By Jared Curtis

On Jan. 15, Gov. Chet Culver raised eyebrows when he proposed an increase for bottle redemption. Wanting to increase the current deposit of 5 cents to 10 cents, Culver stated the plan was “practical and workable.” He proposed that 1 cent would go to local recyclers, 1 cent to protect our environment and the other 8 cents would be returned to the consumer, “where it belongs.”

“I believe it’s the right thing to do,” Culver said in his condition of the State speech. “That’s why I’m committed to working with legislators, grocers, retailers, redemption centers, environmental groups, conservation groups and consumers to get the bill signed into law as soon as possible.”

His idea sounded appealing to the recycling public, but not so good to the people it would affect, like the grocers and redemption owners. Just 17 days later, the governor decided to back off from his plan to raise the deposit. So what happened?

“The Culver bottle tax is another example of the Democrat’s tax increases on middle class Iowans. It’s nothing more than a money grab by Gov. Culver to help him find a way to pay for the $1 billion spending increase he’s presiding over,” said Iowa House Republican Leader Christopher Rants. “Instead of managing state spending, he’s looking for ways to increase taxes. There’s this bottle tax, there’s the tax increase on Iowa’s largest employers and there’s the plan to steal the balances of unspent gift cards. It’s actually pretty scary.”

Even with the recent change to his proposed bill, Culver is still determined to modernize former Gov. Robert Ray’s bottle bill, adding the proper changes Culver said it needs.

“It’s just another tax, plain and simple,” said Larry Patterson, owner of Patterson Redemption Center about Culver’s proposed deposit increase. “You pay a deposit on a car, a house and hotel rooms, but you get that back. When you’re paying 10 and getting 8 [cents] back, that’s not a deposit, that is a tax.”

Proponents, who say the Bottle Bill has worked for so many years, wonder whether we really need a change.

“The bottle bill was never intended to be a revenue source for the state,” said Jerry Fleagle, president of the Iowa Grocery Industry Association (IGIA), in a released statment. “At the time, people were concerned about cans and bottles filling Iowa’s ditches. But times have changed. We’re the ‘Big Gulp’ generation. Research shows that only four percent of beverages in aluminum containers are consumed in cars while 88 percent are consumed at home or in the office. Glass bottle rates are even more telling, 91 percent are consumed at home or on the premises of a restaurant or bar. Knowing that, doesn’t it make more sense to expand curbside recycling options? That allows people to recycle their containers in the places they consume them.”

To work with and cooperate with the governor, the Iowa Grocery Industry Association made the first move in trying to align on issues that would directly impact both Iowa consumers and retailers. The group invited the governor to address its membership at its annual legislative forum.

“In his Condition of the State address, the governor said he stood ready to work with retailers and small business owners to create workable solutions on the bottle bill and other issues,” Fleagle said. “Our forum is the perfect opportunity for Gov. Culver to make his case directly to the people most impacted by his proposals.”

The IGIA has strongly encouraged expanding curbside recycling options, rather than further complicating or expanding Iowa’s current recycling program.

The Bottle Bill

In 1972, The Iowa Legislature passed the fifth of 10 bottle deposit laws in the country, one that would affect people nationwide as a way of deterring and controlling the litter problem.

“People don’t remember what the ditches used to look like,” said former Gov. Robert Ray. “There were bottles and trash three feet deep. It was a common occurrence to see people just throw trash right out their car window.”

Ray had seen other bottle bills passed in the Pacific Northwest and was intrigued about the idea of getting rid of trash and giving back to the community. Customers paid a 5-cent deposit on cans and bottles of soda, beer, liquor and wine. Then the customer could return the bottles and cans to redemption centers and get their 5 cents back.

“It wasn’t just about cleaning up the ditches, it was also about safety,” Ray said. “City employees were getting injured from debris flying up and truck blades breaking.”

Ray waited a year to see the progress of the northwestern states.

“I thought it was a great idea, but you needed an incentive. You can’t just tell people to stop doing something,” he said. “After looking at both ideas, tax and redemption, I knew redemption was the way to go.”

With a redemption program in place, Iowa now has one of the highest recycling rates (90 percent) in the country. With all the success, the bottle bill has not been updated, yet continues to show progress. When Ray signed the bill, the effect was immediate. Within a year, overall roadside litter was down 38 percent and it helped reshape Iowans’ ways of thinking and their attitude towards littering and recycling. It has also become one of Iowa’s most popular and effective laws, leading people to take responsibility for their actions. The 10 states with container deposit legislation recycle more than the other 40 states combined.

“I think it has done the job it was set out to do, and now I think people would like to see it expanded,” Ray said. “We are all selling the State of Iowa, and we should strive to make it look its very best.”

The new expansion

The majority of people in Iowa support the Bottle Bill. In a recent study, about 77 percent would like to see the bill expanded to include containers for drinks like juice, iced tea and sports beverages.

