Beverage Container Legislative Toolkit

Last updated October 16, 2024.

The Issue

Beverage containers – plastic bottles, glass bottles, and aluminum cans – are highly recyclable and can be redesigned to be reusable. Yet every year, millions of these containers are buried in landfills, burned at incinerators, or littered in the environment. Why? Because many states don’t have effective systems to collect, manage, and recycle or reuse these containers. But we can change that.

The Solution

Deposit return systems, or “Bottle Bills,” create recycling programs specifically designed to collect, manage, and recycle empty beverage containers. In fact, these programs have the highest recycling rates in the world. Even better, these programs will create the infrastructure and consumer culture needed to develop reusable and refillable beverage systems. That means having durable beverage containers that can be returned, washed, and refilled for repeated use.

The data are clear, Bottle Bills are the most effective and reliable way to recycle beverage containers. Many of these systems capture and recycle 90% of all beverage containers covered under the law. Better recycling means fewer materials are being buried in landfills or burned at incinerators. It also means less plastic is needed to make new beverage containers. On top of all that, Bottle Bills help combat litter. States without Bottle Bills have twice as much litter than states with Bottle Bills.

Here’s how a deposit return system works: A small refundable deposit is placed on recyclable and reusable beverage containers sold in the state. The consumer pays this deposit when buying their beverage and gets it back when returning the empty container for recycling or refilling. This creates a separate recycling stream for beverage containers, which keeps them clean, sorted, and more easily recycled. More importantly, the refundable deposit placed on each container motivates people to recycle.

SHARE THE TOOLKIT

NEED HELP WITH YOUR BILL?

Contact Just Zero

JOIN THE MOVEMENT

We understand that every state is unique and there isn’t a one-size-fits-all approach to enacting sensible and effective Zero Waste laws. We’ve designed this model legislation toolkit to be interactive and customizable, to help you achieve your goals and design a policy that works for you and your community.

1) Download Our Bill Template

This template will help you develop a bill that is customizable for your community. You’ll use the template as you navigate the toolkit and evaluate the different policy approaches. When you select a policy approach you want to move forward with, copy and paste the language from the interactive toolkit into your template.

Bill Template

2) Explore Policy Decisions

Use the toolkit to explore the policy decisions you can make to develop a tailored proposal that works for you. Each section provides various approaches you can take, along with examples from states and cities that have adopted this approach. The toolkit also includes sample language you can copy and paste into the model bill template to develop a bill that you feel will work best for your community.

3) Make Policy Decisions

With Beverage Container Recycling and Reuse Laws, the big policy decisions that we help you understand and navigate in our toolkit are:

How should the law define the types of beverage containers to be included in the program?
How should the law set (and adjust) the deposit and handling fee for beverage containers?
Should your law empower a Producer Responsibility Organization (see Section 4 below) to administer key parts of the program, or leave it to producers and distributors to fulfill their obligations with state oversight?
Which retailers have to take back empty containers and how do they take them back?

Terms Defined

Deposit – A fully refundable payment made by consumers when they purchase beverages. Consumers get the deposit back when they return empty containers to retailers and redemption centers for recycling.

Handling Fee – A small fee (usually about 3.5 cents) paid by beverage companies and distributors to retailers and redemption centers to cover the costs of collecting empty containers and returning them for recycling.

Beverage Container Recycling and Reuse Law

Before You Begin

To use this toolkit, click through each tab (Sections 1 – 11) to explore the different policy options available. From there, decide which policies you want to include in your bill. Each section has sample language for you to copy and paste into our downloadable bill template. This is the language you’ll use to create your bill. To help you get started, you can find an outline of the bill sections below.

Bill Outline

Section 1:
Definitions

Defines key terms in the bill.

Section 2:
Deposit Value

Sets the deposit and refund value for your Bottle Bill and should empower your state agency to increase this amount when needed.

Section 3:
Handling Fee

Sets the handling fee that Beverage Distributers will pay, which helps fund a robust redemption, recycling, and reuse network.

Section 4:
Producer Responsibility Organization

Only include this section if you want to incorporate a Producer Responsibility Organization in your Bottle Bill program. These Organizations are typically formed by beverage producers and/or distributors to more or less run a Bottle Bill program.

Section 5:
Acceptance of Beverage Containers

Controls who must accept empty redeemable containers. It will have a big impact on the effectiveness of the Bottle Bill program in your community.

Section 6:
Performance Standards

The best Bottle Bills set performance standards to ensure that the system performs at a high level.

Section 7:
Registration, Reporting, and Labeling

Requiring accurate registration, reporting, and labelling are essential parts of well-functioning Bottle Bill program.

Section 8:
Management of Deposits

A big question for your Bottle Bill program will be what to do with the unclaimed deposits. A strong Bottle Bill program reinvests this money back into the program.

Section 9:
Elimination of Toxic Substances in Beverage Containers

The language in this optional section prohibits producers and distributors from selling beverage containers that contain certain toxic chemicals.

Section 10:
Rules

Requires your state environmental agency with creating the rules that will help your Bottle Bill perform at its best.

Section 11:
Enforcement

The requirements, standards, and targets in your Bottle Bill don’t amount to much if your state can’t enforce them. This section allows your state to do just that.

Section 1: Definitions

Every bill starts with a definitions section that defines the key terms and components of the bill. We have provided suggested definitions for many of these terms in our bill template. For Beverage Container Recycling and Reuse Laws, definitions for the terms “beverage,” “beverage container,” “recycling,” and “reusable” are particularly important, so we’ve provided a bit more information on these below.

“Beverage”

This definition is significant because it will determine the types of beverages that are included in your Bottle Bill. In recent years, many older Bottle Bill programs have lagged behind because their definitions of “beverage” have not been updated since the 1980s. This means large categories of beverages that have grown in popularity over the past few decades – bottled water, sports drinks, energy drinks, coffees, teas, and juices – are left out. Other state programs exclude drinks like wine or liquor. Simply put, the more expansive the definition of “Beverage,” the better. With that in mind, we recommend that, if possible, you use “Option 1” below.

Review the following options and choose one to include in your bill.

Option 1
Option 2

Broad Definition with Limited Exceptions

The most comprehensive definition includes just about everything we typically think of as a “Beverage,” and only excludes limited types of liquids like medicine and infant formula. That’s because medicine and infant formula are essential to maintain human life and we want to make sure there are no barriers to access these liquids. No U.S. state has successfully implemented such an all-encompassing approach. However, several legislatures including Maryland and Illinois, have recently considered (but not yet passed) legislation with a broad “Beverage” definition.

Sample Language for Your Bill

If you take this approach, use the following definition of “beverage” in SECTION 1 of the bill template.

Copy and Paste

“Beverage” means any drinkable liquid intended for human oral consumption. The term “Beverage” does not include:
1. A drug regulated under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); or
2. Infant formula.

List Specific Beverage Types

This is a less comprehensive approach in which “beverage” is defined according to a list of specific drink types. If legislators in your state would prefer not to use the all-encompassing approach, a well-crafted list can still incorporate most, if not all, of the common beverages in our lives. States like Connecticut have used this approach when expanding older Bottle Bills to include new beverages. But amending bills to expand Bottle Bill programs can be difficult and time consuming, rather than having an all-encompassing approach at the outset.

Maine, with one of the more successful Bottle Bill programs in the country, uses a similar model to capture drinks like beer, spirits, wine, and all nonalcoholic carbonated or noncarbonated drinks. The key to this approach is to incorporate as many drinks as possible. As the bill moves through the legislative process, it’s important to keep an eye on the list to make sure lobbyists aren’t slowly removing key beverage types.

Sample Language for Your Bill

If you take this approach, use the following definition of “beverage” in SECTION 1 of the bill template.

Copy and Paste

“Beverage” means beer or other malt beverage, spirits and spirit-based drinks, wine, hard cider, hard seltzers, wine coolers, and all nonalcoholic carbonated or noncarbonated drinkable liquids intended for human oral consumption. The term “Beverage” does not include:

A drug regulated under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); or
Infant formula.

