BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1239|
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                                   THIRD READING 


          Bill No:  SB 1239
          Author:   Gaines (R), et al.
          Amended:  5/31/16  
          Vote:     21 

           SENATE TRANS. & HOUSING COMMITTEE:  6-5, 4/19/16
           AYES:  Cannella, Bates, Gaines, Galgiani, Roth, Wieckowski
           NOES:  Beall, Allen, Leyva, McGuire, Mendoza

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/27/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SENATE FLOOR:  18-18, 6/1/16 (FAIL)
           AYES:  Anderson, Bates, Berryhill, Cannella, Fuller, Gaines,  
            Galgiani, Hueso, Huff, Liu, Mendoza, Moorlach, Morrell,  
            Nguyen, Nielsen, Roth, Stone, Vidak
           NOES:  Allen, Beall, Block, De León, Glazer, Hall, Hancock,  
            Hill, Jackson, Lara, Leno, Leyva, McGuire, Mitchell, Monning,  
            Pan, Pavley, Wieckowski
           NO VOTE RECORDED:  Hernandez, Hertzberg, Runner, Wolk

           SUBJECT:   Smog check:  exemptions


          SOURCE:    Association of Car Clubs


          DIGEST:  This bill expands the existing smog check exemption  
          from pre-1976 model year vehicles to pre-1981 model year  
          vehicles.


          ANALYSIS:   Existing federal law provides that the federal Clean  








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          Air Act and its implementing regulations are intended to protect  
          public health and environmental quality by limiting and reducing  
          pollution from various sources.  Under the federal Clean Air  
          Act, US EPA establishes National Ambient Air Quality Standards  
          that apply for outdoor air throughout the country.  These  
          federal standards exist for several air pollutants due to their  
          negative impact on public health above specified concentrations.  
           Regions that do not meet the national standards for any one of  
          the standards are designated nonattainment areas.  

          Existing state and federal law requires nonattainment regions of  
          California to meet existing clean-air standards by 2015 for  
          annual particulate matter (PM) 2.5, and by 2023 for the 8-hour  
          average ozone standard.  The South Coast and San Joaquin air  
          basins recently missed the 2015 attainment deadline for the last  
          PM 2.5 standard. Additionally, tougher federal air quality  
          standards for both particulates and ozone issued in 2006 and  
          2008 will require reductions in those regions well above and  
          beyond those already planned.  

          Existing state law:

          1)Establishes the Motor Vehicle Inspection Program, commonly  
            known as the smog check program, to help meet federal air  
            quality standards,.  The Department of Consumer Affairs  
            administers this program through the Bureau of Automotive  
            Repair (BAR).  The smog check program generally requires  
            vehicle owners to have their vehicles tested every two years,  
            with some exceptions including gas-powered vehicles  
            manufactured prior to 1976, alternatively fueled vehicles, and  
            vehicles six model years (MYs) old or newer.  

          2)Defines a "collector motor vehicle" as a motor vehicle owned  
            by a collector that is used primarily in shows, parades,  
            charitable functions, and historical exhibitions for display,  
            maintenance, and preservation, and is not used primarily for  
            transportation. 

          3)Provides a partial smog check exemption for some collector  
            vehicles.  Specifically, if the vehicle is at least 35 years  
            old, and the owner can demonstrate that the vehicle is insured  
            as a collector vehicle, then the vehicle is exempt from the  
            visual and functional inspection of emission controls.   
            However, the vehicle must still pass a functional inspection  







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            of the fuel cap, a visual inspection for liquid fuel leaks,  
            and a tailpipe test.  

          This bill:

          1)Exempts all motor vehicles manufactured after MY 1975 but  
            prior to MY 1981 from smog check, provided the vehicle  
            qualifies as a collector car under existing law.

          2)Sunsets this exemption on January 1, 2019.

          Comments

          1)Purpose. The author states that existing law is "inconsistent"  
            because it requires vehicles to be at least 35 MYs old in  
            order to qualify for a smog check exemption, yet also mandates  
            that a vehicle's MY must be older than 1976.  This bill  
            changes the date to 1981 "in order to maintain the 35-year  
            exemption."  The sponsor of this bill, the Association of Car  
            Clubs, states that older cars "are normally insured with  
            collector insurance and have mileage restrictions dictated by  
            the insurance company and have little or no negative impact on  
            the environment."  

          2)Pre-1976 exemption vs. collector car exemption. Existing law  
            includes two separate types of smog check exemptions relating  
            to older cars.  First, collector cars are exempted from some  
            portions of smog check, provided they meet certain criteria:  
            the owner must be able to demonstrate that the vehicle is  
            insured as a collector vehicle; the vehicle must be at least  
            35 years old (e.g., MY 1981); the vehicle must comply with  
            exhaust emissions standards for that vehicle's class and MY;  
            and the vehicle must pass a functional inspection of the fuel  
            cap and a visual inspection for liquid fuel leaks.  A  
            collector vehicle meeting these requirements is exempt from  
            the visual or functional check of emission control devices,  
            including the catalytic converter, but must undergo the other  
            portions of the smog test.  The visual check is important  
            because it is generally much easier to tamper with older  
            vehicles' emissions controls - e.g., to increase engine  
            performance - because older systems are much less  
            sophisticated.  For example, a vehicle owner can install a  
            diverter hose to bypass parts of the system; while the owner  
            can connect the hose properly in order to pass the smog test,  







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            a visual check is likely to detect this adjustment.

            Existing law provides a separate exemption for vehicles older  
            than MY 1976.  These vehicles are exempt from the smog check  
            program altogether.  

