SEMA, NTEA FILE FEDERAL LAWSUIT TO STOP ADVANCED CLEAN FLEETS EV TRUCK MANDATES

SEMA, NTEA FILE FEDERAL LAWSUIT TO STOP ADVANCED CLEAN FLEETS EV TRUCK MANDATES

-- Organizations seek immediate relief against California's unlawful push to ban ICE vehicles --

DIAMOND BAR, Calif. (Oct. 8, 2024) -The Specialty Equipment Market Association (SEMA) and NTEA - The Work Truck Association today filed suitin the U.S. District Court's Eastern District of California against the California Air Resources Board (CARB), seeking immediate declaratory and injunctive relief to stop electric vehicle mandates CARB intends to implement through its Advanced Clean Fleets (ACF) regulations. The organizations contend that CARB's actions far exceed California's constitutional and state statutory authority and will have a dire effect on an industry that historically has led the way toward cleaner, safer vehicles through innovation and American ingenuity - particularly through alternative-fuel innovations, replacing older engine technologies with newer, cleaner versions, and converting older internal combustion engine (ICE) vehicles to new electric or hydrogen-powered vehicles.

CARB's ACF regulation includes requirements that only zero-emission vehicles (ZEVs) may cross within California's borders, regardless of which state the vehicle was purchased or registered. Vehicles covered by the regulation include everything from heavy-duty tractors with sleeper cabs to work trucks, pickup trucks, and light-duty package delivery vehicles. Interstate motor carriers and others who do not own CARB's vehicle of choice would be barred from operating within the nation's largest single-state economy for even a moment. This issue is currently under consideration by the U.S. Environmental Protection Agency, whose waiver is necessary for the state to proceed.

SEMA and NTEA are filing the lawsuit on behalf of their members who own and operate fleets of vehicles regulated by the ACF regulations, or manufacture, market, and sell specialty vehicles, trucks, and automotive aftermarket products that may become obsolete in California and other markets if CARB is allowed to proceed in decreeing an end to internal combustion engine vehicles.

"The overreach of California has forced the hand of the automotive industry, making this legal action necessary to protect the interests of the thousands of automotive aftermarket companies whose $337 billion annual economic impact helps drive our nation's economy," said SEMA President and CEO Mike Spagnola. "The illegal means by which California has sought to tilt the board by siding with just one technology is to the great detriment of a giant swath of the nation's small businesses and threatens a dangerous precedent upon the American people."

"Ultimately, work trucks must be available, capable, and affordable. It is important to reach this desired outcome using a sensible and cost-effective approach so our member businesses can continue to build and supply the vehicles that are essential for commerce," said NTEA President & CEO Steve Carey. "Left unchecked, the current suite of California regulations will severely curtail the ability of work truck users to obtain the vehicles they need to successfully and efficiently carry out their vital missions and support ongoing business operations."

The lawsuit highlights unprecedented necessity due to the significant overreach the ACF regulations represent, far exceeding California's constitutional and state statutory authority. The regulation furthermore will undermine, rather than foster, the innovation borne of the automotive aftermarket industry that has historically generated many groundbreaking solutions to cleaner, safer motor vehicles.

In seeking the court's relief, the organizations establish standing on the basis of:

• Ripeness, in that regulated entities (which include SEMA and NTEA members) must comply with the ACF regulations immediately, even though the EPA has not approved the state's action. California is reserving the right to enforce ACF's provisions retroactively-including by forcing fleets to remove vehicles newly added to their fleets-once the proceedings before the EPA conclude.
• Preemption, in which vehicles purchased or sold outside of California are subject to the federal Clean Air Act and Federal Aviation Administration Authorization Act, both of which preempt the ACF regulations and California's authority over interstate commerce.
• State law prohibition, in which California's own legislature more than 20 years ago prohibited CARB full-stop from setting the prohibitions contained in the ACF regulations when it declared for a similar regulation that CARB "shall not require . . . a ban on the sale of any vehicle category in the state."
• Dormant Commerce Clause and Equal Protection Clause violations, which are discriminatory in nature, because ACF regulations place burdens on federally regulated out-of-state organizations, solely because of their nationwide, non-California operations. This means that non-California organizations - even those whose operations are primarily out-of-state - face a larger compliance burden than their California-based counterparts.
• Due process (vagueness), in which multiple ACF provisions render even the most fundamental requirements of the regulations unconstitutionally vague.

In bringing this action, SEMA and NTEA seek a declaration and injunction, and any other appropriate relief, to redress injuries and prevent further unlawful actions by the defendants in issuing and enforcing the ACF regulations.

Neither SEMA nor NTEA are anti-EV; rather, the organizations are steadfast in their shared belief that a technology-neutral approach is the best way to achieve lower vehicle emissions. By declaring one technology as the preferred solution of government, California is kneecapping other potential solutions, regardless of their promise for delivering the results the state seeks.

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 $52.3 billion in parts sales annually. For more information, visit www.sema.org.

About NTEA

Established in 1964, NTEA - The Work Truck Association™, a 501(c)(6) organization, represents more than 2,100 companies that manufacture, distribute, install, sell and repair commercial vehicles, truck bodies, truck equipment, trailers and accessories. Buyers of work trucks and the major commercial truck chassis manufacturers also belong to NTEA. The Association provides in-depth technical information, education, and member programs and services, and produces Work Truck Week, Green Truck Summit, Commercial Vehicle Upfitting Summit and Executive Leadership Summit. The Association maintains its administrative headquarters in suburban Detroit and government relations offices in Washington, DC, and Ottawa, Ontario, Canada. Learn more at www.ntea.com.

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