State ofCalifornia AIR RESOURCES BOARD Resolution 98-66 December 10, 1998 Agenda Item No.: 98-14-5 WHEREAS, sections 39600 and 39601 ofthe Health and Safety Code authorize the Air Resources Board (the Board or ARB) to adopt standards, rules andregulations and to do such acts as maybe necessary forthe proper execution ofthe powers and duties granted to and imposedupon the Board by law; WHEREAS, section 43013 ofthe Health and Safety Code authorizes the Board to adopt standards andregulations to control emissions from off-road or nonvehicle engine categories; WHEREAS, section 43018 ofthe Health and Safety Code directs the Board to endeavorto achieve the maximumdegree ofemissionreduction possible from vehicular and other mobile sources in order to accomplish the attainment ofthe state ambient air quality standards at the earliestpracticable date; WHEREAS, inJanuary 1994 the Board adopted title 13, California Code ofRegulations, Division 3, Chapter 9, Article 3, “Off-Highway Recreational Vehicles and Engines” and its incorporated documents, which established exhaust emission standards, test procedures, and enforcement provisions for off-highway recreational vehicles and engines; WHEREAS, the off-highway recreational vehicles and engines subjectto the above regulations included off-road motorcycles, all-terrain vehicles (ATVs), golfcarts, specialty vehicle engines less than 25 horsepower, and go-karts and specialty vehicle engines 25 horsepower and greater; WHEREAS, withregard to off-road motorcycles and ATVs, the emissions standards ofthe above regulations apply to off-road motorcycles and ATVs with engines greater than 90 cubic centimeters produced on or afterJanuary 1, 1997, and to off-road motorcycles and ATVs with engines 90 cubic centimeters or less produced on or afterJanuary 1, 1999; WHEREAS, the State Implementation Plan (SIP) adopted bythe Board inNovember 1994, which establishes the state strategy for attaining the national ambient air quality standards for ozone in all areas ofthe state by 2010 as requiredby federal law, includes the emissions reductions associated with the current standards for off-highway recreational vehicles; WHEREAS, inMarch 1998 the Board adopted amendments to title 13, California Code of Regulations, Division 3, Chapter 9, Article 1, “Small Off-Road Engines” and its incorporated documents, which designate emission standards and test procedures for small off-road engines;Resolution 98-66

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WHEREAS, as aresult ofthe March 1998 amendments to title 13, California Code of Regulations, Division 3, Chapter 9, Article 1, “Small Off-Road Engines,” the engines regulated underthis Article now include specialty vehicle engines less than 25 horsepower, which were previously regulated undertitle 13, California Code ofRegulations, Division 3, Chapter 9, Article 3, “Off-Highway Recreational Vehicles and Engines”; WHEREAS, in October 1998 the Board adopted title 13, California Code ofRegulations, Division 3, Chapter 9, Article 4.5, “New 2001 and Later Off-Road Large Spark-Ignition Engines (25 and Greater Horsepower)” and its incorporated documents, which established exhaust emission standards and test procedures for off-road large spark-ignition (LSI) engines 25 horsepower and greater; WHEREAS, the engines regulated undertitle 13, California Code ofRegulations, Division 3, Chapter 9, Article 4.5, “New 2001 and Later Off-Road Large Spark-Ignition Engines (25 and Greater Horsepower)” include go-kart and specialty vehicle engines 25 horsepower and greater, which were previously regulated undertitle 13, California Code ofRegulations, Division 3, Chapter 9, Article 3, “Off-Highway Recreational Vehicles and Engines”; WHEREAS, there are currently no equivalentfederal regulations for off-highway recreational vehicles; WHEREAS, for off-highway recreational vehicles to be ridden in California Off-Highway Vehicle areas, they mustreceive a green stickerupon Department ofMotor Vehicle (DMV) registration; WHEREAS, to receive a green sticker fromDMV, off-highway recreational vehicles must comply with the off-highway recreational vehicleregulations; WHEREAS, when the Board adopted the off-highway recreational vehicleregulations inJanuary 1994, the ARB believedthat a full line ofcomplying off-road motorcycles and ATVs couldbe produced and available to consumers in 1997, and manufacturers supported the implementation of the regulations and anticipated the introduction ofnew, cleaner off-road motorcycles; WHEREAS, afterthe standards for off-highway recreational vehicles were adopted in 1994, but before the January 1, 1997 implementation date, off-highway recreational vehicle user groups and dealers expressed concerns that an adequate variety ofcomplying off-highway recreational vehicles would not be available; WHEREAS, although manufacturers have produced an adequate variety ofcomplying ATV models, and Honda has produced several models ofcomplying four-stroke off-road motorcycles, there is still not an adequate variety ofcomplying off-road motorcycles;Resolution 98-66

