Every soda, beer, tea, and bottled water sold in Hawaii carries an extra 6 cents at the register: a 5-cent refundable deposit and a 1-cent non-refundable container fee. The system is known as HI-5, and it is codified under Hawaii Revised Statutes chapter 342G, Part VIII. For households moving from the mainland, HI-5 is one of the first quirks of retail life they encounter, usually the moment the first grocery receipt lists “HI 5 DEP” on multiple lines.
The program is administered by the Department of Health (DOH) through its Office of Solid Waste Management. It requires distributors to collect the deposit at wholesale, retailers to pass it through at the point of sale, and certified redemption centers to refund the 5 cents when a consumer returns an eligible container. The 1-cent container fee is not refundable — it funds the operating overhead of the program and the payments the state makes to redemption centers.
This article walks through the mechanics: which containers qualify, how the deposit and fee are collected, the two accepted redemption methods, the handling fees paid to redemption centers, the location of certified drop-off sites on each island, and where unredeemed deposits ultimately land inside the Environmental Management Special Fund. All figures are drawn from DOH filings, state statute, and state population data at census.gov/quickfacts/HI.
How the HI-5 program is structured under HRS 342G
HRS 342G Part VIII was enacted in 2002, with the container fee taking effect in October of that year and the deposit and redemption components launching in January 2005. The statute defines a deposit beverage container as a sealed bottle, can, jar, or carton containing 68 fluid ounces or less of an eligible beverage. Distributors pay both the deposit and the fee to the state; retailers reimburse the distributor by folding those pennies into the shelf price.
Under HRS 342G-102, the 5-cent deposit is refundable to any consumer who returns a redeemable container to a certified center. The 1-cent fee, by contrast, is a permanent cost. It supports payments to redemption centers, education campaigns, DOH staffing, and the transport of collected materials to recycling markets — often shipped from Honolulu to the mainland or Asia by ocean carriers such as Matson.
The three-party flow: distributor, retailer, redeemer
Money moves through three parties. First, a distributor importing 12-ounce aluminum cans from a mainland brewery pays 6 cents per can to DOH — 5 cents deposit, 1 cent fee. Second, the local retailer pays the distributor the same 6 cents when it stocks the shelf. Third, the customer pays 6 cents on top of the beverage price at checkout. Only the 5-cent deposit can come back.
The container fee is designed to remain constant, but HRS 342G-104 allows DOH to adjust the fee upward when the special fund balance falls below a set floor or downward when it exceeds a ceiling. That mechanism keeps the fund solvent without forcing legislators to reauthorize a new fee each session. Detailed program financials are posted through the DOH solid waste branch and reported to the legislature each year.
Which beverages and containers qualify
The statute is narrow in scope. Eligible beverages include beer and other malt drinks, mixed spirits, mixed wine, soft drinks, carbonated water, non-carbonated water, tea, coffee, and non-alcoholic drinks intended for human consumption. Containers must be sealed and hold 68 fluid ounces or less. Material types accepted are aluminum, glass, and plastic — the plastics being polyethylene terephthalate (PET, resin code 1) and high-density polyethylene (HDPE, resin code 2).
Ineligible containers include milk cartons, dairy substitutes such as soy or almond milk, wine bottles above the 68-ounce limit, hard liquor bottles, and any package that lacks the “HI 5¢” stamp molded, printed, or labeled on the container. Distilled spirits sold in glass bottles are excluded even though the glass is otherwise recyclable through curbside programs in Honolulu and parts of Maui.
The HI-5 stamp requirement
Every deposit-bearing container must display the HI-5 mark. This is why a Coca-Cola can bought in Los Angeles will not earn a nickel at a Hilo redemption center: the can bears a CA CRV stamp instead. Distributors are responsible for ensuring proper labeling before product enters the state, and DOH inspectors periodically audit shelves. Retailers who stock unmarked containers can face administrative penalties under HRS 342G-114.
