Container-deposit legislation
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Container-deposit legislation (also known as a deposit-refund system, bottle bill, or deposit-return system) is any law that requires the collection of a monetary deposit on beverage containers (refillable or non-refillable) at the point of sale. When the container is returned to an authorized redemption center, or retailer in some jurisdictions, the deposit is partly or fully refunded to the redeemer (presumed to be the original purchaser). It is a deposit-refund system.
Governments may pass container deposit legislation for several reasons, including, for example:
- To encourage recycling and complement existing curbside recycling programs, to reduce energy and material usage for containers
- To specifically reduce beverage container litter along highways, in lakes and rivers, and on other public or private properties (where beverage container litter occurs, a nominal deposit provides an economic incentive to clean it up; this is a significant source of income to some poor individuals and non-profit civic organizations)
- To extend the usable lifetime of taxpayer-funded landfills
Deposits that are not redeemed are often kept by distributors or bottlers to cover the costs of the system (including handling fees paid to retailers or redemption enters to collect, sort, and handle the containers) or are escheated to the governmental entity involved to fund environmental programs.
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