Four-Step Fee Methodology and 2022 Fee Rates
Fee methodologies are an allocation tool used to determine each material’s share of the total amount stewards must pay to finance the Blue Box Program’s annual budget. Prior to simplified fee setting, which will apply to stewards 2023 invoices, material fee rates (expressed in cents per kilogram) were determined by calculating the allocated dollar amount for a material and dividing that by the number of supplied tonnes of that material.
Here’s how the Four-Step Fee Methodology works:
- Step 1 allocates the Gross Cost of the recycling system – the collection and processing activities. Activity Based Costing (ABC) per tonne provides the material cost input.
- Step 2 allocates the commodity revenue to those materials that have earned the revenue.
- Step 3 allocates the program management cost of the stewardship program.
- Step 4 will add material specific Promotion and Education and/or Market Development.
The fee rates for 2022 invoices in the below table are provided for reference only.