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The Honolulu Advertiser

Posted on: Thursday, March 10, 2005

Maui gas stations taking containers

By Christie Wilson
Advertiser Neighbor Island Editor

KAHULUI, Maui — A Maui service station owner is the first retailer in the state to set up certified redemption centers under the new bottle law.

The Aloha Shell redemption machine in Kahului offers Joshua Vaughan, an employee, a way to get a refund by recycling bottles.

Christie Wilson • The Honolulu Advertiser

Paul Hanada, operator of Aloha Shell Service and Ilima Shell in Kahului, installed reverse vending machines that accept empty containers and provide a receipt that can be redeemed for 5 cents per container at his service stations.

The machines began operating Tuesday and are available 24 hours a day — a major convenience for consumers since other redemption centers on the island have limited hours.

Department of Health spokeswoman Janice Okubo said no other retailers in Hawai'i have applied to become a certified redemption center, although some supermarkets on O'ahu are providing space for certified recycling companies to set up redemption operations.

The Sierra Club yesterday praised Hanada. The group has been critical of groceries and retailers for not participating in the redemption program.

"The many benefits of the bottle law — cleaner beaches, less landfill waste, more recycling — will increase with more convenient and accessible redemption centers," said Jeff Mikulina, director of the Sierra Club, Hawai'i Chapter. "We certainly hope other retailers and grocery stores statewide follow suit and participate in Hawai'i's recycling program."

Many retailers appear to be taking a wait-and-see approach, Okubo said. "We're encouraging retailers to get certified because we know that's what the public wants."

The process is relatively simple, Okubo said, with businesses required to provide a plan of operation, obtain tax clearance and submit to a site inspection.

Hanada installed one machine each at Aloha Shell, 110 S. Pu'unene Ave., and Ilima Shell, 137 Ka'ahumanu Ave. Leasing the machines was too expensive so he bought the pair for $25,000. Each machine accepts plastic, glass and aluminum containers; the ones in use elsewhere accept only one kind of container, so separate machines are needed.

"Everyone who comes in, they love it. It's really convenient," Hanada said.

He'll get money for taking the aluminum to a recycler, but not for the glass or plastic, so Hanada figures he'll break even on that end of the redemption deal. Any profit will come from the 3 cents per container he'll collect in handling fees, and additional gas and minimart purchases by those drawn to his businesses by the opportunity to redeem their bottles and cans, he said.

One way for consumers to look at it, Hanada said, is that for each container they bring in, they'll be getting a nickel off the price of a gallon of gas, which yesterday at Aloha Shell was $2.67 a gallon for the cheapest unleaded fuel.

He acknowledges there have been start-up hassles, including having to enter the UPC codes for each of the products brought in for redemption. This information is not provided by the state or beverage distributors, so Hanada has to program the machines, adding codes as unrecorded containers come in.

There is also government paperwork and servicing of the machines.

"For a small business owner, you have to have the right attitude because you have to deal with a lot of people," he said.

Hanada said one way to encourage more retailers to participate would be for the state to offer a tax credit for the purchase of bottle-redemption equipment.

The container recycling law, which took effect Jan. 1, does not require retailers to provide 5-cent refunds on glass, plastic, and aluminum bottles and cans, but stores can become certified redemption centers or contract with recyclers who are certified.

Okubo said schools and other nonprofit groups also can use the bottle law to raise money by partnering with recycling companies and providing redemption sites.

Reach Christie Wilson at cwilson@honoluluadvertiser.com or (808) 244-4880.