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, effective April 1, 2026, 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. This is known as a 'full-back' system.
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 required a small amendment to the Environmental Protection Act to ensure regulation making authority for the proposed changes. Division 9 of the Materials Stewardship and Recycling Regulations outline the changes that will come into effect on April 1, 2026 in regard to beverage containers.
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.
In programs like this, a small container recycling fee (CRF) 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?
Responding to feedback from industry partners, the new model will be in place for April 1, 2026. This start date takes into account concerns from stakeholders related to the administrative challenges in switching models and will ensure a more comprehensive and smooth transition.
At that point, beverage container returns will be run by a non-profit set up exclusively for this purpose on behalf of the industry that sells beverages in these containers. This model will still use existing beverage container depots so Islanders will see no change in how they return containers
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?
Once fully implemented, 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 currently in New Brunswick, tetra paks have a CRF of zero cents while PET plastic has a CRF of 1 cent.
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. 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 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