Eligibility at a glance
| Container | Deposit collected | HI-5 redeemable |
|---|---|---|
| 12 oz aluminum soda can | 5¢ + 1¢ fee | Yes |
| 16.9 oz PET water bottle | 5¢ + 1¢ fee | Yes |
| 22 oz glass beer bottle | 5¢ + 1¢ fee | Yes |
| 1 gallon milk jug (128 oz) | None | No |
| 750 mL wine bottle | None | No |
| 32 oz sports drink (PET) | 5¢ + 1¢ fee | Yes |
| Boxed juice pouch, 6 oz | 5¢ + 1¢ fee | Yes |
| Almond milk carton, 64 oz | None | No |
How redemption actually works at the counter
Certified redemption centers use two accepted methods. The first is hand count, where an operator (or an automated reverse-vending machine) counts each container individually and pays 5 cents apiece. Hand count is the only method allowed for loads of 200 containers or fewer, per DOH administrative rule. It is also the method that yields the highest per-container return when a household has a modest bag of cans.
The second method is weight-based redemption. Loads larger than 200 containers may be weighed rather than counted. The state publishes standardized conversion factors: aluminum is redeemed at roughly $1.60 to $1.80 per pound depending on the current DOH-set rate, which corresponds to about 32 cans per pound. Glass and plastic have their own per-pound rates. Weight-based drop-off saves time for large loads but rounds against the customer at the margin.
Reverse-vending machines vs. staffed counters
Reverse-vending machines (RVMs) are common at large retailers on Oahu and Maui. A customer inserts cans and bottles one at a time; the RVM issues a voucher that can be redeemed for cash at the retailer’s service counter. RVMs are faster for small loads but reject any container without a scannable HI-5 barcode. Damaged or crushed containers are also rejected, which sends a portion of eligible material back to the trash.
Staffed counters, run by contractors under DOH certification, still handle the bulk of higher-volume redemption on the Big Island, Kauai, Molokai, and Lanai. Operators weigh loads, count exceptions by hand, and pay in cash or check depending on the amount. Redemption centers must post their hours, deposit rate, and any per-visit maximums where the public can see them, under the DOH-issued certification agreement.
Certified redemption center locations by island
The list of certified redemption centers shifts month to month as contracts expire and new operators sign on. The DOH publishes a current directory searchable by ZIP code. As of recent DOH reporting, Oahu carries roughly 60 active sites, the Big Island around 25, Maui about 15, Kauai roughly 10, and Molokai and Lanai each have one to two. The distribution reflects population, but even remote regions are required to have at least one accessible location.
| Island | Approximate certified sites | Population served | Sites per 10,000 residents |
|---|---|---|---|
| Oahu | 60 | ~1,000,000 | 0.60 |
| Hawaii (Big Island) | 25 | ~205,000 | 1.22 |
| Maui | 15 | ~165,000 | 0.91 |
| Kauai | 10 | ~73,000 | 1.37 |
| Molokai | 2 | ~7,300 | 2.74 |
| Lanai | 1 | ~3,100 | 3.23 |
Oahu redemption footprint
Oahu redemption sites cluster along the H-1 corridor and Windward coast, with heavy density near Pearl City, Waipahu, and Kapolei where major grocers operate. Reynolds Recycling, RRR Recycling, and several independent contractors run the largest networks. Honolulu residents rarely drive more than 6 miles to reach a center, though wait times at high-traffic sites on Saturday mornings can stretch past 45 minutes.
Neighbor island coverage
On the Big Island, sites are anchored in Hilo, Kailua-Kona, Waimea, and Pahoa, with mobile collection events run periodically in Ka’u and Puna. Maui centers concentrate in Kahului, Wailuku, Kihei, and Lahaina. Kauai runs sites in Lihue, Kapaa, Hanapepe, and Kilauea. Neighbor island residents planning routine returns should compare drives against the practical realities of inter-island logistics and the broader tradeoffs of moving to Oahu vs the neighbor islands.
The container handling fee paid to redemption centers
Redemption centers do not earn revenue from the 5-cent deposit itself — that money flows straight through to consumers. Their compensation comes from a container handling fee paid by DOH out of the special fund. The fee is set by rule and adjusted based on the market value of scrap aluminum, glass, and plastic. When scrap prices fall, the handling fee rises so centers can stay solvent; when scrap prices climb, the handling fee compresses.
