Carlsbad Desalination Project

Rendering of Carlsbad Desalination Project Site at Encina Power Station

What’s the latest?

Construction is underway on what will be the nation's largest seawater desalination plant in Carlsbad, Calif, following successful closure of project financing on Dec. 24, 2012.

Earlier in December, the Water Authority and the project’s private developer, Poseidon Resources, secured a favorable interest rate for financing construction bonds for the plant and a related pipeline. The 4.78 percent rate will save an estimated $200 million  over three decades compared to earlier projections, trimming the price of water.  Water from the plant is expected to cost between $1,849 and $2,064 per acre-foot, depending on how much is purchased.  The total cost, including a major pipeline to deliver the desalinated water, is projected at $2,014 to $2,257 per acre-foot. 

In late November, the Water Authority’s Board of Directors approved a Water Purchase Agreement with Poseidon Resources. The plant will produce 50 million gallons a day starting in 2016. By 2020, it will generate enough water to meet 7 percent of the region’s demand.

Also in November, the state court of appeals affirmed the trial court’s rejection of the Surfrider Foundation’s last remaining legal challenge to the project.  Nov. 30, 2012 Court Ruling

The reverse-osmosis desalination facility in Carlsbad will make San Diego County’s water supplies more reliable by reducing the region’s dependence on water from the Colorado River and the Bay-Delta that is vulnerable to droughts, natural disasters and regulatory restrictions. A new 10-mile pipeline will connect the plant to the Water Authority’s aqueduct in San Marcos.

Resources

News Releases

"North American Water Deal of the Year" -- March 3, 2013

$734 Million Carlsbad Desalination Financing Closes - Dec. 24, 2012

Favorable Desalination Project Bond Sale Saves Ratepayers $200 million - Dec. 14 2012

Water Authority Board Approves Landmark Seawater Desalination Project - Nov. 29, 2012

Water Authority Board Continues Due Diligence on Proposed Desalination Contract - Oct. 25, 2012

Water Authority Releases Proposed Carlsbad Desalination Water Purchase Agreement - Sept. 27, 2012

Carlsbad Desalination Plant Site Plan
Click on thumbnail to view site plan

Water Purchase Agreement Documents

For more information on the Water Furnishing Revenue Bonds, Series 2012 (San Diego County Water Authority Desalination Project Pipeline) (Series 2012 Pipeline Bonds), including CUSIPs and the Limited Offering Memorandum, please click here.       

Water Purchase Agreement Fact Sheet

Water Purchase Agreement (Technical appendices to the agreement are available on request)

Board memo and resolution: Potential Adoption of Seawater Desalination Water Purchase Agreement

Seawater Desalination Web Page  

Environmental Documents for the Carlsbad Desalination Project: 

2006 Final EIR and 2009 First Addenda

2012 Second Addendum

2012 Second Addendum MMRP

Approved Permits and Plans