BILL NUMBER: S5684
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the environmental conservation law, in relation to
returnable bottles; to direct the multi-agency bottle bill fraud inves-
tigation team to submit a report on findings of pervasive bottle redemp-
tion fraud in New York state; and to repeal section 27-1018 of such law
relating to the beverage container assistance program
 
PURPOSE:
The purpose of this bill is to incentivize more recycling of beverage
containers, and thereby reduce solid waste, through expansion of
containers eligible for a deposit and redemption under the current
Returnable Container Act (Bottle Bill). The bill would raise the deposit
refund value to ten cents, raise the handling fee incrementally, and
implement a grant program to assist redemption centers.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill would amend § 27-1003(1) of the Environmental
Conservation Law (ECL) to include noncarbonated soft drinks, noncarbo-
nated fruit and vegetable juices containing less than 100% fruit or
vegetable juice, coffee and tea beverages, carbonated fruit beverages,
and cider under definition of beverage and remove the prohibition on the
redemption of water beverages with added sugar.
Section 2 of the bill would amend § 27-1003(1) of the ECL to include all
beverage containers which contain liquids for oral consumption within
the definition of "beverage" starting April 1, 2029. The following would
excluded from the definition of beverage: a drug regulated under the
Federal Food, Drug, and Cosmetic Act, 21 U.S.C. 301 et seq.; infant
formula; a meal replacement liquid; dairy products derived from animal
milk; plant-based dairy alternatives; and noncarbonated fruit or vegeta-
ble juices containing one hundred percent fruit or vegetable juice.
Section 3 of the bill would amend § 27-1003(12) of the ECL to expand the
definition of "reverse vending machine"(RVM) to include alternative
technology approved by the Commissioner of the Department of Environ-
mental Conservation (DEC) under a local solid waste management plan and
adds definitions of refillable beverage containers, return and reusable
systems, redemption rate, and recycling.
Section 4 of the bill would amend § 27-1007 of the ECL to increase
consumer protections including, for example protections for expiring
returned container scrip and receipts. This section would also modify
the container take-back requirements for small retail businesses of
40,000 square feet or less that primarily sell food or beverages for
consumption off premises, to provide greater flexibility. Additionally,
this section would increase the handling fee to five cents immediately,
six cents beginning April 1, 2027 and six and one half cent beginning
April 1, 2032. Finally, it would add provisions relating to recounts,
the loading and unloading of containers, and grant audit powers over
RVMs.
Section 4 of the bill gives relief of mandatory acceptance of empty
beverage containers at farmers markets.
Section 5 of the bill would amend § 27-1011 of the ECL to require the
use of Universal Parcel Codes.
*Section 6 of the bill would amend § 27-1011 of the ECL to establish
goals for distributors relating to percentage of beverage containers
that would be refillable, as part of a return and reuse system. This
section establishes reporting rules for distributors on recycling rates,
by material type and establishes required phased-in recycled content
percentages for containers, caps, and lids.
Section 7 of the bill would amend § 27-1012 of the ECL to have the Comp-
troller transfer 5% of unclaimed deposit funds to the beverage container
assistance fund.
Section 8 of the bill would amend § 27-1012(3) of the ECL to include new
information required on quarterly reports filed by deposit initiators to
provide that service charges do not exceed the maximum amount authorized
by the DEC Commissioner. This section also establishes a publicly view-
able Bottle Bill annual report detailing information and analysis
related to redemption rates, container material types, fraud and
enforcement actions, handling fee and consumer price index, and analysis
of how the Returnable Container Act helps to achieve the Climate Law
targets.
Section 9 of the bill would amend § 27-1012(4) of the ECL to create a
refillable bonus for deposit initiators which use refillable systems.
Section 10 of the bill would amend § 27-1012(7) of the ECL to require
DEC to publish a list of registered deposit initiators, covered
products, and registered redemption centers.
Section 11 of the bill would amend § 27-1014 of the ECL to authorize DEC
to promulgate regulations to implement the new provisions of this act.
Section 12 of the bill would amend § 27-1018 of the ECL to expand the
use of the beverage container assistance fund and sunset the fund in 15
years. Preference for state assistance payments under this program would
be given to: registered redemption centers that do not already use
reverse vending machines, not-for-profit organizations, municipalities,
and qualified small businesses that do not have a reverse vending
machine within one mile.
Section 13 of the bill would amend § 27-1013 of the ECL to allow DEC to
regulate for safe pick up and drop off and establishes a registration
fee for redemption centers of $150 dollars. Such registration would be
eligible for renewal every 10 years.
Section 14 of the bill would amend § 27-1005 of the ECL to raise the
deposit refund value to ten cents beginning April 1, 2027.
Section 15 of the bill would repeal § 27-1018 , the Beverage Container
Assistance Grant Program, on January 1, 2038.
*Section 16 of the bill seeks to address fraud in the Deposit Return
System by requiring the multi-agency bottle bill fraud investigation
team led by the department of environmental conservation to submit a
report with findings and legislative recommendations for legislative
action in response to pervasive beverage container redemption fraud in
the state within one year of the effective date.
Section 17 provides for the effective date.
 