“Beverage Container”

The definition of “Beverage Container” concerns the type of bottles and cans that will be included in your Bottle Bill. This definition describes the material type and size of the drink containers covered by a program. Once again, the key is to use as broad a definition as possible. Most Bottle Bills in the U.S., including Oregon, Connecticut, Maine, and New York, cover all plastic, glass, and metal jars containing a “Beverage” as defined in the bill. The Bottle Bill programs in the U.S. exclude cartons, pouches, and aseptic packaging like drink boxes. This is because these beverage containers aren’t recyclable and are infrequently littered.

In terms of size limits, states like Connecticut include containers up to 3 liters. New York, however, goes up to 3.78 liters, and Maine up to 4 liters. In general, an upper limit of 3 liters works well to cover most beverage containers in our lives, but feel free to adjust the limit to what will work best for your state.

A more important consideration is the lower size limit for “Beverage Container.” Small, single serving alcohol bottles, commonly referred to as “nips,” are one of the most littered items on roadways and in parks. And yet, Maine is the only state with a Bottle Bill that includes nips in its definition of “Beverage Container.” We recommend using a lower size limit of 50 milliliters so that your Bottle Bill captures these small, pervasive containers – keeping them off the ground and out of streams and rivers.

Sample Language for Your Bill

Use the following definition of “Beverage Container” in SECTION 1 of the bill template. Adjust size limits as appropriate to suit the needs of your state.

Copy and Paste

“Beverage Container” means a sealed glass, plastic, or metal bottle, can, or jar containing between 50 milliliters and 3 liters of a beverage. “Beverage Container” shall not include:
1. Cartons;
2. Pouches; or
3. Aseptic packaging, such as a drink box.

“Recycling”

Many older Bottle Bills either do not define “Recycling” (e.g. Connecticut, New York, and Oregon) or include a broad definition that refers to reprocessing, reusing, and/or reconstituting material into new products (e.g. Maine and Vermont). Unfortunately, these approaches create potential loopholes that may allow “downcycling” or toxic, climate-damaging “chemical recycling” to count as recycling. To address this risk, we recommend using the following language to define “Recycle,” “Recycling,” and “Recycled.”

Sample Language for Your Bill

Use the following definition of “Recycle,” “Recycling,” and “Recycled” in SECTION 1 of the bill template.

Copy and Paste

“Recycle,” “Recycling,” and “Recycled” means the series of activities by which a covered product is collected, sorted, processed, and converted into a raw material with minimal loss in material quality for use in the production of a new product, including the original product. The term “Recycle,” “Recycling,” and “Recycled” shall not include:
1. Methods of sorting, processing, and aggregating materials from solid waste that do not preserve the original material quality, and, as a result, render the aggregated material no longer usable for manufacturing into the same or substantially similar product and can only be used for inferior purposes or to manufacture interior products (commonly referred to as “downcycling”);
2. The use of materials as fuel, a fuel substitute, or for energy production;
3. The use of materials for repurposing into infrastructure or construction, including, but not limited to, pavement for streets, sidewalks, or roads, building materials, or other infrastructure products, as determined by the Department;
4. The use of materials for alternative daily cover for a landfill;
5. Disposal within the footprint of a landfill; or
6. The process of materials through advanced recycling, chemical recycling, combustion, gasification, incineration, pyrolysis, solvolysis, thermal desorption, waste-to-energy, waste-to-fuel, or any other chemical or molecular conversion process.

“Reusable”

U.S. Bottle Bill programs dramatically improve recycling rates. This is, without question, a worthy and important goal. But they can do even more by incorporating and mandating reusable, refillable containers. No current U.S. Bottle Bill fully incorporates reuse. Maine’s program was recently amended to promote the use of reuseable and refillable beverage containers through a new grant program paid for by beverage companies. Elsewhere, momentum is building in states like California to amend existing programs to set reuse targets and in Maryland to implement new programs that prioritize reuse. Incorporating reusable containers in a Bottle Bill program starts with a good definition of “Reusable.” We recommend the following definition, which provides flexibility by allowing your state environmental agency to set the appropriate standards for reuse.

Sample Language for Your Bill

Use the following definition of “Reusable” in SECTION 1 of the bill template.

Copy and Paste

“Reusable” means, with respect to Beverage Containers, that the Beverage Container is:
1. Mechanically feasible for reuse or refill in current United States market conditions;
2. Is reusable or refillable for the same purpose for which it was designed for 45 reuse cycles, or for such a number of cycles as determined to be appropriate by the Department.

Section 2: Deposit Value

This section sets the deposit and refund value for your Bottle Bill. The deposit is what makes a Bottle Bill work and what sets Bottle Bills apart from all other recycling and reuse systems. This small, refundable deposit incentivizes consumers to return their bottles and cans to be recycled and reused. This, of course, means that the deposit must be set at a high enough value to provide the right incentive. Unsurprisingly, states with 10-cent deposits see a higher rate of folks returning their beverage containers to redeem their deposit than states with 5-cent deposits. For this reason, we recommend starting with a 10-cent deposit to get a higher redemption rate.

But there is more to consider than just deposit value. Many Bottle Bill states with 5-cent deposits have seen their redemption rates decline over time as inflation decreases the relative “value” of a 5-cent deposit. And yet, most of these states have struggled to pass new legislation that increases their deposits, largely due to well-funded opposition from the beverage industry. Presumably, a similar trend will play out over time for states with 10-cent deposits. The solution? Tie the deposit value in your Bottle Bill to the redemption rate for covered containers so that the deposit will increase if the redemption rate falls.

Oregon took this approach when it amended its Bottle Bill in 2011. The amendment provided that, if the redemption rate fell below 80% for two straight years, the deposit value would automatically increase from 5 cents to 10 cents. That deposit increase took effect in 2017, and Oregon’s redemption rate shot up to 85% over the next two years.

This approach to deposits and deposit increases may not work in every state, so we’ve laid out three different options below for you to consider.

Review the following options and choose one to use in your bill.

An Automatic Deposit Increase Tied to Redemption Targets

This option most closely resembles Oregon’s successful approach. The bill sets a 10-cent deposit, which will automatically increase if redemption targets (set in Section 6) are not met for two consecutive years. Depending on the political realities of your state, you could start with a 5-cent deposit (or perhaps a 15-cent deposit). The benefit of this strategy is that over time, the deposit will always land at the right value to ensure that redemption targets are met.

Similarly, your state may not be willing to entertain bill language that would increase the deposit beyond 15 cents. If that is the case, simply include subsections (a) and (b) of the bill text below and leave out subsection (c).

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 2 of the bill template.

Copy and Paste

A deposit of not less than $0.10 shall be paid by the consumer on each beverage container sold by a dealer. The dealer shall refund the full value of the deposit in accordance with Section 5 of this Act upon return of the empty beverage container.
Beginning four years after the effective date of this Act, a deposit of no less than $0.15 shall be paid by the consumer on each beverage container sold by a dealer if the redemption targets established in Section 6 of this Act are not met for two consecutive years.
Beginning four years after the effective date of any deposit increase pursuant to this Section, the deposit paid by the consumer on each beverage container sold by a dealer shall increase by $0.05 if the redemption targets established in Section 6 of this Act are not met for two consecutive years.

Empower Your State Environmental Agency to Increase Deposits

If legislators in your state are not interested in building automatic deposit increases into a Bottle Bill, they may be willing to empower your state environmental agency to adjust the deposit as needed if the program does not achieve redemption targets. No state has implemented a Bottle Bill with this type of deposit structure, but Maryland recently considered such an approach in a piece of legislation (which ultimately did not pass).

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 2 of the bill template.

Copy and Paste

A deposit of not less than $0.10 shall be paid by the consumer on each beverage container sold by a dealer. The dealer shall refund the full value of the deposit in accordance with Section 5 of this Act upon return of the empty beverage container.
The Department may adjust the deposit value if the Department determines that altering the deposit value is necessary to meet performance targets established in Section 6 of this Act.

