ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 11, Packet Page 206 allocation, which is, in practice, a continuation of the District's existing water allocation program. Based on those findings, the District undertook preparation of an Addendum to the SEIR.
12. The District prepared the EIR Addendum which supported the District's determination that the additional water allocation is within the scope of the 2021 SEIR, did not require subsequent action under CEQA Guidelines Section 15162 and, in conjunction with the 2021 SEIR, adequately analyzes potential environmental impacts. The Addendum was adopted by the District Board in February 2024.
NOW THEREFORE, be it ordained as follows:
ORDINANCE
Section One: Short Title
This ordinance shall be known as the Pure Water Monterey Expansion Allocation Ordinance of the Monterey Peninsula Water Management District.
Section Two: Purpose
This ordinance establishes initial Allocations of water from Pure Water Monterey Expansion for delivery by California-American Water Company to the Jurisdictions in the Monterey Peninsula Water Management District.
Section Three: Amendment to Rule 31, Report on Status of Water Allocations Rule 31 shall be amended as shown in bold italics for new text (bold italics) and strikeout (strikeout) for deletions.
The District shall prepare a Monthly Allocation Report for the Board of Directors with information about debits and credits to Allocations, Entitlements, and other water tracking processes related to Water Permits. This report shall be available to the public. prepare and distribute an annual record to each Jurisdiction showing the current water balance for each A.llocation.
Section Four: Amendment to Rule 33, Jurisdictional and Reserve Water Allocations Rule 33 shall be amended as shown in bold italics for new text (bold italics) and strikeout (strikeout) for deletions. Table 5 shall be added (not shown in bold italics):
RULE 33 - JURISDICTIONAL AND RESERVE WATER ALLOCATIONS
A. JURISDICTIONAL ALLOCATIONS
Permits to authorize new or Intensified Water Use from the California-American MPWMD Ordinance No. 197, Pure Water Monterey Expansion Allocation Ordinance
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 12, Packet Page 207 Carmel
Water Company shall be issued by the District for use in any Jurisdiction pursuant to the application and approval process set forth in District Rule 23Regulation II.
The total quantity of new or Intensified Water Use in each respective Jurisdiction, shall not exceed the amounts set forth in this sectionTable 5, MPWMD Cal-Am Water Allocations by Jurisdiction:
Carmel by the Sea
Del Rey Oaks
Monterey (City)
Pacific Grove
Sand City
Seaside
Monterey County
Monterey Peninsula Airport District
District Reserve (Allocated)
Table 5
19.41 Acre Feet
8.10 Acre Feet
76.32 Acre Feet
25.77 Acre Feet
51.86 A.ere Feet
65.45 Acre Feet
87.71 Acre Feet
8.10 Acre Feet
15.28 Acre Feet
MPWMD Cal-Am Water Allocations by Jurisdiction
Jurisdiction Proposed Existing
PWM Allocation
Expansion as of
Allocation 11/ 30/24*
14AF 2.479AF
Total
Jurisdictional
Allocation*
16.479 AF
De/Rey Oaks 6AF OAF 6.000AF
Monterey 141AF 0.469AF 141.469AF
Pacific Grove 32AF 0.024AF 32.024 AF
Sand City 14AF OAF 14.000AF
Seaside 21AF 29.292AF 50.292AF
Unincorporated Monterey County 72AF 10.940AF 82.940AF
Monterey Peninsula Airport District 44AF 5.197 AF 49.197 AF Department of Defense Sites 27AF OAF 27.000AF
District Reserve 2,175 AF 2,175AF
* Allocation will be updated to reflect Paralta and Pre-Paralta Allocations remaining in each Jurisdiction upon the effective date of the ordinance. (This asterisked information shall not be published in Rule 33.) B. DISTRICT RESERVE
The District Reserve Allocation shall refer to a quantity of water available for use at the District's discretion, including future allocation. The District Reserve Allocation can be augmented by dedications of water from a Water Entitlement, Water Use Credit, Water Credit, or a new Source of Supply.
MPWMD Ordinance No. 197, Pure Water Monterey Expansion Allocation Ordinance
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 13, Packet Page 208 C. WATER WEST ADJUSTMENT RESERVE
A special reserve shall be has been established to replenish separate from the Monterey County Allocation for new and intensified water use approved by Monterey County which occurs within the boundaries of the former Water West Water Distribution System in Carmel Valley. R�plenishment of Monterey County's Allocation from this special reserve shall occur only upon the approval of water use for real property \Vithin the Water West boundary. The total quantity of water use to replenish Monterey County's Allocation available pursuant to this paragraph shall not exceed 12.76 Acre-Feet (sales).
D. LIMIT ON FUTURE WATER ALLOCATIONSCOST OF ALLOCATION
There \vill be no further allocation of water until an adequate water supply is established.There shall be no sale of water from an Allocation by a Jurisdiction.
Water permitted from an Allocation shall, however, be subject to the Capacity Fee collected by the District.
E. RELEASE OF ALLOCATION
A Jurisdiction shall release water from an Allocation by use of the Water Release Form approved by the District. A Water Release Form shall expire after five years or more frequently as determined by the Jurisdiction. Jurisdictions are encouraged to maintain records of the release of water and expiration.
F. DETERMINATION OF ALLOCATIONS
1. The District began the process of determining Jurisdictional Allocations in 2023, culminating in a meeting on September 12, 2024, to provide a detailed overview of the District's methodology and process for · distribution of the new supplies. The process was summarized for Jurisdictions' boards and councils at subsequent public meetings.
The methodology used by the District to determine the Allocations of water to be available in 2025 included, but was not limited to:
a. The recent 5-year average water demand by Jurisdiction. b. Total water supplies, inclusive of the Pure Water Monterey Expansion, were calculated and the existing recent 5-year average total demand was subtracted. Of the difference, 1,000 AF was identified to be held in the District Reserve as a ''factor of safety." The remainder was considered "available" for allocation.
MPWMD Ordinance No. 197, Pure Water Monterey Expansion Allocation Ordinance
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 14, Packet Page 209 c. The 25-year growth rate in water demand by Jurisdiction was forecasted based upon the Association of Monterey Bay Area Governments (AMBAG) Regional Growth Forecast, utilizing population growth for future Residential water use and job growth for future Non-Residential water use.
d. The alternate methodology of a survey was used for determining future demands for the Monterey Peninsula Airport District and the Army, Navy, and Coast Guard (Department of Defense Sites). e. Adjustments, if any, were made for the 6
t11 Cycle Regional Housing
Needs Allocation (RHNA).
f. It was determined that the 25-year total increase in demand was less than the new supplies available for allocation. Based on each Jurisdiction's forecasted 25-year demand, a portion of its future demand has been Allocated from the new available supply (Pure Water Monterey Expansion) and the remainder retained in the District Reserve, available for future allocation.
g. Existing unused Jurisdictional Allocations as of the effective date of this Ordinance were left intact.
2. The Board of Directors shall examine the Allocations at least every four years following the AMBA G Regional Growth Forecast. Allocations may be reviewed more frequently at the discretion of the Board.
G. BISHOP AND RYAN RANCH SUB-UNITS
Section Five:
Henceforth, water Connections in the Bishop and Ryan Ranch subsystems of Cal-Am shall be tracked and accounted for using the same methodology as the Main California American Water System described in Regulation II, including the requirement/or authorization of water from the Jurisdiction's Allocation as described in Rule 23 and calculated in Rule 24.
Availability of Allocations
Each Jurisdiction should limit the release of water from its Allocation to projects that will not be completed before December 31, 2025, until Pure Water Monterey Expansion has received its final approval. All projects using an Allocation, with the exceptions of the Bishop, Ryan Ranch, and Hidden Hills units of Cal-Am, are subject to the moratorium on new Connections imposed by SWRCB Orders WR 2009-0060 and WR 2016-0016. Pre-existing Paralta and pre-Paralta Allocations may continue to be used in the interim.
Section Six: Residential Retrofit Credit (Ordinances 74 and 90 MPWMD Ordinance No. 197, Pure Water Monterey Expansion Allocation Ordinance
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 15, Packet Page 210 Ordinances No. 74 and No. 90 enacted a program allowing toilet retrofit water savings to be used to offset added water fixtures in Residential uses. The ordinances specified that the reinvested savings must be debited from a future allocation. From 1995 through 1998, 12.7 Acre-Feet (AF) of savings were used through the program. As required by the program, 12. 7 AF shall be accounted for from the District Reserve Allocation.
Section Seven: Effective Date
This ordinance shall take effect at 12:01 a.m. on March 1, 2025.
Section Eight: Severability
If any subdivision, paragraph, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the validity or enforcement of the remaining portions of this ordinance, or of any other provisions of the Monterey Peninsula Water Management District Rules and Regulations. It is the District's express intent that each remaining portion would have been adopted irrespective of the fact that one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
PASSED AND ADOPTED on this 27th day of January 2025 on a motion by Director Riley with a second by Director Paull by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Lindor, Paull, Daniels, Edwards, Oglesby and Riley
Anderson
None
I, David J. Stoldt, Secretary to the Board of Directors of the Monterey Peninsula Water Management District, hereby certify the foregoing ordinance was duly adopted on the 27th day of January 2025.
Dated: January 28, 2025
U:\staff\Ordi nances\2025\Ordinance 197. docx
David J. Stoldt
MPWMD Ordinance No. 197, Pure Water Monterey Expansion Allocation Ordinance
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 16, Packet Page 211 October 21, 2025
Mr. Eric Oppenheimer
Executive Director
State Water Resources Control Board
PO Box 100
Sacramento, CA 95812
Subject: Application for Order Modifying WRO 2016-0016 Cease and Desist Order (CDO), and Precedents WRO 2009-0060 and Order 95-10 Dear Mr. Oppenheimer:
The State Water Resources Control Board’s (SWRCB) protection and enforcement of water rights on the Carmel River has been in force since 1995, through Order 95-10, subsequently reinforced by Cease and Desist Order WR 2009-0060 as amended in WR 2016-0016.
Pursuant to Water Code Section 1832, the Monterey Peninsula Water Management District (Applicant or District) is an “aggrieved person” and was also an “Applicant” in Order WR 2016-00161
. The District, by this letter, hereby applies to the SWRCB for an order modifying Order WR 2016-0016 (referred to herein as “Order” or “CDO”).
