Fuel and Environmental Recovery Fee – Collection Services
Republic Services is committed to providing high quality service to our customers. We strive to contain our costs; however, we are unable to control fuel prices and environmental expenses unilaterally. The Fuel/Environmental Recovery Fee is a charge to help us recover these costs, and achieve an acceptable operating margin. This invoice line item represents two separate components, a Fuel Recovery Fee and an Environmental Recovery Fee.
Fuel Recovery Fee – Collection Services
The Fuel Recovery Fee component of the charge references the U.S. Department of Energy diesel price U.S. Average index, which is based on data from the U.S. Energy Information Administration. For additional information on the index please click here.
The Republic Services Fuel Recovery Fee component will be updated each month (on or about the 1st of each month). The diesel rate used will be the peak weekly-published price per gallon in the preceding calendar month. The Fuel Recovery Fee for your billing period will be based on the rate from the table for the month preceding the month in which you are invoiced. For example, if the peak diesel price per gallon was $2.65, based on the Fuel Recovery Table (Click here for Fuel Recovery Fee Table) the fuel component of the charge would be 9.50% of your invoice amount, excluding tax, and this rate will apply for the entire period covered by your invoice.
The Fuel Recovery Fee charged on your invoice is not associated with any explicit, direct or indirect cost to service your account. The fee is based on the overall cost of fuel incurred by Republic Services on a nationwide basis, and is designed to achieve an acceptable operating margin. This includes both direct and indirect fuel costs associated with collection, transfer, landfill operations, and material recovery facilities.
Environmental Recovery Fee – Collection Services
The Environmental Recovery Fee component of the Fuel/Environmental Recovery Fee is established at 8.25% of invoice charges, excluding tax. This fee recovers costs incurred on a nationwide basis associated with operating our facilities (collection, transfer, landfill, material recovery, and landfill gas-to-energy) in an environmentally safe manner, and is designed to achieve an acceptable operating margin.
The Environmental Recovery Fee charged on your invoice is not associated with any explicit, direct or indirect cost to service your account. It relates to Republic Services' costs throughout its operations to service all customers.
Calculation of Fuel/Environmental Recovery Fee
The Fuel/Environmental Recovery Fee is charged to a customer’s invoice in
the following manner:
The Fuel Recovery Fee is applied to the total standard invoice charges, excluding tax. The Environmental Recovery Fee is then applied to the total standard charges, including the Fuel Recovery Fee, excluding tax.
Not a Governmental Tax
The Fuel/Environmental Recovery Fee is not a tax, surcharge, or fee mandated/imposed by or remitted to any governmental or regulatory agency. As noted above, the fee is a Republic Services charge to cover our costs on a nationwide basis. The Fuel Recovery Fee or the Environmental Recovery Fee may be changed at the discretion of Republic Services. Your service agreement may require your consent to these fees; under such service agreements, your payment of the fees provides your consent.
Frequently Asked Questions
- Q: Why am I charged a Fuel Recovery Fee?
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By separating the fuel cost out into a separate line item, we are better able to isolate fluctuations that may occur in fuel prices. This shares the cost of fuel during inflationary periods and gives the customer the benefit of reduced charges when fuel prices drop.
- Q: Why am I charged a Fuel Recovery Fee when the trucks from the local Republic
Services company that collects my waste/recyclables use fuels other than diesel,
such as Compressed Natural Gas (CNG) or Liquefied Natural Gas (LNG)?
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The Fuel Recovery Fee (FRF) is a charge that relates to Republic Services and its affiliates’ direct and indirect fuel costs to service all customers on a nationwide basis; it is not associated with any explicit, direct or indirect cost at any one of our local affiliates to service its customers’ accounts. Although certain of our local companies have converted (or will convert) to alternative-fuel-powered (e.g., CNG, LNG) trucks and/or equipment, most of the disposal trucks, vehicles and other equipment used in our nationwide operations remain diesel-powered. Republic Services and its affiliates incur costs nationwide in the form of diesel, CNG, LNG or other alternative fuel purchases in addition to other petrochemical expenses.
- Q: How often does the fuel component of the charge change?
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The fuel component of the charge will change on a monthly basis. The Fuel Recovery Fee % will increase/decrease as the national average diesel price changes.
- Q: How often will the Environmental Recovery Fee change?
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The Environmental Recovery Fee does not fluctuate on a monthly basis. This fee may change at the discretion of Republic Services.
- Q: When was the last timeyou increased the Environmental Recovery Fee?
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The Environmental Recovery Fee was increased to 8.25% in December 2011.
- Q: Are there plans to increase the Environmental Recovery Fee?
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We review our costs periodically and adjust the Environmental Recovery Fee as necessary. If there were to be any change to the Fee, you would be notified through your billing statement.
We appreciate your business and look forward to continuing to serve you and the
community. If you have any questions, please contact your local office at the phone
number on your invoice.