014.08.18 Ark. Code R. 002

Current through Register Vol. 49, No. 10, October, 2024

Rule 014.08.18-002

CHAPTER 1 :GENERAL PROVISIONS

Reg. 36.101 Title, Implementation, and Administration

(A) This regulation shall be known and may be cited as the "Tire Accountability Program."

(B) On the effective date of this regulation, the Arkansas Department of Environmental Quality (ADEQ) shall implement the Tire Accountability Program.

(C) On or before January 1, 2018, and thereafter, the ADEQ shall administer the Tire Accountability Program in accordance with this regulation.

Reg. 36.102 Purpose

(A) The purpose of the Tire Accountability Program is to:

(1) Reimburse used-tire programs for used tire recycling and disposal costs;

(2) Incentivize recycling used tires collected;

(3) Provide accountability for the disbursement of moneys to used-tire programs; and

(4) Otherwise improve the sustainability of used-tire programs.

(B) The purpose of this regulation is to:

(1) Protect the public health, welfare, and the state's environmental quality by promulgating regulations for the hauling, collection, storage, and recycling or disposal of recyclable tires, waste tires, and used tires culled for resale;

(2) Provide accountability and sustainability for used-tire programs by requiring use of the electronic uniform used tire manifest system developed by ADEQ and business plans for used-tire programs;

(3) Promote recycling and reuse of used tires;

(4) Equalize the application of fees for all tires removed from rims; and

(5) Ensure that reimbursements for used-tire programs are related to the overall used-tire program goals.

Reg. 36.103 Legislative Intent

The General Assembly made the following determinations related to used tires:

(1) If not properly managed, used tires pose a potential threat to human health and safety and the environment because used tires:

(a) Are a known breeding habitat for mosquitoes and other disease-transmitting vectors; and

(b) Pose substantial fire hazards;

(2) The state must have a used-tire program for recyclable tires, waste tires, and used tires culled for resale that is accountable, effective, and efficient; and

(3) The primary goal of the used-tire program is to recycle or put to beneficial use as many used tires as possible.

Reg. 36.104 Authority

The Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq., created in Act 317 of 2017 authorizes the Arkansas Pollution Control and Ecology Commission (Commission) to adopt regulations necessary for ADEQ to implement and administer the Tire Accountability Program.

Reg. 36.105 Applicability

A person who receives funding under Commission Regulation 36, tire collection centers, tire retailers, tire processing facilities, tire transporters, tire generators, waste-tire sites, and commercial generators, are subject to:

(1) All provisions in Arkansas Code Title 8, Chapter 1 and Title 8, Chapter 4, Subchapters 1 and 2 concerning permits, licensing, inspections, and procedures;

(2) Arkansas Code §§ 8-9-105, 8-6-204, 8-6-205, and 8-6-207(a)(6) concerning penalties and enforcement; and

(3) All applicable regulations promulgated by the Arkansas Pollution Control and Ecology Commission.

Reg. 36.106 Inter-district Used-Tire Programs

(A) An inter-district used-tire program shall:

(1) Be formed using written agreements signed by the chair of each regional solid waste management board in the Inter-district;

(2) Have a board of directors composed of the chair of each regional solid waste management board or his or her designee;

(3) Elect a person to serve as the chair of the inter-district used-tire program; and

(4) Specify the exclusive entity that receives payment from the Used Tire Recycling Fund from ADEQ.

(B)

(1) If a new inter-district is formed on or after January 1, 2018, or a regional solid waste management board is added to or removed from the inter-district that existed on or after January 1, 2018, the change requires the inter-district to:

(a) Comply with all requirements in law and regulation concerning inter-districts;

(b) Obtain approval from all regional solid waste management boards that are in the proposed inter-district;

(c) Provide ADEQ with a Notice of Intent to submit a revised business plan under Chapter 7 of this regulation; and

(d) Develop a revised business plan under Chapter 7 of this regulation and submit to ADEQ or its designee for review and approval.

(2) The ADEQ will provide the effective date of the new inter-district upon approval of the revised business plan.

(C) A used-tire program may request operational assistance or guidance on compliance with this section from ADEQ, and ADEQ may provide operational assistance or guidance on compliance with this section to the used-tire program.

Reg. 36.107 Market Development

(A) The used-tire program shall develop market opportunities for recycling and beneficial use of used tires and used tire materials, including tire derived fuel.

(B) The market sectors for recycling and beneficial use of used tires could include ground rubber, use in civil engineering applications, tire-derived fuel, and rubberized asphalt.

CHAPTER 2 :DEFINITIONS

Reg. 36.201 Definitions

As used in this regulation, the following definitions apply:

"Abatement" means the removal of used tires from a waste tire site, stock pile, or other site with accumulations of whole or shredded used tires.

"Access-controlled collection center" means a location where used tires are collected from tire generators, commercial generators, the public, or any combination thereof and:

(1) Is secured; and

(2) Only allows entry through specific points by authorized personnel.

"Baling" means a method of volume reduction whereby tires are compressed into bales.

"Beneficial use" means using a tire or part of a tire:

(1) To make another product;

(2) To make a component material of another product;

(3) As a substitute for a commercial product or material; or

(4) As a component to produce an alternative fuel for commercial purposes.

"Civil engineering application" means the use of waste tires in lieu of or in addition to natural occurring materials (such as rock, sand, dirt, gravel, etc.) in construction and erosion control. This definition does not include land reclamation.

"Commercial generator" means a person who sells new tires or provides delivery of new tires as part of fleet services to any one (1) or more of the following:

(1) A municipality;

(2) A county;

(3) A state agency;

(4) A federal agency;

(5) A school district;

(6) A political subdivision of the state; or

(7) A person who in the ordinary course of business buys tires in bulk for use on commercial vehicles.

"Commercial generator" does not include a tire retailer.

"Commission" means the Arkansas Pollution Control and Ecology Commission or its successor, unless otherwise specified.

"Department" or ADEQ means the Arkansas Department of Environmental Quality or its successor, unless otherwise specified.

"Director" means the Director of the Arkansas Department of Environmental Quality or the Director's designee, unless otherwise specified.

"Disclosure statement" means a written statement regarding business and legal activities as defined in Ark. Code Ann. § 8-1-106et seq.

"E-Manifest" means the electronic format of used tire data that is:

(1) Entered by an e-manifest user opener into the electronic uniform used tire manifest system;

(2) Assigned a unique electronic document number by ADEQ's e-manifest system portal; and

(3) Transmitted electronically to the e-manifest system, e-manifest viewers, and e-manifest closers who have been given permission to:

(a) View the data;

(b) Communicate with the e-manifest opener;

(c) Provide information related to the collection, transportation, distribution, and recycling or disposal of recyclable tires, waste tires, and used tires culled for resale; or

(d) Be the e-manifest closer.

"Electronic uniform used tire manifest system" or "e-manifest system" means an administrative method developed by ADEQ that:

(1) Uses an electronic application for the submission and management of information related to the generation, collection, transportation, distribution, and recycling, beneficial use, disposal, or resale of each recyclable tire, waste tire, and used tire culled for resale regulated under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq.; and

(2) Records the origin, date of collection, date of transfer, quantity, type, transporter, and destination for each recyclable tire, waste tire, and used tire culled for resale regulated under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq.

"Extra-large tire" means a tire that due to its size or construction is more difficult to process for recycling or disposal than a large tire and costs substantially more to process than a large tire.

