White Paper - Container (Bottle) Deposit Laws April 2016 A bottle redemption program often referred to as a “bottle bill” requires an additional fee on beverage containers, such as bottles and cans, at the time of purchase. These fees work like a deposit and usually are totally or partially recovered by individuals who recycle these containers. Increased recycling reduced greenhouse gas emissions, litter, and waste to landfills are often cited as benefits to bottle bill programs. History/Purpose In the 1950s and 1960s, refillable bottles could be returned to the store for a 5-10 cent refund per bottle. These “deposit” bottles were eventually phased out around the country and replaced by beverage containers without a deposit. However, many states reintroduced this deposit system in the 1970s and 1980s with a slight variation. They no longer used refillable bottles. Instead, the programs focused on re-routing highly valuable aluminum, plastic and glass beverage containers from municipal landfills to recycling centers. Today’s programs operate by charging a 5-10 cent fee on beverage containers that can be recouped when consumers return the empty bottle. The deposit is charged by the distributor to the retailer and then passed on to the consumer. Once the bottles are returned, consumers may be reimbursed by retailers or redemption centers. Retailers or redemption centers are then reimbursed by distributors. Typically, these programs were implemented with a litter reduction goal in mind. Bottle bill states report an average decrease in beverage container litter of 78 percent, and an average decrease in overall litter of 39 percent when the programs were first implemented. Increased recycling and a reduction in waste are two additional goals associated with the bottle bill program. The U.S. Environmental Protection Agency (EPA) reported that in 2008, Americans generated about 250 million tons of trash and recycled 83 million tons, or 33.2 percent of this material. Total solid waste generation increased from approximately 150 million tons to 250 million tons between 1980 and 2008. However, the amount of waste sent to landfills is still approximately the same due to improved recycling and waste combustion programs. The recycling rate increased from less than 10 percent in 1980 to over 33 percent in 2008. Additionally, waste combustion programs increased from non-existence in 1980 to handling 12.6 percent of waste generated in 2008. This makes a reduction of overall disposal of waste in a landfill from 89 percent of the amount generated in 1980 to 54 percent of municipal solid waste (MSW) in 2008. Page 1 of 5 Currently 10 states have container deposit laws. A new one hasn't been implemented since 2005. The states with container deposit laws consistently recycled bottles at rates of 66 percent to 96 percent. The bottle bill states make up only 28 percent of the U.S. population but they recycled 46 percent of the containers recycled in 2010, the most recent year of the comprehensive study on bottle bills by the association pushing for deposit laws, the Culver City, Calif.-based Container Recycling Institute (CRI). New York 5 cents Massachusetts 5 cents California 5 cents less than 24 oz; 10 cents 24 oz or larger Connecticut 5 cents Oregon 5 cents Vermont 15 cents on liquor containers; 5 cents all others Michigan 10 cents Hawaii 5 cents Iowa 5 cents Maine 5 cents Click here for more detailed information on the 10 bottle bill states. History of Bottle Bills in Florida Florida experimented with an Advance Disposal Fee (ADF) program originally passed in 1988, implemented October 1, 1992, and restructured in 1993 to use competition to improve recycling markets. The ADF imposed a penny fee per container on certain cans, bottle, jars, and beverage containers with recycling rates of less than 50 percent. It then allowed exemption from the fee for companies that met recycling or recycled content goals. The idea was to improve recycling rates and create competition between companies to meet the recycling goals. The Legislature allowed the ADF to sunset October 1, 1995, after three years of implementation. The 2009 Florida Campaign The Florida Beverage Container Deposit Act was introduced on January 19, 2009, establishing a 20 or 30 cent deposit on almost all beverages sold in the state. The bill died in committee on May 2, 2009. Bill Number and HB 435, Florida Beverage Container Deposit Act. Name click here for bill text Primary Sponsor Kevin J.G. Rader Containers Covered any sealed, individual container made of glass, aluminum, steel, bimetal, or plastic, in sizes of at least 6 fluid ounces but no more than 1 88 gallon or 3.8 liters Page 2 of 5 Beverages Covered All ready-to-drink beverages, excluding milk Deposits 6-25oz: 20¢ 25oz-1gal: 30¢ Handling Fees 20% of deposit, paid by distributor to redemption center or dealer Other Fees / Taxes None Reclamation System Return to dealer or redemption center Unredeemed Deposits Retained by distributor Progress Jan 19, 2009: HB 435 Filed Feb 6, 2009: Referred