Container Recycling Institute c 2003 1

APR Meeting - February 18, 2002Albuquerque, NM

Can the Downward Trend ofPET Recycling be Reversed?

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Pat Franklin, Executive Director Container Recycling Institute

Container Recycling Institute c 2003 2

Recycling Rates: PET and HDPE

0

5

10

15

20

25

30

35

40

1992 1994 1996 1998 2000 2002

PETHDPE

38%

20%

Percent

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Source: “2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council. 2003.

12%

24%

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

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Container Recycling Institute c 2003 4

1388 1713 21692906

3445 4017

986 10711538 2196 2687 3220

402 642 631 710 758 7970

10002000300040005000

1992 1994 1996 1998 2000 2002Recycled

LandfilledSold

Mm lbs

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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

Container Recycling Institute c 2003 5

Exported RPET Sales Growing

656 89

588 183

599 170

600 234

522 275

0 300 600 900

1998

1999

2000

2001

2002

DomesticExported

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Source: “2002 Report on Post Consumer PET Container Recycling Activity.” NAPCOR. 2002.

Mm lbs

Container Recycling Institute c 2003 6

Domestic RPET End Use Changing

1999

Other16%

Fiber51%

Strapping12%

Containers13%

Film/Sheet8%

2002

Strapping16%

Fiber54%

Film/Sheet2%

Containers23%

Other5%

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Source: “1999 and 2002 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council. 2000 and 2003.

Container Recycling Institute c 2003 7

1. Voluntary mechanisms insufficient

2. Stakeholder initiatives have failed3. Deposits have proven record of

success

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Container Recycling Institute c 2003 8

Voluntary Systems Inadequate

0

10

20

30

40

50

60

70

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

% of Population Served by CurbsidePET Bottle Recycling RateAluminum Can Recycling Rate

Percent

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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

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Container Recycling Institute c 2003 10

Deposits Have Record of Success

0

10

20

30

40

50

60

1992 1994 1996 1998 2000 2002

PET Soda

Custom PET53%

10%

31%

11%

Percent

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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

Container Recycling Institute c 2003 11

PET Soda Bottle Recycling Rates

31%

70%

10% 11%

0200400600800

10001200140016001800

All CollectionSystems

"Deposits" in 10Deposit States

"Curbside" in 10Deposit States

"Curbside" in 40Non-Deposit States

SoldRecycled

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.

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Container Recycling Institute c 2003 12

Bottle Bills Supply Lion’s Share of CSD RPET

Curbside10 B B States

29% of US Pop50 m m lbs

D eposit System10 BB States

29% of US Pop351 m m lbs

Curbside40 N on-BB States

71% of US Pop137 m m lbs

Supply of CSD R PETin 2002

537 m m lbs

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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 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

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Container Recycling Institute c 2003 14

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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 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)

38.2 191 49% 1.25

 

10 Deposit States(29% of US Population)

40.0 490 51% 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.

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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

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Container Recycling Institute c 2003 17

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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 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 Association1980

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Container Recycling Institute c 2003 19

New Yorkers Like Their Bottle Bill

Strongly opposed

8%

Don't know/refuse

2%Somewhat opposed

6%

Somewhat support

34%

Strongly support

50%

84% support it; only 14% are opposed

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Source: “Survey of New York Registered Voters: Attitudes Toward New York’s Bottle Bill and Proposed Reforms”, Public Policy Associates, Inc, Feb. 2004.

Container Recycling Institute c 2003 20

Potential Supply of RPET

200

160

250

0100200300400500600700

PA, FL (No Proposal atthis time)WV, TN, UT, AR, NH,MS, CO (New BB's)CT, NY, MI, MA, OR, IA(Expanded BB's)

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Source: Container Recycling Institute estimates based on data from Beverage Marketing Corporation and Beverage World magazine.

Mm lbs

Container Recycling Institute c 2003 21

New demand for RPET can only develop from new supply.

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Container Recycling Institute c 2003 22

Was

te N

ews

N

ovem

ber 2

4, 2

003

Financial Incentives Boost Recycling

Container Recycling Institute c 2003 23

1. Voluntary mechanisms insufficient

2. Stakeholder initiatives have failed3. Deposits have proven record of

success

CONTAINER RECYCLING INSTITUTE

CRI The PET Supply Crisis: A Problem in Need of a Solution

Container Recycling Institute c 2003 24

Can the Downward Trend ofPET Recycling be Reversed?

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Container Recycling Institute1911 Ft. Myer Drive, Suite 900

Arlington, Virginia 22209703.276.9800

email: CRI@Container-Recycling.org

Visit us on the web at:www.container-recycling.org

www.bottlebill.org

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