10-Cent Deposit with No Increases

If you do not think that your state will be interested in a bill that ties the deposit value to redemption targets, you can always proceed with a straightforward 10-cent deposit. Connecticut took this approach when it increased its deposit from 5 cents to 10 cents.

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 2 of the bill template.

Copy and Paste

A deposit of not less than $0.10 shall be paid by the consumer on each beverage container sold by a dealer. The dealer shall refund the full value of the deposit in accordance with Section 4 of this Act upon return of the empty beverage container.

Section 3: Handling Fee

Handling fees are separate and distinct from refundable deposits and they are a key component of all the best Bottle Bill programs. They help fund a robust redemption, recycling, and reuse network. Beverage distributors, which are mainly middleman type companies that buy beverages from beverage producers and sell them to retailers, pay these fees to retailers and redemption centers. Fees are usually between 3-5 cents per container and cover the cost of collecting empty containers and returning them to the distributors, system operators, or Producer Responsibility Organizations (PROs explained in Section 4) for recycling or reuse. These fees also make the program work by allowing retailers and redemption centers to create space to store empty containers, pay staff members (creating local jobs in the process), and pay for equipment like reverse vending machines or bag drop systems.

Eight out of ten U.S. Bottle Bill programs, and most foreign Bottle Bill programs, rely on handling fees. The best thing about handling fees? They ensure that the beverage industry itself is on the hook for funding the recycling and reuse of beverage containers.

There are two main options for setting handling fees: (1) empower your state environmental agency to set the appropriate handling fee and adjust it as necessary to encourage more redemption locations; or (2) set a static handling fee without built-in adjustments. Each of these options is laid out below.

Review the following options and choose one to include in your bill.

Option 1
Option 2

Empower Your State Environmental Agency to Set and Adjust the Handling Fee

If the handling fee is high enough, retailers, redemption centers, and other redemption locations are adequately compensated and should have plenty of modern, convenient redemption options open to all consumers. If the handling fee is too low, there will likely be fewer independent redemption centers, and retailers may struggle to keep up with the demands of collecting containers from customers. Connecticut, for example, increased its handling fee in 2021 because redemption locations weren’t adequately compensated by a handling fee that had fallen behind inflation. Maine did the same in 2023.

This option not only empowers your state environmental agency to set an appropriate handling fee, but also to adjust that fee periodically if there are not enough redemption locations to conveniently serve all customers. Maryland considered such an approach in its recent Bottle Bill legislation.

Sample Language for Your Bill

Copy and Paste

The Department shall set a handling fee to be paid by distributors or a producer responsibility organization for each beverage container redeemed by a retailer, redemption center, or other person that accepts empty redeemable beverage containers for redemption.
The Department shall set the handling fee at an amount that covers the costs of collecting, sorting, processing, and transporting empty beverage containers for recycling, reuse, or refilling.
The Department may increase the handling fee if the Department determines an increase is necessary to encourage the establishment of more redemption facilities.

Set a Static Handling Fee

If legislators in your state are not interested in giving your state environmental agency the power and flexibility to set and adjust the handling fee, you can set the handling fee value in the bill. Currently, this is the approach adopted by most states with a handling fee. If you take this approach, we recommend starting with a 4-cent handling fee, which in many states is adequate to compensate retailers and redemption centers for their work collecting and sorting containers. You should adjust as needed to suit your state.

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 3 of the bill template.

Copy and Paste

A distributor or producer responsibility organization shall pay a handling fee of 4 cents for each beverage container redeemed by retailer, redemption center, or other person that accepts empty redeemable beverage containers.

Section 4: Producer Responsibility Organization

Only include this section if you want to incorporate a Producer Responsibility Organization in your Bottle Bill program.

Producer Responsibility Organizations, also known as a PRO or a Stewardship Organization, have become one of the most hotly debated components of Bottle Bill legislation over the past several years. These organizations are typically formed by beverage producers and/or distributors to more or less run a Bottle Bill program. However, the scope of their power, responsibilities, and transparency can vary significantly.

Supporters of PROs claim that they can improve efficiency and lower administrative burdens for state environmental agencies. Critics explain that too much power given to these organizations with too little oversight is problematic. This is because PROs are made up of beverage industry representatives who naturally may prioritize industry interests rather than making the program as strong as it can be. Remember, the beverage container waste problem is one the beverage industry created.

Currently, Oregon is the only state in the U.S. that incorporates a PRO – called the Oregon Beverage Recycling Cooperative – in its bottle bill program. Connecticut created a potential pathway for a PRO when it modernized its program in 2021. Additionally, several states that recently considered creating new Bottle Bill programs, including Illinois, Maryland, and Rhode Island, have included PROs in their legislation.

This much is clear: The debate over PROs is not going away. As states consider extended producer responsibility for packaging programs, many legislators across the country have expressed a clear preference for PRO involvement in Bottle Bill programs. But as with so many other moving parts in Bottle Bill programs, the devil is in the details when it comes to legislative language around PROs.

If your state is interested in incorporating a PRO into its Bottle Bill legislation, we recommend choosing from one of the following two options, each of which will help ensure that any PRO involved with your Bottle Bill program will be subject to adequate oversight and will not be granted unfettered authority.

Review the following options and choose one to include in your bill.

Option 1
Option 2

Optional Limited Producer Responsibility Organization

This is the most straightforward approach to a Producer Responsibility Organization. It simply allows, but does not require, beverage producers and distributors to create a PRO to fulfill their obligations as a part of the Bottle Bill program. This includes collecting containers, paying handling fees, and tracking deposits. This approach does not empower the PRO to administer the program or set rules or standards. Do NOT use this approach if you empower the PRO to perform similar actions elsewhere in your bill.

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 4 of the bill template.

Copy and Paste

A group of producers and distributors may elect to create or appoint a non-profit organization to fulfill their obligations under the requirements of this act, provided that the Producer Responsibility Organization shall not be delegated any authority by the Department to oversee, enforce, or manage the requirements of this act.

Full Producer Responsibility Organization with State Oversight and Adequate Transparency

This approach will create a robust Producer Responsibility Organization with far-reaching authority to manage beverage container redemption, recycling, and reuse through a Bottle Bill program. The language below would also create significant reporting and transparency requirements for the PRO to guarantee that it meets performance obligations and operates the Bottle Bill program in a way that works for all residents and businesses in your state. Much of the language below is similar to PRO-based programs considered by Maryland and Rhode Island in recent years. By empowering the PRO to fully administer the program, it would create a cooperative system similar to that in Oregon, but with added protections for consumers and businesses.

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 4 of the bill template.

