[Federal Register Volume 71, Number 246 (Friday, December 22, 2006)]
[Notices]
[Page 77061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-21930]


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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 2007 is 4.875 
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, 2006, 
through and including September 30, 2007.

FOR FURTHER INFORMATION CONTACT: Karl J. Stock, Economist, Contract 
Services Office, Denver, Colorado 80225; telephone: 303-445-2929.

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 4.875 percent for 
fiscal year 2007.
    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 4.9351 percent. This 
average value is then rounded to the nearest one-eighth of a point, 
resulting in 4.875 percent. Since this is within the permissible one-
quarter of 1 percent change from the fiscal year 2006 rate of 5.125 
percent, the rate changes to 4.875. Therefore, the change is limited to 
a one-quarter percent decrease.
    The rate of 4.875 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 23, 2006.
Roseann Gonzales,
Director, Office of Program and Policy Services.
 [FR Doc. E6-21930 Filed 12-21-06; 8:45 am]
BILLING CODE 4310-MN-P