[Federal Register: October 5, 2001 (Volume 66, Number 194)] [Proposed Rules] [Page 51147-51196] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr05oc01-54] [[pp. 51147-51196]] Control of Emissions From Nonroad Large Spark Ignition Engines and Recreational Engines (Marine and Land-Based) [[Continued from page 51146]] [[Page 51147]] pose a challenge, but one that is feasible taking into consideration the availability and cost of technology, time, noise, energy, and safety. VI. Recreational Vehicles and Engines A. Overview This section applies to recreational vehicles. We are proposing to set new emission standards for snowmobiles, off-highway motorcycles, and all-terrain vehicles (ATVs). The engines used in these vehicles are a subset of nonroad SI engines.\137\ In our program to set standards for nonroad SI engines below 19 kW (Small SI), we excluded recreational vehicles because they have different design characteristics and usage patterns than certain other engines in the Small SI category. For example, engines typically found in the Small SI category are used in lawn mowers, chainsaws, trimmers, and other lawn and garden applications. These engines tend to have low power outputs and operate at constant loads and speeds, whereas recreational vehicles can have high power outputs with highly variable engine loads and speeds. This suggests that these engines should be tested differently than Small SI engines. In the same way, we are proposing to treat snowmobiles, off- highway motorcycles, and ATVs separately from our Large SI engine program, which is described in Section IV. For recreational vehicles that are not snowmobiles, off-highway motorcycles, or ATVs, we propose to apply the standards otherwise applicable to nonroad SI engines (see Section VI.B.2). --------------------------------------------------------------------------- \137\ Almost all recreational vehicles are equipped with SI engines. Any diesel engines used in these applications must meet our emission standards for nonroad diesel engines. --------------------------------------------------------------------------- We are proposing emission standards for hydrocarbons (HC), and carbon monoxide (CO) from all recreational vehicles and NOX from off-highway motorcycles and ATVs. Many of these vehicles use two- stroke engines which emit high levels of HC and CO. We believe that vehicle and engine manufacturers will be able to use technology already established for other types of engines, such as highway motorcycles, small spark-ignition engines, and marine engines, to meet these near- term standards. To encourage the introduction of low-emission technology such as catalytic control and the conversion from two-stroke to four-stroke engines, we are also proposing a Voluntary Low Emission Standards program. We also recognize that there are many small businesses that manufacture recreational vehicles; we are therefore proposing several regulatory special compliance provisions to reduce the burden of emission regulations on small businesses. 1. What Are Recreational Vehicles and Who Makes Them? We are proposing to adopt new emission standards for off-highway motorcycles, all-terrain vehicles (ATVs), and snowmobiles. Eight manufacturers dominate the sales of these recreational vehicles. Of these eight manufacturers, seven of them manufacture a combination of two or more of the three main types of recreational vehicles. For example, there are four companies that manufacture both off-highway motorcycles and ATVs. There are three companies that manufacture ATVs and snowmobiles; one company manufactures all three. These eight companies represent approximately 95 percent of all domestic sales of recreational vehicles. a. Off-highway motorcycles. Motorcycles come in a variety of configurations and styles. For the most part, however, they are two- wheeled, self-powered vehicles. Off-highway motorcycles are similar in appearance to highway motorcycles, but there are several important distinctions between the two types of machines. Off-highway motorcycles are not street-legal and are primarily operated on public and private lands over trails and open areas. Off-highway motorcycles tend to be much smaller, lighter and more maneuverable than their larger highway counterparts. They are equipped with relatively small-displacement single-cylinder two-or four-stroke engines ranging from 48 to 650 cubic centimeters (cc). The exhaust systems for off-highway motorcycles are distinctively routed high on the frame to prevent damage from brush, rocks, and water. Off-highway motorcycles are designed to be operated over varying surfaces, such as dirt, sand, or mud, and are equipped with knobby tires to give better traction in off-road conditions. Unlike highway motorcycles, off-highway motorcycles have fenders mounted far from the wheels and closer to the rider to keep dirt and mud from spraying the rider and clogging between the fender and tire. Off-highway motorcycles are also equipped with more advanced suspension systems than those for highway motorcycles. This allows the operator to ride over obstacles and make jumps safely. Five companies dominate sales of off-highway motorcycles. They are long-established, large corporations that manufacture several different products including highway and off-highway motorcycles. These five companies account for 90 to 95 percent of all domestic sales of off- highway motorcycles. There are also several relatively small companies that manufacture off-highway motorcycles, many of which specialize in racing or competition machines. b. All-terrain vehicles. ATVs have been in existence for a long time, but have become increasingly popular over the last 25 years. Some of the earliest and most popular ATVs were three-wheeled off-highway models with large balloon tires. Due to safety concerns, the three- wheeled ATVs were phased-out in the mid-1980s and replaced by the current and more popular four-wheeled vehicle known as ``quad runners'' or simply ``quads.'' Quads resemble the earlier three-wheeled ATVs except that the single front wheel was replaced with two wheels controlled by a steering system. The ATV steering system uses motorcycle handlebars, but otherwise looks and operates like an automotive design. The operator sits on and rides the quad much like a motorcycle. The engines used in quads tend to be very similar to those used in off-highway motorcycles--relatively small, single-cylinder two- or four-stroke engines. Quads are typically divided into utility and sport models. The utility quads are designed for recreational use but have the ability to perform many utility functions, such as plowing snow, tilling gardens, and mowing lawns. They are typically heavier and equipped with relatively large four-stroke engines and automatic transmissions with a reverse gear. Sport quads are smaller and designed primarily for recreational purposes. They are equipped with two-or four-stroke engines and manual transmissions. There are two other less common types of ATVs, both of which are six-wheeled models. One looks similar to a large golf cart with a bed for hauling cargo, much like a pick-up truck. These ATVs are typically manufactured by the same companies that make quad runners and use similar engines. The other can operate both in water and on land. These amphibious ATVs typically have small gasoline-powered engines similar to those found in lawn and garden tractors, rather than the motorcycle engines used in quads, though some use automotive-based Large SI engines. Of all of the types of recreational vehicles, ATVs have the largest number of major manufacturers. All but one of the companies noted above for off-highway motorcycles and snowmobiles are significant ATV producers. These seven companies represent over 95 [[Page 51148]] percent of total domestic ATV sales. The remaining 5 percent of sales come from importers, which tend to import less expensive, youth- oriented ATVs. c. Snowmobiles. Snowmobiles, also referred to as ``sleds,'' are tracked vehicles designed to operate over snow. Snowmobiles have some similarities to off-highway motorcycles and ATVs. A snowmobile rider sits on and rides a snowmobile similar to an ATV. Snowmobiles use high- powered two- and three-cylinder two-stroke engines that look similar to off-highway motorcycle engines. Rather than wheels, snowmobiles are propelled by a track system similar to what is used on a bulldozer. The snowmobile is steered by two skis at the front of the sled. Snowmobiles use handlebars similar to off-highway motorcycles and ATVs. The typical snowmobile seats two riders comfortably. Over the years, snowmobile performance has steadily increased to the point that many snowmobiles currently have engines over 100 horsepower and are capable of exceeding 100 miles per hour. The proposed definition for snowmobiles includes a limit of 1.5-meter width to differentiate conventional snowmobiles from ice-grooming machines and snow coaches, which use very different engines. We request comment on this definition and on any other approaches to differentiate these products. There are four major snowmobile manufacturers, accounting for more than 99 percent of all domestic sales. The remaining sales come from very small manufacturers who tend to specialize in expensive, high- performance designs. d. Other recreational vehicles. Currently, our Small SI nonroad engine regulations cover all recreational engines that are under 19 kW (25 hp) and have either an installed speed governor or a maximum engine speed less than 5,000 rpm. Recreational vehicles currently covered by the Small SI standards include go-carts, golf carts, and small mini- bikes. Although some off-highway motorcycles, ATVs and snowmobiles have engines with rated horsepower less than 19 kW, they all have maximum engine speeds greater than 5,000 rpm. Thus they have not been included in the Small SI regulations. The only other types of small recreational engines not covered by the Small SI rule are those engines under 19 kW that aren't governed and have maximum engine speed of at least 5,000 rpm. There are relatively few such vehicles with recreational engines not covered by the Small SI regulations. The best example of vehicles that fit in this category are scooters and skateboards that are powered by very small gasoline spark-ignition engines. The engines used on these vehicles are typically the same as those used in string trimmers or other lawn and garden equipment, which are covered under the Small SI regulations. Because these engines are generally already covered by the Small SI regulations and are the same as, or very similar to, engines as those used in lawn and garden applications, we are proposing to revise the Small SI rules to cover these engines under the Small SI regulations. To avoid any problems in transitioning to meet emission standards, we propose to apply these standards in 2006. We request comments on these issues. 2. What Is the Regulatory History for Recreational Vehicles? California ARB established standards for off-highway motorcycles and ATVs, which took effect in January 1997 (1999 for vehicles with engines of 90 cc or less). California has not adopted standards for snowmobiles. The standards, shown in Table VI.A-1, are based on the highway motorcycle chassis test procedures. Manufacturers may certify ATVs to optional standards, also shown in Table VI.A-1, which are based on the utility engine test procedure.\138\ This is the test procedure over which Small SI engines are tested. The stringency level of the standards was based on the emission performance of 4-stroke engines and advanced 2-stroke engines with a catalytic converter. California ARB anticipated that the standards would be met initially through the use of high performance 4-stroke engines. --------------------------------------------------------------------------- \138\ Notice of Off-Highway Recreational Vehicle Manufacturers and All Other Interested Parties Regarding Alternate Emission Standards for All-Terrain Vehicles, Mail Out #95-16, April 28, 1995, California ARB (Docket A-2000-01, document II-D-06). Table VI.A-1.--California Off-highway Motorcycle and ATV Standards for Model Year 1997 and later [1999 and later for engines at or below 90 cc] ------------------------------------------------------------------------ HC NOX CO PM ------------------------------------------------------------------------ Off-highway motorcycle and ATV standards (g/km)..... \a\ 1 ... 15 .. .2 ------------------------------------------------------------------------ HC + NOX CO PM ------------------------------------------------------------------------ Optional standards for ATV engines below 225 cc (g/bhp- \a\12. 300 .. hr).................................................. 0 Optional standards for ATV engines at or above 225 cc \a\10. 300 .. (g/bhp-hr)........................................... 0 ------------------------------------------------------------------------ \a\ Corporate-average standard. California revisited the program because a lack of certified product from manufacturers was reportedly creating economic hardship for dealerships. The number of certified off-highway motorcycle models was particularly inadequate.\139\ In 1998, California revised the program, allowing the use of uncertified products in off-highway vehicle recreation areas with regional/seasonal use restrictions. Currently, noncomplying vehicles may be sold in California and used in attainment areas year-round and in nonattainment areas during months when exceedances of the state ozone standard are not expected. For enforcement purposes, certified and uncertified products are identified with green and red stickers, respectively. Only about one-third of off- highway motorcycles selling in California are certified. All certified products have 4-stroke engines. --------------------------------------------------------------------------- \139\ Initial Statement of Reasons, Public Hearing to Consider Amendments to the California Regulations for New 1997 and Later Off- highway Recreational Vehicles and Engines, California ARB, October 23, 1998 (Docket A-2000-01, document II-D-08). --------------------------------------------------------------------------- B. Engines Covered by This Proposal We are proposing new emission standards for all new off-highway motorcycles, all-terrain vehicles (ATVs), and snowmobiles. We are also proposing to apply existing Small SI emission standards to other recreational vehicles, as described above. The engines used in these vehicles tend to be small, air-or liquid-cooled, reciprocating Otto- cycle engines that operate on gasoline.\140\ With the exception of what we define as ``other recreational vehicles,'' these engines are designed to be used in vehicles, where engine performance is characterized by highly transient operation, with a wide range of engine speed and load capability. Maximum engine speed is typically well above 5,000 rpm. Also, with the exception of snowmobiles, the vehicles are typically equipped with transmissions rather than torque converters to ensure performance under a variety of operating conditions.