Container Recycling Institute c APR Meeting - February 18, 2002 Albuquerque, NM Can the Downward Trend of PET Recycling be Reversed? CONTAINER RECYCLING INSTITUTE CRI Pat Franklin, Executive Director Container Recycling Institute

Container Recycling Institute c Recycling Rates: PET and HDPE 38% 20% Percent Source: “2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council % 24%

Container Recycling Institute c Two Crucial RPET Supply Issues  Supply from current collection infrastructures is stagnant  More and more volume going to Asian markets

Container Recycling Institute c Mm lbs Source: “2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council PET Bottle Growth Strong…. PET Bottle Recycling Stagnant

Container Recycling Institute c Exported RPET Sales Growing Source: “2002 Report on Post Consumer PET Container Recycling Activity.” NAPCOR Mm lbs

Container Recycling Institute c Domestic RPET End Use Changing Source: “1999 and 2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council and 2003.

Container Recycling Institute c Voluntary mechanisms insufficient 2. Stakeholder initiatives have failed 3. Deposits have proven record of success

Container Recycling Institute c Voluntary Systems Inadequate Percent Source: BioCycle, American Plastics Council, Aluminum Association, US Chamber of Commerce

Container Recycling Institute c Stakeholder initiatives have failed to create new supply  APR Supply Committee  NAPCOR Initiatives  BEAR Multi-Stakeholder Project  APC Initiatives  NSDA Efforts

Container Recycling Institute c Deposits Have Record of Success 53% 10% 31% 11% Percent Source: “2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council Recycling Rates: PET Soda and Custom PET

Container Recycling Institute c PET Soda Bottle Recycling Rates Source: CRI based on data from “2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council, 2003 and CRI assumptions.

Container Recycling Institute c Bottle Bills Supply Lion’s Share of CSD RPET Source: CRI estimates based on APC data for volume of CSD PET bottles sold and recycling rate in 2002 and assuming average redemption rate of 70% and 10% of CSD PET recycled through curbside programs in deposit states.

Container Recycling Institute c Why is the deposit system so successful?  Modeled after the beverage industry’s system for collecting refillable beer, soft drink and milk bottles  Refundable deposit provides financial incentive to return container for recycling

Container Recycling Institute c The perception is that...  bottle bills are BAD for business  allocation of costs are unfair Why aren’t there more deposit laws?

Container Recycling Institute c Beverage container recycling: Who Pays? At what cost? Total Annual Recovery (billions of units) Per Capita Recovery (units) % of Total US Annual Recovery Cents Per Unit 40 Non-deposit States (71% of US Population) % Deposit States (29% of US Population) %1.53 (a) Includes revenues from material sales; does not include the forfeited deposit value of unredeemed containers. Source: Table ES-1, “Understanding Beverage Container Recycling: A Value Chain Assessment Prepared for the Multi-Stakeholder Recovery Project,” Businesses and Environmentalists Allied for Recycling (BEAR), 2002.

Container Recycling Institute c What can we expect on legislative front in next few years? BOTTLE BILL SUPPORTERS  More new bottle bills introduced  More expansion proposals introduced BOTTLE BILL OPPONENTS  Millions of dollars spent to defeat new and expanded bottle bills  More repeal bills introduced

Container Recycling Institute c What have you got to lose by supporting deposit systems? What have you got to lose if you don’t support deposit systems?

Container Recycling Institute c “Society is telling us in unmistakable terms that we share equally with the public, the responsibility for package retrieval and disposal.... This industry has spent hundreds of millions of dollars. in the attempt to dispute, deflect, or evade that message.” Dwight Reed, President National Soft Drink Association 1980

Container Recycling Institute c New Yorkers Like Their Bottle Bill 84% support it; only 14% are opposed Source: “Survey of New York Registered Voters: Attitudes Toward New York’s Bottle Bill and Proposed Reforms”, Public Policy Associates, Inc, Feb

Container Recycling Institute c Potential Supply of RPET Source: Container Recycling Institute estimates based on data from Beverage Marketing Corporation and Beverage World magazine. Mm lbs

Container Recycling Institute c New demand for RPET can only develop from new supply.

Container Recycling Institute c Waste News November 24, 2003 Financial Incentives Boost Recycling

Container Recycling Institute c Voluntary mechanisms insufficient 2. Stakeholder initiatives have failed 3. Deposits have proven record of success The PET Supply Crisis: A Problem in Need of a Solution

Container Recycling Institute c Can the Downward Trend of PET Recycling be Reversed?

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