INFORMATIONAL UPDATE ON THE RED STICKER OFF-HIGHWAY RECREATIONAL VEHICLE (OHV) PROGRAM

JUNE 22, 2017

OHV Regulatory History

CALIFORNIA AIR RESOURCES BOARD2

1994: CARB adopts 1st

exhaust standards

1998: CARB creates Red Sticker program

2013: CARB adopts evaporative standards;

Board directs staff to conduct Red Sticker assessment

2006: U.S. EPA adopts exhaust and evaporative

emissions standards defines competition

OFF-HIGHWAY MOTORCYCLE (OHMC)

ALL-TERRAIN VEHICLE (ATV)

Current Control of California OHV Emissions

CALIFORNIA AIR RESOURCES BOARD3

Running Loss (Operation) Hot Soak (Immediately After Operation) Diurnal (Storage)

Exhaust (Operation)

Green Sticker meet 1994 exhaust standards

Red Sticker no engine controls; subject to riding restrictions only

Green Sticker meet 2013 evaporative standardsRed Sticker excluded from all evaporative controls

Red Sticker OHV Program Characteristics

CALIFORNIA AIR RESOURCES BOARD4

All-terrain vehicles (ATV) and off-highway motorcycles (OHMC) certified by CARB as emissions non-compliant No emissions data provided No warranty requirements Receive red registration sticker

Nearly 190,000 of California’s estimated 1 million OHVs are Red Sticker

Subject to seasonal usage restrictions on public lands in ozone non-attainment areas Enforced by public land management agencies Excludes private land

Red Sticker Riding Calendar Summertime Closures

Legend

Intent of Red Sticker Program

CALIFORNIA AIR RESOURCES BOARD5

Delay 1998 exhaust standards to ensure OHV availability

Limit summertime exhaust emissions from OHVs in ozone

non-attainment areas

Allows riders to practice for “competitive” events on public land

ORIGINAL PURPOSE OF PROGRAM

Red Sticker Assessment

Ease transition to cleaner engine technology

Red Sticker Assessment and Next Steps

CALIFORNIA AIR RESOURCES BOARD6

OWNER SURVEY

EMISSIONS TESTING

POPULATION EVALUATION

REGULATORY PROPOSAL

INVENTORY DEVELOPMENT

OngoingSTAKEHOLDER OUTREACH

Assessment (2014 – 2017)

Next Steps(2017 – 2018)

FINAL PUBLIC WORKSHOP

Stakeholder Outreach To Date

CALIFORNIA AIR RESOURCES BOARD7

Hosted three public workshops

Held two stakeholder technical working group meetings

Presented updates at five public State Park Commission Hearings

Attended three annual Hangtown MX motocross races

Population Evaluation

CALIFORNIA AIR RESOURCES BOARD8

Developed vehicle identification number (VIN) decoder for OHVs Allows analysis of Department of Motor Vehicle (DMV)

registration records Improves population estimates and understanding of vehicle

attributes Useful tool for multiple state agencies

Evaluated manufacturer certification data Analyzed trends in Green and Red Sticker model certifications

over time

CALIFORNIA AIR RESOURCES BOARD9

Conducted exhaust and evaporative emissions testing 2- and 4-stroke OHMCs of common displacement ranges 20 new and in-use OHMCs selected based on DMV data

Motorcycle / ATV Dynamometer (Exhaust) Sealed Housing for Evaporative Determination (SHED)

Emissions Testing

Owner Survey

CALIFORNIA AIR RESOURCES BOARD10

Conducted statewide OHMC owner survey

Online survey hosted by UC Davis

Nearly 3,000 respondents

State Parks provided 2,274 day use passes as incentive

Questions developed with extensive input from industry

I

ATV Model Certifications Since 1998

CALIFORNIA AIR RESOURCES BOARD11

0

20

40

60

80

100

120

140

160

180

Num

ber o

f ATV

Mod

els C

ertif

ied

1

Model Year

Red Sticker

Green Sticker

1 # of models certified by top 5 ATV manufacturers

U.S. EPA adopts stringent ATV competition exemption criteria

0

10

20

30

40

50

60

70

Num

ber o

f OHM

C M

odel

s Cer

tifie

d 1

Model Year

Red Sticker Green Sticker

OHMC Model Certifications Since 1998

12

1 # of models certified by top 5 OHMC manufacturers

CALIFORNIA AIR RESOURCES BOARD

U.S. EPA adopts less stringent OHMC competition exemption criteria

0

10,000

20,000

30,000

40,000

1 2

Popu

latio

n

CALIFORNIA AIR RESOURCES BOARD13

1Source: 2015 DMV database

Green and Red Sticker Registration Type (MY 2012-2016)