            This bill expands the pre-MY 1976 exemption to all MY 1976-81  
            collector vehicles.  By doing so, this bill makes all MY  
            1976-81 collector cars - which are currently subject to  
            partial smog check - fully exempt.  The sponsor of this bill  
            states, "Requiring a costly smog inspection only adds to the  
            already high cost of owning and maintaining such a vehicle and  
            we feel that it's purely a revenue collecting regulation."   
            California established the smog check program, however, in  
            order to help meet federal air- quality standards.  

          3)Older vehicles have much higher GHG emissions.  According to  
            the state Air Resources Board (ARB), transportation accounts  
            for approximately 40% of the state's total GHG emissions.  Of  
            the cars on California's roads, just 25% of vehicles account  
            for 75% of vehicle emissions.  This is partly because the smog  
            check program does not hold older cars to the same emissions  
            standards as newer cars.  Not only are emissions standards for  
            older cars less stringent, but allowances are also made for  
            normal wear and tear in a vehicle's emissions control system  
            as it ages.  Thus, even if an older vehicle passes a smog  
            test, it is still higher emitting than a newer vehicle.  

            Notwithstanding the lower emissions standards, BAR data  
            indicate that in 2015, an average of 30% of MY 1976-1981  
            vehicles failed a smog test.  Exempting these vehicles from  
            smog check would allow thousands of vehicles that do not meet  
            state emissions standards to continue driving on California's  
            roads.  This exemption will make it more difficult for the  
            state to achieve state air-quality goals and to meet federally  
            mandated air-quality standards.

          4)Background on smog check exemptions.  Prior to 1998, vehicles  
            MY 1973 and earlier were exempt from smog check.   
            Subsequently, SB 42 (Kopp, Chapter 801, Statutes of 1997)  
            established the "30-year rolling exemption," allowing vehicles  
            to "graduate" from smog check once they reached 30 years of  
            age.  The Department of Consumer Affairs opposed SB 42,  
            stating that while the initial number of vehicles exempted by  







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            the bill was modest, that number was responsible for a  
            significant share of the smog test failure rate of the entire  
            fleet.  ARB also opposed the bill, arguing that it would make  
            it even more difficult to attain federal air-quality standards  
            in areas such as the South Coast Air Quality Management  
            District.  In 2004, the Legislature passed and the Governor  
            signed AB 2683 (Lieber, Chapter 704, Statutes of 2004).  AB  
            2683 repealed the 30-year rolling exemption and instead  
            applied the smog check exemption strictly to vehicles  
            manufactured prior to MY 1976.  

          5)Opposition concerns.  Writing in opposition to this bill, the  
            Bay Area Air Quality Management District states that since  
            2004, when AB 2683 was passed, "a host of medical research has  
            shown that levels of air pollution breathed by Californians  
            today is in fact far more damaging to public health than was  
            earlier suspected."  The Coalition for Clean Air notes that  
            "the smog check program ? allows for deterioration of the  
            vehicle's emission controls over time.  To pass smog check,  
            owners of older vehicles simply need to maintain their  
            vehicles."  The California Air Pollution Control Officers  
            Association states that the smog check program "is essential  
            for clean air and public health" and "is an equitable and  
            cost-effective way to cut air pollution."  

          6)State assistance is available.  The state provides assistance  
            to owners of high-polluting cars through several programs.   
            The Consumer Assistance Program, administered by BAR,  
            provides, for eligible customers, an opportunity to renew  
            registration even if the car does not pass a smog test,  
            provided the owner has spent a certain amount on repair;  
            repair cost assistance; or a voucher in return for "retiring"  
            (scrapping) the vehicle.  BAR also administers, in conjunction  
            with the ARB, the Enhanced Fleet Modernization Program (EFMP),  
            which provides funds for voluntary retirement of eligible  
            passenger vehicles and light- and medium-duty trucks that are  
            high polluters.  A component of this program, EFMP Plus-Up,  
            provides additional assistance to eligible customers in the  
            San Joaquin Air Pollution Control District and the South Coast  
            Air Quality Management District.  

          Related/Prior Legislation
          
          AB 550 (Waldron, 2015) would have allowed the owner of a vehicle  







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          that failed a smog test to pay a smog abatement fee of $200.   
          The bill died in the Assembly Transportation Committee.

          SB 1224 (La Malfa, 2012) would have expanded the smog check  
          exemption to pre-1981 MY vehicles.  The bill died in the Senate  
          Transportation and Housing Committee.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:

           Unknown costs to BAR to modify information technology systems.  
             These costs would likely to be incurred a second time when  
            the exemption expires in 2019.  (Vehicle Inspection and Repair  
            Fund)

           Unknown loss of smog certification revenues, potentially in  
            excess of $150,000 for two years, depending on the number of  
            vehicles insured as collector cars. (Vehicle Inspection and  
            Repair Fund)   

           Minor and absorbable BAR costs to update smog check  
            regulations and publications. (Vehicle Inspection and Repair  
            Fund)

           Likely minor costs to the Department of Motor Vehicles to  
            review evidence that a vehicle is insured as a collector in  
            order to waive the smog check requirement. (Motor Vehicle  
            Account)


          SUPPORT:   (Verified5/27/16)


          Association of Car Clubs (source)
          Petersen Automotive Museum
          Pontiacs of Bakersfield
          Rods and Relics of Lincoln Hills
          Specialty Equipment Market Association
          900+ individuals









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          OPPOSITION:   (Verified5/27/16)


          American Lung Association of California 
          Bay Area Air Quality Management District
          California Air Pollution Control Officers Association
          Coalition for Clean Air
          Natural Resources Defense Council
          Sierra Club California 

           
          Prepared by:Erin Riches / T. & H. / (916) 651-4121
          6/1/16 18:32:44


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