[Federal Register Volume 67, Number 10 (Tuesday, January 15, 2002)]
[Notices]
[Pages 1989-1990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-925]


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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 require an annual determination of a 
discount rate for Federal water resources planning. The discount rate 
for Federal water resources planning for fiscal year 2002 is 6.125 
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, 2001, 
through and including September 30, 2002.

FOR FURTHER INFORMATION CONTACT: James Handlon, Economist, Office of 
Policy, Washington, DC 20240; telephone: (202) 513-0603.

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 6.125 percent for 
fiscal year 2002.
    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 5.654 percent. 
Rounding this average yield to the nearest one-eighth percent is 5.625 
percent, which exceeds the permissible one-quarter of 1 percent change 
from fiscal year 2001 to 2002. Therefore, the change is limited to one-
quarter of 1 percent.
    The rate of 6.125 percent shall be used by all Federal agencies in 
the formulation and evaluation of water and

[[Page 1990]]

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 13, 2001.
Elizabeth Cordova-Harrison,
Deputy Director, Office of Policy.
[FR Doc. 02-925 Filed 1-15-02; 8:45 am]
BILLING CODE 4310-MN-P