Copy and Paste

Within 6 months of the effective date of this Act, the Department shall accept applications from Producer Responsibility Organizations to represent producers and distributors in fulfilling the requirements of this part.
Within 8 months of the effective date of this Act, the Department may approve, for a period not to exceed 10 years, a single Producer Responsibility Organization as a system operator for the program if the Producer Responsibility Organization demonstrates that it:
1. Is an independent nonprofit organization that qualifies for tax exemption under 26 U.S.C. § 501(c)(3) of the Federal Internal Revenue Code;
2. Has the ability to administer the requirements of a beverage container recycling and reuse plan under this section;Has a governing board consisting of producers and distributors that represent the diversity of redeemable beverage containers in the market;
3. Has adequate financial responsibility and financial controls in place to ensure proper management of funds, including fraud prevention measures and an audit schedule; and
4. Meets any other requirements set by the Department.
The Department shall revoke the approval of a Producer Responsibility Organization if the Department determines that the Producer Responsibility Organization:
1. Failed to meet the requirements of this section; or
2. Failed to implement and administer an approved beverage container recycling and reuse plan in accordance with subsection (d) of this section.
Within 12 months of the effective date of this Act, and every 10 years thereafter, the Producer Responsibility Organization selected by the Department in accordance with subsection (b) of this section shall submit to the Department a beverage container recycling and reuse plan that shall:
1. Identify and included contact information for each producer and distributor intended to be covered under the plan;
2. Identify each brand of redeemable beverage container intended to be sold under the plan, including the size and material of the redeemable beverage containers for each brand and whether the redeemable beverage containers are refillable;
3. Describe:
  1. How the Producer Responsibility Organization will meet performance targets described in section 6 of this Act;
  2. How the Producer Responsibility Organization will incorporate as program objectives the reduction of waste, expansion of reuse systems, and improved design of beverage containers, including anticipated investments in achieving these objectives and the source of funding for those investments;
  3. The stakeholders consulted in developing the plan and how stakeholder comments were considered and reflected in the development of the plan, including a list of recommendations that were incorporated in the plan and a list of rejected recommendations and the reasons for rejection;
  4. The administration and implementation of the plan, including any staffing that will be necessary for these purposes;
  5. The actions that have been taken and will be taken for public outreach, education, and communication;
  6. Anticipated costs of implementing the plan, broken down by year;
  7. A fee structure for producers and distributors participating in the Producer Responsibility Organization that covers the costs of administrating the Producer Responsibility Organization;
  8. A closure and transfer plan for handling the affairs of the Producer Responsibility Organization that ensures that each producer and distributor intended to be covered under the plan can fulfill their obligations in the event that the Producer Responsibility Organization dissolves or has its approval revoked by the Department;
  9. Any other information requested by the Department.
Within 3 months after receipt of a beverage container recycling and reuse plan submitted to the Department under this section, the Department shall approve, approve with conditions, or deny the plan.
1. In determining whether to approve, approve with conditions, or deny a beverage container recycling and reuse plan, the Department shall consider whether the plan complies with the requirements of this section and whether there was sufficient engagement with stakeholders, including local governments, retailers, distributors, and on-premises sells in development the plan.
A beverage container recycling and reuse plan approved by the Department may be amended with approval of the Department.
In implementing and administering a beverage container recycling and reuse plan under this section, a Producer Responsibility Organization shall:
1. Facilitate logistics, the initiation of deposits, and the refund of those deposits under the plan;
2. Coordinate the logistics for collecting redeemable beverage containers from retailers;
3. Establish procedures for tracking redeemable beverage containers sold in the state;
4. Design and operate services for the transportation and processing of redeemable beverage containers;
5. Develop and implement a plan for ensuring the availability of a wide range of convenient redemption locations and redemption facilities that are easy to use, accessible, and meet or exceed the convenience standards established pursuant to section 6 of this Act;
6. Develop and implement a plan for the distribution, operation, and maintenance of beverage container redemption and processing methods, including reverse vending machines, bag drop programs, and account-based bulk processing programs;
7. Develop accounting and control standards;
8. Implement accounting, audit, payment, and reporting procedures;
9. Market redeemable beverage container materials for recycling;
10. Fund a marketing program to educate the public about the program;
11. Establish a system for reporting key information to the Department on a quarterly basis; and
12. Create incentives for the development of refillable and reusable beverage container systems.
On request of the Department, the Producer Responsibility Organization shall submit a copy of its financial records to the Department for a financial audit.
On or before April 1 of each year, beginning 2 years after the effective date of this Act, the Producer Responsibility Organization shall submit a report to the Department on the progress made in the preceding calendar year toward meeting the goals of the program and the beverage container recycling and reuse plan and the performance targets in section 6 of this Act.
1. The report submitted under this subsection shall include:
  1. A list of each producer and distributor participating in the Producer Responsibility Organization and the registration form required under section 7 of this Act for each producer and distributor participating in the Producer Responsibility Organization;
  2. The number of redeemable beverage containers sold in the state, sorted by material type, refund value, and whether the container can be refilled or reused;
  3. The number of empty beverage containers redeemed;
  4. The number of empty beverage containers redeemed at each redemption location, redemption facility, reverse vending machine, bag drop program, account-based bulk processing program, or other beverage container redemption and processing method sorted by material type, refund value, and whether the empty redeemable beverage container can be refilled or reused;
  5. The redemption rate and recycling rate for nonrefillable redeemable beverage containers sold in the state sorted by material type, number of containers sold, and container weight;
  6. The location of each redemption location and redemption facility in the state and the redemption rate used at each location and facility;
  7. The progress made toward achieving performance targets;If performance targets were not achieved, a description of the actions proposed to achieve the performance targets;
  8. A description of any improvements made to make returning empty redeemable beverage containers easier and more convenient;
  9. The identification and description of areas that do not have readily available options for redeeming an empty redeemable beverage container and actions the Producer Responsibility Organization will take to improve options in these areas;
  10. The number of consumer complaints per month, sorted by redemption location and redemption facility;
  11. The total cost of implementing the beverage container recycling and reuse plan, as determined by an independent financial auditor;
  12. Financial statements detailing all deposits received and refunds issued by each producer and distributor covered under the beverage container recycling and reuse plan;
  13. The total among of deposits initiated, refunds issued, and unclaimed deposits collected under the beverage container recycling and reuse plan;
  14. Expenditures and revenues sorted by source, including fees paid by producers and distributors, revenue from the sale of scrap materials, and handling fees;
  15. Samples of all education materials provided to consumers, retailers, and other entities;
  16. A detailed description of investments made in new redemption facilities, redemption locations, and redemption methods;
  17. The location of new redemption facilities, redemption locations, and redemption methods;
  18. A detailed description of changes made by producers to increase the recyclability of redeemable beverage containers;
  19. A detailed description of any incidents of fraud and efforts to prevent fraud; and
  20. Any other information required by the Department.
2. The financial, production, and sales data of individual producers and distributors reported to the Department under this section shall be kept confidential.
3. The Department shall post the report submitted under this section on the Department’s website in a manner that protects the confidentiality of the date specified under subsection (2) of this section.

Section 5: Acceptance of Beverage Containers

This section governs who must accept empty beverage containers covered in this program when the customer returns them to get back (redeem) their deposit. The ultimate goal here is to ensure the highest number and concentration of redemption locations possible, making it easy for consumers to return their containers and collect their refunded deposits. To that end, the best Bottle Bills incorporate “return to retail” language that requires retailers (grocery stores, big box stores, convenience stores, etc.) to accept the kinds of beverage containers they sell for redemption and to pay refunds. This requirement is included in every single Bottle Bill program in the U.S.

Unfortunately, retailers aren’t keen on being required to accept containers for recycling, and many resist attempts to include “return to retail” provisions in Bottle Bill legislation. To ease retailer burdens while also keeping the program convenient for customers, there are ways to carve out limited exemptions in Bottle Bills that allow certain retailers to avoid redemption obligations.

For example, Maine exempts all retailers under 5,000 square feet from redemption obligations and even allows larger retailers to opt out if they have an agreement with a nearby redemption center to accept empty containers on behalf of the retailer. Similarly, Oregon exempts certain retailers from redemption obligations if they are within two miles of a full-service redemption center. Oregon also limits the redemption obligations of other retailers within three-and-a-half miles of a full-service redemption center.

Redemption centers offer an alternative to retail locations, allow consumers to bring all their containers to one location, and, as in the case of Maine and Oregon, can be used to support a thriving network of redemption options that could be used to ease retailer burdens. Many successful Bottle Bill programs incorporate a robust network of freestanding redemption centers – either independently run or administered by a Producer Responsibility Organization (PRO).

There is no one-size-fits-all approach to balancing return to retail with redemption centers while also considering the need for convenience for both consumers and retailers. That’s why we’re once again presenting several different options for beverage container acceptance for your Bottle Bill. Each of these options takes a slightly different approach to return to retail, but all include the same language regarding independent redemption centers.

Review the following options and choose one to include in your bill.

Universal Return to Retail with Limited Size-Based Exemptions

This approach ensures that most retail locations will have to accept empty redeemable beverage containers. This makes the system extremely convenient for consumers. However, given that retailers and their lobbyists almost always oppose Bottle Bill programs, this will increase the opposition to your bill.

