Recycling Commodity Adjustment

In the past, nearly 4,000 shipping containers full of recyclables left US ports bound for China every day.  Nearly all of those shipments came to an abrupt halt when China enacted it’s “National Sword” policy in January of 2018.  This new policy banned the United States from shipping 24 different types of waste materials to China, many of which are recyclable items that we collect from homes and businesses every day.  This new policy immediately impacted our markets here in the United States, starting primarily with those recycling facilities on the coasts who had been shipping the majority of their baled commodities to China every month.  Bales of paper products, cardboard, and plastics immediately began to pile up in storage yards all along the coasts and today recyclables in parts the country are actually being landfilled because the supply has far exceeded the demand for the materials.  Put simply, there is just no place to take it in many areas of the country.

Randy’s has always worked hard to establish relationships with local end-markets for the materials that we collect.  Fortunately, we are still able to move our recyclable materials to market on an on-going basis, but pricing for the materials has deteriorated drastically.  The revenue generated from the sale of recycle commodities is one of the key components in making recycle programs work, and we are not able to provide recycling services without having the adequate revenue needed to collect and process those recyclable materials.  As a result, Randy’s has implemented a Recycle Commodity Adjustment on our invoices for recycling services to help off-set the lost value of recyclable materials.  This charge will fluctuate up or down on every invoice along with the changing blended value of recyclable materials that we collect.  All of us at Randy’s remain committed to providing you with reliable and consistent recycling pick-up and processing services, and we sincerely appreciate the effort you put into making recycling a success at your home or business.

Fuel-cost Adjustment

In this time of drastic fuel cost fluctuations, we have found it necessary to implement the Randy's Environmental Services Fuel Cost Adjustment. This adjustment is added to your invoice as a percentage of your monthly or other periodic invoice charges before taxes, and is tied directly to the U.S. Department of Energy Diesel Price Index. This adjustment is calculated using the most current weekly-published diesel price per gallon for the Midwest region prior to the date that your invoice was generated. This method is widely used in the trucking industry and provides a very transparent means for tracking.

Environmental Fee

The Environmental Fee component is designed to help us recover the ever increasing costs associated with environmental compliance in areas such as truck emissions, environmental liability insurance, licensing, disposal facility development, engineering, monitoring, compliance testing, and reporting. The Environmental Fee is currently 19.45% of all invoice charges, and does not fluctuate monthly. However, the percentage may change periodically as seen necessary by Randy’s Environmental Services.

Calculating the Fuel/Environmental Charge Amount

The Fuel/Environmental Fee on your invoice is calculated by first applying the appropriate percentage from the Randy's Environmental Services Fuel Cost Adjustment to your invoice charges (excluding tax). The 19.45% Environmental Fee is then applied to the sum of the invoice charges and the Fuel Cost Adjustment, excluding tax. If you have recycling services or other non-taxable services, you will see the taxable and non-taxable portions of the Fuel/Environmental Fee stated separately on your invoice.

Randy’s Environmental Services is committed to controlling costs in order to continue providing the best service at competitive rates. While we are able to effectively manage many of the expenses associated with our industry, there are some significant costs that fluctuate outside of our control. The most crucial of these are fuel prices and environmental compliance costs. The Fuel/Environmental Fee is meant to help us recover a portion of these two costs. This fee is listed as a single line item on your invoice and represents two separate components, a fuel-cost adjustment and environmental fee.

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