- Q3 2020 saw an increase in carpet recycling rates to 20.5% as residential sales rebounded with more homeowners investing in their properties, though commercial sales remained challenging. - Total subsidy payouts for Q3 2020 were $5.3 million, with $2.2 million to processors, $2 million to manufacturers, and $684,000 to CSEs. - The report recommends the Sustainable Funding Oversight Committee approve a total of $6.8 million in payouts and costs for Q3 2020.

1. CARE Sustainable Funding
Oversight Committee
Q3 2020 California Summary &
Recommendations for Approval
Updated 11/20/20

2. 2
Agenda
 Quarterly Overview of Results
 Manufacturers Report
 Quarterly Subsidy and Expense Payouts
 Drop-off Program Update
 Approval Request

3. 3
CARE’s Executive Director’s Message
Good news, Q3 has exhibited the anticipated rebound with the overall Recycling Rate back up at 20.5%! Sales
of new carpet, while up vs Q2 were still well below budgeted level. Residential sales rebounded strongly as
homeowners invested in their properties in lieu of vacations. However, the commercial sector looks more
challenging given the shift to work from home.
The Covid Action Plan has been extended through the end of 2020 due to market dynamics and especially the
dramatic increase in transportation costs. Feedback based on these actions helped avert a cashflow crisis and
ensure no loss of processing capacity in the state. These aggressive and timely actions were well received and
avoided shutdowns or worse.
More good news: We can now report the Aquafil Woodland site has finally received power after more than a 16-
month delay. This added capacity will position Aquafil nicely for growth in 2021.
CARE submitted its 2019 Annual Report to CalRecycle as required on September 1st. The Request for Approval
(RFA) process has been delayed until the December hearing scheduled for December 15th.
All stakeholders are encouraged to go to the CARE website, click on the CA tab and get signed up for the
monthly e-news letter to stay abreast of the latest developments. www.carpetrecovery.org
Bob Peoples, Ph.D., Executive Director, November 17, 2020

4. 4
AB 2398 Summary Results

5. 5
Quarterly Overview of Results

6. 6
AB 2398 Performance Trends (millions of pounds)
*Average: 2011 is average of Q3 & Q4; 2012-2018 is 4 quarter average

7. 7
AB 2398 Performance Trends (percentage)
*Average: 2011 is average of Q3 & Q4; 2012-2017 is 4 quarter average

8. 8
Gross Collected PCC Sent Back to Landfill**
*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.
Q3-2020 Gross Collected: 21.8M pounds – 2.4M sent to landfill
Cumulative to landfill: 180.6M lbs.

9. 9
Disposal
% Change in Disposal: +26.9%

10. 10
Calcium Carbonate (PC4) by Quarter

11. 11
AB 2398 Manufacturers/Mills
Quarterly Summary Report

12. 12
AB 2398 Mills’ Summary
Cumulative SQYD sold: 845.9M
Cumulative Remittances: $132.4M
2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
# Mills Registered 78 75 76 71 71 73 74 77 76 77 79
# Mills Not Reporting 0 0 3 2 1 0 2 3 3 2 4
Non-response Rate 0% 0% 4% 3% 1% 0% 3% 4% 4% 3% 5%
Remittance Collected
Total Sq Yd Sold (millions) 96.9 94.1 90.4 86.0 18.8 21.7 21.8 18.3 17.1 14.4 18.4
Total Remittances ($M) 8.60$ 16.60$ 22.72$ 21.51$ 6.55$ 7.60$ 7.63$ 6.40$ 5.97$ 5.04$ 6.45$
Top 10 Remittances (>$10K) 7.86$ 15.21$ 20.93$ 20.24$ 6.12$ 7.13$ 7.25$ 6.01$ 5.62$ 4.81$ 6.15$
Top 10 % of Total (Avg) 91% 91% 92% 94% 94% 94% 95% 94% 94% 95% 95%
Mills - With Yearly Roll-up

13. 13
Sales by Quarter

14. 14
AB 2398
Quarterly Subsidy and Expense
Payouts

15. 15
Summary of Payouts Q3 2020
1
2
3
4
* All CSE pounds are now consolidated directly in CSE section.
Previously Processors who also collected were reported separately.
5
CSEs
CSE Reporting Incentive 12,000$
Tile Recycling or REUSE PILOT 32,604$
Tile REUSE 19,354$
Broadloom REUSE 360$
Total Reuse Payout 19,715$
620,198$
Adjustments -$
Total CSE Payouts 684,516$
Broadloom Shipped and Sold
Processors
Tile RECYCLED 23,503$
Type 1 Standard Payout 1,263,893$
Highest Recyclability: Nylon 279,068$
Total Type 1 Payout 1,566,464$
Type 2 Filler/Other -$
PC4 (Calcium Carbonate) 601,197$
Total Type 2 Payout 601,197$
Adjustments -$
Total All Processor Payouts 2,167,661$
Manufacturers
Non-Nylon Payouts 1,228,467$
Nylon 6 Payouts 728,792$
Nylon 6,6 Payouts 41,725$
Adjustments -$
Total All Manufacturers Payouts 1,998,983$
COVID-19 Special Payout
COVID-19 Special Payout 421,814$
Subsidy Payouts
Total Subsidy Payouts for Quarter 5,272,975$