Water Code Section 1831, subdivision (d) authorizes the SWRCB to issue a CDO in response to a violation or threatened violation of numerous conditions, including the prohibition set forth in Section 1052 of the Water Code against the unauthorized diversion or use of water. The District believes it is timely for the SWRCB to modify the Order for the following reasons:
• There has been no violation of Section 1052 for four (4) years, and • There is no threatened violation of Section 1052 in the foreseeable future.
The District hereby submits the enclosed Application for Order Modifying SWRCB Orders 2016-0016 and WR 2009-0060. We respectfully request the SWRCB address the need to modify the CDO with an effective date no later than January 31, 2026.
As always, we appreciate your commitment of time and consideration of this matter. Please contact me to discuss when and how the SWRCB intends to proceed. 1 See footnote 16 of Order WR 2016-0016, page 20.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 17, Packet Page 212 Sincerely,
David Stoldt
General Manager
Monterey Peninsula Water Management District
CC: [via email]
E. Joaquin Esquivel
Doren D’Adamo
Nichole Morgan
Sean Maquire
Laurel Firestone
Erik Ekdahl
Juliet Christian-Smith
Robert Cervantes
Michael Lauffer
Julia Nick
Courtney Tyler
David Laredo
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 18, Packet Page 213
DE LAY & LAREDO
David C. Laredo (State Bar No. 66532)
606 Forest Avenue
Pacific Grove, CA 93950
Telephone: (831) 646-1502
Attorneys for MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
STATE OF CALIFORNIA
STATE WATER RESOURCES CONTROL BOARD
In the Matter of the Unauthorized Diversion
and Use of Water by the California American
Water Company; Cease and Desist Order WR
2016-0016
APPLICATION FOR ORDER MODIFYING
STATE WATER BOARD ORDERS WR
2016-0016 and WR 2009-0060 (CEASE AND
DESIST ORDER)
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 19, Packet Page 214 Pursuant to Water Code Section 1832, the Monterey Peninsula Water Management District (Applicant or District), which was one of the “Applicants” as defined in Order WR 2016-00161
, hereby applies to the State Water Resources Control Board (SWRCB) for an order modifying certain of the ordering provisions enforced upon California American Water (CalAm) in Order WR 2016-0016 (referred to herein as “Order” or “CDO”) and which amended WR 2009-0060.2
I. Background
During drought years of the late 1980s and early 1990s, four complaints were filed to the SWRCB expressing concern about the environmental impacts of Cal-Am’s pumping on the Carmel River’s habitat and fish population. They included the Carmel River Steelhead Association (1987), Residents Water Committee (1989), Sierra Club (1991), and California Department of Parks & Recreation (1991). The steelhead trout and red-legged frog, aquatic residents of the Carmel River, later became “Threatened” species under the Endangered Species Act.
In July 1995, the SWRCB issued Order No. WR 95-10 which identified an estimated 10,730 acre-feet per year (AFY) of historical unauthorized Cal-Am diversions from the Carmel River that had to be replaced by another water project or projects. Over time, that number declined due to permanent demand reductions within the service territory, primarily due to District conservation programs and Cal-Am rate structures.
Because of a lack of progress toward completion of a replacement water supply, the SWRCB issued a Cease and Desist Order (CDO) on October 20, 2009 (Order WR 2009-0060).
The CDO set mandatory reductions of the Carmel River diversions culminating in a legally authorized diversion amount of 3,376 AFY by December 31, 2016. On July 19, 2016, the 1 See footnote 16 of Order WR 2016-0016, page 20. 2 Applicant understands that, as of its effective date, the requested Order would supersede the ordering provisions of State Water Board Orders WR 2016-0016, WR 2009-0060, and 95-10. All other provisions of State Water Board orders concerning CAW’s diversions from the Carmel River would remain in effect until terminated by law or action of the State Water Board.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 20, Packet Page 215 SWRCB adopted Order WR 2016-0016 amending Order WR 2009-0060 and extending the CDO period to December 31, 2021.
II. Preliminary Statement
A cease and desist order is an enforcement tool under Water Code Section 1831, subdivision (d) in response to a violation or threatened violation of unauthorized diversion or use of water under California Water Code Section 1052. Section 1052, subsection (a) provides “[t]he diversion or use of water subject to this division other than as authorized in this division is a trespass.” Hence, the key tests are – Test A: Is there a current violation or trespass? and, Test B:
Is there a threatened or likelihood of a violation in the foreseeable future? Test A: There is No Current Violation or Trespass Under Water Code Sec. 1052 The Monterey Peninsula communities have reduced consumption of water by over 4,300 AF since issuance of WR 2009-0060 in October 2009. This success has been due to aggressive conservation practices through District ordinances and incentives, and the steeply tiered Cal-Am local rate structure.
Water Demand in AF
Production for Customer Service (Demand)
Cal-Am Monterey Water System
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
20002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022202320242025 ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 21, Packet Page 216 For the past four years, Cal-Am diversions from the Carmel River were less than its legal water right and have not been in violation of Water Code Section 1052. This is due primarily to the Pure Water Monterey base project brought online in 2020. The chart below, derived from Cal-Am’s Consolidated CDO 4th Quarter Report to the SWRCB, shows Cal-Am’s actual diversions compared to its legal limit each October.
Water
Year
Carmel River
Diversions (AF)
Carmel River
Limit (AF)
2025 3,291.223 3,3764
2024 3,336.75 3,376
2023 2,416.33 3,376
2022 3,914.01 4,1105
Test B: There is No Threatened Violation in the Foreseeable Future The Pure Water Monterey Expansion project will become available at the end of 2025, which when combined with the Pure Water Monterey base project promises to offset unlawful diversions by a total of 5,750 AF per year. Further, as discussed in Section V.3. below, Cal-Am continues to pursue its Monterey Peninsula Water Supply Project (MPWSP) desalination plant which could come online in three to five years. At this moment, the proposed desalination plant is NOT a necessary condition to modify the CDO now.
The August 14, 2025 decision (D.25-08-006 as modified by Decision 25-10-001) by the California Public Utilities Commission (CPUC) in Application A.21-11-024 – the Phase 2 Supply and Demand proceeding – indicates no near-term and foreseeable threat of trespass by Cal-Am under Section 1052 of the Water Code. D.25-08-006 confirmed two important findings:
1. Cal-Am has available water supplies in 2025, and going forward without the 3 Preliminary, end of Water Year 2025
4 The total quantity of Carmel River water presently used by Cal-Am does not exceed Cal-Am’s legal rights (calculated as 3,376 AFA pursuant to Order 95-10, page 25, line 4). These legal rights are separate and distinct from water rights related to Aquifer Storage and Recovery or Table 13. 5 SWRCB Letter dated 11/19/21 from E. Ekdahl to R. Donlan, p.2.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 22, Packet Page 217 MPWSP, of at least 11,204 AF
2. Cal-Am’s system Water Demand in 2050 does not exceed 13,732 AF The CPUC did not rule on what is considered to be current water demand, however actual data can be utilized for determining such. Current water demand as of October 1, 2025, based on the last 5-year average of production for delivery to customer service is 9,245 AF. A chart showing water demand compared to available supply using the CPUC’s findings in D.25-08-006 as modified by Decision 25-10-001 is shown below:
Available Water Supplies v. Water Demand
Based on CPUC Decision D.25-08-006 as modified by Decision 25-10-001 The chart shows available supplies will exceed demand for the next 11 years through 2036.
However, the comparison above does not take into account the ability to store water.
Existing infrastructure allows surplus supply in early years to be stored for use in later years.
Efforts to bank surplus water, if optimized, could ensure that demand will not exceed available supplies until at least 2046, or 21 years from today, as shown in the chart below.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 23, Packet Page 218 Available Water Supplies v. Water Demand
Based on CPUC Decision D.25-08-006 as modified by Decision 25-10-001 With Storage of Surplus Supplies
For these reasons, there is no factual basis for the SWRCB to conclude that a “threatened violation” presently exists or will likely arise.
Leaving WR Order 2016-0016 in Place Unfairly Penalizes Residents for Violations Neither Occurring, nor Threatened.
In Order WR 2016-0016, the SWRCB required Cal-Am to comply with Condition 2 of SWRCB Order WR 2009-0060 limiting new service connections and increases of use at existing connections.
Specifically, Order WR 2016-0016 states “This Order shall supersede the requirements in State Water Board Orders WR 2009-0060, 95-10, and any other State Water Board orders affecting Cal-Am’s diversions from the Carmel River to the extent stated herein, or to the extent that there is an irreconcilable conflict between the requirements here and those orders. All other requirements in State Water Board orders affecting Cal-Am’s diversions from the Carmel River ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 24, Packet Page 219 remain in effect until terminated by operation of law or action of the State Water Board.”6
Because WRO 2016-0016 did not directly alter or address Condition 2 of WR 2009-0060, said prior Condition 2 provision remains in effect.
Condition 2 of WR 2009-0060 states “Cal-Am shall not divert water from the Carmel River for new service connections or for any increased use of water at existing service addresses resulting from a change in zoning or use. Cal-Am may supply water from the river for new service connections or for any increased use at existing service addresses resulting from a change in zoning or use after October 20, 2009, provided that any such service had obtained all necessary written approvals required for project construction and connection to Cal-Am’s water system prior to that date.”
The prohibitions against new service connections and increased use at existing service connections resulting from Condition 2 unfairly restrict local jurisdictions from pursuing housing construction mandated by the State and job growth sought by the local business community.
The State Housing and Community Development (HCD) Department has declared there is a housing crisis squarely in the public interest to change. If unmet, local public health and safety will be impaired. The Monterey Peninsula aspires to make progress on its Regional Housing Needs Allocation (RHNA) and housing requirements set by the HCD as mandated by the Housing Element Law, but is restricted by the SWRCB CDO limiting setting of new meters or increasing water use at existing sites.
Similarly, the Association of Monterey Bay Area Governments (AMBAG) most recent Draft Final 2026 Regional Growth Forecast projects 8,250 new jobs in the Cal-Am Monterey Water System by 2050 if there are no constraints. The local business community supports the creation of well-paying jobs to support population and housing growth, and economic prosperity. Constraints such as Condition 2 should be rescinded to allow the community a path forward.
