From AAIA Capital Report
Concerned about the impact of copper on waterways, legislation has recently been introduced in Rhode Island to reduce the amount of copper in motor vehicle brake pads. Specifically, the Rhode Island legislation would require brakes to have less than 5 percent by 2021, and meet a .5 percent standard at a future date to be determined by the state’s Department of Motor Vehicles.
The Automotive Aftermarket Industry Association (AAIA) has expressed concern regarding provisions included in the Rhode Island bill that would permit car companies to have an exemption from the copper requirements for cars produced prior to 2021, but would require aftermarket companies to meet the new standard for all vehicles beginning on that date. The bill does provide 10 years for inventory run-off, but AAIA has contended that it would not be cost-effective for aftermarket companies to warehouse product for an extended amount of time. In addition, AAIA questions why the aftermarket would not run into the same problems in producing low copper brake pads for legacy vehicles that would be experienced by original equipment brake pad producers.
The Rhode Island bill is nearly the same as legislation passed in Washington State earlier this year. In addition, California is working on similar legislation, which has generated strong opposition from industry groups due to the inclusion of a $1 fee on each “new axle friction materials set sold in the state” to fund compliance programs and mitigation. Legislation also has recently been introduced in New York, but it is unclear as to whether any action will occur this year.
To view a copy of the Rhode Island brake pad bill, visit
www.rilin.state.ri.us/billtext10/housetext10/h7997.pdf.