State of California Environmental Protection Agency AIR RESOURCES BOARD EMISSION STANDARDS AND TEST PROCEDURES FOR NEW 2001 AND LATER MODEL YEAR SPARK-IGNITION MARINE ENGINES FINAL STATEMENT OF REASONS October 1999 State of California AIR RESOURCES BOARD Final Statement of Reasons for Rulemaking, Including Summary of Comments and Agency Response PUBLIC HEARING TO CONSIDER THE ADOPTION OF EMISSION STANDARDS AND TEST PROCEDURES FOR NEW 2001 AND LATER MODEL YEAR SPARK-IGNITION MARINE ENGINES Public Hearing Date: December 10, 1998 Agenda Item No.: 98-14-2 I. INTRODUCTION AND BACKGROUND ........................................................................................ 3 II. SUMMARY OF PUBLIC COMMENTS AND AGENCY RESPONSES – COMMENTS PRIOR TO OR AT THE HEARING .................................................................................................................. 7 A. EMISSION STANDARDS ................................................................................................................... 7 1. Adequacy of National Standards............................................................................................. 7 2. Lead Time ................................................................................................................................. 8 3. Technological Feasibility ........................................................................................................ 13 a. Technological Feasibility of California-specific Standards ..............................................................13 b. Technological Feasibility of Tier 1 and Tier 2 Standards ................................................................15 c. Technological Feasibility of Tier 3 Standards...................................................................................18 4. Technology Review ................................................................................................................ 26 B. HARMONIZATION........................................................................................................................... 27 C. COST AND COST-EFFECTIVENESS................................................................................................ 30 1. Cost Methodology................................................................................................................... 30 2. Cost of Tier 1 and Tier 2 Standards...................................................................................... 32 3. Cost of Tier 3 Standards ........................................................................................................ 35 4. Price Elasticity......................................................................................................................... 37 D. ECONOMIC IMPACTS..................................................................................................................... 40 1. Effect on Manufacturers......................................................................................................... 40 2. Effect on Businesses.............................................................................................................. 44 3. Effect on Consumers.............................................................................................................. 50 E. ENVIRONMENTAL LABELING .......................................................................................................... 52 1. Need for Labels....................................................................................................................... 52 2. Impact of Environmental Labels ............................................................................................ 54 3. Need for Multi-Tiered Labeling Program............................................................................... 58 4. Specific Label Requirements ................................................................................................. 61 F. ENVIRONMENTAL IMPACT.............................................................................................................. 62 1. Effect of ARB Standards........................................................................................................ 62 2. Environmental Impact from Boats ......................................................................................... 68 G. CONSUMER IMPACT...................................................................................................................... 70 1. Boat Owners ........................................................................................................................... 70 2. Boat Bans................................................................................................................................ 72 H. ALTERNATE APPROACHES............................................................................................................ 74 1. U.S. EPA Program.................................................................................................................. 74 2 2. NMMA’s Proposal................................................................................................................... 75 3. BBAC’s Proposal .................................................................................................................... 78 4. “Best Management” Approaches........................................................................................... 80 5. Bluewater Network’s Proposal............................................................................................... 81 6. Other Approaches................................................................................................................... 82 I. TEST PROCEDURES AND REGULATIONS ......................................................................................... 85 1. Clarify Regulatory Language ................................................................................................. 85 2. Expand the Scope .................................................................................................................. 94 3. Warranty Issues...................................................................................................................... 95 4. Averaging ................................................................................................................................ 97 J. LEGAL ISSUES ............................................................................................................................... 99 1. Authority .................................................................................................................................. 99 2. Procedure...............................................................................................................................101 K. MISCELLANEOUS .........................................................................................................................103 1. methyl tertiary-butyl ether (MTBE).......................................................................................104 2. Other.......................................................................................................................................105 L. SUPPORT.....................................................................................................................................109 M. LATE SUBMITTALS.......................................................................................................................110 III. MODIFICATIONS TO THE ORIGINAL PROPOSAL – FIRST NOTICE OF MODIFIED TEXT .............................................................................................................................................................110 A. DEFINITIONS ................................................................................................................................111 B. EMISSION STANDARDS ................................................................................................................112 C. LABELS AND HANG TAGS.............................................................................................................112 D. IN-USE COMPLIANCE AND RECALL...............................................................................................117 E. WARRANTY .................................................................................................................................117 F. PRODUCTION LINE TESTING.........................................................................................................117 G. OTHER TEST PROCEDURE CORRECTIONS ..................................................................................119 H. OTHER REGULATORY PROVISIONS ..............................................................................................119 I. COMMENTS OUTSIDE THE SCOPE..................................................................................................120 J. LATE SUBMITTALS ........................................................................................................................123 IV. MODIFICATIONS TO THE ORIGINAL PROPOSAL – SECOND NOTICE OF MODIFIED TEXT ...................................................................................................................................................124 A. ENVIRONMENTAL LABEL/CONSUMER NOTIFICATION REQUIREMENTS ...........................................124 B. IN-USE COMPLIANCE TESTING AND RECALL REQUIREMENTS.......................................................124