OOOR78106
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
    OFFICE OF NOISE  ABATEMENT AND CONTROL
                 PUBLIC HEARING
 PROPOSED MOTORCYCLE  NOISE EMISSION REGULATIONS
                       AND
    MOTORCYCLE REPLACEMENT EXHAUST SYSTEMS
                  VOLUME  III
                       Monday,  May 1, 1978,
                       9:00 o'clock, a.m.,
                       Garden Grove Room,
                       Anaheim Convention Center,
                       Anaheim, California.
                   Ci
                  Macauley  & Manning
                   Court & DcDCSition Reporters
                1630 E  PulmSt   •  S*nti An«, Calif
                           •  1253)43713??

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                                                               2-a
                         INDEX

MEMBERS OF  HEARING PANEL PRESENT;

            HENRY EVANS THOMAS, IV, Ciiairman
            RICHARD KOZLOWSKI
            SCOTT EDWARDS
            RONALD NAVEEN,  ESQ.
            VICTOR PETROLATI

PUBLIC PARTICIPANTS:

            COUNCILMAN RICHARD NAGEL, City of
El Segundo	p.    5
            DUDLEY PERKINS,  Dudley Perkins Co.   ...   p.   23
            CAROL PLANT,  BMW Motorcycle Owners
of America, Inc	p.   56
            FRANK PUCCILLI	p.   79
            JOHN  WALSH,  U.S.  Suzuki Motors
Corporation	p.   86
            KARL  S.  PEARSONS,  Bolt Beranek and
Newman Incorporated	p.  155
            JAMES TAYLOR	p.  169
            ROGER HAGIE,  Kawasaki  Motors
Corporation, USA	p.  172
           JERRY ROSEN,  Alphabets Custom West.  ...   p.  218
        (213) 4J7-UJ7
                 MACAU LEY & MANNING, SANTA ANA. CALIF.
(714) S5I-*400

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            SAM WHEELER,  MCM Manufacturing .  .
            TIM RUNNER,  Specialty Equipment
Manufacturers Association 	
            JIM GROGAN,  Kendick Engineering Co.
            RUSS COLLINS,  RC Engineering Co.
     p.  237

     p.  249
     p.  263
     p.  286
         (211) 437-1127
                  MACAULEY ft MANNING. SANTA ANA. CALIF.
(714) 5SI-1400

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                   PROCEEDINGS

           CHAIRMAN THOMAS:  Good morning,  ladies  and
gentlemen.  I'm Henry Thomas, United States Environmental
Protection Agency.  We are continuing  today the  fact finding
hearings which commenced here on Friday,  April 28,  1978,
with regard to Noise Emission Standards for Transportation
Equipment, Motorcycles, and Motorcycle Replacement Exhaust
Systems Regulations that are proposed  by  the U.S.  Environmentil
Protection Agency in the Federal Register of March 15,  1978.
           For those of you who have not  been with us during
the preceding two days of these fact finding hearings,  let
me provide you a brief introduction.
           This is a fact finding hearing.   It is  non-
judicial in nature, and non-adversarial.   We desire to  obtain
information and views of any interested parties  who care
to speak before us relative to these proposed rules.
           These hearings, of which this  is the  first,  will
be continued next week, or later this  week, in Tampa, Florida
and the following week in Washington,  D.C.
           The comments made here are  being transcribed.
Copies of the proceedings of these hearings will be
available for inspection at each of the ten EPA  regional
offices' freedom information centers.  Copies may be obtained
directly from the private firm contracted to provide this
transcript.  Their address, and particulars related to
        (213) 437-1327
                 MACAULEY-* MANNING.-CANTA ANA. CALIF.
(7)4) SSI-9400

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 1   obtaining copies may be obtained through our receptionist,
 2   at the door.
 3              We will ask each of those who have asked to speak
 4   before us today to limit their remarks to between ten and
 5   fifteen minutes, if at all possible.  Additional background
 6   material may  of course be provided either today or
 7   subsequently  during the public comment period for incorporation
 8   into the record.
 9              Following the comments made by those who speak.
 10   we would ask  that you entertain questions from the EPA
 11   Hearings Panel.  Let me now introduce the members of that
 12   Panel:
 13              I  am Director of the Standards and Regulations
 14   Division for  Noise Programs for EPA.  To my left is Mr.
 15   Richard Kozlowski, who is Director of the Noise Enforcement
 16   Division of EPA, responsible for the enforcement of these
 17   regulations when they are finalized.  To his left is Mr.
 18   Victor Petrolati, who is the officer reporting to Mr.
 19   Kozlowski,  and directly responsible for the preparation of
20   the enforcement part of these regulations.  To my right is
21   Mr. Scott Edwards, the Program Manager responsible for the
22   technical development of these regulations in the Standards
23   and Regulations Division.  And to his right is Ronald Naveen,
24   counsel within the Environmental Protection Agency for
25   noise related matters,
26              Before we commence, may I ask if there are any
        (211) 437-1337
MACAULEY ft MANNING. SANTA ANA. CALir.
(714) SSJ-9400

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 1   comments  or  questions  from anyone in the audience, at this
 2   point?   (No  response  to the question.)
 3             Or  any of  you who have not yet indicated a desire
 4   to  speak  and do  decide later on to speak today, either let
 5   me  know personally today at your convenience, or inform one
 6   of  the  receptionists, and we will make arrangement for you
 7   to  speak  on  the  schedule.
 8             I understand we have had requests by Mr. Collins,
 9   Mr.  Grogan,  and  for Mr. Perkins, who want to speak before us
 10   today,  and they  will  be incorporated.
 11             We  are pleased this morning  to have as our first
 12   witness Councilman Ronald (sic) Nagel,  of El Segundo,
 13   California.  Councilman, please.
 14                          RICHARD NAGEL
 15             Thank you,  although I think  I had better correct
 16   the record.  The first name is Richard.  I'm a Councilman
 17   from the  City  of El Segundo, California.  I have been a
 18   Councilman for some fourteen years, and during all of that
 19   time I  was involved with noise abatement programs, first
 20   for my  own City, which is adjacent to Los Angeles
 21   International  Airport,,and then for the cities of California.
 22             I was asked to chair the Quiet Cities Committee
23   for the League of California Cities., and later I was
24   Chairman  of  the  Environmental Quality of the State League
25   for some  three years,  and I have been a member of the
26   National  League  of Cities Environmental Quality Steering
        (3D) 417.1127      MACAULEY ft MANNING. »ANTA ANA. CAur.      <7U) 551-9400

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 1   Committee for the past five years.
 2              Up until the time of the Quiet Cities Committee
 3   Report in California,  the people in this State suffered
 4   all the noises that annoyed them because they thought that
 5   it was the price of progress.   They didn't think that
 $   anything could be done about it.
 7              Our Committee suggested to them that there was
 8   something that could be done,  and the noise of motorcycles
 9   was probably the easiest to solve, providing there was a
10   will to do it.
11              The jet noise provided the incentive to get
12   tough about noise.  There was  a new noise sort of gaining
13   on us, the tremendous popularity of motorcycles and their
14   potential for noise.
15              Our Committee found that all of the communities
16   in California suffered, to some degree, from this annoyance.
17   Our California Vehicle Noise Law attempted to deal with it,
18   but like air conditioning, we  found that little could be
19   done without some sort of universal source control.
20              Even though many manufacturers attempted
21    campaigns to convince their customers that they would have
22   more area to ride in if they didn't disturb the landowners,
23   by and large the availability  of loud replacement mufflers
24    won out over the quiet programs.
25               Local law enforcement efforts were difficult.
26    In our area, nuisance citations for loud mufflers were
        (213) 417-I327      MACAULEY & MANNING. SANTA ANA. CALIF.      (714) 551-9400

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 I   treated as  equipment violations which only had to be
 2   corrected by being cleared through the Marshal's Office
 3   without a fine,  and then the owner was free to ride home,
 4   replace the quiet muffler, put the baffles back into the
 5   muffler,  and go  about his loud ways.
 g              I was pleased to serve on the Advisory Committee
 7   that the EPA formed during the course of the formulation of
 g   this proposal.   I found the activities very helpful to me,
 g   and very enlightening
 IQ              I will now present the following statement on
 11   behalf of the City of El Segundo:
 12              I appreciate the opportunity to present testimony
 13   at this hearing.  Motorcycle noise is one of the most
 14   bothersome  of our environmental problems.  It is unnecessary,
 15   easily eliminated mechanically, serves no useful purpose,
 16   and is not  the result of any other socially needed function.
 17              One wonders why we, as a society, have tolerated
 18   this for so long.  Now,  at last, the tools to end it are
 19   in sight, and I  commend the EPA for their effort in this
20   area.
21               Even  though the City of El Segundo is immediately
22   adjacent to the  L.A. International Airport, one of the major
23    concerns  of the  citizen is the noise emanating from
24    motorcycles.  We feel that not much can be done about the
25    airplanes since  the FAA is in control there, but that we
26    needn't allow motorcycles to run rampant.
        (213) 437-1)27      MACAULEY ft MANNING. tANTA ANA. CALIF.      (714) 551-9400

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 1             Until now,  it  appeared that we had no tools to
 2  work with.   If  citations  were given,  they were quickly
 3  disposed  of  in  the  courthouse,  and the loud motorcycle would
 4  be  out  in the road  again.
 5             Nearly all  of  the  motorcycles that are a problem
 6  in  our  community are those  that have  modified mufflers, or
 7  no  mufflers  at  all.
 8             Since we are a transportation noisy community,
 9  I can recall no instances where any vehicle noise,  regardless
10  of  how  quiet it would  be, would disturb our citizens.   It
11  is  primarily a  problem of intrusive noise that intrudes well
12  above our normally  high ambient background, ambient noise
13  level.
14             I look to the  regulation regarding the replacement
15  mufflers,  and the anti-tampering provisions of that
16  regulation,  being the  most  important  of the entire regulation
17             The  reduction  of noise from newly manufactured
18  motorcycles  will also  be  a  great help.
19             The  new  regulation would make it possible for a
20  local jurisdiction  to  more  easily enforce noise rules.  In
21  California,  we  will have  to ask the State to pass enabling
22  legislation.  The State,  in the past,  has indicated a
23  willingness  to  work with  the  local government to solve
24  these kinds  of  problems,  and  I see nothing.that will
25  interfere with  that relationship now.
26             My City  will fully implement the new regulation to
        (71)) 43M3J7
MACAULEY & MANNING. SANTA ANA. CALIF.
(7\4) 551-9400

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 1   the fullest extent,  as soon as possible.  We were one of
. 2   the first cities in the State of California to have a
 3   comprehensive noise control program, and we intend to stay
 4   in front of the problem with motorcycle noise.
 5              Thank you very much for the opportunity.
 6              CHAIRMAN THOMAS:  Thank you very much, Councilman,
 7   Would you entertain a few questions from us?
 8              COUNCILMAN NAGEL:  Sure.
 9              CHAIRMAN THOMAS:  Thank you.
10              MR.  KOZLOWSKI:  Councilman, does the City of El
11   Segundo have an anti-tampering law?
12              COUNCILMAN NAGEL:  No,  sir, we don't.  In
13   California,  the Vehicle Noise Law is preempted by the State,
14   and the State Vehicle Code,  The extent of our activities
15   in enforcing motorcycle noise have been citations by the
16   Police Department,  and as I related, they normally go to
17   the court and get them cleared by the Marshal.
18              About a  year and a half ago, we -- by "we" I
19   mean our Police Chief,  and our Mayor,  and myself — met with
20   the presiding judge  of our Municipal Court, and we asked
21   him not to treat these citations as equipment violations
22   any more,  that we wanted them to go before him as an
23   appearance,  and we wanted him to fine the violators very
24   stiffly the  second  time they came  before him.
25              Being a very small community, we can do this,
26   because most of the  loud motorcycles in the community are
        (2)3) 437.1127      MACAU LEY ft MANNING. IANTA ANA. CALIC.      (714) 55I-»400

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  1   pretty well known by the police officers themselves,  so  it
  2   was a very informal way of, the police officer would  write
  3   on the ticket that this person had been cited for  this
  4   violation previously.  In a large city, you couldn't  very
  5   well do that, because when that message was on the ticket,
  6   regardless of whether it was just a loud muffler, or  a
  7   modified muffler, or no muffler at all, that ticket would
  8   automatically then go before the judge.
  9              We haven't had an awful lot of difficulty  with
 10   it, but we haven't had any challenges to its legality either
 II   because being in a misdemeanor area there is very little
 12   likelihood that that would happen, but we do have some fear
 13   that we may not be acting in a forthright legal manner, but
 14   it's effective.
 15              MR. KOZLOWSKI:   Thank you, sir.
 16              MR. PETROLATI:   Do you envision your enforcement
 17   program changing significantly as soon as the regulations do
 18   come out?  In other words,  will you revert to enforcing with
 19   the sound level meters,  or will you still enforce by  ear, as
20   far as the police officers are concerned?
21              COUNCILMAN NAGEL:  I would tend to think that in
22   our department that the sound level meter would be used as
23   an aid to the citation after there is a subjective determinat
24   made the office is going to determine that, he has a loud
25   motorcycle on his hands and then will probably use a noise
26   meter.   I know some cities  that we have talked to have set up
on
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 1   programs  of  running the motorcycles through noise traps so
 2   to  speak  and recording the level of noise.
 3             I don't see our particular community doing that
 4   but we are very small, we're only fifteen thousand people,
 5   and I  don't  think that the degree or the number of motorcycle
 6   we  have would entail would involve us in that kind of a
 7   program.
 8             However the regulations the anti-tampering the
 9   matchesf the  matching of the mufflers is going to give us a
 10   great  deal more information to provide the courts to back
 11   up  our citations.
 12             Larger cities in California that I have talked
 13   to  briefly about this subject tell me that they will put on
 14   a full-fledged noise abatement program for motorcycles once
 15   this regulation is passed.
 16             MR.  PETROLATI:   Okay, carrying that question a
 17   little bit further.  When a police officer does stop a
 18   violator  through a subjective type of method, the ear, do
 19   you envision if the arresting citizens -- the arrested
20   citizen -- feels that he's been unduly citied?  Do you
21    envision  conducting a test on the road right there at the
22   citation? In other words, the stationary test using a
23   weighted  value?  Or would you refer him to some sort of a
24   testing station to have that test conducted?
25             COUNCILMAN NAGEL:  We would probably refer him
26   to  a testing station which would be set up very near the
        (III) 4J7.1J27      MACAULEY & MANNING. SANTA ANA. CAUF.       551 7400

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police station.  As  I  —  again --.takirg into account we are
a very small city and  only  five  square  miles,  so he would
probably be directed over the the  police station immediately
and — for a test.   It wouldn't  be that far out of the way.
           MR. PETROLATI:  Okay.  Thank you very much,
Councilman.
           MR. EDWARDS:  Councilman Nagel,  you said that in
your community, which has a great deal  of  aircraft noise,
that the citizens have evidenced concern about motorcycle
noise too.  How do they evidence this concern?
           COUNCILMAN NAGEL:  Personally.   Telephone calls
to myself and other councilmen.  Some four years,  four and
a half years ago, we had --we commissioned an organization
to do an economic profile of the community,  and in conjunctior
with that economic profile was a qu.estionaire  that dealt
with the environmental quality of the community.
           There were some six hundred  people  in the
community that were questioned on what  they felt were the
biggest environmental problems in the community.   Some
eighty per cent of them mentioned motorcycle noise right
along with aircraft noise as one of the biggest nuisances  in
the community.
           MR. EDWARDS:  Do you have a written report on
that study?
           COUNCILMAN NAGEL:  Yes,  sir; we  do.
           MR. EDWARDS:  Could you submit  that  into  the
        (21)) 437-1327      MACAULEY ft MANNING. SANTA ANA. CAUir.      (7U> SSI-9400

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                                                              13
 1   record,  please?
 2              COUNCILMAN NAGEL:  I can mail it to you.  I don't
 3   have it  with me.
 4              MR.  EDWARDS:   Yes,  that would be fine.
 5              In your community,  do you have one police officer
 6   who works strictly on noise, or do you have all of the police
 7   officers that play some small fraction of their duties?
 8              COUNCILMAN NAGEL:  We have a Noise Control Officer
 9   in the community  who switches  hats between being Director of
 10   Public Safety,  and the Director of Public — Director of
 11   Building and Safety, and the Noise Control Officer, because
 12   an awful lot of our noise is involved with building
 13   regulations,  zoning regulations.
 14              All  of our police officers are briefed on our
 15   noise ordinance and the methods of enforcing them, and what
 16   our expected standards are as  established by the City
 17   Council,  so we  don't have any  one police officer that is
 18   assigned to the job.
 19              I understand that all of our motor patrol
20   officers,  bot the motorcyle officers and the automobile
21    patrol officers,  are able to cite and make determinations
22   on noise.
23               We have four  hand-held type noise meters in the
24    Police Department.   They are available in each one of the
25    black and white cars,  and can  be available very quickly to
26    the motorcycle  officer also.
        (2)3) 437 1337      MACAULEY & MANNING. SANTA ANA. CALIF.      (714) SSI f400

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 1             MR.  EDWARDS:   Do you get the feeling that most
 2  of  the  citations  are issued by the Noise Control Officer,
 3  or  by the beat  officer?
 4             COUNCILMAN NAGEL:   Vehicle noise citations are
 5  issued  by the beat  officers.
 6             MR.  EDWARDS:   So noise is one of their concerns?
 7             COUNCILMAN NAGEL:   Yes.
 8             MR.  EDWARDS:   And actually,  it is not just a
 9  question that they  are cognizant of the rules and they know
10  what they might be  able   to do in a case of noise violation
11  and they actually go out  and do it?
12             COUNCILMAN NAGEL:   That's right.
13             MR.  EDWARDS:   All  right, sir.   Another question:
14  You say that the  police officers are aware of who in the
15  community have  the  loud motorcycles.  Are they also aware
15  of  who  in the community,  if there are any, are dealers or
17  other service organizations that might  perhaps be contributinj
18  to  the  problem  in excess?
19   '          COUNCILMAN NAGEL:   That's very easy in my
20  community, Scott.   We don't have anyone that sells motorcycle;;
21  I believe they  go to an adjacent community to purchase,  but
22  the sales places  are well known but outside of our jurisdiction.
23             MR.  EDWARDS:   Final question:   Is there any
24  problem in your community with off-road motorcycles?
25             COUNCILMAN NAGEL:   Yes.   I think that is
26  prbably one of  the  major problems.   You see,  in California,
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                                                              15
     at least in the urban areas, the off-road motorcycles are
     generally taken out in the remote areas and driven on the
     weekend, and then the rest of the week they're home in  the
     garage and being tuned up, and repaired, and raced up and
     down the street to make sure they were tuned right and
     working right,  and I think that's once of the problems with
     the motorcycle  noise in the community, that is, the off-road
 8   motorcycle being repaired by those people that own them.
 9              MR.  EDWARDS:   I see.   Councilman, thank you
10   very much.
11              COUNCILMAN NAGEL:  Thank you.
12              CHAIRMAN THOMAS:   I have a couple of them for
13   you please,  if  I may.
14              COUNCILMAN NAGEL:  Sure.
IS              CHAIRMAN THOMAS:   I'd like to get a better
16   understanding than I have on the preemption element in the
17   State law with  respect to local  communities such as El
18   Segundo:
19             With respect  to penalties which can be imposed,
20   or may be imposed,  I understand  that the State law governing
21   motor vehicles  is  clearly preemptive.   Does that preemption
22   hold with respect  to penalties which may be imposed for
23   violation of those  State regulations of the State law?
24             COUNCILMAN NAGEL:   It is my understanding that
25   the penalty  part of the  violation of the State laws is
26   handled at the  local level.   The fines that are levied for
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 1   vehicle violations,  and speeding violations, reckless
 2   driving,  noise violations,  such and so forth, are handled
 3   at the local level by the local municipal court, and I
 4   would assume that the judges or the local municipal court
 5   would have the full jurisdiction over what fines to levey,
 6   how to handle probations,  such and so forth.
 7              But I'm not being a person completely well
 8   versed in how the courts would handle that situation, I'm
 9   only speaking from conjecture as to the relationship we have
 10   had in the past with the court.  You see, they seem to have
 11   full jurisdiction on what fines to levy up to the limits of
 12   those set down by the law.
 13              CHAIRMAN THOMAS:   I assume that the Council then,
 14   or the City,  could set maximum fines for offenses, then,
 15   following what you're saying?
 16              COUNCILMAN NAGEL:   To up to a limit,  yes,  . . .
 17              CHAIRMAN THOMAS:   Up to a limit,  yes.
 18              COUNCILMAN NAGEL:   Up to a limit.
 19              CHAIRMAN THOMAS:   Does El Segundo have a different
20   severity  of fines with respect to modifying exhaust systems,
21   willful types of actions, which could be shown here,  as
22   opposed to a product simply  not meeting a sound level
23   because,  for some other reason, degradation perhaps,  misuse
24   product,  but something that  would be clearly willful change
25   to the product where you clearly have removed purposely the
26   baffles,  for example,  in an  exhaust system?   Have you
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 1  considered this, and do you have  a  penalty,  up to this point?
 2             COUNCILMAN NAGEL:   It  would  appear to be a
 3  reasonable differentiation to  make  on the  fines,  We have
 4  that in our rather informal relationship with the court now.
 5             The one other thing that the arresting officer,
 6  the citing officer, puts on the ticket  is,  and very informall
 7  worded, he says, "In my opinion this muffler has been
 8  muffled," I mean, "this muffler has been modified," or,
 9  "this muffler has been selected to  generate a large amount
10  of noise," and in that case the judge has  told us that he
11  will treat those with a little more severity,  but it's all
12  up to the judge, depending on  how severe he wants to deal
13  with the violator.
14             We can point these  —  we worked it out with them
15  so we can point these things out  to them,  and so he would
16  have the information at the time  he makes  that determination,
17  but we haven't set any particular scale or differentiated
18  at this point by ordinance or  any other way other than this
19  vary informal manner, but it would  certainly follow that
20  when we get into a more formal procedure on this,  assuming
21  that these regulations are implemented, that that would be
22  one of the things that we would consider.
23             CHAIRMAN THOMAS:  I take it  there,  from your
24  comments then, that there have been citations issued by
25  your police officers with respect to motorcycles?  Yes?
26             COUNCILMAN NAGEL:   That's correct.
               CHAIRMAN THOMAS:  Do you have,  or perhaps, could
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 1   you provide to us, the sum feeling based on the citations
 2   issued, and the penalties imposed, as to what levels of
 3   penalties had, in fact, been imposed by local judiciary with
 4   respect to how many,  say, violations, have, in fact, been
 5   reported?
 6              What we are looking for here is some relationship,
 7   How many citations have been issued?  Essentially, what kind
 8   of penalties have actually been imposed on these citations
 9   issued?  How many dismissed,  if they were dismissed?  What
10   kind of basis there was for it?  Your feeling for how the
11   judicial system is actually responding to this particular
12   kind of problem.
13              COUNCILMAN NAGEL:   I am not sure that I can
14   provide you with all  that information.  Part of the
IS   information,  the number of citations issued,  and the
16   particular violations that are on those citations, could
17   be furnished very easily.
18              Once I get into the courts, the City is furnished
19   gross data on how —  on what  fines have been levied, and
20   for instance,  out of  five thousand tickets we've levied
21    one hundred and fifty thousand dollars worth of fines,  and
22   we have dismissed forty of them,  but I don't think there's
23    any data kept or furnished our City.at the present time
24    that would indicate on a ticket-by-ticket basis   just
25    exactly what  is happening.
26               We could get some  feeling,  I would  imagine,  from -
        (111) 417-1127      MACAULEY ft MANNING. CANTA ANA. CALIF.      (714) SSI-V400

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                                                              19
 1   perhaps  we could get that information from the court if we
 2   asked them to keep it.   I don't know.  I can find out, and
 3   if'I can gather the data, I would be happy to furnish it to
 4   you.
 5              CHAIRMAN THOMAS:  Councilman, I would very much
 6   appreciate it if you could.  If you find, in looking into
 7   this,  that that data is  not available in a suitable form,
 8   I  would  appreciate if you could also tell us that, because
 9   clearly,  one  of the parts to the solution of this problem
10   is the judicial element  itself.
11              No matter how good the regulations may be,  no
12   matter how good the test procedure is,  and the citations
13   being  able to be written by enforcement officials against
14   that  test procedure, but if the judicial system then has
15   some other problems existent,  we need to identify those
16   as soon  as  possible.
17              We've been asking these questions  of several
18   city officials.   You are the first official that I've  asked
19   this question of specifically  in these  hearing,  and I
20   intend to  ask others.
21              This  data is  not available on a national
22   aggregated  basis,  clearly,  and it's not available on a
23   state  level,  I  can't find it there either,  so this kind of
24   information can  only come from the operative  level of
25   American governments, and if you all can help us,  I would
26   be very, very pleased.
        (J13) 437-1327      MACAULEY & MANNING. SANTA ANA. CALIF.      (714) 551-9400

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                                                              20
 1              COUNCILMAN NAGEL:   I will certainly make an
 2   attempt to do that.
 3              CHAIRMAN THOMAS:   One last line of questions, if
 4   I may:   I take it El Segundo  issues business permits for
 5   firms  to conduct business in  your community.  Is that . .  .
 6              COUNCILMAN NAGEL:   We issue business licenses --
 7   but perhaps I'm trying to presume your next question.  I'll
 8   let you make the next question,  (Laughter)
 9              CHAIRMAN THOMAS:   Well,  yes.  The next thing
 10   that's  coming is,  on what basis can a license to do business
 11   be revoked, which is to say,  either a firm which might be
 12   identified as having manufactured and distributed, in
 13   commerce, products not in compliance with the regulations  --
 14   hopefully, they would be identical regulations by the local
 15   community — and therefore, what would have to be the basis
 16   for El  Segundo to remove the  business license of a firm
 17   engaged in activities which are clearly in violation of
 18   Federal regulations?
 19              COUNCILMAN NAGEL:   Well, I hope you won't be
20   offended, if you compare it with our efforts to remove
21    undesireable massage parlors  from the community, but this
22   is the  same kind of a question that is involved, as to how
23   to control an unwanted business for whatever reasons they
24    are unwanted.
25               Unfortunately, there aren't very many ways that
26    We can  do that.   If the business conforms to all the
        (J1J) 417-13J7      MACAU LEY & MANNING. SANTA ANA. CALir.      (7)4) S5I-9400

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                                                             21
 1  building  and safety  laws,  they have the right number of fire
 2  exits,  and  the  building is not a nuisance, and provide the
 3  right amount of parking,  and they maintain the building in
 4  a  forthright manner,  there's very,  very little we can do to
 5  control what they  do  within that building if it is a lawful
 6  pursuit —  if it is not something that is against our laws.
 7              That I  can tell you up in front is that most
 8  cities  that are pressed on an issue, though, will find ways
 9  of harassing the business,  but that's not the kind of a
10  thing that  a community does unless  they are really desparate,
11  and  they  have an awful lot of little old ladies in tennis
12  shoes knocking  on  your door and complaining about some kind
13  of a problem
14              CHAIRMAN THOMAS:   Well,  in this case,  what I
15  was  looking to  is  a little further-down the road, of course,
16  and  that  is,  if we are able to identify firms who are
17  selling products,  for example,  which do not comply with
18  Federal regulations;  in other words,  that you can show that
19  they do not comply with Federal regulations.
20              COUNCILMAN NAGEL:   We would probably notify the
21  Federal agency  that is responsible  for enforcing  the
22  regulations that that was  going on.
23              CHAIRMAN THOMAS:   Well,  of course, that's an
24  action  that we  can take, and we can take them to  court for
25  failure to  comply, and hopefully .  .  .
26              COUNCILMAN NAGEL:   Once  it's been pointed out.
        (211) 4)7-1327      MACAULEY & MANNING. tANTA ANA. CALir.      (714) SSI 9.400

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                                                             22
 1              CHAIRMAN THOMAS:   That's right.   .  . . and
 2   hopefully,  at some point,  we can resolve it.
 3              On the other hand,  there are much quicker processeŁ
 4   which can sometimes be effected than that long drawn out
 5   judicial  element  that the  Federal government will go through
 6   here,  and that is,  if the  community,  likewise,  would look at
 7   the problem,  we were able  to have sufficient information
 8   that  there is,  in fact,  a  violation of Federal regulations
 9   taking place,  would you be interested,  for example, in
 10   taking such an action as lifting a business license?
 11              I  just don't know.
 12              COUNCILMAN NAGEL:   I don't think that under our
 13   general law charter that we  can do that.
 14              CHAIRMAN THOMAS:   Uh huh.
 15              COUNCILMAN THOMAS:   This is  the same kind of
 16   questions we  were asking,  again in relation to  the massage
 17   parlors,  if we could just  simply lift the business license,
 18   and it would  have been a much simpler solution  than the
 19   one of making sure that  everything was  just so.
 20              There  are a number  of regulations,  like Federal
 21   government  and local government,  that you can enforce very
 22   stringently,  and  to make it  difficult for a person to carry
23   on an  illegal activity.
24              Business licenses  in California.are  generally
25   concerned --  considered to be  revenue producing devices and
26   not a  regulatory  device.
        (Ill) 417.1327
MACAU LEY ft MANNING. SANTA ANA. CALIF.
(7U> SSt-«400

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                                                              23
 1              CHAIRMAN THOMAS:   Yes.  And obviously, if you
 2   use  the  device for regulacory purposes, you're not generating
 3   the  revenues  you like to get.
 4              COUNCILMAN NAGEL:   That's true.
 5              CHAIRMAN THOMAS:   I think that's where we see
 6   the  conflict?
 7              COUNCILMAN NAGEL:   Yes.
 8              CHAIRMAN THOMAS:   Anything else?
 9              COUNCILMAN NAGEL:   No.
10            '  CHAIRMAN THOMAS:   Councilman,  thank you very much
11   for  taking  your time coming in here and talking to us today.
12   You've been very helpful.
13              COUNCILMAN NAGEL:   Thank you very much.
14              CHAIRMAN THOMAS:   I would like to hear from Mr.
15   Dudley Perkins,  at this  time, if he is here.
16                         DUDT SY  PERKINS
                Good morning, Mr.  Chairman Thomas, and members
     of the panel,  thank you  for giving  me the opportunity to
     express  a few brief remarks about a person who has been a
20   motorcycle  dealer,  and a member of  a family business that
     has  been the  exclusive Harley-Davidson dealer in San
22   Francisco since 1914.
23              I  am fifty-four years of age.   I'm married and
24   have five children,  three boys and  two girls.  Two of my
     sons are working in the  business with me  now.  One son,
     twenty-six  years  of age, is managing our  parts department.
        (J1J) 417-1327      MACAU LEY & MANNING. SANTA ANA. CALir.      (714) 551-7400

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                                                             24
 1   My fourth child and third son, who was twenty-one a month
 2   and a half ago,  is a full-time student at the University of
 3   San Francisco,  and a part-time employee of our business.
 4   When I look at  his pay check on Friday and I see his part-
 5   time hours,  which are averaging in excess of fifty hours a
 6   week,  I think he is carrying a pretty good load, and I'm
 7   very proud of his -- as I guess every father has a right to
 8   be about his sons and his children — very proud of his
 9   progress to date.
10              In November of 1975, he suffered an unfortunate
11   accident,  a motorcycle accident.   He was  on his way home
12   from work at 6:30 in the evening and proceeding through an
13   intersection that was controlled by a signal light — he
14   had the green light — and he was run into and run down
15   by a hit-and-run truck.
16              He subsequently lost his right foot and a portion
17   of his  left  leg.   He has made,  in my mind,  a spectacular
18   recovery,  thanks  to some very good doctors,  and with the
19   help of the  good lord,  to a point where he is carrying this
20   full-time  load at school,  and working for us, and riding
21   his  motorcycle,  and getting back  to a motorcycle that is
22   a  kick  start motorcycle  instead of the previous one that
23   he had,  which was  an electric start motorcycle.
2*             As I  said previously,  our business was started
25   by my  father, who  was  deceased in February of this  year at
">   the  age of eighty-four,  and in 1912 he started,  with a
        (JU) 417-1)77      MACAULEY & MANNING. SANTA ANA. CALIF.      (7U) SSI-9400

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                                                             25
 1   partner,  and at that time it was Maggini and Perkins, and
 2   they represented the Ace and the Henderson motorcycle, which
 3   probably  very few of you have heard about in this room.
 4   These firms  no longer exist.  They have been out of business
 5   for many  years.
 6              In November of 1913, my father bought out his
 7   partner,  and obtained the Harley-Davidson franchise, and
 8   we have consistently and continuously, from that time, been
 9   the exclusive Harley-Davidson dealer in San Francisco.
10             My father was on an intimate relationship with
11   the founders of the Harley-Davidson Motor Company.  He was
12   most interested in competition in motorcycle racing and
13   hill climbing, and was himself a man who held some number
14   of championships in motorcycle hill climbing over the years.
15             His interest in competition continued throughout
16   the years.   He has sponsored motorcycle races throughout
17   his life  and through most of our business history, and if
18   there was anything that my father and I almost fell apart
19   on, it was the amount of money that I saw being spent to
20   keep motorcycle racing and our business going, as it is a
21   very expensive sport, it is a very expensive method of
22   advertising,  and,  in my estimation, we didn't belong in that
23   business  as  a dealer.
2^             We employ currently, at this time, fourteen
25   people in our organization.  Our total annual payroll in
5fi
***   1977 two  hundred sixty five thousand four hundred and eleven
        
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                                                              26
 1   dollars.   Our mechanics' hourly wage -- which, incidentally,
 2   we are a union shop,  and have been since the late 30's --
 3   our mechanics1,  journeymen mechanics' hourly wage, is ten
 4   dollars and twenty dollars and twenty-eight cents an hour.
 5   This will be increased in June of this year to ten dollar
 6   and fifty-three  cents.  This gives him an annual salary of
 7   twenty thousand  eight hundred and sixty-three dollars a
 8   year.
 9              So you can see that our employees, at least for
 10   Dudley Perkins Company,  San Francisco, are fairly well paid
 11   at the wages that we  pay, and the customer labor rates that
 12   we have to charge,  which, incidentally, is thirty-two
 13   dollars an hour,  we must have, on a continuing basis,
 14   skilled people.   We can't tolerate a marginal producer.
 15   Our gross annual  sales have exceeded a million dollars since
 16   1970.
 17              My own involvement with our family business and
 18   Harley-Davidson began in 1947, upon my completion and
 19   graduation from  the University of San Francisco,  and after
20   a  four-year tour  of duty in the Maine Corps I goc married
21   and went  into our business on a full-time basis,  and I have
22   continued,  since  that time.
23              Over the years,  I have participated,  and have
24   been a contininuing and  ongoing member of the Northern
25   California Harley-Davidson Dealers Association,  which is
26   one of the  oldest dealer associations in the United States,
        (113) 437-1177      MACAUUEY 0c MANNING. CANTA ANA. CALIF.      (714) 3SI-V400

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                                                             27
 1   meeting six times a year,  addressing common problems of the
 2   motorcycle business,  how to improve ourselves, make ourselves
 3   more businesslike.
 4              I am the immediate past-president of the Californi|a
 5   Motorcycle Dealers  Association, and was president of that
 6   association for two years.   We represent approximately
 7   fifty per cent of the seven hundred odd motorcycle dealers
 8   in the State of California.   Before that period of time, I
 9   served for two years  as  treasurer of that organization.
 10              Again,  the objectives of this type of an
 11   organization have been to  make motorcycle dealers in
 12   California a more professional group of businessmen and
 13   business  people,  trying  as  much as possible to take what is
 14   best from the automobile industry, and more professionalize
 15   ourselves,  and leave  what  we consider to be poor in the
 16   automobile industry by itself and not adapt or continue
 17   those practices.
 18              The Harley-Davidson Motor Company approximately
 19   five years ago inaugurated an organization for the first
20   time which was called the  Harley-Davidson Dealers Advisory
21   Council,  and of course,  over the years, although some
22   dealers would think that a factory-dealer relationship is
23   adversarial — and  sometimes it is; and dealers have always
24   wanted to tell management  how they should make their
25   motorcycle,  and what  they're doing wrong -- the factory
26   addressed that problem by  forming this Dealer Advisory
        (JU) 4J7 1327      MACAULEY & MANNING. «ANTA ANA. CAUP.     (714) 55t f400

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                                                             28
 1   Council,  and I was  one of nine dealers selected for the
 2   first  time,  and  I was  elected by my fellow dealers as
 3   chairman  of  that first Harley-Davidson Dealer Advisory
 4   Council,  and served in that capacity for three years.
 S             It enabled  us,  as dealers,  to see the problems
 6   of manufacturing, that most dealers do not see.
 7             At that  time,  Harley-Davidson was addressing
 8   the  problem  of noise,  and mufflers, and what they saw down
 9   the  road  as  potential  and pending legislation about
10   motorcycle owners keeping their exhaust systems in the
11   fashion in which they  purchased it from the dealer.
12             Now,  that's easier said than done,  and I'm sure
13   that many of you are aware of the tremendous individuality
14   of motorcycle riders,  although I don't think,  really,  they
15   are  any different than any other group of Americans.   We
16   all  pride ourselves  on our rights to our individual rights.
17             But,  over the  past five or  six years,  I have
18   seen the  problem of  straight pipes,  modified exhuast systems,
19   instead of being an  irritant in the marketplace,  subside and
20   grow to a --  as  far  as our own business  is concerned -- a
21   very minor problem.
22             Perhaps we,  in  our organization,  have  helped that
23   our  by attempting to convince customers,  by our own actions,
24   that what they are going  to  do is not  going to  improve the
25   performance  of the motorcycle,  and when  a motorcycle  dealer
     becomes convinced of that  himself,  the fact that  a modified
        (211) 417-U27      MACAULEY ft MANNING. SANTA ANA. cAur.      (714) SJI »<00

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                                                             29
 1   exhaust -- i.e.,  a straight pipe, or a loud muffler -- does
 2   not make a motorcycle perform any better, he then finds it
 3   much easier to convince his customers, and with the possible
 4   exception of the  fact that, in some years in the past,
 5   different exhaust systems looked, perhaps, a little better,
 6   cosmetically,  on  a motorcycle than the original factory
 7   equipment, we  haven't had too much problem with customers
 8   who wanted other  than the original equipment exhaust systems.
 9              We  do  not stock anything but Harley-Davidson
 10   parts and accessories,  which, of course,  includes exhaust
 11   systems and mufflers,  and when we get a request to install
 12   other than Harley-Davidson factory equipment,  we say that
 13   we don't stock that kind of equipment, and in our estimation,
 14   to put it in the  vernacular,  those systems are mickey mouse,
 15   beyond the fact that the mufflers generally are not long
 16   lasting,  the hardware to install and keep them up and
 17   mounted in an  orderly and workmanlike fashion,  is generally
 18   not to the standards of Harley-Davidson,  so we attempt to
 19   convince the customer that he's buying himself a problem,
 20   not so much from  a noise and a law enforcement standpoint,
 21   but from an economic standpoint,  that is, he may be back
 22   having it fixed,  or having problems keeping it on the
 23   motorcycle,  in the long run it would be cheaper for him to
 24   leave it alone.
 25              I was  invited to come and speak for myself as
2®   a  dealer,  and  I think I can speak for the Harley-Davidson
        (7U) 437-1337      MACAULEY & MANNING. «ANTA ANA. CALir.      (714) 55I-V400

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                                                             30
 1   dealers  nationally,  by John Davidson, and I, earlier last
 2   week,  in a magazine  that's  called the Motorcycle Product
 3   News,  in an  article  entitled Product News Legislation, which
 4   you gentlemen may have seen --if not, I can make copies
 5   available to you --  there's an article that addresses the
 6   Federal  Noise Regulation,  and in the next line they say,
 7   "the other shoe drops."
 8             Part of that article, it seems to me, that the
 9   EPA may  be entertaining a remedy of the motorcycle noise
10   problem  that is perhaps taking the step of, down the road,
11   perhaps  eliminating the Harley-Davidson Motor Company.
12               Beyond the intended impact, or the effective
13   impact,  which that might have, of the loss of approximately,
14   apparently,  three thousand jobs in the Harley-Davidson
15   Motor Company, I think the other effect that you have to
16   look at  is the impacu that it would have on the dealer,
17   the Harley-Davidson dealer network, at large.
18             At the current time -- and I do not have exact
19   figures  — but the Harley-Davidson Motor Company has in
20   excess of seven hundred dealers, and probably less than
21   seven hundred and fifty dealers.
22             If you were to take an average of rather than
23   fourteen employees that we have, an average throughout the
24   country  of seven employees per dealership, you might then
25   have another loss of forty-nine hundred jobs, and when you
26   look at  the  payroll that we pay, which is probably the most
        (311) 437-1327      MACAU LEY & MANNING. tANTA ANA. CALIF.     (714) SSI »400

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                                                             31
 1   expensive  in the  country as far as mechanics are concerned •
 2   it  may  not be as  large as some larger dealerships -- when
 3   you look at the economic impacts of that situation, and
 4   that elimination  of the only remaining American motorcycle
 5   manufacturer,  I think that perhaps those are rather severe,
 6   and unconstitutional if you will, methods of achieving an
 7   objective.
 8              I was  interested and pleased to hear in your
 9   preliminary comments,  Mr. Thomas, the fact that this is not
10   an  adversarial proceeding,  and I would hope that, in your
11   deliberations  and your taking of testimony, as you continue
12   going after the solution of this problem, that you will
13   continue with that viewpoint.
14              I think,  at this time, gentlemen, I would be
15   pleased to take any questions  that.you might have for me,
16   and attempt to answer them to the best of my ability; and
17   again,  thank you,  panel,  for the time you have given me.
18              CHAIRMAN THOMAS:  Mr. Perkins, it's a pleasure
19   having  you here today,  and I particularly want to thank
20   Harley-Davidson for bringing you to speak before this panel.
21   We  have had a dearth of dealers sign up to talk to us,
22   either  here or elsewhere in the country,  and some of the
23   comments that you have already made that  I think it is very
24   important  for us  to hear.  It  is not just the manufacturers
25   that are affected by this rule making,  and dealers better
2"   get in  here and start  talking  to us,  and  I'm glad to see
        (I1J) 417-1)27      MACAULEY & MANNING. «ANTA ANA. CALIF.     (714) $j|.f400

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                                                             32
 1   that Harley and you have apparently arrived at that decision
 2   as well.   It is important to the industry that you speak,
 3   Again,  I  want to thank you for that.
 4              I would like to ask you a couple of questions,
 5   if I may, please.   Mr. Perkins, you indicated in your
 5   comments  that perhaps the noise problem associated with
 7   motorcycles is subsiding, and you gave a couple of comments
 8   to elaborate on that thereafter.
 9              How do  you, as a dealer in motorcycles, the man
JO   who has made a profession of selling, and repairing,  and
1]   maintaining motorcycles,  how do you perceive the public's
12   view of motorcycle noise?
13              MR.  PERKINS:   I think what you say,  how do I
U   perceive  the public,  and what they think of motorcycles?
15              CHAIRMAN THOMAS:   It's a very subjective question,
16   asking for a very  subjective answer,  and that is,  the
17   general public,  not the motorcycle riding public necessarily,
18   but as a  dealer and an individual who sells the product
19   in here,  repairs and maintains  that product,  how do you see
20   or visualize,  if you do  at all,  the public's  perception
21   of motorcycle noise?
22              MR.  PERKINS:   That's  a toughie,  Mr.  Thomas, and
23   I  don't think that the public,  in general,  thinks, today,
24   that motorcycles --  and  this is  completely contrary to what
25   the Councilman  said,  from El Segundo  —  I don't see
26   motorcycle  noise being the problem that  it was  in past times.
        (113) 437-1327      MACAULEY & MANNING. «ANTA ANA. CALIF.     (714) 55M400

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                                                             33
                I  think  that,  from the spectrum of our customers
     that we have  today, which touches all strata of society,
     those people  who  are  buying  motorcycles  from us,  and from
     all of the  other  dealers  that represent  all the other makes
     in the marketplace, are having people come to them as first
     time customers, or  repeat customers,  who,  ten or fifteen
     years ago would&'t  be caught dead on  a motorcycle,  so I
 8   think that  says to  you that  the general  public has  changed
     its thinking  about  the fact  that motorcycling isn't as bad
10   as we thought it  was,  that,  as Honda  struck in one  of their
11   advertisements, you meet  the nicest people on a Honda.
12              You do meet some  very nice people on motorcycles,
13   and despite what  people have said in  the past, and what
14   people thought about  motorcycling,  and motorcycles  per se,
15   throughout  the years  — my time in the motorcycle business
16   and my father before  me ~ ninety-nine per cent of our
17   customers across  the  years were just  as  good as the whole
18   rest of the American  population, the  working stiff, the
19   doctor, lawyer, whoever it might be,  most people are good
20   people, they  want to  do what's right  by  themselves.
21              The only thing wrong with  a motorcycle is because
22   of its very tremendous maneuverability,  and the fact that
23   its engine  and its  exhaust system is  out in front of
24   everybody,  when the minority of the motorcycle riding
25   public act  in an  uncharitable and unsafe way, the rest of
26   the motorcycle riding public is indicted by that very small
        (111) 417.132?      MACAULEY & MANNING. SANTA ANA. CALir.      (714) SSM400

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                                                              34
 1   minority who is  very seen -- it's easy to see a motorcyclist
 2   who is  operating in an unsafe way, and being noisy about his
 3   motorcycle;  and  really, I don't think so much noise is  the
 4   problem as  is the problem of -- particularly on freeways
 5   where a motorcyclist will become impatient and tend to  cut
 6   in and  out,  and  those kinds of things, irritate automobile
 7   drivers.
 8              CHAIRMAN THOMAS:  I appreciate your answer.
 9              Do you stock and sell motorcycles other than
10   Harley-Davidsons?
11              MR. PERKINS:  We do not.   We are exclusively
12   Harley-Davidson,  have been, and as far as I'm personally
13   concerned,  I hope to continue in that capacity exclusively
14   as long as  Harley-Davidson stays in business, and I hope
15   their demise is  not imminent.
16              CHAIRMAN THOMAS:  We share that hope.
17              MR. PERKINS:  I've got two sones that, I think,
18   if they can learn to live with each other, can continue in
19   a  very  successful business that's done a lot for a lot of
20   people.
21              CHAIRMAN THOMAS:  It's my understanding that
22   Harley-Davidson  manufactures and distributes a muffler
23   exhaust system designed to go on bikes which are to be
24   used in competition;  is that correct?
25             MR. PERKINS:  I guess so.   Really, I can't
2"   answer  that  question because I remove myself from racing
        (213) 437.1)17      MACAUUEY ft MANNING. SANTA ANA. CALir.      (714) SSI-f400

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                                                             35
 1   completely.  We  don't sponsor any racers.
 2             First of all,  Harley-Davidson makes a very
 3   limited  amount of racing  motorcycles.   They are manufactured
 4   almost to  order.   A person that wants  to buy a professional
 5   Harley-Davidson  motorcycle racer has  to put in his order
 6   in  advance, has  to put up a substantial deposit with the
 7   dealer,  his delivery is a year down the road, that motorcycle
 8   is  exclusively for racing only,  not designed to be ridden
 9   on  the streets —" can't be ridden on  the steets, has not
10   lighting system,  and the  mufflers that go,  or the exhaust
11   systems  that go  on that motorcycle do  not  fit,  as far as
12   I'm aware, the street motorcycle that  we sell,  so we don't
13   stock anything like that,  we don't have any demands for .it
14   from our customers.
15             They  are satisfied,  by and  large —  and I'm not
16   sitting  up here  —  or standing up here sanctimoniously and
17   tell you that I  have never sold any illegal exhaust systems,
18   I don't  say that.
19             I sell what Harley-Davidson provides, and I
20   assume that Harley-Davidson is  providing us with legal
21   exhaust  systems,  and as I  mentioned in the  past we attempt
22   to  dissuade our  customers  from changing their exhaust
23   system,  and in fact,  on a  new model that we have, a "69"
24   model of the Harley-Davidson 1000 cc Sportster  with the new
25   exhaust  system,  very  much  up  to  date,  very  stylish,  and
26   the motorcycle looks  good,  that  particular  motorcycle won't
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take any other exhaust  systems which are presently in the
parts book and available  for  sale from the factory.
           There are many —  I won't say "many" — there are
certainly an amount of  after-market  manufacturers that
furnish exhaust systems for Harley-Davidson motorcycles.
Those after-market suppliers  specialize and achieve most of
their success in selling  to — in my estimation -- other
than franchised motorcycle dealers,  and in California, there
are a lot of what we call "chopper shops" who,  not being
franchised dealers, would not have the ability  to buy
Harley-Davidson — legitimate, authorized,  Harley-Davidson
parts from the Harley-Davidson Motor Conpany who sells only
to its authorized franchised  dealers,  so therefore they must
depend on the after-market manufacturers for their supply
of parts, and there, in my estimation,  lies part of the
problem.
           I don't wish to indict the after-market
manufacturers either because  there are some legitimate
manufacturers who are doing as much  as  our factory is doing
about coping with the noise problem,  and attempting to keep
them in compliance.
           CHAIRMAN THOMAS:   I've got several more questions,
but I want to turn to my  colleagues  and let them ask any
questions they may have first.
           MR. KOZLOWSKI:  Mr. Perkins,  one of  the problems
we have in quieting motorcycles is the  modified bike, the
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                                                             37
 1  modified muffler.   In your  opinion,  is there anything that
 2  dealers can  do  —  some  things  that perhaps you have done --
 3  dealers can  generally do  to eliminate or prevent people from
 4  modifying  their bikes,  or at least reducing the incidents?
 5  Is  there anything  perspectively,  things that dealers could
 6  do  that have not been done,  to quiet the motorcycle?
 7             MR.  PERKINS:   I  think  the impetus on that problem
 8  should come  from our factories — not only our factories,
 9  but any motorcycle manufacturer's practice.  They should
10  begin  and  do what  Harley-Davidson has quietly done with us,
H  Harley-Davidson dealers,  attempt  to convince the dealer
12  network that it is not  in their best interests and the best
13  interests  of their customers to encourage their customers
14  to  alter the factory installed exhaust system.
IS             It takes a little more trouble — in some cases,
16  a lot  more trouble -- with  a particular customer to convince
17  him of the fact that his  intended actions, or his desires
18  to  alter the exhaust system, are, in the long run, going to
19  be  detrimental  for him and every other motorcycle rider, but
20  the same as  it  takes -- excuse me -- more trouble for a
21  dealer to  sell  his proposed customer on the benefits of
22  paying full  list price, or  close  to full list price.
23             You  certainly  have to  take more efforts to do
24  that than  you have to do  to address a customer who comes
25  in  with a  request  for a price by  giving a price right off
26  the bat that is three or  four hundred dollars under list
        
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                                                             38
 1   under  list price.   It's  much easier to give it away; it
 2   doesn't  take  any  effort  to give it away.
 3             So,  I  guess what I'm trying to say to you is,
 4   our  dealers can continue to be educated with the impetus and
 5   push from behind  of the  factory,  that it is to their best
 6   interests, and  the  motorcycling in general, that their
 7   customers be  convinced that they  should leave their motorcycles
 8   alone, and as we  now do  and have  done for at least four or
 9   five years, we  have taken the time to do that with our
10   customers.
11             You  certainly can not  characterize the Dudley
12   Perkins  Company as  a high volume  dealer.   Most Harley-
13   Davidson dealers  could not be categorized as that either,
14   as opposed to some  Honda dealers  that are selling a thousand
15   to fifteen hundred  motorcycles a  year.
16             The  ability of the motorcycle dealer selling in
17   that volume to  take the  extra time,  you might not expect
18   him, nor get  him, to do  it,  but with the type of customers
19   that we  have, I find that the time that we spend with each
20   customer is productive of long term relationships,  and that
21   the  referral  business that we get from our customers who
22   bring  us  in additional new customers is worth taking the
23   time to  do it,  and  it's  a matter  of education.
24             Education is  sometimes painful, but I think it
25   needs  to be done.
26             Not  to change the subject from what you're
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                                                             39
 1   currently  talking  about,  but  in the last year I have spent
 2   fifteen  thousand dollars  of our company's money to address
 3   a problem  which I  think is  more severe,  and needs more
 4   attention,  than the noise problem right  now, and that is,
 5   motorcycle safety, and you  would think that manufacturers
 g   and dealers would  be more attentive to that thing because
 1   their customers, and potential  customers, are being injured,
 g   maimed and killed, and I  think  more can  be done to address
 9   that situation and make the automobile driving public more
IQ   aware of the fact  that they are the people responsible for
11   most motorcycle accidents,
12             But, that's  what I've done, and I find that
13   sometimes  my thoughts,  and  my attempts to address that
14   problem, go on deaf ears, somewhat the same as perhaps
15   you're finding with some  people in the industry about
16   motorcycle noise.
17             MR. KOZLOWSKI:    Do you think that dealers,
18   generally, would hang  posters that say,  "Don't mess with
19   your exhaust system.   It  is illegal.   And you foul up
20   performance," as in the case of Harley-Davidson bikes.  Do
21   you think  your dealers  would do that,  generally?
22             MR. PERKINS:   I  think they  would.  Again, I guess
23   we all have to be  treated as children, and we have to have
24   a father image, or somebody on  top saying,  if you don't
25   do this, that's going  to  happen.   Well,  I think it is
26   incumbent  upon our factory, and all motorcycle manufacturers,
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                                                             40
 I   to  take  the  lead  in  that  plan of action,  and to follow up
 2   by  their sales  force in the  field to see  that their dealers
 3   are doing  it.   The more — let's see —  the "Less sound,
 4   more ground"  two, or three,  or four years ago,  started off
 5   very nicely.  The impetus didn't seem to  be there to keep
 6   it  continuing.  We've still  got the small posters around
 7   our establishment.
 3             But, those types  of things would have an effect,
 g   and let's  face  it, there  would have to be somewhat of a
IQ   club in  the background to help get the dealer who hadn't
U   been too concerned about  doing that to realize  the value
12   and importance  of it,  and when you put it down  to his being
J3   able to  remain  in business,  and his livelihood,  then he
J4   might take a  different approach.
15             MR.  KOZLOWSKI:  Fine.   Thank you,  sir.
IS             MR.  PETROLATI:  Well,  first of all,  Mr.  Perkins,
17   for your information,  and for the record,  I have heard of
18   both the Ace  and the  Henderson motorcycles.   I  just recently
19   p-ut together  small scale  models  of both,  so I'm pretty
20   knowledgeable as far  as Ace  and Henderson are concerned.
21             Now, I'm not quite sure I understand your actual
22   sales according to after-market  exhaust systems.   Do you
23   sell after-market exhaust systems  besides  your  regular
24   equipment systems?
25             MR. PERKINS:   We  do not.
26             MR, PETROLATI:  Okay.   The original  equipment
        
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                                                             41
 1   systems  that  you sell in the after-market line, are they
 2   identical  to  the systems that are sold with the Harley-
 3   Davidson motorcycle?
 4             MR.  PERKINS:   Well,  there are exhaust systems
 5   which went on  motorcycles  which were manufactured previous
 g   to  those being  manufactured now,  say, motorcycles that were
 7   manufactured  before  the  most recent legislation that governs
 8   what  dB(A) that a muffler must  achieve.
 9             Those'systems which,  for all practical purposes,
10   did not  achieve 83 dB(A) also can be put on later model
11   motorcycles that also have  exhaust systems that do achieve
12   that  level.
13             When a person says to  us,  he wants to modify his
14   existing system which meets  the present regulations, by
15   putting  on a  system which doesn't,  we say to him,  we can't
16   do  it, we won't do it in our service department, we can't
17   prevent  you from buying  what we  sell to fit an older
18   motorcycle, we  don't  think  you're smart,  but I'm afraid that
19   I can't  take  a  self-rightious position and be a judge or a
20   policeman for everybody  that comes  in our store and say,
21   "I  won't sell it to you," because if I won't sell it to him,
22   he  will  go down the road and buy  it from somebody else,
23   and I'd  rather  see him have  a Harley-Davidson exhaust system,
24   which is better manufactured, than  some  other after-market
25   manufacturer's  system which  is not,
26             MR.  PETROLATI:  Okay,  I  understand.
        
