The document provides a quarterly report on the results of the California Carpet Stewardship Program for Q2 2021. It includes an overview of key metrics like the recycling rate, sales figures, expenses, and fund balances. It also provides updates on the drop-off site program, recommendations for approval of subsidy payouts and expenses, and a discussion of ongoing education/outreach, collection, grants, and communications efforts.

1. CARE Sustainable Funding
Oversight Committee
08/24/2021
1
CARE Update : California Carpet Stewardship Program
Q2 2021 Approved Results

2. Agenda
• Quarterly Overview of Results
• Manufacturers Report
• Quarterly Subsidy and Expense Payouts
• Drop-off Program Update
• Approval Request
California Carpet Stewardship Program Q2 2021 Approved Results
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3. CARE Executive Director Message
CARE has established a solid 20% per year increase over the last 5 years including a 10% increase
during the pandemic in 2020. Continuing that trend, the Recycling Rate for Q2 was 29% setting
another high-water mark. The yield (output/collections) was 83%.
All indicators continue to point in the right direction as the U.S. grapples with the latest Covid surge
and supply chains remain strained. Transportation costs have doubled and then some in many areas.
Sales in Q2 were nominally on budget at 17.9M square yards, while quarter over quarter sales
continue to decline. While sales have improved, we are still well below 2019. Residential sector sales
have mostly recovered while commercial sector sales are still significantly lagging.
Overall, 84% of expenses were paid out in the form of subsides. Expenses exceeded assessments
collected resulting a fund balance of $16.1M on a drop of $1M (-6%).
Finally, 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
California Carpet Stewardship Program Q2 2021 Approved Results
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Robert Peoples, PhD
Executive Director

4. AB 2398 Summary Results
California Carpet Stewardship Program Q2 2021 Approved Results
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5. Quarterly Overview of Results
California Carpet Stewardship Program Q2 2021 Approved Results
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6. AB 2398 Performance Trends (millions of pounds)
6

7. AB 2398 Performance Trends (percentage)
7

8. Yield Trend
8

9. Gross Collected PCC Sent Back to Landfill 1
9
1. Percentages shown are % 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.
Q2-2021 Gross Collected: 22.5M pounds – 2.1M sent to landfill Cumulative to landfill: 187.0M lbs.

10. Disposal
10 Quarterly % Change in Disposal: +6.7%

11. Calcium Carbonate (PC4) by Quarter
11

12. AB 2398 Manufacturers/Mills
Quarterly Summary Report
California Carpet Stewardship Program Q2 2021 Approved Results
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13. AB 2398 Mills’ Summary
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Cumulative SQYD Sold: 896.7M Cumulative Remittances: $150.2M
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
# Mills Registered 77 76 77 79 79 79 79
# Mills Not Reporting 3 3 2 4 3 3 1
Non-response Rate 4% 4% 3% 5% 4% 4% 1%
Remittance Collected
Total Sq Yd Sold (millions) 18.3 17.1 14.4 18.4 16.8 16.1 17.9
Total Remittances ($M) 6.40
$ 5.97
$ 5.04
$ 6.45
$ 5.89
$ 5.64
$ 6.26
$
Top 10 Remittances (>$10K) 6.01
$ 5.62
$ 4.81
$ 6.15
$ 5.56
$ 5.35
$ 5.93
$
Top 10 % of Total (Avg) 94% 94% 95% 95% 95% 95% 95%
Mills - With Yearly Roll-up

14. Sales by Quarter
14

15. AB 2398 Quarterly Subsidy
and Expense Payouts
California Carpet Stewardship Program Q2 2021 Approved Results
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16. Summary of Payouts Q2 2021
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1
2
3
4
CSEs
CSE Reporting Incentive 15,000
$
Tile Recycling or Reuse Pilot 35,083
$
Tile Reuse 82,892
$
Broadloom Reuse -
$
Total Reuse Payout 82,892
$
700,507
$
Adjustments -
$
Total CSE Payouts 833,482
$
Broadloom Shipped and Sold
Processors
Tile RECYCLED 83,348
$
Type 1 Standard Payout 1,675,343
$
Highest Recyclability: Nylon 313,378
$
Total Type 1 Payout 2,072,069
$
Type 2 Filler/Other -
$
PC4 (Calcium Carbonate) 817,879
$
Total Type 2 Payout 817,879
$
Adjustments -
$
Total All Processor Payouts 2,889,948
$
Manufacturers
Non-Nylon Payouts 1,622,195
$
Nylon 6 Payouts 745,376
$
Nylon 6,6 Payouts 63,154
$
Adjustments -
$
Total All Manufacturers Payouts 2,430,726
$
Subsidy Payouts
Total Subsidy Payouts for Qtr 6,154,156
$

17. Summary of Expenses
17 All data from Finance Director confirmed 8/16/2021
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
79,417
$
-
$
(102,130)
$
Percentage
-
$
Q2 2021
6,154,156
$ 84%
6,154,156
$
0%
0%
7,761
$
7,287,350
$
4%
-1%
0%
1%
1%
6%
100%
2%
10%
402,250
$
16%
3%
248,624
$
66,448
$
347,949
$
180,313
$
1,133,194
$
84%
730,944
$
5%
301,812
$
0%
3,000
$

18. Payouts Over Time
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Tier 2
N6,6
Subsidy
Q1 2019
COVID Action Plan
Beginning Q2 2020

