BOTTLED WATER: THE IMPACT

BOTTLED WATER: THE IMPACT ON MUNICIPAL WASTE STREAMS The argument for municipal water supplies During its 75th Annual Meeting in 2007, The U.S. Conference of Mayors adopted a resolution that stresses the importance of municipal water and encouraged a compilation of information regarding the impact of bottled water on municipal waste. At the 2008 Winter Meeting of the Conference, staff released a preliminary report that summarized various data and studies on the issue. This document presents findings that address growth of the bottled water market, bottle recycling rates, litter and other pollution, and ultimate bottle disposal, based on additional research and input from the bottled water and container industries as well as local environment and public works commissioners. The U.S. Conference of Mayors 05/01/08

BOTTLED WATER: THE IMPACT ON MUNICIPAL WASTE STREAMS The argument for municipal water supplies Bottled water clearly plays an important role in the American marketplace. The vast majority of bottled water products and municipal water supplies are far superior to other bottled beverages, such as soft drinks, sports drinks and energy drinks, in terms of the health benefits they provide. Moreover, our mobile, convenienceoriented culture finds the ease of access and use of bottled water extremely appealing, as evidenced by the skyrocketing demand for bottled water products over the past decade. Bottled water is especially suited for large public events, certain institutional settings, and during the rare occasions when municipal water infrastructure is compromised because of natural disasters or other emergencies. At issue, as many cities note, is the fact that high quality, healthy and safe municipally supplied water is already delivered directly to local consumers at a fraction of the cost of the same volume of bottled water without extra packaging and the ancillary waste. Moreover, given the recent and ongoing scrutiny of the causes of global climate change, namely, burning fossil fuels that release carbon dioxide into the atmosphere, it is generally recognized that producing and delivering municipal water to consumers obviates the pollutants associated with producing and transporting bottled water as well as the spent bottles that often end up as litter or in landfills, in spite of widespread local recycling programs. Municipal water is centrally treated and scrutinized under strict federal guidelines and supplied directly and cost effectively to consumers homes and places of business with minimal waste; furthermore, approximately 40% of bottled water products are derived from municipal sources. During its 75th Annual Meeting in 2007, The U.S. Conference of Mayors adopted a policy resolution that stresses the importance of municipal water and encouraged a compilation of information regarding the impact of bottled water on municipal waste. This document presents an on going series of findings that address bottle recycling rates, litter and other pollution, and ultimate bottle disposal. It does not address the economic or ecological value of the water itself or water quality, be it municipally supplied or bottled. While it is clear to most what constitutes bottled water, industry and regulatory classifications often confuse an otherwise obvious product definition. A statement that the International Bottled Water Association and the American Beverage Association provided to The U.S. Conference of Mayors in response to an early draft of this document provides this overview, because the production, packaging, distribution and consumption patterns of the different types of bottled water vary considerably. : Bottled water includes a broad range of products in varied packaging. As defined by the International Bottled Water Association and generally followed by industry analysts, water is bottled if it meets federal and state standards and is sealed in a container and sold for human consumption. Some bottled waters are carbonated (naturally or artificially) and some contain flavorings or essences, which cannot account for more than one percent of the water or the product is considered a soft drink. i 1