States like New York and Massachusetts require all retailers to accept empty beverage containers of the same type, size, and brand sold by the retailer with no exemptions. This option adheres closest to that approach, but still provides some flexibility for retailers by exempting smaller businesses from redemption obligations. We’ve set the threshold at 2,500 square feet here, but if you choose this approach, please adjust based on what you think will work best for your state.

Sample Language for Your Bill

you take this approach, copy and paste the following into SECTION 5 of the bill template.

Copy and Paste

A dealer operating a retail space of 2,500 square feet or more shall accept at their place of business from a redeemer any empty beverage container of the kind sold by the dealer during any period that the dealer is open for business and shall pay to the redeemer the deposit value for each beverage container redeemed.
A person may establish and operate a redemption center pursuant to rules established by the Department under section 10 of this Act. Redemption centers shall accept all redeemable beverage containers sold in the state.
A dealer or redemption center may utilize reverse vending machines, bag drop programs, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department pursuant to rules established by the Department under section 10 of this Act.
Redemptions of the deposit value must be in legal tender, or a script or receipt from a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department, providing that the script or receipt can be exchanged for legal tender for a period of not less than 60 days without requiring the purchase of other goods. The use or presence of a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department shall not relieve a dealer or redemption center of any obligation imposed pursuant to this chapter. If a dealer or redemption center utilizes a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department to redeem containers, the dealer shall provide redemption of beverage containers when the reverse vending machine, bag drop program, account-based bulk processing program, or other beverage container redemption and processing method approved by the Department is full, broken, under repair, or does not accept a beverage container that the dealer or redemption center is obligated to accept.
A dealer or redemption center may refuse to accept from a redeemer any empty beverage container that is not clean, is broken, or contains material foreign to the normal contents of the container.
A distributor shall accept from a dealer or redemption center any empty beverage containers of the design, shape, size, color, composition, and brand sold, distributed, or offered for sale by the distributor in the state, and shall pay the dealer or redemption center a handling fee as established by the Department pursuant to section 3 of this Act for each such beverage container.
A distributor shall accept and redeem all such empty beverage containers from a dealer or redemption center without limitation on quantity.

Convenience Zone Exemptions for Certain Retailers

Maine and Oregon carve out exemptions from the return to retail requirement based on the proximity of redemption centers. Connecticut takes a similar approach, exempting retailers from redemption requirements if a redemption center is located within a one-mile radius of the retailer. Location based exemptions can be an effective tool in finding the balance between convenience for consumers and convenience for retailers. In fact, it can help motivate retailers to come together and create free standing redemption centers, which increases redemption options for consumers.

The key to this approach is the size of the radius you set for your convenience zone. If it is too large, you risk creating an inequitable program by forcing consumers to travel longer distances to redeem their containers. If it is too small, it may not be financially viable for retailers. The right-sized radius is highly location dependent. In a more rural state, a larger radius might work. In a more compact state, or in a state where more folks depend on public transportation, the radius may need to be smaller. We’ve started with a one-mile radius here. Again, adjust that number based on the needs and realities of your community.

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 5 of the bill template.

Copy and Paste

A dealer operating a retail space of 2,500 square feet or more shall accept at their place of business from a redeemer any empty beverage container of the kind sold by the dealer during any period that the dealer is open for business and shall pay to the redeemer the deposit value for each beverage container redeemed, unless the dealer has a written agreement with a redemption center to provide redemption services on behalf of the dealer and that redemption center is within a 1-mile radius of the dealer.
A person may establish and operate a redemption center pursuant to rules established by the Department under section 10 of this Act. Redemption centers shall accept all redeemable beverage containers sold in the state.
A dealer or redemption center may utilize reverse vending machines, bag drop programs, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department pursuant to rules established by the Department under section 10 of this Act.
Redemptions of the deposit value must be in legal tender, or a script or receipt from a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department, providing that the script or receipt can be exchanged for legal tender for a period of not less than 60 days without requiring the purchase of other goods. The use or presence of a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department shall not relieve a dealer or redemption center of any obligation imposed pursuant to this chapter. If a dealer or redemption center utilizes a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department to redeem containers, the dealer shall provide redemption of beverage containers when the reverse vending machine, bag drop program, account-based bulk processing program, or other beverage container redemption and processing method approved by the Department is full, broken, under repair, or does not accept a beverage container that the dealer or redemption center is obligated to accept.
A dealer or redemption center may refuse to accept from a redeemer any empty beverage container that is not clean, is broken, or contains material foreign to the normal contents of the container.
A distributor shall accept from a dealer or redemption center any empty beverage containers of the design, shape, size, color, composition, and brand sold, distributed, or offered for sale by the distributor in the state, and shall pay the dealer or redemption center a handling fee as established by the Department pursuant to section 3 of this Act for each such beverage container.
A distributor shall accept and redeem all such empty beverage containers from a dealer or redemption center without limitation on quantity.

Retailer Exemptions Based on Available Redemption Locations

Another potential approach to return to retail exemptions involves setting convenience metrics based on the concentration of redemption locations within a given geographic area (generally a census tract – small government-defined areas in every state that typically contain up to 8,000 people). Instead of being automatic like in Option 2, this approach allows a retailer to request exemption from the Department if there are enough redemption locations within a given census tract. This approach works particularly well in a Producer Responsibility Organization model because the PRO working with retailers may be incentivized to create enough independent redemption locations so that more retailers can opt out. We’ve set the target concentration at 1 redemption location for every 3,000 persons in a given census tract, but as always, adjust that target based on the needs of your community.

Sample Language for Your Bill

If you take this approach, copy and paste the following into SECTION 5 of the bill template.

Copy and Paste

A dealer operating a retail space of 2,500 square feet or more shall accept at their place of business from a redeemer any empty beverage container of the kind sold by the dealer during any period that the dealer is open for business and shall pay to the redeemer the deposit value for each beverage container redeemed.
Upon request, the Department may, pursuant to rules established by the Department under section 10 of this Act, exempt a dealer from container acceptance obligations under this section if the Department determines that there is more than 1 point of redemption for every 3,000 persons in the census tract in which that dealer is located. The Department shall revoke an exemption granted under this section if it at any point it determines that there is less than 1 point of redemption for every 3,000 persons in the census tract in which a dealer is located.
A person may establish and operate a redemption center pursuant to rules established by the Department under section 10 of this Act. Redemption centers shall accept all redeemable beverage containers sold in the state.
A dealer or redemption center may utilize reverse vending machines, bag drop programs, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department pursuant to rules established by the Department under section 10 of this Act.
Redemptions of the deposit value must be in legal tender, or a script or receipt from a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department, providing that the script or receipt can be exchanged for legal tender for a period of not less than 60 days without requiring the purchase of other goods. The use or presence of a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department shall not relieve a dealer or redemption center of any obligation imposed pursuant to this chapter. If a dealer or redemption center utilizes a reverse vending machine, bag drop program, an account-based bulk processing program, or other beverage container redemption and processing method approved by the Department to redeem containers, the dealer shall provide redemption of beverage containers when the reverse vending machine, bag drop program, account-based bulk processing program, or other beverage container redemption and processing method approved by the Department is full, broken, under repair, or does not accept a beverage container that the dealer or redemption center is obligated to accept.
A dealer or redemption center may refuse to accept from a redeemer any empty beverage container that is not clean, is broken, or contains material foreign to the normal contents of the container.
A distributor shall accept from a dealer or redemption center any empty beverage containers of the design, shape, size, color, composition, and brand sold, distributed, or offered for sale by the distributor in the state, and shall pay the dealer or redemption center a handling fee as established by the Department pursuant to section 3 of this Act for each such beverage container.
A distributor shall accept and redeem all such empty beverage containers from a dealer or redemption center without limitation on quantity.

Section 6: Performance Standards

The best Bottle Bills set performance standards to ensure that the system performs at a high level. Oregon successfully used a performance standard approach to increase its deposit to 10 cents as its redemption rate lagged. A modern Bottle Bill should set even more performance standards than just the redemption target.

