FOR IMMEDIATE RELEASE
Contact:  Jennifer Zins, 916-871-0603

CAWA and AAIA Work with Stakeholders to Resolve Aftermarket Concerns

SACRAMENTO, California - September 1, 2010 - The California Automotive Wholesalers' Association (CAWA) and the Automotive Aftermarket Industry Association (AAIA) announced today that SB 346 (Kehoe) has been approved by the California Legislature and now advances to Governor Schwarzenegger's office for consideration.

SB 346 was introduced into the California Legislature by Senator Kehoe (D-San Diego) in early 2009.  At that time, the bill, sponsored by Sustainable Conservation (SusCon) sought to limit copper content in brake friction materials and also required at least a $1.00 fee on each axle pad set sold which would be collected by retailers and installers with no guarantee that the fee would not increase.  Lastly the bill sought to impose penalties for non compliance upwards of $10,000 per violation. 

Since that time, negotiations with stakeholders and Senator Kehoe's office have concluded fruitfully on the bill which resulted in successfully addressing industry's key concerns and subsequent removal of industry opposition.  Key among CAWA and AAIA concerns was the removal of the brake pad fee and retailer and installer collection points.

"CAWA and AAIA worked with an industry wide coalition that included the Motor and Equipment Manufacturers Association (MEMA), both domestic and international vehicle manufacturer alliances, friction material manufacturers, the retailers' association and the repair industry," stated Rodney K. Pierini, CAWA President & CEO.  "The resulting bill was the result of a strong commitment by the environmental community water agencies, vehicle manufacturers and the aftermarket to work through our differences and develop a workable process for reducing copper in brake pads that ensures consumer safety and minimizes the economic impact on small businesses," Pierini added.

The amended legislation which is supported by all industry groups, now requires a two-step reduction in friction material copper content to no more than five percent after 2021 and no more than five tenths of one percent after 2025; exempts friction materials for use on vehicles manufactured prior to the above compliance dates - otherwise known as a legacy vehicle exemption; creates an advisory board to review applications for and a process to follow for vehicles manufactured after the compliance dates that will not be able to meet the deadlines - otherwise referred to as an "offramp" and gives regulators discretion in the enforcement of the bill's provisions if there is evidence that any violation was inadvertent.  The only fee in the bill now is for vehicle manufacturers who may need to participate in the offramp review process.

The bill now advances to the Governor who has until the end of September to sign or veto the measure.

"We are pleased that our industry issues were resolved in a collaborative and collegial way that allows the aftermarket a rational pathway to compliance," stated Aaron Lowe, Vice President, Government Affairs for AAIA.  "While challenges lie ahead for the aftermarket in meeting the aggressive goals established in this bill; we are committed to moving forward in reducing copper in brake pads and urge the governor to sign this legislation when it reaches his desk," Lowe declared.

About CAWA - 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.  www.cawa.org

About AAIA - AAIA is a Bethesda, MD, based association who's more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tool, equipment, materials and supplies.  Through its membership, AAIA represents more than 100,000 repair shops, parts stores and distribution outlets.  www.aftermarket.org

To view the full text of SB 346 click here.