BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: sB 385
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  wright
                                                         VERSION: 4/14/09
          Analysis by:  Jennifer Gress                   FISCAL:  yes
          Hearing date:  April 28, 2009






          SUBJECT:

          Motor vehicle inspection and maintenance (smog check) program:   
          historic vehicles

          DESCRIPTION:

          This bill exempts "historic vehicles" from the smog check  
          program, provided certain conditions are met.

          ANALYSIS:

           Motor Vehicle Inspection and Maintenance Program (Smog Check)
           To meet federal air quality standards, existing law requires  
          California-registered, gasoline-powered vehicles, and beginning  
          January 1, 2010 certain diesel-powered vehicles, to undergo  
          biennial smog inspections to measure motor vehicle-related  
          pollutants.  New vehicles six model-years old and newer,  
          vehicles with a pre-1976 model year, electric vehicles,  
          motorcycles, and large commercial vehicles are exempt from the  
          smog check program.  In addition, collector vehicles 35  
          model-years old or older are exempt from the component of smog  
          check that entails a visual or functional check of emissions  
          control equipment.

          Upon initial registration and upon a change of ownership and  
          registration of a vehicle, the vehicle owner must submit to the  
          Department of Motor Vehicles (DMV) a valid certificate of  
          compliance indicating that the vehicle has passed its smog  
          inspection. If a vehicle fails any component of a smog  
          inspection, the vehicle owner must, with some exceptions, repair  
          the vehicle and pass a subsequent smog inspection before being  
          able to register or renew the registration of the vehicle.  
          
           Vehicles of Historic Value  




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          Upon application by a vehicle owner, existing law requires DMV  
          to issue a special identification plate to vehicles of historic  
          value, provided the vehicle meets one of the following  
          conditions: 

           The vehicle is at least 25 years old and is of "historic  
            interest" to the extent that it is "collected, restored,  
            maintained, and operated by a collector or hobbyist  
            principally for purposes of exhibition and historic vehicle  
            club activities" as certified by the vehicle's owner; or
           The vehicle has an engine of 16 or more cylinders manufactured  
            prior to 1965; or
           The vehicle was manufactured in the year 1922 or prior  
            thereto.

           This bill  exempts vehicles from the smog check program provided  
          the following conditions are met:

           The vehicle has a historic license plate
           The registered owner of the vehicle owns two or more currently  
            registered vehicles that are not registered as historic  
            vehicles.
           The registered owner of the vehicle signs a statement under  
            penalty of perjury that the vehicle will be used principally  
            for the purpose of exhibition and historic vehicle club  
            activities.
           The vehicle has not been driven more than an average of 150  
            miles per month during the previous two-year cycle minus any  
            mileage accrued from driving to and from events sponsored by  
            charitable organizations, provided the mileage is documented  
            by a receipt issued by the organization in accordance with  
            Internal Revenue Service (IRS) regulations.

           This bill  also requires mileage to be verified by a licensed  
          smog check station, which is authorized to charge a reasonable  
          fee for providing the service.
          
          COMMENTS:

           1.Purpose  .  According to the author, the smog check program as  
            it exists under current law does not provide sufficient  
            exemptions for historic vehicles manufactured after 1976.    
            The author would like to update the exemptions to recognize  
            that certain vehicles manufactured after 1976, which are at  
            least 25 years old, have historic value, are costly and  
            difficult to repair, and need to be preserved. 




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            The sponsor, the Automobile Driving Museum, argues that  
            current law seeks to promote the preservation of historic  
            motor vehicles by exempting those manufactured before 1976  
            from certain smog check requirements.  The sponsor asserts  
            that many vehicles manufactured after 1976 are not being kept  
            because people do not have the resources to maintain  
            compliance with smog check laws. The reason this occurs is due  
            to the fact that manufacturers of vehicles are required to  
            inventory emission repair parts for only 15 years.  After that  
            period of time, the manufacturers transfer inventory to  
            aftermarket suppliers who maintain inventory only for as long  
            as it is economically feasible.  After 25 years, the demand  
            for replacement parts declines to uneconomic levels, making  
            repair parts difficult and expensive to obtain. 

