HomeMy WebLinkAboutCOM 0692.001 2002-2004 JNSY OF H,w
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i ~;d~6c•. Barbara Bell
Director
Harry Kim
Mnyor Nelson Ho
ariiE o4 •„'p~ Uepu[y Director
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DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
2S Aupuni Street, Room 210 • Hilo, Hawari 96720-4252 _
(808) 961-8083 • Fax (808) 961-8086 ~ c.
cohdem®interpac.ne[ C
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July 21, 2004 ~
Mr. Joe Reynolds, Chair and Mr. Mike Tulang, Vice-Chair J
and Members of the Hawaii County Council Parks and Environmental Management Committee
25 Aupuni Street ~
Hilo, HI 96720
Subject: Summary of Bottle Bill Implementation for Hawaii County
We will be requesting the public's participation in redemption of all eligible beverage containers
to reduce litter, reuse valuable resources (aluminum, plastic, glass) and save landfill space. The
incentive is the nickel. The public pays the nickel up front. They will want to redeem that
deposit and be assured that the product is really being recycled. The State's Beverage Container
Deposit Law (aka Bottle Bill} goes into full effect January 1, 2005.
We have been told by the State Department of Health (DOH) that we will receive annual grant
funds adequate to establish two positions (grant hire) to assist the County in establishing the
redemption centers, preventing fraud, and conducting public outreach and education relating to
the bottle bill. The DOH has assured us that this funding will be ongoing beyond the first year of
implementation.
We are working closely with DOH and stakeholders to identify the actual costs to the County of
providing convenient redemption opportunities for our Big Island residents and businesses. A
meeting is scheduled on July 2.2., 2004 with the DOH and Recycling Coordinators from each
County to identify the dollar amount of grant funds that will be made available to each County
from the advance collections, and to develop job descriptions for proposed grant hires (see
attached agenda). We hope to update the County Council on the results of this meeting at our
August 3`d presentation.
The state law was drafted such that redemption of eligible containers is most appropriately
combined with rubbish disposal rather than the point of purchase (retail stores). For us, it is
envisioned that the act of redemption will work in tandem with other forms of recycling so that a
suitable place for a redemption center will be County transfer stations enhanced to receive other
recyclables, or other venues associated with recycling/re-use activities.
The County is in the process of issuing an RFP for redemption collection services. Some
excavation site improvements will be needed at transfer stations considered for these services. _ ~ ~
We will also need to provide fiscal support for collection in remote areas due to ~~rn Na 1
Haw-ni~i G~unry~ is nn equal opportunity provider unA emplo}'ec Rgf, TO: P 4 M
Ref. Uate
Mr. Joe Reynolds, Chair and Mr. P~tike Tulang, Vice-Chair
and Members of the Hawaii County Council Parks and Environmental Management Committee
July 21, 2004
Page 2
transportation costs, and provide logistical support for the positions created through the State's
granted funds. These additional financial commitments have only been lately identified, as the
planned implementation of the Bottle Bill was hindered by the uncertainty surrounding this
legislation. The passage of SB 1611, in the 2004 legislative session, finally laid to rest many
issues that arose from this 2002 law.
We are developing acommunity-based, private sector model for convenient redemption centers
through a collaboration of our local recycling businesses, nonprofit organizations such as the Arc
of Hilo, and our local large food retailers. The model involves mobile redemption units to serve
our rural populations. This would allow us to rotate collection services around the island thus
providing some means for our rural communities to participate. We anticipate that the recycling
industry will provide manned and unmanned redemption centers (reverse vending machine
depots) to serve Hilo and Kailua-Kona.
The public will likely demand convenient locations to redeem the five cents they paid at point of
purchase. They need to be assured that government isn't "stealing" their nickels while not
providing venues For redemption. This law is set up to be fiscally controlled by government, not
industry. Many problems concerning fiscal integrity have been encountered in the states where
bottle bill redemption is controlled by the beverage industry. This law is meant to encourage
consumers to redeem their deposits in conjunction with disposal to promote recycling of other
materials such as newspapers and cardboard. The County provides the facilities for disposal,
thus we are expected to be fully involved in the implementation of this law and to support the
State's mandate.
Barbara Bell
DIRECTOR
Enclosures: Agenda for DOH Bottle Bill meeting 7/22/04
Summary of Beverage Container Deposit Law 2004
Minutes of Big Island Bottle Bill Task Force June 23, 2004
cc: Harry Kim, Mayor (w/enclosures)
Lono Tyson, SWD Chief (w/o enclosures)
Eileen O'Hora-Weir, Recyc',ing Coordinator (w/o enclosures)
State & County
Planning Meeting
Implementation of Hawaii Purpose
Deposit Beverage To develop solutions and prioritize next steps for counties to take
in preparation for the start of the Hawaii Deposit Beverage
Container Program Container Program.
