DES MOINES --- Iowa Gov. Chet Culver said Wednesday he wants to revise the state's bottle redemption law, a process that may include an increase in the 5-cent deposit and an expansion of the law to include fruit juices and bottled water.

"That might involve them moving from 5 cents to 6 or 7 or beyond in terms of the bottle deposit," Culver said in an interview with Lee Enterprises.

Right now, the law only applies to carbonated or alcoholic beverages, in cans or bottles.

Culver said the changes to the law, which will be on the agenda when the Legislature convenes later this month, may allow the state to raise money for environmental projects.

The bottle redemption law --- nicknamed the Bottle Bill --- was passed 30 years ago to encourage recycling. The law has come under fire from grocers who complain that they lose money in their role as the most popular redemption site for empty bottles and cans. Grocers say the containers are unsanitary and take up too much space.

Grocers get a 1-cent handling fee from distributors for each container, an amount they say isn't enough to cover costs.

Jerry Fleagle, president of the Iowa Grocery Industry Association, said the governor should move with caution. He said any increase in the deposit is potentially harmful to retailers in border communities, where customers may cross the border to avoid the deposit. None of Iowa's neighbors have a deposit law.

"There's a delicate balance," Fleagle said.

Failure to find that balance is the reason previous attempts to revise the law have failed, he said. Almost every year, legislators hold hearings on the topic, with little to show for it.

Contact Dan Gearino at (515) 243-0138 or dan.gearino@lee.net.

http://www.siouxcityjournal.com/articles/2008/01/03/news/iowa/d1b323b3dc90bbab862573c500123c9d.txt