Handling fees are calculated separately for each material. Aluminum, which carries a high scrap value, historically earns the lowest handling fee — roughly 1.5 to 2 cents per container. Glass, which is heavy and low-value in Hawaii’s export market, earns the highest — 4 to 5 cents per container in some recent quarters. Plastic sits between, at roughly 3 cents per container. These rates fluctuate quarterly under HRS 342G-104.5.
Recent handling fee structure by material
| Material | Typical handling fee | Approx. scrap value per lb | Containers per lb |
|---|---|---|---|
| Aluminum | 1.5–2.0¢ per container | $0.60–$0.90 | ~32 |
| PET plastic (#1) | 2.5–3.5¢ per container | $0.15–$0.25 | ~19 |
| HDPE plastic (#2) | 2.5–3.5¢ per container | $0.20–$0.40 | ~14 |
| Clear glass | 3.5–5.0¢ per container | Negative net | ~2 |
| Colored glass | 4.0–5.5¢ per container | Negative net | ~2 |
Why the fee shifts with scrap markets
Aluminum bales shipped from Honolulu Harbor to west-coast smelters have historically fetched $1,200 to $1,900 per ton depending on London Metal Exchange spot prices. When those prices decline, centers cannot offset operating costs — rent, labor, freight to the mainland — through the sale of scrap alone. The DOH handling fee is the shock absorber. It rises during scrap slumps and falls when markets recover, keeping certified center operators from closing during downturns.
Glass is the problem material. There is no in-state glass smelter, so cullet must either be crushed for use as road base or shipped 2,500 miles to processors on the mainland at freight costs that exceed the scrap value. The handling fee for glass therefore reflects an outright subsidy — DOH is paying centers to accept material that will never earn its transport cost back.
Where unredeemed deposits go: the Environmental Management Special Fund
Not every deposit gets redeemed. Roughly 30 to 40 percent of containers sold each year are never returned — they are exported, thrown away, buried at HPOWER, or kept as curbside recycling in Honolulu’s blue bins. Those unredeemed nickels do not disappear. Under HRS 342G-104, they flow into the Environmental Management Special Fund administered by DOH.
The special fund covers three main categories of spending: (1) handling fees paid to certified redemption centers, (2) DOH administrative costs including inspectors and audit staff, and (3) public education campaigns that promote correct sorting. Surplus balances, when they occur, can be redirected by the legislature to broader solid waste programs. Related environmental appropriations, such as those tied to the Oahu cesspool conversion mandate, sometimes draw on adjacent DOH funds.
How much money is at stake
Hawaii distributors sell roughly 900 million deposit-bearing containers per year. At 6 cents each, that generates about $54 million in gross fees and deposits annually. With redemption running near 66 percent, about $30 million comes back to consumers as refunds. The remaining $9 million in unredeemed deposits plus $9 million in container fees — roughly $18 million per year — flows into the special fund to cover handling fees and program overhead.
Program financials are published in DOH’s annual solid waste report and covered in local outlets such as Civil Beat and the Honolulu Star-Advertiser when the fund balance triggers a fee adjustment. Households wanting to see the mechanics can also review DOH deposit beverage container reporting posted at health.hawaii.gov.
Redemption rates and program performance
HI-5 launched in January 2005 with a 68 percent redemption rate in its first full year. Rates climbed steadily, peaking near 79 percent around 2013. Since then, participation has drifted lower. Recent DOH filings show redemption at roughly 65 to 67 percent, well below the peak but still above bottle-bill states such as Massachusetts. The decline coincides with retail store closures, hurricane-related disruptions, and the pandemic pause that shuttered some centers in 2020.
Redemption rates vary by material. Aluminum leads at approximately 74 percent, reflecting its high per-pound payout and the ease of scrap collection. Plastic sits near 62 percent. Glass lags at roughly 58 percent — largely because glass is heavy, low-value, and inconvenient to haul from home to redemption center. Households on the neighbor islands redeem at slightly lower rates than Oahu households, a gap of about 4 percentage points in recent DOH data.
