January 15, 2008

Plan to boost bottle deposit gets cool reception
By Charlotte Eby

DES MOINES -- A proposal floated by Iowa Gov. Chet Culver to double Iowa's 5-cent can and bottle deposit and use some of the money to help fund environmental projects is getting critical reviews in the Iowa Legislature.

In his condition of the state speech today, Culver is expected to lay out a plan that would raise the deposit from 5 cents to 10 cents.

Iowa House Speaker Pat Murphy, D-Dubuque, gave the idea dim prospects in the Legislature this year.

"It's got a difficult, uphill climb," Murphy said.

Culver's proposal comes on the 30th anniversary of Iowa's bottle and can deposit law enacted in 1978 to encourage recycling and cut down on roadside litter.

Currently, Iowa consumers pay a 5-cent deposit for each can or bottle of carbonated and alcoholic beverages they purchase. The deposit is refunded to the consumer when the empty containers are recycled at retailers or redemption centers.

Culver wants to see the deposit increased to 10 cents, although consumers would only get 8 cents back.

One penny would go to the state's Resource Enhancement and Protection program, or REAP, which pays for conservation projects and other efforts. Another penny would be paid to outlets that take back empty cans to raise their current 1-cent handling fee.

Culver also proposed expanding the law to include containers for other types of containers such as juice, water and tea.

Culver spokesman Brad Anderson said because the bottle bill has been such a successful program, it's time to expand it to other types of containers. He defended the need to boost funding for REAP.

"REAP is an enormously successful bipartisan program in the state, and it's never been fully funded," Anderson said.

State lawmakers, who kicked off their 2008 legislative session Monday, showed little signs they would embrace the measure.

Sen. Bill Dotzler, D-Waterloo, predicted that Iowans would balk at the idea.

"As far as raising or doubling the deposit, I don't think that's a possibility this year," Dotzler said.

Iowa House Minority Leader Christopher Rants, R-Sioux City, labeled the plan a tax increase and criticized the idea that consumers wouldn't get all of their deposit money back.

"That's a tax increase, and that's a tax increase, frankly, on middle-class families," Rants said.

Sen. Herman Quirmbach, D-Ames, said the idea of including more types of containers is long overdue and praised the law's effectiveness over the years.

"It's been tremendous incentive for people to clean up their own litter or for other folks to come along and pick up after them," Quirmbach said.

He's less sure about the idea of consumers not getting all of their deposit money back.

"I'll have to see the formal proposal and see what people's reaction is," Quirmbach said.

Tom Warren, one of the owners of the Ames Area Redemption Center, likes the idea of increasing the handling fee that goes to businesses like his.

"We've been fighting for it for quite a few years," he said.

He said the increase in Iowa's minimum wage and rises in other business expenses have put more pressure on the bottom line.

"If it keeps up the way it's going right now, we're going to lose redemption centers all around," he said.

Charlotte Eby an be reached at (515) 243-0138 or chareby@aol.com.

http://www.siouxcityjournal.com/articles/2008/01/15/news/iowa/1205fbae7f86a2d4862573d1000c69d1.txt