[Code of Federal Regulations]
[Title 15, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR990.63]

[Page 393]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
CHAPTER IX--NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION, DEPARTMENT 
                               OF COMMERCE
 
PART 990--NATURAL RESOURCE DAMAGE ASSESSMENTS--Table of Contents
 
               Subpart F--Restoration Implementation Phase
 
Sec. 990.63  Discounting and compounding.

    (a) Estimated future restoration costs. When determining estimated 
future costs of implementing a Final Restoration Plan, trustees must 
discount such future costs back to the date the demand is presented. 
Trustees may use a discount rate that represents the yield on recoveries 
available to trustees. The price indices used to project future 
inflation should reflect the major components of the restoration costs.
    (b) Past assessment and emergency restoration costs. When 
calculating the present value of assessment and emergency restoration 
costs already incurred, trustees must compound the costs forward to the 
date the demand is presented. To perform the compounding, trustees may 
use the actual U.S. Treasury borrowing rate on marketable securities of 
comparable maturity to the period of analysis. For costs incurred by 
state or tribal trustees, trustees may compound using parallel state or 
tribal borrowing rates.
    (c) Trustees are referred to Appendices B and C of OMB Circular A-94 
for information about U.S. Treasury rates of various maturities and 
guidance in calculation procedures. Copies of Appendix C, which is 
regularly updated, and of the Circular are available from the OMB 
Publications Office (202-395-7332).