OTAY WATER DISTRICT DESALINATION PROJECT COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS

2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Boardroom

WEDNESDAY December 6, 2017 12:30 P.M.

This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action.

AGENDA

1. ROLL CALL

2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA

DISCUSSION ITEMS

3. INFORMATIONAL UPDATE FOR THE ROSARITO DESALINATION PLANT AND THE OTAY MESA CONVEYANCE AND DISINFECTION SYSTEM PROJECTS (KENNEDY)

4. ADJOURNMENT

BOARD MEMBERS ATTENDING: Mark Robak, Chair Tim Smith

All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board.

The Agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280.

If you have any disability that would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting.

Certification of Posting

I certify that on December 1, 2017 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2).

Executed at Spring Valley, California on December 1, 2017.

/s/ Susan Cruz, District Secretary

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STAFF REPORT

TYPE MEETING: Desalination Committee MEETING DATE: December 6, 2017 SUBMITTED BY: Bob Kennedy CIP./G.F. NO: P2451- DIV. NO. ALL Engineering Manager 001101

APPROVED BY: Rod Posada, Chief, Engineering

Mark Watton, General Manager

SUBJECT: Informational Update for the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects

GENERAL MANAGER’S RECOMMENDATION:

No recommendation. This is an informational item only.

COMMITTEE ACTION:

Please see Attachment A.

PURPOSE:

To update the Otay Water District (District) Desalination Committee (Committee) on the progress of the Rosarito Desalination Plant and the Otay Mesa Conveyance and Disinfection System Projects (Project)(see Exhibit A for Project location).

ANALYSIS:

This item was last presented to the Committee as an update at a meeting held on May 23, 2017. The updates or significant milestones that have been reached since the last update to the Committee include:

Project Direction

Aguas de Rosarito (AdR), a private consortium, signed a 40-year definitive public-private partnership agreement with the State of Baja California (State) on August 25, 2016 to build a

desalination plant and conveyance pipeline (Project) and operate it for 37 years. This would be one of the first water projects delivered under the State’s Asociaciones Público Privadas (APP) law. The companies that make up AdR are NuWater of Singapore, Suez Environment of France, and a Mexican company called N.S.C. Agua (NSCA) that is a subsidiary of Cayman-Islands based Consolidated Water (CWCO).

The project is stalled at the State of Baja California legislature after several failed attempts to pass a consent decree authorizing the State government to provide financial backup using the pension funds. This is mainly a political issue that AdR hopes to resolve before the end of the legislative session that is scheduled to end mid-December 2017. If the consent decree is not passed during this legislative year, it might have to wait until 2020, after the 2018 presidential elections in Mexico and the 2019 election for Governor for the State of Baja California.

The US administration has made several statements about NAFTA, trade, and border wall that has inflamed the situation and provoked a reaction in the Baja California State legislature stalling the consent decree.

Rosarito Desalination Project in the News

The end of the drought and desalination projects are subjects in the national, state, and local news as well as in Mexico in the State of Baja California. Projects that provide a new supply of water have been mentioned on both sides of the border including the Rosarito Beach Desalination Project.

On May 22, 2017, the Water Desalination Report article entitled, “President Approves SWRO Pipeline Permit” about the Presidential Permit granted to the District. The report also noted the permit might signal that the second phase of the project could be accelerated (see Exhibit B).

On June 19, 2017, the San Diego Union Tribune published an article entitled, “Could desalinated water from Mexico flow to San Diego?” on the U.S. State Department approval of a cross- border pipeline that could one day carry desalinated water from Mexico to the District (see Exhibit C). The article quotes Cesar Romero Sauceda, head of Tijuana’s Chamber of Construction Industry, “that water has always been a barrier for Tijuana’s growth.”

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Another article on June 19, 2017 in WaterWorld entitled, “Mexico – U.S. Cross-Border Desal Project Moves Forward” on the U.S. State Department approval of the cross-border pipeline (see Exhibit D).

On June 21, 2017, Breitbart published an article entitled, “California May Import Water from Mexico Desalination Plant” about the Project and the State Department’s approval of the permit for the water line on May 16, 2017 (see Exhibit E).

On June 23, 2017 an article in NewsDeeply Water Deeply entitled, “Crucial Permit Moves San Diego Closer to Tapping Mexican Desal” about the Project and the District having been granted a Presidential Permit by the U.S. State Department (see Exhibit F).

On September 23, 2017, an article in La Jornada Baja California entitled, “Documentos oficiales confirman Proyecto binacional; Kiko Vega lo niega” about official documents confirming that the Rosarito Desal Project is a Binational project. However, B.C. Governor Kiko Vega denies it (see Exhibit G).

On September 29, 2017, an article in Fronterra entitled, “Costaran desaladoras de Ensenada y Rosarito mas de 81 mil millones” about the cost for the desal projects in Ensenada and Rosarito, the shortage of water in the region, and the opposition to the PPP (Public-Private Partnership) law (see Exhibit H).

On September 29, 2017, an article in ZetaTijuana entitled, “Aprobarán endeudamiento de "Kiko" por 83 mil mdp” about the potential for approval of the use of the pension funds to back up the financing of the project. However, there is opposition from some legislators (see Exhibit I).

On November 27, 2017, the San Diego Union Tribune published an article entitled, “Giant Rosarito Beach desalination project faces scrutiny” about the project facing the “scrutiny at a politically sensitive moment. The touchiest public issue is the question of whether some of that water would be sold to the Otay Water District in San Diego County.” The article notes a no vote by the Baja California’s legislature would delay the desalination plant and put on hold eight other public-private- partnership projects (see Exhibit J).

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Contract with AECOM

AECOM continues to finalize their work on the environmental tasks. Staff expects to terminate its contract with AECOM after compiling all of the reports and documents for the federal record with the State Department. All the pending work is expected to be completed by December 2017.

Division of Drinking Water (DDW) Permitting (formerly CDPH)

On November 15, 2017, the District notified DDW that after three years of source water testing at the power plant intake and outlet structures, AdR will suspend further routine testing and focus on the financial close of Phase 1 of the two phase Project. The results are posted with DDW.

Staff and representatives from AdR continue to coordinate on complying with the California Water Resources Control Board Drinking Water Program regulatory requirements related to source water quality testing.

Presidential Permit

The Department of State issued a Presidential permit to the Otay Water District (the District) on May 16, 2017, authorizing the District to construct, connect, operate, and maintain cross- border water pipeline facilities for the importation of desalinated seawater at the international boundary between the United States and Mexico in San Diego County, California. In making this determination, the Department provided public notice of the proposed permit, offered the opportunity for comment, and consulted with other federal agencies, as required by Executive Order 11423, as amended. This was published in the Federal Register on June 6, 2017 (see Exhibit K).

With this approval it is expected Mexico’s federal agencies may need to issue a similar permit to bring symmetry into the approval of a cross border pipeline with the International Boundary and Water Commission, and their counterpart in Mexico, Comisión Internacional de Límites y Agua (IBWC/CILA) as the agencies to administer the transportation of water across the border and to protect the District from local interference in the delivery of desalinated water. IBWC/CILA currently fill this role for the existing pipeline border crossing south of Alta Road that transport Mexico water from Mexico’s allotment from the Colorado River.

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FISCAL IMPACT: Joe Beachem, Chief Financial Officer

No fiscal impact as this is an informational item only. See Attachment B - Budget Detail.

Although $6,527,561 has been committed as of November 13, 2017, $4,134,837 has been actually spent. Staff has stopped all activities concerning this Project. All expenditures will be suspended until more progress is made in Mexico on the project.

STRATEGIC GOAL:

This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.”

LEGAL IMPACT:

None.

BK/RP:jf P:\WORKING\CIP P2451 Desalination Feasibility Study\Staff Reports\Committee Desal Update 2017- 3\Committee 12-06-17, Staff Report, Desal Update, (BK-RP) Rev2.docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Project Location Exhibit B – Water Desalination Report, dated May 22, 2017 Exhibit C – Could desalinated water from Mexico flow to San Diego?, San Diego Union Tribune, dated June 19, 2017 Exhibit D – Mexico-U.S. Cross-Border Desal Project Moves Forward, WaterWorld, dated June 19, 2017 Exhibit E - California May Import Water from Mexico Desalination Plant, www.breitbart.com, dated June 21, 2017 Exhibit F – Crucial Permit Moves San Diego Closer to Tapping Mexican Desal, www.newsdeeply.com, dated June 23, 2017 Exhibit G – Documentos oficiales confirman Proyecto binacional; Kiko Vega lo niega, http://jornadabc.mx/, dated September 23, 2017

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Exhibit H – Costaran desaladoras de Ensenada y Rosarito mas de 81 mil millones, www.frontera.info, dated September 29, 2017 Exhibit I – Aprobarán endeudamiento de "Kiko" por 83 mil mdp, http://zetaTijuana.com, dated September 29, 2017 Exhibit J – Giant Rosarito Beach desalination project faces scrutiny, San Diego Union Tribune, dated November 27, 2017 Exhibit K – Federal Register Vol. 82, No. 107 dated June 6, 2017, Notices 26207

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ATTACHMENT A

SUBJECT/PROJECT: Informational Update for the Rosarito Desalination P2451-001101 Plant and the Otay Mesa Conveyance and Disinfection System Projects

COMMITTEE ACTION:

The Desalination Committee (Committee) reviewed this informational item at a meeting held on December 6, 2017.

