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Kathy Frevert Kathy.Frevert@calrecycle 916-341-6476 calrecycle /EPR /Carpet

California Carpet Stewardship Overview and Update. Kathy Frevert Kathy.Frevert@calrecycle.ca.gov 916-341-6476 www.calrecycle.ca.gov /EPR /Carpet. January 28, 2013. Why Carpet?. Carpet: 3.2 percent of waste by volume in CA (2008) - top 10 item

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Kathy Frevert Kathy.Frevert@calrecycle 916-341-6476 calrecycle /EPR /Carpet

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  1. California Carpet Stewardship Overview and Update Kathy Frevert Kathy.Frevert@calrecycle.ca.gov 916-341-6476 www.calrecycle.ca.gov/EPR/Carpet January 28, 2013

  2. Why Carpet? Carpet: 3.2 percent of waste by volume in CA (2008) - top 10 item Discarded carpet is a valuable resource! Lack of financing hindered recycling

  3. Key Roles:Stewardship Organizations (CARE) / Mfrs • Develop plans, fund and implement programs • Determine financial approach • Report on progress • Adjust plan • Show continuous meaningful improvement

  4. Key roles:State Government: Ensure Fairness Oversight • Review and approve stewardship plans • List compliant manufacturers at website • Review annual reportsand check progress • Ability to assess civil penalties to anyone in violation of anyprovision

  5. Key Roles:Retailers • Only sell product that is covered under an approved plan

  6. Carpet Recycling (AB 2398) • Signed in 2010, industry supported, builds off national MOU (2002) • Law addresses • goals, financing, enforcement • allows individual or collective programs • CARE is the stewardship organization • Implementation started July 2011 • Submitted plan to CalRecycle, conditionally approved Jan 2012.

  7. One of first product stewardship laws Carpet Recycling Overview (AB 2398) • Goals • Goals increase • recycling of postconsumer carpet • diversion of postconsumer carpets from landfills • recyclability of carpets • incentivize the market growth of products made from postconsumer carpet • Goals in stewardship plan approved by state • Plan conditionally approved, goals still under consideration

  8. One of first product stewardship laws Carpet Recycling Overview (AB 2398) • Financing • Collect assessment -5¢/sq yd, visible on all receipts (July 2011-2016), about $5 million per yr • CARE distributes funds to • Qualified carpet processors/entities • CalRecycle for oversight and enforcement • Evaluation • Annual report to CalRecycle, independent audits of program financing

  9. Flow of Funds Carpet Manufacturer Adds Assessment to Retailer Invoice Manufacturer pays Carpet Stewardship Organization (CARE) $0.05/yd2 Retailer Bills Customer Funds used to make it easier to recycle carpet (incentives to processors), new product development, reuse, recycling and diversion in California $0.05/yd2 Customer Source: adapted from CARE presentation 2012

  10. Financing – Incentives to Processors • First- Line Processor Receives Fund • CARE incentive payments based off invoices paid, i.e., what processors sell • Help insure health of the base business, while stimulating growth • Encourage processor to obtain feedstock from upstream sources and increase demand for recycled carpet materials.

  11. Revisit baseline, measurement methodology, and goals after one year of California-specific sales data • Fully implement the rural pilots • All audits performed in accordance with GAGAS • Resubmit Plan by December 31, 2012 (extended to May 31, 2013). Conditional Plan Approval

  12. CARE Results for CA: July 2011 – Sept 2012 • Fluctuation across quarters • About 8 Processors requested funds • Q3 2012 - carpet sales (estimated discards) slightly higher • Q3 2012 - recycled output slightly lower, inventory higher Recovered-top line Diverted – mid line Recycled output – lower Source: CARE, Jan 1 2013

  13. CARE Results for CA: July 2011 – Sept 2012 Source: CARE, Jan 1 2013

  14. Results July 2011 – Sept 2012 • 3500 Dealer and Retailer Kits distributed (prior to July 2011) • 80 Carpet Manufacturers Registered for CARE California Carpet Stewardship Plan • $6.3 Million Remitted by Manufacturers* • Recycled output – 49.2 million pounds • 204 people directly employed in carpet recycling in spring 2012 • *on target with prior estimates

  15. Results (continued) • Applications for funds occurring, payments being made • Program proved critical to processors • Millions of dollars of new equipment has been installed (>$6 million) • New uses of old carpet are being vetted by CARE

  16. Results (continued) • Recycling services in rural areas - pilots underway in 6 counties • CARE pays cost of trailers and transportation • Trailers located at MRFs, landfills, etc. • Monthly reporting • Trailers filling up faster than expected in some counties • Rollout to all rural counties expected after pilot completed

  17. Finances: July 2011- Sept 2012 • Funds collected by CARE - $6.23 million • Funds requested by recyclers - $2.6 million • CARE’s expenses - $ 552 K • CalRecycle’sexpenses (less than $250K/year) • On-going. Cap in statute sets limit on what CalRecycle can invoice -- 5% of program funds • Unused funds - $2.6 million (funds planned to be deployed to incentivize and build markets, PET an anticipated area of focus)

  18. Carpet Recycler Accomplishments (May 2012) Source: June 6, 2012, Zone Works Presentation by Gail Brice, Carpet Recyclers We survived (so far) Scaled up new technology on way to zero waste to landfills Added 3rd shift, 7 days/wk At 50 million #/year run rate, save 5 million gallons of oil Created 100+ green jobs Long-term supply agreements Named “Recycler of the Year” by Carpet America Recovery Effort (CARE) Poised for west-coast expansion

  19. Concerns from Stakeholders • Types of concerns • Fund isn’t large enough to really make a difference • Disagreements about how new recycling processes are defined (eligible for higher incentive or not?) • Full participation among stakeholders • CARE needs to be more hands-on in the State of California • Need to increase yields from materials collected, especially PET • Need a balanced flow of materials • Cost of collection increasing for additional materials

  20. Concerns from Public • Types of concerns • Retailer receipts – not showing assessment • Recycling facility – customers loads not being accepted (wrong material, dirty loads, change in operating hours) • Recycling facility – not clean enough • Carpet is stored outside • Carpet is collected for recycling, but disposed (rural area) • CARE is first point of contact, nearly all resolved • CARE developed BMPs on carpet handling and storage

  21. Key lessons learned so far… • Combustion of carpet residues – contentious • Data for baseline – challenging • Flexibility – allow/plan for changing market • Allow time – to set up accounting systems, install equipment, find markets for process materials, etc. • Have procedures in place to address storage • Too early to know full results, overall trends positive

  22. CARE Carpet Contacts • Dr. Robert (Bob) PeoplesExecutive DirectorCarpet America Recovery Effort (CARE)100 S Hamilton Street, Dalton, Georgia 30720Phone: 706-428-2127 • http://carpetrecovery.org/AB2398.php(California Carpet Stewardship) • http://carpetrecovery.org/contact.php(for questions)

  23. CalRecycle Carpet Contacts • Kathy Frevert Kathy.Frevert@calrecycle.ca.gov 916-341-6476 • FareedFerhut Faridoon.Ferhut@CalRecycle.ca.gov (916) 341-6482

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