Wall Street Journal

Deposits ensure Steady Stream of Scrap Materials

Dear Editor:

John Fialka's article (HIGH COST OF COMPLIANCE PROMPTS SOME CITIES TO DUMP PARTS OF PLANS, July 9, 2002) revealed a sad truth: economics are forcing many communities to drop one or more materials from their recycling programs, even though markets for scrap materials are strong. Companies can cut costs by using recycled feedstocks in place of virgin materials. Doing so is good for the environment and good for business. But, in order to make using recycled feedstock economical, these companies need a steady supply of high quality scrap material. Unfortunately, the collection methods used by many municipal programs generate low quality scrap materials for which there are no markets.

In the ten states where consumers pay a deposit ranging from 2.5 to 10 cents, high quality glass, plastic, and aluminum scrap material are abundant. The deposit provides a financial incentive to recycle, so beverage bottles and cans are recycled at rates two to three times higher than the rates in the 40 'non-deposit' states, at no cost to taxpayers. Moreover, the design of deposit programs ensures a steady stream of high quality scrap materials.

Sen. Jim Jeffords' (I-VT) BEVERAGE PRODUCER RESPONSIBILITY ACT would extend the deposit system to all 50 states. The bill requires beverage producers to meet an 80 percent recycling rate performance standard for their non-milk beverage cans and bottles, and it requires a 10-cent deposit on these containers. Achieving the 80 percent recycling rate would save the equivalent of 42 million barrels of oil over a 10-year period - enough to meet the electricity needs of 70 million households for one year.

By requiring refundable deposits on the most energy intensive packaging in the marketplace - the single-use beverage container - we can provide product manufacturers with cheap feedstocks while conserving energy and natural resources.

Sincerely,

Pat Franklin

Executive Director