Jack Markell Proposes Universal Recycling for Delaware

Governor Jack Markell yesterday presented a plan for universal recycling that would put a recycling container in front of every household in Delaware. The proposal looks promising, economically and politically.
First, the economics: Landfills are not renewable resources, which means the cost of simply burying our trash has nowhere to go but up. The Delaware Solid Waste Authority's tipping fees (the price per ton to dump) are due to go up sharply to cover current fixed and operating costs.
But if you think the current landfill is expensive, consider the next one. The cost of replacing Cherry Island landfill was estimated in 2006 to be $109 million. The eventual cost is likely to be several hundred million dollars—if a site can be found anywhere in New Castle County. Using a quick back of the envelope calculation, I estimate that we would save several million in today's dollars for every year we postpone replacing Cherry Island.
The problem is that these savings aren't sitting in a fund somewhere. We have to find the means to create them by investing in recycling infrastructure today. This is where the Un-bottle Bill comes in. Bottlers, distributors and retailer want it repealed. Markell vetoed HB 201 last year, saying, "I believe we need to review this issue in a larger context that takes into consideration the environment, the industry and Delaware taxpayers."
Under Markell's proposal, the 5 cent deposit would be replaced by a 5 cent container fee (eventually dropping to 2 cents) that would be used to fund the upfront and ongoing costs of providing statewide recycling. Bottlers, distributors and retailers would no longer be burdened with the onerous chore of collecting, stockpiling and recycling bottles. This most inefficient method of recycling, which requires handling every step of the way, would be replaced by promoting single stream collection, which requires much less handling.
By making it easy for households to recycle, we should reduce their net landfilling cost by about a third, which is Wilmington's diversion rate after two years of curbside collection. At the end of the day, households should not see any net increase in costs above the anticipated increase in tipping fees.
Markell's proposal looks promising politically as well. Sen. David McBride and Rep. Michael Mulrooney, the relevant committee chairs, are on board. Rep. John Viola, who sponsored HB 201, voiced his support yesterday. I know other legislators are ready to sign on.
As the News Journal reports, there is still resistance from the Maryland-Delaware-District of Columbia Beverage Association:

Ellen Valentino, the group's vice president, said state recognition of the deposit law's problems are encouraging, but "we are disappointed to learn that he is proposing a container tax as an alternative funding source."

Fine, perhaps you would like your bottles back. If you want those empties out of the back of your store, this is the way to get it done. I don't think the 5 cent fee will affect buying habits much. The deposit has been in place for roughly three decades, and most consumers hardly notice it at the checkout line.
Waste haulers are solidly on board:

"I think all the waste haulers together are very strongly behind this proposal. It provides us all with an opportunity to compete and provide a service on an equal basis," said Tom Houska, senior district manager for Waste Management of Delaware, the state's and nation's largest waste company. "It has the best chance of anything I've seen in a long, long time."

Representatives of the locally owned waste hauling industry have willing, even eager, participants in efforts to create a statewide recycling program over the last year. They want to find a way to do this.
This is a big proposal that deserves much more economic and political analysis. Stay tuned.