Sierra Club Supports the Container Deposit Bill
Every one of us can readily see that
Tennessee has a litter problem along our roadsides- almost 4 billion
containers weighing some 200,000 tons with a potential market value of
as much as $100 million. Beverage containers account for roughly 50
percent of Tennessee's litter volume, according to a 2005 litter survey
and the observations of jail litter crews and TDOT supervisors.
What if this enormous
quantity of containers were recycled? Senate Bill1408-House Bill1829
pending in the Legislature make this possible.
Under the bill, the
customer pays 5 cents extra per container for at the point of purchase
as a deposit. This will show as a separate, untaxed line item at the
bottom of the receipt. The customer recovers the deposit by returning
the empty container to any one of a number of private redemption
centers set up throughout the community.
Glass, aluminum and plastic
containers for soft drinks, teas, beer and bottled water are covered by
the bill. Milk and liquor containers are excluded.
The deposit is turned in to
a state fund at the Department of Environment and Conservation. When
containers are returned to a recycling redemption center, the deposit
is refunded. Beverage distributors have no role in collecting or
recycling the empty containers. This will be done by private
recycler-redemption operators in return for all or most of the scrap
value. The redemption centers will be voluntary and independent,
certified by the state. They most likely will be mainly mom-and-pop
centers or non-profit organizations or local government. The centers
will earn a 3-cent-per-container handling fee. (The state collects this
fee from the beverage distributors and disburses it to the redemption
centers.)
The 3-cent handling fee is
separate from the consumer deposit refund, paid to the state by the
beverage distributor. It covers the costs of collecting, transporting
and recycling some 200,000 tons of glass, plastic and aluminum
packaging and seeing that it stays out of the landfills and goes back
into manufacturing. It will be part of the "shelf price" of the
product, just as advertising and raw materials and personnel are part
of the shelf price of a product. If we pay 18 cents more for a six pack
of drinks and get half the trash off our roadsides and vacant lots, it
is worth it, in my opinion.
The program will be part of
the state's existing Division of Solid Waste Management within the
Tennessee Department of Environment and Conservation. The few new staff
required will be paid for by the 3-cent handling fee. Because the
handling fees stay within the program, TDEC will have more money to
enhance its existing environmental programs for recycling and waste
management.
Retailers are not required
to take back empty containers. If a store chooses to take back empty
containers as a convenience to its customers, it will have several
automated options for doing so, including reverse vending machines
(RVMs). Imagine putting your empties into a machine and getting a
printed chit you can spend like cash.
Local governments can run
their own redemption centers, thus earning an average $130,000 a year
(probably much more) while boosting recycling and providing jobs. Or
nonprofit agencies such as homeless shelters could choose to open a
redemption center and thus supplement their budget while providing jobs
and job training opportunities for their clients
Retail beverage prices are
somewhat lower, on average, in the 11 states that have a bottle
bill than in the states that do not. A 2006 survey of Pepsi 12-pack
prices in all 50 states, for instance, found that everyday (not sale)
prices averaged $4.22 in the 11 bottle-bill states vs. $4.34 in the 39
other states, and in almost all cases were about the same or lower than
the average price for their region. Some of the lowest beverage prices
in the nation are in the states with the highest handling fees: Maine
(3¢), Vermont (3¢) and New York (2.25¢). The fact is that retail
beverage prices are a reflection of many market factors.
Distributors will no longer
pay existing "litter taxes" on beer and soda that they've been paying
since 1981. These taxes, paid in the aggregate and totaling about $5
million a yea, currently pay for litter education and prisoner litter
pickups through the county litter grants program. These taxes will be
eliminated under the bottle bill, but the litter grants themselves will
continue and in fact will get twice as much money-via a $10
million annual allotment from unclaimed deposits. Putnam County's
litter grant under the bill would go from $22,250 in 2007-08 to $90,300
under this bill, (using TDOT's existing formula.).
There will be roughly $35
million a year available for local new initiatives by nonprofit groups.
In other states, bottle drives are a major fundraising tool for
schools. Estimates are that the voluntary redemption centers will gross
$130,000 a year (based on 800 centers and an 85 percent return rate).
County and city governments can operate container redemption centers
and use the money earned to fund recycling costs for other materials
like cardboard and paper.
We will benefit from longer
landfill life, reduced waste-management and litter costs. Business
revenue increases when deposits are redeemed and spent, usually at the
store next dor to the reverse vending machine. We can have more money
for schools and the energy cost savings from a bottle bill.
It takes far less energy
and raw material to make new containers from used ones than it does to
make them from scratch-95 percent less energy in the case of aluminum
cans. The more containers that can be remanufactured from used ones,
the bigger the savings-savings to the distributor and the customer.
Here in Tennessee, we have
unusual access to three of the world's largest buyers of used beverage
containers: Alcoa (aluminum); Mohawk carpet (plastic) and Strategic
Materials (glass). Coca-Cola recently began building a $60 million
bottle-to-bottle recycling facility in South Carolina, and Alcoa
recently broke ground on a $22 million expansion of its aluminum
recycling capacity in Tennessee. Neither facility, however, will
achieve anywhere near the 70 percent-90 percent recovery that is
possible unless we pass a bottle bill.
Even relatively low-value
green glass has a market under a bottle bill, because the deposit and
redeem guarantees the high volume of "pure" used glass (i.e., properly
sorted by material and color) needed to sustain production. Bottle
bills not only support existing markets, they help create new ones,
such as high-end aluminum furniture and "artificial" beach sand made of
pulverized glass.
A bottle bill captures most
of a community's aluminum cans and thus the most valuable part of its
recycling stream. Solid waste officials in other states have found that
any losses in aluminum revenues are more than made up for by (1)
increased revenues from increased recycling of other commodities, such
as cardboard; (2) decreased costs for waste hauling and landfilling;
and (3) savings from no longer having to deal with glass and in some
cases plastic, which are hard to sell in the small quantities typically
recovered without a bottle bill. In Tennessee, each ton of containers
diverted from a landfill will save anywhere from $25 to $75 taxpayer
dollars. This helps counties get closer to the 25-percent solid waste
diversion goal in the state's Comprehensive Solid Waste Management Act
of 1991. At the moment, fewer than half the counties have achieved this
modest goal. and the state as a whole has been stuck at 18 percent for
several years.
The County Commissions of
Maury and Loudon Counties and the Tennessee Sheriff's Association have
endorsed the bill, as well as numerous civic and environmental
organizations, including: Scenic Tennessee, the Lebanon Beautification
Board, Recycle Rutherford,, Keep Bristol Beautiful, Kingsport Citizens
for a Cleaner Environment, the Tennessee Federation of Garden Clubs,
the Sierra Club and Tennessee Conservation Voters.
The Upper Cumberland Group
of the Sierra Club has asked the the Planning Committee of the Putnam
County Commission to endorse the bill. We urge you to join us in this
request and to ask Senator Burks and Representative Fincher to sign on
with the other dozen or so legislator co-sponsors and support the bill
in the Legislature.