53 



we might have more dry years than we are going to have wet years 

 in the future. And I guess that is an observation to you. 



And the question I would have of you is, since we are going 

 through this second round of questioning here; in the next round 

 of questioning we are going to near from Friant, and in their writ- 

 ten testimony the representation is made that even though tiered 

 pricing isn't in effect yet because, as you indicated, it doesn't go 

 into effect for several years, that the Bureau is requiring this now 

 at the district to grower level, and that the Bureau is requiring ap- 

 proval of the district's conservation plans. Can you comment upon 

 those things? 



Mr. Beard. Well, one of the things that we have tried to do is 

 work our way around the — let me back up. We recognize that the 

 tiered pricing as laid out in the statute may not be the best way 

 to handle the problems at Friant. So what we did in the water con- 

 servation criteria is require the district to put into place a pricing 

 mechanism which would promote conservation — referred to as a 

 tiered pricing mechanism to promote conservation. 



Now, if we find, through the experience with our plans, that that 

 is not the most effective way and that it is counterproductive, we 

 are certainly willing to go back and look at our criteria and make 

 sure that they are effective. We have required about 114. conserva- 

 tion plans, and we have received about 89. Twenty-five of them 

 really don't need to send us a plan yet, and we have approved 49 

 of the 89. We are currently in the process of dealing with the other 

 40. 



We are gaining experience every day on the use of things like 

 pricing mechanisms as a means to promote more efficient use of 

 water. The Friant representatives will have an opportunity to tes- 

 tify on that when they come up in the next panel. I think it is the 

 next panel. 



Mr. DOOLITTLE. Well, I guess I would just ask since the CVPIA 

 doesn't require nor I believe authorize that, why are you doing 

 that? 



Mr. Beard. Well, the CVPIA is going to require it in long-term 

 contracts. 



Mr. DOOLITTLE. Well, I understand that, but that is in 1998, you 

 testified. Why are you making them do it now? 



Mr. Beard. Because price is certainly a very strong inducement 

 to promote conservation and improve water management. And if 

 these are conservation plans, they lay out our suggestion for ap- 

 proaches on ways in which the districts can achieve conservation 

 objectives. Now, pricing is one way to do that. 



Mr. DOOLITTLE. I question why the Bureau is taking these meas- 

 ures that go beyond the requirements of the law. I will recognize 

 Mr. Dooley for his questions. OK. Mr. Dooley passes. Mr. 

 Radanovich. 



Mr. Radanovich, One short question. I have got a question for 

 you, Mr. Beard, regarding administrative changes and administra- 

 tive fixes, and it centers around the 800,000 acre foot definition of 

 what constitutes a credit toward that dedication to the environ- 

 ment. 



And I would like to refer back to a hearing we had in Sac- 

 ramento on CVPIA recently. I believe it was in April, and, of 



