CALIFORNIAZero Waste

Update onCarpet Stewardship MOU

August 8, 2006

John BlueAgenda Item 14

www.ciwmb.ca.gov

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CALIFORNIAZero Waste

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

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CALIFORNIAZero Waste

Negotiation Participants• Several states• USEPA• Carpet industry• Non-governmental environmental

organizations

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CALIFORNIAZero Waste

Goals of MOU

• Form 3rd party organization: CARE

• Develop reclamation infrastructure

• Divert 40% of carpet waste by 2012

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CALIFORNIAZero Waste

Report card?• Goal for 2005 was

10% diversion• Achieved 4.6%

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CALIFORNIAZero Waste

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%

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CALIFORNIAZero Waste

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

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CALIFORNIAZero Waste

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?

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CALIFORNIAZero Waste

Industry Efforts• Planned re-opening of Evergreen

Recycling Facility (50,000 TPY)• Improved manufacturing efficiency• Changes in marketing

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CALIFORNIAZero Waste

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

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CALIFORNIAZero Waste

California Gold Standard• Requires 10% post-consumer content

(SABRC compliant) • Minimal chemical emissions• Product reclamation program pegged

to MOU goals

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CALIFORNIAZero Waste

California Gold Standard• Worked extensively with all

stakeholders• DGS “Management Memo” issued May

2006

CALIFORNIAZero Waste

Where are we headed?

What factors are affecting the achievement of the MOU goals?

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CALIFORNIAZero Waste

Downward Pressure• Lack of post-consumer nylon• Lack of industry investment in

infrastructure needed to address problem

• Consumers not demanding sustainability

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CALIFORNIAZero Waste

Upward Pressure• More recycling investment by outside

entrepreneurs• Re-Opening Evergreen Facility• Increasing demand from Asia for all

plastics • Rising oil prices

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CALIFORNIAZero Waste

Upward Pressure• Growing number of plastics

manufacturers see carpet as great resource

• Flame retardant ban affects foam but not fiber pad (Chan AB 2587)

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CALIFORNIAZero Waste

The Future?• Continued growth in

recycling and recovery—market driven

• Increase in demand for post-consumer nylon—procurement requirement driven

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CALIFORNIAZero Waste

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.

CALIFORNIAZero Waste

Waste Prevention & Market Development

Update on Carpet Stewardship MOU

August 8, 2006

John BlueAgenda Item 14

www.ciwmb.ca.gov