16. 16
Summary of Expenses
All data from Melanie confirmed 11/13/2020
Expenses
Base Subsidy Payouts
COVID-19 Special Payout
Total Subsidy Payouts for Quarter
Advisory Committee
Education and Outreach
Collections Program
Grants
Technical Assistance
Program Expenses Sub-total
CalRecycle
CARE Administrations Cost
Direct Expenses
Direct Support
Accounting and Legal
Admin Expenses Sub-total
Program & Admin Expenses Total
Total
Grand Total Expenses
2%
6%
2%
1%
1%
8%
100%
53,885$
91,994$
4,851,161$
262,681$
170,415$
143,796$
Percentage
421,814$
Q3 2020
5,272,975$ 77%
399,885$
0%
3%
14%
574,651$
0%22,212$
1,540,486$
6,813,461$
23%
4%262,764$
71%
965,835$
4%
131,354$
6%
1,500$

17. 17
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
*Average: 2014-2018 is 4 quarter average
**Note: Q2 and Q3 2020 do not reflect COVID-19 Special Payouts
Tier 2 N6
Subsidy
Q4 2017
Tier 2
N6,6
Subsidy
Q1 2019
Covid
Q 2,3,4

18. 18
Fund Balance Trends
All data from Melanie 08/14/20
Reserve = 2 month average of the last quarter total expenses (effective Q1-2019)
ACCRUAL BASIS
Based on unaudited numbers – adjustments may be made after audit closes
SPC: Note reserve change consistent with approved Plan

19. 19
CA Employees (FTEs*)
* Fulltime equivalent employees

20. 20
Drop-Off Site Program Update
Q3 2020

21. 21
Drop-Off Site Total Program Costs

22. 22
Annual Cost Comparison
 Hauling: 48% of Q3 2020 Total Program Cost
 Storage: 21% of Q3 2020 Total Program Cost
 Recycling Fees*: 30% of Q3 2020 Total Program Cost
*”Recycling Fees” was referred to as “Tipping Fees” in previous slide decks

23. 23
Material Collected by CARE Drop-Off Sites (Annual)
 2020 lbs collected YTD: 73% of total 2019 lbs collected
 Q3 2020 lbs collected: -16% increase over Q3 2019 lbs collected;
27% increase over Q3 2018 lbs collected

24. 24
Drop-Off Site Program Summary
 79 operational CARE Drop-Off Sites in 53 CA counties by end of Q3
 185 operational private sites reported at the end of Q3
*Cost/Capita uses updated Census information as available
Data Collected 2014 2015 2016 2017 2018 2019 2020
Hauling Cost (K $) $54 $309 $371 $346 $475 $450 $357
Storage Cost (K $) $24 $52 $89 $132 $172 $209 $170
Recycling Fees (K $) $3 $45 $153 $200 $284 $344 $236
TOTAL Cost (K $) $81 $406 $613 $678 $930 $1003 $762
Avg. Cost/lb Collection $0.14 $0.17 $0.15 $0.10 $0.12 $0.10 $0.10
Avg. Cost/lb Collection - Rural - - - - $0.17 $0.21 $0.20
Avg. Cost/lb Collection - Urban - - - - $0.10 $0.08 $0.09
Average Cost/Capita* $0.08 $0.05 $0.01 $0.006 $0.005 $0.004 $0.005
Pounds Collected (K lbs) 560 2,378 4,141 6,852 7,945 10,167 7,450
Private Drop-Off Site N/A 201 200 216 117 160 185
Public Drop-Off Site 14 23 32 44 53 73 79
Annual Data Summary

25. 25
Recommendations to SFOC

26. 26
Recommendations for SFOC Approval
(Thousands)
1) Approve CSE subsidy
2) Approve Processor subsidy
3) Approve Manufacturer subsidy
4) Approve COVID-19 Special Payout
5) Approve Program costs
6) Approve Administrative costs
Total Payout: $6,813.5
$421.8
$574.7
$965.8
$1,999.0
$2,167.7
$684.5

27. End of Review