Haw. Code R. § 11-264-142 - 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 sections
11-264-111 through 11-264-115 and applicable closure requirements in sections
11-264-178, 11-264-197, 11-264-228, 11-264-258, 11-264-280, 11-264-310,
11-264-351, 11-264-601 through 11-264-603, and 11-264-1102.
(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 subsection 11-264-112(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 subsection
11-264-141(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 subsection 11-264-113(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 subsection 11-264-113(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 sixty days prior to the anniversary date of the
establishment of the financial instrument(s) used to comply with section
11-264-143. For owners and operators using the financial test or corporate
guarantee, the closure cost estimate must be updated for inflation within
thirty days after the close of the firm's fiscal year and before submission of
updated information to the director as specified in paragraph 11-264-143(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). 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
multiplying 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 thirty days after the director 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 11-264-142(b).
(d) The owner or operator must keep the
following at the facility during the operating life of the facility: The latest
closure cost estimate prepared in accordance with subsections 11-264-142(a) and
(c) and, when this estimate has been adjusted in accordance with subsection
11-264-142(b), the latest adjusted closure cost estimate.
Notes
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