The EPA proposed new standards regulating hydrocarbon and carbon monoxide emissions from snowmobiles and other non-road engines. The proposed standards would impose significant costs on the previously unregulated snowmobile industry.

NERA was retained by the International Snowmobile Manufacturers Association to analyze three potential sets of overall emission standards for snowmobile engines to be implemented using an ABT program. NERA worked closely with several snowmobile manufacturers to develop detailed data on the costs and emissions of various emission control technologies. The final report evaluated the cost-effectiveness of the three emission standards, estimated their long-term effect on the snowmobile industry, and quantified the monetary value of the emission benefits resulting from the standards.

The report was submitted to EPA and OMB officials. The analysis played an integral role in the final decision reached by EPA regarding both the stringency of the standards and the flexibility mechanisms included in the final regulation.