The company that is looking to build a desalination plant in Carlsbad has increased its request of a tax-free state bond by $70 million, making the total $550 million.

Poseidon Resources is applying for $550 million in tax-free Private Activity Bonds to finance the project. Every year, the California Debt Limit Allocation Committee divides the state’s IRS allocation of tax-free bonds to proposed projects across the state. The request comes several weeks before the committee, made up of the State Treasurer, Comptroller, and Director of Finance, make their decision on whether the bond will be approved.

Some are upset over Poseidon seeking out the bond.

“The state should not reward Poseidon’s track record of failure,” said Renee Maas, Food & Water Watch Water program organizer, in a statement. “Their only other desalination plant in Tampa Bay, Florida, was riddled with problems and ultimately had to be taken over by the Tampa Bay Water Authority. That project came in $40 million over budget and has never produced its promised 25 million gallons of water per day. Now Poseidon wants subsidies to build a plant using the same technology, but twice the size in Southern California.”

Despite several legal challenges and financing questions over the past few weeks, Poseidon has indicated it plans on breaking ground for the project this month.

                                        

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Not only should Poseidon not get the $70 million increase, they should not be given one dime of bond money or ANY public money for this scheme. And every public official that supported it should be recalled if the taxpayers are bilked.

Watchdog , November 02, 2009

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