BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION COMMITTEE         BILL NO:  AB 2683
          SENATOR KEVIN MURRAY, CHAIRMAN         AUTHOR:   lieber
                                                 VERSION:  5/20/04
          Analysis by: Steve Schnaidt            FISCAL:   yes






          SUBJECT:

          Smog check:  rolling 30-year exemption.

          DESCRIPTION:

          This bill would repeal provisions that grant an exemption  
          from the smog check program for vehicles more than 30 model  
          years old.

          ANALYSIS:

          Existing law 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 (smog check).   
          These inspections feature "loaded-mode" dynamometer  
          (treadmill) testing and more sophisticated emissions  
          analysis equipment that can measure emissions of oxides of  
          nitrogen (NOx).  Additionally, the program requires certain  
          vehicles with a likelihood to be high-emitters to be  
          inspected at "test-only" inspection stations.

          Existing law also requires 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.

          The law requires vehicles registered in other nonattainment  
          basins to undergo "basic" biennial inspections of their  
          emission control equipment and systems that are performed  




          AB 2683 (LIEBER)                                           
          Page 2

                                                                       
           
          with the engine operating in the idle mode only.  There is  
          no provision within the basic program for test-only  
          inspections.  In addition, the law requires vehicles  
          registered in all other areas of the state to undergo the  
          basic emissions test only upon change of ownership.

          Existing law exempts from the smog check certain vehicles,  
          including large commercial vehicles, diesel-powered  
          vehicles, motorcycles, and vehicles four or less model  
          years old.  Existing law up to January 1, 2003 exempted any  
          vehicle manufactured prior to the 1974 model year.   
          Beginning January 1, 2003, the law exempts from all smog  
          check programs those vehicles that are 30 or more model  
          years old (rolling 30-year exemption).

           This bill   would repeal the rolling 30-year exemption from  
          the smog check program.  Specifically, the bill:

          1.Declares the Legislature's intent that vehicles of the  
             1975 model year and older  (1974, 1973, etc.) shall be  
            permanently exempted from smog check requirements and to  
            ensure that the Departments of Motor Vehicles (DMV) and  
            Consumer Affairs be afforded adequate time to implement  
            the 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.Continues the exemption from smog check program  
            provisions for vehicles that were manufactured prior to  
            the 1976 model year (1975 model year and older),  
            effective April 1, 2005.

          4.Makes corresponding changes to related provisions.
          
          COMMENTS:

          1.Before 1998, vehicles manufactured prior to the 1966  
            model year were exempt from all elements of Smog Check  
            and Smog Check II.  SB 42 (Kopp, 1997) extended the  
            exemption to all vehicles manufactured prior to the 1974  
            model year and, beginning in 2003, established the  
            so-called 30-year rolling exemption, allowing vehicles to  
            leave the program upon reaching 30 years of age.  The  
            rationale for the bill included arguments that it was  




          AB 2683 (LIEBER)                                           
          Page 3

                                                                       
           
            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 cut points had been set at  
            levels more stringent than original manufacturer's  
            specifications and therefore were difficult or sometimes  
            impossible for older vehicles to meet.  It also was  
            argued that these older vehicle were driven far fewer  
            miles than average and that many vehicles were of special  
            significance and were maintained in superior condition by  
            their owners.

          2.The author and sponsors of the current bill state that  
            more than 90% of California residents live in  
            nonattainment areas for state or federal air quality  
            standards and that air pollution threatens public health  
            and contributes to many ailments.  Mobile source  
            emissions -from motor vehicles- are cited as the primary  
            source of our air quality problems, while the smog check  
            program is described as equitable and cost-effective in  
            addressing air quality problems and reducing emissions.

            Proponents contend that while older vehicles comprise a  
            small percentage of the California vehicle fleet, they  
            produce a disproportionately large amount of total  
            vehicular emissions.  For example, the average 2004  
            vehicle is said to be driven 58 times more miles than the  
            average 1976 vehicle, and there are 24 times more 2004  
            vehicles.  Still, emissions from the 1976 vehicles are  
            2.5 times more than those from the 2004 vehicles.  This  
            inverse relationship, among other things, is cited in  
            support of the proposed repeal of the 30-year exemption  
            for older vehicles.

            Proponents argue that elimination of the rolling  
            exemption will eliminate 6 tons/day of ozone precursors  
            by 2010 and twice that amount by 2015.  They note that no  
            currently exempted vehicles would be made subject to the  
            smog check program; rather, vehicles that otherwise would  
            become exempt each year upon reaching the 30-year mark  
            would permanently remain in the smog check program.

          3.Opponents of the bill cite numerous arguments against it,  
            including that the computer models used to calculate  
            emissions reductions from the elimination of the rolling  
            exemption are flawed and rely on faulty assumptions.   




          AB 2683 (LIEBER)                                           
          Page 4

                                                                       
           
            They contend that 30-year-old vehicles, which comprise  
            less than 4% of the fleet, do not average the 5,100  
            annual miles attributed to them, that the attrition rate  
            for the older vehicles is very high, reducing their  
            number and impact significantly each year, and that those  
            that remain on the road tend to be relatively clean and  
            well-maintained.

            Opponents assert that numerous studies show that the  
            dirtiest 10-20% of vehicles, in any category, are  
            responsible for 90% of the emissions from that category.   
            The job, then, is to identify those vehicles, through  
            remote sensing or otherwise, and repair or remove them  
            from operation.  They also contend that "cut points"  
            (emissions failure points) have discriminated against  
            older vehicles by being set at disproportionately  
            stringent levels, thus raising the failure rates for  
            older vehicles and providing a basis to repeal the  
            existing exemption.

