98-30161. Change in Discount Rate for Water Resources Planning  

  • [Federal Register Volume 63, Number 218 (Thursday, November 12, 1998)]
    [Notices]
    [Pages 63329-63330]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-30161]
    
    
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    DEPARTMENT OF THE INTERIOR
    
    Bureau of Reclamation
    
    
    Change in Discount Rate for Water Resources Planning
    
    AGENCY: Bureau of Reclamation, Interior.
    
    ACTION: Notice of change.
    
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    SUMMARY: The Water Resources Planning Act of 1965 and the Water 
    Resources Development Act of 1974
    
    [[Page 63330]]
    
    require an annual determination of a discount rate for Federal water 
    resources planning. The discount rate for Federal water resources 
    planning for fiscal year 1999 is 6.875 percent. Discounting is to be 
    used to convert future monetary values to present values.
    
    DATES: This discount rate is to be used for the period October 1, 1998, 
    through and including September 30, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Larry Schluntz, Economist, 
    Reclamation Law, Contracts, and Repayment Office, Bureau of 
    Reclamation, Attention: D-5200, Building 67, Denver Federal Center, 
    Denver, CO 80225-0007; telephone: (303) 445-2901.
    
    SUPPLEMENTARY INFORMATION: Notice is hereby given that the interest 
    rate to be used by Federal agencies in the formulation and evaluation 
    of plans for water and related land resources is 6.875 percent for 
    fiscal year 1999.
        This rate has been computed in accordance with Section 80(a), Pub. 
    L. 93-251 (88 Stat. 34) and 18 CFR 704.39, which: (1) Specify that the 
    rate shall be based upon the average yield during the preceding fiscal 
    year on interest-bearing marketable securities of the United States 
    which, at the time the computation is made, have terms of 15 years or 
    more remaining to maturity (average yield is rounded to nearest one-
    eighth percent); and (2) provide that the rate shall not be raised or 
    lowered more than one-quarter of 1 percent for any year. The Treasury 
    Department calculated the specified average to be 6.02 percent. 
    Rounding this average yield to the nearest one-eighth percent is 6.000 
    percent, which exceeds the permissible one-quarter of 1 percent change 
    from fiscal year 1998 to 1999. Therefore, the change is limited to one-
    quarter of 1 percent.
        The rate of 6.875 percent shall be used by all Federal agencies in 
    the formulation and evaluation of water and related land resources 
    plans for the purpose of discounting future benefits and computing 
    costs or otherwise converting benefits and costs to a common time 
    basis.
    
        Dated: October 29, 1998.
    Maryanne C. Bach,
    Assistant Director, Program Analysis Office.
    [FR Doc. 98-30161 Filed 11-10-98; 8:45 am]
    BILLING CODE 4310-94-P
    
    
    

Document Information

Published:
11/12/1998
Department:
Reclamation Bureau
Entry Type:
Notice
Action:
Notice of change.
Document Number:
98-30161
Dates:
This discount rate is to be used for the period October 1, 1998, through and including September 30, 1999.
Pages:
63329-63330 (2 pages)
PDF File:
98-30161.pdf