\141\ --------------------------------------------------------------------------- \140\ Otto cycle is another name for a spark-ignition engine which utilizes a piston with homogeneous external or internal air and fuel mixture formation and spark ignition. \141\ Snowmobiles use continuously variable transmissions, which tend to operate like torque converters. --------------------------------------------------------------------------- [[Page 51149]] 1. Two-Stroke vs. Four-Stroke Engines The engines used by recreational vehicles can be separated into two distinct designs: two-stroke and four-stroke. The distinction between two-stroke and four-stroke engines is important for emissions because two-stroke engines tend to emit much greater amounts of unburned hydrocarbons (HC) and particulate matter (PM) than four-stroke engines of similar size and power. Two-stroke engines also have greater fuel consumption than four-stroke engines, but they also tend to have higher power output per-unit displacement, lighter weight, and better cold- starting performance. These advantages, combined with a simple design and lower manufacturing costs, tend to make two-stroke engines popular as a power unit for recreational vehicles. With the exception of a few youth models, almost all snowmobiles use two-stroke engines. Currently, about 63 percent of all off-highway motorcycles (predominantly in high performance, youth, and entry-level bikes) and 20 percent of all ATVs sold in the United States use two-stroke engines. The basis for the differences in engine performance and exhaust emissions between two-stroke and four-stroke engines can be found in the fundamental differences in how two-stroke and four-stroke engines operate. Four-stroke operation takes place in four distinct steps: intake, compression, power, and exhaust. Each step corresponds to one up or down stroke of the piston or 180 deg. of crankshaft rotation. The first step of the cycle is for an intake valve in the combustion chamber to open during the intake stroke, allowing a mixture of air and fuel to be drawn into the cylinder while the piston moves down the cylinder. The intake valve then closes and the momentum of the crankshaft causes the piston to move back up the cylinder, compressing the air and fuel mixture. At the very end of the compression stroke, the air and fuel mixture is ignited by a spark from a spark plug and begins to burn. As the air and fuel mixture burns, increasing temperature and pressure cause the piston to move back down the cylinder. This is referred to as the ``power'' stroke. At the bottom of the power stroke, an exhaust valve opens in the combustion chamber and as the piston moves back up the cylinder, the burnt gases are pushed out through the exhaust valve to the exhaust manifold, and the cycle is complete. In a four-stroke engine, combustion and the resulting power stroke occur only once every two revolutions of the crankshaft. In a two- stroke engine, combustion occurs every revolution of the crankshaft. Two-stroke engines eliminate the intake and exhaust strokes, leaving only compression and power strokes. This is due to the fact that two- stroke engines do not use intake and exhaust valves. Instead, they have intake and exhaust ports in the sides of the cylinder walls. With a two-stroke engine, as the piston approaches the bottom of the power stroke, it uncovers exhaust ports in the wall of the cylinder. The high pressure combustion gases blow into the exhaust manifold. As the piston gets closer to the bottom of the power stroke, the intake ports are uncovered, and fresh mixture of air and fuel are forced into the cylinder while the exhaust ports are still open. Exhaust gas is ``scavenged'' or forced into the exhaust by the pressure of the incoming charge of fresh air and fuel. In the process, however, some mixing between the exhaust gas and the fresh charge of air and fuel takes place, so that some of the fresh charge is also emitted in the exhaust. Losing part of the fuel out of the exhaust during scavenging causes very high hydrocarbon emission characteristics of two-stroke engines. The other major reason for high HC emissions from two-stroke engines is their tendency to misfire under low-load conditions due to greater combustion instability. 2. Applicability of Small SI Regulations In our regulations for Small SI engines, we established criteria, such as rated engine speed at or above 5,000 rpm and the use of a speed governor, that excluded engines used in certain types of recreational vehicles (see 40 CFR Sec. 90.1(b)(5)). Engines used in some other types of recreational vehicles may be covered by the Small SI standards, depending on the characteristics of the engines. For example, lawnmower-type engines used in go carts would typically be covered by the Small SI standards because they don't operate above 5000 rpm. Similarly, engines used in golf carts are also included in the Small SI program. As discussed above, we are proposing to revise the Small SI regulations to include all recreational engines except those in off- highway motorcycles, ATVs, snowmobiles, and hobby engines. We are proposing to remove the 5,000 rpm and speed governor criteria from the applicability provisions of the Small SI regulations. There may, however, be instances where an ATV, off-road motorcycle, or snowmobile manufacturer currently uses a certified small utility engine in their vehicle, and could be required to recertify that engine to the recreational vehicle standards in the future. Relatively slow- moving amphibious ATVs would be one example where certified small utility engines may be used. We request comment on whether or not we should allow off-road motorcycles, ATVs, and snowmobiles to be certified to the Small SI standards in cases where a manufacturer has chosen to use a certified small utility engine. We also request comment on retaining the 5,000-rpm rated speed criteria for determining the applicability of the Small SI standards for snowmobiles, ATVs, and off- road motorcycles. Further, we request comment and information on any vehicles that currently have an engine certified to Small SI standards which would be required to certify to the recreational vehicle standards due to this regulatory change. 3. Hobby Engines The Small SI rule categorized SI engines used in model cars, boats, and airplanes as recreational engines and exempted them from the Small SI program.\142\ We continue to believe that it would be inappropriate to include hobby engines in the Small SI program because of significant engine design and use differences. At this time, we also believe that hobby engines are substantially different than engines used in recreational vehicles and, as discussed below, we are not proposing to include SI hobby engines in this proposal. --------------------------------------------------------------------------- \142\ 65 FR 24929, April 25, 2000. --------------------------------------------------------------------------- There are about 8,000 spark-ignition engines sold per year for use in scale-model aircraft, cars, and boats.\143\ This is a very small subsection of the overall model engine market, most of which are glow- plug engines that run on a mix of castor oil, methyl alcohol, and nitro methane.\144\ A typical SI hobby engine is approximately 25 cc with a horsepower rating of about 1-3 hp, though larger engines are available. These SI engines are specialty products sold in very low volumes, usually not more than a few hundred units per engine line annually. Many of the engines are used in model airplanes, but they are also used in other types of models such as cars and boats. These engines, especially the larger [[Page 51150]] displacement models, are frequently used in competitive events by more experienced operators. The racing engines sometimes run on methanol instead of gasoline. In addition, the engines are usually installed and adjusted by the hobbyist who selects an engine that best fits the particular model being constructed. --------------------------------------------------------------------------- \143\ Comments submitted by Hobbico on behalf of Great Plains Model Distributors and Radio Control Hobby Trade Association, February 5, 2001, Docket A-2000-01, document II-D-58. \144\ Glow plug hobby engines are considered compression ignition engines (diesel) because they lack a spark ignition system and throttle (see definition of compression ignition, 40 CFR Sec. 89.2). The nonroad diesel engine regulations (40 CFR Sec. 89.2) do not apply to hobby engines and therefore these engines are unregulated. --------------------------------------------------------------------------- The average annual hours of operation has been estimated to be about 12.2 hours per year.\145\ The usage rate is very low compared to other recreational or utility engine applications due to the nature of their use. Much of the hobby revolves around building the model and preparing the model for operation. The engine and model must be adjusted, maintained, and repaired between uses. --------------------------------------------------------------------------- \145\ Comments submitted by Hobbico on behalf of Great Plains Model Distributors and Radio Control Hobby Trade Association, February 5, 2001, Docket A-2000-01, document II-D-58. --------------------------------------------------------------------------- SI model engines are highly specialized and differ significantly in design compared to engines used in other recreational or utility engine applications. While some of the basic components such as pistons may be the similar, the materials, airflow, cooling, and fuel delivery systems are considerably different.\146\ \147\ Some SI model engines are scale replicas of multi-cylinder aircraft or automobile engines and are fundamentally different than SI engines used in other applications. Model-engine manufacturers often select lighter-weight materials and simplified designs to keep engine weight down, often at the expense of engine longevity. Hobby engines use special ignition systems designed specifically for the application to be lighter than those used in other applications. To save weight, hobby engines typically lack pull starters that are found on other engines. Hobby engines must be started by spinning the propeller. In addition, the models themselves vary significantly in their design, introducing packaging issues for engine manufacturers. --------------------------------------------------------------------------- \146\ E-mail from Carl Maroney of the Academy of Model Aeronautics to Christopher Lieske, of EPA, June 4, 2001, Docket A- 2000-01, document II-G-144. \147\ Comments submitted by Hobbico on Behalf of Great Plains Model Distributors and Radio Control Hobby Trade Association, February 5, 2001, Docket A-2000-01, document II-D-58. --------------------------------------------------------------------------- We are not proposing to include SI hobby engines in the recreational vehicles program at this time. The engines differ significantly from the recreational engines included in the proposal in their design and use, as noted above. Emission-control strategies envisioned for other recreational vehicles may not be well suited for hobby engines because of their design, weight constraints, and packaging limitations. Approaches such as using a 4-stroke engine, a catalyst, or fuel injection all would involve increases in weight, which would be particularly problematic for model airplanes. The feasibility of these approaches for these engines is questionable. Reducing emissions, even if feasible, would likely involve fundamental engine redesign and substantial R&D efforts. The costs of achieving emission reductions are likely to be much higher per engine than for other recreational applications because the R&D costs would be spread over very low sales volumes. The cost of fundamentally redesigning the engines could double the cost of some engines. By contrast, because of their very low sales volumes, annual usage rates, and relatively short engine life cycle, SI hobby engine emission contributions are extremely small compared to recreational vehicles. The emission reductions possible from regulating such engines would be minuscule (we estimate that SI hobby engines as a whole account for less than 30 tons of HC nationally per year, much less than 0.01% of Mobile Source HC emissions).\148\ Thus, the cost per ton associated with regulating such engines would be well above any regulations previously adopted under the mobile source program (we estimate potential cost per ton for HC to over $200,000 per ton compared to less than $2,500 per ton for most other mobile source programs). --------------------------------------------------------------------------- \148\ For further information on the feasibility, emission inventories, and costs, see ``Analysis of Spark Ignition Hobby Engines'', Memorandum from Chris Lieske to Docket A-2000-01, document II-G-144. --------------------------------------------------------------------------- In addition, hobby engines differ significantly in their in-use operating characteristics compared to small utility engines and other recreational vehicle engines. It is unclear if the test procedures developed and used for other types of SI engine applications would be sufficiently representative for hobby engines. We are not aware of any efforts to develop an emission test cycle or conduct any emission testing of these engines. In addition, because installing, optimizing, maintaining, and repairing the engines are as much a part of the hobby as operating the engine, emission standards could fundamentally alter the hobby itself. Engines with emission-control systems would be more complex and the operator would need to be careful not to make changes that would cause the engine to exceed emission standards. For all the above reasons, we do not have adequate information and are not able to propose emission standards and test procedures for SI hobby engines at this time. We request comment on the above points, including feasibility, cost, and benefits associated with potential control technologies for these engines. We also request comment on any other information or unique characteristics of hobby engines that should be taken into consideration. 4. Competition Off-Highway Motorcycles Currently, a large portion of off-highway motorcycles are designed as competition/racing motorcycles. These models often represent a manufacturer's high-performance offerings in the off-highway market. Most such motorcycles are of the motocross variety, although some high performance enduro models are marketed for competition use.\149\ \150\ These high-performance motorcycles are largely powered by 2-stroke engines, though some 4-stroke models have been introduced in recent years. --------------------------------------------------------------------------- \149\ A motocross bike is typically a high performance off- highway motorcycle that is designed to be operated in motocross competition. Motocross competition is defined as a circuit race around an off-highway closed-course. The course contains numerous jumps, hills, flat sections, and bermed or banked turns. The course surface usually consists of dirt, gravel, sand, and mud. Motocross bikes are designed to be very light for quick handling and easy maneuverability. They also come with large knobby tires for traction, high fenders to protect the rider from flying dirt and rocks, aggressive suspension systems that allow the bike to absorb large amounts of shock, and are powered by high performance engines. They are not equipped with lights. \150\ An enduro bike is very similar in design and appearance to a motocross bike. The primary difference is that enduros are equipped with lights and have slightly different engine performance that is more geared towards a broader variety of operation than a motocross bike. An enduro bike needs to be able to cruise at high speeds as well as operate through tight woods or deep mud. --------------------------------------------------------------------------- Competition events for motocross motorcycles mostly involve closed- course or track racing. Other types of off-highway motorcycles are usually marketed for trail or open-area use. When used for competition, these models are likely to be involved in point-to-point competition events over trails or stretches of open land. There are also specialized off-highway motorcycles that are designed for competitions such as ice racing, drag racing, and observed trials competition. A few races involve professional manufacturer-sponsored racing teams. Amateur competition events for off-highway motorcycles are also held frequently in many areas of the U.S. Clean Air Act subsections 216 (10) and (11) exclude engines and vehicles ``used solely for competition'' from nonroad engine and nonroad vehicle regulations. In our previous nonroad [[Page 51151]] engine emission-control programs, we have generally defined the term as follows: Used solely for competition means exhibiting features that are not easily removed and that would render its use other than in competition unsafe, impractical, or highly unlikely. If retained for the recreational vehicles program, the above definition may be useful for identifying certain models that are clearly used only for competition. For example, there are motorcycles identified as ``observed trials'' motorcycles which are designed without a standard seat because the rider does not sit down during competition. This feature would make recreational use unlikely:) Most motorcycles marketed for competition do not appear to have obvious physical characteristics that constrain their use to competition. Upon closer inspection, however, there are several features and characteristics for many competition motorcycles that would make recreational use unlikely. For example, motocross bikes are not equipped with lights or a spark arrester, which prohibits them from legally operating on public lands (e.g., roads, parks, state land, federal land, etc.).