Discount Rates for Cost-Effectiveness Analysis of Federal Programs, 1563-1564 [E7-308]
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1563
Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices
and regulations. In accordance with 10
CFR 54.29, the NRC may issue a
renewed license on the basis of its
review if it finds that actions have been
identified and have been or will be
taken with respect to: (1) Managing the
effects of aging during the period of
extended operation on the functionality
of structures and components that have
been identified as requiring aging
management review; and (2) timelimited aging analyses that have been
identified as requiring review, such that
there is reasonable assurance that the
activities authorized by the renewed
license will continue to be conducted in
accordance with the current licensing
basis (CLB), and that any changes made
to the plant’s CLB will comply with the
Act and the Commission’s regulations.
In addition, the Commission must find
that applicable requirements of Subpart
A of 10 CFR Part 51 have been satisfied,
and that matters raised under 10 CFR
2.335 have been addressed.
Notice of Opportunity for Hearing and
Notices relating to the environmental
review will be published at a later date.
In accordance with 10 CFR 51.53(c)
and 10 CFR 54.23, Carolina Power &
Light Company prepared and submitted
the environmental report (ER) as part of
the LRA. The LRA and the ER are
publicly available at the NRC’s PDR,
located at One White Flint North, 11555
Rockville Pike, Rockville, Maryland
20852, or from ADAMS. The ADAMS
accession numbers for the LRA and the
ER are ML063350270 and
ML063350276, respectively. The public
may also view the LRA and the ER on
the Internet at https://www.nrc.gov/
reactors/operating/licensing/renewal/
applications.html. In addition, the LRA
and the ER are available to the public
near HNP, Unit 1, at the Eva. H. Perry
Library, 2100 Shepherd’s Vineyard
Drive, Apex, North Carolina 27502.
Dated at Rockville, Maryland, this 8th day
of January, 2007.
For the Nuclear Regulatory Commission.
Pao-Tsin Kuo,
Acting Director, Division of License Renewal,
Office of Nuclear Reactor Regulation.
[FR Doc. E7–324 Filed 1–11–07; 8:45 am]
BILLING CODE 7590–01–P
FOR FURTHER INFORMATION CONTACT:
Robert B. Anderson, Office of Economic
Policy, Office of Management and
Budget, (202) 395–3381.
James D. Foster,
Associate Director for Economic Policy, Office
of Management and Budget.
Appendix C—Discount Rates for CostEffectiveness, Lease Purchase, and
Related Analyses (OMB Circular No. A–
94)
Revised December 2006.
OFFICE OF MANAGEMENT AND
BUDGET
Discount Rates for Cost-Effectiveness
Analysis of Federal Programs
Office of Management and
Budget.
ACTION: Revisions to Appendix C of
OMB Circular A–94.
AGENCY:
SUMMARY: The Office of Management
and Budget revised Circular A–94 in
1992. The revised Circular specified
certain discount rates to be updated
annually when the interest rate and
inflation assumptions used to prepare
the budget of the United States
Government were changed. These
discount rates are found in Appendix C
of the revised Circular. The updated
discount rates are shown below. The
discount rates in Appendix C are to be
used for cost-effectiveness analysis,
including lease-purchase analysis, as
specified in the revised Circular. They
do not apply to regulatory analysis.
DATES: The revised discount rates are
effective immediately and will be in
effect through December 2007.
Effective Dates. This appendix is
updated annually around the time of the
President’s budget submission to
Congress. This version of the appendix
is valid for calendar year 2007. A copy
of the updated appendix can be
obtained in electronic form through the
OMB home page at https://
www.whitehouse.gov/omb/circulars/
a094/a94_appx-c.html, the text of the
main body of the Circular is found at
https://www.whitehouse.gov/omb/
circulars/a094/a094.html, and a table of
past years’ rates is located at https://
www.whitehouse.gov/omb/circulars/
a094/DISCHIST–2007.pdf. Updates of
the appendix are also available upon
request from OMB’s Office of Economic
Policy (202–395–3381).
Nominal Discount Rates. A forecast of
nominal or market interest rates for
2007 based on the economic
assumptions for the 2008 Budget are
presented below. These nominal rates
are to be used for discounting nominal
flows, which are often encountered in
lease-purchase analysis.
NOMINAL INTEREST RATES ON TREASURY NOTES AND BONDS OF SPECIFIED MATURITIES
[In percent]
3-Year
5-Year
7-Year
10-Year
20-Year
30-Year
4.9
4.9
4.9
5.0
5.1
5.1
Real Discount Rates. A forecast of real
interest rates from which the inflation
premium has been removed and based
on the economic assumptions from the
2008 Budget is presented below. These
real rates are to be used for discounting
constant-dollar flows, as is often
required in cost-effectiveness analysis.
