ORS § 459A.923

Current through 2024 Regular Session legislation effective June 6, 2024
Section 459A.923 - Processor commodity risk fee; rules
(1) As used in this section:
(a) "Anticipated program cost" means all additional costs related to any new requirements of ORS 459A.860 to 459A.975 that are anticipated prior to the next review of the processor commodity risk fee under subsection (6) of this section.
(b) "Average commodity value" means the average revenue paid by brokers or end markets, after processing by a commingled recycling processing facility, for a composite ton of commingled material collected for recycling in Oregon.
(c)
(A) "Eligible processing cost" means all costs associated with owning and operating a commingled recycling processing facility as determined by the study conducted under subsection (3) of this section, including but not limited to sorting, handling, storing, disposal, marketing and shipping, administration, rent, fees, depreciation, fixed costs, profit, the target price paid for commingled recycling collected from Oregon as described in subsection (2)(d) of this section and anticipated program costs.
(B) "Eligible processing cost" does not include revenue from the sale of recyclables and any costs that are reimbursed by producer responsibility organizations or other parties, including the contamination management fee established under ORS 459A.920.
(2) The Environmental Quality Commission shall by rule adopt and periodically revise a processor commodity risk fee to be paid by producer responsibility organizations to commingled recycling processing facilities to ensure that producers share in the costs of fully processing commingled recyclables that are covered products and to allow local governments to reduce the financial impacts on ratepayers. The processor commodity risk fee shall be based on the eligible processing costs of facilities less the average commodity value of recyclable materials processed by facilities. Rules adopted under this section must:
(a) Provide that payment of the fee may not be required more frequently than once per month and must be paid within 45 days of a request for payment.
(b) Provide that the fee may not be based on commingled recycling originating outside of Oregon.
(c) Establish a review process to ensure that the fee is appropriately charged.
(d) For purposes of calculating the processor commodity risk fee, allow the average fee charged by commingled recycling processing facilities for acceptance of commingled recyclables collected from Oregon to target a price of $0 per ton, expressed on the basis of compensation per ton of delivered material.
(e) Provide that the fee is to be paid on the basis of recyclable material received by or sold from a commingled recycling processing facility.
(f) Ensure that materials handled by more than one commingled recycling processing facility are not double counted for purposes of calculating the fee.
(g) Allow local governments to protect ratepayers from cost increases associated with the volatility of commodity markets.
(h) Establish methods to determine and periodically update, but no more frequently than once per month, the average commodity value per ton of commingled materials collected from single-family residences in Oregon and from all other sources in Oregon. The methods developed under this paragraph must include:
(A) The average composition of materials by percentage in each mix, multiplied by published market values;
(B) The sources of the published market values used; and
(C) Any adjustments to published market values for each commodity to reflect conditions in Oregon.
(3) Subject to subsection (6) of this section, the Department of Environmental Quality shall contract with an independent organization to conduct the study under this subsection. The study must:
(a) Estimate the average eligible processing cost at commingled recycling facilities that process commingled recycling generated in Oregon; and
(b) Report the costs on the basis of tons of commingled recycling received and materials shipped to end markets.
(4) A commingled recycling facility that does not participate in the review process described in subsection (2) of this section or the study described in subsection (3) of this section is not eligible to receive a processor commodity risk fee.
(5) Any proprietary information provided to the department under subsection (2) of this section or to a person conducting a study under subsection (3) of this section may be designated confidential by a commingled recycling processing facility. Information designated confidential is not subject to public disclosure under ORS 192.311 to 192.478, except that information may be disclosed as summarized or aggregated data if doing so does not directly or indirectly disclose the proprietary information of any specific facility.
(6) The department shall contract for the study under subsection (3) of this section to be performed at least once every five years. The department may contract for the study under subsection (3) of this section to be performed no more than once per year. If a study under subsection (3) of this section demonstrates that the average per-ton eligible processing cost has changed by more than 10 percent since the commission last established the processor commodity risk fee, the commission shall by rule revise the processor commodity risk fee.

ORS 459A.923

2021 c. 681, § 25