The new bottle law deposit program would be fully implemented by Jan. 1, 2005.

Consumers would pay a nonrefundable 1-cent handling fee and a 5-cent deposit on each beverage container ­ plastic and glass bottles or aluminum cans ­ at the time of purchase. The deposit would be returned when the container is redeemed at a recycling center.

The handling fee will generate funds to cover recycling and administrative costs for the state Health Department, which would run the program.

"As stewards of this beautiful island state, we have a duty to protect our environment, which is our greatest resource," said Cayetano, who will sign the bill into law during a ceremony tomorrow. "This bill to create a beverage deposit and redemption program will help to reduce the amount of solid waste in Hawaii by encouraging people to recycle."

Jeff Mikulina, director of the Sierra Club of Hawaii, said the new law is "a tremendous victory for Hawaii's environment."

"It is truly landmark legislation that will change Hawaii's landscape," he said. "We commend Governor Cayetano and his administration for their leadership on this legislation to improve the environment we all share."

The bottle bill received heavy opposition from businesses and Republicans, including gubernatorial candidate Linda Lingle, who called it another tax on consumers.

Lingle has said the bottle bill does nothing to create a market for recyclable products and without it "all you have is separated garbage."

Another measure Cayetano said he will sign into law is a bill authorizing the Department of Land and Natural Resources to develop or contract with private entities to produce environmentally themed products ­ stamps, coins, credit cards ­ to increase revenues in the Endangered Species Trust Fund.