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WHEREAS, to address the concerns ofthe user groups and dealers, the Recreational Off-Highway Vehicle Working Committee was formed inApril 1997, which included representatives fromARB, Department ofMotor Vehicles, Department ofParks and Recreation, Bureau ofLand Management, United States Forest Service, American Motorcyclist Association, American Trials Association, CaliforniaMotorcycle Dealers Association, California Off-Road Vehicle Association, Motorcycle Industry Council, K. H. WolfConsulting (representing various aftermarket and small-volume manufacturers), American Honda Motor Company, American Suzuki Motor Corporation, Kawasaki Motors Corporation, and YamahaMotor Corporation; WHEREAS, during the course ofthe Recreational Off-Highway Vehicle Working Committee meetings, itbecame apparent that the benefits ofthe adopted regulations were being impeded because the shiftto complying off-road motorcycles was not occurring, owners ofnew non-complying motorcycles were obtaining registration and use permits, and competitive riders were not provided with adequate practice opportunities, and that aregulatory solution was necessary; WHEREAS, staffproposes to create riding seasons, designed to coincide with times andplaces favorable to good air quality, during which non-emission-compliant off-highway recreational vehicles couldbe ridden in Off-Highway Vehicle areas, thus addressing the needs ofusers to ride the variety ofoff-road motorcycles that are available; WHEREAS, inthe short term, until manufacturers produce a full line ofemission-compliant off-road motorcycles, the creation ofriding seasons as described above should maintain availability ofnon-emission-compliant off-road motorcycles, and thus address dealers’ concerns forhaving an adequate availability ofthe off-road motorcycle models currently available; WHEREAS, staffproposes to allow for certification ofnon-emission-compliant off-highway recreational vehicles, and that such certified vehicles wouldbe eligible to receive red stickers upon DMV registration, and that vehicles withred stickers couldbe ridden in Off-Highway Vehicle areas only during the designatedriding seasons; WHEREAS, staffproposes that certified emission-compliant off-highway recreational vehicles continue to be eligible to receive green stickers upon DMV registration, which would allow them to continue to be ridden year-round in all Off-Highway Vehicle areas; WHEREAS, some off-highway recreational vehicle manufacturers that currently do not have and cannot obtain federal Vehicle Identification Numbers issued fromthe National Highway Traffic and Safety Administration, can obtain alternative Vehicle Identification Numbers fromthe Society ofAutomotive Engineers, which satisfy California’s requirements; WHEREAS, maintaining the current emission standards for off-highway recreational vehicles, while allowing non-emission-compliant off-highway recreational vehicles to be ridden during theResolution 98-66