July 22, 2004
Agenda
Department of Health 10:00 Welcome 8 Introductions
Office of Solid Waste Management
919 Ala Moana Boulevard 10:15 Agenda Review & Discussion of Expected Outcomes
Honolulu, HI 96814 10:30 State Assistance to Counties
Room: 215 1. Funding
Time: 10 a.m. - 3 p.m. _ Dollar amounts to counties via contracts/grants
- Expected date when counties can expect to receive
funds
Expected Participants: - Activities the funds shall cover
Steve Chang (DOH) - Additional staffing and position descriptions
Lane Otsu (DOH) 2. Technical
Jennifer Tosaki (DOH) - RFP/ConVact writing
Suzanne Jones (C&C of Honolulu) 11:30 Update to Nani Medeiros (she visits from 11:30 to noon)
Allison Fraley (County of Kauai)
12:00 Lunch
Hana Steel (County of Maui)
Irene Phillips-Cordell (County of Maui) 1:00 Establishing Redemption Centers on Neighbor Islands
Eileen O'Hora-Weir (County of Hawaii) 2:00 Impacts the Deposit Program will have on Glass ADF
2:30 EPA Grant Money/ County Demonstration Projects
Additional Participants:
2:50 Wrap Up
John Harder
Nani Medeiros (Governor's Office) 3:00 Finish
Lunch:
We can walk across the sVeet to Ward
Warehouse to buy lunch then bring it
back to room 215. There are several
take out food options -Subway, Aloha
Sushi, and plate lunch places.
J•?V'~R
~'!~Y
i"" Barbara Bell
Director
Harry Kim
Manor v~-, Nelson Ho
ire o7'n~'~ Deputy Director
~aixixt>~r of ~rzfuttii
DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
25 Aupuni Street, Room 210 • Hilo, Hewari 96720-4252
(808) 961-6083 • Fax (808) 961-8086
cohdem@interpac.ne[
BEVERAGE CONTAINER DEPOSIT PROGRAM (THE BOTTLE BILL)
SUMMARY AND UPDATE, 2004
The program:
• Establishes a beverage container deposit and recycling program in the State Department of Health.
• Applies to all glass, metal, and plastic beverage containers that are 64 ounces, or less. Applies to beer,
juice, water, sodas, coffee and tea containers. Exempts milk, wine, and hard liquor containers.
• From October 1, 2002, to October 1, 2004, imposes a handling fee, paid by the importers/distributors,
of 0.5 cents on all plastic and metal (excludes glass) beverage containers, 64 oz. or less.
• Until October 1, 2004, maintains the current glass advance disposal fee of 1.5 cents per container.
After that, the current fee still applies, but only to glass containers that are not deposit beverage
containers.
• On October 1, 2004, raises the fee paid by the importers/distributors to 1 cent on all beverage
containers, and now includes glass beverage containers.
• On January 1, 2005, raises the fee paid by the importers/distributors to 1.5 cents and establishes a cap
at that level. Starting January 1, 2005, the handling fee will be based on the actual percentages of
containers recovered. This ensures the program operates efficiently and keeps cash surpluses down.
Also, any surpluses can be used for recycled-content product development and marketing of those
products.
• On January 1, 2005, establishes that every container will require a 5 cent deposit, from the
consumer. 5 cents is returned when the container is redeemed.
• Sets labeling requirements for beverage containers that are covered by the program.
• Establishes redemption centers. They will be 1. Certified by the State Deparhnent of Health, 2.
Within 2 miles of each other in urban areas, and 3. Exempted in rural areas, for small "mom and pop"
stores, and for financial hardship.
• Establishes an advisory committee io develop implementation and administrative rules. Hawaii
County representatives are Barry Taniguchi, KTA; Margaret Pahio, Business Services Hawaii; and
Barbara Bell, County Department of Environmental Management.
• Exempts deposits from the general excise tax.
• Requires the state Auditor to conduct managemenUfinancial audits every two years, after January,
2005.
Hawni ~i County is nn equal opportunity provider and employer.
