SEMA and PRI’s efforts to overturn EV mandates enacted by California are at a significant moment, in which federal lawmakers will use the Congressional Review Act to determine the legitimacy of Clean Air Act waivers for California’s Advanced Clean Cars II policy. SEMA and PRI oppose these waivers, and support their immediate repeal by Congress.
We’re going to be hitting Capitol Hill hard to make sure our friends on both sides of the aisle know what’s at stake here. We want a technology-neutral landscape so that the automotive aftermarket industry can attack the carbon emissions challenge using innovation, not mandates
What’s the Congressional Review Act?
The Congressional Review Act, or CRA, is a law in which Congress has a period of time to weigh in on recent rules “of general applicability” finalized by federal agencies – meaning policies passed within the last 60 days are fair game for review. If the rule doesn’t meet Congress’ standards, lawmakers have, within 60 days of its issuance, the right to introduce a resolution of disapproval.
Why use the CRA?
It’s hard to roll back a final policy and it takes a long time. Legislation can be drafted to overturn a rule, but that would require lawmakers to clear a massive, filibuster-proof 60 vote threshold. With tight margins in the Senate, that’s highly unlikely. But a resolution of disapproval, on the other hand, only requires a simple majority in the House and Senate – both of which are under the control of Trump’s Republicans. Fifty-one votes are all that’s needed to pass the resolution. President Trump would then sign the resolution and bye-bye regulation and waivers.
EV Mandates Hurt Small Businesses
· 95% 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.
· 33% of the automotive aftermarket industry is comprised of companies manufacturing ICE-related components, consisting of parts for air and fuel, ignition, emission control, and engine and exhaust. This segment of the industry annually contributes $112 billion 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. vIf the large manufacturers are struggling, how are small businesses expected to survive?