CARE Releases New Assessment Rates, Pending CalRecycle Approval
Dalton, GA, November 20, 2024-Pending CalRecycle approval, the California Carpet Assessment will increase on February 1, 2025.
If approved by CalRecycle, the new assessment amounts will be: broadloom, $1.05/square yard from $0.96/square yard; carpet tile, $1.49/square yard from $1.40/square yard.
The most recent assessment request was submitted to CalRecycle on November 8th. CalRecycle will review
CalRecycle’s director has 60 days to approve, conditionally approve, or disapprove CARE’s plan amendment (by January 7, 2025.)
CARE executive director Bob Peoples adds some background to the need for an assessment increase, “CARE has been asked why the assessment continues to climb. Here is a high-level summary of the factors driving the increase.
- CalRecycle put a new demand that we build to a six-month reserve balance by the end of 2025. That is a huge 1-year lift requiring us to add approximately $13M dollars in 2025.
- Program growth and success means higher costs.
- A new union earmark of up to 8% of revenue annually is going to be a new liability of up to $4M per year! That equates to about 8 cents per square yard based on current sales.
- Sales continue to decline. Thus, the base over which to spread the increased costs keeps shrinking.
- Inflation has contributed but is expected to have a smaller impact in 2025.
The new law going into effect in January will add additional costs down the road.