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. . The Lower Division states' estimated consumptive use of Colorado River water for calendar year] 999, as estimated by Board staff, totals 8.]62 mafand is projected as follows: Arizona, 2.697 maf; California, 5.186 maf; and Nevada, 0.279 maf. Estimated additional unmeasured return flow credits of 0.238 mafwould reduce the total amount to 7.924 maf. For calendar year 1999, the Central Arizona Project (CAP) is projected to divert 1.355 maf, of which 365,000 acre-feet is to be placed in the Arizona Water Bank, and The Metropolitan Water District of Southern California (MWD) is projected to divert 1.210 maf. The January 2000 estimate of 1999 end-of-year California agricultural consumptive use of Colorado River water under the first three priorities of the 1931 California Seven Party Agreement is 3.917 maf. This estimate is based on the collective use through December ]999 by the Palo Verde Irrigation District (PVID), the Yuma Project Reservation Division (YPRD), the Imperial Irrigation District (lID), and the Coachella Valley Water District (CVWD). Figure], found at the end of this report, depicts the historic end-of-year agricultural use for the year. Colorado River Operations 2000 Annual Operating Plan On December 141h Secretary of the Interior, Bruce Babbitt, transmitted the 2000 Annual Operating Plan for the Colorado River Reservoirs (2000 AOP) to the seven governors of the Colorado River Basin states. He stated in his letter that "...the surplus criterion is the criterion goveming the operation of Lake Mead for calendar year 2000 in accordance with Article Ill(3 )(b) of the Operating Criteria and Article II(B)(2) of the decree in Arizona v, California." The plan also makes available to Mexico a volume of 1.7 maf pursuant to the 1944 Mexican Water Treaty and Minute No. 242, Included in the Board folder is a copy of Reclamation's letter to Commissioner Bernal recommending that he inform the Mexican Section of the International Boundary and Water Commission that Mexico can schedule its annual entitlement of 1.5 maf plus 200,000 acre-feet of surplus water. Secretary Babbitt's Comments Concerning California's 4,4 Plan Included in the Board folder is a copy of Secretary of the Interior Bruce Babbitt's speech which he presented at tile Annual Conference of the Colorado River Water Users Association in Las Vegas, Nevada, on December] 7, ] 999. During his presentation, he congratulated California on the progress it had made in developing its 4.4 Plan. The most significant item he discussed dealt with proposed surplus guidelines. He indicated that Reclamation would be issuing a draft E]S in March of2000, with the final EIS and record of decision issued by December 2000. He reiterated that during the transitional period, there is a need to develop and incorporate into the administration of surplus po]icy, a method of assuring that adequate progress is being made by California in achieving its goal. Monitoring periodic step-downs in California's use of Colorado River water will have to be one feature of the surplus policy implementation as a necessary element of continued administration of any surplus policy. Other major Colorado River issues discussed included restoration of the Salton Sea, the Lower Colorado River Multi-Species Conservation Program, the Upper Colorado River Recovery Implementation Program, and the repayment obligations for the Central Arizona Project. 2