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                                                              42
                Do you have any knowledge, as far as the
     motorcycles you sell,  what percentage are subsequently
     modified by those individuals buying those motorcycles?
                I guess,  if the motorcycle comes back for some
     type  of repair work,  or warranty work,  something along those
     lines,  you may happen to notice how many of those motorcycles
     have  been subsequently modified.
 8              Can you give me some sort of a percentage?
 9              MR.  PERKINS:  Pretty tough to do that,  because
10   I  don't—may I should get up in the service department
11   oftener — my guess  -- and it's probably a pretty good
12   horseback guess — that approximately ten to fifteen per
13   cent  of the customers  that buy motorcycles from us end up
14   altering their exhaust systems in some  way by putting on
15   another Harley-Davidson exhaust system.
16              MR.  PETROLATI:   Okay.  Once  our regulations do
17   go  into effect  — of  course,  you're aware that we  are going
18   to  be regulating replacement  exhaust systems — subsequently
19   you will know which replacement exhaust systems will not
20   increase the  level of  those Harley-Davidsons over  the
21   standard.
22              Will that  change your policy as far as  selling
23   replacement exhaust systems?
24              MR.  PERKINS:  Absolutely ....
25              MR.  PETROLATI:   Okay,  thank  you very much.
26              MR.  PERKINS:   ...   We'll take the stance that
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                                                             A3
 1   to continue elaborating on your question on the following,
 2   we'll take the stance that the new emission rules have put
 3   put on Harley-Davidson motorcycles,  and now we have a mix of
 4   product on our showroom,  we have motorcycles that were
 5   manufactured before January 1,  1978, and motorcycles that
 g   have been manufactured after January 1,  1978.
 7              Those  after January 1st have more stricter
 g   emission standards  on them, to comply with those emission
 9   standards Harley-Davidson had to manufacture and fit on
10   the motorcycle a  larger air cleaner, it's very obvious.
11              You see,  it's  not cosmetically so bad that it's
12   turned people off of buying both models  of those motorcycles.
13   There's  one with  a  smaller air  cleaner which cosmetically
14   looked a little better,  the  other was a  bigger air cleaner,
15   but when you set  one alongside  of the other, and the color
15   that the customer wants  is the  motorcycle that was manufactured
17   after January  1,  1978,  and has  the larger,  theoretically
18   more objectionable,  air cleaner,  he'll take  that motorcycle
19   because  it's  the  color  that he  wants, and in conjunction
20   with that, when we  talk about motorcycles with smog equipment
21   on  them,  to  help  reinforce our  position  of not altering
22   the motorcycles, we  inform the  customer  that for a dealer
23   to  alter  that emission system in  any way is a  fifteen
24   thousand  dollar fine, and  we tell the customer  that we
25   don't pretend to waste fifteen  thousand  dollars  of our hard
26   earned money altering that system for you, and  perhaps making
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                                                             44
 1   it  a  less  eff cient,  poor performing,  motorcycle.
 2             We've been able by our own riding of both models
 3   of  motorcycles,  both those with emission equipment and those
 4   without, to  determine that the performance was not affected,
 5   and I think  it comes  down to how you come across to the
 6   person that  you are talking to.
 7             If you are a con-man,  you are not going to
 8   address  that problem at all.   You are going to gloss over
 9   it.   And it  sticks out like a sore thumb.   And I'm not
10   patting  myself or our organization on the back.   We aren't
11   con-men.   We can't remember the amount of lies that you
12   would have to tell to con people  into  buying motorcycles,
13   or  steering  them away from one to the other.  We have found,
14   over  the years,  that  the truth comes out the same all of
15   the time because it is the truth,  and  you can't  remember
16   the lies,  so you had  better not lie, or you had  better not
17   get caught at it.
18             MR.  PETROLATI:   One last question,  Mr.  Perkins:
19   Have  any of  your customers come back with complaints about
20   deteriorated mufflers?  In other  words,  do you have an idea
21   how long that original equipment  system would last on a
22   motorcycle?
23             MR,  PERKINS:   I'd say  we don't hear any complaints
24   about the  long-lastingness of our exhaust systems.   It's
25   characteristically and typically  Harley-Davidson.   It's big,
26   heavy, and there's lots  of iron and steel  in it,  and it
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                                                             45
 1   lasts.
 2             And  I  don't  say  that to compare us to the Japanese
 3   manufactuers  in that  their  systems don't last.   I don't
 4   know.   I  don't  pretend  to know a lot about their model
 5   motorcycles,  and  I  give them all their credit and due, they
 g   are a very real threat  in the marketplace.
 7             I  see  Harley-Davidson as a product that epitomizes
 8   to the  motorcycle buying public what a motorcycle really
 9   should  be, and  the  people that come in who are  either first
10   time buyers,  or second  time Harley-Davidson owners,  or
11   previous  Japanese motorcycle owners,  almost unanimously
12   they come in  and  say, "I had a Honda,  it's a good motorcycle,
13   but this  is really  what I think a motorcycle should be,"
14   and that's why  I  think  the  Harley-Davidson has  a unique
15   place in  the  marketplace, and I don't see, and  hope that
IS   our company does  not  have to turn itself around and end up
17   as an Americanized  Japanese-type motorcycle.
18             I  would  say,  that is the demise of Harley-
19   Davidson.
20             MR.  PETROLATI:   Okay.   Thank you very much, Mr.
21   Perkins.
22             MR.  EDWARDS:  Mr.  Perkins,  as Mr.  Thomas  said,
23  we really do  appreciate the opportunity to talk to you
24   today.  You are the first dealer that we have had an
25   opportunity to  talk with, and I hope  not that you may be the
26   last, so  I would  like to ask you a series of questions,  not
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 1   as a Harley-Davidson dealer but as a dealer in motorcycles,
 2   so that none of my question here are directed specifically
 3   in a ponder in any way against Harley-Davidson.
 4              Do you --at the outset, at least, let me say,
 5   that this  extended impact of our regulations not only on
 6   the manufacturers .  .  .  (derisive laughter)  There must be
 7   something  about air pollution this way.   .  . .  the extended
 8   impact of  our proposal not only on the manufacturers .  .  .
 9              UNIDENTIFIED AUDIENCE PARTICIPANT:  You would
10   have to go back to scratch to do that.
11              MR.  EDWARDS:   . .  .  not only on the manufacturers,
12   but on the dealers,  was  very much in the mind of our Agency,
13   and it is  included in  the analysis, and we're very concerned
14   about any  possible extended impact.
15              Could you please,  very briefly,  describe how
16   your business is broken down between sales  of new vehicles,
17   used vehicles if indeed you are in that business, service
18   and replacement parts?
19              MR.  PERKINS:   I suppose I ought  to have those
20   figures at the  tip of  my tongue  and right  in my head . . .
21              MR.  EDWARDS:   Very general.
22              MR.  PERKINS:   I would say, our sales of new
23   motorcycles compose  about fifty per cent of our business,
24   about twenty per cent  — or I'd say, today, it's more in
25   the vein of ten to fifteen per cent are used motorcycles,
26   and the balance split  up over parts, accessories, and the
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                                                             47
 1   service department,  and if that's an important --if the
 2   importance of that answer — if there is more importance
 3   than just the general way in which I have answered it, I
 4   would be happy to provide you that breakdown; and secondly,
 5   I would encourage you, if you want more dealer participation,
 6   to seek it out through the manufacturers, and perhaps have
 7   a general set of questions that you might like to have
 8   answers to so the dealers could come prepared.
 9              MR.  EDWARDS:  That might be a very usable
 10   suggestion.
 11              The reason I asked the question is that we are
 12   looking forward to not only the impacts on the motorcycle
 13   in terms of cost,  but what happens if — we hope it does not
 14   happen -- what happens if demand drops slightly because of
 15   the increased cost,  or other impacts, on the motorcycle.
 16              I was trying to understand exactly what portion
 17   of your business is  attributed to the sales of new motorcycle
 18   and the care for the ones that are already on the road.
 19              MR.  PERKINS:  Well, to go on a little further,
 20   you may not realize  it, but in San Francisco, Harley-
 21   Davidson motorcycles sell from a low of thirty three hundred
 22   and thirty-three dollars to a high of forty-nine hundred
 23   dollars before  sales tax and license.
 24              Our  business is almost exclusively, and I would
 25   say ninety nine and  ninety nine one-hundreths per cent, in
f6   the large motorcycle category.
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                                                             48
 1             Harley-Davidson has  not been able to survive in
 2   the  lightweight  motorcycle business because of the tremendous
 3   competition  that we have from the Japanese, so finally, our
 4   company has  taken -- or at least I hope they've taken — a
 5   stance  that  I have  advocated for a long period of time, we
 6   don't belong in  the lightweight motorcycle business because
 7   we can't  compete successfully there, why not devote our
 8   efforts to the big  end of the motorcycle market which is
 9   where we  do  best, and where we, perhaps, can do better, so
 10   you  are talking  about very expensive motorcycles.
 11             Generally speaking,  I would say that three-quarter
 12   of the  dealer networks are able to sell their motorcycles
 13   at very close to list price, so you're talking about big
 14   dollars.
 15             If to achieve the sound requirements that you
 16   are  talking  about,  we had to add four or five hundred
 17   dollars on to a  motorcycle somewhere down the road just to
 18   make it comply as  far as noise is concerned, I would say
 to   that any  of  those kinds of increases make it damn tough to
 20   sell.   It's  hard to sell as it is.
 21             The motorcycling business as far as Harley-
 22   Davidson  is  concerned I would say is almost exclusively a
 23   recreational, a  liesure business, for our buyers.  They,
 24   generally speaking  — most of them don't ride their
25   motorcycles  back and forth to work.  Most people who own
26   motorcycles  today  are not riding their motorcycles as much
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 1   as they used to.
 2              It was not uncommon, ten years ago, to have some
 3   motorcycle owners and riders have that method of transportation
 4   as their only one, so they were riding their motorcycles a
 5   thousand miles a  month.   That,  today, is the exception to the
 6   rule.   I would say that  most of our buyers and owners today
 7   are riding their  motorcycles about six thousand miles a year,
 8   and less.
 9              MR. EDWARDS:   Okay.   You said that the parent
 10   company convinced you, personally, and the other people on
 11   your staff, that  these new exhaust systems do not rob the
 12   motorcycle of performance.  How do they go about doing that?
 13              MR. PERKINS:   They go about it via the method
 14   of,  when a new model year comes out, the factory provides
 15   us with descriptive literature  which is not for the customer
 16   but is  for the dealer organization, and talking about the
 17   features of the motorcycle for  that particular year, why
 18   this new thing, why that new thing, the advantages of it
 19   over another, so  most responsible dealers are going to
 20   make their employees aware of the changes, and the reasons
 21   for them.
 22              This is followed up  in regular Harley-Davidson
 23   sponsored and service clinics in which field service
24   representatives hold meetings for the dealer organization
25   in all  parts of the country, and recently there was one
26   concluded a month and a  half ago in Livermore, California,
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                                                             50
 1   in which all of the Northern California dealers had members
 2   of their staff in attendance, and at that particular meeting
 3   this  particular subject was talked about.
 4              MR.  EDWARDS:  Okay, but it was in descriptive
 5   terms, they didn't actually get you out on a motorcycle?
 6              MR.  PERKINS:  No, no.  I think the dealer -- most
 7   Harley-Davidson dealers beyond being dealers are riders, and
 8   they  ride a motorcycle on a daily basis, if not back and
 9   forth to work,  certainly in riding their own new motrocycles
10   or customers'  motorcycles, and they're aware of what's going
11   on.
12              MR.  EDWARDS:  Mr. Perkins, you have been up here
13   a long  time,  and I have one final question for you. ' This
14   is as a Harley-Davidson dealer.
15              One concern that has been expressed to us and
16   what  we are very aware of is the sound of a Harley-Davidson
17   motorcycle having a very unique appeal.  I was just going
18   to ask  you about the current situation.
19              From Mr.  Davidson discussions on Friday, I think
20   it is probably clear that the exhaust note of the current
21   83 decibel Harley-Davidson motorcycle is considerably lower
22   than  it was in the past.
23              I gleaned this at the very least, because he
24   said  that they were going to have to start working on the
25   engine  very hard to get it any lower than this, which tells
26   me that the exhaust is very iowv~~aind-you said that as 'far as
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                                                             51
 1   you could tell,  only  ten to  fifteen per cent of the motorcycl
 2   that you sell, when they come back for service, have been
 3   modified.
 4              Does  that  mean that the Harley-Davidson purchaser
 5   is  satisfied with the sound  of the current 83 decibel
 6   Harley-Davidson  motorcycle?
 7              MR. PERKINS:   I think so.  The people who change
 8   their systems are mostly customers who have had more than
 9   one motorcycle,  and for  whatever reasons, want to maintain
10   the old appeal,  or the old sound,  that they formerly were
11   used to.
12              I don't find,  today,  on the sales floor, with
13   the customers that come  in,  the resistance to the standard
14   exhaust system that there was in the past.
15              MR. EDWARDS:   Mr.  Perkins, thank you very much.
16              CHAIRMAN EDWARDS:   I've got a couple of last
     ones for you, sir.  You've been at this for quite a time,
     but I don't want to let  you  go  until I go through this
     next one,  if I may.
2"              We have, I guess,  reason to believe, Mr. Perkins,
     that one way or  another,  there s going to be a requirement
22   that newly manufactured  motorcycles be quiet.
23              Now,  even  if  we weren't here representing the
     feds from Washington  today,  you are already faced with
     statutes for the State of California requiring lower noise
     emission levels  in the future.  In fact, they get down quite
:s
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                                                             52
 1   a bit  lower,  as you may  be aware,  of what the Federal
 2   government  is  proposing  to require,  so one way or another,
 3   it  looks  to us, at any rate,  that one or more states,
 4   comprising  a fairly significant market,  will require lower
 5   noise  levels,  even in the absence of the Federal standards.
 6              How do you perceive that  this is going to be
 7   dealt  with  by  your firm,  which is an exclusive Harley-
 8   Davidson  firm, with Harley,  at the present time, being on
 9   the upper side of noise  levels in terms  of new manufactured
10   volume sold in the U.  S.  today?
H              In other words, even if we weren't here today,
12   you would still have the problem —  or at least Harley
13   would  still have  the problem in front of them.  Surely, you
14   have given  this some thought.
15              MR. PERKINS:   In answer to that I would say this,
16   that over the  years, I have found that Harley-Davidson, one
17   way or another, and sometimes  later  rather than sooner, has
18   found  ways  to  cope with  those  problems and achieve a
19   satisfactory solution, and I'm afraid I'm not enough of an
20   engineer, or sound engineer,  or mechanic, to know how they
21   are going to achieve that solution,  but  I think they will
22   find a way, and I think  "big daddy"  AMF  is certainly going
23   co  nelp them to their best interests, and I don't think
24   although  our share of the market is  less than ten per cent,
25   i don't think they want  to lose that because, dollarwise.
26   it's a pretty nice hunk  of their revenue, and I think they
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                                                             53
 1  will  find  a way  to  cope with that.
 2             I only hope that  the requirements imposed by
 3  anybody  don't  force them  to  change  what our customers tell
 4  us  is what they  think a motorcycle  ought to be, and I'm
 5  afraid that they think a  motorcycle has to have an acceptable
 6  level of vibration  and noise,  and I guess it's up to us to
 7  convince you all, and the State of  California, that an
 8  acceptable level of noise is at,  or around, or very little
 9  below, where we  currently are,  and  I think that, as dealers
10  look  at this  problem in  a more serious light than they had,
11  perhaps, in the  past, they can help themselves by tending to
12  hold a rubber  hammer over their customers and say, "Look,
13  if  you like this motorcycle  the way it is,  leave it alone,
14  or  otherwise you're not going  to  have it."
15             CHAIRMAN THOMAS:  Have you seen any evidence, Mr.
16  Perkins, that  Harley has  taken that position through its
17  media relations  directed  to  the purchasers, users, owners,
18  of  their motorcycles?
19             MR. PERKINS:   I don't  think so other than the
20  precautionary  and the admonitions that are in an owner's
21  hadbook.   They are  very out  front about changing anything.
22  They use the publication,  if you  will,   that alterations or
23  changes merely void the warranty, and I think those
24  admonitions are  reasonably underlined or boldface.
25             Let's face it,  a  motorcycle enthusiast and a
26  prospective purchaser, when  he  gets down to the point of
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 1   being within twenty minutes to a half an hour of taking
 2   delivery on his new motorcycle, even if he is an experienced
 3   and a more than one time motorcycle owner, he doesn't listen
 4   too much to the admonitions that you're giving him, to a
 5   point even of not looking at how his name was spelled on
 6   the Department of Motor Vehicles license application.
 7              "Read the contract, please.   These are the
 8   precautions in there.   This is what you're buying.   This is
 9   what it is costing you."  And the excitement of buying a
 10   motorcycle I'm afraid overcomes all of  these admonitions
 11   and precautions that you are trying to  lay into him.
 12              So, we have found over the years, and particularly
 13   in the last half dozen years,  the better we prepare our
 14   customers  before the day of delivery, the better off he is
 15   going to be,  and the better person, and a better buyer,  and
 16   a better rider he's going to be.
 17              Motorcycle  thefts have been  a very big problem.
 18   Harley-Davidson,  until recently, has been the most  desired
 19   motorcycle from a theft standpoint.  So, just as much as
 20   telling people why they should buy Harley, we tell  them
 21   how much they  should take care of their motorcycles.
 22              And we have found we have had the best success
 23   with those kinds  of things  by  talking about that in the
24   course of  a prospective sale,  and again I refer back to
25   saying that our dealership  is  not a systems house,  if you
26   will,  not  a high  volume place  of business, and we have the
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                                                              55
  1   luxary in most instances of the time to do these things on
  2   an orderly progressive basis,  and where we have had that
  3   time,  we have achieved a fairly good success, and I think
  4   it is  going to be up to the dealer in the future to attempt
  5   to establish that rapport with their prospective customers.
  6              CHAIRMAN THOMAS:  It's my understanding, Mr.
  7   Perkins,  that Harley has undertaken some fairly significant
  8   initiatives to push the wearing of helmets by purchasers
  9   of Harleys.  Is that right?
 10              MR. PERKINS:  Yes,  it is.
 11              CHAIRMAN THOMAS:  Have you seen anything in any
 12   way comparable to that with respect to bringing the noise
 13   problem to their users' attention?
 14              MR. PERKINS:  I don't think I can — again, sad
 15   to say,  I may be remiss in not reading completely the
 16   rider's  handbook, and the other information which is made
 17   available to the buyer.
 18              I can't really say that their attempts to have
 19   customers leave their exhaust systems alone have been at
 20   the level which they encourage people to wear helmets.
 21              And again, I think it comes down to the man at
 22   tht end  of the firing line, and I think that's the dealer.
 23   i  think  it's incumbent on Harley-Davidson, and all motorcycle
2*   manufacturers, to do a better job of educating and bringing
25   up their dealer to be a successful professional businessman.
26              CHAIRMAN THOMAS:  Well, sir, you have been very
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                                                              56
 1   helpful.   We've kept you for an awful long time.  I  think
 2   you certainly represented the dealers and the motorcycle
 3   industry  extremely well, very, very competently, here  today.
 4   We thank  you very much,  sir.
 5              MR.  PERKINS:   Thank you for the opportunity.
 6              CHAIRMAN THOMAS:   We would like to take a ten
 7   minute recess at this point, and on our return, hear from
 8   Mrs.  Carol Plant, representing BMW Owners of America.
 9                    (Whereupon, the proceedings were
 10              in recess from 10:40 o'clock, a.m.,
 11              until 10:52 o'clock, a.m.)
 12              CHAIRMAN THOMAS:   We will reconvene at this point,
 13   please, to hear from Carol Plant, representing the BMW
 14   Owners of America.
 15                           CAROL PLANT
 16              Yes.   Mr. Perkins — Thomas,  pardon me, and the
 17   panel, BMW Motorcycle Owners of America is a non-profit
 18   organization,  a private  club.   We do not manufacture
 19   motorcycles,  we don't repair them, we are not dealers, we
 20   don't furnish parts.
 21              I  was called  Thursday evening by one of our
 22   members who is  on the board of directors and is an attorney
 23   in Washington,  O.C,  and  asked me to come down and act as
24   an emissary to  read this,  which was air  mailed to me, so if
25   you will  bear with me,  I will read four  and a half pages.
26              These are comments  regarding  the proposed motorcycle
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                                                             57
 1  noise emission regulations  announced by the Environmental
 2  Protection Agency  in  the Wednesday,  March 15,  1978, Federal
 3  Register.
 4             The man who wrote  this  is named Paul Lewis.   He is
 5  a member of  the Board of Directors,  acting in the capacity of
 6  Secretary of BMW Motorcycle Owners of America Incorporated.
 7  Mr. Lewis drew these  up in  a  rather pressing manner, and I
 8  have a  feeling that some of it is  rather axiomatic.
 9             The introduction:
10                   "BMW Motorcycle Owners of America
11             Incorporated" -- hereafter, I will simply
12             refer to it as BMWMOA -- "is a non-profit
13             organization incorporated in the State
14             of California.   It's active members
15             currently  number approximately eight
16             thousand.
17                   "BMWOA seems to promote the knowledge,
18             iformation, safety and  riding skill, of all
19             BMW motorcycle owners on the North American
20             continent.
21                   "It  also seeks to promote the awareness
22             and relationship of BMW motorcyclists, and
23             their motorcycle mode of transportation and
24             operation, to other citizens of motors, and
25             to improve and promote  the relationship and
26             image of motorcyclists  to the public in
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                                                             58
 1              general.
 2                    "BMWMDA believes,  through its activities,
 3              it has acquired the reputation for being a
 4              responsible organization.   We agree that
 5              elimination through reasonable measures of
 6              unnecessary noise from our environment will
 7              benefit the health and welfare of motorcyclists,
 8              as well as the public at large.
 9                    "The Noise Control Act and the proposed
 10              standards:  In Section 4901b of the Noise
 11              Control Act, the Congress states the underlying
 12              policy is, 'To promote an environment for
 13              all Americans free from noise that jeopardizes
 14              their health and welfare.'
 15                    "Therefore,  it appears the Environmental
 16              Protection Agency -- EPA -- authority to
 17              establish noise standards is contingent on
 18              a clear showing the noise which is to be
 19              regulated actually jeopardizes health and
20              welfare.
21                    "BMWMQA sees nothing in the Noise
22              Control Act which permits EPA to establish
23              noise standards which are arbitrary or
24              unreasonable.
25                    "EPA, in developing its proposed
26              standards of 83 decibels (A) in 1980, 80
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                                                             59
 1              decibels  (A)  in 1982,  and 78 decibels (A)
 2              in 1985,  apparently has determined that all
 3     '         street motorcycles, both modified and unmodified,
 4              present such  a serious noise problem as to
 5              jeopardize health and welfare,  and has
 S              determined that the proposed standards are
 7              reasonable.
 8                    "BMWOA,  for the reascns expressed
 9              below,  strongly disagrees with the methods
 10              used by EPA to determine the nature and
 11              scope of  motorcycle noise emissions, with
 12              EPA's conclusions regarding the impact of
 13              motorcycle noise emissions, and with the
 14              severity  of the proposed standards, the
 15              deficiency in noise source identification.
 16                    "EPA has defined motorcycle noise in
 17              terms of  its  'contribution to total traffic
 18              noise,1 and in terms of the 'single event
 19              noise impact.'
 20                    "In addition, EPA compared the noise
 21              emissions from unmodified street motorcycles
 22              with those of street motorcycles having
 23              modified  or after-market exhaust systems.
24                    "The EPA study indicates motorcycles
25              comprise  the  minimum portion of the total
26              highway traffic, one and seven-tenths per
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                                                              60
 1              cent in the typical urban traffic stream,
 2              according to the EPA.
 3                    "The EPA study also indicates noise
 4              emissions of unmodified motorcycles are
 5              masked by the sound of other vehicles in
 6              the traffic stream.
 7                    "In effect,  the EPA study shows the
 8              noise emissions of unmodified motorcycles
 9              do not contribute in any significant way
 10              to total traffic noise.
 11                    "Despite this, EPA's position is that
 12              motorcyclists present a potential noise
 13              problem in that they will stand out as the
 14              single loudest noise source on the road in
 15              1985 by assuming the major noise contributors,
 16              such as heavy trucks, will be regulated to
 17              much lower noise levels in 1985.
 18                    "In view of the fact that this assumption
 19              is far from being a certainty in view of the
 20              motorcycle industry's history of self-policing
 21               action in the noise area, and in view of the
 22              fact that unmodified motorcycles will not
 23              constitute a noise problem in the absolute
 24               sence in 1985 even if they are the loudest
25               vehicle on the road, EPA's approach appears
26               to be little more than a highly speculative
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                                                              61
 1              attempt to create a problem where none, in
 2              fact,  exists.
 3                    "In view of the relatively small
 4              numbers of motorcycles involved, EPA could
 5              better use the taxpayers' money, and more
 6              fairly treat the motorcyclists, where it
 7              could  devote its efforts to addressing the
 8              noise  impacts  of the present major contributors
 9                    "Upon resolution of those impacts, it
 10              might  then be  appropriate to address the
 11              motorcycle contribution if it presents an
 12              actual problem at that time.
 13                    "EPA's conclusions regarding the
 14              'single event  noise impact1 are invalid.
 15              and have no value,  in that EPA attempts to
 16              measure impacts in terms of a subjective
 17              'annoyance*  factor,  which more likely
 18              measures the listeners'  anti-motorcycle
 19              prejudice than the motorcycle noise output.
 20                    "Motorcyclists are the unwarranted
 21              subject of prejudice in  America.  EPA does
 22              not appear to  have attempted to determine
23              which  portion  of the annoyance stems from
24              this prejudice,  and which portion stems
25              from unreasonably loud noise emissions.
26                    "To reason the nation's health and
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 1             welfare legitimately might be improved, may
 2             be improved by decreasing noise through
 3             removing the innocent object of prejudice,
 4             hardly appears to be a responsible approach.
 5                    "The EPA test indicates that the BMW
 6             models currently emit sound levels in the
 7             82 decibel (A) range as measured by the
 8             J-331a standard.
 9                    "Over the past several years, the
10             BMWMOA has sponsored a national rally at
11             various parts of the country.  These events
12             have  developed into the largest single mark
13             events in the world,  are held in or near
14             small towns,  and draw large numbers of BMW
15             motorcycles.
16                    "The 1977 national rally, held on
17             the Flying W Ranch, near Colorado Springs,
18             Colorado."
19  Which,  incidentally,  I was Grand Marshal,  Chairman,
20             "We drew seventeen hundred and twenty-seven
21             BMW motorcycles.  Events of this magnitude
22             greatly increase the total noise impact
23             contribution in the area during the duration
24             of three or four days,  both in terms of
25             total traffic noise and single even noise
26             impact.
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                                                             63
 1                    "In view of the fact that a certain
 2              number of the rally participants ride
 3              motorcycles with exhaust systems which have
 4              begun to deteriorate, or are after-market
 5              systems, the rally's average motorcycle
 6              noise level must be somewhere in excess of
 7              82 decibel (A),  yet none of these rallies
 8              have prompted complaints about motorcycle
 9              noise.
 10                    "The upcoming BMWMOA Sixth Annual
 11              Rally,  to  be held in Rutland, Vermont,
 12              this summer,  is  a subject of some interest
 13              in the local press.   The initial report of
 14              the Rutland Herald was headlined, 'Vroomh.
 15              Rutland will gain a new notoriety when it
 16              hosts the largest motorcycle rally ever.1
 17                    "Subsequently, after it was learned
 18              that this group  spent between to hundred
 19              and fifty thousand and three hundred thousand
20              dollars in Colorado Springs last year,  the
21              following statement appeared in Rutland
22              Rotary Club's Newsletters, March 28, 1978:
23              'In any event, we are all convinced that
24              with vehicles ranging in value up to six
25              thousand dollars,  with engines as quiet as
26              a  Lincoln Continental,  and an average age
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                                                             64
 1              of participant around forty-five, our
 2              municipality will not be threatened.'
 3                    "Apparently, the annoyance factor
 4              pertaining to perceived noise levels of
 5              motorcycles  can be inversely proportional
 6              to the amount of money that the motorcycles
 7              leave with the local populace.
 8                    "BMWMOA agrees with the EPA assessment
 9              of the" noise impact of motorcycles which
 10              are equipped with loud modified, or after-
 11              market exhaust systems.  While there may
 12              be reasons to use such systems, and while
 13              BMWMOA can understand the owners' desires
 14              to use such  systems on occasion, the
 15         .     BMWMOA,  as an organization which seeks to
 16              promote and  improve the image of motorcycling
 17              in the eyes  of the general public,  can not
 18              condone the  use of exhaust systems which
 19   '           are noticeably and unreasonably louder than
 20              the unmodified stock systems.
 21                     "BMWMOA agrees with EPA that motorcycles
 22              with modified exhaust systems contribute to
23              the overall  noise impact for motorcycles
24               in much larger proportion that their actual
25               numbers  would indicate.
26                     "BMWMOA concludes that, after studying
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                                                              65
 1              the EPA materials pertaining to the proposed
 2              standards, that the motorcycle noise problem
 3              stems largely, if not in whole, from the use
 4              of after-market modified exhaust systems
 5              which greatly exceed the 83 decibel (A) level.
 6              It is these systems to which the EPA and
 7              the State should devote their time and
 8              attention, rather than to the unmodified
 9              motorcycles.
10                    "EPA's  subjective noise rating charts
11              show, in Figures 5-11, and 5-12, on Pages
12              5-33, and 5-34,  of the Background Documents,
13              support this  conclusion.  They show the 83
14              decibel levels are clearly acceptable.
15                    "The impact of proposals:
16                         a.   78 decibel (A)  standard:
17              This  standard, whether viewed from the
18              prospective of best available technology
19              presently available,  or the prospective of
20              that  which may be available in 1985,  is
21              arbitrary,  capricious,  and beyond the
22              scope of authority delegated to  EPA under
23              the Noise Control Act.
24                        Motorcycles  are not  automobiles.
25              To function properly,  mass  weights  and
26              special  relationships  of the motorcycle
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                                                             66
 1              components  must be perfectly balanced.
 2              These  relationships are critical, and are
 3              measured in terms  of close tolerances.
 4              A  five pound or a  one inch modification
 5              has  the potential  to adversely affect the
 6              motorcycle's road  worthiness to a far
 7              greater extent  than would be a similar
 8              ch?.nge in an automobile.
 9                    ."It is not clear that the EPA fully
10              appreciates or  understands these facts.
11              The  prevalent engine used to power motorcycles,
12              both now and historically, is an air cooled
13              engine.   The reasons for  this are clear to
14              anyone who  has  ridden motorcycles.  These
15              engines best meet  the functional needs of
16              the  motorcycle,  and while a liquid cooled
17              engine may  be superior to an air cooled
18              engine in terms  of mechanical noise,  it is
19   .           inferior in other  more important respects.
20              It adds weight,  it adds bulk,  it adds
21              components,  it presents added complexities,
22              and  to require  that all motorcycles  must be
23              liquid cooled,  EPA is not merely decreasing
24              the  noise level  as authorized under  the
25              Noise  Control Act,  it is  changing the total
26              nature of the motorcycle.
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                                                             67
 1                    "It is  BMWOA's  contention that the
 2              Noise  Control Act does not authorize EPA
 3              to  outlaw air cooled engines.   When taking
 4              all factors  into consideration, the air
 5              cooled engine represents the best available
 6              technology in the motorcycle context.
 7                    "If EPA desires to establis a 78
 8              decibel (A)  standard for liquid cooled
 9              engines,  that may be its prerogative.
10              However,  EPA may not require that air cooled
H              meet that standard,  nor that all motorcycles
12              be  liquid cooled.
                                               i
13                    "The 76 decibel standard would result
14              in  providing the Japanese motorcycle industry
15              with a monopoly in the American market.
16                    "The Noise Control Act,  in BMWMOA's
17              opinion does  not authorize EPA to effect a
18              restraint of trade in this manner.
19                    "The BMWMOA supports the motorcycle
20              consumers in a freedom of choice, and in the
21              future, he should have the opportunity to
22              purchase motorcycles manufactured in Japan.
23              He  should also have the opportunity to
24              purchase motorcycles manufactured in the
25              United States, Canada, England, Germany.
26              Italy, and various other countries which
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                                                             68
 1             have a motorcycle industry.   There is room
 2             for diversity  in this  country.
 3                   "EPA appears  to  imply  that performance
 4             is less of a consideration in best available
 5             technology for street  motorcycles than it is
 6             for off-road motorcycles.
 7                   "BMWMOA  takes  strong exception to this
 8             implication.   The essence of the entire history
 9             of all forms of motorcycle is sport and
10             competition.   Ours  is  a  sporting form of
11             transportation.  To  ignore this  fact, as EPA
12             appears to be  doing, is  to evidence such a
13             degree of ignorance, and lack of appreciation
14             for, and an awareness  of the regulated object,
15             that it calls  into  question  EPA's competence
16             to regulate.
17                   "From the safety aspects alone, it can
18             be argued that performance is of greater
19             importance to  the street motorcycle than it
20             is to the off-road motorcycle.   Unlike the
21             off-road motorcyclist, the street
22             motorcyclist must compete with vast numbers
23             of automobile  operators, anyone  of whom has
24             the power to kill or seriously injure.  The
25             street motorcyclist  has  no sheet of steel
26             surrounding him.  He does not depend on
        
