Section 329IAC3.1-14-3. Cost estimate for closure

   (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.

(Solid Waste Management Division; 329 IAC 3.1-14-3; filed Jan 24, 1992, 2:00 p.m.: 15 IR 947; filed Apr 1, 1996, 11:00 a.m.: 19 IR 1972; filed Jul 18, 1996, 3:05 p.m.: 19 IR 3361; readopted filed Jan 10, 2001, 3:25 p.m.: 24 IR 1535)