California Assembly Bill AB2398 Amended / Bill

 BILL NUMBER: AB 2398AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 28, 2010 AMENDED IN ASSEMBLY APRIL 14, 2010 INTRODUCED BY Assembly Member John A. Perez FEBRUARY 19, 2010 An act to  amend Section 12209 of the Public Contract Code, and to  add Chapter 20 (commencing with Section 42970) to Part 3 of Division 30 of the Public Resources Code, relating to recycling. LEGISLATIVE COUNSEL'S DIGEST AB 2398, as amended, John A. Perez. Product stewardship:  carpet.   carpet: public procurement.   The   (1)     The  California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, is required to reduce, recycle, and reuse solid waste generated in the state to the maximum extent feasible in an efficient cost-effective manner to conserve water, energy, and other natural resources. The bill would require, by September 30, 2011,  a producer or the carpet stewardship organization created by one or more producers of a carpet   a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization,  to submit a carpet stewardship plan to the department, which would be required to include specified elements, including  product goals and a collection rate for the carpet subject to the plan, calculated in a specified manner   a funding mechanism that provides sufficient funding to carry out the plan, including administrative, opera   tional, and capital costs of the plan  . The department would be required  to review a carpet stewardship plan submitted to the department and deem the plan either complete or incomplete within 45 days after receipt   to, among other things, within 60 days after the department receives a plan, review and determine whether the plan is complete and notify the submitter of its determination  . The bill would prohibit a  producer,   manufacturer,  wholesaler, or retailer, on and after  January 1, 2012   April 1, 2012  , from selling a carpet unless the plan for that carpet is  deemed complete by the department   in compliance   with the act' s requirements  . The act would require  a producer of carpet or  the carpet stewardship organization to  implement the carpet stewardship plan, including achieving the collection rate   meet specified targets in order to be in compliance  . Each  producer or carpet stewardship organization implementing a carpet stewardship plan   manufacturer of carpet sold in the state, individually or through a carpet stewardship organization,  would be required to prepare and submit to the department an annual report describing the activities carried out pursuant to the carpet stewardship plan. A  producer   manufacturer  or carpet stewardship organization submitting a carpet stewardship plan would be required to pay the department an  annual  administrative fee when submitting the plan for review and approval  and to pay an annual administrative fee  , as determined by the department. The bill would provide for the imposition of administrative civil penalties upon a  producer who does not comply with the bill's requirements or a producer, wholesaler, or retailer selling carpet in violation of the bill. The bill would create the Carpet Stewardship Account in the existing Integrated Waste Management Fund and would require that the administrative fees be deposited into that account and that the penalties be deposited into the Carpet Stewardship Penalty Subaccount that the bill would create in that account. The bill would authorize the fees and penalties to be expended, upon appropriation by the Legislature, to cover the department's program implementation costs and as incentives to enhance recyclability and redesign efforts and to reduce environmental and safety impacts of carpet   person who sells carpet in violation of the bill  .  (2) Existing law provides various procedures and requirements pertaining to the purchase of recycled items by the state, including, among other things, recycled paper products, plastic products, metal products, and paint.   This bill would additionally provide requirements for the purchase of carpet.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   The Legislature finds and declares all of the following:   (a) Discarded carpet is one of the 10 most prevalent waste materials in California landfills, equaling 3.2 percent of waste by volume disposed of in California in 2008. Because carpet is heavy and bulky, it imposes a significant solid waste management cost on local governments.   (b) In 2002 the carpet industry entered into a carpet memorandum of understanding (MOU) with the State of California to achieve a goal of diverting from landfills 40 percent of discarded carpet and recycling 20 percent of discarded carpet by 2012. Since 2002, however, the carpet recycling rate has never reached 5 percent and in 2008, the most recent year for which data are available, the state's carpet recycling rate was 4.3 percent.   (c) As part of its fulfillment of the state's obligations under the carpet MOU, the former Integrated Waste Management Board made loans to various carpet recycling businesses in the state. Those loans are now at risk, and employment in the carpet recycling sector has dropped in recent years due to the continuing low carpet recycling rate.   (d) Numerous products can be manufactured from recycled carpets, including carpet, carpet underlayment, automobile parts, picnic tables, park benches, and erosion control products.   (e) It is in the interest of the state to work with the carpet industry to take additional steps to increase the collection and recycling of discarded carpet into new products in order to reduce the environmental and economic impacts of carpet as a waste material and to create and sustain jobs in the state's carpet recycling industry.   