6/23/04
Bie island Bottle Bill Task Force Meeting Minutes
The Bottle Bill Task Force monthly meeting was held on Wednesday, June 23`d at 1 -
3:30pm with presenters Terry Telfer, President of Reynolds Recycling and Bruce
Iverson, Market Development Manager, at the KTA Conference Room in Waimea. Terry
and Bruce shared the following facts with the group:
Terry thanked everyone for letting him and Bruce come and share what Reynolds
Recycling sees as an opportunity for their company on the Big Island. Reynolds is a
company that has gone through a lot of changes and they currently are only operating on
Oahu with a staff of 26 employees, having spun off from the previous Reynolds Metal
Company. They see the future getting very bright, concerning recycling, due to the
Bottle Bill's passing and soon implementation in Hawaii. What the general public does
not understand in the recycling debate is that even though beverage containers are only 3
- 4% of the waste stream by weight, the landfills get filled up by volume, not by weight,
and the containers take up significantly more space than weight. For every container that
is recycled, % cup of gasoline is saved, or the equivalent energy it would take to provide
3 %2 hours of TV. Reynolds will ship their aluminum to Alabama, shred the plastic and
sell to Asia and glass will be shipped to Oahu and used by their sister company for
aggregate, etc.
Reynolds Recycling is gearing up to open 2 Recycling Depots on the Big Island (Kona ls`
and Hilo 2"`~). They are the sole distributor of Tamra Reverse Vending Machines and will
be evaluating whether they will use several machines in a "Depot" type setting or have a
manned site without machines. Demand and utilization will be the deciding factor. They
have contracted with Tamra for 30 of the "Steady Eddie" type machines for use through
out Hawaii. The actual model dumber for the middle of the road style machine they have
chosen to use is TX2 and it can be viewed on the Tamra.com website. They will also
consider Mobile Recycling operations for remote locations.
Terry claims that the Beverage Container distribution will be along the lines of:
52% Aluminum
28% Plastic
19% Glass
1 % Other
Hawaii consumes more glass than does other states and specifically more beer.
Utilization studies in other states show that where recycling can be done at stores where
they are purchased, generally individuals recycle only 2 X's a month, even though they
go to the store many more times than that. The average individual returns 60 containers
on average at a time.
Details on the operation of the machines:
Reynolds is not interested in selling the machines but instead would like to lease them.
They aze not profitable unless a 5 year time frame is being considered. Terry wouldn't
state prices but the machines cost approximately 15 k ,plus maintenance, and Reynolds
will charge a fee to pick up, and dispose of the materials in the machines. If the leasee
turns over all redeemed products to Reynolds, then they will only pay a maintenance fee,
etc. to Reynolds and let Reynolds claim the handling fee in lieu of fees to pick up, etc.
The salary for the attendant would also have to be paid for by the leasee.
A minimum of two machines is necessary because each machine can only handle two of
the three mediums, i.e. glass, aluminum, or plastic. The machines need to be cleaned
daily and there will need to be an attendant present to assist the public. Upon redeeming
the containers the public will get a script that will refer them to a store for their actual
money redemption, due to security issues. The"Steady Eddie" machine will crush the
cans, and the plastic containers and glass will be broken but not really crushed.
When asked if these machines are operating successfully in the mainland, Bruce said that
they are all over California at shopping centers. Commercial space is acquired, either
through donation or ]ease acid machines are set up in a bank with an attendant to empty
the machines as needed. Electricity is needed. In discussions with both Terry and Bruce,
it was brought out that the volume that these machines can handle is great but the ability
to store the containers is not very great so they will need to be emptied pretty consistently
if volume is high, into other containers at the site and removed later and taken to a
processing center. In removing the containers from the machines, the glass is too heavy
to be bagged, so it is poured out, but both the aluminum and the plastic are removed in a
bag similar to a trash compactor and a new bag is then put in its place. They are
anticipating million containers a month on the Big Island or 75,000 transactions.
Fundraising Opportunities:
Other possibilities that they will entertain aze school ornon-profits having drives to fill
up a 40 ft. trailer with beverage containers and they will pay approximately $6,500 to
these groups for their successful efforts. Terry said the owner of Reynolds Recycling
maybe willing to supply machines, at cost, for schools, etc.
In closing, Terry and Bruce were asked what they wanted from the County and they
asked for the use of land for the Depot sites that might be suitable for their operations.
Bruce gave the example on Oahu where they are working with D.O.T. and paying a small
rent to utilize space for a depot or manned site. Because their sites aze really convenience
centers, they feel in their discussions with Department of Health that they will not need a
additional permit for their machines. However, if a leasee wants to collect the handling
fee, they will have to get their own permit.
Eileen O'Hora-Weir, will be attending a meeting with all of the other County
Recycling Coordinators and the Department of Health and will email this group as
to the next meeting.