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

PRI’s Washington, D.C.-based legal and advocacy teams work continuously to protect and support motorsports venues, sanctioning bodies, and businesses around the nation. We are tracking several topics this month, including filing a federal amicus brief with the U.S. Supreme Court to stop California’s ICE vehicle ban, a new U.S. Environmental Protection Agency (EPA) proposal to partially ban a solvent chemical found in degreasers, and industry-relevant information about Vice President Kamala Harris’ new running mate.

PRI Files Federal Amicus Brief for Lawsuit to Stop California’s ICE Vehicle Ban

PRI and SEMA filed with the Supreme Court of the United States an amicus brief in the case of Diamond Alternative Energy, LLC v. Environmental Protection Agency. The brief outlines PRI’s support for a review of the lawfulness of the EPA’s decision to grant California the authority to limit the sale of internal combustion engine vehicles.
“It’s important that the Supreme Court consider the perspective of the grassroots racing community in this potentially landmark legal case,” said Karen Bailey-Chapman, SEMA and PRI’s senior vice president of public and government affairs. “By filing this ‘friend of the court’ brief, we’re able to highlight the significant potential ramifications to California’s actions, and beyond that, the excessive economic damage that would be caused to an entire industry.”
Using its EPA waiver, California—and by extension, the 16 states that opt into California’s regulations—seeks to adopt Advanced Clean Car II regulations that would limit the sales of ICE vehicles from model years 2017 through 2025, culminating with a complete ban on the sale of ICE vehicles by 2035.
In requesting the court grant review of the case, PRI argues that California’s non-technology-neutral decision to limit sales of ICE vehicles will have a devastating impact on the automotive aftermarket industry, effectively killing, rather than fostering, innovation that can help produce cleaner, safer automobiles.

EPA Proposes Regulation for Partial Ban on Chemical Found in Brake Cleaner, Degreasers

The EPA announced a proposed rule that would ban most uses of a chemical called 1-bromopropane (1-BP) under the Toxic Substances Control Act (TSCA). 1-BP is a solvent commonly used in automotive care products such as engine degreasers, brake cleaners, refrigerant flushes, and spray adhesives.
If finalized as drafted, the proposal would ban all consumer use of products that contain 1-BP except when used in building and construction insulation materials. The ban on consumer use would go into effect within six months after the final rule is published. The proposed rule would also require extensive worker protections for industrial and commercial uses of 1-BP.
“This is important information for anyone who uses these products, and we encourage those members to review the proposed rule and consider its impact to their daily operations,” said Tiffany Cipoletti, SEMA and PRI’s federal manager for governmental affairs. “PRI and SEMA will continue to explore this issue and update our members with relevant information as it emerges.”
The EPA will require any non-federal workplaces that continue using the chemical in industrial or manufacturing settings to implement a Workplace Chemical Protection Program that includes exposure limit monitoring, recordkeeping, and educating workers on safety when working with or near the chemical within 12 months of the finalized rule.
The proposal would also require the use of personal protective equipment (PPE) such as respirators and chemical-resistant gloves within six months to protect workers from exposure to 1-BP. The agency acknowledges that many workplaces already have stringent safety controls to reduce exposure to 1-BP, and these safety measures may reduce exposure concentration limits proposed in the rulemaking.
The proposed risk management rule is based on the EPA’s August 2020 TSCA section 6 risk evaluation, as amended by the December 2022 final revised risk determination for 1-BP.
For more information, contact Cipoletti at tiffanyc@sema.org.

Three Things to Know About Tim Walz, Kamala Harris’ Pick for Vice President

Democratic presidential nominee Kamala Harris made her highly anticipated selection of a running mate, tapping two-term Minnesota Governor Tim Walz. Gov. Walz is a veteran and previously served six terms in the U.S. House of Representatives. Here’s what PRI members should know about the pick:
He led Minnesota in becoming a CARB state. Climate policy is a core issue for his administration. During his tenure as governor, Minnesota became a “CARB state,” a state that has adopted California’s vehicle emissions standards. This plan has been subject to litigation by the Minnesota Auto Dealers Association, which opposes Minnesota’s clean cars plan and asserts that the state is not allowed to delegate its authority to CARB regulators in California.
Walz knows cars. Walz, a former public school teacher, once delivered an impromptu lesson in auto repair while on the campaign trail, in the process going viral online for his folksy, clear explanation of the problem and fix.
Walz is a Midwesterner. Walz was born in Nebraska and entered the public eye as representative of a significantly rural congressional district in southern Minnesota. His Midwestern appeal is seen by some as a counterweight to Harris’s California roots—particularly as she attempts to win over rural and working-class voters who largely lean toward Donald Trump.

California Legislature Passes Manufacturing Equipment Sales Tax Credit Legislation, Support Still Needed

The California legislature passed PRI-supported legislation (AB 52), introduced by Assembly Member Tim Grayson (D-Concord), which would provide businesses with a state tax credit equal to what they pay in local sales tax for qualified manufacturing equipment. The bill now goes to Governor Gavin Newsom for approval or veto.
Manufacturing is a vital industry in California, accounting for more than 10% of the state’s GDP and employing nearly 8% of the state’s workforce. The automotive aftermarket alone employs nearly 150,000 people and contributes more than $40 billion to the state’s economy. Thirty-eight states already offer sales-tax exemptions on manufacturing equipment and R&D. By failing to do the same, California risks losing businesses to these states, which can provide a more attractive business environment. In addition, providing incentives for manufacturing and R&D can help the state attract new businesses and create jobs.
The bill’s progress to date shows the importance of SEMA and PRI’s champions in statehouses nationwide. Assembly Member Grayson is a SEMA State Automotive Enthusiast Leadership Caucus member and was the 2019 winner of SEMA’s Stephen B. McDonald Legislator of the Year award. In addition to being a lawmaker, Assembly Member Grayson, along with his wife Tammy, is also an enthusiast, with two classic Ford Mustangs in their collection.
For additional information, please contact Christian Robinson, PRI’s senior director for state government affairs and grassroots, at christianr@sema.org.