SEC. 2.   Section 12209 of the   Public Contract Code   is amended to read:  12209. For purposes of this article, the following minimum content requirements apply: (a) Recycled paper products shall consist of at least 30 percent, by fiber weight, postconsumer fiber. (b) (1) Recycled printing and writing paper shall consist of at least 30 percent, by fiber weight, postconsumer fiber. (2) Printed newspapers that meet the requirements of Chapter 15 (commencing with Section 42750) of Part 3 of Division 30 of the Public Resources Code shall be considered in compliance with the requirements of this section. (c) For recycled compost, cocompost, and mulch, at least 80 percent of the product shall consist of materials, including, but not limited to, the materials listed in subdivision (c) of Section 12207, that would otherwise be normally disposed of in landfills. (d) For recycled glass, the total weight shall consist of at least 10 percent postconsumer material. (e) Rerefined lubricating oil shall have a base oil content consisting of at least 70 percent rerefined oil. (f) (1) For recycled plastic products, other than printer or duplication cartridges, the total weight shall consist of at least 10 percent postconsumer material. (2) Recycled printer or duplication cartridges shall comply with either the requirements set forth in subdivision (e) of Section 12156 or the general requirement for recycled plastic products set forth in paragraph (1). (g) Recycled paint shall have a recycled content consisting of at least 50 percent postconsumer paint. Preconsumer or secondary paint does not qualify as "recycled paint" pursuant to this subdivision. If paint containing 50 percent postconsumer content is unavailable, or is restricted by a local air quality management district, a state agency may substitute paint with at least 10 percent postconsumer content. (h) Recycled antifreeze fluid shall have a recycled content of at least 70 percent postconsumer materials. (i) Retreaded tires  must   shall  use an existing casing that has undergone an approved or accepted recapping or retreading process, in accordance with Chapter 7 (commencing with Section 42400) of Part 3 of Division 30 of the Public Resources Code. (j) For tire-derived products, the total content shall consist of at least 50 percent recycled used tires. (k) For recycled metal products, the total weight shall consist of at least 10 percent postconsumer material. (l) For reused or refurbished products, there is no minimum content requirement.  (m) For recycled carpet, the total weight, including both fiber and backing, shall consist of at least 25 percent postconsumer carpet.   SEC. 3.   Chapter 20 (commencing with Section 42970) is added to Part 3 of Division 30 of the   Public Resources Code   , to read:   CHAPTER 20. PRODUCT STEWARDSHIP FOR CARPETS 42970. The purpose of the carpet stewardship program established pursuant to this chapter is to require carpet manufacturers to develop and implement a program to increase the diversion of postconsumer carpet from landfills, increase the recyclability of carpets, and promote the recycling of postconsumer carpet into materials that are used to manufacture new products. 42971. For purposes of this chapter, and unless the context otherwise requires, the definitions in this section govern the construction of this chapter: (a) "Brand" means a name, symbol, word, or mark that identifies the carpet, rather than its components, and attributes the carpet to the owner or licensee of the brand as the manufacturer. (b) (1) "Carpet" means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials. (2) "Carpet" includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles. (3) "Carpet" does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet. (c) "Carpet stewardship organization" or "organization" means either of the following: (1) An organization appointed by one or more manufacturers to act as an agent on behalf of the manufacturer to design, submit, and administer a carpet stewardship plan pursuant to this chapter. (2) A carpet manufacturer that complies with this chapter as an individual manufacturer. (d) "Carpet stewardship plan" or "plan" means a plan written by an individual manufacturer or a carpet stewardship organization, on behalf of one or more manufacturers, that includes all of the information required by Section 42972. (e) "Department" means the Department of Resources Recycling and Recovery. (f) "Manufacturer" shall be determined, with regard to a carpet that is sold, offered for sale, or distributed in the state, as meaning one of the following: (1) The person who manufactures the carpet and who sells, offers for sale, or distributes that carpet in the state under that person's own name or brand. (2) If there is no person who sells, offers for sale, or distributes the carpet in the state under the person's own name or brand, the manufacturer of the carpet is the owner or licensee of a trademark or brand under which the carpet is sold or distributed in the state, whether or not the trademark is registered. (3) If there is no person who is a manufacturer of the carpet for the purpose of paragraphs (1) and (2), the manufacturer of that carpet is the person who imports the carpet into the state for sale or distribution. (g) "Program" means the system for the collection, transportation, recycling, and disposal of carpets pursuant to a completed carpet stewardship plan that is financed and managed or provided by an individual manufacturer or collectively by one or more manufacturers. (h) "Retailer" means a person who offers new carpet in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale at retail through any means, including remote offerings such as sales outlets, catalogs, or an Internet Web site. (i) "Sell" or "sales" means a transfer of title of a carpet for consideration, including a remote sale conducted through a sale outlet, catalog, or Internet Web site or similar electronic means, but does not include a lease. (j) "Wholesaler" means a person who offers new carpets for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the carpet is intended to be resold. 