2. 2
Agenda
Quarterly Overview of Results
Manufacturers Report
Quarterly Subsidy and Expense Payouts
Drop-off Program Update
Approval Requests
Other Information (as required)
3. 3
CARE’s Executive Director’s Message
CARE opened 2020 with momentum and great anticipation for expending recycled output, new capacity coming
on line and new market opportunities. Unfortunately, such was not to be the case. Early on it became clear sales
were going to be weaker than budgeted (-9%) which means the flow of used carpet to recyclers would be more
difficult to secure. Sales set yet another low point in a continuing downward trend.
Coupled with on-going permit delays and the failure of PG&E once again to deliver on promises to supply power
to a new recycling facility, recycled output was down vs Q4. It should be noted that the Covid-19 pandemic
impact began to manifest in March, thus most of the quarter did not see the full impact.
As a result, the recycling rate for Q1 took a step back to 19.9% - actually much better than originally anticipated
given the slow start to 2020. Given the slowdown in sales and recycled output, the fund balance grew by $0.9M.
CARE issued a 10 point Action Plan at the end of Q1 in an effort to support recyclers. Feedback has been very
positive to those moves and much appreciated by the community. Looking forward, the full impact of Covid-19
will be felt in Q2. As a result, efforts in Q2 will focus on continued support for recyclers and key stakeholders as
they work to rebuild their capacity and move product.
All stakeholders are encouraged to go to the CARE website, click on the CA tab and sign up for the monthly
news letter to stay abreast of the latest developments. https://carpetrecovery.org/
Bob Peoples, Ph.D., Executive Director, May 19, 2020
5. 5
AB 2398 Performance Trends (millions of pounds)
*Average: 2011 is average of Q3 & Q4; 2012-2017 is 4 quarter average
6. 6
AB 2398 Performance Trends (percentage)
*Average: 2011 is average of Q3 & Q4; 2012-2017 is 4 quarter average
7. 7
Gross Collected PCC Sent Back to Landfill**
Q1-2020 Gross Collected: 20.2M pounds – 3.2M sent to landfill
Cumulative to landfill: 176.0M lbs.
*Average: 2011 is average of Q3 & Q4; 2012-2017 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.
16. 16
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
Tier 2 N6
Subsidy
Q4 2017
Tier 2
N6,6
Subsidy
Q1 2019
*Average: 2014-2018 is 4 quarter average
17. 17
Fund Balance Trends
Based on unaudited numbers – adjustments may be made after audit closes
ACCRUAL BASIS
Reserve = 2 month average of the last quarter total expenses (effective Q1-2019)
All data from Melanie 05/15/120
21. 21
Annual Cost Comparison
Hauling: 47% of Q1 2020 Total Program Cost
Storage: 22% of Q1 2020 Total Program Cost
Recycling Fees*: 31% of Q1 2020 Total Program Cost
*”Recycling Fees” was referred to as “Tipping Fees” in previous slide decks
22. 22
Material Collected by CARE Drop-Off Sites (Annual)
2020 lbs collected YTD: 25% of total 2019 lbs collected
Q1 2020 lbs collected: 38% increase over Q1 2019 lbs collected;
95% increase over Q1 2018 lbs collected
23. 23
Drop-Off Site Program Summary
77 operational CARE Drop-Off Sites in 51 CA counties by end of Q1
168 operational private sites reported at the end of Q1
*Cost/Capita uses updated Census information as available