Senator McCann is calling for an extension of the bottle deposit law, while environmentalists are offering alternatives

A plastic bottle thrown onto a Lansing sidewalk. | Susan J. Demas

In an effort to modernize Michigan’s bottle deposit law, Sen. Sean McCann (D-Kalamazoo) last week proposed putting an expanded version of the so-called “bottle law” before Michigan voters in 2026.

The bottle law was put forward as a ballot initiative and approved by Michigan voters in 1976. In its effort to reduce litter, the law places a 10-cent deposit on containers for soft drinks, soda water, carbonated natural or mineral water or other unpurified water. -alcoholic carbonated drinks; beer, beer or other malt drinks, as well as mixed wines and mixed drinks. When returning the container to a retailer, the deposit is returned to the consumer.

“Michigan’s ‘Bottle Bill’ is one of the most successful public policy proposals ever passed in our state and is our most widely used and accepted conservation program,” McCann said in a statement.

“This unique proposal takes the most popular ideas to modernize our deposit law and puts the question before voters. Our current law was initiated by the voters, and it feels appropriate to give them the opportunity to once again transform recycling in Michigan,” he said.

McCann’s proposal would put a number of proposed updates to the bottle law before Michigan voters, including:

• Universal redemption, which allows beverage containers to be returned anywhere and requires any dealer who sells a container that requires a 10-cent deposit to accept the container, regardless of whether or not they sell that specific product.

• Expansion of the deposit to all beverage containers of 1 gallon or less, such as water bottles. It would also provide exemptions for milk, infant formula and fruit and vegetable juices in half-gallon or larger containers and freezable containers.

• Enforcing the 10-cent deposit on all containers covered by the expanded law.

• Make public data on the performance of the program, including returns, the types of containers on which deposits have been placed by province, the types of containers for which the deposit has been redeemed by province; and the value, contributions, and expenditures of the funds this bill would support. Currently, the state provides data on the total number of deposits collected, the total amount refunded, and the percentage of deposits refunded.

The Bottle Deposit Fund, which consists of the unclaimed bottle account deposits, would also be restructured to include compliance fees for the state’s manufacturers, distributors and dealer partners. The unclaimed deposits would also continue to fund environmental cleanups and redevelopment in the state.

Under current law, the first $1 million in unclaimed deposits collected each year goes to the Michigan State Police to ensure the bottle bill is maintained until that fund reaches a maximum of $3 million. Then, 75% of subsequent collections will go toward environmental cleanup, redevelopment, and pollution prevention education. The last 25% goes back to retailers.

Under McCann’s proposal, 50% of these unredeemed deposits would be spent on environmental cleanup and redevelopment, while 5% would go to manufacturers, 20% to distributors and 25% to dealers and redemption centers.

In addition to the proposal Senate Bill 1112he introduced a different policy, Senate Bill 1113that would allocate $60 million in corporate tax revenues to fund the implementation and operation of the updated Bottle Bill, should voters approve the measure in 2026.

The effort also received support from the Michigan Beer & Wine Wholesalers Association.

“Michigan’s Bottle Bill has helped protect our environment for decades, thanks in large part to distributors who invest $60 million each year to recycle nearly two billion containers,” Spencer Nevins, president of the Michigan Beer & Wine Wholesalers Association, said in a statement.

“Sen. McCann’s legislation is a critical step in ensuring the program remains sustainable by providing the necessary investments in the Bottle Bill. We are proud to support this effort to build a stronger, more efficient and consumer-friendly Bottle Bill system, cementing Michigan’s status as a leader in environmental stewardship,” said Nevins.

However, the Michigan Environmental Council (MEC), a collective of 100 environmental organizations from across the state, says there is a better way forward. The council claims McCann’s plan would divert an expected $75 million a year in environmental programs from companies that already benefit from the beverage industry.

“These are the people’s dollars, not industry profits,” Conan Smith, president and CEO of the Michigan Environmental Council, said in a statement. “Those lost funds will not improve our bottle bill. Recycling isn’t getting any easier. Environmental cleanup will become more difficult.”

