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.