6 WRO 2016-0016 Ordering paragraph 1.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 25, Packet Page 220 III. Relief Requested
Accordingly, Applicant hereby requests that the SWRCB issue a new order modifying and restating certain of the ordering provisions of the CDO as specifically proposed in the Proposed Modified CDO found in Attachment A, hereto.
The Applicant’s proposal would achieve the following:
• Rescind Condition 2 from prior Order(s). The SWRCB would reserve the right to reinstate such a condition subject to monitoring and triggers proposed. • Maintain existing quarterly and annual reporting to the SWRCB, subject to including a few additional data; Certain prior reporting requirements would be clarified or deleted because they have either been met on an ongoing basis or are no longer required.
• Create a water supply and demand monitoring regime that would provide triggers to the SWRCB that would allow the Deputy Director for Water Rights to consider the annually submitted information to determine if a reinstatement of Condition 2 of Order 2009-0060 might be necessary.
IV. The SWRCB has Authority to Modify the CDO
The SWRCB has broad discretion to modify a CDO and to revise a schedule of compliance contained in a CDO. See Order WR 2010-0002. The District makes this Application pursuant to Water Code section 1832, which states, in relevant part: “The board may, after notice and opportunity for hearing, upon its own motion or upon receipt of an application from an aggrieved person, modify, revoke, or stay in whole or in part any cease and desist order issued pursuant to this chapter.”
V. It is Reasonable and in the Public Interest to Modify the CDO as Requested The Public Interest is at Issue.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 26, Packet Page 221 Health and safety concerns place the housing crisis squarely in the public interest to modify the CDO. Senate Bill 330 findings and HDC requirements consider the critical role housing plays in developing sustainable communities and supporting employment growth. If unmet, local public health and safety will be impaired.
Applicant and Cal-Am have Diligently and Aggressively Implemented Measures to Comply with the CDO.
1. Continued Efficiency and Conservation Measures
Prior to and since the issuance of the CDO, Applicant and Cal-Am have dedicated tremendous resources to implement efficiency and conservation measures to control and reduce customer demand and system losses within Cal-Am’s Monterey Water System, such that the community is currently outperforming the Carmel River diversion reduction targets. The Applicant has implemented a variety of customer water conservation and efficiency programs, including programs targeting large commercial customers such as laundries, hotels, and car washes. Monterey Peninsula’s efficiency standards have placed it among the lowest residential per-capita usage in the State. The Applicant and Cal-Am have also implemented programs targeting reductions in outdoor irrigation, including replacement of irrigated turf with drought tolerant landscaping or artificial turf, incentives for installation of weather-based irrigation controllers, mandatory installation of rain sensors on irrigation systems, and mandatory water efficiency requirements for all non-residential customers and certain residential customers.
Since February 2010, Cal-Am implemented, with CPUC approval, a tiered conservation rate structure with increases directed at the top tier users to promote conservation practices and reduce overall water usage. The Applicant has no intention to reduce such measures.
2. Continued Development and Implementation of Projects to Develop Alternative and Supplemental Water Supplies
Since approximately 2015, the Applicant and its partner Monterey One Water have funded and constructed the Pure Water Monterey base and Expansion projects as a replacement water supply necessary to eliminate unauthorized diversions from the Carmel River. The capacity to deliver up to 5,750 AFY will come online by the end of 2025, and will comprise ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 27, Packet Page 222 more than 60% of available water to Cal-Am in the future.
The Applicant has also worked to enable and develop other sources of supply such as the Malpaso Water Company, LLC., the City of Seaside, and certain Seaside Groundwater Basin rights holders to augment supplies available to Cal-Am.
3. Cal-Am is Pursuing Development of an Additional Water Supply On April 23, 2012, CAW filed an application to the CPUC for approval of the MPWSP.
The MPWSP includes a desalination plant and associated source-water slant wells and conveyance system, which can produce up to 6.4 million gallons per day (MGD) for system demand. The CPUC issued a Certificate of Public Convenience and Necessity approving construction on September 13, 2018. Following a November 17, 2022 de novo appeal hearing, the California Coastal Commission adopted final findings for approval (with conditions) of a Coastal Development Permit for a downsized 4.8 MGD, Phase 1, desalination project. Cal-Am continues to attempt to make progress on the Coastal Commission’s 20 special conditions.
4. Continued development and implementation of fish and wildlife protection and enhancement measures.
In 2025, the Applicant successfully carried out its Mitigation Program required by the 1990 Water Allocation Environmental Impact Report and various water permits. This program is designed to preserve the ecological integrity of the Carmel River by alleviating impacts associated with water extraction for the community’s water supply. The program includes river restoration activities, monitoring, and rescuing threatened steelhead from drying portions of the Carmel River and tributaries. This comprehensive program tracks changes in the riparian corridor, steelhead population, depth to groundwater and river flow, and the lagoon environment. The Applicant is committed to continued environmental stewardship and mitigation efforts going forward.
VI. Conclusion
For the reasons stated herein, the Applicant respectfully requests modification of Order ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 28, Packet Page 223 ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 29, Packet Page 224 Attachment A
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 30, Packet Page 225 PROPOSED ORDER AMENDING AND RESTATING ORDER WR 2016-0016 NOW, THEREFORE, IT IS ORDERED THAT as of the effective date of this Order, Cal-Am shall cease and desist from any unauthorized diversion of water from the Carmel River in accordance with the following schedule and conditions.
1. EFFECT ON PRIOR ORDERS AFFECTING CARMEL RIVER DIVERSIONS. This Order shall supersede the requirements in State Water Board Orders WR 2016-0016, WR 2009- 0060, 95-10, and any other State Water Board orders affecting Cal-Am’s diversions from the Carmel River, to the extent stated herein, or to the extent that there is an irreconcilable conflict between the requirements here and those orders. All other requirements in State Water Board orders affecting Cal-Am’s diversions from the Carmel River remain in effect until terminated by operation of law or action of the State Water Board.
2. RESTRICTIONS ON NEW OR EXISTING SERVICE CONNECTIONS. Condition 2 of Order WR 2009-0060 which states, “Cal-Am shall not divert water from the Carmel River for new service connections or for any increased use of water at existing service addresses resulting from a change in zoning or use” is hereby rescinded. The State Water Board reserves the right to reinstate such a condition subject to the monitoring and triggers discussed in Order Condition 4, below.
3. REPORTING. The reporting requirements contained herein supersede reporting required in Orders WR 2016-0016, WR 2009-0060, and 95-10. Cal-Am shall provide and post on its website the following information in quarterly reports:
i. Monthly summaries of the total quantity of water produced from the Carmel River, and other separate sources of water produced by Cal-Am for distribution for customer service within its Monterey service area, limited as shown in Exhibit A, hereto. ii. Monthly summaries of the quantity of “Native” water produced by Cal-Am from the Seaside Groundwater Basin for distribution for customer service within its Monterey service area.
iii. Monthly summaries of the quantity of Pure Water Monterey (PWM) project water delivered to Cal-Am and stored in the Seaside Groundwater Basin. The monthly reporting shall also state quantity of PWM water recovered by Cal-Am from storage for distribution for customer service within its Monterey service area, the current balance of PWM Operating Reserve water, and the current balance of other PWM water available to Cal-Am remaining in storage in the Seaside Groundwater Basin. iv. Monthly summaries of the quantity of ASR project water diverted from the Carmel River under water right Permits 20808A and 20808C and stored in the Seaside Groundwater Basin. The monthly reporting shall also state the quantity of Cal-Am ASR water recovered from aquifer storage for distribution for customer service within its Monterey service area, and the current balance of Cal-Am ASR water remaining in storage in the Seaside Groundwater Basin.
v. Monthly summaries of the quantity of water produced by the Sand City desalinization plant for distribution for customer service within Cal-Am’s Monterey service area.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 31, Packet Page 226 vi. Monthly summaries of the quantity of water supplied under water right Permit 020905B held by Malpaso Water Company, LLC to Cal-Am for distribution for customer service within Cal-Am’s Monterey service area.
vii. Monthly summaries of the quantity of water produced by Cal-Am on behalf of other Seaside Groundwater Basin producers wheeled for distribution for customer service within Cal-Am’s Monterey service area.
viii. Monthly summaries of the quantity of interruptible water supplies being utilized or produced by Cal-Am for distribution for customer service within Cal-Am’s Monterey service area, including but not limited to Table 13 water rights and Seaside Groundwater Basin Carryover Credits
ix. For the final quarter of each water year, the report shall include reflect annual totals for the water year in each reporting category and shall be referred to as the “CDO Annual Consolidated Report.”
x. Cal-Am shall agree the following reporting requirements under WRO 2009-0060 have either been met on an ongoing basis or are no longer required:1 a) Monthly summaries of water saved by reducing system losses. Effective January 1, 2022 this condition is reported pursuant to California Code of Regulations, Title 23, Section 638.5 to CA Department of Water Resources. Submitted reports for past years can be found through their WUE data portal These annual reports are also available upon request.
b) Monthly summaries of water use reductions due to conservation actions. Effective January 1, 2022 this condition is reported as an annual summary of quantifiable and measurable water savings associated with conservation actions via Cal-Am’s "Water Conservation Annual Summary Report" filed as part of Schedule E-3 of the Annual California Public Utilities Commission ("CPUC") Reports per CPUC Decision D.10- 06-038.
c) Monthly summaries of new Cal-Am service connections. d) Monthly summaries identifying existing Cal-Am service addresses that receive an increased supply due to a change in zoning or use.
xi. Cal-Am shall agree the following reporting requirements under Order 95-10 have either been met on an ongoing basis or are no longer required:2 a) Condition 13(b) reports of progress of Monterey Peninsula Water Management District mitigation measures.
1 In a letter dated November 19, 2021 from the State Water Board to the Ellison, Schneider, Harris & Donlan law firm, consolidated reporting related to all State Water Board orders was discussed and was tentatively agreed to by the parties. Current ongoing quarterly reporting by Cal-Am includes multiple items requested in conditions 6, 7, 8, and 11 of WRO 2009-0060. 2 Current ongoing consolidated quarterly reporting by Cal-Am includes multiple items requested in Condition 13 related to Conditions 5-9 of Order 95-10.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 32, Packet Page 227 b) Condition 13(c) as it relates to maximizing Seaside Groundwater Basin production under Condition 4, well operations as it may relate to Conditions 5 and 6. c) Condition 13(c) as it relates to Conditions 7 and 8, as those Conditions have been met.
xii. On July 1 of each year, Cal-Am shall submit an operating plan to the Deputy Director for Water Rights specifying the quantity of water it will supply from the ASR Project for its customers after May 31 of each year.
xiii. Each report submitted by Cal-Am shall be certified under penalty of perjury and shall include the following declaration: "I declare under penalty of perjury, under the laws of the State of California, that all statements contained in this report and any accompanying documents are true and correct, with full knowledge that all statements made in this report are subject to investigation and that any false or dishonest statement may be grounds for prosecution."
xiv. The Deputy Director for Water Rights is authorized to modify the timing and the content of the reporting required by all of the provisions of this Order to more effectively carry out the intent of this Order.
