Why a Market-Based Tire Recycling System Shouldn’t Be Scrapped

March 12, 2019

March 12, 2019


This guest blog is courtesy of Paul Arellano.


Tire recycling is a mixed industry. There are government regulations that determine how to legally dispose of used tires, yet the system is still largely market-based. There are some who favor greater government control of the tire recycling industry. While it’s true that government regulation is a necessity, a market-based system shouldn’t be scrapped entirely.


Pros and Cons of a Market-Based System


Although a market-based system has its benefits, there is no doubt this industry would look very different without government involvement. Many businesses and individuals would probably choose not to recycle, but rather dispose of their tires in a landfill if there were no penalties for doing so. There might be less of a demand for rubber in the civil engineering industry if the government did not award tire recycling grants.


The current system has seen great success, however, and greater government regulation may not be necessary.


A 90% Success Rate


In any recycling effort, a 90% success rate is cause for celebration. The recycling programs in the state of Maine and the City of San Francisco serve as two shining examples. Maine’s 90% success rate for beverage reclamation is lauded as an industry benchmark. In San Francisco, the city’s 80% diversion rate frequently garners praise.


The recycling rate for the scrap tire industry is particularly impressive when one considers that anything metal typically enjoys a more mature recycling market than that of non-metallic recyclables.


It’s worth noting that U.S. laws have largely taken a hands-off approach to requiring vehicle or home appliance manufacturers to finance the recycling costs of their products. This is because the recycling markets within these industries continue to thrive without product stewardship laws, just as the recycling markets for scrap tires do.


Pros and Cons of a Government-Controlled System


Government regulation increases the demand for tire recycling services and tire-derived products. It incentivizes proper disposal of tires and protects the environment. A system entirely controlled by the government, however, would ultimately be detrimental.


Well-intentioned lawmakers often meddle with a well-functioning system in an effort to make it work even more efficiently. The effect can be deleterious, to say the least. Take, for example, Connecticut Senate Bill 869, which would explore the benefits of establishing licenses or permits for tire haulers, along with developing a new stewardship program. This program would force tire producers to increase prices to cover the end-of-life costs associated with the disposal of their products.


In its support of SB 869, the Connecticut Recyclers Coalition (CRC) points out that it has supported other producer responsibility efforts in the areas of e-waste, paint, and mattresses, and each of those programs have resulted in significant savings for taxpayers and municipalities.


While it is difficult to argue with the successes the CRC identifies regarding paint, electronic waste, and mattresses, scrap tires shouldn’t necessarily be brought under the same umbrella.


The TIA Weighs In


In its written testimony to the Connecticut Senate Environment Committee, the Tire Industry Association (TIA) writes: “Based on the knowledge we have from within the industry, the shared responsibility approach to scrap tire management has been very successful in the United States.”


Continuing this line of discussion, the TIA elaborates:

“The free-market based shared responsibility approach has established a successful, stable scrap tire management infrastructure, regulated by state laws governing tire hauling, storage, processing and end-use markets to ensure the system is properly maintained and operated.”


A Self-Governing and Self-Sustaining Industry


The tire recycling industry has taken great care to clean up its act and its image. Technology has assisted this effort tremendously.



This is not to say, of course, that the scrap tire industry hasn’t been helped by state and local laws regulating tire hauling, storage and processing. It has. The difference is that these regulatory efforts have worked in concert with the industry. Additional legislation like Connecticut SB 869, by contrast, would disrupt the industry by adding unnecessary layers of bureaucracy, increasing costs without adding appreciable benefits, and creating barriers to a system already known for innovation and efficiency.


Paul Arellano is the Sales & Marketing Manager at Lakin Tire, a tire recycling company that was founded in 1918—its motto—giving new life to old tires through creative thinking, innovative recycling processes and optimized scrap-tire management.


NERC welcomes Guest Blog submissions. To inquire about submitting articles contact Lynn Rubinstein. Disclaimer: Guest blogs represent the opinion of the writers and may not reflect the policy or position of the Northeast Recycling Council, Inc.

