Introduction to Bottle Bills in the United States

Intro to Deposit Return Schemes (DRS) & Bottle Bills

Deposit return schemes (DRS) are systems designed to minimize waste and promote the recycling of beverage containers through the addition of a deposit (typically 3–10 cents) on beverage containers at the point of sale. Consumers are encouraged to reclaim the deposit by returning empty containers to a reverse vending machine or designated collection point in participating stores or marketplaces.

DRS systems and bottle bills are present in over 40 countries and territories around the world, with origins in Finland during the 1950s. Finland’s initial DRS was focused on glass bottles, but has been expanded to other beverage packaging materials like aluminum, PET, and more.

In 1970, the Canadian province of British Columbia became the first jurisdiction in North America to introduce a DRS system. British Columbia is also a pioneer in extended producer responsibility (EPR) legislation for packaging and paper products; you can read more about their program and the programs of other Canadian provinces in this article.

Before we dive into the DRSs in 10 US states in subsequent articles, let's walk through some terms and an example of how a DRS works (in most cases).

Deposit Return Scheme (DRS) Glossary

Refund Value:

The initial deposit a consumer pays at the point of sale, which is refunded when the empty container is returned to a redemption location. For example, a consumer in Oregon buys a bottle of soda and pays an additional 10 cents. When they return the bottle to a redemption location, they receive the 10-cent deposit back.

Redemption Center:

A location where consumers can return empty containers covered by a bottle bill to reclaim their initial deposit. Redemption centers vary by state and can include grocery stores, retail stores, and standalone centers. Redemption centers typically process returns through an automated reverse vending machine or  manual drop-off process.

Reverse Vending Machine (RVM):

A device at a redemption center or storefront designed to automate the collection and processing of containers covered by a DRS, including the return of deposits to consumers. RVMs typically use sensors or AI technology to scan barcodes and validate containers. Read more about how RVMs work here.

Redemption Rate:

A measure used by system administrators and nonprofit organizations to track consumer participation in a DRS, typically calculated annually. 

Formula: (Containers redeemed ÷ containers sold) x 100 

For example, Connecticut’s redemption rate in 2025 was 92%: (1,784,030,840 ÷ 1,949,375,010) x (100) = 91.52%, or approximately 92%.

System Administrator:

A nonprofit organization or state agency responsible for managing a DRS. Responsibilities may include establishing redemption centers, managing relationships with retailers and brands, facilitating the processing and recycling of collected materials, and distributing handling fees to participating redemption centers.

Handling Fee:

A fee paid to participating redemption centers (grocery stores, retailers, standalone centers, etc.) for each container collected at the location—typically 1–3 cents per container. Handling fees help cover the administrative and logistical costs associated with operating an RVM or drop-off location.

Unredeemed Deposits:

Deposit funds that go unclaimed when consumers do not return empty containers for redemption. Where unredeemed deposits go varies by state but may include funding for recycling infrastructure grants, program administration, and litter cleanup.

How Deposit Return Schemes (DRS) Work

DRS programs often have different deposit rates for materials and container sizes, but most follow a similar structure. Here is an example using a glass bottle with a 10-cent deposit.

1. The beverage company fills the bottle and sells it to a retailer at the normal cost plus a refundable 10-cent deposit per bottle. 

2. The beverage company takes the 10-cent-per-bottle deposit and gives the collected funds to a system administrator—a non-profit organization that manages the DRS. 

3. The consumer purchases the beverage bottle and a 10-cent deposit is added to the sticker price (displayed on the label).

4. The consumer drinks the beverage and decides to return the bottle to the store or through a reverse vending machine to reclaim their deposit and keep the bottle in the loop.

5. The system administrator picks up bottles for processing, and the initial 10-cent deposit paid by the store to the beverage company in step 2 is returned to the store, completing the flow. It is also common for the system administrator to pay the retailer additional handling fees for each container collected (usually 1–3 cents).

6. The system administrator takes the bottles for counting and sorting, and the recycling process begins—with the bottles either being refilled or turned into new raw materials.

To see this process in action, check out this video from TOMRA—a leading reverse vending machine manufacturer.

Deposit Return Schemes (DRS) are heavily reliant on consumer participation, as bottles can exit the closed-loop system in step 4 if they decide reclaiming the deposit is not worth their time.

When consumers participate, a DRS can be an efficient way to reduce waste and preserve natural capital, recirculate materials and retain economic value, and increase state and nationwide recycling rates. In the articles covering state programs, we compare PET and aluminum recycling rates between US states with and without a DRS —the differences might surprise you!

Deposit Return Schemes (DRS) in the US

The map above shows the US states with a DRS, highlighted in green.

The 10 US states with a DRS (a.k.a. bottle bill) include: 

• Oregon 

• California

• Maine 

• New York 

• Iowa 

• Connecticut 

• Vermont 

• Hawaii

• Michigan 

• Massachusetts 

Now that you have a grasp on how DRSs works, explore the 10 US DRSs in our other articles here.