4. MONITORING AND TRIGGERS. The Deputy Director for Water Rights is directed to closely monitor Cal-Am's compliance with Orders WR 2016-0016, WR 2009-0060, 95-10, and this Order. Appropriate action shall be taken to ensure compliance with these Orders including the issuance of additional cease and desist orders under Water Code section 1831, the imposition of administrative civil liability under Water Code section 1055, and referral to the Attorney General under Water Code section 1845 for injunctive relief and for civil liability. If additional enforcement action becomes necessary, the Deputy Director is directed to consider including in such actions all Cal-Am's violations of Water Code section 1052 as may be threatened or occurring in the future.
i. Each year, following the submittal of the Quarter 4 annual report under Condition 3, above, the Deputy Director shall evaluate the Available Supplies compared to the Prior Year Production for Customer Service, where:
a) “Available Supplies” means the total available water supplies available in the upcoming water year as further described in Exhibit B, hereto. b) “Prior Year” means the most recently completed water year, as subject to the reporting requirements of the CDO Annual Consolidated Report. c) “Prior Year Production for Customer Service” means the amounts reported for the most recently completed water year in the CDO Annual Consolidated Report for “Total Carmel Valley Wells for Customer Service” in Table 3, plus the “Total Additional Sources of Supply” in Table 4.
ii. Trigger: If “Prior Year Production for Customer Service” divided by “Available Supplies” equals or exceeds 80%, then:
a) Cal-Am and the Monterey Peninsula Water Management District shall meet with the Deputy Director for Water Rights within ninety (90) days and present a plan for ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 33, Packet Page 228 avoiding future withdrawals from the Carmel River in excess of the established water right.
b) Cal-Am and/or the Monterey Peninsula Water Management District shall (i) calculate the trailing (historical) 5-year average growth rate in water demand as expressed by the most recent five years of Prior Year Production for Customer Service; (ii) apply it to the most recent Prior Year Production for Customer Service; and (iii) determine in how many years that projection in Production for Customer Service will meet or exceed Available Supplies.
iii. The Deputy Director for Water Rights shall consider the submitted information to determine if a reinstatement of Condition 2 of Order 2009-0060 under Condition 2, herein above, should be made.
5. The conditions of this Order, State Water Board Order WR 2016-0016, State Water Board Order WR 2009-0060, and State Water Board Order 95-10 shall remain in effect until the Deputy Director for Water Rights certifies, in writing, the Order has been lifted.
CERTIFICATION
The undersigned Clerk to the Board does hereby certify that the foregoing is a full, true, and correct copy of an order duly and regularly adopted at a meeting of the State Water Resources Control Board held on TBD.
AYE:
NAY:
ABSENT:
ABSTAIN:
_________________________________
Update
Clerk to the Board
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 34, Packet Page 229 Panetta #1 Panetta #2 Garzas #3 Garzas #4 LL #5 LL #6 Total AF Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
TOTAL AF
Berwick #8 Berwick #9 Begonia #2 Schulte #3 Pearce Cypress #2 R. Canada #2 Total Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
TOTAL AF
Well Production for Customer Service
LOWER CV VELLS (AF)
Water Year XXXX
TABLE 2
EXHIBIT A
California American Water
Monterey District
Quarterly CDO Consolidated Compliance Filings
Orders WR 2026-XXXX, WRO 2016-0016, WRO 2009-0060, 95-10 TABLE 1
Well Production for Customer Service
UPPER CV WELLS (AF)
Water Year XXXX
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 35, Packet Page 230 Carmel River
Base Water
Right
EastwoodCanada Well
(Malpaso)
Production
Table #13 Total Carmel
Valley Wells for
Customer
Service
ASR Diversion
Oct
Nov
Dec
Q#1 Total
WYTD
Jan
Feb
Mar
Q#2 Total
WYTD
Apr
May
Jun
Q#3 Total
WYTD
Jul
Aug
Sep
Q#4 Total
WYTD
Seaside Basin
Native Water
Seaside Basin
Carryover
Credits
PWM Recovery ASR Recovery Sand City Desal Served by
Others (Seaside
Basin)
Total Additional
Sources of
Supply
Oct
Nov
Dec
Q#1 Total
WYTD
Jan
Feb
Mar
Q#2 Total
WYTD
Apr
May
Jun
Q#3 Total
WYTD
Jul
Aug
Sep
Q#4 Total
WYTD
Well Production for Customer Service
Carmel River (AF)
Water Year XXXX
Table 4
Well Production for Customer Service
Additional Sources of Supply (AF)
Water Year XXXX
TABLE 3
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 36, Packet Page 231 PWM Drought
Reserve
ASR Bank Total End of
Year Storage
Available
Cum. thru Q#1
Cum. thru Q#2
Cum. thru Q#3
Cum. thru Q#4
Cum. WYTD
Status
Lower CV
Rancho Ca #2
Cypress #2
Pearce
Schulte #3
Begonia #2
Berwick #8
Berwick #9
Eastwood
Eastw'd Well
Upper CV
Panetta #1
Panetta #2
Garzas #3
Garzas #4
Los Laureles #5
Los Laureles #6
TABLE 6
Status of Carmel Valley Wells
Water Year XXXX
TABLE 7
Quarterly Water Supply Strategy and Budget
Include here the most recently adopted quarterly water budget adopted by the District in consultation with Cal-Am, SWRCB, CDWF, and NMFS TABLE 5
Stored Water Available for Customer Service
ASR, PWM, and OTHER (AF)
Water Year XXXX
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 37, Packet Page 232
EXHIBIT B
Definition of “Available Supplies” shall include the following and be included in quarterly reporting and the Cal-Am CDO Annual Consolidated Report under this Order.
Available Supplies in any water year shall refer to the following:
Source of Supply Origination of Supply Amount
(AFY)
Carmel River Base Right State Water Board Order 95-10 defined the CalAm water right in footnote 16 as 1,137 AFY pre1914 appropriative, plus 60 AFY riparian, plus 2,179 AFY per license 11866.
3,376
Seaside Basin Native
Water
Under Superior Court adjudication, Cal-Am is
limited to only 1,474 AFY from the basin.
However, Cal-Am has a water repayment
obligation for past withdrawals (“in-lieu” recharge
plan.) Cal-Am has asserted it would begin
repayment once a desalination plant comes
online. Until then, the Basin water right is
deemed part of Available Supplies.
The amount available from the Seaside Basin
should be monitored by the Deputy Director for
Water Rights for the status of the “in-lieu”
recharge plan.
1,474
Pure Water Monterey w/
Expansion
Under the amended Pure Water Monterey Water
Purchase Agreement, Cal-Am is obligated to
purchase 5,750 AFY.
5,750
Aquifer Storage &
Recovery (ASR)
This source comprises water stored in the
Seaside Groundwater Basin under water right
Permits 20808A and 20808C. The 59-year
hydrologic data indicates an annual availability of
1,210 AFY. However, for purposes of annual
“Available Supplies” the ASR source will be
reflected in the “Available Storage” line, below.
0*
Sand City Desalination The plant is owned by the City of Sand City and leased to Cal-Am for operations. The plant was
designed for 300 AFY, but operations indicate
that may not be attainable. The plant achieved
276 AF in 2011 and 245 AF in 2015. However,
due to source well failure, recent production has
declined. A new source water well is currently
being permitted by Cal-Am and is expected to
bring supply availability back to an average of
200 AFY.
200
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 38, Packet Page 233 Malpaso Water LLC Under State Water Board License 13868A, diversion of water for municipal use under the
right is subject to the requirement that the right
holder make the water available to Cal-Am for
use in its water distribution system for the
purpose of reducing Cal-Am’s unauthorized
diversions identified in State Water Board Orders
95-10 and 2009-0060. Going forward, such water
is simply added to the system for delivery to CalAm customers. The stated amount is 85.6 AFY.
85.6 Supplied by Others
(Seaside Basin)
The City of Seaside has entered into a contract
with Cal-Am to deliver 13 AFY of Seaside
Municipal Water System’s own stored water
rights in the Seaside Basin for delivery to Cal-Am
customers.
Other Seaside Basin producers have contracted
for delivery of 7 AFY for delivery to Cal-Am
Customers.
20 Available Storage Available Storage shall mean end of Prior Year storage from the *ASR Program plus the Pure
Water Monterey Drought Reserve amount, plus
other storage as it may become available in the
future.
Reported as
4,392.7 AF
end of
Water Year
2025
Table 13 Rights This water right is deemed “interruptible” and therefore not counted in: “Available Supplies”
0 Seaside Basin Carryover
Credit
This water right is deemed “interruptible” and
therefore not counted in: “Available Supplies”
0 Total “Available Supplies”
as of end of Prior Year
9/30/25
15,298.3
This table shall be revised from time to time under the following circumstances:
a) A new source of supply comes online;
b) An existing source of supply is retired or unavailable for an extended period; c) Additional storage is accrued; and
d) When an “in-lieu” recharge program is enacted in the Seaside Groundwater Basin that affects Cal-Am’s production rights.
ATTACHMENT 4
Council Regular Meeting, 11/18/2025, Item No. 14., Item Page 39, Packet Page 234 Council
Agenda Report
№11/25
FROM: Kimberly Cole, AICP, Community Development Director SUBJECT: Direct Staff to Send a Letter of Support to the State Water Resources Control Board for Modifications to the Cease-and-Desist Order WR 2016-0016 that Recognizes the Pure Water Monterey and Desalination Water Supply Projects (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:
That the City Council direct staff to send a letter of
support for modifications to the Cease-and-Desist
Order WR 2016-0016 that recognizes the Pure
Water Monterey and desalination water supply
projects (Attachment 1).
