BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2683
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          ASSEMBLY THIRD READING
          AB 2683 (Lieber)
          As Amended May 20, 2004
          Majority vote 

           TRANSPORTATION      8-4         APPROPRIATIONS      14-6        
           
           ----------------------------------------------------------------- 
          |Ayes:|Oropeza, Chan, Kehoe,     |Ayes:|Chu, Berg, Corbett,       |
          |     |Liu, Longville, Pavley,   |     |Firebaugh, Goldberg,      |
          |     |Salinas, Simitian         |     |Leno, Nation,             |
          |     |                          |     |Negrete McLeod, Oropeza,  |
          |     |                          |     |Pavley,                   |
          |     |                          |     |Ridley-Thomas, Wesson,    |
          |     |                          |     |Wiggins, Yee              |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Houston, La Suer,         |Nays:|Runner, Bates, Correa,    |
          |     |Mountjoy, Parra           |     |Daucher, Haynes, Keene    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Repeals the "30-year rolling exemption" that applies  
          to the Smog Check and Smog Check II programs.  Specifically,  
           this bill  :  

          1)Declares the intent of the Legislature that vehicles of the  
            1975 model year and older shall be permanently exempted from  
            smog check requirements and that the Departments of Motor  
            Vehicles (DMV) and Consumer Affairs be afforded adequate time  
            to implement this bill's requirements.  

          2)Repeals the exemption for vehicles 30 years old or older from  
            vehicle maintenance and inspection programs, effective April  
            1, 2005.  

          3)Provides an exemption from those programs for vehicles that  
            were manufactured prior to the 1976 model year, effective  
            April 1, 2005.  

          4)Makes corresponding changes to provisions regarding the need  
            to obtain smog certificates of compliance.  

           EXISTING LAW  :  









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          1)Requires vehicles registered in areas which are classified by  
            the Environmental Protection Agency as serious, severe, or  
            extreme nonattainment areas for ozone or moderate or serious  
            nonattainment areas for carbon monoxide (i.e., the Sacramento  
            metropolitan area; San Diego; San Joaquin Valley; South Coast;  
            Southeast Desert and Ventura) to undergo "enhanced" biennial  
            inspections of their emission control equipment and systems.   
            These inspections feature "loaded-mode" dynamometer testing  
            and more sophisticated emissions analysis equipment that can  
            measure emissions of oxides of nitrogen (NOx).  Additionally,  
            the program requires certain vehicles to be inspected at  
            "test-only" inspection stations.  

          2)Requires, additionally, the establishment of the enhanced smog  
            check program in the urbanized areas of the San Francisco Bay  
            Air Basin, including the test-only station component of the  
            inspection program for designated vehicles.  

          3)Requires vehicles registered in other nonattainment basins to  
            undergo "basic" biennial inspections of their emission control  
            equipment and systems that are performed with the engine  
            operating in the idle mode only.  There is no provision within  
            the basic program for test-only inspections.  

          4)Requires vehicles registered in all other areas of the state  
            to undergo the basic emissions test only upon change of  
            ownership.  

          5)Prohibits the implementation of the test-only element of the  
            enhanced program in any area not classified as a serious,  
            severe, or extreme nonattainment area for ozone or a moderate  
            or serious nonattainment area for carbon monoxide.  

          6)Exempts from all smog check programs any vehicles that are 30  
            or more model years old.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis, costs of $200,000 in fiscal year (FY)  
          2004-05 to DMV to modify its vehicle registration notification  
          process to adequately notify owners of 1976 model year vehicles  
          that their vehicles are still subject to smog check  
          requirements.  Moderate ongoing and increasing costs to the  
          Bureau of Automotive Repair (BAR) to continue to regulate 1976  
          and later model year vehicles over the next several years.   
          These costs will be offset by revenue generated by fees imposed  








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          on vehicle owners when they get their vehicles certified at a  
          smog check facility.  

           COMMENTS  :  Under existing law, the smog check program  
          essentially divides the state into three areas with different  
          emissions testing requirements for each.  The enhanced program  
          (commonly referred to as Smog Check II) applies to areas that do  
          not meet federal or state air quality standards for ozone and  
          carbon monoxide and are the most polluted urbanized areas.   
          Vehicles in these areas are required to undergo biennial smog  
          checks and 15% of them must have their smog checks performed at  
          test-only stations.  The basic program is administered in areas  
          that are less polluted.  Vehicles in these areas must have  
          biennial testing at licensed test-and-repair stations.   
          Change-of-ownership areas are the more rural regions of that  
          state that require emissions testing only when a vehicle changes  
          ownership or is registered for the first time in California.  

          Prior to 1998, vehicles that were from the model year 1973 or  
          earlier were exempt from all elements of Smog Check and Smog  
          Check II.  Subsequently, SB 42 (Kopp), Chapter 801, Statutes of  
          1997, established the so-called 30-year rolling exemption,  
          allowing vehicles to "graduate" from the program once they reach  
          30 years of age.  It was argued at the time that it was  
          difficult for aging cars to pass smog tests because original  
          parts were difficult to locate, new testing procedures were  
          arbitrary and made it difficult for older vehicles to pass, and  
          testing cutpoints had been set at levels more stringent than  
          original manufacturer's specifications and were therefore  
          impossible for older vehicles to meet.  This bill was supported  
          by, among others, classic car collectors and advocates for  
          low-income motorists who could neither afford to keep their  
          older vehicles well maintained nor to replace them with newer,  
          cleaner, models.  

          This bill would repeal the 30-year rolling exemption and instead  
          apply the smog check exemption strictly to vehicles manufactured  
          prior to the 1976 model year.  Supporters of this bill point out  
          that 1976 model-year cars, on average, emit 155 times more  
          hydrocarbons per mile than new vehicles and, despite their very  
          much smaller share of the vehicle population, continue to emit  
          two to three times the volume of pollutants in aggregate.  By  
          2010, pre-1982 cars (those that would be exempt from smog check  
          at that time under current law) will account for 22% of the  
          hydrocarbons and 11% of the NOx emissions despite representing  








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          only 2.6% of the vehicle population and 1.3% of the vehicle  
          miles traveled.  Supporters also note that once a vehicle is  
          exempt from smog check there is no incentive for its owner to  
          continue to maintain its emission control equipment nor is there  
          any mechanism to assure that such equipment has not been  
          modified or removed.  

          While opponents agree that a small number of vehicles account  
          for a lion's share of vehicular emissions, they contend,  
          contrary to the data cited above, that the offending vehicles  
          are distributed among all model years.  They further claim that  
          the vehicle population targeted by the bill tends to be well  
          maintained and infrequently driven.  Finally, they believe they  
          are being scapegoated for the failure of California to meet its  
          air quality goals and assert, "California must lead the way in  
          attacking motor vehicle pollution where it lives and not on the  
          backs of old car collectors and lower-income citizens."  

          In regard to low-income owners of older vehicles, it should be  
          noted that the BAR administers a Consumer Assistance Program  
          (CAP) that offers financial assistance for smog check-related  
          repairs.  CAP provides up to $500 to assist a vehicle owner  
          whose household income is up to 185% of the federal poverty  
          standard to meet smog check requirements.  

          This bill includes a three-month delayed implementation date to  
          afford DMV adequate time to advise owners of vehicles from the  
          1976 model-year of the new requirements. 


           Analysis Prepared by  :    Howard Posner / TRANS. / (916) 319-2093



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