Policy Position
It is crucial for government policy to remain technology-neutral in pursuit of decarbonizing motor vehicles. There are many options on the road to zero emissions. American-grown biofuels, synthetic fuels, hydrogen, carbon capture, and innovations in engine systems and fuels are all aimed at this shared goal.
Historically, SEMA and the specialty automotive aftermarket industry have led the way on alternative innovations, from replacing older engine technologies with newer, cleaner versions to converting older internal combustion engine (ICE) vehicles to new electric, hydrogen, and other alternative fuel-powered vehicles.
SEMA is committed to playing a central role in the evolution of automotive technology, including the parts and products that power our vehicles. However, SEMA strongly opposes government mandates that prohibit or limit the sale of ICE vehicles and select electrification as the technology of choice to the detriment of many of our members and their innovations.
California Advanced Clean Cars II (ACC II) Regulation
SEMA opposes the California Air Resources Board's (CARB) "Advanced Clean Cars II" (ACCII) regulations that would ban the sale of new ICE vehicles by 2035. ACC II requires that 35% of new cars, SUVs, and small trucks sold in California must be zero-emissions vehicles (ZEV) starting in 2026. The regulation increases ZEV sales requirements by 6% to 8% annually through 2035, when 100% of new vehicles sold in California must be ZEV – eliminating the sale of any new vehicles that are gas-powered.
Seventeen states representing 40% of the U.S. population have adopted California's standards. However, before ACC II can be implemented, CARB must receive a waiver from the U.S. EPA for the regulations to take effect.
Take Action
Over a dozen states have recently introduced or passed legislation or resolutions affirming support for internal combustion engine-powered vehicles and for government to remain technology-neutral in the debate to reduce automotive emissions. Support your region's efforts by signing the letter to elected officials using the custom links included below!
SEMA's Advocacy in Opposition to ACC II:
- Specialty aftermarket businesses and industry supporters sent over 5,000 letters to the EPA expressing opposition to the agency providing California a Clean Air Act waiver. Click here to read SEMA's official comment to the EPA which requests that the agency not grant a waiver for the ACC II regulations to take effect.
- SEMA President & CEO Mike Spagnola and four SEMA members testified before the EPA in opposition to the regulation on January 10.
- SEMA is advocating for Congress to pass the "Preserving Choice in Vehicle Purchases Act" (H.R. 1435/S. 2090), a bill to prohibit the EPA from issuing a waiver to California for ACC II and any other regulations that would ban the sale of new ICE vehicles.
- In July 2022, SEMA submitted comments opposing the ACC II proposal to CARB.
Implementing ICE vehicle bans will put too many Americans out of work. Manufacturing electric vehicles requires approximately 40% less labor than manufacturing equipped with internal combustion engines. The specialty automotive aftermarket contributes $337 billion to the U.S. economy annually and employs over 1.3 million Americans. Consumer spending on products that modify ICE vehicles makes up 33% of industry sales which means that ACC II's will hurt the industry, destroy jobs, and reduce federal and state revenues.
The EPA's proposed multipollutant standards and California's ACC II regulation fly in the face of consumers having the freedom to purchase the vehicles that best suit their personal needs and the needs of their families. The Pew Research Center found that 6 out of 10 Americans (59%) oppose phasing out the production of new gas-powered vehicles by 2035. A survey from J.D. Power found the top three consumer concerns related to EVs not suiting their personal needs are lack of charging station availability, purchase price, and limited driving range.
The average cost of an EV is $52,345, which is more than two-thirds of the median U.S. household income of $74,580. Beyond the higher cost of purchasing an EV, an estimated 28 million American homeowners will need to install chargers at their homes at an average cost of $1,300 to make BEV convenient more convenient. While it's clear that ACC II's mandates will increase the cost of vehicle ownership for millions of Americans, the regulation's impact will hit low-income families the hardest. Those living in multi-family housing, including many lower income Americans in urban areas, will not have access to personal or convenient charging options, impacting people who park their vehicle(s) on the street. Even with federal tax incentives to subsidize the purchase of EVs, only 16% of model year 2024 EVs qualify for federal tax rebates. In addition to the higher costs of vehicles, battery electric vehicles (BEV), Plug-in Hybrid (PHEV), and Fuel Cell Electric (FCEV) only accounted for 9% of new light-duty vehicles sold in the first three quarters of 2023. Consumers deserve the right to choose what vehicle works best for their family.
The government should not choose winners and losers in the automotive market industry; instead, people should be free to decide what vehicles are best for them and their families.
EPA Proposed Multi-Pollutant Standards
In a historic step, the U.S. Environmental Protection Agency (EPA) proposed new federal emissions standards for motor vehicles model-years '27 to '32, which are intended to increase sales of electric vehicles (EVs) dramatically. Under the EPA’s April 2023 proposed rulemaking, which is still being considered by the agency, the agency anticipates that 67% of new passenger vehicles sold in the United States would be EVs by 2032 .
SEMA opposes the EPA’s proposed multipollutant standards, which aggressively seek to lower carbon emissions under timelines that effectively make EVs the de facto choice for automakers to meet the requirements. However, these far too-fast mandates do not account for the time it would take small businesses to adapt and build their capacity. The EPA’s proposed rule will hurt small businesses, stifle automotive innovation, and increase consumer costs. Click here for SEMA’s talking points on the EPA’s proposed multipollutant standards.
SEMA has rallied opposition to EPA's Multipollutant Standards:
- Click here to read SEMA'scomment in opposition to the rulemaking.
- SEMA members, along with SEMA President and CEO Mike Spagnola, testified before the EPA in opposition to the agency's recently proposed new federal emissions standards. You can watch and listen to their testimony here.
- SEMA isadvocating for Congress to pass the "Preserving Choice in VehiclePurchases Act" (H.R. 1435 & S.2090), a bill that prohibits the EPA from issuing a waiver to CARB forregulations that would ban the sale of new ICE vehicles in the state by 2035.
- The U.S. House of Representatives passed H.R. 1435 with bipartisan support (222 to 190) in September. The bills now await action in the Senate Environment and Public Works Committee.
- Click here to send your U.S. Senators a letter asking them to support the Preserving Choice in Vehicle Purchases Act by co-sponsoring S. 2090.
EV Mandates Hurt Small Businesses
- 95% percent of SEMA's business members are small businesses.
- The specialty automotive aftermarket contributes $337 billion annually to the U.S. economy and supports over 1.3 million American jobs.
- 25% of the manufacturer brands in SEMA Data make ICE-related components, consisting of parts for air & fuel, ignition, emission control, and engine and exhaust.
- 33% of consumer spending on performance and accessory products goes toward upgrading ICE engines and drivetrains. ACC II, if implemented, would adversely impact a segment of the industry that contributes $112 billion annually to the U.S. economy.
- CARB's and EPA's proposed mandates will create a seismic shift in the automotive industry that will hurt small businesses that can't make the shift this quickly.
- Small businesses will be most vulnerable to the disruptions caused by a seismic shift to battery-electric vehicles. They employ American workers with technical skills and create the often politically celebrated blue-collar jobs.
- The specialty automotive aftermarket has led technology innovation, making vehicles more fuel efficient, safer, and more appealing to consumers.
- Large automakers are losing billions a year in their electric-vehicle programs despite the massive financial infusion of taxpayer dollars they receive from the government and subsidies to purchase EVs.
- If the large manufacturers are struggling, how are small businesses expected to survive?
Learn More
PowerPoint on EPA’s Multipollutant Proposed Rule