VALUE DRIVERS:
Champion regional and local efforts to secure
adequate, affordable, and sustainable water sources
for the city, now and into the future.
POLICY IMPLICATIONS:
The City’s General Plan contains a specific program
to address water supply constraints.
Housing Element Program 2-K Addressing Water
Supply Constraints. The primary constraint to
development on the Monterey Peninsula is water
supply. While new sources of water supply are
anticipated to become available during the planning
period, the City does not currently have access to
sufficient water to support development of its full
RHNA allocation. Therefore, the City will the City
continue to work with other jurisdictions and
agencies to optimize the use of available supply in
the short-terms and to augment the existing water
supply in the mid- to long-term with the following
actions:
• Continue to require as a condition of project
approval that new development and remodels
implement the Monterey Peninsula Water
Agenda Report Highlights
The City Council is recommended to
send a letter supporting modifications
to the Cease-and-Desist Order WR
2016-0016.
The modifications aim to address
water supply constraints and support
housing and economic development
on the Monterey Peninsula.
The Monterey Peninsula Water
Management District has requested
cities to submit letters of support to
the State Water Resources Control
Board by December 1st.
The City’s General Plan Housing
Element Program 2-K supports
efforts to expand water supply
through projects like Pure Water
Monterey Expansion and the
Monterey Peninsula Water Supply
Project Ocean Desalination Plant.
Two templates for letters of support
are presented. One addresses both
the Pure Water Monterey Expansion
and implementation of a desalination
facility, and the other is based on the
near-term addition of the Pure Water
Monterey Expansion.
Date: 11/18/2025
Item No.: 15.
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 1, Packet Page 235 №10/24
Management District's Rule 142 Water Efficiency Standards, as applicable, in order to minimize the use of water;
• Support efforts by the Monterey Peninsula Water Management District (MPWMD), the California American Water Company (Cal Am), and the Marina Coast Water District (MCWD) to expand the water supply, including but not limited to future supply from the Pure Water Monterey Expansion Project and the Monterey Peninsula Water Supply Project Ocean Desalination Plant, anticipated to become available by 2030. Support will include:
- Advocating at least annually for additional water supply, through meetings with agency staff, written communications, and comments at public meetings; and - Continuing to participate in regional decision-making processes, such as representation on the Monterey One Water (M1W) Board of Directors; • Work with MPWMP and Cal Am to increase participation among City of Monterey households in water conservation programs such as Water Wise House Calls (free water conservation audits for homeowners and renters) and Free Devices (Cal Am and MPWMD offer customers free water-saving devices including low-flow showerheads, sink aerators, hose nozzles, and timers)to augment water for existing development projects. City actions will include promoting the availability of water conservation programs through web, email, and social media communications at least annually;
• Upon adoption of the Housing Element, provide a copy of the Element to MPWMD, Cal Am, and MCWD to facilitate prioritization of adequate supply for affordable housing projects, in compliance with AB 1087.
CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.
FISCAL IMPLICATIONS:
No fiscal implications have been identified.
ENVIRONMENTAL DETERMINATION:
The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 2, Packet Page 236 №10/24
ALTERNATIVES CONSIDERED:
The City Council can send a letter supporting the lifting of the order but take no position on the desalination plant (Attachment 2). Staff does not recommend this option because the City’s General Plan calls for the City to support water supply projects and both projects are proceeding.
DISCUSSION:
The Monterey Peninsula Water Management District requests that cities submit to the State Water Resources Control Board a letter of support for the modification of the Cease-and-Desist Order by December 1st.
The District provided two templates for letters of support:
1) A Letter of Support that addresses both the Pure Water Monterey Expansion and implementation of a desalination facility; or
2) A Letter of Support based on the near-term addition of the Pure Water Monterey Expansion
Staff recommends the first option to fulfill Housing Element Program 2-K.
Background
The Monterey Peninsula water supply is subject to a State Cease-and-Desist Order (CDO), which limits the setting of new water meters and restricts increases in water use at existing connections. Both actions have been problematic for encouraging any economic growth or housing starts.
Specifically, SWRCB Order No. WR 95-10 dated July 6, 1995, determined that Cal-Am did not have the right to divert as much water from the Carmel River system as it historically did. The SWRCB, through Order WR 2009-0060, authorized Cal-Am to continue these diversion levels until 2017, and then again through Order WR 2016-0016 to 2021, at which point alternative water supplies were required to avoid significant threats to the health, safety and welfare of residents, businesses, visitors and property owners on the Monterey Peninsula.
Over the past four years, the water that is supplied to the Monterey Peninsula by California American Water Company from the Carmel River has not exceeded the legally allowed amount as determined by the State Water Board. This lack of current violation and the impending startup of the Pure Water Monterey Expansion project creates an opportunity for the State to modify its CDO in favor of housing and jobs. In addition, Cal Am is pursuing the desalination plant that will provide future water supply to the peninsula.
The Monterey Peninsula Water Management District applied to the State Water Resources Control Board to request the Cease-and-Desist Order be modified in hopes the area can start developing much needed housing projects which will also spur additional economic activity. The application is attached (Attachment 3).
The City’s General Plan Housing Element Program 2-K states, “…Support efforts by the Monterey Peninsula Water Management District (MPWMD), the California American Water Company (Cal-AM), and the Marina Coast Water District (MCWD) to expand the water supply, including but not limited to future supply from the Pure Water Monterey Expansion Project and the Monterey Peninsula Water Supply Project Ocean Desalination Plant, anticipated to become Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 3, Packet Page 237 №10/24
available by 2030.” As a result, staff recommends the City Council direct staff to send a letter of support for modifications to the Cease-and-Desist Order WR 2016-0016 that recognizes the Pure Water Monterey and desalination projects consistent with General Plan Housing Element Program 2-K.
KC
Attachments: 1. Option 1 - Letter of Support for Modifications to the Cease-and-Desist Order WR 2016-0016 that recognizes the Pure Water Monterey and desalination projects
2. Option 2 – Letter of Support for Modifications to the Cease-and-Desist Order WR 2016-0016 that recognizes Pure Water Monterey project
3. Monterey Peninsula Water Management District application to the State Water Resources Control Board
e: All neighborhood associations
All business associations
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 4, Packet Page 238 ATTACHMENT 1
November 19, 2025
Dr. Juliet Christian-Smith, Deputy Director Water Rights State Water Resources Control Board
1001 I Street,
Sacramento CA 95814
RE: Letter of Support for Modifications to the Cease-and-Desist Order WR 2016-0016 Dear Dr. Christian-Smith:
On behalf of City of Monterey, we respectfully request the State Water Board to modify the Cease-andDesist Order (CDO) to allow the Monterey Peninsula to increase its much-needed housing requirements and experience modest economic development.
The Pure Water Monterey project, which came online in 2021, coupled with the Monterey Peninsula’s longstanding commitment to water-wise conservation strategies for both commercial and residential water consumption, has resulted in California American Water (Cal Am) not exceeding their legal amount of water available from the Carmel River for the past four years. With the addition of the Pure Water Monterey Expansion project coming online, there is no threat of Cal-Am exceeding legal limits in the foreseeable future. This was confirmed by the California Public Utilities Commission (CPUC) in a decision adopted on August 14th, 2025.
The current moratorium on new connections was put in place by the CPUC in response to the 2009 Order WR 2009-0060 by the State Board. This restriction on setting any new water meters in the service area could be lifted if the State Board were able to rescind Condition 2 of the CDO.
Our community and vested stakeholders are eager to start fulfilling the Regional Housing Needs Allocation (RHNA) in order to have more affordable housing options for local workforce employees.
Working to align business and housing interests for the benefit of our members is a win for all communities on the Monterey Peninsula.
The City of Monterey supports construction of the Monterey Peninsula Water Supply Project desalination plant and firmly believes this facility is a permanent and sustainable water supply for the community moving forward. However, until this new supply is online, we support this current effort to rescind Condition 2 of the CDO and allow for the construction of new housing and creation of local jobs.
The City of Monterey encourages you and the State Water Board members to modify the Cease-andDesist Order to allow local jurisdictions the autonomy to develop projects that benefit our residents and businesses.
Sincerely,
Tyller Williamson
Mayor
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 5, Packet Page 239 ATTACHMENT 2
November 19, 2025
Dr. Juliet Christian-Smith, Deputy Director Water Rights State Water Resources Control Board
1001 I Street,
Sacramento CA 95814
RE: Letter of Support for Modifications to the Cease-and-Desist Order WR 2016-0016 Dear Dr. Christian-Smith:
On behalf of the City of Monterey, we respectfully request the State Water Board to modify the Ceaseand-Desist Order (CDO) to allow the Monterey Peninsula to experience an increase in much-needed housing and economic development.
The Pure Water Monterey project, which came online in 2021, coupled with the Monterey Peninsula’s longstanding commitment to water-wise conservation strategies for both commercial and residential water consumption, has resulted in California American Water (Cal-Am) not exceeding the legal amount of water available from the Carmel River for the past four years. With the Pure Water Monterey Expansion project now online, there is no threat of Cal-Am exceeding the legal water right limits on the Carmel River in the foreseeable future. This was confirmed by the California Public Utilities Commission (CPUC) in a decision adopted on August 14th, 2025.
The current moratorium on new connections was put in place by the CPUC in response to the 2009 Order WR 2009-0060 by the State Board. This restriction on setting any new water meters in the service area could be lifted if the State Board were able to rescind Condition 2 of the CDO.
Our community and vested stakeholders are eager to start fulfilling the Regional Housing Needs Allocation (RHNA) in order to have more affordable housing options for local workforce employees.
Working to align business and housing element interests for the benefit of our members is a win for all communities on the Monterey Peninsula.
The City of Monterey encourages you and the State Water Board members to modify the Cease-andDesist Order to allow local jurisdictions the autonomy to develop projects that benefit our residents and businesses.
Sincerely,
Tyller Williamson, Mayor
City of Monterey
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 6, Packet Page 240 October 21, 2025
Mr. Eric Oppenheimer
Executive Director
State Water Resources Control Board
PO Box 100
Sacramento, CA 95812
Subject: Application for Order Modifying WRO 2016-0016 Cease and Desist Order (CDO), and Precedents WRO 2009-0060 and Order 95-10 Dear Mr. Oppenheimer:
The State Water Resources Control Board’s (SWRCB) protection and enforcement of water rights on the Carmel River has been in force since 1995, through Order 95-10, subsequently reinforced by Cease and Desist Order WR 2009-0060 as amended in WR 2016-0016.
