[Code of Federal Regulations]
[Title 18, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR704.39]

[Page 68]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
                   CHAPTER VI--WATER RESOURCES COUNCIL
 
PART 704--PLAN FORMULATION STANDARDS AND PROCEDURES--Table of Contents
 
        Subpart E--Standards for Plan Formulation and Evaluation
 
Sec. 704.39  Discount rate.

    Authority: Sec. 402, 79 Stat. 254; 42 U.S.C. 1962d-1.


    (a) The interest rate to be used in plan formulation and evaluation 
for discounting future benefits and computing costs, or otherwise 
converting benefits and costs to a common time basis, 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: Provided, however, That in no event shall the rate be raised 
or lowered more than one-quarter of 1 percent for any year. The average 
yield shall be computed as the average during the fiscal year of the 
daily bid prices. Where the average rate so computed is not a multiple 
of one-eighth of 1 percent, the rate of interest shall be the multiple 
of one-eighth of 1 percent nearest to such average rate.
    (b) The computation shall be made as of July 1 of each year, and the 
rate thus computed shall be used during the succeeding 12 months. The 
Executive Director shall annually request the Secretary of the Treasury 
to inform the Water Resources Council of the rate thus computed.
    (c) Subject to the provisions of paragraphs (d) and (e) of this 
section, the provisions of paragraphs (a) and (b) of this section shall 
apply to all Federal and federally assisted water and related land 
resources project evaluation reports submitted to the Congress, or 
approved administratively, after the close of the second session of the 
90th Congress.
    (d) Where construction of a project has been authorized prior to the 
close of the second session of the 90th Congress, and the appropriate 
State or local governmental agency or agencies have given prior to 
December 31, 1969, satisfactory assurances to pay the required non-
Federal share of project costs, the discount rate to be used in the 
computation of benefits and costs for such project shall be the rate in 
effect immediately prior to the effective date of this section, and that 
rate shall continue to be used for such project until construction has 
been completed, unless the Congress otherwise decides.
    (e) Notwithstanding the provisions of paragraphs (a) and (b) of this 
section, the discount rate to be used in plan formulation and evaluation 
during the remainder of the fiscal year 1969 shall be 4\5/8\ percent 
except as provided by paragraph (d) of this section.
    (f) Section V. G. 2 of the interagency agreement dated May 15, 1962, 
approved by the President on May 15, 1962, entitled ``Policies, 
Standards, and Procedures in the Formulation, Evaluation, and Review of 
Plans for Use and Development of Water and Related Land Resources,'' and 
published on May 29, 1962, as Senate Document No. 97, 87th Congress, 2d 
Session, is superseded by the provisions of this section.

[33 FR 19170, Dec. 24, 1968]