42972. (a) On or before September 30, 2011, a manufacturer of carpets sold in this state shall, individually or through a carpet stewardship organization, submit a carpet stewardship plan to the department that will do all of the following: (1) Develop and implement a program, including measurable goals established by the stewardship organization, that will increase the diversion of postconsumer carpet from landfills, increase the recyclability of carpets, and promote the recycling of postconsumer carpet into materials that are used to manufacture new products. (2) Meet the requirements of Section 42975. (3) Include a funding mechanism, consistent with subdivision (b), that provides sufficient funding to carry out the program, including the administrative, operational, and capital costs of the plan. (4) Include education and outreach efforts to consumers, retailers, and waste haulers to promote the segregated collection and recycling of postconsumer carpet. (b) (1) The funding mechanism required pursuant to paragraph (3) of subdivision (a) shall provide for an assessment per unit of carpet sold in the state, as determined in the plan, to be paid by each member of the carpet stewardship organization in an amount that cumulatively will adequately fund the program. The assessment shall be remitted to the carpet stewardship organization to be used to carry out the program. (2) The amount of the assessment and the anticipated revenues from the assessment shall be specified in the plan and shall be approved by the department as part of the plan. The assessment shall be sufficient to meet, but not exceed, the anticipated cost of carrying out the plan. 42973. Within 60 days after the department receives a plan submitted pursuant to Section 42972, it shall review the plan, determine whether it is complete, and notify the submitter of its determination. If the department notifies the submitter that the plan is not complete, the submitter shall revise and resubmit the plan within 60 days after receiving the notification. 42974. On and after April 1, 2012, a manufacturer, wholesaler, or retailer shall not offer a carpet for sale in this state or offer a carpet for promotional purposes in this state unless a plan submitted by an organization that includes the manufacturer of that carpet is in compliance with this chapter. 42975. (a) In order to achieve compliance with this chapter, a carpet stewardship organization shall demonstrate to the department that the following targets have been met: (1) The amount of postconsumer carpet recycled in the state shall equal or exceed 25 percent by January 1, 2017. (2) The amount of postconsumer carpet recycled in the state shall equal or exceed 50 percent by January 1, 2022. (b) The percentage of carpet that has been recycled shall be calculated by a method adopted by the department after consulting with carpet stewardship organizations and taking into account the information provided to the department pursuant to Section 42976. (c) If more than one organization submits a carpet stewardship plan pursuant to this chapter, the department shall use information submitted by the organization in its annual report pursuant to Section 42976 to determine the recycling rate attributable to each organization and shall determine compliance with this chapter accordingly. 42976. On or before July 1, 2013, and each year thereafter, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities since the previous report. The report shall include all of the following: (a) The total amount of carpet sold and postconsumer carpet collected, by volume and weight, in the state during the reporting period. (b) The total amount of postconsumer carpet recycled, by volume and weight, in the state during the reporting period. (c) The total cost of implementing the carpet stewardship program and other elements of the carpet stewardship plan. (d) An evaluation of the effectiveness of the program, its funding mechanism, and other elements of the plan and anticipated steps, if needed, to improve performance. 42977. (a) The carpet stewardship organization submitting a carpet stewardship plan shall pay the department an annual administrative fee. The department shall set the fee at an amount that, when paid by every carpet stewardship organization that submits a carpet stewardship plan, is adequate to cover the department's full costs of administering and enforcing this chapter. The department may establish a variable fee based on relevant factors, including, but not limited to, the portion of carpets sold in the state by members of the organization compared to the total amount of carpet sold in the state by all organizations submitting a carpet stewardship plan. (b) The total amount of annual fees collected pursuant to this section shall not exceed the amount necessary to recover costs incurred by the department in connection with the administration and enforcement of the requirements of this chapter. 