Don’t get ‘called on the carpet’ over AB863 and AB2398: Understand the impact on Flooring Replacements for Home Owners and Managers Carpet.&;

As Realtors in California, staying informed about current legislation is crucial to ensuring your community remains in compliance with state laws and embraces sustainable practices. AB 863 (signed into law September 27, 2024) and AB 2398 (signed into law in 2014) are pieces of legislation aimed at reducing the environmental impact of used 
carpets by promoting the recycling of old carpets and carpet waste going to landfills. Understanding the scope and details of these laws can help Realtors provide valuable guidance for homeowners to streamline carpet recycling efforts so they contribute to California’s efforts of environmental sustainability.  

On January 1, 2025, AB863 takes effect. Building on the foundation set by AB 2398, AB 863 further strengthens the California Carpet Stewardship Program. Stricter requirements, increased recycling goals, and expanded infrastructure are brought forward in this new legislation in hopes that carpet recycling is more efficient and 
effective.

Here are the key changes and impacts of AB 863 to be mindful of. AB 863 raises the bar for carpet recycling in California. It sets even more aggressive targets for the amount of carpet that must be recycled, with the goal of significantly reducing the volume of carpet waste sent to landfills. These increased targets push the industry toward more sustainable practices and ensure that the program makes a greater impact on reducing carpet waste.

One of the major outcomes of AB 863 is the expansion of carpet recycling infrastructure in California. The law mandates that additional collection points, recycling centers, and drop-off events be created throughout the state. This makes it easier for homeowners to recycle old carpets. 

AB 863 imposes stricter reporting requirements on manufacturers. They are now required to track and report on the amount of carpet they collect and recycle. This increased transparency helps to ensure that manufacturers are meeting their recycling obligations and encourages more accountability within the industry. The law also encourages the development of new technologies that can improve the efficiency of carpet recycling. This could mean more innovative ways to process old carpets, which in turn leads to more recycled material being used in new products. Homeowners replacing old carpets in their homes may soon find more sustainable options on the market due to these technological advancements. Many major flooring manufacturers already sell a variety 
of products that are made up of recycled carpet content.

 
For Realtors, this law not only contributes to a cleaner environment but may also result in lower disposal costs in the long term, as less carpet waste ends up in landfills, and in the dumpsters near your clients’ common areas. The most practical implication of AB863 for homeowners and property managers is to make sure all used carpet removed from residences are responsible for disposed of by dropping it off at an approved recipient location.

The current list of Carpet Recovery take-back centers within Orange County is listed below. 
• ORANGE Aquafil Carpet Collection – Anaheim 
1315 South Claudina Street Anaheim, CA 92805  
Ph: 602-562-0444         
www.aquafil.com/locations/acc-anaheim-california/

• B&B Carpets and Flooring  
5626 Corporate Avenue Cypress, CA 90630  
Ph: 562-428-7589  

• California Cushion Company  
1205 West Collins Avenue Orange, CA 92867  
Ph: 714-538-5340  

• CR Transfer and Material Recovery Facility  
11232 Knott Avenue Stanton, CA 90068  
Ph: 714-890-6300  

• Madison Materials  
1035 East 4th Street Santa Ana, CA 92701  
Ph: 714-664-0159  

• Magic Carpet  
601-B West Lambert Road, #2951 Brea, CA 92821 
Ph: 714-255-0537  

• Michael’s Carpets  
9005 Adams Avenue Huntington Beach, CA 92646 
Ph: 714-962-6569  

• Republic Services  
2740 East Coronado Street Anaheim, CA 92806 
Ph: 714-238-3344  

• Sunset Transfer Station  
16122 Construction Circle West Irvine, CA 92606 
Ph: 949-654-1562 
(Reference: carpetrecovery.org/California/ca-service/ )

Note: OC Recycling, Recycle from Home, and OC Corps are recycling centers that do Not take used carpet. They only take CRV materials like bottles, cans, and some electronics. 
As 2025 progresses, additional drop-off points, collection events, and retail take-back programs are anticipated. It is very helpful towards increasing recycling levels for used carpets when Realtors help by educating homeowners on which recycling centers will receive used carpets that are near their homes. If there is a recycling center closer 
that is not on the list, it is wise to call ahead and ensure that they will take used carpets.