“After thirty years of keeping bottles and cans out of the ditches and landfills, I believe the time for expanding the bottle bill has come,” Culver said in his condition of the State address. “Number one, I propose we make more containers subject to the deposit including plastic and aluminum containers of bottled water, juice and energy drinks that more and more consumers are seeking out. Too many bottles and cans are non redeemable, this needs to be changed.”

After receiving criticism about raising the deposit, Culver came up with a few new ideas. In a statement released on Feb. 1, Culver changed his ideas on what the Bottle Bill really needs, including expanding it to include the 330 million water bottles, juice containers and sports drinks containers that are currently not covered. He also called for increased funding assistance to rural redemption centers that are struggling to survive and fully fund the Resource Enhancement Program (REAP) at $20 million.

“I have traveled the state and listened to Iowans’ thoughts and concerns on how we can expand and modernize the 30-year-old Bottle Bill,” Culver said. “Three things are clear: doing nothing is no longer an option. Iowans believe after 30 years it is time to modernize and I believe they are right. Second, it is time to expand the Bottle Bill to accurately reflect today’s consumption habits. Common sense tells us it does not make sense to provide an incentive to recycle a Coke bottle while letting water bottles end up in ditches and landfills. And third, rural redemption centers need help. I’ve always believed in telling Iowans directly what we’re going to do and listening to the people. The people of Iowa need redemption centers to bring back their bottles and cans.”

Even though Culver’s words are true, some people don’t see it that way.

“I think he knew the increase in deposit didn’t have a chance and if he wanted to expand the bill, he needed to drop that part,” Patterson said. “We already have a 90 percent return rate, which leaves not a lot of room to improve.”
But Patterson does agree with adding other types of bottles to the bill.

“I do think that part needs to go through. There are more water bottles than ever that weren’t around when the original bill was passed,” Patterson said.

One group, the Iowa Recycling Association, is looking for a change. The IRA is dedicated to advancing cost-effective and sustainable waste reduction and recycling activities to help improve the quality of life within Iowa communities.

“We are in favor of expanding container deposit legislation to include other containers. Updating Iowa’s law to include bottled water, iced tea, juice and sport drink containers makes a proven system even more effective. These beverages barely existed when the first bottle bill was passed, but now account for more than 21 percent of the beverage market,” said Iowa Recycling Association’s Executive Director Teresa Kurtz. “There are numerous beverages, packaged in the same containers as their carbonated counterparts, which did not exist when the bill was initially passed. Expansion to include these containers would modernize and strengthen the law.”

Iowans currently redeem 1.7 billion containers through the deposit system, capturing tons of valuable materials for re-manufacturing into new products, saving energy and reducing emissions.

“If we expanded to update and include other containers such as water bottles, tea, and sports drinks, we would see an increase of at least another 165 million containers each year,” Kurtz said.

Patterson is for the new bottles being added, but he knows it will lead to more work. Five years ago, 300 redemption centers were up and running in Iowa, now there are only 100.

“It’s just more volume for us,” Patterson said. “We sort everything by size and distributor, so I don’t know where we are going to put another 25 boxes to be able to sort all of the new deposit.”

No matter what happens, Patterson isn’t optimistic about the outcome. He worries about larger companies coming in and building massive redemption centers, hindering his and other local redemption centers’ business.

“It’s never going to change. There is always more money against something than for it,” Patterson said. “I fought it at first, but I gave up after I realized it’s a losing battle.

Other ideas

The IGIA has been promoting curbside recycling from the beginning, eliminating redemption in grocery stores, and in turn, eliminating dirty cans and bottles being brought back in stores.

“We offer clean and safe food, and it’s really just like garbage being brought back into the stores,” said Fleagle. “The law says the returns must be clean, but they are usually not. They attract rodents and bugs, and I’ve seen pictures of syringes in bottles that have been returned.”

The “It’s Easy to Recycle” program is a pro recycling education campaign that encourages consumers and businesses to recycle more materials and communities to expand curbside recycling options.

“Personally, I don’t support expanding the bottle bill to cover other containers,” Rants said. “As a kid, I worked in a grocery store and know the hazards of collecting containers. Instead, I support a vast expansion of curbside recycling.”

The last impact study conducted by the Iowa Department of Economic Development found that the fiscal benefits from Iowa recyclable materials processing activities was $3.9 million in local government revenue and $2.4 million in state government revenue. A 2001 study found that recycling related manufacturing operations sustain more than 23,000 jobs and generate nearly $3.33 billion in total industrial output. According to the National recycling Coalition, the number one reason people don’t recycle at home is inconvenience.

“We need a solution for a comprehensive recycling program,” Fleagle said. “Over 90 percent of Iowans have their garbage picked up; why couldn’t they have recyclables picked up as well?”

According to the DNR, more than 600 Iowa communities have curbside recycling and 1.2 million tons of materials are recycled in Iowa each year.

“We’re driving a 30-year-old car that gets eight to 10 miles per gallon,” Fleagle said. “That car is no longer efficient in today’s world.” CV

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