ITEM:		ACTION ITEM
13.	CONSIDER AUTHORIZATION TO FILE APPLICATION FOR MODIFICATION OF THE CEASE AND DESIST ORDER
Meeting Date:			October 20, 2025	Budgeted:	N/A
From:			David J. Stoldt	Program/
			General Manager	Line Item No.:	N/A
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: Since the Pure Water Monterey (PWM) project came online in 2021, Cal-Am has not exceeded its legal water rights from the Carmel River. Based on the recent California Public Utilities Commission (CPUC) decision regarding water supply and demand on the Monterey Peninsula, with the addition of PWM Expansion there is no imminent threat of Cal-Am exceeding its legal water rights on the river. Accordingly, the District believes that the SWRCB should issue a new order modifying and restating certain of the ordering provisions of the Cease and Desist Order (CDO) as specifically proposed in the Proposed Modified CDO found in Exhibit 13-A, hereto.

The District’s proposal would achieve the following:

• Rescind Condition 2 – the prohibition on new meters – from prior Order(s). The SWRCB would reserve the right to reinstate such a condition subject to monitoring and triggers proposed.

• Maintain existing quarterly and annual reporting to the SWRCB, subject to including a few additional data; Certain prior reporting requirements would be clarified or deleted because they have either been met on an ongoing basis or are no longer required.

• Create a water supply and demand monitoring regime that would provide triggers to the SWRCB that would allow the Deputy Director for Water Rights to consider the annually submitted information to determine if a reinstatement of Condition 2 of Order 2009-0060 might be necessary.

RECOMMENDATION: The General Manager recommends the Board authorize its General Counsel to submit the Application for Modification of the CDO as provided in Exhibit 13-A.

EXHIBIT

13-A Application for Modification of the CDO

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