Washington, DC – The National Economic Research Associates, Inc. (NERA) and Air Improvement Resource Inc. (CAIR) have submitted a comprehensive economic study to the California Air Resources Board (CARB).

The NERA study concludes that exhaust and emission regulations proposed by CARB on Aug. 8 would increase the average compliance costs for lawn mowers by $106 and the average compliance costs for riding mowers by $321. According to the NERA study, the relatively more cost-effective and more practical counterproposal submitted by the Outdoor Power Equipment Institute would still raise average compliance costs by $73 for walk-behind mowers and by $189 for riding mowers.

“The NERA study confirms our worst fears,” stated Bill Harley, president of OPEI. “Even if the CARB Board ultimately adopts the relatively less problematic industry counterproposal, it will be a hollow victory."
 
OPEI manufacturers will still be hit with an unprecedented jump in retooling and manufacturing costs. Other states may “opt into” the final California program. Consequently, OPEI manufacturers could ultimately have to produce for the entire national market much more expensive lawn and garden products that comply with the final CARB regulations. Increased regulatory compliance costs may accelerate the further loss of U.S. jobs to cheaper foreign markets.

The major U.S. manufacturer of small engines, Briggs & Stratton, has indicated that increased costs of the new CARB regulations will put more pressure on them to shift manufacturing operations and jobs abroad.