The Automotive Service Association (ASA) and several other automotive repair industry groups have expressed concern about Section 803 of the Energy Policy Act of 2002 (S. 1766). Section 803 of the legislation, “Assistance for State Programs to Retire Fuel-Inefficient Motor Vehicles,” creates a federal vehicle scrappage program.
ASA, along with seven other organizations that oppose Section 803, sent the following letter to Senate Majority Leader Tom Daschle, D-S.D., to point out their concerns.
Editor's note: ASA encourages repairers to contact their U.S. senators to ask them to oppose Section 803 as included in Senate bill 1766, the Energy Policy Act of 2002. The phone number for the U.S. Senate switchboard is (202) 224-3121. See related article.
Jan. 4, 2002
The Honorable Thomas Daschle
United States Senate
Washington, D.C. 20510
Dear Senator Daschle:
The undersigned representatives of the automotive aftermarket industry are opposed to Section 803 of S. 1766, the “Energy Policy Act of 2002.” We urge your support in removing this provision from the bill.
Section 803, “Assistance for State Programs to Retire Fuel-Inefficient Motor Vehicles,” is an ill-conceived program that would use taxpayer dollars to federally fund state scrappage programs for motor vehicles more than 15 years old. This program will not achieve its intended goal of reducing U.S. fuel consumption, will have a detrimental effect on many small businesses and could actually cost American jobs.
This letter is written on behalf of the Automotive Aftermarket Industry Association (AAIA), the Automotive Engine Rebuilders Association (AERA), the Automotive Parts Rebuilders Association (APRA), the Automotive Service Association (ASA), the Automotive Warehouse Distributors Association (AWDA), the Specialty Equipment Market Association (SEMA) and the Tire Association of North America (TANA). The automotive aftermarket is a nearly $250 billion industry which employs approximately 4 million Americans in all 50 states. It is comprised of independent businesses that manufacture, rebuild, distribute, retail and install vehicle parts and perform service on all types of motor vehicles, including the 15-year-old and older vehicles this bill targets. Vehicle owners throughout the United States depend daily on aftermarket service and parts.
The scrappage programs Section 803 envisions would purchase vehicles that are 15 years old or older and require that they all be crushed into blocks of scrap metal. NO effort would be made to determine if cars crushed have intrinsic value as “classics” or parts-cars to vehicle hobbyists. No effort would be made to service or repair existing vehicles for continued use. No effort would be made to salvage some usable parts from these vehicles so that they can be rebuilt and reused to keep other vehicles running efficiently and safely.
These programs would not even determine if scrapped vehicles were regularly driven in the first place. Worse still, they would have a disproportionately adverse effect on lower- and fixed-income Americans, including the elderly and students, many of whom depend on the availability of these vehicles and replacement parts for them for daily transportation.
In addition, there is no guarantee scrapped vehicles would be replaced by more fuel-efficient models. Owners who surrender vehicles for crushing would receive a minimal payment and a future credit toward the purchase of a new fuel-efficient vehicle (defined as being 1/10th of a gallon over the current CAFE standard or better). Nothing in Section 803 prevents someone from receiving payment for scrapping a fuel-efficient 1986 compact and replacing it with a less fuel-efficient 2002 light truck or SUV.
Simply put, “old car” scrappage programs don't work. For years, aftermarket associations have advised state lawmakers and regulators that these initiatives are not cost-effective and do not positively impact overall fuel economy or air quality emissions. In fact, the opposite is often true. After reviewing the facts, most states have elected not to use vehicle scrappage programs to meet air quality goals.
Accordingly, our groups oppose Section 803 of S. 1766 for the following reasons:
- Sec. 803 does not guarantee that a scrapped vehicle will be replaced with a more fuel-efficient vehicle.
- Sec. 803 does not recognize that cars turned in for scrappage often are rarely driven second or third vehicles that have a minimal impact on overall fuel economy.
- Sec. 803 will diminish the availability of affordable transportation and repair parts to low- and fixed-income drivers as more and more older cars are crushed.
- Sec. 803 does not guarantee that low- and fixed-income individuals will be able to afford to purchase new vehicles - let alone more fuel-efficient vehicles - with the money provided by the scrappage program.
- Sec. 803 unfairly and unjustifiably denies automotive aftermarket businesses the availability of older cars necessary for us to market our products and services. As a consequence, our efforts to do business nationwide will be severely hampered.
- Sec. 803 requires that federally funded state scrappage programs crush every car. It threatens enthusiasts nationwide with the loss of valuable parts and parts-cars for repair, restoration and customization projects and unfairly penalizes parts rebuilders by depriving them of access to used parts which constitute the raw material of their businesses.
- Sec. 803 ignores other options like vehicle maintenance programs that maximize the fuel efficiency of existing vehicles. Dramatic fuel economy improvements can be achieved in older vehicles through relatively simple, inexpensive means: a tune-up, oil change, proper tire pressure, working exhaust system, etc.
The automotive aftermarket industry supports the nation's need to be fuel-efficient. In fact, we manufacture, rebuild, market, retail, service and install products that achieve important fuel savings and we are always looking for ways to improve these products and services. Sec. 803 will not save fuel. It will, however, wreak havoc in the automotive aftermarket and cost American jobs. Sec. 803 of S. 1766 should be scrapped.
Again, we respectfully request your opposition to Sec. 803 on behalf of the American automotive aftermarket industry, our member businesses and our millions of customers. If you have any questions, please feel free to contact us.
Sincerely,
Aaron Lowe, AAIA, AWDA; Michael J. Conlon, AERA, APRA; Robert L. Redding, Jr., ASA; Stephen McDonald and Brian Caudill, SEMA; Rebecca MacDicken, TANA
