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~ . . '.. Reclamation indicated that it would cost approximately $15 million to start up the YDP. Replacement of the membranes is estimated at approximately $9-$11 million, and require replacement every third year. The annual operations and maintenance costs are estimated at $25-29 million. Reclamation estimated that the cost ofYDP product water is approximately $320 to $460 per acre- foot. Reclamation believes that it could lease water conserved through other programs for approximately $250 per acre-foot. Reclamation would prepare an annual request-for-proposal associated with leasing of water from the various sources. Reclamation also indicated significant concern about the potential environmental ramifications associated with operating the YDP. Reclamation believes the potential impacts to the Cienega de Santa Clara due to reduced flows in the Bypass Drain will exacerbate the ongoing binational discussions associated with the Colorado River Delta in Mexico. Should the YDP be operated, Reclamation believes that additional NEPA and ESA compliance will be required. Furthermore, before the product water could..be discharged to the mainstream, above the NIB, a NPDES permit will be required. To date, this permit has not been obtained from the U.S. Environmental Protection Agency (EPAl. Reclamation representatives stated that it was its understanding that the permitting authority was being transferred from EP A to the Arizona Department of Environmental Quality. Finally, Reclamation representatives indicated that it will move fOIWard on with a "dual track." Reclamation will move fOIWard to obtain the funding necessary to retrofit and repair the YDP, replace the membranes, and perhaps operate the plant at one-third capacity. Concurrently, Reclamation will move fOIWard with the proposed Title I modifications and attempt to replace the bypass stream with water acquisitions. Additionally, Reclamation will initiate the appropriate environmental compliance processes. Reclamation stated that it is committed to keeping the Basin States fully informed and involved in each of the processes. Colorado River Environmental Activities Lower Colorado River Multi-Species Conservation Program The Technical Contractors developing the Lower Colorado River Multi-Species Conservation Program (MSCP) are in the process of releasing an addendum to the second administrative draft of the conservation plan. It was determined that it was most efficient to simply prepare those documents which materially revised existing chapters or which presented new materials. New materials being prepared include chapters on adaptive management and long-term monitoring and research activities. Additionally, information related to the biological objectives for certain species has been revised. The Steering Committee is endeavoring to impanel a group of scientific experts to peer review elements of the latest version of the conservation plan, including the addendum. The panel will be presented with a series of questions or issues to evaluate. These questions may include the following: (1) Have the biological and ecological needs of the MSCP "focus" species been adequately addressed in the conservation plan; (2) Are the biological and ecological assumptions 10