Champion Waste’s Fuel/Environmental Charge (FEC) Information

Champion Waste Service is committed to controlling costs so we can continue to provide you with the best overall value in waste related services. Fuel prices and environmentally related costs are something we cannot control.   Our FEC is intended to defray a part of the increased third party costs. This charge is a one line item on customer invoices that contains two separate components-a fuel surcharge component and an environmental cost recovery component.

Fuel Component
Our standard fuel surcharge calculation is tied directly to the national average price of diesel fuel as reported weekly by the Energy Information Administration of the U.S. Department of Energy ("EIA/DOE") in its Weekly Retail On-Highway Diesel Prices Index. This index is objective, publicly available and widely recognized in the trucking and transportation industries. Tying our fuel surcharge to this index will ensure that you, our valued customer, will pay a fuel surcharge that is currently adjusted, easy to calculate, and equitable to you and the Company.

The EIA/DOE average is published the 3rd Monday of each month based off Midwest pricing and will be used for invoices created during the following month. The CWS Fuel Surcharge Table shows what the fuel surcharge, as a percentage of your monthly or other periodic invoice charges, before taxes, would be based upon the last reported EIA/DOE national diesel price index prior to your invoice date.

Environmental Component
Champion Waste is committed to being a good neighbor to our customers, our employees and our environment. Beginning February 2009, the environmental component of our Fuel/Environmental Charge will be 2% of all invoice charges excluding the fuel surcharge and sales tax. (Some disposal customers are charged a flat per load rate. Contact Customer Service for more details.) The environmental component of the FEC is used to support our costs associated with environmental compliance. This charge also funds costs associated with maintaining and operating our operations in an environmentally responsible manner, such as low emissions and electronic monitoring systems for our equipment.

The amount or percentage of the environmental charge is not tied to any specific, direct or indirect, costs to service your account, but to Champion Waste's overall costs on a company-wide basis.

Determination of the Fuel/Environmental Charge Amount
The Fuel/Environmental Charge that is included in a customer's invoice is determined by applying the percentage from the CWS Collection Fuel Surcharge Table to the invoice charges (excluding tax). The 2% environmental component is then applied to the sum of the invoice charges excluding the fuel surcharge amount and taxes

Not a Governmental Tax; Future Changes
The Fuel/Environmental Charge is not a tax or surcharge imposed by or remitted to any governmental or regulatory agency; it is a Champion Waste charge. The Fuel/Environmental Charge percentages may be changed at the discretion of Champion Waste.

Frequently Asked Questions
Q: Why do you charge a fuel surcharge component?
A: The fluctuation in the cost of diesel fuel today makes it difficult for our Company to recover fuel expenses in standard operating margins. Our residential and commercial vehicles that run on diesel get 3 to 4 miles per gallon and our roll off vehicles around 8. In addition, third party vendors that handle our waste charge us a fuel surcharge or an increased price for added fuel costs.

Q: If the price of fuel goes down, will my fuel surcharge component go down too?
A: Yes, because the charge is tied to EIA/DOE index, if the EIA/DOE's national average diesel price falls, your fuel surcharge component will come down as well. This information is updated weekly.

Q: How can I access the EIA/DOE Weekly Retail On-Highway Diesel Prices Index?
A: Here is the link to the EIA/DOE. This site is updated the 3rd Monday of each month based off Midwest pricing and will be used for invoices created during the following month.

Q: What does the environmental component cover?
A: The environmental component is our charge that we attribute to our overall company-wide costs to operate our business in a safe and environmentally responsible manner and to achieve an acceptable operating margin. This environmental charge is not tied to any specific environmental compliance or other costs to service a specific customer account, but to the overall environmentally related costs to service all Champion Waste customers and to achieve an acceptable margin.

Q: Will the environmental charge component change each month?
A: No. The environmental charge will not fluctuate each month. It is currently set at 2% of all invoice charges, including the fuel surcharge (excluding taxes). The percentage may be changed periodically if there is a business determination that warrants an increase or decrease in the fee charged. (Some disposal customers are charged a flat per load rate. Contact Customer Service for more details.)