" Extra-large tire" includes without limitation tires used, capable of being used, or designed to be used on any of the following vehicles or equipment:

(1) A skid steer loader;

(2) Excavation equipment;

(3) A farm implement, including without limitation, a tractor;

(4) Abackhoe;

(5) A road grader;

(6) Industrial equipment;

(7) A skidder; or

(8) A heavy duty truck used off-road for mining. "Extra-large tire" includes a tire with a load rating of "G" or higher.

"Fee-paid tire" means a used tire for which a rim removal fee or commercial generator fee has been collected, reported, and paid on the replacement tire by a tire generator or commercial generator.

" Fee-waived tire" means a used tire for which no rim removal fee, commercial generator fee, or import fee has been collected, reported, and paid.

"Funding decision" means the final administrative decision by the Director or designee on an application for Level One, Level Two, and Level Three reimbursements from the Used Tire Recycling Fund pursuant to ADEQ's administration of the Tire Accountability Program under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq. and the final decision of the Director or designee on any disputes arising under any reimbursement.

"Grant decision" means the final administrative decision by the Director or designee on an application for grants pursuant to ADEQ's administration of the Tire Accountability Program under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq. and the final decision of the Director or designee on any disputes arising under any grant.

"Inter-district used-tire program" means a program formed by agreement of two (2) or more regional solid waste management boards to pool resources of all boards that are parties to the agreement for the administration of one (1) consolidated used-tire program.

"Large tire" means a tire with a rim size greater than nineteen inches (19") and a load rating of "F" or higher including without limitation a wide-base or extra-wide single tire.

"Load rating" means the system of trade designations that identifies the weight carrying capacity range of a tire.

"Low profile tire" means a tire of any rim size that has a short sidewall and is designed to:

(1) Be used on an automobile or light truck; and

(2) Provide one (1) or more of the following:

(a) Performance enhancing precision and control; or

(b) An appearance enhancement.

"Manufacture reject tire" means a tire rendered defective in the manufacturing process.

"Open collection center" means an unsecure, open-access location where used tires are collected from tire generators, the public, or both before being recycled or disposed of by a used-tire program.

"Operator" means any person who performs any operation at a permitted tire processing facility or tire disposal facility requiring individual judgment that may directly affect the proper operation of the facility. "Operator" does not include any official solely exercising general administrative supervision.

"Permit" means a written consent issued by that authorizes a person or business to perform one (1) or more of the following functions at a tire processing facility, a tire disposal facility, or a tire collection center:

(1) Construct;

(2) Operate; or

(3) Maintain.

"Permitted site" means a location used for collection, storage, processing, or disposal of used tires that has a current valid permit issued by ADEQ.

"Person" means an individual, government entity, or any other entity that is recognized by law with rights and duties.

"Processed tire" means tires, commingled tire parts, or pieces that have been cut, shredded, or otherwise altered so that they are no longer whole, no longer identifiable, or both.

"Pro rata" means a proportional allocation using a procedure to assign an amount to a fraction according to its share of the whole.

"Qualified entity" means an entity that demonstrates to ADEQ that the entity has the capability, experience, and resources to operate and administer a used-tire program.

"Quantity" means the actual number of tires.

"Recyclable tire" means a worn, damaged, or defective tire that is recycled because it is no longer repairable, reusable, or suitable for its original intended purpose.

"Recycle" means the systematic process of collecting, sorting, decontaminating, and returning waste materials to commerce as commodities for use, other beneficial use, or exchange.

"Regional Solid Waste Management Board" or "Board" means a board created under Arkansas Code Title 8, Chapter 6, Subchapter 7, or its successor, unless otherwise specified.

"Regional Solid Waste Management District" or "District" means a district created under Arkansas Code Title 8, Chapter 6, Subchapter 7, or its successor, unless otherwise specified.

"Registered professional engineer" means professional engineer registered in the State of Arkansas.

"Residuals" means any liquids, sludges, metals, fabric, or byproducts resulting from the processing or storage of tires.

"Small tire" means a tire that has a load rating of "F" or lower and a rim size of nineteen inches (19") or smaller and includes low profile tires.

"Small tire" includes a tire from any of the following vehicles:

(1) An automobile;

(2) A motorcycle;

(3) An all-terrain vehicle;

(4) A lawn mower; or

(5) A golf cart.

"Tire" means any one (1) or more of the following:

(1) A continuous, ring-shaped, removable cover made of solid rubber, pneumatic rubber, or semipneumatic rubber that is installed around a wheel rim; or

(2) Any other round piece of equipment that is attached or could be attached to a vehicle or aircraft and has a primary function of enabling surface mobility.

"Tire" does not include a solid wheel rim with an integral rubber covering or a tire used on a nonmotorized bicycle, golf cart, or lawn mower.

"Tire collection center" means either an access-controlled collection center or an open collection center where used tires are collected before being recycled or disposed of by a used-tire program.

"Tire derived fuel" or "TDF" means fuel derived from whole tires or processed tires.

"Tire disposal facility" means a separately permitted landfill, landfill unit, or waste tire monofill specifically designed and rated for the sole disposal of waste tires.

"Tire generator" means a person who:

(1) Removes tires from rims for disposal or resale; or

(2) Stores used tires on or in property owned, leased, or otherwise controlled by that person.

"Tire generator" includes without limitation:

(1) A tire retailer;

(2) A tire wholesaler;

(3) A tire transporter;

(4) A tire manufacturer;

(5) A manufacturer of retreaded tires;

(6) A new car dealer;

(7) A used car dealer;

(8) An auto repair shop; or

(9) A salvage yard.

"Tire generator" does not include a commercial generator.

"Tire manufacturer" means a manufacturing operation engaged in the final assembly of the basic components of a tire.

"Tire processing facility" means a site where equipment is used to cut, chip, grind, shred, or otherwise alter used tires.

"Tire retailer" means any one (1) or more of the following:

(1) A person who is in the business of selling new tires, used tires, or both new and used tires to the end consumer; or

(2) A person who is in the business of or receives compensation for removing tires from rims.

"Tire retailer" does not include:

(1) A person who sells tires to another person exclusively for the purpose of resale if the subsequent retail sale is subject to the fee imposed under Ark. Code Ann. § 8-9-404; or

(2) A commercial generator.

"Tire transporter" means a person who is in the business of or receives compensation for transferring used tires from one (1) location to another location for collection, storage, processing, recycling, disposal, reuse, or resale.

"Used tire" means a tire that meets one (1) or more of the following criteria:

(1) Is repairable or retreadable for its original intended purpose;

(2) Is reusable;

(3) Is recyclable; or

(4) Has been collected by a tire retailer or at a tire collection center operated under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq.

"Used tire" includes without limitation a recyclable tire, waste tire, and used tire culled for resale.

"Used tire" does not include a tire being held for ninety (90) days or less for the purpose of retreading or repairing the tire.

"Used tire culled for resale" means a tire that is removed from the rim but is diverted from a tire collection center, tire processing facility, or tire transporter with the intention of selling for reuse.

"Used-tire program" means a program that receives funding under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq., and is operated by:

(1) A regional solid waste management board; or

(2) An inter-district used-tire program.

"Vehicle" means any piece of equipment that uses wheels for surface mobility.

"Waste tire" means a whole tire that is worn, damaged, or defective and land disposed because it is no longer repairable, reusable, or suitable for its original intended purpose.

