CARE unveils plan to support Cali recyclers affected by COVID-19

Home COVID-19 CARE unveils plan to support Cali recyclers affected by COVID-19

CARE logoDalton—Carpet America Recovery Effort (CARE) is taking a series of emergency actions to support and assist the California carpet recycling industry amid the COVID-19 pandemic. Ten actions have been approved by CARE’s oversight committee and reviewed with CalRecycle. Actions (listed below) include a one-time payment to recyclers, a temporary 90-day increased subsidy payment, accelerated payment schedule and relaxed reporting and proposed loan payment requirements.

“Cash flow considerations for the recycling community were our primary concern in forming this action plan,” said CARE executive director, Bob Peoples. “The current crisis, precipitated by the COVID-19 pandemic and the plunge in oil prices, has seriously interrupted the supply chain for new carpet sales and the flow of post-consumer carpet (PCC) materials into new products. Additionally, the automotive sector, a major user of post-consumer nylon carpet material, has been shut down. The depth and duration of the impact to our industry is currently unknown and cannot yet be quantified.”

The following six actions will be taken by CARE within the authority provided to it via statute and CARE’s approved Five-Year Plan.

  1. Issue a one-time payment to each qualified recycler, calculated as the average monthly subsidy received over last 12 months. CARE estimates the one-time payment will total approximately $1.13 million. This payment will not affect the cash reserve.
  2. Pay 80% of earned subsidies after initial reporting by recyclers (as opposed to the usual 40 to 45 days). The situation will be reassessed after 90 days.
  3. Monitor retail sales and PCC availability to aid recyclers in planning for dramatically reduced raw material flows.
  4. Institute an additional temporary $0.02/lb. subsidy for PCC collection for 90 days, effective April 1 (total $0.04/lb.) This adjustment will be in place for 90 days, through the end of June. CARE is not increasing the current approved Plan-based Collector Sorter Entrepreneur subsidy; it is providing a temporary collection incentive to address rapidly changing market conditions.
  5. Coordinate and communicate with other product stewardship groups to identify the best ways to tackle shared challenges.
  6. Suspend routine audits for 90 days. This applies to all recipients of California subsidy payments and does not suspend the requirement to comply with Agreed Upon Procedures (AUP). The AUP suspension does not apply to mills. CARE will revisit the status in 90 days to determine if a further delay is warranted.

In addition, CARE has requested that CalRecycle take the following actions:

  1. Designate Recycling as Essential Infrastructure and Essential Businesses.
  2. Suspend all Recycling Market Development Zone (RMDZ) loan payments (P&I) for six months. RMDZ loans are a major debt service requirement for many recyclers, including carpet. This would help with cash flow during the crisis.
  3. Support action to request that utilities not cut off service to any commercial enterprise for 90 days.
  4. Work with Governor Newsom’s staff to stop any commercial enterprise eviction actions for 90 days.

All qualified California subsidy recipients are eligible for these actions. CARE will be monitoring the situation carefully and considering if additional actions need to be taken. For complete details on these actions, see the CARE website.

Must Read

Torlys adds Microban with Cleaner Floors campaign

Toronto, Ontario—Torlys has launched “Cleaner Floors by Torlys,” a campaign focused on educating consumers on how to protect their flooring investment with top-to-bottom antimicrobial...

Fuel supply issues, driver shortages vex distributors

By Ken Ryan As summer approaches, floor covering distributors are on heightened alert over a series of transportation issues that may impact deliveries and eat...

Armstrong Flooring, Ohio Valley to part ways

Lancaster, Pa.— Armstrong Flooring and Ohio Valley Flooring have decided to go their separate ways. Effective July 3, 2021, the distributor will no longer...

NSI completes 35th R.I.S.E. home

Oberlin, Ohio—The Natural Stone Institute (NSI) provided natural stone and fabrication services for its 35th home with the Gary Sinise Foundation through its R.I.S.E program...

Välinge commits to FSC certification

Viken, Sweden—Välinge Innovation has shared new information about its sustainability mission and its FSC-certified Välinge Flooring products. Välinge said the FSC certification was a...

Unilin introduces pressed bevel technology

Waregem, Belgium— Unilin Technologies introduced its patented pressed bevel technology for resilient flooring to its continuously growing licensing base. With the new technology, the edges...
Some text some message..
X