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<br />-4- <br /> <br />TO PUBLISH IN THE FEDERAL REGISTER ON SEPT. 8 rJE~1 <br />CRITERIA FOR EVALUATING PROPOSED WATER AND LAND- <br />. . RELATED P ROJ ECTS . \{RC TENT A TI VEL Y PLANS TO HO LD <br />PUBLIC HEARINGS ON THE PROPOSAL HERE ON NOV. 15-16. <br />SCREAMS FRor~ WATER liEN ARE EXPECTED FROM COAST TO <br />COAST. AT THIS VlRITING THE h;UPOSED NEW CRITERIA <br />ARE: <br /> <br />"THE DISCOUNT OR INTEREST RATE TO BE USED <br />IN EVALUATING PROPOSED HATER AND LAND-RELATED <br />PROJECTS IS.7 PER CENT, TO BE PEGGED AT THAT <br />RATE FOR FIVE YEARS. THE CURRENT RATE, 5 3/8 <br />PER CENT, BECAME EFFECTIVE ON JULY 1 AT THE <br />START OF THE 1972 FISCAL YEAR, PRESEiJTLY THE <br />RATE IS BASED ON THE YIELD RATE OF THE FEDERAL <br />COST OF f.lONEY; IT I S ADJUSTED ANNUALLY. IT WAS <br />5 1/8 PER CENT FOR FISCAL 1971. THE COUNC I L <br />FAVORS FREEZING THE RATE FOR SEVERAL YEARS NO <br />HIGHER THAN 6 PER CENT. BUT OMB INSISTED ON <br />7 PER CENT. THE HIGHER 7 PER CENT DISCOUNT RATE <br />WILL DRAMATICALLY AFFECT ALL WATER PROJECTS IN <br />THE PLANNING STAGE BY KNOCKING OUT THE MOST <br />MARGINAL uNES AND ALSO LARGE PROjECTS WiTH LONG- <br />DEFERRED BENEFITS. THE DISCOUNT RATE HAS BEEN A <br />BOND OF CONTENTI ON FOR YEARS BET\JEEN VlRC AND Of'1B". <br />