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October 29, 2009

Plastics News

Court approves N.Y.'s expanded deposit law

ALBANY, N.Y. (Oct. 29, 12:10 p.m. ET) -- After several delays and a court challenge, the expansion of the New York bottle deposit program to include water bottles will go into effect Oct. 31, nearly five months after originally scheduled.

U.S. District Court Judge Deborah Batts ruled after a court hearing last week that the expansion could go into place. But she permanently enjoined a provision of the bill that would have required bottlers to have state-specific UPC labels on bottles.

“We are grateful that the courts have resolved this issue,” said Laura Haight, senior environmental associate with the New York Public Interest Research Group, in a phone interview. “This is a long overdue change that will dramatically improve recycling rates and reduce litter.”

New York becomes the third state this year and sixth overall to include water bottles in its deposit program. Oregon added water bottles Jan. 1 and Connecticut on Oct. 1.

Overall, 11 states have deposit laws that include carbonated soft drinks, beer and water bottles. California, Hawaii and Maine also include non-carbonated beverages such as teas and energy drinks.

“It seems to me that this is certainly a trend now,” Haight said. “We certainly hope that New York will be a trendsetter, and that more states will do this. The environmental benefits of recycling plastic include not only litter reduction, but energy savings and a reduction in greenhouse gas emissions. You can get a lot of bang for your buck from deposit laws.”

Eight other states, including Massachusetts, are currently considering bottle bills or extension of bottle bills to include water.

According to an analysis by the Container Recycling Institute in Culver City, Calif., the deposit program should increase the number of water bottles recycled in New York from 487 million in 2006 to 2.5 billion in 2010, when the program is in effect for an entire year. Only 14 percent of water bottles in New York were recycled in 2006, compared to a 70 percent recycling rate for soft drinks, according to CRI.

CRI said the additional 2 billion water bottles that are expected to be recycled on an annual basis in New York will keep 163.7 million pounds out of material out of landfills and incinerators, and the energy saved by recycling these additional containers will be enough to provide power to 43,660 households for an entire year.

Water bottles account for 25 percent of all beverage sales in New York. The expanded bottle bill applies to all water drinks as long as they don’t contain sugar — which means that vitamin drinks, iced teas, sports drink, juices and sugared water drinks are excluded.

Deposits apply to all beverage containers under one gallon. Bottled water represents 69 percent of all non-carbonated beverages sold in New York.

The bottle bill had been challenged in court in May by the International Bottled Water Association, Nestle Waters North America and Polar Corp.

“Now that the deposit is in place, I think we are just about done in Albany,” said Tom Lauria, vice president of communications for IBWA. “We got rid of the New York state-specific UPC code and got our members a lot more time to get ready for this.

“There may or may not be interest in expanding [deposits] to other products,” Lauria said. “But I don’t think we are going to be part of that fight.”

A spokeswoman for Nestle said the company “supports the bill, [but] we want to see it expanded further.” The company has said in the past that the exclusion of certain beverages puts bottled water at a price disadvantage, and that it would seek to get the bill amended in the next legislative session.

After a preliminary court hearing last August, Nestle Chairman and CEO Kim Jeffery issued a statement, saying that deposit laws “must apply to all beverages,” including the sports drinks, teas, juices and energy drinks that are excluded from the expanded bottle bill.

Haight of NYPIRG said Nestle is “very serious about wanting to go back and change the law. But I’d be surprised in anyone wants to reopen this law soon.”

Other provisions of the New York law went into effect Aug. 13. The changes increased the handling fee that distributors pay to grocers, convenience stores and redemption centers for handling bottle returns from 2 cent to 3.5 cents — the first increase since 1997.

In addition, 80 percent of the unclaimed nickel deposits — an estimated $115 million annually — will now go to the state, with distributors and bottlers keeping the rest. Previously, distributors and bottlers had kept all of the unclaimed deposits.

http://www.plasticsnews.com/headlines2.html?id=16986


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