1. Slide Show Staff’s Presentation

2. Carpet Stewardship MOU Update Voluntary Ten-Year Agreement Industry, Government & Non- Profits Seeks 30% Diversion by 2012 Mix of Methods--Mostly Recycling

3. The History of the MOU Staff joined negotiations in 2000 Board Supported Participation August 2001 Staff to report back in two years Agreement Signed by former Cal/EPA Secretary Winston Hickox January 2002

4. Agreement Content Form a third party organization— Carpet American Recovery Effort, or CARE Industry will fund efforts— infrastructure etc. Work together to reach 30% diversion target

5. Signatories Fiber and carpet manufacturers Carpet & Rug Institute Federal EPA Twelve States (including CA) Northeastern Recycling Council

6. CARE Efforts Grants to Businesses –Railroad Ties –Auto parts –Reuse Center Networking

7. States’ Responsibilities Procurement (i.e., Buying Recycled) Procurement Guidelines Policy and regulation to support recycling Providing technical and financial assistance for market development

8. Results? Year End Goal for 2002 was 3.8 percent Estimated Actual Diversion was 1.2 percent Mostly Los Angeles Fiber Company Survey not comprehensive—could be more

9. Concerns No significant recycling of Nylon-6 fiber –Evergreen facility closed three months before MOU signed –Polyamid 2000 closed in July 2003 LA Fiber is responsible for most of US carpet recycling Carpet manufacturers slow to take ownership of problem—focus on outside entrepreneurs

10. Future of CARE Hiring Executive Director Proposal to Collect Funds From Industry to Finance Diversion

11. Recommendations Don’t give up. Continue to monitor progress. Send letter to CRI expressing concern over slow start. Report back next year.

12. This concludes staff’s presentation. Any questions? This is the last slide.