            Those opposing the bill argue that it would expand the  
            smog check program each year as the vehicle fleet grows,  
            could create a growing number of fugitive vehicles, and  
            could actually prove to be counterproductive by limiting  
            the ability of vehicle owners to install newer, cleaner  
            technologies because they would risk failing the visual  
            and functional smog check requirements.

          4.The smog check program, despite past achievements,  
            evolutionary improvements, and continuing developments,  
            has not achieved the emissions reductions projected for  
            it.  It falls considerably short of the daily tons of  
            emissions it was expected and promised to achieve.   
            Eliminating the rolling 30-year exemption, even if it  
            does result ultimately in 6 fewer tons/day* in emissions,  
            will not significantly make up the shortfall in the smog  
            check program's promised emissions reductions.   
            (*Sponsors estimate that the bill would reduce 0.6 tons  
            the first year, 1.7 tons the second year, etc., up to 6  
            tons in 2010.)

          5.SB 42's exemption for 30-year-old and older vehicles  
            reflects an agreement reached in 1997 on the scope of the  
            smog check program.  Originally, the legislation sought a  
            25-year rolling exemption, with the final compromise  
            being the current 30-year exemption.  Proponents of the  




          AB 2683 (LIEBER)                                           
          Page 5

                                                                       
           
            bill argue that persistent air quality problems in the  
            state and the diminishing number of other sources of  
            reduced emissions at a reasonable cost have changed the  
            emissions landscape and created a need to revisit and  
            repeal the current exemption agreement.

           6.Issues, questions, and alternatives  .

             a)   Would the 1975 and older exemption be permanent?   
               The bill declares the intent that 1975 model year and  
               older vehicles would be permanently exempt from smog  
               check.  What assurance is there that this reduced and  
               reconfigured exemption will not be eliminated at some  
               future date in the manner that the current bill  
               proposes to repeal the agreement and assurances made  
               on the rolling 30-year exemption in 1997?

             b)   Are there alternatives to a repeal, partial or  
               otherwise?  

                (1)            Some persons have suggested that the  
                  exemption should remain in place for "collector" or  
                  similar special interest vehicles, tied to  
                  requirements including the registration of such  
                  vehicles as collector vehicles, limiting their  
                  operation (and related emissions) to 3,500  
                  miles/year, and insuring them as collector  
                  vehicles, thereby identifying and separating those  
                  vehicles more likely to be maintained and operated  
                  in a manner less intrusive to air quality.

                (2)            The Administration and others have  
                  proposed, and the Legislature is considering,  
                  substantially increasing funding for the Carl Moyer  
                  air quality program (reducing emissions from heavy  
                  duty vehicles) by  extending the exemption  for newer  
                  vehicles from 4 years to 6 years, doubling (to $12)  
                  the annual smog abatement fee for those exempted  
                  vehicles and using the proceeds to replace or  
                  retrofit heavy duty trucks, their engines, or fuel.

                  Could a similar alternative be developed for the  
                  older passenger vehicles?  Would the payment of an  
                  annual smog check exemption fee for older vehicles,  
                  with revenues to be used in the Carl Moyer program  
                  to reduce heavy duty vehicle emissions, result in  




          AB 2683 (LIEBER)                                           
          Page 6

                                                                       
           
                  greater air quality benefits than ending the  
                  rolling 30-year exemption?
          
          Assembly Votes:
               Floor:    47-28
               Appr: 14-6
               Trans:    8-4

          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday,
                     June 23, 2004)

               SUPPORT:  Bay Area Air Quality Management District  
          (co-sponsor)
                         California Council for Environmental and  
                         Economic Balance (co- sponsor)
                         Planning and Conservation League  
                         (co-sponsor)
                         Alliance of Automobile Manufacturers
                         American Lung Association
                         Bluewater Network
                         California Air Pollution Officers  
                         Association
                         California League of Conservation Voters  
                         (CLCV)
                         California Manufacturers & Technology  
                         Association
                         Capitol Auto Club Inc. "Thunderbolts"
                         Cleaner Air Partnership
                         Clean Power Campaign
                         Kirsh Foundation
                         Metropolitan Transportation Commission
                         Natural Resources Defense Council (NRDC)
                         Rose Colored Glass Company
                         Sacramento Area Council of Governments
                         Sacramento County Supervisor Roger  
                         Dickinson, District 1
                         Sacramento Metropolitan Air Quality  
                         Management District
                         Sacramento Metro Chamber
                         San Luis Obispo County Air Pollution Control  
                         District
                         Sierra Club-California
                         Solano County Supervisor Duane Kromm,  
                         District 3
                         South Coast Air Quality Management District




          AB 2683 (LIEBER)                                           
          Page 7

                                                                       
           
                         Steven and Michele Kirsch Foundation
                         Union of Concerned Scientists
                         Western State Petroleum Association
                         Wine Institute
                         Yolo-Solano Air Quality Management District
                         Numerous individuals
          
               OPPOSED:  Advanced Marketing & Distribution, Inc.
                         Automedia 2000, Inc.
                         Automotive Parts Company
                         Burgiemen Capitol City Car Club
                         CRE Spray Booths & Metal Buildings
                         Currie Enterprises
                         DRIVE! Magazine
                         Edelbrock Corporation
                         Egge Machine Company
                         GEN III Performance
                         Goodguys Rod & Custom Association
                         Hagerty Insurance Agency, Inc.
                         Innovative Turbo Systems
                         Kinesis Motorsport
                         Mini Mania Inc.
                         Nanotech Fuel Corporation
                         Nology Engineering, Inc.
                         Precision Collision Repair
                         Southern California Roadsters Car Club
                         Specialty Equipment Market Association  
                         (SEMA)
                         Sway-A-Way, Inc.
                         Western Industrial Exchange, Inc.
                         Wild Horses, Inc.
                         Numerous individuals