\151\ Vehicle performance of modern motocross bikes are so advanced (e.g., extremely high power-to-weight ratios and advanced suspension systems) that it is highly unlikely that these machines would be used for recreational purposes. In addition, motocross and other competition off-highway motorcycles typically do not come with a warranty, which would further deter the purchase and use of competition bikes for recreational operation.\152\ We believe these features should be sufficient in distinguishing competition motorcycles from recreational motorcycles. We are specifically proposing the following features as indicative of motorcycles used solely for competition: absence of a headlight or other lights; the absence of a spark arrester; suspension travel greater than 10 inches; and an engine displacement greater than 50 cc. --------------------------------------------------------------------------- \151\ A spark arrester is a device located in the end of the tailpipe that catches carbon sparks coming from the engine before they get out of the exhaust system. This is important when a bike is used off-highway, where hot carbon sparks falling in grassy or wooded areas could result in fires. \152\ Most manufacturers of motocross racing motorcycles do not offer a warranty. Some manufacturers do, however, offer very limited (1 to 3 months) warranties under special conditions. --------------------------------------------------------------------------- Vehicles not meeting the applicable criteria listed above would be excluded only in cases where the manufacturer has clear and convincing evidence that the vehicles for which the exemption is being sought will be used solely for competition. Examples of this type of evidence could be technical rationale explaining the differences between a competition and non-competition motorcycle, marketing and/or sales information indicating the intent of the motorcycle for competition purposes, or survey data from users indicating the competitive nature of the motorcycle. Although there are several features that distinguish competition motorcycles from recreational motorcycles, several parties have commented that they believe motorcycles designed for competition use may be used for recreational purposes, rather than solely for competition. This is of particular concern because competition motorcycles represent about 29 percent of total off-highway motorcycle sales or approximately 43,000 units per year. However, a study on the characterization of off-highway motorcycle usage found that there are numerous--and increasingly popular--amateur off-highway motorcycle competitions across the country, especially motocross.\153\ The estimated number of off-highway motorcycle competitors is as high as 80,000. Since it is very common for competitive riders to replace their machines every one to two years, the sale of 43,000 off-highway competition motorcycles appears to be a reasonable number, considering the number of competitive participants. We are therefore confident that, although we are proposing to exclude a high percentage of off- highway motorcycles as being competition machines, this definition is appropriate because a high percentage of these motorcycles are in fact used solely for competition. --------------------------------------------------------------------------- \153\ Characterization of Off-Road Motorcycle, ICF Consulting, September 2001, A-2000-1 document II-A-81. --------------------------------------------------------------------------- We are very interested in receiving input on the proposed competition exclusion. We request comment on ways the program can be established to exclude motorcycles used solely for competition, consistent with the Act, without excluding vehicles that are also used for other purposes. We specifically request comment on the identifying characteristics of competition vehicles in Sec. 1051.620 of the proposed regulations. Ideally, the program can be established in a way that provides reasonable certainty at certification. However, approaches could include reasonable measures at time of sale or in-use that would ensure that the competition exclusion is applied appropriately. C . Proposed Standards 1. What Are the Proposed Standards and Compliance Dates? a. Off-highway Motorcycles and ATVs. We are proposing HC plus NOX and CO standards for off-highway motorcycles and ATVs. We expect the largest benefit to come from reducing HC emissions from two-stroke engines. Two-stroke engines have very high HC emission levels. Baseline NOX levels are relatively low for engines used in these applications and therefore NOX standards serve only to cap NOX emissions for these engines. Comparable CO reductions can be expected from both 2-stroke and 4-stroke engines, as CO levels are similar for the two engine types. We are also proposing averaging, banking and trading provisions for off-highway motorcycles and ATVs, as discussed below. 2006 Standards. In the current off-highway motorcycle and ATV market, consumers can choose between two-stroke and four-stroke models in most sizes and categories. Each engine type offers unique performance characteristics. Some manufacturers specialize in two- stroke or four-stroke models, while others offer a mix of models. The HC standard is likely to be a primary determining factor for what technology manufacturers choose to employ to meet emission standards overall. HC emissions can be reduced substantially by switching from two-stroke to four-stroke engines. Four-stroke engines are very common in off-highway motorcycle and ATV applications. Eighty percent of all ATVs sold are four-stroke. In addition, approximately 55 percent of non-competition off-highway motorcycles are four-stroke. Certification results from California ARB's emission-control program for off-highway motorcycles and ATVs, combined with our own baseline emission testing, provides ample data on the emission-control capability of four-stroke engines in off-highway motorcycles and ATV applications. Off-highway motorcycles certified to California ARB standards for the 2000 model year have HC certification levels ranging from 0.4 to 1.0 g/km. These motorcycles have engines ranging in size from 48 to 650 cc; none of these use catalysts. In determining what standards to set for off-highway motorcycles and ATVs, we considered several approaches. One approach was to establish separate standards for two-stroke and four-stroke engines. This would take into [[Page 51152]] consideration the fact that it could be expensive and difficult for two-stroke engines to meet the same emission levels as four-stroke engines. The problem with this approach is that two-stroke engines emit up to 25 times more HC emissions than four-stroke engines. Four stroke engines are currently being used on most, if not all, of the different subclasses of ATVs and off-highway motorcycles that we would be regulating, and we believe they can be used on all such subclasses. We are concerned that setting lesser standards for two-stroke engines could possibly result in the increase of two-stroke engine usage at the expense of four-stroke engines, which would result in a greater level of emissions and could miss the opportunity for a more appropriate and cost-effective standard. As a result, we proposing an approach that would require a single set of off-highway motorcycle and ATV standards for all engine types, similar to California ARB. We believe that this approach is consistent with our statutory requirement to propose standards that achieve the greatest emission reduction achievable, considering cost, noise, and safety factors.We ask for comment on this proposed approach and the rationale underlying this approach. In 1994, California ARB adopted emission standards for off-highway motorcycles and ATVs. At the time, these standards were stringent enough that manufacturers were unable to provide performance-oriented off-highway motorcycles and ATVs that met the standards. As a result, ARB allowed manufacturers to sell non-compliant off-highway motorcycles and ATVs, resulting in approximately a third of the off-highway motorcycles and ATVs sold being compliant with the standards. Four- stroke engine technology has advanced considerably since the ARB regulations went into effect. Manufacturers are now capable of offering four-stroke engines that provide excellent performance. However, this performance can be achieved only as long as manufacturers are allowed to operate four-stroke engines with a slightly rich air and fuel mixture, which can result in somewhat higher HC and CO emissions. However, the HC emissions from four-stroke engines even when they operate rich are significantly lower than those from two-stroke engines. The market appears to be shifting to four-stroke technology. As discussed above in Section # B.1.4, the CAA requires us to exempt from emission standards off-highway motorcycles and ATVs used for competition. We expect several competition off-highway motorcycle models, most equipped with two-stroke engines, to continue to be available. We are concerned that setting standards as stringent as ARB's would result in a performance penalty for four-strokes which could encourage consumers who want performance-oriented off-highway motorcycles to purchase competition vehicles in lieu of purchasing compliant machines that don't provide the desired performance. That is why we are proposing emission standards that are slightly less stringent than the California ARB. We believe that our proposed emission standards would allow the continued advancement of four-stroke technology and are a good compromise between available emission-control technology, cost, and vehicle performance. We are proposing exhaust emission standards for off-highway motorcycles and ATVs to take effect in the 2006 model year. We would allow a short phase-in of 50-percent implementation in the 2006 model year with full implementation in 2007. These standards apply to testing with the highway motorcycle Federal Test Procedure (FTP) test cycle. For HC+NOX emissions, the standard is 2.0 g/km (3.2 g/mi). For CO emissions, the standard is 25.0 g/km (40.5 g/mi). These emission standards would allow us to set near-term requirements to introduce the low-emission technologies for substantial emission reductions with minimal lead time. We expect manufacturers to meet these standards using four-stroke engines with some low-level modifications to fuel- system calibrations. These systems would be similar to those used for many years in highway applications, but not necessarily with the same degree of sophistication. We considered proposing several alternative sets of standards. The first alternative considered was to set the HC+NOX standard at a level higher than 2.0 g/km, since this standard could prove to be difficult for a two-stroke engine to achieve. However, since two-stroke engines emit so much higher levels of HC than four-stroke engines, and HC emission-control technology for two-stroke engines is more expensive and complicated, we would expect that such a standard would have to be considerably higher than 2.0 g/km, perhaps in the range of 10 to12 g/ km. Even a standard this high would still likely require secondary air injection and a catalytic converter for most two-stroke engines to comply. We believe that the concerns over high catalyst temperatures and potential negative impacts on engine performance would most likely result in manufacturers choosing to convert two-stroke applications to four-stroke, especially since four-stroke engines are already so prevalent in off-highway motorcycle and ATV applications. In addition, we believe that the cost differential between air injection and a catalyst for a two-stroke engine and using a four-stroke engine would be minimal. We request comment on such a standard, and on the costs and emissions benefits associated with that approach. Commenters should include a recommendation for the level of the standard. We also considered setting the HC+NOX standard at a level lower than 2.0 g/km, since it is possible to use a catalyst on a four-stroke engine and achieve lower emission levels. We decided that for off-highway motorcycles, the technologies necessary to meet emission standards lower than our proposed level of 2.0 g/km for HC+NOX could be prohibitive due to several factors such as limited catalyst locations that are considered safe to the operator and potential negative engine performance impacts (see our discussion on proposed 2009 standards for more detail). These issues are not as important for ATVs. However, it would be difficult to implement them by the 2006 model year since 20 percent of the fleet is still two-stroke and manufacturers would need time to convert their fleet to four- stroke. Therefore, we are not proposing a HC+NOX standard lower than 2.0 g/km for off-highway motorcycles and are instead proposing a second phase of standards for ATVs in the 2009 model year. We are asking for comment on this aspect of the proposal, and on such a standard. Some youth-oriented off-highway motorcycles and ATVs with small engine displacements have engine governors limiting vehicle speeds. In the case of ATVs, the Consumer Product Safety Commission (CPSC) limit youth ATVs with engine displacements between 50 and 100 cc to a top speed of 35 mph. Similarly, ATVs with engine displacements of 50 cc and less are limited to a top speed of 15 mph. Many small off-highway motorcycles use the same governors. For vehicles with a displacement greater than 50 cc, we believe the FTP is an appropriate test cycle because of the transient capability of these vehicles. However, for the vehicles with engine displacements of 50 cc and less, the governed top speed of 15 mph restricts the operation of these vehicles to either idle or the governed wide-open throttle setting, similar to a lawn mowers. It may not make sense to require these small-displacement vehicles to be tested over [[Page 51153]] the FTP. Therefore, we propose that off-highway motorcycles and ATVs with an engine displacement of 50 cc or less have the option to certify to the proposed off-highway motorcycle and ATV standards discussed above or to meet the Phase 1 Small SI emission standards for non- handheld Class I engines. We request comment on this option. ATV manufacturers have requested that we allow them the option of certifying ATVs to the same optional exhaust emission standards as allowed by California ARB. California allows ATVs to be optionally tested using the California ARB utility engine test cycle (SAE J1088) and procedures. In California, manufacturers may use the J1088 engine test cycle to meet the California Small Off-Road Engine emission standards. Manufacturers were required to submit some emission data from the various modes of the J1088 test cycles to show that emissions from these modes were comparable to FTP emissions. California allowed this option because the goal of their program was to encourage the use of four-stroke engine technology in ATVs. The lawn and garden test cycle and standards were considered stringent enough to encourage manufacturers to switch from two-stroke engines to four-stroke engines. We continue to be concerned that the J1088 test cycle doesn't represent actual ATV operation, but for our Phase 1 standards, our goal is to encourage manufacturers to switch from two-stroke to four-stroke engine technology. Therefore, to facilitate this phase-in we are proposing here that manufacturers may optionally certify ATVs using the California utility cycle and standards as shown in Table VI.C-1 instead of the FTP standards of 2.0 g/km HC+NOX and 25 g/km CO discussed above. Table VI.C-1.