"Waste tire originating from a tire manufacturer" means those new tires that originate from a tire assembly process and are determined by the tire manufacturer to be either defective or unfit for use on a vehicle.

"Waste tire site" means a location where unpermitted used tires are accumulated, whether loosely stored, baled, or a combination of both loosely stored and baled.

"Waste tire site" does not include:

(1) A location where only new tires are stored; or

(2) A location that is authorized to store tires by ADEQ or regulations promulgated by the Arkansas Pollution Control and Ecology Commission.

"Wide-base tire or extra-wide single tire" means a tire approximately four hundred fifty-five millimeters (455 mm) wide that is used on a vehicle in which the front axle load that exceeds the load capacity of a truck tire.

CHAPTER 3 :USED-TIRE PROGRAMS

Reg. 36.301 Generally

(A) The regional solid waste management district or inter-district programs that collect and manage used tires are known as used-tire programs.

(B) Each used-tire program shall operate in compliance with all applicable regulation, law, and its approved business plan.

(C) A used-tire program's assigned identification number to be used for the electronic uniform used tire manifest system is the identification number assigned by the Department of Finance and Administration upon registration as a tire generator.

Reg. 36.302 Eligibility for Reimbursement

To be eligible for reimbursements under this regulation and the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq., a used-tire program shall:

(1) Be included in the solid waste management system under Ark. Code Ann. § 8-9-101et seq. for each regional solid waste management district that the used-tire program serves;

(2) Have a used tire management plan, as found in Commission Regulation 36.310, for each regional solid waste management district that the used-tire program serves, including a schedule for identification and cleanup of waste tire sites that is updated until abatement of each identified waste tire site is completed. The plan and implementation schedule are subject to review and approval by ADEQ;

(3) Be included in each solid waste management district's recycling program under Ark. Code Ann. § 8-9-203 that the used-tire program serves;

(4) If operated by a political subdivision of the state or other public entity:

(a) Use the financial management system under Ark. Code Ann. § 14-21-101et seq.;

(b) Comply with the county purchasing procedures under Ark. Code Ann. § 14-22-101et seq.;

(c) Comply with the Arkansas County Accounting Law of 1973, Ark. Code Ann. § 14-25-101; and

(d) Comply with the Local Fiscal Management Responsibility Act, Ark. Code Ann. § 14-77-101etseq.;

(5) Be operated in compliance with this regulation and all other laws, regulations, and rules related to the administration of solid waste management systems and recycling programs in Arkansas;

(6) Encourage the voluntary establishment of tire collection centers at tire retailers, tire processing facilities, and solid waste disposal facilities for the deposit of tires generated in the state;

(7) Provide ADEQ with business plan information required under Chapter 4 of this regulation (Ark. Code Ann. § 8-9-408);

(8) Provide ADEQ with all quarterly financial information and progress reports under Chapter 11 of this regulation (Ark. Code Ann. § 8-9-409); and

(9)

(a) Establish tire collection centers within each county served by the used-tire program that accepts tires from tire retailers at no charge if the tire retailer establishes that it:

(i) Collects the rim removal fee imposed under Chapter 8 of this regulation; and

(ii) Complies with the e-manifest system under Chapter 6 of this regulation.

(b) The tire collection centers may be at any one (1) or more of the following:

(i) A solid waste disposal facility;

(ii) A tire processing facility; or

(iii) A tire retailer.

Reg. 36.303 Optional Activities

A used-tire program that receives reimbursements from the Used Tire Recycling Fund, the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq., and this regulation may:

(1) Contract with a tire processing facility;

(2) Remove or contract for the removal of tires from waste tire sites within the regional solid waste management district;

(3) Provide incentives for establishing privately operated tire collection centers for the public; and

(4) Form an inter-district used-tire program using written inter-district agreements. The signed inter-district agreements shall be submitted to ADEQ and maintained at the facility as part of their record retention policy.

Reg. 36.304 Additional Fees for Extra Large Tires

(A) A used-tire program that accepts extra-large tires may establish its own fees for accepting extra-large tires. Agricultural tires are exempted from fees provided advanced arrangements are made with the used-tire program and no more than four (4) extra large tires are delivered at any one (1) time per a month.

(B) The used-tire program shall provide ADEQ with a price of processing and disposing of extra-large tires prior to collecting fees. The price shall not exceed the costs of properly collecting and disposing of the extra-large tires.

(C) The used-tire program shall report the total fees collected from processing or disposing of extra-large tires on its quarterly reports to ADEQ.

Reg. 36.305 Maximum Quantity of Tires

(A) An individual who is a resident of a regional solid waste management district may discard no more than four (4) used tires of any size per month without an additional fee. Agricultural businesses are considered individuals for purposes of this regulation.

(B) A used-tire program may accept more than four (4) used tires of any size per month without an additional fee if:

(1) The used tires are collected as part of a clean-up effort by a governmental entity, nonprofit entity, or volunteer group; and

(2) The used-tire program documents in the e-manifest system the contact information for the entity or group the four (4) used tires of any size per month without an additional fee, and the quantity of fee-waived tires.

(C) If the used-tire program accepts fee-waived tires, in excess of four (4) used tires of any size per month, the waiver must be reasonably based on all information available to the used-tire program including:

(1) Frequency that the person drops off more than four (4) tires per month;

(2) Ability of the used-tire program to manage the additional tires;

(3) Risk of the tires being illegally dumped or stored if a fee is charged; or

(4) Other facts and circumstances including if the property owner discovered the used tires on the property and did not participate in the collection or storage of the used tires on the property.

(D) A used-tire program may require a person who is delivering fee-waived tires to give advanced notice so that a determination can be made as to whether the used-tire program has the capacity to handle and process the fee-waived tires.

(E) A used-tire program may charge a fee to individuals who discard more than four (4) used tires of any size per a month.

(F) A used-tire program may charge a fee for any tire, regardless of the quantity, discarded by an individual that remains on the rim.

Reg. 36.306 Tire Disposal Facility Restrictions

(A) No new tire disposal facilities shall be permitted unless the applicant demonstrates that there is no feasible recycling alternative.

(B) Tire disposal facilities shall be permitted, designed, constructed, and operated in accordance with the standards set forth in Commission Regulation 22.501.

Reg. 36.307 Enforcement

(A) A used-tire program is subject to penalties, enforcement, or both for noncompliance with this regulation including:

(1) Failure to submit a business plan as required under Chapter 4 of this regulation;

(2) Failure to submit a revised business plan upon written notification from ADEQ;

(3) Failure to maintain a complete and accurate record of used tires sold, collected, stored, recycled, disposed, transported, or managed;

(4) Failure to use the e-manifest system;

(5) Falsification or alteration of e-manifest system information, either electronically or paper copy;

(6) Failure to provide accurate e-manifest information either electronically or by paper copy;

(7) Transfer of used tires to a person or facility not permitted to accept the tires;

(8) Failure to comply with any regulation issued by the Arkansas Pollution Control and Ecology Commission;

(9) Failure to comply with an order issued by ADEQ;

(10) Violation of any part of the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401etseq.;

(11) Failure to report a material change;

(12) Failure to provide documentation or reports required to be filed with ADEQ;

(13) Failure to maintain documents and accurate records;

(14) Misrepresentation of any material fact in a license or registration application;

(15) Presenting falsified or altered documents in a license or registration application;

(16) Illegal dumping of tires or residuals; or

(17) Collection or transfer of used tires without a valid tire transporter license if a tire transporter license is required.

