The owner or operator must adjust the current closure cost estimate for inflation within 60 days prior to the anniversary date of the first establishment of the financial assurance mechanism. For owners or operators using the financial test or corporate guarantee, the current 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 executive director as specified in this chapter. The adjustment must be made as specified in paragraphs (1) and (2) of this section, using an inflation factor derived from the most recent Implicit Price Deflator for Gross National Product published by the United States Department of Commerce in its Survey of Current Business. The inflation factor is the result of dividing the latest published annual Deflator by the Deflator for the previous year.

1. (1) The first adjustment is made by multiplying the current closure cost estimate by the inflation factor. The result is the adjusted closure cost estimate.
2. (2) Subsequent adjustments are made by multiplying the latest adjusted cost estimate by the latest inflation factor.

Source Note:The provisions of this §37.131 adopted to be effective December 30, 1996, 21 TexReg 12297.