Cayucos Sanitary District 200 Ash Avenue Cayucos CA 93430 www.cayucossd.org • 805-773-4658 Cayucos Sustainable Water Project (CSWP) Subsequent Mitigated Negative Declaration for the Estero Marine Terminal Ocean Outfall Project Component Subsequent Initial Study of Environmental Impact I. ENVIRONMENTAL DETERMINATION FORM 1. Project Title: Cayucos Sustainable Water Project Ocean Outfall 2. Lead Agency Name and Address: Cayucos Sanitary District 200 Ash Avenue / PO Box 333 Cayucos CA 93430 3. Contact Person and Phone Number: David Foote, c/o firma, (805) 781-9800 4. Project Location: Chevron Estero Marine Terminal 4000 Highway 1, Morro Bay, California 93442 5. Project Sponsor's Name and Address: Cayucos Sanitary District 200 Ash Avenue / PO Box 333 Cayucos CA 93430 6. General Plan Designation: The proposed pipeline tie-in site is designated Agriculture. The effluent pipeline conveyances are within public right-of-way (State Route 1) and Waters of the U.S. and State. 7. Zoning: Agriculture (County) and Open Area I/PD (City of Morro Bay west of State Route 1 and the mean high tide line) Cayucos Sustainable Water Project Ocean Outfall Initial Environmental Study Final January 2019 1 Cayucos Sanitary District 200 Ash Avenue Cayucos CA 93430 www.cayucossd.org • 805-773-4658 Cayucos Sustainable Water Project (CSWP) Subsequent Mitigated Negative Declaration for the Estero Marine Terminal Ocean Outfall Project Component 8. Project Description & Regulatory and Environmental setting LOCATION AND BACKGROUND The Project consists of the reuse of an existing ocean conveyance pipe for treated effluent disposal from the proposed and permitted Cayucos Sustainable Water Project’s (CSWP) Water Resource Recovery Facility (WRRF) by the Cayucos Sanitary District (CSD). The pipeline is leased from the California State Lands Commission (CSLC) by Chevron Pipeline Company (Chevron). This pipe is referred to historically, and herein, as LL2 (Load Line 2). The CSD has land use entitlements from the County of San Luis Obispo for construction of a new Water Resource Recovery Facility located on Toro Creek Road, related conveyance pipelines, and production of tertiary treated water for agricultural irrigation. This land use entitlement did not include the use of the Chevron outfall pipe but rather the existing Morro Bay-Cayucos Wastewater Treatment Plant outfall.1 The CSD will apply to the County of San Luis Obispo (on-shore) and the California Coastal Commission (marine) for Coastal Development Permits for this proposed outfall project. The Proposed Project site is located within the Estero Marine Terminal (EMT) and ocean near Cayucos (refer to Figure 1 Location and Jurisdictional Boundaries and Figure 2 Existing Offshore Facilities and Proposed Diffuser). The EMT was constructed in the late 1920’s and was commissioned in 1929. It remained in operation until the spring of 1999 when the EMT was placed in caretaker status under the existing lease status and decommissioning activities. The offshore components of the EMT comprise a Tanker Berth as well as two pipelines constructed for oil conveyance, Load Line 1 (LL1) and Load Line 2 (LL2), along with an outfall pipe for treated tanker ballast water (Figure 2- Existing Offshore Facilities and Proposed Diffuser). LL2 consists of a nominal 20-inch to 22-inch diameter pipeline that extends 3,952 feet from shore and terminates at a depth of 51 feet (Padre 2016). The EMT pipeline tie-in site is located within an unincorporated portion of coastal San Luis Obispo County (County), near the northern boundary of the City of Morro Bay (City), California. The terminal property under lease from the CSLC includes parcels of tidelands and submerged lands, lying immediately south and offshore of the mouth of Toro Creek, in the seabed of the Pacific Ocean at Estero Bay. Land west of State Route 1 is within the incorporated limits of the City of Morro Bay. 1 An additional Coastal Development Permit will be required from the City of Morro Bay related to the CSD’s future participation in the decommissioning of the existing Wastewater Treatment Facility in Morro Bay. This permit is not associated with this proposed ocean outfall project. Cayucos Sustainable Water Project Ocean Outfall Initial Environmental Study Final January 2019 2 Cayucos Sanitary District 200 Ash Avenue Cayucos CA 93430 www.cayucossd.org • 805-773-4658 Cayucos Sustainable Water Project (CSWP) Subsequent Mitigated Negative Declaration for the Estero Marine Terminal Ocean Outfall Project Component Cayucos Sustainable Water Project Ocean Outfall Initial Environmental Study Final January 2019 3 Cayucos Sanitary District 200 Ash Avenue Cayucos CA 93430 www.cayucossd.org • 805-773-4658 Cayucos Sustainable Water Project (CSWP) Subsequent Mitigated Negative