Annual Interest Rate Certification
Fiscal Year 2012
In February of 1997, the Fiscal Assistant Secretary of the U.S. Department of the Treasury delegated to the Bureau of the Public Debt (now the Bureau of the Fiscal Service) the responsibility of providing interest rate certification to various agencies.
The following table contains rates certified by the U.S. Department of the Treasury for various statutory purposes.
- Table 1 - Range of Maturities
- Table 2 - Public Health Service Act
- Table 3 - Small Reclamation Project Act
- Table 4 - US Army Corps of Engineers
- Table 5 - Bureau of Reclamation
- Table 6 - Mid-Dakota Rural Water System Act
- Table 7 - Merchant Marine Act
- Table 8a - Other Specific Legislation - Calendar Year
- Table 8b - Other Specific Legislation - Fiscal Year
- Table 9 - Power Marketing Administration
|From and Including||Up To But Not Including||Rate|
|0 years - 3 months||1 year - 11 months||1/8%|
|1 year - 11 months||2 years - 11 months||1/4%|
|2 years - 11 months||3 years - 5 months||3/8%|
|3 years - 5 months||3 years - 10 months||1/2%|
|3 years - 10 months||4 years - 3 months||5/8%|
|4 years - 3 months||4 years - 8 months||3/4%|
|4 years - 8 months||5 years - 1 month||7/8%|
|5 years - 1 month||5 years - 7 months||1%|
|5 years - 7 months||6 years - 0 months||1-1/8%|
|6 years - 0 months||6 years - 5 months||1-1/4%|
|6 years - 5 months||6 years - 11 months||1-3/8%|
|6 years - 11 months||7 years - 5 months||1-1/2%|
|7 years - 5 months||7 years - 11 months||1-5/8%|
|7 years - 11 months||8 years - 6 months||1-3/4%|
|8 years - 6 months||9 years - 2 months||1-7/8%|
|9 years - 2 months||9 years - 10 months||2%|
|9 years - 10 months||10 years - 9 months||2-1/8%|
|10 years - 9 months||11 years - 8 months||2-1/4%|
|11 years - 8 months||12 years - 9 months||2-3/8%|
|12 years - 9 months||14 years - 0 months||2-1/2%|
|14 years - 0 months||15 years - 5 months||2-5/8%|
|15 years - 5 months||17 years - 0 months||2-3/4%|
|17 years - 0 months||18 years - 11 months||2-7/8%|
|18 years - 11 months||21 years - 3 months||3%|
|21 years - 3 months||23 years - 11 months||3-1/8%|
|23 years - 11 months||26 years - 11 months||3-1/4%|
|26 years - 11 months||30 years - 1 day||3-3/8%|
Table 2 - Public Health Service Act
(Updated October 3, 2011)
The Public Health Service Act, as amended by Public Law 89-751, approved November 3, 1966, created by Section 744(d)(1) a health professions education revolving fund, and Section 827(d)(1) created a nurse training revolving fund. Also, the Public Health Service Act, as amended by Public Law 91-519, approved November 2, 1970, created by Section 794(f)(4)(A) an allied profession training fund as a revolving fund.
The interest rates reflected on Table 1 - Range of Maturities schedule are hereby certified for the maturities shown and are based on average market yields for the month of September 2011. These rates are for use in applying the interest rate corresponding to the average maturity of loans made, which is to be used in determining the amount to be paid into miscellaneous receipts of the U.S. Treasury covering the fiscal year 2012.
Table 3 - Small Reclamation Project Act
(Updated October 6, 2011)
Public Law 89-553, Section 5(c), approved September 2, 1966; to amend the Small Reclamation Project Act:
- The previous single rate methodology for "grandfathered" projects (Public Law 84-984, Section 5(c)(2)), with the rate of 5-3/4%.
- A schedule of maturity dates and yields for functions other than flood control (Public Law 99-546, Section 307). Table 1 - Range of Maturities schedule shows average market yields on Treasury securities for the month of September at various intervals.
