Presentation to the Sustainable Funding Oversight Committee of CARE on the progress of the California program in Q4 2021.

1. CARE Sustainable Funding
Oversight Committee
02/17/2022
1
CARE Update : California Carpet Stewardship Program
Q4 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 Q4 2021 Approved Results
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3. CARE Executive Director Message
CARE is please to report the Q4 Recycling Rate was 28.7% and brings our 2021 annual Recycling Rate
over the 26% target for the first time! This makes 6 straight years of increases with an average growth of
27.7% per year.
CARE now has 94 public Drop Off Sites (DoS) around the state, an increase of 25% over 2019, and there is
now at least 1 public Drop Off Site in every county in CA. In 2020, 2 new Regional Distribution Centers were
added to the CARE program. In addition, there are now 202 private network sites, up from 178 at the end of
2020. Collections were up 14% vs. 2020. Recycling Efficiency (Yield) was at target of 75%.
Sales in 2021 will come in slightly below budget, but we anticipate a slight bump in sales for 2022. Overall,
74% of expenses were paid out in the form of subsides. Expenses exceeded assessments
collected resulting a fund balance of $12.4M or a drop of $1.8M (-12.7%).
Despite the on-going Covid disruptions (labor costs & availability, transportation costs, supply chain
disruptions, decreasing carpet sales) the carpet program has continued to expand due to the hard work of
the recycling community. Expansion plans for new capacity, collections and new markets are on track for
2022. The Program is working well, and growth continues as we begin the process of defining the next
5-Year Plan which will be submitted in late summer. 2021 will again focus on collection growth.
Finally, All stakeholders are encouraged to go to the CARE website, click on the CA tab and sign up for the
monthly e-news letter to stay abreast of the latest developments. www.carpetrecovery.org
California Carpet Stewardship Program Q4 2021 Approved Results
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Robert Peoples, PhD
Executive Director

4. AB 2398 Summary Results
California Carpet Stewardship Program Q4 2021 Approved Results
4

5. Quarterly Overview of Results
California Carpet Stewardship Program Q4 2021 Approved Results
5

6. AB 2398 Performance Trends (millions of pounds)
6

7. AB 2398 Performance Trends (percentage)
7

8. Gross Collected PCC Sent Back to Landfill 1
8
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.
Q4-2021 Gross Collected: 21.5M pounds – 2.8M sent to landfill Cumulative to landfill: 192.1M lbs.

9. Disposal
9 Quarterly % Change in Disposal: -14.3%

10. Calcium Carbonate (PC4) by Quarter
10

11. AB 2398 Manufacturers/Mills
Quarterly Summary Report
California Carpet Stewardship Program Q4 2021 Approved Results
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12. AB 2398 Mills’ Summary
12
Cumulative SQYD Sold: 930.0M Cumulative Remittances: $161.9M
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
# Mills Registered 77 76 77 79 79 79 79 77 77
# Mills Not Reporting 3 3 2 4 3 3 1 0 2
Non-response Rate 4% 4% 3% 5% 4% 4% 1% 0% 3%
Remittance Collected
Total Sq Yd Sold (millions) 18.3 17.1 14.4 18.4 16.8 16.1 17.9 17.8 15.5
Total Remittances ($M) 6.40
$ 5.97
$ 5.04
$ 6.45
$ 5.89
$ 5.64
$ 6.26
$ 6.24
$ 5.42
$
Top 10 Remittances (>$10K) 6.01
$ 5.62
$ 4.81
$ 6.15
$ 5.56
$ 5.35
$ 5.93
$ 5.86
$ 5.09
$
Top 10 % of Total (Avg) 94% 94% 95% 95% 95% 95% 95% 94% 94%
Mills - With Yearly Roll-up

13. Sales by Quarter
13

14. Sales by Year and Percent Change 1
14
1. % is Year over Year Change
-1.6% -2.0% -2.9% -4.0%
-4.8%
-6.3%
-17.2%
+1.0%
33%
decline
5 5
5
20
10 25 25 35
35 35 Assessment
cents/sqyd

