Due in part to stringent noise and air pollution control measures recently imposed by the US National Park Service, the Society of Automotive Engineers (SAE) has instituted a student competition called the Clean Snowmobile Challenge. The competition is designed to encourage the development of a snowmobile that will meet or exceed specific required pollution and noise control measures. The objective of this project is to produce a snowmobile that will meet the criteria for the 2002 competition. The snowmobile will be a modified stock chassis with a drive train designed to minimize power transmission losses. The power plant for the University of Idaho in 2002 is to be a small Wankel-type rotary engine chosen for its high power to weight ratio and efficiency coupled with a low production of harmful exhaust gases. Around half of the required funding will come from the state of Idaho and industrial sponsors. It is expected that the project will be extended an additional year in order to investigate the development of a hybrid electric snowmobile.