- A schedule of maturity dates and yields for flood control the same as those supplied the Corps of Engineers (Public Law 99-546, Section 306 and Public Law 99-662, Sections 103 and 106). Table 1 - Range of Maturities shows average market yield on Treasury securities for the month of September at various intervals.
|The Water Supply Act of 1958 section 301(b)||5.769%||2012|
|The interest rate based on average market yields during the preceding fiscal year on interest-bearing Treasury marketable securities that have 15 years or more remaining to maturity. This rate is used for the Water Resources Council Rules and Regulations (33 F.R. 19170) section 704.39(a). The published rate does not include any adjustment that may be needed to show the maximum rate change of 1/4 of one percent per year.||4%||2012|
The interest rate determined in accordance with the formula set forth in Department of Energy Order No. RA 6120.2 during fiscal year 2011 is 3.9560% which, adjusted to the nearest 1/8th of 1%, is 4%
|18 CFR 704.39 as required by Section 80(a), Public Law 93-251 (88 Stat.34), Section 704.39(a) of the Water Resources Council's Rule and Regulations (interest rate to be used for plan formation and evaluation); the unconstrained yield used for power repayment is 3.9560%. This rate does not include any adjustment that may be needed to show the maximum rate change of 1/4 of one percent per year.||4%|
|Section 301(b) of the Water Supply Act of 1958, Public Law 85-500, approved July 3, 1958, and Section 9 of Public Law 86-529, approved June 27, 1960, which amended Section 5(f) of Public Law 485, approved April 11, 1965, relating to the Colorado River Storage Project and participating projects (70 Stat. 109).||5.769%|
|Section 202(3)(c) and Section 205(a)(3) of the Reclamation Reform Act of 1982 (Public Law 97-293, Title II).||3.162%|
|Public Law 98-569, (99 Stat. 2938), Section 205(4)(iv), approved October 30, 1984. Colorado River Basin Salinity Control Act.||3-3/8%|
|Section 104(a)(5) of the Hoover Dam Power of 1984 (43 U.S.C. 619).||3.4035%|
|Public Law 99-546 requires a separate rate for the Central Valley Project (Public Law 99-546, Section 106).||3-3/8%|
|Public Law 95-578, The Reclamation Safety of Dams Act of 1978, and Public Law 98-404, The Reclamation of Dams Act Amendments of 1984.||3-3/8%|
|The Merchant Marine Act of 1936 - Section 607(h)(4)(B), as amended (46 U.S.C. 1177), requires the determination of an applicable rate of interest on nonqualified withdrawals from a Capital Construction Fund.||2011 calendar year rate: 1.65%|
|Calendar Year 2012|
|Civil Service Retirement||2-1/4%|
|Fiscal Year 2012|
|Commodity Credit Corporation Charter Act of 1948 (15 U.S.C. 714(e))- Capital Stock Interest||2-3/8%|
|Deficit Reduction Act of 1984 - Section 995(f)||0.22%|
|Department of Veteran's Affairs Medical Care Cost Recovery||2-1/4%|
|Foreign Service Retirement Fund - Executive Order 12446, dated 10/17/83||2-1/2%|
|Higher Education Facilities Act of 1963 - Section 303, Subsection (b)||2-7/8%|
|Higher Education Act of 1965 - Title VII, Section 744(a)(b)(2)||3%|
|Housing and Community Act of 1987 - Section 185(B)||2-7/8%|
|Panama Canal Commission||5.838%|
|Small Business Administration||2-7/8%|
|Tennessee Valley Authority Act of 1933 - Section 15d(e)||2.3259%|
|Watershed Protection & Flood Prevention Act - Public Law 1018, Section 8||5-3/4%|
Table 9 - Power Marketing Administration
(Updated October 6, 2011)
The Department of Energy Order No. RA6120.2 paragraph 11 (b) reads as follows:
"For purposes of this paragraph, the yield rate is the average yield during the preceding fiscal year on interest-bearing Treasury marketable securities of the United States which, at the time the computation is made, have terms of 15 years or more remaining to maturity. The average yield shall be computed as the average during the fiscal year of the daily bid prices. Where the average, so computed, is not a multiple of one-eighth of one percent, the yield rate shall be the multiple of one-eighth of one percent nearest to such average yield."
The interest rate determined for fiscal year 2012 in accordance with the above-quoted formula is 3.9560% which adjusted to the nearest 1/8 of 1% is 4%.
Section 9 of Public Law 86-529 specifies that the interest rate for the Colorado River Storage Project and its participating projects "shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction is initiated, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations, which are neither due nor callable for redemption for fifteen years from the date of issue."
The interest rate determined in accordance with the above-quoted formula is 5.769%.