[Code of Federal Regulations]
[Title 40, Volume 24]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR264.142]

[Page 259-260]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 264_STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, 
STORAGE, AND DISPOSAL FACILITIES--Table of Contents
 
                    Subpart H_Financial Requirements
 
Sec. 264.142  Cost estimate for closure.

    (a) The owner or operator must have a detailed written estimate, in 
current dollars, of the cost of closing the facility in accordance with 
the requirements in Sec. Sec. 264.111 through 264.115 and applicable 
closure requirements in Sec. Sec. 264.178, 264.197, 264.228, 264.258, 
264.280, 264.310, 264.351, 264.601 through 264.603, and 264.1102.
    (1) The estimate must equal the cost of final 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 Sec. 264.112(b)); and
    (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 Sec. 264.141(d).) 
The owner or operator may use costs for on-site disposal if he can 
demonstrate that on-site disposal capacity will exist at all times over 
the life of the facility.
    (3) The closure cost estimate may not incorporate any salvage value 
that may be realized with the sale of hazardous wastes, or non-hazardous 
wastes if applicable under Sec. 264.113(d), facility structures or 
equipment, land, or other assets associated with the facility at the 
time of partial or final closure.
    (4) The owner or operator may not incorporate a zero cost for 
hazardous wastes, or non-hazardous wastes if applicable under Sec. 
264.113(d), that might have economic value.
    (b) During the active life of the facility, the owner or operator 
must adjust the closure cost estimate for inflation within 60 days prior 
to the anniversary date of the establishment of the financial 
instrument(s) used to comply with Sec. 264.143. For owners and 
operators using the financial test or corporate guarantee, the closure 
cost estimate must be updated for inflation within 30 days after the 
close of the firm's fiscal year and before submission of updated 
information to the Regional Administrator as specified in Sec. 
264.143(f)(3). The adjustment may be made by recalculating the maximum 
costs of closure 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, as specified in paragraphs (b)(1) and (2) of this 
section. The inflation factor is the result of dividing the latest 
published annual Deflator by the Deflator for the previous year.
    (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 mutliplying the latest 
adjusted closure cost estimate by the latest inflation factor.
    (c) During the active life of the facility, the owner or operator 
must revise the closure cost estimate no later than 30 days after the 
Regional Administrator 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 Sec. 264.142(b).
    (d) The owner or operator must keep the following at the facility 
during the operating life of the facility: The latest

[[Page 260]]

closure cost estimate prepared in accordance with Sec. 264.142 (a) and 
(c) and, when this estimate has been adjusted in accordance with Sec. 
264.142(b), the latest adjusted closure cost estimate.

[47 FR 15047, Apr. 7, 1982, as amended at 50 FR 4514, Jan. 31, 1985; 51 
FR 16447, May 2, 1986; 52 FR 46964, Dec. 10, 1987; 54 FR 33395, Aug. 14, 
1989; 57 FR 37265, Aug. 18, 1992]