11

Poseidon Resources (Channelside), LLC

Carlsbad Desalination Project Marine Life Mitigation Plan (MLMP)

Marine Life Mitigation Site Selection and Preliminary Restoration Plan

May 15, 2010Agenda Item F5a

22

MLMP Acreage RequirementsMLMP Acreage Requirements

MLMP approved in 2008 MLMP approved in 2008

Requires up to 55.4 acres of estuarine wetland Requires up to 55.4 acres of estuarine wetland restorationrestoration

37 acres in Phase I 37 acres in Phase I

Up to 18.4 acres in Phase II Up to 18.4 acres in Phase II

Poseidon voluntarily offered 11 additional acres Poseidon voluntarily offered 11 additional acres of mitigation (5.5 acres in each phase)of mitigation (5.5 acres in each phase)

Total of up to 66.4 acres of wetland restoration Total of up to 66.4 acres of wetland restoration now requirednow required

33

Only Site Selection and Preliminary Plan are Only Site Selection and Preliminary Plan are Before the CommissionBefore the Commission

MLMP Section 2.0 (Site Selection) requiresMLMP Section 2.0 (Site Selection) requires::

““[T]he permittee shall submit the proposed site(s) [T]he permittee shall submit the proposed site(s) and preliminary wetland restoration plan to the and preliminary wetland restoration plan to the Commission for its review and approval or Commission for its review and approval or disapproval.”disapproval.”

““The basis for the selection shall be The basis for the selection shall be an evaluation an evaluation of the site(s) against the minimum standards and of the site(s) against the minimum standards and objectivesobjectives set forth in subsections 3.1 and 3.2 set forth in subsections 3.1 and 3.2 below.”below.”

44

Restoration Plan Development is a Thorough, Restoration Plan Development is a Thorough, Multi-Step ProcessMulti-Step Process

Evaluation of 11 sites – Evaluation of 11 sites – CompletedCompleted

Agency consultation – Agency consultation – CompletedCompleted

Required submission of site selection and Required submission of site selection and Preliminary Plan – Preliminary Plan – CompletedCompleted

Site and Preliminary Plan Approval - Site and Preliminary Plan Approval - TodayToday

Environmental Review of Final Plan - Environmental Review of Final Plan - FutureFuture

Commission consideration of Final Plan - Commission consideration of Final Plan - FutureFuture

Will include confirmation that Plan fully satisfies Will include confirmation that Plan fully satisfies all MLMP requirementsall MLMP requirements

55

MLMP Site Selection RequirementsMLMP Site Selection Requirements

MLMP required: MLMP required: Evaluation of 11 sites in the Southern Evaluation of 11 sites in the Southern

California Bight California Bight

Evaluation against minimum standards and Evaluation against minimum standards and objectivesobjectives

Consideration of input from Commission staff Consideration of input from Commission staff and Commission’s Scientific Advisory Paneland Commission’s Scientific Advisory Panel

66

Site Selection and Preliminary Plan are Site Selection and Preliminary Plan are Products of Extensive ConsultationProducts of Extensive Consultation

Poseidon evaluated sites and developed Poseidon evaluated sites and developed Preliminary Plan based on extensive Preliminary Plan based on extensive consultation with:consultation with: U.S. Fish & Wildlife Service (USFWS)U.S. Fish & Wildlife Service (USFWS)

California Department of Fish & Game (CDFG)California Department of Fish & Game (CDFG)

San Diego Regional Water Quality Control Board staffSan Diego Regional Water Quality Control Board staff

Commission staff and the Commission’s Scientific Commission staff and the Commission’s Scientific Advisory Panel Advisory Panel

All agencies consulted concur with selection of All agencies consulted concur with selection of Otay River Floodplain siteOtay River Floodplain site

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Otay River Floodplain SiteOtay River Floodplain Site

Located in San Diego National Wildlife Refuge Located in San Diego National Wildlife Refuge

Former intertidal mudflats and salt marshFormer intertidal mudflats and salt marsh

USFWS manages entire site exclusively for USFWS manages entire site exclusively for restoration restoration

Poseidon would partner with USFWS to:Poseidon would partner with USFWS to:

Protect, manage, enhance and restore open water Protect, manage, enhance and restore open water coastal wetlands and native uplandcoastal wetlands and native upland

Benefit native fish, wildlife and plant species in Benefit native fish, wildlife and plant species in RefugeRefuge

Provide habitat for salt-marsh dependent speciesProvide habitat for salt-marsh dependent species

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Otay River Floodplain Site LocationOtay River Floodplain Site Location

Site is located in the Site is located in the South San Diego South San Diego Bay Unit of the San Bay Unit of the San Diego National Diego National Wildlife Refuge.Wildlife Refuge.

