Transportation Cost Recovery Adjustment
Transparent transportation pricing tied to a publicly available government diesel fuel index.
Transportation Cost Recovery Adjustment
At OnSite Waste Technologies, we are committed to providing healthcare organizations with transparent, predictable, and fair pricing.
Like many transportation dependent service providers, a portion of our operating costs are directly impacted by changes in fuel prices and transportation related expenses. To help offset extraordinary fluctuations in these costs while maintaining reliable service, OnSite utilizes a Transportation Cost Recovery Adjustment, also known as TCRA.
The TCRA is tied to the U.S. Department of Energy’s National Average On Highway Diesel Fuel Price Index and is adjusted periodically based on changes in diesel fuel costs relative to a baseline established on January 1, 2026.
Unlike many industry providers, OnSite’s TCRA is designed to recover only a portion of increased transportation costs and may decrease when fuel prices decline.
Source: U.S. Department of Energy National Average On Highway Diesel Fuel Price
Transportation Cost Recovery Adjustment Schedule
| Diesel Price DOE | TCRA |
|---|---|
| $3.52 and below | 0.00% |
| $3.53 - $3.64 | 1.00% |
| $3.65 - $3.78 | 2.00% |
| $3.79 - $3.92 | 3.00% |
| $3.93 - $4.06 | 4.00% |
| $4.07 - $4.20 | 5.00% |
| $4.21 - $4.34 | 6.00% |
| $4.35 - $4.48 | 7.00% |
| $4.49 - $4.62 | 8.00% |
| $4.63 - $4.82 | 8.50% |
| $4.83 - $5.02 | 9.00% |
| $5.03 - $5.22 | 9.50% |
| $5.23 - $5.42 | 10.00% |
| $5.43 - $5.62 | 10.50% |
If the U.S. Department of Energy National Average On Highway Diesel Fuel Price is $4.62 per gallon, the applicable Transportation Cost Recovery Adjustment would be 8.00%.
Additional Diesel Price Increases
For diesel prices exceeding $5.62 per gallon, the Transportation Cost Recovery Adjustment will continue to increase by 0.50% for each additional $0.20 increase in the U.S. Department of Energy National Average On Highway Diesel Fuel Price.
Likewise, if diesel prices decline, the applicable TCRA will decrease using the same methodology, adjusted and applied on a monthly basis.
Frequently Asked Questions
What is the Transportation Cost Recovery Adjustment?
The Transportation Cost Recovery Adjustment is a variable charge designed to offset a portion of increased transportation costs resulting from significant changes in diesel fuel prices and transportation related expenses.
Why is OnSite implementing a TCRA?
Transportation expenses represent a significant component of healthcare waste management services. Rising diesel fuel prices, transportation surcharges, tolls, and subcontractor transportation costs can materially impact service delivery costs. The TCRA helps ensure continued service reliability while maintaining fair and transparent pricing.
How is the TCRA calculated?
The TCRA is based on the U.S. Department of Energy National Average On Highway Diesel Fuel Price Index. A baseline diesel price of $3.52 per gallon was established on January 1, 2026. As diesel prices increase above that baseline, the corresponding TCRA percentage is applied according to the published schedule.
Where can I view the diesel fuel index?
You can view the DOE weekly national diesel fuel pricing information here: www.eia.gov/petroleum/gasdiesel
How often is the TCRA updated?
OnSite reviews DOE diesel fuel pricing monthly and updates the TCRA as necessary.
Can the TCRA decrease?
Yes. The TCRA automatically increases and decreases based on the DOE diesel fuel index. If diesel fuel prices decline, the TCRA will decline accordingly. If diesel fuel prices return to or below the baseline level of $3.52 per gallon, the TCRA will return to 0.00%.
Is the TCRA permanent?
The TCRA remains tied directly to transportation cost conditions and may increase, decrease, or be eliminated based on future market conditions.
Does OnSite profit from the TCRA?
The TCRA is intended to offset a portion of transportation related cost increases and maintain service continuity. OnSite continues to absorb a significant share of transportation cost inflation and transportation related operating expenses.
How does OnSite’s TCRA compare to industry practices?
Many transportation and waste management providers utilize fuel surcharges, environmental recovery fees, service cost recovery fees, or similar transportation related adjustments. OnSite’s TCRA is designed to be transparent, predictable, and tied directly to a publicly available government index.
Which services are subject to the TCRA?
The TCRA may apply to transportation based services including Regulated Medical Waste Transportation, Pharmaceutical Waste Transportation, Sharps Waste Transportation, Document Destruction Transportation, and other transportation dependent services.
Commitment to Transparency
OnSite Waste Technologies believes customers deserve pricing that is transparent, understandable, and tied to objective market conditions. The Transportation Cost Recovery Adjustment is based on a publicly available government index and is designed to increase and decrease with transportation cost conditions rather than remain fixed regardless of market changes.
Our goal is to continue delivering safe, compliant, and sustainable healthcare waste solutions while maintaining long term pricing stability and service reliability for our customers.
Questions?
Customers with questions regarding the Transportation Cost Recovery Adjustment may contact OnSite Waste Technologies Customer Support at service@onsitewaste.com or by phone at (949) 490 1350.