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Committee advances bill to restructure tire recycling fee to fund cleanup and recycling
Summary
Senate Bill 238 would rename and restructure Arkansas—ees on tire sales to generate a dedicated revenue stream for tire recycling and abatement; sponsors said the change would make the existing tire program solvent and reduce higher cleanup costs for dumped tires. The committee passed the bill.
Sen. John Payton told the committee SB238 would restructure the state—ee that supports the waste-tire program, renaming the rim-removal fee to a tire-recycling fee and expanding its application to sales of new tires on vehicles and trailers.
Payton said the change restores provisions removed in a prior House amendment and would generate an estimated $2.5 million to $3.5 million in dedicated revenue to make the four tire-district program solvent. He described how collecting the fee at point of sale is cheaper for taxpayers than paying later abatement costs for dumped tires.
Craig Douglas, director of District 2—or the waste-tire program, told the committee that processors such as Nucor are taking crumb rubber and that transportation and local processing are major cost drivers. Douglas said DEQ-approved reimbursements currently average about $2.85 per tire while legislative audit showed net available revenue of about $2.31 per tire. He said District 2 expects to process about 1.5 million tires this year and that insufficient revenue hampers rural pickup and dump abatements.
Payton said the bill sets a $3 charge for regular tires, allows boards to set large-truck tire fees up to $5 and agricultural-tire fees up to $30, and that charging on the front end avoids higher abatement costs (Payton cited abatement figures around $9.67 per tire for stockpiles). After questions from senators, Payton moved to pass; the committee approved SB238 by voice vote.
The committee did not record a roll call in the transcript; the clerk announced the measure passed.
