SEMA SPONSORS CALIFORNIA BILL TO REFORM CARB

SEMA SPONSORS CALIFORNIA BILL TO REFORM CARB

-- Legislation would streamline pathway for the cleanest aftermarket products to reach market --

DIAMOND BAR, Calif. (Feb. 17, 2026) - The Specialty Equipment Market Association (SEMA) is sponsoring legislation to provide more certainty in the process by which the California Air Resources Board (CARB) approves aftermarket emissions products seeking clearance to be sold in the state. Senate Bill 1069, authored by Sen. Tim Grayson, D-Concord, would provide specific timelines to which CARB must adhere when manufacturers navigate the board's Executive Order (EO) process. EOs for aftermarket parts ensure companies are in compliance with CARB emissions standards and serve to greenlight the manufacturing, sale, or installation of an aftermarket product in California. Under the bill, companies would be refunded a portion of the application costs incurred if the time it takes to receive an EO becomes unreasonable.

• The application to receive a CARB EO was once free, with fees later added to help speed the process and enable the hiring of staff who could facilitate the review of these applications. But despite this administrative support provided via the monetary investment of applicants, the process continues to lag and deprive well-meaning companies of their opportunity to reach the California market with their innovative, emissions-compliant products.

According to SEMA data, it currently can take CARB 12-18 months to approve EOs, and sometimes up to two years. Businesses cannot afford to wait that long to bring products to market.

"This is a necessary bill for lawmakers to prove to their constituents that they're serious about clean air in California and providing small businesses with a pathway to thrive. SEMA has invested heavily to support aftermarket businesses that seek to serve the California marketplace with innovative products that adhere to state and federal emissions laws. We have known for a long time that the CARB EO process is in sore need of reform; it is slow, costly, and wrought with administrative delays that are a disservice to companies and consumers. We thank Senator Grayson for authoring this bill, which encourages companies to continue their good-faith efforts to adhere to California laws, while improving compliance and ensuring that California consumers have access to the cleanest aftermarket products available," said SEMA CEO Mike Spagnola.

"California's automotive enthusiasts deserve the opportunity to buy these products for their cars and trucks, and the path must be cleared for businesses that have committed to work to meet our state's standards," said Sen. Grayson. "When I attend the SEMA Show, I always marvel at the innovation brought forth by the automotive aftermarket, highlighted by advanced, clean-emissions products for consumers' vehicles. Supporting car culture is not a zero-sum game with environmental stewardship and this bill reflects that - a tangible path toward cleaner air, business success, and consumer satisfaction."

ABOUT THE BILL

The legislation will provide the following reforms:

• After companies submit their applications for an EO, CARB would have 30 days to state whether the application is in order, and then 60 more days to approve or deny the application.
• If an application is denied, CARB is to provide the applicant a list of reasons for the denial; applicants will then have a 30-day "cure" period to keep an application on track.
• If CARB fails to adhere to this reasonable timeline, applicants are entitled to a 50% refund of their fees.

Fees for CARB EOs can reach the thousands of dollars. Currently, those fees are:

• $500 for companies with fewer than 100 employees, and
• $1,000 for companies with 100 or more employees.

Analysis conducted for 2025 by the SEMA Garage shows that aftermarket companies pay $1,600-$3,200 per product for which they seek an EO, based on an average of 3.2 application breakouts, which result in three distinct charges for the same product.

• In some examples, there are enough breakouts to cost companies well beyond $20,000 for a single product. Such cases force companies to make difficult decisions over whether to even apply for coverage on all their products.

BACKGROUND
SEMA has invested over $30 million in the past ten years to help the aftermarket industry with emissions compliance. SEMA has two emissions compliance centers - Diamond Bar, Calif., and Plymouth, Mich. - with 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.

In California, SEMA works with CARB to issue EOs.

• SEMA's Diamond Bar, Calif., Emissions Compliance Center, part of the SEMA Garage, is recognized by CARB as a Certification Ready Automotive Emissions Testing Laboratory. This facility is integral to SEMA's work with CARB, offering SEMA members a complete product development resource, geared toward manufacturers and providing assistance in all aspects of securing CARB EOs and EPA emissions compliance to demonstrate that vehicles are emissions-compliant after a product is installed.

Over the last 10 years, SEMA has assisted with approximately 50% of all aftermarket EOs issued by CARB, and its compliance team has completed over 800 CARB EO applications for members. The SEMA Garage helps member companies and other aftermarket businesses to test and sell emissions-compliant products.

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 nearly $53 billion in parts sales annually. For more information, visit https://www.sema.org.

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