Oregon bottle deposit likely to double to 10 cents as redemption rate drops

By Paul Ploumis (ScrapMonster Author)

June 21, 2016 02:56:23 AM

KLAMATH FALLS (Scrap Monster):  The Oregon bottle deposit rates are likely to double in 2017, said Cherilyn Bertges, a spokesperson for the Oregon Beverage Recycling Cooperative. In 2011, the Legislative Assembly had passed House Bill 3145, which set a trigger for the deposit to increase to 10 cents if the recycling rate falls below 80 percent for two consecutive years, but not before 2017. The redemption data released by the Oregon Liquor Control Commission (OLCC) indicates that the return rates remained under 80% in 2013 and 2014. The OLCC is slated to announce the redemption data for 2015 on July 22nd. If the rate happens to fall below the threshold, the bottle deposits will be hiked from 5 cents to 10 cents beginning April 1, 2017.

Beverage Container Return Data

Each year, the OLCC calculates the previous calendar year’s percentage of beverage containers returned for the refund value for each distributor cooperative and for each distributor/importer that does not participate in a distributor cooperative. The data released for 2013 suggests an overall return rate of 70.97%. The return rate of metal, glass and plastic containers stood at 76.31%, 74.84% and 57.90% respectively. In 2014, the redemption rates of various container categories were as follows- Metal (74.26%), Glass (71.92%) and Plastic (55.44%). The overall return rate for the year totaled 68.26%.

The state data indicate that the redemption rate of beverage bottles in Oregon has dropped by nearly 3 percentage points in 2014 when compared with 2013.

In 2012, the overall return rate was 70.95%. The return rate of metal, glass and plastic containers stood at 77.06%, 78.45% and 54.38% respectively.

BottleDrop system

The state redeems bottles and cans using ‘BottleDrop’ system. It provides 16 convenient drop-off locations where Oregonians could return the deposit containers and collect their refund. With doubling of bottle deposit to 10 cents per bottle, it expects huge increase in collection volumes across the state. To meet potential increase in redemption volume, BottleDrop centres are likely to add additional self-serving machines. In addition, at least three new centers will be opened, the locations of which are yet to be finalized. Currently, BottleDrop processes return of up to 350 bottles or cans per person per day with a maximum daily refund of $17.50 per person. This will double to $35 per day, as the deposit rates double to 10 cents.

History

Oregon was the first US state to introduce Bottle Bill in 1971.

Oregon retail stores pay the beverage distributor a 5-cent deposit for each container of bottled water, beer and soft drinks they purchase. Consumers then pay the 5-cent container deposit to the retailer when they make a purchase.  When they’re finished, the consumer can return the containers to retail stores in Oregon to redeem their 5-cents. Distributors pay retail stores the 5-cent redemption for each container returned to the distributor for recycling. Deposits on containers not returned for refund are kept by the distributors. Beverage distributors or their contractors who collect containers from stores keep the income from the sale of recyclable material.

The containers included in Oregon’s Bottle Bill are water/flavored water, beer/malt beverages, soda water/mineral water, and carbonated soft drinks. The bottle bill is administered and enforced by the state agency OLCC.

Presently, 10 US states have similar refund programs.