--California Utility Engine Emission Standards ------------------------------------------------------------------------ Engine displacement HC+NOX CO ------------------------------------------------------------------------ Less than 225 cc............. 12.0 g/hp-hr... 300 g/hp-hr (16.1 g/kW-hr). (400 g/kW-hr) Greater than 225 cc.......... 10.0 g/hp-hr... 300 g/hp-hr (13.4 g/kW-hr). (400 g/kW-hr) ------------------------------------------------------------------------ Some manufacturers have expressed concern about the stringency of the proposed standards for some small displacement (e.g., less than 80 cc) youth off-highway motorcycles and ATVs. They have also stated that some of these small vehicles may have a difficult time operating over the FTP cycle. Therefore, we request comment on the ability of small displacement youth off-highway motorcycles and ATVs to operate over the FTP test cycle and meet our proposed emission standards. 2009 Standards. As stated above, we expect manufacturers to meet the proposed 2006 standards by using four-stroke engines with minor modifications to fuel calibrations. Several technologies are available to further reduce emissions from off-highway motorcycles and ATVs. The most likely choices would be the use of electronic fuel injection, secondary air injection into the exhaust system, and catalytic converters. Although these technologies would be capable of further emission reductions, there are potential concerns with applying each of these technologies to off-highway motorcycles. The complexity and increased cost of electronic fuel injection makes it problematic for off-highway motorcycle applications. Off-highway motorcycle manufacturers and enthusiasts have expressed concern over possible leg burns resulting from catalysts since off-highway motorcycles have exhaust systems that run higher up on the frame. They are concerned that if a rider were to fall over with the motorcycle on top of them, the hot catalyst could burn the rider. Catalysts and secondary air also have the potential to adversely affect engine performance. Since motorcycle performance is paramount for off-highway motorcycles, any technologies that could impact performance or pose a perceived safety threat could encourage consumers to purchase high-performance competition motorcycles rather than recreational motorcycles. For ATVs, however, the design of the vehicle is more receptive to placing a catalyst on the exhaust. Since the engine is further inside the vehicle with numerous plastic fairings around the engine, the operator's legs are far away and shielded from the exhaust pipe. ATV engines also tend to have lower power output than off-highway motorcycle engines, making the use of secondary air or catalysts more tolerable. Since ATV design and use are more conducive to these more advanced emission-control technologies than off-highway motorcycles, we believe it is appropriate to pursue more advanced emission-control technologies for ATVs. We also note that the usage rate and population of ATVs is growing substantially compared to off-highway motorcycles. We expect that, with additional time to optimize designs to better control emissions, manufacturers of ATVs should be able to meet more stringent emission standards. Starting with the 2009 model year for ATVs only, we propose to apply emission standards of 1.0 g/km (1.6 g/mi) for HC+NOX emissions and 25 g/km (40.5 g/mi) for CO emissions. As with the Phase 1 standards, we are proposing a two-year phase-in, with 50 percent of models complying in 2009 and all models complying in 2010. We are proposing that ATVs would be required to meet a 1.0 g/km HC+NOX standard because we believe it can be met by using four-stroke engines with secondary air injection. Secondary air injection is a common HC emission-control technology used on highway motorcycles. It's use is more transparent to the ATV operator than a catalyst and is a relatively inexpensive means of achieving significant emission reductions. Depending on several variables, some models may have a more difficult time meeting the Phase 2 standards without the use of a catalyst. Therefore, while we expect ATV manufacturers to meet the Phase 2 standards for many of their models using four-stroke engines with air injection, they may also choose to use a combination of several possible emission-control technologies, including base- engine modifications, improved fuel-system calibrations, electronic fuel injection, and catalytic converters. Off-highway motorcycles would continue to meet the 2006 standards described above. Several ATV manufacturers have expressed concern over being able to meet tighter HC+NOX standards while still meeting the proposed CO standards. They have asked us to increase or even eliminate the CO standard for Phase 2. Therefore, we request comment on whether the CO standard for Phase 2 should be increased from the proposed level of 25 g/km. [[Page 51154]] We are proposing to discontinue the provision allowing manufacturers of ATVs the option to certify to the California utility engine test procedure and emission standards for Phase 2 ATVs. We propose to require that manufacturers test all Phase 2 ATVs with the highway motorcycle FTP test procedure. Manufacturers have expressed concerns over the cost of building emission test cells equipped with chassis dynamometers and the representativeness of the FTP relative to in-use ATV operation. They argue that the FTP is no more representative of ATV operation than the steady-state J1088 engine test cycle. While it may be true that the chassis-based FTP test cycle is not fully representative of in-use ATV operation, there is currently very limited data addressing this. California is in the process of gathering in-use operating data for ATVs. Preliminary examination of that data is too inconclusive to determine whether the FTP is adequately representative of in-use ATV operation. It does indicate that the five steady-state modes captured in the J1088 cycle are not adequately representative of ATV operation. It has long been known that ATVs experience considerable transient operation, similar to automobiles and motorcycles. The California data support this view. The chassis-based FTP used for certification of motorcycles, while possibly not ideal for ATVs, therefore appears to be more representative of ATV operation than the J1088 test cycle. With this in mind, we request comment on the possibility of developing an alternate test cycle and procedure for ATVs that would be more representative of typical ATV operation. An alternate test cycle could be chassis-based or engine-based, but would need to incorporate transient operation. If an acceptable alternative cycle is developed, we would reassess whether our proposed emission test procedure for Phase 2 would still be appropriate. As with the 2006 proposed emission standards, we request comment on the ability of small-displacement ATVs to operate over the FTP test cycle and meet our proposed emission standards. We request comment on whether a Phase 2 standard for ATVs is appropriate, and on the proposed level of the Phase 2 standard. We also request comment on technology, cost, and safety issues associated with a possible second phase of off-highway motorcycle emission standards. b. Snowmobiles. We are proposing CO and HC standards for snowmobiles. We are requesting comment on whether we should set standards for PM and NOX emissions from snowmobiles, and what appropriate levels would be. As previously discussed, snowmobile engines are almost exclusively two-stroke. As such, they emit high levels of HC and PM. However, we are not proposing PM standards at this time for snowmobiles, because limits on HC emissions will serve to simultaneously limit PM. We considered adding a regulatory requirement for manufacturers to measure and report PM emission rates along with their other certification data, but we did not include such a requirement in the proposed regulations. We are most concerned about the cost to manufacturers if they were required to build PM measurement capabilities into all of their test facilities. We request comment on the need for PM emission data, and whether it is necessary to put a requirement in the regulations. We are not proposing NOX standards for snowmobiles because they are primarily operated during the winter months when ozone is not a concern. However, we are proposing that manufacturers measure NOX emission rates and report them in their applications for certification. We believe that this would provide necessary information, but would not be a significant burden for manufacturers. We request comment on this element of the proposal. 2006 Standards. We are proposing standards for snowmobiles to take effect for all models starting in the 2006 model year: 275 g/kW-hr (205 g/hp-hr) for CO and 100 g/kW-hr (75 g/hp-hr) for HC. As discussed below, we are proposing an emission-credit program with these standards. Thus, we expect manufacturers to meet these proposed standards using a variety of technologies and strategies across their product lines. Snowmobiles pose some unique problems for implementing emission-control technologies and strategies. Snowmobiles are very sensitive to weight, power, and packaging constraints. Current snowmobile designs have very high power-to-weight ratios, allowing for excellent performance. Manufacturers have stated that if snowmobile performance declines, customers will either stop purchasing snowmobiles, or will replace original equipment (e.g., emission-control technology) with uncertified aftermarket parts. The desire for low weight is perceived as a safety issue, since operators may have to drag their sleds out of deep snow. Styling, especially very low-profile hoods, has also become paramount among snowmobile enthusiasts. All these concerns mean that it may be initially more difficult for manufacturers to develop a broad range of technologies capable of significant emission reductions. Some manufacturers may aggressively pursue clean carburetion and associated engine modifications and apply those uniformly across their entire product line. Others may choose to apply more advanced technologies such as direct or semi-direct injection to some of their more expensive, high-performance sleds and be less aggressive in pursuing emission reductions from their lower- priced offerings in order to optimize the fit of different technologies (and their associated costs) to the various product offerings. We also expect some manufacturers to offer some models featuring four-stroke engines. We are proposing to require all snowmobiles to meet the proposed first phase of emission standards beginning with the 2006 model year. We request comment on options to ease the transition to the new standards, as described in Section VI.C.2.b. Due to the unique performance requirements for snowmobiles, we believe our proposed 2006 standards would be challenging for manufacturers and would result in cleaner snowmobiles. While some advanced technologies such as two-stroke direct injection and four- stroke engines, would be found in some models, many models would still be equipped with two-stroke engines with relatively minor engine modifications resulting in minimum emission reductions, while some models may not even have any emission controls. 2010 Standards. We have had many discussions with manufacturers about emission control technologies. We have also closely examined the certification emission results of outboard boat engines and personal watercraft (PWC) equipped with two-stroke direct injection and four- stroke engines. It is our belief that with sufficient lead time, manufacturers can successfully implement these technologies across a much broader range of their snowmobile fleet. Manufacturers have indicated to us that two-stroke engines equipped with direct fuel injection systems could reduce HC emissions by 70 to 75 percent and reduce CO emissions by 50 to 60 percent. Certification results for 1999 and 2000 model year outboard engines and PWC support the manufacturers projections. In addition, two snowmobile manufacturers plan to sell a four-stroke model next year. These manufacturers indicated that their machines are capable of HC reductions in the 70 to 95 percent range, with CO reductions of 60 to 80 percent. Therefore, we believe that with [[Page 51155]] sufficient time it is feasible for snowmobile manufacturers to achieve a greater penetration of advanced emission control technologies throughout their fleets and reduce emissions further. We are, therefore, proposing a second phase of average standards to take effect with the 2010 model year. The proposed 2010 average standards are 200 g/kW-hr (149 g/hp-hr) for CO and 75 g/kW-hr (56 g/hp- hr) for HC. These standards represent a 50% reduction in HC and CO emissions from the current average baseline levels. We believe that implementation in 2010 would provide sufficient time for advanced technologies to be more broadly available. We also believe that manufacturers will have had adequate time to make appropriate modifications to snowmobile designs (e.g., styling and packaging issues) so they can more broadly spread advanced emission-control technologies across their product lines. We expect these standards would be met through the application of direct injection two-stroke technology and, to a much lesser extent, four-stroke technology, to cover about half of overall production, with the remaining models utilizing clean carburetion and electronic fuel injection, along with the associated engine modifications. The actual mix of technologies used would be the manufacturers choice, but the data mentioned above gives us reason to believe that the basic technology exists to meet the standard based on a 50-percent reduction. We believe that the lead time provided to meet these standards is sufficient to overcome the technical hurdles discussed below in Section VI.F.2. We request comment on our second phase of snowmobile standards. In particular, we are interested in comments on the level of the standards, our technical assessment and potential fleet mix projections, any safety, reliability, or performance considerations associated with adoption of four-stroke technology. We also request comment on the cost of adopting such standards and the effects on sales and consumer satisfaction. We are also interested in further information addressing the benefits associated with such a standard. c. Noise Standards. The Noise Control Act (42 U.S.C. 4901 et seq.) authorizes EPA to establish noise emission standards for motorized equipment. Under this authority, we established noise emission standards for motorcycles and three-wheeled ATVs in 40 CFR Part 205 (45 FR 86708, December 31, 1980). These regulations include voluntary ``Low noise emission product standards'' for motorcycles Sec. CFR 205.152(c)). Prior to proposal, we received public comments requesting that we consider setting new noise standards for recreational vehicles. Noise from these vehicles in public parks or other public lands can adversely impact other activities. However, at this time we do not have funding to pursue noise standards for nonroad equipment that does not have an existing noise requirement. 