Frequent Questions

How do I deal with the recent comprehensive revision of the implicit price deflator series by the Commerce Department when I am updating a facility's financial assurance?

The most recent IPD can be found on BEA's Web Site in Table 1.1.9. Exit EPA  The GDP figures are located in Line 1, and the GNP figures are located in Line 25.

As a result of the comprehensive revision by BEA, the revised IBD numbers differ from those presented previously.  The 2003 3rd quarter estimate is 105.851, compared with 104.084 for 2002.  This leads to an upward adjustment of cost estimates by 1.7%.  If an owner/operator divides the new 3rd quarter value for 2003 (105.851) by the value for the old series for 2002 (110.76), the cost estimates for this year and all subsequent years would be 6.1% lower than they should be.  The result could be that owners and operators will not provide sufficient financial responsibility to ensure proper closure of their facilities and proper post-closure care.  Therefore, the new figures for both 2002 and 2003 should be used when calculating current cost estimates. Related Material: BEA Web Site Exit EPA
Memo, Shapiro to Regions; March 8, 1996 (RCRA Online 11981) [PDF 8K]  

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