329 IAC 3.1-14-3 - Cost estimate for closure
Authority: IC 13-14-8; IC 13-22-2-4
Affected: IC 13-22-2
Sec. 3.
(a) The owner
or operator shall keep at the facility a detailed written estimate, in current
dollars, of the cost of closing the facility in accordance with the
requirements in
40 CFR
265.111 through
40 CFR
265.115, applicable closure requirements of
40 CFR
265.178,
40 CFR
265.197,
40 CFR
265.228,
40 CFR
265.258,
40 CFR
265.280,
40 CFR
265.310,
40 CFR
265.351,
40 CFR
265.381,
40 CFR
265.404, and 40 CFR 265.1102, and the
following:
(1) The estimate must equal the
cost of closure at the point in the facility's active life when the extent and
manner of its operation would make closure the most expensive, as indicated by
its closure plan. See
40 CFR
265.112(b).
(2) The closure cost estimate must be based
on the costs to the owner or operator of hiring a third party to close the
facility. A third party is a party who is neither a parent nor a subsidiary of
the owner or operator. See definition of "parent corporation" in section 2(e)
of this rule. The owner or operator may use costs for on-site disposal if the
owner can demonstrate that on-site disposal capacity exists at all times over
the life of the facility.
(3) The
closure cost estimate may not incorporate any salvage value that may be
realized by the sale of hazardous wastes, or nonhazardous waste if applicable
under
40 CFR
265.113(d), facility
structures or equipment, land, or other facility assets at the time of partial
or final closure.
(4) The owner or
operator may not incorporate a zero (0) cost for hazardous waste that might
have economic value.
(b)
During the active life of the facility, the owner or operator shall adjust the
closure cost estimate for inflation within sixty (60) days prior to the
anniversary date of the establishment of the financial instrument used to
comply with section 4 of this rule. For owners and operators using the
financial test or guarantee, the closure cost estimate must be updated for
inflation within thirty (30) days after the close of the firm's fiscal year and
before the submission of updated information to the commissioner as specified
in section 9(c) of this rule. The adjustment may be made by recalculating the
closure cost estimate in current dollars, or by using an inflation factor
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,
specified as follows:
(1) The first adjustment
is made by multiplying the closure cost estimate by the inflation factor. The
result is the adjusted closure cost estimate.
(2) Subsequent adjustments are made by
multiplying the latest adjusted closure cost estimate by the latest inflation
factor.
The inflation factor is the result of dividing the latest published annual deflator by the deflator for the previous year.
(c) During the active
life of the facility, the owner or operator must revise the closure cost
estimate no later than thirty (30) days after a revision has been made to the
closure plan which increases the cost of closure. If the owner or operator has
an approved closure plan, the closure cost estimate must be revised no later
than thirty (30) days after the commissioner has approved the request to modify
the closure plan, if the change in the closure plan increases the cost of
closure. The revised closure cost estimate must be adjusted for inflation as
specified in subsection (b).
(d)
The owner or operator must keep the following at the facility during the
operating life of the facility:
(1) The latest
closure cost estimate prepared in accordance with subsections (a) and
(c).
(2) When this estimate has
been adjusted in accordance with subsection (b), the latest adjusted closure
cost estimate.
Notes
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No prior version found.