Reg. 36.308 Penalties

(A) If a used-tire program fails to submit a business plan that is approved by ADEQ the used-tire program and all regional solid waste management boards included in the used-tire program are:

(1) Ineligible to receive funding from the Used Tire Recycling Fund;

(2) Prohibited from administering and operating a used-tire program; and

(3) Prohibited from imposing any fees to support the administration and operation of a used-tire program.

(B) The ADEQ may designate a qualified entity to perform the duties related to the operation and administration of a used-tire program deemed ineligible under subsection (A) of this section.

(C) In addition to any other penalty provided by law, any general or site-specific permit issued according to the terms and conditions of Commission Regulation 36 may be suspended or revoked for noncompliance.

Reg. 36.309 Used Tire Management Plan

(A) Each used-tire program shall develop a used tire management plan that includes the following:

(1) Listing of all waste tire sites within the used-tire program area (site name and address);

(2) The quantity of waste tires located at each waste tire site;

(3) The owner and operator of each waste tire site; and

(4) The schedule of implementation to abate each waste tire site.

(B) The used tire management plan shall be submitted to ADEQ for review and approval on or before December 31, 2017.

(C) The used-tire program shall submit an updated used tire management plan for waste tire sites within their program area on or before December 31 annually.

CHAPTER 4 :USED-TIRE PROGRAM ACCOUNTABILITY AND BUSINESS PLANS

Reg. 36.401 Initial Business Plans

A used-tire program that receives funding from the Used Tire Recycling Fund shall have an ADEQ-approved business plan that establishes its current operation expenses and proposed future operation plans. This business plan must approved by the used-tire program's board before submittal to ADEQ.

Reg. 36.402 Overview Information

Used-tire program overview information shall include any of the following information as determined applicable by ADEQ:

(1) Square mileage of the used-tire program;

(2) Population served by the used-tire program;

(3) Organizational structure of the used-tire program;

(4) Inter-district agreements, if applicable; and

(5) All applicable solid waste management plans.

Reg. 36.403 Minimum Required Information

The minimum required information for the business plan is:

(1) Operation information from the previous twelve (12) months to include:

(a) An explanation of debt and debt repayment obligations, including scheduled payments and to whom the payments are being made;

(b) A description of equipment used, including type, year manufactured, debt obligations related to the equipment, and whether it is leased or owned;

(c) An explanation of contract obligations including the amount, length, and scope of the contract;

(d) A description of how tires are managed, collected, transported, disposed, or recycled;

(e) A listing of costs for all tire collection centers, trailers, transfer stations, processing facilities, mileage, fuel, and personnel;

(f) The quantity of tires currently on any property owned, leased, or otherwise controlled by each regional solid waste management district included in the used-tire program; and

(g) Any documents that support the information, explanations, and descriptions to include contracts, receipts, utility bills, audit information, and any additional information deemed necessary.

(2) Proposed operation costs for the next twelve (12) months to include:

(a) A description of how tires will be managed, collected, stored, transported, disposed, or recycled;

(b) Estimated cost of utilities, personnel, equipment, fees, leases, facilities, and any other costs related to the primary operation of the used-tire program;

(c) The capital improvement and maintenance plan with estimated expenditures and costs;

(d) The estimated transportation cost including mileage, fuel, equipment, personnel, utilities, insurance, bonds, and fees;

(e) The locations of all tire collection centers;

(f) The types of tires managed to include recyclable tires, waste tires, and used tires culled for resale; and

(g) Any documents that support the information, explanations, and descriptions, including contracts, receipts, utility bills, audit information, and any additional information deemed necessary.

Reg. 36.404 Revised Business Plans

(A) A used-tire program shall provide an updated business plan to ADEQ related to operational changes and long-term planning within thirty (30) calendar days of the operational or planning changes.

(B) A revised business plan is required if any one (1) or more of the following occurs:

(1) A used-tire program has or is anticipated to have significant operational changes;

(2) Long-term plans are developed or changed;

(3) A new inter-district is formed;

(4) A regional solid waste management board is added to or removed from an inter-district; or

(5) The ADEQ has determined that a business plan does not meet the requirements of this chapter.

Reg. 36.405 Approval Process

(A)

(1) The ADEQ or its designee shall evaluate the efficiency, sustainability, and accountability of each used-tire program and its proposed cost of managing small tires and large tires for approval of the business plan reimbursement rate for small tires and large tires for each used-tire program.

(2) To calculate approved business plan rates, ADEQ may use the following:

(a) Fiscal analysis of the proposed business plan;

(b) Comparative analysis of the used-tire program to other used-tire programs in the state;

(c) Comparative analysis of the used-tire program's proposed business plan to alternative business models for used tire management; or

(d) Any other reasonable method of calculating business plan rates for the costs associated with the management of used tires.

Reg. 36.406 Effective Date

A business plan or revised business plan submitted is effective upon written approval by ADEQ or its designee.

Reg. 36.407 Failure to Submit an Approved Business Plan

(A) If a used-tire program fails to submit a business plan for approval by ADEQ on or before December 31, 2017, the used-tire program and all regional solid waste management boards included in the used-tire program are:

(1) Ineligible to receive funding from the Used Tire Recycling Fund;

(2) Prohibited from administering and operating a used-tire program; and

(3) Prohibited from imposing any fees to support the administration and operation of a used-tire program.

(B)

(1) If a used-tire program's proposed business plan is determined to be administratively incomplete, the used-tire program shall submit the additional information required by ADEQ within ten (10) calendar days of written notice.

(2) If a used-tire program fails to submit the additional information required by ADEQ within ten (10) calendar days, the used-tire program shall be deemed to have failed to submit a business plan.

Reg. 36.408 Designated Qualified Entity

(A) ADEQ may designate a qualified entity to perform the duties related to the operation and administration of a used-tire program deemed ineligible under this regulation.

(B) A qualified entity that is designated to perform the duties related to the operation and administration of a used-tire program shall operate the used-tire program in compliance with this regulation.

(C) If the qualified entity performs the duties related to the operation and administration of the used-tire program in compliance with this regulation, the qualified entity is eligible to receive funding under this regulation and from the Used Tire Recycling Fund.

CHAPTER 5 :PERFORMANCE AND EFFICIENCY EVALUATIONS

Reg. 36.501 Generally

The Used-Tire Program will be evaluated for performance and efficiency by ADEQ under the Tire Accountability Program.

Reg. 36.502 Performance Indicators

ADEQ will evaluate the Business Plans using the following performance indicators for each used-tire program:

(1) The quantity of:

(a) Recyclable tires; and

(b) Waste tires disposed in a landfill.

(2) The number of reported waste tire sites located in the regional solid waste management districts that are included in the used-tire program;

(3) Electronic uniform used tire manifest system compliance;

(4) Administrative expenses;

(5) Transportation expenses;

(6) Building, warehouse, and other facilities expenses;

(7) Revenue sources and the amount of revenue received from each source;

(8) The number, location, and type of tire collection centers;

(9) Any identified operational issues;

(10) The number of enforcement actions against the used-tire program; and

(11) Any other performance indicators that are determined to be useful to evaluate performance and efficiency.

Reg. 36.503 Biennial Evaluations

ADEQ will conduct evaluations of the Business Plans every two (2) years for each used-tire program. The first evaluation will be completed on or before December 31, 2018.

