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<v Speaker 1>Right now, let's say good morning too. The senior VP

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<v Speaker 1>for Public and Government Affairs at the Specialty Equipment Marketing Association,

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<v Speaker 1>it's Karen Bailey Chapman.

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<v Speaker 2>Good morning, Karen, Good morning, and happy Monday, if you can.

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<v Speaker 1>Call it a happy Monday. I agree. Yeah, okay, So Karen,

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<v Speaker 1>before we dive in, because we're going to be talking

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<v Speaker 1>about evs and EV mandates, I really quickly just to

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<v Speaker 1>familiarize people with what your group does. What does your

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<v Speaker 1>group do?

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<v Speaker 2>So we are the Specialty Equipment Market Association, probably best

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<v Speaker 2>known for the SEMA Show, which is the largest automotive

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<v Speaker 2>gathering that takes place in Las Vegas every November. What

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<v Speaker 2>we do is we represent the manufacturers, retailers, and distributors

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<v Speaker 2>of after market specialty aftermarket automotive parts. So everything you

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<v Speaker 2>do to your vehicle after you've bought it, because you

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<v Speaker 2>want to make it faster, improve the engine performance, or

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<v Speaker 2>make it cooler looking, list it, lower it, all of

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<v Speaker 2>the fun stuff people love to do to customize their vehicle.

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<v Speaker 2>Those are the parts that we make. We represent fifty

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<v Speaker 2>two billion dollars in retail sales annually, as well as

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<v Speaker 2>employee one point three million Americans.

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<v Speaker 1>Okay, so now that helps us a lot as we

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<v Speaker 1>jump into this. So your group is for moving to

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<v Speaker 1>a cleaner car industry, but your group is not for

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<v Speaker 1>EV mandates. And which are there are several that are

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<v Speaker 1>you know they're looming and why why are you against

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<v Speaker 1>the EV mandates?

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<v Speaker 2>We believe that government should remain technology neutral when it

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<v Speaker 2>comes to our vehicles, not only because we believe that innovation,

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<v Speaker 2>as it's already been proven, can continue to improve emissions

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<v Speaker 2>out of our vehicles just based on the technology and

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<v Speaker 2>innovation that we have, but also to protect consumers so

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<v Speaker 2>that they have the ability to purchase and have available

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<v Speaker 2>to purchase the vehicles that best suit their needs, whether

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<v Speaker 2>you live in the rural community or you live in

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<v Speaker 2>an urban or suburban areas. So all consumers have different needs,

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<v Speaker 2>and we have the ability to do things with our

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<v Speaker 2>vehicles and innovate to cleaner emissions, but government, we believe,

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<v Speaker 2>should stay stay out of telling us what to do

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<v Speaker 2>and allow the marketplace and the innovators to accomplish accomplish

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<v Speaker 2>the goals.

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<v Speaker 1>Okay, so you're basically saying that the private sector is

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<v Speaker 1>going to get there, but you've got to give You've

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<v Speaker 1>got to let them do it on their own timetable

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<v Speaker 1>and not force it by saying you must do like

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<v Speaker 1>California has done saying new cars have to be electric

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<v Speaker 1>or hybrid by twenty thirty five exactly.

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<v Speaker 2>I think we've as an automotive industry, have proven that

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<v Speaker 2>we've been able to do more with less over the

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<v Speaker 2>over one hundred years that the internal combustion engine has

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<v Speaker 2>been around and in the marketplace. So I think we

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<v Speaker 2>have a track record to prove that we're able to

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<v Speaker 2>do that. So let us keep doing that. We believe

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<v Speaker 2>that evs are part of our future, but they're not

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<v Speaker 2>the only future.

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<v Speaker 1>Okay, And Karen, you say that small businesses might not

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<v Speaker 1>be able to shift to the EV industry fast enough.

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<v Speaker 1>Which small businesses are you talking about the ones who

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<v Speaker 1>trick out the cars?

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<v Speaker 2>Well, that's actually our industry. Ninety five percent of our

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<v Speaker 2>membership is small businesses. And so when you think about

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<v Speaker 2>small business that makes parts for engines, that modifies engines,

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<v Speaker 2>or any part of that powertrain, it's not simply just

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<v Speaker 2>shifting over. If so many people like to say that, oh,

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<v Speaker 2>you should just transition, Well, if you make mufflers, or

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<v Speaker 2>you make intakes or you make pistons, or you make

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<v Speaker 2>anything that's in that powertrain. Those don't exist on an

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<v Speaker 2>eav and so you know, you're looking at entire swaths

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<v Speaker 2>of the of the US economy, and especially the automotive

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<v Speaker 2>sector simply just going away.