Pursuant to Water Code Section 1832, the Monterey Peninsula Water Management District (Applicant or District) is an “aggrieved person” and was also an “Applicant” in Order WR 2016-00161
. The District, by this letter, hereby applies to the SWRCB for an order modifying Order WR 2016-0016 (referred to herein as “Order” or “CDO”).
Water Code Section 1831, subdivision (d) authorizes the SWRCB to issue a CDO in response to a violation or threatened violation of numerous conditions, including the prohibition set forth in Section 1052 of the Water Code against the unauthorized diversion or use of water. The District believes it is timely for the SWRCB to modify the Order for the following reasons:
• There has been no violation of Section 1052 for four (4) years, and • There is no threatened violation of Section 1052 in the foreseeable future.
The District hereby submits the enclosed Application for Order Modifying SWRCB Orders 2016-0016 and WR 2009-0060. We respectfully request the SWRCB address the need to modify the CDO with an effective date no later than January 31, 2026.
As always, we appreciate your commitment of time and consideration of this matter. Please contact me to discuss when and how the SWRCB intends to proceed. 1 See footnote 16 of Order WR 2016-0016, page 20.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 7, Packet Page 241 Sincerely,
David Stoldt
General Manager
Monterey Peninsula Water Management District
CC: [via email]
E. Joaquin Esquivel
Doren D’Adamo
Nichole Morgan
Sean Maquire
Laurel Firestone
Erik Ekdahl
Juliet Christian-Smith
Robert Cervantes
Michael Lauffer
Julia Nick
Courtney Tyler
David Laredo
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 8, Packet Page 242
DE LAY & LAREDO
David C. Laredo (State Bar No. 66532)
606 Forest Avenue
Pacific Grove, CA 93950
Telephone: (831) 646-1502
Attorneys for MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
STATE OF CALIFORNIA
STATE WATER RESOURCES CONTROL BOARD
In the Matter of the Unauthorized Diversion
and Use of Water by the California American
Water Company; Cease and Desist Order WR
2016-0016
APPLICATION FOR ORDER MODIFYING
STATE WATER BOARD ORDERS WR
2016-0016 and WR 2009-0060 (CEASE AND
DESIST ORDER)
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 9, Packet Page 243 Pursuant to Water Code Section 1832, the Monterey Peninsula Water Management District (Applicant or District), which was one of the “Applicants” as defined in Order WR 2016-00161
, hereby applies to the State Water Resources Control Board (SWRCB) for an order modifying certain of the ordering provisions enforced upon California American Water (CalAm) in Order WR 2016-0016 (referred to herein as “Order” or “CDO”) and which amended WR 2009-0060.2
I. Background
During drought years of the late 1980s and early 1990s, four complaints were filed to the SWRCB expressing concern about the environmental impacts of Cal-Am’s pumping on the Carmel River’s habitat and fish population. They included the Carmel River Steelhead Association (1987), Residents Water Committee (1989), Sierra Club (1991), and California Department of Parks & Recreation (1991). The steelhead trout and red-legged frog, aquatic residents of the Carmel River, later became “Threatened” species under the Endangered Species Act.
In July 1995, the SWRCB issued Order No. WR 95-10 which identified an estimated 10,730 acre-feet per year (AFY) of historical unauthorized Cal-Am diversions from the Carmel River that had to be replaced by another water project or projects. Over time, that number declined due to permanent demand reductions within the service territory, primarily due to District conservation programs and Cal-Am rate structures.
Because of a lack of progress toward completion of a replacement water supply, the SWRCB issued a Cease and Desist Order (CDO) on October 20, 2009 (Order WR 2009-0060).
The CDO set mandatory reductions of the Carmel River diversions culminating in a legally authorized diversion amount of 3,376 AFY by December 31, 2016. On July 19, 2016, the 1 See footnote 16 of Order WR 2016-0016, page 20. 2 Applicant understands that, as of its effective date, the requested Order would supersede the ordering provisions of State Water Board Orders WR 2016-0016, WR 2009-0060, and 95-10. All other provisions of State Water Board orders concerning CAW’s diversions from the Carmel River would remain in effect until terminated by law or action of the State Water Board.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 10, Packet Page 244 SWRCB adopted Order WR 2016-0016 amending Order WR 2009-0060 and extending the CDO period to December 31, 2021.
II. Preliminary Statement
A cease and desist order is an enforcement tool under Water Code Section 1831, subdivision (d) in response to a violation or threatened violation of unauthorized diversion or use of water under California Water Code Section 1052. Section 1052, subsection (a) provides “[t]he diversion or use of water subject to this division other than as authorized in this division is a trespass.” Hence, the key tests are – Test A: Is there a current violation or trespass? and, Test B:
Is there a threatened or likelihood of a violation in the foreseeable future? Test A: There is No Current Violation or Trespass Under Water Code Sec. 1052 The Monterey Peninsula communities have reduced consumption of water by over 4,300 AF since issuance of WR 2009-0060 in October 2009. This success has been due to aggressive conservation practices through District ordinances and incentives, and the steeply tiered Cal-Am local rate structure.
Water Demand in AF
Production for Customer Service (Demand)
Cal-Am Monterey Water System
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
20002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022202320242025 ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 11, Packet Page 245 For the past four years, Cal-Am diversions from the Carmel River were less than its legal water right and have not been in violation of Water Code Section 1052. This is due primarily to the Pure Water Monterey base project brought online in 2020. The chart below, derived from Cal-Am’s Consolidated CDO 4th Quarter Report to the SWRCB, shows Cal-Am’s actual diversions compared to its legal limit each October.
Water
Year
Carmel River
Diversions (AF)
Carmel River
Limit (AF)
2025 3,291.223 3,3764
2024 3,336.75 3,376
2023 2,416.33 3,376
2022 3,914.01 4,1105
Test B: There is No Threatened Violation in the Foreseeable Future The Pure Water Monterey Expansion project will become available at the end of 2025, which when combined with the Pure Water Monterey base project promises to offset unlawful diversions by a total of 5,750 AF per year. Further, as discussed in Section V.3. below, Cal-Am continues to pursue its Monterey Peninsula Water Supply Project (MPWSP) desalination plant which could come online in three to five years. At this moment, the proposed desalination plant is NOT a necessary condition to modify the CDO now.
The August 14, 2025 decision (D.25-08-006 as modified by Decision 25-10-001) by the California Public Utilities Commission (CPUC) in Application A.21-11-024 – the Phase 2 Supply and Demand proceeding – indicates no near-term and foreseeable threat of trespass by Cal-Am under Section 1052 of the Water Code. D.25-08-006 confirmed two important findings:
1. Cal-Am has available water supplies in 2025, and going forward without the 3 Preliminary, end of Water Year 2025
4 The total quantity of Carmel River water presently used by Cal-Am does not exceed Cal-Am’s legal rights (calculated as 3,376 AFA pursuant to Order 95-10, page 25, line 4). These legal rights are separate and distinct from water rights related to Aquifer Storage and Recovery or Table 13. 5 SWRCB Letter dated 11/19/21 from E. Ekdahl to R. Donlan, p.2.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 12, Packet Page 246 MPWSP, of at least 11,204 AF
2. Cal-Am’s system Water Demand in 2050 does not exceed 13,732 AF The CPUC did not rule on what is considered to be current water demand, however actual data can be utilized for determining such. Current water demand as of October 1, 2025, based on the last 5-year average of production for delivery to customer service is 9,245 AF. A chart showing water demand compared to available supply using the CPUC’s findings in D.25-08-006 as modified by Decision 25-10-001 is shown below:
Available Water Supplies v. Water Demand
Based on CPUC Decision D.25-08-006 as modified by Decision 25-10-001 The chart shows available supplies will exceed demand for the next 11 years through 2036.
However, the comparison above does not take into account the ability to store water.
Existing infrastructure allows surplus supply in early years to be stored for use in later years.
Efforts to bank surplus water, if optimized, could ensure that demand will not exceed available supplies until at least 2046, or 21 years from today, as shown in the chart below.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 13, Packet Page 247 Available Water Supplies v. Water Demand
Based on CPUC Decision D.25-08-006 as modified by Decision 25-10-001 With Storage of Surplus Supplies
For these reasons, there is no factual basis for the SWRCB to conclude that a “threatened violation” presently exists or will likely arise.
Leaving WR Order 2016-0016 in Place Unfairly Penalizes Residents for Violations Neither Occurring, nor Threatened.
In Order WR 2016-0016, the SWRCB required Cal-Am to comply with Condition 2 of SWRCB Order WR 2009-0060 limiting new service connections and increases of use at existing connections.
Specifically, Order WR 2016-0016 states “This Order shall supersede the requirements in State Water Board Orders WR 2009-0060, 95-10, and any other State Water Board orders affecting Cal-Am’s diversions from the Carmel River to the extent stated herein, or to the extent that there is an irreconcilable conflict between the requirements here and those orders. All other requirements in State Water Board orders affecting Cal-Am’s diversions from the Carmel River ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 14, Packet Page 248 remain in effect until terminated by operation of law or action of the State Water Board.”6
Because WRO 2016-0016 did not directly alter or address Condition 2 of WR 2009-0060, said prior Condition 2 provision remains in effect.
Condition 2 of WR 2009-0060 states “Cal-Am shall not divert water from the Carmel River for new service connections or for any increased use of water at existing service addresses resulting from a change in zoning or use. Cal-Am may supply water from the river for new service connections or for any increased use at existing service addresses resulting from a change in zoning or use after October 20, 2009, provided that any such service had obtained all necessary written approvals required for project construction and connection to Cal-Am’s water system prior to that date.”
The prohibitions against new service connections and increased use at existing service connections resulting from Condition 2 unfairly restrict local jurisdictions from pursuing housing construction mandated by the State and job growth sought by the local business community.
The State Housing and Community Development (HCD) Department has declared there is a housing crisis squarely in the public interest to change. If unmet, local public health and safety will be impaired. The Monterey Peninsula aspires to make progress on its Regional Housing Needs Allocation (RHNA) and housing requirements set by the HCD as mandated by the Housing Element Law, but is restricted by the SWRCB CDO limiting setting of new meters or increasing water use at existing sites.