2. Are There Opportunities for Averaging, Emission Credits, or Other Flexibilities? a. Averaging, Banking and Trading. Historically, voluntary emission-credit programs have allowed a manufacturer to certify one or more engine families at emission levels above the applicable emission standards, provided that the increased emissions are offset by one or more engine families certified below the applicable standards. With averaging alone, the average of all emissions for a particular manufacturer's production must be at or below that level of the applicable emission standards. We are proposing separate emission- credit programs for snowmobiles, off-highway motorcycles, and ATVs. We are proposing an emissions credit program for the optional Phase 1 ATV engine-based standards as well as the chassis-based standards. We request comment on whether or not averaging, banking, and trading adds value to the engine-based option considering the level of the standards being proposed. In addition to the averaging program just described, the proposed emission-credit program contains banking and trading provisions, which allow manufacturers to generate emission credits and bank them for future use in their own averaging program or sell them to another entity. We are not proposing a credit life limit or credit discounting for these credits. Unlimited credit life and no discounting increases the incentive to introduce the clean technologies needed to gain credits. In order to generate credits, the average emissions level must be below the standard, so the credits would be the result of reductions in excess of those required by the standards. We are seeking comment on whether or not a credit life limit (e.g., three years) is needed to ensure that manufacturers do not have the opportunity to, in effect, postpone the Phase 2 standards for several years for one or more vehicle families. Unlimited credit life has the potential to interfere with the timely and orderly phase-in of future standards, especially if the manufacturer is able to bank large amounts of credits during intervening years. This is a concern here because the proposed level of the Phase 1 standards may provide considerable opportunity for credit generation for manufacturers that can market a significant number of relatively clean models early in the program. For example, some 4-stroke ATV models are likely to have emissions levels below the Phase 1 standards, allowing for considerable credit generation. We also request comment on how this issue may differ for credits generated under Phase 2, where the affect on the next tier of standard is not a complicating issue. We would have the opportunity to consider and reassess such a provision if and when we were to propose a third phase of standards. In addition, we request comments on an alternative approach of not allowing credits generated in Phase 1 to be used in Phase 2. For off-highway motorcycles and ATVs, we are proposing to allow averaging for the HC plus NOX standard. Off-highway motorcycle and ATVs would be averaged separately to avoid providing an advantage in the market to companies that offer both types of products over those that produce only one type. In addition, there are differing degrees of stringency in the standards for ATVs and off-road motorcycles long-term and we do not want off-road motorcycle credits to dilute the effectiveness of the Phase 2 ATV standards. Also, ATVs certified to the chassis-based standards and engine-based standards would be considered separate averaging groups with no credit exchanges between the two. We are not allowing credit exchanges between engine and chassis-based testing because there is little, if any, correlation between the two test cycles. Without a strong correlation, it is not possible to establish an exchange rate between the two programs. We are not proposing a CO averaging, banking, and trading program because the level of the standard does not appear to add substantial technological challenge to the program, especially for Phase 1. The usefulness of CO averaging may not warrant the additional complexity of an averaging program. We request comment on the need for a CO ABT program for Phase 2, and on the proposed approach for separate ABT programs. For the Phase 2 ATV standards, we are proposing a maximum allowable Family Emission Limit (FEL) of 2.0 g/km HC plus NOX (the Phase 1 standard). In several other ABT programs, we have [[Page 51156]] established a cap at the previous emission standard to ensure a minimum level of control long term. We request comment on whether or not an FEL limit is appropriate to ensure a minimum level of control for all models. Please see the discussion on this issue in the recreational marine diesel section of this document for more information. We request comment specifically on how this approach could affect product offerings and consumer choice. We also request comment on the level of the emissions cap and alternative levels. For snowmobiles, we are proposing an emission-credit program for both CO and HC. We are proposing that maximum allowable Family Emission Limits be set at the current average baseline emission levels of 400 g/ kW-hr (300 g/hp-hr) CO and 150 g/kW-hr (110 g/hp-hr) HC. This cap ensure a minimum level of control for each snowmobile certified under the program. We believe that this is appropriate due to the potential for personal exposure to very high levels of emissions as well as the potential for high levels of emissions in areas where several snowmobiles are operated in a group. We request comment on the level of the cap for Phase 1. We also request comment on whether it would be appropriate to set more stringent maximum allowable Family Emission Limits for 2010 and later model year snowmobiles, for example, at the levels of the 2006 standards. We are interested in comment on any potential impacts a more stringent cap may have on the variety of products available to the consumer. We are proposing that manufacturers may not both generate and use credits for the different pollutants within a given engine family. We request comment on all aspect of the proposed ABT program, including on the administrative and liability provisions provided in the proposed regulatory text. b. Early Credits and Alternative Phase-in Schedule. We are interested in but are not specifically proposing opportunities for early credits, and other flexibilities, as discussed below. We are proposing no phase-in schedule for snowmobiles and a two-year phase-in schedule for off-road motorcycles and ATVs. While we believe adequate lead-time is provided to meet the proposed standards, we recognize that some flexibility in timing could help manufacturers transition their full product line to new standards. We are requesting comment on three specific approaches to providing additional flexibility to manufacturers, described below. We are interested in how these provisions could be established in a way that would be environmentally neutral and yet also provide manufacturers with flexibility. We are not proposing provisions for early generation of credits, because we have not been able to resolve our concerns about substantial windfall credits (credits generated relatively easily from baseline engines). For example, there could be substantial credits available for snowmobile manufacturers that have developed four-stroke snowmobile models. Also, some baseline ATV and off-highway motorcycles could also have relatively low emission levels. However, as discussed below, we are seeking comment on approaches for early credits that could address concerns regarding windfall credits. Under an early emission-credit approach, manufacturers could earn credits by reducing emissions earlier than required, then use those credits after the program begins. Because there is a wide variation in baseline emission levels, we would need to consider taking steps to ensure that manufacturers do not generate windfall credits. One way to address the concern for windfall credits would be to allow credits only for emission reductions below the proposed standards and limit the life of those credits to three years. We believe this approach may ensure that manufacturers would generate credits only through the use of cleaner technologies. It also ensures that the credits would not adversely impact the long-term effectiveness of the program. This approach would provide incentive for manufacturers to pull ahead significantly cleaner technologies. We request comment on early credits for CO and HC emissions for snowmobiles and HC+NOX emissions for off-road motorcycles and ATVs, and a requirement that the credit- generating engines also meet the standards for the other regulated pollutants. Under the second approach, an alternative phase-in schedule, manufacturers would be provided with a one-for-one credit in the phase- in schedule for selling complying recreational vehicles prior to the start of the program. Manufacturers who pull ahead a percentage of their product line would get a phase-in credit to be used during the initial years of the program (i.e., 2008 and earlier). For example, if a snowmobile manufacturer phased in 10 percent of their product line early in 2005, they could then phase-in 90 percent, rather than 100 percent, of their product line in 2006. We would expect this to be a transitional provision limited to the first few years of the program (all vehicles would need to be certified by 2008). We could implement the program through a calculation based on the sum of the phase-in percentages over a series of model years. For example, for snowmobiles, the sum of the phase-in percentages over model years 2004-2008 could be required to be equal to or greater than 300% (100% each for 2006, 2007, and 2008). For off-road motorcycles and ATVs, the calculation would take into account the 50/100 percent phase-in schedule for 2006/2007, with a requirement that the sum of the phase-in be equal to or greater than 250 percent. For example, an alternative phase-in schedule of 25/ 50/75/100 percent in 2005 through 2008 would be acceptable. The calculation of the percentage phase-in would be the same as that for the standard program. An alternative to early banking or a revised phase-in would be ``family-banking.'' Under the ``family-banking'' concept, we would allow manufacturers to certify an engine family early. For each year of certifying an engine family early, the manufacturer would be able to delay certification of a smaller engine family by one year. This would be based on the actual sales of the early family and the projected sales volumes of the late family; this would require no calculation or accounting of emission credits. We request comment on the above approaches or any other approach that would help manufacturers bring the product lines into compliance to the proposed standards without compromising emissions reductions (see Sec. 1048.145 of the proposed regulations). We request comment on the merits of the various approaches noted above, and others commenter may wish to suggest. We request that commenters provide detailed comments on how the approaches should be set up, enhanced, or constrained to ensure that they serve their purpose without diminishing the overall effectiveness of the standards. 3. Is EPA Proposing Voluntary Low-Emission Standards for These Engines? We are proposing a Voluntary Low-Emission Standards program for recreational vehicles. The purpose of this program is two-fold; first, to encourage new emission-control technology and second, to aid the consumer in choosing clean technologies. At the point of purchase, manufacturers could add a tag designating qualifying vehicles to inform consumers which engines are certified by this program and listing the certification levels of the vehicles. In addition, we are suggesting that manufacturers provide information about the program in the vehicle [[Page 51157]] Owner's Manual. To qualify for this program, engines must meet the voluntary standards described below. Manufacturers choosing to sell engines with this designation may generate certification emission credits from these technologies. The general purpose of the Voluntary Low-Emission Standards program is to provide incentives to manufacturers to produce clean products and thus create market choices for consumers to purchase these products.\154\ We believe that EPA designation of clean technologies through this voluntary program can provide useful information to consumers. We request comment on the merits and design of the program and also on additional measures we can take to encourage this program and prohibit misuse. --------------------------------------------------------------------------- \154\ The snowmobile industry (see docket item II-G-221) and a group of public health and environmental organizations (see docket item II-G-139) have both expressed their general support for labeling programs that can provide information on the environmental performance of various products to consumers. --------------------------------------------------------------------------- We are proposing Voluntary Low-Emission Standards for off-highway motorcycles and ATVs of 0.8 g/km (1.3 g/mi) HC+NOX and 12 g/ km (24.3 g/mi) CO. These emission levels are consistent with the 2008 standards proposed by California ARB for highway motorcycles. We believe that off-highway motorcycles and ATVs could meet these voluntary standards by employing some of the same technologies manufacturers will use to meet the 2008 California emission standards for highway motorcycles. We request comment on the level of the standards and the need for lower voluntary standards for Phase 2 of the ATV program. We are proposing Voluntary Low Emission Standards for snowmobiles of 200 g/kW-hr (149 g/hp-hr) for CO and 75 g/kW-hr (56 g/hp-hr) for HC through 2009 model year snowmobiles. These are the same levels as our proposed phase 2 standards. For the 2010 model year and later, the standards are 120 g/kW-hr (89 g/hp-hr) for CO and 45 g/kW-hr (34 g/hp- hr) for HC for any snowmobiles. We believe these voluntary standards could be met with either direct injection two-stroke, or four-stroke technology. Snowmobiles included in this program may generate credits for use in the proposed emission-credit program. We request comment on the level of the voluntary standards being proposed and whether we should consider more or less stringent voluntary standards for snowmobiles. 4. What Durability Provisions Apply? We are proposing several additional provisions to ensure that emission controls would be effective throughout the life of the vehicle. This section discusses these proposed provisions for recreational vehicles. More general certification and compliance provision, which would apply across the different vehicle categories in this proposal, are discussed in Sections III and VII, respectively. a. How long would my engine have to comply? We propose to require manufacturers to produce off-highway motorcycle and ATV engines that comply over their full useful life, where useful life is the period that lasts either 5 years or until the vehicle accumulates 30,000 kilometers, whichever occurs first. We would consider this 30,000- kilometer value to be a minimum kilometer value for useful life, and would require manufacturers to comply for a longer period in those cases where they design their vehicles to be operated longer than 30,000 kilometers. For snowmobiles, we are proposing a minimum useful life of 5 years or 300 hours of operation, whichever occurs first. We based these values on discussions with manufacturers regarding typical snowmobile life, and on emission-modeling data regarding typical snowmobile usage rates.