94-31867. Change in Discount Rate for Water Resources Planning

[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31867]


[Federal Register: December 28, 1994]


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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 requires an annual determination of a 
discount rate for Federal water resources planning. The discount rate 
for Federal water resources planning for fiscal year 1995 is 7.75 
percent. Discounting is to be used to convert future monetary values to 
present values.

DATE: This discount rate is to be used for the period October 1, 1994, 
through and including September 30, 1995.

FOR FURTHER INFORMATION CONTACT:
Mr. Larry Schluntz, Economist, Reclamation Law, Contracts, and 
Repayment, U.S. Bureau of Reclamation, Attention: D-5200, Building 67, 
Denver Federal Center, Denver, CO 80225-0007; telephone: (303) 236-
1061, extension 236.

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 7.75 percent for 
fiscal year 1995.
    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 yield to be 7.21 percent. 
However, application of the above mentioned limitation to the fiscal 
year 1994 rate of 8.00 percent limits the change in the fiscal year 
1995 rate to 7.75 percent.
    The rate of 7.75 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: December 20, 1994.
Wayne O. Deason,
Assistant Director, Program Analysis.
[FR Doc. 94-31867 Filed 12-27-94; 8:45 am]
BILLING CODE 4310-94-P