REAL INTEREST RATES ON TREASURY NOTES AND BONDS OF SPECIFIED MATURITIES
[In percent]
5-Year
7-Year
10-Year
20-Year
30-Year
2.5
rmajette on PROD1PC67 with NOTICES
3-Year
2.6
2.7
2.8
3.0
3.0
Analyses of programs with terms
different from those presented above
may use a linear interpolation. For
VerDate Aug<31>2005
15:41 Jan 11, 2007
Jkt 211001
example, a four-year project can be
evaluated with a rate equal to the
average of the three-year and five-year
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Fmt 4703
Sfmt 4703
rates. Programs with durations longer
E:\FR\FM\12JAN1.SGM
12JAN1
1564
Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices
than 30 years may use the 30-year
interest rate.
[FR Doc. E7–308 Filed 1–11–07; 8:45 am]
BILLING CODE 3110–01–P
PENSION BENEFIT GUARANTY
CORPORATION
Required Interest Rate Assumption for
Determining Variable-Rate Premium for
Single-Employer Plans; Interest on
Late Premium Payments; Interest on
Underpayments and Overpayments of
Single-Employer Plan Termination
Liability and Multiemployer Withdrawal
Liability; Interest Assumptions for
Multiemployer Plan Valuations
Following Mass Withdrawal
Pension Benefit Guaranty
Corporation.
ACTION: Notice of interest rates and
assumptions.
rmajette on PROD1PC67 with NOTICES
AGENCY:
SUMMARY: This notice informs the public
of the interest rates and assumptions to
be used under certain Pension Benefit
Guaranty Corporation regulations. These
rates and assumptions are published
elsewhere (or can be derived from rates
published elsewhere), but are collected
and published in this notice for the
convenience of the public. Interest rates
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: The required interest rate for
determining the variable-rate premium
under part 4006 applies to premium
payment years beginning in January
2007. The interest assumptions for
performing multiemployer plan
valuations following mass withdrawal
under part 4281 apply to valuation dates
occurring in February 2007. The interest
rates for late premium payments under
part 4007 and for underpayments and
overpayments of single-employer plan
termination liability under part 4062
and multiemployer withdrawal liability
under part 4219 apply to interest
accruing during the first quarter
(January through March) of 2007.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory
and Policy Division, Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005, 202–326–
4024. (TTY/TDD users may call the
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION:
Variable-Rate Premiums
Section 4006(a)(3)(E)(iii)(II) of the
Employee Retirement Income Security
VerDate Aug<31>2005
15:41 Jan 11, 2007
Jkt 211001
Act of 1974 (ERISA) and § 4006.4(b)(1)
of the PBGC’s regulation on Premium
Rates (29 CFR part 4006) prescribe use
of an assumed interest rate (the
‘‘required interest rate’’) in determining
a single-employer plan’s variable-rate
premium. Pursuant to the Pension
Protection Act of 2006, for premium
payment years beginning in 2006 or
2007, the required interest rate is the
‘‘applicable percentage’’ (currently 85
percent) of the annual rate of interest
determined by the Secretary of the
Treasury on amounts invested
conservatively in long-term investment
grade corporate bonds for the month
preceding the beginning of the plan year
for which premiums are being paid (the
‘‘premium payment year’’). Thus, the
required interest rate to be used in
determining variable-rate premiums for
premium payment years beginning in
January 2007 is 4.89 percent (i.e., 85
percent of the 5.75 percent composite
corporate bond rate for December 2006
as determined by the Treasury).
On December 2, 2005, the Internal
Revenue Service published proposed
regulations containing updated
mortality tables for determining current
liability under section 412(l)(7) of the
Code and section 302(d)(7) of ERISA for
plan years beginning on or after January
1, 2007, https://www.irs.gov/pub/irs-regs/
12498805.pdf. If these regulations are
finalized and effective for plan years
beginning on or after January 1, 2007,
the required interest rate to be used in
determining variable-rate premiums
would be 100 percent (instead of 85
percent) of the composite corporate
bond rate. If the required interest rate
for premium payment years beginning
in January 2007 changes, the PBGC will
promptly publish a Federal Register
notice with the new rate.
The following table lists the required
interest rates to be used in determining
variable-rate premiums for premium
payment years beginning between
February 2006 and January 2007.
For premium
payment years beginning in:
The required
interest rate is:
February 2006 ......................
March 2006 ...........................
April 2006 .............................
May 2006 ..............................
June 2006 .............................
July 2006 ..............................
August 2006 .........................
September 2006 ...................
October 2006 ........................
November 2006 ....................
December 2006 ....................
January 2007 ........................
4.80
4.87
5.01
5.25
5.35
5.36
5.36
5.19
5.06
5.05
4.90
4.89
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
Late Premium Payments;
Underpayments and Overpayments of
Single-Employer Plan Termination
Liability
Section 4007(b) of ERISA and
§ 4007.7(a) of the PBGC’s regulation on
Payment of Premiums (29 CFR part
4007) require the payment of interest on
late premium payments at the rate
established under section 6601 of the
Internal Revenue Code. Similarly,
§ 4062.7 of the PBGC’s regulation on
Liability for Termination of SingleEmployer Plans (29 CFR part 4062)
requires that interest be charged or
credited at the section 6601 rate on
underpayments and overpayments of
employer liability under section 4062 of
ERISA. The section 6601 rate is
established periodically (currently
quarterly) by the Internal Revenue
Service. The rate applicable to the first
quarter (January through March) of
2007, as announced by the IRS, is 8
percent.
