The California official said the proposal from the Connecticut-based company, Poseidon Resources Inc., passed a committee review despite stern opposition from environmentalists, the San Diego Union-Tribune said Thursday.

Sanders said during Tuesday's review that the proposed plant in Carlsbad, Calif., would increase the state's available water supply during the ongoing water crisis.

"We must diversify our region's water-supply portfolio," the mayor said. "We cannot conserve our way out of the water crisis."

The Union-Tribune said the $300 million plant would create 50 million gallons of drinking water daily, which would be enough drinking water to supply 112,000 California households.

The Agua Hedionda Lagoon project is expected to destroy a estimated 16 million fish larvae daily, which means Poseidon will be required to compensate for that loss under the state's Coastal Act.