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By Cole Rosengren October 15, 2025
Stress levels are high for CPG companies and packaging groups as extended producer responsibility programs unfold in multiple states. This was on display at three recent Boston events hosted by the Sustainable Packaging Coalition, How2Recycle and the Northeast Recycling Council, with questions flying about costs, policy harmonization and relationships with regulators. Paul Nowak, executive director of GreenBlue, adopted the role of support group leader for a room full of representatives from many of the world’s largest CPG companies in his opening talk at SPC Advance. He reminded them that “you are not alone” and urged them to take the long view on this major industry shift. “What you see at the end of the change is not what you see during the change,” said Nowak, drawing on examples from prior industry shifts as well as other major life events. “You are in this uncomfortable period right now where it’s not moving as rapidly as you would think and you don’t have the historic perspective yet of where it could go.” Sticker shock While CPGs are familiar with EPR costs from programs in other countries, the complexity and scale of the U.S. rollout in seven states is presenting its own unique challenges. Oregon is the only state that’s begun collecting fees, and already the costs are high. Circular Action Alliance, the producer responsibility organization selected for the majority of state programs to date, estimates a budget of $188 million in the program’s first year, with that figure growing in the years ahead. Charlie Schwarze, board chair for CAA and senior director of packaging stewardship at Keurig Dr Pepper, said the costs are starting to resonate with major companies. KDP, for example, has been working to sort out different aspects of its packaging in terms of licensing arrangements, private label manufacturing partnerships and other factors. This requires a close relationship with the company’s finance, R&D and procurement teams to gather data and make cost projections. “It’s been a bit of a slow-moving process because the dollars, at least in 2025, are not extremely notable. But they’re going to get bigger pretty quickly,” he said, citing Colorado and California’s programs on the horizon. Shane Buckingham, chief of staff at CAA, said it will be months until companies have a better sense of the true costs. The group set initial fees for California, which won’t be invoiced until August 2026, but those fee levels are expected to change once SB 54 regulations are finalized . “Please don’t take our early fee schedule of being indicative of what your cost will be in 2027, it’s just a drop in the bucket,” he said. “The fees are going to go up significantly in California because we have to fund a $500 million [plastic] mitigation fund, we’re going to have system funding to improve recycling, source reduction, reuse, refill.” SPC Director Olga Kachook encouraged attendees to think about these fees as motivation to innovate rather than a burden. In her view, avoided fees through ecomodulation could be viewed as “possible new investment capital” for covering the costs of material switches, R&D, MRF testing, consumer education campaigns and more. “We can innovate to those lower fees by switching to incentivized materials and formats and then we can reinvest the savings back into sustainable materials and infrastructure that seemed out of reach,” she said. Searching for harmony All three events also featured ample discussion about if or how aspects of current EPR programs could be better aligned. While regulators are working to align certain definitions where possible, they also noted that certain state programs were uniquely designed for a reason. David Allaway, senior policy analyst at the Oregon Department of Environmental Quality, said during NERC’s Rethink Resource Use Conference that he sees a potential benefit to harmonizing ecomodulation approaches in some cases. But at the same time, he said, “I fear that the push for harmonization will lead to a race to the bottom” by potentially limiting the ability for states to craft policies based on their respective needs. As for those who critique other unique aspects of Oregon’s law, such as responsible end market requirements , Allaway said “that’s not negotiable for us,” as market issues were a leading motivation for the law in the first place. Allaway said Oregon’s system was established based on specific regional priorities, such as putting an end to exporting certain types of material that led to dumping in other countries. The state’s approach to ecomodulation and life cycle analysis is also informed by years of work on greenhouse gas inventories and consumption-based accounting, which challenges many commonly held assumptions about recyclability . Each state has its own unique factors in terms of collection access and market infrastructure. Colorado, for example, has many areas that will be getting recycling service for the first time. Maine also has many rural areas that previously had access to recycling but lost it in recent years. Meanwhile, in Maryland, collection service may be more common but local end markets are lacking for certain commodities. Jason Bergquist, vice president of consulting firm RecycleMe, said during the NERC event that he hears concerns from clients about where this is all headed. “If we get to a couple years down the road and we’ve got, let’s just pretend, 25 states with EPR, with different deadlines, different [covered material] lists, different definitions, different ecomodulation — my concern as a fan of EPR is that the pushback will be