CHAPTER 6 :E-MANIFEST SYSTEM

Reg. 36.601 Purpose

(A) The purpose of this chapter is to establish procedures for implementing and administering the electronic uniform used tire manifest system (e-manifest system).

(B) The purpose of the e-manifest system is to provide accountability and sustainability by requiring the use of uniform manifests in paper copy or electronic form so that ADEQ has an accurate reporting of all information related to the collection, transportation, distribution, recycling, and disposal of recyclable tires, waste tires, and used tires culled for resale.

(C) The implementation of the e-manifest system is an ongoing process, and ADEQ may continue to develop the process and procedures including any one (1) or more of the following:

(1) Use of paper forms;

(2) Methods of registering accounts;

(3) Requirements for electronic signature authorizations;

(4) Requirements for information; or

(5) Any other component of the e-manifest system necessary for its implementation and administration.

Reg. 36.602 E-Manifest System Use Required

(A) Beginning on January 1, 2018, and except as provided under Commission Regulation 36.602(C), the following entities shall use Form TAP-11 to accurately document all information related to the collection, transportation, distribution, recycling, and disposal of recyclable tires, waste tires, and used tires culled for resale being sent to a used-tire program:

(1) Tire generators;

(2) Tire collection centers;

(3) Commercial generators; and

(4) Any person who:

(a) Removes a tire from the used-tire program after it is collected; or

(b) Imports a tire according to Commission Regulation 36, Chapter 10 (Ark. Code Ann. § 8-9-404(c)).

(B) The entities listed in Reg. 36.602(A) shall sign and date the manifest (Form TAP-11). The transporter shall verify, sign, and date the form. The originating entity shall maintain a copy of the manifest and the transporter carries the original manifest with the shipment of tires. Once the tires arrive at the used-tire program destination, the used-tire program designated person signs and dates the manifest (after verifying the load matches the form), provides a copy to the transporter, and then enters all the information contained on Form TAP-11 into ADEQ's e-manifest system. The used-tire program shall also scan in the final completed paper manifest into ADEQ's e-portal system.

(C) The e-manifest system is intended to only apply to tires provided to a tire transporter for delivery to a used-tire program. The e-manifest system is not intended to and will not apply to tires not provided to or part of a used-tire program.

(D)

(1) Each person who is required to use the e-manifest system shall designate at least one (1) but not more than two (2) authorized individuals to enter data into the e-manifest system.

(2) The person shall provide one (1) valid and unique email address for each authorized individual.

(3) Any change of an individual's valid e-mail address for the e-manifest system shall be reported in writing to ADEQ within ten (10) calendar days.

(E) Form TAP-11 may be found on ADEQ's website. A used-tire program may develop and use triplicate copies of Form TAP-11.

Reg. 36.603 Submission of E-Manifest Information on Paper

If any person required to use the e-manifest system under this chapter is unable to use the e-manifest system, the person may submit to the used-tire program an equivalent paper version (Form TAP-11) developed by ADEQ that shall be entered into the e-manifest system by the used-tire program.

Reg. 36.604 Submitting E-Manifests

(A)

(1) A person required to use the e-manifest system shall submit a new e-manifest or paper manifest for each transaction involving the collection, transportation, distribution, recycling, or disposal of recyclable tires, waste tires, or used tires culled for resale.

(2) A used-tire program is required to submit an e-manifest for all used tires collected or managed.

(B) A used-tire program and tire transporter shall report any discrepancies during transport on the paper copies of the e-manifests in his or her possession to include:

(1) The quantity of used tires removed during transport;

(2) The quantity of used tires added during transport; and

(3) All contact information for any person who:

(a) Received used tires removed during transport; and

(b) Added used tires.

(C)

(1) A tire generator, commercial generator, or person who imports used tires shall provide the tire transporter with two (2) paper copies of the e-manifest.

(2) The tire transporter shall provide one (1) paper copy to the used-tire program upon delivery and retain one (1) copy for its records.

Reg. 36.605 Timely Submission of Accurate Data

(A) Every person required to use the e-manifest system shall submit data that accurately reflects each transaction, whether the data is entered electronically or submitted in paper form.

(B) To be considered a timely submission of e-manifest data and for the used-tire program to receive funding, the used-tire program shall finalize each manifest by entering the information contained on the manifest into the e-manifest system prior to processing or disposing of each load.

Reg. 36.606 Falsification or Alteration of E-Manifest System Data

(A) A person shall not falsify or alter any e-manifest system data, whether on the paper Form TAP-11 or the e-manifest system form, provided by that person or any other person

(B) Any errors made or discovered by a person in the course of using the paper Form TAP-11 or the e-manifest system shall be reported in writing within three (3) calendar days after discovery to the ADEQ.

CHAPTER 7 :TIRE GENERATORS

Reg. 36.701 Registration

When a tire generator registers with the Department of Finance and Administration as a collector of the rim removal fee, the registration will include a procedure for registering with ADEQ to obtain an identifying number.

Reg. 36.702 Types of Tire Generators

Tire generators include:

(1) A tire retailer;

(2) A tire transporter;

(3) A tire wholesaler;

(4) A tire manufacturer;

(5) A manufacturer of retreaded tires;

(6) A new car dealer;

(7) A used car dealer;

(8) An auto repair shop; or

(9) A salvage yard.

Reg. 36.703 Exclusions and Limitations

A tire generator shall not be deemed a commercial generator unless the tire generator acts as a commercial generator for a transaction that is subject to the commercial generator fee.

Reg. 36.704 Tire Retailers

Each tire retailer shall:

(1) Be registered with the Department of Finance and Administration as a collector of rim removal fees;

(2) Collect the fees from the purchaser even if the purchaser elects to keep the used tire removed from the rim;

(3) Pay on a monthly basis the rim removal fees that are collected each month to the Department of Finance and Administration;

(4) Comply with all requirements related to collecting and reporting rim removal fees;

(5) Be registered with ADEQ as a tire retailer and have an identifying number issued by ADEQ; and

(6) Use the manifest system developed by ADEQ and certify that each tire removed from the rim and replaced with a new tire or used tire was assessed a rim removal fee to account for each used tire removed from the rim; and

(7) Obtain a general permit for tire collection centers as required by Commission Regulation 36.1502.

Reg. 36.705 Tire Transporters

(A) For all tire transporters licensed on or after January 1, 2018, a tire transporter shall meet the following requirements to perform or be compensated for any duties under this regulation:

(1) Obtain a tire transporter license for each vehicle to be used on each shipment of used tires;

(2) Provide proof that each vehicle has passed an annual safety inspection;

(3) Provide proof of insurance for each vehicle and authorized driver;

(4) Provide a bond in the amount of ten thousand dollars ($ 10,000);

(5) Ensure that each authorized driver has completed training for the use of the manifest system and certify that each tire removed from the rim and replaced with a new tire or used tire was assessed a rim removal fee;

(6) For a renewal application, submit an annual report on or before March 1 to ADEQ that details the quantity and type of tires that were transferred by the tire transporter on Form TAP-2 prepared by ADEQ; and

(7) Pay an initial fee of fifty dollars ($50.00), and annually thereafter, for each vehicle to be licensed.

(B)

(1)

(a) A new tire transporter shall submit an application for a tire transporter license at least thirty (30) calendar days before the tire transporter intends to begin transporting used tires.

(b) A corporate or governmental entity may submit one (1) application to license its entire fleet of vehicles.