           2.Parts locator service and limited parts waiver  . The Bureau of  
            Automotive Repair (BAR), which administers the smog check  
            program, offers a parts locator service and a limited parts  
            waiver from smog check for that two-year cycle if parts cannot  
            be located that would allow the vehicle to pass its smog  
            inspection.  There is no limit to the number of cycles for  
            which a vehicle owner may be granted a waiver.  For this  
            reason, it is unclear that this bill is needed.
           
             In response, the sponsor argues that the bill seeks to make it  
            as easy as possible for individuals to opt to keep their older  
            vehicles and that the process of obtaining a waiver may be  
            enough for people to opt to get rid of their older vehicles.   
            The bill, however, already requires vehicle owners to take  
            their vehicles to a smog station to verify mileage.   
            Furthermore, historic license plates, which this bill requires  
            in order to be eligible for the exemption, are issued to  
            vehicles that are "collected, restored, maintained, and  
            operated by a collector or hobbyist principally for purposes  
            of exhibition and historic vehicle club activities."  Owners  
            of these vehicles are already investing significant time and  
            money to maintain and preserve these vehicles.  It is unclear,  
            then, why undergoing a smog inspection once every two years  
            or, if necessary, obtaining a waiver constitutes such a  
            significant barrier to ownership.  

           3.Attainment of air quality standards  .  States that contain  
            areas designated as nonattainment for a particular air  
            pollutant must develop a state implementation plan (SIP) to  
            demonstrate how those areas in the state will attain the  




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            federal standard for that pollutant.  A state's SIP is a  
            combination of state and local air quality planning documents  
            that identify the air pollution control strategies or measures  
            that the state and local agencies will implement under their  
            respective authorities in order to attain the federal  
            standard.  The smog check program is an example of a mobile  
            source strategy to reduce emissions from passenger vehicles  
            and light-duty trucks.  California's 2007 SIP for ozone  
            contains several measures that increase the emission  
            reductions achieved through the smog check program.  By  
            establishing an exemption from the smog check program, this  
            bill will offset gains made by other measures and thus make it  
            more difficult for regions in the state to attain the national  
            standards.

           4.History of exemptions  .  Before 1998, vehicles manufactured  
            prior to the 1966 model year were exempt from all elements of  
            the smog check program.  SB 42 (Kopp), Chapter 801, Statutes  
            of 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 the argument advanced to  
            support this bill:  It was difficult for aging cars to pass  
            smog tests because original parts were difficult to locate. It  
            was also argued that these older vehicles were driven far  
            fewer miles than average and that many vehicles were of  
            special significance and were maintained in superior condition  
            by their owners.

            In 2004, AB 2683 (Lieber), Chapter 704, eliminated the 30-year  
            rolling exemption and instead exempted all vehicles  
            manufactured prior to 1976. By establishing a fixed model year  
            for the exemption, older, more polluting cars remained in the  
            smog check program over time, thereby achieving greater  
            emission reductions.  To address concerns raised by collector  
            car enthusiasts, Assemblymember Lieber inserted into the bill  
            a provision that exempted from the visual and functional  
            component of the smog check program "collector motor vehicles"  
            if a vehicle is at least 35 years old, is insured as a  
            collector vehicle, complies with the emissions standards, and  
            passes the fuel cap and liquid leak inspection requirements.
           
          5.Fragmented policy on collector/historic cars and smog check  .   
            This measure reflects the ongoing tension between historical  
            preservation and public health.  The policy landscape, if this  




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            bill were to become law, would become increasingly fragmented  
            and difficult to navigate.  These varied provisions are  
            briefly summarized below.

                 Pre-1976 vehicles are exempt from the smog check  
               program;
                 Collector vehicles 35 years old or older are exempt from  
               the component of smog check that entails a visual or  
               functional check of emissions control equipment; and as  
               provided in this bill,
                 Historic vehicles 25 years old or older would be exempt  
               from the smog check program, provided the individual has at  
               least two other vehicles currently registered and the  
               historic vehicle was driven less than 150 miles per month.