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<v Speaker 1>Right, because we're talking about I can't remember what was it,

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<v Speaker 1>Hurts or something got a huge fleet of electric vehicles

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<v Speaker 1>and they said because they don't have any maintenance.

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<v Speaker 2>Right, But then that's same. I don't know if it

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<v Speaker 2>was Hurts or one of the other car agencies have

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<v Speaker 2>also now been divesting of the vehicles as well for

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<v Speaker 2>a couple of different reasons. But yeah, they've also been

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<v Speaker 2>divesting of that fleet, and I.

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<v Speaker 1>Think part of that was because if there was damage,

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<v Speaker 1>you have to basically replace the car. You can't fix

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<v Speaker 1>the car like a mechanic can fix the car. That's

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<v Speaker 1>not really an option.

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<v Speaker 2>Yeah, exactly, Okay, exactly. And even look at what just

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<v Speaker 2>happened in the wildfires in the LA area. How many

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<v Speaker 2>people that were in those impacted areas saw evs that

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<v Speaker 2>were burned up on the side of the road that

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<v Speaker 2>law enforcement and emergency services couldn't just simply tow it away.

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<v Speaker 2>They had to have special handling in order to remove

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<v Speaker 2>them from the affected areas. So I think that right

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<v Speaker 2>there is a proofing point in the LA area.

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<v Speaker 1>Okay, so you're lobbying Congress to just like say, hey,

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<v Speaker 1>you guys, hands off, just let us get there on

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<v Speaker 1>our own. Don't slap these mandates on exactly.

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<v Speaker 2>So you've got California that pasted a rule that is

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<v Speaker 2>putting this in place, the twenty thirty five ban on

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<v Speaker 2>the gas and diesel vehicles. But the thing is, but

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<v Speaker 2>under federal law, they have to get approval by the EPA.

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<v Speaker 2>So in the days before the Biden administration left, their

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<v Speaker 2>EPA went and signed off on this waiver. The issue

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<v Speaker 2>that we really have with California's rule is the fact

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<v Speaker 2>that eleven other states have signed on to follow it.

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<v Speaker 2>And that's about forty percent of the American marketplace that

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<v Speaker 2>are going to be under California's rule. California's exemption that

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<v Speaker 2>was given to them in the Federal Claim Air Act

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<v Speaker 2>was supposed to be for California only, not California plus

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<v Speaker 2>forty percent.

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<v Speaker 1>Okay, So well, California always says it sort of leads

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<v Speaker 1>the nation. So are you going to Congress then to

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<v Speaker 1>basically try to get something passed so that they can't

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<v Speaker 1>do these mandates.

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<v Speaker 2>Yeah. So one of the things there's always obviously in Washington,

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<v Speaker 2>there's always a million different proceide rule ways to do things.

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<v Speaker 2>And so one of the things that we're pushing for

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<v Speaker 2>right now is with called the Congressional Review Act and

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<v Speaker 2>what it does that allows Congress to issue an approval

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<v Speaker 2>or disapproval of a federal agency's rule. So in the

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<v Speaker 2>case of the EPA approving the California ban, it has

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<v Speaker 2>been transmitted by the current EPA to Congress, which starts

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<v Speaker 2>a sixty day window for Congress to issue a disapproval.

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<v Speaker 2>That's what we're asking them to do, is to issue

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<v Speaker 2>a disapproval of this rule that California has put in place.

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<v Speaker 2>Not only will it stop this internal combustion engine ban

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<v Speaker 2>that California has put forward for forty percent of the country,

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<v Speaker 2>but also it's going to be one of the first

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<v Speaker 2>times in a very very very long time that Congress

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<v Speaker 2>is going to be able to really kind of tell

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<v Speaker 2>California what is not allowed under federal law.

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<v Speaker 1>Okay, Karen Bailey Chapman with SEMA, I would love to

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<v Speaker 1>check in with you as we get closer and to

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<v Speaker 1>hearing a decision on this, because I mean, it affects

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<v Speaker 1>so many of us, you know.

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<v Speaker 2>So hopefully absolutely would love to all Right, well.

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<v Speaker 1>We'll plan on talking to you again, and we'll be

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<v Speaker 1>watching what happens. SIMA, Senior Vice President Republican Government Affairs,

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<v Speaker 1>Karen Billy Chapman.

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<v Speaker 2>Thank you, thank you,