This document summarizes information presented in a webinar for retailers about adjustments to California's carpet stewardship assessment in 2019. Key points include: - The assessment increasing to $0.35/square yard in January 2019 to help the program meet recycling rate goals and expand collection efforts. - Retailers must clearly show the assessment as a separate line item on invoices and use approved labels. Non-compliance can result in penalties. - Funds collected support subsidies for collectors/sorters and processors, grants for new recycled products, and program operations to increase recycling rates in California.

1. California Carpet Stewardship
2019 Assessment Adjustment
November 8, 2018
Retailer Webinar

2. Dr. Bob Peoples
CARE, Executive Director
Jacy Bolden
CARE, CA Program Director
Welcome!
Today’s Host: Nancy Roberts, Gigantic Idea Studio

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. 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. • 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. • 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. • 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. Macroeconomic Factors
Source: Cushing, OK WTI Spot Price FOB http://www.eia.gov/
Crude Oil in Dollars per Barrel Over Time

9. Program Trends
29% increase in recycling rate 2017 over 2016
Percent (%) collected and recycled

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. • 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.  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. Sample Invoice
Manufacturer

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. 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. Collector/Sorters

17. Processors

18. Reliance Carpet Cushion
Manufacturers

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. 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. 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. Presentation to JPADrop-off Sites

23. Retailer Resources
CarpetRecovery.org/CA-Retailers

24. Retailer Materials
Retailer Resources

25. E-news & Updates

26. Updated Product Brochure
Released in 2018
New Recycled Carpet Products

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. Questions?

29. Visit CARE Online: www.carpetrecovery.org
• Join our email list for Updates
• Follow us on Twitter
@CarpetRecycle
• Email me: jbolden@carpetrecovery.org
• Visit CalRecycle Online:
www.calrecycle.ca.gov/carpet
Join Email List
For More Information