December 28, 2013

To Our Valued Customers,

On November 25, 2013, PA Governor Tom Corbett signed into law House Bill 1060, Pennsylvania's most comprehensive piece of state transportation legislation in decades. With this new legislation Titles 74 (Transportation) and 75 (Vehicles) of the Pennsylvania Consolidated Statutes were substantially amended. House Bill 1060 calls for an increase in base taxes on all gasoline and diesel fuel sold in the Commonwealth of Pennsylvania.

Governor Corbett has stated that this transportation funding legislation will keep Pennsylvania safe and economically competitive by investing an additional $2.4 billion in new taxes into the Commonwealth's maintenance of roads and bridges by the fifth year of the plan. Also, it will provide funding for transit systems across the Commonwealth.

This legislation affects you directly as a consumer because it allows the Pennsylvania Department of Revenue to increase base line fuel taxes on all wholesale oil distribution. As you may be aware, fuel prices continue to be extremely volatile across the country. While our company has continued to improve its route efficiency and fuel consumption by utilizing GPS routing, bioblended fuels and alternative fuel options, this bottom line tax increase by the Pennsylvania Legislature is greater than the savings created by Leck's significantly improved operation efficiencies.

Many of our customers are shocked to find out that the average waste truck only averages 4.2 miles per gallon of fuel. While this may seem inefficient, we have taken every step possible to increase those averages. We recently switched to a B-2 blend of biodiesel. This allows for 2% of the fuel to be blended with alternative, non-petro additives. In addition, we have partnered with Hydrogen Power Systems, a California based company that increases fuel burning in our trucks by applying hydrogen to the combustion process.

Despite the significant operational changes that we continue to do to our fleet vehicles, the implementation of PA House Bill 1060 directly impacts all aspects of our business. Therefore, we have determined that a line item for the increase in the fuel tax must be added to our customer accounts. This PA BILL 1060 fee will be separate from our base rate and will be shown as a separate entry on all invoices beginning December 31, 2013.

Please know that we have explored every viable option to keep our fuel cost as low as possible and we regret having to pass this tax onto you, our valued customers. We believe that this solution provides the fairest means of compensation for the fuel tax changes for all parties.

If you would like additional information on PA House Bill 1060, please visit Governor Corbett's website or click here for a detailed video on this newly enacted bill. We value you as our customer and thank you for your continued business.

Sincerely, George Leck and Son Inc. Waste Services