Peters Remanufacturing Bill Headed to President’s Desk to be Signed into Law

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

WASHINGTON, DC – U.S. Senator Gary Peters (MI) today applauded the unanimous passage in the U.S. House of Representatives of legislation he introduced, the Federal Vehicle Repair Cost Savings Act, which 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 legislation is the first bill Peters introduced as a member of the U.S.  Senate in February, along with Republican Senator James Lankford (OK), and the bill now heads to the President’s desk to be signed into law. Congressman Bill Huizenga (MI-02) introduced the companion legislation in the U.S. House of Representatives.

“The federal government spends nearly $1 billion per year on maintenance for federal vehicles, and promoting the use of less expensive remanufactured parts for repairs will cut costs and save taxpayer dollars,” said Senator Peters. “I’m proud that the first bill I introduced in the Senate is now on its way to the President’s desk. This commonsense measure will help reduce spending while supporting Michigan’s growing remanufacturing industry.”

“This legislation demonstrates that even in a divided Washington, commonsense solutions that save taxpayer dollars and create jobs can pass Congress with strong bipartisan support,” said Congressman Huizenga. “Remanufacturing has the potential to be a significant source of job creation and economic growth, not only in West Michigan, but across the entire state. I look forward to working with Senator Peters in the future and providing more made in Michigan solutions to the challenges facing our nation.”

“Our nation has billions in waste and deficit spending this year, and any way we can save federal tax dollars should be explored,” said Senator Lankford. “Washington is in gridlock, but we refuse to sit by and do nothing when some small progress is possible. The Federal Vehicle Repair Cost Savings Act is a common-sense example of legislation that can help us fix our federal budget while fixing our federal vehicles.” 

The federal government spends nearly $1 billion annually to maintain a fleet of approximately 588,000 vehicles. The legislation provides the necessary oversight to ensure that federal agencies are considering remanufactured parts to reduce their vehicle repair and maintenance costs.

“We thank the House of Representatives for passing this important legislation, following passage by the Senate earlier this year,” said Steve Handschuh, President of the Motor & Equipment Manufacturers Association. “This has been a great example of a bipartisan legislation that benefits both the motor vehicle supplier industry and the federal government.  We appreciate the efforts of Senators Gary Peters and James Lankford, and the work by Congressman Bill Huizenga.”  

Remanufactured parts are often less expensive than new parts and have been returned to same-as-new condition through a standardized industrial process. Using remanufactured parts such as engines, transmissions, alternators and starters helps reduce taxpayer burden, conserves materials and supports the American auto supply industry.

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