Considering the breadth of packaging and product types, it is difficult to speak consistently of a single item, be it a single serving 16 ounce polyethylene terephthalate (PET) bottle, or a 2.5 gallon high density polyethylene (HDPE) carboy, for example. For the purposes of this document, i.e., the effects of bottled water on municipal waste, a standard working definition of a single type or bottled water product in beyond its scope; however, where possible, examples will be as specific as possible. This discussion also warrants another clarification. Due largely to the proprietary and competitive concerns among bottled water firms, much of the data cited in this document, either directly or indirectly largely stems from the Beverage Marketing Corporation (BMC), which provides consulting, financial services and data on behalf of the international beverage industry, including bottled water. Where possible and appropriate, data citations will attribute BMC as a primary source. Demand for Bottled Water Domestic bottled water demand has experienced phenomenal growth over the past decade. Sales, availability and product diversity have kept pace with demand, as evidenced by the tables, below, and the following statistics: Americans bought a total of 8.3 billion gallons of bottled water in 2006, sold in a variety of containers from small single serving bottles to multi gallon water cooler bottles. ii o o Of this amount, non carbonated water totaled 7.3 billion gallons, or 88% of the total bottled water market. Non carbonated, or still water sold in individual PET containers accounted for 4.7 billion gallons i.e., 57% of the bottled water market. In 2006, total bottled water consumption hit 27.6 gallons per capita up from 25.4 gallons in 2005, which means U.S. residents now drink more bottled water annually than any other beverage, other than carbonated soft drinks. iii o Of the 27.6 gallons per capita, which accounts for all bottled water products, including single serving PET containers, reusable plastic carboys, and one and 2.5 gallon HDPE containers, the per capita usage of single serving PET bottles amounted to 15.7 gallons in 2006. o If the only PET bottle size available held 16 oz. of water, per capita usage would amount to over 60 containers in 2006. Seventy four percent of Americans drink bottled water, and one in five drinks only bottled water, according to a 2002 survey sponsored by the EPA and conducted by the Gallup Organization. iv According to the Container Recycling Institute, Americans buy an estimated 25 billion single serving, plastic water bottles each year. v Another source estimates that Americans went through about 50 billion plastic water bottles last year, about 167 per person. vi The Container Recycling Institute states that Non sparkling bottled water sales doubled in three years: going from 15 billion units sold in 2002 to 29.8 billion sold in 2005. This is almost seven times the 3.8 billion units sold in 1997. Sales of plastic water bottles 1 liter or less increased more than 115%, from 13 billion in 2002 to 27.9 billion in 2005. vii 2

U.S Bottled Water Market Per Capita Consumption 2002-2007(P) Year Gallons Gallons via PET Annual 16 oz Per Capita Bottle, Per Capita % Change Bottles Per Capita 2002 20.1 11.5 -- 45.8 2003 21.6 12.3 7.2 49.2 2004 23.2 13.2 7.5 52.9 2005 25.4 14.5 9.7 57.9 2006 27.6 15.7 8.4 62.9 2007 (P) 30.2 17.2 9.4 68.9 Data based on Beverage Manufacturing Corporation data and USCM calculation. P = Preliminary Bottled water consumption has clearly experienced serious growth over the last decade, and the need for waste management programs has risen accordingly. However, for the sake of adding some perspective to the discussion, it is worth noting consumption patterns in other bottled beverage categories. As apparent in the following chart, bottled water products compose the second most consumed beverage in the United States, by volume, outranking milk, coffee, beer, wine, fruit juices and teas. Carbonated beverages, however, have far and away the largest market share. Based on available data, it appears consumer preferences for bottled water are eroding the carbonated soft drinks market. U.S. BEVERAGE MARKET SHARE OF VOLUME BY CATEGORY 2000-2006 Categories 2000 2001 2002 2003 2004 2005 2006 Carbonated Soft Drinks 27.70% 27.50% 27.50% 27.30% 27.30% 26.80% 26.30% Bottled Water 8.70% 9.50% 10.50% 11.20% 12.10% 13.20% 14.40% Milk 11.70% 11.40% 11.40% 11.20% 11.00% 10.90% 10.90% Coffee 11.20% 11.10% 11.20% 11.30% 11.30% 11.30% 11.30% Beer 11.50% 11.50% 11.50% 11.40% 11.30% 11.20% 11.30% Fruit Beverages* 7.70% 7.60% 7.60% 7.60% 7.40% 7.20% 7.00% Tea 4.10% 4.00% 3.90% 3.80% 3.80% 