I honestly do not like how they regulate the structure of the drivetrain. If they really cared about air quality, they should only regulate what's coming out the tailpipe. Who cares how you do it provided the exhaust is clean?
For example, if you took an LS-series and made it cleaner using aftermarket parts, that would be illegal if the parts are not CARB-exempt.
I'm a big proponent of regulating what is done, and not how it's done. Regulating how you do something just stifles innovation.
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