|Name||Solid Waste Management; Deposit Beverage Container Law (Act 176)|
|Beverages Covered||all nonalcoholic drinks, except for milk or dairy products, and limited alcoholic drinks (beer, malt beverages, mixed spirits, mixed wine).|
Container ≤ 2 liters of the following materials:
|Amount of Deposit||5¢|
|Reclamation System||Certified Redemption Centers (CRCs) operated by privately-owned, State-permitted solid waste facilities [a]|
New handling fees effective 7/1/19 [b]:
Aluminum and bi-metal cans: 3¢
Plastic bottles: 3.5¢
Glass bottles: 7¢
|Other Fees||A non-refundable "container fee" (added to price of beverage) of 1¢ - 1.5¢ per container is paid by beverage manufacturers into the Deposit Beverage Container fund to help pay redemption centers handling fees. The container fee fluctuates based on the redemption rate of the prior fiscal year; if the redemption rate is under 70%, it is set to 1¢; if it is 70% or more, it is set to 1.5¢. [c]|
|Unredeemed Deposits||Retained by Department of Health|
|Fees and Taxes||Property of state: used for program administration|
FY 2017 - 65%FY 2016 - 68%
FY 2015 - 68%
FY 2014 - 70%
FY 2013 - 75.0%
FY 2012 - 76.6%
FY 2011 - 75.7%
FY 2010 - 76.1%
FY 2009 - 78.7%
FY 2008 - 72.0%
FY 2007 - 67.6%
FY 2006 - 67.6%
FY 2006-2015 - 73% [d]
|Redemption rate by container type [f]
FY 2016 -
In addition to the 5¢ deposit fee that is refunded to consumers, Hawaii charges a nonrefundable "container fee" which helps to cover the operational costs of the program. The law specifies that the container fee be reviewed annually, and is set at 1¢ per container when the annual redemption rate is below 70%, and 1.5¢ per container when the redemption rate exceeds 70%. The Director of the program is authorized to suspend any increase in this fee if the size of the deposit beverage container fund is sufficient to maintain operations.
Because the law only requires beverage distributors pay the container fee to DOH, there is no specific guidance on how retailers decide to pass on the fee to their customers.
The program pays certified redemption centers a “handling fee” for each container that is verified as being recycled - this includes deposit beverage containers that are either:
1. Transported out-of-state,
2. Transported to a department permitted recycling facility.
The program requires redemption centers to submit regular reports (minimally, requests for payment must be received twice per month) and consumer refunds may be calculated by weight according to the segregated rates determined by the department for each material type (aluminum, plastic, glass and bi-metal).
[a] Retailer exemptions vary depending on local population density, proximity to a redemption center, and store size.
[b] New handling fees went into effect on 7/1/19, per recommendations in handling fee study: "Study of Deposit Beverage Container Handling Fees – Final Report." Prepared by Crowe LLP for the Hawaii Department of Health, May 13, 2019; personal communication from Wendy Okazaki, Hawaii Department of Health, July 19, 2019.
[c] BEVERAGE CONTAINER FEE TO DECREASE BY HALF CENT - Lower annual redemption rate triggers a decrease of container fee. July 27th 2015. Personal communication from Michael Casey, Hawaii Office of Solid Waste Management, 8/16/18.
[e] Source: Hawaii Department of Health. "Beverage container fee increases by half cent to continue successful recycling program." July 18, 2012.
[f] Hawaii State Department of Health, Solid & Hazardous Waste Branch, Office of Solid Waste Management, 8/8/18.