42978. (a) A civil penalty up to the following amounts may be administratively imposed by the department on any person who sells or offers for sale a carpet that has been prohibited from sale pursuant to Section 42974: (1) One thousand dollars ($1,000) per violation. (2) Ten thousand dollars ($10,000) per violation if the violation is intentional, knowing, or negligent. (b) Any penalties collected by the department shall be used to offset the cost of administering and enforcing this chapter. 42979. This article does not limit, supersede, duplicate, or otherwise conflict with the authority of the Department of Toxic Substances Control under Section 25257.1 of the Health and Safety Code to fully implement Article 14 (commencing with Section 25251) of Chapter 6.5 of Division 20 of the Health and Safety Code, including the authority of the department to include a carpet in its product registry.   SECTION 1.   The Legislature finds and declares all of the following: (a) Recycling carpets results in greater green house gas (GHG) emission reductions than most other products. (b) Carpets accounted for 3.2 percent of waste by volume disposed of in California in 2008. (c) Despite nationwide and California memoranda of understanding to promote carpet recycling, the carpet recycling rate has dropped from 4.9 percent in 2007 to 4.3 percent in 2008. (d) The California carpet industry memorandum of understanding targets a recycling rate of between 20 and 25 percent by 2012. (e) Because other types of recycling programs have proven to have limited success, state and regional governments in Europe and Canada have adopted producer responsibility programs to redirect the responsibility for the end-of-life management of discarded hazardous and hard to manage products from local governments and retailers primarily to producers. (f) The former California Integrated Waste Management Board adopted an overall Framework for an Extended Producer Responsibility (EPR) guidance document as a policy priority in January 2008. (g) The program established by this act is intended to reduce costs to local government, to harmonize the state's producer responsibility obligations with other national and international programs, and to enhance the protection of public health and the environment through safer product design, use, and end-of-life management.   SEC. 2.   Chapter 20 (commencing with Section 42970) is added to Part 3 of Division 30 of the Public Resources Code, to read: CHAPTER 20. PRODUCT STEWARDSHIP FOR CARPETS 42970. For purposes of this chapter, and unless the context otherwise requires, the definitions in this chapter govern the construction of this chapter: (a) "Brand" means a name, symbol, word, or mark that identifies the carpet, rather than its components, and attributes the carpet to the owner or licensee of the brand as the producer. (b) (1) "Carpet" means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials. (2) "Carpet" includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles. (3) "Carpet" does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet. (c) "Carpet producer stewardship" means requiring the producer of a carpet, and all other entities involved in the distribution chain of a carpet, to share in the responsibility of reducing the life cycle impact of the carpet and its packaging, including requiring the producer who makes design and marketing decisions for the carpet to bear the primary responsibility for this reduction. (d) "Carpet stewardship organization" or "organization" means an organization appointed by one or more producers to act as an agent on behalf of the producer to design, submit, and administer a carpet stewardship plan pursuant to this chapter. (e) "Carpet stewardship plan" or "plan" means a plan written by an individual producer or a carpet stewardship organization, on behalf of one or more producers, that includes all of the information required by Section 42971. (f) "Collection rate" means a quantitative measure established in the carpet stewardship plan that establishes the amount of carpet required to be collected by the carpet stewardship system for that carpet by an established date. The collection rate is included as a component of the product goals for a carpet. (g) "Department" means the Department of Resources Recycling and Recovery. (h) "Producer" shall be determined, with regard to a carpet that is sold, offered for sale, or distributed in the state, as meaning one of the following: (1) The person who manufactures the carpet and who sells, offers for sale, or distributes that carpet in the state under that person's own name or brand. (2) If there is no person who sells, offers for sale, or distributes the carpet in the state under the person's own name or brand, the producer of the carpet is the owner or licensee of a trademark or brand under which the carpet is sold or distributed in the state, whether or not the trademark is registered. (3) If there is no person who is a producer of the carpet for purpose of paragraphs (1) and (2), the producer of that carpet is the person who imports the carpet into the state for sale or distribution. (i) "Product goal" means those qualitative or quantitative goals determined by the producer to measure improvements that reduce the life cycle impacts of a carpet. (j) "Program" means the system for the collection, transportation, recycling, and disposal of carpets pursuant to a completed carpet stewardship plan that is financed and managed or provided by an individual producer or collectively by one or more producers. (k) "Recycling rate" means a quantitative measure that establishes the amount of a collected carpet that is recycled as compared to the total amount of the carpet that is collected, including the amount of the carpet that is discarded for reuse, energy recovery, or safe disposal. (l) "Reporting period" means the period