Commentary: Recycling handling fee needs a change

Aug 22, 2023

Recyclers struggle to meet need due to a handling fee that hasn't changed since 2009.

New York is once again considering expanding the state's Bottle Bill to include more categories of bottles and a higher deposit. Before this can occur, however, the state must address the dire financial situation redemption centers find themselves in.

From Long Island to Buffalo, New York's redemption centers play a vital role in ensuring the Bottle Bill works properly. But many of us have closed. Those of us that remain are on the verge of closing due to the high cost of doing business and the low handling fee associated with bottle returns. Most centers are not in a position to redeem liquor and wine bottles and pay a higher deposit return.

The handling fee is the sole source of revenue for the state's small-business redemption centers. The current handling fee of 3.5 cents has not been raised since 2009. In the 14 years since, we have seen significantly increased costs of business due to higher insurance, wages and property costs.

This is not a problem that is unique to New York. In Maine, 50 redemption centers have closed since 2020. To stop the exodus and the major threat that their loss poses to the stability and success of Maine's entire beverage container redemption program, the state passed emergency legislation earlier this month to raise the handling fee to 5.5 cents for containers picked up between May 1 and Sept. 1, and to 6 cents for containers picked up on or after Sept. 1, 2023. We cannot continue operations without a similar, immediate raise in the handling fee here in New York.

The state's small-business redemption centers handle millions of bottles annually, and their convenience and efficiency have helped New York's Bottle Bill become successful. We pay taxes to and hire employees from the towns we operate in. Additionally, redemption centers support our communities through fundraising activities and bottle drives conducted by PTAs, Boy and Girl Scout troops, sports teams and others. If we close, our communities lose that fundraising lifeline.

New York's redemption centers support a broader expansion of the bottle bill. However, before an official expansion, the state must provide an increased handling fee to enable us to maintain our businesses and continue to provide the essential service we offer New Yorkers. It is vital they adjust our handling fee immediately and allow us time to financially prepare for what will follow with more expenses that come with an expanded bill.

Jade Eddy is the owner of MT Returnables of Corinth.