(2) A tire transporter that applies for a license under this section shall file a disclosure statement at the time of application unless a disclosure statement has been filed with ADEQ within twelve (12) months preceding the date of the application submittal.

(C)

(1) A licensed tire transporter shall possess a current decal issued by ADEQ.

(2)

(a) The tire transporter decal shall be displayed on the driver side of the front window of the tire transporter's vehicle.

(b) If a licensed tire transporter uses one (1) or more fleet vehicles, a copy of the tire transporter's license must be kept within the vehicle during transportation.

(3) Upon expiration or revocation of a tire transporter license, the tire transporter shall immediately remove all tire transporter decals from all vehicles.

(D) All vehicles and equipment used by tire transporters shall be constructed, operated, and maintained to prevent loss of used tires during transport, health nuisances, and safety hazards to operating personnel and the public.

(E) A used-tire program is not required to be licensed by ADEQ as a tire transporter to transfer tires that it has collected, is managing, or both. Instead, the used-tire program shall be responsible for developing an internal tire transporter program for their employees and include all standards within their business plan.

(F) All tire transporter licenses expire on February 28 of each year regardless of the issuance date.

(G) The replacement fee for a lost or destroyed license decal is ten dollars ($10.00).

(H) A tire transporter license issued under this section is non-transferable.

(I)

(1) If a tire transporter is found to have not complied with this regulation, the tire transporter's license shall be suspended for three (3) months.

(2) If the license of a tire transporter is suspended more than one (1) time in three (3) years, the tire transporter's license shall be revoked and the tire transporter is ineligible for a tire transporter license for an additional three (3) years from the date of revocation.

Reg. 36.706 Tire Wholesalers

If a tire wholesaler removes used tires from the rim, the tire wholesaler shall:

(1) Be registered with the Department of Finance and Administration as a collector of rim removal fees;

(2) Collect the fees from the purchaser even if the purchaser elects to keep the used tire removed from the rim;

(3) Pay on a monthly basis the rim removal fees that are collected each month to the Department of Finance and Administration;

(4) Comply with all requirements related to collecting and reporting rim removal fees;

(5) Be registered with ADEQ as a tire wholesaler and have an identifying number issued by ADEQ; and

(6) Use the manifest system to account for each used tire removed from the rim and certify that each tire removed from the rim and replaced with a new tire or used tire was assessed a rim removal fee when the tire wholesaler delivers used tires to a used-tire program or tire processing facility for recycling or disposal.

Reg. 36.707 Tire Manufacturers

(A) A tire manufacturer shall be registered with ADEQ as a tire manufacturer and have an identifying number issued by ADEQ.

(B) Waste tires originating from a tire manufacturer shall be deposited at a permitted used-tire program, a permitted, access-controlled collection center, or a permitted tire processing facility for a fee to be established by the used-tire program, permitted, access-controlled collection center, or permitted tire processing facility.

(C) A tire manufacturer must use the manifest system and certify that each tire removed from the rim and replaced with a new tire or used tire was assessed a rim removal fee at the point it delivers used tires to a used-tire program or tire processing facility for recycling or disposal.

(D) Records of the disposition of the waste tires originating from a tire manufacturer shall be maintained by that tire manufacturer for a period of at least three (3) years and shall be available for review by ADEQ.

Reg. 36.708 New and Used Car Dealers

If a new or used car dealer removes unused or used tires from the rim, the new or used car dealer shall:

(1) Be registered with the Department of Finance and Administration as a collector of rim removal fees;

(2) Collect the fees from the purchaser even if the purchaser elects to keep the unused or used tire removed from the rim;

(3) Pay on a monthly basis the rim removal fees that are collected each month to the Department of Finance and Administration;

(4) Comply with all requirements related to collecting and reporting rim removal fees;

(5) Be registered with ADEQ as a new or used car dealer to obtain an identifying number; and

(6) Use the manifest system to account for each unused or used tire removed from the rim and certify that each tire removed from the rim and replaced with a new tire or used tire was assessed a rim removal fee.

Reg. 36.709 Auto Repair Shops

If an auto repair shop removes used tires from the rim and replaces it with a new or used tire, the auto repair shop shall:

(1) Be registered with the Department of Finance and Administration as a collector of rim removal fees;

(2) Collect the fees from the purchaser even if the purchaser elects to keep the unused or used tire removed from the rim;

(3) Pay on a monthly basis the rim removal fees that are collected each month to the Department of Finance and Administration;

(4) Comply with all requirements related to collecting and reporting rim removal fees;

(5) Be registered with ADEQ as an auto repair shop to obtain an identifying; and

Reg. 36.710 Salvage Yards

If a salvage yard removes used tires from the rim and replaces them with a new or used tire, the salvage yard shall:

(1) Be registered with the Department of Finance and Administration as a collector of rim removal fees;

(2) Collect the fees from the purchaser even if the purchaser elects to keep the unused or used tire removed from the rim;

(3) Pay on a monthly basis the rim removal fees that are collected each month to the Department of Finance and Administration;

(4) Comply with all requirements related to collecting and reporting rim removal fees;

(5) Be registered with ADEQ as a salvage yard to obtain an identifying number; and

Reg. 36.711 Reporting of Material Changes

(A) A tire generator shall provide written notice to ADEQ within thirty (30) calendar days of any material change that affects its permit, license, or registration. A material change includes any one (1) or more of the following:

(1) The relocation of the place of business;

(2) New locations where the business is conducted;

(3) The closure of a business or business location;

(4) A change in the name, mailing address, telephone number, or email address; or

(5) Purchasing new equipment intended to be used for activities that are subject to the permit, license, or registration.

(B) If a tire generator is registered with the Department of Finance and Administration to collect and remit rim removal fees, the tire generator must also provide written notice to the Department of Finance and Administration within thirty (30) calendar days of any material change under this section.

Reg. 36.712 Recordkeeping

(A) Except as otherwise provided in this chapter, a tire generator licensed or registered under this chapter shall maintain all documents related to its used tire duties for three (3) years.

(B) The documents maintained by the tire generator shall accurately reflect the used tire duties performed and collection and payment of all applicable rim removal fees.

(C) The documents shall be available for inspection by ADEQ personnel, the Arkansas Department of Finance and Administration personnel, or both during normal business hours.

Reg. 36.713 Compliance

A tire generator is required to comply with this chapter and all other applicable portions of this regulation and the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq.

CHAPTER 8 :RIM REMOVAL FEES

Reg. 36.801 Registration

When a tire generator registers with the Department of Finance and Administration as a collector of the rim removal fee as required under this chapter, the registration will include a procedure for registering with ADEQ to obtain an identifying number.

Reg. 36.802 Rim Removal Fees Imposed

(A) Beginning on January 1, 2018, and pursuant to Ark. Code Ann. § 8-9-404, rim removal fees are imposed upon the transaction of removing a tire from a rim that is related to the sale of a replacement tire by a tire retailer.

(B) As used in this regulation, "proceeds from rim removal fees" means all moneys collected and received by the Arkansas Department of Finance and Administration for rim removal fees imposed under Ark. Code Ann. § 8-9-404(a) and interest and penalties on delinquent rim removal fees.

(C) A rim removal fee shall be charged by the tire retailer to the person who purchases:

(1) A replacement tire for a rim that necessitates the removal of a different tire from the same rim; or

(2) The service of removal of a tire from a rim and replacement with a tire that was not purchased from the tire retailer if the person requesting the rim removal cannot show proof of payment of the rim removal fee under this section for the replacement tire.