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riding seasons described above, and listed inTable I ofproposed section 2415, title 13, California Code ofRegulations, would stillprovide incentive to manufacturers to produce emission-compliant off-road motorcycles, because users would still want off-road motorcycles that couldbe ridden year-round in all Off-Highway Vehicle areas; WHEREAS, the Board has considered how the creation ofriding seasons as described above would affecthydrocarbon (HC) and oxides ofnitrogen (NOx) emissions in ozone attainment areas and in ozone nonattainment areas; WHEREAS, the Board has considered how the creation ofriding seasons as described above would affect exceedances ofthe California ambient air quality standards forparticulate matter (PM); WHEREAS, the Board has considered the impact ofhaving fewer emission-compliant off-road motorcycles inthe short term than would existunderthe currentregulations on short term HC and NOx emissions, relative to the currentregulations, in ozone nonattainment areas; WHEREAS, the CaliforniaEnvironmental Quality Act and Board regulations require that no project that mayhave significant adverse environmental impacts be adopted as originally proposed iffeasible alternatives or mitigation measures are available to reduce or eliminate such impacts; WHEREAS, the Governor’s Executive OrderW144-97 requires thatregulations proposed by state agencies contain aprovision for Sunset Review; WHEREAS, the Board has considered the effects ofthe proposed standards on the economy of the state; WHEREAS, section 209(e) ofthe federal Clean AirAct, as amended in 1990, requires that the ARB receive authorization fromthe U.S. EPA Administratorto adopt and enforce standards relating to the control ofemissions fromnonroad engines or vehicles; WHEREAS, apublic hearing and other administrative proceedings have been held in accordance with the provisions ofChapter 3.5 (commencing with section 11340), Part 1, Division 3, Title 2 ofthe Government Code; WHEREAS, the Board finds that: Despite advances inreducing emissions frommotor vehicles, California still has the most severe airpollution problems inthe United States;Resolution 98-66

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To meetFederal and California Clean AirAct emissions reductions requirements, ARB must continue to seekproportional and incremental reductions from all sources under its authority, including off-highway recreational vehicles; Adopting the proposed riding seasons for Off-Highway Vehicle riding areas will allow for the recreational use ofoff-road motorcycle models, whether emission-compliant or non-emission-compliant, thus responding to the desire ofusers to ride the variety of off-road motorcycles that are available; To ensure that the proper sticker is applied to off-highway vehicles, the regulations must require alternative identification for vehicles that have not received a federal Vehicle Identification Number; Adopting the proposed riding seasons for Off-Highway Vehicle riding areas willresult in continued availability, until manufacturers produce a full line ofemission-compliant products, for non-emission-compliant off-road motorcycles, thus responding to the needs ofdealers to sell an adequate variety ofthe off-road motorcycles currently available; Maintaining the current emission standards for off-highway recreational vehicles, while adopting the riding seasons for non-emission-compliant off-highway recreational vehicles, would stillprovide incentive to manufacturers to produce emission-compliant off-road motorcycles forunlimiteduse; Ifthere is a change in designation from ozone nonattainmentto ozone attainment for an area inwhich Off-Highway Vehicle areas reside, or ifthere are changes inthe geographic domain ofOff-Highway Vehicle areas, the Executive Officer should have the authority to revise the riding seasons, without consulting the Board, provided that such revisions would not result in or contribute to exceedances ofthe California one-hour ambient air quality standard for ozone; The economic and cost impacts ofthe amendments have been analyzed as requiredby Californialaw, and the conclusions and supporting documentation for this analysis are set forth inthe Initial Statement ofReasons; The proposed amendments to the off-highway recreational vehicleregulations would cause an increase inHC and NOx emissions in some ozone attainment areas, and in some ozone nonattainment areas during certain months without an ozone problem; The creation ofriding seasons as described above should not cause or contribute to exceedances ofthe California ambient air quality standards forparticulate matter (PM), although it would cause an increase inPM intimes andplaces that non-emissioncompliantvehicles wouldbe ridden;Resolution 98-66