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All Required Sites Were EvaluatedAll Required Sites Were Evaluated

Poseidon evaluated the following 12 potential sites:Poseidon evaluated the following 12 potential sites:

Tijuana Estuary in San Diego CountyTijuana Estuary in San Diego County Otay River Floodplain in San Diego CountyOtay River Floodplain in San Diego County San Dieguito River Valley in San Diego CountySan Dieguito River Valley in San Diego County Agua Hedionda Lagoon in San Diego CountyAgua Hedionda Lagoon in San Diego County San Elijo Lagoon in San Diego CountySan Elijo Lagoon in San Diego County Buena Vista Lagoon in San Diego CountyBuena Vista Lagoon in San Diego County Huntington Beach Wetland in Orange CountyHuntington Beach Wetland in Orange County Anaheim Bay in Orange CountyAnaheim Bay in Orange County Santa Ana River in Orange CountySanta Ana River in Orange County Los Cerritos Wetland in Los Angeles CountyLos Cerritos Wetland in Los Angeles County Ballona Wetland in Los Angeles CountyBallona Wetland in Los Angeles County Ormond Beach in Ventura CountyOrmond Beach in Ventura County

1010

How Did Sites Compare?How Did Sites Compare?

1111

Only Otay River Floodplain Site Ranked “High”Only Otay River Floodplain Site Ranked “High”

Basis for Otay River Floodplain site ranking:Basis for Otay River Floodplain site ranking: Restored intertidal mudflats provide breeding habitat Restored intertidal mudflats provide breeding habitat

for goby species impacted by Carlsbad Projectfor goby species impacted by Carlsbad Project

Provides opportunity for all 66.4 acres at a single siteProvides opportunity for all 66.4 acres at a single site

Approved Comprehensive Conservation Plan (CCP) Approved Comprehensive Conservation Plan (CCP) and Environmental Impact Statement (EIS) provide a and Environmental Impact Statement (EIS) provide a framework for how the site should be restoredframework for how the site should be restored

Site best complies with MLMP’s minimum standards Site best complies with MLMP’s minimum standards and objectivesand objectives

– Including likely delivering Final Restoration Plan to the Including likely delivering Final Restoration Plan to the Commission within 2 yearsCommission within 2 years

USFWS partnership enables long-term protectionUSFWS partnership enables long-term protection

1212

Other Site AdvantagesOther Site Advantages

No hard structures such as jetties are neededNo hard structures such as jetties are needed Maintenance dredging would not be requiredMaintenance dredging would not be required Buffer requirements can be metBuffer requirements can be met Would restore site where no other funding Would restore site where no other funding

source existssource exists

1313

Conceptual Site Plan

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1414

Otay River Floodplain Site SupportersOtay River Floodplain Site Supporters

USFWSUSFWS

CDFGCDFG

San Diego Regional Water Quality Control San Diego Regional Water Quality Control Board staffBoard staff

Commission staffCommission staff

Commission’s Scientific Advisory PanelCommission’s Scientific Advisory Panel

Coastal ConservancyCoastal Conservancy

1515

Additional SlidesAdditional Slides

1616

USFWS SupportUSFWS Support

““Our collaboration with Poseidon Resources Our collaboration with Poseidon Resources will allow the restoration and monitoring of will allow the restoration and monitoring of significant salt marsh and estuarine habitats significant salt marsh and estuarine habitats in a timely and efficient manner without the in a timely and efficient manner without the expenditure of public funding. expenditure of public funding. We continue We continue to strongly support this projectto strongly support this project . . .” . . .”

(Sept. 28, 2010 Letter to Commission staff)(Sept. 28, 2010 Letter to Commission staff)

1717

CDFG SupportCDFG Support

““The Department concurs that South San The Department concurs that South San Diego Bay NWR is Diego Bay NWR is an important project an important project location and mitigation would be valuable location and mitigation would be valuable therethere . . . We look forward to the opportunity . . . We look forward to the opportunity to assist Poseidon in optimizing its mitigation to assist Poseidon in optimizing its mitigation strategy for the proposed desalination plant.”strategy for the proposed desalination plant.”

(Mar. 18, 2010 Letter to Commission staff)(Mar. 18, 2010 Letter to Commission staff)

1818

Regional Board Staff SupportRegional Board Staff Support

““On July 29, 2010, Poseidon submitted a On July 29, 2010, Poseidon submitted a proposed mitigation site at the Otay River proposed mitigation site at the Otay River Floodplain . . . Floodplain . . . We will be recommending We will be recommending approval of the proposed mitigation siteapproval of the proposed mitigation site.”.”

(Sept. 21, 2010 Letter to Commission staff)(Sept. 21, 2010 Letter to Commission staff)

1919

Commission Staff SupportCommission Staff Support

““[T]he Otay River Floodplain site has the [T]he Otay River Floodplain site has the greatest likelihood of meeting the greatest likelihood of meeting the requirements and objectives of the MLMPrequirements and objectives of the MLMP.”.”

““The site contains enough area to meet the The site contains enough area to meet the acreage requirements in the MLMP, including acreage requirements in the MLMP, including space for transition and buffer areas.”space for transition and buffer areas.”

(Sept. 22, 2010 Staff Report)(Sept. 22, 2010 Staff Report)

2020

South Bay Power Plant LocationSouth Bay Power Plant Location

South Bay Power Plant

South Bay Power Plant Location

2121

RequestRequest

Poseidon concurs with Commission staff’s Poseidon concurs with Commission staff’s recommendationrecommendation

Poseidon requests that the Commission:Poseidon requests that the Commission:

Approve the proposed Otay River Floodplain site Approve the proposed Otay River Floodplain site and Preliminary Restoration Plan under the and Preliminary Restoration Plan under the MLMP for both Phase I and Phase II restoration MLMP for both Phase I and Phase II restoration obligationsobligations