California Department of Resources Recycling and Recovery (CalRecycle) 

Financial Assurances - Inflation Factor Report: Major Waste Tire Facilities

To: All Operators of Major Waste Tire Facilities

Title 14, California Code of Regulations (CCR), Division 7, Chapter 6, Article 9, section 18472(c), requires you to submit a report to the California Integrated Waste Management Board. The report calculates the inflationary increase in the closure cost estimate for the previous calendar year.

Based on information obtained from the U.S. Department of Commerce, Bureau of Economic Analysis, Table 4, dated May 2004, the inflation factor for 2003 is 1.017 (1.7%). Please complete the form on the reverse side of this letter for each major waste tire facility you operate, and return it to the Financial Assurances Section at the above address on or before June 1, 2004. We are providing this form for your convenience.

Following are previous years’ inflation factors:

  • 1994: 1.020
  • 1995: 1.024
  • 1996: 1.020
  • 1997: 1.020
  • 1998: 1.010
  • 1999: 1.015
  • 2000: 1.021
  • 2001: 1.022
  • 2002: 1.011

If you have not made the previous years’ adjustments, please do so before calculating the 2004 adjusted total cost estimates. Apply the inflation factor for 1994 to your 1993 initial closure cost estimate.  Apply subsequent inflation factors to the previous year’s total cost estimate. According to 14 CCR, section 18472(d), the financial assurance mechanism used to demonstrate financial responsibility for closure of your major waste tire facility, must be updated no more than 60 days after a change in the amount of the current closure cost estimate.

Disregard the cost estimate information in this notice if you recently revised your estimates due to changes in your closure plan, and the revised estimates reflect 2004 dollars.

If you have any questions regarding this report, please contact Ms. Jonalyn Bajurin of the Financial Assurances Section at (916) 341-6715. Thank you for your cooperation.

Sincerely,

Original signed by:

Garth C. Adams, Manager
Financial Assurances Section
Facilities Operations Branch
Permitting and Enforcement Division

Annual Inflation Factor 2003

Facility Name:  ______________________________________________

Facility No.:  _________________________________

Multiply each cost estimate by the inflation factor to determine the new adjusted cost estimates as illustrated below.

The ABC Major Waste Tire Facility cost estimate for closure in 2003 was $2,000,000.  Using the 2003 inflation factor of 1.017, they recalculated their adjusted closure cost for 2004 to $2,034,000.

Closure estimate           $2,000,000                   X1.017                   =                   $2,034,000

Using the inflation factor for 2003, calculate the following:

$ __________________________                   X   1.017                   =                   $ __________________________
              Closure Costs                                                                                             Estimate in 2004 Dollars

I certify under penalty of perjury under the laws of the State of California that the information in this document is true and correct to the best of my knowledge and is being provided in accordance with the regulations.

Operator/Owner Signature:

Title of Person Signing:

Printed Name of Person Signing:

Mailing Address:

Phone Number:

Date of Report:

Thank you for providing this information.

Financial Assurances Home

Last updated: September 29, 2004
Financial Assurances, http://www.calrecycle.ca.gov/SWFacilities/Financial/
Richard Castle: Richard.Castle@calrecycle.ca.gov