Hazardous Waste Cost Estimates

Owners or operators of hazardous waste facilities requiring closure, postclosure and corrective action financial assurance shall annually adjust their facility cost estimates for inflation and submit updated information to the department. Permittees must follow Rule 62-730.180 and Rule 62-730.226, Florida Administrative Code (F.A.C.).

Guidance

• Annual cost estimate adjustments may be made either by recalculating the maximum cost of closure in current dollars or by using the current year inflation factor.
• Annual inflation adjusted cost estimates are due 60 days prior to the anniversary date of the financial assurance mechanism. The cost estimate due date can be found on the "Facility List."
• The increase in the amount of the financial assurance mechanism is due 60 days after the timely submittal of a cost estimate. When a cost estimate goes down, prior authorization from this office is usually required. (Estimate approval is sufficient only for financial test users.) Authorization will be addressed to the issuing institution for bonds, letters of credit and insurance policies and will specify the financial instrument to be changed.

By e-mail: Financial.Assurance.Working.Group@FloridaDEP.gov
 

or by mail:

Calculation of the Inflation Factor

• The annual inflation factor is derived from the most recent Implicit Price Deflator for Gross National Product published by the U.S. Department of Commerce in its Survey of Current Business, pursuant to 40 CFR Part 264.142(b).
• To calculate the current inflation factor, divide the latest published annual Deflator by the Deflator for the previous year.
• Implicit Price Deflator data is published by the U.S. Department of Commerce, Bureau of Economic Analysis on its website, http://www.bea.gov.
• The data necessary to calculate the inflation factor is released by the U.S. Department of Commerce in late March. Therefore, it is appropriate to use the previous year's factor when inflation adjusting cost estimates due between Jan. 1 and March 31.
• To prevent confusion, we recommend (and allow) the use of the inflation factor we calculate when annual deflators are first published for a 'new year' around April 1st. As deflators (including previous year’s deflators) are revised several times each year, occasionally the inflation factor we publish in April is slightly different from what would be calculated later. We now round up only when the 4th decimal is 9.
• The annual deflators used to calculate the latest inflation factor are dated April 1, 2024, and are 122.179 (for 2023) and 117.885 (for 2022).