3.80% 4.00% Wine 1.00% 1.00% 1.10% 1.10% 1.10% 1.10% 1.20% Distilled Spirits 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% Subtotal 84.20% 84.30% 85.20% 85.50% 86.00% 86.30% 87.00% All Others** 15.80% 15.70% 14.80% 14.50% 14.00% 13.70% 13.00% TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% * Includes liquid fruit juice and fruit drinks; excludes powdered fruit drinks and vegetable juices. **Includes vegetable juices, sports drinks, powders and miscellaneous others. Source: Beverage Marketing Corporation; Adams Beverage Group; Distilled Spirits Council of the United States; Florida Department of Citrus; International Dairy Foods Association; U.S. Tea Association 3

Recycling Rates of Water Bottles The vast majority of single use bottled water products come in containers made of a recyclable plastic material known as PET, or polyethylene terephthalate. PET is the material of choice owing to its strength, thermostability and transparency. It is inexpensive, lightweight, reusable and shatter resistant. PET can be harvested from municipal waste systems and recycled to make many new products, including fiber for polyester carpet; fabric for T shirts, long underwear, athletic shoes, luggage, upholstery and sweaters; fiberfill for sleeping bags and winter coats; industrial strapping, sheet and film; automotive parts, such as luggage racks, headliners, fuse boxes, bumpers, grilles and door panels; and new PET containers for both food and non food products. viii According to several beverage bottlers, bottle manufacturers and waste management companies and organizations, PET is among the most easily and frequently recycled materials. Not unexpectedly, several environmental and public interest groups claim otherwise. Despite the ever growing consumption of bottled water products, the International Bottled Water Association, in a recent report states At present, the market for post consumer PET bottles (including plastic bottled water containers) in the United States is strong. However, there is a growing gap between the demand for postconsumer bottles and the available supply. Simply put, there are not enough postconsumer bottles in the recycling system to satisfy the demands of the domestic PET reclaimers. ix The IBWA says that international demand for post consumer PET containers collected by local recycling programs have made it difficult for domestic materials reclaimers to compete and has led to much consolidation throughout the industry. All the while, more beverage containers enter the waste stream: Exports aside, in 2004, there were more than 3633 million pounds (1648 million kg) of domestic scrap PET bottles that could have been recycled, but were not. x One estimate claims that about 12% of water bottles are recycled, while 88% of plastic water bottles end up as garbage or litter (this study does not readily specify a particular bottle type or material); a similar report claims that at most, PET recycling rates are estimated at 23%, when considered with other PET beverage containers. xi Industry sources put the PET recycling rate at 24 26 percent, while the overall HDPE recycling rate which may be considered comparable to PET recycling rates, reached 28 percent. xii It is safe to say that the overall PET recycling rate is below 30 percent. In 1995, PET recycling reached 39.7 percent. xiii Over the past 15 years, packaged beverage sales have experienced tremendous growth, but despite the growth in population served by curbside recycling programs, recycling rates have plummeted. The number of beverage containers sold increased over 40 percent, while beverage container recycling rates declined by about one third. xiv PET plastic is generally only good for recycling once and usually for different products with different material requirements, such as carpet or clothing. The primary advantage of glass and aluminum comes in the ability for almost endless recycling: Glass and aluminum can be made into new glass and aluminum over and over again. xv Large, multi gallon polycarbonate carboys, used in home and office delivery services, are re usable 40 50 times; many bottled water providers claim that their products are recycled into new products following life as a continually reused container. 4