For example, Bottle Bill legislation recently considered in Maryland would have set redemption, recycling, reuse, and convenience standards. Convenience standards guarantee that there are enough redemption center locations for customers. We’ve drafted model language for your Bottle Bill that incorporates all four of these performance standards – redemption, recycling, reuse, and convenience. As always, feel free to adjust these targets to fit the needs and political realities of your state.

Sample Language for Your Bill

Copy and paste the following into SECTION 6 of the bill template.

Copy and Paste

Redemption requirements:
1. Beginning four years after the effective date of this Act, at least 70% of beverage containers sold in the state shall be redeemed.Beginning six years after the effective date of this Act, at least 80% of beverage containers sold in the state shall be redeemed.
2. Beginning eight years after the effective date of this Act, at least 85% of beverage containers sold in the state shall be redeemed.
Recycling requirements:
1. Beginning four years after the effective date of this Act, at least 60% of single-use beverage containers sold in the state shall be recycled.
2. Beginning six years after the effective date of this Act, at least 70% of single-use beverage containers sold in the state shall be recycled.
3. Beginning eight years after the effective date of this Act, at least 75% of single-use beverage containers sold in the state shall be recycled.
Reuse requirements:
1. The Department shall require each producer and distributor, or a designated Producer Responsibility Organization, to work with dealers in the state to develop a plan that ensures that:
  1. Beginning six years after the effective date of this Act, at least 10% of all beverage containers sold in the state are returned and refilled.
  2. Beginning eight years after the effective date of this Act, at least 25% of all beverage containers sold in the state are returned and refilled.
  3. Beginning ten years after the effective date of this Act, at least 40% of all beverage containers sold in the state are returned and refilled.
Convenience requirements:
1. Pursuant to section 10 of this Act, the Department shall establish convenience standards for the concentration, coverage, and availability of redemption options across the state.

Section 7: Registration, Reporting, and Labeling

This section of your Bottle Bill directs how beverage producers and distributors in your state will register with your state environmental agency or Producer Responsibility Organization (PRO), which allows them to sell beverages. It also directs how producers and distributors report sales and redemption data, and how they must label their beverage containers. Accurate registration, reporting, and labelling are essential parts of well-functioning Bottle Bill programs because these requirements promote transparency and accountability in the entities that are being regulated.

The key difference between the two options we’ve set out below is whether your Bottle Bill incorporates a PRO in Section 4 with a broad grant of authority to run the Bottle Bill system.

If you did not empower a PRO to run the system in Section 4, you should choose Option 1.
If you did empower a PRO to run the system in Section 4, you should choose Option 2.

Option 1
Option 2

Registration, Reporting, and Labelling Without a Full Producer Responsibility Organization.

If your Bottle Bill does not incorporate a full PRO, beverage producers and distributors will need to register with and report key data to your state environmental agency.

Sample Language for Your Bill

If your Bottle Bill does not empower a Producer Responsibility Organization to run the system in Section 4, copy and paste the following into SECTION 7 of the bill template.

Copy and Paste

No distributor shall sell a beverage container in the state without the distributor registering the beverage container with the Department prior to the sale. This registration shall take place on a form provided by the Department and include, at a minimum:
1. The name and principal business address of the distributor;The name of the beverage and the container size;The material type of the beverage container;Information regarding the presence of a UPC on the beverage container and the percentage of containers covered the UPC;Methods the distributor intends to use to prevent the fraudulent sale and redemption of beverage containers not sold within the state;The name of the person picking up the empty beverage containers from dealers, redemption centers, and curbside recycling entities, if that person is different from the distributor; and
2. Any other information required by the Department.
The Department may request that a distributor provide a copy of the container label, or a picture of any beverage container sold or offered for sale in the state on which it initiates a deposit.
A distributor of a beverage container shall annually report to the Department:
1. The total amount of beverage containers sold, offered for sale, or distributed into the state during the prior calendar year, including a breakdown by type of beverage, size, material type, and quantity redeemed;
2. The amount of single-use beverage containers sold, offered for sale, or distributed into the state during the prior calendar year by type of beverage, size, material type, and quantity redeemed;
3. The amount of reusable beverage containers sold, offered for sale, or distributed into the state during the prior calendar year by type of beverage, size, material type, and quantity redeemed;
4. Information regarding the quantity and final destination of redeemed beverage containers during the prior calendar year;
A distributor shall place a deposit as determined by section 2 of this Act on all beverage containers sold, offered for sale, or distributed into the sale.
Any manufacturer of a beverage container that is sold in the state shall include on the label of each beverage container:
1. A standardized description of the applicable refund value in such a manner that it is clearly visible;
2. A UPC barcode to identify and validate participation in the program.
3. For reusable beverage containers, easy to read text indicating the container is reusable and any other markings deemed necessary for the container to be returned to the reuse and return system.

Registration, Reporting, and Labeling with a Full Producer Responsibility Organization

If your Bottle Bill incorporates a full PRO, beverage producers and distributors will need to register with the PRO. The PRO, in turn, will be responsible for reporting all key data to your state environmental agency.

Sample Language for Your Bill

If your Bottle Bill does empower a Producer Responsibility Organization to run the system in Section 2, copy and paste the following into SECTION 7 of the bill template.

Copy and Paste

No distributor shall sell a beverage container in the state unless the distributor:
1. Is a part of a Producer Responsibility Organization that has been approved by the Department and has a beverage container recycling and reuse plan that has been approved by the Department under section 4 of this Act; and
2. Has registered with the Producer Responsibility Organization using a form provided by the Department that includes, at a minimum:
  1. The name and principal business address of the distributor;
  2. The name of the beverage and the container size;
  3. The material type of the beverage container;
  4. Information regarding the presence of a UPC on the beverage container and the percentage of containers covered the UPC;Methods the distributor intends to use to prevent the fraudulent sale and redemption of beverage containers not sold within the state;
  5. The name of the person picking up the empty beverage containers from dealers, redemption centers, and curbside recycling entities, if that person is different from the distributor; and
  6. Any other information required by the Department.
The Department may request that a distributor provide a copy of the container label, or a picture of any beverage container sold or offered for sale in the state on which it initiates a deposit.
A distributor shall place a deposit as determined by Section 2 of this Act on all beverage containers sold, offered for sale, or distributed into the sale.
Any manufacturer of a beverage container that is sold in the state shall include on the label of each beverage container:
1. A standardized description of the applicable refund value in such a manner that it is clearly visible;
2. A UPC barcode to identify and validate participation in the program.
3. For reusable beverage containers, easy to read text indicating the container is reusable and any other markings deemed necessary for the container to be returned to the reuse and return system.

Section 8: Management of Deposits

The management of deposits paid on beverage containers is another key behind-the-scenes component of any Bottle Bill program. Every modern program requires that these deposits be held in a separate account by the deposit initiator (i.e. the first entity that sells a beverage, typically a producer or distributor) and then paid back when empty containers are redeemed. The best, most transparent programs also require that the deposit initiators report to either a state environmental agency or a Producer Responsibility Organization (PRO) the total amounts of deposits collected and paid out. Any unclaimed deposits – the money left over from people who purchase a redeemable beverage container but never return it to get the deposit back – are turned over to either a state environmental agency or a PRO.

A big question for your Bottle Bill program will be what to do with the unclaimed deposits. We recommend that this money be reinvested in your Bottle Bill program to cover costs incurred by your state environmental agency and/or PRO and to fund a grant program to invest in recycling and reuse in your state.

As with registration, reporting, and labelling provisions in Section 7, we’re presenting two options here based on whether your Bottle Bill incorporates a PRO with broad authority to run the Bottle Bill system.

If you did not empower a PRO to run the system in Section 4, you should choose Option 1 to copy and paste into Section 8 of the bill template.
If you did empower a PRO to run the system in Section 4, you should choose Option 2 to copy and paste into Section 8 of the bill template.

