On October 7, President Obama signed The Federal Vehicle Repair Cost Savings Act of 2015. As a result, USA’s new remanufacturing legislation is now law.
The new law requires federal agencies to encourage the use of remanufactured parts in federal vehicle repairs when doing so lowers costs, maintains quality and performance, and does not compromise safety.
The bipartisan legislation was introduced by Senator Gary Peters (D-Mich.) and Senator James Lankford (R-Okla.) in February 2015. One month later, in March, Congressman Bill Huizenga (D-Mich.) introduced the companion legislation in the U.S. House of Representatives.
The Motor & Equipment Manufacturers Association (MEMA) and its remanufacturing division the Motor & Equipment Remanufacturers Association (MERA) applaud the efforts of policymakers and industry members for pursuing this effort.
John Chalifoux, president and COO, MERA, stated, “It is clear the leaders of our country recognize the quality, value and sustainability benefits of remanufactured products. This new law will lead to a reduction in government spending, while supporting good jobs in the remanufacturing industry. This legislation is a big win for workers in the remanufacturing industry and our nation.”
The background to the new law is a 2013 Government Accountability Office report which found that the US government owns a fleet of about 588,000 vehicles for which the cost of maintenance has risen to nearly 1 billion dollars.
Overall remanufacturing of motor vehicle parts in the US is believed to provide 30,653 full-time U.S. jobs, while remanufacturing of off-road equipment will provide an additional 20,870 jobs.