Beverage container redemption rates in the majority of U.S. states with container deposit laws (aka bottle bills) did not rebound in 2021 after dramatic drops exacerbated by the COVID-19 pandemic in 2020, according to data released today by the Container Recycling Institute (CRI), a national nonprofit recycling industry authority. CRI compiled data from the deposit states (there are 10 total) for which statistics are currently available. Overall findings include the following (see the chart with full data at the end of this article):
According to CRI President Susan Collins, the 2020 decreases generally resulted from the temporary suspension of the requirement (or of enforcement of the requirement) that retailers accept back empty deposit beverage containers; the decision by some redemption centers to temporarily close; and generally resulted from the temporary suspension of the requirement (or of enforcement of the requirement) that retailers accept back empty consumers’ adherence to shelter-in-place orders. (Details on the impact of COVID-19 on deposit states’ beverage container redemption policies is available on CRI’s Bottle Bill Resource Guide website.)
Michigan is the only deposit state that solely uses return-to-retail, with no redemption centers. Because of this, the state’s suspension of the retailer beverage container takeback requirement from late March to mid-June 2020 meant a complete shutdown of the deposit program, leaving consumers with no options to redeem their bottles and cans. The state re-established the program in phases, and a requirement for full resumption of retailer collection activities went into effect in October 2020, with some restrictions permitted to comply with health and safety protocols.
The two states with the largest redemption rate drops from 2019 through 2021 – Michigan (14%) and Massachusetts (12%) – rely solely and heavily, respectively, on return-to-retail for deposit refunds. In late June 2021, the Michigan Department of Treasury issued a reminder to retailers with bottle return facilities of the requirement to take back beverage containers, with no COVID-related restrictions – suggesting concern over compliance. In Massachusetts, it is estimated that currently only one-quarter of the retailers required to accept back bottles and cans are doing so.
Collins indicated that the uptick in redemption rates in New York and (based on partial data) in Oregon demonstrates the importance of robust bottle bill infrastructure that includes multiple, convenient ways to return beverage containers: return-to-retail (both with and without reverse vending machines, or RVMs); redemption centers; and bag drops, which proved popular even during 2020 due to their very quick, user-friendly and low-contact nature. Oregon, New York and Maine offer all three options (with bag drops in New York mainly available in the upstate area). “Deposit return infrastructure that makes it easy to obtain refunds for empty bottles and cans clearly leads to higher redemption rates,” Collins said. “This ensures that more consumers get their deposits back and more recycled material gets into the supply chain, and that we see reductions in litter, marine debris, energy use and greenhouse gas emissions.”
She continued, “It’s clear that a higher deposit makes a significant difference, given that in the mid-1970s – around the time several deposit states enacted their programs – a nickel was worth about what 27 cents is today. When Oregon’s dime deposit went into effect in 2017, the redemption rate climbed from 64% (in 2016) to 86% in 2019. A nickel is no longer the financial incentive it once was for consumers to return beverage containers instead of throwing them away or littering them.”
Massachusetts currently sits last among bottle bill states with a redemption rate of just 38%, and only 40% of beverage containers covered by a deposit. Legislation introduced in 2021 – now before the
commonwealth’s Senate Ways and Means Committee – would expand the bottle bill to include more types of beverage containers and increase the deposit from 5 cents to 10 cents. Even Massachusetts’ disappointing redemption rate is higher than the average U.S. recycling rate of 35% for aluminum, glass and PET plastic bottles and cans combined. According to CRI’s Beverage Market Data Analysis (using 2019 data), beverage containers on deposit in bottle bill states have a nominal recycling rate of 65%, compared to 25% for those not on deposit. Collins said the pandemic’s impact compounded a trend of declining redemption rates over the past several years, with most deposit states at or near historic lows because of the failure to update these programs to offer a higher deposit, cover more beverage types (particularly non-carbonated, which have grown in popularity) and create more accessible, streamlined return options.
However, she pointed to a positive development that provides an example of improvements other bottle bill states can make: In 2021, Connecticut passed the most significant bottle bill expansion legislation in the U.S. in about a decade. The upgrades, with a phased implementation scheduled for 2023-2024, include adding several beverages not covered by the current law (for a 13% increase in overall beverage unit coverage); raising the deposit value for all containers in the program from a nickel to a dime; increasing the handling fee paid to retailers/redemption center operators; and requiring more retailers to provide RVMs for beverage container returns.
Other good news is coming from California, where in May 2022 the State Senate passed a bill to add a deposit to wine and distilled spirits (liquor). (The State Assembly still must vote on it.) A CRI analysis
indicates that, if implemented, this legislation would result in the recycling of more than half a billion additional bottles and cans annually. Collins said beverage container redemption rates must reach at least 85% to be considered “sustainable.” “For the sake of our climate, our oceans and our future generations, we must do more to collect high-quality recyclable bottles and cans that can be used to produce new products. Beverage container deposit laws offer a proven method to achieve this, so we must continue to add and expand these programs as we all work together to create a more circular economy.”