1. CALIFORNIA Zero Waste Update on Carpet Stewardship MOU August 8, 2006 John Blue Agenda Item 14 www.ciwmb.ca.gov

2. CALIFORNIA Zero Waste 2 A Brief History of Carpet Stewardship 2000: Midwestern Workgroup on Carpet Recycling 2001: Board staff joined in MOU negotiations January 2002: MOU signed. Former Environmental Secretary Hickox signed for California

3. CALIFORNIA Zero Waste 3 Negotiation Participants Several states USEPA Carpet industry Non-governmental environmental organizations

4. CALIFORNIA Zero Waste 4 Goals of MOU Form 3 rd party organization: CARE Develop reclamation infrastructure Divert 40% of carpet waste by 2012

5. CALIFORNIA Zero Waste 5 Report card? Goal for 2005 was 10% diversion Achieved 4.6%

6. CALIFORNIA Zero Waste 6 What does this mean? 100% increase over prior year Nationwide figure –most diversion is in California Voluntary survey of recyclers –10% response rate California diversion rate is about 6-20%

7. CALIFORNIA Zero Waste 7 Carpet Disposal December 2004 Statewide Waste Characterization Study Looked at carpet for first time Found 840,000 tons/year Expected 300,000 tons/year Implies bigger concern

8. CALIFORNIA Zero Waste 8 Why the disparity? Market Trends –shifts in consumer tastes Greater than expected product turnover? Could be a bump We could need a better conversion factor. Is used carpet heavier than new?

9. CALIFORNIA Zero Waste 9 Industry Efforts Planned re-opening of Evergreen Recycling Facility (50,000 TPY) Improved manufacturing efficiency Changes in marketing

10. CALIFORNIA Zero Waste 10 Procurement Green Procurement Action Plan identifies carpet as priority Staff working with DGS, other state agencies, USEPA, and industry in nationwide effort Major Development: California Gold EPP Carpet Standard

11. CALIFORNIA Zero Waste 11 California Gold Standard Requires 10% post-consumer content (SABRC compliant) Minimal chemical emissions Product reclamation program pegged to MOU goals

12. CALIFORNIA Zero Waste 12 California Gold Standard Worked extensively with all stakeholders DGS “Management Memo” issued May 2006

13. CALIFORNIA Zero Waste Where are we headed? What factors are affecting the achievement of the MOU goals?

14. CALIFORNIA Zero Waste 14 Downward Pressure Lack of post-consumer nylon Lack of industry investment in infrastructure needed to address problem Consumers not demanding sustainability

15. CALIFORNIA Zero Waste 15 Upward Pressure More recycling investment by outside entrepreneurs Re-Opening Evergreen Facility Increasing demand from Asia for all plastics Rising oil prices

16. CALIFORNIA Zero Waste 16 Upward Pressure Growing number of plastics manufacturers see carpet as great resource Flame retardant ban affects foam but not fiber pad (Chan AB 2587)

17. CALIFORNIA Zero Waste 17 The Future? Continued growth in recycling and recovery—market driven Increase in demand for post-consumer nylon— procurement requirement driven

18. CALIFORNIA Zero Waste 18 The Future? Oil prices and worldwide economic growth will continue to drive the process unless there is a significant increase in capital investment by the carpet and fiber industry.

19. CALIFORNIA Zero Waste Waste Prevention & Market Development Update on Carpet Stewardship MOU August 8, 2006 John Blue Agenda Item 14 www.ciwmb.ca.gov