WASHINGTON WATCHASA's Redding Shares Reg Insights
LAS VEGAS (Nov. 1, 2006) - On the eve of the midterm elections, Bob Redding, the Washington representative for the Automotive Service Association (ASA), shared his thoughts with the audience at the 2006 Congress of Automotive Repair and Service (CARS) held in early November.
He began with a quote from Charlie Cook's "The Cook Political Report," an independent, non-partisan newsletter that analyzes elections and campaigns for the U.S. House of Representatives, U.S. Senate, governors and president, as well as American political trends: "I can see a tsunami coming ... but I don't know if it's going to throw the Republicans out or throw everyone out."
"Shop licensing will be the No. 1 issue worth pursuing." Redding spoke with Motor Age about the changes that could occur, depending on the outcomes of House and Senate elections. Now that the elections are over, with a Democratic Party majority in both, here are some of his insights that could come into play with the next session of Congress.
Committee leadership Redding says that the Democrats' sweep into power will result in changes to the chairpersons of eight key House committees when Congress resumes in 2007. In addition, the chairpersons of the subcommittee for each will flip to a Democrat. Combined, they will have an impact on the independent automotive service and repair industry. John Dingle (D-MI) will replace Joe Barton (R-TX) as chair of the House Energy and Commerce Committee. It is expected that the chance for federal Right-to-Repair (R2R) legislation will be diminished. Redding adds that with a clear Democrat majority in both bodies in Congress, R2R legislation, even if introduced into the 110th Session of Congress, appears to be dead in the water. The Government Reform Committee will now to be chaired by Henry Waxman (D-CA). Redding says that the industry can expect the House to review where and what the federal government invests in, as Waxman's powers will include the authority to call public hearings in any area with a connection to government, to compel testimony from public and private sector officials and to order the release of documents. For example, Waxman, just after the election, told the Los Angeles Chamber of Commerce that many of the Bush administration's actions warranted investigation. From the automotive industry's perspective, these actions include political interference in regulatory decisions by the U.S. Environmental Protection Agency (EPA), as well as the Food and Drug Administration, specifically healthcare costs.
"Emissions testing could gain more prominence than they have in recent years." Redding adds that under Democrat leadership in other committees, the industry can expect to see better funding for education, including programs targeted for aspiring automotive professionals. He notes, however, that he expects more resistance to association health plans, particularly in the Senate, which is one reason that the Automotive Service Association (ASA) initiated a new healthcare program for its members.
Key political issues for 2007 Aside from leadership changes and their impacts at the committee level, a number of key issues will likely be addressed during 2007. Some will have a federal aspect, but many will be focused at the state level. "Shop licensing will be the No. 1 issue worth pursuing," says Redding. From both a mechanical and collision perspective, Redding argues that strong and effective legislations at the state level will be a boon for independent aftermarket shops. He shares that there have already been some meetings with government committees. Fifty-state safety inspections are another priority, maintains Redding. The safety of the motoring public hinges on implementing and enforcing safety inspections, and that's good news for automotive shops. "NHTSA is not working diligently enough on this," Redding says. "Nineteen states currently have mandatory safety inspections, and several other states support legislation, but have yet to allocate resources and funding. The industry may have to cooperate with consumer organizations first to get more traction here." Redding expects the proponents for R2R legislation to change direction and instead turn their attention to focusing on the state level; the measure has already been introduced in New Jersey. He notes that the voluntary NASTF solution is working and that state assemblies need to hear the good news, too, in order to make fair, balanced decisions that represent the entire industry. Redding expects a review of, and changes to, the Clean Air Act of 1995 (CAA) to be overseen by Waxman's Government Reform Committee: "The Senate has been diluting the CAA, and there is also concern that the EPA has been throwing initiatives under the bus." In particular, efforts to enact nationwide inspections and testing of all on-road vehicles are expected. "Emissions testing could gain more prominence than they have in recent years," says Redding. He notes, however, that the threat of 150,000-mile/15-year "super" warranties, as a means to maintain safe emissions levels, will have a negative impact on the independent automotive service industry if left unchallenged. He notes some progress being made recently: In Washington state, the state legislature removed super warranty provisions from its emissions-based regulation. More training and enforcement of EPA's Paint Regulation is likely forthcoming, which will affect how automotive refinishing products are handled. For instance, specific requirements for welding applications where Chromium-6 is involved may be developed to keep exposure levels below a minimum level. Expect the Occupational Safety and Health Administration (OSHA) to have a role in the formation and enforcement of future regulations. On the whole, repairers can expect 2007 to be a year of change for the better. But change won't just happen, Redding points out. The industry needs to be proactive and continue to work hard for relevant and positive changes. In today's competitive environment, sitting back simply isn't an option anymore.