15. AB 2398 Quarterly Subsidy
and Expense Payouts
California Carpet Stewardship Program Q4 2021 Approved Results
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16. Summary of Payouts Q4 2021
16
1
2
3
4
CSEs
CSE Reporting Incentive 13,000
$
Tile Recycling or Reuse Pilot 20,592
$
Tile Reuse 57,785
$
Broadloom Reuse -
$
Total Reuse Payout 57,785
$
621,192
$
Adjustments -
$
Total CSE Payouts 712,569
$
Broadloom Shipped and Sold
Processors
Tile RECYCLED 48,630
$
Type 1 Standard Payout 1,501,412
$
Highest Recyclability: Nylon 209,077
$
Total Type 1 Payout 1,759,119
$
Type 2 Filler/Other -
$
PC4 (Calcium Carbonate) 732,838
$
Total Type 2 Payout 732,838
$
Adjustments -
$
Total All Processor Payouts 2,491,957
$
Manufacturers
Non-Nylon Payouts 1,659,295
$
Nylon 6 Payouts 346,931
$
Nylon 6,6 Payouts 56,116
$
Adjustments -
$
Total All Manufacturers Payouts 2,062,341
$
Subsidy Payouts
Total Subsidy Payouts for Qtr 5,266,868
$

17. Summary of Expenses
17 All data from Finance Director confirmed 02/11/2022
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
86,297
$
190,383
$
544,837
$
Percentage
-
$
Q4 2021
5,266,868
$ 74%
5,266,868
$
0%
0%
(852)
$
7,160,874
$
4%
8%
3%
1%
2%
9%
100%
0%
18%
639,144
$
26%
3%
217,922
$
145,394
$
452,769
$
(20,386)
$
1,894,006
$
74%
1,254,862
$
6%
276,142
$
0%
1,500
$

18. Fund Balance Trends: Accrual Basis
18
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 02/11/21
Fund Reserve

19. CA Employees (FTEs)
19
FTE = Fulltime equivalent employees

20. Drop-Off Site
Program Update
Q4 2021
California Carpet Stewardship Program Q4 2021 Approved Results
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21. Total Drop-off Sites
21 Public drop-off site data includes one union site and three regional distribution sites.

22. Drop-Off Site Total Program Costs
22

23. Annual Cost Comparison
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Total Program Costs: Hauling: 62% of Q4 2021 Costs Storage: 16% of Q4 2021 Cost Recycling Fees: 22% of Q4 2021 Cost

24. Material Collected by CARE Drop-Off Sites (Annual)
24
2021 lbs. collected YTD: 125% of total 2020 lbs. collected
Q4 2021 lbs. collected: 8% increase over Q4 2020 lbs.; 3% increase over Q4 2019 lbs. collected

25. Drop-Off Site Program Summary 1
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• 98 operational CARE Drop-Off Sites in 58 CA counties by end of Q4
• 202 operational private sites reported at the end of Q4. Public drop-off site data includes one union site and three regional
distribution sites.
1. Cost/Capita uses updated Census information as available
Data Collected 2017 2018 2019 2020 2021
Hauling Cost (K $) $346 $475 $450 $504 $733
Storage Cost (K $) $132 $172 $209 $234 $219
Recycling Fees (K $) $200 $284 $344 $322 $339
TOTAL Cost (K $) $678 $930 $1003 $1060 $1291
Avg. Cost/lb Collection $0.10 $0.12 $0.10 $0.10 $0.10
Avg. Cost/lb - Rural - $0.17 $0.21 $0.20 $0.19
Avg. Cost/lb - Urban - $0.10 $0.08 $0.09 $0.09
Average Cost/Capita [1] $0.006 $0.005 $0.004 $0.003 $0.003
Pounds Collected (K lbs) 6,852 7,945 10,167 10,226 12,773
Private Drop-Off Site 216 117 160 178 202
Public Drop-Off Site 44 53 73 83 98
Annual Data Summary

26. Private vs. Public Collection Sites
26

27. Recommendations to SFOC
California Carpet Stewardship Program Q4 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: $7,160.9
$639.1
$1,254.9
$2,062.3
$2,492.0
$712.6

29. End of Review
California Carpet Stewardship Program Q4 2021 Approved Results
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