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Bill would raise NY's 5-cent beverage container deposit to 10 cents

Here's why supporters, including can and bottle redemption centers, hope 2024 will be the year of the "Bigger Better" Bottle Bill.

BUFFALO, N.Y. — A bill before state lawmakers would raise the nickel deposit on certain types of beverage containers in New York State to a dime, while expanding the number and types of containers subject to deposits and finally increase the handling fee paid to container redemption centers, which have been struggling to stay in business.

"We've been sitting here waiting and no life raft has been thrown from the state at all," said Steve Rohauer, proprietor of R&R Bottle and Can and Redemption Center on Seneca Street in South Buffalo.

RELATED: Bottleneck at the Redemption Center

The original bottle bill of 1983, which attached a 5-cent deposit to carbonated beverage containers, was aimed primarily at decreasing litter and increasing recycling.

It also spawned the entire bottle and can redemption industry.

In the 41 years since, New Yorkers have grown accustomed to paying the nickel deposit on certain beverage containers at point of purchase, and recouping the deposit by bringing their bottles and cans back to stores or redemptions centers like R&R.

Most might not realize that those businesses are then paid 8.5 cents per container when they turn them over to recyclers or beverage distributors.

However, that 3.5 cents per container handling fee has been stagnant since 2009.

Put another way, despite rising costs to operate, they haven't gotten a raise in 15 years.

Hard times

Rohauer also notes that unlike a typical business, which might cover increased costs by raising prices, businesses like his are in no position to do that.

"It's not like I can one day tell people, 'I'm only going to pay you 4 cents per can. ... We just can't do that," he said.

"The cost of everything from snow removal services, to rent, to payroll taxes has gone up drastically over the last three and a half years," Rohauer said. "We just haven't seen a fair pay increase to off set the costs that are accruing to us at this point. ... You just can't afford to sustain anymore."

"We've lost well over a hundred redemption centers in just the last year and a half," said Jade Eddy, who is the owner of MT Returnables in Queensbury, N.Y. 

Eddy, who works closely with the Empire State Redemption Association, says that number reflects about 10 percent of the industry statewide.

"That's a short amount of time to lose than many businesses," she said.

Buddy, can you spare a dime?

Besides raising the deposit to a dime, the bill before legislators would expand the number and type of beverage containers subject to the deposit, to include bottles and cans from non-carbonated beverages including wine, spirits, and hard cider.

It would also finally raise the handling fee paid to redemptions centers.

"Upon passage and the governor's signature, it would immediately bring it to 5 cents, increase it to 6 cents in April of 2026, and 6.5 cents in 2031," Eddy said.

"It's a start in the right direction," said Rohauer, when asked if he believed that this would help keep the lights on at redemption centers on the precipice of closing.

Proponents also believe it will help meet one of the primary goals of the original Bottle Bill of 1983; the reduction of litter, the incentive for which has weakened over time.

They reason that while the value of a nickel in 1983 was enough for consumers to take back their empties or for others to collect bottles and cans found roadsides, in 2024 a nickel might not be worth the bother. 

However, being able to collect a dime for an empty can or bottle might drive more people to do that.

"You'd be getting twice as much for the same effort. ... It's a no brainer," Eddy said.

"Most politicians, regardless of what side of the aisle they fall on claim to support small business,  job opportunities, and the environment. And this bill touches on every single one of these things. If they don't act on this now our industry is going under," she said.

That's a lot of cans

Currently the state, which collects the initial deposit charge from stores at the point of purchase, also then keeps all the deposits paid for the cans and bottles which are never returned. 

In the last year for which data is available New York State harvested $121 million in unclaimed deposits, on 2.42 billion cans and bottles never returned.

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