U.S. Senator Jim Jeffords, I-Vt., today introduced the Recycling Investment Saves Energy (RISE) Act of 2006, which offers tax incentives that will create jobs, conserve energy and expand America’s recycling capacity.
The bill, cosponsored by Sen. Tom Carper, D-Del., Co- Chair of the Senate Recycling Caucus, aims to reverse the declining trend in recycling rates, and the resulting energy loss, by providing incentives for greater collection, distribution and recycling of quality recyclable materials.
The RISE Act will help companies overcome financial barriers to recycling by providing them with tax incentives to help offset the high cost of machinery used to collect, distribute, or recycle material. These tax incentives, which include a 15% tax credit or a 50% depreciation deduction for the purchase of machinery, will allow companies to acquire state-of-the-art recycling equipment and innovative technology. Additionally, the legislation will allow recycling facilities to be eligible for tax-exempt bond financing.
“This bill will help capture the significant energy savings available through greater recycling,” said Jeffords, the ranking member of the Senate Environment and Public Works Committee. “The RISE Act will also advance environmental goals, including lessening the need for new landfills and reducing greenhouse gas emissions.”
In 2004, 55 billion aluminum cans were wasted by not being recycled, which represents approximately $1 billion of aluminum lost. The recycling rate of paper is estimated to be roughly 51%, glass containers 35%, and plastic bottles less than 20%. Increasing the recycling rate of these and other commodities by 10% would save enough energy annually to heat 74,350 million American homes, provide the required electricity for 2.5 million Americans, and save about $771 million in avoided costs for barrels of crude oil.
A broad coalition of over 35 industry, governmental, and environmental organizations support the RISE Act, including the National Recycling Coalition, Inc., US Conference of Mayors/Municipal Waste Management Association, National Solid Wastes Management Association, Glass Packaging Institute, Institute of Scrap Recycling Industries, Inc., American Beverage Association.