Tracking legal, legislative, and regulatory developments impacting the racing and performance industry.

PRI’s Washington, DC-based legal and advocacy teams work continuously to protect and support motorsports venues, sanctioning bodies, and businesses around the nation. We are tracking several initiatives this month, including a new EPA ruling regarding emission benchmarks, Californians’ strong opposition to proposed legislation mandating speed-limiting devices, and multiple states rejecting legislation to adopt California’s clean-car rules.

SEMA, PRI Continue Fight Against ICE Bans as Feds Announce New Emission Laws

The US Environmental Protection Agency (EPA) is delaying its most aggressive tailpipe emissions-reduction requirements from model-year 2027 to model-year 2030. The move comes after advocacy from small businesses across the country that represent the specialty automotive aftermarket and other key stakeholders.  
The EPA’s final rule also slightly increased the average tailpipe emissions for light-duty vehicles, increasing the standard to 85 grams/mile from 82 grams/mile for model-year 2032. The agency’s final rulemaking provides automakers with additional time to ramp up production of zero-emissions vehicles (ZEVs). Currently, only electric vehicles (EVs) and five plug-in hybrid electric vehicles (PHEV) meet the easier 85 grams/mile standard. It is estimated that 67% of new vehicles sold would have to be EVs by 2032 to meet this standard. Automakers could also comply with the final rule if EVs account for 56% of new vehicle sales and PHEVs comprise 13% of model-year 2032 sales.
While this final rulemaking establishes more incremental emissions reductions, it still requires automakers to increase ZEV sales rapidly. PRI opposes the EPA’s final standards for the model-year 2027 to 2032 light- and medium-duty vehicles, which force automakers to sell EVs and PHEVs to comply with this rulemaking and further limits internal combustion engine (ICE) technology options.
“SEMA and PRI rallied our members and car enthusiasts across the country whose advocacy played a critical role in pushing back against the EPA’s proposed tailpipe emissions standards rule,” said Eric Snyder, SEMA and PRI’s senior director of federal government affairs. “Over 7,500 of our member companies and automotive enthusiasts wrote to the EPA to oppose the agency’s efforts to mandate the sale of EVs and eliminate the sale of ICE vehicles. Their efforts made a difference in softening the EPA’s rulemaking, but it’s clear there is more work to do.”

Survey Finds California Voters Would Reject Proposed Speed-Limiting Devices Legislation

A recent SEMA-commissioned survey of likely California voters found they would overwhelmingly reject SB 961—the proposed legislation which would require new cars and trucks to be equipped with speed-limiting devices beginning in 2027.
The survey, conducted by Rodriguez Gudelunas Strategies in mid-February, found 69% of respondents in opposition, with over half (51%) of likely voters strongly opposed to the legislation, while only 12% strongly support it.
“It is clear that Californians want to control their cars, not vice versa,” said SEMA President and CEO Mike Spagnola. “That’s why we urge California legislators to listen to the voters they represent and shelve this unpopular bill.”
Additionally, the proposal fared poorly across age groups and party lines, failing to reach majority support among all significant voting blocs.

Industry Members Oppose California’s Mandate to Ban ICE Vehicle Sales

PRI- and SEMA-member companies and automotive enthusiasts have come out in strong opposition to the California Air Resources Board’s (CARB) “Advanced Clean Cars II” (ACC II) regulation that would ban the sale of new internal-combustion-engine (ICE) motor vehicles by 2035.
Specialty-equipment businesses and industry supporters sent more than 5,000 letters to the US Environmental Protection Agency (EPA) expressing opposition to the agency providing California a Clean Air Act waiver, which is required in order for ACC II to take effect. Industry members and enthusiasts alike have united in opposition to California’s Zero Emissions Vehicle (ZEV) mandate that would adversely impact automotive businesses, their employees, and millions of automotive enthusiasts.
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 gas-powered vehicles.
Before ACC II can be implemented, CARB must receive a waiver from the EPA for the regulations to take effect. If the regulation is finalized, it will effectively block out non-electric vehicle technologies and innovations already underway in the industry to help achieve lower automotive emissions goals.
“Thank you to all of the SEMA and PRI members for writing letters opposing the EPA granting a waiver to allow California to dictate the kinds of vehicles over 40% of Americans can purchase,” said Eric Snyder, SEMA and PRI’s senior director of federal government affairs. “Requiring all new vehicles sold in California and other states that follow their vehicle emissions policies to be 100% ZEV is inconsistent with marketplace realities and hurts consumers by driving up costs and reducing vehicle options. Simply put ACC II is bad for American consumers and, if implemented, would hurt thousands of small businesses that are not being propped up by government subsidies.”

Maine Rejects ICE Vehicle Ban Amid Industry Opposition

After a several-month delay, Maine’s Board of Environmental Protection (BEP) voted against adopting a PRI-opposed proposal requiring that 82% of new vehicles sold in the state be zero-emissions vehicles (ZEV) by 2032.
Drafted in response to a citizen petition from an environmental group, the rule aimed to tighten emissions standards for new passenger cars, light-duty trucks, and medium-duty vehicles sold in Maine, aligning the state with California’s latest clean-car rules, which the state has historically followed.
While the BEP debated adopting California’s clean-car rules, lawmakers concurrently held a hearing on a bill (L.D. 2261) that would reclassify the proposal as a “major” regulation, providing the legislature with final approval before it could become law.
PRI believes that Mainers, not the government, should decide what vehicles are best for them and their families. And, in the case of Maine, it rebukes the push by 150 citizens who attempted to determine policy for the rest of the state.
“SEMA and PRI applaud the Maine Board of Environmental Protection’s decision to reject this overly burdensome ZEV mandate. This proposal would have severely limited consumer choice and driven up costs for Mainers,” said Christian Robinson, SEMA and PRI’s senior director of state government affairs and grassroots. “We believe in offering a variety of vehicle options to meet the diverse needs of American consumers, and this regulation would have unfairly restricted that choice.”

Connecticut Legislature Shelves Gas-Powered Vehicle Ban

In a win for the automotive specialty-equipment industry, the Connecticut legislature has shelved plans to adopt California’s ban on the sale of new gasoline-powered vehicles by 2035. This decision comes amid concerns about the feasibility of such a drastic transition, particularly regarding the readiness of the state’s electric grid and charging infrastructure.
In late 2023, Connecticut Governor Ned Lamont withdrew a PRI-opposed regulation requiring the state to adopt California’s strict motor-vehicle emissions laws and outlaw the sale of new gas- and diesel-powered cars beginning in 2035. The move to withdraw the regulation came after bipartisan opposition from state lawmakers, with the governor acknowledging that the proposal lacked sufficient support to pass the legislature’s Regulation Review Committee.
A recent poll commissioned by SEMA revealed that 59% of registered voters in Connecticut oppose a ban on the sale of new gas-and diesel-powered vehicles. Rising living costs and the potential financial burden on low-income families were cited as major concerns. Additionally, the poll found that 67% of voters believe electric vehicles pose environmental concerns related to battery production.
“The decision by the Connecticut legislature to shelve the California-style gas vehicle ban is a victory for common sense and Connecticut consumers,” said Christian Robinson, SEMA and PRI’s senior director of state government affairs and grassroots. “This proposal raised serious concerns about affordability, grid capacity, and even the environmental impact of electric vehicles. We’re encouraged by the legislature’s recognition of these issues and their commitment to finding practical solutions that prioritize consumer choice.”
For more information, contact SAN@sema.org.