Similarly, the Association of Monterey Bay Area Governments (AMBAG) most recent Draft Final 2026 Regional Growth Forecast projects 8,250 new jobs in the Cal-Am Monterey Water System by 2050 if there are no constraints. The local business community supports the creation of well-paying jobs to support population and housing growth, and economic prosperity. Constraints such as Condition 2 should be rescinded to allow the community a path forward.
6 WRO 2016-0016 Ordering paragraph 1.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 15, Packet Page 249 III. Relief Requested
Accordingly, Applicant hereby requests that the SWRCB issue a new order modifying and restating certain of the ordering provisions of the CDO as specifically proposed in the Proposed Modified CDO found in Attachment A, hereto.
The Applicant’s proposal would achieve the following:
• Rescind Condition 2 from prior Order(s). The SWRCB would reserve the right to reinstate such a condition subject to monitoring and triggers proposed. • Maintain existing quarterly and annual reporting to the SWRCB, subject to including a few additional data; Certain prior reporting requirements would be clarified or deleted because they have either been met on an ongoing basis or are no longer required.
• Create a water supply and demand monitoring regime that would provide triggers to the SWRCB that would allow the Deputy Director for Water Rights to consider the annually submitted information to determine if a reinstatement of Condition 2 of Order 2009-0060 might be necessary.
IV. The SWRCB has Authority to Modify the CDO
The SWRCB has broad discretion to modify a CDO and to revise a schedule of compliance contained in a CDO. See Order WR 2010-0002. The District makes this Application pursuant to Water Code section 1832, which states, in relevant part: “The board may, after notice and opportunity for hearing, upon its own motion or upon receipt of an application from an aggrieved person, modify, revoke, or stay in whole or in part any cease and desist order issued pursuant to this chapter.”
V. It is Reasonable and in the Public Interest to Modify the CDO as Requested The Public Interest is at Issue.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 16, Packet Page 250 Health and safety concerns place the housing crisis squarely in the public interest to modify the CDO. Senate Bill 330 findings and HDC requirements consider the critical role housing plays in developing sustainable communities and supporting employment growth. If unmet, local public health and safety will be impaired.
Applicant and Cal-Am have Diligently and Aggressively Implemented Measures to Comply with the CDO.
1. Continued Efficiency and Conservation Measures
Prior to and since the issuance of the CDO, Applicant and Cal-Am have dedicated tremendous resources to implement efficiency and conservation measures to control and reduce customer demand and system losses within Cal-Am’s Monterey Water System, such that the community is currently outperforming the Carmel River diversion reduction targets. The Applicant has implemented a variety of customer water conservation and efficiency programs, including programs targeting large commercial customers such as laundries, hotels, and car washes. Monterey Peninsula’s efficiency standards have placed it among the lowest residential per-capita usage in the State. The Applicant and Cal-Am have also implemented programs targeting reductions in outdoor irrigation, including replacement of irrigated turf with drought tolerant landscaping or artificial turf, incentives for installation of weather-based irrigation controllers, mandatory installation of rain sensors on irrigation systems, and mandatory water efficiency requirements for all non-residential customers and certain residential customers.
Since February 2010, Cal-Am implemented, with CPUC approval, a tiered conservation rate structure with increases directed at the top tier users to promote conservation practices and reduce overall water usage. The Applicant has no intention to reduce such measures.
2. Continued Development and Implementation of Projects to Develop Alternative and Supplemental Water Supplies
Since approximately 2015, the Applicant and its partner Monterey One Water have funded and constructed the Pure Water Monterey base and Expansion projects as a replacement water supply necessary to eliminate unauthorized diversions from the Carmel River. The capacity to deliver up to 5,750 AFY will come online by the end of 2025, and will comprise ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 17, Packet Page 251 more than 60% of available water to Cal-Am in the future.
The Applicant has also worked to enable and develop other sources of supply such as the Malpaso Water Company, LLC., the City of Seaside, and certain Seaside Groundwater Basin rights holders to augment supplies available to Cal-Am.
3. Cal-Am is Pursuing Development of an Additional Water Supply On April 23, 2012, CAW filed an application to the CPUC for approval of the MPWSP.
The MPWSP includes a desalination plant and associated source-water slant wells and conveyance system, which can produce up to 6.4 million gallons per day (MGD) for system demand. The CPUC issued a Certificate of Public Convenience and Necessity approving construction on September 13, 2018. Following a November 17, 2022 de novo appeal hearing, the California Coastal Commission adopted final findings for approval (with conditions) of a Coastal Development Permit for a downsized 4.8 MGD, Phase 1, desalination project. Cal-Am continues to attempt to make progress on the Coastal Commission’s 20 special conditions.
4. Continued development and implementation of fish and wildlife protection and enhancement measures.
In 2025, the Applicant successfully carried out its Mitigation Program required by the 1990 Water Allocation Environmental Impact Report and various water permits. This program is designed to preserve the ecological integrity of the Carmel River by alleviating impacts associated with water extraction for the community’s water supply. The program includes river restoration activities, monitoring, and rescuing threatened steelhead from drying portions of the Carmel River and tributaries. This comprehensive program tracks changes in the riparian corridor, steelhead population, depth to groundwater and river flow, and the lagoon environment. The Applicant is committed to continued environmental stewardship and mitigation efforts going forward.
VI. Conclusion
For the reasons stated herein, the Applicant respectfully requests modification of Order ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 18, Packet Page 252 ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 19, Packet Page 253 Attachment A
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 20, Packet Page 254 PROPOSED ORDER AMENDING AND RESTATING ORDER WR 2016-0016 NOW, THEREFORE, IT IS ORDERED THAT as of the effective date of this Order, Cal-Am shall cease and desist from any unauthorized diversion of water from the Carmel River in accordance with the following schedule and conditions.
1. EFFECT ON PRIOR ORDERS AFFECTING CARMEL RIVER DIVERSIONS. This Order shall supersede the requirements in State Water Board Orders WR 2016-0016, WR 2009- 0060, 95-10, and any other State Water Board orders affecting Cal-Am’s diversions from the Carmel River, to the extent stated herein, or to the extent that there is an irreconcilable conflict between the requirements here and those orders. All other requirements in State Water Board orders affecting Cal-Am’s diversions from the Carmel River remain in effect until terminated by operation of law or action of the State Water Board.
2. RESTRICTIONS ON NEW OR EXISTING SERVICE CONNECTIONS. Condition 2 of Order WR 2009-0060 which states, “Cal-Am shall not divert water from the Carmel River for new service connections or for any increased use of water at existing service addresses resulting from a change in zoning or use” is hereby rescinded. The State Water Board reserves the right to reinstate such a condition subject to the monitoring and triggers discussed in Order Condition 4, below.
3. REPORTING. The reporting requirements contained herein supersede reporting required in Orders WR 2016-0016, WR 2009-0060, and 95-10. Cal-Am shall provide and post on its website the following information in quarterly reports:
i. Monthly summaries of the total quantity of water produced from the Carmel River, and other separate sources of water produced by Cal-Am for distribution for customer service within its Monterey service area, limited as shown in Exhibit A, hereto. ii. Monthly summaries of the quantity of “Native” water produced by Cal-Am from the Seaside Groundwater Basin for distribution for customer service within its Monterey service area.
iii. Monthly summaries of the quantity of Pure Water Monterey (PWM) project water delivered to Cal-Am and stored in the Seaside Groundwater Basin. The monthly reporting shall also state quantity of PWM water recovered by Cal-Am from storage for distribution for customer service within its Monterey service area, the current balance of PWM Operating Reserve water, and the current balance of other PWM water available to Cal-Am remaining in storage in the Seaside Groundwater Basin. iv. Monthly summaries of the quantity of ASR project water diverted from the Carmel River under water right Permits 20808A and 20808C and stored in the Seaside Groundwater Basin. The monthly reporting shall also state the quantity of Cal-Am ASR water recovered from aquifer storage for distribution for customer service within its Monterey service area, and the current balance of Cal-Am ASR water remaining in storage in the Seaside Groundwater Basin.
v. Monthly summaries of the quantity of water produced by the Sand City desalinization plant for distribution for customer service within Cal-Am’s Monterey service area.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 21, Packet Page 255 vi. Monthly summaries of the quantity of water supplied under water right Permit 020905B held by Malpaso Water Company, LLC to Cal-Am for distribution for customer service within Cal-Am’s Monterey service area.
vii. Monthly summaries of the quantity of water produced by Cal-Am on behalf of other Seaside Groundwater Basin producers wheeled for distribution for customer service within Cal-Am’s Monterey service area.
viii. Monthly summaries of the quantity of interruptible water supplies being utilized or produced by Cal-Am for distribution for customer service within Cal-Am’s Monterey service area, including but not limited to Table 13 water rights and Seaside Groundwater Basin Carryover Credits
ix. For the final quarter of each water year, the report shall include reflect annual totals for the water year in each reporting category and shall be referred to as the “CDO Annual Consolidated Report.”
x. Cal-Am shall agree the following reporting requirements under WRO 2009-0060 have either been met on an ongoing basis or are no longer required:1 a) Monthly summaries of water saved by reducing system losses. Effective January 1, 2022 this condition is reported pursuant to California Code of Regulations, Title 23, Section 638.5 to CA Department of Water Resources. Submitted reports for past years can be found through their WUE data portal These annual reports are also available upon request.
b) Monthly summaries of water use reductions due to conservation actions. Effective January 1, 2022 this condition is reported as an annual summary of quantifiable and measurable water savings associated with conservation actions via Cal-Am’s "Water Conservation Annual Summary Report" filed as part of Schedule E-3 of the Annual California Public Utilities Commission ("CPUC") Reports per CPUC Decision D.10- 06-038.
c) Monthly summaries of new Cal-Am service connections. d) Monthly summaries identifying existing Cal-Am service addresses that receive an increased supply due to a change in zoning or use.
xi. Cal-Am shall agree the following reporting requirements under Order 95-10 have either been met on an ongoing basis or are no longer required:2 a) Condition 13(b) reports of progress of Monterey Peninsula Water Management District mitigation measures.