\155\ --------------------------------------------------------------------------- \155\ EPA memorandum, ``Emission Modeling for Recreational Vehicles,'' from Linc Wehrly to Docket A-98-01, November 13, 2000. --------------------------------------------------------------------------- We request comment on the proposed useful life values. Any comments in support of a different useful life should include documentation of typical life and operation. b. Would I have to warrant my engine's emission controls? We are proposing a design/defect warranty period of 3 years, with an hours or kilometers limit equal to half the useful life interval proposed above. During this time manufacturers would repair or replace free of charge emission-related components that fail. Because this warranty requirement applies only for emission-related components, manufacturers are not responsible for routine maintenance that is currently performed for uncontrolled engines (e.g., changing oil filters or carburetors). c. How would I demonstrate emission durability during certification? For off-highway motorcycles and ATVs, we are proposing the same durability demonstration requirements that apply to highway motorcycles. This includes a requirement to run the engines long enough to test for exhaust emissions at the end of the useful life. This allows manufacturers to generate a deterioration factor that helps ensure that the engines will continue to control emissions over a lifetime of operation. d. What maintenance would be allowed during service accumulation? For vehicles certified to the proposed useful life, no emission-related maintenance would be allowed during service accumulation. The only maintenance that would be allowed is regularly scheduled maintenance unrelated to emissions that is technologically necessary. This could typically include changing engine oil, oil filter, fuel filter, and air filter. 5. Do These Standards Apply to Alternative-Fueled Engines? These proposed standards apply to all spark-ignited recreational vehicles, without regard to the type of fuel used. However, because we are not aware of any alternative-fueled recreational vehicles sold into the U.S. market, we are not proposing extensive special provisions to address them at this time. 6. Is EPA Controlling Crankcase Emissions? We are proposing to require that new off-highway motorcycles and ATVs be built to prevent crankcase emissions. This means that engines would no longer emit crankcase vapors directly to the atmosphere. The typical control strategy is to route the crankcase vapors back to the engine intake. This proposal is consistent with our previous regulation of crankcase emissions from such diverse sources as highway motorcycles, outboard and personal watercraft marine engines, locomotives, and passenger cars. We have data from California ARB showing that a performance-based four-stroke off-highway motorcycle experienced considerably higher tailpipe emission results when crankcase emissions were routed back into the intake of the engine, illustrating the potentially high levels of crankcase emissions that exist.\156\ We are also proposing closed crankcases on new snowmobiles. This requirement is only relevant for four-stroke snowmobiles, however, since two-stroke engines, by virtue of their operation, have closed crankcases. Information on the costs and benefits of this action can be found in the Draft Regulatory Support Document. --------------------------------------------------------------------------- \156\ Memo to Docket from Linc Wehrly, dated September 10, 2001. (A-2000-1) document II-B-25. --------------------------------------------------------------------------- D. Proposed Testing Requirements 1. What Duty Cycles Are Used To Measure Emissions? Testing a vehicle or engine for emissions consists of exercising it over [[Page 51158]] a prescribed duty cycle of speeds and loads, typically using a chassis or engine dynamometer. The nature of the duty cycle used for determining compliance with emission standards during the certification process is critical in evaluating the likely emission performance of engines designed to those standards. Duty cycles must be relatively comparable to the way equipment is actually used because if they are not, then compliance with emission standards would not assure that emissions from the equipment are actually being reduced in use as intended. a. Off-highway Motorcycles and ATVs. For off-highway motorcycles and ATVs, we propose that the current highway motorcycle test procedure be used for measuring emissions. The highway motorcycle test procedure is the same test procedure as used for light-duty vehicles (i.e., passenger cars and trucks) and is referred to as the Federal Test Procedure (FTP). The FTP for a particular class of engine or equipment is actually the aggregate of all of the emission tests that the engine or equipment must meet to be certified. However, the term FTP has also been used traditionally to refer to the exhaust emission test based on the Urban Dynamometer Driving Schedule (UDDS), also referred to as the LA4 (Los Angeles Driving Cycle #4). The UDDS is a chassis dynamometer driving cycle that consists of numerous ``hills'' which represent a driving event. Each hill includes accelerations, steady-state operation, and decelerations. There is an idle between each hill. The FTP consists of a cold start UDDS, a 10 minute soak, and a hot start. The emissions from these three separate events are collected into three unique bags. Each bag represents one of the events. Bag 1 represents cold transient operation, bag 2 represents cold stabilized operation, and bag 3 represents hot transient operation. Highway motorcycles are divided into three classes based on engine displacement, with Class I (50 to 169 cc) being the smallest and Class III (280 cc and over) being the largest. The highway motorcycle regulations allow Class I motorcycles to be tested on a less severe UDDS cycle than the Class II and III motorcycles. This is accomplished by reducing the acceleration and deceleration rates on some of the more aggressive ``hills.'' We propose that this same class/cycle distinction be allowed for off-highway motorcycles and ATVs. In other words, off- highway motorcycles and ATVs with an engine displacement between at or below 169 cc would be tested over the FTP test cycle for Class I highway motorcycles. Off-highway motorcycles and ATVs with engine displacements greater than 169 cc would be tested over the FTP test cycle for Class II and Class III highway motorcycles. Some manufacturers have expressed concern over the ability of some small- displacement (e.g., less than 80 cc) youth off-highway motorcycles and ATVs to operate over the FTP. We request comment on the ability of these small-displacement vehicles to operate over the FTP test cycle. We also request comment on whether or not it would be appropriate to allow all ATVs to be certified using the Class I cycle. Some manufacturers have noted that they do not currently have chassis-based test facilities capable of testing ATVs. Manufacturers have noted that requiring chassis-based testing for ATVs would require them to invest in additional testing facilities that can handle ATVs, since ATVs do not fit on the same roller(s) as motorcycles used in chassis testing. Some manufacturers also have stated that low-pressure tires on ATVs would not stand up to the rigors of a chassis dynamometer test. California provides manufacturers with the option of certifying ATVs using the engine-based, utility engine test procedure (SAE J1088), and most manufacturers use this option for certifying their ATVs. Manufacturers have facilities to chassis-test motorcycles and therefore California does not provide an engine-testing certification option for motorcycles. We have tested numerous ATVs over the FTP and have found that several methods can be used to test ATVs on chassis dynamometers. The most practical method for testing an ATV on a motorcycle dynamometer is to disconnect one of the drive wheels and test with only one drive wheel in contact with the dynamometer. For chassis dynamometers set up to test light-duty vehicles, wheel spacers or a wide axle can be utilized to make sure the drive wheels fit the width of the dynamometer. We have found that the low-pressure tires have withstood dynamometer testing without any problems. We acknowledge that a chassis dynamometer could be very costly to purchase and difficult to put in place in the short run, especially for smaller manufacturers. Therefore, we are proposing that for the model years 2006 through 2009, ATV manufacturers would be allowed the option to certify using the J1088 engine test cycle per the California off- highway motorcycle and ATV program. After 2009, this option would end and the FTP would be the required test cycle. If an alternate transient test cycle (engine or chassis) correlates with the FTP or better represents in-use ATV operation, we would consider allowing manufacturers to use the alternative test cycle in place of the FTP. b. Snowmobiles. We are proposing to adopt the snowmobile duty cycle developed by Southwest Research Institute (SwRI) in cooperation with the International Snowmobile Manufacturers Association (ISMA) for all snowmobile emission testing.\157\ The test procedure consists of two main parts; the duty cycle that the snowmobile engine would operate over during testing and other testing protocols surrounding the measurement of emissions (sampling and analytical equipment, specification of test fuel, atmospheric conditions for testing, etc.). While the duty cycle we are proposing was developed specifically to reflect snowmobile operation, many of the testing protocols are well established in other EPA emission-control programs and have been simply adapted where appropriate for snowmobiles. --------------------------------------------------------------------------- \157\ ``Development and Validation of a Snowmobile Engine Emission Test Procedure,'' Jeff J. White, Southwest Research Institute and Christopher W. Wright, Arctic Cat, Inc., Society of Automotive Engineers paper 982017, September, 1998. (A-2000-1) document II-D-05. --------------------------------------------------------------------------- The snowmobile duty cycle was developed by instrumenting several snowmobiles and operating them in the field in a variety of typical riding styles, including aggressive (trail), moderate (trail), double (trail with operator and one passenger), freestyle (off-trail), and lake driving. A statistical analysis of the collected data produced the five mode steady-state test cycle is shown in Table VI.D-1. Table VI.D-1.--Proposed Snowmobile Engine Test Cycle ---------------------------------------------------------------------------------------------------------------- Mode 1 2 3 4 5 ---------------------------------------------------------------------------------------------------------------- Normalized Speed....................... 1 0.85 0.75 0.65 Idle Normalized Torque...................... 1 0.51 0.33 0.19 0 [[Page 51159]] Relative Weighting (%)................. 12 27 25 31 5 ---------------------------------------------------------------------------------------------------------------- We believe this duty cycle is representative of typical snowmobile operation and is therefore appropriate for demonstrating compliance with the proposed snowmobile emission standards. We request comment on this proposed duty cycle, and on any alternatives that we should consider. The other proposed testing protocols are largely derived from our regulations for marine outboard and personal watercraft engines, as recommended in the SwRI/ISMA test cycle development work (61 FR 52088, October 4, 1996). The testing equipment and procedures from that regulation are generally appropriate for snowmobiles. Unlike snowmobiles, however, the marine engines tend to operate in fairly warm ambient temperatures. Thus, some provision needs to be made in the snowmobile test procedure to account for the colder ambient temperatures typical of snowmobile operation. Since snowmobile carburetors are jetted for specific ambient temperatures and pressures, we could take one of two general approaches. The first is to require testing at ambient temperatures typical of snowmobile operation, with appropriate jetting. A variation of this option is to simply require that the engine inlet air temperature be representative of typical snowmobile operation, without requiring that the entire test cell be at that temperature. The second is to allow testing at higher temperatures than typically experienced during snowmobile operation, with jetting appropriate to the warmer ambient temperatures. We are proposing that snowmobile engine inlet air temperature be between -15 deg. C and -5 deg. C (5 deg. F and 23 deg. F), but that the ambient temperature in the test cell not be required to be refrigerated. We believe this approach strikes an appropriate balance between the need to test at conditions that are representative of actual use, and the fact that simply cooling the inlet air would be significantly less costly than requiring a complete cold test cell. We request comment on whether we should allow snowmobile engine testing to be done according to the test procedures developed by Southwest Research Institute. Under those procedures testing is done at warmer ambient temperatures than typical of snowmobile operation. Appropriate jetting under this approach is determined by extrapolating from the manufacturer's jet chart (if necessary). We invite comment on all aspects of the proposed test procedures. 2. What Fuels Will Be Used During Emission Testing? We are proposing to use the same fuel specifications for all recreational vehicles as we currently use for highway motorcycles and light-duty vehicles, which is representative of a summertime blend. We believe that off-highway motorcycles and ATVs use the same fuel as highway motorcycles. While snowmobiles typically operate during wintertime, we believe it is appropriate to use summertime gasoline for testing, primarily because it is the fuel that was used for the snowmobile emission testing that supported the development of our baseline emission estimates. Also, the majority of snowmobile HC emissions are a result of scavenging losses (unburned fuel from the intake charge exiting the combustion chamber with the exhaust gases). The primary difference between summertime and wintertime gasoline blends is the volatility, which is not likely to have a significant effect on scavenging losses. However, given that snowmobiles typically operate during wintertime, we request comment on whether we should consider a unique test fuel specifically for snowmobiles, and what specifications might be appropriate for such a fuel. Also, if we were to consider a unique snowmobile test fuel based on wintertime gasoline properties, should the proposed standards be adjusted in any way to account for the fact that the baseline emission estimates were developed from test data utilizing summertime blends. 