Panel endorses scrap-tire bill

Added fees to benefit disposal efforts, supporters say

Proposed legislation that would change Arkansas' system of how it handles old tires is a good start toward fixing longtime problems of illegal dumping and a lack of funds for disposal, solid waste officials said Tuesday.

Opponents said the legislation would cost some consumers more money and would impose more requirements on used-tire dealers.

The House Public Health, Welfare and Labor Committee on Tuesday morning voted 12-4 vote in favor of House Bill 1267 sponsored by Rep. Lanny Fite, R-Benton. The committee voted Tuesday after little discussion, a week after spending nearly two hours debating the bill.

At both committee meetings, Jan. 31 and Tuesday, the bill was accompanied by amendments designed to assuage concerns from county and solid waste district officials. One amendment removed language that explicitly stated the Arkansas Department of Environmental Quality would not operate the state's solid waste program. Another addressed concerns about creating an electronic tire manifest system in a state where not all tire dealers have computers.

Officials with Regional Recycling and Waste Reduction District -- the state solid waste district in Pulaski County -- warmed up to the bill after initial concerns that included their limited involvement in writing the legislation.

Desi Ledbetter, district comptroller and an illegal dumps control officer, said an increase in tire funding should help districts and that solid waste leaders had been looking to "rein in" used-tire dealers whose businesses have eluded the state's scrap-tire fee program.

"Accountability -- everybody favored that," Ledbetter said.

Andrew Armstrong, director of the Southeast Arkansas Waste Tire Management District, and County Judge Robert Akin of Drew County said they hope to work with the department on changing the state regulations for the new program if the measure passes. Armstrong said that while they've had concerns about the bill, more funds for tire districts would help them stop funneling non-tire funds into their tire programs in an effort to remain solvent.

"[The bill is] the best we have right now," Akin said.

Environmental Quality Department Director Becky Keogh said the bill would increase accountability by using technology to track where tires are coming and going, as well as increase efficiency in the program.

The bill faced two days of questioning from the committee and comment from the public. That followed four hours of talks Jan. 30 among lawmakers and county judges to hash out an amendment that would get more county judges on board. The County Judges' Association of Arkansas voted to support the bill Monday at its annual gathering.

The state's waste-tire program is operated by a dozen regional tire districts funded by the Arkansas Department of Environmental Quality. Funds for each district are currently based in part on the population of the district's coverage area and in part on the number of tires the district reports processing.

Waste tires have been an ongoing issue. Some districts have lost money on their programs, some have reported processing more tires than they're selling, and others have been cited for having what constitutes an illegal tire dump. Gov. Asa Hutchinson announced in December that a bill overhauling the state's scrap-tire program would be among his legislative agenda items.

While nearly everyone who spoke Jan. 31 acknowledged shortcomings in the state's current system, not everyone was on board with how the bill proposed to remedy those shortcomings.

Some argued the bill's suggested reimbursement per tire to solid waste districts is lower than the cost to dispose of each tire and that the bill could incentivize illegal dumping by placing more requirements on tire dealers and by charging customers a fee for used tires.

County Judge Robert Griffin of Independence County was concerned that his solid waste district would receive less money under the new disbursal structure because of the district's use of a monofill -- an underground pit similar to a landfill -- to dispose of tires. Monofills accept only one type of waste.

"They're going to cut the funding in half," he said at the Jan. 31 meeting.

The bill requires solid waste districts to work with the department to determine each district's cost of disposal for each tire. Not every district knows that cost, department officials said. The fees also provide tire dealers with funding to implement waste tire requirements, department officials said.

The bill would place a $3 rim fee on new passenger car tires and a $1 rim fee on used tires -- meaning those fees would be charged every time a tire is placed on a car -- beginning Jan. 1. Currently, $2 is charged per new passenger car tire and $5 is charged per new truck tire at the point of sale, which critics have noted leaves out used tires.

Department officials have said the new fee structure could as much as double the state's $5 million revenue in tire fees, leaving more money to send to districts in the form of grants to clean up tire dumps.

The bill would establish an electronic manifest system that would track tire shipments. Tire dealers, haulers and processing sites would have to register with the state and report how many tires they send or receive.

The bill also would distribute funds based on the district's method of tire disposal. If a district sent tires to a landfill or a monofill, the district would get 75 cents per tire, with the amount adjusted for larger tires. A district that recycled or reused tires would receive $1.25. Solid waste district officials have questioned those numbers -- some say they spend more than 75 cents to send tires to landfills, or more than $1.25 to recycle them.

The committee heard testimony only from R.D. Hopper, owner of Sonny's Auto Salvage in Jacksonville and president of the Automotive Recyclers Association, during its 15-minute consideration of the bill Tuesday. Hopper was concerned that the used-tire fee would raise costs for consumers of used tires.

Rep. John Payton, R-Wilburn, agreed with Hopper. Wilburn, who is also a car dealer, joined three representatives on the panel in voting against the bill.

Metro on 02/08/2017

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