May 18, 2008

Industry favors separate bottle and can redemption centers

PORTLAND, Ore. (AP) — In 1972 Oregon began requiring a deposit on beer and soda containers, and ever since, residents have been taking their empties back to stores to get their nickels.

Recycling rates for cans and bottles reached roughly 80 percent as the "no deposit, no return" containers became history.

The system would change under a proposal by large grocers and beverage distributors that would route most of the empties to separate "redemption centers."

The plan calls for 90 new industry-financed centers, enough to get 250 of Oregon's 300 large grocery stores out of the bothersome deposit business. Large grocers receive three-quarters of the state's deposit containers.

Returned containers are likely to increase Jan. 1, when a nickel deposit will be added to water bottles sold in Oregon.

Industry advocates say the centers would boost efficiency and customer service.

They say by reducing grocer opposition, the centers could help expand the bottle bill to include containers that don't require deposits now, such as sports drinks, juice drinks, and bottled coffees and teas.

But high-volume centers may raise neighborhood concerns and reduce convenience for recyclers, lowering the redemption rate.

Jeremiah Baumann, a lobbyist with Environment Oregon, said his group has no problems with the centers if small-scale recyclers can still redeem containers at grocery stores.

Of the 11 states with container deposits, only Oregon and Michigan don't have redemption centers, and they have the highest redemption rates.

"A big reason Oregon's bottle bill works so well is we've got the most extensive return system imaginable," he said. "The place you take your bottles is the place you're going to shop anyway."

Grocers proposed the idea to the 2007 Legislature in vain. But they have gained support and fleshed out details, which they presented to the state's bottle bill task force last week.

The task force is supposed to come up with bottle bill recommendations by Nov. 1 in advance of the 2009 session.

It is to evaluate whether to require more containers to carry a deposit and whether to increase the nickel deposit, unchanged since the bill took effect.

John Andersen, president of Container Recovery Inc., which manages Portland-area deposits and returns, says reducing convenience is a huge issue.

But they promise to have at least one person on duty to assist recyclers at the centers and to give those with only a few containers the option of a hand count instead of using the often-cranky "reverse deposit" machines found at large grocery stores.

Centers could also accept larger loads than grocery stores, which can turn away recyclers after they redeem 144 containers in a day, Andersen said.

The centers would include storage space, reverse vending machines and restrooms, he said, and be restricted to retail areas, perhaps partnering with charities such as Goodwill or the Salvation Army.

Andersen wants to start out with a couple of centers in 2009 and eventually spread them throughout the state.

Costs, as much as $16 million a year, would be covered by grocers and distributors, not taxpayers.

Distributors already receive well over $10 million a year in unredeemed deposits.

Recycling advocates such as the Association of Oregon Recyclers praise industry for offering to pay for the centers but say the Legislature needs to set standards for the centers to make sure they are open to public scrutiny.

The group favors tying an increase in deposit amounts - opposed by grocers and distributors - to redemption rates. If the rates fall as centers open, deposit amounts should go up, an incentive to run the centers well.

Industry groups want the Legislature to delay talk of raising deposits or adding new containers until 2011.

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Information from: The Oregonian, http://www.oregonlive.com