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Title 15 Part 990 → Subpart F → §990.63

Title 15 → Subtitle B → Chapter IX → Subchapter E → Part 990 → Subpart F → §990.63

Electronic Code of Federal Regulations e-CFR

Title 15 Part 990 → Subpart F → §990.63

e-CFR data is current as of January 24, 2020

Title 15Subtitle BChapter IXSubchapter EPart 990Subpart F → §990.63


Title 15: Commerce and Foreign Trade
PART 990—NATURAL RESOURCE DAMAGE ASSESSMENTS
Subpart F—Restoration Implementation Phase


§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).