Change in Discount Rate for Water Resources Planning

Federal Register: February 23, 2010 (Volume 75, Number 35)

Notices

Page 8106

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr23fe10-106

DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

Change in Discount Rate for Water Resources Planning

AGENCY: Bureau of Reclamation, Interior.

ACTION: Notice of change.

SUMMARY: The Water Resources Planning Act of 1965 and the Water

Resources Development Act of 1974 require an annual determination of a discount rate for Federal water resources planning. The discount rate for Federal water resources planning for fiscal year 2010 is 4.375 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, 2009 through and including September 30, 2010.

FOR FURTHER INFORMATION CONTACT: Brooke Miller-Levy, Water and

Environmental Resources Office, Denver, Colorado 80225; telephone: 303- 445-2889.

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 4.375 percent for fiscal year 2010.

This rate has been computed in accordance with Section 80(a),

Public Law 93-251 (88 Stat. 34) and 18 CFR 704.39, which: (1) Specify that the rate will 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 will not be raised or lowered more than one-quarter of 1 percent for any year. The

Treasury Department calculated the specified average to be 3.9910 percent. This average value is then rounded to the nearest one-eighth of a point, resulting in 4.0 percent. This exceeds the permissible one- quarter of 1 percent change from fiscal year 2009 to 2010. Therefore, the change is limited to a one-quarter percent decrease.

The rate of 4.375 percent will 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: February 9, 2010.

Roseann Gonzales,

Director, Policy and Administration, Denver Office.

FR Doc. 2010-3137 Filed 2-22-10; 8:45 am

BILLING CODE 4310-MN-P