ATTACHMENT B – Budget Detail

SUBJECT/PROJECT: Informational Update for the Rosarito Desalination Plant P2451-001101 and the Otay Mesa Conveyance and Disinfection System Projects

Otay Water District Date Updated 11/13/2017 P2451 Otay Mesa Desalination Conveyance and Disinfection System

Outstanding Projected Final Budget Committed Expenditures Commitment & Vendor/Comments Cost 30,000,000 Forecast Phases Planning Consultant Contracts 32,869 22,869 10,000 32,869 BROWNSTEIN HYATT FARBER 98,577 98,577 - 98,577 CAMP DRESSER & MCKEE INC 13,311 13,311 - 13,311 CPM PARTNERS INC 380,200 380,200 - 380,200 HECTOR I MARES-COSSIO 71,531 71,531 - 71,531 MARSTON & MARSTON INC 26,700 26,700 - 26,700 REA & PARKER RESEARCH 4,173 4,173 - 4,173 SALVADOR LOPEZ 225,499 225,499 - 225,499 SILVA-SILVA INTERNATIONAL 11,050 9,300 1,750 11,050 SVPR COMMUNICATIONS Meals and Incidentals 21,944 21,944 - 21,944 STAFF Printing 61 61 - 61 MAIL MANAGEMENT GROUP INC Professional Legal Fees 2,516 2,516 - 2,516 ARTIANO SHINOFF 162,041 162,041 - 162,041 GARCIA CALDERON & RUIZ LLP 43,175 43,175 - 43,175 SOLORZANO CARVAJAL GONZALEZ Y 32,612 32,612 - 32,612 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 3,120 3,120 - 3,120 COUNTY OF SAN DIEGO 2,142 2,142 - 2,142 STATE WATER RESOURCES Service Contracts 500 500 - 500 REBECA SOTURA NICKERSON 875 875 - 875 LEONARD VILLAREAL 32,463 32,463 - 32,463 (W)RIGHT ON COMMUNICATIONS INC 39,500 39,500 - 39,500 BUSTAMANTE & ASSOCIATES LLC 290 290 - 290 SAN DIEGO DAILY TRANSCRIPT 685 685 - 685 SAN DIEGO UNION-TRIBUNE, THE Standard Salaries 1,203,045 1,203,045 - 1,203,045

Total Planning 2,408,879 2,397,129 11,750 2,408,879 Design 001102 Consultant Contracts 3,800,863 1,419,890 2,380,973 3,800,863 AECOM TECHNICAL SERVICES INC 3,952 3,952 - 3,952 AIRX UTILITY SURVEYORS INC 5,000 5,000 - 5,000 ATKINS 8,818 8,818 - 8,818 CPM PARTNERS INC 5,109 5,109 - 5,109 MARSTON+MARSTON INC 35,520 35,520 - 35,520 MICHAEL R WELCH PHD PE Meals, Travel, Incidentals 3,457 3,457 - 3,457 STAFF Professional Legal Fees 7,761 7,761 - 7,761 STUTZ ARTIANO SHINOFF Regulatory Agency Fees 1,127 1,127 - 1,127 STATE WATER RESOURCES Service Contracts 1,084 1,084 - 1,084 SAN DIEGO UNION-TRIBUNE LLC 114 114 - 114 REPROHAUS CORP Standard Salaries 245,877 245,877 - 245,877

Total Design 4,118,682 1,737,709 2,380,973 4,118,682 Construction Standard Salaries - - - -

Total Construction - - - -

Grand Total 6,527,561 4,134,837 2,392,723 6,527,561

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Volume 53, Number 19 22 May 2017

Mexico-USA WDR understands that financial closure on the $460+ million President approves swro pipeline permit project is now expected to take place later this summer, or Despite all the recent talk of constructing an impenetrable early fall. wall to separate the US from Mexico, WDR has learned that a Presidential Permit has been granted to Southern California’s Technology Otay Water District (OWD) to import desalinated seawater from Mexico to the US. Energy-Desal Design Winner picked Last week, a team led by Oak Ridge National Laboratories The permit authorizes the “construction, connection, oper- prevailed in a year-long design effort, winning the US-Israel ation and the importation of desalinated seawater at the Integrated Energy and Design Challenge. The Challenge— International Boundary between the United States and organized by the US Department of Energy (DOE) and Mexico in San Diego County, California.” The permit is a Israel’s Ministry of National Infrastructure, Energy and requirement of a 1968 Executive Order, which mandates Water Resources (MIEW)—was intended to encourage federal agencies to determine whether such a project is in leading US and Israeli engineers to design a novel, integrated the US national interest. energy-desal system that could be suitable for both countries. OWD applied for the permit in November 2013 and, along Challenge specifications were jointly developed by US and with the State Department, published a draft environmental Israeli experts, and a parallel competition was conducted for impact report/environmental impact statement (EIR/EIS) in applicants from each country. May 2014. Following a public comment period, a final EIR/ The Challenge’s goal was to site and design a system that EIS was issued in September 2016. could profitably produce at least 1,0003 m (0.26 MGD) The District plans to purchase up to 20 MGD (75,700 m3/d) of potable water from a feedwater with a TDS of 5,000- of desalted seawater from the proposed 100 MGD (378,500 20,000 mg/L at a target price of $0.50/m3 ($1.89/kgal), m3/d) Rosarito Desalination Plant. The plant will be while providing some portfolio of services to the electricity constructed by Aguas de Rosarito (AdR), a special purpose system. A successful system would have a productivity company comprised of Consolidated Water Company’s factor of 75 percent and could be sited in the US or Israel. (CWCO) NSC Agua subsidiary, Degrémont and NuWater, in It could achieve the goals by including revenue streams the Mexican state of Baja California, across the US-Mexican for providing electricity services through on-site energy border; despite its interest in purchasing water, OWD is not generation and storage, the utilization of waste heat or a part of the desal project. cooling or the recovery re-use of waste brines. The cross-border pipeline will convey desalted seawater The US teams were each led by a principal investigator four miles (6.4km), from Mexico across the US border, via from one of the National Laboratories, and the Challenge a 54-inch (1.2m) diameter pipeline, with metering and pump was conducted in two separate phases: a three-page concept stations and a disinfection facility. The first, 50 MGD phase phase from which three finalists were selected and each of the Rosarito project is expected to be producing water provided with $50,000 in funding to develop a full design; by the end of 2019, while the pipeline has been envisioned and, a full design analysis from which the winning team was as part of the project’s second phase, which should be selected by a panel of expert judges and awarded $100,000 operational in 2024. of funding to further the deveopment of its design. The permit will expire in five years if construction has not During a two-day event held in Jerusalem last week, the yet begun, leading to speculation, unconfirmed by OWD teams presented their final designs and were then interviewed or CWCO, that the permit approval might signal that the by the judges. The winning design was selected based on its second phase of the project could be accelerated. technical merit, creativity and innovation, team and resource

Tom Pankratz, Editor, P.O. Box 75064, Houston, Texas 77234-5064 USA Telephone: +1-281-857-6571, www.desalination.com/wdr, email: [email protected] © 2017 Media Analytics. Published in cooperation with Global Water Intelligence. WATER DESALINATION REPORT – 22 May 2017 Page 2

