There's actually a really good article on painting and the laws in the June 2007 issue of Rod & Custom Magazine.
They do briefly touch on the waterbased paint by Auto Air Color and mention amongst other things that a waterborne clear is not too far away. FWIW Auto Air waterborne paint can be applied directly to BARE UNPRIMERED metal so the dangerous primers are avoided.
BTW I am not sure it is 100% the government that's solely to blame for trying to implement these laws. I suspect that autobody shops have pushed hard for equal legislation to apply to hobbyists.
