PAGE THREE In October of 2025, the Monterey Peninsula Water Management Board voted unanimously to ask the State Water Board to modify its Cease and Desist Order (CDO) on the Carmel River and allow new water meter connections. This is intended to clear the way to set new meters for housing and jobs on the Peninsula. A decision is expected from the State by summer 2026. The PWM project is expected to provide a permanent replacement water supply to meet the Monterey Peninsula’s needs for decades or serve as an adequate bridge until a desalination plant is fully permitted and built. The CDO was originally issued in 2009 as a result of Cal-Am’s excessive pumping from the river. “Cal-Am has not violated its lawful water rights on the Carmel River in the past four years,” said Dave Stoldt, District General Manager. “This is a window of opportunity for the community to ease water restrictions in favor of housing and jobs.” The District continues to manage grants for new projects on 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 2025, construction for two grant-funded projects supporting PWM were completed. Final invoicing and reporting will be completed by the District in 2026. The first was an Urban Community Drought Relief Grant from the Department of Water Resources for $11,935,200. The other is a Directed Assistance Grant coordinated by the State Water Resources Control Board for $4,800,000. Overall, the PWM Expansion project garnered over $40 million in grants, with only $15 million to be repaid by local ratepayers over 30 years. Also in 2025, the District continued administering an Integrated Regional Water Management (IRWM) District Asks State to Drop Restrictions on New Water Meters Grants Administered by District Bring New Projects to Peninsula Implementation Round 2 Grant totaling $1,488,961 for the Monterey Peninsula region. The two funded projects are: 1. Carmel River Floodplain Restoration and Environmental Enhancement (Carmel River FREE), sponsored by Monterey County 2. Olivier Street Stormwater Diversion Project, sponsored by the City of Monterey The Carmel River FREE project has experienced federal funding-related delays. However, the City of Monterey’s Olivier Street Stormwater Diversion Project remains on schedule and is progressing as planned. Additionally, an IRWM Implementation Round 1 Grant awarded in 2021 will fund construction of the West End Stormwater Improvement Project in 2026. This project, located in a disadvantaged community, is sponsored by Sand City. Two other projects funded under this grant have been completed for the City of Seaside and the Marina Coast Water District.
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