HALTING ILLEGAL ACTIVITY

“We are now at the point where, unless something changes radically, unlicensed operators will be processing more ELVs than professional auto recyclers. We consider this a crisis that must be addressed.” –Martha Cowell, SCADA Executive Director

lished this initiative as the highest priority for associ- ation resources. It is a new and ambitious approach that has already seen results in the appropriate regu- latory agencies implementing a long-term effort to pursue illegal operators. The initiative addresses five specific areas:

Data Development: SCADA is researching and developing a database of evidence showing the level of unlicensed, illegal, unsafe, and underground activ- ity occurring in California. The information is shared anonymously with the appropriate regulatory agen- cies. SCADA also encourages these agencies to use this data to pursue unlicensed operators. Regulatory Agencies: SCADA has reached out to senior management at the Department of Motor Vehicles (DMV), the State Water Board (SWRCB), the Department of Toxic Substances Control (DTSC), and the Board of Equalization (BOE), urging them to take proactive steps and work jointly to actively pursue the bad actors. It is sharing evidence of illegal activity, with the goal of gaining agency agreements to meet with SCADA on a quarterly basis to discuss progress and next steps. Vehicle Code Definitions: SCADA has also started a review of current definitions in the California Vehicle Code of relevant terms such as “salvage” and “total loss vehicle” to determine where revision or clarifica- tion might help the agencies and law enforcement. Environmental Groups: SCADA plans to reach out to representatives of the environmental community to enlist their support. Internal Communications: SCADA leadership and staff provide quarterly updates to their Board of Directors, the Government Relations Committee, and the membership on the progress made in these areas. Information was provided at this year’s Annual SCADA Convention and Trade Show in Napa. The association is also reaching out to non-members to enlist their support of the organization and this initiative. Cowell says the main challenges facing this initiative include educating the public policy makers and deal- ing with challenges from within the industry. “Many of the challenges that we face are with public

46 Automotive Recycling | January-February 2015

policymakers, which includes the environmental com- munity, as well as the legislature and regulatory agen- cies who do not understand much about the auto recycling industry,” said Cowell. “Most of them believe that all ELVs are processed by licensed auto disman- tlers, and therefore there will be no environmental problems if all licensed auto dismantlers comply with the law. This may have been true two decades ago when you needed a license to buy salvaged vehicles and a storefront business to sell parts, but now that there are almost no restrictions on who can buy sal- vage, and buyers use the Internet as their ‘go to’ source for parts. A dismantler’s license no longer has any value and, in fact, is a costly and risky liability.” “We also have some challenges within our own industry, primarily drops in membership and partici- pation in our industry trade associations. They are the organizations which are well-positioned to change public policy. The lack of time and money reflects back on how difficult it is for the law-abiding operation to stay in business these days.”

Challenges not withstanding, SCADA refuses to be deterred. In the past year alone, SCADA’s industry volunteers and staff have put in thousands of hours to demand that regulators and environmental groups turn their focus from licensed to the unlicensed and illegal entities whose unfair advantage in the market- place is driving increasing numbers of legitimate auto recyclers out of business.

SCADA also plans to continue using its database to enlist the assistance of the regulatory agencies, envi- ronmental groups, and other potential allies. “SCADA learned years ago that if we were going to have any influence over regulation, we had to be at the table when laws and regulations were being draft- ed,” said Cowell. “We needed to distinguish our industry as the licensed, responsible, and concerned partners in devising solutions to economic and envi- ronmental challenges rather than just a faceless industry without ethics or concern for the environ- ment. Building credibility where previously there was none has taken many years and millions of dollars from our meager budget.”

All this hard work is starting to pay off. SCADA reached out to senior management at its Department of Motor Vehicles, the State Water Resources Control Board, the Department of Toxic Substances Control and the Board of Equalization urging them to take proactive steps and work jointly to actively pursue unli- censed dismantlers. All of these agencies have com- mitted to taking action over the next few months and through 2015 to restrict the economic advantage that unregulated operators currently have.