Iowa’s outdated bottle bill runs counter to global trends

With only 4 percent of the world's population, the U.S. leads the world in waste generation but recycles or composts only 32 percent. The majority of European countries, Canada and Australia have all implemented bottle bill programs. Germany has the best bottle deposit system and recycling rates in the world.

What will America’s future be? A national solution could resolve the issue but that’s not likely to happen. In March 2021, two bills were introduced in Congress that would implement a national beverage container program: The Break Free from Plastic Pollution Act (National Bottle Bill S. 984), and The CLEAN Future Act (H. R. 1512).

Both bills would establish a 10-cent deposit for containers; handling and other fees have yet to be determined. Unclaimed deposits would be retained by producers/distributors. Both bills look to reduce production of single-use plastic products and encourage producers to develop packaging to prevent pollution. Both bills expand the types of beverages covered by the law.

What will Iowa of the future look like? Can we modernize our bottle bill to benefit all — consumers, stores and redemption centers? In the face of predicted supply change shortages, will Iowa lawmakers have the courage to address the state’s 44-year old container deposit law this session? Will lawmakers add the ability to enforce the bill, along with guidelines to update fees when necessary? Is there a will to expand the bill to include other beverages?

Perhaps the most important question is there a compromise that distributors, grocers/retail stores and the consuming public can accept for a renewed bottle bill?

Other bottle bill states have made simple, common-sense decisions to include beverages that represent major growth areas for beverage producers — non-carbonated drinks and bottled waters. A failure to add these beverages will only add to the state’s litter and recycling problems, reports the Container Recycling Institute. Other states have taken an additional step and banned plastic bags, according to the National Conference of State Legislatures.

Dr. Dermot Hayes, an Iowa State University economist, has conducted the most recent evaluation of potential changes to the bottle bill for lawmakers. He says the state could finance an expanded, modernized redemption system by increasing the current 1-cent-per-container handling fee to 3 cents; raising the container deposit fee to 10 cents from 5 cents; expanding the containers for which deposits are required to include water, other non-carbonated and non-alcoholic drinks; and introducing more stand-alone “bottle-drop” redemption centers near stores, strip malls and other retailers, as happened in the state of Oregon.

These options would give retail stores a choice of remaining in the redemption business knowing they can cover the full cost of redemption or opting out of the redemption business and that customers will have a convenient alternative, he wrote in a 2018 report.

Some in the retail and grocery industry want redemption out of the stores. However an increase in the handling fee will allow stores the ability to control their environment and profitability.

Convenience is a vital criteria for customers. They should not be forced to drive to defend Iowa’s environment or maintain adequate supplies of materials.

The League of Women Voters of Iowa supports five steps to improve Iowa’s bottle bill and increase redemption and recycling rates.

First, it is common sense for Iowa to update its bottle bill by increasing fees — both the handling fees to encourage stores and redemption centers to stay in redemption or enter the market — and the deposit fees to encourage consumers to return empty containers. And these fees should be tied to a regular, automatic adjustment to keep politics out of the program and prevent a future implosion.

Second, give the agency responsible for the bottle bill enforcement appropriate measures to administer the law and ensure the law is followed.

Third, expand the coverage to include the containers that represent the major growth areas — bottled waters, non-carbonated drinks and non-alcoholic and alcoholic beverages (introduced during the pandemic). This step can be phased in. Add canned alcoholic beverages first, next other non-carbonated drinks and water.

Fourth, require distributors to submit quarterly reports to track the beverage sales and fee refunds. Transparency is paramount to preventing a near collapse of a system that Iowans previously revered. Start this process Jan. 1, 2023. Improved transparency is the first phase in accurately determining how much money is involved.

Fifth, require distributors to return to the state a portion of unclaimed fees to make grant funds available to environmental groups to improve the state’s outdoor experience and to stores to improve their redemption abilities.

These proposed steps will update Iowa’s bottle bill to incentivize redemption. Iowa consumers need access to clean, modern and convenient facilities where they shop. Reverse vending machines are the best solution and they are successfully used throughout the world.

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