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2. 2
Agenda
ü Quarterly Overview of Results
ü Manufacturers Report
ü Quarterly Subsidy and Expense Payouts
ü Drop-off Program Update
ü Approval Requests
ü Other Information (as required)
3. 3
CARE’s Executive Director’s Message
CARE reports yet another record quarter for the recycling rate results for Q4 and continues the dramatic
increase in performance. Circular Polymers contributed to this increase with the start-up of another increase in
capacity during December, funded in part by another grant from CARE. Unfortunately, two other CARE funded
recycled output investments were unable to start up during 2019 due to factors beyond their control. LA Fiber
Company has been waiting on permit approval by the City of Vernon. The expansion, originally scheduled to
begin operation in August, is still not operational. Aquafil Plant #2 in Woodland has been waiting for power to be
delivered by PG&E since May of 2019. As a result, the June start-up, funded in part by a grant from CARE, was
not possible. Thus the Recycling Rate for Q4 did not achieve the 24% target. The actual recycling rate was
22.5% and represents a 44% increase vs Q4 2018, still another significant step in performance, it fell short of
expectations. What is important to note is that had either the LA Fiber or Aquafil projects been completed on
schedule, Q4 would have exceeded the 24% target.
While the normal Q4 seasonal slowdown was observed and considering sales of new carpet set another new
low, recycled output remained strong, setting a new Q4 high. Public Drop Off Sites ended Q4 at 73, up by 20
sites vs. end 2018. CARE Collections were up 28% vs 2018. The number of counties serviced rose by 3 to 50
after losing one due to the sale of operations. CARE added 3 new mills to the program in Q4 and our year end
fund balanced was $20M as a result of no change from Q3 to Q4. CARE dispersed an additional $1M in grants
in 2019.
Overall 2019 was a very good year in terms of growth in the recycling rate.
All stakeholders are encouraged to go to the CARE website, click on the CA tab and sign up for the monthly
newsletter to stay abreast of the latest developments. www.carpetrecovery.org
Bob Peoples, Ph.D., Executive Director, February 20, 2020
5. 5
AB 2398 Performance Trends (millions of pounds)
*Average: 2011 is average of Q3 & Q4; 2012-2015 is 4 quarter average
6. 6
AB 2398 Performance Trends (percentage)
*Average: 2011 is average of Q3 & Q4; 2012-2015 is 4 quarter average
Recycling Rate
7. 7
Recycling Rate (percentage)
* Percentages shown are the % of Recycled Output from Total Discards during the quarter.
Percentages compared against January 1, 2020 Recycling Rate goal of 24%.
2018 Q4 Recycling Rate 2019 Q4 Recycling Rate
+44% increase
Two major recycled output projects, both grant recipients, did not come on-line as
planned due to permit delays (August start-up) and failure of PG&E to deliver
power (June start-up). Either project would have contributed to a 24% plus
recycling rate in Q4!
8. 8
Gross Collected PCC Sent Back to Landfill**
*Average: 2011 is average of Q3 & Q4; 2012-2015 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.
Q4-2019 Gross Collected: 19.7M pounds – 3.8M sent to landfill
Cumulative to landfill: 172.8M lbs.
16. 16
Summary of Payouts Q4 2019
1
2
3
4
* All CSE pounds are now consolidated directly in CSE section.
Previously Processors who also collected were reported separately.
18. 18
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: 2014-2017 is 4 quarter average
NOTE: All REUSE payouts are counted under the CSE category.
Tier 2 N6
Subsidy
Q4 2017
Tier 2
N6,6
Subsidy
Q1 2019
19. 19
Fund Balance Trends
All data a/o 02/12/19
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
Note reserve change consistent with approved Plan
23. 23
Annual Cost Comparison
§ Hauling: 43% of Q4 2019 Total Program Cost
§ Storage: 24% of Q4 2019 Total Program Cost
§ Recycling Fees*: 33% of Q4 2019 Total Program Cost
*”Recycling Fees” was referred to as “Tipping Fees” in previous slide decks
24. 24
Material Collected by CARE Drop-Off Sites (Annual)
§ 2019 lbs collected YTD: 128% of total 2018 lbs collected
§ Q4 2019 lbs collected: -4% decrease under Q4 2018 lbs collected;
25% increase over Q4 2017 lbs collected
25. 25
Drop-Off Site Program Summary
§ 73 operational CARE Drop-Off Sites in 50 CA counties by end of Q4
§ 160 operational private sites reported at the end of Q4
*Cost/Capita uses updated Census information as available
NOTE