License & Permit
Scrap Tire Hauler Bond
A scrap tire hauler bond is a bond a state environmental agency requires before it permits you to haul scrap or waste tires.
- Required by
- State environmental agencies (in Alabama, the Alabama Department of Environmental Management)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond gives the state environmental agency (the obligee) money for cleanup and restoration if tires you haul are spilled, dumped, or mismanaged. In Alabama the bond names ADEM as obligee and covers cleanup after a transportation-related accident or event. If the agency draws on the bond, the hauler must repay the surety and usually replace the bond.
Who needs it
- Scrap and waste tire haulers and transporters
- Tire dealers and retreaders that haul their own scrap tires
- Tire recyclers and processors that pick up tires
What the underwriter looks at
- Personal and business credit
- Years in the hauling business
- Compliance and permit history
- Number of tires and trucks
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the Alabama scrap tire transporter bond?
Alabama's rule (Ala. Admin. Code 335-4-8) sets the transporter bond at $10,000, with ADEM as obligee. If ADEM draws on the bond, you must notify ADEM within 24 hours and post another $10,000 of financial assurance within five days.
Can I use something other than a bond?
In Alabama, yes. The rule also accepts documented net worth equal to ten times the bond amount, subject to ADEM approval. Other states have their own options.
How long is the permit good for?
ADEM issues scrap tire transporter permits for three years. Keep the bond in force for the whole permit period.