FOR IMMEDIATE RELEASE                                                  CONTACT:    Jennifer Zins, CAWA Govt Affairs Dir.
                                                                                                                916-871-0603

PHOENIX, January 12, 2010 - The California/Nevada/Arizona Automotive Wholesalers' Association (CAWA) announced today that Arizona Representative Michele Reagan has sponsored legislation on its behalf, to address a discrepancy in battery core sales and deposits.  The bill was introduced in the Arizona House of Representatives on Monday.

HB 2130 will update the amount of the recycling deposit that retailers can charge consumers that purchase automotive batteries to an amount that is not greater than the recycling deposit charged by battery manufacturers. 

Specifically the bill increases from $5 to not more than $15, the recycling deposit that a retailer can charge a consumer for the purchase of a new battery.  The deposit is returned to the consumer upon the return of the used battery core. In addition, the bill increases, from 30 days to 45 days, the amount of time a consumer has to return a used battery core for recycling, in order to have the recycling deposit returned in full.

In 1990, legislation was enacted that prohibits the disposal of automotive batteries in landfills or through incineration.  In addition, to encourage compliance, a refundable $5 deposit was established on the purchase of new automotive batteries.

Since the enactment of the law in 1990, many manufacturers currently require a higher deposit to the retailer than what state statute allows the retailer to charge to the consumer.  As a result, retailers are being monetarily penalized by the state-mandated recycling program every time a consumer fails to return a used automotive battery core.

"CAWA heard from our Arizona members how important this issue is for them, and as a result, we acted quickly and proactively to address this monetary discrepancy related to the sale and deposit of automotive batteries," stated Rodney K. Pierini, CAWA President & CEO.  "CAWA looks forward to working with Representative Reagan to advance this legislation through the process and ultimately signed into law to provide monetary relief for our members who sell batteries in Arizona."

Founded in 1955, CAWA is a nonprofit trade organization representing automotive jobbers, warehouse distributors, retailers, manufacturers and manufacturers' representatives in California, Nevada, and Arizona.  CAWA's mission is to provide communications, education, legislative and regulatory advocacy and group purchasing of services for its members while promoting the automotive aftermarket industry.

For additional information about CAWA and for the latest industry news, go to www.cawa.org.