S.C. Code Regs. § 61-79.265.H.142

Current through Register Vol. 48, No. 5, May 24, 2024

Section 61-79.265.H.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 sections265.111 through 265.115 and applicable closure requirements in sections265.197, 265.228, 265.258, 265.280, 265.310, 265.351, 265.381, 265.404, and 265.1102.

(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 Section265.112(b)(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 Section265.141(d)(d).) The owner operator may use costs for onsite disposal if he can demonstrate that onsite 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 by the sale of hazardous wastes or non-hazardous wastes, if applicable under 265.113(d), facility structures or equipment, land or other assets associated with the facility at the time of partial or final closures.

(4) The owner or operator may not incorporate a zero cost for hazardous wastes or nonhazardous wastes if applicable under section265.113(d)(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 section265.143. 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 Department as specified in section265.143(e)(3)(e)(3). The adjustment may be made by recalculating the closure cost estimate 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 (b)(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 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 30 days after a revision has been made to the closure plan which increases the cost of closure. If the owner or operator has an approved closure plan, the closure cost estimate must be revised no later than 30 days after the Department 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 Section265.142(b)(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 Section265.142(a) and (c)(a) and (c) and, when this estimate has been adjusted in accordance with Section265.142(b)(b), the latest adjusted closure cost estimate.

S.C. Code Regs. 61-79.265.H.142

Amended by State Register Volume 11, Issue No. 11, eff November 27, 1987; State Register Volume 12, Issue No. 10, eff October 28, 1988; State Register Volume 14, Issue No. 11, eff November 23, 1990; State Register Volume 16, Issue No. 12, eff December 25, 1992; State Register Volume 17, Issue No. 12, eff December 24, 1993.