[Code of Federal Regulations]

[Title 15, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR990.63]



[Page 396]

 

                  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).