A provision buried in Arkansas's environmental appropriations bill will change how much tire retailers and processors are paid—and what fees they can charge.
Most Arkansas manufacturing owners don't realize that a provision tucked into HB1066—the Department of Energy and Environment appropriations bill—directly affects how much they'll pay to dispose of used tires and what their tire suppliers can charge them.
Effective July 1, 2026, Arkansas is raising the maximum reimbursement rate paid to used tire programs from its previous level to $2.31 per tire. This covers transportation, recycling, and disposal costs. The change appears in Section 44 of HB1066 (page 22) and amends Arkansas Code § 8-9-405(a)(1).
At the same time, the bill repeals the fee-stacking prohibition that was previously in place under § 8-9-404(d)(3)(B) and § 8-9-404(e). That prohibition had prevented commercial generators—including manufacturers—from being charged multiple fees for the same used tires.
If your manufacturing operation generates used tires, you need to understand two things:
First, the reimbursement increase: Tire retailers and processors who handle your waste tires will now receive up to $2.31 per tire from the state program. This higher reimbursement rate may reduce the out-of-pocket cost they pass along to you—or it may not, depending on their own pricing structures and what the market will bear. It's worth asking your tire supplier how this change affects your invoices.
Second, the fee-stacking change: The repeal of the fee-stacking prohibition is more significant. Previously, you couldn't be charged multiple fees for handling the same tire. That protection is now gone. Starting July 1, 2026, commercial generators could potentially face separate charges for collection, transportation, and processing—charges that previously would have been bundled or prohibited from stacking. This could increase your total disposal costs even as the state reimbursement rate rises.
Both changes take effect on July 1, 2026. You have time to review your tire disposal contracts and understand what your current arrangements look like, but you should not wait until June to ask questions. If you work with a tire retailer or processor, now is the time to clarify whether and how they plan to adjust their pricing under the new rules.
Review your existing tire disposal agreements and ask your supplier directly how HB1066 affects your costs. The higher reimbursement rate *could* benefit you, but the removal of the fee-stacking prohibition creates uncertainty. Clarity now prevents surprises later.
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; Arkansas Code § 8-9-405(a)(1), § 8-9-404(d)(3)(B), and § 8-9-404(e).