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California Carpet Stewardship Program: 2019 Assessment Increase


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This presentation gives background on the California Carpet Stewardship Program, the laws that govern the Program, and the implementation of the 2019 assessment increase. Emphasis on the products that incorporate post consumer recycled carpet material.

Published in: Environment
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California Carpet Stewardship Program: 2019 Assessment Increase

  1. 1. California Carpet Stewardship 2019 Assessment Adjustment November 8, 2018 Retailer Webinar
  2. 2. Dr. Bob Peoples CARE, Executive Director Jacy Bolden CARE, CA Program Director Welcome! Today’s Host: Nancy Roberts, Gigantic Idea Studio
  3. 3. Why Are We Here? Opening Remarks – Dr. Bob Peoples, CARE • Recent Carpet Recycling Challenges & Progress Program Overview, New Resources & Updates • What Has Changed? • Invoicing & Labeling Requirements • How Is The Money Being Collected? • How Are the Funds Being Used? Next Steps, Questions & Answers
  4. 4. Since 2002, Carpet America Recovery Effort (CARE) has served as the national resource for carpet recycling. CARE members have recycled more than 5 billion pounds of used carpet. Our mission: To advance market-based solutions that increase landfill diversion and recycling of post-consumer carpet (PCC), encourage design for recyclability and meet meaningful goals in support of our vision. About CARE
  5. 5. • California law AB 2398 passed in 2010 to increase landfill diversion and recycling of post-consumer carpet generated in California. • AB 1158 passed in 2017, added new requirements for 24% diversion by 2020, increasing recyclability of carpets, increase carpet reuse, reduce carpet to landfill, expand markets for • CARE serves as designated Carpet Stewardship Organization • As of January 1, 2019, this assessment will increase to $0.35 per square yard sold in California What are Carpet Stewardship Laws? California Carpet Stewardship Program
  6. 6. • 24% Recycling Rate by January 1, 2020 • Must expand collection convenience • Must fund enhanced subsidy payouts • Challenging market conditions • New incentives added to move hard- to-recycle materials: • PET, calcium carbonate, and now highest recyclable materials • Expansion of grants programs to support: • New and expanded capacity • New product testing and development • Drop off site equipment needs: rain covers, ramps, etc. Why the Increase in 2019? AB 1158 requires additional efforts to comply:
  7. 7. • Plan conditionally approved & grants released • Multiple new processors & products coming on-line • Oil back up to low $70’s • China’s National Sword & tariffs • PET recycler suspends operations until Q2 2019 Challenging Times – Making Progress What’s Changed
  8. 8. Macroeconomic Factors Source: Cushing, OK WTI Spot Price FOB Crude Oil in Dollars per Barrel Over Time
  9. 9. Program Trends 29% increase in recycling rate 2017 over 2016 Percent (%) collected and recycled
  10. 10. • As of January 1, 2019 manufacturers must add an assessment of $0.35/yd2 on the purchase price of ALL carpet sold in CA • Retailers must indicate the $0.35/yd2 assessment to consumers on the consumer invoice • Assessment must appear as an after-tax line item • Assessment must be visible on all invoices • Specific approved labels must be used Assessment Requirements in CA Applies to ALL carpet sold and/or shipped in CA
  11. 11. • Included: • All Carpet Sold and/or Shipped into California • Broadloom and Modular Carpet Tile • Commercial and Residential • Includes both Indoor and Outdoor Carpet • Excluded: • Rugs, Underlayment, Carpet Cushion • Synthetic Turf Assessment Requirements in California What is included?
  12. 12.  California Carpet Stewardship Assessment  CA Carpet Assessment  CA Carpet Stewardship Assessment  CA Crpt Stewardship Assessment  CA Crpt Stwdshp Asmt Assessment Requirements in California Must be clearly visible as a separate line item, and Must be accompanied by a brief description of the assessment or label approved by CalRecycle. Manufacturers/Retailers must use invoice labels approved by CalRecycle:
  13. 13. Sample Invoice Manufacturer
  14. 14. • A civil penalty may be imposed by California Department of Resources, Recycling and Recovery (CalRecycle) for anyone in violation of AB 2398: • $1,000 per day • $10,000 per day if violation is intentional, knowing, or negligent • Civil penalties may be imposed on any person who violates AB 2398 (i.e. manufacturer, distributor, importer, wholesaler, retailer) Penalties for Non-Compliance Assessment Requirements in California
  15. 15. Flow of Funds Funds make it easier to reuse, recycle, and develop new recycled products Carpet Manufacturer Adds Assessment to Retailer Invoice Manufacturer pays Carpet Stewardship Organization (CARE) Retailer Bills Customer Customer $0.35/yd2 January 1st $0.35/yd2 January 1st Collection Processing RecycledProducts GrantsProgram Education& Assistance CalRecycle Fees plus Program Administration
  16. 16. Collector/Sorters
  17. 17. Processors
  18. 18. Reliance Carpet Cushion Manufacturers
  19. 19. What Are the Funds Used For? 1) Provides subsidies to increase recycling opportunities by supporting processors and manufacturers. • Collector/Sorter Entrepreneurs (CSEs) support • Tier 1 Processors to convert materials to recycled output • Tier 2 Manufacturers to create new secondary products • Incentive for PC4 (post consumer carpet calcium carbonate) utilization, now 50% of waste stream • Carpet Tile reuse and recycling closed loop incentive • New industry-funded back-labeling for long-term recyclability
  20. 20. 2) Continues grants & incentives to drive market solutions* • Product testing grants for new recycled products • Infrastructure grants to accelerate capital improvements • Journey/Apprentice Installer grants & incentives* • Market development and product development technical assistance for sorters, processors and manufacturers *new in 2018 What Are the Funds Used For?
  21. 21. 3) Establishes new resources to increase program effectiveness* • 24% diversion by 1/1/20 = Increased subsidy and grant $ • Expansion of Public Collection Sites/Programs throughout CA • Expanded Retailer Education, Outreach and Support Services • New Staff, Program Monitoring, Economic Analysis Tools, Monthly Reporting* • Expanded Education/Outreach, and Support Services* • New Carpet Recycling Advisory Committee legislated* * added in 2018 What Are the Funds Used For?
  22. 22. Presentation to JPADrop-off Sites
  23. 23. Retailer Resources
  24. 24. Retailer Materials Retailer Resources
  25. 25. E-news & Updates
  26. 26. Updated Product Brochure Released in 2018 New Recycled Carpet Products
  27. 27. Upcoming  New Stewardship Plan implementation  New CARE Public Collection Sites 50+ and growing  New Grant Cycles  New products  New CA capacity  Retailer and Installer Education & Outreach ongoing
  28. 28. Questions?
  29. 29. Visit CARE Online: • Join our email list for Updates • Follow us on Twitter @CarpetRecycle • Email me: • Visit CalRecycle Online: Join Email List For More Information