ARA Efforts Defeat Scrappage Section of Energy Bill

Fairfax, VA - The Automotive Recyclers Association (ARA) prevailed in setting the record straight on vehicle scrappage programs in the United States Senate, thereby helping the professional auto recycler.

The auto recycling industry opposes vehicle scrappage programs that paint a bull's eye on small businesses by eliminating some of the very vehicles, vehicle parts, and marketing opportunities that some in the industry need to survive. Since "recycled" parts used in the repair and upkeep of older vehicles is a significant source of commerce for some professional automotive recyclers, motor vehicle scrappage programs post an economic threat.

In addition, the bill contains "vague" language that states the Secretary of Energy shall approve a plan that "provides an appropriate payment to the person recycling the scrapped automobile or light-duty truck." No standards were suggested for setting payment levels, thus no assurances that payments would be fair or adequate.

Over the past several weeks, professional automotive recyclers throughout the country wrote letters and phoned their United States Senators urging the vehicle scrappage section be stripped from the Energy bill currently before the U.S. Senate. Sen. Ben Nighthorse Campbell (R-CO) responded by offering an amendment removing the entire scrappage section that subsequently passed the full U.S. Senate by voice vote.