The Associated Press

Fri, Aug 22, 2008 (4:39 p.m.)

A state panel on Friday approved the leasing of property that will allow construction of the Western Hemisphere's largest desalination plant north of San Diego.

Passage by the California State Lands Commission was the final government approval needed for the $300 million project.

Commission members voted unanimously in favor of the plan submitted by Poseidon Resources Corp., which aims to turn millions of gallons of sea water into drinking water.

"We're done with the permitting process," said Scott Maloni, vice president of Poseidon. "Now we can go raise the money" to build the plant.

Poseidon hopes to break ground next year and eventually produce about 10 percent of San Diego County's water supply _ enough for 300,000 people.

More than a dozen other desalination plants are under consideration across the state, including one in Huntington Beach.

The proposal was stalled for two years before getting the endorsement of the California Coastal Commission earlier this month. Opponents worried the plant would damage marine life and ultimately raise people's water bills.