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Congress Almost Killed Catalytic Converter Recycling

At the 49th Annual IPMI Conference in Scottsdale, AZ, Ed and Rich sat down with Julie Dobbs (Head of Legal Counsel & Compliance, Elemental North America) and Becky Berube (President, United Catalyst Corporation) to unpack one of the most important industry threats recyclers have faced in years: the federal PART Act bill. 

This legislation, backed by Senator Amy Klobuchar and Representative Beyer, aimed to stop catalytic converter theft — but an overlooked clause nearly shut down the entire recycling industry. 

 

What Was in the PART Act Bill? 

The bill was introduced in both the House and Senate with broad support. Its intent was straightforward: curb catalytic converter theft and make transactions more transparent. 

But hidden in the language was a critical issue:
it would have made it unlawful to sell any detached catalytic converter. 

For recyclers, that meant millions of converters could never legally enter the recycling stream. Instead, they would be scrapped with car bodies, melted down in steel furnaces, or worse — landfilled. The result? A massive loss of critical resources like platinum, palladium, and rhodium. 

 

Why the Industry Pushed Back 

The IPMI PAC Committee quickly mobilized. They worked with the Senate Commerce Committee, Representative Beyer’s office, and other stakeholders to highlight the unintended consequences. 

Key concerns included: 

  • Detached Converter Ban → Would block the flow of scrap converters into legitimate recycling channels. 
  • VIN Marking Requirements → Unrealistic for millions of converters already above ground. Could also expand into other scrap sectors (electronics, appliances, machinery). 
  • Payment Restrictions → Original language was unclear. IPMI argued for traceable forms of payment (wires, checks, electronic transfers) instead of blanket bans. 

Without these changes, the bill could have crippled the secondary supply chain and jeopardized U.S. access to critical minerals. 

 

How Close Did It Get? 

Very close. In December, Senator Klobuchar nearly attached the bill to the National Defense Authorization Act without any changes. If passed, it would have become federal law — overnight banning the sale of detached converters nationwide. 

Thanks to aggressive lobbying, that didn’t happen. The bill is being redrafted with input from recyclers, and updates include: 

  • Support for traceable, non-cash payments. 
  • Removal of some of the most damaging “detached converter” clauses. 
  • Ongoing debate about VIN marking requirements. 

 

What’s Next for the PART Act? 

The bill is expected to be reintroduced soon, backed by over 120 organizations including the National Automobile Dealers Association. While IPMI and recyclers have won key concessions, the VIN requirement and other details are still being debated. 

There’s also a larger concern: how these federal rules overlap with tariffs, critical minerals policy, and state-level legislation. If the U.S. fails to keep PGM recycling viable, materials could shift overseas — undermining domestic supply chains. 

 

Why This Matters for Recyclers 

If converters can’t legally enter the recycling stream, billions of dollars’ worth of PGMs could be lost forever. For recyclers, processors, and refiners, staying engaged with legislation is no longer optional — it’s survival. 

Julie and Becky stressed that while industry groups don’t expect to get everything they want, continued lobbying is essential to prevent unintended laws that could wipe out businesses. 

 

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