BILL ANALYSIS
AB 2289
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2289 (Eng)
As Amended August 20, 2010
Majority vote
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|ASSEMBLY: |48-27|(June 2, 2010) |SENATE: |22-11|(August 25, |
| | | | | |2010) |
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Original Committee Reference: TRANS.
SUMMARY : Establishes new industry operating standards and
technology upgrades to the current biennial inspections of
vehicle emission control equipment and systems (smog check)
program.
The Senate amendments :
1)Authorize the State Bureau of Automotive Repair (BAR) to adopt
alternative testing procedures for testing and identifying
vehicles with on-board diagnostic systems that BAR and the
California Air Resources Board (ARB) determine exhibit
operational problems.
2)Require, instead of authorize, BAR to establish
inspection-based performance standards and requires vehicles
that cause most of the pollution to have smog checks performed
by stations that meet high performance standards.
3)Require BAR to include in its annual reports an analysis
comparing the pass and fail rates for vehicles subject to both
OBD II and tailpipe testing.
4)Require BAR to establish, via regulation, specific fine
amounts or a more specific framework for determining fine
amounts.
5)Determine that, upon implementation of the performance
standards, the ownership of a test-and-repair station by an
owner of a test-only facility is not considered to be a
conflict of interest.
6)Modify suspension provisions for a station not meeting
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performance standards, thereby affecting their ability to test
and certify vehicles determined to be gross polluters.
7)Authorize BAR, within the requirement for it to adopt
equipment standards, to include standards for a real-time
computer data program that would prevent a certificate of
compliance from being issued for a vehicle with computer
irregularities.
EXISTING LAW :
1)Requires, generally, gasoline and diesel-fueled vehicles that
are registered in nonattainment areas for ozone or carbon
monoxide pollutant emissions to undergo smog check.
Authorizes BAR to enforce and administer the smog check
program to ensure the reduction of gaseous emissions of
hydrocarbons, carbon monoxide, and oxides of nitrogen.
2)Requires the smog tests to include, at minimum, loaded mode
dynamometer testing in enhanced areas, and two-speed testing
in all other program areas, and a visual or functional check
of emission control devices specified by smog technicians.
3)Requires the periodic evaluation of the smog check program by
BAR and ARB. Establishes the Inspection and Maintenance
Review Committee Inspection and Maintenance Review Committee
(IMRC) to review the BAR/ARB joint evaluation and to submit a
report on the proposed plan to the Legislature.
4)Establishes procedures for the issuance of citations for
operating violations by underperforming stations and
establishes a schedule of civil penalties for the violations.
5)Requires BAR, if existing smog check stations, in order to
participate in the enhanced program, have been required to
make additional investments of more than $10,000, to submit
recommendations to the Governor and the Legislature for any
appropriate mitigation measures.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed in the Senate.
FISCAL EFFECT : According to the Assembly Appropriations
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Committee, annual costs to BAR, ranging from $400,000 to
$600,000, to develop new Smog Check standards, certify test
stations that meet higher standards, enforce compliance, and
collect, analyze and publish data. Minor, absorbable costs to
ARB to consult with BAR.
COMMENTS : BAR and ARB are jointly sponsoring this bill that
they assert will save consumers money, save time, and provide
greater air quality from the state's smog check program, which
is administered by BAR. According to smog station industry
sources, this is the second attempt within several years to try
to achieve major smog check program upgrades. That unsuccessful
attempt, they claim, was due to the inability to foster a sense
of trust as well as a consensus agreement on program goals/needs
between the stakeholders - - the air quality regulators, BAR
management, smog check industry, equipment suppliers, and
environmental organizations. This bill represents, for the most
part, an earnest negotiated consensus among those parties.
The author's office contends that this bill is designed to
improve smog check in reducing pollution through the use of new
technologies (OBD II) that provide considerable time and cost
savings to consumers while at the same time improving consumer
protections by adopting more stringent fine structures to
respond to station and technicians that perform improper and
incomplete inspections. While making the transition to new
equipment and reducing the need for the old equipment, the
author's office wants to provide clear direction to BAR/ARB and
especially to the regulated smog stations regarding the new
scope of the law as envisioned. With program implementation
changes clearly delineated by this bill, smog stations will be
better able to make informed business decisions along with the
ability of BAR personnel to better manage, investigate, and
enforce the program.
Statewide smog check program: In 1982, California became the
20th state in the nation to adopt a vehicle inspection and
maintenance (smog check) program. Unlike the other states, BAR
administers a "decentralized" program, which means that smog
check stations are privately owned and operated. In 2008/2009,
BAR licensed approximately 8,400 smog check stations (although
only 7,300 are considered active stations in the 1st quarter of
2009). During this time, BAR also licensed almost 14,000 smog
check technicians.
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OBD II: According to ARB, OBD II is an acronym for On-Board
Diagnostics II, the second generation of on-board self-diagnostic
equipment requirements for California vehicles. OBD II does not
test exhaust. Instead, this system checks a vehicle's
computer-controlled emissions systems and components to ensure
that no malfunction exists that would cause an increase in
emissions. OBD II is installed on most 1996 and newer passenger
cars and light duty trucks. The electronic component allows smog
technicians to plug into the vehicle's computer and diagnose
in-use driving vehicle emission performance.
According to IMRC, with the exception of California and
Colorado, all states with federally- mandated smog check
programs have discontinued tailpipe, visual, and functional
testing for newer model-year vehicles, because they were deemed
not cost effective. The U.S. Environmental Protection Agency
(USEPA) has supported OBD-only testing and testified before the
IMRC last year that it would agree with this approach in
California. The primary advantages of OBD II-only testing are a
lower cost to the consumer and a more effective testing
procedure.
