40.17.420 Economic Benefit from Delayed Costs and Avoided Costs

This section discusses two types of economic benefit from noncompliance in determining the economic benefit component:

(a) benefit from delayed costs; and

(b) benefit from avoided costs.

Delayed costs are expenditures which have been deferred by the violator's failure to comply with the requirements. The violator eventually will have to spend the money in order to achieve compliance. Delayed costs are either capital costs (essentially construction or equipment) or one-time non-depreciable costs (e.g., cleaning up a spill).

Avoided costs are expenditures which will never be incurred. Avoided costs include the usual operating and maintenance costs which would include any annual periodic costs such as leasing monitoring or testing equipment.