20 CALIFORNIA ANNUAL REPORT SUBMITTED BY Mattress Recycling Council California, LLC 501 Wythe Street Alexandria, VA 22314 SUBMITTED TO Department of Resources Recycling and Recovery (CalRecycle) 17 1001 I Street Sacramento, CA 95812 SUBMITTED ON July 1, 2018 REVISED ON Oct. 22, 2018 MRC received nearly 1.3 million units and diverted nearly 40 million pounds of material from disposal. This Report is organized to follow the individual provisions of 14 CCR § 18964(b) as follows: TABLE OF CONTENTS Contact Information 14 CCR § 18964(b)(1) ......................................................... 5 Executive Summary 14 CCR § 18964(b)(2) ........................................................ 6 Registered Manufacturers, Renovators, Retailers & Brands 14 CCR § 18964(b)(4) ....................................................................... 12 Used Mattress Collection, Transport & Processing 14 CCR § 18964(b)(3, 5, & 6)...................................................... 14 Coordination with Existing Infrastructure 14 CCR § 18964(b)(7)....................... 20 Program Objectives & Activities 14 CCR § 18964(b)(8) .................................... 24 Program Objectives & Progress ................................................................. 25 Quantitative Information on Subdivisions (b), (c), (d), (e), (f), (g), and (j) of Section 42990.1 of the Public Resources Code .......................... 34 (b) Quantity of mattresses disposed of in solid waste landfills .............. 34 (c) Quantity of discarded used mattresses collected for recycling in the program ............................................................. 34 (d) Quantity of used mattresses collected for recycling from different categories of sources ................................................ 34 (e) Quantity of each category of materials recycled .............................. 35 (f) Uses for the recycled materials ........................................................ 36 (g) Quantity of otherwise disposed of materials .................................... 39 (j) Total volume, number, and weight of used mattresses collected recycled, renovated, and reused ...................................... 47 – 3 – TABLE OF CONTENTS (Cont.) Qualitative and/or Quantitative Information on Subdivisions (g), (l), and (m) of Section 42987.1 of the Public Resources Code ............ 49 (g) Research to improve used mattress collection, dismantling, and recycling operations .................................................................. 49 (l) Participation of urban and rural local governments and permitted solid waste facilities in efforts to collect illegally dumped mattresses ......................................................................... 53 (m) Collection of used mattresses from low-income communities ........ 59 Financing Mechanism 14 CCR § 18964(b)(9) ................................................... 62 Revenue from the Mattress Recycling Charge ........................................... 63 Capital Costs .............................................................................................. 64 Education/Outreach Costs ......................................................................... 64 End-of-Life Used Mattress Management Costs ......................................... 65 Program Administration Costs .................................................................... 67 Reserves .................................................................................................... 69 Education & Outreach 14 CCR § 18964(b)(10) ................................................. 72 Audits 14 CCR §18964(b)(11) ........................................................................... 96 Advisory Committee Report 14 CCR § 18964(b)(12) ........................................ 98 APPENDIX A • Registered Manufacturers, Renovators & Retailers, and Brands .......................................................................................................101 APPENDIX B • Collection Sites, Recycling Facilities & Collection Events .......180 APPENDIX C • Program Operations Materials ................................................193 APPENDIX D • Education And Outreach Examples .........................................206 APPENDIX E • 2017 MRC Independent Financial Audit ..................................218 APPENDIX F • Advisory Committee Report .....................................................256 – 4 – Contact Information 14 CCR § 18964(b)(1) CONTACT INFORMATION 14 CCR § 18964(b)(1) CALRECYCLE REGULATIONS 14 CCR § 18964(b)(1) — Contact information. Identify the corporate officer of the mattress recycling organization responsible for annual report submittal. Ryan Trainer, President Mattress Recycling Council California, LLC 