February 6, 2007
Bill aims to keep bottle program alive
Iowa lawmakers will consider increasing the fee that distributors must pay redemption centers.
By JENNIFER JACOBS
Charging a nickel deposit on bottles and cans sold in Iowa has encouraged recycling and curbed litter for 28 years, but redemption centers say the program could be in trouble because they're losing money on the service.
To help keep the recycling program successful, the Iowa Legislature is considering doubling the handling fee redemption centers get for each container they collect.
Currently, distributors pay redemption centers such as the Can Shed in Cedar Rapids or Hy-Vee grocery stores in Des Moines a penny for every empty container consumers turn in.
Under a new bill, distributors would have pay the retailers 2 cents.
Distributors and some grocers don't like that idea. Because no state adjacent to Iowa has a deposit law, those businesses argue that if they charge more for products to offset the extra cost, they'll lose sales across the border.
Jerry Fleagle of the Iowa Grocery Industry Association suggested changing the law so that Iowans are refunded 4 cents on each redeemable container instead of 5 cents.
That idea is very unpopular with consumers, said Jeff Geerts, a program planner for the Department of Natural Resources. Some redemption centers, in violation of state law, have already tried that, he said.
"What we've heard from consumers that call us is when they pay 5 cents, they want 5 cents back. That's why it's called a deposit," Geerts said.
For the past several years, any proposals to change the container deposit law have been bottled up, mainly because of a lack of consensus on what can be done.
This year, some lawmakers are holding out hope for action.
"My gut feeling is something will happen. I don't know what, though," said Rep. Dave Deyoe, a Republican from Nevada.
Of the 11 states with container deposit laws, Iowa has the lowest handling fee, according to Container Recycling Institute in Washington, D.C.
Between 20 and 25 redemption centers in Iowa have gone out of business in the last two years, Geerts said.
That leaves about 150 centers whose primary business is redemption.
If more close, Iowans would have fewer places to redeem the 1.65 billion reusable aluminum cans, plastic soda bottles, and wine, beer and liquor containers they now return each year.
This would spell trouble for the whole program, said Sarah Rasmussen of Metro Waste Authority, which supports the handling fee increase.
"If nothing's done to support it or update it, it is going to slowly die out," she said.
Reporter Jennifer Janeczko Jacobs can be reached at (515) 284-8127 or jejacobs@dmreg.com
http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20070206/NEWS10/702060377/1001/NEWS