Reg. 36.803 Amount of Rim Removal Fee

Beginning on January 1, 2018, the rim removal fee shall be imposed at the rate of:

(1) Three dollars ($3.00) for each new tire that replaces a tire removed from a rim; and

(2) One dollar ($ 1.00) for each used tire that replaces a tire removed from the rim.

Reg. 36.804 Exclusions and Exemptions

(A) The rim removal fees imposed by this chapter do not apply to the sale of any of the following:

(1) A solid wheel rim with an integral rubber covering;

(2) A tire used on a nonmotorized bicycle, golf cart, or lawn mower;

(3) Large retreaded tires;

(4) Tires included as part of the equipment of a new motor vehicle; or

(5) Tires included as part of the equipment of a used vehicle if included on the used vehicle at the time of sale and in the sales price of the used vehicle.

(B) Only one (1) of either the rim removal fee or the commercial generator fee shall be charged for the transaction of removing a tire from a rim that is related to the sale of a replacement tire. If a person establishes that he or she has paid either the rim removal fee or the commercial generator fee for a tire, the tire retailer or tire generator shall not charge an additional fee for that tire.

Reg. 36.805 Duties

Each tire retailer shall:

(1) Be registered with the Department of Finance and Administration as a collector of rim removal fees;

(2) Collect the fees from the purchaser even if the purchaser elects to keep the used tire removed from the rim;

(3) Pay on a monthly basis the rim removal fees that are collected each month to the Department of Finance and Administration;

(4) Comply with all requirements related to collecting and reporting rim removal fees;

(5) Be registered with ADEQ as a tire retailer; and

(6) Use the e-manifest system developed by ADEQ to account for each used tire removed from the rim.

Reg. 36.806 Fee Remittance Procedure

(A)

(1) The rim removal fees shall be collected from the purchaser by the tire retailer and remitted to the Director of the Arkansas Department of Finance and Administration.

(2) However, the tire retailer may retain five percent (5%) of the rim removal fee imposed under this chapter for administrative costs.

(B)

(1) Each tire retailer shall file a return with the Director of the Arkansas Department of Finance and Administration on or before the twentieth of each month.

(2) The return shall show the total rim removal fees collected for each new tire and used tire removed from the rim during the preceding calendar month.

(3) The tire retailer shall remit the rim removal fees with the return.

(4) The Director of the Department of Finance and Administration shall prescribe the form and contents of the return.

(C)

(1) Each tire retailer is subject to the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101et seq., and any rules promulgated by the Arkansas Department of Finance and Administration.

(2) A tire retailer that is not registered with the Department of Finance and Administration as required under this chapter is subject to the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101et seq., and any rules promulgated by the Arkansas Department of Finance and Administration if the tire retailer is required by law to collect the rim removal fee imposed under this chapter.

Reg. 36.807 Fee Imposed After Sales Taxes Computed

The rim removal fees imposed by this chapter shall be added to the total cost charged by the tire retailer to the purchaser after all applicable gross receipts and compensating use taxes on the tires have been computed and shall be separately stated on the invoice or bill of sale.

Reg. 36.808 No Additional Charge to Purchaser

The tire retailer shall accept at no additional cost to the purchaser other than those fees collected under this regulation any or all used tires for which a purchaser paid the rim removal fee.

Reg. 36.809 Revenues Deposited

(A) The Arkansas Department of Finance and Administration shall deposit the proceeds from rim removal fees collected under Ark. Code Ann. § 8-9-404 into the State Treasury as special revenues to the credit of the following funds in the following percentages:

(1) Ninety-three percent (93%) to be deposited into the Used Tire Recycling Fund; and

(2) Seven percent (7%) to be deposited into the Arkansas Department of Environmental Quality Fee Trust Fund.

(B) The Used Tire Recycling Fund shall also consist of:

(1) Penalties assessed and collected under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401etseq.;

(2) Interest, earnings, and any other revenues as may be authorized by law;

(3) Any federal government moneys designated for deposit into the Used Tire Recycling Fund;

(4) Any gift or donation to the Used Tire Recycling Fund; and

(5) Those special revenues specified in Ark. Code Ann. §§ 8-9-404 and 19-6-301 (165).

Reg. 36.810 Administration of the Used Tire Recycling Fund

The Used Tire Recycling Fund shall be administered by ADEQ for reimbursements and grants to used-tire programs and administrative expenditures as authorized by law and regulation.

CHAPTER 9 :COMMERCIAL GENERATORS AND COMMERCIAL GENERATOR FEES

Reg. 36.901 Registration

When a commercial generator registers with the Department of Finance and Administration as a collector of the commercial generator fee as required under this chapter, the registration will include a procedure for registering with ADEQ to obtain an identifying number.

Reg. 36.902 Commercial Generator Fees Imposed

(A) Beginning on January 1, 2018, and pursuant to Ark. Code Ann. § 8-9-404, commercial generator fees are imposed upon the transaction of a commercial generator selling or delivering a new tire as part of fleet services.

(B) As used in this regulation, "proceeds from commercial generator fees" means all moneys collected and received by the Arkansas Department of Finance and Administration under this chapter for commercial generator fees imposed under Ark. Code Ann. § 8-9-404(d) and interest and penalties on delinquent commercial generator fees.

(C) The commercial generator fee shall be charged by the commercial generator to a person who in the ordinary course of business is an end user that removes used tires from the rim and replaces them with a new tire.

Reg. 36.903 Amount of Commercial Generator Fee

The commercial generator fee shall be imposed at the rate of three dollars ($3.00) for each new tire that is sold or delivered to an end user that removes used tires from the rim and replaces them with a new tire.

Reg. 36.904 Exclusions and Exemptions

(A) The commercial generator fees imposed by this chapter do not apply to the sale of any of the following:

(1) A solid wheel rim with an integral rubber covering;

(2) A tire used on a nonmotorized bicycle, golf cart, or lawn mower;

(3) Large retreaded tires;

(4) Tires included as part of the equipment of a new motor vehicle; or

(5) Tires included as part of the equipment of a used vehicle if installed on the used vehicle at the time of sale and included in the sales price of the used vehicle.

(B) Only one (1) of either the commercial generator fee or the rim removal fee shall be charged for the transaction of removing a tire from a rim that is related to the sale of a replacement tire. If a person establishes that he or she has paid either the commercial generator fee or rim removal fee for a tire, the commercial generator shall not charge an additional fee for that tire.

(C) A commercial generator must use the e-manifest system when it delivers used tires to a used-tire program or tire processing facility for recycling or disposal.

Reg. 36.905 Commercial Generator Duties

(A) Each commercial generator shall:

(1) Be registered with the Department of Finance and Administration as a commercial generator;

(2) Collect the fees from the end user even if the end user elects to keep the used tire removed from the rim;

(3) Pay on a monthly basis the commercial generator fees that are collected each month to the Department of Finance and Administration; and

(4) Comply with all requirements related to collecting and reporting commercial generator fees.

(B) A commercial generator who collects used tires from end users shall be registered with ADEQ as a commercial generator with an identifying number issued by ADEQ.

Reg. 36.906 Fee Remittance Procedure

(A)

(1) The commercial generator fees shall be collected from the end user by the commercial generator who sells the tires to the end user and bills the end user for the tires, fees, and any other applicable taxes related to the sale and remitted to the Director of the Arkansas Department of Finance and Administration.