diversity, commercialization potential and program policy WaTech division; and Avi Moshel, an environmental factors. consultant. The teams, and a brief description of the designs selected for Participating members of the organizing committee included participation in the finals, were: co-chair Diana Bauer, the DOE’s Director of Energy Systems Winner: Oak Ridge National Laboratory (ORNL) – An Integration Analysis; Sam Bockenhauer, a DOE Physical integrated renewable energy-RO design that dynamically Scientist; Timothy Walters, a DOE International Relations controls energy consumption under variable power and Specialist; and Einat Magal, the Earth and Marine Sciences salinity conditions, using a feedwater blend consisting Research Manager at Israel’s Chief Scientist Office. of low-salinity wastewater effluent and seawater. More information on the Challenge is available at http:// The renewable energy components included a hybrid tinyurl.com/mt8yp73. photovoltaic (PV) and an optional modular pumped storage system. Australia Partners: Brookhaven National Laboratory, Columbia Minimum water order for largest SWRO University, Hazen & Sawyer Despite rainfall and the addition of desalted seawater from Principal Investigator: Sujit Das, ORNL the Victorian Desalination Plant (VDP), water storages in Presenter: Adam Atia, Columbia University the state of Victoria have declined for the past 24 weeks. Los Alamos National Laboratory (LANL) – An integrated Melbourne’s storages are now 105 million m3 (27.7 billion parabolic trough concentrated solar powered (CSP) g) lower than at the same time two years ago, prompting the cogeneration system to produce steam to generate government to place a water order for 15 million m3 (3.4 electricity before being used to drive a multiple effect billion g) of water from the VDP for 2017-2018. distillation (MED) process to desalt saline groundwater. The water order was made in consultation with area water Partners: Norwich Technologies, Creare LLC retailers, and should restore Melbourne’s storage levels Principal Investigator/Presenter: Stephen Obrey, LANL while providing an ongoing buffer against drought. The Sandia National Laboratories (SNL) – An integrated amount also represents the minimum water order set for the 3 concentrating point-focus solar array and direct-coupled next three years for the 450,000 m /d (119 MGD) SWRO energy storage system to produce steam for a non- plant, and will guarantee continued water security and better condensing steam turbine generator and multi-stage flash plant management. (MSF) evaporator, with an optional PV system. The government also announced that Melbourne residents Partners: Arizona State University, Golden State Energy would not face additional charges for water purchased from Principal Investigator: James E. Miller, SNL the desal plant, because the purchase will be funded from the Presenter: Ellen Stechel, ASU sale of surplus Renewable Energy Certificates, which were previously purchased by the plant to offset renewable wind Although Israel’s MIEW conducted a parallel challenge, the energy, and were not fully utilized because no water orders two competing Israeli teams started later and were not as far were made until 2016. along in the final design process. So, after their presentations and interviews were completed, it was decided that the The plant was commissioned in December 2012, but was not winner of the competition between ADAN Technologies’ operated until earlier this year, when an order for 50 million integrated CSP-BWRO-SWRO-MED, and Arava/Rotem’s m3 (13.2 billion g) was placed in response to falling storages. gasification-MED-RO would be selected in about three months. California The US judges were Udi Helman, a consultant with Helman Reuse plant to get new membranes Analytics; Audrey Lee, vice-president of analytics and New York-based Scinor Water America has been awarded a design for Advanced Microgrid Solutions; James Klausner, contract to supply 2,500 membrane filtration modules for the professor and chair of Michigan State University’s Phase IV expansion of West Basin’s 14 MGD (53,000 m3/d) Mechanical Engineering Department; and, WDR’s Tom Edward C. Little Water Recycling Facility in El Segundo Pankratz. The Israeli judges were Jacov Karni, a researcher (Los Angeles), California. The expansion was completed at Weitzman Institute; Yossi Yaacoby, director of Mekorot’s in 2006 and treats secondary effluent to advanced water WATER DESALINATION REPORT – 22 May 2017 3

quality standards—employing cartridge filters, chemical The talk was a fitting lead-in to one of the conference’s addition, MF, RO, decarbonation and UV irradiation—for two parallel technical sessions, which emphasized groundwater injection, to serve as a barrier to seawater electrochemical processes. intrusion, and for industrial process water. The program included a highly popular visit to the Sorek When originally installed, the Memcor (now Evoqua) six- plant, the world’s largest SWRO plant, hosted by IDE cell submerged MF system was a pioneering system for Technologies. Avshalom Felber, the company’s CEO, its time. However, after nine years of operation, there had arrived directly from the airport to greet participants. been a growing number of largely age-related operational Kevin Price, who is associated with the Middle East and reliability issues with the submerged polypropylene Desalination Research Center (MEDRC), moderated a membrane modules. In addition to cracking in some of the closing session during which panelists addressed theoretical nylon module blocks, there has been a loss of membrane solutions to Gaza’s immediate and long-term water concerns, permeability, resulting in a 50 percent reduction in plant focusing on the technical, rather than political, needs. production that necessitated more frequent cleaning. Outgoing President Ursula Annunziata, of Genesys To evaluate its upgrade options, West Basin engaged Separ- International, introduced Maria Kennedy, Professor of Water ation Processes (SPI) and Suez, the plant’s contract operator, Treatment Technology at UNESCO-IHE Institute for Water to conduct a pilot study, which was followed by a full-scale Education, as EDS’ new president, and announced that the test that began in late January 2017 to evaluate alternative next EDS biennial conference and exhibition would be held replacement membranes. in Athens, Greece, in May 2018. Based on the study results, West Basin awarded Scinor a She also continued the well-established EDS tradition of membrane replacement contract under which it will furnish performing specially-written desalination songs at the Gala its TIPS (thermally-induced phase separation) PVDF Dinner, accompanied by EDS pianist Richard Furstenheim. membranes. The plant will also implement new automation Drawing inspiration from well-known musicals by Andrew and controls capabilities that are in-line with today’s Lloyd Weber and Rogers and Hammerstein, Annunziata standards. emotionally sang the tale of her tenure as EDS president and Tom Poschman, Scinor Water America’s president and CEO, made the members chuckle with her desal-themed tongue- said that the installation of the membranes is expected to twisters. be completed in the second half of 2017. It will be Scinor’s largest US installation, and its third largest in the world.

Conference News EuroMed 2017, one for the books Ambassadors, academics, students, utility and industry specialists and invited co-hosts from China and Italy met in Tel Aviv on 9-12 May for EuroMed 2017, the European Desalination Society’s (EDS) annual conference, under the theme Desalination for Clean Water and Energy: Cooperation around the World. The first of two keynote presentations was given by Izzeldin Abuelaish, the Professor of Public Health from the University of Toronto, whose talk on Water for hope, health and peace served as a perfect prelude to two panel discussions addressing cross-border issues. The discussions Genesys’ Ursula Annunziata serenading desalters, including involved scientists from Gaza, Israel, the West Bank and (from left) Professors Ora Kedem and Rafi Semiat international organizations involved in the region. Of course, no EDS event could be appropriately summarized Ora Kedem, Professor Emerita from the Weizmann Institute without acknowledging Miriam Balaban, the Society’s of Science and Ben Gurion University of the Negev, gave a secretary general, for her tireless work organizing an inter- second keynote, titled, Where can electrodialysis compete? esting event with such broad, international participation. WATER DESALINATION REPORT – 22 May 2017 Page 4

In brief The South Central Membrane Association (SCMA) will hold Shanghai-based SafBon Water Service will purchase a membrane operator training course titled “MOC-III: Low Florida-based Doosan Hydro Technologies (DHT) from Pressure Membrane Systems” in Richmond (Houston), Korea’s Doosan Heavy Industries & Construction for $7.36 Texas, on 6-8 June. For information and registration, visit million. The deal comes just two months after Safbon http://tinyurl.com/mlqpero. completed the purchase of a 21.6 percent stake in IDE- The US Bureau of Reclamation has awarded a total of affiliated AquaSwiss AG. DHT was established in 2005, $23.6 million to 19 projects in seven states. The funds are for when Doosan Heavy acquired the US water treatment planning, designing and constructing water recycling and re- division of American Engineering Services (AES) for $4.7 use projects, developing feasibility studies, and researching million. Until the acquisition, Doosan’s desal capabilities desalination and water recycling projects as a part of the were limited to MSF projects, although it was also develop- Title XVI Water Reclamation and Reuse program. For a list ing a position in the MED market. Based on AES’ SWRO of projects, visit http://tinyurl.com/mrkuxfd. references, Doosan was able to immediately engage in the rapidly growing SWRO market. A 10,000 m3/d (2.6 MGD) containerized SWRO plant furn- ished by RWL Water, has been commissioned at Pelican Built in response to a record drought and commissioned Island, near Richards Bay, on South Africa’s northeast in 1992, Santa Barbara’s SWRO plant was soon turned coast. The Department of Water and Sanitation contracted off and eventually mothballed, when rains filled the area’s a partnership of North Coast Water Utility and RWL. The nearly empty reservoirs. However, the city wisely continued desalted water is reportedly pumped to 20 area reservoirs. to maintain its permits and waited patiently for the next drought. In September 2015, following a series of studies, Erratum: In the 9 May 2017 issue of WDR, a story on a GE the City awarded IDE Technologies a notice to proceed Water ZeeLung MABR project in Italy said that the results with the design, construction and reactivation of the 3,125 were for a full-scale installation. In fact, the results covered AFY (10,560 m3/d) SWRO plant at a total cost of about $70 the first six months of an ongoing 10-month study. million. Barring any unforeseen circumstances, the Charles Reminder: The 1 June deadline for submitting applications E. Meyer Desalination Facility could become California’s for AMTA funding opportunities for grants, research fourth operational seawater desal plant later this week, fellowships, scholarships and stipends for graduate and joining the Carlsbad, Catalina and Sand City SWRO plants. undergraduate students is approaching. For details, visit Pre-proposals for its Unsolicited Research Program are being http://tinyurl.com/hjmrzau. sought by the Water Environment & Reuse Foundation (WE&RF). Funding of research project proposals in Jobs relevant wastewater, reuse and other sources of water will Scinor Water America is seeking an Applications/Service be considered. A funding total of approximately $300,000 Engineer to provide technical sales and service support for is expected, with typical awards made in the $25,000 to its hollow-fiber membrane filter products in new-build and $150,000 range. A minimum 25% cost-share or in-kind retrofit applications. The preferred candidate will have an support must be contributed, and the maximum project engineering degree and a minimum of three years MF/UF duration is two years. Pre-proposals are due by 13 July experience. The position will be based in Southern California and more information is available at http://www.werf.org/ and requires up to 50% travel. Please send your resume to unsolicitedresearch. [email protected]. Evoqua Water Technologies said it would deliver a 50 gpm Save the Date: American Water Summit (43 m3/h) brackish water desal system employing its Nexed electrochemical technology for demonstration at El Paso The American Water Summit 2017 will be held on 29-30 November in Austin, Texas, at the JW Marriott hotel. For more information, visit Water Utilities’ Kay Bailey Hutchison Desalination Plant. http://www.americanwatersummit.com. The system is expected to be operational next month.

