Leadership Luncheon Panelists Address Questions Submitted by Attendees

On behalf of the Government Affairs Committee for the Monterey Peninsula Chamber of Commerce, we thank all our elected officials, sponsors, members and guests for your participation and support for the Chamber's Annual Leadership Luncheon on September 29. This year's record attendance was testament to the importance of the event and the interest that our local business community has in engaging elected officials.

As a follow up to this years’ event, questions from the audience not addressed due to time constraints were submitted to each official in attendance, allowing them an opportunity to respond as appropriate.

"What measures are underway to resolve California's energy crisis and why aren't we seeign a larger push to create jobs in renewable and green energy? Additionally, could our returning vets not be trained for this specific field and could we see renewal energy gain steam by beginning with contracts geared towards military personnel and bases?"

Blakeslee: California has taken the most aggressive steps to advance renewable energy programs. California has enacted a 33% renewable portfolio standard, that requires 33% of California’s electricity to come from renewable sources by 2020. The California Solar Initiative is a solar panel instillation incentive program that provides $2 billion to homeowners to make solar panels more affordable. Additionally, California Energy Commission's New Solar Homes Partnership provides incentives to homebuilders to add solar power to new energy efficient homes. To find out more about the incentives you can visit www.gosolarcalifornia.org

The bulk of longer term jobs associated with clean energy are in the RD&D and manufacturing sectors. Clean energy RD&D is thriving in California thanks to significant infusions of venture capital over the past few years; however, manufacturing continues to lag. In 2009, I authored legislation co-sponsored by Governor Schwarzenegger and State Treasurer Lockyer that sought to provide a sales tax exemption for the manufacturing of clean energy technologies. This policy was eventually enacted in SB 71 in early 2010. That bill was a good first step at improving California’s economic competitiveness, but there is much work left to be done. The most significant challenges that remain require reform to the states cumbersome regulatory processes and mandates that make it much more difficult for businesses, including renewable and green energy companies, to grow in California.

Monning: Thank you for this question. There are measures before the Legislature to address California’s energy crisis through the promotion of alternative energy that include solar, wind, and tide motion. In addition, California is providing incentives for home installation of solar panels and has set a new standard nationally that will require California energy companies to provide up to 1/3 of all energy that is provided in California be generated from alternative energy sources by 2020.

"Of the 5,000 af of recycled water that is available from MRWPCA, how much is actually available for use within the Cal AM Water service area?"

Calcagno: MRWPCA has approximately 8,000 af of extra wastewater goes through the facility and out into the Bay each year. Briefly, 1,000 af is available for urban irrigation (RUWAP); 2,700 af is available for groundwater replenishment; 2,300 af is available for future RUWAP projects being considered; and, 2,000 af is available for future projects. All of these uses could offset current CalAm and Marina Coast pumping.

ADDRESSED TO ALL PANELISTS:

"The Monterey Peninsula Unified School District has an overall budget up to $100 million/year. How is that leveraged to strengthen our regional economy?"

Monning: The Monterey Peninsula Unified School District is part of the third largest employer within Monterey County and that is the education industry. As an employer, the education industry fuels small and large businesses, and its employees are either homeowners or renters.

In terms of further leveraging this economic engine within our community, providing a quality education at all levels is one of the most important investments the state and our local communities can make. Every student who receives a quality education can become a contributing member of our local community.

Within Monterey County, I am encouraged to see that K-12 education institutions, community colleges and state colleges are working together to be in sync with our local job market. Additionally, all educators deserve recognition for their long hours, weekend work, and ultimate commitment to teaching and inspiring our next generation of leaders and workforce members.

Calcagno: This question would be better addressed by MPUSD officials.

Parker: Since I do not work with the MPUSD budget on a regular basis, I am not in a position to answer this question.

"Why is the water of Monterey County managed by a third part administrator - "Cal Am" and why are they profiting off money that should stay here?"

Blakeslee: Monterey Peninsula’s water supply system has been privately owned since its inception. The original dam on the Carmel River was privately built in the 1880’s to provide water for the Del Monte Hotel. That was the start of the Monterey Peninsula’s water system. The level of profit that utilities, like Cal Am, can earn is closely regulated by the Public Utilities Commission, which approves Cal Am’s rates in an open and public process. Furthermore, the Division of Ratepayer Advocates (DRA) is a separate arm of the PUC dedicated to protecting ratepayers from undue costs. DRA has been very active on many of Cal Am’s projects, including the removal of San Clemente Dam and the desalinization plant. So, while Cal Am does is allowed a profit for providing water services in Monterey County, that profit is closely reviewed and analyzed by state agencies

Monning: California-American Water Company (Cal-Am) serves as the private provider of water for the Monterey Peninsula and, as such, it assumes the responsibility and ultimate liability for providing a steady and reliable water supply to the region. The Monterey Peninsula Water Management District (MPWMD) is the elected body charged with oversight and management of the district’s water resources. There have been discussions locally about a public takeover of Cal-Am and in 2005 this issue was put to a vote in order to determine if Monterey Peninsula residents wanted MPWMD to study a takeover of the local CalAm system. In the end this initiative was defeated and while I believe it is healthy to the public discourse to have these discussions, there are some serious considerations that need to be addressed, particularly the cost of this type of venture and the entity that would be responsible for managing it.

Calcagno: CalAm is the owner/operator of the water system. In order to change it, CalAm would need to be bought out by a public entity.

Parker: California American Water is actually a water provider, not a manager. However, those who are concerned about money leaving the local economy should look into some of the groups interested in pursuing local ownership of a water service provider.

"What can you do to move the Regional Water Project forward and end Cal Am's overpumping from the Carmel River?"

Blakeslee: I am working with the local stakeholders to help Cal Am comply with the State Water Board’s cease and desist order. The consequences of non-compliance are too great to sit on the side lines. When I was minority leader I worked with the Governor and other legislative leaders to successfully negotiate a statewide water plan. The plan included a bond measure to be placed on the ballot that could help fund water projects on the Monterey Peninsula to address the immediate need for additional water supply. I will work with the many different agencies on the peninsula trying to secure clean water for our community and do what I can to help them through the many regulatory hurdles.

Monning: The current mandate by the State Water Resources Control Board (SWRCB) directing the California-American Water Company (Cal-Am) to reduce over-pumping of the Carmel River (Order 95-10) raises a serious challenge to not only Cal Am, but to all Monterey residents. The overdraft of the Carmel River has had serious impacts on the Carmel River habitat and jeopardizes a sustainable and long term water resource for Cal-Am customers. In a letter dated September 28, 2009, I encouraged the SWRCB to postpone enforcement of this order pending the finalization of the Regional Water Project. Unfortunately, my request for postponement, along with many others in the community, was refused.

The proposed regional water plan appears to have stalled due to legal investigations and litigation. While the mediation between stakeholders continues, it is prudent to explore all options for offsetting the overdraft of the Carmel River basin including conservation, recycling and reuse of existing water resources, desalination, and expanded storage in aquifers and existing storage systems. Additionally, I would hope to see a greater use of cisterns by homeowners, government entities, and businesses. It is crucial to local residents and our economy that there is a Plan B in place should the Regional Water Project as proposed not materialize and I look forward to staying involved in the on-going discussions.

Calcagno: The Regional Water Project is tied up in litigation. It will take some time to sort things out.

Parker: Monterey County is working diligently to resolve the issues that are holding up the project. In the meantime, there are other solutions being proposed that are less costly and that could be implemented more quickly than the Regional Water Project.