PUBLIC LAW 100-675—NOV. 17, 1988	102 STAT. 4009
related mitigation costs under section 203(aX2). Such reimburse-
ment shall be based on the costs each Participating 'Contractor
incurs in contributing funds and its total contribution, and the
life of the works.
SEC. 2®S. IMFLEMEMTAflOH.
The authorities contained in this title shall take effect upon
enactment and the Secretary is authorised to proceed with all
preconstruction activities. For a period not to exceed 15 months
thereafter, or such additional period as the Secretary and the
Imperial Irrigation District, the Coachella Valley Water District,
and the Metropolitan Water District of Southern California may
agree, the Secretary shall provide to the Imperial Irrigation District
the opportunity to become the sole Participating Contractor for the
works on the AM American Canal from Pilot Knob to Drop 4, and
assume all non-Federal obligations to finance the works. After the
expiration of the 15-month period or any extension thereto, the
Secretary is authorised to enter into agreements with the California
Contractors as provided in section 203(c) of this Act.
SEC 2®€.	OF EHSIING WATEE USES.
As of the effective date of this Act, any action of the Secretary to
use, sell, grant, dispose, lease or provide rights-of-way across Federal
public domain lands located within the All American Canal Service
Area shall include the following conditions: (1) those lands within
the boundary of the Imperial Irrigation District as of July 1,1988, as
shown in Imperial Irrigation District Drawing 7534, excluding Fed-
eral lands without a Mstoiy of irrigation or other water using
purposes; (2) those lands within the Imperial Irrigation District
Service Area as shown on General Map of Imperial Irrigation
District dated January 1988 (Imperial Irrigation District No. 27F
0189) with a history of irrigation or other water using purposes; and
(3) those lands within the Coachella Valley Water District's
Improvement District No. 1 shall have a priority for irrigation^ or
other water using purposes over the lands benefiting from the action
of the Secretary: Pmvided, That rights to use water on lands having
such priority may be transferred for use on lands having a lower
priority if such transfer does not deprive other lands with the higher
priority of Colorado River water that can be put to reasonable and
beneficial use.
SEC. 2©7. WATER CONSER¥AYION STUDY.
 (a)	preparation and transmhtal.—Any agreement entered into
pursuant to section 203 between the Secretary and The Metropoli-
tan 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 Dis-
trict'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.