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of"'.''4 lv~i I parties and agencies. Both sta'tes subsequently informed the Chief Engineer that they would not object to the proposed excess diversions. By letter of December 28, 1977, the Bureau of Reclamation's Regional Office notified Metropolitan that Assistant Secretary of the Interior Guy R. Martin gave his approval for Metropolitan to exceed its annual contract entitlement for 1977, The letter stated "His approval was given after he was notified of the lack of opposition of both Arizona and Nevada. The severe drought situation in northern California and your cooperation in helping to relieve that problem were also factors in his decision", However, the waiver of contract limit was for calendar year 1977 only. Metropolitan's actual diversions during 1977 were about 1 ,276,000 acre-feet, about 64,000 acre-feet in excess of its contract entitlement. Lower Colorado River Operational Studies The Bureau of Reclamation continued its analysis of alternative reservoir operating strategies during the years prior to completion of the Central Arizona Project, in order to meet flood control storage criteria and at the same time generate additional energy through the system's hydroelectric power plants. One proposal to release 200,000 acre-feet in addition to downstream water delivery requirements during calendar year 1977 was abandoned in January when forecasts indicated that runoff would be much less than normal. However, even though drought conditions caused considerable lowering of reservoir levels, operational studies still show a high probability that Colorado River Basin reservoirs will spill prior to the mid-1980's when the Central Arizona Project begins operation. This probability gave impetus to on-going federal studies of future flood damages due to excess reservoir releases, The Bureau of Reclamation joined 8 with the Corps of Engineers in developing information on potential flooding damages that would occur with varying releases from storage and analyses of how the damages might be mitigated. Some of the alternatives considered would reduce downstream releases in order to minimize damages, but would require additional storage space reserved exclusively for flood control, thus reducing storage space for water conservation. Water Quality Salinity remained in the forefront of Colorado River problems, Activity focused on salinity standards, control efforts and initiation of a 208 Planning program. Probably the significant event of the past year was the suit filed by the Environmental Defense Fund against the Environmental Protection Agency (EPA) to set aside the salinity standards, This is discussed under the section on legal issues. Colorado River Salinity Standards The Colorado River Basin Salinity Control Forum's plan of implementation for salinity control includes a policy of no salt return from industrial dischargers whenever practicable, As described in the 1976 Annual Report, the Forum's Policy for Regulation of Salinity by National Pollution Discharge Elimination System (N PDES) permits was rejected by the Enforcement Division of EPA. A special task subcommittee, chaired by the Chief Engineer of the Board and including representatives of EPA and the state permit issuing agencies, prepared a new policy which was adopted by the Forum on February 28 and forwarded to each of the seven states. The California Colorado River Basin Regional Water Quality Control Board adopted the Forum policy on November 16, as its guide in the issuance of NPDES permits in the Colorado River drainage of California, Most of the states and EPA have adopted the policy as a guide for issuance of permits, The basin states, in October 1975, adopted numerical standards for salinity in the Colorado River. Under the provisions of Section 303 (c) (1) of Public Law 92-500, the states are to review these standards at least once during each subsequent three-year period-and, as appropriate, to modify them. Accordingly, the states must complete their reviews and modifications prior to the end of the three-year period on October 18, 1978, The Forum, through the permanent Work Group which is chaired by the Chief Engineer of the Board, began in May to restudy those factors affecting future salinity in the Colorado River, which will result in new salinity projections for the River, The studies and analyses are being made by the Board staff. Colorado River Basin Salinity Control Program The Bureau of Reclamation continued its efforts on Colorado River Salinity Control projects and the Colorado River Water Quality Improvement Program. Construction funds in the following amounts were appropriated by Congress for three of the salinity control units authorized by the Colorado River Basin Salinity Control Act of 1974, P.L. 93-320: Grand Valley Unit-$1.5 million, Paradox Valley Unit-$1.28 million, and Las Vegas Wash Unit-$5.6 million, The U.S. Soil Conservation Service is pursuing an active role in salinity control through its on-farm improvement program. Improved on-farm water management will reduce the salt contribution to the river from irrigated agriculture. The Crand Valley Unit includes improvements to the water delivery system as well as on-farm improvements and improved water management. When completed, the Bureau's program under this Unit of lining existing canals and replacing the lateral system with pipe, will reduce the salts picked up in Grand Valley by about 280,000 tons per year. The Grand Valley Unit salinity control activities of the Soil Conservation Service, which includes the lining of on-farm ditches, some land leveling and subsurface drainage, and conversion of 800 acres to drip irrigation, will reduce salts picked up by an additional 130,000 tons annually. At present, this Unit is scheduled for construction activities