commencing January 1 and ending on December 31 of the same calendar year. (m) "Retailer" means a person who offers new carpet in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale at retail through any means, including remote offerings such as sales outlets, catalogs, or an Internet Web site. (n) "Reuse rate" means a quantitative measure that establishes the amount of a collected carpet that is reused as compared to the total amount of the covered carpet that is collected, including the amount of the carpet that is discarded by recycling, energy recovery, or safe disposal. (o) "Sell" or "sales" means a transfer of title of a carpet for consideration, including a remote sale conducted through a sale outlet, catalog, or Internet Web site or similar electronic means, but does not include a lease. (p) "Wholesaler" means a person who offers new carpets for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the carpet is intended to be resold. 42971. (a) On or before September 30, 2011, a producer or the carpet stewardship organization of a carpet shall submit a carpet stewardship plan to the department. (b) A producer, group of producers, or carpet stewardship organization shall consult with stakeholders during the development of the carpet stewardship plan, including soliciting stakeholder comments and responding to stakeholder comments prior to submitting the carpet stewardship plan. (c) Each carpet stewardship plan shall include, at a minimum, all of the following elements: (1) Contact information for all participating producers. (2) The collection rate for the carpets subject to the plan, which shall be calculated in the following manner, except as provided in Section 42973: (A) For the calendar year commencing January 1, 2014, the collection rate shall be 50 percent of the carpets sold by the producers subject to the plan during the previous calendar year. (B) On and after January 1, 2017, the collection rate shall be 70 percent of the carpets sold by the producers subject to the plan during the previous calendar year. (C) The plan shall have a target of achieving a 95 percent collection rate. (3) A description containing all of the following elements: (A) Brands of the carpets covered by the plan. (B) How the product goals will be achieved. (C) The annual schedule for achievement of the collection rate. (D) Convenient collection opportunities for consumers in all counties of the state. (E) Reuse rate and recycling rate for carpets. (F) Roles and responsibilities of key players along the distribution chain. (G) Procedures to be used for notifying retailers and wholesalers of the program. (4) Financing method selected to sustainably fund the implementation of the plan. (5) Education and outreach activities to maximize collection rates. (d) A producer or carpet stewardship organization shall contact cities, counties, districts, and regional agencies, in whose jurisdictions the program will be implemented, to do either, or both, of the following: (1) Enter into an agreement to reimburse the local public agency for the cost of collecting carpets. (2) Provide the local public agency with the location, hours, and contact information for the convenient collection points for carpets that are located within the county where the local agency is located and are consistent with the plan. 42972. (a) A carpet stewardship program shall be considered in compliance with this article only if it achieves the collection rate specified in a plan that has been deemed complete by the department pursuant to Section 42974. (b) If a program achieves a collection rate of 95 percent, the producer or carpet stewardship organization shall not be required to pay the annual fee imposed pursuant to subdivision (a) of Section 42979. 42973. A producer may petition the department for an adjustment to the collection rate. The department may grant an adjustment to the collection rate only if the department determines there are documented exigent circumstances that are beyond the control of the producer or carpet stewardship organization. 42974. (a) The department shall review a plan within 45 days after the date the plan is received and either deem the plan complete or incomplete. If the department does not deem the plan complete, the department shall notify the producer or organization that submitted the plan of the deficiencies and the producer or organization shall revise and resubmit the plan within 45 days after receiving the notification. If the department deems the plan complete, the department shall, within 45 days after receipt, notify the producer or organization that the submitted plan is complete. (b) The department shall make all carpet stewardship plans submitted to the department available to the public on the department' s Internet Web site. (c) A producer shall notify the department 30 days before instituting a significant or material change to a carpet stewardship plan. (d) On or before July 1, 2012, and on or before July 1 annually thereafter, the department shall post on its Internet Web site a listing of the brands of carpets for which the producer is in compliance with this article. 42975. On and after January 1, 2012, a producer, wholesaler, or retailer shall not offer a carpet for sale in this state or offer a carpet for promotional purposes in this state unless the plan submitted by the producer or carpet stewardship organization of that carpet has been deemed complete by the department pursuant to Section 42974. 