1 In a letter dated November 19, 2021 from the State Water Board to the Ellison, Schneider, Harris & Donlan law firm, consolidated reporting related to all State Water Board orders was discussed and was tentatively agreed to by the parties. Current ongoing quarterly reporting by Cal-Am includes multiple items requested in conditions 6, 7, 8, and 11 of WRO 2009-0060. 2 Current ongoing consolidated quarterly reporting by Cal-Am includes multiple items requested in Condition 13 related to Conditions 5-9 of Order 95-10.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 22, Packet Page 256 b) Condition 13(c) as it relates to maximizing Seaside Groundwater Basin production under Condition 4, well operations as it may relate to Conditions 5 and 6. c) Condition 13(c) as it relates to Conditions 7 and 8, as those Conditions have been met.
xii. On July 1 of each year, Cal-Am shall submit an operating plan to the Deputy Director for Water Rights specifying the quantity of water it will supply from the ASR Project for its customers after May 31 of each year.
xiii. Each report submitted by Cal-Am shall be certified under penalty of perjury and shall include the following declaration: "I declare under penalty of perjury, under the laws of the State of California, that all statements contained in this report and any accompanying documents are true and correct, with full knowledge that all statements made in this report are subject to investigation and that any false or dishonest statement may be grounds for prosecution."
xiv. The Deputy Director for Water Rights is authorized to modify the timing and the content of the reporting required by all of the provisions of this Order to more effectively carry out the intent of this Order.
4. MONITORING AND TRIGGERS. The Deputy Director for Water Rights is directed to closely monitor Cal-Am's compliance with Orders WR 2016-0016, WR 2009-0060, 95-10, and this Order. Appropriate action shall be taken to ensure compliance with these Orders including the issuance of additional cease and desist orders under Water Code section 1831, the imposition of administrative civil liability under Water Code section 1055, and referral to the Attorney General under Water Code section 1845 for injunctive relief and for civil liability. If additional enforcement action becomes necessary, the Deputy Director is directed to consider including in such actions all Cal-Am's violations of Water Code section 1052 as may be threatened or occurring in the future.
i. Each year, following the submittal of the Quarter 4 annual report under Condition 3, above, the Deputy Director shall evaluate the Available Supplies compared to the Prior Year Production for Customer Service, where:
a) “Available Supplies” means the total available water supplies available in the upcoming water year as further described in Exhibit B, hereto. b) “Prior Year” means the most recently completed water year, as subject to the reporting requirements of the CDO Annual Consolidated Report. c) “Prior Year Production for Customer Service” means the amounts reported for the most recently completed water year in the CDO Annual Consolidated Report for “Total Carmel Valley Wells for Customer Service” in Table 3, plus the “Total Additional Sources of Supply” in Table 4.
ii. Trigger: If “Prior Year Production for Customer Service” divided by “Available Supplies” equals or exceeds 80%, then:
a) Cal-Am and the Monterey Peninsula Water Management District shall meet with the Deputy Director for Water Rights within ninety (90) days and present a plan for ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 23, Packet Page 257 avoiding future withdrawals from the Carmel River in excess of the established water right.
b) Cal-Am and/or the Monterey Peninsula Water Management District shall (i) calculate the trailing (historical) 5-year average growth rate in water demand as expressed by the most recent five years of Prior Year Production for Customer Service; (ii) apply it to the most recent Prior Year Production for Customer Service; and (iii) determine in how many years that projection in Production for Customer Service will meet or exceed Available Supplies.
iii. The Deputy Director for Water Rights shall consider the submitted information to determine if a reinstatement of Condition 2 of Order 2009-0060 under Condition 2, herein above, should be made.
5. The conditions of this Order, State Water Board Order WR 2016-0016, State Water Board Order WR 2009-0060, and State Water Board Order 95-10 shall remain in effect until the Deputy Director for Water Rights certifies, in writing, the Order has been lifted.
CERTIFICATION
The undersigned Clerk to the Board does hereby certify that the foregoing is a full, true, and correct copy of an order duly and regularly adopted at a meeting of the State Water Resources Control Board held on TBD.
AYE:
NAY:
ABSENT:
ABSTAIN:
_________________________________
Update
Clerk to the Board
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 24, Packet Page 258 Panetta #1 Panetta #2 Garzas #3 Garzas #4 LL #5 LL #6 Total AF Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
TOTAL AF
Berwick #8 Berwick #9 Begonia #2 Schulte #3 Pearce Cypress #2 R. Canada #2 Total Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
TOTAL AF
Well Production for Customer Service
LOWER CV VELLS (AF)
Water Year XXXX
TABLE 2
EXHIBIT A
California American Water
Monterey District
Quarterly CDO Consolidated Compliance Filings
Orders WR 2026-XXXX, WRO 2016-0016, WRO 2009-0060, 95-10 TABLE 1
Well Production for Customer Service
UPPER CV WELLS (AF)
Water Year XXXX
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 25, Packet Page 259 Carmel River
Base Water
Right
EastwoodCanada Well
(Malpaso)
Production
Table #13 Total Carmel
Valley Wells for
Customer
Service
ASR Diversion
Oct
Nov
Dec
Q#1 Total
WYTD
Jan
Feb
Mar
Q#2 Total
WYTD
Apr
May
Jun
Q#3 Total
WYTD
Jul
Aug
Sep
Q#4 Total
WYTD
Seaside Basin
Native Water
Seaside Basin
Carryover
Credits
PWM Recovery ASR Recovery Sand City Desal Served by
Others (Seaside
Basin)
Total Additional
Sources of
Supply
Oct
Nov
Dec
Q#1 Total
WYTD
Jan
Feb
Mar
Q#2 Total
WYTD
Apr
May
Jun
Q#3 Total
WYTD
Jul
Aug
Sep
Q#4 Total
WYTD
Well Production for Customer Service
Carmel River (AF)
Water Year XXXX
Table 4
Well Production for Customer Service
Additional Sources of Supply (AF)
Water Year XXXX
TABLE 3
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 26, Packet Page 260 PWM Drought
Reserve
ASR Bank Total End of
Year Storage
Available
Cum. thru Q#1
Cum. thru Q#2
Cum. thru Q#3
Cum. thru Q#4
Cum. WYTD
Status
Lower CV
Rancho Ca #2
Cypress #2
Pearce
Schulte #3
Begonia #2
Berwick #8
Berwick #9
Eastwood
Eastw'd Well
Upper CV
Panetta #1
Panetta #2
Garzas #3
Garzas #4
Los Laureles #5
Los Laureles #6
TABLE 6
Status of Carmel Valley Wells
Water Year XXXX
TABLE 7
Quarterly Water Supply Strategy and Budget
Include here the most recently adopted quarterly water budget adopted by the District in consultation with Cal-Am, SWRCB, CDWF, and NMFS TABLE 5
Stored Water Available for Customer Service
ASR, PWM, and OTHER (AF)
Water Year XXXX
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 27, Packet Page 261
EXHIBIT B
Definition of “Available Supplies” shall include the following and be included in quarterly reporting and the Cal-Am CDO Annual Consolidated Report under this Order.
Available Supplies in any water year shall refer to the following:
Source of Supply Origination of Supply Amount
(AFY)
Carmel River Base Right State Water Board Order 95-10 defined the CalAm water right in footnote 16 as 1,137 AFY pre1914 appropriative, plus 60 AFY riparian, plus 2,179 AFY per license 11866.
3,376
Seaside Basin Native
Water
Under Superior Court adjudication, Cal-Am is
limited to only 1,474 AFY from the basin.
However, Cal-Am has a water repayment
obligation for past withdrawals (“in-lieu” recharge
plan.) Cal-Am has asserted it would begin
repayment once a desalination plant comes
online. Until then, the Basin water right is
deemed part of Available Supplies.
The amount available from the Seaside Basin
should be monitored by the Deputy Director for
Water Rights for the status of the “in-lieu”
recharge plan.
1,474
Pure Water Monterey w/
Expansion
Under the amended Pure Water Monterey Water
Purchase Agreement, Cal-Am is obligated to
purchase 5,750 AFY.
5,750
Aquifer Storage &
Recovery (ASR)
This source comprises water stored in the
Seaside Groundwater Basin under water right
Permits 20808A and 20808C. The 59-year
hydrologic data indicates an annual availability of
1,210 AFY. However, for purposes of annual
“Available Supplies” the ASR source will be
reflected in the “Available Storage” line, below.
0*
Sand City Desalination The plant is owned by the City of Sand City and leased to Cal-Am for operations. The plant was
designed for 300 AFY, but operations indicate
that may not be attainable. The plant achieved
276 AF in 2011 and 245 AF in 2015. However,
due to source well failure, recent production has
declined. A new source water well is currently
being permitted by Cal-Am and is expected to
bring supply availability back to an average of
200 AFY.
200
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 28, Packet Page 262 Malpaso Water LLC Under State Water Board License 13868A, diversion of water for municipal use under the
right is subject to the requirement that the right
holder make the water available to Cal-Am for
use in its water distribution system for the
purpose of reducing Cal-Am’s unauthorized
diversions identified in State Water Board Orders
95-10 and 2009-0060. Going forward, such water
is simply added to the system for delivery to CalAm customers. The stated amount is 85.6 AFY.
85.6 Supplied by Others
(Seaside Basin)
The City of Seaside has entered into a contract
with Cal-Am to deliver 13 AFY of Seaside
Municipal Water System’s own stored water
rights in the Seaside Basin for delivery to Cal-Am
customers.
Other Seaside Basin producers have contracted
for delivery of 7 AFY for delivery to Cal-Am
Customers.
20 Available Storage Available Storage shall mean end of Prior Year storage from the *ASR Program plus the Pure
Water Monterey Drought Reserve amount, plus
other storage as it may become available in the
future.
Reported as
4,392.7 AF
end of
Water Year
2025
Table 13 Rights This water right is deemed “interruptible” and therefore not counted in: “Available Supplies”
0 Seaside Basin Carryover
Credit
This water right is deemed “interruptible” and
therefore not counted in: “Available Supplies”
0 Total “Available Supplies”
as of end of Prior Year
9/30/25
15,298.3
This table shall be revised from time to time under the following circumstances:
a) A new source of supply comes online;
b) An existing source of supply is retired or unavailable for an extended period; c) Additional storage is accrued; and
d) When an “in-lieu” recharge program is enacted in the Seaside Groundwater Basin that affects Cal-Am’s production rights.
ATTACHMENT 3
Council Regular Meeting, 11/18/2025, Item No. 15., Item Page 29, Packet Page 263