Enforce Iowa’s bottle bill, encourage redemption to supply chains

Until the COVID-19 pandemic, few paid attention to enforcement for Iowa’s Beverage Container Deposit Law that was adopted as a litter abatement in 1978 and enacted into law on May 1, 1979, for beer and soft drinks, and July 1, 1979 for wine and liquor.

A decade later in a move to encourage more redemption in 1990, the Legislature banned deposit containers from landfills and granted retailers the right to refuse containers if they developed an agreement with an approved redemption center, according to the Department of Natural Resources (DNR) Environmental Protection website, the agency assigned enforcement.

In the 40-plus years since adoption, the bill is outdated and needs to be modernized to accommodate the rapid expansion of to-go beverages and 21st-century technology.

Today, the disagreements between the major players — distributors and grocers/retailers — dominate conversations at the state capital and, unfortunately, Iowa consumers are left out of the conversations.

Now, it’s up to Iowa lawmakers and citizen advocates, like the League of Women Voters, a supporter of the original bottle bill law, to ensure consumers are represented and their voices are heard.

Enforcement. The laws to enforce the bottle bill are regrettably limited. State of Iowa Code (Chapter 455C Beverage Containers Control, 455C.12, Penalties) simply states, “Any person violating the provisions of section 455C.2, 455C.3, or 455C.5, or a rule adopted under this chapter, shall be guilty of a simple misdemeanor.”

A simple misdemeanor is the least serious charge of the three classes described by the Iowa Code 903 Misdemeanors — simple, serious and aggravated. The code states in addition to, or instead of a fine of at least $105 but not more than $850, a judge can impose up to 30 days in the county jail.

A fact sheet on the DNR website clearly states stores must redeem containers of the products it sells unless the store has an agreement with an approved redemption center and prominently displays a certificate issued by the Iowa DNR that identifies the “approved” redemption center, its location and its hours of operation. The redemption center is required to be open at least 20 hours a week, and within a 10-minute drive of the store. (iowadnr.gov/Portals/idnr/uploads/waste/bottlebillfaq.pdf)

The law requires stores and redemption centers to redeem cans and bottles that display Iowa’s deposit insignia indicating a deposit was paid at purchase are eligible for redemption and are reasonably clean, dry and intact. Stores can lawfully refuse dirty or smashed empties or empties that have liquid in them.

Consumers can report to local law enforcement any store or redemption center that refuses to take containers they sell or if they refuse to pay the 5-cent deposit refund for each item.

But the DNR has no authority or power to enforce regulation. The DNR, which administers the bottle bill and approves redemption agreements between retailers and centers, has maintained the Iowa Legislature would have to take action before it can forcefully administer the law. The DNR typically responds to complaints with letters and phone calls to dealers informing them of their obligations under the current law.

Redemption has declined. Redemption rates have declined and it’s easy to understand why — it is economics and it’s a Catch-22 situation. Stores that are required to accept containers have stopped redemption because there is no enforcement and redemption centers are struggling to survive. The 1-cent handling fee that has not been changed in 40-plus-years is not sustainable or profitable for stores or redemption centers that gather and sort empty beverage containers that they’ve sold before turning them over to distributors that ship them to recycling centers. The 5-cent deposit fee paid to consumers is too little for them to bother with finding a location close by to redeem the deposits.

Adding to difficulties of redemption, Gov. Kim Reynolds suspended container redemption from March through July 2020 during the early months of the global COVID-19 pandemic. Without locations to redeem deposits, consumers recycled at the curb or disposed of the containers.

Information on the DNR website indicate in the 21st century, from 2000 to 2017, redemption rates have declined 29%. In 2000, redemption was at a highpoint — 93% (Iowa Department of Natural Resources, Waste Management Division). Redemption rates dropped to 85% by 2005 (Economics of the Iowa Bottle Bill, Iowa State University, Jan. 2012 Dr. Dermot Hayes); and further declined to 71% (2017 Iowa Statewide Characterization Study, SCS Engineers for Iowa DNR). A 2017 Container Recycling Institute (CRI) study estimates redemption at 64%. (bottlebill.org/dev/index.php/current-and-proposed-laws/usa/iowa)

Iowa's law is one of 10 states (California, Connecticut, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon and Vermont) with bottle bills. States with these laws have a higher container-recycling rate because containers are collected separately from other plastics, tend to be less contaminated and of a higher quality than material collected curbside. (container-recycling.org/)

Adding to concerns about redemption and recycling, in December 2021, consumers were alerted to major material supply shortages predicted to hit the beverage industry by 2023. It is not known how this will be a factor for Iowa’s craft beer and wine industries.

To be successful, Iowa’s bottle bill needs updates and real enforcement consequences. Handling fee adjustments will increase profitability for stores and redemption centers. Deposit fee increases will encourage consumer redemption. Both should follow a guide to provide timely updates in order to be equitable. For effective enforcement, the DNR should be able to impose sanctions with consequences for stores that do not comply with the law — maybe it’s time to deny a liquor license to boost compliance with the law.

Terese Grant is the president of the League of Women Voters of Iowa.