19. Fund Balance Trends: Accrual Basis
19
Based on unaudited numbers – adjustments may be made after audit closes.
Reserve = 2-month average of the last quarter total expenses (effective Q1-2019)
Financial Director confirmed 08/16/21

20. CA Employees (FTEs)
20
FTE = Fulltime equivalent employees

21. Drop-Off Site
Program Update
Q2 2021
California Carpet Stewardship Program Q2 2021 Approved Results
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22. Drop-Off Site Total Program Costs
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23. Annual Cost Comparison
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Total Program Costs: Hauling: 42% of Q2 2021 Costs Storage: 16% of Q2 2021 Cost Recycling Fees: 42% of Q2 2021 Cost

24. Material Collected by CARE Drop-Off Sites (Annual)
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2021 lbs. collected YTD: 58% of total 2021 lbs. collected
Q2 2021 lbs. collected: 46 % increase over Q2 2020 lbs.; 40% increase over Q2 2019 lbs. collected

25. Drop-Off Site Program Summary 1
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• 89 operational CARE Drop-Off Sites in 54 CA counties by end of Q2
• 192 operational private sites reported at the end of Q2
1. Cost/Capita uses updated Census information as available
Data Collected 2017 2018 2019 2020 2021
Hauling Cost (K $) $346 $475 $450 $504 $288
Storage Cost (K $) $132 $172 $209 $234 $122
Recycling Fees (K $) $200 $284 $344 $322 $233
TOTAL Cost (K $) $678 $930 $1003 $1060 $643
Avg. Cost/lb Collection $0.10 $0.12 $0.10 $0.10 $0.11
Avg. Cost/lb - Rural - $0.17 $0.21 $0.20 $0.20
Avg. Cost/lb - Urban - $0.10 $0.08 $0.09 $0.10
Average Cost/Capita [1] $0.006 $0.005 $0.004 $0.003 $0.004
Pounds Collected (K lbs) 6,852 7,945 10,167 10,226 5,887
Private Drop-Off Site 216 117 160 178 192
Public Drop-Off Site 44 53 73 83 89
Annual Data Summary

26. Private vs. Public Collection Sites
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27. Recommendations to SFOC
California Carpet Stewardship Program Q2 2021 Approved Results
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28. Recommendations for SFOC Approval
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(Thousands)
1) Approve CSE subsidy
2) Approve Processor subsidy
3) Approve Manufacturer subsidy
4) Approve Program costs
5) Approve Administrative costs
Total Payout:
$833.5
$7,287.4
$402.3
$730.9
$2,430.7
$2,889.9

29. Program Discussion Agenda
 Education & Outreach
 Collection
 Grants
 Newsletters & Communications
California Carpet Stewardship Program Q2 2021
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Education & Outreach
 Retailer, Installer, Consumer Outreach
 248 phone calls to carpet and hard surface retailers (YTD: 759)
 Flyers mailed to over 10,000 hard surface retailers and installers
 SF Bay Area Regional Approach mass media campaign in July
 Billboards, newspaper and digital ads, KQED radio sponsorship, website, landing
page, 4 supply house tablings, e-mails to local government
 SoCal Facilities Expo tabling to reach convention center and large
facility managers
 Drop-off Site Outreach
 One quarterly outreach effort
 Technical assistance phone calls with all CARE drop-off sites
 One quarterly educational webinar for all Drop-off Sites (YTD: 3)
 59 participants (YTD: 185)

31. 31
Collection
 CARE Drop-off Sites – 89 sites
 86 public drop-off sites supporting 54 counties
 Three semi-public Drop-off Sites
 Two new Drop-off Sites:
 Shaw Regional Distribution Center (Alameda County)
 Rivara’s Fine Flooring, Morgan Hill (Santa Clara County)
 Four counties do not have public Drop-off Sites.
 Two outstanding: Colusa and Nevada
 Two left the program: Stanislaus and Trinity Counties
 Convenient Collection
 Three semi-public Drop-off Sites - serving installers
 Mohawk Distribution Center in Fontana (San Bernardino County)
 Shaw Distribution Center in San Leandro (Alameda County)
 Union Training Center - San Leandro (Alameda County)

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Grants
 Micro Grants
 Cycle 4 of micro grants opened March 3 and applications can be submitted through
year end.
 Two Cycle 4 grants are underway.
 Seven Cycle 3 micro grants are complete and on track as of the end of Q2.
 Capital Grants
 Cycle 5 of capital grants opened May 1 and four applications were received as of
6/30/2021. Four awards were recommended by the grants review committee and
approved by the SPC: RISE, AQR2, Circular Polymers, and Hayward Xfer St.
 One Cycle 2/3 capital grant project is still underway and will close at the end of March
2022.
 Seven Cycle 4 grantees are underway through 2021.
 Testing Grants
 Cycle 4 of testing grants opened May 1 but no applications received as of 6/30/2021
deadline.
 Three Cycle 3 of testing grantees underway through 2021; one Cycle 2 grantee
underway through March 2022.

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Newsletters/Communications
 Three monthly e-news sent (June, July, August)
 Three Blog Posts
 Carpet Recycling & COVID: Navigating the Pandemic
 New Flyer Highlights Progress of CA Program
 CARE Grantee Case Study: necoTech
 New Product Flyer
 Showing recycling process and product samples
 Reuse Efforts:
 Forth ad campaign with Habitat for Humanity Bay Area
 Ongoing: reporting, collateral, website and Twitter.
 Traffic on CARE website up 238% over last year

34. End of Review
California Carpet Stewardship Program Q2 2021 Approved Results
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