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Guest Editorial: Time to reviatalize Iowa's bottle deposit bill

Posted: Sun, Feb 21, 2016 7:20 PM

(The following guest editorial has been submitted by Iowa Recycling Association Board member Alan W. Schumacher of Marengo)

Coming back from Green Bay, via Highway 60 along the scenic Wisconsin River this fall, I had the pleasure to enjoy its natural beauty, but something else stood out: litter; most notably, bottles and cans.

Wisconsin is a non-redemption state, where taxpayer contribution to clean up litter is costing counties, municipalities and the state significantly.  Not in Iowa.

This legislative session, several bills have been introduced to improve Chapter 455C, also known as the "bottle bill".  One bill in particular (HBS 510), would eliminate it.  The bill gave Iowa the 5-cent per-can deposit on all carbonated and alcoholic beverage containers back in 1979.

Those who want to eliminate the bottle bill completely call single stream recycling "the way of the future."  Not so fast.  Due to market saturation and future composition of single stream, the process is now becoming a cost to municipalities rather than a revenue source, due to the introduction of electronic media and reduction in packaging.  Remaining materials have little value and municipalities that invested in this direction may wish they had not.  In 2008, Linn County Solid Waste revenue from single stream was $10.60 per ton. Now, they are paying $28 per ton to process and the current processor wants to charge $65 per ton.

Legislators please note: Single stream isn't the answer to supplanting the bottle bill.  Rather, allowing an increase for the remaining redemption centers is the better choice.  In fact, why not make it profitable and allow the redemption rate for private business to be indexed for inflation?  For 37 years, redemption centers have only been allowed a margin of one cent per container to process.  One cent in 1979.  One cent still in 2016.

In 2008, the Iowa DNR compiled a listing of active redemption facilities statewide.  Total redemption centers in the state of Iowa in 2008: 243.  Total number in 2016: 78.  That's a 68 percent reduction of redemption centers in the state of Iowa the last eight years; 165 small Iowa businesses gone.

Opponents to bottle bill improvements include the Iowa Grocery Industry Association and the Iowa Beverage Association.  I get it.  If I owned a convenience or grocery store, I dare say that facilitating a process that generates little value with stories of dirty containers being brought into the store is not appealing.  But let's fix the problem.  Let's regenerate the redemption industry.  An increase in redemption businesses would minimize the percentage of returns to grocers.  Currently in Iowa, the law states if a convenience/grocery store has an identified redemption location they partner with, the store can direct returns to the designated center.  Problem solved.

As far as the Iowa Beverage Association, I get that, too. In October 2015, The Iowa DNR stated during a sub-committee hearing that distributors in Iowa collect $14 million from unredeemed containers each year, so distributors are content with the current system.  This includes the state of Iowa, which distributes all liquor throughout the state.  What about redemption centers covering their costs too?

Iowa residents need to let their voices be heard.  It is time our legislature does something to help redemption centers grow, while keeping our roadways clean.  One cent in 1979 doesn't equate one cent in 2016