JUSTIFICATION:
New York's Returnable Container Act ("The Bottle Bill"), first enacted
in 1982, has been the State's most successful recycling program.
According to the DEC, the Bottle Bill reduced curbside container litter
by 70 percent and has encouraged the recycling of billions of plastic,
glass, and aluminum containers. The Container Recycling Institute (CRI)
states that the over 11 million tons of containers recycled in New York
since the implementation of the Bottle Bill has reduced greenhouse gas
emissions equivalent to taking about 3 million cars off the road for a
year. CRI also makes the important point that the processing and sale of
recycled containers benefits New York's economy and secures jobs in the
recycling industry.
By expanding the Bottle Bill to include a much more inclusive list of
beverages, we can expect an even greater number of containers to be
recycled and an even greater reduction of container litter in our
streets. Additionally, in the face of a growing recycling crisis, an
expansion of the Bottle Bill would help ease the burden that municipal
recycling facilities are currently facing by keeping these materials out
of the traditional waste stream. The expansion would be phased in,
beginning primarily with the harder-to-manage glass and aluminum
containers and subsequently to PET and other plastics. This approach,
coupled with the post-consumer content requirements for beverage
containers will help ensure a continued market for beverage container
materials and provide an important step in decreasing reliance on
single-use plastic.
Raising the deposit to 10 cents will incentivize the public to return
empty beverage containers, reduce liter, and provide additional income
to individuals who collect and redeem such containers. Additionally,
the delayed phase in will allow time for the bottle return industry to
prepare.
 
LEGISLATIVE HISTORY:
2024: S237C (MAY) REF TO ENCON/A6353A (Glick) ref to rules
2023: S2378 (MAY) REF TO FINANCE/A6353 (Glick) ref to encon
2022: S9164 (MAY) REF TO ENCON/A.10184 (Englebright) Ref to Encon
 
FISCAL IMPLICATIONS:
Positive for the state. A recent fiscal analysis by NYPIRG projects an
annual revenue of approximately $100 million to the state after the
first year of implementation of the increase in deposit to a dime.
 
EFFECTIVE DATE:
This act shall take effect April 1, 2026; provided, however, that
section one of this act shall take effect April 1, 2027; provided
further that section two of this act shall take effect April 1, 2030;
provided, further, that the amendments to subdivision 6 of section
27-1007 of the environmental conservation law made by section four of
this act shall take effect immediately; provided further that section
fifteen of this act shall take effect January 1, 2039, with any proceeds
transferred to the environmental protection fund established pursuant to
section 92-s of the state finance law. Effective immediately, the addi-
tion, amendment and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized to
be made and completed on or before such effective date.

Statutes affected:
S5684: 27-1003 environmental conservation law, 27-1003(1) environmental conservation law, 27-1012 environmental conservation law, 27-1012(5) environmental conservation law, 27-1014 environmental conservation law, 27-1018 environmental conservation law, 27-1005 environmental conservation law