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                                                             69
 1             seat belts  to  protect  him.   His ability to
 2             avoid  death and injury depends  on two things,
 3             his riding  ability,  and his machine's performance,
 4             agility  and reliability,  and it is imperative
 5             that as  an  aircraft  be airworthy, so it is
 6             imperative  that a motorcycle be roadworthy.
 7                    "The  motorcycle  operator  must be able
 8             to avoid wayward automobiles to the extent
 9             that the proposed standards adversely affect
10             the basic functions  of motorcycles by
11             increasing  bulk and  weight, by  decreasing
12             engine breathing efficiency, and imposing
13             horsepower  penalties by diminishing the
14             motorcycle's agility through a  raised center
15             of gravity,  they adversely  affect the rider's
16             safety.
17                    "From the viewpoint of safety, a
18             motorcycle  must run  well and reliably. To
19             insure that it does, it must be properly
20             maintained.  This routine maintenance is
21             best performed by the  rider. He saves
22             money.   He  learns to watch  potential trouble
23             spots.   And he will  do a more conscientious
24             job than a  disinterested mechanic.  The
25             BMWMOA encourages its  members to master
26             the routine maintenance to  the  extent the
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                                                              70
  1              proposed standards discourage owner
  2              maintenance by making such maitenance more
  3              difficult, more time consuming.
  4                    "It also adversely affects the
  5              owner's safety by requiring more complicated
  6              water cooled,  multi-cylinder engines.  The
  7              proposed standards discourage owner maintenance
  8                    "The above considerations establish
  9              clearly that the 78 decibel standard is not,
 10              and will not,  in the foreseeable future, be
 11              feasible or acceptable.
 12                       "b.  The 80 decibel standard:  The
 13              80 decibel standard appears to differ from
 14              the 78 decibel standard only in the extent
 15              of its adverse impacts on motorcycling.
 16                    "On Page -67 of the Background Document
 17              it is noted that some manufacturers question
 18              that an 80 decibel standard can be met
 19              without major  redesign on some models.
 20                    "For the reasons stated above,  the
 21              BMWMOA opposes a standard which requires a
 22              major redesign,  as defined by EPA,  in view
23              of the fact that 83 decibel (A)  an
24              acceptable level of noise,  and in view of
25              the limited edition increment in the
26              reduction of noise impact,  the 80 decibel
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                                                              71
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provides over the 83 decibel, which  is
fifty-two per cent as compared  to  forty-
three per cent.
      "This standard does not appear
reasonable, given the impacts on motorcycle
performance and safety, and  the added cost
to the consumer.
      "Conclusions:  EPA has not established
that unmodified motorcycles  currently present
any significant noise problem,  or  that  they
will in the future.
      "EPA has reasonable basis for  identifying
modified and certain after-market  exhaust
systems as constituting a noise impact
problem which may be regulated  under the
Noise Control Act.
      "Given the motorcycle  industry's
history of self-policing, and given  the
existence of local noise and nuisance
ordinance which, if properly enforced,
could adequately address the noise impact
of loud modified and after-market  exhaust
systems, EPA has not convinced  the BMWMOA
there is any real need for the  establishment
of any motorcycle noise standards.
      "The BMWKOA could accept  an  83 decibel
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                                                             72
 1              standard which would apply to all motorcycles,
 2  .            and  after-market exhaust systems, subject to
 3              the  following conditions:   This proposed
 4              standard will be economically feasible so
 5              that foreign manufacturers presently exporting
 6              motorcycles  to the United States can continue
 7              exporting motorcycles to the United States,
 8              and  the  domestic motorcycle manufacturer can
 9              continue producing its  product."
 10              Thank you.
 11              CHAIRMAN THOMAS:   Thank you,  Mrs. Plant.  You
 12  were not here on Saturday,  I take  it,  or on Friday?
 13              MRS.  PLANT:   No.   I wish I had been.
 14              CHAIRMAN THOMAS:   I just want you to be reassured
 15  that we're  still batting a thousand in here because no  one
 16  has told us we're doing the right  thing yet, so you're
 17  still  in the game.  (Laughter)
 18              MRS.  PLANT:   If you look at the statements in
 19  there, it may be a'little embarrassing.
 20              CHAIRMAN THOMAS:   We will  not ask you any question
 21  dealing with the substance of the  testimony that you have
 22  presented since  you have already indicated that you were
 23  asked  to present it by  a third party.   That's fine.
24             MRS.  PLANT:   As  an emissary.
25              CHAIRMAN THOMAS:   I would  ask,  specifically,
26  however, that BMWMOA urge BMW to testify before the U.S.  EPA
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                                                             73
 1   as  a manufacturer of products distributed in the United
 2   States.   As  of this date,  they have not indicated that they
 3   are going to appear before this hearing panel subsequently
 4   that are going to be held  in Tampa or in Washington, D.C.
 5             We believe,  clearly, they should be present to
 6   present  the  technical views  of what their manufacturing
 7   competence really is to meet the standards, and what their
 8   potential costs would be.
 9             MRS. PLANT:   I  thoroughly agree with that, and I
 10   will be  making a  phone  call.   Would you like me to get in
 il   touch with BMW North America and urge them to appear?
 12             CHAIRMAN THOMAS:   Obviously,  that's your decision
 13   how best you want to do it,  but obviously, since the owners
 14   take a very  strong position  on here and have seen fit to
 15   speak to the competence of the manufacturer as to what he
 16   can or can not do,  we think  that it would be desirable to
 17   have the manufacturer standing in front of us also.
 18             MRS. PLANT:   Then I will need the information as
 19   to  — well,  no, I can take care of that.   Thank you.
 20             CHAIRMAN THOMAS:   Thank you.
 21             Are you aware of  the California laws on ...
 22             MRS. PLANT:   Oh,  yes.
23             CHAIRMAN THOMAS: .  . .motorcycle noise .  .  .
24             MRS. PLANT:   I was  born and  raised in California.
25             CHAIRMAN THOMAS:   .  .  .  just when .  .  .
26             MRS. PLANT:   I  remember Hendersons,  too.   (Laughter)
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                                                             74
 1              CHAIRMAN THOMAS:   Did you have one?
 2              MRS.  PLANT:   I wish I did.
 3              CHAIRMAN THOMAS:   You're aware, then, that
 4   California regulations  — California statutes -- as currently
 5   written will impose not only noise levels that EPA has
 6   proposed to issue,  but  go far beyond those in stringence?
 7              MRS.  PLANT:   Yes.
 8              CHAIRMAN THOMAS:   Are you aware that at such time
 9   as  EPA's regulations become  effective,  whatever they may
 10   be,  they preempt the State of California statutes?
 11              MRS.  PLANT:   That I hadn't determined.
 12              CHAIRMAN THOMAS:   I think you might find from a
 13   manufacturer's perspective that they would be much more
 14   amenable to dealing with the Federal government on this
 15   issue,  perhaps,  than they are with the  State of California,
 16   and Oregon,  and  Florida,  and,  and, and; and . .  .
 17              MRS.  PLANT:   It should be uniform.
 18              CHAIRMAN THOMAS:   .  .  . that's essentially the
 19   position that has been  taken.
 20              If EPA issues  regulations — and this is a semi-
 21   lecture,  if you  will --  if EPA issues regulations, they can
 22   only do so under the statute by first identifying that there
23   is,  in  fact, a problem  — that you have so well addressed,
24   that there appears  to be  some question  as to whether there
25   is  or not;  secondly,  determine what technology is available
26   to  meet that problem, and what the costsof compliance are.
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                                                             75
 1              In other words,  EPA can not simply issue a
 2   preemptive regulation to protect the manufacturers of these
 3   products without requiring  that something be done, because
 4   there has to  be a problem,  so we could not, as it were,
 5   regulate after-market systems specifically in this regard,
 $   modifications,  for example.  Our authority deals with the
 7   newly manufactured products only,  and so we are limited
 8   there within  the statute by what we can do, so we can't be
 9   the environmental preemptive agency unless there are clearly
10   benefits to be achieved by  issuing such Federal standard
11   that sets that national uniform level.
12              The manufacturers are clearly beset by a serious
13   problem, divergent state and local standards on their
14   products.
15              The Common Market likewise is — EEC — is probabl
16   going to be causing as much difficulties for BMW as the
17   United States is making.
18              Well, that's my  editorial addition.  Thank you.
19   Let me ask my colleagues if they have any questions.
20              MR.  KOZLOWSKI:   Mrs. Plant, I would like to ask
21   you just a few questions, not as a representative of BMW,
22   in a way, but as a citizen  and a biker, a motorcycle rider.
23              First, have you  ever modified a bike?
24              MRS. PLANT:   No, I don't approve.
25              MR.  KOZLOWSKI:   You know lots of people who are
26   cyclists.  Do you know people who  do modify bikes, and
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                                                              76
 1   would you .  .  .
 2              MRS.  PLANT:    There is a fourteen year old right
 3   on the block that I'm going to cream.  (Laughter)
 4              MR. KOZLOWSKI:   Another good thought, but why
 5   do — fourteen year olds ride bikes?
 6              MRS.  PLANT:  It's not even street legal.  We've
 7   had the police on him twice, but his parents won't do
 8   anything.   They  think he's funny.  He does wheelers down a
 9   twenty-five  mile per hour  limit residential street.  This
 10   is the problem.   This is what's caused all this.
 11             MR. KOZLOWSKI:   Why do people modify their bikes?
 12   Do you know  people other than fourteen year olds?
 13             MRS.  PLANT:  For kicks.   You were fourteen years
 14   old once.   (Laughter)
 15             MR. KOZLOWSKI:   I could never afford a motorcycle
 16   when I was fourteen.
 17             MRS.  PLANT:  It didn't have to be a motorcycle.
 18   Get away with something.   All kids  do it,  one way or another,
 19   not just motorcycles, it could be one way or another.   You
 20   know,  they're fourteen years old.   They can't help it.
 21             MR. KOZLOWSKI:   So you think the problem is
 22   really then  of young  people modifying bikes,  not of ...
23             MRS.  PLANT:   Yeah,  young,  or perennial sophmores.
24   (Laughter)
25             MR. KOZLOWSKI:   Now,  I've got to stop.   I don't
26   know what you're saying.   (Continued laughter)
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                                                             77
 1             MRS.  PLANT:   It's  a certain type of person, you
 2   know,  just like  this  (indicating).   They want to be
 3   different.   They want to get  attention.   It's an attention
 4   getter,  that's what it  is.
 5             MR. KOZLOWSKI:   That really means, though, if you
 6   look  at  it as a  hard  fact,  that that's almost an impossible
 7   problem  to solve.
 8             MRS.  PLANT:   It's  on a  local  basis; strictly a
 9   local  basis.
JO             MR. KOZLOWSKI:   Okay.   Thank  you.
11             MR. PETROLATI:   Do you  have any idea how many
12   members  of the MOA  would actually  modify their motorcycles?
13             MRS.  PLANT:   Very  few.   They're not that kind of
14   people.
15             MR. PETROLATI:   Okay.   You seem to relate the
16   problem  of modification strictly to the  younger people in
17   general.  Do you think  there  would be a  problem with the
18   younger  people who  generally  ride  the mopeds  in great
19   numbers  doing the same  things as well as the  motorcycle
20   operators?
21             I guess  I  should use the terms.  Supposedly, we
22   have identified  the mopeds  as motorcycles,  but in your mind,
23   do you see the moped  being  as modified?
24             MRS.  PLANT:   If  it makes noise,  and you do
25   something that the  establishment doesn't approve of, yes.
26   (Laughter)
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                                                             78
 1             MR.  PETROLATI:   Okay,  that's fine.  Thank you
 2  very much.
 3             CHAIRMAN  THOMAS:   Let  the record show that the
 4  counsel has  identified himself as  a perennial sophmore.
 5  (Laughter)
 6             MR.  NAVEEN:   That's what I have.
 7             MR.  EDWARDS:  Mrs.  Plant, I have a single question
 8  and perhaps  you can't  answer it, but, do you, as someone who
 9  is familiar  with :BMW motorcycles have a feeling that over the
10  last several years that they are perhaps louder than they
11  were a decade ago?
12             MRS.  PLANT:   Are  you speaking of BMW motorcycles?
13             MR.  EDWARDS:  Yes,  BMW  motorcycles specifically.
14             MRS.  PLANT:   Let's  say  you go ten years,  it
15  applies to.  It's a  different  sound.  It's  on a — what the
16  decibel — no -- in tone, then  it's a little higher,  the
17  exhaust; it's on a higher  level.   But I wouldn't say it's
18  any noisier.  I  liked  the  sound of the old  Slash too,  you
19  know.  It was low.   But as  far as  being louder,  I don't
20  believe so.
21             MR.  EDWARDS:  Okay,  fine.  Thank you very much.
22             CHAIRMAN  THOMAS:  Mrs.  Plant, I  thin you  have
23  very ably, indeed, represented your organization before us.
24  Thank you for your time in coming  here and  giving us your
25  views.
26             MRS.  PLANT:   Thank  you.
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                                                             79
           CHAIRMAN THOMAS:  We will consider  them much
more closely before the final rules are issued.   Thank  you.
           Our schedule shows Mr. John Walsh is next,  from
Suzuki.  However, we have a number of questions which we
are going to want to address, with Suzuki.
           We have a Mr. Frank Puccilli who has asked  to
speak as a private citizen, before us.  Therefore,  I would
like to take Mr. Puccilli out of the schedule  that we have
and ask him if he would care to speak at  this  time.
                      FRANK PUCCILLI
           I could not attend the previous meetings, which
were on Friday and Saturday, because -- well,  anyway — and
so I am here today, and I just represent myself,  I don't  —
there is no organization or persons that  I speak  for, and I
really came here to listen, and then I was asked,  you know,
to give, you know, a few words.  I'm not prepared to speak,
and it wouldn't do any good if I were prepared because  I'm
sure it wouldn't be, you know, any more — whatever, and
I want to, before I begin, I would like to ask your indulgence
for whatever I ramble, or if I get a little emotional,  or
whatever.
           I'm Frank Puccilli, and I live in Irvine here,
and I remember, a fellow was talking about Harley-Davidson,
it brought some things to my mind.
           In 1936, my brother, who was a motorcycle racer
and a motorcycle mechanic in San Francisco, where I was born
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                                                             80
  1   and have lived all my life in California, in 1936 he drove
  2   the ambassador from China in a parade in San Francisco in
  3   a white motorcycle with a side car, a Harley-Davidson, and
  4   he worked for a fellow Hap Jones who was a great motorcycle
  5   racer and dealer for Harley-Davidson in San Francisco.
  6              And I bought my first motorcycle in 1947 right
  7   after I got out of the army in the Second World War, and I
  8   do landscape work,  and I work with rotor tillers and I
  9   work with trenchers,  and I work with part of the time
 10   maybe two or three days —
 11              I do that kind of work.  As probably most of
 12   you know,  it's noisy,  and I also do planting, and I draw
 13   sketches.   Maybe I'll do that for three or four days which
 14   is quiet.
 15              And the reason that I mention this is because
 16   whether I do noisy work or whether I do quiet work noisy
 17   motorcycles disturb me, you know.  Whether I have a lot of
 18   days of noisy work and I hear these motorcycles I think,
 19   well, just because I hear a lot of noise, you know,  this
20   is bothering me,  and then I do a lot of quiet work and I
21   hear this and it disturbs me just as much.
22              Maybe the word I'm look for is rep-re-hens-ible?
23   Is that right?  Is that the word that I want?  Reprehensible
24   to me motorcycle noise.
25              And I would just like to interject here that I
26   was -- when we were in Italy and we were trying to look at
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                                                             81
 1   the Forum over there and the Parthenon and whatever, all
 2   these  beautiful things,  and these motorcycles, so many and
 3   so  noisy,  just an impossible situation,  and it strikes a
 4   lot of fear into me that we're going to  get into this kind
 5   of  condition over here.
 5              And I talked  to a woman in the street about that,
 7   and I  said,  "What about  this terrible noise you have here
 g   going  on all the time?"  and she said, "Well we're not
 g   content with it.  We're  going to try to  do something about
}Q   it."  But it just seemed like it was almost too late.
jj              Okay, one of  the things I want to mention that
12   can apply directly to me, is I'm stopped at a stop sign and
13   some guy comes up to me  with a motorcycle and I got to rush
14   around and roll up the windows and even  with the windows
15   rolled up there's nothing I can do about that terrible
lg   noise  that assails me.
17              Standing on the street corner, or the place where
13   I live,  and trying to talk to a neighbor, or trying to work
19   in  my  garden,  and some yard work a little bit, and the
20   motorcycles  come by, and it interrupts conversation, and it
21   causes a great deal of stress in me while that noise is
22   going  on,  and it continues after it's gone.  One guy in a
23   motorcycle is  disturbing sixty-three people, right where I
24   live.
25              In the morning when I'm trying to sleep, or I'm
26   inside the house trying  to read,  or I'm  eating my dinner,
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                                                             82
 1   you know,  after  a day  of stress  and anxiety, my house is
 2   my  sanctuary,  hopefully, and hear this noise intruding on
 3   me.
 4             Well,  even  going camping,  try to get through to
 5   nature,  and  trees,  greenery, nature,  I must have quiet, a
 6   little peace and quiet,  and it is impossible because people
 7   have  to  have these motorcycles making all this noise.
 8             And I just  want to add a little bit in here
 9   about — and though I  don't have any facts and figures about
10   decibels,  or where or  how a motorcycle operates, I have
Jl   ridden them  all  of my  life, and I know about the background
12   of  motorcycles,  and everything — I don't know the
13   technicalities of this air cooled versus water cooled --
14   but I do know and I have driven Volkswagens which are air
15   cooled engines — and  I do know that Volkswagens are not
16   hacking  it any more over emissions so they are not making
17   air cooled engines any more.
18             So I  don't  know what the problem is going to be
19   with motorcycles but,  you know,  we have to take that into
20   consideration.
21             Okay.  In conclusion what I'm going to say then
22   is  that  someone  before me and I think it was the previous
23   speaker  of Harley-Davidson motorcycles said, is about
24   education, which I think is a marvelous thing; eduction,
25   of  course, for those that will be educated, regulation for
26   those who won't  educate.
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                                                             83
 1              Now,  I believe that the Environmental Protection
 2   Agency,  an outstanding organization,  it's doing great things,
 3   it's what we need,  and without it we'd be in a terrible set
 4   of circumstances  today,  and we will be in a terrible set of
 5   circumstances if  we don't get the Environmental Protection
 g   Agency to work on these matters on a national level.
 7              I believe that the little I know about this,  if
 g   I may make this statement,  the Environmental Protection
 9   Agency has to begin with the manufacturer,  to work with
JQ   motorcycles  and to  regulate motorcycles,  and also the state
jj   must do  this,  with  the EPA with the new motorcycles and
12   the state with the  new and the used motorcycles,  and we
13   were talking a moment earlier about these young persons
14   who get  these motorcycles and modify  them,  I've done that
15   myself,  put  a straight pipe on a motorcycle,  but I will
15   say "when!"  I want  to use the word when --  when the
17   Environmental Protection Agency regulates this,  and the
18   state regulates this,  and the child sees  that his father's
19   motorcycle is  regulated,  then there's  going to be a lot more
20   control,  and the  education is going to work far better.
21             Okay.  In conclusion I want to say I'm not
22   talking  about motorcycles today,  and  I'm  not talking about
23   motorcycles,  I'm  talking  about human welfare,  I'm talking
24   about making the  environment or the place,  you know, for
25   ourselves  and for our children something  that we can live
26   with,  and noise is  something,  in  my opinion,  that makes  the
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                                                             84
 1   environment: and causes additional stress and anxiety that I
 2   don't need,  and I want to have a situation that I lived in
 3   that is  going to enhance my quality of life.
 4              CHAIRMAN THOMAS:  Thank you, Mr. Puccilli.  A
 5   very helpful statement,  indeed.
 6              Mr.  Kozlowski, do you have a question to pose?
 7              MR.  KOZLOWSKI:  No.  I would just like to say
 8   that we  do  have the facts and figures how noise affects the
 9   quality  of  like,  but the facts and figures just don't
 10   communicate the same type of thing that you, as a citizen,
 11   did very eloquently.
 12              I would like  to thank you for coining down here
 13   and speaking to us.
 14              CHAIRMAN THOMAS:  We  have got one more question
 15   here,  I  think,  if you will bear  with us for just a second.
 16   There are a couple of people that want to ask you questions,
 17   if  you don't mind.  Thank you.
 18              MR.  PETROLATI:  Mr. Puccilli — I hope I'm
 19   pronouncing  that right.   I have  a little problem with
20   Italian  names   (Laughter) — I  guess the only question I
21   have for you:   The motorcycles that you've been bothered
22   by,  have you been able to notice whether they've been
23   modified motorcycles or  have they been original equipment
24   motorcycles?
25              MR.  PUCCILLI:   That's difficult to say, you know,
26   because  a motorcycle goes by, and I'm not able to get close
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                                                             85
 1   to it  to identify it.   It seems  to me prdeominantly,  I
 2   would  say, it's motorcycles  that have been modified,  but
 3   I think I have, you know, just off the top of my head, I
 4   have seen some motorcycles,  I  have talked to persons  about
 5   it, I  have talked to young persons about these things,
 6   "Oh, no, we haven't done anything to is," and of course I
 7   can tell whether it's modified or not, in my opinion, but
 8   then sometimes, I'm sure I'm not —  I can't ascertain for
 9   absolutely certain.
10             MR. PETROLATI:  Thank you very much, Mr. Puccilli,
11             MR. EDWARDS:  Mr. Puccilli, I think you may have
12   disturbed our perfect batting  average that Mr. Thomas
13   referred to earlier by  telling us that perhaps we're doing
14   the right thing.
15             Just following up on  Vic's question:  Are there
16   motorcycles on the  streets today that you have noticed
17   visually that you thought had  an acceptable sound level?
18             MR. PUCCILLI:  Unquestionably.  Yes, I think
19   that  I have heard some  motorcycles.
20             MR. EDWARDS:  So, some of the motorcycles on the
21   road  today are okay.  It's just  the  louder ones where they
22   happen to be  louder by  manufacture or by modification?
23             MR. PUCCILLI:  I've seen  what I believe to be --
24   again, I haven't stopped and actually really looked at them
25   closely,  The ones  that I have dealt with are acceptable.
26   And  they looked brand new, and these were quiet.
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                                                             86
 1              MR.  EDWARDS:   Thank ycu very much.
 2              CHAIRMAN THOMAS:   Thank you, sir.
 3              I would like  to hear now from John Walsh,
 4   representing U.  S.  Suzuki Motors Corporation.
 5                           JOHN WALSH
 g                    (Accompanied on the dais by Mr.
 7              N. Nakamura and Mr.  K.  Hirano.)
 8              Thank you,  Mr.  Thomas.   We weren't trying to
 9   rival  EPA  in preparing a big document (referring to
 1Q   written  submission).   The written portion of our statement
 11   is just  the beginning, and a lot of the material is just
 12   attachments.
 13              Good morning.   My name  is John Walsh.  I'm
 14   Senior Staff Engineer  in the Safety and Legislation Departmenl
 15   at U.  S. Suzuki.  With me  today is  Mr.  N.  Nakamura, to my
 15   left,  also  Senior Staff  Engineer in the Safety and
 17   Legislation Department.  And to Mr.  Nakamura's left is Mr.
 18   K. Hirano,  until  recently  Manager  of the Technical Division
 19   at Suzuki Motor  Company.
 20              Suzuki Motor  Company, Limited,  would like to take
 21   this opportunity  to comment  on  the  motorcycle noise
 22   regulations proposed by  the  Engironmental  Protection Agency.
 23              First, Suzuki would  like to  express its appreciation
 24   to the EPA  for working very  hard to understand the motorcycle
25   noise  problem.  Suzuki especially  appreciates the cooperative
26   attitude EPA has_shpwn in  developing its proposal.   Suzuki
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                                                              87
  1   shares the goal of EPA Co reduce the impact of motorcycle
  2   noise on the public,  and to reduce the public annoyance
  3   caused by motorcycle noise.
  4              Turning to the policy of the United States and
  5   EPA,  Section 2(b)  of the Noise Control Act of 1972, as
  6   quoted by Mrs.  Plant, states that,  "It is the policy of  the
  7   United States to promote an environment for all Americans
  8   free  from noise that jeopardizes their health and welfare."
  9              Suzuki recognizes its responsibility in
 10   furthering this policy,  and is willing to accept its fair
 11   share of the burden to improve the American environment.
 12              The  proposed regulation, however, would require
 13   motorcycle manufacturers to carry far more than their fair
 14   share of the noise control burden.   The regulation must be
 15   amended to treat motorcycles fairly.
 16              EPA's national noise stragety document states:
 17   "The  primary goal of the Agency in the noise pollution area
 18   is to promote an environment for all Americans free from
 19   noise that jeopardizes their health or welfare.  In order
 20   to reach this legislatively mandated objectives, five
 21   specific operational goals have been formulated.  These are:
 22                    "A.   To take all practical steps
 23              to eliminate hearing loss resulting from
24              noise exposure;
25                    "B.   To reduce environmental noise
26              exposure to an Ldn value of no more than
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                                                             88
 1              75 dB  immediately;
 2                    "C.   To  reduce noise exposure levels
 3              to Ldn 65  dB by  vigorous reulatory and
 4              planning actions;
 5                    "D.   To  strive for an eventual
 g              reduction  of noise  levels to an Ldn of 55
 7              dB;  and,
 g                    "E.   To  encourange and assist other
 g              Federal, State and  local agencies, in the
10              adoption and implementation of long range
11              noise  control  policies."
12              Further, Addendum "a" to the strategy document
13   states  that:  "EPA will give its greatest emphasis to the
14   abatement  of  noise sources  which result in the most serious
15   impact  on  the public."
lg              Suzuki agrees  with  these goals.  The proposed
17   regulation, however,  must be substantially revised to bring
18   it within  these Agency goals.
19   •           EPA  states, in the  preamble of the proposal,
20   that:   "The standards in  this  proposed rulemaking are
21   consistent with the Agency's overall objective to quiet all
22   major noise producing products in order to ultimately
23   reduce  the total  noise emitted from all transportation
24   vehicles."
25              Again, unless  substantial changes are made in the
26   proposal in recognition of the unique realities of motorcycle
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                                                             89
 1   noise control,  Suzuki feels that EPA's approach to
 2   motorcycle noise control is grossly inconsistent with the
 3   Agency's  overall objective.
 4              Finally,  Executive Order 12044 states the
 5   following:   "Regulations shall be as simple and clear as
 6   possible.   They shall achieve legislative goals effectively
 7   and efficiently.   They shall not impose unnecessary
 g   burdens on the  economy,  on individuals, on public or
 9   private organizations,  or on state and local governments."
10              Suzuki totally agrees with this policy.  The
11   proposed  regulation,  however,  must be significantly
12   redrafted to comply with this  Executive Order.
13              Although  control of motorcycle noise is a
14   complex area, the proposed regulation is so unnecessarily
15   complex that it is impossible  to understand in some
16   sections,  and requires  much unnecessary testing, reporting
17   and record keeping,  in other sections.
18              Turning to Suzuki Motor Company policy in the
19   motorcycle  noise  control area,  Suzuki Motor Company fully
20   supports  the goals of reducing environmental noise.  All
21   producers  and users of  noise producing products must do
22   their share to  reduce environmental noise.  In this way,
23   Suzuki is willing to  support reasonable,  simple and clear
24   regulations, which reduce motorcycle noise.
25              For  the street motorcycle,  Suzuki fully supports
26   an  83 dB  regulation for  street motorcycles and  replacement
        (713) 437-1127
                     HACAUUEY ft MANNING. SANTA ANA. CALIF.
                                                      (714) *38 9400

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                                                              90
 1   exhaust systems.   At such a level, motorcycles will be nearly
 2   as  quiet as automobiles in normal operation, and the cost
 3   burden borne by manufacturers and consumers will be comparabl
 4   to  the burdens  imposed by the EPA medium and heavy truck
 5   regulation.
 5              Through independent research, Suzuki has confirmed
 7   that  there  is considerable public concern about motorcycle
 g   noise.   The section of our contract report which deals with
 9   this  subject-is attached to our written comments.
10              Approximately two-thirds of the people interviewed
11   as  part of  this research indicated that, although they were
12   very  concerned  about motorcycle noise,  they were annoyed by
13   very  few, or a  small number of especially noisy motorcycles.
14              EPA  must address this minority of noisy motorcycle
15   before  public annoyance is reduced,  and before benefits of
lg   further reductions  in new motorcycle noise can be realized.
17              Using EPA's own data, seventy-five to ninety per
18   cent  of the  projected benefits of a 78  dB regulation can
19   b'e  attained  at  the  83 dB level at only  fourteen per cent of
20   the total cost  of a 78 dB standard.
21             Although regulation of motorcycles at the 83 dB
22   level is less cost  effective  than the 80 dB truck regulation
23   adopted by EPA, Suzuki supports  83 dB as an initial regulator;
24   level.  The  analysis  which supports  these comments  is also
25   attached to  our written comments.
26             Regulation of motorcycles  to the 80  dB level,
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                                                             91
     however,  would only provide seven to twenty per cent
     additional  benefit, but would cost over three hundred per
     cent more.   Such a strategy would not only be much less
     cost effective than the 83 dB level, but would burden
     motorcycle  manufacturers five times more heavily than truck
     manufacturers.  This could not be tolerated.
                Of course,  analysis of the 78 dB level shows
 8   that it is  completely unreasonable.
 9              Cost effectiveness and fairness are not the only
 10   arguments which show that the 83 dB level is the only
 11   standard which should be considered.  The realities of the
 12   motorcycle  noise situation demand this.
 13              At any regulatory level, whether 83, 80 or 78
 14   dB,  over eighty-five per cent of the projected benefits will
 15   result from control of modified exhaust systems through the
 16   replacement exhaust system regulation, and state and local
 17   enforcement.
 18              EPA's projections of benefits, in this area,
 19   depend on two totally unproven assumptions:
 20                    1.  That the exhaust system
 21              regulation will reduce the number of
 22            -modified systems by about one-half; and,
 23                   _ 2._  That state and local
 24            _ enforcement efforts  will reduce the
 25              number of modified systems  by an
26             ^additional percentage to reduce the
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                                                              92
 1              total to twenty-five per cent of the
 2              current modified systems.
 3              In other words, unless EPA's assumptions prove  to
 4   be true,  over eighty-five per cent of the projected benefits
 5   will never be realized,  despite the very high costs which
 6   the manufacturers would be forced to bear, from between
 7   fifty to  eighty-five per cent ot the total program cost,
 8   even if the program proves ineffective.
 9              The experience of the State of California, long
 10   a leader  in noise enforcement, indicates that the benefits
 11   which EPA projects to result from enforcement are quite
 12   optimistic.  EPA's assumption regarding projected benefits
 13   from the  exhaust system  regulation is completely untested
 14   at this time.
 15              Suzuki feels  that the assumption is somewhat
 16   optimistic, but we have  no data to support this feeling, just
 17   as EPA has no  data to support its assumption.
 18             Because Suzuki is committed to fair and effective
 19   noise control,  we do not suggest that the EPA program
 20   simply stop at a regulatory level of 83 dB.
 21              What we propose is, as follows:
 22                    1.   An  83 dB regulation should be
 23              adopted effective the 1982 model year.
24                    2.   And 80 dB standard should be
25              proposed to be effective for the 1989
26              model year; and,
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                                                            93
  1                    3.   The regulation should provide
  2              that the  80 dB standard will become
  3              effective only after a public hearing in
  4              1986 and  1987, and findings by EPA that
  5              the exhaust system portion of their
  6              regulation was producing the benefits
  7              projected,  and that state and local
  8              enforcement efforts were producing
  9              subtantial benefits.
 10                    (Whereupon,  Chairman Thomas
 11              left the  hearing panel.)
 12              This approach would allow -- I hope I didn't drive
 13   Mr.  Thomas  away.   Will he be back?
 14              MR.  KOZLOWSKI:  Yes, he'll be back.  He had to
 15   make a call to Washington.  He left me in charge.
 16              MR.  WALSH:   This approach willl allow for further
 17   reductions  in motorcycle noise as necessary and fair, and
 18   would prevent unnecessary costs being forced on manufacturers
 19   and  consumers to  pay for benefits that the American public
 20   will never  hear.
 21              Since  we  have shown that the 80 dB standard is
 22   not  yet justified, and will only be justified if EPA's
 23   assumptions prove true,  it is clear that the 78 dB standard,
24   which would provide  only four per cent additional benefit,
25   but  at over twice the  cost of the 80 dB standard, and over
26   twelve times the  cost  of the  83 dB standard, should not even
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                                                             94
 1  be  proposed  as  a  future  goal at this time.
 2             The  78 d3  standard will not be justifiable until
 3  all other  transportation noise sources are  made much quieter,
 4             Suzuki suggests  that the initial effective date
 5  be  delayed until  the  1982 models.   1980 model designs will
 6  be  finalized by the end  of  this year,  when  we begin to
 7  certify  these motorcycles to EPA's exhaust  emission
 8  standards.
 9             Because there is  still  some uncertainty about the
10  test  procedure  which  we  must use for noise  certification,
11  Suzuki can not  finalize  our model  design for noise control
12  until after  the final rule  is promulgated.   We do not
13  expect final promulgation for at least another year.
14             In order to insure that we have  at least one year
15  lead  time  to meet the first regulatory level, we suggest the
16  1982  model year as the effective date of the first standard.
17             Suzuki suggests  that the Society of Automotive
18  Engineers  Recommended Practice J-331a be used to test for
19  compliance.  Suzuki feels that J-331a is not significantly
20  different  than  EPA's  test procedure, and that the benefits
21  of  using an  accepted  consensus standard outweigh any
22  deficiencies of the test.
23    -  -   -   Furthermore,  J-331a is  under review by the SAE
24  at  this  time, and any deficiencies may be removed by the
25  revision process.
26   :---  -  	Regarding  off-road motorcycles,  Suzuki feels that
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                                                             95
  1   the noise problem caused by off-road motorcycles is far less
  2   severe than the street motorcycle problem.  Suzuki's research
  3   indicates that only four per cent of the people are annoyed
  4   by motorcycles in the off-road environment compared to
  5   sixty eight-point-six per cent in the street environment.
  6              An additional fifteen-point-four per cent were
  7   annoyed by motorcycle operations  in vacant lots, a
  8   particularly complex land use, motorcycle misuse,
  9   enforcement problem.
 10              Because public concern with off-road noise
 11   is much lower than with street motorcycle noise, because
 12   twice as many off-road motorcycles are modified as  are
 13   street motorcycles,  and because enforcement of off-road
 14   motorcycle use is a problem much  larger than even street
 15   motorcycle enforcement,  Suzuki feels EPA is attempting to
 16   accomplish much more  than can realistically be accomplished
 17   in the off-road noise control field.
 18              Suzuki supports  the goal of reducing the impact
 19   of off-road motorcycle noise.   As with street motorcycle
 20   noise,  however,  almost all  of the benefits to be achieved
 21   by the EPA proposal depend  upon the unproven assumptions
 22   regarding the effectiveness of the exhaust system regulation,
 23   and the effectiveness of state and local enforcement efforts.
 24              Because the assumptions are even more tenuous
 25   in the off-road area  than in the  street area, Suzuki
26   suggests that a reasonable  initial sound level be adopted
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                                                             96
 1   for off-road motorcycles for 1982 models, that a reasonably
 2   lower sound level be proposed for seven years after the
 3   initial level,  and that a public hearing, and certain EPA
 4   findings  of effectiveness,  be made two years before the
 5   effective date  of the lower standard.
 6              In essence,  EPA must recognize that Federal
 7   regulations are of limited effectiveness in controlling
 8   local use of frequently modified off-road motorcycles.
 9              Since Suzuki wants to work with EPA  to make
10   Federal regulations as  effective as possible, a five-year
11   review will be  necessary to determine the effectiveness of
12   the regulation.   Otherwise,  the manufacturers and consumers
13   would be  forced to pay  for technology which does not produce
14   any benefits.
15              At this time,  Suzuki is unable to suggest a
16   specific  off-road strategy to EPA, other than the outline
17   mentioned above.
18              While our general approach is outlined above,
19   we  have not yet determined the sound level limits which
20   represent the balance of costs and benefits.  Suzuki will
21   submit a  specific recommendation to EPA before June 16th.
22              Suzuki feels that the complexity of the proposed
23   regulation is a major problem.  Simplicity is crucial to
24   the motorcycle  noise regulation.
25              Ninety per cent of the benefits of the regulation
26   depend on reductions in the number of  modified motorcycles.
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                                                              97
 1   ^o meet this  objective,  federal, state and local governments,
 2   must be able  to understand and enforce the regulation.
 3   Motorcycle manufacturers and exhaust system manufacturers
 4   must be able  to understand and comply with the regulation.
 5   And dealers and customers must be able to understand the
 $   regulation, and the goals of the regulation.
 7              The current proposal is a model of complexity.
 3   Motorcycle noise control is a complex area.  But the
 9   current proposal "goes far behond what is necessary to
10   accomplish EPA's goals.
11              The essential parts of the noise control
12   regulation are as follows:
13                    1.  Manufacturer certification of
14              new motorcycles.
15                    2.  Certification of replacement
16              exhaust systems.
17                    3.  Providing an effective method
18              for in-use enforcement of motorcycle
19              sound levels.
20              The Motorcycle Industry Council has developed a
21   program which addressed these needs.  The MIC program sets
22   out in twelve pages a far more equitable, equally stringent,
23   noise control program,  while it has taken EPA almost one
24   hundred and fifty pages  to address the same issues.
25              Admittedly,  some of these pages are necessary
26   to structure  the proposal in the Federal regulatory manner,
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                                                             98
 1  but most of  the  length  of  the  proposal results in confusion,
 2  duplication,  frustration and added cost.
 3             The following aspects  of the regulation should
 4  be deleted:   The Acoustical Assurance  Period,  the Sound
 5  Level Degredation Factor Determination,  Stationary Sound
 g  Level Labeling, Label Verification,  and Selective Enforcement
 7  Auditing.
 3             The following aspects  of the regulation need to
 9  be greatly simplified:  Production Verification,  Vehicle
10  Labeling, Exhaust System Labeling,  and the Organization of
11  the Regulation.
12             The AAP and  SLDF concepts should not be used for
13  motorcycles.  EPA admits that,  "a basic  assumption in our
14  analysis has  been that  the noise  level of  the  motorcycle
15  which is properly used  and maintained  will not degrade,  at
16  least not any appreciable amount."
17             Because of the administrative cost  involved in
18  determining  the SLDF, particularly when  specific  guidelines
19  are lacking,  and since  few, if  any, benefits will result,
20  Suzuki suggests that the AAP and  SLDF  be deleted.
21             If problems  of product durability arise which we
22  do not now see, EPA can require an AAP in  those areas.
23  EPA should not, however, require  an AAP  simply because  EPA
24  has used this concept in other  regulations.
25             EPA should delete Vehicle Stationary Sound Level
26  Labeling.   The only reason for  the  level is  to aid enforcemeni
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                                                             99
 1   No  provision  is  made,  however,  for the situation when a
 2   certified after-market exnaust  system has a higher stationary
 3   sound level than the original system.
 4             The enforcement  officer has no way of knowing this
 5   The owner might  be  unjustly cited for violating a noise
 5   standard  with which he complies.
 7             Suzuki suggests  that the stationary sound level
 8   results for original and after-market  systems be reported to
 9   EPA in writing,  with subsequent distribution to those
10   agencies  performing enforcement testing.
11             A  practical problem  arises  if  the ninetieth
12   percentile is chosen as a reporting level.   How will
13   enforcement officers know whether the  vehicle complies or
14   not?   A ninetieth percentile  value may serve as a guide,
15   but will  not  be  proof.   By  definition,  ten per cent of the
16   vehicles  must exceed this level.
17             A  better system would  provide  for manufacturers
18   to  report fiftieth  percentile levels,  plusc. a fixed number —
19   for example,  two or three dB, to  allow for normal product
20   variability and  test-to-test  variability.
21             Not only would this  serve as a pass-fail
22   enforcement tool, but  it would  be more  helpful to after-
23   market manufacturers,  since they  would know that the original
24   sound  level was  the reported  value minus  the fixed tolerance.
25             Further, manufacturers  can  determine fiftieth
26   percentile values more  accurately with much less testing
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                                                             100
 1   required Co determine ninetieth percentile values.  A fixed
 2   tolerance would also encourage close quality control.
 3              Label verification should be deleted.  Originally,
 4   motorcycle manufacturers offered to perform stationary sound
 5   level testing,  and report the results to EPA for use as an
 6   enforcement tool.   EPA has taken this cooperative suggestion
 7   by  the manufacturers and turned it into a threat to their
 9   business.
 9              Under EPA's proposal, if a manufacturer reports
 10   a slightly inaccurate stationary level, even in good faith,
 11   EPA  can order  the manufactuer to cease to distribute the
 12   motorcycle class.
 13              There is something basically wrong with this
 14   program,  if EPA can punish manufacturers for information
 15   which the manufacturers develop to help enforcement.  A
 16   Cease to Distribute order is a far too drastic approach in
 17   this  area.
 18              The  manufacturers gain no benefit in reporting a
 19   level which is  either too high or too low, so there is no
 20   reason to punish them for making a mistake.  For this reason,
 21   Suzuki's suggestion that the stational levels be reported to
 22   EPA rather than labeled on the motorcycle becomes even more
 23   sensible,  since any mistakes can be rectified by a letter
24   to  EPA,  and EPA notification of enforcement agencies.
25              Another reason for deleting label verification
26   is  because of problems which could arise in exhuast system
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                                                              101
  1   auditing:
  2              First,  the manufacturer must determine the
  3   ninetieth percentile level, and meet this with his
  4   motorcycles.
  5              Next,  the manufacturer may be required to conduct
  6   an exhaust system SEA by the stationary test.
  7              On one  hand,  the stationary value must be exceeded
  8   by ten per cent of the exhaust systems in a label verificatio
  9   test;  and on  the other hand,  all of of the exhaust systems
 10   must meet  the labeled value in the exhaust system SEA test.
 11   EPA should delete  label verification to insure that this
 12   problem never arises.
 13              Selective enforcement auditing — it should be
 14   "SEA11  in my written comments  -- should not be adopted at
 15   this time.  SEA is an expensive program,  unwarranted because
 16   of the minimal benefits  which might be achieved.
 17              Suzuki  is currently using its  test area to full
 18   capacity.   If we are required to prepare  for SEA,  we would
 19   be forced  to  build a new test area, and a new warehouse to
 20   hold batches,  buy  new equipment and train additional personne:
 21              Until the benefits of EPA's exhaust system
 22   regulation, and state and local enforcement, are  demonstrated
 23   SEA will provide no benefits.  EPA already has sufficient
 24   authority  in  Sections  205.159,  and 205.170,  to deal with any
25   problems which may arise with new vehicles and new exhaust
26   systems.
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                                                             102
 1             Again,  EPA should not adopt SEA for motorcycles
 2   just  because  it  exists in other regulations.
 3             The manufacturer's certification burden could be
 4   greatly  reduced  by simplification of the certification
 5   process.   Self-certification and minimized production
 6   verification  requirements — for example,  reporting
 7   certified sound  levels to EPA without all  the additional
 8   unnecessary paper  work manufacturers must  provide, and EPA
 9   must  shuffle  through — would aid greatly.
10             EPA seems compelled, for some reason, to adopt
11   very  complicated,  overly  burdensome, regulations.  The
12   National Highway Traffic  Safety Administration is charged wit
13   administering the  nation's vehicle safety  program.  For
14   over  ten years,  NHTSA has handled this vital program
15   through  complete self-certification by the inanufacturers,
16   and testing by NHTSA to monitory the industry's performance.
17             Suzuki  suggests that EPA study  this approach to
18   regulation rather  than adopt the burdensome reporting
19   approach currently proposed.
20             Another provision of the NHTSA regulatory program
21   should be adopted  by EPA.  Title Forty of the Code of Federal
22   Regulations,  Part  556, provides a mechanism for exemption
23   for an inconsequential defect or non-compliance.
24             EPA should have a similar mechanism for relieving
25   manufacturers from liability in the event  that they make an
26   inconsequential  mistake -- for example, in a reporting
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                                                              103
  1   requirement.
  2              The requirements for exhaust system labeling
  3   should be reduced greatly.   All that should be required on
  4   the product is the manufacturer's name or unique trademark,
  5   the model number of the component and the EPA symbol.  The
  g   rest of the information can be presented in written form
  7   to the customer and to EPA for distribution to enforcement
  3   agencies,  while maintaining an acceptable muffler appearance.
  9   There is no need 'for the date of manufacture to be on the
 10   exhaust system.
 11              Finally,  the regulation is organized in such a
 12   way that it is nearly impossible to follow.  Suzuki recognize
 13   the difficult burden on EPA in writing the proposal, but.
 14   wants to point out that there are far too many sectional
 15   cross-references, and that  even the necessary cross-
 16   references are not organized in a smooth way.
 17              The proposal must be significantly reorganized
 18   and redrafted to bring it within the directives of Executive
 19   Order 12044.
 20              As discussed earlier, enforcement is crucial to
 21   the ultimate  effectiveness  of this proposal.  If enforcement
 22   is ineffective,  the  public  will still be annoyed by noise
 23   from the excessively noisy  modified motorcycles.   EPA
 24   and the manufacturers will  be blamed for doing an ineffective
 25   job.
26              Consistent with  our policy,  Suzuki would like to
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                                                             104
 1  offer  to work with EPA,  or its  contractor,  to develop an
 2  efficient,  effective,  enforcement package,  for state and
 3  local  governments.
 4              In conclusion,  Suzuki supports  the goal of
 5  reducing environmental noise  in an equitable, efficient
 6  manner.  Suzuki has made the  above comments in an effort
 7  to  help EPA develop a  reasonable motorcycle noise control
 8  program.
 9              EPA must substantially revise its proposal, as
 10  outlined in our comments.   Otherwise,  EPA will be attempting
 11  to  accomplish far  more than is  possible,  in a regulation
 12  seriously inconsistent with stated national and Agency
 13  goals.
 14              Suzuki  Motor Company has worked  extensively with
 15  the EPA over the past  three years.  We will continue working
 16  with the EPA to develop a  better,  more realistic regulation.
 17  We  are willing to  carry our fair share of the noise control
 18  burden, but we will not tolerate ineffective, inequitable
 *°  regulations.
 20              Suzuki  intends  to  continue  its review of the
 21  NPRM,  and to submit additional  comments before June 16th.
 22  We  hope our comments today, and our comments at that time,
 23  prove  useful.      ~   ~~   -----    .
2'       -  -  -~  We thank the'Environmental  Protection Agency
^  for this opportunity to express our views,  and we will be
2°  happy  to answer~any questions that"you might have.
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                                                             105
           ACTING CHAIRMAN KOZLOWSKI:  Thank you, Mr.  Walsh,
and Suzuki, for the very detailed comments made on  the
proposal.  We appreciate it.
           I have a whole raft of questions dealing with
enforcement which I would like to go into, but before  I  do
that, let me turn it over the Mr. Edwards to begin  the
questioning.
           MR. EDWARDS:  Mr. Walsh, a great deal  of your
questioning of the proposed standards is based on EPA's
own health and welfare analysis, and perhaps your surveys,
and other results, plus your working of EPA's data. I  think
it would be perhaps inappropriate for me to go too  deeply
into that.  I would be more making statements than  asking
you questions about what it was you have done with  EPA's
data, or are you questioning our assumptions?
           Do I assume that you will be perhaps somewhat
more detailed in your written comments on June 16th
quettioning individual facets of that analysis?
           MR. WALSH:  Appendix "B" of these comments  goes
into some detail regarding our analysis.
           MR. EDWARDS:  Perhaps that is sufficient.   I
don't know.
           MR. WALSH:  We're certainly willing to discuss
that with you at some point between now and June  16th, or
even afterwards, and if more information is necessary, we
will provide more information.
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                                                             106
 1             MR.  EDWARDS:   Okay.   So please don't take my lack
 2   of  questions  on that subject either as ignoring your comments
 3   or  a  lack  of  interest in that area.  I just don't think this
 4   is  the  appropriate forum for us  to go into right now.
 5             I  do have several questions, though, in areas
 6   that  you did  not touch on.   The  first is:  EPA has provided
 7   its own analysis of — it's  own  analysis based in very large
 8   part  on what  the manufacturers have supplied to EPA on what
 9   would happen  at the 78 decibel  level to motorcycle appearance
10   performance,  features, and  the  cost of compliance.
11             Do I take it that since you have not argued, in
12   these prepared remarks,  with the costs that EPA has cited —
13   in  fact, you  used them yourself  — that Suzuki does not
14   feel  that  they are overstated in the case of Suzuki
15   motorcycles?
16             MR.  WALSH:  I have got to respond to that by
17   saying  that,  because of the  somewhat limited time in
18   preparing  for this,  and because  of the time that we used in
19   preparing  the comments that  we  did present, we did not have
20   time, so far,  to go into detailed analysis of the cost data.
21             I  think we are planning to go into that in more
22   detail, and  that will be included in our written submission.
23             MR.  EDWARDS:   Is  that the same situation with
24   regards to the technology required at the various regulatory
25   levels?
26             MR.  WALSH:  Yes.
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                                                             107
 1             MR.  EDWARDS:   That,  of course, is a great
 2   concern we heard  expressed this morning,  the concern that
 3   perhaps every motorcycle  at that level would be necessarily a
 4   liquid cooled cooled motorcycle?  We heard from Mr. Campbell
 5   before that we're going to end  up with multi-cylinder engines
 6   on every motorcycle,  and  indeed, EPA does make reference to
 7   both  of these techniques.
 8             It would be very interesting for us to discuss
 9   further the eventual possible impacts on the motorcycles
10   at these levels.   This was a very important area of EPA's
11   considerations  in developing the proposal.
12             MR.  WALSH:  Mr.  Hirano is with us here today,
13   and he may be able to address some of those concerns.   I'm
14   not sure how extensive we  want  to get involved in a
15   technology discussion right now.
16             MR.  EDWARDS:   I think,  perhaps, this is not the
17   best  forum for  that.
18             MR.  WALSH:  But I think that the thrust of our
19   regulation was  that — of  our comments,  rather, was that,
20   even  if we have major difficulties with EPA's technology
21   and cost analysis  at levels below 83 dB(A),  that's not
22   really an imminent concern of EPA's, as  of'.our position
23   in it.  We have got to determine whether the 83 dB regulation
94
**   will  be effective,  first,  before we get into the problems
«c
***   with  the lower  number . .  .
26             MR.  EDWARDS:   I understand that,  but I think that
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                                                             108
 1   we have  to at least consider it to be a possibility, that
 2   EPA would promulgate regulations that are not substantially
 3   different from the  proposed rules, for discussion purposes.
 4              A question on the acoustical assurance period:
 5   You mentioned the fact that in EPA's statement that the
 6   products  are not expected to degrade significantly, and hence
 7   there  is  no need for an AAP.  Does Suzuki feel that -- does
 8   Suzuki agree that there is likely to be little deterioration
 9   during the first year of operation of a production motorcycle
10              MR.  WALSH:   Suzuki has submitted information to
11   the EPA which shows that,  at least for our products, there
12   is  no  deterioration over certain accumulated distance.  In
13   fact,  if  anything,  sound control tends to improve with
14   distance,  with our  products.
15              MR.  EDWARDS:   In another area, Suzuki is a
16   well known manufacturer of competition off-road motorcycles.
17   Does Suzuki have any comment on the distinction that EPA
18   has tried to create between competition and off-road
19   motorcycles;  and an area where we're very concerned about
20   is,  do you believe  that this will be an effective measure
21   to  at  least help the state level folks to distinguish from
22   competition from off-road  motorcycles,  and will be able to
23   enforce values  and  measures-appropriate?
2*            .  MR. WALSH^   At  the present time, our competition
25   moto-cross  motorcycles  are already labeled as  competition
2?   motorcycles, both_pn_the frame and_.pn the gas_tankr-_To the
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                                                             109
 1   extent that  this  is  used as an enforcement tool, we don't
 2   have  very much feedback.   You might talk to some enforcement
 3   people,  if you get a chance in these hearings, or later on.
 4             MR. EDWARDS:   Mr.  Walsh, will you forgive us for
 5   one moment while  I ask a question of Mr. Kozlowski?
 6                    (Whereupon,  Mr.  Edwards and Acting
 7   "          Chairman Kozlowski, held a discussion,
 8             inaudible to  the audience,  and off the
 9             record.)
10             Mr. Walsh,  that is something I believe Mr.
11   Thomas would like to cover,  and I will not attempt to cover
12   it right now.   But I may change my mind on that.
13             MR. WALSH:  Does that mean his return is imminent?
14             MR. EDWARDS:   We understand that it is.  Unless
15   that  eventuality  occurs,  then I would have to question you
16   again.   Thank you very much.
17             MR. NAVEEN:   Mr. Walsh, in your statement, you
18   raised a number of legal  concerns and questions, and also,
19   some  concerns  and questions  that are probably a mixed
20   question of  law and  policy.   Let me•try to address about
21   six of then  that  I have  identified.
22             The first:  Early  on in yourstatement is about
2«   the executive  order  on complex regulations.   We have been
24   directed,  in the  Agency,  to  try to comply with this order,
25   and are  doing  our best.   This regulation at hand represents
2®   one of the early  efforts  in the-Agency to try to comply with
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 1   the new  administration's  efforts  in this regard, and I can
 2   assure you, we will  try to  make things a uncomplex as
 3   possible.  A  lot  of  the confusion which you talk about is
 4   necessary because of the  way regulations have to be written.
 5   We will  continue,  however,  to explore the possibilities of
 6   making things somewhat  clearer.   We appreciate your concern
 7   and we will take  your comments.
 8             MR. WALSH:   We certainly appreciate any efforts
 9   you might make in that  area,  and  feel that, maybe, by
10   eliminating some  of  the sections  we proposed, the more
11   important sections of the regulation may be more easily
12   understood.
13             MR. NAVEEN:   The two arms of any agency that get
14   criticized the most  for making regulations complex is usually
15   the attorneys and tachnicians, so we have certainly received
16   our share of  the  criticism  because of some legal jargon
17   that's involved,  and our  new boss has directed us to try to
18   correct  the problem.
19             Another concern  you raised early on in your
20   statement was reminiscent  of one that the BMW owners raised
21   earlier, that it  is  only  the  minority of users that are the
22   problem.
23             I simply  want  to point out that the Noise Act has
2*   directed us to try to treat on a  national scale only those
25   problems which we  believe to  be national in scope, and
26   indeed,  the kind  of  approach we have adopted here is to say
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                                                             Ill
 1   that  part  of  the  problem with motorcycles is a national
 2   problem, namely,  what  can be done at the manufacturers'
 3   level to provide  a  product to the customers that is quiet,
 4   and part of the program,  however,  as we recognize and as
 5   many  of our witnesses  have recognized,  is that there is much
 6   tampering  that takes place,  and indeed, there is a state and
 7   local aspect  to this.
 8             I  don't  know  if we can just  simply identify
 9   modified motorcycles as  a problem,  and  treat them as
10   something  that we have thought about in the approach that
11   we've taken here  is a  conscious  one,  and we appreciate your
12   concerns,  gain, but I  don't know what other route we could
13   have  chosen.
14             If you have any further suggestions,  we might
15   appreciate them.
16             MR. WALSH:  I  am not  sure  that we suggested that
17   new motorcycles not be dealt with  at  all.  In fact,  we
18   recognize  the importance  of having a  coordinated regulation
19   to make all the aspects of the regulation work together
20   so that, at the manufacturers' level, and for the manufacturers
21   to provide tools  for enforcing it,  so we're not  suggesting
22   that  new motorcycles just be  completely forgotten.
23             HR. j^AVEEN:  Okay.  The  next point I  want to
24   raise:  On Page 7 of your statement you get into a
25   discussion -- into a suggestion  regarding public hearings
26   in the future, or five year  reviews.  We have not taken that
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                                                             112
 1  approach, and believe  that probably  they are unnecessary.
 2             There is ample precedent  in the D.C.  circuit
 3  which overviews all of these  regulations,  that at any time
 4  if there is new information that becomes available to the
 5  public  that indicates  a regulation --  in this case,  a
 6  national regulation controlling a  particular kind of noise •
 7  should  be amended on the basis of  this new information,
 8  whether it be cost information, or health and welfare
 9  information, or otherwise, there is  ample precedent  for the
10  public  to petition EPA for relief.
11             Another concern we have,  which is probably more
12  of a Policy One policy concern is  that we believe that the
13  administrative uncertainty that might  be involved with the
14  regulation that says,  "This is what  we'll do in  the  first
15  few years, and then in five years, we'll look at it  again
16  and maybe clamp down a little bit  tighter," that may be
17  too much of a sort of  a sword of Damocles  to hold over the
18  manufacturers, so we have chosen the approach that -- we
19  have taken --we will  take your suggestions to heart and
20  see whether any changes  should be  made,  but up until now
2*  we have not taken this  approach.
22             MR. WALSH:   I think that  it may be necessary  in
23
     this case, as the Agency has come  to  recognize  that the
94
"  motorcycle noise control problem  is  really  unique  and
25  extremely complex.
               Management of the program to  control motorcycle
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                                                             113
 1   noise  at the  Federal level may necessarily involve this type
 2   of approach because of the lack of predictability of some
 3   of the Agency's  presumptions.
 4              I'm not sure that the program that we suggest
 5   would  be any  more  comforting to our industry than having
 6   a regulation  which says,  "Sound level for some year in the
 7   future reserved,"  as has  been used with the truck regulation.
 8              We feel that the approach that we suggest
 9   recognizes  the reality of the situation, and would result
10   in an  overall better regulation than having to go to court
11   to have the judge  interpret the new information that we
12   find.
13              MR. NAVEEN:  In your discussion of the AAP and
14   the SLDF in your statement,  I  recall Mr. Isley's testimony
15   on the first  day when we  began to  discuss some of the
16   practical aspects  of those concepts.   His concerns seemed
17   to be  about the practical aspects  of determining what these
18   degradation factors  would be,  and  one of the suggestions
19   from the panel would be — was  to,  perhaps,  reserve; enacting
20   an SLDF until a later point  in time.
21              I  would like to ask  you whether you think it
22   might  be a  practical idea for  us to defer that concept  for
23   possible later enactment,  and  either,  (a),  retain the AAP
24   concept,  that is,  new bikes  shall  not -- new motorcycles
25   shall  not degrade  for a certain period of time,  or whether
26   that concept  should  also  be  delayed?
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                                                             114
 1              MR. WALSH:   That got pretty involved.
 2              MR NAVEEN:   I'm sorry.   Would you like me to
 3   break  that  out a little bit and go over it again?
 4              MR. WALSH:   Yes, please.
 5              MR. NAVEEN:   The acoustical assurance period
 6   suggests  that new motorcycles  last for a certain period of
 7   time.   Accompanying that concept in our regulations is
 8   that a certain degradation factor  would be determined so
 9   that manufacturers can  establish how much the product might
10   degrade,  so that they will in  any  event meet the standards
11   which  we  have proposed.
12              The earlier  testimony that I referred to evidenced
13   some concern about the  cost of determining that degradation
14   factor, and suggested that we  might delay any implementation
15   of that concept  until a later  period,  so that the manufacturers
16   had a  chance to  work with the  new  regulation and actually
17   had a  chance to  figure  out what those degradation factors
18   are.
19    •          I guess the  first question that I've got is
20   whether you would agree with that  suggestion?
21              MR. WALSH:   That would  certainly be better than
22   adopting  it immediately,  adopting  the SLDF and the AAP
23   together.
24              One of the things that  might be helpful with an
25   SLDF determination is using some of the vehicles that were
«e
M>   used in emission durability data collections, but then we
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                                                             115
 1  get  into problems with  emission  categories  being different
 2  than noise categories.
 3             I don't know if  the Enforcement  Office has
 4  coordinated — talked about  that with  the noise enforcement
 5  people, and talked to the air enforcement people, but
 6  that's one possibility  that  would help the  manufacturers.
 7             One of the problems we face is that we would
 8  have to determine an SLDF for the entire vehicle, and  than
 9  an SLDF for the exhaust system also, under  the exhaust
10  system section of the regulation, and  while we don't anticipa
11  any  problems with the AAP,  the cost of administering any
12  claims which might come in  from  customers —  I guess they
13  would be warranty claims and they would be  covered anyway  --
14  but  the problems of just doing all the administrative  work
15  that goes along with that seems  particularly  unwarranted
16  at this time, when any  benefits  which  might be gained  are
17  just a small part of any benefits that might  be gained from
18  the  entire new motorcycle regulation,  which again,  is  just
19  a small part of the many benefits which are going to be
20  gained from from the whole regulation  here.
21             MR. NAVEEN:  If  the SLDF concept was  dropped in
22  the  final regulation, but the AAP concept retained,  what
23  would your company's position be about that;  again,  simply
24  that the standards should be met for a certain period  of
25  time, and indeed, if a  user  has  not tampered with his  bike,
26  or modified it in any way, has a product which doesn't
:e
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                                                             116
 1   comply with that AAP,  he possibly could bring a warranty
 2   claim.
 3              What would  your company's reaction be to that, jus
 4   having the  AAP  in the  regulation?
 5              MR.  WALSH:   I would like to defer a detailed
 6   answer on that  question until later, but off the top of my
 7   head,  as  you pointed out, because any problems with noise
 8   control degradation  that would appear in the AAP would
 9   appear pretty quickly  with a new product, and we would
 10   probably  have to process a regular warranty claim right now
 11   for  that, so my reaction is,  we don't anticipate — we
 12   wouldn't  anticipate  a  big problem with that, but except for
 13   all  the administrative work,  and just being prepared to drop
 14   a bunch of  stuff on  EPA's lap and say,  "Well,  this  is  how
 15   we do  this."
 16              MR.  NAVEEN:   We're interested in hearing
 17   manufacturers tell us  that their products do not degrade
 18   because that is  what we believe,  at least for the periods
 1'   we have chosen,  and  you've indicated that your products do
 2"   show some durability,  so,  we  would appreciate any detailed
 2*   thoughts you'd  have  in that area.
 oo
 **              Next,  I was  going  to comment,  some,  on the
 V\
 **   statement of Page 13 regarding possible liability of the
24
**   manufacturer for slightly inaccurate reporting data, rather
25
M   slight  infractions.  I  will let Mr.  Kozlowski answer that
2fi
     in a while.  Let me  just remind you,  and everybody  here,
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                                                             117
 1   that a number of  the  enforcements  aspects  of this regulation
 2   are in current litigation  in  the Atlas,  Cogdorff, and
 3   Chrysler suits (some  phonetic spellings  used)  in the B.C.
 4   circuit involving the truck regulation,  the air compressor
 5   regulation, that  I mentioned  on the  first  day  of the hearing.
 6             We will keep  in mind whatever the mandate of the
 7   court's decision  to us about  those.   I will defer to Mr.
 8   Kozlowski about that  enforcement aspect.
 9             The last comment that I've got  has  to do with
10   some statements on. Page 15.   You  referred to  the National
11   Highway Traffic Safety Administration, an  exemption policy
12   that they had in  their regulation  and suggest  that EPA do
13   the same here.
14             It has been our standing  policy based on our
15   office's interpretation of the Noise Act that  such exemptions
16  whether the form  of such exemption,  or an  exception,  or
17   various waivers from  the applicability,  are not appropriate
18   under this statutory  authority or  its legislative history.
19             Part of the legal  reasoning behind  that is the
20  Act's statement that  all products  must comply  when sold in
21   commerce, plus Congress',  I would  say, undue concern,  and
22   excess verbiage about standards, wanting EPA to promulgate
23   standards that are uniform and preempt the states,  so that
24   the manufacturers would not have to  face varying regulations
25   from jurisdiction to  jurisdiction.
26             We think that that  history, and that authority,
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                                                             118
 1   albeit  this  is not  the  Clean Air  Act,  or some of the other
 2   pieces  of  legislation that have volumes  of history behind
 3   them, but  we believe that such a  policy  is not appropriate
 4   here, and  none of our new product regulations have we
 5   provided for such a policy.
 g             We will, however,  review your suggestion, and
 7   it will be appropriately commented on.
 8             MR. WALSH:   Thank you.
 9             MR. NAVEEN:  No further comments or questions.
10             ACTING CHAIRMAN KOZLOWSKI:  Thank you,  Ronald.
11             Mr. Walsh, what level  of noise is Suzuki's latest
12   models  of  bike generally achieving?
13             MR. WALSH:   From  the data that I've seen on our
14   recent  models, they range from under the SAE J-331a test
15   from the upper seventies to  the low eighties for our street
16   models.
17             ACTING CHAIRMAN KOZLOWSKI:  So you would then
18   have no trouble of meeting that 83 decibel standard with
19   your current models, right?
20             MR. WALSH:   I am not sure yet if we have done
21   enough  testing with the newly proposed test procedures to
22   determine whether we might have some problems  or not.
23             ACTING CHAIRMAN KOZLOSKI:  I  have two lines of
24   questionings on that.   Let me take the second one  first,
25   to get  back to the question  that Mr. Naveen asked.
26             Now, if in fact the industry  needed lead time
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                                                             119
 1   to  develop  an  SLDF --  and,  incidentally,  you don't have to
 2   do  durability  testing;  the  regulations give the manufacturer
 3   a lot of lattitude as  to how he determines what his
 4   deterioration  would be;  yours would probably be zero based
 5   on  what you said here  — but, if you need that year's lead
 6   time  to actually get information on bikes that do, in fact,
 7   meet  the standard,  I suggest you do that  right now, with
 8   this  current model,  because, generally, you won't need to
 9   make  very many changes  to meet the first  level standard.
 10              MR.  WALSH:   I am sure that we  would like to do
 11   that,  and we may,  in fact,  be doing that.
 12              Again,  because of the uncertainties inherent in
 13   the regulation-making process,  we don't know until the
 14   regulations are finally  promulgated what  the test procedures
 15   and standards  will be.
 16              Certainly, we have accumulated deterioration
 17   data  in the past,  and we will continue to do so.
 18              ACTING CHAIRMAN  KOZLOWSKI:   So, therefore,  you
 19   wouldn't need  any delay  between the actual implementation
 20   date  for the standard,  and  the  actual implementation date
 21    for the AAP, because you currently have bikes  on  which you
 22   can get that now.
 23              MR.  WALSH:   I can not answer conclusively that
2^    that we've  got data  on all  — we have enough data,  at this
25    time,  that  we're happy,  completely satisfied with all of
2°    the products,  not that  there are any problems,  but I'm not
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                                                          120
I - "   ~
 sure  that all of it has been  tested as  extensively as  it
 2
 3
 8
 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
 could.
            ACTING CHAIRMAN KOZLOWSKI:  Okay.   Could I  say,
  then,  that you generally — you generally  --  believe your
  product line generally, that you wouldn't  need  that delay
  between the  actual implementation  date  of the  standard,
  and for the AAP and SLDF, because you either  have  that
  information, or can get it on  the current  model vehicles?
            MR. WALSH:  As a practical matter, I see some
  difficulty, because I'm not as familiar  with  the SLDF as,
  of course, you people are.  I'm not sure how  extensive EPA's
  requirement of documentation will be.
            It was hard for Suzuki to say that what we have
  now, and what we know now, is  sufficient to satisfy EPA
  that our SLDF determination is appropriate.
            ACTING CHAIRMAN KOZLOWSKI:  Well,  I  don't want
  to parry with you on the question because  we  seem  to be
  ducking each other and I don't want to put you  in  the
  corner to making a commitment  on the record now off the
  top of your head for the corporation, but  let me indicate
  what the records may include by quoting  the regulations:
  "The records may include," this goes to  the SLDF --  "The
  records may include, but not be limited  to, the following:
  Durability data and actual noise testing on critical noise
  producing or attenuating components;  2,   Sound level
  deterioration curves on the entire  vehicle; and 3,  Data
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                                                             121
 1   from products  in  actual  use,"  and of course, you could use
 2   other information that could lead you that that conclusion
 3   too.
 4              It  just appears  to  me that if you are currently
 5   making the  product which meets the standard, that you can
 6   begin now,  and you probably would as a matter of general
 7   product development test,  to see if the noise levels, in
 8   fact,  lasted over that acoustical assurance period.
 9              MR. WALSH:  Yes.   As a practical matter, could
10   I  ask you if this has turned out to be a problem with the
11   truck regulation,  whether Enforcement Division has issued
12   an advisory circular on  how to determine SLDF?  Is there
13   more than that?
14              ACTING CHAIRMAN KOZLOWSKI:  Yeah.  The current
15   truck regulation  does not have an SLDF or an acoustical
16   assurance period,  and we wouldn't do that by advisories,
17   certainly,  if  we  wanted  it read, we would include that in
18   our requirement.
19              Second line of thought:  If Suzukis are currently
20   now generally  below the  83 decibel level, why do you
21   support Federal regulation at all?
22                    (Witness non-responsive to the
23              question.)
24              Let me ask a  second question:  If they are
25   currently below,  and the problem is modified bikes, why
26   Federal regulation at all?
        
