A buried provision in Arkansas's environmental budget bill changes the economics of used tire disposal for manufacturers who generate scrap tires.
Most Arkansas manufacturers don't realize that a provision tucked into the state's environmental budget bill will directly affect how much they pay to dispose of used tires starting next year. HB1066, the Department of Energy and Environment appropriations bill for fiscal 2026–2027, contains a change to the state's used tire reimbursement program that shifts costs and creates new options for tire disposal.
Section 44 of HB1066 (found on page 22 of the bill) amends Arkansas Code § 8-9-405(a)(1) to raise the maximum reimbursement rate paid to used tire programs from its previous level to $2.31 per tire. This rate covers transportation, recycling, and disposal costs.
At the same time, the bill repeals a longstanding prohibition that prevented commercial tire generators—including manufacturers—from being charged additional fees by tire recyclers and transporters beyond the state reimbursement. Sections 42–43 of HB1066 remove this restriction.
For manufacturers generating used tires as a byproduct of operations or equipment use, this creates a two-part shift:
Higher reimbursement available: Tire recyclers and transporters now have more state funding per tire, which may improve service availability or reduce wait times for pickup in rural areas where programs have been limited.
Potential for additional charges: Without the prohibition on extra fees, recyclers and transporters can now charge manufacturers directly for services beyond what the state reimburses. This means your tire disposal costs could increase if you're charged supplemental fees for collection, handling, or transportation.
Manufacturers who work with tire retailers, recyclers, or waste management vendors should expect conversations about pricing starting in mid-2026.
The new reimbursement rate and the removal of the fee prohibition both become effective on July 1, 2026.
If your operation generates used tires, review your current disposal contracts and relationships with tire vendors or recyclers. Ask your providers whether they plan to implement additional charges once the prohibition lifts. Understanding the landscape before July 2026 gives you time to negotiate terms or explore alternative disposal partners.
Manufacturers in industries that use significant tire inventory—automotive suppliers, equipment manufacturers, logistics operations—should flag this date internally and include it in procurement planning for the fiscal year beginning July 2026.
Source: HB1066, An Act For The Department Of Energy And Environment - Division Of Environmental Quality Appropriation For The 2026-2027 Fiscal Year, Sections 42–44, Page 22.