California Signs Carpet Stewardship Bill Into Law

California recently signed into law bill AB 2398, Carpet Stewardship Bill. The law, sponsored by
Assembly Speaker John A. Perez, D-Los Angeles, offers an incentive to entrepreneurs and inventors
who produce marketable products from post-consumer carpet. The bill also generates revenue through
an assessment of 5 cents per square yard on all carpet sold in California. In addition, carpet
manufacturers will have to establish a stewardship plan with the state for recycling carpet. The
plan includes consumer education efforts, fee assessments, and progress measuring and reporting.

Carpet America Recovery Effort™ (CARE) — a non-profit organization that comprises
manufacturers, recycling entrepreneurs and government agencies, and works to find market-based
solutions for recycling carpet and diverting it from landfills — was listed in the bill as the
carpet industry’s designated stewardship organization. CARE will work with California regulatory
agencies to help affected manufacturers create their stewardship plans. The organization also will
work with CalRecycle to increase carpet recycling through a funding mechanism included in the bill.

Bill AB 2398 differs from other extended producer responsibility legislation in that it
offers financial incentives to encourage the reuse of old carpet.

October 5, 2010