One of the primary goals of the California Carpet Stewardship Program is to increase processor capacity within the state of California, and along with it, associated jobs. The carpet recycling industry is being impacted by headwinds from many fronts, including declining sales, depressed resin market prices, insufficient supply of post-consumer carpet (PCC) to support recycling operations and thus profitability, and weakened demand for PCC materials, among others. CARE’s Sustainable Plan Committee has authorized a carefully considered set of initiatives that are consistent with the approved 2023-2027 California Carpet Stewardship Plan and are also a recommendation of the California Carpet Advisory Committee. The initiatives will impact certain supplemental subsidies and drop-off site collections as follows:
Effective October 1, 2023:
- All Public Drop-Off Site pounds will be restricted to California-based processors.
Effective April 1, 2024:
- Out-of-state supplemental processing subsidies (Type 1) will be reduced by 50%
- All supplemental collection subsidies will go to zero for any pounds shipped out-of-state.
The above initiatives, which have been reviewed with CalRecycle, will augment other efforts at increasing collections. CARE recognizes that these initiatives will have varying impacts among all recyclers – especially those located out-of-state. At the same time, statutes require the Program to build capacity within the state and to support California’s efforts to build a closed-loop sustainable business model. CARE will continue to closely monitor the situation and consider additional adjustments if necessary.