           1.Implementation issues  .  The bill, as currently drafted, raises  
            several questions with regard to implementation, including:

                 The mileage is recorded manually by the smog station  
               technician.  Any mileage accrued for charitable purposes is  
               deducted.  Is it possible that a technician could fudge a  
               little to help his loyal customer avoid smog?  Should  
               documentation of the mileage deduction be provided to BAR  
               and DMV? 
                 Is it possible to verify that an owner of these older  
               vehicles did not tamper with the odometer? 
                 Is a smog station technician the appropriate person to  
               interpret whether the documentation provided by a vehicle  
               owner conforms to IRS rules regarding charitable  
               contributions?

           7.Author's amendments  .  The author intends to offer amendments  
            that do the following:
           
                  Require that a vehicle pass its smog inspection prior to  
               being exempted from the program.
                 Specify that the exemption expires when a vehicle  
               changes ownership and require that a vehicle exempted from  
               the smog check program as provided by this bill pass a smog  
               inspection upon change of ownership.
                 Limit the number of vehicles that may be exempted to  
               "100 vehicles of each model, for each model year."

            These amendments aim to ensure that vehicles exempted from the  
            smog check program are in compliance with emission control  
            laws at the time of exemption, and they protect subsequent  




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            owners from purchasing a vehicle that may be out of  
            compliance.  While these amendments help to ensure that only  
            properly functioning vehicles are exempted and thus limit air  
            quality harms, they raise questions regarding the need for the  
            bill.  If the vehicle has passed its smog inspection, why does  
            it need to be exempt?  

            The amendments also limit the number of vehicles that would be  
            eligible for the exemption.  It is unclear, however, what the  
            author means by "100 vehicles of each model."  Further  
            clarification is needed. 

           1.Suggested amendments  .  If this bill were to move forward, the  
            committee may wish to consider the following amendments to  
            facilitate implementation:

             a.   Because the bill requires a smog station technician to  
               make several judgments regarding mileage, which ultimately  
               determines whether the vehicle is subject to smog  
               inspection, the committee may wish to consider an amendment  
               that would require vehicle owners to have mileage verified  
               by referee stations rather than smog stations generally.   
               Referee stations, acting as agents of the state, are  
               responsible for issuing waivers and dealing with other  
               special circumstances that arise within the smog check  
               program. 

             b.   The mileage deduction allowed for mileage accrued  
               because of charitable purposes may be an overly complicated  
               provision and result in increased emissions to an unknown  
               degree.  The committee may wish to consider an amendment to  
               delete that provision of the bill.

           9.Chaptering amendments  .  This bill conflicts with SB 435  
            (Pavley).  If both bills move forward, the authors should  
            endeavor to avoid having changes in one bill chapter out  
            changes made by the other.

          RELATED LEGISLATION
          
          SB 435 (Pavley) incorporates, beginning January 1, 2012,  
          specified motorcycles into the smog check program.  Passed this  
          committee on April 14th 7 to 3.  Set for hearing on April 27th  
          in the Senate Appropriations Committee.

          AB 318 (Emmerson) authorizes BAR to charge a fee to inspect  




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          specially constructed vehicles that participate in an amnesty  
          program established pursuant to AB 619 (Emmerson), Chapter 420,  
          Statutes of 2008.  In the Assembly Appropriations Committee.
          
           POSITIONS:  (Communicated to the Committee before noon on  
                     Wednesday,                              
                      April 22, 2009)

               SUPPORT:  Association of California Car Clubs, Inc.
          
               OPPOSED:  American Lung Association
                         Bay Area Air Quality Management District
                         California Air Pollution Control Officers  
          Association (CAPCOA)
                         Coalition for Clean Air
                         Sacramento Metropolitan Air Quality Management  
          District
                         Sierra Club California