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TITLE 30ENVIRONMENTAL QUALITY
PART 1TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
CHAPTER 37FINANCIAL ASSURANCE
SUBCHAPTER BFINANCIAL ASSURANCE REQUIREMENTS FOR CLOSURE, POST CLOSURE, AND CORRECTIVE ACTION
RULE §37.131Annual Inflation Adjustments to Closure Cost Estimates

During the active life of the facility, the owner or operator must adjust the current cost estimate for inflation within 60 days prior to the anniversary date of the first establishment of the financial assurance mechanism. For owners or operators using the financial test or corporate guarantee, the current cost estimate must be adjusted for inflation within 30 days after the close of the firm's fiscal year and before submission of updated information to the executive director as specified in this chapter. The adjustment must be made using an inflation factor derived from the most recent annual Implicit Price Deflator for Gross National Product published by the United States Department of Commerce in its Survey of Current Business, as specified in paragraphs (1) and (2) of this section. The inflation factor is the result of dividing the latest published annual Deflator by the Deflator for the previous year.

  (1) The first adjustment is made by multiplying the current cost estimate by the inflation factor. The result is the adjusted current cost estimate.

  (2) Subsequent adjustments are made by multiplying the latest adjusted cost estimate by the latest inflation factor.

  (3) If there is a revised current cost estimate in current dollars approved by the executive director prior to the anniversary date described in this section, then the owner or operator is not required to make an inflation adjustment. However, a revised current cost estimate in current dollars shall be adjusted for inflation for subsequent years as required by this section.


Source Note: The provisions of this §37.131 adopted to be effective December 30, 1996, 21 TexReg 12297; amended to be effective March 21, 2000, 25 TexReg 2347; amended to be effective February 13, 2003, 28 TexReg 1196

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