NB_200_23_2 - NB 200-23-2 ECN - Discount Rate for Fiscal Year 2023 Water Resources Planning and Evaluation
NB 200-23-2 ECN - Discount Rate for Fiscal Year 2023 Water Resources Planning and Evaluation
National Bulletin: 200-23-2 Date: November 1, 2022
Subject: ECN - Discount Rate for Fiscal Year 2023 Water Resources Planning and Evaluation



 
Purpose.  This national bulletin announces the water resources discount rate for fiscal year (FY) 2023.
 
Expiration Date.  October 1, 2023
 
Background.  The national water resources discount rate is released each fiscal year based on the U.S. Treasury security interest rate for the preceding fiscal year. In accordance with the 1974 Water Resources Development Act, changes to the previous fiscal year’s discount rate are limited to a maximum of 0.25 percent (see http://edocket.access.gpo.gov/cfr_2003/aprqtr/pdf/18cfr704.39.pdf). Discounting should be used to convert future monetary benefits and costs to a common time basis.
 
Explanation.  The national water resources discount rate for FY 2023 is 2.50 percent. The U.S. Treasury security interest rate for the preceding fiscal year on interest-bearing marketable securities with 15 years or more remaining to maturity was 2.75 percent (see https://www.treasurydirect.gov/government/interest-rates-and-prices/certified-interest-rates/annual/fiscal-year-2023/#table4).

Any project that relies on Public Law 83-566 authority for implementation in FY 2023 should use the national water resources discount rate of 2.50 percent. Other NRCS activity will typically use the nominal interest rate for 10-year Treasury notes from OMB Circular A-94 Appendix C. The nominal interest rate is expected to update early in calendar year 2023 and will release at: https://www.whitehouse.gov/omb/information-for-agencies/circulars/.
 
Contact.  For further information, contact Julie Suhr Pierce, Ph.D., National Economist, at 202-440-3036.
 
 

 /s/

NOLLER HERBERT
Deputy Chief for Science and Technology

 
 
 
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