Cost estimates for financial assurance for dangerous waste handling facilities need to be adjusted every year for inflation. Some companies choose to do an entirely new cost estimate every year to make sure it is always accurate. However, that is not required. Instead, simply multiply the amount from last year by this year’s inflation adjustment. This also works to adjust an old amount for multiple years.
Adjusting for inflation
Inflation factors for the years 2000 to 2020
Year
|
Inflation factor
|
Year
|
Inflation factor
|
| 2000 |
1.0147 |
2011 |
1.0096 |
| 2001 |
1.0217 |
2012 |
1.0210 |
| 2002 |
1.0226 |
2013 |
1.0184 |
| 2003 |
1.0162 |
2014 |
1.0150 |
| 2004 |
1.0215 |
2015 |
1.0164 |
| 2005 |
1.0284 |
2016 |
1.0100 |
| 2006 |
1.0334 |
2017 |
1.0131 |
| 2007 |
1.0326 |
2018 |
1.0180 |
| 2008 |
1.0294 |
2019 |
1.0226 |
| 2009 |
1.0219 |
2020 |
1.0175 |
| 2010 |
1.0092 |
|
|
If a closure-cost estimate was $25,000 in 2008, multiply $25,000 by 1.0219 (the inflation factor for that year in the table above) to get $25,548 for 2009. For 2010, multiply 25,548 by 1.0092 to get $25,783.
Estimates on financial-assurance documents must cover at least this amount for those years. To calculate inflation for other years, contact us, and we’ll help figure it out.