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.

Share Post

August 29, 2025
Northeast Recycling Council (NERC) Publishes 25 th Report Marking Six Years of Quarterly Data
By Recycled Materials Association July 29, 2025
The Northeast Recycling Council (NERC) has opened the 2025 Emerging Professionals (EP) Program . Now, in its third year, the program provides professionals who are new to the field of recycling, sustainability, and environmental stewardship with discounted access to NERC’s Conference and Foundations Course, sponsored by their employer organization. EPs gain valuable connections with seasoned industry professionals and peers while engaging in discussions on current trends, challenges, and innovations shaping the industry. This program is designed for those with three or fewer years of experience. “This year, EPs also receive a discount to our Foundations of Sustainable Materials Management course (a live, instructor-led training) developed to provide the key building blocks for understanding the industry,” said Mariane Medeiros, Senior Project Manager at NERC. “It’s a great way to close the loop: gaining both a strong technical foundation and real-world connections in one experience.” Read and Learn More.
By Chaz Miller June 30, 2025
Recycling coordinators know that some people and locations are stubbornly indifferent to recycling. COVID has ruptured civic values and behavior. Creating a recycling culture is harder than ever. Producers know how to sell their products. Now they need to learn how to sell recycling. On July 1, Oregon’s packaging and paper extended producer responsibility (EPR) program begins operating. This will be a first in our country. “Producers”, instead of local governments or private citizens, will be paying to recycle packages and paper products. Colorado’s program begins operating early in 2026. For years we have heard the theory of how packaging EPR will work. At last, we will get results. Five other states also have laws. Their programs should all be operating by 2030. None of the state laws have identical requirements. The Circular Action Alliance, the “producer responsibility organization” responsible for managing the program in most of those states, knows it has a lot on its plate. EPR laws are not new to the U.S. Thirty-two states already have laws that cover a wide variety of products such as electronics, paint, mattresses, batteries, etc. Those laws are relatively simple. Most cover one product. The producer group is a small number of companies. Goals and programs are focused and narrow. They are a mixed bag of success and failure. Packaging EPR is far more complex. The number of covered products is way higher. Thousands of companies are paying for these programs. Goals are challenging. Some are impossible to meet. In addition, local governments treat recycling as a normal service. Their residents will still call them if their recyclables aren’t picked up. It probably hasn’t helped that advocates tout EPR as the solution for recycling’s problems. We are told we will have more collection and better processing with higher recycling rates. Markets will improve and even stabilize. Some of this will happen, but not all. Collection and processing should go smoothly in Oregon. The state has high expectations for recycling. I have no doubt recycling will increase. Collection programs will blanket the state, giving more households the opportunity to recycle. I’m not sure, though, how much of an increase we will see. Recycling coordinators know that some people and locations are stubbornly indifferent to recycling. COVID has ruptured civic values and behavior. Creating a recycling culture is harder than ever. Producers know how to sell their products. Now they need to learn how to sell recycling. Another challenge is the “responsible end market” requirements. You’ve probably seen pictures of overseas dumps created by unscrupulous or just naïve plastics “recyclers”. In response, Oregon and the other states are requiring sellers and end markets to prove they are “responsible”. They must provide information about who and where they are, how they operate, how much was actually recycled, and more. Recycling end markets pushed back. Paper and metals recyclers argue they shouldn’t be covered. They don’t cause those problems. As for plastics, the general manager of one of America’s largest plastics recycling companies said his company now spends time and money gathering data and filling out forms to prove they’re “responsible”. His virgin resin competitors don’t have to. Ironically, we now import more plastics for recycling than we export. Maybe those countries should impose similar requirements on their plastics recyclers. Colorado faces unique problems. The mountain state is large. Its population is concentrated on the I-25 corridor running north and south through Denver with low population density elsewhere. Recycling collection and processing is limited as are end markets. To make matters worse, slightly more than half of its households use “subscription” services for waste and recycling collection. Those services are funded by the households, not by taxpayers. EPR doesn’t have this experience in other countries. Colorado gets to blaze this trail. The second state to go live poses substantive challenges for producers. The good news for both states? Local governments that pay for recycling collection and processing will see most of those costs go away. Consumers are unlikely to see prices rise, for now. National companies will simply spread their costs among all 50 states. Local and regional producers, unfortunately, don’t have that advantage. As for improved markets, remember that recyclables are and always will be commodities subject to the ups and downs of the economy. I don’t see substantive changes in recycling markets unless the producer group’s members try to manipulate markets to their own advantage. 2025 saw new laws and changes to existing laws. Maryland and Washington became the sixth and seventh packaging EPR states. At the same time, California is rewriting its regulations and Maine significantly revised its law. Some of these changes narrowed EPR’s scope to the dismay of advocates. I’m a member of Maryland’s EPR Advisory Council. We’ve been meeting for a year, discussing the Needs Assessment and now our new law. We have our own unique set of challenges. We also have a big advantage. We can learn from Oregon’s and Colorado’s experiences. Tune in next year to learn how we are progressing. Read on Waste360.