Can and bottle deposits add up for environment

Mar 29, 2011

All the unclaimed deposits from Michigan cans and bottles really add up. The state gets about $12 million a year out of it.

A small amount of this money goes back to the retailers who sell the containers. But most of it is used for cleaning up old industrial land or toxic waste. The state also uses the money to finish the clean-up of federal Superfund sites.

With budget cuts, money for pollution clean-up is harder to come by. Anastasia Lundy is with the Department of Environmental Quality. She says her department used to rely on Michigan’s general fund.

"Well the programs that are funding environmental clean-up no longer receive any general fund whatsoever, so this has increased our reliance on these bottle bill funds to try to keep the programs meeting the most critical needs."

The state wants as much money in the clean-up fund as possible. They’re worried they are losing money to people they call smugglers. These are people bringing cans into Michigan from other states for deposit money.

This might sound like the Seinfeld episode where Kramer and Neuman drive cans and bottles into Michigan. But the state is getting serious about cutting down on bottle deposit fraud. So, they want bottle manufacturers to put a special mark on containers sold in Michigan. Bottle return machines would then only take containers with the mark-Michigan containers.

The state changed the bottle bill to require manufactures to add the mark, and the manufacturers are now suing the state over the changes to the bill.

The American Beverage Association is bringing the suit. They didn’t return calls for comment on this story. But, they’ve told other media outlets that making special cans and bottles for Michigan will be expensive and they don’t want to do it.

Retailers are siding with the state in the suit. Mike Lashbrook is the President of the Michigan Beer and Wine Wholesaler Association.

"Well, you know, this issue, the fact that there is this smuggling that’s been going on, it’s not a joke like the Seinfeld episode. It is a major problem.

He says retailers are also worried about losing money to bottle smugglers.

The state has already put a little over a million dollars into upgrading the bottle machines to read the special mark. If the Beverage Association wins their case the state will lose this money.

Sarah Alvarez - Michigan Radio Newsroom