Peters Introduces Bipartisan, Cost-Saving Measure as First Senate Bill

Legislation Encourages Federal Agencies to Use Remanufactured Parts for Federal Vehicle Repair

WASHINGTON, DC –U.S. Senator Gary Peters (MI) introduced his first bill as a member of the Senate, the Federal Vehicle Repair Cost Savings Act, which will help save taxpayer dollars on repair of government vehicles by encouraging the use of remanufactured automotive parts. The bipartisan measure, introduced with Senator James Lankford (R-OK), requires federal agencies to encourage the use of remanufactured parts when doing so lowers costs, maintains quality and performance and does not compromise safety.

“Upkeep on federal vehicles is a nearly $1 billion annual expense, and remanufactured auto parts are not only less expensive, they help save energy and reduce waste and pollution,” said Senator Peters. “I’m proud that the first bill I’m introducing in the Senate is a bipartisan, commonsense measure that will help save taxpayers money, promote conservation by remanufacturing parts and support remanufacturing suppliers in Michigan and across the country.”

“The federal deficit this year is nearly half-a-trillion dollars,” said Senator Lankford. “Congress must consider every way to conserve limited federal dollars within every agency and every budget line-item. Encouraging remanufactured auto parts when repairing government vehicles is a worthy cost-cutting measure to save taxpayer money, and I’m pleased to co-sponsor this bill.”

Remanufactured parts are often less expensive than similar new parts and have been returned to same-as-new condition using a standardized industrial process. This legislation provides the necessary oversight to ensure that federal agencies are considering remanufactured parts to reduce their vehicle repair and maintenance costs. Using remanufactured parts such as engines, transmissions, alternators and starters helps reduce taxpayer burden, promotes conservation and supports the U.S auto supply industry.

The United States is the world’s largest producer, consumer and exporter of remanufactured goods. Remanufacturing of motor vehicle parts creates 30,653 full-time U.S. jobs, while remanufacturing of off-road equipment creates an additional 20,870 jobs.

“Remanufacturing is sustainable manufacturing,” said Steve Handschuh, President and CEO of the Motor and Equipment Manufacturers Association (MEMA). “With this bi-partisan legislation, our country is well positioned to take full advantage of the quality, value and sustainability benefits associated with remanufactured goods.”

Peters and Lankford previously introduced this measure in the House of Representatives after a Government Accountability Office (GAO) study they requested confirmed that the measure provided an opportunity to reduce the $1 billion in annual vehicle repair and maintenance expenses of approximately 588,000 government vehicles. 

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