Changing the Redemption Industry for the better

Empire State Community Redemption Center Association (ECRC) is fully supportive and prepared to fight for a new Bottle Bill.

We are hopeful that the new legislation will include popular non-carbonated beverages (such as tea, coffee, juices and sports drinks), wine, spirits, and hard cider. The legislation would also Increase the redeemable deposit value to 10-cents and the handling fee from 3.5 cents to 7 cents. These changes will ensure that redemption centers and redeemers have the ability to grow and prosper in a competitive economy. To do so fairly, New York also needs to make the program more convenient and equitable for all New Yorkers.

Ahead of the program’s 40th anniversary, policymakers should modernize this effective program for the next 40 years so that it can grow New York’s “circular economy.”

Modernization of the 40-year-old Bottle Bill will further enhance litter control, help stimulate recycling efforts, stimulate local economies, and support local businesses struggling against inflation and increased costs to businesses.

After its four-decades of success, we believe that the Bottle Bill should be modernized.

Expand the range of beverage containers covered by the Bottle Bill. New York would not be the first state to include non-carbonated beverages, wine, and liquor. Maine’s Bottle Deposit Law includes all containers covered in New York’s existing Bottle Bill plus wine, spirits, hard cider, and most non-carbonated beverages. Maine has a 5-cent deposit for all beverages, except wine and liquor, which have a 15-cent deposit. Other states with Bottle Deposit Laws that include non-carbonated beverages include California, Hawaii, and Oregon.

Increase the amount of the deposit to a dime. The impact of the nickel deposit that was approved in 1982 has eroded over time. A mere inflation update would likely make that deposit nearly fifteen cents. And in order to ensure that those who wish to redeem their deposits can easily do so, we also recommend that a portion of the additional revenues collected by the state be used to ensure better compliance and enhance access to redemption entities. Michigan and Oregon have already increased their deposit to 10 cents, leading to an immediate increase in recycling redemption rates.

New York’s recycling system is superior to many others due to its curbside and redeemable container programs working in tandem. States that have a bottle deposit are 46% more likely to recycle PET plastic bottles than states that do not. Not only would the expansion of the state’s Bottle Bill increase recycling rates and make New York’s environment and communities cleaner, it would also help municipal recycling programs that are currently facing a recycling crisis.

Municipal recycling programs are particularly struggling with glass containers in their recycling streams. When glass breaks in curbside containers it can render much of the other materials unrecyclable for the municipality, or “contaminated”. The expansion of the Bottle Bill to include wine, spirits, and hard cider would take a significant proportion of the containers that municipalities are struggling with off their hands.

Even when recyclable materials are not contaminated by broken glass, the costs of recycling containers that are not covered under the state’s Bottle Bill are too high for many municipalities. For example, the costs associated with collecting and processing PET plastic bottles and glass per ton are higher than revenues per ton for scrap material. Expanding the Bottle Bill would reduce or eliminate these costs for municipal programs by creating a financial incentive in the form of a deposit for consumers to return containers and an obligation (the law) for retailers to accept these containers, relieving the burden on local government recycling programs.

Additionally, the increased deposit would provide an essential lifeline to redemption centers struggling to succeed and grow. When the Bottle Bill was originally passed in 1982, the state minimum wage was $3.82. By the end of the year 2021, the state minimum wage in upstate will increase to $13.20, with $15 being the minimum in the rest of the state. However, the state’s bottle deposit, the main income stream for our redemption centers and redeemers, has remained stagnant over the past four decades. With businesses facing ever-increasing wages and rents, redemption centers face a major obstacle for growth.

The Bottle Bill has been an economic boon for New York. Since it’s passage, the bill has created at least 4,317 jobs in the state. Adding containers and increasing the deposit will create an additional 4,145 new jobs and benefit redemption center workers. Investing a portion of the additional revenues collected by the state to ensure better and more uniform compliance and expanded access to redemption opportunities will enhance equity and allow currently underserved communities to more fully benefit from this historically effective law.