Authority Background  Wholesale water agency created by state Legislature in 1944 ◦ 24 member agency water districts, cities and one military installation: Camp Pendleton ◦ 36-member board of directors ◦ Serves 3.2 million people and region’s $174 billion economy  Service Area ◦ 920,000 acres ◦ 97% of county’s population 2

3. 5% Regional Water Supply Diversification 3 Metropolitan Water District Imperial Irrigation District Transfer All American & Coachella Canal Lining Conservation (per 2005 UWMP Goal + SBX 7-7) Seawater Desalination Local Surface Water Recycled Water Groundwater 2011 2020 1991 95% 23% 22% 6% Dry-Year Water Transfers 7% 6% 9% 10% 17% 52% 12% 13% 3% 5% 4% 11%

4. Why Desalination?  Water supply diversification  Climate-independent local water supply  Reduces reliance on increasingly constrained imported water supplies  Cost-competitive with other new supplies  Successful implementation worldwide

5. $/AF Marginal Cost of the Next Increment of Local Supply (Actual Proposed San Diego Region Project Unit Costs) Brackish Groundwater Indirect Potable Reuse Seawater Desalination $1,717 $2,086 $2,190 $2,300 $2,340 * Cost of re-treatment not included (2005$) 5 $1,900 (100 mgd) (50 mgd)

6. Seawater Desalination Process 6

7.  50 mgd desalination project being developed by Poseidon  Project is fully permitted  Included in 2005 Water Authority Urban Water Management Plan  Water Authority would be sole purchaser of water  Term Sheet between Water Authority and Poseidon approved by the Board on July 22  Risk transfer to Poseidon  WPA pre-negotiation activities under way  On-line in 2013 Carlsbad Desalination Project 7

8. Proposed Camp Pendleton Desalination Project 8  Proposed project is a 50 -150 mgd desalination project  Construct in phases over time  Located in the sw corner of Camp Pendleton  MOU executed with Marine Corps to continue with planning/technical studies  New intake and discharge infrastructure required  Next phase of study under way  Earliest on-line date is late 2020

9. 9 9 Rosarito Desalination Plant Feasibility Study  Colorado River water supply augmentation  Completed Feasibility Study (Phase 1)  No Fatal Flaw Found  Environmental Permitting would be challenging  Next Phase (Phase 2)  Detailed site analysis, conveyance alternatives, refine cost estimates and review product water exchange w/ MX  Decision on whether to pursue Phase 2 expected this year  Otay Water District also pursuing a similar project at the power plant site ROSARITO POWER PLANT

10. Desalination Technology Innovation on the Horizon  Expanded use of large diameter RO membranes  Continued improvement in RO isobaric energy recovery  Application of nano-technology to RO membranes  Use of renewable energy generation for desalination  Ocean-related energy technologies  Osmotic power (related application) 10

11. Questions? 11