As AB 863 strengthens the recycling program, manufacturers may pass on the costs of recycling and compliance through higher prices for new carpets or small disposal fees. While this could slightly increase the cost of carpet replacement, it’s important for realtors to understand that the long-term benefits include less waste and a cleaner, 
more sustainable community. Since AB2398 California carpet retailers have been required to add a Carpet Differential Assessment fee onto carpet sales to be in compliance with the California Carpet Stewardship Program. The current Carpet Differential Assessment is as stated below:

NEW UPDATE AS OF FEB.1 2025 BELOW

Differential Assessment levels as of February 1, 2025 as per Approved by Cal Recycle 

Carpet Material 
* 10% or More is Post Consumer Content 

BROADLOOM = $ 1.05 per square yard 

CARPET TILE = $ 1.49 per square yard 

*Less than 10% Post Consumer Content

BROADLOOM = $ 0.96 per square yard  

CARPET TILE = $ 1.40 per square yard 

Note: Compliance with the assessments is compulsory under California law. 

Assessments are based on two things; first whether it is a broadloom or carpet tile product, and second how much post-consumer content is inside the overall content of the carpet being installed. These assessments are paid for by the manufacturers, and they may be passed through to the end user. Assessment amounts are not a taxable amount on a client invoice. Carpet retailers face penalties of hefty fines if 
they do not comply.

AB 863 promotes the use of recycled materials, which means that new carpets on the market may increasingly feature recycled fiber or other sustainable materials. This gives homeowners the opportunity to make eco-friendly choices when replacing carpets in their homes or in common areas, enhancing the HOA’s overall sustainability profile. Examples of sustainable flooring is engineered Bamboo as offered by CALI floors, and engineered Cork offered by WeCork. 

If, as a reader, you are not familiar with the predecessor legislation to AB863, which is AB2398, here is some basic information about it to assist with explaining the motivation behind the creation of this new law. 
In 2014 the California Carpet Stewardship Program was created because of AB2398. Prior to this, discarded carpets represented a significant portion of our landfill waste. It was a groundbreaking effort to address the large volume of carpet waste generated each year in California. It has had a very positive result. This program has hit significant milestones including increasing the State of California’s carpet recycling rate from four percent in 2012 
to forty-one percent in 2024, and collecting 1.2 billion pounds of post-consumer carpet waste has been collected across the state. AB 2398 aimed to move manufacturers to take responsibility for the aftereffects of the products they produce and encouraging them to create new products using recycled material in their content – both of which are happening today.

Carpet manufacturers are now required to pay fees that fund the recycling and disposal of used carpets. These fees are designed to create a system where manufacturers are financially responsible for their products after they’ve reached the end of their useful life. This helps to ensure that carpets do not simply end up in landfills. 
Ambitious goals set for the carpet recycling program, with the aim of diverting old carpets from landfills and repurposing them into new products.  
The law created a structured framework for carpet collection and recycling, involving local recycling programs, carpet retailers, and other businesses. It encouraged the establishment of carpet recycling centers and drop-off points where homeowners could dispose of their old carpets responsibly. As part of its mandate, AB 2398 also called for efforts to educate the public about carpet recycling and the environmental benefits of diverting carpet waste from landfills.  

Practical Steps for Realtors 
Here are some steps you can take to ensure that your community is actively participating in carpet recycling efforts: 
1. Educate Homeowners: Share information about AB 863 and AB 2398 through newsletters, community meetings, and HOA communications. Explain the benefits of carpet recycling and the available options for recycling old carpets. The more informed your residents are, the more likely they are to engage in sustainable practices, and you won’t find used carpet in places that it shouldn’t be. 
2. Partner with Carpet Retailers: Work with local carpet retailers and contractors to ensure they offer carpet recycling services. Many retailers such as Floor Coverings International now provide take-back programs, where they will collect old carpets for recycling when new carpets are purchased. This can make the replacement process smoother for homeowners and ensure that carpets are recycled properly.  
3. Promote Sustainable Flooring Options: Encourage homeowners to consider purchasing carpets made from recycled materials or other sustainable flooring options. Highlighting eco-friendly choices, such as engineered bamboo or cork, during community-wide renovations or individual carpet replacements can help to diminish the total amount of carpet in use at all.