Impending emission standards in California have engine builders scrambling to meet a deadline by the end of this year.

After nearly six years of meetings, hearings, development and testing, the new inboard and stern-drive engine emission standards from the California Air Resources Board (CARB) will take effect Jan. 1.

Essentially, CARB is requiring that all new engines (less than 500 horsepower) registered in California beginning in 2008 be built to comply with a 4-Star CARB rating regulating HC (Hydrocarbons, or unburned fuel) and NOx (Nitrogen Oxides, a smog contributor).

Engine manufacturers, including Mercury Marine, are already in the process of certifying their engines, but only those motors that will be sold in California or installed in registered California boats.

"Our biggest concern is the timeliness of this," said Dave Geoffroy, executive director of the Southern California Marine Association (SCMA). "The California rule goes into effect for engines manufactured in 2008 while the EPA (Environmental Protection Agency) probably will not have a rule in place for a couple of years after that.

"What this means is that boats sold in California will be equipped with an emissions- control component, which looks like it will be a catalytic converter, while our friends in other states won't have to do that."

The fact that California and its Air Resources Board is pushing to meet the emission standards much faster than the other 49 states comes as no surprise. The state was on the forefront of the two-stroke engine market cleanup, which hit the personal watercraft industry hard a few years back.

"California is always the first ones out, we don't have a problem with that," Geoffroy said. "What we're advocating, is that all boats have the same emission standards. We'd like to see this regulation rolled out across the country at one time."

Engine builders realize the chances of that are slim, so they're working overtime to meet the standards. Although the standards won't go into effect for high-performance motors (500 horsepower and greater) until 2009, those manufacturers are already feeling the pressure.

Paul Ray, president of Ilmor Engineering, which only makes 500-plus-hp engines, said the company supports emissions legislation—but only to a certain point.

"We support it but not to the extent it becomes such a burden in such a small market," he said.

If the standards take effect in 2009—that's when they are supposed to according to Karen Caesar, spokeswoman for CARB—Ray said Ilmor would consider temporarily suspending engines sales in California. Currently there are no catalytic converters or other technology for high-horsepower engines that will meet the strict standards, he said.

"We don't think those standards are achievable," Ray said.

Companies such as Mercury will be able to meet the standards because it offers a broad range of engines. Thanks to smaller engines, which produce lower emissions, Mercury essentially has "credits" with CARB for its higher-horsepower motors. Because the average horsepower of its engines is less than 500, it can meet the requirements.

That potentially means Ilmor and other custom high-performance engine builders—which don't offer smaller motors—will have to partner up with companies that offer smaller engines.

It's this "credit" system that engine builders having been pushing the state agency to drop. "If it stays, it allows one company to monopolize the market," Ray said.

Ray estimates that about 25 percent of his time the past few months has been devoted to the California emissions issue. The Plymouth, Mich., company also has a government compliance manager working full time to get the rule modified.

Some good news for performance-boat owners is that the emission standards only apply to boats with engines built beginning in 2008—or 2009 for those greater than 500 horsepower—so older boats are grandfathered in and the law doesn't apply. Some builders are suggesting customers buy their new engines by the end of this year so they won't have to pay the extra cost associated with the new catalyzed engines, which has been estimated anywhere between $500 and $2,000.

The additional cost is another of SCMA's concerns, especially when it comes to the California dealerships.

"Frankly there are great advantages for boaters—lower emissions, cleaner air, cleaner water," Geoffroy said. "And we're all in favor of those things, just not when it puts our dealers at a disadvantage."

The association believes the new standards hurt its dealers, as customers realize they can get the same boat in Nevada or Arizona for a lower price because the engine costs less just across the state line.

So with support from the National Marine Manufacturers Association, the association has been working with Assemblywoman Betty Karnette (D-Long Beach) to introduce legislation AB 695.

The proposed bill would make it illegal to register a noncompliant powerboat in California after Dec. 31, 2007, thus preventing someone from buying a boat across state lines and bringing it back to California. The proposed legislation is patterned after certain laws governing the out-of-state purchases of automobiles.

"I have introduced AB 695 to help California boaters and dealers comply with current air emission standards," Karnette said. "This bill is an effective way to reduce air pollution while protecting California businesses."

The bill was expected to go before a committee in April and, if approved in committee, would go for a vote before the state's Assembly by June.

The state's Senate also would have to approve it before sending it to the governor.

"It's really just a defensive move on our part so our dealers can be competitive," said Geoffroy, who has been with SCMA for six years. "We met with CARB at the L.A. Boat Show, and we're in constant communication with them. They are sensitive to our plight but there's only so much that they can do."

Only time will tell what kind of effect the new standards will have on the industry, but for now engine builders and dealers are doing what they can to prepare.