From AAIA Capital Report

A final rule was published by the National Highway Traffic Safety Administration (NHTSA) on Feb. 2 concerning vehicle recycling requirements of the Car Allowance Rebate System (CARS) program, more commonly referred to as “Cash for Clunkers.”

Under the final rule, disposal facilities have been granted an additional 90 days to crush or shred a vehicle turned in under the program. The extended deadline affords facilities a total of 270 days to crush or shred the vehicle. Some 700,000 vehicles were turned in under the CARS program, most within one month, leaving many facilities with more vehicles than they could readily handle. NHTSA said the extended timeframe would allow the public increased access to used parts that could be removed from turned-in cars and also would permit recyclers opportunities to realize additional revenue from the same cars. 

The agency was persuaded that the chances of vehicles traded in under the program returning to the streets is not a great threat, though they acknowledged that the risk still exists until the vehicles are shredded or crushed. The effective date for the final rule was Feb. 2.

More details on Cash for Clunkers is available at www.cars.gov.