Dive card:

• Redemption rates in most states with bottle bills decreased in 2023 compared to the previous year, according to data from the Container Recycling Institute. The figures reflect a downward trend in the redemption rate since 2017.
• Beverage container redemption rates fell between 1% and 4% in most states, while Oregon’s rate increased 1% and Vermont’s increased less than 1%, CRI said.
• CRI expects that recent changes in California and Connecticut’s programs should begin to show improvements in the coming years, but the group also said extensive bottle-counting modernizations could increase yields even further.

Dive Insight:

Advocates of deposit return systems see the programs as powerful ways to increase recycling rates and collect cleaner materials, but even ardent proponents of bottle counts point out that older programs haven’t been updated in decades, making them less compliant demand from new recycled content laws and respond to changing recycling streams and plastic reduction commitments from major brands.

CRI’s annual deposit return data shows small declines in collection rates compared to 2022, but the overall decline in return rates over the past seven years shows that states need to improve systems quickly, CRI President Susan Collins said in the report.

Over the seven years, the state with the most dramatic decline in yields was Massachusetts, where yields dropped 21%. Massachusetts, which has the lowest yield in the country, went from a 57% yield in 2017 to a 36% yield in 2023.

The second state with the biggest drop in yields is Michigan, which reported an 18% drop over the same seven-year period. However, Michigan still has one of the highest yield rates in the country, reporting a 91% rate in 2017 compared to 73% in 2023.

That news comes after CRI’s 2022 report, which showed standard rates of return for most states. Data for Iowa was not available for last year’s report and was not included for CRI’s assessment of the 2023 redemption rate, although CRI said it conducted a separate study to determine the state’s 2022 rate to be about 49%.

Still, deposit return systems have their share of opposition, including from some lawmakers and some recycling industry players like the National Waste & Recycling Association, which have said some bottle bills harm MRF revenues and divert funding and attention from needed recycling improvements.

At the same time, support for container deposit systems continues to develop. This year, the Solid Waste Association of North America updated its policy to support deposit return schemes, says the schemes are a key to increasing collection rates and reducing litter as long as the programs meet certain characteristics.

Other major trade groups support bottle-counting efforts: the National Association of PET Container Resources, the Can Manufacturers Institute, the Aluminum Association, and the Glass Packaging Institute all support “well-designed” bottle countssays the programs are key to bringing back materials needed to make new beverage containers.

CRI advocates for widespread improvements to state bottle bills such as higher deposit amounts, more convenient return systems and programs that accept a wider variety of containers.

“We’ve seen some progress on this front in recent years — notably with several program upgrades in Oregon and Connecticut’s 2021 passage of major expansion legislation — but not enough,” she said in a statement.

Collins noted how Oregon — the state with the highest return at 87% compared to 73% in 2017 — has improved its program over the past 15 years. The state has a deposit value of 10 cents and covers almost all beverage types while offering “extremely robust bottle and return infrastructure,” she said.

Successfully enacted legislation from recent years is expected to contribute to progress in other states.

Modernization laws passed in recent years should help boost yields, but such bills may take years to implement or see notable effects from policy changes, CRI has said.

Connecticut has been added non-carbonated beverages, hard cider and malt-based hard cider to its program on January 1, 2023. While that change didn’t immediately impact returns for 2023 — the share went from 44% to 43% compared to 2022 — CRI notes incremental growth for 2024. With citing the state Department of Energy and Environmental Protection, CRI says Connecticut’s redemption rate was up to 53.5% in the first quarter of 2024.

In January 2024, Connecticut increased its deposit amount on certain containers from 5 to 10 cents, which CRI expects will have a positive impact on yields in future years.

In California, the state added wine and spirits bottles to its program starting Jan. 1, which CRI expects could add half a billion additional containers each year “once consumers fully embrace the practice of returning these new containers.” The state also added a deposit for larger 100% fruit and vegetable juice containers, which CRI estimates could add another 188 million new containers. The state also approved millions in bottle counting-related infrastructure and program improvements starting in January 2023.

In 2024, states have continued to work to modernize their bottle counting programs, but bottle counts are notoriously difficult to pass.

Earlier this summer, Massachusetts lawmakers included one proposal to update the state bottle bill as part of a broader climate billwhich intended to increase deposit values ​​to 10 cents, increase handling fees for retailers and redemption centers, and include more types of beverages in the program. This provision did not pass before the legislative session adjourned on July 31.

In New York, lawmakers did not approve a proposal in 2024 updating the bottle count intended to increase the government’s deposit value from 5 to 10 cents and increase handling fees from 3.5 cents to 6 cents. It also aimed to expand covered containers to include beverages such as coffee, tea, wine and spirits.

Washington, Illinois and Minnesota are some of the other states that introduced deposit return scheme legislation this year.

“It is encouraging to see greater interest in new and upgraded DRS programs across the country,” Collins said.