Markets for Federal Water: Subsidies, Property Rights, and the Bureau of Reclamation

By Richard W. Wahl | Go to book overview

There was some question as to whether the pooling of contractor deficits would allow the bureau to use a consistent set of calculations for its water rates and for the determination of "full cost" charges under the Reclamation Reform Act.12 As noted above, the definition of "full cost" appears to imply that district-by-district accounting should be used in the calculations. In addition, the definition of "full cost" in the act requires the bureau to include any operation and maintenance deficits funded, which normally occur on a district-by- district basis. Therefore, the bureau rejected the modified postage stamp approach and recommended instead a "component" rate-setting option with the pooling of net payment positions. This would still have been advantageous to contractors with low current rates (relative to the "cost of service") and later expiration dates. The bureau was preparing to publish this proposal for a final round of public comments prior to adoption when Congress intervened. Public Law 99-546 (100 Stat. 3050; 43 U.S.C. 422a), enacted in October 1986, requires that each new or amended contract in the Central Valley Project include provisions to recover "any annual deficit (outstanding or hereafter arising)" incurred by a CVP water contractor from that contractor. Furthermore, interest is to be charged on any such deficit that arises after October 1, 1985. The interest rate is set to reflect government borrowing rates rather than the project authorized interest rates. These interest charges are not payable until after a district's current contract expires or is amended. The Bureau of Reclamation determined that, provided the provisions of the law are not altered or successfully challenged before being implemented, P.L. 99-546 rules out the pooling of individual contractor deficits. Accordingly, in May 1987, the bureau issued for public review a rate-setting proposal with individual contractor deficits, patterned after its 1984 proposal. This rate-setting policy was ultimately adopted in May 1988.


Conclusions: The Consequences of Public Versus Private Development

The federal government's role in the Central Valley Project is something of a historical accident: the project was converted from a state project to a federal one as the result of the depression. The Bureau of Reclamation established low water rates with no cost adjustments partly to ensure that the water supplies it had developed could be

____________________
12
For the definition of "full cost" charges under the Reclamation Reform Act and illustrative values, see chapter 4.

-64-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Markets for Federal Water: Subsidies, Property Rights, and the Bureau of Reclamation
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 312

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.