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                                                             122
 1              MR.  WALSH:   As I mentioned to Mr. Naveen, as
 2  we  see  getting  a handle on the motorcycle noise problem,
 3  coordination at the Federal level will be helpful in
 4  getting uniform product distributing in commerce, in
 5  providing  uniform enforcement tools for the state and local
 6  governments,  so that the effectiveness of state and local
 7  enforcement can be maximized.
 8              Certainly,  the Noise Control Act, as I see it,
 9  recognizes that there  is a need for uniformity of treatment
10  of  products,  and that's probably another reason, in addition
11  to  the  need for uniformity in getting an effective enforcernen
12  tool.
13              ACTING CHAIRMAN KOZLOWSKI:   Okay.  I think that's
14  right.   The State of California,  of course,  could require
15  new product testing and demonstration now,  if it so desired,
16  and does,  and could impose -- and as a matter of fact,  take
17  these regulations and  promulgate them themselves, as could
18  Oregon  and the  other state.
19              What it gets down to,  I guess,  is that the reason
20  Suzuki  supports the regulation,  as I read it,  without being
21  too harsh,  is that what it would propose for us, rather than
22  this be the noise emission standard regulation,  this be a
23  Federal preemption regulation.
24              MR.  WALSH:   Well,  we don't see it as  quite that
25  much of a  free  ride that you are trying to  make  it sound.
26  It  certainly, as  anybody who  tries to read  the regulations
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 1  knows,  it's a very  difficult thing to try and comply with
 2  the regulations.
 3             ACTING CHAIRMAN  KOZLOWSKI:  It would not be
 4  difficult at all if your  bikes  are already meeting the
 5  standard.
 6             MR. WALSH:  Well,  in order to administer
 7  compliance.
 8             ACTING CHAIRMAN  KOZLOWSKI:  But there would be
 9  no administration if you  weren't in business.  If we didn't
10  regulate, you wouldn1t have to  worry about STA, and product
11  verification, and SLDF's, and AAP's, and what other items —
12             Again, I'm not trying to badger you.  I am trying
13  to make a point.  I don't understand why, or how -- I guess
14  I do understand why and how you commit -- but it's not,
15  clearly not, environmental  regulation at that point, as
16  far as  I'm concerned.
17             MR. WALSH:  Well,  let me just add a little bit
18  to that, and that is, that  we're not just suggesting that
19  the regulation stop at 83 dB, but we're suggesting that, as
20  a coordinated effort of reduction of environmental noise
21  by the  Agency, that this  be the first step.
22             ACTING CHAIRMAN  KOZLOWSKI:  Yes, I know what you
23  are saying, the regulations oughtn't die, they should just
24  really  go into a coma for the next eleven years.
25             MR. WALSH:  Well,  we don't see --  Well, if
26  you're  predicting the effectiveness of your regulation as
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 1   being quite  that bad,  maybe.   We certainly hope that things
 2   are  a little bit better.
 3             ACTING CHAIRMAN KOZLOWSKI:   My second question
 4   is along  the same lines,  and  perhaps we should just skip
 5   over it quickly,  but I would  like -- and this, then, becomes
 6   a comment -- you indicated in your testimony that we ought
 7   to take things  one step at a  time.   The first step is to
 8   quiet the modified bikes,  and the second step, if it ever
 9   comes, is to-worry about reducing the  regulation for new
10   bikes.
11             You  are also say on Page 6  and Page 9 of your
12   testimony — or seem to imply,  on those pages -- that we
13   make assumptions that modified bikes can be quieted by
14   state and local actions,  and  that that,  at best, is a
15   questionable assumption;  ergo,  we ought to wait and see
16   whether we do that before we  get into  regulating the quieter
17   bikes; which, I guess,  makes  some sense.
18             I would argue that we ought to do both.   If we
19   assume that  we  will be able to quiet modified bikes,  then
20   we ought  to  assume at the same time, that we ought to get
21   the  new bikes down as quiet as  we can  practically do,
22   within the limit of the law,  and if we can't get modified
23   bikes quiet,  then I think you're right,  that it is something
24   we oughtn't  to  be doing.
25                    (Whereupon,  Chairman  Thomas returned
26             to the hearing panel.)
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 1             With  reference  specifically to the enforcement
 2   requirement  testimony,  on  Page 41,  you indicate the EPA
 3   requires  too much testing  of motorcycles in order to
 4   demonstrate  compliance.
 5             Now,  of course,  we do not intend that the industry
 6   do  too much  testing.  We thought our testing requirements
 7   were minimal,  to say  the least;  that is, you test one
 8   production bike  in a  category one time a year with potential
 9   for carrying that over  in  the future years if things don't
10   change.   We  didn't think that was very much testing at all.
11             As  a  matter  of  fact,  we thought you'd probably
12   be  doing  more  testing than just  to convince yourselves that
13   you are meeting  the standard.
14             How much testing would you do to demonstrate to
15   yourselves that  your  motorcycles meet a standard absent
16   any EPA requirement to  test?  How many bikes would you test?
17             MR. WALSH:   Perhaps Mr.  Hirano could best answer
18   that question  as  far  as our current practice of testing for
19   compliance with  existing state regulations.'
20                    (Whereupon, Mr. Walsh conferred with
21             Mr. Hirano,  off the record.)
22             Mr. Kozlowski,  let me submit that information
23   later, in our  written submission.  It gets pretty involved
24   with testing for different markets, and things like that.
25             MR. KOZLOWSKI:   Okay; fine.   Could I ask another
26   general question?   Perhaps  you would have to submit that,
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                                                             126
 1   for the  record,  but what I am getting at is,  how much
 2   attional testing would be required,  plainly and simply,
 3   because  of the Federal regulations,  and -- you can do that
 4   later.
 5              MR. WALSH:   Okay.   I think that's  one of the
 g   areas  of duplication  that we're concerned about is in the
 7   compliance with  the replacement exhaust system regulation,
 8   in  addition to the  new vehicle regulation, where — well —
 9   apparently we're exempt from  a lot of testing under the
10   replacement exhaust system regulation.   We do have to
11   determine SLDF for  that,  for  the exhaust system, in each
12   class, and go through  the record keeping for  that.
13              MR. PETROLATI:   Are you talking about the same
14   exhaust  system that is suppied with the motorcycle?  You're
15   not talking about a different model?
16              MR. WALSH:   No.
17              MR. PETROLATI:   Okay.
18              MR. KOZLOWSKI:   We will take a look at that.
19   I don't  believe  that  it was  not the  intent,  and I don't
20   believe  the regulations  require an additional SLDF determination,
21   when an  exhaust  system is  tested on the original motorcycle.
22   But, we  will take a look at the regulation and make sure
23   that that is, in fact,  clear.
24              MR. WALSH:   Thank  you.
25              MR. KOZLOWSKI:   Okay.   We  would also like to
26   follow up,  if there is a way  that we  can test by category,
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                                                             127
 1  we can reduce the  testing burden by  exchanging the
 2  configurations or  categories  in a way  that  makes  sense,  and
 3  so that we're not, you know,  in a nonsensical  way, and I
 4  wish you would submit that  to us in  your written  submission
 5  because we don't want to have that testing  problem here.
 6             On Page 10 — I  don't want  to debate words  — you
 7  indicate that we have a certification  program.  We don't.
 8  The testing program  -- enforcement program  --in  this
 9  regulation is one generally run by the manufacturer.   You
10  do the testing.  You don't need a certificate  from EPA to
11  begin introducing product into commerce.  All  you need to
12  do is to test the product yourself,  the  early  production
13  product, and determine that it meets the standard, and
14  submit that report to us, and you're off and running.   You
15  don't need any certificate  from us.  That is different from
16  the certification program that you might know  from the
17  air emission side.
18             MR. WALSH:  In the absence  of the reception of
19  the formal certificate, yes;  I believe there are  requirements
20  of submission of the maintenance   instruction, and some of
21  the literature like  that, which must be  proved ahead of time.
22             MR. KOZLOWSKI:  The anti-tampering  .  .  .
23             MR. WALSH:  The anti-tamper ing  .  .  .
24             MR. KOZLOWSKI:   .  . . must  be submitted,  the
25  maintenance instructions need to be  submitted,  that would
26  te done whether there is any  testing or  not.  We  want  to
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                                                             128
 1  make sure that those lists are consistent with  the  law,  but
 2  the testing' itself is done by the manufacturer,  on  his  own
 3  site, with his own people, normally, and they  .  .  .
 4             MR. WALSH:  I know that.
 5             MR. KOZLOWSKI:  Okay.  It's different than  the
 g  certification program, period!
 7             Do you want us to delete the SCA program because
 8  it is very costly?  How much will the SCA cost  Suzuki?
 9             MR. WALSH:  At the beginning it would cost  --
10  it would be the additional cost of building another test
11  site, as well as training the additional personnel.  We
12  submitted the cost for an endeavor like that to EPA before,
13  a couple of years ago, in one of our submissions  then.
14             MR. KOZLOWSKI:  I think we discussed it  at  that
15  point too, but my point is that, there is no testing under
16  the selective enforcement noise regulations until so ordered
17  by EPA, so there is no cost inherent in the program to  any
18  manufacturer.  I was . . .
19   '          MR. WALSH:  But the manufacturer must be prepared
20  to receive the order when he gets it.  He can't,  say,  "Well,
21  hold on for a long while until I build the test site."
22             MR. KOZLOWSKI:  Does that mean, then,  that
23  Suzuki, once it did its product verification testing, would
24  not test another motorcycle after that?
25             MR. WALSH:  I think that our current quality
26  control products internal product auditing procedures  deal
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                                                             129
 1  with  periodic testing of our vehicles for compliance with
 2  many  different standards and regulations for this country,
 3  and for other countries.
 4             We see  the SEA program as being quite a formal
 5  requirement,  requiring a separate facility and setup to do
 6  that  sort  of  thing,  so the answer to your question is, no,
 7  we would not  stop  testing those products, but yes, we do
 8  see a significant  impact by the existence of the SEA approach
 9             MR.  KOZLOWSKI:   Well,  is  it your suggestion, then,
10  that  once  you do the product verification testing, that there
11  would never be any required testing  by the manufacturer
12  after that?
13             MR.  WALSH:   Under the  other sections of those
14  regulations,  the administrator could test himself, if there
IS  was any problem with that.
16             MR.  KOZLOWSKI:   The administrator can always test
17  himself.   But,  you didn't answer  my  question.   You would
18  then  see no required testing by the  manufacturer after that
19  one test,  one category,  one time  only, in the year?
20             MR.  WALSH:   Even if the SEA exists, there is no
21  additional required  testing by the manufacturer until he
22  receives an order.
23             MR.  KOZLOWSKI:   I'm sorry,  you're parrying with
24  me, but not answering  my question.
25             MR.  WALSH:   I don't intend to do that,  I'm sorry,
26  but if we  —  excuse  me.
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 1                    (Whereupon,  the witness conferred
 2             with Messrs.  Nakamura and Hirano, off the
 3             record.)
 4             Mr.  Kozlowski,  excuse me.  You were not saying --
 5   you were  not asking  whether we planned to do no testing
 S   after we  had done production  verification, you were asking
 7   whether we were concerned that the regulation required
 8   additional testing and that was bad?
 9             MR.  KOZLOWSLI:   No.  I tried to find out how
10   much  testing, number one,  would have -- would Suzuki be
11   doing,  whether  we ordered any SEA's or not,  how much testing
12   would you be doing on your own, period!  And then,  if we
13   ordered an SEA,  how  much testing would that add --  how much
14   additional testing would that add?  Excuse me ...
15         -    MR.  WALSH:  As  we  agreed to before, we would
16   submit, in writing,  what we currently do for product
17   testing after we do  our  prototype testing, and so on, and
18   our production  testing.   Then, we periodically select
19   vehicles  and test them.   And  we will submit the details of
20   that  program later.
21             The  problem with an SEA order is  that we could
22   not predict  when that was  coming in, and how our test
23   facilities were currently  being utilized at that time,
24   so  whether we would  be able to -- in order to prepeare for
25   that  eventuality we  would need some additional facility;
26   and,  as I understand it,  basically, there is no limit on how
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                                                             131
 1   many SEA orders  the administrator could issue each year if
 2   he wanted to.
 3              MR. KOZLOWSKI:   There is no limit in the regulatioji
 4   The orders,  of course,  would have to be reasonable, under
 5   our system of adminstrative law; but again, I don't want to
 6   make statements,  but Section 13A1 of the Act specifically
 7   allows  the administrator to require that the manufacturer
 8   makes such tests,  and the  SEA merely lays out a scheme whereb
 9   the administrator could.
 10              In the absence  of those regulations, the
 11   administrator could still  come in and order the testing,
 12   and there is no  limit in the legislation, so if the
 13   manufacturer thought that  he had to take care of all
 14   contingencies, once again,  he would have to be prepared to
 15   do mammoth testing,  so  that the presence or the absence of
 16   an SEA  section in the regulation would not indicate an
 17   intent  on the part of the  administrator to test, or a lack
 18   of intent,  or whether that is the scheme he will use when
 19   he does require  the test.
20              MR. WALSH:   Thank you for pointing that out to
21   us.   We will look into  that further and see, maybe, if we
22   can add some substance  to  what we said before,  that as a
23   policy  matter, we don't see that many benefits  in SEA right
24   now.
25             MR. KOZLOWSKI:   Well,  of course — I won't debate
26   that  point any more.  As a matter of fact, I'll stop talking
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                                                             132
 1   about SEA.
 2              On Page  12 of your testimony,  you talk about the
 3   ninetieth percentile  labeling requirement isn't any good,
 4   and suggest that  a  fiftieth percentile would be better, it's
 5   an easier statistic to do,  you do less testing.  I don't
 6   understand  that.  I wish you would explain that.
 7              And then,  after  that,  the second part of my
 8   question:   What if  the Agency would propose a stationary
 9   standard for the  label as opposed to either percentile?
10   We have  a suggestion  in the regulations.   Would you comment
11   on that?
12              MR.  WALSH:   Regarding  the stationary standard,
13   of course it would  depend on what the standard was before
14   we could comment  on whether it was good or bad.
15              The reason we suggest  the fiftieth percentile
16   value rather than the ninetieth percentile value is that if
17   we test  to  determine  fiftieth percentile, we won't need to
18   test thirty bikes.  We can  determine that with a high degree
19   of confidence with  a  lot less testing.
20              Certainly,  we can test fewer bikes and determine
21   fiftieth percentile with higher confidence than if we test
22   thirty bikes in the ninetieth percentile.
23              MR. PETROLATI:  What are-the differences in the
"   number of tests?
25              MR. WALSH:   I don't have, right now, how much
25   easier it would be, but statistically, it's easier to
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                                                             133
 1   determine  your mean value with a fewer number of tests, than
 2   with  your  actual  distribution.
 3             MR. PETROLATI:  With what sort of confidence?
 4             MR. WALSH:   The same --  well — under the proposal
 5   we would be  required to test  thirty vehicles so that we
 6   could determine the ninetieth percentile value.
 7             MR. PETROLATI:  That is  incorrect.   There is no
 8   number of  tests that you have to do to determine ninetieth
 9   percentile requirements.   The thirty tests --  and it may be
10   different  from manufacturer to  manufacturer — is only to
11   determine  whether or not you  have labeled at the ninetieth
12   percentile.  Subsequently, you  can  do as many  tests as you
13   want  in determining that ninetieth  percentile.  We check
14   by doing thirty tests.
15             MR. WALSH:   I'm sorry.   I.stand corrected.
16             MR. PETROLATI:  Okay.
17             MR. KOZLOWSKI:  John,  what I would  like is, if
18   there is a difference in the  number of tests required to
19   determine  the  statistic,  fifty  per  cent versus ninety, would
20   you submit that for the record  too?
21             MR. WALSH:   Yes, I will.
22             MR. KOZLOWSKI:  Okay;  thank you.
23             On  Page  13 of your testimony,  you indicate  that
24   vou could  be penalized  by  a Cease to  Distribute order  from
25   making one mistake  in good faith in the product verification.
«e
*°             Once again,  that is  inconsistent  with the
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                                                              134
  1
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  9
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 IS
 16
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.24
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 26
regulations.   I will  cite Section  205.157-10, which
indicates the  Agency, clearly,  .  .  .
                  (Whereupon, Mr. Edwards  left the
           hearing panel.)
.  .  . oversee  if  the  distributor or the manufacturer  has
made a good faith effort to try to verify.  Okay?
           MR. WALSH:  That's the same thing for the  label
verification report?
           MR. KOZLOWSKI:  Yes.
           And again, without making a speech,  the  idea of
the Cease to Distribute is this, that you made  a mistake
in testing the bikes  for a standard and putting the label
on, what we're saying is, "Whoa, stop, make the correction,
and then, keep going  distributing your product."
           The Cease  and Distribute doesn't sound —  or, it
isn't as bad as it sounds.  That's an editorial comment.
           Again, "burdensome reporting":  You  criticize
the regulations because of burdensome reporting.  We  don't
intend that that reporting be burdensome.  You  do need to
submit maintenance instruction and a tampering  lesson, and
what we have seen from the truckers and compressors who are
regulated, are not bad.
           The product verification.report, we  think, could
be done on one sheet.  Now, we do want more than just the
decibel level because.there are other things, such  as extra
quality control,  that -might..be -done, and we run-into  those
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                                                             135
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10
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26
types of problems with the truckers and  the  compressor
people now.  That is, you know, they do  have  quality  --  they
do'have special fixes to perform sometimes,  they  tell us,
in the product verification report.
           If that information is too burdensome,  tell us
what you want deleted, because we don't  intend it to  be
burdensome.  A one sheet report for each category we  think
would be enough, once you got beyond the site description,
and things like that.
           MR. WALSH:  By reading through the proposal,  it
seems as though there's a lot of paperwork generation, and
our comment was based on the apparent need for submitting
a lot of information which, at this time, seems a little
unnecessary, but we will submit some additional comments
to you specifically how that might be able to be  improved.
           MR. KOZLOWSKI:  That's fine.
           On Page 14, you say that the  NHTSA has  a special
safety valve — relief valve, for inconsequential  violations.
Ron pointed out the problem in granting  exemptions.   I point
out that we, too, have that safety valve for inconsequential
violations.  That's enforcement discretion.  We don't have
to or seek to distribute orders, we don't have to  order
retesting, and we don't have to order recalls, every  time
a manufacturer makes a slight mistake in building  a product
or in reporting the results of a test; and, as a matter  of
factj our experience so far with the people we regulate  is
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                                                             136
 1   that we do get incorrect reports, and we tell them to go
 2   back and give us the correct information now.  That's
 3   been the extent of the enforcement action, and in most of
 4   the cases they have come up with it.  So, we don't need that,
                               i
 5   specifically,  we found,  that relief valve, to have the
 6   regulation work.
 7              We did -- again, this is a comment and then a
 8   question to follow up --we have worked with the emissions
 9   people in the motorcycle regulations.  We have reviewed the
 10   categories and configurations for both noise and emissions.
 11   We concluded that they were so different that you couldn't
 12   test the same category bikes for noise and for emissions,
 13   and that it just wouldn't work for the manufacturers as
 14   well as for the Agency
 15              If Suzuki sees where a particular category or — o
 16   where we can modify the categories that makes sense such that
 17   we can test one product for both we would be very happy to
 18   do that.
 19              Again,  we do not intend any mammoth testing,
20   or any unnecessary testing, so if you could tell us, and
21   rearrange our categories so they were consistent with the
22   emission categories and make sense, we would be very happy
23   to consider that.
24              MR.  WALSH:   Okay; fine.
25              MR.  KOZLOWSKI:  That's all I have.  Thank you,
26   John.
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  1              MR.  PETROLATI:  John, first question, Page 4 —
  2   of course,  I may have to backtrack, and may have to address
  3   some of the questions Rich brought up:  The statement is
  4   that an 83  decibel standard will quiet the motorcycle down
  5   to approximately the same level as automobiles in normal
  6   operation.   What are you talking about as far as a noise
  7   level is concerned under normal operation?
  8              MR.  WALSH:  The studies that MIC indicate that
  9   automobiles in  normal operation, normal cruise on city
 10   streets, are, you know, as high as 60 dB limit range,
 11   around 68 or 69,  and stock motorcycles under the same
 12   operating conditions are around 71, 72 decibels.
 13              MR.  PETROLATI:  Would you be recommending those
 14   same levels for in-use enforcement levels in that they
 15   represent normal operation of the vehicle?
 16              MR.  WALSH:  I think that there would be a
 17   problem in  saying that, telling somebody, "Well, most of
 18   the time, you have to operate your vehicle at the level
 19   that it operates  best under a constant cruise condition."
20              I think I heard you ask this once before, I'm
21   not sure, that  the level that's chosen — I haven't seen
22   any enforcement programs that have adopted levels for
23   normal enforcement which try to set that level at the mean
24   level of operations, so if the average motorcycle operates
25   at 71 dB, if you set your limit at that,  then that, by
26   definition  makes  half the people in violation.  Practically,
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                                                              138
 1   I  don't see how you can dc  that.
 2          'MR.  PETROLATI:   Okay; fine.
 3              I'm a little unsure, based on your problem with
 4   the  lead time in that you recommend a 1982 for the initial
 5   83 standard.   The reason that you bring out for that is
 6   because you were unsure, at this time, what the test procedur
 7   is going to be.
 8              Are  you relating to the difference in that EPA
 9   may  adopt SAE J-331a instead of its proposed procedure,
 10   and  then this will cause you difficulties?
 11              MR.  WALSH:   Yes,  or some modification of either
 12   one.
 13              MR.  PETROLATI:   On which motorcycles are we
 14   talking about now?  You say that the motorcycles range from
 15   the  high 70's to the low 80's measured J-331a, so which
 16   problems  -- or which motorcycles are going to have problems
 17   in the  two different test procedures?
 18              MR. WALSH:   I haven't seen data yet which
 19   indicates  that  any specific model would have a difficulty
20   with either the  331a or the proposed test as far as what
21    the  differences  are, not that none of the models do have
22   problems.   I  haven't seen the data which indicates that
23   they do or do not,  and it's  that uncertainty for existing
24    models,  and future models,  that remains.
25               MR.  PETROLATI:   So,  you're still uncertain,  at
26    this time,  whether or  not you're even going to be effected
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                                                             139
 1   to  a  great extent?
 2             MR. WALSH:   Well,  I'm not sure that I understand
 3   how you mean  "effected"?
 4             MR. PETROLATI:   Well, you're proposing that we
 5   adopt 1982 without  any  information that you're even going to
 6   be  effected by the  1980 promulgation.
 7             MR. WALSH:   Okay.   I think the problem that you
 8   brought out is that,  at the present time,  we're finalizing
 9   our — we will have finalized our 1980 model configuration
10   by  the end of this  year.  We  would like to see the regulation
11   implemented on a model  year basis rather than a calendar
12   year  basis, because it  makes  it easier for us to plan our
13   products on a model year basis.
14             Unless the regulations — or even if the
15   regulations are promulgated very shortly,  there might be
16   some  lead time problems involved in changing 1980 models
17   to  insure compliance with the proposed regulations.
18             CHAIRMAN THOMAS:   Let me clarify that, please.
19   We  proposed a certain amount  of specified lead time in our
20   studies on which are predicated the availability of
21   technology, and the costs of  applying that technology.
22             The lead time shown would be provided.  Therefore,
23   the date that we have proposed the regulations go into
2'   effect, depend to a substantial degree on when the final
25   regulations are issued.
2®             If there has been  a slippage,  as indeed -- if
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                                                             140
 1   there  continues  to  be a slippage,  as indeed there has already
 2   been,  from our anticipated date, we would propose the rules
 3   and issue  them in final .  .  .
 4                    (Whereupon, Mr. Edwards returned
 5              to  the hearing  panel.)
 6   ...  we would provide a month-for-month slippage in the
 7   effective  date as well,  so you will see no constriction of
 8   the effective  dates.   The  same relative lead time would be
 9   there  based on the  date on which  the final rules are
10   issued.
11              MR. PETROLATI:   John, on Page 12, to bring up
12   one of the problems that I envision with the labeling
13   requirement at the  ninetieth percentile level,  in that the
14   exhaust system manufacturer may  test using EPA acceleration
15   test,  and  consequently not meet  the labeled stationary
16   value,  and may be cited on the road.
17              How does MIC handle this in MIC's program?
18              MR. WALSH:   Okay.   You  make me take  off my
19   Suzuki hat and put  on my MIC hat,  and I'll answer it on
20   that basis,  because of my  work in  the MIC Technical
21   Committee.
22              The MIC  program specifies that the after-market
23   manufacturer can either meet the stationary level which
24   the manufacturer has  determined  for the standard exhaust
25   system, or can meet the acceleration level.  Okay.  And
26   then,  if he chooses the latter option,  he then  determines
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 1   his  own  stationary level for reporting, along wit1i the
 2   acceleration  report for that exhaust system.
 3             MR.  PETROLATI:   In other words, the in-use
 4   enforcement official would have both his acceleration
 5   number,  which he  tested to,  and the stationary number that
 5   the  after-market  exhaust system manufacturer told him was
 7   good for his  exhaust system.
 8             In other words,  it's more or less predicated on
 9   the  after-market  exhaust system manufacturer sypplying a
10   good number,  rather than having to  meet a number.
11             MR.  WALSH:   The  after-market manufacturer would
12   have  to  meet  the  acceleration number,  and then,  after he
13   determines his  compliance  on that basis,  he then determines
14   what  the stationary sound  level number for that  motorcycle
15   exhaust  system  combination  is,  and-submits that  for
16   enforcement.
17             MR.  PETROLATI:   Okay.  So,  he is generating his
18   own  enforcement number?
19             MR.  WALSH:  Yes.
20             MR.  PETROLATI:   Okay.
21             As Rich was,  I was  a little unsure of the  fifty
22   percentile level  that you recommend.   How would  the after-
23   market exhaust  system manufacturer  use this fiftieth
24   percentile level?
25             MR.  WALSH:  If the  original equipment manufacturer
26   had determined  that  — had  determined  the fiftieth  percentile
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                                                             142
 1   value for his  exhaust system/motorcycle combination, and
 2   then labeled that either on the exhaust system or on some
 3   other label,  or in a written submission, then the after-
 4   market manufacturer can use that as his design goal.
 5              He  knows that if want to meet the label value
 g   that the  OEM is meeting,  that he has to design his products
 7   to  that same fiftieth percentile level.
 8              MR.  PETROLATI:   I guess what you're saying, then,
 9   for all practical purposes, not only does he have to meet
 10   the original equipment level,  but instead of meeting the
 11   ninetieth percentile which we are now requiring, that he's
 12   going to  meet  a much lower percentile level, such as fifty
 13   per cent,  so what you're recommending,  actually, is a more
 14   stringent requirement to the after-market exhaust system
 15   manufacturer.
 16              MR.  WALSH:   I think not. Under the current
 17   proposal,  if the after-market manufacturer chooses to use
 18   a stationary value as  his  guideline, he must insure, himself,
 19   that all  of his production will be under that ninetieth
 20   percentile value for the OEM,  so that he does not fail a
 21   stationary SEA.
 22              MR.  PETROLATI:   Okay, it's ninety per cent
23   rather than all, but you're right, so far.
24              MR.  WALSH:   And an SEA with an AQL of ten per
25   cent,  and that,  therefore,  basically, unless he has a lot
26   tighter quality control, he is going to be designed
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                                                             143
 1   approximately to the same fiftieth percentile value with
 2   the OEM so that he can get approximately the same ninetieth
 3   percentile value with the OEM,  and similarly, under what
 4   we suggest,  we supply information with our fiftieth
 5   percentile value so that he can use it with his fiftieth
 6   percentile value.
 7              MR. PETROLATI:  And what percentages of his
 8   production now has to meet that fiftieth percentile, only
 9   fifty per cent?
 10              MR. WALSH:  No.  Under — and then the label
 11   values would be fiftieth percentile values plus a fixed
 12   tolerance.
 13              MR. PETROLATI:  Supplied by who?
 14              MR. WALSH:  Determined by EPA as the appropriate
 15   tolerance based on scattered test-to-test product-to-
 16   product.
 17              MR. PETROLATI:  Across the whole industry line,
 18   or model  specific?
 19              MR. WALSH:  Across the industry line.
 20              MR. PETROLATI:  Okay.   I guess we haven't seen
 21   any data  along these lines that supports your recommended
 22   approach;  consequently,  if you  could supply us the data
 23   that shows  this approach is feasible,  specifically,  the
 24   setting of a tolerance  across industrywide rather than
25   model specific,  we would greatly  appreciate that.
26             MR. WALSH:  Okay.
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                                                             144
 1              MR.  PETROLATI:   Okay,  one comment.  Again, it's
 2   probably due to the complexity of the regulation, but you
 3   state in here that the manufacturer is required only to
 4   label at the ninetieth percentile for labeling verification,
 5   but when EPA requires  a selective enforcement auditing be
 6   conducted for label correctness,  if you will — that is, all
 7   the models are  required to meet that specific label value —
 8   that's incorrect.   Only ninety per cent of the models are
 9   required to meet that  specific value.
 10              In other words,  we're  testing to ninetieth
 11   percentile.
 12              Subsequently,  the test plan allows that a certain
 13   percentage must be over the ninetieth percentile requirement.
 14              MR.  WALSH:   Our concern was that the label
 15   verification program would require that at least ten per
 16   cent of the exhaust systems exceeded the label value to
 17   insure that the label  value was,  indeed, approximately a
 18   ninetieth percentile value, while at the same time, if we
 19   had to do a stationary,  a situation could come up where an
 20   SEA to a stationary test would require that it meet the
 21   sampling plan with an  AQL of ten  per cent, and that in some
 22   instances those might  be inconsistent, and we're wondering
23   if you had some data to show that that couldn't happen.
2^              MR.  PETROLATI:   You may be referring to the
25   wrong sampling  plan.   There is a  specific sampling plan,
26   in particular,  for the labeling requirement under SEA.
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                                                             145
 1   There is  no AQL,  but there is a requirement that a certain
 2   percentage must be mover,  and a certain percentage must be
 3   below,  the labeled value.
 4              MR.  WALSH:   Right.  And, we were not sure that
 5   there was no possibility that we could not pass one and
 6   fail the  other, or fail one and pass the other.
 7              MR.  PETROLATI:   Okay.  I guess I'm a little
 8   confused  . . .
 9              MR.  KOZLOWSKI:   Yeah, we'll take a look at that.
 10   Perhaps we can  talk privately to you,  John, and we will look
 11   at that fifty percentile,  plus.
 12              MR.  WALSH:   Yes,  I understand.
 13              MR.  PETROLATI:   John, I guess you stated that,
 14   as far as you know,  there  is no degradation to the motorcycle
 15   itself.   If there is a case where there could be degradation,
 16   could you single  out one component that would most likely
 17   degrade over other components of the motorcycle?
 18              MR.  WALSH:   Let me ask Mr.  Hirano that question.
 19                    (Whereupon, there was a discussion
20              between the witness and Mr. Hirano, off
21              the  record.)
22              Mr.  Hirano  informs me there is no way — he's not
23   familiar  with any components which deteriorate significantly
24   any differently than others, that sometimes, if there is a
25   degradation, it's one  component, and sometimes it's another,
26   and that  there  is no predictable trend.
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                                                              146
 1              MR.  PETROLATI:   Okay, John, thank you very much.
 2              MR.  KOZLOWSKI:   John, we saved the best questions
 3   for last.   Thank you.
 4              CHAIRMAN THOMAS:   Mr. Walsh, in your statement
 5   you have said that Suzuki  fully supports an 83 decibel
 6   regulation for  street  motorcycles or replacement exhaust
 7   systems.  You further  state that at such a level, motorcycles
 8   would be nearly as quiet as automobiles in normal operation,
 9   and the cost burden borne  by manufacturers and consumers
 10   would be comparable to the burdens imposed by the EPA
 11   medium and heavy truck regulation.
 12              Understanding your response earlier,  Mr. Walsh,
 13   I would ask,  what is the burden imposed on Suzuki to meet
 14   the 83 decibel  standard?
 15              MR.  WALSH:   I think EPA's data shows  that there
 16   is  a twelve million dollar per year annualized cost for the
 17   83  dB regulation for street motorcycles,  and the cost on us
 18   would be the  administrative cost of complying,  plus any
 19   additional cost which  we might face if some of our models
20   must be modified,  in some  way, to meet this regulation.
21              CHAIRMAN THOMAS:   That's my question.  Assuming
22   that there is no administrative cost,  as  indeed there
23   would be miniscule for a company such  as  Suzuki, if you
24   didn't have to  do anything to your motorcycles  in order to
25   comply.
2"              My question is,  to you, sir, what is  the
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                                                             147
 1   requirement on Suzuki?   What do you have to do to meet an
 2   83 decibel standard today?
 3              MR. WALSH:   I believe our engineering staff is
 4   analyzing those comments --  those questions — more fully,
 5   and we  will supply the  details of that with our written
 6   submission.
 7              CHAIRMAN THOMAS:   Well,  I appreciate your response
 8   sir.  You are  currently complying with the California
 9   standards?
 10              MR. WALSH:   Yes,  we are.
 11              CHAIRMAN THOMAS:   You are complying with the
 12   Oregon  standards?
 13              MR. WALSH:   Yes,  we are.
 14              CHAIRMAN THOMAS:   Do you see these standards at
 15   83 decibels  being  more  stringent than those?
 16              MR. WALSH:   I am  not sure that we have studied
 17   the ten per cent AQL SEA plan in conjunction with the
 18   product variability of  our own product line enough, at this
 19   point,  to determine whether  this plan, the EPA proposal,
20   is, in  fact -- how it exactly compares with the California
21   and Oregon requirements.
22              CHAIRMAN THOMAS:   Well,  I would suggest, sir,
23   that perhaps the statement is somewhat premature, then, on
24   the part of Suzuki, if  you don't have the data yet.  Yet,
25   we're making a statement virtually as fact in here, and if
26   we refer to Suzuki specifically, in fact you do not yet know
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                                                             148
 1  what  the  cost burden would be  on Suzuki,  and you do not yet
 2  know  what you would have  to  do to comply  with these
 3  standards.   Is  that a  fair statement?
 4             MR.  WALSH:   Excuse  me for a moment.
 5             Mr.  Thomas,  as we are gathering our data on
 6  specific  impacts model by model of the proposal,  we have to
 7  use EPA's data  as  far  as what  the administrative costs and
 8  the general  overall impact on  the manufacturers will be,
 9  and that's the  basis for  those comments right there.
10             CHAIRMAN THOMAS:  Very good, Mr.  Walsh.   I
11  appreciate that.   Thank you  very much.
12             If that is,  in fact,  the basis for your comments,
13  I would suggest, sir,  that there is virtually no cost on
14  Suzuki in complying with  these regulations of 83 decibels.
15             MR.  WALSH:   We would certainly be happy if that
16  were  the  case.
17             CHAIRMAN THOMAS:  I want to see you show us that
18  that  is not  the case,  Mr. Walsh,  and that's  what I don't
19  believe,  and I  would suggest,  sir,  that you are using EPA's
20  data, I am telling you that  our data says to you — our
21  data  says to you — that  there is virtually no  cost on
22  Suzuki to comply with  these  regulations.
23             Now, if you have  data developed by Suzuki, that
24  we would  be  pretty happy  to  receive, and  it  would certainly
25  change the inferences  that I have given here,  but if you're
26  using our data, I  see  virtually no cost on Suzuki to comply
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                                                             149
 1  with  an 83  decibel  standard.
 2              MR. WALSH:   I'm sure that our dealers and
 3  customers would  be  very happy if that were the case.
 4              CHAIRMAN THOMAS:   I want you to show me that
 5  that's  not  the case, sir.   That is what we are asking Suzuki
 6  to  do.   I would  suggest that  the difficulties that the
 7  American government has had with the automobile industry
 g  would be very, very troublesome to all of us if we walk into
 9  that  same situation with the  motorcycle industry,  and that
10  is, veracity  is  most important here, sir, that we  know what
11  we  are  talking about.
12              If you're using our data, we think we know.  If
13  you dispute that data,  we  would be delighted to see the data
14  on  which you  dispute it, and  then we can talk, but at this
15  point we see  no  cost — virtually no cost — on Suzuki to
16  meet  an 83  standard.
17              MR. WALSH:   To  the extent that we have  helped
18  EPA gather  some  of  that data, we certainly hope that we will
19  be  able to  show  any differences,  how this regulation might
20  impact  us individually.
21              CHAIRMAN THOMAS:   Well, thank you very  much.
22  We  certainly  will appreciate  it.   Perhaps,  at that point,
23  you would care to reconsider  the comments that you have made
24  at  this time, as  proposed.
25    _         Turning  to another statement that you have made
26  on  Page 5 of  your testimony..  You have said that,  "Regulation
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                                                             150
 1  of motorcycles  to  the  80  decibel  level,  however,  would only
 2  provide  seven to twenty per  cent  additional  benefit,  but
 3  would cost of three hundred  per cent more.   Such  a strategy
 4  would not only  be  much less  cost  effective  than the 83 dB
 5  level, but would burden motorcycle manufacturers  five times
 5  more  heavily than  truck manufacturers."
 7             My question to you, Mr. Walsh, is,  so  whatl  Are
 g  you in competition with medium and heavy truck manufacturers,
 9  sir?
JO             MR.  WALSH:  Our position on that  particular point
11  is that  EPA, as part of their overall  strategy of reducing
12  environmental noise, should  approach it  in  such a way that
13  the noise category —  the category of  the products that
14  produce  noise — are treated in an equitable manner,  and
15  we feel  that, certainly,  it  would be possible  to  — if we
16  banned motorcycles, there would be no  motorcycle  noise
17  problem, but that  that is not the way  to handle the problem.
18             CHAIRMAN THOMAS:  Has  anyone  suggested that we
19  are banning motorcycles here?  I'm referring to your
20  statement relative to  the 80 decibel level.
21             MR.  WALSH:  No, but the —  and so,  the concept
22  holds true that for any chosen regulatory level,  that the
23  overall  noise control  effort be coordinated in such a way
24  that  all of the different noise producers are  doing an
25  approximately equivalent  share, in reducing  overall noise,
26  the overall noise  problem.    "
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                                                             151
 1              CHAIRMAN THOMAS:   Thank you.   I understand your
 2   position now.   I  would suggest that we're talking about
 3   apples  and oranges  in here,  and that the relationship of
 4   motorcycle noise  and cost relative to the cost reduction of
 5   medium  and heavy  trucks — diesel trucks at eighty thousand
 6   pounds  GVWR —  and  the kinds of problems that they're
 7   associated with getting to an 80 decibel level,  are quite a
 8   bit different  from  the problems associated with the motorcycl
 9   such as Suzuki  manufacturers,  going to an 80 decibel level,
 10   and that there  is no relationship in EPA's mind with respect
 11   to the  cost burdens being equitable.
 12              Now, if  you are in competition with these other
 13   organizations --  with these  other products,  and there could
 14   be a marked shift resulting  as in the manner EPA regulates
 15   one product as  opposed to another,  then  I think we have a
 16   fair point for  further discussion,  but I think your
 17   comparison using  the truck cost,  sir, is not really relevant
     to what we are  discussing here.
                MR.  WALSH:   I think that we need to consider that
 20   there is some way that we need to handle --  get a handle
     on the  whole problem,  and that is,  we could quiet trucks a
     lot more than we  could quiet motorcycles, or we can quiet
     motorcycles a lot more than  we can quiet trucks.
              .  The  aim,  hopefully,  of all of this is  not to put
25    anybody out of  business,  or  not to  force uneven shares  of
     the burden on any particular vehicle type, to the extent
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                                                             152
 1  that trucks and motorcycles  share  the roadways in a large
 2  part of America,  the  impacts  are  felt together,  and to the
 3  extent that motorcycles  are not used.
 4             Motorcycles are found  in some areas where trucks
 5  are not.  In there, the  impacts have -10  be assessed.
 .6             CHAIRMAN THOMAS:   I'm very pleased that you
 7  noticed that latter point.  We would agree that there are a
 8  great many places where  you will  find motorcycles that you
 9  will not find  trucks.  I would suggest that there are not
10  too many places that  you're  going  to find trucks where you
11  won't find motorcycles,  at least  capable of operating.
12             Thank  you.  I hope you  will further consider the
13  questions of the  statements  that you are making to the
14  government on  the costs  to Suzuki.   We are looking to you,
15  please, to develop your  own  data,  and your own information,
16  in order to, hopefully,  educate us.
17             We  understand the  regurgitation of the data that
18  we have provided  is.  perhaps, appropriate, until you have
19  done that.
20             What we're seeking, of  course,  from a company as
21  prestigious as Suzuki, as knowledgeable  as we know you to
22  be, we wo-ld hope to  see hard data,  and  very hard cost
23  economic information  provided to us.   I  am sure you can do
24  that.
25             MR. WALSH:  I am  sure we  will also.
26             ACTING CHAIRMAN KOZLOWSKI:  Any other questions?
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                                                              153
  1      •        MR. EDWARDS:  I neglected  one thing.

