Remanufactured auto parts bill clears Senate committee

April 23, 2015
A bill that encourages federal fleet managers to consider purchasing remanufactured auto parts got off to a quick start in this Congress as it passed the Senate Homeland Security and Governmental Affairs Committee with no opposition.

A bill that encourages federal fleet managers to consider purchasing remanufactured auto parts got off to a quick start in this Congress. It’s not often that a bill passes a committee a week after it is introduced.

But that’s what happened with the Federal Vehicle Repair Cost Savings Act of 2015 (S. 565). It passed the Senate Homeland Security and Governmental Affairs Committee by a voice vote – meaning there was no opposition – on March 4.

The bill says the head of every federal agency "shall encourage the use of remanufactured vehicle components to maintain Federal vehicles, if using such components reduces the cost of maintaining the Federal vehicles while maintaining quality."

It then explicitly goes on to add that remanufactured parts should not be used if they lower "the quality of vehicle performance, as determined by the employee of the Federal agency responsible for the repair decision; or delays the return to service of a vehicle."

The bill was introduced in the Senate on February 25, 2015 by Sens. Gary Peters (D-MI) and James Lankford (R-OK). Both men are newly elected to the Senate, having served last year in the House, where they were co-sponsors of the federal vehicle repair bill.  Their bill never went anywhere last year.

But all of a sudden in 2015, as both men ascend to the Senate, the bill is suddenly accelerating. "It was a two-fer times two," says Tom Lehner, Vice President, Public Policy at the Motor & Equipment Manufacturers Association, which supports the bill, referring to both promotions and both senators landing on the Senate committee with jurisdiction over the issue. 

Senate sources say Peters is optimistic his bill will receive bipartisan support when it is considered by the full Senate. However, since the Senate is controlled by Republicans, Lankford is the key player here, since he, presumably, has more influence over Senate Majority Leader Mitch McConnell (R-KY), who decides which bills come to the Senate floor for a vote, and when. Lankford's office did not respond to an email query wondering whether Lankford has had any conversations with McConnell about the bill.

At this stage, there doesn't appear to be any opposition to the bill.

Lehner expects to have House co-sponsors to announce soon, and hopes they will have more luck this year in the House than Peters and Lankford did last year.

Both the International Trade Commission and Governmental Accountability Office (GAO) have released reports in recent years laying out the potential for federal savings if federal fleets used remanufactured parts, which few do. The 2013 GAO report found that there are approximately 588,000 vehicles in the civilian federal fleet. Federal agencies spent approximately $975 million on repair and maintenance of the federal fleet in 2011. Remanufactured vehicle components, such as engines, starters, alternators, steering racks, and clutches, tend to be less expensive than comparable new replacement parts.

Lehner says remanufactured parts, which are fully tested, and fully warranted, can cost as much as 25 percent less than a new part, and their remanufacturing saves energy for the company that remanufactures them.

The U.S. Postal Service and the Department of the Interior both informed the Government Accountability Office that the respective agencies rely on the use of remanufactured vehicle components to reduce costs.

According to Lehner, Pennsylvania and Michigan have recently passed legislation that tracks the federal bill. California has put an administrative directive in place.

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