January 2025

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CalRecycle Approves Assessment Increase

Following CalRecycle approval, differential assessments currently charged on all carpet sold in California will increase on February 1, 2025. The assessment increase was requested by CARE on November 8th and approved by CalRecycle on December 23rd.

The new amounts are:

“We recognize the burden this places on California retailers and their customers,” noted CARE Executive Director Bob Peoples. “While the California Carpet Stewardship Program has made huge progress in recent years, new demands and rising costs make this increase necessary.”

Carpet retailers in the state should prepare immediately for the point of purchase changes that will be needed to collect the correct, updated assessment from customers. Carpet mills are responsible for advising retailers on which products qualify in terms of post-consumer content. CARE will continue to supply point of purchase materials as well as training support materials for sales staff. Retailers are encouraged to visit the CARE website for the latest collateral and updates.



Assessments are expected to change again in the future. The CalRecycle approval letter noted that CARE’s next Five Year Plan amendment, which it is required to submit to CalRecycle by July 1, 2025, “must address all statutory, regulatory, and plan requirements, which includes a revised system of differential assessments that is inclusive of additional factors, such as type of face fiber, to more accurately align the assessment levels with the financial burden various carpet materials impose on the program.” We strongly encourage stakeholders, retailers in particular, to consider what this will mean for your businesses.

Q3 Results Show Progress; Challenges Remain

CARE Executive Director Bob Peoples presents California program results for Q3 2024:

The third quarter of 2024 saw an increase in both gross collections and recycled output of 13% and 7.7%, respectively. The overall year-to-date Recycling Rate is 38%, which is well ahead of our 34% target for 2024.

While Q3 is typically the strongest quarter, overall, markets remain challenging. Oil has dipped below $70 per barrel (WTI crude benchmark) and that, along with slowing auto sector demand and cheap imports from China, will continue to put pressure on outlets. As noted in the last two quarters, carpet pad markets, not covered by the carpet stewardship law, also continue to be depressed.

Sales in Q3 were 14.4 million square yards, essentially on budget for the first time in years. However, overall sales in 2024 are down versus the Plan budget. As a reminder, the new Five Year Plan reflects a 32% reduction in sales over the life of the Plan.

Overall, 80% of total expenses were paid out in the form of subsides and 78% of those subsidies were paid to California recyclers. Revenue exceeded expenses, and the fund balance ended the quarter at $6.7 million, up by $1.7 million (+16%) versus the Q2 balance.

View the full presentation on the CARE website.

Micro Grants Awarded

The California Carpet Stewardship Program recently awarded two additional Micro Grants for Collection/Reuse in an effort to divert a greater volume of post-consumer carpet (PCC) from landfill. Circular Polymers, based in Lincoln, CA and Transportek Logistics, Inc., based in Ceres, CA each received a $15,000 award to purchase equipment to enable the companies to collect significant volumes of PCC for recycling from new retail accounts.

Cycle 5M of the Micro Grants Program remains open for applications from California-based entities through 2025. For more information, visit the CARE Grants webpage or contact Abbie Beane, CARE grants manager, at ABeane@CarpetRecovery.org.

CARE Welcomes a New Public Drop-off Site

CARE welcomes one new public drop-off site this month:

• Floors Plus Gilroy, Gilroy, Santa Clara County

There are currently 163 CARE public drop-off sites servicing all 58 California counties.

CARE supports drop-off sites by providing at no cost:

• A container for collection
• Third-party hauling to transport carpet material to recyclers
• Promotional materials for local government and the hosting facility
• Technical assistance from CARE staff
• Ready access to micro grants that support site set-up and collection equipment/infrastructure.

To find the CARE-sponsored drop-off site closest to you, visit the drop-off site map. If there is a location, such as a supply house, landfill, transfer station or recycling facility that you feel would work well as a drop-off site for you and other flooring professionals near you, please email CARE with the facility's name, location and business phone number. A CARE staff person will call you to discuss your volume, learn more about flooring professionals’ needs in your area and work toward finding a solution.

In addition to public drop-off sites, CARE works with the recyclers who operate some 220 private collection sites around the state.

CARE Conference Reminder

CARE’s 23^rd Annual Conference is coming to California: May 20-21, 2025 at the Sea Bird Resort in Oceanside. The Conference theme is “Carpet Recycling: Riding the Sustainability Wave.” Please mark your calendars! More information and registration will be available in late January.

CARE is proud to welcome BTR Flooring & Recycling as the 2025 Conference's Premier Sponsor. Sponsors are critical to the Conference's success and receive valuable benefits. We invite you to consider sponsoring the Conference. See details here.

CarpetRecovery.org/CA