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Phase II provided for lining of the Imperial and Coachella Canal systems in California which, although one of the most economical sources of new water for the Pacific Southwest, may require extended negotiation to amend existing water contracts and agreements to be of maximum effectiveness. It provided for the continuation of programs that would be initiated in Phase I and for the reclamation of municipal waste water which could well be an avenue of major local participation. In the main, however, Phase II outlined works necessary for the storage and import of North Coast California water into the Pacific Southwest. It was recognized that plans for such imports had not been studied in detail sufficient to permit decision at this time. In this respect, it was intended only that Phase II suggested works were to demonstrate one way in which the water problems of the Pacific Southwest could be solved. Alternatives were presented including the development of new water supplies by desalting. The construction cost for Phase I was $1,920,862,000 and for Phase II, $2,164,482,000. A repayment demonstration was made for the reimbursable portion of Phases I and II construction costs which indicated payout within a period of 50 years after the last features were constructed at 3 percent interest on municipal, industrial, and power allocated components. In essence, this was the plan on which the States and Federal agencies commented. Summary of Major Comments Submitted by Affected States Arizona. Governor Fannin expresses general agreement with the regional concept, but emphasizes it must not be permitted to delay independent authorization of the Central Arizona Project which is now under consideration in Congress; if the inclusion of Marble Canyon in a separate Central Arizona Project or in any other plan to bring additional water into Arizona will facilitate and result in early authorization and construction, Arizona should agree to its inclusion; development of additional water for Arizona above and beyond the 1,200,000 acre-feet planned under the Central Arizona Project should be a major objective of the plan; projects in northern Arizona, dependent upon water exchange arrangements and upon direct diversion from the Colorado River, should be authorized as soon as feasibility reports are completed. California. Governor Brown submitted comments which, with respect to broad aspects, strongly support the regional program concept, and indicate that individual projects should be authorized only after 3Epson Perfection 4870 Photo, 400 dpi, 8 bit, 13,611,008 byte