to Agriculture & Natural Resources Policy Committee Mar 3, 2009: First Reading May 2, 2009: Indefinitely postponed and withdrawn from consideration, died in committee. The 2011 Florida Campaign In September 2011, the Florida Senate issued an interim report on the merits and drawbacks of deposit systems, and detailed alternative programs used in Florida and other states. The report did not recommend in favor of or against a refund system for Florida. The report concluded – “The Florida Legislature will need to determine how to prioritize recycling efforts and which approach is most applicable in our present economic and political climate. In considering if a bottle bill program is the right choice for Florida, the Legislature would have to consider carefully the amount of the deposit to charge, which types of beverage containers to include, how to handle collections, and where to allocate unredeemed deposits. Florida may choose to increase recycling education programs since DEP reported that curbside recycling is available to 80 percent of single-family residences. Educational programs could focus on changing residents’ recycling habits and focus on higher-value beverage containers, such as aluminum or glass. Page 3 of 5 Due to the economic downturn, now more than ever, bottle bill programs need to balance the needs of businesses within what the communities’ budgets can accommodate. Improving recycling rates involves many variables, and oftentimes, one size does not fit all.” The Florida Senate Click here for the full Interim Report 2012-122 September 2011 Committee on Environmental Preservation and Conservation Opposition to Bottle Deposit Laws Bottle bill opponents include beverage container manufacturers, soft drink bottlers, beer, wine and liquor distributors and retail grocers. As ‘new age’ drink containers are targeted for inclusion in existing bottle bills, juice, sports drink and bottled water manufacturers have joined the antibottle bill forces. A new group of bottle bill opponents that has emerged in recent years consists of waste haulers and owners of materials recovery facilities who want the revenue from the valuable aluminum cans that are recovered through bottle bills. Huge sums of money have been spent to defeat ballot initiatives over the past twenty years, with industry opponents outspending proponents by as much as 30:1. In 1996, $3 million was spent to defeat the Measure 37 expansion initiative in Oregon. Bottle bills have been stalled in state legislatures and the U.S. Congress for over two decades, seldom getting to the floor for a full vote. They are generally defeated in small committees, often by a narrow margin. These defeats are due to the tremendous influence the well-funded, politically powerful beverage industry lobby wields over our elected officials. A 1996 report by the U.S. Public Interest Research Group revealed that the beverage industry spent more than $14 million dollars in campaign contributions aimed at defeating the National Bottle Bill between 1989 and 1994. Members of a U.S. Senate Committee who voted against the National Bottle Bill in 1992 received an average of 75 times more in anti-bottle bill PAC money than those who voted in favor of the bill. Opponents - Opponents of bottle bills include, but are not limited to, Anheuser Busch The Coca Cola Company Pepsi-Cola Company Can Manufacturers Institute Distilled Spirits Council of the United States Food Marketing Institute International Bottled Water Association National Beer Wholesalers Association Grocery Manufacturers Association National Food Processors Association National Grocers Association American Beverage Association Page 4 of 5 Many of the arguments that opponents level against bottle bills try to minimize the bottle bills' effectiveness and maximize their costs. However, the arguments in favor of bottle bills put these industry "myths" into perspective. Click here to read these arguments. Supporters - Bottle bills have historically enjoyed widespread public support on a statewide and national level. Supporters of bottle bills include, but are not limited to – Defenders of Wildlife Garden Club of America League of American Bicyclists League of Women Voters of the U.S. National Association of Counties National Audubon Society National League of Cities National Parks and Conservation Assoc. National Wildlife Federation Natural Resources Defense Council Rails to Trails Sierra Club Trout Unlimited U.S. Public Interest Research Group New bottle bills receive much public favor, and most respondents to statewide polls supported expansion of their existing deposit laws. Organizations, authorities, and citizens from all walks of life have expressed support for bottle bills over the years. Numerous polls have shown most of the public to be in favor of bottle bills. Click here to read about support for bottle bills. Summary I am unable to find reference to any movement to advance a bottle redemption program in Florida more recent than the Senate discussion in September 2011. Page 5 of 5