99.6% of ATVs are now Green Sticker

Only 46.4% of OHMCs are Green Sticker

Green StickerRed Sticker

Engine Technology Then and Now

CALIFORNIA AIR RESOURCES BOARD14

1998: 60% of OHMCs and ATVs had 2-stroke engines1

2012-2016: Approximately 15% of OHMCs and <1% of ATVs had 2-stroke engines2

1 Source: 1994 OHV Initial Statement of Reasons2 Source: 2015 DMV Database

2-Stroke Engine 4-Stroke Engine

OHMC Exhaust Emissions Testing Results1

15

0.00

2.00

4.00

6.00

8.00

10.00

50ccCARB

250ccCARB (2)

450ccCARB

450ccEFI

150ccCARB (2)

250ccEFI (4)

450ccEFI (6)

85ccCARB

2-stroke

250ccCARB

2-stroke

300ccCARB

2-stroke

HC E

mis

sion

Rat

e (g

/km

)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

NO

x Em

issi

on R

ate

(g/k

m)

CA Green Sticker HC Standard:

1.2 g/km

HC

NOx

CALIFORNIA AIR RESOURCES BOARD

30.00

Currently no NOx standard for CA OHVs

Euro 5 Standard2

0.1 g/km

Euro 5 Standard2

0.06 g/km

1Source: Testing conducted by CARB staff at Haagen-Smit Laboratory (2014-2016) 2European on- and off-highway motorcycle standard

2-Stroke OHMC Exhaust Emissions

CALIFORNIA AIR RESOURCES BOARD16

Difficult to test 2-stroke OHMCs because they are high emitting

Comparison of 2-stroke OHMC test data:

1 Excludes 85 cc 2-stroke OHMC test result of 8 g/km2 Source: 2010 U.S. EPA Exhaust Emissions Factors for Nonroad Engine Modeling3 Source: Broad Emissions Testing Support for In-Use Vehicles and Engines 4 Source: Emissions Estimation Methodology for Off-Highway Recreation Vehicles

Source HC Exhaust Emissions

2016 CARB test results1 > 30 g/km

2010 U.S. EPA emissions factor2 33.5 g/km

2010 Southwest Research test results3 25.7g/km – 26.2g/km

2000 CARB emissions factor4

(RV2013 and OFFROAD2007) 21.3 g/km

Contamination of CARB emissions lab sample train

Comparative Exhaust Emission Rates

CALIFORNIA AIR RESOURCES BOARD17

HC emissions from operating one 2016 2-stroke1 OHMC for one mile are equivalent to driving approximately:

3,658 miles in a 2016 passenger car4

1 Source: CARB RV2013 emissions factor (34.2 g/mi HC) 2 Source: 2016 KTM 450XC-W Certification (0.64 g/mi HC)3 Source: 2016 Ducati XDiavel Certification (0.11 g/mi HC)4 Source :2014 CARB EMFAC light-duty passenger vehicle emissions (0.009 g/mi HC)

53 miles on a 2016 KTM 450 XC-W2

311 miles on a 2016 Ducati XDiavel3

Red Sticker OHMC Operation

CALIFORNIA AIR RESOURCES BOARD18

Red Sticker program developed to limit exhaust emissions during the summer

75% of Red Sticker owners registered in ozone non-attainment areas ride during the summer 54% operate on private land during the summer1

43% travel further to ride 25% operate on unenforced public land1

93% of Red Sticker operation on private land occurs in ozone non-attainment areas

1 Source: CARB 2016 OHMC Owner Survey

OHMC Riding Areas

CALIFORNIA AIR RESOURCES BOARD19

Private tracks and property are often located within ozone non-attainment areas

Provides year round riding opportunities but results in unanticipated air quality impacts

Recreational Use of Competition OHMCs

CALIFORNIA AIR RESOURCES BOARD20

Almost all Red Sticker OHMCs are U.S. EPA competition exempt

Outside California: To be used solely for competition purposes Cannot be used for recreation

