---
kind: "section"
citation: "46 C.F.R. § 404.106"
title: "46"
number: "404.106"
heading: "Ratemaking step 6: Calculate initial base rates."
url: "https://uscodex.org/cfr/46/404.106"
---

# §404.106. Ratemaking step 6: Calculate initial base rates.


The Director calculates initial base hourly rates by dividing the projected needed revenue from [§ 404.105](/cfr/46/404.105.md) (step 5) by averages of past hours worked in each district's designated and undesignated waters, using available and reliable data for a multi-year period set in accordance with [§ 401.220(a)](/cfr/46/401.220.md?p=a) of this chapter.


## Notes

### Amendments

[USCG-2025-0252, 91 FR 7148, Feb. 17, 2026]

### Authority

Authority: 46 U.S.C. 2103, 2104(a), 9303, 9304; DHS Delegation No. 00170.1, Revision No. 01.4.

### Source

Source: USCG-2015-0497, 81 FR 11941, Mar. 7, 2016, unless otherwise noted.

### Amendments

[USCG-2025-0252, 91 FR 7148, Feb. 17, 2026]