GOVERNOR NEWSOM SIGNS SEMA-BACKED BILL TO SPEED AFTERMARKET PRODUCTS TO MARKET

GOVERNOR NEWSOM SIGNS SEMA-BACKED BILL TO SPEED AFTERMARKET PRODUCTS TO MARKET

-- New law creates conditional sales pathway for qualifying emissions-related aftermarket products in California --

DIAMOND BAR, Calif (Sept. 16, 2026) – California Gov. Gavin Newsom has signed SEMA-sponsored SB 1069 into law, establishing a new conditional approval pathway designed to help qualifying aftermarket emissions-related products reach the California market faster.

 

Authored by Sen. Tim Grayson (D-Concord), the new law marks the culmination of a multi-year effort by SEMA and California lawmakers to create a new pathway for manufacturers that invest in emissions testing and compliance.

• SB 1069 will allow qualifying manufacturers that submit complete CARB Executive Order applications, supported by required emissions testing and technical documentation, to receive conditional approval to sell, advertise, and install covered products while CARB completes its final review.

"SB 1069 is an important win for our industry, giving manufacturers that have invested in emissions testing and compliance a meaningful new pathway to bring qualifying products to market faster in California," said SEMA CEO Mike Spagnola. “This law will help innovative products reach consumers sooner, give small businesses greater certainty to invest and grow, and help American companies remain competitive. We thank Senator Grayson for his leadership, Governor Newsom for signing this legislation, and CARB for its willingness to work collaboratively with SEMA throughout this process.”

 

“California’s automotive aftermarket is an important part of our economy, and SB 1069 gives businesses that follow the rules and invest in compliance a clearer path forward. This law recognizes the work manufacturers put into meeting California’s emissions requirements while giving them greater certainty as they plan new products and investments,” said Sen. Grayson. “I’m proud to have authored this legislation and appreciate the work of SEMA, CARB, my colleagues in the Legislature, and Governor Newsom and his team in helping bring it across the finish line.”

 

ABOUT SB 1069
Emissions-related automotive aftermarket products generally require a CARB EO before they can be legally sold, advertised, or installed in California. Obtaining an EO requires manufacturers to invest in emissions testing, engineering, and technical documentation demonstrating that their products meet California's applicable emissions standards.

 

Under SB 1069, manufacturers that submit a complete EO application supported by the required testing and technical documentation may receive conditional approval to sell, advertise, and install qualifying products while CARB completes its final review.

 

The pathway is designed to help compliant products reach California consumers sooner without changing the emissions standards manufacturers must meet or CARB's authority to ultimately approve or deny an EO.

 

WHAT HAPPENS NEXT
SB 1069 takes effect Jan. 1, 2027. CARB will then implement the conditional approval program by July 1, 2028.

 

SEMA will continue working with CARB and the aftermarket industry as the program is developed and implemented.

 

BACKGROUND
For decades, SEMA has helped aftermarket manufacturers navigate California's emissions requirements and lawfully bring products to market.

 

The SEMA Garage provides manufacturers with emissions testing, engineering expertise, and compliance assistance, and over the past eight years, has assisted with approximately 50% of all aftermarket EOs issued by CARB and completed more than 800 EO applications on behalf of member companies.

 

Of the 7,000 automotive aftermarket businesses nationwide that SEMA represents, more than 1,200 are California manufacturers, distributors, and retailers. California’s specialty automotive aftermarket generates $40.44 billion in economic output, supports more than 149,000 jobs, delivers $13.47 billion in wages and benefits, and pays $6.16 billion in state and local taxes.

• The automotive aftermarket is predominantly comprised of small businesses that continually invest in new products, technology, engineering, and compliance. SB 1069 will help qualifying manufacturers bring compliant products to California customers sooner.

SEMA has a lengthy track record of supporting emissions compliance at the federal level and in California. This includes more than $30 million invested in emissions compliance through the SEMA Garage program, including Emissions Compliance Centers in Diamond Bar, Calif., and Plymouth, Mich.

 

ABOUT SEMA

The Specialty Equipment Market Association (SEMA) serves as a leading voice for the worldwide car culture, representing over 7,000 member companies that create, buy, sell, and use specialty-automotive parts that make vehicles more unique, attractive, convenient, safer, fun, and even like new again. Business member benefits include product development resources, market research, networking, education, legislative advocacy, and more. The Association organizes the annual SEMA Show in Las Vegas, Nev., and actively supports the career and business opportunities that the aftermarket generates. The industry contributes nearly $337 billion in economic impact to the U.S. economy, supports 1.3 million jobs nationally, and generates nearly $53 billion in parts sales annually. For more information, visit www.sema.org.

 

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