The changes came to the "muscle" engines. Output of the LT-1 350-cubic-inch V8 used in the Z/28 fell from 360 to 330 horsepower due to a compression ratio decline to 9.0:1 from 11.0:1. Likewise, the big block 396-cubic-inch V8 fell from 350 to 300 horsepower due to a compression ratio drop to 8.5:1 from 10.25:1. At the time, these changes weren't as unpopular as you might think. There were two factors at play. One, the U.S. was heading toward a fuel crunch, and increasing fuel prices were already shrinking the muscle car market. Two, insurance rates for pony cars were skyrocketing. In terms of insurance, the 250 and the 307 were far more affordable than the 396.
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