Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices 1563 

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 http://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 

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 CostEffectiveness, 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 http:// 

www.whitehouse.gov/omb/circulars/ 

a094/a94_appx-c.html, the text of the 

main body of the Circular is found at 

http://www.whitehouse.gov/omb/ 

circulars/a094/a094.html, and a table of 

past years’ rates is located at http:// 

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 


rmajette on PROD1PC67 with NOTICES
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 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Notice of interest rates and 

assumptions. 

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 (http://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 

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, http://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 ...................... 4.80 

March 2006 ........................... 4.87 

April 2006 ............................. 5.01 

May 2006 .............................. 5.25 

June 2006 ............................. 5.35 

July 2006 .............................. 5.36 

August 2006 ......................... 5.36 

September 2006 ................... 5.19 

October 2006 ........................ 5.06 

November 2006 .................... 5.05 

December 2006 .................... 4.90 

January 2007 ........................ 4.89 

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— Through— Interest rate 

(percent) 

4/1/00 ................ 3/31/01 9 

4/1/01 ................ 6/30/01 8 

7/1/01 ................ 12/31/01 7 

1/1/02 ................ 12/31/02 6 

1/1/03 ................ 9/30/03 5 

10/1/03 .............. 3/31/04 4 

4/1/04 ................ 6/30/04 5 

7/1/04 ................ 9/30/04 4 

10/1/04 .............. 3/31/05 5 

4/1/05 ................ 9/30/05 6 

10/1/05 .............. 6/30/06 7 

7/1/06 ................ 3/31/07 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 


rmajette on PROD1PC67 with NOTICES