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The Street
The Street
James Ochoa

Gavin Newsom's 'EV mandate' is under U.S. Supreme Court threat

In September 2020, California Gov. Gavin Newsom announced a sweeping measure that divided politicians, car enthusiasts, and everyday motorists. 

The executive order enacted by the Democrat will require all new cars and passenger trucks sold in the state to be zero-emission vehicles by 2035, enabling the California Air Resources Board to develop regulations mandating this change. 

Related: Trump and Musk's union-busting joke wasn't funny to the UAW

These regulations, called Advanced Clean Cars II, have been adopted by 12 U.S. states, including New York, New Jersey, and Washington, D.C.

In essence, the state whose gearheads and car enthusiasts pioneered automotive cultural phenomenons like hot rods and lowriders is writing stricter rules than those proposed by Federal agencies. However, one organization is taking action and taking its case to the highest court in the land.

Attendees gather at the NASCAR booth during a panel discussion with NASCAR Technical Institute graduates during the Specialty Equipment Market Association (SEMA) trade show at the Las Vegas Convention Center

David Becker/Getty Images

SEMA fights back

On August 7, the Specialty Equipment Market Association & Performance Racing, Inc. (better known as SEMA) filed an amicus brief with the U.S. Supreme Court.

The brief was filed in connection to the case of Diamond Alternative Energy, LLC v. Environmental Protection Agency (EPA), which seeks to look into the lawfulness of the EPA's decision to allow the state of California "to limit the sale of internal combustion engine (ICE) vehicles."

The association, which represents more than 7,000 members in the "specialty equipment" aftermarket automotive parts industry, wants the court to review the case. They feel that the state's "non-technology-neutral" decision to limit the sales of gas-powered vehicles will have negative effects on an industry that is heavily reliant on such vehicles.

More Automotive:

SEMA says that California's mandate will " kill, rather than foster, an innovation that can help produce cleaner, safer automobiles." Additionally, they note that the mandate will have a ripple effect in industries that center around the aftermarket auto parts industry, including motorsports and classic car restoration, which SEMA claims "make immeasurable contributions to the nation from an innovation and cultural standpoint." 

“California has already declared the winner of the race, and by extension, begins to foreclose on the innovations and unique contributions to cleaner vehicles and parts that the aftermarket for years has been providing,” SEMA argues. 

“The question presented is important not just to the specialty equipment aftermarket, but to consumers and the public at large who seek out these inventive products, and, as a result, the Court should grant the petition to address it.” 

SEMA's political moves

SEMA's Supreme Court filing is only the tip of the iceberg when it comes to its political dealings. 

The association that represents the aftermarket automotive parts industry has been hard at work spending its dollars in the political sphere to drive home the narrative of the impacts of the Biden-Harris Administration's so-called "EV mandate" on not just their industry, but on everyday gearheads and car enthusiasts "right" to enjoy the cars they like.

SEMA is behind a recently established organization called Driving Force Action; a tax-exempt Super PAC that seeks to bulldoze anti-ICE legislation disguised as a "grassroots organization" that is "fighting to defend our freedom to ride by educating voters across the country about what President Biden’s gas car ban will mean for consumers."

According to data from OpenSecrets, a website that tracks political spending, SEMA has contributed $148,333 to DFA in the current election cycle and is the sole donor behind the PAC. So far, they have spent $44,000 towards ads critical of the current administration. 

The PAC is noticeably very active on social media channels like Instagram and TikTok, where they produce digestible short videos and memes about a so-called “gas car ban,” which, in reality, is a tightening of emissions restrictions.

View the original article to see embedded media.

"[The Biden-Harris Administration is] not calling for an outright ban, of course, but they're requiring such strict emissions, that the end result is still the same," Automotive creator Jordan Taylor, a.k.a. Shipbox Garage, said in a video co-produced by Driving Force Action.

Related: Outspoken Republican governor sets the political tone on EVs

Nonetheless, the special interest group has already declared a victory.

In June 2024, Gov. Glenn Youngkin said that Virginia will be backing away from the emissions standards set by the California Air Resources Board (CARB), insisting that the choice was a matter of freedom for his residents, declaring "independence" for the commonwealth from pesky emissions officials outside Virginian borders.

Previously, the commonwealth adopted the Californian standards under the leadership of Democrat Ralph Northam after its House of Delegates and state senate approved the measure in 2021.

“The idea that government should tell people what kind of car they can or can’t purchase is fundamentally wrong," Youngkin said. 

"Virginians deserve the freedom to choose which vehicles best fit the needs of their families and businesses. The law is clear, and I am proud to announce Virginians will no longer be forced to live under this out-of-touch policy."

Related: Veteran fund manager sees world of pain coming for stocks

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