Groundwork Laid for Lifting the CDO Construction of the Pure Water Monterey Expansion project is expected to be completed in late 2025. The PWM Expansion will bring a long-term replacement water supply (see previous page) to meet the Peninsula’s needs for decades or act as a bridge until a desalination plant is fully permitted and built. In 2024, the District started taking the necessary steps to lift the State’s Cease and Desist Order (CDO) imposed on Cal-Am that would eliminate the moratorium on service connections for new housing. As a result of Cal Am’s over-drafting of the Carmel River, the California State Water Board issued a CDO in 2009 that continues to prevent water from being used for new projects. As of December 31, 2021, the new water supply from PWM ended Cal Am’s over-drafting, but the State still has not lifted the CDO. The District is in the process of allocating a portion of the PWM Expansion water supply to each city and the unincorporated county to meet growth needs over the next 25 years. Lifting the CDO is not required for these allocations, however they will require an existing service connection to receive the allocations. The recent adoption of Ordinance 197 allows the Water District to undertake the allocation process. District Manages Grants for New Peninsula Projects MPWMD continues to manage grants for the Monterey Peninsula. Duties include: (a) Application coordination and submission; (b) Agreement execution and coordination with the California Department of Water Resources; (c) Invoicing, with documentation, on behalf of the Local Project Sponsors; and (d) Reporting. In 2024, two grants were expended by the District for the benefit of the PWM Expansion project: 1) an Urban Community Drought Relief Grant from the Department of Water Resources for $11,935,200. and 2) a Directed Assistance Grant coordinated by the State Water Resources Control Board for $4,800,000. Also, in 2024, the District managed an Integrated Regional Water Management (IRWM) Implementation Round 2 Grant for the Monterey Peninsula region for $1,488,961. The two project recipients are: 1) Carmel River Floodplain Restoration and Environmental Enhancement (Carmel River FREE), sponsored by Monterey County, and 2) the Olivier Street Stormwater Diversion Project, sponsored by the City of Monterey. An IRWM Implementation Round 1 Grant from 2021 will be used in 2025 to construct the West End Stormwater Improvement Project located in a disadvantaged community and sponsored by the City of Sand City. PAGE THREE
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