There is bad news and good news on this issue.  The bad news is that
SB1726 is already dead, the victim of dirty politics.  At its first
committee hearing, Senate Transportation, Quentin Kopp Chair, the bill
received 7 aye votes, and only 5 were needed for passage.  rather than
sending the bill on, Chair Kopp accepted a motion for reconsideration
from Senator Hayden.  Reconsideration is normally used when a bill fails
to muster enough votes, and the sponsor asks to bring the bill back at
the next committee hearing, giving him/her time to gather more votes or
amend the bill to get more votes.  I had not seen it used on a bill that
passed on the first roll call.  When it came back the next week, Kopp
held the bill until near the end of the session and most of the aye votes
were not present.  When he called for a vote, there were only 2 ayes, and
rather than leave the roll open until the end of the hearing so that
other member can add on their votes, Kopp closed the roll immediately,
even over the protests of one legislator who walked in during the
closure.  Kopp slammed the gavel and declared the bill dead.

CARB was strongly opposing the bill, including lobbying by Chairman
Dunlap himself.  The bill not only repealed the off-road emissions
standard, it required any future motorcycle regulations to be approved by
the legislature, severely diluting CARB's powers.

The good news is that CARB now says they really want to do something
about the situation.  We told CARB that there would be serious economic
impact on the dealer, the California small businessman.  We have now
documented a 41% decline in the sales of all non-street legal motorcycles
from Sept 97 through March 98 versus the prior year same period.  We told
CARB the industry would walk away from the market.  There are currently
seven motorcycles green sticker registerable in California,  5 Hondas-XR
100, 200, 250, 400, & 600, most of which are more than 10 years old, one
seven year old Suzuki DR-350, and one 4 year old Kawasaki KLX300.  Last
year there were in excess of 90 models from 22 manufacturers
registerable.  The only new high-tech motorcycle, the Yamaha YZ400F four
stroke won't meet the standard, along with every other motorcycle Yamaha
makes.  Looks like the industry walked away to me.  The Big Four are all
highly diversified multi-national corporations that won't be hurt by the
loss of the California Market, but the California businessman is taking
it in the shorts because of CARB.  Many of those same dealers also sell
personal watercraft, a market that has been killed by the MTBE business,
with the Tahoe Ban, Bans on several rerservoirs, and a highly publicized
bill that would have banned the use of these watercraft on all reservoirs
and most lakes in the state.  A very good market has collapsed, with many
dealers holding 100 or more machines in inventory that will kill them
unless something is done. To add insult to grievous injury, CARB wants to
develop a watercraft standard that would be much tougher than the already
negotiated federal standard and implement it faster.  To top this off,
now CARB is proposing that street bikes meet automotive emission
standards, something that no bike made today will meet, although BMW and
Honda say they can.  Fuel injection, electronic engine controls, and
catalysts would be required to meet this standard, and some motors, such
as highly popular domestic air cooled v-twins, will never meet the
standard even with the add ons,  CARB is proposing to fast track this
standard and adopt it by this October.  The industry is doomed if CARB
proceeds.  The cost of what few models that would be available would be
much higher.  

ARB is now looking at their options to provide relief to the dealers.  I
have been working with CARB Executive Officer Michael Kenny and John
Paliwoda of the California Motorcycle Dealers Association has been
working with Kenny and Chairman Dunlap, and they say they are going to
provide relief in the very near future.  They are looking at suspending
the regulation for some number of years to allow the industry to deal
with the issue and new technologies to mature, or they are looking at
allowing the use on the non-complying bikes on public lands outside of
the South Coast Air Basin - urban LA essentially, a concept I suggested
nearly two years ago.  I suspect they will do something along these
lines, as they can still claim to have cleaned up the air in LA, their
worst non-compliance area, as suspending the rule entirely exposes their
myopic thinking and doesn't allow them to claim any success.  

We hope to have some answer next week, although it is not clear how long
it will take to actually implement anything.  The timing is critical, as
the manufacturers are taking 99 model orders now.  Two companies are
within days of closing their orders, and the others will within a month. 
The dealers need to know what to order now, as most production now is
built to order, and late orders usually aren't filled.

I have been dealing with these people for over two years now with no
results so far, but I hope we can come to closure in the next few weeks. 
I will post any information as it develops

Last Updated August 1, 1998