In California: 90% of Red Sticker OHMCs are primarily used for recreation1

74% of Red Sticker owners never race1

Racing accounts for 6% of total Red Sticker hours operated1

Practice accounts for 7% of total Red Sticker hours operated1

Red Sticker program results in recreational use of U.S. EPA competition exempt OHVs

1 Source: CARB 2016 OHMC Owner Survey

Red Sticker OHMC Storage Emissions

21

Evaporative emissions not controlled by Red Sticker program

95% of OHMCs are stored where registered1

90% of OHMCs are registered in non-attainment areas2

Over 1/3 of OHMCs are registered in South Coast

1 Source: CARB 2016 OHMC Owner Survey2 Source: 2013 DMV Database

CALIFORNIA AIR RESOURCES BOARD

Red Sticker Assessment Findings

CALIFORNIA AIR RESOURCES BOARD22

ORIGINAL PURPOSE OF PROGRAM ASSESSMENT FINDINGS

Delay 1998 exhaust standards to ensure OHV availability

Ease transition to cleaner technology

Limit summertime exhaust emissions from OHVs in ozone

non-attainment areas

Over 3 times as many Green Sticker models available today

than in 1998

Technology has developed, but transition to Green Sticker has not

occurred as anticipated

Red Sticker OHVs are operated in ozone non-attainment areas

during the summer

Allow riders to practice for “competitive” events on public land

Red Sticker OHMCs are predominately competition vehicles used for recreation

Red Sticker Program no Longer Works as Intended

CALIFORNIA AIR RESOURCES BOARD23

Does not provide expected emissions benefits Year round Red Sticker OHV operation results in uncontrolled

exhaust emissions Serves as a loophole for manufacturers to avoid meeting new

Green Sticker evaporative standards

Inconsistent with federal competition exemption

Problematic for other State agencies Enforcement challenges Registration difficulties

Staff Recommendation: Three-Step Process

CALIFORNIA AIR RESOURCES BOARD24

Step I: Sunset Red Sticker Program Establish date to end the sale of Red Sticker OHVs Establish date to end riding restrictions

Step III: Adopt New Emissions Standards Transition to cleaner engine technologies Incentivize zero emission technologies

Step II: Clarify Racing Exemption Define competition Protect exemption for true racing purposes

Increasing Significance of OHV Emissions

CALIFORNIA AIR RESOURCES BOARD25

1 Source: CARB CEPAM - 2016 SIP Standard Emission Tool

0

10

20

30

40

50

60

70

80

90

100

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Reac

tive

Org

anic

Gas

es (t

ons p

er d

ay)

Year

Summertime Statewide ROG Emissions

Light-Duty Passenger Cars OHVs On-Road Motorcycles

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Off-road(1997)

On-road(2008)

Off-road(2006)

On-road(2010)

On/off-road(2016)

On/off-road(2020)

g/km

HC (g/km) NOx (g/km) HC+NOx (g/km)

3 3 4

Comparison of Global Motorcycle Exhaust Standards

CALIFORNIA AIR RESOURCES BOARD26

California1 U.S. & Canada1 Europe2

1 Federal Test Procedure2 World Motorcycle Test Cycle3 Applies to engines ≥ 280 cc4 Applies to vehicles with top speeds ≥81 mph

1.2 g/km HC

0.1 g/km HC0.06 g/km NOx

0.17 g/km HC0.09 g/km NOx

Opportunity for Holistic California Motorcycle Standards

CALIFORNIA AIR RESOURCES BOARD27

ON-ROAD DUAL SPORT OFF-ROAD

On-and off-road motorcycles are increasingly similar Meet identical emissions standards in Europe

Emerging Zero Emissions Technology

CALIFORNIA AIR RESOURCES BOARD28

On-Road Motorcycles OHVs

KTM Freeride E

Alta Redshift MX1

Polaris Ranger EVMahindra Electric Scooter1

Zero Dual Sport (DS)1

Harley Davidson Livewire

1 Manufactured in California

Next Steps

CALIFORNIA AIR RESOURCES BOARD29

Update emissions inventory

Work with stakeholders to develop regulatory solution

Return to Board with regulatory proposals: Early 2018: Sunset Red Sticker program (propose sunset dates) 2018: Clarify competition definition 2021: Adopt significantly lower emissions standards

On-road motorcycles (exhaust and evaporative) Off-highway recreational vehicles (exhaust)