Option 1
Option 2

Managing Deposits Without a Full Producer Responsibility Organization

If your Bottle Bill does not incorporate a full PRO, deposit initiators will report and turn over unclaimed deposits to your state environmental agency.

Sample Language for Your Bill

If your Bottle Bill does not empower a Producer Responsibility Organization to run the system, copy and paste the following into SECTION 8 of the bill template.

Copy and Paste

Each deposit initiator who receives deposits under this act shall segregate said deposits in a deposit transaction account which shall be maintained separately from all other revenues.
The funds in the deposit transaction account may only be used to pay the refund value of an empty redeemable beverage container being redeemed.
Each deposit initiator shall report to the Department by the tenth day of each month, the following information:
1. The number of redeemable beverage containers sold, and the number of beverage containers redeemed in the previous month;
2. The funds deposited into the deposit transaction account and the refunds issued from the deposit transaction account in the previous month and most recent three-month period;
3. Any income earned on amounts in the deposit transaction account during the preceding month;
4. The balance in the deposit transaction account at the close of the preceding month;
5. And any other information as required by the Department.
Unclaimed deposits are calculated as the amount of funds transferred to a deposit transaction account that are in excess of the sum of:
1. Interest income earned on amounts in the deposit transaction account during that month; and
2. The total amount of refund values received by the deposit initiator for beverage containers during that month and the two preceding months.
By the tenth day of each month, each deposit initiator shall turn over to the Department any deposit amounts deemed to be unclaimed at the close of the preceding month, pursuant to subsection (d) of this section. Such amounts may be paid from the deposit transaction account. Amounts collected by the Department pursuant to this section shall be retained by the Department to cover the costs of overseeing and administering the program. All remaining funds after the Department is compensated for the costs of overseeing and administering the program shall be deposited into the Beverage Container Recycling and Reuse Grant Fund described in subsection (f) of this section.
The Department shall administer a Beverage Container Recycling and Reuse Grant Fund to be funded from a portion of the unclaimed deposits transferred to the Department by deposit initiators.
1. The purpose of the Beverage Container Recycling and Reuse Grant Fund is to provide funding for projects that:
  1. Increase the reuse and recycling of beverage containers in the state; and
  2. Reduce the volume of litter from beverage containers in the state.
2. The following entities are eligible for a grant under the Beverage Container Recycling and Reuse Grant Fund:
  1. A nonprofit organization that qualifies for tax exemption under 26 U.S.C. § 501(c)(3) of the Federal Internal Revenue Code;
  2. A school or an institution of higher education;
  3. A county or municipal organization;
  4. A for-profit entity; and
  5. A public-private partnership.
3. Pursuant to section 10 of this Act, the Department shall establish regulations concerning:
  1. The application process for an entity to apply for a grant;
  2. The criteria for evaluating and awarding grants;
  3. Reporting and evaluation requirements for a grant awarded under this section; and
  4. Any other requirements the Department determines are necessary for administering and implementing grants awarded under the Beverage Container Recycling and Reuse Grant Fund.
If in any month the authorized payments from the deposit transaction account by a deposit initiator exceed the funds that are or should be in the deposit transaction account, the state shall reimburse the deposit initiator the amount of excess funds remitted to the state, provided, however, that such reimbursements to a deposit initiator shall not exceed:
1. Amounts paid by the deposit initiator to the state pursuant to this section in the preceding 24 months; or
2. Amounts paid by the state to the deposit initiator pursuant to this section during the preceding 24 months.

Managing Deposits with a Full Producer Responsibility Organization

If your Bottle Bill incorporates a full PRO, deposit initiators will report and turn over unclaimed deposits to the Producer Responsibility Organization, which will in turn transfer a portion of the unclaimed deposits to the state environmental agency.

Sample Language for Your Bill

If your Bottle Bill does empower a Producer Responsibility Organization to run the system, copy and paste the following into SECTION 8 of the bill template.

Copy and Paste

Each deposit initiator who receives deposits under this act shall segregate said deposits in a deposit transaction account which shall be maintained separately from all other revenues.
The funds in the deposit transaction account may only be used to pay the refund value of an empty redeemable beverage container being redeemed.
Each deposit initiator shall report to the Producer Responsibility Organization by the tenth day of each month, the following information:
1. The number of redeemable beverage containers sold, and the number of beverage containers redeemed in the previous month;
2. The funds deposited into the deposit transaction account and the refunds issued from the deposit transaction account in the previous month and most recent three-month period;
3. Any income earned on amounts in the deposit transaction account during the preceding month;
4. The balance in the deposit transaction account at the close of the preceding month;
5. And any other information as required by the Department.
Unclaimed deposits are calculated as the amount of funds transferred to a deposit transaction account that are in excess of the sum of:
1. Interest income earned on amounts in the deposit transaction account during that month; and
2. The total amount of refund values received by the deposit initiator for beverage containers during that month and the two preceding months.
By the tenth day of each month, each deposit initiator shall turn over to the Producer Responsibility Organization any deposit amounts deemed to be unclaimed at the close of the preceding month, pursuant to subsection (d) of this section. Such amounts may be paid from the deposit transaction account. Amounts collected by the Producer Responsibility Organization pursuant to this section shall be held in a reserve account to manage all unclaimed deposits.
1. By the twentieth day of each month, the Producer Responsibility Organization shall transfer 40% of all unclaimed deposit amounts deemed to be unclaimed at the close of the preceding month, pursuant to subsection (d) of this section. Amounts collected by the Department pursuant to this section shall be retained by the Department to cover the costs of overseeing and administering the program. After the Department is compensated for the costs of overseeing and administering the program, the Department shall deposit all remaining funds into the Beverage Container Recycling and Reuse Grant Fund described in subsection (g) of this section.
2. The Producer Responsibility Organization shall use the remaining funds in the reserve account to:
  1. Achieve the objectives of the Producer Responsibility Organization’s beverage container recycling and reuse plan described in section 4 of this Act; and
  2. Meet or exceed the performance standards described in section 6 of this Act.
The Department shall administer a Beverage Container Recycling and Reuse Grant Fund to be funded from a portion of the unclaimed deposits transferred to the Department by the Producer Responsibility Organization.
1. The purpose of the Beverage Container Recycling and Reuse Grant Fund is to provide funding for projects that:
  - Increase the reuse and recycling of beverage containers in the state; and
  - Reduce the volume of litter from beverage containers in the state.
2. The following entities are eligible for a grant under the Beverage Container Recycling and Reuse Grant Fund:
  1. A nonprofit organization that qualifies for tax exemption under 26 U.S.C. § 501(c)(3) of the Federal Internal Revenue Code;
  2. A school or an institution of higher education;
  3. A county or municipal organization;
  4. A for-profit entity; and
  5. A public-private partnership.
3. Pursuant to section 10 of this Act, the Department shall establish regulations concerning:
  1. The application process for an entity to apply for a grant;
  2. The criteria for evaluating and awarding grants;
  3. Reporting and evaluation requirements for a grant awarded under this section; and
  4. Any other requirements the Department determines are necessary for administering and implementing grants awarded under the Beverage Container Recycling and Reuse Grant Fund.
If in any month the authorized payments from the deposit transaction account by a deposit initiator exceed the funds that are or should be in the deposit transaction account, the state shall reimburse the deposit initiator the amount of excess funds remitted to the state, provided, however, that such reimbursements to a deposit initiator shall not exceed:
1. Amounts paid by the deposit initiator to the state pursuant to this section in the preceding 24 months; or
2. Amounts paid by the state to the deposit initiator pursuant to this section during the preceding 24 months.

Section 9: Elimination of Toxic Substances in Beverage Containers (Optional)

Include this section if you want to regulate the toxics used in manufacturing beverage containers.

A Bottle Bill can go a step further in protecting public health by regulating materials that should not appear in our beverage containers. The language in this optional section would prohibit producers and distributors from selling beverage containers that contain certain toxic chemicals. And it would empower your state environmental agency to designate further toxic chemicals that it decides have the potential to cause harm.

