ARA Secures Legislative Wins to Defend the Industry

ARA is currently monitoring over 76 pieces of legislation and regulatory actions both in the states and federally.

In the first month of the new year, ARA has already secured several legislative successes in state legislatures. ARA has successfully defended the automotive recycling industry by advocating for the use of recycled original equipment parts, the use of aftermarket parts, and the importance of automotive recyclers within the end-of-life framework for electric vehicles. So far, ARA has been working with local recyclers and industry stakeholders in multiple states such as Washington, Idaho, and Florida.
In Washington State, ARA opposed House Bill 2011 and Senate Bill 6252. ARA has successfully opposed this piece of legislation in past years and once again worked to ensure that it would not become law. These two bills require that any insurance covered vehicle repair follow OEM procedures and processes. ARA raised concerns with this language since several OEMs have public processes and procedures that disallow the use for recycled original equipment motor vehicle repair parts. After submitting testimony opposing the set of bills, ARA had productive conversations with the bill sponsors. Both of these bills will not move forward this year.
In Idaho, ARA opposed Senate Bill 1233 along with local recyclers and industry stakeholders. Senate Bill 1233 took a hard position against the use of aftermarket repair parts and repair parts not sourced by an OEM. For example, in the case an insurance repair includes the use of aftermarket or repair parts not sourced from an OEM, the bill would require an insured vehicle owner to receive a written estimate containing a statement that “use of nonoriginal equipment manufacturer (non-OEM) crash parts may affect the safety and performance of your vehicle. It is recommended that you consult with a qualified industry expert or repair shop before making any decisions regarding the use of non-OEM crash parts.” This statement is designed to dissuade vehicle owners from using any part other than one sourced directly from an OEM. ARA is pleased to have testified against the bill and to announce that the bill will not be moving forward.
In Florida, ARA worked closely with Florida Auto Dismantlers & Recyclers Association (FADRA) to provide input on a bill that would create a deposit program for electric vehicle batteries. The bill sought to create a battery deposit program that appears to mimic a can deposit program where a vehicle owner will receive a statutorily prescribed dollar amount when a battery or vehicle containing a battery is: (1) relinquished or sold to a motor vehicle dealer or motor vehicle repair shop; (2) a vehicle’s titleholder provides proof of the vehicle leaving the state; (3) a vehicle’s titleholder proves the vehicle was stolen; (4) a fire department can claim the deposit if they extinguish a battery fire originating from a vehicle. As written, the bill makes the assumption that the mere act of returning a battery electric vehicle or battery to a dealer or repair shop will result in the responsible handling of a high voltage battery. ARA and FADRA were able to communicate the importance of the automotive recycling industry in relation to the processing and safe handling of high voltage vehicle batteries and welcome further cooperation between our associations and the legislature in preparing effective electric vehicle battery management policy.
It has only been one month since the start of 2024 legislative sessions throughout the state legislatures and ARA has already secured important wins for the automotive recycling industry. ARA is currently monitoring over 76 pieces of legislation and regulatory actions both in the states and federally. As the advocate for the automotive recycling industry, ARA continues to promote the importance of the automotive recycling industry on the vehicle repair market and the environment. ARA is here to work with local and state affiliates on legislative and policy matters and will continue its work to advocate for the industry.