3. Are There Production-Line Testing Provisions for These Engines? We are proposing that recreational vehicle or engine manufacturers perform emission tests on a small percentage of their production as it leaves the assembly line to ensure that production vehicles operate at certified emission levels. The broad outline of this program is discussed in Section III.C.4 above. We are proposing that production- line testing be performed using the same test procedures as for certification testing. We request comment on all aspects of the proposed production-line testing requirements, including engine sampling rates and options for using alternative testing methods. E. Special Compliance Provisions As described in Section XI.B, the report of the Small Business Advocacy Review Panel addresses the concerns of small-volume manufacturers of recreational vehicles. Off-Highway Motorcycles and ATVs To identify representatives of small businesses for this process, we used the definitions provided by the Small Business Administration for motorcycles, ATVs, and snowmobiles (fewer than 500 employees). Eleven small businesses agreed to serve as small-entity representatives. These companies represented a cross-section of off- highway motorcycle, ATV, and snowmobile manufacturers, as well as importers of off-highway motorcycles and ATVs. As discussed above, our proposed emission standards for off-highway motorcycles and ATVs will likely necessitate the use of 4-stroke engines. Most small-volume off-highway motorcycle and ATV importers-- and to a lesser degree, small-volume manufacturers--currently use 2- stroke engines. While 4-stroke engines are in widespread use in motorcycles and ATVs in general, their adoption by any manufacturer is still a significant business challenge. Small manufacturers of these engines could face additional challenges in certifying engines to emission standards, because the cost of certification would be spread over the relatively few engines they produce. These higher per-unit costs could place small manufacturers at a competitive disadvantage without specific provisions to address this burden. We are proposing to apply the flexibilities described below to engines produced or imported by small entities with combined off- highway motorcycle and ATV annual sales of fewer than 5,000 units. The SBAR Panel recommended these provisions to address the potentially significant adverse effects on small entities of an emission standard that will likely result in the use of four-stroke engines. The 5,000- unit threshold is intended to focus these flexibilities on those segments of the market where the need [[Page 51160]] is likely to be greatest and to ensure that the flexibilities do not result in significant adverse environmental effects during the period of additional lead-time recommended below.\158\ We request comment on the appropriateness of the 5,000-unit threshold. In addition, we propose to limit use of some or all of these flexibilities to entities that are in existence or have product sales at the time of proposal to avoid creating arbitrary opportunities in the import sector, and to guard against the possibility of corporate reorganization, entry into the market, or other action for the sole purpose of circumventing emission standards. We request comment on any such restrictions. --------------------------------------------------------------------------- \158\ For example, importers may have access to large supplies of vehicles from major overseas manufacturers and potentially could substantially increase their market share by selling less expensive noncomplying products. --------------------------------------------------------------------------- We also request comment on allowing small entities with sales in excess of 5,000 units to certify using the flexible approaches described below for several engines equal to their 2000 or 2001 sales level. This would assure that all small entities currently in the market would be able to take advantage of these approaches. In addition, we request comment on when small entities must notify EPA that they intend to use the small-entity flexibilities. During the Panel's outreach meeting with small entities on issues related to recreational ATVs and off-road motorcycles, small entities expressed particular concern that a federal emission standard requiring manufacturers to switch to four-stroke engines might increase costs to the point that many small importers and manufacturers could experience significant adverse effects. As noted above, the Panel recommendations are designed to reduce the burden on small entities without compromising the environmental benefits of the program. However, it is possible that even with the broad flexibility under consideration, costs to small entities may still be too high. Also, they may not be able to recover costs without losing much or all of their business. We seek comment on the effect of the proposed standard on small entities, including any data or related studies to estimate the extent to which sales of their products are likely to be reduced as a result of changes in product price resulting from the proposed standards, more specifically from the conversion of two-stroke technology to four- stroke technology. Additionally, we seek comment on any differences in costs between small and large manufacturers. We plan to assess information received in response to this request to inform the final rule decision-making process on whether additional flexibility (beyond that proposed below) is warranted. Snowmobiles There are only a few small snowmobile manufacturers and they sell only a few hundred engines a year, which represents less than 0.5 percent of total annual production. Therefore, the per-unit cost of regulation could be significantly higher for these small entities because they produce very low volumes. Additionally, these companies do not have the design and engineering resources to tackle compliance with emission standard requirements at the same time as large manufacturers and tend to have limited ability to invest the capital necessary to conduct emission testing related to research, development, and certification. Finally, the requirements of the snowmobile program may be infeasible or highly impractical because some small-volume manufacturers may have typically produced engines with unique designs or calibrations to serve niche markets (such as mountain riding). Our proposed snowmobile emission standards could impose significant economic hardship on these few manufacturers whose market presence is small. We therefore believe significant flexibility is necessary and appropriate for this category of small entities, as described below. Flexibilities 1. Additional Lead Time We believe additional lead-time would be a way of reducing the burden to meet the proposed standards. This would provide extra time for technology to develop and, in the case of importers, extra time to resolve supplier issues that may arise. We propose a delay of two years beyond the date larger businesses would be required to comply. For ATVs and snowmobiles, the two-year delay would also apply to the timing of the proposed Phase 2 standards. In addition, for small snowmobile manufacturers, we propose that the emission standards be phased in over an additional two years at a rate of 50 percent, then 100 percent. Phase 1 would be phased in at 50/ 50/100 percent in 2008/2009/2010 and Phase 2 would be phased in 50/50/ 100 percent in 2012/2013/2014. We seek comment on whether a longer time period is appropriate given the costs of compliance for small businesses and the relationship between importers and their suppliers. 2. Design-Based Certification The process of certification is a business cost and lead time issue that may place a disproportionate burden on small entities, particularly importers. Certification is a fixed cost of doing business, which is potentially more burdensome on a unit-cost basis for small entities. It is potentially an even greater challenge, since some small entities will either contract emission testing to other parties or, in the case of importers, perhaps rely on off-shore manufacturers to develop and certify imported engines. We propose to permit small-volume manufacturers to use design-based certification, which would allow us to issue a certificate to a small business for the emission-performance standard based on a demonstration that engines or vehicles meet design criteria rather than by emission testing. The intent is to demonstrate that an engine using a design similar to or superior than that being used by larger manufacturers to meet the proposed emission standards would ensure compliance with the proposed standards. The demonstration would be based in part on emission test data from engines of a similar design. Under a design- based certification program, a manufacturer would provide evidence in the application for certification that an engine or vehicle would meet the applicable standards for its useful life based on its design (e.g., the use a four-stroke engine, advanced fuel injection, or any other particular technology or calibration). The design criteria could include specifications for engine type, calibrations (spark timing, air/fuel ratio, etc.), and other emission-critical features, including, if appropriate, catalysts (size, efficiency, precious metal loading). Manufacturers would submit adequate engineering and other information about their individual designs showing that they meet emission standards for the useful life. We request comment on how these provisions should be implemented. We also seek comment on whether we should allow large manufacturers to use similar provisions on a limited basis. 3. Broaden Engine Families We propose an approach that would allow for relaxed criteria for what constitutes an engine or vehicle family. It would allow small businesses to put all their models into one vehicle or engine family (or more) for certification purposes if appropriate. Manufacturers would then certify their engines using the ``worst-case'' configuration within the family. [[Page 51161]] A small manufacturer might need to conduct certification emission testing rather than pursuing design-based certification. Such a manufacturer would likely find broadened engine families useful. 4. Production-Line Testing Waiver As discussed above, we are proposing to require manufacturers to test a small sampling of production engines to ensure that production engines meet emission standards. We propose to waive production-line testing for small entities and request comment on whether limits for this waiver would be appropriate. This would eliminate or substantially limit production-line testing requirements for small businesses. It could be limited to engine/vehicle families under a given production volume or could be applied broadly to small businesses. This is likely to be important to small businesses, many of which do not have testing facilities on-site and would rely on outside contractors for testing. 5. Use of Assigned Deterioration Factors for Certification We propose to provide small entities with the option of using assigned deterioration factors. Rather than performing a durability demonstration for each family for certification, manufacturers would elect to use deterioration factors determined by us to demonstrate emission levels at the end of the useful life, thus reducing the development and testing burden. This could be a very useful and cost- beneficial option for a small manufacturer opting to perform certification emission testing instead of design-based certification. 6. Using Emission Standards and Certification From Other EPA Programs A wide array of engines that have been certified to other EPA programs could be used in recreational vehicles. For example, there is a large variety of engines certified to EPA lawn and garden standards (Small SI). We propose to allow manufacturers of recreational vehicles to use engines certified to any other EPA standards for five years. Under this approach, engines certified to the Small SI standards could be used in recreational vehicles, and such engines would be subject to the Small SI standards and related provisions rather than the Recreational Vehicle program. The small business using the engine would not have to recertify the engine, provided the manufacturer does not alter the engine in such a way as to cause it to exceed the emission standards it was originally certified as meeting. Also, the recreational vehicle application may not be the primary intended application for the engine. We request comment on which of the already established standards and programs would be a useful certification option for small businesses. Additionally, a certified snowmobile engine produced by a large snowmobile manufacturer could be used by a small snowmobile manufacturer, provided the small manufacturer did not alter the engine in such a way as to cause it to exceed the snowmobile emission standards. This would provide a reasonable degree of emission control provided all other elements of the program were met. For example, if the only change a manufacturer were to make to the certified engine was to replace the stock Y-pipes and exhaust pipes with pipes of similar configuration or the stock muffler and air intake box with a muffler and air box of similar air flow, the engine could, subject to our review, still be eligible for this flexibility option. The manufacturer could also change the carburetor to have a leaner air/fuel ratio without losing eligibility. We believe that the manufacturer in such cases could establish a reasonable basis for knowing that emissions performance is not negatively affected be the changes. However, if the manufacturer were to change the bore or stroke of the engine, the engine would no longer qualify, as emissions could increase. We propose to allow the above approach for small snowmobile manufacturers. 7. Averaging, Banking, and Trading For the overall program, we are proposing corporate-average emission standards with opportunities for banking and trading of emission credits. We would expect the averaging provisions to be most helpful to manufacturers with broad product lines. Small manufacturers and small importers with only a few models might not have as much opportunity to take advantage of these flexibilities. However, we received comment from one small manufacturer supporting these types of provisions as a critical component of the program. We request comment on how the provisions could be enhanced for small business to make them more useful. 8. Hardship Provisions We are proposing provisions to address hardship circumstances, as described in Section VII.C. 9. Unique Snowmobile Engines Even with the broad flexibilities described above, there may be a situation where a small snowmobile manufacturer cannot comply. Therefore, we propose an additional provision to allow a small snowmobile manufacturer to petition us for relaxed standards for one or more engine families. The manufacturer would have to justify that the engine has unique design, calibration, or operating characteristics that make it atypical and infeasible or highly impractical to meet the emission-reduction requirements, considering technology, cost, and other factors. At our discretion, we would then set an alternative standard at a level between the prescribed standard and the baseline level. Such a standard would be intended to apply until the engine family is retired, or modified in such a way as to increase emissions. These engines would be excluded from the averaging calculation. We seek comment on allowing this provision for up to 300 engines per year per manufacturer, which would ensure that it is sufficiently available for those manufacturers needing it most. We seek comment on initial and deadline dates for submitting these petitions. While any relief would be enacted for the first year standards apply, there may be value to getting feedback early. It would seem reasonable that the first date for submittals would be during the first year of requirements for large manufacturers. The deadline for submittals might be at some time during the last year of the small- business delay. F. Technological Feasibility of the Standards 1. Off-Highway Motorcycles and ATVs We believe the proposed standards are technologically feasible given the availability of emission-control technologies in the context of the proposed program, as described below. a. What are the baseline technologies and emission levels? As discussed earlier, off-highway motorcycles and ATVs are equipped with relatively small (48 to 650 cc) high-performance two- or four-stroke single cylinder engines that are either air- or liquid-cooled.