[Federal Register: November 12, 1998 (Volume 63, Number 218)]
[Notices]               
[Page 63329-63330]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12no98-93]

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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