Rate for one year: £355 or US$550. Subscribe and renew online at: www.desalination.com/wdr Reproduction or electronic distribution is forbidden. Subscribers may circulate their copy on their immediate premises. To email or create additional copies for other office locations, contact Jake Gomme( [email protected]) to arrange a site license. EXHIBIT C Could desalinated water from Mexico flow to San Diego? - The San Diego Union-Tribune Author Sandra Dibble The U.S. State Department has approved a cross-border pipeline that could one day carry desalinated water from Mexico to the Otay Water District in San Diego County With Baja California pushing forward on its plan for a massive desalination plant in Rosarito Beach, a ground-breaking proposal to pipe some of that water to the United States has overcome a key We have electric lines, the largest crossing in the world, a gas pipeline, a bridge from the airport,” that cross the border, said Mark Watton, general manager for the Otay Water District, which serves some 220,000 residents of southeastern San Diego County. “It’s only natural that we have a water line. Watton said the presidential permit approval on May 16 marks “a giant leap,” toward making his district the first in the country to import water from Mexico. The district’s $30 million pipeline project “would provide a new drought-proof water supply to its customers,” reads a statement from the district But making the plan a reality will require many more steps — the great majority of those in Mexico. For starters, the Rosarito Beach Desalination Plant has yet to be built, though Baja California authorities said last week that they are on track with their plan to complete the first phase in 2019 and the second phase in 2024. At full build-out, the proposed $463 million reverse-osmosis facility would be the largest desalination plant in the Western Hemisphere, twice the size of the Poseidon plant in Carlsbad, producing up to 100 million gallons of water daily. Though Watton said he has been in talks with Baja California officials about the possibility of purchasing some of that water, the state’s chief water planner denied the existence of a plan to send any of the desalinated water across the border. “The water is for Baja California, for our municipalities,” said German Lizola, who heads the State Water Commission, in an interview last week. Like San Diego, Tijuana is heavily reliant on the Colorado River, whose water is piped across the state and currently makes up more than 95 percent of the city’s supply. And like San Diego, Baja California has been striving to diversify its water sources in its Pacific coastal regions — from Tijuana to San Quintin. Gov. Francisco Vega de Lamadrid has seen desalination as the solution.

EXHIBIT C Later this year, the state is planning the opening of a desalination plant in the port of Ensenada that would produce 5.8 million gallons daily, Lizola said. It is also preparing to launch construction of a similar-sized plant in San Quintin North of the border, the Otay Water District, whose southern boundary abuts the Mexican border, has also been looking for alternative water sources. The district has spent $4.1 million so far studying on the Mexican option, Watton said. “Just like a lot of water projects, you have to invest some money to see if they’ll pan out,” he said. We’ve had an expression by the state (of Baja California) in the past that all things being equal, they would like to have an export market,” Watton said. But there are no commitments at this point, he added. The idea of building a desalination plant in Rosarito Beach has been around for decades. But it became a concrete plan last August, when the state signed a contract with a consortium under a private-public partnership agreement to build the the plant and operate it for 37 years. The private group is comprised of NSC Agua, a Mexican company that is the subsidiary of a Cayman Islands-based Consolidated Water, together with two partners: the French company Degremont, and NuWater of Singapore. To move forward, some conditions still need to be met. A filing last month by Consolidated Water with the U.S. Securities and Exchange Commission stated that these include obtaining rights of way for an aqueduct, Mexican federal approvals for Baja California to receive and distribute seawater; federal permits to discharge residual water from the desalination plant; and financing for the first execution of the project’s first phase. The company also has asked the state of Baja California for an increase in the water tariff “to compensate for significant changes in foreign exchange,” a company statement said, adding that it hopes to launch construction in the third quarter of this year. The project has the backing of the North American Development Bank, a binational institution that evaluates and supports infrastructure projects on the U.S.-Mexico border. “We remain optimistic that the plant will come to fruition,” read a statement sent Friday. “In addition, we remain confident that the Bank will leverage private sector financing for the construction.” In case Baja California agrees to sell some of its water with the completion of the second phase in 2024, the Otay Water District is proposing its own tandem $30 million project. It is called “Otay Mesa Conveyance and Disinfection System,” and consists of a pump station at the border, a pipeline to carry the water to its reservoir and an ultra- violet water treatment facility. The recent granting of the U.S. presidential permit has buoyed Watton’s hopes that the project can move forward. The permits are issued by the U.S. State Department for

EXHIBIT C cross-border projects found to be in the national interest, and require consultations with federal, state and local agencies and the solicitation of public comment. While most of these permits involve land border crossings, they have also been granted for seven cross-border pipelines carrying petroleum products. Watton said his permit is the first that involves a proposal to import water from Mexico. The permit was opposed by U.S. environmental groups — the Surfrider Foundation’s San Diego Chapter as well as Imperial Beach-based Wildcoast, which cited concerns about the future plant drawing from contaminated water off the Baja California coast. In recent months, Baja California has announced a series of projects that aim to clean up the Tijuana coastline. South of the border, opinions are mixed about the plan for the Rosarito desalination plant. Some question the hurry to complete a project of that magnitude — at full capacity it would supply water for more than 1.7 million people — nearly the size of Tijuana’s current population. They argue the state ought to put more effort into water reuse projects. But others contend that the desalinated water can be a new source that can reduce Tijuana’s vulnerability if an earthquake damages the Colorado River aqueduct. A desalination plant, proponents say, can increase the region’s economic potential.

Water has always been a barrier for Tijuana’s growth,” said Cesar Romeo Sauceda, head of Tijuana’s Chamber of Construction and Industry. Romeo has heard talk about the possibility of sending some of the water to San Diego, and would not necessarily oppose such a plan. “I think it’s part of being neighbors, of having commercial relations, it’s something natural,” he said. Still, up to now, he said, “nobody that I know has officially spoken of selling some of that water to the United States. [email protected] @sandradibble

Mexico-U.S. cross-border desal project moves forward - WaterWorld Page 1 of 3

MEXICO-U.S. CROSS- BORDER DESAL PROJECT MOVES FORWARD

SAN DIEGO, CA, JUNE 19, 2017 -- On May 16, 2017, the U.S. Department of State granted a presidential permit to allow the Otay Water District to build a nearly four-mile potable water pipeline that begins at the U.S.-Mexico border. This permit authorizes the District to "construct, connect, operate, and maintain cross-border water pipeline facilities for the importation of desalinated seawater at the International Boundary between the United States

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and Mexico in San Diego County, California." Purchasing and transporting water Aguas de Rosarito's $421 million desalination plant in Rosarito, Baja California, Mexico, is a component of the District's water supply diversification efforts. The Rosarito plant could potentially produce water to meet up to two-thirds of the District's projected water use by 2024.

In light of the growing need for new potable water supplies in Mexico and San Diego County, the proposed Rosarito plant and the District's $30 million Otay Mesa Conveyance and Disinfection System Project would provide a new drought-proof water supply to its customers. The District currently provides water service to a population of more than 223,000 people, which is expected to increase to more than 308,000 by 2050.

The Rosarito facility would produce up to 100-million gallons of water daily in two phases. The first phase, expected to be operational by late 2019 or early 2020, would make 50-million gallons or more of desalinated water available daily to the Tijuana/Rosarito region. The second phase, expected to be completed by 2024, would deliver up to an additional 50- million gallons daily, with 10 to 30 percent of that water available to the District.

The Otay Mesa Conveyance and Disinfection System Project will be the first cross-border project of its kind to import water to the U.S. from Mexico. Otay currently maintains the only two existing presidential permits for water crossings along the U.S.-Mexico Border. The District's other cross-border pipeline allows Mexico to transport and import Mexican Colorado River apportionment water through the U.S. facility to Tijuana.

The project has undergone environmental review as required by the California Environmental Quality Act and National Environmental Policy Act and has obtained a U.S. Fish and Wildlife biological permit. The District also applied for a permit from the California Water Resources Control Board's Division of Drinking Water to ensure that water imported from Mexico meets the same water quality drinking standards as water from regional lakes, from the Claude "Bud" Lewis Carlsbad Desalination Plant, and from the City of San Diego's Pure Water Program.

"Although there are still several hurdles to overcome, receiving the presidential permit for this project is a giant leap for the District and its customers so we have more control over our local water supply," said Mark Watton, the District's general manager. "Desal water from Rosarito would be a closer and highly reliable source water."

The District continues to diversify its water resources, to reduce its dependence on traditional water supplies from the Colorado River and the Sacramento-San Joaquin Delta. It also continues to maximize the use of recycled water and succeed in its water conservation efforts. For more details on the Otay Mesa Conveyance and Disinfection System Project and Rosarito Desalination Plant project, click here.