Featuring GOP former Governor John Engler abolished Michigan’s polluter pay program in 1995the cost of environmental clean-up work in the state has largely fallen on taxpayers. Although Michigan’s bottle bill is the primary source of funding for cleanup and remediation of contaminated sites, advocates have repeatedly called for additional funding to address the approximately 26,000 contaminated sites identified by the Department of Environment, Great Lakes and Energy (EGLE) .

In an email to the Advance, Beau Brockett, the council’s communications manager, noted that there are no requirements for industry stakeholders to use their share of unredeemed deposits for infrastructure upgrades.

In turn, the municipality has submitted its own proposal for a new bottle law.

Under this proposal, the state would create a stakeholder council charged with overseeing the bottle return system, in addition to expanding oversight of the program to the Michigan Department of Attorney General, with $3 million in additional funding would be provided to the Michigan State Police and the Office of Attorney General. for anti-fraud and enforcement efforts.

The Council’s proposal also would require EGLE to make public data on the program’s performance and would subject all data and documents related to the bottle bill to the Freedom of Information Act (FOIA).

Although retailers are currently the only stakeholder benefiting from the unclaimed bottle deposit, the council proposes to either impose a 1-cent administration fee on deposited containers, or to collect a portion of the state’s corporate tax revenue to ensure that all stakeholders are compensated for their role in the process. managing the returns system.

“It would look like $18 [million] for distributors, $24 [million] to retailers, and $3 [million] to manufacturers to reimburse them for their operational costs,” said Brockett.

While this proposal would remove enforcement funding and retailer refunds from unclaimed deposit credits, the council says these should be replaced with a separate funding mechanism.

It would also allocate the first $55 million or 27.5% of these unredeemed dimes, whichever is greater, to maintain support for continued environmental cleanup and redevelopment through the Cleanup and Redevelopment Fund until The state’s Cleanup and Redevelopment Trust Fund reaches a balance of $1 billion. . The next $75 million or 37.5%, whichever is greater, will also go to the Cleanup and Redevelopment Trust Fund until it reaches a balance of $1 billion.

Once that $1 billion threshold is reached, interest and income from the trust fund will be used to fund the Cleanup and Redevelopment Fund and any income from unclaimed deposits will be transferred to the resource recovery fund.

The council’s proposal would also allocate the next $25 million, or 12.5% ​​of unclaimed deposits, to the state’s Water Security Fund, which supports water affordability programs and is available to community suppliers to reduce water insecurity. Then, $3 million or 1.5% would be used to fund reimbursements for nonprofits that purchase bulk bottled water for distribution to Michigan residents facing water access challenges.

According to Brockett, the final 21% of unclaimed deposits would go to the program’s Resource Recovery Fund to build out new infrastructure and technology and upgrade systems.

“We can get a better Bottle Bill,” Smith said. “We can collect more containers and offer more convenience with less litter and less hassle. We can give the people what they want, and we can do it all without a corporate giveaway.”

Speaking to the Advance on Friday, McCann said he is proud to have worked with the Michigan Environmental Council in the past, alongside its members and other environmental organizations.

“I think we’re all going in the same direction,” McCann said.

Although lawmakers have explored a number of variations of a financing structure for the bottle bill, it’s difficult to find a perfect way to revamp that system, he said.

“We’re still working on it, and I’m still open to ways to improve it.… I thought it was really important to start the conversation with the introduction of the bill,” McCann said.

“Maybe we have room to change and incorporate some things. For example, I know that they feel that this water security fund is very important to them, and that is fine. We’re trying to see if we can make room for that,” McCann said, before noting the importance of getting buy-in from wholesalers and retailers as well.

While there is little time to pass the bills and put the proposal before voters, there is still plenty of time to amend the bill as it moves through committee and both houses of the Legislature.

“There is still a long way to go here, which will be covered in a short time. And so, you know, I listen to it [stakeholders]we are talking. And I think I’m cautiously optimistic that we can work out these last few details,” McCann said.

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