Declaration for the Estero Marine Terminal Ocean Outfall Project Component Cayucos Sustainable Water Project Ocean Outfall Initial Environmental Study Final January 2019 4 Cayucos Sanitary District 200 Ash Avenue Cayucos CA 93430 www.cayucossd.org • 805-773-4658 Cayucos Sustainable Water Project (CSWP) Subsequent Mitigated Negative Declaration for the Estero Marine Terminal Ocean Outfall Project Component The offshore lease land occurs within the area encompassed by the Morro Bay North and Cayucos, California, United States Geological Survey (USGS) 7.5-minute quadrangle maps, Township 29S, Range 10E, Mt. Diablo Baseline and Meridian. The upland address of the EMT is 4000 Highway 1, Morro Bay, California 93442. RELATIONSHIP OF THE LL2 RE-USE PROJECT TO THE CAYUCOS SUSTAINBLE WATER PROJECT The LL2 Re-use project will implement the ocean outfall for effluent discharge component of the Cayucos Sustainable Water Project’s Water Resource Recovery Facility (WRRF). PREVIOUS CEQA DOCUMENT The CSD certified the Final EIR for the CSWP in April 2017, which is herein incorporated in full by reference in this subsequent CEQA document. The CSD adopted a Statement of Overriding Considerations for a Class I significant and unavoidable impact related to tsunami hazard for the pipeline along SR 1. The CSWP is inherently an environmentally superior project to the existing Morro Bay WTTP which is in a potential tidal inundation area. This EIR analyzed the use of the Chevron pipe as an outfall in EIR section V as an alternative to this component of the project to a degree of specificity appropriate for alternatives analysis under CEQA. The alternative was compared to the use of the existing ocean outfall for the jointly owned wastewater treatment facility in Morro Bay. The alternate outfall was identified as superior in part because it would abandon the miles of effluent pipelines running to Morro Bay some of which are in tidal hazard areas, including tsunami. This EIR also analyzed environmental issues related to the proposed project for geology, biology, cultural resources and other topics referenced herein in the following Initial Study checklist. EXISTING STATE LANDS COMMISSION LEASE Use of the State tidelands (oceanward from the mean high tide line) for the EMT tanker berth component and related ocean pipe conveyances was originally authorized under CSLC Lease Public Resources Code (PRC) 2478.1. The original lease boundaries encompassed the physical area necessary for the tanker berth operations including the anchor spreads, the former pier structure and other associated facilities. Subsequently, the physical boundaries of PRC 2478.1 were substantially reduced. The majority of the EMT tanker berth facility reduction was completed during the Phase I, II, and III EMT decommissioning activities completed in 1999 through 2001. The facilities located outside the reduced lease area boundary were abandoned. The residual business development lease area which encompassed the remaining three pipeline corridors was authorized under CSLC Lease PRC 8100.1, hereinafter referred to as the “State Cayucos Sustainable Water Project Ocean Outfall Initial Environmental Study Final January 2019 5 Cayucos Sanitary District 200 Ash Avenue Cayucos CA 93430 www.cayucossd.org • 805-773-4658 Cayucos Sustainable Water Project (CSWP) Subsequent Mitigated Negative Declaration for the Estero Marine Terminal Ocean Outfall Project Component Lease”. The provisions of the State Lease allowed Chevron a five-year period to evaluate other potential uses for the remaining three EMT pipelines including a potential landfall for telecommunication cables. In the event that potential alternate uses were not realized within the five-year period, Chevron was then required to apply for appropriate permits to abandon the remaining offshore facilities. Based on a February 15, 2005 verbal communication with CSLC staff on the existing State Lease for the EMT expired on May 31, 2005 and was put on “hold over” status until regulatory permits for decommissioning of the EMT facility are acquired. As of June 2015, the State Lease was revised to replace the previous lease number PRC 8100.1, entered into between Chevron Pipeline Company and the California State Lands Commission, the original term of which ended May 31, 2005 and has continued on a month-to-month holdover tenancy basis. The term of the new State Lease is for five years; beginning June 1, 2015 and continuing through May 31, 2020, unless sooner terminated as provided under the lease. EMT tanker berth decommissioning and site restoration operations are being proposed by Chevron in compliance with the lease termination provisions of the existing State Lease. Re- use of LL2 for effluent disposal is being proposed by the CSD