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REVISED DRAFT <br />November 15, 2002 <br />water produced to achieve the Program's water objectives through the operation <br />of any of the three Program water projects or through any other Program water <br />conservation/supply projects does not need to be protected from diversion, the <br />necessary water protection permit or permits shall be obtained from the applicable <br />state or states, and that water, minus conveyance losses, shall be protected to and <br />through the associated habitats. Each state shall take whatever steps are necessary <br />to provide institutional protection within that state for waters intended for <br />Program purposes, including without limitation: statutory and regulatory reform; <br />granting of any necessary water rights; and water accounting systems. <br />F. Evaluation of First Increment and Development of Subsequent Increments <br />1. Evaluation of Effectiveness of the First Increment and Review of Goals <br />Objectives. Activities and Criteria. At least three years before the end of the First <br />Increment, the Governance Committee will develop a process and timeframe for <br />evaluating the First Increment. The evaluation process will take into account the <br />need for FWS to carry out independent ESA assessments, for NEPA compliance, <br />and other statutory obligations. These evaluations will include, but are not limited <br />to the following: (1) consideration of information gained through the IMRP and <br />experience; (2) the judgment of habitat managers and field biologists and <br />independent experts; (3) the results of any peer review; and (4) information <br />obtained through the verification process (Attachment _). The purpose of <br />these evaluations is to weigh whether Program goals, objectives, activities, and <br />criteria should be modified or should continue unchanged. The Program <br />evaluations performed by the Governance Committee will be coordinated with the <br />FWS reviews undertaken as part of its statutory obligations under the ESA. [Note: <br />We have referenced the "verification process" that is being drafted by Mark <br />Butler.] <br />2. Definition of Second Increment Components and Term. Before expiration <br />of the First Increment, the Governance Committee will identify goals, objectives, <br />activities and criteria, and milestones or other measures for ESA compliance for a <br />second Program increment. Independent peer review will be used as appropriate <br />pursuant to the Peer Review Guidelines (Attachment —) to review pertinent <br />scientific data relating to the selection or implementation of specialized recovery <br />tasks or the development of technical milestones. If the Governance Committee <br />0 20 <br />