New York State Bans Use of Recycled Air Bags

New York is poised to become the only state to ban the installation of recycled air bag modules in cars, a move that an association of automotive recyclers said will cost them millions and drive up insurance premiums for motorists.

The ban on the recycled parts from nondeployed air bags goes into effect Dec. 13, according to the Automotive Recyclers Association of New York, which last month lost a bid in the state Court of Appeals to keep the cheaper, recycled parts legal.

The group, based in Vestal, Broome County, is asking its members to blitz lawmakers in the hopes of overturning the contested 1996 state law, which effectively bans the parts' use. That law's effective date was delayed pending the outcome of the legal challenges.

But the practice of reusing the air bag modules, which contain the explosive elements that deploy the bags in an accident, is opposed by many insurers and the makers of car safety equipment. They argue there is no proven way to certify that the modules are sound.

"There's going to be some good ones there. They're not all bad, but we feel that's an increased risk that an automobile buyer or occupant shouldn't take," said George Kirchoff, president of the Automotive Occupants Restraints Council, a Lexington, Ky.-based group that represents the manufacturers of air bags, seat belts and other automotive safety devices.

New air bag modules cost $1,200 to $1,500, said Walt Adams, executive director of the state automotive recyclers' group. A recycled one costs between $200 and $600, he said.

As air bags proliferate in automotive steering columns, dashboards, doors and roof panels, the association said New York's roughly 900 licensed automotive dismantlers and recyclers stand to lose $32.4 million in sales a year. They also could be left with an inventory of $135 million worth of modules they can't sell.

At issue is the 1996 law requiring that after March 1998 all salvaged air bags be certified according to national safety standards approved by the DMV commissioner. But the DMV said there were no recognized standards, effectively requiring that only new parts be used.

According to Adams, the impact will be manifold.  Automotive dismantlers are stuck holding an average of approximately $150,000 in now worthless inventory of recycled air bag modules.
Other problems created from this decision, include automotive dismantlers being at an extreme disadvantage in bidding on vehicles at salvage auctions because the non-deployed air bag modules in many vehicles will have no value to the New York bidder.  And, the loss of revenue due to the inability to sell recycled air bags will force many smaller automotive dismantlers out of business.
The Automotive Recyclers Association was unsuccessful in its court bid to secure a stay of execution of the ban order. 

Despite this, the association is in the process of working to enact legislation in Albany that would permit the sale of recycled air bags by licensed automotive dismantlers only.
As a cautionary note, Adams notes that automotive dismantlers in other states should begin efforts along those lines immediately.

Last year, Justice Joseph Teresi of state Supreme Court in Albany County ruled in favor of the automotive recyclers' group, barring the DMV from enforcing the new parts rule. The DMV appealed that ruling.

Adams, the group's executive, said the industry has tested reused modules and found them to deploy properly. And he said salvagers do weed out modules from flooded or fire-damaged cars, which could cause problems.