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. 0' 002473 . . River water dematlds in the Lower Colorado River Basin. The CEC has requested the.applicant to clarify a number of issues concerning the WCOP by September 23,2002. On July 17"', the CEC deemed the BEP II Application for Certification data adequate, thus beginning the CEC's review process. Blythe Energy Project Phrase I, a similar project, is about 88 percent complete and is scheduled for completion by early next year. His also expected to use about 3,300 acre-feet of water per year and utilizes a WCOP. BEP II is expected to be completed by the middle of2005. California's Colorado River Water Use Plan Assembly Concurrent Resolution No. 251 On August 26, 2002, the California Assembly, and with the concurrence of the Senate, passed a resolution that it is in the interest of the State of California that the QSA be executed on or before December 31, 2002. The resolution recognizes the significance of California's Colorado River allocation, the California Colorado River Water Use Plan, the surplus conditions provided through the Interim Surplus Guidelines, the current water supply condition in the Colorado River Basin, and the QSA process. Should the QSA not be successfully executed by December 31 , 2002, the California Legislature may consider appropriate legislative actions to ensure successful implementation of the QSA and ensure that the Interim Surplus Guidelines are reinstated. A copy of the resolution has been included in your handout material. Coachella Canal Lining Project The Coachella V alley Water District has issued a Notice to Proceed to the design contractor, Montgomery-Watson Harza. The current project schedule anticipates that design work will be completed in time to award a construction contract in late June 2003. According to the representative of the San Luis Rey (SLR) settlement parties, who will receive a portion of the conserved water from the lining project, negotiations with the Metropolitan Water District of Southern California (MWD) regarding the Transportation Agreement are proceeding. Agreement must be reached before the SLR parties will enter into negotiations on the Allocation Agreement, which is required to ensure that water conserved through canal lining is made available for transfer. All-American Canal Lining Project On September 10, the Imperial Irrigation District (lID) Board is scheduled to consider the approval ofan Advance Funding Agreement between lID and the Metropolitan Water District of Southern California, which will provide funds to lID from MWD for project related work. This agreement will allow [ill to proceed with the project and fulfill the conditions precedent to the disbursement of State funds. 5