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CARE CA Program Q1 2020 Report

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Statistics on Carpet Recycling in California during Q1 2020

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CARE CA Program Q1 2020 Report

  1. 1. CARE Sustainable Funding Oversight Committee Q1 2020 California Summary & Recommendations for Approval Updated 05/20/2020
  2. 2. 2 Agenda  Quarterly Overview of Results  Manufacturers Report  Quarterly Subsidy and Expense Payouts  Drop-off Program Update  Approval Requests  Other Information (as required)
  3. 3. 3 CARE’s Executive Director’s Message CARE opened 2020 with momentum and great anticipation for expending recycled output, new capacity coming on line and new market opportunities. Unfortunately, such was not to be the case. Early on it became clear sales were going to be weaker than budgeted (-9%) which means the flow of used carpet to recyclers would be more difficult to secure. Sales set yet another low point in a continuing downward trend. Coupled with on-going permit delays and the failure of PG&E once again to deliver on promises to supply power to a new recycling facility, recycled output was down vs Q4. It should be noted that the Covid-19 pandemic impact began to manifest in March, thus most of the quarter did not see the full impact. As a result, the recycling rate for Q1 took a step back to 19.9% - actually much better than originally anticipated given the slow start to 2020. Given the slowdown in sales and recycled output, the fund balance grew by $0.9M. CARE issued a 10 point Action Plan at the end of Q1 in an effort to support recyclers. Feedback has been very positive to those moves and much appreciated by the community. Looking forward, the full impact of Covid-19 will be felt in Q2. As a result, efforts in Q2 will focus on continued support for recyclers and key stakeholders as they work to rebuild their capacity and move product. All stakeholders are encouraged to go to the CARE website, click on the CA tab and sign up for the monthly news letter to stay abreast of the latest developments. https://carpetrecovery.org/ Bob Peoples, Ph.D., Executive Director, May 19, 2020
  4. 4. 4 AB 2398 Summary Results
  5. 5. 5 AB 2398 Performance Trends (millions of pounds) *Average: 2011 is average of Q3 & Q4; 2012-2017 is 4 quarter average
  6. 6. 6 AB 2398 Performance Trends (percentage) *Average: 2011 is average of Q3 & Q4; 2012-2017 is 4 quarter average
  7. 7. 7 Gross Collected PCC Sent Back to Landfill** Q1-2020 Gross Collected: 20.2M pounds – 3.2M sent to landfill Cumulative to landfill: 176.0M lbs. *Average: 2011 is average of Q3 & Q4; 2012-2017 is 4 quarter average **Percentages shown is % of Gross Collected PCC actually sent to landfill as PCC or process waste. Data above includes CSE and Processor landfilled pounds beginning in Q2 2014.
  8. 8. 8 Disposal % Change in Disposal: -3.9%
  9. 9. 9 Calcium Carbonate (PC4) by Quarter
  10. 10. 10 AB 2398 Manufacturers/Mills Quarterly Summary Report
  11. 11. 11 AB 2398 Mills’ Summary Cumulative SQYD sold: 813.0M Cumulative Remittances: $120.9M
  12. 12. 12 Sales by Quarter Q1 2020 is a 7% drop vs. Q4 2019 and a 9% drop vs. Q1 2019
  13. 13. 13 AB 2398 Quarterly Subsidy and Expense Payouts
  14. 14. 14 Summary of Payouts Q1 2020 1 2 3 4 Note: CSE payments include an additional 2 cents/lb. initiated March 1 under 90-day Action Plan
  15. 15. 15 Summary of Expenses All data from Melanie confirmed 05/15/2020
  16. 16. 16 Payouts Over Time Adjusted Target Q3 2014 Launch Tier 2 Growth Bonus Q2 2015 Launch Retroactive subsidy in Q3 2015 Growth Bonuses Eliminated Q1 2017 Tier 2 N6 Subsidy Q4 2017 Tier 2 N6,6 Subsidy Q1 2019 *Average: 2014-2018 is 4 quarter average
  17. 17. 17 Fund Balance Trends Based on unaudited numbers – adjustments may be made after audit closes ACCRUAL BASIS Reserve = 2 month average of the last quarter total expenses (effective Q1-2019) All data from Melanie 05/15/120
  18. 18. 18 CA Employees (FTEs*) * Fulltime equivalent employees
  19. 19. 19 Drop-Off Site Program Update Q1 2020
  20. 20. 20 Drop-Off Site Total Program Costs
  21. 21. 21 Annual Cost Comparison  Hauling: 47% of Q1 2020 Total Program Cost  Storage: 22% of Q1 2020 Total Program Cost  Recycling Fees*: 31% of Q1 2020 Total Program Cost *”Recycling Fees” was referred to as “Tipping Fees” in previous slide decks
  22. 22. 22 Material Collected by CARE Drop-Off Sites (Annual)  2020 lbs collected YTD: 25% of total 2019 lbs collected  Q1 2020 lbs collected: 38% increase over Q1 2019 lbs collected; 95% increase over Q1 2018 lbs collected
  23. 23. 23 Drop-Off Site Program Summary  77 operational CARE Drop-Off Sites in 51 CA counties by end of Q1  168 operational private sites reported at the end of Q1 *Cost/Capita uses updated Census information as available
  24. 24. 24 Recommendations to SFOC
  25. 25. 25 Recommendations for SFOC Approval
  26. 26. End of Review

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