501 Wythe Street Alexandria, VA 22314 [email protected] Phone 1.855.229.1691 Executive Summary 14 CCR § 18964(b)(2) CALRECYCLE REGULATIONS 14 CCR § 18964(b)(2) — The purpose of the Executive Summary is to provide a broad understanding of the mattress recycling organization’s program as a whole and to put into context the data and information that will follow. Provide a brief description of the mattress recycling organization’s used mattress recovery efforts during the calendar year pursuant to section 18962. EXECUTIVE SUMMARY EXECUTIVE SUMMARY 14 CCR § 18964(b)(2) Overview of the Mattress and Recovery (CalRecycle) certified Recycling Council California, the Council as the mattress recycling LLC organization on July 2, 2014. On July California’s Used Mattress Recovery & 1, 2015, the Council proposed a Recycling Act, SB 254 (as amended), statewide mattress recycling plan (the Cal. Pub. Res. Code § 42985 (the Plan), budget, and recycling charge. Code), requires that mattress CalRecycle conditionally approved the producers, through a certified Plan and approved the initial budget “mattress recycling organization,” and recycling charge on October 1, create a statewide recycling program 2015, and formally approved the Plan (the Program) to collect mattresses on January 29, 2016. As required by and foundations (units) discarded in the Code, the Council launched the the state. The Code also provides that Program on December 30, 2015, 90 the Program will be funded by a visible days after CalRecycle conditionally recycling charge collected from approved the Plan. consumers and other purchasers on In addition to California, the Council the sale of each mattress and also administers statewide mattress foundation purchased for use in the recycling programs in two other states state, combat illegal dumping, and — Connecticut and Rhode Island. educate consumers and the industry Each of the three state programs has about the Code and benefits of similar objectives: mattress recycling. • Develop an effective statewide The International Sleep Products network of mattress collection and Association created the Mattress recycling locations Recycling Council (the Council), a non-profit organization under Section • Increase the number of mattresses 501(c)(3) of the Internal Revenue recycled in each state Code of 1986, to develop and administer the Program. The California Department of Resources Recycling – 7 – • Reduce the impact of illegally Increased number of mattresses dumped mattresses on local collected and recycled communities • The Program collected nearly 1.3 • Educate consumers, retailers, and million mattress and foundation units other stakeholders about the in 2017, surpassing the number of Program units collected in 2016 by 35%. • Minimize recycling costs for • The weight of material recycled consumers and governments also increased by 35% in 2017 to nearly 40 million pounds. Effective July 1, 2017, the Council created for each state program • A key to these increases was MRC’s separate limited liability companies in success in expanding its collection which the Council is the sole member, network throughout the state, and transferred all functions related to including both rural and urban areas. the Program to the Mattress Recycling In 2017, MRC added 43 collection Council California, LLC (MRC).1 sites to the Program, and hosted or participated in 74 community In promoting the Program among mattress collection events. By year consumers, MRC has branded itself as end, MRC's 165 collection sites and “Bye Bye Mattress.” 74 events served 53 out of California's 58 counties. This is a Second Year Program 39% growth from 2017 versus 2016. Highlights This growth has continued in 2018, In 2017, MRC focused on expanding with MRC now serving 56 counties. the collection network, increasing the number of mattresses collected and • MRC’s Illegally Dumped Mattress processed, expanding participation in Collection Initiative collected data the Illegally Dumped Mattress that will help MRC understand Collection Initiative, and improving where and how often illegal MRC’s communications with mattress dumping occurs. In 2017, 47 retailers and consumers. entities participated in this initiative (up by nearly 20% compared to Major accomplishments and activities 2016), increasing the number of in 2017 included: dumped units removed from California public spaces and rights- of-way by 77%. In addition to these significant year-over-year improvements, MRC has also 1 For simplicity, the term MRC includes California activities of the Council from January 1, 2017 through June 30, 2017, and of MRC from July 1, 2017 until December 31, 2017. – 8 – substantially increased the funding • To improve MRC’s and for this effort in hopes that it will