WATER CONSERVATION STUDY.

SEC. 207. WATER CONSERVATION STUDY. (a) Preparation and Transmittal.—Any agreement entered into pursuant to section 203 between the Secretary and The Metropolitan Water District of Southern California (hereafter referred to as the “District”) shall require, prior to the initiation of construction but in no case later than two years from the date of enactment of this Act, the preparation and transmittal to the Secretary by the District of a water conservation study as described in this section, together with the conclusions and recommendations of the District. (b) Purpose.—The purpose of the study required by this section shall be the evaluation of various pricing options within the District’s service area, an estimation of demand elasticity for each of the principal categories of end use of water within the District’s service area, and the estimation of the quantity of water saved under the various options evaluated. 102 STAT. 4010 (c) Pricing Alternatives.—Such study shall include a thorough evaluation of all the pricing alternatives, alone and in various combinations, that could be employed by the District, including but not limited to— (1) recovery of all costs through water rates; (2) seasonal rate differentials; (3) dry year surcharges; (4) increasing block rates; and (5) marginal cost pricing. (d) Public Review and Comment.—Not less than 90 days prior to its transmittal to the Secretary, the study, together with the District’s preliminary conclusions and recommendations and all supporting documentation, shall be available for public review and comment, including the transcripts of public hearings which shall be held during the course of the study. All significant comments, and the District’s response thereto, shall accompany the study transmitted to the Secretary. (e) Limitation on Initiation of Construction.—Prior to the initiation of construction, the Secretary shall determine that the requirements of this section have been satisfied. Nothing in this section shall be deemed to authorize the Secretary to require the implementation of any policies or recommendations contained in the study.