Deposits on non carbonated beverages such as bottled water, teas, juice, and sports drinks exist in California, Maine, and Hawaii. Given that only three states have bottle bill laws that extend to cover bottled water, the recycling rates for bottled water pale as compared to carbonated soft drinks. xvi A state report of a random sample of litter collected by volunteers at a Charles River cleanup contained a ratio of almost 5 to 1 non returnable containers to returnable (deposit) containers, and similar results have been found throughout the state. Since the ratio of deposit to non deposit containers is about 2 to 1, it is over twelve times more likely that a non deposit container will end up littering our waterways than will a deposit container. xvii The American Beverage Association, while supportive of comprehensive curbside recycling programs, refutes the efficacy of mandatory bottle deposits. Data show, according to the association, that mandated or forced deposit programs are costly, inconvenient and compete with successful voluntary recycling efforts. xviii Bottle bills and curbside recycling programs aside, one of the larger issues looming with regard to recycling PET and other containers is the fact that there are often not widespread opportunities to do anything with bottles other than throw them in the trash (or litter). Plastic bottles are extremely portable and are therefore used outside the home in places where there are not always easily accessible recycling drop off points or facilities. While many communities have extensive education programs to encourage recycling during sporting events and at other public venues, and numerous institutions often offer recycling containers, such opportunities are not as prevalent as they could be. The debates concerning bottle bills versus single stream recycling; the effects of foreign demand for PET scrap on domestic recyclers; and individual communities efforts at collecting and recycling PET are beyond the scope of this study, but require further discussion. Waste Disposal Bottles that are not recycled either end up in landfills or as litter in our cities, lakes and rivers. Certainly, individuals bear a great deal of responsibility for how they dispose of their trash, and the bottled water industry can in no way be singled out as the only responsible party in reducing landfill capacity or increasing litter. There are, however, several items of note both positive and negative in nature with regard to the ultimate disposal of water bottles. According to beverage industry data, in 2006, PET bottled water containers produced 827,000 tons of scrap PET. By weight, this amounts to 3/10 of one percent of all municipal solid waste generated in 2006; 5.8 percent of all plastic packaging produced; and 2.8 percent of all plastics entering the waste stream each year. Through improvements in packaging technology, the beverage industry in 2008 will be able to reduce, or lightweight by over 100 million pounds the amount of PET resin necessary to manufacture bottles. o Bearing in mind 827,000 tons equals 1.654 billion pounds, removing 100 million pounds from the equation still leaves 1.554 billion pounds of PET from water bottles in the waste stream. 5

According to Coca Cola, the company that produces Dasani, the majority of its primary packaging is returnable, bulk or made from commonly recycled materials like aluminum, PET, and glass. xix In late 2006, The Coca-Cola Company and Coca-Cola Enterprises, Inc. established Coca-Cola Recycling LLC to address the growing opportunities related to recycling in the United States. The Coca-Cola system also recently began building a global online inventory of primary, secondary and transport package systems by sales and weight. This database will allow the Company to measure performance more effectively and assess progress toward longer term goals. xx Pepsi-Cola works with PET producers and reclaimers in support of collecting and recycling PET soft drink bottles. The industry has awarded grants to perform research on developing new products made from recycled plastic and soft drink bottles. Today, all post-consumer PET plastic that is recovered is used to make new containers, fiberfill for sleeping bags and coats, fabric, carpets, auto parts, film and more. xxi An estimated 88% of plastic water bottles end up as garbage or litter. (Estimation from compilation of sources. xxii Landfilled water bottles can take up to 1,000 years to degrade. xxiii Due to their relative longevity and inert compositions, the bottles do not contribute to leachate or gaseous emissions