Annual Inflation Adjustments

For some program areas, cost estimates, which provide the basis for the amount of financial assurance required, must be increased annually to account for inflation. Programs requiring inflation adjustments include:

Industrial and Hazardous Waste

Municipal Solid Waste

Underground Injection Control Wells

Used Oil Recycling

Class A or B Petroleum-Substance Contaminated Soil Storage,
Treatment and Reuse Facilities

Scrap Tire Sites

Public Drinking Water Systems and Utilities

Radioactive Material - Burial

Radioactive Waste - Low Level Near-Surface Land Disposal

If applicable, the inflation adjustment must be made using an inflation factor derived from the most recent annual Implicit Price Deflator for Gross National Product published by the United States Department of Commerce. The preliminary and final inflation factors are generally available by the first week of February and April of each year, respectively. Once the cost estimate has been adjusted, then you must ensure that your financial assurance mechanism dollar amount sufficiently covers the revised cost estimate.

30 TAC 37.131 
Explains the process and timing of increasing cost estimates for inflation.

30 TAC 37.141 
Explains how current cost estimates must be covered by financial assurance.