Sample Language for Your Bill

Copy and paste the following into SECTION 9 of the bill template.

Copy and Paste

Beginning four years after the effective date of this Act, no distributor may sell, offer for sale, or distribute into the state any beverage container containing the following toxic substances;
1. Ortho-phthalates;
2. Bisphenols;
3. Per- and polyfluoroalkyl substances (PFAS);
4. Lead and lead compounds;
5. Hexavalent chromium and compounds;
6. Cadmium and cadmium compounds;
7. Mercury and mercury compounds;
8. Benzophenone and its derivatives;
9. Halogenated flame retardants;
10. Perchlorate;
11. Formaldehyde;
12. Toluene;
13. Antimony and compounds; and
14. UV 328 (2-(2H-benzotriazol-2-yl)-4,6-di-tert-pentylphenol).
Beginning seven years after the effective date of this act, and every three years thereafter, the Department shall designate at least ten additional toxic substances or families of toxic substances that may no longer be used in beverage containers sold, offered for sale, or distributed in the state based on:
1. The potential to cause adverse public health impacts to consumers;
2. Impact on the ability to safely and effectively recycle, reuse, or refill beverage containers; or
3. Potential to bioaccumulate in the environment.
If the Department determines there are not ten toxic substances or families of toxic substances that should be added to the list, it shall public a detained statement of its finding and conclusions supporting such a determination.
Any distributor that violates this section shall be subject to a fine for each violation not to exceed fifty thousand dollars per violation. For the purposes of this section, each product line that contains a toxic substance or material as prohibited by this subsection that is sold, offered for sale, or distributed to consumers, via retail commerce, in the state, including through an internet transaction violation shall be considered a violation.

Section 10: Rulemaking

As you may have noticed, the model language we’ve included in this toolkit frequently refers to “rules established by the Department.” Modern Bottle Bills, and most environmental programs for that matter, depend on state environmental agencies to create rules and regulations that help the agencies administer these complex systems. Leaving certain details of the program to agency rulemaking – including licensing for redemption centers, data reporting procedures, and processes for determining compliance with performance standards – also provides flexibility to individual states. There is value in letting state environmental agencies, who are uniquely situated to understand the needs of their states, figure out how to make all the elements work together. This section requires your state environmental agency with creating the rules that will help your Bottle Bill perform at its best. The public has an opportunity to engage and provide feedback in the rulemaking process.

Sample Language for Your Bill

Copy and paste the following into SECTION 10 of the bill template.

Copy and Paste

The Department shall administer the provisions of this act and may promulgate rules as necessary to implement, administer and enforce this Act. All rules developed under this Act shall be promulgated no later than one year after the effective date of this Act.
The Department shall solicit input from the public of any draft rules to implement this Section, solicit public comment on draft rules for a period of at least 90 days, and hold a public hearing on the draft rules.
The rules promulgated by the Department pursuant to this section must include:
1. A method for calculating the redemption rate for beverage containers;
2. A method for calculating the recycling rate for beverage containers;
3. A method for calculating the amount of reusable beverage containers sold or refilled;
4. A process for collecting all necessary information to ensure distributor and dealer compliance with the requirements of this Act;
5. A method for determining compliance with the performance standards pursuant to the requirements of section 6 of this Act;
6. A method for establishing convenience standards for the concentration, coverage, and availability of redemption options across the state pursuant to section 6 of this Act;
7. A method for determining compliance with the toxic substance reduction requirements of section 9 of this Act;
8. A process for compiling a list of all the points of redemption both at the state and county level;
9. A process for determining the number of cycles for a reusable beverage container;
10. A process for licensing redemption centers;
11. A process for determining whether information is proprietary information and therefore must be handled as confidential information;
12. A process for soliciting, reviewing, and awarding grants pursuant to the requirements of section 8 of this Act;
13. A process for submitting for review, approving, and monitoring account-based bulk processing programs that ensures that the program will accurately refund deposits and maintain and report data from each transaction and identifies the information that must be submitted to the Department for approval of the program; and
14. Any other rules necessary to accomplish the requirements of this Act.

Seciton 11: Enforcement

The requirements and standards in your Beverage Container Recycling and Reuse Law don’t amount to much if your state cannot enforce them. The language we’ve drafted for this section allows your state to do just that. The language we’ve drafted for this section allows your state to enforce this law by charging a fine and possibly filing a lawsuit for violations. What’s more, it also allows state residents to step in and enforce the law if needed.

Sample Language for Your Bill

Copy and paste the following into SECTION 11 of the bill template.

Copy and Paste

Any person, distributor, dealer, or Producer Responsibility Organization who violates the requirements of this Act shall be subject to a fine for each violation and for each day the violation occurs in the amount of not more than $10,000.
The Department may bring a civil action to enjoin the sale, distribution, or importation into the United States of a beverage sold in a beverage container in violation of this Act.
Any resident of the state may bring an action in court against any person, distributor, dealer, Producer Responsibility Organization, or the Department to enforce this subtitle, by which they may recoup damages, attorney’s fees and other costs associated with bringing the suit, and civil penalties that the distributor is required to pay as fines.

You’ve drafted your Beverage Container Recycling and Reuse legislation, but now what? The next step is to find a legislative champion to sponsor your bill and formally introduce it in your state legislature. This should be a legislator who is passionate about the goal you’re trying to achieve and is committed to advocating for the bill.

Understanding and navigating the legislative process can be challenging. Don’t worry, Just Zero is here to help! Although every state’s legislative process is unique, they tend to follow a similar structure.

Next Steps

Legislative Toolkits

Ready to draft your next Zero Waste bill? Check out our other model legislative toolkits that address other areas of the waste crisis.

Toolkits

Register now for Just Zero'sWaste-Free Future Summit

The Issue

The Solution

SHARE THE TOOLKIT

NEED HELP WITH YOUR BILL?

JOIN THE MOVEMENT

1) Download Our Bill Template

2) Explore Policy Decisions

3) Make Policy Decisions

Terms Defined

Beverage Container Recycling and Reuse Law

Before You Begin

Bill Outline

Section 1: Definitions

Broad Definition with Limited Exceptions

Copy and Paste

List Specific Beverage Types

Copy and Paste

Copy and Paste

Copy and Paste

Copy and Paste

Section 2: Deposit Value

An Automatic Deposit Increase Tied to Redemption Targets

Copy and Paste

Empower Your State Environmental Agency to Increase Deposits

Copy and Paste

10-Cent Deposit with No Increases

Copy and Paste

Section 3: Handling Fee

Empower Your State Environmental Agency to Set and Adjust the Handling Fee

Copy and Paste

Set a Static Handling Fee

Copy and Paste

Section 4: Producer Responsibility Organization

Optional Limited Producer Responsibility Organization

Copy and Paste

Full Producer Responsibility Organization with State Oversight and Adequate Transparency

Copy and Paste

Section 5: Acceptance of Beverage Containers

Universal Return to Retail with Limited Size-Based Exemptions

Copy and Paste

Convenience Zone Exemptions for Certain Retailers

Copy and Paste

Retailer Exemptions Based on Available Redemption Locations

Copy and Paste

Section 6: Performance Standards

Copy and Paste

Section 7: Registration, Reporting, and Labeling

Registration, Reporting, and Labelling Without a Full Producer Responsibility Organization.

Copy and Paste

Registration, Reporting, and Labeling with a Full Producer Responsibility Organization

Copy and Paste

Section 8: Management of Deposits

Managing Deposits Without a Full Producer Responsibility Organization

Copy and Paste

Managing Deposits with a Full Producer Responsibility Organization

Copy and Paste

Section 9: Elimination of Toxic Substances in Beverage Containers (Optional)

Copy and Paste

Section 10: Rulemaking

Copy and Paste

Seciton 11: Enforcement

Copy and Paste

Legislative Toolkits

Start typing and press enter to search

Register now for Just Zero's
Waste-Free Future Summit