Biodegradable Cups:

For years paper cups have been used for all types of applications and serving scenarios, but what most people don’t realize is that while these cups are mostly made of paper, many are not recyclable or compostable. This is due to the fact that the inner surface of the cups are lined with a petroleum base plastic to prevent leaking. This is especially prevalent in hot water cups (used for coffee, hot chocolate, tea, etc.) Thanks to the continued development of bioplastic, there is now a solution to this problem and biodegradable cups are not being produced that are lined with a corn based plastic that fully compostable.
In addition to using corn based plastics, biodegradable cups are also made from bagasse (sugar cane fiber) like many dishes are.

For more information on biodegradable cups and where to buy visit these sites:
http://www.groovygreen.com/groove/?p=1534
http://www.treehugger.com/files/2005/03/biodegradable_c.php
www.ecoproducts.com
www.customcupstore.com
www.ecowise.com
www.biosmart.com
cornplastic.kelseypromo.com