  2              Mr. Walsh, in your written testimony,  as I did

  3   with Mr. Davidson, could I direct your attention to certain

  4   areas where EPA has specifically requested comments.

  5              I know you suggested use of the J-331a test, but

  6   in the eventuality that is not used,  will you please direct

  7   your attention to the technical details of the proposed

  8   procedure,  and any possible improvement that you might suggest

  9   there.
                     *
 10              Another is, the tachometer specification.  That

 11   is ...

 12              MR. WALSH:  Yes, we're aware of all the specific

 13   requests, and we're working on answers to them.

 14              MR. EDWARDS:  Okay; fine.   Thank you very much.

 15              ACTING CHAIRMAN KOZLOWSKI:   Mr.  Walsh, we want

 16   to thank you for coming down here and enduring our cross-

 17   examination.  This is not an adversary forum,  believe me.

 18   We're looking for information.

 19              We thank you for coining, and thank Mr. Nakamura

 20   and Mr. Hirano for helping you, and thank Suzuki for making

-_21_  testimony^here..__. 	_._ ..._-^-_-._.. ,.	.	.	.	—_^-... ..

 22              MR. WALSH:  Thank you.

 23              ACTING CHAIRMAN KOZLOWSKI:   At this time, we

 24   would like to break for an hour.  We  will come back at

 25   2:30.

 26              Thank you all.
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                                                                    154
 1           .           (Whereupon, the  proceedings were
 2               in  luncheon  recess  from 1:25  o'clock,
 3               p.m.  until 2:35 o'clock,  p.m.)
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                                                              155
  1           •           PROCEEDINGS
  2
  3              CHAIRMAN THOMAS:  We will  reconvene,  please.
  4   Our next speaker is Mr. Karl Pearsons.
  5                        KARL S. PEARSONS
  6              My name is Karl Pearsons,  and I work  for the
  7   firm of Bolt Beranek and Newman Incorporated,  but I am here
  8   as an individual and: not representing that company.  My work
  9   at the firm is involved in psychoacoustics,  the  Manager of
 10   the Psychoaooustics Department, at the Canoga Branch of Bolt
 11   Beranek and Newman.
 12              I would like to go over today just  a  few items
 13   about the general effects of noise on people.  Noise can do
 14   many things.  It can cause hearing damage, it  can interfere
 15   with speech1, it can create some annoyance of distraction,
 16   it can interfere with sleep, it can do a lot of  other things
 17   too, and it is claimed to do many other  things,  such as,
 18   effect your cardiovascular system, create other  physiological
 19   effects,  but the ones that the most is known about are the
 20   ones I mentioned first.
,21   	That is not to say that these others-don't exist.-
 22   They may well.  But,  certainly not as much is  known about
 23   that,  and the general feeling is that if you can quiet noise
 24   to a point where none of these other  factors are influenced,
 25   you probably are not  going to bother people  in terms  of
 26   cardiovasculart. effects,  etcetera.
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                                                             156
 1             Studies  in  all  these  areas  are still goiigon.
 2  Let me say that  there  are  no  magic numbers,  there are no
 3  numbers below which nothing occurs,  but it's a continuum.
 4  The more noise you  have, the  more speech interference you
 5  get,  the more noise you have,  the more interference with
 6  sleep, or the larger percentage  of people that have their
 7  sleep interfered with.
 8             There are no magic numbers  again below which you
 9  don't get any of these effects.
10             Now,  the first  one that I mentioned is damage to
11  hearing.  For the most part,  as  far as the community is
12  concerned, motorcycles don't  create any damage to hearing.
13  There's the possibility that  the rider of'the motorcycle
14  may have his hearing impaired, but as  far as the people —
15  other people that are  listening  to the motorcycle noise —
16  their hearing should not be affected.
17             Speech interference occurs  in many ways.   One is
18  that  noise can interfere with reception of radio and
19  television, can  interfere  with using the telephone,  can
20  interfere with face-to-face communications.
21             Our firm has been  recently_involved in_astudy_^	
22  measuring speech levels.   In  general,  the findings suggest
23  that  people speak a little quieter than what is in the
24  literature before.  In other  words,  the levels that have
25  been  reported before for normal  speech are equivalent to
26  about 62 dB(A).  We found  that most people in their homes,
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                                                             157
 1  on average, speak  around 55  dB(A).
 2             It was  interesting  that we had people come into
 3  our laboratory  and speak --  we told  them to speak at a
 4  normal level, and  they  read  a  prepared passage which had all
 5  the sounds of the  English language.   However,  before we had
 6  them read this,xwe engaged them in conversation.  Now, this
 7  was a very quiet room that they were in,  but it was
 8  interesting to  note that the levels  when we were just
 9  conversing with them were about 5 dB below what they
10  considered to be normal conversation; in other words, when
11  they read the passage in a normal — what they considered
12  a normal -- tone of voice.
13             I am bringing all this up because in the background
14  information for the regulation,  some effort was made to
15  determine the effects that the motorcycles would have on
16  speech — speech interference; and the levels  that were used
17  were higher than the ones that we found in the — when we
18  made measurements  in the home.
19             I should add,  however, that as the  background
20  noise increases, people automatically raise their voice.
21  In general; as  the background  increases by 10  dB, people -	-
22  raise their voice  about 6 dB,  so they are always --as the
23  noise level goes up and up,  they are always slipping a little
24  behind in terms of the  intelligibility;when they are speaking
25  with someone else  the other  person may miss a  few words and
26  as the noise level goes up and they  continue to raise their
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                                                             158
 1  voice they will miss more  and more words  because they are
 2  never keeping up with  the  noise.
 3             The other thing that  should be mentioned is that
 4  certainly everybody doesn't speak at  the  same level.   There
 5  is variability among people.  Some people may not be  as
 g  familiar with the  language which necessitates a higher
 7  speech  level perhaps or  at least a greater difference between
 3  the speech level and the background level.
 9             Also the hard of hearing need  a little bit more
10  speech-to-noise ratio, if  you will.
11             So all  of these things will influence any  impact
12  that you make regarding  speech.
13             Certainly more  work has to be  done in this area
14  especially as the  facts  of time  varying noise and also the
15  work that has been done  in the past has been done using
16  steady  noise and such  things as  individual event such as
17  motorcycle passbys are of  the time varying nature.
18             Another aspect  of noise I  mentioned before is
19  annoyance.  Some people  may think that annoyance is kind of
20  one of  those trivial things that really isn't a problem
21  and-1 think in that sense  the term annoyance may be 	 _
22  somewhat misleading.   But  if people are annoyed enough, and
23  I only  know this — I  don't know this from direct experience
24  but if  they're annoyed enough then perhaps the stress that's
25  created by annoyance can create  some  other problems.   Maybe
26  that indeed is the thing that creates some of the
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                                                             159
 1   cardiovascular things,  constrictions that I mentioned earlier
 2              It certainly is difficult  to establish any kind
 3   of an absolute in the annoyance scale.   Most of the research
 4   that's been done has  dealt with relative annoyance.  How
 5   annoying  is one sound versus another.
 6              There have been category scale tests or adjective
 7   scales where people had to rate different sounds on scales
 8   varying from very annoying to very pleasant.  Other scales
 9   included  acceptability.   Still others  included loudness.
10   And in one  study it appeared that even levels around 80 dB
11   were judged to be noisy or annoying and these were for
12   individual  events.  However the test included levels of
13   noises up to a hundred dB.
14              When you run a test like this you do get certain  .
15   biases if you present subjects with sounds  ranging say from
16   80  to 100.   Certainly the 80 dB sounds  are  not as  annoying
17   or  as bothersome as the 100 dB sounds  and people tend to
18  anchor somewhat -- again I'm bringing this up just  to show
19   some of the difficulties that are associated with  coming up
20   with some kind of an  absolute scale of  annoyance.
21              Noise can  also affect people's-sleep and there's
22   a'wide range of levels which affect people's sleep. Levels
23   of  35 dB  may wake some  people up.   Levels of 70 dB may not
24   wake up some other  people.
25              We are currently conducting  a study not directly
26   related to  motorcycle noise but to noises in general and
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  1  their effects on people's awakenings and  it's  too premature
  2  to say anything now but we certainly have observed that
  3  ther e is a tremendous range in the levels which do wake
  4  people up.
  5             As for motorcycle noise in particular first I
  6  would like to say in iny personal experience  that there seem
  7  to be more quiet motorcycles these days than there did,  say,
  8  ten years ago.  I don't think that every  motorcycle I  have
  9  heard is acceptable, at least in my framework,  but I do
 10  think there are more that are quiet now than there were in
 11   the past.
 12             Surveys — social surveys -- attitudinal surveys -
 13  indicate that motorcycles are more annoying  than other kinds
 14  of sounds at the same level, and spreads  of  as  great as,  say,
 15  12 dB have been observed, not between motorcycles and  other
 16  sounds but between the most acceptable sound at a given level
 17  and the least acceptable sound at a given level.
 .18  	 -     -Also laboratory tests indicate that  some sounds
 19  of the same loudness are less acceptable  than others.:
 20   Recent tests that have been performed on_some helicopter
-21   noise indicate, that maybe it's the repetition rate that .. _ _ .
 22   is more annoying and this may be related  to  motorcycle noise.
 23   Again, we have not done any tests on that.   That's 'an
 24   hypothesis to perhaps explain why people  judge  motorcycle
 25   noise as being more noise than other kinds of things.   Also
 26   in terms of noise detectability may really play some part
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                                                             161
 1   and- this may  be true in particular in the off-road motorcycle
 2              The reason that I mention this is that another
 3   study that was conducted concerning footfalls in apartments
 4   indicated  that if you could hear it, it was annoying.  Now
 5   I'm not necessarily saying that that is true of motorcycles
 g   but at least  it should provide some food for thought on the
 7   motorcycle noise problem.
 8              That's the end of my statement.  If there are
 9   any questions I would be glad to answer them.
 10              CHAIRMAN THOMAS:   Thank you, Mr. Pearsons.  I
 11   think we have several questions that we would like to pose
 12   to  you.  We have not had,  I believe, any other bioacoustician
 13   or  those who  are knowledgeable in psychoacoustics,  speak
 14"   before us  yet.
 15              I  would like to pose one question to you now:
 16   It's been  suggested by at least one person speaking before
 17   us  that one of the reasons that motorcycle noise is reported
 18   to  be as annoying as it is is because people — some people -
 19   relate motorcyclists to the noise, and there is a bias
 20   against the motorcyclists, and therefore once they hear the
 21   noise and  they can relate it to the product, and the product
 22   relates to the user of the product -- the motorcyclists —
23   the bias is established there, and they suggested that one
24   of  the things we should do is to endeavor to determine what
25   percentage, in fact, this is occurring, or use some other
26   mechanism  to  discreetly and more accurately identify the
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                                                             162
 1  true noise impact  or  effect.
 2             Can you comment  on this,  and whether or not there
 3  would be any way,  in  your opinion,  as  one who has worked in
 4  this field personally for some time, you know, how one might
 5  go about doing it?
 6             MR. PEARSONS:  Well,  it  certainly is a possibility
 7  and one of the tests  that I mentioned  suggests that the
 8  meaning of the sound  may convey,  may influence people's
 9  acceptability of that sound.
10             I didn't go into detail  but there was one study,
11  and I don't remember  exactly  the  types of sounds, but if
12  the public, and this  was in a social survey, the public felt
13  that the vehicles making the  noise  were necessary such as
14  maybe a fire engine or an ambulance, if they felt that those
15  uses were necessary they didn't judge  them as harshly, if
16  you will, as they  did the sounds  that  came from some vehicle
17  they didn't feel was  necessary.
18             I don't  believe  motorcycles were in that but
19  this could be again an effect that  arises from the meaning
20  which the sound conveys or  the origin  of the sound be it a
21  person that didn't  really need to ride the motorcycle versus
22  an ambulance which  really had to  go down and make all those
23  noises.
24             As far  as  determining  what  percentage of the
25  people, or the response to  this,  were  due to a negative
26  effect against motorcycles  versus just a negative effect
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                                                              163
  1   against noise per se.  I don't have any suggestions.   It
  2   probably could be done.
  3              However, regardless if it's due to  the motorcycle
  4   rider, if you will, or the noise that it's creating by the
  5   rider, if the public is in general disturbed,  and if  that
  6   disturbance can be alleviated by reducing the  noise,  then
  7   I think that should be what is done.
  8              I hope that answers the question.
  9              CHAIRMAN THOMAS:  It does to the extent  that you
 10   have answered it, and it is certainly the best answer that
 11   I could imagine could have been given under the  circumstances
 12   I would like to pursue if you could — perhaps not  here —
 13   but I would like to pursue how we might go about structuring
 14   a survey to try to come up with some quantitative basis,
 15   if there is, if that is possible in here, to discreetly
 16   identify the noise problem as opposed to the relationship
 17   between the motorcyclist perception and the noise,  you know.
 18              MR. PEARSONS:  I would be glad to discuss  that
 19   at some later time. ~              :
"20              CHAIRMAN THOMAS:  We_would appreciate that.   I
 21   would like to have you do that.
 22              MR. EDWARDS:  Dr. Pearson, a motorcycle  noise —
 23   we have heard, many times in these hearings, that really
 24   the problem is the modified motorcycle, the ones that are
 25   really making an awful lot of noise, and EPA certainly has
 26   recognized that in its analysis, but could you comment on a
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                                                             164
 1  situation,  a  future  situation,  where all the motorcycles met
 2  the  current level, the  one  that was  recommended by Suzuki
 3  this morning,  at  83  decibels, which  means under reasonably
 4  typical  acceleration you would  be making sound levels at
 5  fifty  feet  of say a  high 70 decibels,  something like that,
 6  if motorcycles and all  other vehicles  were quieted to this
 7  extent would  we still have  a motor vehicle noise problem in
 8  this country?   It's  a little difficult to answer that
 9  ques tion.
10              MR. PEARSONS:  In general the noise level of
11  78 dB  which -- what  did you say that . . .
12              MR. EDWARDS:   High  70's .  . .
13              MR. PEARSONS:  High  70's.
14              MR. EDWARDS:   ...  at fifty feet.
15              MR. PEARSONS:  Okay.
16              It's difficult to say that the problem would
17  completely  go away,  and if  for  no other reason than there
18  may  be some particular  thing about certain types of vehicles,
19  maybe  like  motorcycles,  where  the noise level of 78 is more
20  detrimental for that class  of vehicle than for other
21  vehicles.           -      	  ._. -  ,
22              In general I would  feel that it's something in
23  that order  and it would probably be  okay, but I don't think
24  enough tests  have been  conducted at  this point to completely
25  answer your question.
26              MR. EDWARDS:   You indicate speech indoors was
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                                                             165
 1   around  55  decibels.
 2             MR.  PEARSONS:   That's  right.
 3             MR.  EDWARDS:   So,  if motor vehicles were about
 4   that  loud, and  residents  were close enough to the street
 5   getting the  transmission  noise of the vehicle into the
 6   building,  it is certainly possible that  a 78 decibel vehicle
 7   would be still  causing some impact on speech?  Is that
 8   not correct?
 9             MR.  PEARSONS:   Oh, certainly  it would, yes.
10             MR.  EDWARDS:   Is it possible  that people could
11   be impacted  by  noise and  not be conscious enough to want
12   to complain  about it?
13             MR.  PEARSONS:   It is possible in the sense that
14   they  may have so many other problems that noise doesn't
15   seem  to them as important.   But indeed,  they are impacted.
16             MR.  EDWARDS:   I guess  I'm asking probably an
17   analogue to  certain types of air  pollution which you can
18   not detect.   Are you always aware when you are negatively
19   being impacted  by noise?
20             MR.  PEARSONS:   I feel  in the  levels we are
21   talking about,  yes.   If you talk  about levels that are
22   higher than  that sum, that can create damage to your hearing.
23   No, you're not  always aware of those kinds of levels.
24             ln other words,  it could create some damage to
25   your  hearing and you might not be aware  that it is creating
2"   damage to  your  hearing.   You might not like the^noise, but
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                                                             166
 1   it still could be doing damage  o you over and above your
 2   dislike of it,  if you will.
 3              MR.  EDWARDS:  In  your consideration of its impact
 4   on sleep — our Health and Welfare Analysis, at least, has
 5   a section that noise can change the stage of sleep -- stage
 6   of sleep without your really being aware of it, so that,
 7   in that case,  perhaps you could be impacted by noise without
 8   being generally aware of it.
 9              MR.  PEARSONS:   I  guess the only problem with
10   that  -- it's  an interesting  thought,  but — the difficulty
11   is that people are not sure  that a change in sleep --
12   stage in sleep — is necessarily detrimental,  . .  .
13              MR.  EDWARDS:  I see.
14              MR.  PEARSONS:   .  .  .  but you're right,  you could
15   certainly have a sleep stage change.   You might even have
16   some  of this  cardiovascular  effect that I mentioned before.
17   But again,  nobody know that  that, indeed,  is bad.
18              MR.  EDWARDS:  I have a final question for you:
19   Are you familiar with the sound of the two-stroke  motorcycle?
20   In other words,  are you familiar enough with motorcycles to
21   know  what I'm talking about  here?
22              MR.  PEARSONS:   Yes,  I am.
23              MR.  EDWARDS:  Okay.   The only standard  in the
24   world thatwe"re aware of that creates  a distinction between
25   two-stroke  and four-stroke motorcycles to  account  for the
26   fact  that most people consider a two-stroke motorcycle to be
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                                                             167
 1  more irritating is  Italy, which  has  a certain number of



 2  decibels  to  their standard  for a two-stroke motorcycle.



 3        •     In the state of  the art,  do you know of any



 4  weighted  scheme, or any other way that we could possibly



 5  handle a  distinction between two and four-stroke motorcycles,



 6  if indeed that was  something that we wanted to do?



 7             MR. PEARSONS:  I don't know of any present scheme.



 8  As a matter  of fact, I guess I'm —  although I have heard



 9  both kinds,  I am not convinced that  one is necessarily



10  noisier or more annoying  than the other.   We do hopefully



11  plan, in  the very near future, to check that out though, and



12  this may  be  available in  the next six months.



13             MR. EDWARDS:   Dr. Pearson,  thank you very much



14  for answering ray ques tions .



15             CHAIRMAN THOMAS:  I have  one last question for



16  you:  Are you familiar with EPA's recently published -- or



17  relatively recently published — document, Towards A Natural



18  Strategy  for Noise  Control? Have you read that document?



19    .         MR. PEARSONS:  I have not.



20             CHAIRMAN THOMAS:  That will limit the question



21  I want to ask.  But let me  summarize.   We heard, in recent



22  testimony given this morning by  representatives of Suzuki --



23  and I believe you were present at that time — ...



24             MR. PEARSONS:  Yes.



25             CHAIRMAN THOMAS:  .  , . they made reference to



26  that particular document, and specifically,  the goals
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                                                             168
 1   established in  that  document with  respect to reduction of
 2   noise, environmental noise, as measured the Ldn description.
 3              EPA  has set  as its goal the  reduction of Ldn 75 --
 4   75 Ldn -- immediately,  and reduce  exposure levels to an
 5   Ldn of 65 as quickly as possible,  and try for an eventual
 5   reduction down  to Ldn 55.
 7              Now, when it comes to motorcycles,  there are,
 g   comparatively speaking, amongst surface transportation
 9   systems, road systems, vehicles, relative few motorcycles,
IQ   and if one looks at  the motorcycle as a noise source which,
jj   for example, does not necessarily  produce more noise than
12   some automobiles --  and I'm not referring to modified
13   vehicles here -- the question is:   Is it appropriate to
14'  consider the motorcycle exclusively in  the Ldn descriptor,
15   or should it be also, or in addition to, or considered, in
15   some other descriptor fashion, for example,  the one which
17   takes into account the single event?
18              MR.  PEARSON:  I think based  on some of the surveys
19   that have been  conducted that suggest that motorcycles are
20   more annoying,  but perhaps — and  also  laboratory tests
21   would suggest that to be the case  -- that perhaps some other
22   measure in addition  to Ldn might be appropriate,  and in the
23   particular instance  of motorcycle  noise,  yes.
24              CHAIRMAN  THOMAS:  Do you have any recommendations
25   as to what that descriptor might be?
26              MR.  PEARSONS:  Not at this time.
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 1      •       CHAIRMAN THOMAS:   Thank you very much for taking
 2  the time to come in and  talk  to  us. .
 3             I would like  to hear  from  Mr.  James Taylor next,
 4  and following Mr. Taylor's remarks, we will hear from the
 5  representatives of Kawasaki Motors Corporation.
 6        .                 JAMES  TAYLOR
 7             Thank you  for the  opportunity  of giving my thought
 8  on motorcycle noise.  My comments  are to  be considered
 9  exclusively as the effect on  me  while in  my home or back yard
10  on  a  typical residential street, in Garden Grove, a
11  neighboring city a quarter of a  mile  south of here.
12             Adult cyclists probably living within the same
13  tract have, on occasion, raced and tested their machines on
14  the street.  After I  flagged  them down and explained the
15  noise annoyance and danger of speeding, cooperation has
16  been  almost complete.
17             Some young boys, approximately fourteen to
18  eighteen years old, have been more of a problem.  Their
19  excessively noisy motorcycles were used not only on the
20  street, but on their  driveways and front yards.   Speaking to
21  them  produced only temporary  and partial compliance.  Their
22  parents promised cooperation, but produced little.
23             Several anonymous  phone calls  to the police
24  likewise were  ineffective.  Finally,  I explained my dilemma
25  to  the  police  chief,  Frank  Kessler.  He sent some officers
26  out to  talk  to the boys. Whatever they said has been almost
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                                                              170
 1   ninety-five  per cent effective.
 2             Occasionally,  the boys would sneak a quick ride
 3   out  in  back  of their garages.  This is certainly understandab
 4   and  acceptable to me.
 5             Therefore,  speaking strictly from an unscientific
 6   off-the-wall viewpoint,  excessive and unreasonable motorcycle
 7   noise control appears  to  me to be a public relation education
 8   problem with backup of sincere local control.
 9             Manufacturers,  dealers and governmental agencies,
10   working in concert to  influence cyclists toward their
11   citizen responsibilities  is a most desirable approach.  Then,
12   the  heavy  hand of the  law will only be needed for the small
13   percentage of inconsiderate violators.
14             Also,  I would  add my vote to consider mopeds, or
15   any  engine .driven vehicle,  to be considered under the noise
16   control regulations.
17             Thank  you.
18             CHAIRMAN THOMAS:   Mr.  Taylor, thank you very much.
19   We always  like to hear individuals who come out and give us
20   their ideas  on this sort  of thing.
21             We've  had many debates in Washington amongst our
22   own  staff  over the last several years as wo what really
23   should  be  the role of  the Federal government in dealing with
24   motorcycle noise,  and  contrary to some perceptions that
25   others  might have,  there  is very serious dispute amongst even
26   our  own staff as  to the extent to which EPA should regulate
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                                                             171
 1  motorcycle noise.
 2             Now,  one side of that you have just given quite
 3  well,  I  think,  and that is,  it"is more a puolic relations
 4  problem,  it  is  more a local problem,  and therefore, if
 5  anything, perhaps  the Federal government is just going to
 6  mess  the thing  up,  it's just going to stick its oar into the
 7  water here,  and what really can it do.  That's on perspective
 8  and you've given that,  perhaps,  in terms of what you can do
 9  locally.
10             On the  other hand, I think I also hear you saying,
11  in your  closing remarks,  that there should be Federal
12  regulations.
13             MR.  TAYLOR:   Surely.
14             CHAIRMAN THOMAS:   Would you,  kindly, for us,
15  give  us  your views as to where you split these out, where
16  you think the role of the Federal government should be
17  involved in  here?
18             MR.  TAYLOR:   I don't think we know.  We feel we
19  hear  the both sides, and I just wanted to present the view
20  that  there are  local things  that are fairly successful, and
21  I would  like to see the Federal government come in with more
22  of a  selling spproach,  somewhat as truth in advertising, I
23  thin  it  is,  that requires various advertisers to include so
24  much  comment within their advertising of the dangers of the
25  product,  or  the concerns that they have.  I think we can
28  sell  this quiet motorcycling fairly well, not a hundred per
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                                                             172
 1   cent, but mostly.
 2              CHAIRMAN THOMAS:   Any other questions?  (No
 3   response from the  hearing panel.)   Thank you very much, Mr.
 4   Taylor.
 5              MR.  TAYLOR:   Thank you.
 6              CHAIRMAN THOMAS:   Mr. Roger Hagie, Kawaski.
 7                          ROGER HAGIE
 g              Good afternoon.   I believe you all have copies of
 g   my  statement.   I am going to try to avoid reading it word
10   for word.
11              My name is  Roger  Hagie.   I am the Legislative
12   Coordinator for Kawasaki Motors Corporation.  I'm also a
13   motorcyclist,  and  have  been  for the past fourteen or fifteen
14   years, and  during  that  time  I have  probably committed all
15   the noise related  scenes there are, and prior to the time
16   I started riding motorcycles,  I put playing cards in the
17   spokes of my  bicycles,  you  know, so I think I have seen
18   both sides  of it,  and  I would be pleased to, when I am done
19   here, answer questions  either as the representative of
20   Kawasaki or as  a motorcyclist.   I think I can talk to both.
21              We also will be submitting far more substantial
22   comments of a technical nature prior to June 16th  . . .
23   (inaudible)   There just has  not been time to prepare them
24   to  present  at this time,  so,  more technical information is
25   on  its way.   If you have some specific questions that you
26   would like  answered from us,  please let me know and I will
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 try  to  focus  on those areas  when we do submit our comments.
           MR.  EDWARDS:   Mr.  Hagie,  could you pull the
 microphone over to  you a little bit.
           MR.  HAGIE:   Is that better?
           Kawasaki Motors Corporation shares the concerns
 of the  Environmental  Protection Agency,  and the American
 public, of which we are a part,  with respect to the adverse
 impact  of noise from  all sources on our  health and welfare.
 Of course, that's why we're  all here  today.
           I  make this full  statement with the recognition
 that the EPA  has interpreted its authority under the Noise
 Control Act to  limiting,  as  limiting,  as well as to
 promulgating  regulations  for new products.
           As a result,  we have a proposed regulation to be
 considered today which will  have the  effect of taking the
 quietest motorcycles  and requiring them,  at significant cost
 penalties, to be made  even quieter, while not really
 addressing those motorcycles  which, by every analysis that
 I'm aware of, are responsible for the noise impact which is
 supposed to be  eliminated.
           Kawasaki believes  that Federal regulation of
 new motorcycle  sound  levels  is  advisable,  and we particularly
 support, at least in  concept,  those portions of the regulatior
which will aid  local  enforcement.
           We do not,  hoever, believe that  this proposed
 regulation, as  it stands,  represents  the  correct way to
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                                                             174
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achieve the health and welfare benefits  that  ultimately are
the goal of the Noise Control Act.
           There are two specific parts  of  the  motorcycle
noise impact situation.  The first, we have discussed quite
a bit here, people have talked about it,  it is  the  impact
caused by the excessively noisy motorcycles for whatever
reason it reached that excessively noisy state, but it is
this impact that causes people to write  to  their  congressmen,
or write to EPA, or appear at a public hearing, or  to call
up the police department and to complain about  somebody down
the street.
           The second impact takes into  consideration what
I believe some of your -- the questions  that  you  have been
asking, and some of your analysis has taken into  consideratioiji,
is the long, term impact of the motorcycle as  a  noise source,
assuming that sufficient quieting of all other  products  —
and "by all other products" I would have to assume  that you
mean all the modified motorcycles as well —  so,  in either
case, near term impact, or impact of excessively  noisy
20 ! aiocorcycles, or very long term impact -- motorcycles  as  a
21
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25
26
population being a noise impact — I believe enforcement
plays a critical role in both of these cases, and  I  think
that's pretty much what I want to talk about today.
           Years of industry experience, and EPA's own
analysis, indicate without a doubt that illegal modifications
made by a minority of owners, such as removal of exhaust
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                                                             175
 1  baffles,  or  removal  of the  complete exhaust system, plus
 2  the noise of older vehicles,  is  the overwhelming cause of
 3  motorcycle noise  impact.
 4             Since  the Noise  Control Act has not given EPA
 5  the authority to  exercise control over the noise level of
 6  in-use products,  EPA is going after new product regulations.
 7             However,  given the knowledge the knoweldge that
 8  new products are  not really responsible for the noise impact,
 9  it is fruitless for  EPA to  attempt to reduce that impact
10  through new  vehicle  controls.
11             One effect this  all may have -- I'm not an after-
12  market manufacturer,  and  I  don't presume to speak for
13  them -- but  in the case of  both  new vehicle manufacturers
14  and the after-market manufacturers,  if a regulation is in
15  effect, and  it's  followed by some people and not others,
16  and if there is insufficient enforcement to provide for
17  penalties for those  who do  not comply, then this regulation,
18  I think is,  in effect, worse than no regulation at all.
19  There are costs and  problems attendant with complying xtfith
20  the regulation, and  those must be added  to the cost of the
21  product,  and the  cost of  that product goes up, and if there
22  are some  manufacturers who  .cana through lack of enforcement
23  can continue to sell products which do not properly comply
24  with the  regulation,  they gain a cost benefit, and perhaps
25  a performance benefit, depending on the product.
26             The real  responsibility for the enforcement of
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                                                             176
 1   in-use motorcycle noise falls to state and local governments.
 2   We  are aware of the efforts  by EPA to educate and motivate
 3   local  governments to accept  the enforcement burden.
 4   Unfortunately,  state and local governments still strenuously
 5   avoid  spending  any money or  manpower for vehicle noise
 6   enforcement.  In fact,  as I  understand,  they keep coming
 7   back to EPA and asking  for money.
 8              A couple of  examples here on my experience with
 9   local  enforcement,  when we first met with the State of
10   Oregon several  years ago to  attend hearings wherein the
11   Environmental Quality Commission adopted the vehicle noise
12   limits which essentially are in effect there now,  when the
13   local  —  this was  held  in Coos Bay,  Oregon -- one of the
14   local  sheriffs  got up and testified before the Commission,
15   and said  that his  sheriff's  department personnel had much
16   better things to  do with their time than to chase after a
17   noisy  motorcycle,  the Environmental Quality Commission could
18   promulgate  all  the  regulations it wanted,  his people wouldn't
19   spend  their time  enforcing it.
20              I  also  remember,  a couple of  months ago,  reading
21   a couple  of newspaper articles  about the Scottsdale,  Arizona,
22   Police Department.   They  had bought a sound level  meter a
23   couple  of years before  that,  but nobody  in the Department
24   knew how  to use it,  and it was  sitting around .  .  .
25   (unintelligible) they weren't sure what  they were  doing with
26   it,  and it  just sat  in  a  drawer somewhere.
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                                                             177
 1             Lacking effective  enforcement  by  these state and
 2  local governments, the regulation of new  vehicle  sound
 3  levels will not reduce motorcycle noise impact.   Until such
 4  time as effective local enforcement programs  are  in operation
 5  throughout the United States,  there will  be no health and
 5  welfare benefit to justify the stringent  control  of new
 7  motorcycle sound levels.
 9             And I will digress  again.  Kawasaki produces a
 9  motorcycle for police use, and we sold a  number of these
10  motorcycles to the police department in the city  where I
11  used to live, a city here in  Orange County, and I won't
12  mention any names, in order to do it we had to replace the
13  standard exhaust system with  an after-market  system,  because
14  the standard .exhaust system got in the way of all the police
15  radios, and. all the equipment  that they carried,  so we
16  contracted out with an after-market supplier  to provide
17  mufflers for these police bikes, and at the time,  I believe
18  they met the 86 decibel California standard.  This muffler
19  consistes of a partly absorptive and a partly restricting
20  baffling arrangement, and the  baffle at this  time was
21  riveted by three rivets around the back end of the pipe,
22  in the pipe, and I live about  a half a block, actually eight
23  doors down from the police department in  the  city, and I
24  could tell when the policemen  came in off their shift
25  because they had all taken the baffles out, drilled out the
26  rivets, taken the baffles out  and drilled all the holes in
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                                                             178
 the thing and they had thrown away the fiberglass, and then
 put the baffle back in and secured it with sheet metal
 screws.  Now, I thought this had been done at the police
 garage, or out behind the Winchell's, but it had been done
 and I could tell because we had noise-tested these motorcycle
 when we produced them and I could tell the difference in the
 noise level,  so if the police departments are modifying their
 motorcycles for whatever reason, it's a little hard to tell
 the guy on the street, "Well, your motorcycle is too loud,"
 you know, "too loud,  kid, so quiet it down."
            Current models produced by Kawasaki meet on-road
 sound levels  of 83 decibels, and off-road sound levels of
 86 decibels,  as measured by SAE J-331a.   These vehicles are,
 in fact,  significantly quieter than EPA's estimated current
 baseline motorcycle sound levels which primarily date back
 to 1975.
            As a result,  I believe that EPA's estimation of
 current impacts due to new vehicles is overstated, and
 since the baseline new vehicles are somewhat quieter than
 the analysis  shows, I believe that EPA's  estimation of
 reductions in impacts attributable to the new vehicle
 controls  is also overstated.
            In addition,  EPA's analysis shows that motorcycle
.noise impact  can best be reduced through  in-use enforcement
 rather than through control of new vehicle sound levels.
            EPA has estimated, for purposes of their
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                                                             179
 1  background document  that  twelve per  cent  of all motorcycles
 2  have been modified in such a way  as  to  cause their noise
 3  level to increase dramatically.   I believe  that percentage
 4  was basically derived from an MIC study on  after-market
 5  sales, and I think you probably find that the incidence
 6  of modifications have been higher than  that,  because,  in
 7  addition to modifications which are  made  as a result of
 8  the installation of  the after-market system,  there are those
 9  who do the hacksaw modification also, where the standard
10  exhaust system just, half of it stays on  the motorcycle and
11  the other half lives in the garage.
12             EPA further estimates  that just  reducing this
13  percentage of loud modified motorcycles to  three per cent,
14  and making no reduction in new vehicle  sound levels, would
15  provide the same total reduction  in  motorcycle noise impact
16  as would be obtained through the  proposed new vehicle
17  regulation with all  of its costs.
18             Impact reductions are  available  through reduced
19  new vehicle sound levels, with enforcement, or through
20  enforcement alone.   But who pays  for the  reduced noise
21  impact?  With this proposed regulation  of new vehicles,
22  the people who shoulder the cost, which,  as EPA estimates,
23  will be considerable, are the people buying the new quiet
24  motorcycles.
25             However,  if the method chosen  to reduce noise
26  impact is through enforcement, the people that shoulder the
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                                                             180
 1   cost  are' those with the excessively noisy motorcycles who
 2   will  have to  quiet them down.   I submit that enforcement is
 3   not only more effective,  but also,  more equitable.
 4              I'll  skip the next page, if you wish.
 5              Rather than impose excessive and burdensome
 6   regulations on manufacturers and purchasers of new quiet
 7   motorcycles,  Kawasaki suggests that EPA request the
 3   necessary medications to the Noise  Control Act, including
 9   appropriations for state and local  grants, to insure that
10   adequate enforcement capability and commitment are present
11   at the  local  level.
12              At the same time, establishment of sound levels
13   of 83 and 86  for on and off-road motorcycles will insure
14   that  the new  motorcycles are quiet.
15              Regulating new motorcycles  to significantly
16   lower sound levels may,  in  fact, be counter-productive in
17   terms of total noise impact.
18              Attempting to produce motorcycles to EPA's
19   proposed long term new vehicle levels  would result in
20   significant price,  weight,  styling  and performance,
21   penalties.                    	"— 	 -		 —
22              Without enforcement to discourage the types of
23   owner modifications which result in very high noise levels,
24   the motorcycle owners will  continue to personalize their
25   vehicles with the goals  of  improving performance, reducing
26   weight,  and upgrading styling.
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                                                             181
 1             Motorcycles  produced at noise levels lower than
 2   today's will  suffer  even  greater incidence of owner
 3  modification  than  the twelve  per cent estimated by EPA.
 4             According to EPA's own analysis,  a small percentag
 5   of owner modifications  resulting in increased noise, is
 6   sufficient to offset whatever reduction in impact is
 7   projected to  occur as a result of reduced new vehicle levels.
 8             With  this precarious balance between new vehicle
 9   levels and modifications,  and insufficient enforcement to
10   prevent excessive  modifications,  reduction of new vehicle
11   levels will not  result  in a quieter environment.
12             Kawasaki  further maintains that the elaborate
13   production verification process,  and selective enforcement
14   auditing provisions  of  this proposed regulation,  are
15   unnecessary.  The  certification process proposed in these
16   regulations represents  an additional unnecessary burden on
17   the motorcycle industry and EPA.
18             In lieu of the elaborate production verification
19   and other requirements, EPA could simply establish new
20   vehicle sound levels, and specify the test procedure to be
21   used, in determining compliance.
22             Occasional testing of randomly selected motorcycle;
23   obtained through dealers  or private individuals will
24   identify those motorcycles which exceed the  standards, and
25   enforcement action can  be taken as appropriate.  This method
26   is very effective  because it  provides a strong economic
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                                                             182
 1   incentive  for  a manufacturer to insure that his vehicles
 2   comply.
 3              Adopting this  philosophy of regulation would
 4   eliminate  an expensive and time consuming certification and
 5   selective  enforcement auditing burden on the manufacturer,
 6   and  significantly reduce  the mountain of paperwork that
 7   the  proposed regulation would require the manufacturer to
 8   produce, and EPA to receive, read,  analyze,  respond to,
 9   and  file somewhere.
10              One of the stated goals  of President Carter's
11   administration is to reduce the cost and complexity of
12   government.  This seems to be as good a place as any to
13   start.
14              Effective control of motorcycle noise is
15   possible,  but  not through regulations such as these,  which
16   are  expensive  and not cost effective, because they try to
17   bring  about quiet by starting at the wrong end.
18              This regulation would cause significant new
19   motorcycle price increases, and the general disruption of
20   the  industry.   It does not return as great a level of
21   noise  reduction as effective local  enforcement.
22              I hope that EPA is flexible enough to realize
23   that a method  other than  inflationary new product regulations
24   may  be the best way to achieve an environment free from
25   noise  that jeopardizes the health and welfare of the
26   American people.
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                                                             183
 1              I would be pleased to answer any questions about
 2   this,  or any other matter.
 3              CHAIRMAN THOMAS:   Thank you, sir.
 4              Is it Kawasaki's  position that the U. S. EPA shoulfl
 5   not issue motorcyle regulations affecting newly manufactured
 6   motorcycles?
 7              MR.  HAGIE:  No.   I believe it is our position
 8   that EPA should issue national regulations.
 9              CHAIRMAN THOMAS:   At what level should they be?
10              MR.  HAGIE:  I mentioned in here 83 and 86 for
U   on-road and off-road.
12              CHAIRMAN THOMAS:   Are you familiar with the
13   Noise Control Act?
14              MR.  HAGIE:  Vaguely, yes, but not like a lawyer
15   would be.
16              CHAIRMAN THOMAS:   Let me then bring to your mind
17   here what that law requires  of the EPA administrator.  He
18   must first determine whether or not a product is a major
19   source of noise in the environment necessitating Federal
20   regulatory action.  He must  then set such noise level
21   standards as are requisite  to protect the public health and
22   welfare,  taking into account the availability of technology
23   and the cost of compliance.
24              Is it Kawasaki's  position that technology does
25   not now exist to reduce noise levels of motorcycles below
26   83  decibels?
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                                                             184
 1          -MR. HAGIE:  No,  that would not  be our position.
 2             CHAIRMAN THOMAS:  Fine.  Then the next element
 3  is the cost element.  You referred  to significant costs
 4  associated with these regulations,  price increases in
 5  particular.  Has Kawasaki determined on its  own what it
 5  believes those price increases will be for its  product?
 7             MR. HAGIE:  I do not have that  information
 g  available.  That is part of the information  we  would hope
 9  to submit in writing before June  16th.
10             CHAIRMAN THOMAS:  And  therefore,  you are saying
11  they are significant, based on what?
12             MR. HAGIE:  In a good measure,  upon  EPA's own
13  analysis, which, of course, was based on information which
14  we provided to them some time ago.
15             'CHAIRMAN THOMAS:  Fair enough.  I just wanted
16  to know who said it was significant, whether it was Kawasaki
17  saying it is significant based on its data,   or whether
18  Kawasaki is saying that it is based on EPA's  data?
19             MR. HAGIE:  At this point, we're  saying it is
20  based on EPA's data.
21             CHAIRMAN THOMAS:  Fair enough.  Okay.
22             Why don't we just leave  it to the states and get
23  the EPA out of the regulations business entirely for
24  motorcycle noise?
25             MR. HAGIE:  Well, to be  honest  with  you, from
26  our point of view, it would be easier to deal with one
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                                                             185
  1   national regulation rather than several state regulations.
  2   Very  bluntly,  that is one of the reasons we would like to
  3   see national regulation.
  4              CHAIRMAN THOMAS:   Well,  I suspected that might be
  5   your  answer,  and just so  that you would likewise be familiar
  6   with  that,  and for others who are in attendance, EPA would
  7   very  much like to be out  of this business too, and we don't
  8   like  the idea at all of being used by the manufacturers to
  9   set a national preemptive standard precluding state or local
 10   governments from taking effective action, actions that they,
 11   in their communities, think is necessary.
 12              If we were to  do as you suggest, all we have
 13   done  is  the most cost ineffective thing, which would be to
 14   set a national standard which effectively accomplishes
 15   nothing  at all.
 16              Now,  from my perspective,  that doesn't make
 17   sense for the Federal government to do something of that
 18   sort.  Does it make sense to you?
 19              MR. HAGIE:  My suggestion relative to what I
20   think EPA should do is not limited just to establishing a
21   new product regulation.  I suggest that EPA, perhaps with
22   the assistance of industry,  or whoever else is necessary,
23   return to Congress and request modification of the Noise
24   Control  Act to provide a  mechanism to insure effective local
25   enforcement,  and I believe that a good deal of the testimony
26   that  we've heard today, and over this past weekend,  has
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                                                              186
 I   indicated that effective enforcement can help reduce the
 2   motorcycle noise.   I believe,  personally, that that would
 3   be  the  most cost effective way to do it.
 4              CHAIRMAN THOMAS:  Fair enough, Mr. Hagie.  I
 5   can't quarrel  with that approach.  Are you familiar with --
 g   that the  Congress  — both houses of the United States
 7   Congress  — recently held hearings on the Noise Control Act?
 8              MR.  HAGIE:   Yes, I  am.
 9              CHAIRMAN THOMAS: Has Kawasaki made representation
10   to  either of the major committees of those houses with
11   regard  to what you are saying  here?
12              MR.  HAGIE:   We have not.
13              CHAIRMAN THOMAS:  Do you intend to do so?
14              MR.  HAGIE:   I believe we will.
15              CHAIRMAN THOMAS:  Fine.   At the present time,
16  we're stuck with this  law.
17              MR.  HAGIE:   Okay.
18              CHAIRMAN THOMAS:  Should we not regulate under
19   this law?
20              MR.  HAGIE:   I believe that the long term levels
21  which are  in the proposals  based on reviewing EPA's own
22   analysis,  do not seem to return as  great a benefit as
23   enforcement, so it is  difficult for me to say,  "yes,
24   regulate," "no,  regulate."
25              Lacking enforcement,  I don't believe that even
26   the most  stringent now products standard will have the
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                                                             187
 1  desired effect of  achieving  reductions  in  noise impacts,  so
 2  if enforcement is  not  forthcoming,  a  standard requiring
 3  quieter new motorcycles will basically  only  have the effect
 4  raising their prices and  reducing  their performance,  and
 5  perhaps, reducing  their marketability,  so  there are two parts
 6  to this, and I don't believe they  can be separated.
 7             To have enforcement without  new product regulation
 8  I believe would only solve part  of the  problem.   On the
 9  other hand, to have new product  regulation and no enforcement
10  would similarly solve  very little  of  the problem.
11             CHAIRMAN THOMAS:  Mr. Hagie,  it may be difficult
12  for some of those  observing  or participating in these
13  hearings sometimes to  fully  appreciate  the fact that EPA,
14  and companies such as  yours, happen to  be  almost in total
15  agreement on these points.
16             MR. HAGIE:  Uh huh.
17             CHAIRMAN THOMAS:  Almost total  agreement.   And
18  the reason that we're  very unhappy with the  situation that
19  we're in, and one  of the  reasons we're  holding these hearings
20  in Orange County,  is because we  see EPA getting blamed two
21  and three years from now  for not having "cleaned up" the
22  motorcycle noise problem, and we don't  think it can be done
23  unless there is a  major attention  by  state and local
24  enforcement elements such as you suggest here,  and such as
25  Mr. Walsh suggested earlier, and such as Mr.  Davidson
26  suggested on Friday representing Harley-Davidson.
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                                                             188
 1           '  We quite  agree,  and  so,  one  of  the  fundamental



 2  questions we have  to  ask of manufacturers  such as  yourself



 3  here, maybe EPA should just get the heck out of this



 4  business and not set  these  standards because I don't see



 5  there's  a winner there for  anybody, except maybe the



 6  manufacturer who ends up with a single  national uniform



 7  standard.  Do you  agree?



 8             MR. HAGIE:  I think  that's a little bit of a



 9  loaded question.   Sure.  (Laughter)



10             I think that I am aware  of some motorcycles that



11  have been imported into this country during the past few



12  years which have met  no noise standards and they are



13  essentially for street use.  There  are  benefits to be



14  obtained in terms  of reduced impact from the regulating new



15  motorcycles at levels that  I suggested, perhaps as Mr.



