As you are aware, the NYS Legislature and Governor Paterson made changes to the environmental conservation law as it relates to deposits on certain beverage containers.This legislation, known as the "bigger better bottle bill", expands the 5-cent deposit requirement for the first time since 1982.

MAJOR PROVISIONS OF NEW LAW

The new law makes a number of reforms to the current system, many of which go into effect almost immediately.The major highlights are the following:

EXPANSION TO WATER BOTTLES

The current Bottle Bill requires a minimum 5-cent refundable deposit on beer, soda, sparkling water and wine coolers sold in New York up to a gallon in size.On October 31, 2009, the deposit program was expanded to include water bottles under a gallon in size.Plain, flavored, and nutritionally-enhanced waters will be included, except  if they contain sugar .

Beverages that are covered:

• Carbonated Soft Drinks (including sparkling water, carbonated energy drinks, carbonated Juice (anything less than 100% juice, containing added sugar or water)
  
• Soda Water
  
• Beer and Other Malt Beverages
  
• Mineral Water - Both carbonated and non-carbonated mineral water
  
• Wine Products-such as wine coolers
  Beverages that are not covered:
  
  
• Milk Products
  
• Wine and Liquors
  
• Tea
  
• Sports Drinks
  
• Juice
  
• Drink Boxes
  
• Waters Containing Sugar
  
  TRANSFER OF UNCLAIMED DEPOSITS TO THE STATE
  
  The Bottle Bill has never specified what should happen to beverage container deposits that are not redeemed by the consumer put in the garbage).Beverage companies will now have to transfer 80% of the unclaimed deposits they collect to the state's General Fund. This measure is expected to raise $115 million in the first year.
  
  IMPROVED OPPORTUNITIES FOR REDEMPTION
  
  The Bottle Bill requires beverage distributors to compensate retailers for the cost of collecting and recycling empty containers by paying them a small handling fee per container.As part of the new law, the handling fee has been increased to 3.5 cents per container.The idea behind this increase was to encourage more redemption centers to open and expand, making it more convenient to return empty containers.
  
  HOW THIS IMPACTS SCHOOL FOOD SERVICE PROVIDERS
  
  Are there any exemptions to New York's Bottle Bill?
  
  The only exemptions are for beverage containers manufactured in New York and which are sold outside of New York State and beverage containers sold or distributed aboard ships and aircraft.Consequently, schools are NOT exempt from the law. As a result any contracts or agreements may not be designed to hinder or frustrate the purpose or intent of the Returnable Container Act.
  
  Will I have to pay more for bottled water as a result of this law?
  
  Yes.You will see a 5 cent increase per bottle in the price of goods from your distributors  as well as the 3 ½ or 4 cent handling fee.This price increase will be imposed by the manufacturers or bottlers on distributors.
  
  Do I have refund the nickel deposits to students?
  
  No.Although the new NYS law requires all dealers to refund consumers the 5 cents deposit on containers, based on the definition of "dealer" school food service providers are not considered dealers.The definition of dealer in NYS environmental conservation law :"dealer" means every person, firm or corporation who engages in the sale of beverages in beverage containers to a consumer for off premises  consumption in this state.As schools sell products that are to be consumed on premises it is a logical conclusion that school food service providers are not considered dealers under NYS law.So while school food service providers will be selling the bottles that have the new deposit label they won't be required to refund students/staff the 5 cents.It will be up to each school district to determine whether they will raise their prices to include the 5 cent deposit cost.
  
  What do I do with all those empty bottles?
  
  Pursuant to the law, distributors (such as Quandt's) are not required to pick up empty bottles from schools or other retail organizations.This is because the distributor is not the "deposit initiator" of the product.A deposit initiator is the first bottler,
  distributor, dealer or agent to collect the refund value deposit on a beverage container sold in New York State.It is conceivable that a distributor could be a deposit initiator. However, the intermediary distributor obtains the product from a manufacturer who has already added the 5 cent deposit to their product price and as a result is the deposit initiator.
  
  The law does require the deposit initiator, or manufacturer, to pick up empty beverage containers from dealers and redemption centers.The law defines a redemption center as: any person offering to pay the refund value of an empty beverage container to a redeemer, or any person who contracts with one or more dealers or distributors to collect, sort and obtain the refund value and handling fee of empty beverage containers for, or on behalf of, such dealer or distributor. Since schools do not fall under the definition of dealer or redemption centers it seems that manufactures will not be required to pick up bottles at schools.
  
  This leaves schools with few options:
  
  1) Set up recycling collection containers to collect empty bottles. These bottles could then be returned to a redemption center and would allow school food service providers to recoup the 5 cents spent on purchasing the product.would require either returning bottles to the redemption center via a school transport system or contracting with a third-party to deliver them to redemption centers.
  
  2) Check with your bottler; some bottlers may provide containers to collect the recyclables.
  
  3) Encourage clubs or other student run organizations to collect plastic bottles for return to a redemption center as a fundraising activity.
  
  4) Install a reverse vending machine in the schools to collect the bottles and refund 5 cent deposit to students.The state has set up a beverage container assistance program for businesses, non-profits and municipalities to help defray the costs of installing a reverse vending machine.While installing a machine might act as incentive for students to return the bottles it still leaves schools with the responsibility of getting empties to a redemption center in order to recoup the 5 cent deposit.
  
  The above analysis is simply my interpretation of the law.I am seeking clarification from the Department of Environmental Conservation on two points: 1) Are school food service providers considered dealers as defined by the law 2) if school food service providers are not considered dealers what is the obligation of deposit initiators and distributors to pick up empty bottles?
  
  We will be in touch with our members again as we receive clarification on the murky pieces of the law. We ask that as you make a plan for your program to address the ramifications of the BBBB (Bigger Better Bottle Bill), please send your plan to NYSNA to post on the website for other schools to read. If you hit a snag, share that as well. Thank you.
  

For Legislative Language Click Here