Beverage Container Refunds - Proposed Changes
Environment, Energy and Climate Action is proposing changes to the province's beverage container program, affecting deposits and refunds on cans, bottles and other beverage containers.
Legislative Changes
Government is proposing the repeal of the Beverage Containers Act in order to make way for a new industry-led model for the beverage container program, giving more money back to Islanders. Under the proposed plan, there would be a deposit of 10 cents on each container, with a refund of 10 cents on return.
Container deposits and refunds would be dealt with through regulations under the Environmental Protection Act, similar to other extended producer responsibility programs already running in PEI. This requires a small amendment to the Environmental Protection Act to ensure regulation making authority for the proposed changes. There would also be new regulations under the Materials Stewardship and Recycling Regulations under the Environmental Protection Act.
Extended Producer Responsibility
This is an industry-led extended producer responsibility (EPR) model. This means that companies that make or sell products, like beverage containers, are responsible for what happens to them after you're done using them. The program would be run by a non-profit industry association set up by the beverage container industry for this purpose.
The customer would pay a 10-cent deposit and get their full 10-cent deposit refunded (known as a “full-back system”).
In programs like this, a small recycling fee is added to beverage containers. The fee is set by industry, it varies by container type and covers recycling costs. The fee only applies to containers bought after the program starts, older containers will still get the full 10 cent refund.
When will the increase happen?
The changes must be approved in the provincial legislature. The repeal will be introduced this spring and proclaimed when the regulations are complete, and stakeholder feedback has been received. Once this is complete, the increase will take place. This could be as early as Fall 2025.
Where will I drop off my bottles and cans?
PEI's beverage container depots will operate as normal, however they will work with the industry association rather than the government. The customer would see no change to the process, but they would receive a 10-cent refund.
What are the fees?
The customer will pay a 10-cent deposit and get their full 10-cent deposit refunded.
In programs like this, a small recycling fee is added to beverage containers. The fee is set by industry, it varies by container type and covers recycling costs. The fee only applies to containers bought after the program starts, not containers purchased before the change.
The recycling fee may increase or decrease based on the cost to recycle materials. Some containers might not have a fee at all. Most containers today are made of PET plastic or aluminum, which have high recycling value, meaning their fees are expected to stay low. For example, in New Brunswick, the fee was one cent per can when the program began in 2024 and the fees there are adjusted annually.
We are still working out the details on how we can keep the public up to date on the container recycling fees. Encorp Atlantic, which operates New Brunswick’s model, does have extensive information on their website about what the fees are and how they support and fund the program in New Brunswick. There will be similar transparency in PEI.
Why aren't the deposits higher?
In the beginning phase a higher increase was considered, however after completing a feasibility study, government decided to propose the deposit be 10 cents.
Partners highly prefer regional coordination, so we chose to align our program with New Brunswick. New Brunswick has already moved to an EPR model and Nova Scotia is conducting a similar review of their program to consider options for improvement.
Who covers the programs cost?
The program would be run by a non-profit industry association set up for this purpose. The recycling fee will fund the administration of this program including paying handling fees to depots, program operations for trucking, marketing and promotion, etc. Government would no longer receive revenue or spend money on this program.
Will the depots be able to financially handle the influx of returns when the program is launched?
Yes, the department maintains consistent coordination with the bottle depots and there will be a plan in place to handle the increased returns once the program begins.
If the program is an industry led model does that mean that there will be no consumer protection to fee increases?
Fees would be re-evaluated annually by the industry agent responsible for the program. The Department of Environment, Energy and Climate Action can review the fees when needed. The non-profit running the program can’t raise fees unless to cover recycling costs. This is the same for all 9 other industry-run programs in PEI
What other EPR models exist in PEI?
There are nine other EPR models in operation in PEI. This covers lead acid batteries, oil/glycol, electronics, agricultural plastics, pharmaceuticals, medical sharps, lights/lamps, paint, and rechargeable and single-use batteries. This includes the following:
- Agricultural Waste - Cleanfarms
- Electronics Recycling - Recycle My Electronics™
- Paint Recycling - Product Care Recycling
- Light Recycling - Product Care Recycling
- Batteries - Call2Recycle