Impact upon remaining fleet: According to ARB, eliminating
tailpipe testing for the newer fleet would result in changes to
the current smog check equipment and practices within the
industry. Even in 2008, the newer fleet (i.e., OBD II-equipped
vehicles) made up over 66% of all vehicles inspected, and the
percentage is growing every year. The number of older cars in
the fleet that need a tailpipe test, on the other hand, will
continue to diminish over time. At some point, tailpipe testing
volumes may be reduced to the point that it is impractical or
not cost effective to have tailpipe testing equipment at every
smog check station, and other infrastructure options would need
to be considered (e.g., tailpipe testing at a subset of
stations, allowing individual stations to opt in or out of
tailpipe testing from a business point of view, etc.).
Maintaining a tailpipe testing infrastructure, however, is a
vital element to the smog check program. As the test-only
stations currently handle approximately 60% of smog inspections,
the impact upon that segment of the smog check industry could
result in the majority of those stations to be economically
unviable, according to the California Emissions Testing
Industries.
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Sierra Research Report (March 2009): ARB, in cooperation with
BAR, hired Sierra Research, Inc. to conduct an independent
research and analysis of the smog check program using data
collected from roadside inspections conducted in 2003-2006. It
is believed that the study's findings spurred the need for smog
program changes, thus leading to the introduction of this bill.
The study compared roadside inspection results for 1976-95
(pre-OBD II) model year vehicles to the smog check inspection
results reported by smog check stations for these same vehicles.
Key findings from the study included:
1)Of the 1976-95 vehicles sampled, 19% of the vehicles initially
passed a tailpipe inspection at a licensed smog check station,
but failed a roadside audit inspection within a year.
2)The data also showed that 49% of the vehicles that failed a
roadside audit inspection had failed, and then subsequently
passed, a tailpipe inspection at a smog check station within
the past year.
To better address the extent to which improper and/or falsified
test results may be factors in the smog check program, the
report recommended corrective steps, some of which are
incorporated in this bill.
Smog check equipment change - Transitioning from BAR-97 to
BAR-2012: Approximately 10,000,000 smog check inspections are
performed on motor vehicles each year in California. Smog check
inspections are performed by approximately 7,300 licensed smog
check stations located throughout California. Smog check
inspections are currently performed using a BAR-97 Emissions
Inspection System (EIS). The BAR-97 EIS equipment is required
in all smog check stations located in enhanced areas, or
California's smoggiest regions. The BAR-97 EIS tests vehicles
under simulated driving conditions to detect oxides of nitrogen,
hydrocarbons, and carbon monoxide emissions. These are the
major chemical components of smog. The equipment consists of a
5-gas analyzer, additional hardware, software, a fuel cap
tester, and a dynamometer with safety restraints. The most
distinctive component of the equipment is the dynamometer, a
treadmill-like device that simulates driving conditions.
Originally certified by BAR in 1997/1998, the state's current
BAR-97 EIS units are more than 13 years old.
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The BAR-2012 EIS Project is an information technology project to
procure the development of standardized state-owned software and
integrate that software with various equipment components of the
BAR-2012 EIS. According to BAR, the current BAR-97 EIS relies
on older technology that cannot be easily updated to respond to
needed smog check program improvements. The BAR-2012 EIS will
be flexible, scalable, and responsive to the demands for program
change and allow increased program effectiveness and efficiency.
BAR anticipates award of contract to develop the new equipment
on September 2010. Furthermore, they expect a transition from
BAR-97 to BAR 2012 at the end of 2012. Accordingly, to give
business some certainty in making informed business decisions,
this bill prohibits BAR from requiring the use of the new
equipment prior to January 1, 2013. Further, under current law,
if equipment purchases are mandated and exceed $10,000 in costs,
BAR is required to submit recommendations to the Governor and
the Legislature for any appropriate mitigation measures. This
bill expands those mitigation measures and also includes cost
considerations for certified training institutions.
Enforcement issues: According to IMRC, problems identified in
the Sierra Research report indicate that current fines for
conducting improper smog check inspections fail to change
technician's behavior. "When technicians are issued a citation
under current provisions of the Health and Safety Code, they are
only required to undergo additional training. They pay no
monetary fine. Unfortunately, this training appears to have
little impact since almost 50% of the inspections conducted on
vehicles that originally failed appear to have been performed
improperly. Further, although BAR's enforcement division
identifies stations and technicians that fail to perform in this
area, the penalties, as specified in statute, are too small to
change their poor behavior. Therefore, BAR needs a statutory
change that will increase penalties in order to change poor and
fraudulent behavior." This bill increases and expands existing
fines and penalties for violations committed by smog station
owners, technicians, and customers.
Annual report: On an on-going basis, BAR conducts random
roadside audits (smog tests) on vehicles. The results from
these inspections are used to evaluate the performance of the
smog check program in achieving Clean Air Act requirements.
This bill requires that the results of these audits be evaluated
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and reported annually, beginning July 1, 2011. This bill also
requires approval by the Legislature, through enactment of
statute, prior to the implementation of any report
recommendation pertaining to contracting out the management of
the smog check program.
Training programs and referees: Currently, the California
community colleges and private institutions provide smog check
training for technicians. The community colleges also provide
the basic source of referees to mediate smog check compliance
issues. This bill establishes intent language that directs BAR
to work with the colleges and other training institutions to
identify funding mechanisms that encourage the development of
innovative training programs for motor vehicle technicians.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0006580