The California Coastal Commission voted against the plan by the company to build a huge desalination plant in Huntington Beach after hearing hours of heated debate.
The plan to tap the Pacific Ocean as a source of drinking water was unanimously rejected by the commission. The decision may end the company's plans for a $1.4 billion plant.
The commission showed its independence from the administration by denying a permit for the project, and also sent a message that high costs, vocal opposition and sea-level rise can present major hurdles for large desalination plants on the California coast.
The governor warned that a vote against the project would be a big mistake, as he said that California needs the plant to cope with the extreme dry spell.
The activists who called the proposal a boondoggle said the decision was a victory for fact-based regulation.
More than two decades have passed since the project was first proposed, and the fight has included a number of contentious issues. They include the proposed plant's impact on marine life, whether it was vulnerable to sea-level rise and the company's heavy political lobbying.
Vice Chair Caryl Hart said the proposal raised many concerns for her before casting her vote.
Privatization of water is the proposal. Hart said that it provides a large private profit. She agreed with the staff of the agency that the site is not the right place to build a plant because of the earthquake fault.
She said that it would hurt the public welfare if the company had a binding agreement with the water district.
The impacts on marine life would be an incredible amount of destruction, according to Commissioner Dayna Bochco.
The project would have a disproportionate impact on the most vulnerable, according to one of the governor's appointees.
I wish I didn't have to vote. I am not opposed to desalination.
In testimony leading up to the vote, Poseidon and its supporters argued that building the desalination plant would bolster local water supplies and make the area more resilient. They pointed to the worsening shortages of imported water supplies from the State Water Project and the Colorado River as a result of global warming.
The desalinated water was not necessary because northern Orange County already has plenty of water. The project would benefit the company and its investors, but low-income people would be hit hardest by rate increases.
The president and CEO of the environmental group Heal the Bay said that water desalination should be the last resort. She said there are more economical ways to bolster water supplies.
Monthly water rates could increase by $3 to $6 per household if the costs are finalized, the company said. The water rate hike for the project would disproportionately impact millions of low-income residents, despite a lack of detailed information on costs, according to the commission's staff.
There is a lack of a near-term need for the project and other proposed water projects in this area of Orange County, according to a report by the commission's staff.
The Los Angeles Times.
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