Passage of Iowa container law changes could hit aluminum can returns: Aluminum Association | S&P Global Commodity Insights

2022-09-10 11:15:05 By : Ms. Tina Wong

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Passage of Iowa container law changes could hit aluminum can returns: Aluminum Association

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Legislation allows retailers to opt out of container redemption

Iowa is one of 10 US states with deposit laws, system

The Iowa state legislature's recent passage of a bill modifying its container deposit laws could discourage consumers in the state from returning their aluminum cans and other beverage packaging for recycling, the Aluminum Association said May 27.

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"The legislation included provisions for retailers to opt-out of redeeming containers if certain alternate redemption center proximity provisions are met," the association said in a newsletter. "This move is expected to significantly decrease consumer convenience in container return options and result in lower overall redemption rates."

The Aluminum Association said it has joined the Can Manufacturers Institute, the Glass Packaging Institute and the National Association of PET Container Resources to advocate against the legislation's "consumer convenience restrictions" and to push for stronger beverage container deposit programs at both the state and federal levels.

The legislature's bill attempts to divert the return of beverage containers away from retailers and towards redemption centers, as retailers in the state have pushed back on being responsible for the logistics involved in container collection.

According to the bill, a retailer may refuse to accept and to pay the refund value of any empty beverage container if it "holds a food establishment license to prepare or serve food, has a certified food protection manager as required by the 2017 United States food and drug administration food code and supplement, and sells time/temperature control for safety food" or "has entered an agreement with an approved redemption center for the operation of a mobile redemption system," as well as other possible parameters.

The Aluminum Association said the bill, which is expected to be signed by Governor Kim Reynolds, does include some benefits.

"The changes include an increased handling fee for redemption centers, improved deposit labeling flexibility and an expansion of deposit-eligible beverages to include higher alcohol beers and canned spirits – certainly a positive development for improving can recycling rates in Iowa," the association said.

Iowa is one of the 10 states in the US that have container deposit laws.

In an April newsletter, the Aluminum Association said the domestic aluminum industry "relies disproportionately on recycled material from 10 deposit system states in the US to make new products out of old material."

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