1. Team One Brett Baumgartner Lauren Butz Zack DeMar Katherine Hanson Phil Lewis Brian Luevano Penelope Scott Dan Sullivan 1

2. Problem The US consumes 1500 plastic water bottles every second The plastics used degrade very slowly Cause of the “Great Pacific Garbage Patch” Plastic can be remolded and formed into new bottles 2

3. Bottle Bill Background How It Works How It Started The consumer pays a deposit when purchasing the bottle and gets it back when they recycle it Empty bottles were littering the streets Failed attempt in Virginia First successful bill was passed in Oregon 3

4. Oregon: Bottle Bill Established in 1971 known as the “Bottle Bill” Created friction between large bottle producers Reduced production costs Competed with local bottlers 4

5. Oregon: Bottle Bill Benefits Costs Energy conservation A ton of plastic bottles saves approx. 3.8 barrels of oil Recycled materials uses 2/3 less energy than raw materials Reduction in costs In 1971 Marion County spent $20,000 on litter removal Estimated $100,000 Inflation 1971 5¢= 28¢ in 2001 18 pack=$5.04 rather than 90¢ Breakage and contamination “down cycling” 5

6. Oregon Improvements Needed: Lack of increases in redeemable deposits Deposits have not taken inflation into effect Decreasing incentive to return/recycle bottles Less willing for individuals to participate  possible decreases in the effects of the bill 6

7. Hawaii: Bottle Bill Solid Waste Management; Deposit Beverage Container Law (Act 176) Only state without curbside recycling Goal: Increase recycling and reduce littering Implemented on January, 1 st 2005 5 cents redeemable deposit Container fee is 1 cent per container Redemption rate exceeds 70% in a year the fee is raised.5 cents (1.5 cents per container) Consumer receives 3.5 to 4 cents for that container. 7

8. Hawaii: Costs and Benefits Costs Not efficient due to lack of oversight Potential Fraud due to over- reliance on self-reporting from distributors and redemption centers Benefits +4.7 billion beverage containers recycled Gives an incentive to recycle Reduces litter Hawaii reached a 79% recycling rate (2009) 8

9. Hawaii Improvements Needed Not enough state supervision Loss of money Operation issues Lack of awareness 9

10. Cost Benefit Analysis YearCost savings in nominal termsFuture cost savings in real dollarsPresent value 1$100,000$97,561$89,097 2$100,000$95,181$79,382 3$100,000$92,860$70,727 4$100,000$90,595$63,016 5$100,000$88,385$56,145 In 5 years, a total cost savings of $358,366.75 Inflation rate = 2.5% Discount rate = 9.5% 10

11. Cost-Benefit Analysis: AEM Model Overall environmental quality (benefit) defined: Reduction of litter caused by irresponsible bottle disposal Expressed on x-axis Scale of 1 to 10, 10 being highest environmental quality Cost to consumer Bottle Bill shifts marginal cost curve from MC to MC_New, effectively lowering the cost to consumer and raising environmental quality Example: Instead of bottle exchange, Hawaii decides to implement curb-side recycling because it’s cheaper and more efficient. Also, this would eliminate the problem of fraudulent reporting by businesses. 11

12. The Future of the Bottle Bill 11 current bottle bills Beverage production industry Retail industry Deposit law progress Arizona’s bottle bills Title: “beverage containers; recycling fund; redemption” 12

13. Conclusion Bottle Bills are great ways to reduce waste Proper incentives to increase recycling Vulnerable to market inefficiencies What can you do to encourage recycling laws and their efficacy? 13

14. Questions?? 14