42976. Upon receiving notification from the department pursuant to Section 42974 that a plan is complete, the producer or the carpet stewardship organization shall do all of the following: (a) Implement the plan, including, but not limited to, achieving the collection rate specified in the plan. (b) Pay the administrative fees imposed pursuant to subdivision (a) of Section 42979. (c) Submit the annual report required by Section 42978. 42977. A wholesaler or a retailer that distributes or sells carpets shall monitor the department's Internet Web site to determine if the sale of a producer's carpets is in compliance with this article. 42978. (a) On or before April 1, 2013, and every subsequent year thereafter, each producer or carpet stewardship organization implementing a plan shall prepare and submit to the department an annual report describing the activities carried out pursuant to the plan during the previous calendar year. The annual report shall include, but is not limited to, all of the following: (1) The extent to which each element of the plan specified in subdivision (c) of Section 42971 is attained, including, but not limited to, achieving the collection rate specified in the plan. (2) The actions that the producer will take during the next reporting period to meet the product goals specified in the plan that have not been met. (3) A report of the total sales data for carpets sold in the state for the previous calendar year. (b) The department shall review an annual report submitted pursuant to this section and shall deem it complete if the department determines the report contains the information required by this section. (c) If the department does not act on a report within 45 days of receipt, the report shall be deemed to be complete. (d) The department shall make all reports submitted to the department pursuant to this section available to the public on the department's Internet Web site. (e) If the collection rate for the carpets subject to the plan meets the collection rate specified in subdivision (b) of Section 42972, the report shall be submitted once every two years. 42979. (a) The producer or carpet stewardship organization submitting a carpet stewardship plan shall pay the department an annual administrative fee. The department shall set the fee at an amount that, when paid by every producer and carpet stewardship program that submits a carpet stewardship plan, is adequate to cover the department's full costs of administering and enforcing this chapter. The department may establish a variable fee based on relevant factors including, but not limited to, the portion of carpets produced by the fee payer compared to the total amount of carpet produced by all producers or stewardship organizations submitting a carpet stewardship plan. (b) The total amount of annual fees collected pursuant to this section shall not exceed the amount necessary to recover costs incurred by the department in connection with the administration and enforcement of the requirements of this chapter. 42980. (a) The Carpet Stewardship Account and the Carpet Stewardship Penalty Subaccount are hereby established in the Integrated Waste Management Fund. (b) All fees collected pursuant to this chapter shall be deposited in the Carpet Stewardship Account and may be expended by the department, upon appropriation by the Legislature, to cover the department's costs to implement this chapter. (c) All penalties collected pursuant to this chapter shall be deposited in the Carpet Stewardship Penalty Subaccount and may be expended by the department, upon appropriation by the Legislature, to cover the department's costs to implement this article. (d) All funds collected may be expended as incentives to enhance reuse, recyclability, and redesign efforts and to reduce environmental and safety impacts of carpet. 42981. (a) If, after holding a public hearing, the department finds that a producer has failed to make a good faith effort to comply with this chapter, including, but not limited to, failing to submit a plan pursuant to Section 42971 or failing to submit an annual report pursuant to Section 42978, the department shall issue a compliance order with a schedule for achieving compliance. (b) If, after issuing an order and schedule for compliance pursuant to subdivision (a), the department finds that the producer has failed to make a good faith effort to comply with this chapter, the department may impose an administrative civil penalty of five thousand dollars ($5,000) per day until the producer achieves compliance. (c) For purposes of this section, "good faith effort" means all reasonable and feasible efforts by a producer towards implementing the requirements of this chapter, including, but not limited to, meeting the performance goals specified in the plan. 42982. (a) In addition to the penalty specified in Section 42981, the department may impose an administrative civil penalty of five thousand dollars ($5,000) per day against a producer, wholesaler, or retailer who violates Section 42975. (b) A producer, wholesaler, or retailer that removes from sale any carpet within 90 days of discovery that it is not in compliance with this chapter shall not be deemed to be in violation of Section 42975. (c) Prior to enforcing any penalty pursuant to this section, the department shall issue a compliance order to the producer or retailer selling the carpet allowing 30 days from the date of the compliance order to cease sales of the carpet. 42983. This article does not limit, supersede, duplicate, or otherwise conflict with the authority of the Department of Toxic Substances Control under Section 25257.1 of the Health and Safety Code to fully implement Article 14 (commencing with Section 25251) of Chapter 6.5 of Division 20 of the Health and Safety Code, including the authority of the department to include a carpet in its product registry.