Financial assurance updates

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 2021

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 2021 1.0121

How to calculate

Multiply your closure-cost estimate by the inflation factors for the years affecting your project using the table above. Estimates on financial assurance documents must cover at least the final total for those years.

For example, if a closure-cost estimate was $25,000 in 2009, multiply that by 1.0219 (the inflation factor for 2009) to get $25,548. For 2010, you would then multiply $25,548 by 1.0092 (the inflation factor for 2010) to get $25,783.

To calculate inflation for other years, contact us.