Dive Brief:

• A new study has estimated that a proposed 10 cent fee for beverage containers, including bottles and cans, would increase Minnesota's recycling volume by 1.9 billion containers.

• The projections also concluded that consumers or beverage companies would be hit with $29 million in new costs stemming from the pricing increase.

• Minnesota's recycling rate is at 45 percent, with officials looking to raise it to 80 percent.

Dive Insight:

Program Highlights: Consumers would be charged a ten cent deposit fee per container. A company would be hired by the state to oversee recycling and set up collection centers. Used containers would be exchanged for ten cents- the original amount the consumer paid as the deposit. 

The study was conducted through the Minnesota Pollution Control Agency (MPCA) through a request made by legislators. A hearing is scheduled for January 14, with public comments included in a report sent to the Legislature in February.

Supporters are touting the jobs that will be created by a program, the savings to municipalities, reduced energy consumption, not to mention the $469 million in deposit fees. As noted here, the bottle recycling rate in Michigan, which has a deposit fee for beverages, is 95%. That's among the highest in the country, indicating that Minnesota's rate would rise. However, Michigan is also struggling to increase its overall recycling volume, which is 14.5%.

Opponents, who include retailers, grocery stores and some recyclers, argue that consumers may be reluctant to purchase beverages if there were additional fees and maintain that waste management companies will lose revenue from the recyclable containers. Beverage companies have claimed that bottle deposit laws are costly for their business.