In 2010, the State Water Resources Control Board issued a Cease and Desist Order for Monterey water companies to stop taking water from the Carmel River by 2016. In response, Cal Am and Monterey Municipal Water Districts devised a public-private partnership (Regional Desalination Project) to address the water supply needs created by the Cease and Desist Order.
January 17, 2012: Cal Am announced publicly that it withdrew its support for the Regional Desalination Project and would propose an alternative project.
April 23, 2012: Cal Am filed a new application requesting CPUC approval of a new proposal for a Monterey Peninsula Water Supply Project. The project would be a Cal Am-only funded project that would address the water shortage needs of the Monterey area.
June 1, 2012: The CPUC issued a Ruling requesting parties to address foundational legal issues of Preemption and Water Rights before advancing to Cal Am’s Water Supply Project proposal.