You asked (1) when Connecticut last increased the bottle deposit fee, (2) if there has been recent legislation calling for a fee increase, and (3) if there have been studies that show a correlation between higher bottle deposit fees and a higher rate of bottle redemption (returns).

SUMMARY

The $ . 05 fee for certain beverage containers (beer and other malt beverages, soda water, and carbonated soft drinks) has been the same since the law (PA 78-16) was adopted and became effective, January 1, 1980.

Bills in 2001 (SB 882), 2003 (HB 6033), and 2006 (SB 192) proposed increasing the deposit fee from $ . 05 to $ . 10. None of these bills made it out of the Environment Committee. Concerning redemption fees, statistics compiled by the Container Recycling Institute (CRI) show that states with higher deposit fees have higher beverage container redemption rates.

CONNECTICUT'S $ . 05 FEE AND BOTTLE DEPOSIT SYSTEM

The law requires certain beverage containers sold or offered for sale in the state to have a refund value of at least $ . 05 and requires the amount to be uniform throughout the state's distribution process; beverage containers sold or offered for sale on interstate passenger carriers are exempt (CGS § 22a-244). The $ . 05 fee has never been increased.

Connecticut's deposit system works as follows:

1. retailers pay beverage container distributors $ . 05 for each beer or carbonated soft drink container that the distributors deliver;

2. the consumer pays the retailer $ . 05 for each beer or carbonated soft drink container that he purchases;

3. the retailer or redemption center pays the consumer $ . 05 for each container that he returns;

4. the distributor reimburses the retailer or redemption center $ . 05 for each beer and carbonated soft drink container, plus a handling fee of $ . 015 on each beer container and $ . 02 on each carbonated soft drink container returned; and

5. the distributor keeps the $ . 05 for each unclaimed deposit.

For more information, see the attached Department of Environmental Protection (DEP) summary or click here for DEP's Bottle Bill FAQ.

HIGHER DEPOSIT FEES AND BEVERAGE CONTAINER RETURN PERCENTAGES

CRI Finds Higher Deposit Fees Means Higher Container Return Percentage

Michigan and Vermont have higher deposit fees and return rates than states with lower fees (for states that keep statistics – 12 states including Connecticut have a beverage container law or “bottle bill”), according to CRI. Connecticut does not keep statistics, but CRI and DEP have completed estimates. (CRI is a nonprofit organization that studies and promotes policies and programs that increase recovery and recycling of beverage containers, according to its website. )

Michigan. Michigan has a $ . 10 deposit on non-refillable beer, soft drinks, wine coolers, canned cocktails, and carbonated and mineral water containers. It had a 97% return rate as of May 2005 and has maintained a higher rate over time, according to CRI's figures (see attached).

Vermont. Vermont charges $ . 15 for liquor containers and $ . 05 for all others (i. e. , beer, malt, soft drinks, mineral water, and mixed wine drinks). As of May 2005, its return rate was between 90% and 95%, according to CRI.

Connecticut. Connecticut law does not require the state to keep bottle bill recycling numbers. However, Massachusetts has a bottle deposit law and is required to keep statistics. For 2004, CRI estimated Connecticut's refundable bottle and can recycling rate around 68%, similar to that of Massachusetts, according to CRI's executive director, Pat Franklin. (DEP also assumes Connecticut's bottle redemption rate is similar to that of Massachusetts; see OLR Report 2005-R-0836 for more information – a copy is attached. )

Refundable bottle and can return rates have decreased in recent years, according to CRI's website. Both CRI and DEP attributed the decline to the drop in the value of a nickel (i. e. , a nickel in 1980 was more valuable than today).

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