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The proposed amendments to the off-highway recreational vehicleregulations would cause a short term HC and NOx emissions decrease, relative to the currentregulations, in ozone nonattainment areas during months when the ozone standard maybe exceeded; There are no other feasible alternatives or mitigation measures that would reduce these potential adverse environmental impacts while at the same time providing the benefits described above; The considerations identified above override any adverse environmental impacts that may occur as aresult ofachieving fewer emissions reductions statewide from off-highway recreational vehicles inthe nearterm; and The proposed regulations contain an adequate Sunset Review provision. NOW, THEREFORE, BE IT RESOLVED that the Board hereby approves amendments to Title 13, California Code ofRegulations, Division 3, Chapter 9, Article 3, “Off-Highway Recreational Vehicles and Engines,” sections 2411-2414, and the incorporated “California ExhaustEmissions Standards and Test Procedures for 1997 and Later Off-Highway Recreational Vehicles and Engines”; and approves Title 13, California Code ofRegulations, Division 3, Chapter 9, Article 3, “Off-Highway Recreational Vehicles and Engines,” sections 2415, “California Off-Highway Vehicle Areas and Riding Seasons for Off-Highway Recreational Vehicles With Use Restrictions,” all as set forth inAttachment Ahereto, with the modifications described inAttachment B hereto. BE IT FURTHER RESOLVED that the Board directs the Executive Officerto consult with District 38 ofthe American Motorcyclists Association regarding the year-round prohibition on riding intwo OHV areas inthat District, as set forth inAttachment Ahereto, and modify Attachment A as appropriate and make it available forpublic comment as providedbelow. BE IT FURTHER RESOLVED that the Board directs the Executive Officerto adopt the above amendments as set forth inAttachment Ahereto, with the modifications set forth in Attachment B hereto and such other conforming modifications and technical amendments as may be appropriate, after making the modifiedregulatory language and additional supporting documents and information available forpublic comment for aperiod of 15 days, provided that the Executive Officer shall consider such written comments regarding the modification and additional supporting documents and information as maybe submitted during this period, shall make modifications as maybe appropriate inlight ofthe comments received, and shallpresent the amendments to the Board for further consideration ifhe determines that this is warranted. BE IT FURTHER RESOLVED that the Board hereby grants the Executive Officerthe authority to revise, without consultation with the Board, the Off-Highway Vehicle areariding seasons listed inTable 1 ofsection 2415(a), Title 13, California Code ofRegulations, Division 3,Resolution 98-66

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Chapter 9, Article 3, “Off-Highway Recreational Vehicles and Engines,” underthe conditions specified in section 2415(b) ofthis Article, provided that the Executive Officer shallpublish inthe CaliforniaRegulatory Notice Register and notify potentially affected Off-Highway Vehicle Area Managing Entities regarding revisions to this Table at least 30 days before the revisions take effect. BE IT FURTHER RESOLVED that the Board hereby determines that the regulations adopted herein willnot cause the California emissions standards, inthe aggregate, to be less protective of public health and welfare than applicable federal standards. BE IT FURTHER RESOLVED that the Board hereby finds that separate California emission standards and test procedures are necessary to meet compelling and extraordinary conditions. BE IT FURTHER RESOLVED that the Board finds that the California emission standards and test procedures as adopted herein willnot cause the Californiarequirements to be inconsistent with the Federal Clean AirAct, as amended, andraise no new issues affecting previous waiver determinations ofthe Administrator ofthe Environmental Protection Agency pursuant to section 209 ofthe Clean AirAct. BE IT FURTHER RESOLVED that the Executive Officer shall, upon adoption, forward the regulations to the Environmental Protection Agency with arequest for confirmation that the regulations are within the scope ofan existing waiver offederal preemption pursuant to section 209 ofthe Clean AirAct, as appropriate. I hereby certify that the above is a true and correct copy ofResolution 98-66, as adopted bythe AirResources Board.

____________________________________ Pat Hutchens, Clerk ofthe BoardResolution 98-66 December 10, 1998 Identification ofAttachments to the Resolution Attachment A: Proposed Amendments to title 13, California Code ofRegulations, sections 2410-2414, andproposed new section 2415, as set forth inAttachment Ato the StaffReport: Public Hearing to ConsiderAmendments to the CaliforniaRegulations forNew 1997 and Later Off-Highway Recreational Vehicles and Engines (released October 23, 1998); and the incorporated “CaliforniaExhaustEmissions Standards and Test Procedures for 1997 and Later Off-Highway Recreational Vehicles and Engines,” as set forth inAttachment B to the Staff Report: Public Hearing to ConsiderAmendments to the CaliforniaRegulations forNew 1997 and Later Off-Highway Recreational Vehicles and Engines (released October 23, 1998). Attachment B: Staff’s Suggested Modifications to the Original Proposal (distributed at the Board hearing on December 10, 1998).