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The Environmental Protection Agency (EPA) has published new emissions standards for snowmobiles, Federal Register 40 CFR, “Control of Emissions from Non-road Large Spark Ignition Engines and Recreational Engines (Marine and Land Based)”; Final Rule, Volume 67., No.217, November 8, 2002. These rules require a phase in of lower snowmobile emissions over the period of 2006 to 2012. In addition, the International Snowmobile Manufacturers' Association (ISMA) is developing new pass-by noise standards to replace the current wide-open throttle noise standard SAE J - 192 and J 1161. These new requirements set the stage for improvements in snowmobiles and form the basis for the Society of Automotive Engineers (SAE) Clean Snowmobile Challenge (CSC). SAE and Michigan Technological University (MTU) worked together, along with many other volunteers, to continue the SAE CSC, moving it from its original venue in Wyoming to Michigan.

The Society of Automotive Engineers' (SAE) Clean Snowmobile Challenge 2004 (CSC 2004) was held at Michigan Technological University in Houghton, Michigan, from March 15 - 20, 2004. The Clean Snowmobile Challenge has been a competition in the SAE Collegiate Design Series since 2000, and began in Jackson Hole, Wyoming, as a response to rising concerns about snowmobiling in environmentally-sensitive areas. Teams from fifteen universities competed in CSC 2004. The winning snowmobile (sled) was developed by the University of Wisconsin, Madison, and featured a four-stroke engine with electronic fuel injection (EFI), a two-stage tuned muffler, and catalytic exhaust aftertreatment. A hybrid-electric design was used to increase the snowmobile's powertrain output and improve acceleration. [8] Teams should be competitive in all events to gain enough points to win the competition.