16  Walsh has suggested.



17             Future  consideration should  not preclude lower



18  levels if it has been demonstrated  that the enforcement has



19  been brought up to speed such that  benefits will be obtained



20  through  future reductions.  I would not rule that out, and



21  I believe that our written  comments will discuss that further



22             CHAIRMAN  THOMAS:  Mr.  Hagie, I  think we are all



23  in  agreement -- perhaps the figures we're  not  quite in



24  agreement on -- but  we're all in agreement that the great



25  majority of America's motorcycling  population  are pure of



26  heart and are socially conscious  beings who do not modify
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                                                             189
 1  the muffler exhaust  systems  on their motorcycles, but they
 2  are sensitive  to  this kind of a problem,  and it is only in
 3  a relatively small percentage of folks who are causing a
 4  majority  of the problem.   Are we in general agreement on
 5  this?
 6      '       MR. HAGIE:   I  think we are.
 7             CHAIRMAN  THOMAS:   Therefore, if, for that great
 8  majority  who are  not going to, in the future, modify their
 9  bikes,  clearly by reducing the noise levels a bit further,
10  we are  going to achieve some benefits, because they are not
11  going to  be modified, we  are going to have quieter machines
12  in the  environment.  The  logic seems inescapable from the
13  foregoing.  Would you agree?  Loaded!
14             MR. HAGIE:   Also loaded.  Yes, and no.  (Laughter)
15             CHAIRMAN  THOMAS:   That's the kind of answers we
16  need more of around  here.   Okay.
17             MR. HAGIE:   EPA's analysis does indicate the
18  motorcycles are a very  small percentage of the total traffic
19  stream,  and that  unmodified motorcycles are relatively an
20  insignificant  total  noise source.  Now, I won't get into
21  a discussion with you whether or not EPA's regulations on
22  other products were  going to be effective in the future or
23  not.  That is  not my specialty.
24.             But, given the fact that, overwhelmingly, all
25  the analyses  that I  have  seen indicate that modified
26  motorcycles are 6 to 12 to 25 decibels louder than the
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                                                             190
 1  standard unmodified motorcycle,  and that these modifications
 2  were primarily performed  in  defiance of existing laws and
 3  regulations,  and  enforcement capability to  prevent these
 4  modifications is  simply lacking,  that it seems inequitable
 5  to me  to take the burden  of  reduced noise impact and place
 6  it on  the shoulders of the people who purchase and maintain
 7  their  motorcycles in  a quiet condition,  and leave those who
 8  are modifying their motorcycles  to excessively high levels,
 9  just leave  them to run free.
10              CHAIRMAN THOMAS :   I  think we would find that
11  logic  hard  to argue with.
12              You manufacture — I  believe that you said in
13  your statement that your  products are being sold here in
14'  the United  States, and meet  an  83 decibel level.  Is that
15  correct?
16              MR. HAGIE:  That  is  according to the California
17  test procedure of the SAE J-331  procedure.
18              CHAIRMAN THOMAS:   Why are they meeting an 83
19  decibel  level?
20              MR. HAGIE:  Because  the law says so, and because
21  I believe the motorcycle  market  has changed.
22              CHAIRMAN THOMAS:   Do  you manufacture motorcycles
23  not for  the U. S. market  or  the  California market that are
24  higher than the noise levels of  the products that you are
25  selling  here in California,  for example?
26              MR. HAGIE:  I  do  not  believe so, but I couldn't
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                                                             191
 1  make that as PTI authoritative  answer.
 2             CHAIRMAN THOMAS:  I would like  to  ask that questio
 3  of Kawasaki, please, and  I would request your response to
 4  that in the formal record.
 5             MR. HAGIE:  We'll do  that.
 .6             CHAIRMAN THOMAS:  Mr.  Kozlowski?
 7             MR. KOZLOWSKI:  Mr. Hagie,  you  admitted to having
 8  been a sinner in  the past, modifying your  bike.   I assume
 9  you're repentent.  But, do you still modify bikes?  Did you
10  modify your bike?
11             MR. HAGIE:  Well, as  a matter of  fact,  one
12  portion of your regulation would prohibit  the installation
13  of.a racing exhaust system on  a  street-legal  or certified
14  motorcycle.  Am I correct in that interpretation?
15             MR. KOZLOWSKI:  It  depends if it exceeds the
16  standard.
17             MR. HAGIE:  Well, okay.   This is one that exceeds
18  the standard.  Well, in fact,  I  just did modify my motorcycle
19  this weekend.  I  put a raching exhaust system on it for
20  racing on a racetrack  on  my motorcycle,  which had started
21  out as a street bike,  so  yes,  I  am  still a sinner.
22             MR. KOZLOWSKI:  But,  with good  morals.   (Laughter)
23             MR. HAGIE:  I  didn't  ride it on the street.
24             MR. KOZLOWSKI:  Okay.  And you  wouldn't ride it
*5  on  the street, you say?
26             MR. HAGIE:  No, I would  not.
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                                                             192
 1          -MR. KOZLOWSKI;  Okay.   The  question I wanted to
 2  ask, really -- that was  the  preamble,  and I didn't really
 3  expect  you to answer  that, but  --  what type of person, in
 4  fact, does modify his bike,  in  your opinion?
 5             MR. HAGIE:  I couldn't  even begin to categorize.
 6  Someone in here  suggested that  they were perennial sophmores.
 7  Perhaps that's as a good a description as I can come up with.
 8  I  can not categorize.  I see them  from the very young to the
 9  very old.  I could not put a figure on that.
10             MR. KOZLOWSKI:  Realistically speaking, with
11  even -- even with large  difusions  of Federal money, Federal
12  technical guidance, Federal  attention  to the anti-tampering,
13  the modification, the tampering problem, if you have these
14  eternal sophmores or  fourteen year olds who modify their
15  bike, if the police are  not  intending  to, in fact, ground
16  them, it appears that any anti-modification program is
17  doomed  to failure, at least  one might  suggest that -- I
13  might suggest that.
19             In your opinion — in Kawasaki's opinion, what
20  is the  prognosis for  success in an anti-modification program
21  to the  hard core people  who  modify?
22             MR. HAGIE:  Well, I'm not a sociologist.  I
23  suspect that there will  always  be  a percentage who will not
24  be responsive to either  emotional  or intellectual persuasion,
25  and perhaps not  even  financial  persuasion.  Perhaps there
26  are a segment who will never change.  I believe that probably
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                                                             193
 1   the  larger percentage  of people who do not buy their
 2   motorcycles  in  such  a  way as  to increase the noise levels,
 3   I  think  the  majority of these people would be responsive to
 4   one  or the other  of  these pressures,  emotional, intellectual
 5   or financial.
 6             MR.  KOZLOWSKI:   California has a new product
 7   standard law.   California has,  in some areas, a fairly
 8   effective anti-modification law,  and a fairly effective
 9   enforcement  activity,  certainly better than the rest of the
10   country,  and perhaps better than we expect out of the rest
11   of the country.
12             California  is still, as .1 recall, running about
13   fourteen per cent modification test,  and they do catch the
14   people.   In  some  cases,  have  some fairly effective enforcemen
15   action.
16             Some of those people go right back out on the
17   street with  modifications.
18             What I am saying is, California may be a prototype
19   of the best  we  can achieve in any reasonable sense, and
20   still they run  fourteen per cent, which isn't so far off
21   from the figures  that  we use,  and probably not too much
22   different from  the figures that we used for modification.
23             My point  is,  suppose that problem exists, and it
24   can't be solved.   Does the EPA, then, do nothing with
25   motorcycle noise  and concede  that it is a state and local
26   problem,  there's  nothing that can be done, so go on to
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                                                              194
 1   something else.
 2              MR. HAGIE:   Are you suggesting that I make EPA
 3   policy decisions?
 4              MR. KOZLOWSKI:   No, no, I'm asking for your opinioji
 5   to  help us ...
 -6              MR. HAGIE:   Yes.   Well, I would hope that we  .  .  .
 7              MR. KOZLOWSKI:   ... we need somebody to do
 8   it.   (Laughter)
 9              CHAIRMAN THOMAS:   It's obvious we're not
 10   competent according th these remarks we have heard.
 11              MR. HAGIE:   The State of California, I believe --
 12   and again,  I'm not trying  to speak for the State of Californi
 13   but I  believe they have six noise teams operating throughout
 14   the State of two  men each.   That's twelve people.   I don't
 15   know what the current  population of the State of California
 16   is,  but it certainly is difficult for twelve people to
 17   catch  everybody.
 18              If the current  enforcement activity in California
 19   is  as  good as can be expected,  then I would despair for the
 20   solution of the motorcycle noise problem.
 21              If, however,  you  know — I don't know about all
 22   of  the cities and counties  in California —  I know there  are
 23   some who  are attempting to  establish noise control capability
 24   If  the county and city capability were increased over what
25   it  is  today, and  if  the  State capability were at the same
26   level,  I  believe  there would be  a more effective enforcement;
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                                                             195
 1  but  again,  I  am not,  you know,  supposed to speak for the
 2  istate  or  local  governments.
 3              MR.  KOZLOWSKI:  Once again,  talking about
 4  modification, what has,  is  or will,  Kawasaki do with respect
 5  for  them  to reducing  modifications?
 6              MR.  HAGIE:  We have  supported the Motorcycle
 7  Industry  Council for  several years  in its efforts.  Kawasaki
 8  has  not taken direct  efforts, such  as taking out ads in
 9  publications  saying that, "Kawasaki  urges that you don't
10  modify your motorcycle."
11              In fact, under EPA's exhaust emissions regulations
12  we are prohibited from making a statement to the effect,
13  "You shall  not  modify your  motorcycle," and because the EPA
14  regulations prohibit  us  from doing  that, under restraint of
15  trade  and' all the other  implications that we have, but the
16  situation we  have there, if you say, "If you use parts
17  other  than  our;  parts,  please be certain that they are
18  certified to  EPA's regulations," and that's about as far
19  as we  can go  with that.
20              MR.  KOZLOWSKI:  Have you had any other kind of ant
21  modification  program  recognizing the general problem, the
22  social problem; have  you done anything else, or do you intend
23  or would  you  intend to do anything  else to tell people, for
24  example,  that -- I don't know if this is true of Kawasaki --
25  but  if you  modify your system,  you  are not going to get the
26  same performance; i.  e., that hacking — hacksawing, taking
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                                                             196
 1   the muffler  off,  doesn't give you improved performance, which
 2   is something that is  against the Federal law to modify, and
 3   then  put  on  some  sort of campaign to reduce modifications.
 4             MR.  HAGIE:   I certainly think -- I believe that
 5   we are  not doing  anything of that sort currently,  but I
 $   believe that we could,  but perhaps in conjunction with other
 7   industry  companies,  the government,  the dealers, and the
 8   state and local officials.   Perhaps  a program like that could
 9   have  some effect.
10             MR.  KOZLOWSKI:   Several other commentors suggested
11   that  they thought it  would help  too.   I don't know.  There
12   is a  hard core  group  out there.   I don't know.
13             You  indicated in your testimony that you thought
14   that  our  per cent modification was conservative.  What do
15   you think is the  real percentage of bikes being modified?
16             MR.  HAGIE:   I don't have that statistic.  I just
17   believe that EPA's percentage was drawn from an MIC study
18   which indicated the sale of after-market systems for
19   motorcycles; and  I believe,  in addition to considering the
20   sale  of after-market  systems which increase the noise -- and
21   there are some  which  do not — there are modifications that
22   people  make, such as  cutting off the exhaust system, or
23   running a set of  straight pipes  obtained from some other
24   source, that would not have shown up in this particular
25   analysis, but I don't have figures on what percentage of
26   this  type of modification might  be.
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                                                             197
 1              MR.  KOZLOWSKI:  Okay,  but just directionally, you
 2   think we're too low,  because of that?
 3              MR.  HAGIE:  Yes,  that's right.
 4              MR.  KOZLOWSKI:    How much would it cost Kawasaki
 5   to build a  60  decibel bike?
 6              MR.  HAGIE:  In  some of our very small motorcycles,
 7   we are  at that  level  now.  by the SAE J-331a test.
 8              MR.  KOZLOWSKI:  Let's say, bring your line down
 9   below the 80 decibel.
10              MR.  HAGIE:  That's part of the  information that I
11   hope we'll  be  submitting by  June 16th.   I  do not have that
12   information now.
13              MR.  KOZLOWSKI:  Fine.  How long will it take?
14              MR.  HAGIE:  To  build those motorcycles?
15              MR.  KOZLOWSKI:  Yes,  to get them on line.   Will
16   you submit  that too.
17              MR.  HAGIE:  Yes.   This statement is from the
18   distributor of  Kawasaki Motors Corporation.  The technical
19   information will  come from Kawasaki Heavy  Industries,  who
20   is the  manufacturer of the motorcycles.
21              MR.  KOZLOWSKI:  Okay; fine.   But you will  us
22   what it will cost to  go to 80,  and then, how long it  will
23   take.
24              MR.  HAGIE:  Yes.   We  will discuss cost and lead
25   times.
26              MR.  KOZLOWSKI:  In several sections of your
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                                                             198
 1   testimony you talk about the administrative burden, of
 2   testing costs,  how much this complicated enforcement scheme
 3   is  going to  cost,  and how confusing it will be; and I want
 4   to  know how  much testing do you think the EPA regulations
 5   would require you to  do -- "you" being Kawasaki?
 6      •       MR.  HAGIE:   Well, the production verification
 7   test,  of course,  the  single test of a production unit, is
 8   not an excessive testing burden.
 9             The labelverification and labeling testing
10   requirements have a potential for "S" selected enforcement
11   auditing.  Those are  what we would consider to be the
12   burdens,  or  the increased cost.
13             Our testing facility is relatively small, now.
14   We  have one  small piece of tape strip that runs down the
15   center of the factory that we use for our noise test at
16   the present  time.   If we have to do very large scale tests -
17   the situation a couple of years  ago when we had to go
18   outside the  factory and rent a piece of land --or rent the
19   use of a piece of land — that had a painted strip on it,
20   and run a noise test  out there.
21             MR.  KOZLOWSKI:   That could be very expensive,
22   though?
23             MR.  HAGIE:   In Japan it can be.  A strip of land
24   is  very,  very expensive in Japan.   There's one .  . .
25             MR.  KOZLOWSKI:   How about Santa Barbara?
26   (Laughter)   Well,  then,  it is not the product verification,
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                                                             199
 1   it's not  the required testing that's  expensive,  there is the
 2   possibility that  there may  be some other testing,  because
 3   there  is  no required SEA testing.   That's on the call by the
 4   administrator.
 5             MR. HAGIE:   Yes,  but as was  pointed out by Suzuki,
 6   there  are certain costs attendant  to  being prepared to
 7   respond,  particularly to some of the  time deadlines that
 8   EPA specifies  to  respond to such an SEA test request.
 9             MR. KOZLOWSKI:   And what would those  costs be?
10             MR. HAGIE:   I don't have that information.
U             MR. KOZLOWSKI:   Would you  submit that?
12             MR. HAGIE:   Yes.
13             MR. KOZLOWSKI:   Also, let  me point out, as I did
14   to  the representative of Suzuki, is that the Act itself
15   allows the administrator to test without limit and without
16   any special plan.  What the SEA does, and the label
17   verification does, is  to say,  "This is  the type  of statistica
18   scheme we will use when we  want to test for compliance," so
19   even if we deleted the SEA  regulation,  that doesn't mean
20   that we wouldn't  ever come  back and test -- require the
21   manufacturer to test.   Congress specifically dealt with that
22   subject.   They had intended we test/'for EPA to  require
23   reasonable testing to demonstrate  compliance."
24             The SEA merely lays out a  statistical scheme
25   which  is  very  efficient --  maybe complex, but even so, it
26   is  still  a very efficient way to test.
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                                                             200
 1           •  Record keeping  also.   I made the statement --



 2  perhaps  to put your  technical comments  in some perspective



 3  when you do make  them --we  had  envisioned that the record



 4  keeping  would be minimal,  that the reporting requirements



 5  would be minimal.  We anticipate,  for example, after you



 6  get through the initial  submission of describing ycur test



 7  site, maintenance, instruction,  anti-tampering list, that



 8  you could submit  a one page  report for  each category tested,



 9  and the  whole program is  designed so that there would be a



10  minimal  amount of PV testing. The categories would cover



11  large groups of products.



12             And so, if we missed  the. boat, if we, in fact,



13  have categorized  that there  is extensive testing, if we



14  have specific requirements in the record keeping and



15  reporting that require extensive administrative burden,



16  let us know, okay?



17             MR. HAGIE: Yes.



18             CHAIRMAN  THOMAS:   I would like to comment, Mr.



19  Hagie.   I have been  listening to those kinds of comments on



20  the testing burden,  now,  for three years, from firms which



21  are now  having to comply with these regulations, and their



22  perception of what was required, as presented in their



23  testimony, as opposed to what they are  actually doing in



24  practice, which we now know, is  night and day.



25             MR. HAGIE: If  I  could respond to that — and I



26  realize  that you  are a different branch of EPA -- but the
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                                                             201
 1   testing, and the  record keeping,  and the paperwork, as we



 2   expect  it  to be  to go along with the air emission standards



 3   was  about  one-twentieth of what  it has turned out to be, and



 4   I believe  we're  a bit gun shy.



 5              CHAIRMAN THOMAS:  Yes,  and we understand that,



 6   and  the official that heads the  noise enforcement group, of



 7   which Mr.  Kozlowski is one part,  also has responsibility



 g   for  a good bit of the air emissions program,  and the noise



 g   program is rather considerably different, we  believe,  from



10   much of what is  required on the  air emissions side,  and



11   perhaps this goes to the heart of it, is that firms  who have



12   had  to  deal with the air emissions side are kind of  thinking



13   in that mind set, and in fact, what we are asking to do in



14   the  noise  area is rather considerably different. Perhaps,



15   in that context,  you might want  to,  in the formal comments



16   you  make,  reconsider this,  or consider it further.



17              MR. HAGIE:   All right.



18              MR. KOZLOWSKI:   That was  my speech,  darn  it.



19   (Laughter)



20              MR. EDWARDS:   If I could just put  in my two cents



21   on this same issue.   Maybe everybody in the panel is a little



22   bit  saddlesore on that particular  point.   I'm>not in the



23   enforcement part  of EPA so I  think I can state  this  without



24   having  anything  to  do with what  I  do.



25              I think  that in the development of all the  noise



26   regulations,  EPA  has  strived  mightily to  keep the — I mean
        
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                                                             202
 1  I'm saying  this  from an outsider's  standpoint, really --
 2  mightily  to keep the testing and reporting burden down,
 3  and personally I was -- I won't say this literally — I was
 4  expecting people to  come in and say,  "By God, you've done
 5  a  fantastic job  of keeping  everything down," and here, poor
 6  Rich,  and Vic, get the  other end.
 7             Keeping the  testing and  reporting down, I can
 8  assure you, was  very much in the forethought, as people do,
 9  and to write  a long  regulation would be very unfair and
10  onerous,  if you  would care  to think about this for a second,
11  sometimes the way to keep testing down is to write long
12  regulations.  EPA doesn't  permit that.  You can write very
13  shore  regulations which have tremendous requirements.
14              That's just  a statement  by me.
15              CHAIRMAN  THOMAS:  Well,  we stress this point
16  once again, and  the  firms that I was referring to, when I
17  said I have been hearing this for three years, this has to
18  do with  the noise regulations.
19              Now,  I want  to repeat that once again.  These
20  corporations  --  General Motors, Ford, others, who have
21  likewise  had  rather  extensive experience with EPA on air
22  emissions,  and so their comments were very much similar to
23  yours  with  respect to the noise regulations, for example,
24  on medium and heavy  trucks.
25              Now,  in fact, and I think that their actual
26  experience  in the amount of reporting that they have had to
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                                                             203
 1  do, and  the amount  of  testing that they have had to do, is
 2  just orders of magnitude  less than what they had perhaps
 3  reasonably thought  they might have to do in their first
 4  segments, but the practical  experience that we're seeing is
 5  that that amount of testing  and reporting is dramatically
 6  less 'than is what is actually being suggested by firms when
 7  they comment before us.
 8             So again, if you  would review this with the
 9  corporation in the  submission of your comments to the formal
10  record,  perhaps it  would  be  helpful.
11             MR. KOZLOWSKI: Yeah, and I'd like to finish that
12  subject, and to end my questioning, by saying that, take
13  the experiences you found in a mobile sort of side, even
14  if it  is different, and then apply it to the noise, and if
15  you still see that  there's some overlap, where we're overly
16  burdensome, let us  know.
17             Thank you.
18             MR. PETROLATI: Could you describe what compliance
19  steps  Kawasaki now  takes  to  insure itself that it's in
20  compliance with the California requirements?
21           "  MR. HAGIE:  In a  very general sense, we noise
22  test our motorcycle, but  I don't know how many units we
23  test,  or whether we test  at  the middle or end of production,
24  or exactly what steps  we  do  take, but I know the factory in
25  Japan  tests units,  and I  test units according to the same
26  test procedure over here, and we compare test results and
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                                                             204
 1   try  to iron out  differences,  and from that we have what we
 2   believe is a  fairly  good  picture of the noise characteristics
 3   of our products.
 4             MR. PETROLATI:  Okay,  I  guess if you could provide
 5   for  us in writing  exactly the number of tests that you
 6   actually do to assure yourself  of compliance with the
 7   California requirements,  would  be helpful.
 8             If enforcement at  the state and local level is
 9   really the answer, do you see the provivions that we have
10   included in the  regulation as being helpful in enforcement
11   at the state  and local  level, specifically the stationary
12   level on the  motorcycle,  the  motorcycle label,  and the
13   muffler exhaust  system  label?
14             MR. HAGIE:   Well,  I  said that we supported those
15   in concept", and  we do,  because  anything that will make
16   effective enforcement easier, I believe we feel has a better
17   chance for reducing  the noise problem than just about any
18   other step that  can  be  taken.
19             There are details  of those requirements which
20   i think we would take exception to.   There are some things
21   which we do not  believe are necessary,  such things as model
22   years being stamped  on  the mufflers,  and some of the
23   information on the labels.  I do  not think that type of
24   information is necessary.
25             But,  stationary labeling,  or providing of
2°   stationary noise levels, would  be some method,  either on
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                                                             205
 1  the motorcycle  or  through EPA for dissemination to the
 2  enforcement personnel would  seem to  be a help in aiding
 3  local enforcement.   I think  that is  something we would
 4  support.
 5             MR.  PETROLATI:  Okay;  fine.   How about the
 g  acoustical assurance period?   You had no comments on the
 7  acoustical assurance period.   How would that affect you in
 8  trying  to determine  a sound  degradation factor?
 9             MR.  HAGIE:   That  is information that would have
10  to come  from  the factory.  I don't really have that.  That
11  will be  in writing in our comments.
12             MR.  PETROLATI:  Okay.   Thank you very much.
13             CHAIRMAN  THOMAS:   Mr.  Naveen?
14             MR.  NAVEEN:   I would briefly like to pursue one
15  point you raised in  answering one of Mr. Kozlowski's
16  questions.  You talked  about — it was in response to his
17  question about, what is Kawasaki doing to spread the word,
18  telling  people  not to modify,— and  your answer was along
19  the  lines of, restraint of trade, we can't do that, EPA
20  has  got  some  emissions  regulations that might prohibit that.
21             I  would like you,  maybe,  to clarify that, because
22  I  am aware of some Federal law, not  just EPA regulations —
23  EPA  regulations aside -- I am aware  that some Federal law
24  problems may  exist if the manufacturer suggests that own
25  parts can be  used, and  only  his parts, and I don't: know if
26  that's  the kind of situation that you were referring to.
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                                                             206
 1              I  am not so  sure,  however,  that Kawasaki couldn't
 2   suggest  to  purchasers,  somehow,  that it not be modified,
 3   period,  without any endorsement  of Kawasaki's or anybody
 4   else's product.
 5              MR.  HAGIE:   Well,  you're the attorney, so you've
 6   got  the  knowledge of Federal  law.   I am not an expert in
 7   the  air  emissions area,  but I believe the current situation
 8   is that  we  are  not permitted  to  say that a purchaser must
 9   use  only Kawasaki parts  in replacing any of the parts of
10   his  motorcycle,  and I believe there are statements to the
11   effect that,  do not modify your  motorcycle, period, would
12   be in conflict  with that type of a concept.
13     .         I  also believe that's in conflict with our
14   belief of what  our customers  want.   We believe that our
15   customers "— we sell a motorcycle that is kind of a
16   middle-of-the-road vehicle.   We  recognize that we can't
17   produce  a motorcycle like everybody wants.  General Motors
18   can  give you  any color  you want, they can give you any
19   collection  of options on the  thing, they can give you air
20   conditioning, they can  give you  a radio.
21              We produce only one model.   I believe the only
22   factory  option  we have  is the color of the paint.  You can
23   have it  red,  or you can have  it  green.  Once the customer
24   gets it",  he wants to make it  his motorcycle, and we want
25   him  to make it  his motorcycle.   We don't want to tell him,
26   "Don't modify it."
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                                                             2o;
 1             MR.  NAVEEN:   Okay.   I guess all that I'm suggesting
 2   is  that  there may be a  conflict between two Federal laws.
 3   The Noise  Act says,  there shall not be any tampering.  I
 4   think Mr.  Kozlowski's question had to do with customer
 5   education  and not necessarily  any requirement of our noise
 6   regulation,  and we were simply trying to inquire what you
 7   and other  manufacturers are doing to try to prevent what
 8   we  do.   I  think we all  agree that there is a terrible problem
 9   with modifications,  and what role the manufacturers play,
10   the regulations aside.
11             CHAIRMAN  THOMAS:  Mr. Hagie, I'd like to pursue
12   that.  We  are very sensitive to not, either intentionally
13   or  unintentionally,  aggrandizing any particular organization'
14   market,  and  we  have  no  intention of, in any way, of helping
15   an  OEM manufacturer  to  further his particular share or
16   interest in  the after-market.
17             Now, all  good intentions from OEM manufacturers
18   aside not  to have any intention of doing this,  I do think
19   that this  comment that  you made begs the question,  which is,
20   I do believe that firms such as Kawasaki can go a long way
21   towards  educating, perhaps  even propagandizing, the users
22   of  their products not to purposely make that product
23   noisier, without  in  any way implying that the only  way you
24   don't make it noisier is by using Kawasaki components,
25   for example.
26             I would hope that Kawasaki could find some way of
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                                                             208
 1   getting this  kind of a message across without running afoul



 2   of  existing national legislation,  which is fully intended



 3   to  protect  after-market manufacturers from being caught,



 4   as  they have  in the past been, by  manufacturers specifying,



 5   if  you do not use blank,  blank, blank, then the warranty is



 6   void,' that  sort of thing.



 7              That is what we are trying to get to here, and



 8   again,  I would like to ask for the record -- you may not be



 9   able  to provide it here -- I  would like to know specifically



10   what  Kawasaki has done to educate  and inform its dealership,



11   and through its dealers,  and  by other mechanisms, the users



12   and purchasers of their products not to make those products



13   noisier.



14              Would you be able  to provide us that information



15   later,  sir?



16              MR. HAGIE:   Yes, I will.



17              MR. EDWARDS:   Mr.  Hagie,  your statement addressed



18   a lot of general provisions of EPA's regulations, and it is



19   very  helpful  from that standpoint.



20              You did not go into a lot of the details that



21   you said would be forthcoming from Kawasaki Heavy Industries,



22   Limited, for  submission before June 16th?



23              MR. HAGIE:   That's correct.



24  .            MR. EDWARDS:   Okay.   I  won't,  in that case,



25   question you  about the specific aspects and take a broader



26   aspect  myself, but at  the end I would like to direct your
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                                                             209
    attention to some of the very  specific  questions  that EPA
 2   asked in the preamble that I hope Kawasaki will give its
 3   attention to in its written submission.
 4              Just to correct, or at least make  my own statement
    on a couple of issues:  One is on the very first  page of
    your statement.  You indicate  that EPA  — your  statement is
    that EPA does not address the  motorcycles which,  by every
    analysis, are responsible for  the noise impact  which is
    supposed to be eliminated now.  Perhaps I think that is
    even a little bit stronger than you intended.   I  think the
    provision of the regulations dealing with replacement
12   exhaust systems are at least an attempt to address  those
13   motorcycles.  Wouldn't you agree?
14-             MR. HAGIE:  Okay, yes.  That is a  portion of
15   the motorcycles that are causing the problem, but your
lg   regulation does not, and of course, can not,  be as  constraine
17   under which you work, can not  address the motorcycles currently
18   in existence which are excessively noisy, for whatever reason
19              MR. EDWARDS: Fair enough.  One other point.  You
20   mentioned that EPA's analysis  on the sound level  of motorcycles
21   dates, in some cases, back to  1975, and the conclusion to
22   be drawn is that, perhaps, quieter new  motorcycles  are the
23   smaller production in EPA than estimated.  This may,  in
24   fact, be the case.
25              I think the other side of that coin  is that EPA
26   may accordingly have underestimated --  excuse me  --
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                                                             210
 1  overestimated  the  cost  of  compliance with these regulations,
 2  in  that  current models  may be a lot quieter than the data
 3  base had displayed.  Are you sure  of that?
 4             MR. HAGIE:   Well,  the first part was a statement,
 5  "wouldn't you  agree with that?"  Then I'll answer, yes,
 6  that is  a possibility.
 7             MR. EDWARDS: Like others before you described,
 8  the biggest  part of  the problem is modified motorcycles,
 9  which EPA has  certainly acknowledged in its analysis, but
10  to  me there's  sort of two  problems out there -- and I think
11  I went  through this with someone before -- you have a class
12  of  vehicles  which  might be considered modified motorcycles,
13  and you have another class of vehicles, unmodified
14  motorcycles.
15             How many  —  of  the top  of your head -- how many
16  unmodified motorcycles  are there in the U. S.  today?
17             MR. HAGIE:   I don't know.  I don't  have the
18  registration figures on top of my head.
19             MR. EDWARDS: Okay, but, then do you think our
20  figures  for  modifications  are low — twelve per cent is
21  low.  You were thinking higher, maybe twenty,  twenty-five
22  per cent, or something  higher than that?
23             MR. HAGIE:   I don't know.  I -don't  think there
24  would be that  big  a  difference.  I was just pointing out
25  that to the  best of  my  understanding of your analysis, you
26  had picked up  your information from the MIC survey which
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                                                             211
 1   dealt primarily with the sale of after-market exhaust
 2   systems,  and  some of those systems are going to be louder
 3   than stock, and some are going to be quieter than stock,
 4   but that  survey did not address the incidence of removal of
 5   baffles,  or removal of silencing components from OEM
 6   systems,  which we all know does happen.
 7             MR. EDWARDS:   I understand, and I think the source
 8   of EPA's  estimate was slightly different,  but thau's not the
 9   point here.   Others have told us that our number is too low,
10   and perhaps it is too low.
11             My point is that there are millions of unmodified
12   motorcycles in the country today.
13             MR. HAGIE:  That's correct.
14             MR. EDWARDS:   This is a class of vehicles that
15   EPA has got to come to grips with.  What do we do with them?
16   Do we set an  83 decibel standard, as you have suggested, to
17   perpetuate this class of vehicles at 83 forever, or perhaps
18   as you  suggested, and Mr. Walsh suggested this morning, that
19   we set  it at  this and look at it again eight years from now,
20   or ten  years  from now, something like that?  I am not sure
21   that is a really  acceptable solution with millions of
22   vehicles  out  there.
23             EPA has got to consider where we are going to go
24   in the  next decade, and whether or not they need to be
25   quieted,  and  we have got to do that now to give the
26   manufacturers the time,  or else all we are doing is shutting
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                                                             212
 1   the  states  off,  as  Mr.  Thomas indicated earlier.



 2              I  think  the  biggest concern from our standpoint



 3   would be, are we going  to make the problem worse if we



 4   establish lower  sound limits, and you alluded to that.



 5   Perhaps we  are making the problem worse by requiring vehicles



 6   to get quieter,  and perhaps  increasing the tendency of



 7   people to modify their  motorcycles.



 8              Did I state  that  correctly?



 9              MR. HAGIE:  Yes.



10              MR. EDWARDS:   Are quieter motorcycles more



11   acceptable  now than they were ten years ago to the motorcycli



12              MR. HAGIE:  Well,  there is a different type of



13   motorcyclist,  perhaps.   There are still motorcyclists that



14   want noisy  motorcycles,  and  I believe today's motorcycles



15   appeal to a group of people  who,  perhaps,  wouldn't have been



16   interested  in a  motorcycle ten years ago,  but I can not



17   attribute that to differences in sound level.  I believe



18   that there  are many other factors -- sociological and



19   psychological -- which  .  .  .  (unintelligible)



20              You are  asking me to make judgment on a subject



21   which I am  really not familiar with, or am capable of giving



22   a proper analysis.



23              MR. EDWARDS:   As  a motorcyclist -- you were a



24   motorcyclist  ten years  ago?



25              MR. HAGIE:  Yes.



26              MR. EDWARDS:   Do  you find your street motorcycle -•
t?
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                                                             213
 1  you say-you had modified this,  so I presume it retained the
 2  83 decibel standard or something lower than that -- would
 3  that have been acceptable to you ten years ago?  Was it loud
 4  enough?  Would it  have been loud enough ten years ago?
 5             MR. HAGIE:   It's hard for me to say.  The
 6  motorcycles that I had ten years ago rcere quite a bit louder
 7  than the ones I have now, and I thought they were pretty
 8  neat at the time.   Now .  .  .
 9             MR. EDWARDS:   It's a little unfair to ask you,
10  like me, because we are ten years older.   I think I would
11  really have to ask the question of somebody at the same age.
12  As was pointed out earlier, someone who is seventeen looks
13  differently at motorcycles than someone who is twenty-seven,
14  but this is the sort of thing that's on EPA's mind as we
15  are looking into the next decade.
16             Perhaps quieter motorcycles are more accessible
17  today than they were ten years ago,  and perhaps motorcycles
18  ten years from now would be acceptable at even quieter sound
19  levels, and perhaps this tendency to modify may go the other
20  direction.  It's at least a possibility,  rather than people
21  saying, "Gee, it's quieter now.  I have got to get it
22  louder  to get it back  to where I like it," to meet the
23  possibility that that  would be more and more acceptable as
24  perhaps it's happened  in the last decade.
25             I apologize.   I'm making a. speech rather than
26  asking you questions on this.
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                                                              214
 1              I do have a specific question, however:  Several



 2   Kawasaki  models are quieter than they need to be by the



 3   California standard,  at least by the testing we have done,



 4   and  in some cases,  several decibels quieter.  Is this



 5   correct?



 6              MR.  HAGIE:   Yes.  Our motorcycles currently



 7   range  --  our very small bikes are clustered around 80



 8   decibels,  and our larger machines run from about the low



 9   80's to —  we've got one that's about 82 and a fraction,



10   something like  that,  so most of them are two to three



11   decibels  quieter than they need to be.



12              MR.  EDWARDS:   On the J-331a test, I believe we



13   tested a  KC-1000 model,  and that was in the high 70's.



14   Was  this  an erroneous  test?



15              MR.  HAGIE:   I don't know.  I don't believe I was



16   present at  that time.   It is possible.   I don't have a lot



17   of —  now,  you  said J-331?



18              MR.  EDWARDS:   J-331a test.



19              MR.  HAGIE:   That seems a little quiet,  but I



20   think  it  is possible.



21              MR.  EDWARDS:   Okay.



22              MR.  HAGIE:   Productionwise.



23              MR.  EDWARDS:   I guess my question is,  if Kawasaki :



24   concerned that  if they make it too quiet people are going to



25   tamper with it,  why do they make it quieter than the



26   standard?   Why  do they give that couple of decibels extra
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                                                             215
 1   impetus  for  somebody for somebody to go out and buy that
 2   after-market  system?
 3             MR. HAGIE:   Well,  thac's a design question, an
 4   engineering  question, which  I can't directly answer.  We do
 5   try  to make  sure  that our motorcycles are going to meet the
 6   standards  that we have  to meet,  for instance,  California,
 7   so,  as you have pointed out,  or  as your regulation would
 8   provide  for,  there is some leeway to make sure that
 9   production variances do not  raise the sound level wherein
10   we have  a  problem with  compliance.
11             MR. EDWARDS:   So  it is — again,  I'm asking you
12   for  an answer from your company,  and perhaps this is not
13   fair --  but  you don't feel that  they may have felt that it
14   was  a desirable feature,  something that would be attractive
15   to the motorcyclist, to get  it down several levels below
16   the  standard?
17             MR. HAGIE:   There are a lot of design considerations
18   and  that is  possibly one of  them, but I can't speak for the
19   company  on that.
20             MR. EDWARDS:   Okay; fine.
21             Again,  like  Mr. Walsh, if Kawasaki could specif ica].ly
22   address  such questions  as the emissions methodology,
23   tachometer specification, whether effective dates are more
24   conveniently applied by a model  year base instead of a
25   calendar year base,  and the  other specific topics mentioned
26   in the preamble,  we would appreciate it very much.
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                                                             216
 1              Mr. Hagie,  thank you very much for answering my
 2   questions.
 3             MR. HAGIE:   Thank you.
 4             CHAIRMAN  THOMAS:   You are the last manufacturer,
 5   vehicle manufacturer,  on the agenda today.   I believe we are
 6   going  to hear  from several  more in Washington, D.C., and in
 7   another week's time, but I  would like to give you,  Mr.
 8   Hagie, an  impression that I have that I hope soon to
 9   communicate  to the chief executive officers  and the
10   presidents of  every  major motorcycle manufacturer who sells
11    in the United  States,  and I hope you will convey this to
12   your Japanese manufacturer.
13             I think you are  more part of the  problem than you
14   are part of  the  solution.   The problem of noise, and these
15   regulations, and the state  regulations, that you have in
16   front  of you,  that you're complying with now, if you had
17   expended the efforts in trying to  educate,  convince, coerce,
18   the purchasers and users of your products to knock off the
19   modifications, to ride these bikes where they won't impact
20   third  parties  adversely, I  think the need for these kinds
21    of regulations as perceived by this congressional law, and
22   the state  regulations  you're faced with, may well have gone
23    away,  and  here it may  be a  question of corporate policy as
24    to where you put your  money, and it seems to me that we
25    probably have  a  lot  of agreement that it would be a heck of
26    a lot  better for you to spend the  millions  of dollars that
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                                                              217
 1   might be incrred in meeting these standards, taking a
 2   fraction of that money and putting it to this kind of major
 3   public policy pronouncements on the part of your company.
 4              I am frankly surprised, continually, that
 5   corporations who have seen this problem coming for years
 6   have not made major policy decisions of that nature.
 7              Now,  that's a statement on my part,  and I hope
 8   that you will convey that to your firm, because we're going
 9   to  convey it formally to them,  and we're saying this to the
10   Congress,  and we're saying it to state governments as well.
11              Thank you very much for being with us and giving
12   us  your comments.   We will look forward to hearing your
13   technical comments  when they come in,  and I will give you
14   five minutes for rebuttal to my statement, if you would like
15   to.
16              MR. HAGIE:   I'll take that five minutes,  and it
17   won't take me all five minutes.
18              Personally,  I agree  with you,  and I  will  convey
19   that to my corporation.
20              CHAIRMAN THOMAS:   Thank you.
21              We're going to take  about a ten minute break at
22   this point,  please,  and we would like to hear next from
23   Mr.  Jerry Rothman,  from Alphabets  Custom West.
24                    (Whereupon,  the proceedings were
25              in recess from 4:10  o'clock,  p.m., until
26              4:32  o'clock,  p.m."  Mr.  Naveen did not
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                                                             218
 1              immediately  rejoin the hearing panel



 2              after  the  recess.)



 3              CHAIRMAN THOMAS:   We will reconvene, at this



 4  point.



 5              We  have the  following individuals scheduled to



 6  apeak before the  remainder of the session, and we propose



 7  to  call  them in the following order:  Mr. Rosen, who is now



 8  prepared to speak.  Is  Mr. Wheeler here,  from MCM



 9  Manufacturing?  I propose  to  call him next.   (No response to



10  the call.)  Mr. Runner,  from  SEMA; is he  here?  (Whereupon,



11  Mr.  Runner  identified himself.)  Yes?  Thank you.   Then,



12  Mr.  Grogan  and Mr.  Collins.   And then, we'll be prepared to



13  take anyone else  who  would have comments  that they would



    care to  offer  us.   That's  our schedule.



15              We  will inquire, if the time runs on, whether



16  you would prefer  — those  who remain in the audience --



    whether  you would prefer to take a food break later, or



    whether  you would prefer to just continue the march forward



    and finish  off, so we'll catch that as we get to it.



20                           JERRY ROSEN



                My  name is Jerry Rosen.  I'm here representing



    Alphabets Custom  West.   I'm here speaking for Joe.  He's



23  out of town --in Australia -- right now.  He wishes to come



    to  Washington,  B.C.,  and testify there.  So most of what I'll



    be  saying today is just things I've noticed while I was



    sitting  in  on  this, and I  would like to bring them up.
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                                                             219
 1   Some  of them haven1'  been mentioned as much as I think they



 2   should have  been.



 3             I am in charge of the product development at



 4   Alphabets, and we  have been trying for quite a while now to



 5   try to keep  our product,  the quality product, with a low



 6   noise level,  and on some  of them I think we've been



 7   successful,  and on some of them we still have work to do.



 8             We have taken  part in quite a lot of testing



 9   that's been  done by both  you people and the MIC in trying



10   to get base  level  sound weighting sound, and everything else.



11             The MIC has proposed an 83 decibel level on a



12   static test.   That I would like to go on record as supporting



13   The people in the  after-market that are making exhaust



14   systems  to go on to factories' motorcycles don't have the



15   assets that  the factory does to use the motorcycle for all



16   the testing.   It's hard for us to come by the bike unless



17   we just go out and purchase the thing,  and when you're



18   carrying a product line of one hundred and forty different



19   models,  it's  pretty hard  to have a hundred and forty



20   different motorcycles to  put them on,  so it makes it a



21   little difficult for us to go into a dealer and get a



22   motorcycle,  and say,  "We  want to run an acceleration test



23   with  it  or dyno test." They tend to be a little leery



24   about letting us do that.



25             I  feel  that the static test would be a lot easier



2"   to get cooperation from the dealers on to where we would
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                                                             220
 1  just be able  to  run  up  a  bike  on a standing location and not
 2  have anybody  driving it.
 3             Another problem with the driveby test, it's very
 4  hard to locate an area  that  has an adequate amount of room
 5  to do  this type  of a test with, as well as finding a driver
 6  that can know when to turn the thing on and off at the proper
 7  times, as well as not having buildings, or something else
 8  that's going  to  give you  a sound echo,  in the immediate area,
 9  it does create quite a  few problems.
10                    (Whereupon, Mr. Naveen rejoined
11             the hearing  panel.)
12             We are in the  process now of setting up our own
13  testing.  We  have purchased  our own sound meter.  We've got
14  a dyno that we're installing now so that we can tell what
15  kind of a difference this makes with horsepower readings as
16  various decibel  levels  are reached, because we try to keep
17  an optimum performance  level to keep the riders happy.
18             If you just  make  something that merely is quiet,
19  your sales aren't all that good, so you have to try to reach
20  a happy medium there where everbody's happy, which is kind
21  of a rough job at times,  particularly the Harley-Davidsons.
22             It seems  that  they  ten to have a lot different
23  running characteristics than the Japanese multi-cylinder
24  motorcycle.   It's a  lot easier to quiet a multi-cylinder
25  than it is the big  twin.
26             Something else that is probably going to be
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                                                             221
 1   probably  lowering a lot of manufacturers'  sound levels
 2   without  them really going after it intentionally, I think,
 3   is  the new  smog  models  that are coming out.
 4              In the past,  we've manufactured more of the ones
 5   for optimum running.  If you are going to  go out and run
 6   the bike  hard, it is  necessary to go up three or four sizes
 7   on  the main jet  to get  the bike to run nice and clean.
 8              With  the new ones,  we're going  to have to be
 9   restricting the  mufflers just to get the bike to run
10   correctly to  where I  think that's going to be a pretty
11   effective job of silencing itself.
12              But until  we  have  the time to do the testing,
13   and to run  the smog bike,  nothing can be said at this  time
14   about what  exactly it's  going to do.
15              I'd like to go  on  record also as saying that I
16   think the biggest problem  in  this country  today with the
17  motorcycle  noise levels  creating a public  nuisance is  the
18  people tampering with the  motorcycles,  either putting  on  a
19  loud after-market system,  or modifying the stock system,  or
20  modifying the after-market system to  create more noise than
21  what was  originally intended.
22   •           I know myself,  I have had  people going  up and
23  down the  street  in front of where  I live,  and most of  the
24  motorcycles that  go up and down  the street I don't find
25  annoying.
*6             The two-cycles, you will have a lot of  people  that
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                                                             222
 1   take  them out  on  the weekends  and go play in the dirt,

 2  which is  fine, but when they're doing test driving up and     i
                                                                   |
 3   down  during  the week  trying to make the bike ready to go out  ;
                                                                   i
 4   and play  on  the weekend,  I  haven't found any other motorcycle!
                                                                   i
 5   that  I  think is quite  as  annoying as the sound of a two-

 5   cycle,  especially that sound they give when they let off.

 7             The four-strokes.-   I think most of the bikes on

 8   the market now have brought their sound levels down to an

 9   adequate  level.   I doubt  if you can find too many people that

10  would complain about  the  noise put out by any bike you could  j

11  walk  in and  buy now off the showroom floor.

12             However, it seems  like you are missing a lot on

13   all the old  bikes if you  don't have any provisions to cover

14   them,  and I  think that's  where your greatest problem lies,

15   and I think  that  that's going  to be something that needs to

16  be dealt  with  at  the state  and local levels, as well as

17   informing the  people out  there that are riding what we're

18   trying  to do to bring  the noise levels down to make it

19  where we  don't have to drop the sound level down on the new

20  bikes  other  than  what  it  already is, because I do not

21  believe it's necessary.

22             And the last thing  that I'd like to touch on is

23   the labeling of the product.   We have just started a

24   changeover on  our product line where we are using more of

25   a universal  type  muffler.  We've got exhaust systems for

26  multi-cylinder and twins  that  go into a collector, and we
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                                                             223
 1  have  one muffler  that would slip on to this collector to
 2  where it would cut  our manufacturing costs down, but if we
 3  have  to carry  the labeling on this thing for all the differen
 4  bikes that  it  fits,  it's  going to be a really double weight,
 5  and I'd like to see something worked out to where we wouldn't
 6  have  to put quite as much information on there.   We might
 7  use this one muffler on as many as six or seven different
 8  motorcycles, possibly more,  so if we had to list all the
 9  information for each of these motorcycles, it will create
10  an undue hardship on us.
11              I believe that's  basically what I wanted to
12  cover.  Joe will  be covering quite a bit more in Washington,
13  but we wanted  to  get this chance to get on record.
14         '     If  you have questions, I will try to  answer
15  them.
16              MR.  KOZLOWSKI:   Mr. Rosen, I have just a few
17  questions.  I  would like  to  repeat, or summarize, your
18  testimony as I heard it.   You support the static test for
19  the after-market  .  .  .
20              MR.  ROSEN:   Yes,  that's right.
21              MR.  KOZLOWSKI:   Would you support a stationary
22  standard as opposed to the labeling concept 10?
23              MR.  ROSEN:   Yes,  I believe I would.
24              MR.  KOZLOWSKI:  Would you support it  in lieu of
25  the labeling?
26   .           MR.  ROSEN:   Yes.   When we're dealing  with this
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                                                             224
 1  exhaust  system,  when it is  being used on an older bike, what


 2  type  of  situation exactly is  that?


 3             MR. KOZLOWSKI:  Older bikes,  I guess, are a


 4  problem.


 5             MR. ROSEN:   Yes, when you are in the after-market


 6  making exhaust systems  for  them, and you .  .  .


 7             MR. KOZLOWSKI:  And they end up  on new bikes.


 8             MR. ROSEN:   Yeah.


 9             MR. EDWARDS:  Rich,  could I interrupt for just
                     jf

10  one second.


H             MR. KOZLOWSKI:  Yes.


12             MR. EDWARDS:  Just so I  understand you question.


13  When  you say  a "stationary  standard" what test are you


14  talking  about?   Are you talking about the 150 test, or a


15  test  with an  ignition cutoff?


16             MR. KOZLOWSKI:  I  had just reference to the


17  general  concept.  You can follow me, Scott, if you want to,


18  in the testimony.


19             In your experience,  can  you maintain performance


20  as you make the  mufflers quiet?


21             MR. ROSEN:   To a certain extent, yes.  Without


22  a lot more time  than we have  be able to put in with the


23  testing,  I doubt seriously  if we can get much below the 83


24  level that has been currently,  you  know, set up right now.


25  This  is  the first major sound level to me.


26             MR. KOZLOWSKI:  But at least with respect to the
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                                                             225
 1   83  level,  you can tell your customers,  "Listen, you can get



 2   as  good performance with this quiet muffler as you could if



 3   you took it  off an put on a straight replacement muffler."



 4             MR.  ROSEN:   Yes.



 5             MR.  KOZLOWSKI:   Do you think that kind of



 6   information,  if given to the customer,  would persuade him



 7   not to  take  off the stock,  or the good replacement muffler,



 8   and go  with  the straight one?



 9             MR.  ROSEN:   I think with persuasion plus the law



10   leaning on him a little, yes, it would bring him around;



11   but without  the enforcement leaning on him, I don't think it



12   will.



13             MR.  KOZLOWSKI:   Now, you make'a universal muffler,



14   is  that right?



15             • MR.  ROSEN:   Yes.



16             MR.  KOZLOWSKI:   Okay.  It quiets all the bikes,



17   let's say, to the 83 level?



18             MR.  ROSEN:   Yes.



19   .          MR.  KOZLOWSKI:   And the adapter really makes it



20   fit on  a group  of bikes?



21             MR.  ROSEN:   Yes.



22             MR.  KOZLOWSKI:   Is it a glass-packed muffler?



23             MR.  ROSEN:   Yes, it's glass-packed.



24             MR.  KOZLOWSKI:   Will that last for a year?  Will



25   it  retain its attenuation value for a year?



26             MR.  ROSEN:   Well, right now, I couldn't really
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                                                             226
 1   say.   We  have a lot more testing to do.  We're just trying -•



 2   as  soon as we get our dyno set up and are able to get into



 3   our testing  procedure,  we're looking to completely redo the



 4   core design  that we're now using, so what we're doing now



 5   is  pretty much something that will be obsolete shortly.