from landfills. While roadside litter has many sources, many local bottlers are active in Adopt-a-Highway and similar beautification programs. Other Environmental Concerns The steps involved in producing bottled water include considerable energy and resource intensity; the effects of the pollution from producing bottled water, as with most consumer products, are borne by society as a whole. Compared to tap water, bottled water products of various sorts have far more impact when it comes to environmental indicators such as cumulative energy consumption, in terms of the petroleum or natural gas used as a feedstock in bottles or the power necessary to produce the bottles and fill them with water; greenhouse gas emissions from that stem from production and transportation; and other measures. Specialized mineral waters fair very poorly against tap water in these terms, but even municipal water that is filtered, bottled and transported to points of sale or use is 25 50 percent higher in terms of overall environmental impact. xxiv The Container Recycling Institute estimates that producing PET, which is a petroleum or natural gas product, for bottles used 18 million barrels of crude oil equivalents in 2005, producing 800 metric tons of carbon equivalent emissions. xxv Conclusion The data presented in this document offer a somewhat mixed message on the effects that bottle water products have on municipal solid waste streams. While relatively minor, in terms of the relative weight and quantities produced compared to other carbonated bottled beverages and the total amount of solid waste produced or recycled in this country, on their own, the numbers are striking in that they present a sense of how consumption oriented much of us are. Based on the outcome of the mayoral participants discussion during the May 1, 2008 meeting of the Mayors Water Council, along with the expertise of public works officials from several major cities, The U.S. Conference of Mayors will continue to explore the benefits of municipal water and the effects of bottled water on municipal waste. 6

IMPORTANCE OF MUNICIPAL WATER WHEREAS, the United States' municipal water systems are among the finest in the world; and WHEREAS, high quality, safe drinking water is already available at most public locations; and WHEREAS, mayors are responsible for delivering safe and affordable water to our citizens; and WHEREAS, local governments invest approximately $43 billion a year for pure drinking water and treating wastewater; and WHEREAS, US consumers spend more than $11 billion a year on bottled water; and WHEREAS, bottled water costs more than an equivalent volume of gasoline, equivalent to 1,000 to 10,000 times more than tap water; and WHEREAS, more than a quarter of bottled water is sourced from municipal tap water; and WHEREAS, bottled water must travel many miles from the source, resulting in the burning of massive amounts of fossil fuels, releasing CO2 and other pollution into the atmosphere; and WHEREAS, plastic water bottles are one of the fastest growing sources of municipal waste; and WHEREAS, in the U.S. the plastic bottles produced for water require 1.5 million barrels of oil per year, enough to generate electricity for 250,000 homes or fuel 100,000 cars for a year; and WHEREAS, we applaud The US Conference of Mayors for its National City Water Taste Test, which recognizes all of the great work municipal water systems do for its residents on a daily basis, year after year; and NOW, THEREFORE, BE IT RESOLVED that The US Conference of Mayors encourage a compilation of information regarding the importance of municipal water and the impact of bottled water on municipal waste. 7

i ABA Review of USCM Bottled Water Report 3/18/08. Prepared by Northbridge Environmental for the American Beverage Association, Washington, DC. ii Responsible Purchasing Network. Bottled Water: Social & Environmental. Retrieved 11/21/2007, http://www.responsiblepurchasing.org/purchasing_guides/bottled_water/social_environ/ iii International Bottled Water Association. 