\159\ Since these vehicles are unregulated outside of the state of California, the main emphasis of engine design is on performance, durability, and cost and thus they generally have no emission controls. The fuel systems used on these engines are almost exclusively carburetors. Two-stroke engines [[Page 51162]] lubricate the piston and crankshaft by mixing oil with the air and fuel mixture. This is accomplished by most contemporary 2-stroke engines with a pump that sends two-cycle oil from a separate oil reserve to the carburetor where it is mixed with the air and fuel mixture. Some less expensive two-stroke engines require that the oil be mixed with the gasoline in the fuel tank. Four-stroke engines inject oil via a pump throughout the engine as the means of lubrication. With the exception of those vehicles certified in California, most of these engines are unregulated and thus have no emission controls. For performance and durability reasons, off-highway motorcycle and ATV engines all tend to operate with a ``rich'' air and fuel mixture. That is, they operate with excess fuel, which enhances performance and allows engine cooling to promote longer engine life. However, rich operation results in high levels of HC, CO, and PM emissions. Also, two-stroke engines tend to have high scavenging losses, where up to a third of the unburned air and fuel mixture goes out of the exhaust resulting in high levels of HC emissions. --------------------------------------------------------------------------- \159\ The engines are small relative to automotive engines. For example, automotive engines typically range from one liter to well over five liters in displacement, whereas off-highway motorcycles would range from 0.05 liters to 0.65 liters. --------------------------------------------------------------------------- b. What technology approaches are available to control emissions? Several approaches are available to control emissions from off-highway motorcycles and ATVs. The simplest approach would consist of modifications to the base engine, fuel system, cooling system, and recalibration of the air and fuel mixture. These could, for example, consist of changes to valve timing for four-stroke engines, changing from air- to liquid-cooling, and the use of advanced carburetion techniques or electronic fuel injection in lieu of traditional carburetion systems. Other approaches could include the use of secondary air injected into the exhaust, an oxidation or three-way catalyst, or a combination of secondary air and a catalyst. The engine technology that may have the most potential for maximizing emission reductions from two-stroke engines is the use of direct fuel injection. Direct fuel injection is able to reduce or even eliminate scavenging losses by pumping only air through the engine and then injecting fuel into the combustion chamber after the intake and exhaust ports have closed. The use of oxidation catalysts in conjunction with direct injection could potentially reduce emissions even further. Finally, conversion of two-stroke engine technology to four-stroke engine technology would significantly reduce HC emissions. None of these technologies should have any negative noise, safety, or energy impacts. Fuel injection can improve the combustion process which can result in lower engine noise. The vast majority of four- stroke engines used in off-highway motorcycles and ATVs are considerably quieter than their two-stroke counterparts. Fuel injection has no impact on safety and four-stroke engines often have a more ``forgiving'' power band which means the typical operator may find the performance of the machine to be more reasonable and safe. The use of fuel injection, the enleanment of the air and fuel mixture and the use of four-stroke technology all can result in significant reductions in fuel consumption. c. What technologies are most likely to be used to meet the proposed standards? 2006 Standards. Four-Stroke Engines. We believe off-highway motorcycles and ATVs utilizing four-stroke engines will need only to make some minor calibration changes and improvements to the carburetor to meet our proposed emission standards for the 2006 model year. The calibration changes will most likely consist of reducing the amount of fuel in the air/fuel mixture. This is commonly referred to as enleaning the air/fuel ratio. Although four-stroke engines produce considerably lower levels of HC than two-stroke engines, the four-stroke engines used in off-highway motorcycles and ATVs all tend to be calibrated to operate with a rich air/fuel ratio for performance and durability benefits. This rich operation results in high levels of CO, since CO is formed in the engine when there is a lack of oxygen to complete combustion. We believe that many of these engines are calibrated to operate richer than needed, because they have either never had to consider emissions when optimizing air/fuel ratio or those that are certified to the California standards can operate richer because the California ATV CO standards are fairly lenient. Thus, we do not believe the standards will significantly reduce the performance or durability of these engines. Carburetion improvements could include increased carburetor tolerances, which would ensure more precise flow of fuel and air resulting in better fuel atomization (i.e., smaller fuel droplets), better combustion and less emissions. Since our proposed emission standards are for HC+NOX, as well as for CO, manufacturers will have to use an emission-control strategy or technology that doesn't cause NOX emissions to increase disproportionately. However, since all of these vehicles operate with rich air/fuel ratios, as discussed above, NOX levels from these engines are generally low and strategies designed to focus on HC reduction should allow manufacturers to meet our proposed standards without significantly increasing NOX levels. Two-Stroke Engines. Off-highway motorcycles and ATVs using two- stroke engines will present a greater challenge for compliance with the proposed standards. We believe it is possible for a two-stroke engine equipped with direct injection and an oxidation catalyst to meet our proposed standards. However, there are several issues associated with direct injection, such as system durability and the need for high electrical system output, that need to be resolved before it can be successfully integrated into off-highway motorcycle and ATV applications by the 2006 model year. For example, there is concern over how durable a direct injection system would be when exposed to harsh environmental conditions such as water, mud, rocks and sand, to name a few. The typical electrical system on a two-stroke off-highway motorcycle and ATV uses a magneto system which produces between 250 and 300 watts of electrical power. A typical direct injection system needs up to 1,000 watts of electrical power, meaning a traditional low-cost magneto system would be insufficient and possibly have to be replaced with an expensive and cumbersome alternator, similar to what is used on automobiles. For these reasons, and because of the potential complexities and cost of a direct injection system, we anticipate that most manufacturers would chose to convert models using two-stroke engines to four-stroke engines. Most manufacturers have experience with four-stroke engine technology and currently have several models powered by four-stroke engines. This is especially true in the ATV market where four-stroke engines account for 80 percent of sales. Because four- stroke engines have been so prevalent over the last 10 years in the off-highway motorcycle and ATV industry, manufacturers have developed a high level of confidence in four-stroke technology and its application. In addition to converting to four-stroke technology, manufacturers will also most likely have to make some minor calibration and carburetion improvements to meet the proposed 2006 emission standards. 2009 Standards. As discussed above, the proposed 2009 standards are proposed to apply only to ATVs. To meet these standards, we believe manufacturers will need to use four-stroke engines with further advancements in carburetor calibrations and improved tolerances or possibly [[Page 51163]] even switch to electronic fuel injection for some models. There is currently one manufacturer who uses electronic fuel injection in their off-highway motorcycles and ATVs. The technologies most likely to be used to meet these standards are secondary air and/or an oxidation catalytic converter. Secondary air has been used by passenger cars and highway motorcycles for many years as a means to help control HC and CO. The hot exhaust gases coming from the combustion chamber contain significant levels of unburned HC and CO. If sufficient oxygen is present, these gases will continue to react in the exhaust system, reducing the amount of pollution emitted into the atmosphere. To assure that sufficient oxygen is present in the exhaust, air is injected into the exhaust system. For off-highway motorcycles and ATVs, the additional air can be injected into the exhaust manifold using a series of check valves which use the normal pressure pulsations in the exhaust manifold to draw air from outside. We have tested several four-stroke ATVs with secondary air injected into the exhaust manifold and found that the HC and CO emission levels were at or below our proposed 2009 standards (further details of our secondary air testing are described in the Draft Regulatory Support Document). Thus, we believe secondary air injection alone could be a viable technology used by ATV manufacturers to meet our proposed 2010 standards. We also tested several ATVs with oxidation catalysts. We evaluated several different catalyst configurations with varying size, loading, cell density, and washcoat. We also examined different catalyst locations in the exhaust system. We found that a relatively small oxidation catalyst located in the exhaust system produced emission levels below our proposed emission standards. Therefore, we also believe that the use of an oxidation catalyst could be another viable technology available to ATV manufacturers to meet our proposed 2009 emission standards. 2. Snowmobiles a. What are the baseline technologies and emission levels? As discussed earlier, snowmobiles are equipped with relatively small high- performance two-stroke two and three cylinder engines that are either air- or liquid-cooled. Since these vehicles are currently unregulated, the main emphasis of engine design is on performance, durability, and cost and thus they have no emission controls. The fuel system used on these engines are almost exclusively carburetors, although some have electronic fuel injection. Two-stroke engines lubricate the piston and crankshaft by mixing oil with the air and fuel mixture. This is accomplished by most contemporary 2-stroke engines with a pump that sends two-cycle oil from a separate oil reserve to the carburetor where it is mixed with the air and fuel mixture. Some less expensive two- stroke engines require that the oil be mixed with the gasoline in the fuel tank. Snowmobiles currently operate with a ``rich'' air and fuel mixture. That is, they operate with excess fuel, which enhances performance and allows engine cooling which promotes longer lasting engine life. However, rich operation results in high levels of HC, CO, and PM emissions. Also, two-stroke engines tend to have high scavenging losses, where up to a third of the unburned air and fuel mixture goes out of the exhaust resulting in high levels of raw HC. Current average snowmobile emission rates are 397 g/kW-hr (296 g/hp-hr) CO and 150 g/ kW-hr (111 g/hp-hr) HC. b. What technology approaches are available to control emissions? We believe the proposed standards would be technologically feasible. A variety of technologies are currently available or in stages of development to be available for use on 2-stroke snowmobiles. These include improvements to carburetion (improved fuel control and atomization, as well as improved production tolerances), enleanment strategies for both carbureted and fuel injected engines, and semi- direct and direct fuel injection. In addition to these 2-stroke technologies, converting to 4-stroke engines is feasible for some snowmobile types. Each of these is discussed in the following paragraphs. There are several things that can be done to improve carburetion in snowmobile engines. First, strategies to improve fuel atomization would promote more complete combustion of the fuel/air mixture. Additionally, production tolerances could be improved for more consistent fuel metering. Both of these things would allow for more accurate control of the air/fuel ratio. In conjunction with these improvements in carburetion, the air/fuel ration could be leaned out some. Snowmobile engines are currently calibrated with rich air/fuel ratios for durability reasons. Leaner calibrations would serve to reduce CO and HC emissions. Such calibration changes could reduce snowmobile engine durability. However, there are many engine improvements that could be made to regain lost durability that occurs with leaner calibration. These include changes to the cylinder head, pistons, ports and pipes to reduce knock. In addition critical engine components could be made more robust to improve durability. The same calibration changes to the air/fuel ratio just discussed for carbureted engines could also be employed, possibly with more accuracy, with the use of fuel injection. At least one major snowmobile manufacturer currently employs electronic fuel injection on several of its snowmobile models. In addition to rich air/fuel ratios, one of the main reasons that two-stroke engines have such high HC emission levels is that they release a substantial amount of unburned fuel into the atmosphere as a result from scavenging losses, as described above. One way to reduce or eliminate such losses is to inject the fuel into the cylinder after the exhaust port has closed. This can be done by injecting the fuel into the cylinder through the transfer port (semi-direct injection) or directly into the cylinder (direct injection). Both of these approaches are currently being used successfully in two-stroke personal watercraft engines. We believe these technologies hold promise for application to snowmobiles. Manufacturers must address a variety of technical design issues for adapting the technology to snowmobile operation, such as operating in colder ambient temperatures and at variable altitude. The several years of lead time give manufacturers time to incorporate these development efforts into their overall research plan as they apply these technologies to snowmobiles. In addition to the two-stroke technologies just discussed, the use of four-stroke engines in snowmobiles is another feasible approach to reduce emissions. Since they do not scavenge the exhaust gases with the incoming air/fuel mixture, four-stroke engines have inherently lower HC emissions compared to two-strokes. Four-stroke engines have a lower power to weight ratio than two-stroke engines and are heavier. Thus, they are more appropriately used in snowmobile models where extreme power and acc