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http://www.waterworld.com/articles/2017/06/mexico-u-s-cross-border-desal-project-move... 8/17/2017 EXHIBIT E http://www.breitbart.com/california/ California May Import Water from Mexico Desalination Plant

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Justin Sullivan/Getty by Michelle Moons20 Jun 2017109

20 Jun, 2017 19 Jun, 2017

EXHIBIT E The U.S. State Department has approved a cross-border pipe that would carry water from a desalination plant in Mexico into San Diego, California’s Otay Water District.

“The Otay Mesa Conveyance and Disinfection System Project will be the first cross- border project of its kind to import water to the U.S. from Mexico,” according to the district’s website. The State Department approved the permit for the water line on May 16. The State Department permit covers the length of pipe from the border to the district.

The District has applied to the California Water Resources Control Board Division of Drinking Water for a permit that would ensure the Mexican water pumped in “meets the same water quality drinking standards as water from regional lakes, from the Claude ‘Bud’ Lewis Carlsbad Desalination Plant, and from the City of San Diego’s Pure Water Program.”

Otay Water District General Manager Mark Watton said, “Although there are still several hurdles to overcome, receiving the presidential permit for this project is a giant leap for the District and its customers so we have more control over our local water supply.”

EXHIBIT E Watton has pointed out that there are electric lines, a gas pipeline and an airport bridge that span the U.S. southern border, according to the San Diego Union Tribune. He went on to call the installation of a water line “only natural.” He also stated that that would make Otay the first district in the U.S. to import water from Mexico.

Water from the proposed desalination plant in Mexico could provide up to two-thirds of the water in the Otay District’s system by 2024, according to the district. By that time, 10 to 30 percent of the 50 million gallons of water produced at the plant could flow to California’s Otay District.

The Rosarito Beach Desalination Plant has yet to be built. The Tribune reported the assurance of Baja California authorities that phase 1 of the plant will be completed in 2019 and phase 2 in 2024. At a cost of $463 million, it is planned to be the largest in the Western Hemisphere, and twice the size of San Diego County’s desalination plant in Carlsbad.

Follow Michelle Moons on Twitter @MichelleDiana

https://www.newsdeeply.com/water/executive-summaries/2017/06/23

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WWW.FRONTERA.INFO Vfernes2g Tijuana, B.C. Septiembre 2017 Costaran desaladoras de Ensenada y Rosarito mas de 81 mil millones El Estado pagaria por mcs 160...1 n1dp por Ia conslruccion, instalacion y opcracion de las dos plantas

DESAUNIZADORAS planta desalinizadora ~ YERSON MARTINEZ Los entes que contratan . ~I: [email protected] Ensenada son la Comisi6n Estatal del ~ Mexicali, B.C. 149.3mdp Agua del Estado de Baja Ca- 8z Pago mensual por 37 alios lifornia y al Comisi6n Esta- :.1 La construcci6n, instalaci6n 76mmdp tal de Servicios PU.blicos de • Las obras estan programadas para finiquitar su pago en 30 y 37 alios. Pago total tras 37 alios y operaci6n de las dos plan­ Tijuana que en total paga­ tas desaladoras de Ensena­ Rosarito ran mas de 66 mil294 millo­ contrato de C-Sidue-CEA­ para el Valle de Guadalupe. y con ello se podria elevar la da y Playas de Rosarito cos­ 11.1mdp nes de pesos mas IVA APP-2015-001 iniciaria la Los 81 mil millones de pe­ tarifa de agua si la recauda­ tara mas de 81 mil millones Pago mensual por 30 alios La segunda planta desa­ obra a partir de enero de 2018 sos se pagaran a traves de las ci6n no garantiza el pago de 4mmdp de pesos, de acuerdo a cifras ladora fue contratada por la por un pago total de 4 mil9 cuentas de los usuarios de las mensualidades. Pago total tras 30 ai'los del dictamen 95. Comisi6n Estatal del Agua millones de pesos mas IVA las distintas comisiones es­ El dictamen 95 surge por El diputado Carlos T9rres del Estado de Baja Califor­ En suma el costo sera de tatales de servicios publicos, reglas adicionales a la nor­ Torres explic6 que la desala­ C-Sidue-CEA-APP-2015-002 nia y la Comisi6n Estatal-de mas de 70 mil303 millones lo cual no afectara los ingre­ matividad ante la Secretaria dora en Playas de Rosarito de Asociaci6n Publico Pri­ Servicios PU.blicos de Ense­ de pesos que mas IVAsupera sos propios del Estado, pun­ de Hacienda, de ambos pro­ costara 149 millones 312 mil vada, Aguas de Rosarito nada por 11 millones 136 mil los 81 mil millones de pesos. tualiz6. yectos previamente aproba­ pesos mensuales a pagarse S.A.P.I. de C.V. sera la encar­ pesos mensuales a plaza de El diputado explic6 que Los grupos ciudadanos dos en el Poder Legislativo durante 37 afi.os a partir de gada de materializar el pro­ 30afi.os. Ensenada reguiere agua pa­ opositores a los contratos via en el decreta 57 antes dicta­ junio del2019. yecto de construcc.i6n, :finan­ La empresa Desalado­ ra no depender del Rio Colo­ APP, seiialaron que el Esta­ men 62, votados a favor en di­ Mediante el contrato ciamiento y operaci6n de la ra Kenton S.A. de C.V b::ijo rado y porque falta liquido do se vuelve deudor solidario ciembre del2016. ZETA Aprobaran endeudamiento de "Kiko" por 83 mil mdp - EXHIBIT I

Foto: Cristian Torres

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Basta con que dos terceras partes, es decir, 17 de25diputados de Baja California voten a favor para que el Estado comprometa el presupuesto estatal por mas de83 mil millones de pesos, durante un periodo de 37 anos, para empresas de familiares de funcionarios panistas

Diputados confiaron a ZETA que es el propio gobernador, Francisco Arturo Vega de Lamadrid, quien ha tenido que realizar llamadas telefonicas amenazantes a los diputados de su bancada para que aprueben a como de lugar dos propuestas que envio desde julio para poder financiar negocios bajo el esquema de Asociacion Publico Privadas, principalmente relacionadas con el

agua.

"No habiamos visto este nivel de presiones, chantes o amenazas para poder pasar algo", conto uno de los diputados, haciendo referencia a la operacion que el Gobierno del Estado haechado andar en los ultimos dias, para que los diputados aprueben dos dictamenes que comprometeran los recursos de las proximas generaciones deBaja California.

El gobierno de "Kiko" Vega tiene un problema: firmaron contratos (autorizados por la anterior legislatura) con empresas bajo el esquema de APP, para estas realicen obras y servicios relacionados con e! agua en la entidad. La mas costosa es la desaladora en Rosarito. Pero no tienen el dinero para pagarlos y mas cuando se trata de costear 82 mil millones de

pesos.

Tan solo al consorcio Aguas de Rosarito, integrado por las empresas NSC Agua, Nuwater y DegremonU encargados de la desaldora en Rosarito-

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TiJuana, el gobiemo pretende pagar 172 millones de pesos 840 mil pesos al afi0' incluyendo el IVA, que representa 2 mil 74 millones de pesos al mum lartM an ■ frufr-"'* OihtMhs >nun p^j •" muu F.u IC1' !*■ Hvno 11 Umin n» Dvorrwhi Iiimmj HWgMi Ip ■ I [! 11 .

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En ese consorcio, se ubica Alejandro de la Vega Valladolid, vinculo familiar con el Antonio Valladolid, ex secretario de Fianzas del gobemador.

Estos proyectos han sido impulsados desde el Gobiemo del Estado, personalmente por el mandatario, asi como por el secretario de Desarrollo Urbano, Manuel Guevara, y por Antonio Valladolid.

Lo grave es que, para poder comprometer los miles de millones de pesos, el Congreso ahora debe aprobar que el Estado financie y garantice el pago a las empresas por las administraciones siguientes.

Eso es lo que esta en juego en las proximas horas, en el pleno de la Camara de Diputados, y donde el PAN, PRI, PRD, Movimiento Ciudadano, Partido del Trabajo y Partido de Baja California, tienen la intencion de votar a favor.

Otros contratos

Ademas del ya mencionado contrato, otro al que "Kiko" Vega le urge asegurar los pagos millonarios durante afios, es el que celebro con Desaladora Kenton S.A. de C.V., que fue la unica que presento propuesta y que es representada por Patricia Paterson Villalobos y Yolanda Padilla Loza y donde aparece como socio Jesus Octavio Rincon Vargas, hermano de la alcaldesa panista de Rosarito, Mirna Rincon.

Esta empresa creada para la APP se encargara del "Sistema Integral Hidrico en San Quintin". Ahi, el gobiemo se compromete a un pago de 11 millones 136 mil pesos al mes, mas IVA; esto es, mas de 133.6 millones al afio, con una duracion de 30 anos, arrojando un total de 4 mil 650 millones de pesos.