04/13/2006. Bottled Water: More than Just a Story about Sales Growth. Retrieved] 12/06/200, http://www.bottledwater.org/public/2006_releases/2006 04 13_bevmkt.htm Van Dusen, A. (04/30/2007). Forbes.com: Health in a Bottle? Retrieved 11/30/2007, http://www.forbes.com/health/2007/04/28/water health bottled forbeslife cx_avd_0430bottled.html iv U.S. Environmental Protection Agency. Analysis and Findings of The Gallup Organization s Drinking Water Customer Satisfaction Survey, August 6, 2003. http://www.awwa.org/files/advocacy/govtaff/documents/awwacommentsonlt2eswtrjan92004.pdf >also http://www.thinkoutsidethebottle.org/ v http://www.container recycling.org/mediafold/newsarticles/general/2007/5 24 IN HowYouCanLead.htm vi Fishman, C. 08/2007. Message in a Bottle. Retrieved 11/20/2007. http://www.fastcompany.com/magazine/117/features message in a bottle.html vii Jennifer Gitlitz and Pat Franklin, Container Recycling Institute, February 2007. Water, Water Everywhere: The growth of non carbonated beverages in the United States. http://www.container recycling.org/assets/pdfs/reports/2007 waterwater.pdf viii National Association for PET Container Resources (NAPCOR). Retrieved 01/22/07. http://www.napcor.com/whatispet.htm. ix Recycling Resource Guide for IBWA Members. Retrieved 01/22/08. http://www.bottledwater.org/public/05_ibwa_recycle_guide_1.pdf. x Franklin, Pat. 06/2006. Down the Drain Plastic Water Bottles Should No Longer be a Wasted Resource. Retrieved 11/21/2007. http://www.container recycling.org/mediafold/newsarticles/plastic/2006/5 WMW DownDrain.htm xi The Natural Resource Defense Council. 09/12/2007. Bottled Water. Retrieved] 11/21/2007, http://www.nrdc.org/water/drinking/qbw.asp#plastic Markey, E. 11/15/2007. Library of Congress: Bottle Recycling Climate Protection Act of 2007. Retrieved 11/21/2007, from http://thomas.loc.gov Llanos, M. 03/02/2005. Plastic Bottles Pile Up as Mountains of Waste. Retrieved 11/21/2007, from http://www.msnbc.msn.com/id/5279230/ Food and Water Watch. Bottled Water. Retrieved 11/21/2007, from http://www.foodandwaterwatch.org/water/bottled Scott, Megan. 07/16/2007. Bottled Water is Under Assault. Retrieved 12/03/2007, from, http://www.heraldtribune.com/article/20070717/features27/70716028/1024/features06 Fishman, C. 08/2007. Message in a Bottle. Retrieved 11/20/2007. http://www.fastcompany.com/magazine/117/features message in a bottle.html. xii Northbridge Environmental, 2008. 8

xiii 2006 REPORT ON POST CONSUMER PET CONTAINER RECYCLING ACTIVITY. National Association for PET Container Resources. http://www.napcor.com/pdf/2006pet_report.pdf xiv Franklin, Pat. 11/29/2006. PET Strategies 2006. Retrieved 11/21/2007, http://www.containerrecycling.org/assets/ppt/plastic/2006 11 PETStrategies.ppt xv Rosenwald, M. 11/26/2007. When Packaging Packs a Punch. Retrieved 11/26/2007, http://www.washingtonpost.com/wpdyn/content/article/2007/11/25/ar2007112501316.html?sid=st2007112501234 xvi http://www.cga.ct.gov/2006/rpt/2006-r-0518.htm Gigi Kellett & Corporate Accountability International. Think Outside the Bottle Campaign Environmental and Waste Impacts of Bottled Water (August 14, 2007) xvii http://www.uspirg.org/newsroom/more news/more news/adding water and gatorade to the bottle bill) xviii http://www.ameribev.org/industry issues/environment/deposits taxes/index.aspx xix The Coca Cola Company. 07/26/2007. The Coca Cola Company Releases Annual Environmental Report. Retrieved 12/06/2007. http://www.thecocacolacompany.com/presscenter/nr_20070726_corporate_environmental_report.html xx Ibid. xxi http://www.pepsico.com/pep_citizenship/sustainability/performenv/impacts/index.cfm xxii The Natural Resource Defense Council. 09/12/2007. Bottled Water. Retrieved 11/21/2007. http://www.nrdc.org/water/drinking/qbw.asp#plastic Markey, E. 11/15/2007. Library of Congress: Bottle Recycling Climate Protection Act of 2007. Retrieved 11/21/2007, http://thomas.loc.gov Llanos, M. 03/02/2005. Plastic Bottles Pile Up as Mountains of Waste. Retrieved 11/21/2007, http://www.msnbc.msn.com/id/5279230/. Food and Water Watch. Bottled Water. Retrieved 11/21/2007. http://www.foodandwaterwatch.org/water/bottled. Scott, Megan. 07/16/2007. Bottled Water is Under Assault. Retrieved 12/03/2007. http://www.heraldtribune.com/article/20070717/features27/70716028/1024/features06 xxiii Arnold, E. and Larsen, J. 02/02/2006. Bottled Water: Pouring Resources Down the Drain. Retrieved 11/19/2007. http://www.earth policy.org/updates/2006/update51.htm xxiv Jungbluth, Niels, 05/30/06. ESU Services. Comparison of the Environmental Impacts of Tap Water vs. Bottled Mineral Water. A lifecycle assessment provide by the International Bottled Water Association to The U.S. Conference of Mayors, March, 2008. xxv Jennifer Gitlitz and Pat Franklin, Container Recycling Institute 9