The following table lists the late
payment interest rates for premiums and
employer liability for the specified time
periods:
From—
4/1/00 ................
4/1/01 ................
7/1/01 ................
1/1/02 ................
1/1/03 ................
10/1/03 ..............
4/1/04 ................
7/1/04 ................
10/1/04 ..............
4/1/05 ................
10/1/05 ..............
7/1/06 ................
Through—
Interest rate
(percent)
3/31/01
6/30/01
12/31/01
12/31/02
9/30/03
3/31/04
6/30/04
9/30/04
3/31/05
9/30/05
6/30/06
3/31/07
9
8
7
6
5
4
5
4
5
6
7
8
Underpayments and Overpayments of
Multiemployer Withdrawal Liability
Section 4219.32(b) of the PBGC’s
regulation on Notice, Collection, and
Redetermination of Withdrawal
Liability (29 CFR part 4219) specifies
the rate at which a multiemployer plan
is to charge or credit interest on
underpayments and overpayments of
withdrawal liability under section 4219
of ERISA unless an applicable plan
provision provides otherwise. For
interest accruing during any calendar
quarter, the specified rate is the average
quoted prime rate on short-term
commercial loans for the fifteenth day
(or the next business day if the fifteenth
day is not a business day) of the month
preceding the beginning of the quarter,
as reported by the Board of Governors
of the Federal Reserve System in
Statistical Release H.15 (‘‘Selected
Interest Rates’’). The rate for the first
E:\FR\FM\12JAN1.SGM
12JAN1
]]>Agencies
[Federal Register Volume 72, Number 8 (Friday, January 12, 2007)]
[Notices]
[Pages 1563-1564]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-308]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF MANAGEMENT AND BUDGET
Discount Rates for Cost-Effectiveness Analysis of Federal
Programs
AGENCY: Office of Management and Budget.
ACTION: Revisions to Appendix C of OMB Circular A-94.
-----------------------------------------------------------------------
SUMMARY: The Office of Management and Budget revised Circular A-94 in
1992. The revised Circular specified certain discount rates to be
updated annually when the interest rate and inflation assumptions used
to prepare the budget of the United States Government were changed.
These discount rates are found in Appendix C of the revised Circular.
The updated discount rates are shown below. The discount rates in
Appendix C are to be used for cost-effectiveness analysis, including
lease-purchase analysis, as specified in the revised Circular. They do
not apply to regulatory analysis.
DATES: The revised discount rates are effective immediately and will be
in effect through December 2007.
FOR FURTHER INFORMATION CONTACT: Robert B. Anderson, Office of Economic
Policy, Office of Management and Budget, (202) 395-3381.
James D. Foster,
Associate Director for Economic Policy, Office of Management and
Budget.
Appendix C--Discount Rates for Cost-Effectiveness, Lease Purchase, and
Related Analyses (OMB Circular No. A-94)
Revised December 2006.
Effective Dates. This appendix is updated annually around the time
of the President's budget submission to Congress. This version of the
appendix is valid for calendar year 2007. A copy of the updated
appendix can be obtained in electronic form through the OMB home page
at https://www.whitehouse.gov/omb/circulars/a094/a94_
appx-c.html, the text of the main body of the Circular is found
at https://www.whitehouse.gov/omb/circulars/a094/
a094.html, and a table of past years' rates is located at https://
www.whitehouse.gov/omb/circulars/a094/DISCHIST-2007.pdf. Updates
of the appendix are also available upon request from OMB's Office of
Economic Policy (202-395-3381).
Nominal Discount Rates. A forecast of nominal or market interest
rates for 2007 based on the economic assumptions for the 2008 Budget
are presented below. These nominal rates are to be used for discounting
nominal flows, which are often encountered in lease-purchase analysis.
Nominal Interest Rates on Treasury Notes and Bonds of Specified Maturities
[In percent]
----------------------------------------------------------------------------------------------------------------
3-Year 5-Year 7-Year 10-Year 20-Year 30-Year
----------------------------------------------------------------------------------------------------------------
4.9 4.9 4.9 5.0 5.1 5.1
----------------------------------------------------------------------------------------------------------------
Real Discount Rates. A forecast of real interest rates from which
the inflation premium has been removed and based on the economic
assumptions from the 2008 Budget is presented below. These real rates
are to be used for discounting constant-dollar flows, as is often
required in cost-effectiveness analysis.
Real Interest Rates on Treasury Notes and Bonds of Specified Maturities
[In percent]
----------------------------------------------------------------------------------------------------------------
3-Year 5-Year 7-Year 10-Year 20-Year 30-Year
----------------------------------------------------------------------------------------------------------------
2.5 2.6 2.7 2.8 3.0 3.0
----------------------------------------------------------------------------------------------------------------
Analyses of programs with terms different from those presented
above may use a linear interpolation. For example, a four-year project
can be evaluated with a rate equal to the average of the three-year and
five-year rates. Programs with durations longer
[[Page 1564]]
than 30 years may use the 30-year interest rate.
[FR Doc. E7-308 Filed 1-11-07; 8:45 am]
BILLING CODE 3110-01-P