Uno mas es para la Operadora de Pluviales Mexicali, empresa que realizara obras de tuberias y drenajes en la capital del Estado. Para ello se quieren destinar 2 millones 845 mil pesos mensuales, durante 15 afios, dando un monto total de 512 millones 246 mil pesos, con IVA incluido.

Es justamente el Dictamen 95 que se votara este viemes 29 de septiembre el que pretende autorizar al gobiemo del Estado para que todos los ingresos de la Cespt, Cespe y Cespm, por servicio de agua, conformen fideicomisos para el pago a las

empresas.

Los propios diputados saben que para cumplir con ese compromiso, se tendra que aumentar las tarifas del agua potable, adquirir mas deuda publica y comprometer otros impuestos que generan importantes ingresos.

file:///P|/...Reports/Committee Desa! Update 2017-3/Exhibit 1 - ZETA Aprobaran endeudamiento de "Kiko" por 83 mil mdp 09-2017 -.html[l 1/29/2017 10:00:25 AM] ZETA Aprobaran endeudamiento de "Kiko" por 83 mil mdp -

El dictamen 95

Las presiones son para que aprueben las garantias del pago. El gobernador envio esa propuesta desde julio, pero rue hasta el pasado 9 de septiembre que se dictaminaron en la Comision de Hacienda, encabezada por la panista, Irais Vazquez.

En la Comision, ademas de la diputada Vazquez, a favor votaron dos panistas mas: Eva Maria Vasquez y Sergio Tolento. Ademas, las propuestas del gobernador contaron con las "abstenciones" del diputado Jorge Eugenio Nunez, del Partido de Baja California, y de Rocio Lopez Gorosave, del PRD.

No hubiera sido posible que salieran los dictamenes en la Comision si los diputados de "oposicion", Catalino Zavala, de Morena; Job Montoya, de Movimiento Ciudadano; y de Benjamin Gomez, del PRI, no hubieran faltado "oportunamente" en esa sesion de Comision.

El dictamen 95 pretende dejar en Ley que las Comisiones de Servicios Publicos esten obligadas a pagar las mensualidades millonarias que arriba fueron mencionadas. Es decir, se tendra que aumentar las tarifas del agua para poder incrementar los presupuestos.

Pero si eso no Ilegara a concretarse, esto es, que si el dictamen es aprobado por el Congreso, se estara autorizando al Gobierno del Estado "un credito en cuenta corriente irrevocable", es decir, contratar deuda publica para garantizar hasta tres meses de contraprestacion.

Esto no es todo, el dictamen 95 contempla una tercera garantia. Si los ingresos de las comisiones de servicios fallan y los creditos no son suficientes, se contempla un fideicomiso para nuevamente garantizar ei pago por medio de los ingresos por con sumo de agua.

Finalmente, el gobernador quiere que el Congreso autorice otro fideicomiso para poder incautar los ingresos derivados del impuesto sobre las remuneraciones al Trabajo Personal y asegurar los millones contratados con las empresas, durante todos los anos que vienen.

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Dktamen 94

Este viernes igualmente se votara por aprobar un contrato relacionado con la Seguridad Publica para construir un C5 (Centro de Control, Comando, Comunicacion, Computo y Calidad en el Estado).

El Gobierno del Estado busca pactar un contrato plurianuaf por 750 millones de pesos, mas 1VA, a pagar en 10 afios, lo que representa 800 millones 400 mil pesos en total.

Estos dos dictamenes se intentaron votar en la Camara de Diputados el pasado 21 de septiembre, pero grupos opositores de Mexicali tomaron a la fuerza los pasillos del Congreso y tuvo que posponerse.

De igual forma, creo division dentro de la fraction panista. El diputado Miguel Osuna Millan declaro publicamente la falta de sustento y la "poca seriedad" en la pretension del gobernador y la de sus companeros diputados.

Los cdlculos

Los operadores del gobierno y del Partido Action Nacional calculan que los dictamenes se aprobaran con cierta dificultad, pero se sienten confiados con el apoyo del Partido Revolucionario Institucional (PRI), por medio de la "buena disposition" de Alejandro Arregui y coordinador de la bancada, quien ha ofrecido la operation dentro de su grupo parlamentario; asimismo saben de la colaboracion de Benjamin Gomez, presidente de la Mesa Directiva.

Igualmente, el PAN-gobierno presume internamente que tienen en la bolsa a Rocio Gorosave, diputada del PRD; a Job

fi1e:///P|/...Reports/Committee Desal Update 2017-3/Exhibit I - ZETA Aprobaran endeudamiento de "lKiko" por 83 mil mdp 09-2017 -.html[l 1/29/2017 10:00:25 AM] ZETA Aprobaran endeudamiento de '"Kiko" por 83 mil mdp -

Montoya, de Movimiento Ciudadano, por instrucciones dei dirigente en el Estado, Alcibiades Garcia Lizardi; y al Partido de Baja California, por medio de Jorge Eugenio Nunez.

Las APPs en el pantano

Para !a diputada federal y ex dirigente del PRI, Nancy Sanchez, Ios dictamenes no deben de aprobarse: "Somos de Ios estados mas endeudados en todo el pais, sobre todo, por la prisa de atender el tema de las APPs que e! tema de seguridad".

Agrega: "Ios asesores del gobierno estatal parece que engafian al gobernador con numeros y cifras que danzan en lo ridiculo, que lo unico que hacen es hacerlo quedar mal. Como legisladora, exijo y pido que sean claros, que digan que destino tendran y tienen Ios recursos".

Sanchez dice que la molestia social que existe "es porque es un gobierno incompetente, poco claro, que esta mas preocupado por sus negocios, por sus APPs, que pudieron haber sido muy buenas, pero nacieron en un pantano y no han sabido como salir adelante y decirle a la gente; no han clarificado que nos van a endeudar por 37 anos", senalo.

''Ha platicado con algunos diputados de mi partido, cruzamos informacion al respecto. Creo que la postura debe ser la misma, la nuestra, de la transparencia en el gasto, no enganar al ciudadano, no comprometer a generaciones futuras, la claridad del manejo de las finanzas publicas".

La diputada no tiene duda, el dictamen 94 y 95, "Por supuesto que se tienen que votar en contra. Si no ha sido transparente su manejo, tiene que ser en contra. Las APPS siguen empantanadas y mis diputados tienen que ser congruentes con eso".

— lE\ no hacerlo genera ha sospechas?

"Por supuesto que generarfa sospechas, espero que no sea asi, pero tambien conozco a Ios del gobierno dei Estado. Son tramposos y son mayoria (PAN), mis diputados han sido muy congruentes, se han fajado en Ios temas importantes, algunos mas y otros menos, pero ahi se va a notar".

Panista en contra

file:///P|/...Reports/Committee Desai Update 2017-3/Exhibit I - ZETA Aprobaran endeudamiento de "Kiko" por 83 mil mdp 09-2017 -.html[! 1/29/2017 10:00:25 AMI ZETA Aprobaran endeudamiento de '"Kiko" por 83 mil mdp -

Dentro del grupo parlamentario de Accion Nacional, el diputado Miguel Osuna Millan fijo desde un principio su postura en contra de los dictamenes 94 y 95. Con esto, el ex secretario de Salud se convirtio en el unico legislador panista que se opuso a la voluntad del gobernador.

Lo hizo por una serie de razones tecnicas que muestran no solo la falta de viabilidad de los proyectos, sino los dafios que causaria una deuda de esta magnitud.

"Llamese como se llame, emprestitos, pago de contraprestaciones o deuda; estas obligaciones de pago por mas de 82 mil millones de pesos cuadriplican o quintuplican la deuda publica del Estado de Baja California; por ello mi postura en contra de mayor endeudamiento del estado", declaro respecto al dictamen 95.

Explico que la entidad cuenta con la disponibilidad de 89 millones de metros cubicos de agua que alcanzarian para abastecer el servicio hasta 2018, por lo que considero "inaceptable aprobar ahora una inversion de esta naturaleza, no hay prisa", hizo ver Osuna Millan.

De igual forma, senalo que las desaladoras requieren la opinion y aprobacion de expertos en el tema del agua, quienes recomiendan la construccion de manera escalonada en modulos de 200 litros por segundo.

En cuanto al dictamen 94, considero insuficiente la documentacion tecnica para justiflcar la construccion del C5, por lo que califico de "inviable" a este contrato. "La solucion no esta en el uso de la tecnologia, sino en la voluntad politica de los gobiernos Federal, Estatal y Municipal", expreso.

Ademas, reconocio la falta de responsabilidad en el abordaje del tema, ya que no se incluyo un dictamen tecnico por parte de un perito especializado e independiente que avale el proyecto y pidio al gobierno del Estado que este se incluyera.

file:///Pl/...Reports/Committee Desat Update 2017-3/Exhihit I - ZETA Aprobaran endeudamiento de "Kiko" por 83 mil mdp 09-2017 -.html[11/29/2017 10:00:25 AMI EXHIBIT J Giant Rosarito Beach desalination project faces scrutiny

The Presidente Juarez thermoelectric plant in Rosarito Beach is near the site of a planned desalination plant that would be the largest in the Western Hemisphere. (San Diego County Water Authority)

Sandra Dibble Contact Reporter

November 27, 2017, 7:00 AM

With Tijuana and other rapidly growing coastal cities heavily dependent on the Colorado River, Baja California urgently needs to find new water sources.

