- The early subsidy payment options currently set to expire will be continued through March 2021
- The additional 2 cents/pound temporary subsidy for collections will be continued through March 2021.
- The enhanced temporary Tier 1 and Tier 2 subsidies enacted in March will be continued through March 2021.
CARE continues to evaluate the pandemic impacts and review the Covid Action Plan on an on-going basis.The COVID-19 impact on both sales of new flooring as well as the carpet recycling community has been significant. According to direct feedback from a stakeholder, CARE’s COVID Action Plan “made a dramatic difference for all of us in the carpet recycling community. The industry stood on the precipice of imploding. The immediate and measured proactive initiatives undertaken by CARE… were not mere handouts, but tactical financial assistance measures that served to ensure market stability.”
- The early subsidy payment options currently set to expire will be continued through the end of 2020.
- The additional 2 cent/lb. subsidy for collections currently set to expire will be continued through the end of 2020.
- A subcommittee of the Sustainable Plan Committee has been formed to look at new ways to enable growing collections. CARE Executive Director Bob Peoples notes about the subcommittee’s work: “We know this will be bigger challenge and cost more, but is important as the program continues to expand. We hope to have many new ideas ready for implementation by year-end as we continue to monitor market dynamics.
- Nylon 6 Tier 2 will increase by 15 cents/lb.
- Nylon 66 Tier 2 will increase by 3 cents/lb.
- PET Tier 1 will increase by 5 cents/lb.
- PP Tier 1 will increase by 5 cents/lb.
First Announcement: March 2020
- Issue a one-time payment to each qualified recycler, calculated as the average monthly subsidy received over last 12 months. CARE estimates the one-time payment will total approximately $1.13 million. This payment will not affect the cash reserve.
- Pay 80% of earned subsidies after initial reporting by recyclers (as opposed to the usual 40 to 45 days). The situation will be reassessed after 90 days.
- Monitor retail sales and PCC availability to aid recyclers in planning for dramatically reduced raw material flows.
- Institute an additional temporary $0.02/lb. subsidy for PCC collection for 90 days, effective April 1 (total $0.04/lb.) This adjustment will be in place for 90 days, through the end of June. CARE is not increasing the current approved Plan-based Collector Sorter Entrepreneur subsidy; it is providing a temporary collection incentive to address rapidly changing market conditions.
- Coordinate and communicate with other Product Stewardship groups to identify the best ways to tackle shared challenges.
- Suspend routine audits for 90 days. This applies to all recipients of California subsidy payments and does not suspend the requirement to comply with Agreed Upon Procedures (AUP). The AUP suspension does not apply to mills. CARE will revisit the status in 90 days to determine if a further delay is warranted.
- Designate Recycling as Essential Infrastructure and Essential Businesses.
- Suspend all Recycling Market Development Zone (RMDZ) loan payments(P&I) for 6 months. RMDZ loans are a major debt service requirement for many recyclers, including carpet. This would help with cash flow during the crisis.
- Support action to request that utilities not cut off service to any commercial enterprise for 90 days.
- Work with Governor Newsom’s staff to stop any commercial enterprise eviction actions for 90 days.
See the letter to CalRecycle outlining the action plan here.
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