California State Lands Commission approves Cal Am lease for slant wells in Marina.

Following hours of public testimony at a California State Lands Commission meeting in San Francisco on Tuesday, June 23, commissioners approved allowing California American Water’s (Cal Am) to use slant wells in Marina.

The lease authorizes the construction of four subsurface slant wells and conversion of one existing test well on a former Cemex mine. A key part of Cal Am’s desalination project, the slant wells are drilled from land beneath the seafloor to intake seawater and brackish water for treatment at a desalination facility. That water would then be converted into a new drinking water supply for Cal Am’s 100,000 customers on the Monterey Peninsula.

The approval marks another step forward in Cal Am’s decades-long effort to build the project, one that many critics argue is unnecessary, disputing projections of a future water shortfall, and arguing it is too costly for ratepayers. 

“It doesn't make sense in 2026 to construct a $500 million desal plant that would produce 5,400 acre-feet per year of new water,” Marina Mayor Bruce Delgado told commissioners. “That’s more than double what will be needed in 24 years in the future.” 

Commission staff provided a lengthy project overview, explaining how the over-reliance on the Carmel River led the State Water Resources Control Board to issue cease-and-desist orders in the 1990s and again in 2009, prompting efforts to create alternative water supply. The desalination project, they argue, is drought-resilient and would provide water needed in the future.

But they also underscore that the role of the State Land Commission is a narrow one pertaining to a portion of undersea land where the construction of the slant wells will be is within its jurisdiction. Drew Simpkin, a public land manager in the Commission’s Land Management Division, noted that “the project has a long and controversial history involving lawsuits, multiple agency reviews, and environmental impact, and environmental justice community concerns.”

Despite the commission’s narrow jurisdiction, opponents spent hours raising those broader controversies during public comment.

Among the concerns raised by residents, attorneys and local officials were questions about water supply and demand, the size of the project and whether it was fully analyzed under the California Environmental Quality Act (CEQA), impacts to groundwater in nearby critically overdrafted basins, and whether or not Cal Am possessed the water rights needed to extract at the Cemex location. Many residents who called in also argued that the project would add another industrial burden on disadvantaged communities in Castroville, Seaside and Marina, while increasing costs for customers who already face some of the highest water rates in the state.

The recent expansion of Pure Water Monterey, many argued, eliminates the need for a desalination project. Cal Am, however, maintained that even with additional supply there is still a projected water shortfall.  

Supporters of the project included Norm Groot of the Monterey County Farm Bureau; Rick Aldinger and Gary Cursio of the Monterey County Hospitality Association; real estate agencts and residents. They argued that a more stable water supply is necessary to support tourism, housing, agriculture and economic development.

Despite the robust testimony and debate, commissioners approved the lease with minimal discussion. 

“I am uncomfortable with the project being located in a town that has historically borne the brunt of industrial activities, I come from a community like that myself,” said Commission Chair Malia Cohen, who also serves as State Controller. “I also recognize that the project will provide drought-proof water to underserved communities throughout the region, including Castroville. I'm going to make a motion that asks that you consider supporting the staff recommendation, so this project will continue to move forward.”

The commission voted to do so.