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:Financial Assurance Working Group
Florida Department of Environmental Protection
2600 Blair Stone Road  MS 4548
Tallahassee, Florida 32399-2400

 

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).

Current Year Inflation Factors

Inflation Factor	Estimate Due Time Frames
1.07	Estimates due between April 1, 2023 and March 31, 2024
1.036	Estimates due between April 1, 2024 and March 31, 2025

Recent Inflation Factors

New Cost Estimate’s Year	Inflation Factor for Estimates Due Between January 1 and March 31	Inflation Factor for Estimates Due Between April 1 and March 31
2006	1.02	1.03
2007	1.030	1.030
2008	1.030	1.025
2009	1.025	1.020
2010	1.020	1.010
2011	1.010	1.010
2012	1.010	1.020
2013	1.020	1.017
2014	1.017	1.015
2015	1.015	1.014
2016	1.014	1.009
2017	1.009	1.013
2018	1.013	1.018
2019	1.018	1.022
2020	1.022	1.017
2021	1.017	1.012
2022	1.012	1.041
2023	1.041	1.07
2024	1.07	1.036