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Peters Remanufacturing Bill Signed into Law by President

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

WASHINGTON, DC –President Obama has signed into law legislation introduced by U.S. Senator Gary Peters, 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.

“Maintaining the federal vehicle fleet is a nearly $1 billion annual expense, and promoting the use of remanufactured parts for repairs helps cut costs and ensure tax dollars are being used efficiently,” said Senator Peters. “I’m proud that the first bill I introduced in the Senate has been signed into law by the President. This commonsense, bipartisan law will help reduce wasteful spending and support Michigan’s growing remanufacturing industry.”

Peters introduced the legislation with Republican Senator Jim Lankford (OK), and Congressman Bill Huizenga (MI-2) introduced companion legislation in the House of Representatives.

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. 

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.