so significant that it could get existential for the producers,” he said, in terms of costs and compliance management. At the same time, Bergquist said the experiences of packaging EPR in Europe and Canada show it may take years to get toward any kind of harmonized system. Back at SPC Advance and the co-located How2Recycle Summit, California loomed large throughout the week when it came to these questions. Karen Kayfetz, chief of CalRecycle’s product stewardship branch, said regulators from different EPR states try to talk to one another as much as possible but in some cases they’re limited by the statutes that created these programs. “We each have our own legal frameworks we have to work within,” she said. “So harmonization starts with the legislatures, and that is not our responsibility, but it is something that we could see change and evolve over the coming years.” As all of these complex questions get worked out, Kayfetz reminded attendees that CalRecycle may currently be “the face” of the program but that’s not the long-term goal. “What would make me the happiest is if you leave here thinking ‘let’s go talk more to CAA.’ Because EPR is a policy mechanism that is meant to be a public-private partnership where the public entity ... is overseeing the PRO,” she said. “They are your partner and we are their police.” In a separate session, CAA’s Buckingham described the work of ramping up different state fee and reporting programs as building a plane while flying it. The group is working to streamline its own reporting processes as much as possible, but they and others anticipate things will only get more complicated in the near term. “2026 will bring with it a new set of EPR laws and recycled content laws,” predicted KDP’s Schwarze, “and they’re going to be different than what we have right now.” Read on Packaging Dive.
September 17, 2025
The City of Medford won the 2025 Environmental Leadership Award for Outstanding Community presented by the Northeast Recycling Council, for its innovative work to reduce waste and create a more sustainable waste collection system through the City’s free curbside composting program. “I'm thankful to our team at City Hall, the Solid Waste Taskforce, our consultants Strategy Zero Waste and our volunteers for working so hard to launch our curbside composting program and making it such a meaningful success for our community,” Mayor Breanna Lungo-Koehn said. “This award shows that the work we’re doing in both composting and recycling is having real, transformative effects on how our community thinks about waste and the steps we’re taking to create a more sustainable environment for the future. We are honored to be recognized by the Northeast Recycling Council for these efforts.” Each year, NERC honors a community, an organization, and an individual for their outstanding contributions to recycling education and innovation. This year will mark the 9th annual Environmental Leadership Awards Ceremony, recognizing individuals and organizations who help further NERC’s waste and recycling goals. “Our committee is wholeheartedly impressed by the work of the City of Medford, and how important and impactful that work is for the community,” said Sophie Leone, Development and Program Manager at NERC. “It is a perfect representation of NERC’s mission to minimize waste, conserve natural resources, and advance a sustainable economy through facilitated collaboration and action and we are very excited to bestow the City of Medford with this award.” You can read more about the Environmental Leadership Awards here . And if you haven’t signed up for Medford’s free curbside composting program, you can do that at medfordcomposts.com . Read on MedfordMA.org.
By Resource Recycling September 10, 2025
In the Northeast, recycled commodity prices continued to decline in April-June, with MRFs experiencing an average decrease of nearly 6% compared to the first quarter of 2025, according to the Northeast Recycling Council’s (NERC) second-quarter MRF Values Survey Report. NERC’s 25th quarterly report analyzed data from 19 MRFs across 12 states, excluding two facilities from the average blended value “because they did not market enough commodities within Q2 to provide a representative comparison with other MRFs.” Compared to the previous quarter, the responding MRFs reported average values per ton for blended recyclables with residuals at $82.68, a decrease of 7.74%, or $96.21 per ton, a 5.99% decline without residuals. Thirteen of the 17 MRFs contributing to the weighted average were single-stream, while four operated on a dual-stream/source-separated basis. In the Northeast, dual-stream facilities reported a blended value of $99.74 without residuals and $86.52 including residuals, experiencing decreases of 7% and 7.16% from the previous quarter, respectively. Single-stream MRFs recorded blended values of $95.08 without residuals, down 5.7%, and $81.28,down 8.3%, with residuals. Factors such as tariffs and weak demand have led major waste haulers to adjust their forecasts, anticipating challenges due to economic uncertainty for the remainder of 2025. This dip in commodity prices was reflected in second-quarter earnings reports, with four companies reporting an average year-over-year decrease of 15% in commodity values. Houston-based WM projected a $15 million decline in earnings before interest, taxes, depreciation, and amortization due to softening demand. However, the emergence of new and upgraded polymer facilities is enhancing processing capabilities, driven by the expectation of high demand for recycled PET. A version of this story appeared in Resource Recycling on Sept 9. Read on Resource Recycling.