Baja California Gov. Francisco Vega de Lamadrid’s administration has offered a solution: Build the largest desalination plant in the Western Hemisphere, enough to ensure a supply for decades to come.

But plans for the reverse-osmosis facility in Rosarito Beach, a project that at full capacity would desalinate 100 million gallons daily, have come under unprecedented scrutiny at a politically sensitive moment. The touchiest public issue is the question of whether some of that water would be sold to the Otay Water District in San Diego County.

EXHIBIT J More than a year after the signing of a public-private-partnership contract between Baja California and an international consortium to design and build the plant and operate it for 37 years, there are growing calls for at least a pause — if not a halt — to the process.

Some question whether such a large plant is necessary, and warn of sharp increases in water rates once it is built. Others accuse the state of secretly planning to sell some of the water to the United States.

Still others say the state’s greatest need is not the desalination plant — but for a broad and open public discussion about the critical issues of water use and ensuring a supply for future generations.

“We’re talking about the future, we’re talking about water, we’re talking about the fact that the coastline of Baja California cannot just depend on the Colorado River,” said Carlos de la Parra, a water expert at the Colegio de la Frontera Norte, a Tijuana-based think tank. “This desalination plant is out of thin air.”

Kurt Honold, president of the influential Tijuana business coalition Consejo Coordinador Empresarial, said, “We need to be a better administrator of the water that we already have … we are not using the water efficiently, we have a big bucket and the bucket has holes.”

The issue has come to a head as the Baja California legislature prepares for a vote on federally mandated adjustments to the state’s public-private-partnership law.

A no vote would at the very least delay the desalination plant, the most ambitious infrastructure project of Vega’s administration. It would also put on hold eight other public-private-partnership projects.

“There is no better proposal,” said Manuel Guevara, Baja California’s secretary of infrastructure and the administration’s point-person on the Rosarito desalination project. “In fact, there is no other proposal at all. There has been no proposal from any group, any chamber, any legislator that’s different from ours, except for the size.”

Like San Diego County, the state of Baja California is largely reliant on the Colorado River for its major cities, Tijuana and Mexicali, and the Mexicali Valley, its largest agricultural region.

EXHIBIT J

Baja California Gov. Francisco Vega de Lamadrid in 2016 in San Quintin celebrating a public-private-partnership agreement to build a desalination plant by the Pacific Ocean at La Chorera. (Gobierno de Baja California)

Population growth and drought on the river have prompted growing concern, and calls for greater efficiency in managing the existing water supply as well as finding alternative sources.

Next month, the state of Baja California plans to launch its first utility-scale ocean desalination plant in the port of Ensenada, a reverse osmosis facility able to produce 5.7 million gallons daily. Another similar-sized plant is being planned in the agricultural community of San Quintin, the first project approved under the state’s public-private-partnership law that was passed in 2014.

But the largest by far is the Rosarito Beach facility whose cost is estimated at more than $470 million. At full capacity, it would be twice the size of the Poseidon plant in Carlsbad, enough to supply the needs of 2 million people.

Baja California officials today are insisting that their sole aim at this point is ensuring a long- term water supply for residents of the state’s fast-growing Pacific coastal urban areas.

“We’re can’t lose sight of the main vision, which is ensuring the water supply not just for three or six years, or even ten,” said Guevara, the Baja California secretary who leading the desalination efforts. “This is a vision for 20 or 40 years.”

The project is under review by the North American Development Bank (NADB), a binational institution that evaluates and finances border infrastructure projects. “We believe in the necessity of the project from a water availability perspective,” said Jesse Hereford, a bank spokesman. He said in an email that NADB “is part of the banking syndicate that is looking at financing the project.”

EXHIBIT J The idea of a cross-border desalination project predates Gov. Vega’s administration by some two decades. A groundbreaking agreement in 2012 between the United States and Mexico — known as Minute 319 — listed a binational desalination plant in Rosarito Beach as a potential new source of water for the region.

But it wasn’t until August 2016, with the public-private-partnership contract that a concrete plan moved forward. The winning bidder, Aguas de Rosarito, joined together NSC Agua, a Mexican company that is the subsidiary of a Cayman Islands-based company, Consolidated Water, with two partners: the French company Degremont and NuWater of Singapore.

The agreement committed the consortium to build the plant in two phases and operate it for 37 years before turning it over to the state. As envisioned in the agreement, the first phase was to produce 50 million gallons a day, and launch in late 2019 or early 2020; a second phase in 2024 would double the capacity to 100 million.

“We don’t need such a large desalination plant,” said Ruben Garcia Fons, an engineer with expertise in water issues. He belongs to a group, COMICE, made up of planners, academics, builders and suppliers, which has recently gathered close to 1,000 signatures against the project. The selection process has been an “obscure procedure,” he said. “And those who will pay are those citizens who use the water.”

The contract states Baja California would be in charge of distributing the water, and much of the current controversy over the plant now revolves on whether the state intends to ship some of that water across the border.

Luis Moreno, a state legislator with the opposition Social Encounter Party, has been one of the most vocal critics, offering as proof transcripts of investor calls by Consolidated Water from 2009 to 2013. The state government, “is working behind the back of its citizens,” and “is seeking to benefit Consolidated Water and its partners,” Moreno said in a news release earlier this month.

North of the border, the Otay Water District, which serves some 220,000 water users in southeast San Diego County, began discussing the proposal with Consolidated Water years before Gov. Vega took office in 2013.

The district has been looking to diversify its water supply, and has spent more than $4 million researching the possibility of importing water from a future desalination plant in Mexico. Last May, the U.S. State Department approved a presidential permit to carry some of that water across the border at Otay Mesa.

Mark Watton, the district’s general manager, said he has discussed the plan with Baja California’s secretary of economic development, Carlo Bonfante, but received no guarantees. “It was speculative from the get-go,” Watton said. “It makes sense that Mexico would export water as a finished manufactured product like they do other stuff, but the politics are wrapped around the axle right now.”

EXHIBIT J Guevara, the secretary of infrastructure, said Bonfante is not the one to negotiate such deals, and can make no commitments. Guevera said it would be up to water agencies and himself. “I have had no discussions with Otay Water,” he said.

To move forward with the Rosarito desalination plant and other public-private partnerships, Gov. Vega’s administration needs to persuade 17 legislators to approve the changes.

Guevara remains optimistic that the state government will prevail and the project will move forward. But if the vote is no, “I’d recommend suspending it, until we are at a better economic and political moment,” he said. With time, “we’ll demonstrate that we’re facing a water crisis.”