Why some containers never come back
Several patterns explain the missing third of containers. Tourists drink beverages, leave the state, and take the deposit with them — an estimated 8 to 10 million containers per year vanish through this channel alone, concentrated during peak-season windows described in reviews of the best time to visit each Hawaiian island. Curbside recyclers in Honolulu who toss cans into the blue bin forfeit the nickel. Damaged containers in rubbish trucks disqualify still more.
Practical mechanics for households new to the state
For mainland relocaters — especially those coming from non-deposit states like Texas, Florida, Georgia, or North Carolina — HI-5 introduces a new routine. The first shopping trip usually surfaces a receipt with 15 to 40 extra cents in “HI 5 DEP” charges, depending on the beverage mix. A household of four buying a case of water plus a 12-pack of soda per week adds roughly $1.20 to $1.80 in weekly deposits.
Storage is the practical challenge. Empty cans and bottles need a dry, covered place — a garage shelf, a lanai bin, or a labeled bag under the kitchen sink. Rats and roaches are attracted to residue, so rinsing before storage is standard practice. Families that treat HI-5 as a monthly errand rather than a weekly one accumulate loads of 200 to 400 containers, worth $10 to $20 per trip.
Weekly household deposit math
- Case of 24 water bottles: $1.20 in deposit plus 24¢ in fees, totaling $1.44 extra.
- 12-pack of soda cans: 60¢ in deposit plus 12¢ in fees, totaling 72¢ extra.
- Six-pack of glass beer bottles: 30¢ deposit plus 6¢ in fees, totaling 36¢ extra.
- Gallon jug of tea (128 oz): not covered — exceeds the 68-oz cap.
- Boxed juice pouches, ten 6-oz cartons: 50¢ deposit, 10¢ fees, 60¢ extra.
Redemption habits often correlate with household organization. Those who set aside a 15-minute window every four to six weeks recover close to 100 percent of the deposits they pay. Those who bag cans and forget them for a year lose an estimated $80 to $150 annually in surrendered nickels. Small routines like this can also help reduce the psychological pull of island fever by giving residents a monthly errand cadence.
How HI-5 fits into the broader grocery bill
HI-5 deposits are a small but visible line on a Hawaii grocery receipt. They come on top of the state’s 4.712 percent general excise tax and the well-documented markup on shelf prices at island grocers. Households benchmarking spending should read the deposit charges alongside the wider picture in a review of grocery pricing by island or a comparison of Costco stocks.
Comparing HI-5 to mainland deposit programs
Only ten U.S. states operate deposit programs. Hawaii’s 5-cent rate matches California, Connecticut, Iowa, Massachusetts, New York, and Vermont. Michigan sits at 10 cents. Oregon jumped from 5 cents to 10 cents in 2017 after its redemption rate stagnated. Maine covers a wider range of beverages, including wine and liquor. Hawaii’s program is narrower on scope but stronger on enforcement, thanks to the DOH inspection program funded through the container fee.
Hawaii’s redemption rate historically lands in the middle of the pack. Michigan leads at roughly 89 percent, driven by its 10-cent deposit. Oregon has climbed above 80 percent since its rate hike. California, sharing Hawaii’s 5-cent structure, redeems at roughly 68 to 71 percent. Vermont and Massachusetts have slipped to 40 to 50 percent. Hawaii’s 65 to 67 percent range is respectable, but a legislated jump to 10 cents would likely lift it further.
Freight and the island premium
Hawaii’s HI-5 has a cost profile no mainland state faces: every ton of recovered material must either be reprocessed locally or shipped by ocean carrier. Aluminum bales, PET flakes, and HDPE pellets travel by container ship — Matson and Pasha Hawaii operate the primary Jones Act service — at freight costs that can consume 20 to 30 percent of scrap revenue. That structural handicap is what forces the handling fee higher than any mainland analog.
