AB 729 (Chu)—Carpet Recycling

Overview: This bill revises the Product Stewardship for Carpets Program increase accountability and accomplish the state’s mattress recycling goals.

CAW Position: Support

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Status: Signed by Governor

In Context: According to the author, “California has led the way with its flagship carpet recycling program. My bill from 2017, AB 1158, outlined specific targets and gave the State the authority to set future targets for carpet recycling. However, the State needs additional tools to provide a backstop in the case a plan is inadequate to meet set recycling goals. Currently, there is no mechanism to continue the program if a stewardship plan submitted by manufacturers is disapproved, AB 729 will allow for a “bridge” plan to avoid disruptions in our carpet recycling infrastructure and protect consumer fees if a plan is disapproved or revoked.”

This bill is intended to address a shortcoming that has been identified in the state’s product stewardship programs – what happens to the fee money collected from consumers if the organization is unable to continue program operations, either through an enforcement action by CalRecycle or if the organization is dissolved or unwilling to continue operations. Particularly, given the complex enforcement history in this program, it is important that the state has a mechanism to oversee funds if CalRecycle does not grant additional extensions to CARE after the current September 1st deadline to preserve California’s carpet recycling infrastructure and protect California consumers.

Under AB 729, if a plan is terminated or revoked and CalRecycle does not approve a new carpet stewardship plan within one year, CalRecycle would be authorized to modify the previously approved plan and take over the program.

Bill Summary: Among other things, AB 1583:

  • Require a carpet stewardship organization to include in the carpet stewardship plan a contingency plan should the carpet stewardship plan expire without approval of a new carpet stewardship plan or should the carpet stewardship plan be revoked. The bill would require a carpet stewardship organization to set up a trust fund or an escrow account, into which the bill would require the organization to deposit all unexpended funds and ongoing consumer assessments, for use in the event that the carpet stewardship plan terminates or is revoked. The bill would require, if a carpet stewardship plan is revoked or terminated, the trustee or escrow agent to accept carpet stewardship assessment payments directly from manufacturers and to make payments from the trust fund or escrow account as the department directs, in writing, to implement the most recently approved carpet stewardship plan. The bill would authorize the department, if a new carpet stewardship plan has not been approved within one year after termination or revocation, to make modifications to the previously approved plan, as it deems necessary, and continue to direct payments from the trust fund or escrow account to implement the modified plan.

  • Repeal certain provisions relating to the carpet stewardship assessment and would replace the assessment with differential assessments that take into account the financial burden that a particular carpet material has on the stewardship program, and the amount of postconsumer recycled content contained in a particular carpet, as prescribed.

  • Increase the administrative penalties from $1,000 per day to $5,000 per day.

Current language, analysis, and votes

Supporters:

  • National Stewardship Action Council (Sponsor)

  • Californians Against Waste

CAW Staff Contact: Robert Nunez, (916)443-5422