(2) However, the commercial generator who collects the commercial generator fee may retain five percent (5%) of the commercial generator fee imposed under this chapter for administrative costs.

(B)

(1) Each commercial generator shall file a return with the Director of the Arkansas Department of Finance and Administration on or before the twentieth of each month.

(2) The return shall show the total commercial generator fees collected for each tire sold to the end user during the preceding calendar month.

(3) The commercial generator shall remit the commercial generator fees with the return.

(4) The Director of the Department of Finance and Administration shall prescribe the form and contents of the return.

(C)

(1) Each commercial generator is subject to the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101et seq., and any rules promulgated by the Arkansas Department of Finance and Administration.

(2) A commercial generator that is not registered with the Department of Finance and Administration remains subject to the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101et seq., and any rules promulgated by the Arkansas Department of Finance and Administration if the commercial generator is required by law to collect the commercial generator fee imposed under Ark. Code Ann. § 8-9-404(d).

Reg. 36.907 Fee Imposed After Sales Taxes Computed

The commercial generator fees imposed by this chapter shall be added to the total cost charged by the commercial generator to the end user after all applicable gross receipts and compensating use taxes on the tires have been computed and shall be separately stated on the invoice or bill of sale.

Reg. 36.908 No Additional Charge to End User

The commercial generator shall accept at no additional cost to the end user other than those fees collected under this regulation any or all used tires for which an end user paid the commercial generator fee.

Reg. 36.909 Revenues Deposited

(A) The Arkansas Department of Finance and Administration shall deposit the proceeds from commercial generator fees collected under Ark. Code Ann. § 8-9-404 into the State Treasury as special revenues to the credit of the following funds in the following percentages:

(1) Ninety-three percent (93%) to be deposited into the Used Tire Recycling Fund; and

(2) Seven percent (7%) to be deposited into the Arkansas Department of Environmental Quality Fee Trust Fund.

(B) The Used Tire Recycling Fund shall also consist of:

(1) Penalties assessed and collected under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401etseq.;

(2) Interest, earnings, and any other revenues as may be authorized by law;

(3) Any federal government moneys designated for deposit into the Used Tire Recycling Fund;

(4) Any gift or donation to the Used Tire Recycling Fund; and

(5) Those special revenues specified in Ark. Code Ann. §§ 8-9-404 and 19-6-301 (165).

Reg. 36.910 Administration of Used Tire Recycling Fund

The Used Tire Recycling Fund shall be administered by ADEQ for reimbursements and grants to used-tire programs and administrative expenditures as authorized by law and regulation.

CHAPTER 10 :PERSONS WHO IMPORT USED TIRES AND IMPORT FEES

Reg. 36.1001 Registration

When a person who imports used tires registers with the Department of Finance and Administration as a collector of the import fee as required under this chapter, the registration will include a procedure for registering with ADEQ to obtain an identifying number.

Reg. 36.1002 Import Fees Imposed

(A) Beginning on January 1, 2018, and pursuant to Ark. Code Ann. § 8-9-404, import fees are imposed on all used tires imported into Arkansas.

(B) As used in this regulation, "proceeds from import fees" means all moneys collected and received by the Arkansas Department of Finance and Administration for import fees imposed under Ark. Code Ann. § 8-9-404(c) and interest and penalties on delinquent rim removal fees.

Reg. 36.1003 Amount of Import Fee

Beginning on January 1, 2018, the import fee shall be imposed at a rate of one dollar ($1.00) for each used tire that is imported into Arkansas.

Reg. 36.1004 Exclusions and Exemptions

The import fees imposed by this chapter do not apply to any of the following:

(1) A solid wheel rim with an integral rubber covering;

(2) A tire used on a nonmotorized bicycle, golf cart, or lawn mower;

(3) Large retreaded tires;

(4) Tires included as part of the equipment of a new motor vehicle; or

(5) Tires included as part of the equipment of a used vehicle if included on the used vehicle at the time of sale and in the sales price of the used vehicle.

Reg. 36.1005 Duties of Person Who Imports Used Tires

Each person who imports used tires shall:

(1) Be registered with the Department of Finance and Administration as a person who imports used tires into Arkansas;

(2) Pay on a monthly basis to the Arkansas Department of Finance and Administration the import fees for the used tires that are imported into Arkansas each month;

(3) Comply with all requirements related to collecting and reporting import fees;

(4) Be registered with ADEQ as a person who imports used tires into Arkansas and have an identifying number used by the ADEQ; and

(5) Use the e-manifest system administered by ADEQ to account for each used tire imported into Arkansas.

Reg. 36.1006 Fee Remittance Procedure

(A) The import fee imposed under this chapter shall be paid by the person who imports the used tire into Arkansas to the Arkansas Department of Finance and Administration in accordance with the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101et seq., and any rules promulgated by the Arkansas Department of Finance and Administration.

(B)

(1) Each person who imports used tires shall file a return with the Director of the Arkansas Department of Finance and Administration on or before the twentieth of each month.

(2) The return shall show the total import fees collected for each used tire imported into Arkansas during the preceding calendar month.

(3) The person who imports used tires shall remit the import fees with the return.

(4) The Director of the Department of Finance and Administration shall prescribe the form and contents of the return.

(C)

(1) Each person who imports used tires into Arkansas is subject to the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101et seq., and any rules promulgated by the Arkansas Department of Finance and Administration.

(2) A person who imports used tires into Arkansas that is not registered with the Department of Finance and Administration is remains subject to the Arkansas Tax Procedure Act, Ark. Code Ann. § 26-18-101et seq., and any rules promulgated by the Arkansas Department of Finance and Administration if the person is required by law to collect the import fee.

Reg. 36.1007 Revenues Deposited

(A) The Arkansas Department of Finance and Administration shall deposit the proceeds from import fees collected under Ark. Code Ann. § 8-9-404 into the State Treasury as special revenues to the credit of the following funds in the following percentages:

(1) Ninety-three percent (93%) to be deposited into the Used Tire Recycling Fund; and

(2) Seven percent (7%) to be deposited into the Arkansas Department of Environmental Quality Fee Trust Fund.

(B) The Used Tire Recycling Fund shall also consist of:

(1) Penalties assessed and collected under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq.;

(2) Interest, earnings, and any other revenues as may be authorized by law;

(3) Any federal government moneys designated for deposit into the Used Tire Recycling Fund;

(4) Any gift or donation to the Used Tire Recycling Fund; and

(5) Those special revenues specified in Ark. Code Ann. §§ 8-9-404 and 19-6-301 (165).

Reg. 36.1008 Administration of the Used Tire Recycling Fund

The Used Tire Recycling Fund shall be administered by ADEQ for reimbursements and grants to used-tire programs and administrative expenditures as authorized by law and regulation.

CHAPTER 11 :DISBURSEMENTS FROM THE USED TIRE RECYCLING FUND

Reg. 36.1101 Applicability Generally

The ADEQ establishes the Tire Accountability Program to:

(1) Reimburse used-tire programs for used tire recycling and disposal costs;

(2) Incentivize recycling used tires collected under the Used Tire Recycling and Accountability Act, Ark. Code Ann. § 8-9-401et seq.;

(3) Provide accountability for the disbursement of moneys to used-tire programs; and

(4) Otherwise improve the sustainability of used-tire programs.

Reg. 36.1102 Eligibility for Reimbursement