EXHIBIT^ Federal Register/Vol. 82, No. 107/Tuesday, June 6, 2017/Nootices & 6207 be determined, is in the national Presidential Permit of State or the Secretary's delegate or interest. I have ordered that Public may be amended by the Secretary of Authorizing the Otay Water District To State or the Secretary's delegate at will Notice of these Determinations be Construct, Connect, Operate, and published in the Federal Register. or upon proper application therefore. Maintain Cross-Border Water Pipeline The permittee shall make no substantial Facilities for the importation of FOR FURTHER INFORMATION CONTACT: For change in the location of the U.S. further information, including a list of Desalinated Seawater at the facilities or in the operation authorized the imported objects, contact the Office International Boundary Between the by this permit until such changes have of Public Diplomacy and Public Affairs United States and Mexico in San Diego been approved by the Secretary of State in the Office of the Legal Adviser, U.S. Country, California or the Secretary's delegate. Department of State (telephone: 202- By virtue of the authority vested in (2) The construction, connection, 632-6471; email: section2459@ me as the Acting Assistant Secretary of operation, and maintenance of the state.gov). The mailing address is U.S. State for the Bureau of Oceans and facilities shall be in all material respects Department of State, L/PD, SA-5, Suite International Environmental and as described in the Application. 5H03, Washington, DC 20522-0505. Scientific Affairs including those Article 2. The standards for, and the authorities under Executive Order manner of, the construction, connection, Alyson Grander, 11423, 33 FR 11741 (1968); as amended operation, and maintenance of the U.S. Deputy Assistant Secretary for Policy, Bureau by Executive Order 12847 of May 17, facilities shall be subject to inspection of Educational and Cultural Affairs, 1993, 58 FR 29511 (1993), and and approval by the representatives of Department of State. Executive Order 13337 of April 30, appropriate federal, state, and local [FR Doc. 2017-11692 Filed 6-5-17; 8:45 am] 2004, 69 FR 25299 (2004); and agencies. The permittee shall allow duly authorized officers and employees of BILLING CODE 4710-05-P Department of State Delegation of Authority 118-2 of January 26, 2006 and such agencies free and unrestricted Delegation 415 of January 18, 2017; access to said facilities in the DEPARTMENT OF STATE having considered the environmental performance of their official duties. effects of the proposed action consistent Article 3. The permittee shall comply with the National Environmental Policy with all applicable federal, state, and [Public Notice: 10020] Act of 1969, as amended (83 Stat. 852, local laws and regulations regarding the connection, construction, operation, and Issuance of Presidential Permit to the 42 U.S.C. 4321 et seq.), and other maintenance of the U.S. facilities and Otay Water District To Construct, statutes relating to environmental with all applicable industrial codes. The Connect, Operate, and Maintain Cross- concerns; having considered the proposed action consistent with the permittee shall obtain all requisite Border Water Pipeline Facilities for the permits from the relevant Mexican Importation of Desalinated Seawater at National Historic Preservation Act of 1966, as amended (80 Stat. 917,16 authorities as well as from the relevant the International Boundary Between U.S.C. 470f et seq.); and having state and local government entities and the United States and Mexico in San requested and received the views of relevant federal agencies. Diego County, California various federal departments, state and Article 4. All construction, connection, operation, and maintenance SUMMARY: The Department of State local officials, and Indian tribes, and other interested persons; I hereby grant of the U.S. facilities under this permit issued a Presidential permit to the Otay permission, subject to the conditions shall be subject to the limitations, terms, Water District (the District) on May 16, and conditions issued by any competent herein set forth, to the Otay Water 2017, authorizing the District to District (hereinafter referred to as agency of the U.S. Government, construct, connect, operate, and including but not limited to the "permittee") to construct, connect, maintain cross-border water pipeline Department of Homeland Security operate, and maintain cross-border facilities for the importation of (DHS) and the U.S. Section of the water pipeline facilities for the desalinated seawater at the international International Boundary and Water importation of desalinated seawater at boundary between the United States and Commission (USIBWC). The permittee the international boundary between the Mexico in San Diego County, California. shall continue the operations hereby United States and Mexico in San Diego In making this determination, the authorized and conduct maintenance in County, California. Department provided public notice of The term "facilities" as used in this accordance with such limitations, terms, the proposed permit, offered the permit means the relevant portion of the and conditions. Such limitations, terms, opportunity for comment, and consulted pipeline and any land, structures, and conditions could address, for example, environmental protection and with other federal agencies, as required installations, or equipment appurtenant by Executive Order 11423, as amended. thereto as described in the permittee's mitigation measures, safety requirements, export or import and FOR FURTHER INFORMATION CONTACT: November 2013 application fora customs regulations, measurement Contact the Office of Mexican Affairs' Presidential permit (the "Application"). The term "U.S. facilities" as used in capabilities and procedures, Border Affairs Unit via email at this permit means those parts of the requirements pertaining to the [email protected], by phone pipeline's capacity, and other pipeline at 202-647-9894, or by mail at Office of facilities in the United States, as described in the Application. regulations. This permit shall continue Mexican Affairs—Room 3924, This permit is subject to the following in force and effect only so long as the Department of State, 2201 C St. NW., conditions: permittee shall continue the operations Washington, DC 20520. Information Article 1. (1) The U.S. facilities herein hereby authorized by any competent about Presidential permits is available described, and all aspects of their U.S. government agency in exact on the Internet at http://www.state.gov/ operation, shall be subject to all the accordance with such limitations, terms, p/wha/rt/permit/. conditions, provisions, and and conditions. SUPPLEMENTARY INFORMATION: The requirements of this permit and any Article 5. Upon the termination, revocation, or surrender of this permit, following is the text of the issued amendment thereof. This permit may be and unless otherwise agreed by the permit: terminated at the will of the Secretary 26208 Federal Register/Vol. 82, No. 107/Tuesday, June 6, 2017/Notices

Secretary of State or the? Secretary's a condition of good repair for their safe City of Washington, District of delegate, the U.S. facilities in the operation. Columbia. immediate vicinity of the international (4) The permittee shall obtain a Judith G. Garber, boundary shall be removed by and at license from the USIBWC before Acting Assistant Secretary for Oceans and the expense of the permittee within commencing construction, International Environmental And Scientific such time as the Secretary of State or the (5) The permittee shall obtain an Affairs. Secretary's delegate may specify, and easement from DHS for any portion of [FR Doc. 2017-11675 Filed 6-5-17; 8:45 am! upon failure of the permittee to remove, the pipeline that crosses over or under or to take such other action with respect BILLING CODE 471CK-29-P property in which the U.S. Customs and to, this portion of the U.S. facilities as Border Protection owns an interest. ordered, the Secretary of State or the Secretary's delegate may direct that (6) The permittee shall obtain a DEPARTMENT OF TRANSPORTATION possession of such facilities be taken permit from the California Federal Aviation Administration and that they be removed or other action Environmental Protection Agency, State Water Resources Control Board, taken, at the expense of the permittee; Notice of Intent To Rule on Request To Division of Drinking Water, and the permittee shall have no claim Release Airport Property at the for damages by reason of such Article 9. The permittee shall take all Colorado Springs Airport, Colorado possession, removal, or action. appropriate measures to prevent or Springs, Colorado. Article 6. When, in the opinion of the mitigate adverse environmental impacts President of the United States, the or disruption of significant AGENCY: Federal Aviation national security of the United States archeological resources in connection Administration (FAA), DOT. demands it, due notice being given by with the operation and maintenance of ACTION: Notice of Request to Release the Secretary of State or the Secretary's the U.S. facilities, including those Airport Property. delegate, the United States shall have mitigation measures set forth in the SUMMARY: The FAA proposes to rule and the right to enter upon and take Final Environmental Impact Report/ possession of any of the U.S. facilities Environmental Impact Statement dated invite public comment on the release of or parts thereof; to retain possession, August 2016 and any additional land at the Colorado Springs Airport under the provisions of Section 125 of management, or control thereof for such measures that may be required as result the Wendell H. Ford Aviation length of time as may appear to the of any reevaluation of the foregoing or Investment Reform Act for the 21st President to be necessary; and thereafter in the associated terms of the Biological Century [AIR 21). to restore possession and control to the Opinion to be issued by the U.S. Fish permittee. In the event that the United and Wildlife Service. DATES: Comments must be received on States shall exercise such right, it shall or before July 6, 2017. Article 10. The permittee shall not pay to the permittee just and fair begin construction until it has been ADDRESSES: Comments on this compensation for the use of such U.S. informed that the Government of the application may be mailed or delivered facilities upon the basis of a reasonable United States and the Government of to the FAA at the following address: Mr. profit in normal conditions and the cost Mexico have exchanged diplomatic John P. Bauer, Manager, Federal of restoring said facilities to as good notes confirming that both governments Aviation Administration, Northwest condition as existed at the time of authorized the commencement of Mountain Region, Airports Division, entering and taking over the same, less construction. Denver Airports District Office, 26805 E. the reasonable value of any 68th Avenue, Suite 224, Denver, Article 11, The permittee shall improvements that may have been made Colorado 80249-6361. provide written notice to the by the United States. In addition, one copy of any Article 7. Any transfer of ownership Department of State at such time as the comments submitted to the FAA must construction authorized by this permit or control of the U.S. facilities or any be mailed or delivered to Mr. Troy part thereof shall be immediately is begun and again at such time as Stover, Colorado Springs Airport, notified in writing to the U.S. construction is completed, interrupted, Colorado Springs, Colorado, at the Department of State for approval, or discontinued. following address: Mr. Troy Stover, including identification of the Article 12. The permittee shall file Colorado Springs Airport, 7770 Milton transferee. In the event of such transfer with the appropriate agencies of the E. Proby Parkway, Suite 50, Colorado of ownership or control, this permit U.S. government such statements or Springs, Colorado 80916. shall remain in force and the U.S. reports under oath with respect to the FOR FURTHER INFORMATION CONTACT: Mr. facilities shall be subject tn all the U.S. facilities, and/or the permittee's Marc Miller, Colorado Engineer/ conditions, permissions, and actions in connection therewith, as are Compliance Specialist, Federal Aviation requirements of this permit and any now or may hereafter be required under Administration, Northwest Mountain amendments thereof. any laws or regulations of the U.S. Region, Denver Airports District Office, Article 8. (1) The permittee is government or its agencies. 26805 E. 68th Avenue, Suite 224, responsible for acquiring such right-of- Article 13. This permit shall expire Denver, Colorado 80249-6361. way grants or easements, permits, and five years from the date of issuance in The request to release property may other authorizations as may become the event that the permittee has not be reviewed, by appointment, in person necessary and appropriate. commenced construction of the (2) The permittee shall save harmless at this same location. facilities by that deadline. and indemnify the United States from SUPPLEMENTARY INFORMATION: The FAA any claimed or adjudged liability arising In witness whereof, I, Judith G. invites public comment on the request out of construction, connection, Garber, Acting Assistant Secretary of to release property at the Colorado operation, or maintenance of the State for the Bureau of Oceans and Springs Airport under the provisions of facilities. International Environmental and the AIR 21 (49 U.S.C. 47107(h)(2)). (3) The permittee shall maintain the Scientific Affairs, have hereunto set my On May 16, 2017, the FAA U.S. facilities and every part thereof in hand this 16th day of May, 2017 in the determined that the request to release