California’s CRV Crisis: Why Low Deposits Crushed Redemption Rates

 

Carrots and Sticks: Real-World Policies That Force Circular Change

California’s CRV Deposit System – The Cautionary Tale: When the Carrot Is Too Small and the Stick Isn’t Sharp Enough

Posted on November 19, 2025

California invented the modern U.S. bottle bill in 1987. For decades, it was the national gold standard: billions of containers recycled, litter slashed, and the state processing one out of every five beverage containers recycled in the entire country.

But in 2025, the story looks very different.

Despite having a deposit system older than those in Germany or Lithuania, California’s beverage-container redemption rate has been stuck at 65–75% in recent years:

• Aluminum cans: ~70–75%

• PET plastic bottles: ~65–70%

• Glass containers: significantly lower

Respectable compared to non-deposit states — but miles behind the 92–98% return rates in Germany, Lithuania, Norway, and even the old U.S. 1990s bottle-bill average of ~90%.

So what went wrong?
And what is California finally doing about it in 2024–2025?

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The Original (Weak) Carrot

For nearly two decades, California’s consumer deposit value (CRV) barely changed.

The CRV Problem

• 5¢ on containers under 24 oz

• 10¢ on containers 24 oz+

• Unchanged since 2007

Inflation eroded the value so badly that a “10¢ deposit” is worth ~6¢ today in real terms.

Starting in 2024–2025, wine boxes, bladders, and pouches were added at 25¢, but the core bottle values stayed the same.

Outcome

A weak financial incentive + low scrap prices = fewer people bother returning containers—especially as redemption centers shut down.

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The Broken Stick

The other half of a deposit system is convenience. And California let that collapse too.

The Redemption Desert Crisis

• Early 2000s: ~5,000 redemption centers

• Today: fewer than 2,000

Low scrap prices, frozen payment formulas, and high operating costs wiped out thousands of centers. Massive “redemption deserts” emerged—large regions with no easy way to get CRV money back.

A deposit program with nowhere to redeem your deposit is not a program. It’s a tax.

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The 2024–2025 Fixes: California Finally Copies Europe

After years of crisis, Sacramento passed SB 1013 (2022) and SB 353 (2023)—the largest CRV overhaul in 37 years.

1. Expanded Materials (2024)

Added to the CRV program:

• Wine

• Spirits

• 100% fruit/vegetable juice

• Box/bladder/pouch packaging (25¢ deposit)

These formats had been flowing almost entirely to landfill.

2. Mandatory Labeling (July 2025)

All wine and spirits must carry the “CA CRV” label to ensure clear participation.

3. Financial Fixes

• Higher handling fees

• Updated processing payments
  These stabilize the redemption-center ecosystem and reduce closures.

4. Dealer Cooperatives

Instead of forcing every supermarket to host returns, retailers can band together into cooperatives—much like Europe’s return-point clusters.

5. Mobile & Bag-Drop Programs

More flexible, community-based return options reduce the friction consumers feel.

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Early Signs: A Real Turnaround

CalRecycle reports:

• 1.5 billion more containers collected in 2024 vs 2023

• First upward trend in redemption rates in a decade

California’s CRV system is finally climbing out of the hole.

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Materials This Policy Will (Slowly) Improve

• Glass bottles (especially wine and spirits)

• Aluminum cans

• Steel cans

• PET plastic bottles

• New box/bladder/pouch beverage formats

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The Big Lesson: Don’t Let Your Deposit Shrink

California proves something simple:

A deposit system fails when the carrot loses value and the stick becomes inconvenience.

Countries with high performance—Germany (25¢+), Lithuania (10¢ in a lower-wage region), Norway (near-universal return points), Oregon (10¢ with increases)—all share two traits:

✔ High deposits
✔ Dense, convenient return infrastructure

Get both right = 90%+ return rates.
California ignored both for too long.

Will California Finally Go to 25¢ Across the Board?

California spent nearly four decades learning the hard way:

Deposit systems only work when the carrot stays juicy and the stick actually bites.

Germany and Lithuania solved this long ago.
California is finally catching up—after a crisis that didn’t need to happen.

P.S. California’s comeback shows that even broken systems can be fixed — but prevention is cheaper than resurrection. Share this with your legislators before your state becomes the next cautionary tale.