Tara Hemmer: Sure. The biggest issues that we have been seeing we’re really in two key categories. The first is on utility interconnects, and we’re making progress on utility interconnect for us. That’s on the electrical side and then also getting the connectivity to be able to push the gas into the system. And so we’ve been working hard on making sure that we have those agreements in place. And then the second piece, it’s construction related, but I would put it more into the permitting category, and we’ve made a lot of progress on obtaining many of our permits that are necessary on the RNG side. So from a supply chain perspective, we’ve done a fantastic job of really making sure that we have built slots on equipment’s for both our recycling business and our renewable energy business. So that’s less of a risk.
Jim Fish: Yes Tobey, we talked about yesterday, the single biggest plan, and I mentioned it in my remarks, which is Fairless in Pennsylvania. That is our single biggest plan that we will build in the 20 and to give you some perspective, that plant was originally, originally scheduled for opening in the second quarter, beginning of May. And it’s pushed a little bit. And right now, it looks like it’s scheduled to open at the end of June. So it’s pushed a couple of months. But I think that gives you a good feel for what’s happening here. We’re not talking about pushing things back 12 to 15 months, they’re moving in kind of 60-day – 30- to 60-day increments, but it is having some effect on CapEx, for example, but I think the fact that we’ve got 40 active recycle and RNG plants in 2024, you’ll have quite a few more – you’ll have another big chunk in 2025. And then we get to 2026, we’re very comfortable with the end number.
Jasper Bibb: That super helpful. Thanks for taking my questions.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jerry Revich from Goldman Sachs. Your line is open.
Jerry Revich: Yes. Hi. Good morning everyone.
Jim Fish: Good morning Jerry.
Devina Rankin: Good morning, Jerry.
Jerry Revich: I’m wondering, if you folks can talk about the opportunity for lower R&M and what that could mean for you folks. Really interesting in the quarter to see your operating expenses essentially flattish, given John, the inflation items that you mentioned earlier. And so as you folks get the truck deliveries online, et cetera, how much further could the cost structure improve off of the strong levels we’re seeing in 3Q?
Devina Rankin: Yes, Jerry, I think it’s a great point and John and I have spoken a lot about this. I think one of the best indicators is when you look at the year-over-year increase that we have been seeing in the first half of the year for repair and maintenance costs, that was 14.1% in the first six months of the year. In the third quarter, that was up only 6.9% as the deliveries that we’ve talked about finally are getting on the road and we’re able to get the older assets off the street the team members are having to run much longer than our plans because we hadn’t gotten or a lot of trucks for the last 18 months or so. So when we look at sustainable levels of repair and maintenance increase, we think that there’s, some good tailwinds coming in the fourth quarter and into early 2024. And when you just look at that 1 metric alone, I think it’s a great indication.
Jerry Revich: Devina, thank you. Just to clarify, so it sounds like it could be not just lower inflation going forward. It sounds like it could actually be a decline in spending, if I understood your comments correctly?
Devina Rankin: No. What we’re hesitant to say is a decline in spend, because while there are some parts inflation places where we’ve actually seen costs going backward and that should give us some benefits. There are places where we’re just still catching up with regard to making sure that we’ve got the right assets in the right places to service the customers. We do think in the first half of next year, you could see effectively flatter cost in repair and maintenance. And that’s what we’re working towards.
John Morris: I think the other benefit, Jerry, is just a little bit more detail than the M&R question, but it’s not just M&R. We’re also seeing it show up in other parts of the business, in particular, in labor and efficiency, right, because when we’re putting newer trucks on the street that obviously benefits in other places just as opposed to maintenance and repairs. And we’re seeing that show up in efficiency.
Jerry Revich: Super. And can I shift gears, and Tara ask you, if you don’t mind. How are you thinking about the allocation of gas that’s coming online towards the transportation versus utilities? So it looks like based on the EPA October report, there’s about a $10 million and BTU shortfall towards transportation applications. And so, as you think about where you’re putting the gas to use, how does satisfying and making sure that, that market gets enough supply factor into your decision versus the allocation plan that we spoke about at the sustainability today?
Tara Hemmer: Yes. I mean we’re still targeting and using that framework that we had in place, really thinking one year out having 70% to 90% of our volume locked up two years out in that 40% range and then three years out, 10% to 30%. I think what we have to be clear about is when we think about that, it is transportation versus voluntary market, but you can also do fixed priced or longer term deals in either market, and we’re going to be accessing both of those. If you think about our portfolio for 2024, one thing that’s important to note is we had done some deals in the voluntary market. A great example is we did one with a large utility 20-year agreement with pricing that’s north of $20 a ton – sorry, $20 per MMBtu, old garbage gallon, I mean, at $20 per MMBtu.