 6   We're looking to get into a complete no-glass system



 7   whatsoever,  because glass does tend to fade away after a



 8   while.



 9             MR.  KOZLOWSKI:  Well,  finally, with the universal



10   muffler,  we  are also concerned with the number of labels on



11   a muffler.   I guess one thought was that if you've got



12   enough labels around them you get more noise reduction



13   (laughter),  but we would be very receptive if you would



14'   tell us how  we could change the labeling requirement and



15   still have an effective program so that the cop can come



16   and look  and say,  "Yeah, that does conform with the bike."



17             We've thought long and hard, but couldn't come



18   up  with an active solution, so we would be very receptive



19   to  anything  to anything you could supply.



20             MR.  ROSEN:  Okay.



21            ...MR.  KOZLOWSKI:  That's all.   Thank you, Mr.  Rosen.



22             MR.  ROSEN:  All right.



23             MR.  PETROLATI:  You say you have a sound level



24   meter now.   Have you been able to conduct any sound tests?


25
               MR. ROSEN:  Yes, we have  done  some  from time  to


26
     time.   It is  our need to know on  the specific application,
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                                                              227
 1   you know,  rotted out.



 2              MR.  PETROLATI:   Are you conducting any of  the



 3   tests  that we're talking about here, such as the SAE  J-331,



 4   or the MIC test?  What do you use?



 5              MR.  ROSEN:   We are doing basically the MIC



 6   twenty-inch test.



 7              MR.  PETROLATI:   Okay.  As far as your system,



 8   does it compare fairly well with the stock system on  the



 9   MIC test?



10              MR.  ROSEN:   Yes, it does.



11              MR.  PETROLATI:   All right.  You are probably



12   familiar with what we  are proposing, but let me run it



13   through you just to get your comments on it.



14              What we say in the after-market part of the



15   regulations is, that you do the MIC test basically, and



16   if you meet the level  that the OEM level manufacturer had,



17   then you can market the system, but if you can not meet that



18   level  but  you can still meet the standard,  then you do the



19   acceleration test and  test to the standard, and then market



20   the system.



21              Do you have any problems with that type of a



22   situation?



23              MR.  ROSEN:   As long as we can meet the static



24   test,  no.   If we had to get into the acceleration test, it



25   would  create a  lot of  problems.



26              MR.  PETROLATI:   Okay; fine.   I guess to follow
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                                                              228
 1   through with your problem with the universal muffler, I
 2   guess  it didn't sound like much of a problem with me in
 3   that there's only seven models that it fits.  I guess our
 4   big concern with the universal muffler, it has got such
 5   varied application that it fits just about everything coming
 6   down the street.
 7              Do you think that -- if I understand it correctly,
 8   is  it  a problem of labeling seven different models of
 9   motorcycles that, that muffler is  intended for?
10              MR.  ROSEN:  Well, the  way I have been led to
11   understand it,  the labeling is going to have to be on the
12   muffler body itself.
13              MR.  PETROLATI:   That's correct.
14              MR.  ROSEN:  Okay.  To  date,  I have only had
15   about  seven different models since this is going on.   We're
16   going  through and redoing  our whole line to use this  style
17   of  muffler.
18              MR.  PETROLATI:   Okay.   So it will be equippable
19   on  many more models  than the seven models you're talking
20   about?
21              MR.  ROSEN:  Yes.
22              MR.  PETROLATI:   Okay;  fine.   Another thing to
23   point  out  is that, you do  not have to label it according to
24   the number of models  that  it will actually fit on,  but it
25   will have  to be labeled to the number of models that  you
26   test it and intend to market it for.   I'm not sure if that
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                                                             229
 change your  problem to any  great extent,  but it is somewhat
 of  a  clarification.
           MR.  ROSEN:   Well,  if I have to mark it for each
 specific model!
           MR.  PETROLATI:   That's correct.  If you want to
 mark  it for  every  model that  that muffler fits, then the
 requirement  is  to-label and test it for all of those models;
 and again, as Mr.  Kozlowski stated, we are very interested
 in  coming up with  a scheme  that is much more appropriate for
 the after-market industry as  far as labeling, and possibly
 testing, so  any comments that you may have specifically on
 those problems  with the universal muffler, please feel free
 to  give it to us.
           MR.  ROSEN:   Okay.
           MR.  PETROLATI:   One other comment that the
 Motorcycle Industry Council made for the after-market
 muffler situation  dealing with the universal muffler is
 that  the after-market  manufacturer should be allowed to pick
 a worst case motorcycle and demonstrate that if it complies
 with  that motorcycle,  then  it's good for all motorcycles.
           Do you  think, from your own standpoint, as a
 manufacturer, that that is  possible?  Could you pick a
 "worst case" and have  a feeling that it will comply with
.all other motorcycles?
           MR.  ROSEN:   If I can quiet the Harley-Davidson,
 then  I've got a good feeling.
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                                                             230
 1           '  MR.  PETROLATI:   Okay,  that's it as far as my
 2   line  of  questions.   Thank  you very much,  Mr. Rosen.
 3        'MR.  ROSEN:   Okay.
 4             MR.  KOZLOWSKI:   Mr.  Rosen,  one suggestion that
 5   was made by  one of  the policemen i: that testified here -- I
 6   don't remember  which one -- was that the  mufflers ought to
 7   be stamped rather than have a label attached with that
 8   information,  that the  information should  be stamped to
 9   identify.  Does that cause you any production problems?
10             Assume we come  up  with a better scheme.  You
11   don't have to have  eighteen labels on  it, but —
12             MR.  ROSEN:   At  this  time, it would be pretty
13   hard  to  say,  but I  think a label  would probably work out a
14   lot better for  us due  to the  large number of applications
15   that  these will be  used on.
16             MR.  KOZLOWSKI:   I'm not sure I understand your
17   answer.  Why would  a label be better because there's more
18   application?
19             MR.  ROSEN:   You can put on  the correct label for
20   the application,  ...
21             ME..  KOZLOWSKI:   I  understand,  yes.     -  	-----
22             MR.  ROSEN:   .  .  .  and  you can't put on all the
23   stamps necessary for all the  different applications or the
24   whole thing  would be covered  with stamp marks.
25             MR.  KOZLOWSKI:   I  understand.   Thank you.
26             MR.  PETROLATI:   One  more question, Mr. Rosen.
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                                                             231
 1   The  only  provision that we provided under the universal
 2   situation is  that the manufacturer could put different labels
 3   on the  same universal muffler.   In other words, if he's
 4   labeling  it for  twenty different motorcycles, some of the
 5   mufflers  to be divided up -- the universal muffler could be
 6   divided up so that some mufflers will have certain motorcycle
 7   on them,  and  other mufflers will have other motorcycles on
 8   them.
 9             Does  that seem feasible as far as the universal
10   muffler situation is concerned?  We have to -- there's a
11   lot  of  — there's extra labels  involved, of course, but it
12   does alleviate the problem of trying to fit all these
13   motorcycle models on one muffler.
14             MR. ROSEN:   Yes, it  does.  That would be a
15   considerable  help.
16             MR. PETROLATI:  Thank you very much.
17             MR. EDWARDS:  Mr. Rosen, before I ask you my
18   questions, we have a sort of half-statement half-question
19   from someone  on  the floor.  It  is from Mr. Alan Isely, of
20   MIC: "For the record, MIC's position is supporting a
21   stationary test  at the equivalent -- at an equivalent —
22   of 83 decibels at fifty feet under acceleration, or about
23   105  dB(A) test at twenty-inches, and run the record up to
24   83 dB(A)  under a static test."   Would you agree it's the
25   equivalent of 83 dB(A)?
26             MR. ROSEN:   Yes.  I  ment 105 at twenty-inches.
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                                                             232
 1              MR.  EDWARDS:   Thank you.  You mentioned the
 2   difficulty  of coming by  sites for doing acceleration
 3   testing,  and also the difficulty of coming by motorcycles to
 4   test  your products on.   Do you envision a situation, since
 5   there are so many after-market muffler manufacturers, and
 6   this  would  be a problem  for all of them, do you envision a
 7   situation that  either a  private firm, or some association
 8   of  after-market muffler  manufacturers,   would provide
 9   services  of testing,  there would be one location in Southern
10   California  where everybody brings their systems, not a
11   government  program,  but  something privately run?
12              MR.  ROSEN: Well,  I really don't forsee such a
13   thing at  the present time,  no.
14              MR.  EDWARDS:   I guess I'm asking, could it happen,
15   not is it about to happen next year.   Is it that usually
16   it  would  not happen?
17              MR.  ROSEN: There  would have to be a lot more
18   cooperation between the  after-market manufacturers than
19   what  we have now.   I think,  right now,  everyone is doing
20   pretty much their own individual thing.   There's been very
21   little cooperation until this noise level thing started
22   coming down.
23              MR.  EDWARDS:   On another line of questioning.
24   I'm in somewhat of an embarrassing position having to ask
25   you about some  EPA rules.   On the smog test — you were
2°   talking about the new smog bike coming out -- is there
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                                                            233
 1   anything  in  those rules  directly applicable to motorcycle



 2   muffler manufacturers  other than the general prohibition



 3   against tampering to cause them to exceed emission standards?



 4             In other words, is  there a reporting requirement



 5   similar to anything that we're proposing here?



 6             MR.  ROSEN:  No.



 7             MR.  EDWARDS:   So,  in a sense, you're sort of



 8   indirectly affected.  It affects you because if you build a



 9   product people can tamper with it, so you have to build a



10   product to keep them from tampering with your product?



11             MR.  ROSEN:  Yes.



12             MR.  EDWARDS:   Given your concern about that, I



13   think  that is very laudible.   I want to ask you a question



14   about  your competition.   Do you know that other manufacturers



15   are  paying .that kind of  serious attention to the tampering



16   provisions of the Clean  Air Act. that they are going out



17   and  testing  motorcycles  on air emission -- for air emission?



18             MR.  ROSEN:  To my knowledge, it hasn't happened.



19   The  bikes still have been a little hard to get, unless you



20   go out and purchase it.



21             MR.  EDWARDS:   How about in the future?  We have



22   had  people predict that  there's going to be large scale



23   non-compliance with our  regulation, even though these are



24   directly  applicable.  You must report to EPA.   Do you



25   foresee that your competitors  might similarly ignore the



26   EPA  rule  on  tampering, and might just never bother responding
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                                                             234
 1   to  us?   It  is  an unfair question to ask,  perhaps.



 2              MR.  ROSEN:   I don't feel that it's the motorcycle



 3   exhaust  manufacturers  that are going to be caught by the



 4   tampering problem.   I  think unless the motorcycle manufacturers



 5   use a  little common sense when they are building the exhaust



 6   systems, it's  the person out on the street that's going to



 7   be  in  trouble  over it.



 8              MR.  EDWARDS:   Okay.   I guess -- I guess, again,



 9   this is  perhaps  unfair  -- are your competitors enough



10   worried  about  smog that they are going to go out and test



11   their  bikes for smog, and hence get the effect that you



12   envision, that actually these bikes are getting quieter



13   just because of the smog rules?



14              MR.  ROSEN:   I can't really answer.



15              MR.  EDWARDS:   Okay.   On the subject of universal



16   mufflers, which Mr. Kozlowski and Mr.  Petrolati talked



17   about  -- again,  I'm sure you made your position clear about



18   lower  sound levels  -- but given EPA might go to lower sound



19   levels than currently,  do you envision the universal muffler



20   will continue  to be a viable concept --• you're getting into



21   it  now;  others  have been there  for a long time -- but as



22   sound  levels get lower  and lower,  will you,  perhaps, have



23   to  custom tailor mufflers to individual model applications



24   more than you  are now,  and hence make the universal muffler



25   more difficult?



26              MR.  ROSEN:   I perceive,  if sound levels get lower
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                                                             235
 1  and lower,  the  after-market  fading right out of the picture,
 2  because they don't have  the  money  to  get into the extensive
 3  research programs that the factories  do.
 4              We don't have the money for the technicians, or
 5  the equipment,  or the motorcycles  to  use in the testing, to
 .6  get into it as  heavy as  Kawasaki,  Suzuki,  Yamaha, and all
 7  the others  do,  so I think that  would  effectively shut our
 8  doors should the level go below 80 at the very lowest.
 9              MR.  EDWARDS:   I understand that.  Would part of
10  the problem be  that you  could no longer build universal
11  mufflers,  that  you would be  stuck  in  a situation where you
12  would have  to custom tailor  mufflers  for each model?
13              MR.  ROSEN:  Part  of  the problem would be that we
14  would not be able to build mufflers what were sellable,
15  period!
16              MR.  EDWARDS:   That concludes my questions.
17  Thank you very  much.
18              CHAIRMAN THOMAS:   Mr. Rosen, I only have one
19  question for you.  We will talk with  your colleague further,
20  in Washington,  when he speaks there.
21              MR.  ROSEN:  Okay.  Is that all?
22              CHAIRMAN THOMAS:   Knowing  the --no, I've got one
23  for you.
24              MR.  ROSEN:  Okay.
25              CHAIRMAN THOMAS:   Knowing  what little as I do
2°  about  the  after-market muffler  manufacturing industry for
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                                                             236
 1  motorcycles,  it  has  been alleged to me that until enforcement



 2  actions  are brought  against manufacturers  in the after-market



 3  area,  it would be  likely that they would continue to produce



 4  the product,  testing or no  testing, so long as they can sell



 5  it.



 6       '      Now,  I  presume that there are still those who are



 7  manufacturing straight pipes today, for example.



 8             MR. ROSEN:   I believe there are.



 9             CHAIRMAN  THOMAS:   Yes.   Again,  these organizations



10  will not just fade away until either enforcement action is



11  brought  against  them,  or perhaps,  and I think you said this,



12  the motorcycle enthusiast starts getting rapped with



13  citations  and doesn't buy anymore,  but until something of



14  that nature happens,  the positive reaction in the marketplace



15  or I should say,  the negative reaction in the marketplace —



16  or direct  enforcement action taken against the exhaust



17  muffler  manufacturer,  would you see any of these folks



18  fading away?



19             MR. ROSEN:   As long as there's  people out there



20  that want  the product, I believe there will be somebody


91
Li  willing  to make  it.



22             The company that I work for, and I believe most



23  of the other  companies in the MIC,  have done a great deal in



24  the last few  years to "clean up your act", more or less,



25  try to get their products a lot quieter than what they were



2°  in the years  previously, but there's a lot of people out
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                                                             237
 1  there that are making products  for  the  motorcycle that are
 2  not in  the MIC,  they are not  supporting in the sound level
 3  control,  there's  still people,  like you said,  making straight
 4  pipes,  and until  there's enough pressure to put on people
 5  to quit buying and  using those  type products,  I doubt if it
 6  will cease.
 7             CHAIRMAN THOMAS:   Thank  you  very much.  I
 8  appreciate it.
 9             Mr. Tim  Wheeler, please, MCM Manufacturing.
10                          SAM WHEELER
11             My name  is  Sam  Wheeler,  and  I'm employed by MCM
12  Manufacturing.   We  are probably one of  the oldest after-
13  market  exhaust system  companies.  It's  been in existence
14  for  over  thirty-five years, and in  the  past we have made
15  probably  extremely  noisy  systems of straight pipes.  The
16  current philosophy  now is  to  make legal systems, and that's
17  what we do.
18             We  currently meet  the 83 decibel range, and
19  because we can get  motorcycles  to test  that are in that
20  range.  To go  any lower would be technically difficult for
21  me  to  tell you how  low it  could go  because there isn't any
22  motorcycles  that are  any  quieter than we make systems for.
23             I think  the basic  problem is — I'm a bit
24  redundant here  -- but  I  think the whole problem is
25  enforcement  on the  state  and local level, and until it is
26  enforced  --  the  regulations are enforced, whatever they may
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                                                             238
 1  be -- you will  always  have a noise problem,  and I think
 2  that's probably the  end of the story right there.
 3        .     We want to  see  the EPA regulate this noise
 4  enforcement  --  or  set  the  standards,  I  should say -- because,
 5  on a  state and  local level,  especially  in the city,  the
 6  individual enforcement agencies  don't have the time, or
 7  technology,  or  the ability,  to set such criteria, or how to
 8  really test  a motorcycle for noise.
 9             If they can afford to buy devices for checking
10  speed of automobiles,  or to  tell if you've had too much to
11  drink, I think  they  can probably afford to buy sound level
12  equipment, and  maybe the payback isn^'t  as good because there
13  aren't as many  motorcycles.   Okay.
14             We would  be happy to  meet any regulation set
15  forth by the EPA,  but  whatever they  were, we would like to
16  see a stationary type  test,  as mentioned by  Mr.  Rosen, and
17  difficult for us and very, very  expensive for us to  do any
18  drive-by testing,  and  also,  any  enforcement  done on  a local
19  level would be  a stationary,  so  whatever this particular
20  standard was on an enforcement level, the manufacturers
21  should be on the same  test procedure.
22             We currently makes  systems for about fifty'models ,
23  and to do a  drive-by test, number one,  getting the machines
24  is very difficult.   We would probably have to buy them, and
25  also, a place to run them  would  be  equally as difficult.
26             On the  bigger machines,  if we do  it on a  public
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                                                             239
 1   road, we would be violating the speed limit.  The stationary



 2   MIC  test,  which is the equivalent 105 dB(A) at twenty-inches



 3   is a reasonable test.



 4              Now,  I'll kind of cut this short because it's all



 5   been covered,  but on the universal mufflers, one point I'd



 6   like to bring  out is,  before 1980, if the labeling was such



 7   that any of you — I mean,  universal mufflers, any system



 8   labeled after  that date, wouldn't fit systems, or wouldn't



 9   be applicable  to systems before the 1980 date.



10              In  other words,  if we labeled a bunch of systems



11   for  '79 machines,  come 1980 tney would all be obsolete, and



12   this would cause a problem with our distributors, which we



13   basically  sell our system through.



14              Also, on spark arrestors, I think that in the



15   proposed rule  making that they said that they were -- should



16   also be certified as a muffler, but however, spark arrestors,



17   and  the ones we manufacture and have a patent for, it's



18   strictly an adapter to the muffler,  and I would like to see



19   something  different there.



20              Without being too redundant, that's about all I



21   can  add to anybody else's comments today.  If you have any



22   questions,  I will be happy to try to answer them.



23              MR. KOZLOWSKI:  Yes.  Mr. Wheeler, you don't



24   have any problems without general enforcement scheme for



25   the  after-market exhaust system?



26              MR. WHEELER:   Well, other than the limit, it would
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                                                             240
 1  be very difficult  for us  to,  as  far as  I can see right now,
 2  to do anything lower than 80  dB,  because the machines that
 3  we would retrofit  for aren't  available.   It would be very
 4  expensive for us to do very much development work because
 5  there is so many,  you know, bikes that  we would wish to
 6  manufacture for.
 7             We currently  do meet  the regulation, and I
 8  honestly do think  that the 83 dB(A) is  not a social problem.
 9             MR. KOZLOWSKI:  The universal mufflers that you
10  build at the 83  level from the California standard, are
11  those glass-packs?
12             MR. WHEELER:   It's combination glass-pack mechanic
13  routing system inside the muffler.
14             MR. KOZLOWSKI:  Will  they last for a year?  May
15  we have attenuation on it for a  year?
16             MR. WHEELER:   As  far  as  I know, on some of the
17  machines, or at  least, on some of the bikes that we have
18  tested these systems with, and the feedback we get from the
19  customers,  the glass-pack does last --  the glass does last.
20  Now, this is the only stuff that we've  gotten input back
21  from, you know,  people who we have sold the systems to.  We
22  have never  run a system  ourselves for a year or, you know, or
23  equivalent, I guess.
24             MR. KOZLOWSKI:  As far as you know, they will
25  attenuate for a  year?
26             MR. WHEELER:  Yes.
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                                                             241
 1              MR.  KOZLOWSKI:   You,  I assume,  had the same



 2   labeling  problem as Mr.  Rosen had?



 3              MR.  WHEELER:   Correct.



 4              MR.  KOZLOWSKI:   And you will think about, or help



 5   us  think  about  that,  will  you know?  If you have any magic



 5   bullet, we  would like to hear about it.



 7              I'll make the same remark for the change of year



 8   label.  We  also recognize  the possibility that an exhaust



 9   system may  not  need the  change over a year even though the



10   model, the  bike,  there is  some change,  and we're not sure



11   how best  to handle that  either,  so if you don't have any



12   recommended solution for it,  please comment on it.



13              MR.  WHEELER:  Okay.



14              MR.  PETROLATI:   I'm pretty sure I just have one



15   question.   In dealing with the spark arrestor situation,



16   I'm not sure if there's  just  been some misunderstanding.



17   Maybe we  are wrong about what we're proposing.



18              The  spark arrestor will be designed for a specific



19   muffler system  that you  produce,  is that correct, or would



20   it  be designed  for an OEM  system?



21              MR.  WHEELER:  Well, basically,  the spark arrestor



22   is  approved by  the U.  S. Forestry Service for a particular



23   displacement category, and it is  available for anybody to



24   put it on just  about anything, including automobiles.



25              MR.  PETROLATI:   Okay.   So it is as much the same



26   situation as the universal muffler then?  In other words,
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                                                             242
 1  the application  is not  set by  you.   You sell it,  and it can
 2  be used for anything?
 3             MR. WHEELER:   Yes,  basically.
 4             MR. PETROLATI:  Okay.   Do you sell a specific
 5  muffler to be used in combination  with your spark arrestor?
 5             MR. WHEELER:   No, not a specific muffler; no.
 7             MR. PETROLATI:  Okay.   Do sell a muffler — is
 8  it, you know, for a Harley,  or a Kawasaki?
 9             MR. WHEELER:   We  don't  make any recommendations
10  at this point.
11             MR. PETROLATI:  Okay.   Do you envision the
12  regulations requiring you to test  the spark arrestor with
13  every  combination of muffler being sold?   Is that the way
14  you envision it?
15             MR. WHEELER:   The way I understand it,  just
16  selling the spark arrestor alone,  it would have to comply
17  by itself as being quiet, or,  meet the standard,  the noise
18  standard.  That  is the way I understand it.
19             MR. PETROLATI:  All right.   Maybe it might even
20  be drafted that way.  I'm not  sure.   I would have to check.
21  But, if the requirement was  that you would have to certify
22  to us  to some extent, either by testing or some other form,
23  that the use of  the spark arrestor would not increase the
24  noise  level of the vehicle, would  you have any problem with
25  that,  specifically if we  did require testing?
26             MR. WHEELER:   Right.  The spark arrestor, if
        (213) 437-1327
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anything, would decrease  the noise  level.   However,  you know,
the application is unknown  to us where  it  would be installed,
or how it would be installed.
           MR. PETROLATI:   Agreed.
           MR. WHEELER:   That's all.
           MR. PETROLATI:   Okay.  I think  we're in agreement.
I think we can get that one worked  out.  The universal
muffler I still have  to think about for a  while.   Thank you
very much.
           MR. EDWARDS:   Mr. Wheeler, you  mentioned the
problems of going down to below 80  decibels.   Do  you
manufacture a replacement exhaust system for the  GL-1000?
           MR. WHEELER:   Yes, we do.
           MR. EDWARDS:   Is it louder than the stock system,
the same as the stock system?  How  does  it compare?
           MR. WHEELER:   It's — the GL-1000 that the system
was made for was 78 dB, but on the  GL-1000,  you have to
realize that it is a  water  cooled shaft drive motorcycle,
and it's very quiet anyway, mechanical  noisewise,  and
anything that -- or,  there  are other air cooled motorcycles,
chain drive and such  -- you're looking  at  a total package
rather than just the  muffler.
           Our system was noisier,  but  was still  quieter
than the 83 dB, but it is not as quiet  as  78.   We were in
the 80's on that particular motorcycle.
           MR. EDWARDS:   Okay.  So  this  is the same question
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                                                             244
 1  I asked Mr. Jardine  back  on Friday.   Designing a muffler at



 2  the let's say half-way between about 80,  80% decibels, it's



 3  not virgin  territory for  you.   You've done that sort of thing



 4  before.



 5              MR. WHEELER:   On that  ype of motorcycle.



 6              MR. EDWARDS:   On that  type of  a motorcycle, yes.



 7  I asked the question from the  gentleman from Alphabets:



 8  What about  smog controls  for mo.torcycles.   Is this something



 9  that you are concerned about,  something that you are going to



10  have to do  some testing on?



11              MR. WHEELER:   Yes.   In order to sell systems to



12  anyone for  a 1978 model,  or later, we have to certify to



13  the dealer, if he installs  the system,  it  won't alter the



14  emissions from the motorcycle.  We currently don't have any



15  systems available for the '78  model  year,  or manufactured



16  after January 1st, because  we  don't  know yet.



17              MR. EDWARDS:   But that is something that you're



18  getting into right now?



19              MR. WHEELER:   Oh, yes,  we have  to.



20              MR. EDWARDS:   One other question,  which I



21  neglected to ask the  gentleman from  Alphabets — if he's



22  in the audience, maybe he'll listen  up:  In this background



23  document and the preamble,  EPA foreshadowed a possible



24  stationary  test different from this  twenty-inch test that



25  we've all run in the  past.   Perhaps  you saw it,  or a



26  representative from your  company  saw it.   EPA and its
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                                                             245
 1   contractor, McDonnell  Douglas,  ran this test out at



 2   Huntington Beach,  and  it involves an ignition disabling



 3   system,  running  the  motorcycle  up in neutral.



 4             If you  have not examined that part of our



 5   regulations, we  would  appreciate your doing so because, at



 6   this  time, it looks  like a very promising candidate for use



 7   by  the  after-market, at the very least, in lieu of moving



 8   vehicle testing, to  show compliance with our standards.



 9             If you  have any comments on it right now, we



10   would like to have it; but if you don't, we would like you



11   to  take a look at  it.



12             MR. WHEELER:   Well,  briefly, I don't have any



13   practical experience in the disabling device system.  It



14   appears that a retrofit-type system say, for instance, on



15   existing motorcycles,  could be  drawn; and also, it will be



16   more  costly  to enforce,  I believe, to have this disabling



17   device,  both when  it is initially put on the machine, and



18   the extra equipment  it takes at the enforcement level when



19   the guy's checking to  see how noisy the system really is.



20             MR. EDWARDS:   I'm talking, at least right now,



21   strictly, for EPA, testing for  EPA, to allow distribution



22   in  commerce by the after-market manufacturer, I'm not



23   talking about field  situations  now.



24             In other  words, your MCM, you have a muffler



25   that  you want to show  that is in compliance with the



26   standards, and instead of having to run a moving test on a
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                                                             246
 1   particular model,  you would run this kind of a stationary



 2   test, which we thing,  at the very least, would save you a



 3   lot  of  space  if nothing else.



 4             It's a  question of,  would your dealers go along



 5   with lending  you a motorcycle for that purpose?  Is it a



 6   convenient test for you to run?  Can you figure how to



 7   hook the  damn thing up to a motorcycle?



 8             MR.  WHEELER:  Well,  yeah, that would be no



 9   problem.   I guess  you're asking two things:  Number one, a



10   stationary test would be the way that the thing would be



11   enforced,  so  that  would be the way we would like to certify,



12   right?  Okay.   The stationary test with the ignition



13   disabling device,  I have never run it, but I understand that



14   there are a few problems with it.



15             In fact, you should ask Mr. Rosen, because I



16   think he  was  personally involved in that, and each time the



17   test was  run,  I think something malfunctioned.



18             (Addressing Mr. Rosen, in the audience)  Is



19   that correct?



20             MR.  ROSEN:   Yeah.



21             MR.  WHEELER:  Yes.  The stationary test -- I'm



22   not  sure  about the question exactly — but we do need the



23   stationary test over the drive-by test, if nothing else, for



24   safety  reasons, especially in the dirt bike range, because



25   if you  do run a motorcycle on the pavement with the dirt



26   bike tires, it's going to do one of two things, you're going  '
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                                                              247
 1   to  get wheel slippages and the thing is going to stand you
 2   up,  or perhaps,  if the EPA,  or the industry, would  like  to
 3   get the  bugs out of this system that were found during that
 4   testing  program,  maybe that's something that some or all of
 5   us  should do.
 6              MR.  EDWARDS:   Yes.
 7              MR.  WHEELER:   Some type of stationary test, I
 8   believe,  is needed.
 9              MR.  EDWARDS:   Okay, Mr. Wheeler.  That concludes
10   my  questions.   Thank you very much.
11              CHAIRMAN THOMAS:   Thank you very much, Mr.
12   Wheeler.   I appreciate your  coming in and talking to us  this
13   afternoon.   Do  you have something further?
14              MR.  KOZLOWSKI:  I was wondering, Mr. Thomas,  if
15   we  might have Mr. Rosen up here so we could ask him what
16   happened.
17              CHAIRMAN THOMAS:   Mr. Wheeler, thank you very
18   much.
19              MR.  WHEELER:   Okay.
20              CHAIRMAN THOMAS:   We appreciate your taking the
21   time to  come in.   If Mr. Rosen would care to respond to
22   these questions,  we would be delighted to hear from him.
23   Thank you,  Mr.  Rosen.
24                          JERRY ROSEN
25              Every time I was  involved in the ignition
26   disabling device, it had severe malfunctions, and-there  was
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                                                             248
no  consistency  at  all.   We  were at the McDonnell Douglas
facility,  and we  tried,  on  a number of occasions, to use it,
and we never did  complete one full day of testing without
some kind  of a  bug developing:  it wound't shut off at the
correct  RPM, or it would shut off completely and the bike
couldn't be restarted,  or it would just fail to work
altogether, so  until  it's proven practical to use, I can
see very little use in  it.
           MR.  KOZLOWSKI:   Other than that,  were there any
problems with it!   (Laughter)
           MR.  EDWARDS:  Just for the record, perhaps you
were there during  the early part of that testing program,
I don't  recall, but it  certainly worked on the prototype
model.   We had  never  used a device like that before, and
I think, by the end of  the  program they were getting -- the
biggest  problem was matching it to the motorcycle, finding
where to connect  it electrically to the coils, and so forth,
but I believe —  I think the people from McDonnell Doughlas
have gone  -- but  I believe  that the device was working much
more reliably toward  the end of the program than at the
beginning, but  there  were bugs,  no question about it.
           MR.  KOZLOWSKI:   For the record also, we were
working  on it at  our  enforcement facility in Sandusky, and
.had better results than that.
           MR.  PETROLATI:   It should be taken into account
that that  was the  first time any testing on this was done.
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                                                             249
 1             MR.  ROSEN:   One  thing that was brought up when we
 2  were using that was  the thought that the factory would make
 3  test connections  available  so that that would be able to be
 4  plugged  in without having to  do wiring with it or figure out
 5  where  to put  it,  and such a package like that, if it came
 6  along, then it  would make it  a lot easier to use.
 7             CHAIRMAN  THOMAS:   Thank you very much, Mr. Rosen.
 8             MR.  ROSEN:   Okay.
 9             CHAIRMAN  THOMAS:   Mr.  Tim Runner.
10                           TIM RUNNER
11             Good late afternoon.  My name is Tim Runner.
12  I  am the Technical Director of SEMA, which is a Specialty
13  Equipment Manufacturers Association.  SEMA represents
14  sixteen  hundred manufacturers,  warehouse distributors,
15  jobbers  and dealers,  in the specialty parts area, pluse  we
16  have an  enthusiast division made up of individuals who are
17  primarily automotive enthusiasts.
18             The  reason we are  involved in this hearing is that
19  some of  our manufacturers of  after-market and specialty
20  exhaust  systems for  automobiles are also manufacturers of
21  exhaust  systems for  motorcycles,  plus we have the privilege
22  of some  exclusive exhaust system manufacturers for motorcycle;
23  being  among our membership.
24             SEMA favors  reducing noise to reasonable levels.
25  SEMA has sponsored major vehicle noise testing programs.
2°  The motorcycle  noise problem  comes primarily from the minorit
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                                                             250
 1  group of motorcyclists who  ride  bikes  with modified or non-
 2  existent mufflers.
 3             The EPA  proposed regulations  will punish all
 4  motorcyclists in order to attempt  to thwart the noisy minority
 5  All motorcycle and  exhaust  system  buyers will have to pay
 6  higher prices.  The majority, who  are  law abiding motorcyclists,
 7  will be punished in an attempt  to  reach  the noisy minority.
 8             SEMA's primary interest is  in the area of after-
 9  market exhaust systems.  We do not want  to see this industry
10  severely reduced in size with the  corresponding loss of jobs
11  at the factory and  in the field.
12             In order to understand  this industry we must
13  understand their market.  Why do people  buy after-market
14  exhaust systems?  One, they buy  it for replacement purchases,
15  and I think  the after-market has the advantage of a significantly
16  lower price  at the  present  time.   Secondly, some people buy
17  for visual aesthetics.  They want to achieve a unique look on
18  their motorcycles.
19             Currently, a number  of  people buy for performance.
20  They want an increase in horsepower and/or an increase in
21  fuel economy.
22             Last, and unf err tuna tely --  maybe not least -- we
23  also have those that buy to increase the noise of their
24  machine.  This may  be a desire  for attention, or a need to
25  make an anti-social statement,  or  whatever, who knows.
26             SEMA recommends  that  the standards be se.t at 83
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                                                             251
 1  decibels, or a minimum of  80  decibels,  to  hold down the



 2  cost  impact of the  regulations.   As  EPA has  pointed out very



 3  well,  the actual  new motorcycle  noise  levels will be lower



 4  than  these stated regulations  plus,  in normal day-to-day



 5  operation, the noise levels will be  significantly lower than



 6  the standards, which are measured under a  severe operating



 7  condition.



 8             The test procedure developed by EPA seems to be



 9  repeatable.  It is  unfortunate that  a  simpler,  lest costly



10  procedure, can not  be developed.



11             SEMA prefers  the use  of stationary tests for



12  determining exhaust system noise whenever  possible.



13             SEMA recommends that  the  exhaust  system manufacturers



14  be allowed to use stationary  tests for certifying exhaust



15  systems.  The test  procedure  presented in  Appendix "J" seems



16  to be a  usable stationary  test method.   "Worst case"



17  motorcycles should  be selected and tested  as representative



18  of universal mufflers.



19             The concept of  labeling motorcycles and exhaust



20  systems  seems to  be a necessity.   The  contents of the labels



21  should be minimized.



22  •           SEMA recommends that  the  sound  values put on the



23  labels be selected  at the  ninety-ninth or ninety-eighth per



24  cent  level, rather  than  the ninetieth  or ninety-fifth per



25  centile  low.  This  will  reduce the possibility of local law



26  enforcement agencies picking  what we've heard referred to as
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                                                             252
 1   "fudge  factors'' that are too low.



 2    -          The  labeling of exhaust systems currently in the



 3   distribution  system would be very costly.  Therefore,



 4   labeling  of exhaust systems for non-regulated motorcycles



 5   should  apply  only  to exhaust systems produced after the



 6   effective date  of  the regulations.



 7              SEMA is in favor or EPA setting realistic



 8   stationary test standards,  rather than allowing local



 9   government to pick  values.   Today, the standards vary from



10   state to  state,  and even city to city.  This has precipitated



11   selective enforcement where the officers decide whether a



12   vehicle has too loud an exhaust system when it exceeds a



13   local drive-by  noise standards.  Unfortunately, some of



14   these unrealistically low local standards have been



15   encouraged-by EPA  personnel from regional offices.  Having



16   a realistic standard at the national level should eliminate



17   these problems.



18              SEMA is concerned with the lead time allowed in



19   the  proposed  regulations.   The after-market manufacturers



20   are  faced with  emissions requirements, as well as the



21   proposed  noise  regulations.  This compounds their design



22   problems.   Usually, the after-market does not have early



23   access  to new models.



24              By proposing rapid reductions in noise levels



25   over five years, EPA will be adding significantly to the



26   problems  of the after-market manufacturer.  The rapid
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                                                             253
 1  reductions  in noise  levels will precipitate rapid changes
 2  in  the OEM  motorcycles, which,  in turn,  will affect the
 3  after-market design  efforts.
 4              SEMA recommends  that the SEA's be done on a single
 5  sampling  scheme.   The  stationary test per day estimates seem
 6  relatively  high,  according  to  input we have received from
 7  our members.
 8              SEMA recommends  that the after-market exhaust
 9  system manufacturers be allowed to use a standard SLFDS
10  rather than having to  run costly tests for each motorcycle
\\  exhaust system  —  and  I realize that that may be an error,
12  that  last statement, that that  is required.
13              SEMA approves  of  the elimination of the SLDF
14  from  the  stationary  test —  I think the first statement would
15  only  apply  if the  after-market  manufacturer chose not to use
16  the stationary  test, and  I would be surprise if any of them
17  did if they have that  option available.
18              SEMA recommends  that the EPA prepare training
19  films and books for  colleges to use in training police
20  officers, and exhaust  system installers.   The California
21  Highway Patrol  has attempted to train its officers, and yet
22  a great deal of ignorance still exists.
23              Those are my prepared comments.   I would like to
24  make  one  other  statement  about  a question brought up to the
25  last  two  witnesses.
26              The  anti-tampering provisions  of the Clean Air
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                                                             254
 1  Act will  probably  result  in after-market manufacturers



 2  testing and reporting.  Memorandum 1-A is just the beginning



 3  from  EPA.   Self-certification regulations are in the mill.



 4  This  means  that, very likely,  exhaust manufacturers will



 5  have  to do  some form of self-testing, and self-certification,



 6  and submit  this data to EPA.   I do not believe it will be



 7  anywhere  as  near as  rigorous  as the testing required for



 8  new vehicle manufacturers,  but on a  proportion basis, it



 9  will  have significant impact on the small after-market



10  manufacturers.



11              Thank you for  your attention.



12              MR.  PETROLATI:   Your statement that we should



13  adopt the concept  to pick a. "worst case" with the universal



14  muffler,  do you think the SEMA representatives, the SEMA



15  manufacturers  themselves  would be able to pick a worst



16  case  and  have  assurance that it would meet on the other



17  motorcycles  that they are selling that system for?



18              MR.  RUNNER:  Unfortunately, I'm not sure how



19  best  to approach this.  In the automotive realm,  SEMA has



20  gone  through some  basic research testing programs where



21  we have been able  to generate some sound levels,  and some



22  sound level distributions from various vehicles,  and from



23  this  we might  be able to  infer worst case situations, or



24  at least  reject highly  probably worst case situations.



25              I'm not in a position at this time to state



26  whether SEMA would be able to operate within this area.
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                                                             255
 1  Probably  it would be  more appropriate for tt i Motorcycle



 2  Industry  Council.   I  know they have already taken a number



 3  of  significant  steps  in the  area.



 4             MR.  PETROLATI:  Just one other thing.   The "worst



 5  case",  does that  mean to you "a" single motorcycle, or does



 6  that mean a representative sample?



 7             MR.  RUNNER:   I would like for it to mean a



 8  single  motorcycle,  but  being a 'realist, I would have to say,



 9  it  would  be a representative sample.  There probably are,



10  for a given universal system,  maybe one,  two  or three,



11  different motorcycle  configurations where you would have



12  a "worst  case"  potential.



13             MR.  PETROLATI:  Okay; fair enough.   You mention



14  that the  number of tests that  we may require  -- I think



15  you were  referring to in a single day's time  — the



16  manufacturer is required to  conduct a selective enforcement



17  on  these,  may be  too  high.



18             Did  your representative  members present you



19  figures for the number  of tests they couldn't comply with?



20             MR.  RUNNER:   I have heard a variety of numbers



21  ranging from very low figures,  maybe one-third of what you



22  have stated to  about  two-thirds of  what you have  stated.



23  I am hopeful that they'll be able to respond,  in  writing,



24  to  that.



25             My experience with  these fellows indicates that



2°  they do not have,  typically,  super  sophisticated  testing
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                                                             256
 1   capabilities.   They have some very bright fellows that get



 2   the  dynamometer and bike out there, and usually the guys



 3   that are  doing the design oftentimes are also changing the



 4   exhaust systems,  and they're usually short on manpower, and



 5   it just seems  to  take longer.  It's not done on a day-in,



 6   day-out basis,  so there  are a certain number of start-up



 7   time problems,  and repetition problems, and just a number



 8   of factors  that influence and precipitate a lower testing



 9   rate.



10              MR.  PETROLATI:   Okay,  one other question.  You



11   mention that the  test in Appendix "J" seems acceptable to



12   SEMA.  Is that in light  of the comments that were mentioned



13   previously  about  some of the testing difficulties?  In



14   other words, do your manufacturer representatives realize



15   that the  test,  at this time,  is not completely developed?



16              MR.  RUNNER:   Yes,  we realize that fully.   We



17   feel that the  technology exists to develop a successful



18   ignition  cutoff system with a high degree of reliability.



19   That, obviously,  is a prerequisite to using this procedure.



20   One  of the  risks  you have is, your worst case is where the



21   ignition  system fails to cut off,  and the motorcycle engine



22   becomes a number  of pieces.   We obviously hope that  that



23   doesn't happen because most of our manufacturers have to



24   borrow the  bikes  from a  dealer, and the rule usually is,



25   "you break  it,  you bought  it."



26              MR.  PETROLATI:   Okay.   I infer from that, then,
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                                                             257
 1   that  they believe  that  their ability to test to a standard



 2   versus  to test  to  the OEM level,  as  measured with the MIC



 3   test, is the better way to go?



 4              MR.  RUNNER:   No,  quite frankly,  I haven't



 5   discussed with  them  those either-or  type options, and I am



 6   not prepared to address that.   I'll  try to  do that in our



 7   written testimony.



 8              MR.  PETROLATI:   Okay,  very good.   Thank you very



 9   much, Mr. Runner.



10              CHAIRMAN THOMAS:   Mr.  Runner, what market share



11   does  SEMA represent with respect  to  muffler exhaust system



12   after-market manufacturers?



13              MR.  RUNNER:   I am only guessing,  and it's a very



14'  crude guess, but I would say, probably, somewhere between



15   twenty-five and thirty-five  per cent.   We do not tabulate



16   the figures, and I have no access to tabulate the number,



17   but I just know that our members  who are involved in the



18   area  tend to have  significant positions in  the marketplace.



19              CHAIRMAN THOMAS:   Would you provide us with the



20   names of those  firms who are members of your organization



21   who are in the  motorcycle muffler exhaust system after-



22   market  manufacturing business?



23              MR.  RUNNER:   Certainly.   I would be happy to.



24   Would you like  that now,  or  would you like  it in our



25   written submittal?



26              CHAIRMAN THOMAS:   In your written submittal would
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                                                              258
 1   be fine.
 2              MR.  RUNNER:   I would be happy to.
 3              MR.  EDWARDS:   Mr. Runner, SEMA might be a very
 4   good place to help us out on this, the ignition disabling
 5   test,  through your other manufacturers in your organization:
 6   Isn't it  true that ignition disables are often -- are
 7   sometimes used, --in racing applications?
 8              MR.  RUNNER:   Yes, that's true, perhaps to the
 9   chagrin of some of the  drivers.
10              MR.  EDWARDS:   Perhaps,  as I mentioned before,
11   if EPA does some further refinement work on ignition
12   disables,  SEMA  would be  able to  tap some of the resources
13   from the  manufacturers who are in  this kind of business,
14   they might have nothing  to do with motorcycle mufflers, to
15   help us out and come up  with a reliable system, because,
16   with racing systems, obviously,  you're dealing with very
17   high priced equipment that you don't want to get hurt.
18              MR.  RUNNER:   I will put out a memo to our members
19   who  are in that filed and request  that any of them interested
20   in it, to  contact your Agency.
21              MR.  EDWARDS:   We would  appreciate that very       |
22   much.                                                         j
23              I  had one other question for you.  You mentioned  ;
24   Memorandum 1-A  coming down the pike on smog from EPA.   Do
25   you  agree  with  Mr.  Rosen's comments that in order to comply
26   with air  emissions  regulations that the mufflers are going
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                                                              259
 1   to  have to be quieter from that standpoint alone?   (Witness
 2   non-responsive to the question.)  Perhaps that is something
 3   you don't have the answer to but your members would?
 4              MR. RUNNER:  I would like to submit that in
 5   writing.   I have one of these gut feel things, and  in the
 6   past, my  gut feelings have oftentimes gotten me into
 7   embarrassing situations,  so I would defer to a written
 8   comment on that.
 9              MR. EDWARDS:   I would appreciate that very much,
10   Mr. Runner,  that concludes my comments.  Thank you very
11   much.
12              CHAIRMAN THOMAS:  I've got a couple for you,
13   Mr. Runner.
14              Do you,  or does your membership,  at this point,
IS   see anything in these proposed EPA rules, that would serve
16   to  aggrandize the OEM manufacturer at the expense of your
17   membership in the after-market business?
18              MR. RUNNER:  May I ask you to restate the question
19   please.   I don't have my  dictionary with me,  and I'm not
20   sure of the meaning of that nice long word.
21              CHAIRMAN THOMAS:  What I want to know is --
22   (laughter).   Do you see these regulations helping the OEM
23   manufacturers  at the expense of your folks?
24 .             MR.  RUNNER:  Yes,  I think I do, at least to
25   certain degrees.   One of  the benefits that the after-market
26   has currently  is  the price advantage in their exhaust systems
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                                                             260
 1   and for the replacement sales,  that price advantage is quite
 2   significant.
 3              I'm fearful that with the results of these
 4   regulations that price advantage may be reduced significantly
 5   That,  combined with some of the things that have already been
 6   done in the name of anti-tampering by the motorcycle
 7   manufacturers,  causing disruption in this market because of
 g   emissions  regulations, I'm fearful that similar kinds of
 9   things could result in disruption in the marketplace causing
IQ   the consumer,  but even more so  causing the dealer,  to be
11   more concerned about going to a non-OEM exhaust system.
12              Hopefully,  we will learn from our experiences in
13   the emissions  realm, and we won't repeat what's taking place
14   right  now.
15              CHAIRMAN THOMAS:  Do you know, Mr. Runner, whether
16   or  not any  of your member firms are producing non-complying
17   systems, at this time, with state regulations?
18              MR.  RUNNER:  Other than racing systems,  systems
19   intended and sold for racing,  I do not believe that any of
20   our members are building systems which are illegal  in the
21   states that they are being sold.  That's a fairly carefully
22   worded answer,  and I am sidestepping.
23              I  am not sure of how loud some of the systems may
24   be  in  uhe non-regulated states.   I do  not know of any of
25   our members who are building side pipes, or systems designed
26   to  be  super-loud,  except in racing applications.
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                                                              261
 1           •   CHAIRMAN THOMAS:   Has your association ever



 2   considered a self-certification or a voluntary certification



 3   program for noise emissions,  labeling for example, noise



 4   emissions  control,  within your organization?



 5              MR.  RUNNER:   Yes,  we have.  We have been through



 6   this  process of labeling and  noise emissions control in the



 7   automotive exhaust  system area.  The self-certification was



 8   considered at the SEMA level.   It proved more cost effective



 9   to  supply  our members with necessary technical help,  and



10   with  recommendations,  so that they could set up their own



11   testing facilities, but in the automotive exhaust system



12   area,  our  members tend  to be  much larger companies than the



13   types  of companies  that we see in the motorcycle exhaust



14   system realm, so the capability technically of the companies,



15   and financially of  the  companies,  is much greater.



16              What we  did  is sponsor testing programs primarily



17   well,  all  at McDonnell  Douglas, trying to define the  noise



18   levels  that existed in  the real world,  and we now have a



19   testing program that we're trying to relate different test



20   procedures,  and try to  look at every test procedure we can



21   think  of and see what kinds of correlations do exist.   Again,



22   this  is  automotive, for clarification of the record.



23              CHAIRMAN THOMAS:   So your firms, your member



24   firms, would not be large enough,  then,  to undertake  such



25   a program  on the noise  for mufflers  for a motorcycle?



26              MR.  RUNNER:   No, I  wouldn't  say that.   I think
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                                                             262
 I   that  it  s  dependent on the test procedure selected, and the



 2   number of  different models that have to be tested.  If we



 3   talk  in  terms  of the stationary test, and we talk in terms



 4   of worst case  representative models, and we talk in terms



 5   of an SO dB(A),  then I think our members can achieve a



 g   testing  that's  required,  within their own facilities, and



 7   can afford the equipment  and the training of their personnel.



 g              CHAIRMAN THOMAS:   Do you count among your



 g   membership any non-U.  S.  manufacturers for motorcycle after-



IQ   market?



11              MR.  RUNNER: No,  we do not.



12              CHAIRMAN THOMAS:   Anything else?  (No response



13   to the question.)   Thank  you very much,  sir.



14              MR.  RUNNER: Thank you very much for this



15   opportunity.



16              CHAIRMAN THOMAS:   The crowd is thinning.   We



17   have  two more  scheduled speakers,  and perhaps  one more



13   beyond that.  We would not anticipate that the length of



19   time  for each  presentation,  including questions,  would run



20   more  than  thirty minutes  maximum for each of these,  which



21   is about the maximum that we would expect to remain would



22   be another hour  and a  half,  unless there are others  who



23   would care to  speak.



24              I would  propose,  at this  point,  that we take



25   about a  ten minute  break,  and that we continue through



26   without  a  break  for dinner,  unless there are objections from
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                                                             263
 1   anyone in the audience.  We will  continue,  then,  with Mr.



 2   Jim Grogan next, please.  We will take  a ten minute break



 3   at this point.



