Committee backs plan to privatize tire disposal framework, shrink state fee and shift costs to retailers

Rep. Jeremy Waldridge and backers brought House Bill 1982 to the committee to change Arkansas’ approach to waste‑tire collection and processing. The bill reduces the statewide rim removal/used‑tire retail fee from $3.00 to $1.50 (with a later option to reduce to $0.75), eliminates the tire districts’ control that has limited private competition, and permits retailers to pass disposal costs to consumers.

Supporters argued the current system is broken, unsustainably funded and effectively monopolized by district contracts. Shane Corey, Secretary for the Arkansas Department of Energy & Environment, told members the proposal “reduces the state fee” and “limits government involvement” while creating opportunities for beneficial reuse by private industry, citing emerging demand from major industrial users. Greene County Judge Rusty McMillan emphasized local experience with uneven hauling costs and cross‑border disposal in Missouri, providing examples where disposal costs are lower across state lines.

Opponents, including Craig Douglas (director, Tire District 2) and district leadership, warned the private market approach will raise consumer tire prices and create service gaps in rural counties. Douglas testified that retailers and collection centers likely would pass increased hauling contracts directly to consumers—estimating a $15–$20 increase per tire in some cases—and that the bill does not guarantee continued service to every county. He also noted that under the bill retailers’ administrative retention would drop from 5% of the fee to 2% of $1.50, worsening administrative burdens on rural businesses.

DEQ and industry witnesses said the change aims to allow beneficial reuse channels (e.g., steelmaker Nucor) to process tire material privately and to free the trust fund to be used for abatement and monitoring. Proponents said the trust fund would still receive a portion of receipts and that $3 million per year could be directed to abatement programs under the new model.

The committee adopted the bill after debate; members voted and the chair announced, “Aye. Ayes have it.” Supporters highlighted market competition and decreased state fee; opponents warned of higher consumer costs and uneven rural service.

Provenance evidence (selected):

"House Bill 19 82 is a bill... to allow competition and allow for a better product for Arkansans." — Jeremy Waldridge (sponsor)

"There is no increase in the fee. That is correct. However, our estimates ... is that the cost of the tire would go up, as much as 15 to $20 per tire, on any new sale to the consumer." — Craig Douglas, Director, Tire District 2 (opponent)

Ending: The committee voted to pass the bill; proponents said it will stimulate competition and reuse markets, while tire districts urged close monitoring for consumer price and rural service impacts.