1. Container Recycling Institute c 2003 1 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

2. Container Recycling Institute c 2003 2 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. 2003. 12% 24%

3. Container Recycling Institute c 2003 3 Two Crucial RPET Supply Issues  Supply from current collection infrastructures is stagnant  More and more volume going to Asian markets

4. Container Recycling Institute c 2003 4 Mm lbs Source: “2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council. 2003. PET Bottle Growth Strong…. PET Bottle Recycling Stagnant 1992-2002

5. Container Recycling Institute c 2003 5 Exported RPET Sales Growing Source: “2002 Report on Post Consumer PET Container Recycling Activity.” NAPCOR. 2002. Mm lbs

6. Container Recycling Institute c 2003 6 Domestic RPET End Use Changing Source: “1999 and 2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council. 2000 and 2003.

7. Container Recycling Institute c 2003 7 1. Voluntary mechanisms insufficient 2. Stakeholder initiatives have failed 3. Deposits have proven record of success

8. Container Recycling Institute c 2003 8 Voluntary Systems Inadequate Percent Source: BioCycle, American Plastics Council, Aluminum Association, US Chamber of Commerce

9. Container Recycling Institute c 2003 9 Stakeholder initiatives have failed to create new supply  APR Supply Committee  NAPCOR Initiatives  BEAR Multi-Stakeholder Project  APC Initiatives  NSDA Efforts

10. Container Recycling Institute c 2003 10 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. 2003. Recycling Rates: PET Soda and Custom PET

11. Container Recycling Institute c 2003 11 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.

12. Container Recycling Institute c 2003 12 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.

13. Container Recycling Institute c 2003 13 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

14. Container Recycling Institute c 2003 14 The perception is that...  bottle bills are BAD for business  allocation of costs are unfair Why aren’t there more deposit laws?

15. Container Recycling Institute c 2003 15 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) 38.219149%1.25 10 Deposit States (29% of US Population) 40.049051%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.

16. Container Recycling Institute c 2003 16 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

17. Container Recycling Institute c 2003 17 What have you got to lose by supporting deposit systems? What have you got to lose if you don’t support deposit systems?

18. Container Recycling Institute c 2003 18 “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

19. Container Recycling Institute c 2003 19 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. 2004.

20. Container Recycling Institute c 2003 20 Potential Supply of RPET Source: Container Recycling Institute estimates based on data from Beverage Marketing Corporation and Beverage World magazine. Mm lbs

21. Container Recycling Institute c 2003 21 New demand for RPET can only develop from new supply.

22. Container Recycling Institute c 2003 22 Waste News November 24, 2003 Financial Incentives Boost Recycling

23. Container Recycling Institute c 2003 23 1. 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

24. Container Recycling Institute c 2003 24 Can the Downward Trend of PET Recycling be Reversed?

25. Container Recycling Institute 1911 Ft. Myer Drive, Suite 900 Arlington, Virginia 22209 703.276.9800 email: CRI@Container-Recycling.org Visit us on the web at: www.container-recycling.org www.bottlebill.org