 4                    (Whereupon, the  proceedings were



 5              in recess from 5:35  o'clock,  p.m.,  until



 5              5:55 o'clock, p.m.)



 7              CHAIRMAN THOMAS:  We will  reconvene how, and we



 8   will hear now from Mr. Jiin Grogan.



 9                           JIM GROGAN



10              Thank you.  The comments that I  am going to make



\l   are based on our company's understanding of the proposed



12   rule makings.  I might preempt  them with, we are  members



13   of the MIC who were -- we were  prompted joining them because



14   of the State noise regulation and the pressures that were



15   being put on our dealers to market our  product, and we are



16   also members of SEMA, the Specialty Equipment Manufacturers



17   Association, as an exclusive manufacturer of motorcycle



18   awning products, and again we come to react to legislative



19   pressure and our ability to react correctly.



20              First of all, the uniform  regulation is  welcomed



21   by our company.  The states were  tearing us up individually,



22   Oregon, Florida, Pennsylvania.  We're spending much too much



23   time on the basic problems there  where  everyone has a



24   different test procedure which  we couldn't  react  to even if



25   we wanted to in any capacity.



26              Description of our company:   Basically,  Kendick
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                                                             264
 1   Engineering is  the corporate exhaust division.  It is active
 2   in the after-market motorcycle replacement exhaust industry.
 3   Based on the EPA background study,  we maintain approximately
 4   a five to seven per cent share of the market.  Current
 5   facility size is thirty-nine thousand square feet, eighty
 6   full  time employees,  not including  twenty-eight sales reps,
 7   and numerous small suppliers in the local area.  These small
 8   suppliers run small three to five man shops that act as
 9   vendors  to expedite or keep our costs down as,  fabricators,
10   welding,  stamping shops,  things like that.
11              We have twelve separate  models in our product
12   line.   Our current suggested list price is one sixty nine
13   ninety-five.  'To the  best of our ability this price as we
14   can calculate it the  first year of  the proposed rule making
15   would escalate  anywhere from fifty  to seventy per cent.
16   This  would be based on current noise proposal as it stands
17   and in relation to our R&D necessary to tooling changes,
18   certification,  testing, manufacturing costs of basic redesign
19   labeling  costs,  plus  the  EPA predicted decline in demand
20   of both our product and the motorcycle in general.
21              Further reaching implications affecting list
22   price costs are reduction in our work force,  relocation
23   expense,  new product  development, broad fabricated material
"   price increases  due to  lower volume processing requirements.
25              Also related are if we should diversify in
2°   comparison in the industry we have  a young firm but it is
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                                                             265
 1  on  the upswing we  do have manufacturing capability and the
 2  talent to  come up  with new products that would be best lent
 3  to  stay  in the motorcycle after-market field, not in the
 4  exhaust  product  end of it, the spinoff into accessory racks,
 5  seats, some of our competitors are doing that just of right
 6  now,  that  displaces maybe two or three times the number of
 7  companies  that are in exhaust business because we could
 8  move  in  on two and three man shops and exceed or be more
 9  than  cost  competitive in their areas,  so impactwise this
10  is  -- you  have to  excuse me I'm a little nervous, it's an
II  emotional  problem, it's a political one that we don't know
12  how to react to, if it's technical .I'm sure we could, as
13  we.  are with emissions -- selective service enforcement
14  auditing,  production verification, the labeling verification,
15  and the  auditing,  are also areas that  add substantial costs
16  to  ourselves and to a certain degree the taxpayer due to
17  the manpower and paperwork requirement from all of the
18  after-market industry.
19              As a  company we always try  and minimize red
20  tape  to  stay profitable, one of the few areas that we do
21  have  control over.
22              Our suggestion, as far as enforcement goes,
23  might be a small government task force of possibly two
24  government employees driving around the Washington, B.C.
25  area  for a period  of one week visiting motorcycle  retailers
26  to  verify  that the entire or the total after-market industry
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                                                             266
 1   is  in compliance to  product verification and labeling.



 2              We  remain confident that this input will be taken



 3   to  heart  and that the seriousness  of the economic situation



 4   for our company  is real,



 5              A little  more  specific  -- and I have been sitting



 6   here-since  8:30  this morning -- some things that have come



 7   up  that weren't  possibly  covered correctly or inaccurately



 8   or  and some things that weren't brought up should be.  The



 9   basic background study is  somewhat dated.   A lot of the



10   information was  taken from 1975.   Basically before it was



11   taken from  a motorcycle magazine.   Their information might



12   be  from  '74 as  far as what actually was happening in the



13   industry.   It  doesn't really show  the technical achievement



14   that has  happened in the  last three years  with the noise



15   emissions of the new motorcycles as they come out they have



16   definitely  bee  on a  quiet  trend.



17              One manufacture in ."specific came out with a



18   model that  had  an operational problem because it was too



19   quiet and the noise  output was indeed increased the



20   following year,  the  following model year.   The customer



21   couldn't  relate  to the gear that it was in.  They were



22   'having problems  with coming up alongside a car and without



23   at  least  the equivalent sound of a car next to you which



24   a motorcycle doesn't make  because  of the lack of a frontal



25   area they're having  problems with  people changing lanes


OR
*"°   with the  motorcycle  unobserved.
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                                                             267
 1              This  is  some of the thinking that maybe our
 2   past  customers or people who are noise related as far as
 3   motorcyclists go maybe they relate a little safety to the
 4   whole thing not  justifiably because to the public welfare
 5   or  your aim or our aim to stay in business but it's a
 6   different aspect.
 7              Within our own product line we have instituted
 8   since September  a twelve per cent reduction in noise output
 9   in  our particular exhaust systems not because there was as
10   much  importance  to  stay in business in Florida, or
11   Pennsylvania, but across the board for all states so that
12   we  do have cedibility with our dealers, and we had a positive
13   company direction where we could rely on forecasting and
14   prediction for setting budgets and sales goals.
15              The 83 dB(A)  limit in our opinion to meet that
16   in  the ninety-ninth percentile,  as I understand it,  means
17   that  we should strive for 80 dB(A) to meet 83 dB(A)  because
18   of  the manufacturing and test tollerances that are real,
19   whether it is the humidity for the fit of one thing or
20   another to guaranty no louder than 83 we feel that in
21   manufacturing we would have to design prototype and add
22   additional tollerances to our product and strive for 80
23   before it goes in the box or is  approved for production.
2^              When  we  test and do our prototype work at 80
25   dB(A)  whether it's  dynamically on a fly-by or the MIC
^°   twenty-inch test which we have good correlation from our
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                                                             268
 1   experience,  all of  our  engineering backgrounds,  what there
 2   are of  them, is based on  the MIC half meter or  twenty-inch
 3   test  find  that we have  with current  product a mechanical
 4   threshold,  the motor does  get  rattles,  and bangs and clicks,
 5   and all kinds of different things when  you hold it for a
 6   sustained  period of time,  particularly  during octaband
 7   analysis,  you have  to take that air  cooled engine and blow
 8   air across it even  though it is stationary and  we have found
 9   mechanical threshold of 80 dB(A) in  many motorcycles,  not
10   all.
11              Also the importance of having a good twenty-inch
12   test  with  correlation is  particularly important because of
13   the safety of the rider and the relationship of workmens
14   compensation or liability insurance  as  an employee riding a
15   motorcycle of a thousand  cc's  with seventy brake horsepower
16   and with pearl type systems with the stock engines that could
17   even  add ten per cent to  that  you have  to not only have a
18   test  site  but you have  to maintain it which means it has
19   to be clear, level, with  no sand or  anything where you would
20   go out  on  a normal  unused highway and you have  to sweep it
21   down, it does require quite a  bit of time and labor to make
22   it safe and even then if  something should occur whether it
23   was a mechanical failure  or a  brake  failure we  really don't
24   know  what  we would  do or  what  would  happen to our insurance
25   rates or what our liability is to that  employee.
26              That's a very  serious thing  that we  have been
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                                                             269
 1  minimizing  any  kind of dynamic test because of that related
 2  wheel  spin  and  mechanical problems  particularly on a new
 3  motorcycle  or a borrowed motorcycle where it is not present
 4  and  completely  gone over by  our own technical people.
 5              Things  do happen  to new  motorcycles whether you
 g  run  the  dynamic test which is  almost a no no when you borrow
 7  a bike.  To go  out and buy one is twenty-four to four
 g  thousand dollars in the product group where we supply systems.
 9  Even the running of the static tester is  paint discoloration
10  other  things your  oil temperature gets exceedingly hot.   We
11  have a universal muffler that  we use but  we also have a
12  similar  design  for all the headers  for the smaller displacement
13  and  particularly in the smaller bikes there's heat problems
14  in some  cases makes it very  difficult to  justify borrowing
15  a bike or even  getting one on  loan  in a new condition which
16  is usually  a late  model and  sometimes the pipe lines  may
17  still  be months before they  reach the dealers'  showroom
18  floor  so there's difficulties  in getting  ahold of the bikes
19  economically and then after  if you  should have to buy one
20  what do  you do with them.
21              In this  particular  area  they give bikes away,
22  there's  price wars,  they  don't maintain their prices  a lot,
23  the  dealers don't,  they  rely on the  accessory sales to
24  generate revenue.   They want the service  work and the dealer
25  cost is  generally what  the motorcycle is  marketed for.   Other
26  parts  of the country may be  different.
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                                                             270
 1           '  We  also  are  concerned or became a little more
 2   concerned  after  the OES talked today about the competititive
 3   advantage  that they may have.   Besides  offering a system that
 4   we think our customers  buy number one for styling,  then
 5   maybe performance,  or the tone,  the weight savings  is
 6   substantial, we  feel that it  is  designed and it meets or
 7   exceeds  OEM durability  with the  new regulations,  maybe not
 8   so much  the noise,  and  we have to address ourselves because
 9   we're eminently  pressured by  the emissions regulations of
10   having to  come up and meet his price which we will  definitely
11   lose our price advantage.  Again the econonomic impact on
12   our company.
13    .         You asked questions about how the emissions
14   certification  is going  to affect performance and I  would say  j
15   that if  you had  no  noise regulations right now that the
16   requirements to  meet emissions in the motorcycle industry
17   and create a reasonable basis  which means run several
18   expensive  Federal test  procedures on a  certified emissions
19   chassis  dyno for which  there was only one public lab in the
20   country  and it just happens to be within about thirty miles
21   of here.
22             To  meet  those emissions requirements we  have run
23   tests there.   Unfortunately there is an EPA government
24   program  going  on there  and  we are fit  in at convenience
25   sake but indications do tend  to  indicate that similar
26   back pressure  is required to meet the emissions standards
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                                                             271
 1  which  does not  really  allow any type of a design that we're
 2  aware  of  to  be  as  free-flowing as the louder systems on
 3  the market today.
 4             Some questions  or general questions that I will    j
                                                                   i
 5  need I would like  to ask about before you ask me some and
 6  one thing is we do support the MIC half-meter test
 7  wholeheartedly  if  for  no other reason we have gotten good
 8  correlation  and we've  been using it for approximately seven
 9  months as longs as v/e  have had Type One sound level meter
10  in our company  and all of our engineering background studies
11  would  have to be related back over to any new proposed short
12  tests  for correlation  purposes which would be our responsibility
13  I'm sure.
14             One  thing again that I ask is for the system
15  design prior to 1980 I would like to know if there is a
16  labeling  requirement for that and why.   If it's  an unregulated
17  motorcycle replacement parts labeling,  and this  again may
18  be my  misinterpretation or my company but we have systems
19  that break down'into components and that each replacement
20  component have  to  be individually labeled.
21             Also we think that grouping by displacement is
22  possible  to  some degree depending on the red line displacement
23  of the motorcycle  and  the maximum rate of horsepower.  We
24  have found that between one or two thousand cc motorcycles
25  or three  --  excuse me  -- if the red line is, say, eight
2"  thousand  then we run our twenty-inch test at fifty per cent
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                                                             272
 1  of that rated  red line,  basically we can get correlation.
 2             The other  suggestion on labeling as we have the
 3  same problem as  everyone else  insomuch as we have one basic
 4  muffler assembly that not only fits say eight motorcycles
 5  for a given model year but it  back fits five years if the
 6  basic, engine configuration hasn't changed, and does that
 7  include it on  the labeling maybe a manufacturing code number
 8  and the decibel  reading  is all that's required on the label,
 9  and the name of  the manufacturer,  and the dealer network,
10  or the EPA or  mailing on the EPA could categorize it that
11  way rather than  reaching every make and model as a suggestion
12             The emissions might, to get back on that a little
13  bit, technically compounds quite a few things.  They
14  basically worked on engine efficiency which most companies
15  in the after-market have done  and made a profit at over
16  the years.  We do improve a lot of things in the past on
17  standard bikes.
18             The manufacturers to meet AC and CO requirements
19  have basically leaned down the carburetors, and very
20  effectively.   Now this raises  the gas temperature quite a
21  bit in the exhaust system of motorcycles manufacturered
22  after December 31, 1977.  This gas rate to maintain
23  performance, the gas  rate has  to have a higher flow rate
24  for equivalent performance.  The higher flow rate is again
25  more difficult to dissipate.
26             So  not only do ws have state of the art quieting
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                                                             273
 1  work or noise reduction work  to do but we  have  the higher
 2  gas temperature rate to address ourselves  to, and we do
 3  not have a resident engineer  in our  company.  Maybe we
 4  should.  Maybe we're going  to have to.   But  that  again is
 5  part of our economical picture that  has  to be looked at also,
 6  and if we do get one, where do we get one  from, a motorcycle
 7  company, probably not as our  future  looks  so unstable we
 8  would probably have a hard  time negotiating  any type of
 9  competent engineer at any price except on  a  short term
10  basis and that isn't the way  that we maintain our employees.
11             The only problem is again noise related and
12  again OEM related.  It is a technical one  that  we are having
13  trouble with and that's our the emissions  motorcycles that
14  you can not change the jetting.  You can not change the
15  jetting and you put a good  hard breathing  exhaust system on
16  you cause engine temperature  to rise, oil  temperature to
17  rise, and the durability of the basic motorcycle  is reduced
18  substantially.
19             Also a large percentage of our  parts go out
20  chrome plated and if you get  up in those temperature ranges
21  the chrome starts bluing, the customer isn't happy either,
22  so we're forced to increase back pressure  on any  motorcycles
23  that are manufactured two years before your  imposed noise
24  regulations and it's really not that I'm belittling the
25  noise thing as compared to  the emissions thing, it seems
26  like they're both on an equal technical  plane as  far as our
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                                                              274
 1  product  development goes.

 2             And your goals,  the emissions people's goals,

 3  and  ours,  seem to  be common.   It is only our ability to

 4  react  that I'm concerned about,  and I think that we all

 5  should be.

 6             The intake silencing designs again the manufacturers
                                                                   i
 7  have been  taking great pains  and a lot of money to quiet

 g  intake roar  as you are aware  is  necessary.  This sets up

 9  fluctuations  in the air box as far as the air-fuel mixture

10  goes,  the  complex  intake's  path are hard to figure out how

11  to design  the exhaust system  to  react to these intake paths.

12  Again  it's like self-regulation.   You're making us react so

13  that it's  even operational  with  the manufacturers' art in a

14  positive manner.

15             They're doing a  lot to the motorcycles already

16  and  we thank  them  for it ourselves.   Okay.

17             Again,  it was much worse before March 17th or

18  whenever the  Federal Register was put out because we were

19  dealing or were forced to deal with quite a number of

20  different  states with varying degrees of technical experience

21  or even consideration for the motorcycle industry or their

22  problems.

23             I  think that's it  I have to close on that note.

24  Any  questions  you  may have  or technical information that I

25  can  supply you I certainly  will  unless it's confidential

26  and  then I'll  refer  that in writing.
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                                                             275
 1              MR.  KOZLOWSKI:   Mr.  Grogan,  how would you

 2   determine  for yourself that your product meets the noise

 3   standard;  that  is,  if EPA  dropped its product verification

 4   and,  let's  say,  it's  reporting,  and said,  "You certify

 5   yourself"?   How would you  go about making that determination?

 6              MR.  GROGAN:   Well,  I  believe that self-certification

 7   is a  commitment.   It's  one of first of all determinining

 8   if you have the technical  capability as a company to self-

 9   certify, to have the  necessary equipment on hand,  the

10   personnel  duly  trained in  it,  and to properly execute basic

11   instructions  as  far as  how to measure the sound,  how to

12   produce the labeling.   We  need input to react to.

13              Those test results would be  compiled from

14   physical tests,  static  ones  if possible,  and submitted in

15   writing to  the  Environmental Procection Agency,  and then

16   any kind of an  enforcement could be done at any retail
                                                                  i
17   outlet that we  have.  We have four thousand dealers.          !
                                                                  i
18              Did  I mess up?                                     |
                                                                  i
                                                                  i
19              MR. KOZLOWSKI:  No, no,  I thought I misunderstood !

20   you, but perhaps you  answered my  question  like I would like  i

21   it to be answered.  You say,  then,  if we dropped  our         !
                                                                  !
22   requirements, you would test anyhow,  and send that  information

23   to the EPA?

24              MR. GROGAN:  What we would try  to  do  is  react     !
                                                                  i
25   to your requirments.  Okay.  Yes, we would do  that.   We do

26   that for states now.  If they do  not have  a  clear test
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                                                             276
 ,1   procedure rather than call somebody that can not give you
 2   any  kind of an accurate answer,  we generally forward a CHP
 3   dynamic test,  and a statement that this is true, and here
 4   are  our part numbers.
 5              MR.  KOZLOWSKI:   Fine.   That sound very much like
 6   our  product verification testing,  ignoring SCA and rather
 7   it looks like  what we want for our required TV testing
 8   and  our required reporting,  I think.
 9              How about having a look at that and perhaps
 10   commenting on  that to  us.
 11              Would you also,  if you  could,  and I know this
 12   might be difficult,  would  you give us the amount of product
 13   verification testing and the cost,  the anticipated cost,
 14   that you would see in  the  regulations based on the proposed
 15   regulations, the amount of reporting,  more importantly,
 16   the  cost that  the reporting,  the amount of money that it
 17   would cost you to report,  and then thirdly,  something that
 18   you  perhaps  can't,  but how much  an SCA test would cost you
 19   if we ordered  one?
20              MR.  GROGAN:   I  really have to admit that it's
21   very difficult  to understand the SCA  specifics and how it
22   would relate to  our company,  and we have no  experience in
23   that.   Through MIC,  maybe  some of  their technical people,
24   if they would help  us  reduce  the information so that we
25   could understand it, I think  that we  could react that way.
26             MR. KOZLOWSKI:  That's  fine.   Let me also add,
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                                                            277
 1   so  'hat  in your  consideration perhaps to the MIC, the idea



 2   of  SCA is that the  government would identify a statistical



 3   sampling plan whereby  it could test,  and in case of the



 4   after-market, we did away with the multi-sampling plan and



 5   came up  with what we think is a fairly,  a more simpler plan,



 6   but if the MIC provides  technical support to handle this,



 7   perhaps  they would  look  at the plan itself,  and if there is



 8   another  plan that they think would fit your situation, the



 9   after-market situation,  better,  we would like to hear that.



10   Okay?



11             MR. GROGAN:   Yes.   One thing that we have



12   calculated, and  if  you need specific  breakdowns for our



13   company  on what  it  would cost,  is that what you're asking



14   for?



15             MR. KOZLOWSKI:   Yes.   I'd  like an idea  of what



16   kind of  cost the manufacturer would incur.



17             MR. GROGAN:   Okay.   My official,  I think what I



18   can justify is,  what I start  off with fifty to seventy-five



19   per cent increase on one-sixty-nine-ninety-five for the



20   first year of compliance,  if  it's the 83 dB(A).



21             MR. KOZLOWSKI:   Well,  what I was  hoping you would



22   give me  is the testing cost,  the cost broken down for



23   product  verification testing,  one,  and secondly,  the



24   reporting, and then third SCA,  so we  could look at those.



25   is  that  possible?



26             MR. GROGAN:   One of the things I  would like to
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                                                             278
 1   comment, I will react  as  accurately as  I can,  but as our



 2   company is set up,  and working  seven days a week, twelve



 3   to fourteen hours a day,  our  company has gone  from forty to



 4   eighty employees in less  than six months,  and  I know it's



 5   important to react  in  this  area but I don't know how



 6   accurate that information will  be.   We  have a  lot of workers



 7              MR. KOZLOWSKI:'  Okay.   Don't give us bad data



 8   so, but if you can't spend  enough time  that your commitment



 9   is good, don't give it to us  at all.



10              MR. GROGAN:  If  I  can spend  the time.  I just



11   questioned the accuracy because of the  oversights that we



12   may make because I  think  we have to hire one full time



13   employee and crank  that into  the first  year of compliances.



14   That is a dollar or two dollars a pipe  right there.



15              MR. KOZLOWSKI:   Okay.   You make universal



16   mufflers?



17              MR. GROGAN:  We  make an exhaust system,  headers,



18   with a common muffler  core, or  muffling device,  that goes



19   on all of them as far  as  the  large displacement bikes go



20   eighty, ninety per  cent of  it.   The only difference in the



21   muffler is the location of  the  mounting bracket.



22   -           MR. KOZLOWSKI:   Glass-pack?



23              MR. GROGAN:  Basically,  yes.



24              MR. KOZLOWSKI:   Last a year?



25              MR. GROGAN:  Probably.   We recommend every



26   thousand miles that it be inspected.
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 1             MR. KOZLOWSKI:   And how do  they inspect it,
 2  visually or  --
 3             MR. GROGAN:   No.   They have to remove it and
 4  inspect it.  They  have  to  do  that anyhow because,  with the
 5  type of fuels  that are  being  run now,  particularly at the
 6  higher exhaust temperatures,  and also  the gasoline, they
 7  have to go in  and  service  the inside of the core of the
 8  muffler to prevent it from attack if from against the acids
 9  or whatever  is in  there on a  regular basis.  It depends on
10  the area.
11             MR. KOZLOWSKI:   Thank you.   That is all I have.
12             MR. PETROLATI:   We are interested in anything
13  we can learn to  reduce  the testing for the after-market
14  manufacturer.  However, I  didn't quite understand one of
15  your comments  on that.
16             Do  you feel  that testing can be done by grouping
17  into displacement  categories?  Could you follow through on
18  that, ^please,  and explain?
19             MR. GROGAN:   Take  a KZ-1000, and a GF-750
2°  Suzuki, or a GS-10QO Suzuki,  and they both have the basic
21  maximum rate of  horsepower, or their RPM's are at eight
22  thousand,  and  you run them both at fifty per cent of  that
23  on  the half-meter test, basically you get good correlation
24  with  the  same  muffler on both motorcycles.
25             MR. PETROLATI:   In other words, if it meets the
 "  requirements on  one 1000 displacement motorcycle, you feel
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                                                             280
 that  it will meet  the requiCements  on the others?
         •  MR.  GROGAN:   No,  I didn't say that.   I don't
 know what  the  requirements  are on those motorcycles,  and I
 don't  think you do either.   I say you would probably get the
 same  reading.   If  your have  two four-cylinder 1000 cc
 motorcycles, we have  found  if you hold them both a four
 thousand RPM,  or both at forty-five hundred .  .  .
on it?
           MR. PETROLATI:  Both with  your exhaust system
           MR. GROGAN:  Yes.   .  .  .  that you will get a
common reading.
           MR. PETROLATI:  Okay.  What would you do with
this common reading,  though?  Would you  say that this system
is good for a 1000 cc motorcycle?  In other words,  that
common reading is below the requirements,  the EPA requirements
be it the manufacturers' label value, whatever?
           MR. GROGAN:  Simplification of  the labeling,  and
if you get correlation, the necessity, the way that the new
models are introduced, they can be introduced at any time
during the course of  a year, you wouldn't  have to change
your label if a new 1000 came up, but you  could  spot check
it, and you may have  to spot check it, but at least you
would be able to keep the common label, would say 1000  cc,
one hundred and five  -- that's half-meter  test,  Kendick
Engineering, and the  date, I'd like to have the  date of
the motorcycle also,  all 1000 cc's in 1970 or in 1981.
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                                                             281
 1             All  right.   So,  labeling is quite a can of worms,



 2  as  far  as  our degree  of compliance.



 3             MR.  PETROLATI:   I agree,  for the universal muffler



 4  So, your suggestion would be that,  instead of including



 5  model designation,  as  we currently  require, to base it on



 6  the lines  of displacement?   In other words, this sytem is



 7  good for 1000 cc  motorcycles,  etcetera, I know if I might,



 8  you mean whatever you test  it for?



 9             MR.  GROGAN:   We  have correlation between brands



10  as  far  as  like  the  Kawsaki  offers  1000 cc engines in three



11  or  four different versions,  basically the same motor, I



12  don't think it  would  be necessary  for us to check an LTD



13  and a Z-l-R, and  a  KZ-1000,  if they had the same basic



14  engine  on  them.



15             'MR.  PETROLATI:   Okay.   That's correct.  And



16  that's  not a requirement of the regulations.



17             MR.  GROGAN:   Okay.   In  the regulations it also



18  says that  if other  test procedures  can be — information



19  can be  supplied that  would  correlate we would be interested



20  in  saying  that  the  GS-1000  Suzuki  also has the same level



21  as  our  other 1000 cc  bikes  that we certify — self-certify.  \



22             If I have  to go  out and buy a 1000 cc Suzuki



23  and then two weeks  later go out and get a 1000 cc Yamaha,



24  and then they'll  come out with a new emissions regulation



25  in  the  middle of  November and everybody will come with a



2"  new 1000 cc again,  it's going to be -- we're really worried
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                                                             282
 1  about staying  in business,  and I'm just trying to go through



 2  the mechanics  of our  concern.



 3        .MR. PETROLATI:   I understand;  I understand.



 4             MR. GROGAN:  An  acquisition of motorcycles is a



 5  major consideration.



 6             MR. PETROLATI:   Okay.   But  you do understand that



 7  we're contemplating the after-market manufacturer testing



 8  to a great extent  by  the MIC test.   Consequently, there's



 9  no real requirement be adopted for the manufacturer to go



10  out and purchase a motorcycle.  We envision him being able



11  to conduct that test  at the owner's facility.



12             Is  that the same way you see it?



13             MR. GROGAN:  There's no way that we want to run



14  a twenty-inch  test at a dealer's  facility -- I hope there's



15  no dealers"out there  that we borrow motorcycles from -- but



16  because the motor  does get  very hot, hotter than you'd want



17  one of your brand  new bikes to get.



18             MR. PETROLATI:   All right,  so you're concerned



19  about the cooling  problem testing at the dealer's facility?



20             MR. GROGAN:  That's, plus,  if you go to the



21  dealer's facility, there are millions, and in an area around



22  a motorcycle dealer facility we would  run a -- we would



23  want to run a  twenty-inch test.  You know, there is always



24  a wall, or motorcycles, or  people walking by,  and it's



25  usually near a street, and  you've got  cars going by.  There's



2"  just no way.   If you  want correlation, you have to- have
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                                                             283
 1   consistently as  good an environment as you can, particularly



 2   on a twenty-inch test.          '                              j



 3              MR. PETROLATI:   Do you usually wind up bringing   '



 4   these motorcycles back to  your manufacturing plant?



 5              MR. GROGAN:   That is correct, and then we move



 6   them out  again to a test area.  In fact, it's a big parking



 7   lot we  use  on weekends.



 8              MR. PETROLATI:   Okay.   I think that answers my



 9   line of questioning.   Thank you very much, Mr. Grogan.



10              MR. EDWARDS:  Mr. Grogan, I think I can say with



11   all honesty that I have learned perhaps more from you than



12   any other person that has  testified in the last three days



13   because of  that  comprehensiveness and not because of the



14   lateness  in hours.   I don't have  very many questions for you.



15              Your  estimate of of the rise in price from fifty



16   per cent  to seventy per cent at the first level of EPA's



17   the 83  decibel standard?



18              MR. GROGAN:   With the  understanding that our



19   manufacturing goal would be 80.



20              MR. EDWARDS:  Okay, that's what I'm trying to



21   focus on.   Apart from the  SEA reporting, product testing



22   cost, that  Mr. Kozlowski referred to, I guess I'm in a kind



23   of shock  and would be interested  to know how much quieter



"   you have  to make your systems than you are making them



25   today,  current designs.



26              MR. GROGAN:   Current design, probably 3 dB(A),
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                                                             284
 1   current  design.   Now I also  have to clarify that "current



 2   design".  We  just spent thousands of dollars on emission



 3   certification,  so to change  that design again is even more.



 4             MR.  EDWARDS:   I understand.   Can you possible



 5   break  down in your written comments,  how much of the fifty



 6   to seventy per  cent would be attributable to actual quieting



 7   of the muffler  as distinct from additional testing for



 8   reporting purposes established by the EPA?



 9             MR.  GROGAN:   In writing,  yes.   I can do that.



10             MR.  EDWARDS:   Mr.  Grogan,  thank you very much.



11             CHAIRMAN THOMAS:   It looks like it for the moment.



12   Do you have any questions for us?



13             MR.  GROGAN:   Well,  just one last statement, and



14   no one from the after-market that's been here or you will



15   see  is currently selling a system for a 1978 emissions



16   motorcycle which means  that  their sales are being heavily



17   impacted right  now.



18             I  have to apologize for the lack of participation



19   of companies  in the after-market.   They should be here for



20   no other reason but to  listen.   The people that were here



21   were basically  members  of the Motorcycle Industry Council,



22   and  are  very  active and conscientious.   The other companies



23   would  probably  have a hard time buying a Type One sound



24   level  meter to  even react to anything that would be required



25   from your short test,  and we're talking about your prediction



"*   of an  eighty  or ninety  per cent cut back in after-market
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                                                             285
 .1   exhaust  people  it won't be from noise it will be from the



 2   emissions  standpoint unless some sort of waivers, or



 3   understanding,  or group testing, or test facilities alone



 4   are  made available,  and certainly,  what has happened to our



 5   company  and to  eveyone else in the  replacement motorcycle



 g   industry the people  that are there  are just concerned and



 7   a  little mad, and they're going to  make sure that it's not



 3   going  to happen in the area of noise where where we have an



 9   opportunity to  express our opinion  and join trade groups



10   we will  do so as long as we can operate at a profit and at



11   least  have some company growth and  a future commitment in



12   that direction,  a positive direction, which is part of



13   living in  this  country, and I thank you.



14              CHAIRMAN  THOMAS:   Thank  you very much.



15            - Mr.  Collins, RC Engineering.



16                          RUSS COLLINS



17              Gentlemen,  Mr.  Chairman, thank you for this



18   opportunity to  be here today.   I worked very hard on this



19   statement,  and  it seems like every  after-market manufacturer

                                                                  j

20   that has been up here just about covered everything, but,    I
                                                                  i

21   as Jim said,  this is a very emotional situation to me, it is |



22   my life, and I'm fighting for it.                             j



23              So,  I'm Russ Collins, President of RC Engineering,;



24   an after-market company,  manufacturing after-market          ;



25   motorcycle exhaust systems.   I am an independent American    <

                                                                  I

26   businessman,  an entrepreneur,  a motorcycle rider, a          \
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                                                             286
 1  motorcycle  technical  rider,  and a professional motorcycle
 2  racer.   I've been a motorcycle  mechanic,  a salesman, and
 3  a  dealer-manager.  I  have  done  just about all of it.
 4              I am  a self-taught performance engineer of sorts,
 5  and  I have  succeeded  in business through  the use of
 6  innovative  and progressive American ingenuity.  I have
 7  improved the degree,  so to speak,  of every motorcycle I have
 8  ever touched.  I know what power-to-noise ratio is, and I
 9  know that power  is noise,  even  though noise is not always
10  power.
11              I hope that I can shed some light on the problem
12  that we  are addressing here  today, unnecessary motorcycle
13  noise.   I can speak  to you as an after-market manufacturer,
14  a  motorcycle rider,  technical consultant, professional racer,
15  or a hot rodder.
16              Hot rodding, customizing, is related to moving
17  vehicles, cars,  vans, trucks and motorcycles, alike.  I
18  should add  boats. It is the American way of life.  We have
19  custom homes, custom suits and  dresses, golf clubs, tennis
20  rackets, jewelry, guns, fishing poles, etcetera, etcetera,
21  etcetera.
22   .           We Americans are  never completely satisfied
23  with any mass produced products.  We all like to have
24  something special, and that  is  the core of the problem that
25  We face  here  today,  special  motorcycle noise.
26              We have something else special here today, we
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                                                             287
 1  have  our  government officials  sitting here listening to our
 2  problems,  complaints,  desires  and opinions.   This very
 3  special thing  is  something that doesn't happen in too many
 4  countries  of this  world.   It is also the American way of life
 5  Gentlemen,  I applaud you,  I respect you, I encourage you,
 6  and I hope  that I  can  help you, in this very special problem
 7  of very special motorcycle noise.
 8              As  an  after-market manufacturer,  I stress that
 9  the current level  of 63  dB(A)  is reduced even further, it
10  will  cause  not only the  demise of our only remaining American
11  manufacturer of motorcycles, but also the slow death of
12  American  free  enterprise in the highly competitive
13  motorcycle  after market  marketplace.
14              The Japanese  factories that produce most of our
15  current motorcycles are  the only ones that can make the cut
16  below 83.   This would  put the American after-market out of
17  business,  and  could open up a new market of Japanese after-
18  market accessories. They have the technical expertise, the
19  money, and the channels  of distribution through their
20  already established franchised dealers.  Their dealers are
21  the only  ones  that can market their factory accessories
22  by virtue of the  franchise agreements.
23              The independent American parts and accessories
24  stores that are not franchised by an OEM would be severely
25  impaired  in this  type  of a market.
26              Currently,  the American motorcycle after-market
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                                                             288
 1   is  comprised of American products produced in America, by



 2   Americans,  with American materials,  for use on mostly



 3   Japanese  motorcycles.



 4              The  American after-market is currently equaling



 5   the OEM's in gross  sales per year, in American dollars.



.6   Unnecessary,  unenforceable,  meaningless regulations, by



 7   government,  will decrease this American market and add to



 8   the imbalance of trade problems.   It will increase



 9   unemployment by far more than tae five thousand jobs that



10   EPA has suggested.   I  can see twenty to twenty-five thousand



11   jobs lost in America.



12              I criticize the EPA in this area.   I do not feel



13   that the  environmental impact on  American labor and business



14   has been  thoroughly investigated. At current rule making



15   levels, the EPA can be party to increasing unemployment,



16   increasing the  deficit in trading balance,  increasing



17   foreign domination  of  the American market,  and increasing



18   American  taxes  on all  levels,  by  adopting rules that could



19   probably  never  be enforced on the local level.



20              The  local level is where  the problem is and the



21   problem must be solved.   If the American after-market has



22   to  comply to proposed  standards of less than  83 dB(A) it



23   would have the  same effect as putting us out  of business



24   by  legal  measures.   We would have to raise our prices to



25   or  in excess of original equipment manufacturers.   I think



26   that this could be  called "inflation by due process of
        (213)437-132;      MACAULEY Bt MANNING. SANTA.ANA, CALIF.      (714)558-9400

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                                                             289
 1   elimination,"  eliminate the American after-market, and
 2   eliminate  the  problem of special motorcycle noise, at the
 3   same  time.
 4             Wrong 1   The problem could be a teenager riding his \
 5   moto-cross bike in front of your house,  as we have heard by
 6   previous statements.   It could be a racing-only bike being
 7   ridden on  the  street, or an easily modified street bike.
 8   We  should  be -- I've  heard the.word "modified" all weekend,
 9   and I  think we should clarify these statements.  There are
1Q   stock  motorcycles  with stock standard legal approved
11   systems.   There are stock motorcycle systems that have been
12   modified,  i.e., cut off,  hacksawed,  welding torch.
13              A couple of times I've heard the word "modified"
14   being  used and I kind of got the idea they were talking
15   about  after-market.   After-market is not modified, and I
16   just hope  that that is clear,  legal after-market is not
17   modified.  Straight pipes I would have to consider as modified
18              Anyway,  what I'm trying to get to here is that
19   this  cause of  annoying motorcycle noise is not motorcycles,
20   per se, but the misuse of motorcycles, and some of their
21   related parts.   Standard production motorcycles intended for
22   use on public  highways as here follow the present level of
23   83  dB(A) by the fifty foot J-33 acceleration test, now in
24   use,  is not offensive to anyone, or almost anyone.  There
25   is  always  that one very verbal citizen group that has a
26   direct line to the police department, city council, ASPCA,
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                                                             290
 1   local  newspaper,  and the paramedics of course.



 2              These  most verbal citizens  groups really have



 3   nothing else  to do  but complaint,  complain about anything,



 4   and  it really doesn't matter what  it's about,  just join a



 5   cause,  and voice  an opinion.   That is  the American way.  What



 6   these  honest  law  abiding citizens  are  complaining about is



 7   the  misuse of some  motorcycles and motorcycle products.



 8              I,  for one,  and I don't stand alone on this issue,



 9   can  not condone this misuse.   I feel that extreme measures



10   should be  taken to  curb this misues.



11              By previous statements,  we  have heard and seen



12   that the primary  cause of motorcycle noise are off-road



13   only bikes, or competition only bikes, or illegally modified



14   motorcycles,  being  operated in an  area where street legal



15   only bikes are supposed to be.



16              I  have to support strict legislation and



17   enforcement of law  to curb these violations.  The problem



18   is,  identifying the problem makers.  In order to do this,



19   we,  as after-marketeers,  or OEM's,  must help law enforcement



20   solve  the  problem.



21              Labeling is probably the only answer, simple



22   labeling,  street, off-road,  or competition only.  The



23   competition only  bike,  with competition only exhaust



24   system, caught on the streets, should be penalized to the



25   fullest extent of the law.  By the same token, off-road only



26   bikes,  for instance, caught on the public highways, should
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                                                             291
 1   be  subjected to  the same types  of penalties.   The same xvould
 2   have  to  hold true for a street  motorcycle that was modified
 3   to  the extent of cut off mufflers,  straight pipes, or an
 4   after-market system with the silencer system removed.
 5              To reiterate, our special noise problem with
 6   motorcycles  is not 83 dB(A)  street legal motorcycles with
 7   standard or  legal after-market  exhaust systems, our problem
 8   is  race  bikes operated in or close to residential areas,
 9   off-road bikes operated in residential areas  or on public
10   highways,  and illegally equiped or modified street bikes
11   operated anywhere in public.
12              To solve the problem,  we need strict intelligent
13   enforcement  at the local level.   If labeling  would help
14   local enforcement cope with these offenders,  then I would
15   have  to  support  it at 83 dB for street,  and 86 dB(A) for
16   off-road only machines.   If labeling would solve the local
17   enforcement  problems,  then local government must allocate
18   enough tax dollars to pay for it.
19             At 83,  motorcycles would not  be the loudest form
20   of  transportation.   I think that they would be fourth,
21   behind airplanes,  trains and trucks,  trucks as I understand
22  'it, thil  way  I understand it the way trucks are tested by
23   the EPA  at this  time.
24             Motorcycles are a microscopic portion of the
25   overall  noise in society,  but social attitudes toward
26   motorcycle riders  in general is  not exactly fiar.  These
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                                                              292
 1   people are very loud and verbal.  We are being discriminated
 2   against by this very verbal portion of the public because
 3   of a few violators in any of the previously listed cases.
 4              The stricter government regulations get, the
 5   more the public will rebel.  The general motorcycle rider
 6   will live with the current 83 dB limit.  86 was better,
 7   but 83 is livable.  Anything below 83 is going to cause a
 8   marked increase in modifications, modifications that will
 9   not be legal and may be very difficult to police.  The
1Q   public will not be served if the hot rodders are encouraged
11   to make illegal modifications to circumvent a useless,
12   meaningless law;  i.e.,  prohibition,  the Vietnam draft,
13   fifty-five mile an hour,  and the helmet laws,  are a few
14   perfect examples of overregulated citizens telling their
15   respective-governments  where to stick it.  It's the American
16   way.
17              In summary,  I  would like  to ask you to remember,
18   the civil service agencies are formed to protect and serve
19   all citizens.   Motorcyle  riders are  citizens,  motorcycle
20   manufacturers  are citizens,  sensitive elderly  citizens,
21   and John Q.  Public citizens.
22              Let's  get a  good regulations that serves and
23   protects all of us legally.   Let's keep Mr.  Motorcycle
24   Rider  legal.   Don't make  him an illegal hot rodder,  but
25   keep Mr.  Motorcycle,  and  motorcycle  after-market manufacturer
26   legal.   Give him a fair chance to stay in business.   He
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                                                             293
 1   could  be  employing Mr.  John Q.  Public.   By the same token,



 2   let's  keep Mr.  John Q.  working  at a steady job.   He may be



 3   supporting a  sensitive  elderly  citizen  that can't stand the



 4   sound  of  racing motorcycles,  or illegally modified street



 5   bikes.  Let's protect and serve equally.   This is truly



 6   the American way.



 7             Thank you.



 8             MR.  KOZLOWSKI:   Yes,  I'm asking this  question



 9   for information.   It may  sound  argumentative,  or  even



10   making a  statement,  but it is not intended to  be that way.



11   I  am asking a question.



12             You  indicated  that if we go  below 83  dB(A)  that



13   the American  after-market system would  be put  out of business



14   but that  the  Japanese after-market system could  meet the



15   demand, they  could make a quiet muffler,  and I can understand



16   the argument with  the motorcycle manufacturers where they



17   have a great  amount of  investment in certain types of



18   equipment and tools not "  being  able to  make that change, but



19   I  don't understand why  the American after-market system



20   couldn't  react  equally  well to  a standard as the Japanese,



21   or the Italians, or the English.



22             MR.  COLLINS:   The  American after-market,  probably



23   our biggest sales  potential,  is styling.   We make a lighter,



24   cheaper,  better looking,  better styled  exhaust system.  In



25   some cases, it's louder,  almost in all  cases,  almost.   It's



26   not objectionably  loud.   As I said before,  the Japanese have
        (213) 437-1327      MACAULEY & MANNING. SANTA ANA. CALIF.     (714) 558-9400

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                                                             294
 1   the  technical  expertise.   They make a muffler that probably



 2   weighs  twenty  pounds,  which is what my whole system weighs.



 3              The thing is  very,  very restrictive,  and



 4   motorcycle  peope are performance people by virtue of their



 5   choice  of a motorcycle in the  first place.



 g       •       I just do not think that the American after-



 7   market  right now could really  get much below 83. As Jim



 8   said before me,  to meet 83,  we've been testing at 80,



 9   and  I just  think we are being  extremely restricted, and we



10   will be subjected,  as Jim said,  to heat problems, cnrome



11   problems, which would have the cost of our system, mine is



12   one  hundred and forty-nine to  one hundred and fifty-nine,



13   and  it  would go to two-nineteen, two-twenty-nine, which is



14   competitive with the stock systems.



15              MR.  KOZLOWSKI:  I see.  So, what you are saying



16   is that you would be less competitive with the stock system



17   because of  the price increase?



18              MR.  COLLINS:   We wouldn't be competitive at all.



19              MR.  KOZLOWSKI:  That is the same statement that



20   was  made by the previous speaker.  Okay.  It's not that



21   we couldn't do it technically.  If you people had to design



22   an 80 or 78 decibel muffler, if someone else could do it,



23   you  could do it.



24              MR.  COLLINS:   Of course.



25              MR.  KOZLOWSKI:  Okay.



26              MR.  COLLINS:   But just like the calculators and
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                                                             295
 1   the  stereos  ...



 2             MR. KOZLOWSKI:   I  understand.   Okay,  once again,



 3   I would  like  to  ask you to  do the same type of thinking.



 4   Our  regulations,  the enforcement regulations,  for the after-



 5   market,  are not  intended to be overly burdensome.  If you



 6   see  any  particular  thing in there which you think with



 7   modifications  are acceptable,  but as  they are,  are too



 8   costly,  please tell us  what recommendations you might have.



 9             MR. COLLINS:   Certainly.



10             MR. KOZLOWSKI:   Thank you.



11             MR. PETROLATI:   Yes,  just  to follow Mr. Kozlowski'



12   question a little further,  do you have any suggestions,



13   like the previous speaker,  on some sort of simplified testing



14   scheme?   In other words,  representative testing.  Anything



15   along those lines?



16             MR. COLLINS:   I  have to support the MIC twenty-



17   inch test, for the  same reasons  that  Jim did.   I didn't go



18   into that because I think that every  after-market manufacture^-



19   that's been here today  explained clearly the problem with



20   liability, wormens  compensation, obtaining sites.



21             I  haven't read a whole bunch about EPA's ten-



22   foot test.  The  ignition cut  off is a problem,  especially



23   on many  of the higher performance motorcycles that are on



24   the  market today, and may of  the after-market -- we handle



25   everything, pistons, cam shafts, ignition systems, and some



26   of the ignition  systems that  we handle I almost defy to
        (213) 437-1327
MACAULEY & MANNING, SANTA ANA. CALIF.
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                                                             296
 1   work  with the emission cut off.



 2              If we could run four thousand, or half of rated



 3   RPM,  at ten feet,  I would think that would be a very, very



 4   good  test,  probably producing good correlation, because



 5   twenty-inches is a little close to the engine.



 6              Working with -- and I'm on the MIC Techical



 7   Committee --  the test that I was involved with two years



 8   ago,  we were  testing one of my after-market systems, and



 9   it  produced almost as much noise -- my system comes out of



10   the right rear of the motorcycle by going around the



11   motorcycle,  on  the left front, the farthest point away from



12   the exhaust outlet, we had almost the same amount of noise



13   from  the engine,  and I think in a ten-foot test,  we might



14   lose  a little of the engine vibration, or just a little of



15   the engine noise,  mechanical noise, per se,  and we would get



16   a more accurate account of the exhaust note.



17              MR.  PETROLATI:   Okay.  Fair enough.  Thank you



18   very  much,  Mr.  Collins.



19              MR.  EDWARDS:   Mr. Collins, you made a very



20   eloquent statement, and I appreciate your sharing your



21   thoughts with us.   I wouldn't ask you any technical questions



22   right now.   I think it was eloquent enough that I don't want



23   to  sully it.



24              MR.  COLLINS:   Thank you.



25              CHAIRMAN THOMAS:   Mr. Collins, I  agree.   I think



26   others,  as  you said here,  and perhaps as Mr. Grogan said,
        (213) 437-1327
                     MACAULEY 8t MANNING. SANTA ANA. CALIF.
(714) 558-9400

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                                                             297
 1   I  think your  industry,  the  after-market industry,  needs to
 2   pay very  close  attention to these regulations.   I  think we
 3   need  to hear  from them,  and I am frankly delighted that we
 4   have  heard  from as many  representatives of your industry
 5   as we have  had  in these  three days of hearings  here.  It is
 6   more  than I had expected to hear.
 7              I  should also tell you and your colleagues, and
 8   I hope you  will carry this  message back to them,  it's late
 9   in the day, when you talk to them, that I think you all
10   have  very ably  represented  your industry.
11              It's very important, sometimes, that the folks
12   who have  got  to do the regulating, or the law passing, or
13   whatever  it is, be able  to  talk and see, face-to-face, the
14   people that are going to be impacted by these rules, and I
15   would suggest that all of the data, and reports and studies,
16   that  we get in  Washington,  and can read, do not weigh nearly
17   as importantly, in many  cases,  as being able to hear the
18   kinds of  things you've said here,  and to be able to discuss
19   these things,  and I would urge you to talk again with your
20   colleagues  in the coming days and weeks that if they have
21   the opportunity,  or that they should make the opportunity,
22   to meet and talk with us, and I hope that you have seen it
23   at any rate,  I  hope you have a feeling that we are receptive.
24   that  we are listening, that we don't have our minds made up.
25   we don't  know what the answers are, and so it's up to you
26   all  to help educate us too  so that we do come up,  hopefully,
        (213) 437-1327
                     MACAUL.EY & MANNING. SANTA ANA. CALIF.
553-9400

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with regulations  that  are,  as you have said, equitable  to
all parties.  That  is  what  we are striving for.
           Thank  you very much for your presentation here
tonight.
           MR. COLLINS:   Thank you for being here.
           CHAIRMAN THOMAS:   That completes all of  the
scheduled presentations  that we have.  Let me ask now if
there is anybody  in the  audience who would care to  make
a presentation, or  further  comment,  at this time?   (No
response to the call.)
           Going  once, going twice,  closed.  This hearing
stands adjourned.   We  will  reconvene on Friday of this  week
in Tampa, Florida.

                  (WHEREUPON,  THE HEARING WERE
           TERMINATED  AT 6:55 O'CLOCK, P.M.)
        (213) 437-1327
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                                                                    299
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                     CERTIFICATION
            I HEREBY CERTIFY that the foregoing  pages, numbered
from  1  through  298, represent a  true and accurate transcription
of my stenographic notes  taken at the EPA hearing on May 1,
1978..
            DATED this  8th day of June, a.d. 1978.
                                          \ » \
                                                             {  0
                                     ARTHUR  SPRING,  Reporte
                                             OFFICIAL SEAL
                                             ARTHUR SPRING
                                          NOTARY PUBLIC - CALIFORNIA
                                              PIVE^SlDc COUNTY     \
                                           My ccmn. rpi'cs AV3 2'3, !"'••  -j
         (213) 437-1327
                        MACAULEY fit MANNING. SANTA ANA. CALIF.
                                                      (714) 558-9400

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