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.
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.
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!
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.
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.
PowerPoint on EPA’s Multipollutant Proposed Rule
SEMA is committed to ensuring that specialty automotive aftermarket businesses are taking the proper steps to be emissions compliant with state and federal regulations. SEMA works with its member companies to understand their obligations under the Clean Air Act (CAA) and comply with all law requirements in the most cost effective and efficient manner. SEMA's suite of emissions resources and tools are always available to SEMA members.
SEMA has invested over $25 million in the past ten years to help the aftermarket industry with emissions compliance. During this time, SEMA has opened its two SEMA Garage locations, each offering a suite of aftermarket product testing optimized with state-of-the-art testing equipment. SEMA has made it its mission to hire experienced professional emissions staff to educate the industry and its members on emissions issues and the need for compliance.
Emissions Compliance Resources
Federal Regulation of Aftermarket Parts Guide
Emissions Compliance One-Pager
SEMA is the hub of automotive innovation, with multiple member companies that operate in the aftermarket space through innovative carbon neutral technology. Our membership runs the gamut—from companies producing technology that allows internal combustion engines to be fueled by zero-emissions hydrogen while still having the rumble and performance of a traditional engine to electric vehicle conversion products that turn classic internal combustion engine cars into modern electronic vehicles. Every year since 2019, this cutting-edge work is more and more prominently featured at the SEMA Show.
SEMA supports legislation that helps to build up and cultivate this ecosystem of innovation. For example, SEMA is sponsoring a California bill that provides a rebate of up to $4,000 for those who convert an existing internal-combustion car or truck to an EV. This type of rebate would both foster new technology and help the state meet its lofty environmental goals.
For decades, aftermarket innovations have bred safety advancements and created agility and efficiency in how vehicles are powered. With industry and legislative support, the technology that SEMA's member companies are engineering will eventually be part of the vehicles consumers buy from their dealerships.
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Formula 1's 'Sustainable Fuel' Aims to Save Internal Combustion
Porsche begins production of 'e-fuel' that could provide gas alternative amid EV push
Germany will block Europe's gas and diesel ban unless synthetic fuel is allowed
California bill proposes $4,000 for converting gas vehicles to EVs
Podcast on emerging technology with CEO Mike Spagnola
SEMA Webinar: Swapping Electric Drivetrains into Classic Vehicles
SEMA Webinar: Future-Proofing Classic and Collector Cars
SEMA Webinar: Hydrogen-fueled ICE for Performance Application
For California residents, click here to send a letter to your local lawmaker to let them know you support the $4,000 rebate for those who convert an existing internal-combustion car or truck to an EV.
For years, automakers and dealerships have threatened to deny warranties to consumers who have modified their vehicles with aftermarket parts. However, the Magnuson-Moss Warranty Act makes it illegal for car manufacturers to void consumer warranties or deny coverage because an individual installed an aftermarket product versus an original equipment part or service.
There is a push from original equipment manufacturers (OEMs) and dealers to deem that the installation of certain aftermarket products makes them non-compliant and not ineligible under Magnuson-Moss. This ambiguity also allows dealers to deny warranties without written explanation.
Ensuring this law is upheld and protecting against unjust warranty denial is a top priority of SEMA. Congress should direct the FTC to update its regulations and require dealers and automakers to provide customers with a written explanation when they deny warranties and allow consumers to question the finding.
SEMA Action Network Warranty Issues Resource
SEMA works closely with the California Air Resources Board in an ongoing effort to ensure emissions related aftermarket parts meet applicable clean-air standards after parts have been installed in a vehicle.
Specifically, SEMA works with CARB to issue Executive Orders (EO), written documentations certifying aftermarket parts are emission compliant with CARB regulations. EOs effectively allow the legal sale and use of the product in all 50 states. Located in Diamond Bar, California, the SEMA Garage's Emissions Compliance Center is recognized by CARB as a Certification Ready Automotive Emissions Testing Laboratory. Integral to SEMA's work with CARB, it is a complete product development resource for manufacturers, providing SEMA members with assistance in all aspects of securing CARB and EPA emissions compliance to demonstrate that vehicles are emissions-compliant after a product is installed. SEMA opened a second garage in Detroit, Michigan in 2022 to support emissions compliance and product development.
Over the last five years, SEMA has assisted with approximately 50% of all aftermarket EOs issued by CARB, and its compliance team has completed over 600 CARB EO applications for members. SEMA has invested over $25 million to help member companies and other aftermarket businesses to test and sell emissions compliant products.
SEMA has worked with the California State Legislature to secure additional funding for CARB to hire the staff necessary to expedite the processing of EOs, allowing emissions compliant products to be brought to market faster.
Emissions Compliance Resources
Emissions Compliance One-Pager