340-090-0770 Local Government Transportation Costs Reimbursement (1) A producer responsibility organization must pay the costs of transporting covered products from a recycling depot or recycling reload facility to a commingled recycling processing facility or a responsible end market as provided by ORS 459A.890(2) and this rule. (2) Transportation costs must be based on the actual costs of managing and transporting covered products that must be shipped more than 50 miles. (3) The 50-mile distance in section 2 of this rule and ORS 459A.890(2)(b)(E) is the shortest driving distance to the nearest commingled recycling processing facility or a responsible end market with capacity to accept the material and applies to covered products as stated in subsections (a) through (d) of this section. (a) If the material is fully commingled, the distance measured is to the nearest commingled recycling processing facility with capacity to accept the material. (b) If the material is collected separately (for example glass) or is not fully commingled and requires further sorting or processing before being received by a responsible end market, then the distance is measured to the nearest processing or sorting facility that will prepare the material and send it to a responsible end market. (c) If the material is collected separately and in a condition that would allow it to be received directly by a responsible end market without additional processing, then the distance is measured to the nearest responsible end market. (d) If a separated material or a group of materials is initially taken to a commingled recycling processing facility or other processing facility and the material requires additional processing or sorting before it can be accepted by a responsible end market, then the distance is measured to the nearest initial commingled recycling processing facility or other processing facility. The producer responsibility organization is not responsible under this rule for paying the transportation costs associated with the transport of material from the initial commingled recycling processing facility or other processing facility to additional processing facilities or a responsible end market. (4) Costs to receive, consolidate, load and transport covered products include, but are not limited to, purchasing and maintaining equipment, signage, and other similar costs of operating the recycling depot or recycling reload facility not already covered under other sections of ORS 459A.860 through ORS 459A.975. Costs incurred before the receiving of covered products at a recycling depot or reload facility are not eligible for compensation unless noted elsewhere. (5) Transportation costs include administrative costs related to the activities described in ORS 459A.890(2). Administrative costs include, but are not limited to, costs related to staffing and the hiring and managing of staff. (6) Transportation costs do not include the proportion of a shipment of recyclable material that is not covered products, as provided by ORS 459A.890(2)(b)(C). Costs that are not eligible for payment under ORS 459A.890(2)(b)(C) will be determined as stated in subsections (a) through (c) of this section. (a) Until completion of the study described in subsection (b) of this section, a producer responsibility organization will use data from the 2023 Oregon Solid Waste Characterization and Composition Study to determine the proportion of a shipment of recyclable material that is not covered products. (b) Starting in 2027, and at least once every five years thereafter, a producer responsibility organization must fund a study to determine the proportion of collected recyclable material that is covered product and is eligible for transportation costs reimbursement. The study will include the following: (A) The study will provide statewide averages for the proportion of covered material in commingled recyclable material, recyclable material that is collected separately and recyclable material that is not fully commingled. For the latter two categories the study may provide different averages for different materials as appropriate. (B) Study protocols and timing must be included in the producer responsibility organization’s program plan and will be approved as a part of plan approval under ORS 459A.878. If multiple producer responsibility organization program plans are approved by DEQ, the producer responsibility organizations’ coordinating body will undertake one study and submit a joint study protocol to DEQ for approval in the manner provided by DEQ. (C) Upon completion of a study, a producer responsibility organization, or coordinating body, will use the statewide averages from the study to determine the proportion of a shipment of recyclable material that is not covered products. (c) If a local government, a local government’s service provider or a producer responsibility organization believes that the local commingled recycling stream has a substantially different proportion of recyclable material that is not covered products compared to the statewide average, then a local government, a local government’s service provider or a producer responsibility organization may, at their own expense, conduct a study to better determine the proportion of recyclable material that is not covered products in the local collected commingled recycling stream. The party conducting the study will provide the other parties and DEQ at least 30 days to comment on study methods. The dispute resolution process in the producer responsibility organization’s approved program plan shall apply to any dispute between the producer responsibility organization, or a coordinating body, and the local government or local government’s service provider regarding a study performed under this subsection. Upon completion of the study and subject to dispute resolution and DEQ concurrence, the averages determined in the study will be used by a producer responsibility organization, or a coordinating body, and the local government or local government’s service provider that performed the study. (7) Transportation costs include the cost to receive, consolidate, and load covered products. If a shipment of material contains both covered products and material that is not covered products, the cost a producer responsibility organization, or a coordinating body, must pay to receive, consolidate and load are the costs associated with the covered product. If such costs associated with the covered products cannot be separated from such costs associated with material that is not covered product and a producer responsibility organization and a local government or local government’s service provider cannot otherwise agree on the payment of such costs, the producer responsibility organization, or coordinating body, will pay the total cost to receive, consolidate and load the material reduced by the estimated proportion of the material that is not covered product. (8) For purposes of this rule, material is not fully commingled if a load of recyclable material intended to be transported to a commingled recycling processing facility contains some but not all the material listed on the Uniform Statewide Collection List. Statutory/Other Authority: ORS 459A.975 & 468.020 Statutes/Other Implemented: ORS 459A.860 - 459A.975 History: DEQ 18-2023, adopt filed 11/17/2023, effective 11/17/2023