Enforcement, audits, and consumer disputes
DOH runs a compliance program under HRS 342G-119. Distributors file monthly reports of containers sold; redemption centers file monthly reports of containers redeemed. Inspectors audit shelves for improperly labeled products, weigh loads at random redemption events, and investigate consumer complaints. Civil penalties for distributor non-compliance can reach $10,000 per violation, and centers found short-changing customers on hand-count can lose certification.
Consumers who believe a redemption center undercounted or underweighed can file a written complaint with DOH’s Office of Solid Waste Management. The office investigates within 60 days and, when warranted, orders the center to make the consumer whole. Cases involving certification revocation are heard through Hawaii’s administrative appeals process, which mirrors the framework used in other state programs including DOE special education due process.
Retailer obligations
- Retailers must accept containers if they operate within a designated redemption-desert zone under DOH rule.
- Shelf pricing must display the deposit as a separate line, not embedded in the sticker price.
- Retailers cannot refuse to sell HI-5 beverages without collecting the deposit and fee.
- Reverse-vending machines require quarterly maintenance certification filed with DOH.
- Any receipt printed at checkout must break out the deposit and fee explicitly.
Frequently asked questions
Does Hawaii refund both the 5-cent deposit and the 1-cent container fee?
No. Only the 5-cent deposit is refundable. The 1-cent container fee is retained by the state to cover handling fees paid to certified redemption centers, DOH administrative costs, and public education campaigns. A consumer redeeming 100 aluminum cans earns $5.00 back, not $6.00. That structure is codified under HRS 342G-102 and has not changed since program launch in 2005.
What happens if a container is crushed before redemption?
Reverse-vending machines will reject a crushed or damaged container because they cannot scan the barcode. Staffed hand-count centers can accept lightly damaged containers as long as the HI-5 stamp is legible and the material type is identifiable. Severely crushed cans may still redeem by weight if the load exceeds 200 containers. Loose caps, punctures, and dented aluminum generally still pass hand count.
Can visitors redeem containers, or only Hawaii residents?
Any person can redeem containers regardless of residency. Certified redemption centers do not check IDs, and the statute does not tie eligibility to residency. Visitors staying in short-term rentals commonly leave empties for cleaners, who redeem them as gratuity. Tourists who fly out without redeeming forfeit the deposit — that forfeited money flows into the Environmental Management Special Fund and is a major reason the fund runs a surplus most years.
Is there a limit on how many containers a person can redeem in one visit?
DOH rule does not cap per-visit redemption, but individual centers may impose their own load limits due to storage constraints. A common cap at Oahu centers is 2,500 containers per visit — enough to hold a case of aluminum, a case of glass, and a case of plastic. Anything larger typically requires a scheduled appointment. Weight-based drop-off must exceed 200 containers to be eligible.
Do curbside recycling programs on Oahu pay out the HI-5 deposit?
No. Honolulu’s curbside blue bin program accepts aluminum, glass, and plastic bottles but does not refund the deposit. Any HI-5 container placed in the blue bin is a forfeited nickel. The city collects the materials, sells them to processors, and keeps the revenue to offset collection costs. Households wanting the deposit back must sort HI-5 containers out of the curbside stream and carry them to a certified redemption center.
How does DOH adjust the container fee and handling fees over time?
Under HRS 342G-104 and HRS 342G-104.5, DOH monitors the Environmental Management Special Fund balance quarterly. If the balance dips below a statutory floor, the container fee can be raised from 1 cent to 1.5 cents. Handling fees are recalculated at least once per calendar year based on prevailing scrap prices reported to DOH by certified centers. Adjustments are published in the state register and posted at the DOH solid waste branch website.
What should new residents do with cans and bottles during the first few weeks?
New arrivals often accumulate weeks of containers before locating a redemption site. The simplest approach is to stack empties in a dry bin in the garage, rinse each container to prevent pests, and search the DOH online directory once the load reaches 200 to 300 pieces. Redeeming smaller loads is not worth the drive; redeeming loads above 500 is often subject to appointment scheduling at neighbor island centers.
