The California Carpet Stewardship Program reported that carpet collections increased in third quarter 2023 while recycled output decreased slightly. 

A combination of factors resulted in the recycling rate declining to 33%, the first drop in over 7.5 years.

The slowdown in the residential sector – which makes up about 86% of sales – continues to impact the collection of carpet. Sales in third quarter were 14.4 million square yards and 1 million square yards below budget, resulting in a lower revenue stream than expected. The residential sector slowdown continues to impact the collection of carpet, despite adding 17 new public drop-off sites year to date. In addition, the pad markets, while not covered by the carpet steward law, have collapsed putting further financial pressure on recyclers. Virgin resin prices remain at decade lows and oil prices have declined.

Overall, 77% of expenses were paid out in the form of subsides and 75% of subsidies were paid to California recyclers. An analysis of all expenses paid in California is underway. Revenue exceeded expenses due to the April assessment increase. Thus, the fund balance ended the quarter at $3.0 million, up by $1.2 million Q2. On November 21, CalRecycle approved an assessment increase effect January 1, 2024. This increase is necessary to meet the new reserve requirement of the 2023-2027 approved plan.

Visit carpetrecovery.org for more information.