Fuel/Oil Recovery Fee
Casella Waste Systems, Inc. provides our customers with the highest quality waste and recycling services at a great overall value. We are constantly working to improve our service, contain our operating costs, and develop cleaner technologies and solutions to reduce our overall environmental impact. However, the rising costs of fuel, oil, and environmental compliance are not fully within our control.
Our Fuel/Oil Recovery Fee is a charge that helps us to recover these costs and achieve an acceptable operating margin. The Fuel/Oil Recovery Fee is not a tax, surcharge, or fee imposed by any regulatory or government agency, but is a fee applied by Casella to cover our company-wide costs associated with diesel fuel, oil, and environmental compliance.
About the Fee
The Fuel/Oil Recovery Fee component is directly tied to the Regional U.S. Average On-Highway Diesel Fuel Prices reported by the Energy Information Administration of the U.S. Department of Energy (“EIA/DOE”). The EIA/DOE updates this public index weekly by tracking actual average retail diesel prices across our operating regions. For your reference, the index can be viewed by clicking on the following link EIA/DOE Table or the complete diesel data can be downloaded here.
The Fuel/Oil Recovery Fee included with your invoice will be updated each month. The Fuel/Oil Recovery Fee for the month is determined by taking the peak weekly diesel price per gallon for the preceding month and applying the corresponding percentage from the Casella Fuel/Oil Recovery Fee Table to the invoice charges before taxes. The Fuel/Oil Recovery Fee included with your invoice seeks to recover the portion of Casella’s overall costs of fuel and oil (direct and indirect fuel/oil costs for collection, transfer, recycling, and disposal operations) not reflected in your base service fees.
Frequently Asked Questions
How will you calculate the Fuel/Oil Recovery Fee?
The Fuel/Oil/Environmental Recovery Fee is determined by taking the peak weekly diesel price per gallon for the preceding month from the regional EIA/DOE Index and applying the corresponding percentage from the Casella Fuel/Oil Recovery Fee Table to the invoice charges before taxes.
Is this a fixed fee, or will it be adjusted?
The Fuel/Oil Recovery Fee will be adjusted upwards or downwards if the peak weekly diesel price from the regional EIA/DOE Index changes from the prior period. This means that as diesel prices go down, the Fuel/Oil Recovery Fee portion on your monthly invoice will also go down.
How will I know how much my fee is? Will this be on my statement each month?
The Fuel/Oil Recovery Fee is broken out as a single, separate line on your statement each month.
Are any other companies taking this step?
Given the volatility of oil and fuel prices in recent years, many other companies (UPS, FedEx, and other solid waste and recycling companies) have adopted similar sliding scale fees to manage the costs of servicing their customers.
Resource Sustainability is Not Free
Across the country, thousands of municipalities, businesses, institutions and households are working to increase their recycling, reduce their waste and promote a more sustainable existence. They understand how wasting less and recycling more can help conserve resources, protect the environment, support jobs and create value. To make this work effectively, investments in infrastructure are required to deliver the value-added services that our customers demand.
The Decline in Value of Recyclable Materials
In the past, some of the infrastructure was subsidized by the market value of the materials being recycled. Unfortunately, today, this is no longer the case. Commodities like plastic, paper and cardboard are worth far less than they were just 2-4 years ago. It appears that this era of low commodity values has become the new normal.
State Regulations Support Resource Sustainability
Public policy has long supported sustainability while fostering its growth. At Casella, we have an obligation to meet the regulatory requirements and the needs of our customers to ensure the environmental and economic benefits of resource sustainability for generations to come.
The Environmental Fee helps, in part, to cover the costs to operate our company-wide collection, transfer, landfill, recycling and organics infrastructure - costs frequently driven by various local, state, or federal regulatory requirements whose aim is to achieve environmental protection and resource sustainability. The amount of the Environmental Fee is not specifically tied to the costs associated with servicing your account and is applied to the total invoice amount before taxes.