A provision buried in Arkansas's environmental budget bill increases what tire programs are paid to handle used tires—and it takes effect next summer.
Most Arkansas manufacturers and tire retailers don't realize that a quiet change in state law is about to put more money in their pockets. Buried in HB1066, the Department of Energy and Environment appropriations bill, is a raise to the statutory reimbursement rate paid for handling used tires. If your business collects, processes, or recycles used tires, this matters.
HB1066 raises the reimbursement cap for used tire programs from its previous level to $2.31 per tire, effective July 1, 2026. This is found in Section 44 of the bill (page 22).
Arkansas's used tire recycling system works through a network of tire retailers, processors, and waste management operators who collect and handle end-of-life tires. The state reimburses these businesses for that work. The reimbursement rate is the per-tire amount the state will pay out of its environmental fund.
A higher reimbursement rate means participating businesses recover more of their handling costs per tire processed. For small operations running on thin margins, that difference compounds quickly across hundreds or thousands of tires annually.
This applies directly to:
If your business is already in Arkansas's used tire program, you'll see the increase automatically when the new rate takes effect. If you've avoided the program because reimbursement didn't cover your costs, the higher rate might change that calculation.
The effective date is July 1, 2026. That gives you time to plan, but not unlimited time.
If you're already participating: track your current per-tire handling costs and compare them to the new $2.31 rate. You may be able to adjust your pricing or operations once the increase takes effect.
If you're not in the program: contact the Arkansas Department of Energy and Environment, Division of Environmental Quality, to understand enrollment requirements and whether the new rate makes participation viable for your operation. The reimbursement structure and eligibility rules haven't changed—only the per-tire amount.
If you handle tires but aren't sure whether you're subject to Arkansas's used tire regulations, now is a good time to verify your compliance status. The rate increase is a signal that the state is committed to this program, and enforcement tends to follow investment.
This is a straightforward cost adjustment, not a new requirement. But for businesses already managing used tires, it's real money. For those on the fence about participation, it's worth a second look at the numbers.
Source: HB1066—An Act For The Department Of Energy And Environment - Division Of Environmental Quality Appropriation For The 2026-2027 Fiscal Year, Section 44, Page 22.