Fuel & Environmental Information

Fuel/Environmental Charge Information

Unfortunately, there are some costs we cannot control. The escalating costs of fuel and environmental compliance have had a tremendous impact on our industry. In the past every customer was being charged a flat fuel charge. In order to be fair to all parties involved the fuel charge will be a fluctuating percentage. As the price of fuel rises the fuel charge will rise and as the price of fuel decreases the fuel charge will decrease.

The cost of fuel has a tremendous impact on our industry. The Fuel Surcharge allows J.D. Parker & Sons to keep up with, recover and offset the cost of diesel, natural gas (“CNG”) and other fuels that J.D. Parker & Sons collectively use to operate J.D. Parker & Sons fleet of trucks, dispose of waste, and otherwise operate J.D. Parker & Sons businesses. The Fuel Surcharge is a fluctuating percentage of all invoice charges, including fees but excluding taxes. The percentage of the Fuel Surcharge changes on a bi-monthly basis as the cost of diesel fuel changes (unless your service agreement specifies otherwise). The percentage of the Fuel Surcharge is based on the Weekly Retail On-Highway Diesel Prices chart that the Energy Information Administration of the U.S. Department of Energy publishes on its website which reflects the national average price of diesel fuel. Click on this link to view the U.S. Department of Energy Website and refer to the Lower Atlantic, Midwest, and Gulf Coast section labeled U.S. On-Highway Diesel Fuel Prices. J.D. Parker & Sons uses the national average price of diesel fuel on this chart to calculate the percentage of the Fuel Surcharge on a bi-monthly basis as set forth in its parent company Waste Pro Index Chart available here. For example, if the Energy Information Administration/Department of Energy Fuel Rate is $5.04, then the Fuel Surcharge will be 28.22%, as reflected on the parent company’s Waste Pro Index Chart. As the national average price of diesel fuel increases, the percentage of the Fuel Surcharge will increase on a bi-monthly basis; as the national average price of diesel fuel decreases, the percentage of the Fuel Surcharge will decrease on a bi-monthly basis (unless your service agreement specifies otherwise). At any given point in time, JD Parker and Sons does not necessarily pay the national average price of diesel fuel and the Fuel Surcharge does not reflect the price JD Parker and Sons pays for fuel nor does it represent the direct or indirect costs to service a specific customer or route. Instead, the Fuel Surcharge helps support our company-wide costs to operate our collection, recycling, landfill and transfer station facilities. Not all of the revenue received by JD Parker and Sons from the Fuel Surcharge is necessarily for cost recovery and some of the revenue from that charge may contribute to JD Parker and Son’s profits.

J.D. Parker & Sons is dedicated to keeping our environment safe. The Environmental Fee is related to meeting a high standard of environmental compliance set by internal management or external governmental regulatory agencies and to operating in an environmentally friendly manner. The Environmental Fee is a recurring charge and is typically a fixed percentage of all invoice charges including the Fuel Recovery fee but excluding taxes. The current rate is 16%. This charge will help support our company-wide costs to operate our collection, recycling, landfill and transfer station facilities in a safe and environmentally responsible manner including, but not limited to, the increased purchase cost of trucks that comply with EPA regulations regarding the level of allowed exhaust emissions into the atmosphere and the repair and replacement of the emission systems of such trucks, the high cost of trucks powered by Compressed Natural Gas that drastically reduce harmful emissions into the atmosphere, the cost incurred by J.D. Parker & Sons to comply with federal, state, and local requirements related to landfills owned by our parent company Waste Pro and fees charged by third party landfill owners related to the costs those landfill owners incur to comply with federal, state, and local environmental protection statutes and regulations. The revenue received by J.D. Parker & Sons from the Environmental Fee may not be for cost recovery and may contribute to J.D. Parker & Son’s profits. No portion of the revenue from the Environmental Fee is remitted to any federal, state, or local governmental entity.