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Obscure State Agency Approves Land Lease for Desalination Plant
Yesterday afternoon (June 23, 2026), the California State Lands Commission voted 3-0 in San Francisco to approve an application for California American Water Company (Cal Am) to continue to lease state land near the City of Marina for the slant wells of its planned desalination plant (part of the Monterey Peninsula Water Supply Project).
Representatives of your Monterey Peninsula Chamber of Commerce informed commissioners about population decline and school enrollment decline on the Monterey Peninsula and observed that limited water supply has prevented housing construction and reasonable economic development. We noted correctly that decisive judgements related to local controversies over water supply and demand are not under the authority and jurisdiction of the State Lands Commission.
Why is this vote important? When the California Public Utilities Commission (PUC) voted in November 2022 to approve a permit for the desalination plant, they provided a list of twenty conditions that Cal Am needed to fulfill by November 2027 before it could begin construction. Approval of the permit from the State Lands Commission was a component of one of these twenty conditions.
Desalination plant opponents often share a critical tone toward businesses in general. Ultimately, some of the motivation for stopping the desalination plant is to maintain limited water supply as an obstacle to restrain commerce and reduce population.
Your Chamber of Commerce supports the concept of businesses making money (including making a "profit"). We will continue to support a moderately-regulated free market system that allows for reasonable economic growth, job creation, and new housing that's affordable for ordinary households. Desalination provides sufficient water to achieve these goals on the Monterey Peninsula.
We welcome your input and remain available to discuss our approach and exchange ideas. For further information please contact Monica Lal at monica@montereychamber.com.
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