Diversion Incentive Fee. The Diversion Incentive Fee is the per-ton fee paid to Contractor by Authority for Diversion of additional tons above the Diversion Guarantee. Diversion Penalty Fee The Diversion Penalty Fee is the per -ton fee (as specified in Section 8.02 c) paid to the Authority by the Contractor’s failure to meet the Diversion Guarantee. Divert (or Diversion) means to prevent Recyclable Materials from Disposal at landfill or transformation facilities, (transformation facilities include facilities using facilities using incineration, pyrolysis, distillation, gasification or biological conversion methods except as provided in Section 6.07.b.) through source reduction, reuse, recycling and composting, as provided in Section 41780-41786 of the Act, as such Act may be hereafter amended or superseded. Diversion is a broad concept that is to be inclusive of material handling and processing changes that may occur over the Term including, but not limited to, changes in Standard Industry Practice or implementation of innovative (but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease costs and/or are for other reasons deemed desirable by the Authority. Effective Date means the date on which this Agreement is executed by all parties. Execution (or Execute or other variations of) means to perform what is required or provided by, or to complete. Exhibit(s) means any or all of the attachments to this Agreement as of the Effective Date or as amended or added at any time during the Term. Extension (or Extend) means to cause the end date of this Agreement to be beyond the Base Term through an amendment of this Agreement as provided for in Section 4.02.
Diversion Incentive Fee. The Diversion Incentive Fee is a per-ton fee paid to Contractor by the Authority for Diversion of additional tons above the Diversion Guarantee specified in Section 6.03b.a Diversion baseline defined as 12% for the first year of the Term, increasing by 1% per year, i.e. year 2 = 13%, year 3 = 14%, until year 15 = 26%. Contractor shall be paid $10 for each ton diverted in excess of this Diversion Guaranteebaseline measured on a quarterlyn annual basis for the period from the first day of the month in which the first amendment to this contract is approved.January 1, 2010. Contractor shall submit request for payment including all supporting calculations and documents on a quarterlyn annual basis consistent with quarterlyannual measurement. Authority will review Contractors request for payment and process accordingly. The Diversion Incentive Fee shall be adjusted annually beginning January 1, 2009 consistent with 8.03 at the annual percentage increase to overall Adjusted Service Fee Rate.
