CLASS RACER FORUM - EPA To Prohibit the Conversion of Street Cars into Race Cars

The below is primarily an expert attorney's evaluation. The actual press release was released 2 days ago on this but fundamentally spells the same thing: CLICK HERE

This has NEVER been done or passed in the USA before.... until now.

To be clear, SEMA sent out a press release on February 8, 2016 stating that the EPA has proposed a regulation to prohibit conversion of vehicles originally designed for on-road use into race cars. It stated that the regulation would impact “all vehicle types,” including the light-duty passenger cars and light-duty trucks typically modified for racing. The press release contained no citations to the actual rules that the EPA is proposing to change, but noted that Congress has never authorized nor extended the Clean Air Act to regulate competition motor vehicles.

As noted by SEMA in its official comment on the proposed rules, the Motor Vehicle Air Pollution Control Act of 1965 (the “1965 Act”) was the first federal law to regulate motor vehicle emissions. The 1965 Act first defined the term “motor vehicle” as “any self-propelled vehicle designed for transporting persons or property on a street or highway.” 50 years later, that remains the definition of “motor vehicle” contained in the United States Code.

In 1970, Congress passed the Clean Air Act Amendments (the “CAA”). The CAA did not disturb the definition of “motor vehicle” as set forth in the 1965 Act, but it did mandate new emissions standards and expanded the anti-tampering provision to require that no person render emissions controls inoperative after first sale. While on first blush that would seem to require emissions controls on all racing vehicles that are converted from their original street use, the committee notes make it clear that the intent of the legislation was never to regulate racing vehicles.

There have been numerous other amendments to the 1965 Act since it's time, but... None of these amendments sought to include racing vehicles in the definition of “motor vehicle,” which has remained the legal term for a motorized vehicle intended to carry people or objects on public roads.

Now to the really bad and the Important stuff....

On Monday, July 13, 2015, the EPA published its proposed rules entitled “Greenhouse Gas Emissions and Fuel efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles.” The stated purpose of the proposed rules is “to establish a comprehensive national program to reduce greenhouse gas emissions and fuel consumption for new on-road heavy-duty vehicles, particularly for tractor-trailers, heavy-duty pickups and vans, and vocational vehicles (such as farm tractors).” The EPA intends to publish the final rule in July 2016. The EPA recognizes that competition vehicle emissions do not fall squarely within the purview of the CAA (as amended), and seeks to eliminate that exclusion beginning in 2018. As the EPA states in the explanatory notes for “Miscellaneous EPA Amendments,” EPA is proposing in 40 CFR 1037.601(a)(3) to clarify that the Clean Air Act does not allow any person to disable, remove, or render inoperative (i.e., tamper with) emission controls on a certified motor vehicle for purposes of competition.10 An
existing provision in 40 CFR 1068.235 provides an exemption for nonroad engines converted for competition use. This provision reflects the explicit exclusion of engines used solely for competition from the CAA definition of “nonroad engine.” The proposed amendment clarifies that this part 1068 exemption does not apply for motor vehicles.

The EPA’s approach reaches its zenith in two different sections of the proposed rule. 40 CFR 86.1854-12(b)(5)14 states that:

Certified motor vehicles and motor vehicle engines and their emission control devices must remain in their certified configuration even if they are used solely for competition or if they become nonroad vehicles or engines; anyone modifying a certified motor vehicle or motor vehicle engine for any reason is subject to the tampering and defeat device prohibitions of paragraph (a)(3) of this section and 42 USC 7522(a)(3).
The proposed rule is more draconian in 40 CFR 1068.10116, “What general actions does this regulation prohibit?” The answer is “don’t modify your engine, ever.” It bans:

Knowingly removing or rendering inoperative any device or element of design
installed on or in engines/equipment in compliance with the regulations after
such sale and delivery to the ultimate purchaser. Violation of same by a
manufacturer or dealer comes with a civil penalty of $37,500 for each engine
or piece of equipment in violation; violation by anyone else may be assessed a
civil penalty of up to $3,750 per engine or piece of equipment;
Knowingly manufacturing, selling, offering to sell, or installing any
component that bypasses, impairs, defeats, or disables the control of emissions
of any regulated pollutant. Violation of same may draw a civil penalty of up to
$3,750 for each component in violation;
Certified motor vehicles and motor vehicle engines must remain in their
certified configuration even if they are used solely for competition or if they
become nonroad vehicles or engines; anyone modifying a certified motor
vehicle or motor vehicle engine for any reason is subject to the tampering and
defeat device prohibitions of 1068.101(b): a civil penalty of $37,500 may be
subjected for each engine or piece of equipment in violation by a
manufacturer or dealer; violation by anyone else may be assessed a civil
penalty of up to $3,750 per engine or piece of equipment;
Importation of uncertified engines or equipment is prohibited if it is defined to
be “new.” The definition of “new” is broad for imported engines and
equipment; uncertified equipment, including used engines and equipment, will
generally be considered to be “new;” violators are subject to the
manufacturer/dealer penalty of $37,500 for each piece of equipment in
violation

Perhaps most troubling is the provision in 40 CFR 1068.101(a) that states that it is prohibited to sell, offer for sale, import, or introduce or deliver into commerce in the US any new engine or equipment after emissions standards take effect for the engine or e equipment unless it is covered by a valid certificate of conformity for the model year and has the required label or tag. Although another note indicates that the heavy-duty truck and engine categories would not begin until 2021, this provision could be interpreted to indicate that the proposed rule be applied to any engine/equipment that was certified prior to the effective date of the rule – thus prohibiting modification to any motor vehicle engine in competition that was ever certified for use by the EPA – essentially every engine system sold in the US since the early 70’s.

What impact would this have on me and motorsports in general???

The proposed rules essentially ban the modification of any component of the engine, fuel, and emissions systems. By placing draconian fines on anyone who could be considered a manufacturer or dealer of aftermarket parts that would be used on production-based racing vehicles, these proposed rules will have an incalculably chilling effect on the aftermarket parts market. It is difficult to see how any aftermarket part manufacturer could continue to make and market performance parts without running afoul of this proposed rule unless the part was essentially identical to the factory-certified part.

The result of the die-off of aftermarket parts manufacturers will be dramatic. The proposed rules would also ban users from doing many of the things that draw participants to motorsport –
For example, weird engine swaps will be a thing of the past if motor vehicles and motor vehicle engines must remain in their certified configuration even if they are used solely for competition. Cam swaps, different exhaust headers, different intake manifolds are among the equipment which will be banned due to their impact on increased emissions. Not only will the fuel cell manufacturers essentially cease to exist (other than by making fuel cells for purpose-built race cars that are competition vehicles from the outset), it will become illegal to put a fuel cell into the former street cars that comprise the vast majority of motorsport activity in the US. In short, the impact would be devastating.