SB 1069 heads to Gov. Newsom as a bipartisan solution to industry and environmental needs

The California Legislature has passed a landmark, SEMA-sponsored bill that will create a new conditional sales pathway for aftermarket emissions-related products to reach the market while under consideration for the state’s full approval for sales.

SB 1069, authored by Sen. Tim Grayson (D-Concord) and now headed to Gov. Gavin Newsom for his consideration, represents a thoughtful approach that maintains California's emissions standards while creating meaningful improvements for manufacturers that invest in compliance.

SB 1069 applies to emissions-related automotive aftermarket products that require a CARB Executive Order (EO) before they can be legally sold, advertised, or installed in California. An EO confirms that a product has demonstrated compliance with the state’s applicable emissions requirements and is therefore eligible for sale in the California market.

"SB 1069 will give manufacturers that have invested in emissions testing and compliance a meaningful pathway to get qualifying products to market faster in California, and enable new products to reach consumers, provide small businesses with certainty to invest, and keep American companies competitive," said SEMA CEO Mike Spagnola. “SEMA greatly appreciates CARB's willingness to work collaboratively with us on SB 1069 to craft common-sense legislation that will bolster the automotive aftermarket industry, help California maintain its emissions standards, and support the small businesses who rely on certainty as they establish themselves in a highly competitive marketplace. We also thank Sen. Grayson for his leadership in guiding this legislation through the legislature."

ABOUT SB 1069

The bill would grant conditional approval to sell, advertise, and install qualifying products to manufacturers who submit complete EO applications to CARB, supported by required emissions testing and technical documentation. This conditional approval would remain in place while CARB completes its final review.

This new pathway would help aftermarket manufacturers bring qualifying products to market faster in California, while preserving California's emissions standards and CARB's authority to review applications and ultimately approve or deny an EO.

Specifically, SB 1069 would create a new conditional approval process for qualifying aftermarket emissions-related products:

Manufacturers would submit a complete CARB EO application supported by required emissions testing and technical documentation.
Qualifying applicants could receive conditional approval to sell, advertise, and install covered products while CARB completes its final review.
CARB would retain its authority to ultimately approve or deny the EO, and California's existing emissions standards would remain unchanged.

If signed by Gov. Newsom, SB 1069 would take effect on January 1, 2027, with the program in place by July 1, 2028.

BACKGROUND

For decades, SEMA has helped aftermarket manufacturers navigate California's emissions requirements and lawfully bring products to market.

The SEMA Garage provides manufacturers with emissions testing, engineering expertise, and compliance assistance, and over the past eight years, it has assisted with approximately 50% of all aftermarket EOs issued by CARB and completed more than 800 EO applications on behalf of member companies.

Of the 7,000 automotive aftermarket businesses nationwide that SEMA represents, more than 1,200 are California manufacturers, distributors, and retailers. California’s specialty automotive aftermarket generates $40.44 billion in economic output, supports more than 149,000 jobs, delivers $13.47 billion in wages and benefits, and pays $6.16 billion in state and local taxes.

The automotive aftermarket is predominantly comprised of small businesses that continually invest in new products, technology, engineering, and compliance. SB 1069 would help qualifying manufacturers bring compliant products to California customers sooner.

SEMA has a lengthy track record of supporting emissions compliance at the federal level and in California. This includes more than $30 million invested in emissions compliance through the SEMA Garage program, including Emissions Compliance Centers in Diamond Bar, Calif., and Plymouth, Mich.

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 www.sema.org.

Tagged: Small Businesses

California Legislature Passes SEMA-Backed Bill to Speed Aftermarket Products to Market