BILL ANALYSIS AB 2018 PROPOSED CONFERENCE REPORT NO. 1 March 9, 1994 AB 2018 (Katz) - As Amended: August 26, 1993 ASSEMBLY VOTE 78-0 ( May 20, 1993 ) SENATE VOTE 37- š0 ( August 30, 1993 ) ASSEMBLY CONFERENCE VOTE 3-0 SENATE CONFERENCE VOTE 3-0 Ayes: Katz, Escutia, Andal Ayes: Presley, Russell, Kopp Original Committee Reference: TRANS. DIGEST Urgency statute. 2/3 vote required. Existing law requires a smog check every two years for motor vehicles in šnonattainment areas, as specified. Existing federal law (the Clean Air Act šAmendments of 1990) requires the state to implement an enhanced smog check šprogram in the nonattainment areas with the worst air pollution (portions šof Sacramento, Fresno, Kern, Los Angeles, Orange, Riverside, San Bernardino šand San Diego counties). As passed by the Assembly, this bill repealed a now-obsolete Vehicle Code šprovision. The Senate amendments made technical changes. The conference committee amendments delete the existing provisions and, šinstead: 1) Implement, along with provisions in SB 521 (Presley) and SB 198 š (Kopp), an agreement to settle the long-standing dispute between California and the U.S. Environmental Protection Agency (EPA) concerning the enhanced smog check program for the nonattainment areas with the worst air pollution, and provide that certain provisions contained in SB 629 (Russell), Chapter 1, Statutes of 1994, will become operative immediately rather than on January 1, 1995. 2) Require California EPA, the Bureau of Automotive Repair (BAR) in the š Department of Consumer Affairs (DCA), and the Air Resources Board (ARB) to jointly undertake a pilot demonstration program with EPA to do all of the following, with specified oversight by the Inspection and Maintenance (I/M) Review Committee: a) Determine the effectiveness of alternative loaded mode dynamometers compared to the I/M 240. b) Quantify emissions reductions from a remote sensing program designed to identify gross polluters beyond what is otherwise - continued - AB 2018 Page 1 required by EPA. c) Determine if gross polluters can be successfully identified and directed to test-only stations by targeting methods other than remote sensing. d) Determine the extent of expansion of the test-only network in enhanced areas in order to meet EPA's emission reductions performance standard. 3) Require registered owners of vehicles selected to participate in the š pilot program to make their vehicles available for testing by BAR, and if necessary, to make repairs. BAR will fund repair costs if the owner has already paid for smog-related repairs at least equal to the existing repair cost limits within the last two years. Persons failing to bring in vehicles for inspection or failing to make repairs may be cited, as specified. 4) Provide that the repair cost limit applicable to vehicles failing a š smog check will be $450 wherever smog checks are required, effective January 1, 1995, or earlier upon implementation by BAR of a repair assistance program as authorized by SB 198. The 1995 date is required by EPA regulations and supersedes the January 1, 1996 date in SB 629. 5) Require the following types of vehicles in enhanced areas to be tested š at test-only stations: gross polluters identified either by remote sensing devices or through a regular smog check, tampered vehicles, high-mileage fleet vehicles, a two-percent random sample of vehicles and other vehicles designated by BAR. 6) Authorize BAR to require tampered vehicles and gross polluters to be š tested annually instead of biennially for at least two but not more than five consecutive years once the vehicles have been properly repaired. 7) Authorize BAR to issue photo identification cards with bar codes for š licensed smog check technicians. 8) Require access for BAR quality assurance inspectors to smog check š stations to inspect property, equipment, repair orders and records. 9) Authorize BAR to require manufacturers of smog check equipment to š provide security for warranties or service contracts. 10) Authorize proceeds received by the state from the litigation known as š MDL-150 to be deposited in the Vehicle Inspection and Repair Fund and to be available, upon appropriation, for vehicle repair assistance and removal programs. 11) Require test-only stations to distribute regional lists of authorized š smog repair stations (prepared by BAR), and prohibit test-only stations from referring customers to any particular smog repair station. 12) Appropriate $12.012 million from the Vehicle Inspection and Repair š Fund to the DCA and the ARB to implement enhancements to the smog check program, rather than transferring a portion of those funds to - continued - AB 2018 Page 2 the General Fund. 13) Provide that this bill is contingent on the enactment of SB 521. Also š provide that provisions of SB 629 that have been superseded by replacement provisions in this bill and in SB 521 will not become operative on January 1, 1995. 14) Make various other technical and conforming changes. FISCAL EFFECT This bill contains a $12.012 million appropriation from the Vehicle šInspection and Repair Fund to cover increased program costs of this bill šand SB 521. COMMENTS 1) Beginning in 1993, the Legislature considered a number of different approaches to enhancing the state's vehicle smog check program in the parts of California with the worst air pollution in response to the federal Clean Air Act Amendments passed by Congress in 1990 and later implemented by EPA through regulations. EPA sought changes to the existing system of 9,000 smog check stations that currently conduct smog checks and repair vehicles, requiring all testing and repair to be separated in areas requiring enhancement. Because this would have caused substantial economic disruption, the Legislature declined to approve EPA's program. Instead, an alternative plan emerged in the summer of 1993, SB 629, that made improvements to the existing decentralized system, cracked down on fraud, and targeted gross polluting vehicles through the use of roadside remote sensing devices. EPA found that approach to be inadequate, and the Legislature adjourned in 1993 without any smog check bill having been enacted. 2) A number of negotiation sessions between EPA and California were convened in the interim to attempt to resolve the dispute. Negotiations broke off a number of times, and EPA noticed its intent to impose sanctions on the state. In January 1994, the Legislature gave final approval to SB 629, which the Governor signed into law. Eventually, EPA and California reached agreement on a compromise plan that (among other things) recognizes California's unique efforts to improve air quality and requires substantially less than 100% of smog checks in the enhanced areas to be conducted at test-only stations. BAR will select vehicles to go to test-only stations based on a variety of factors, such as roadside detection of gross polluters, etc. 3) Three bills emerged from conference committee to implement the agreement. This bill contains the joint pilot demonstration program to be undertaken by California and EPA to identify gross polluters, and makes other modifications to SB 629 necessary to implement the agreement. SB 521 contains the state's commitment to test a portion of vehicles in the enhanced areas at test-only stations, and SB 198 contains the vehicle repair assistance and buy-back program. FN 007382 - continued - AB 2018 Page 3 AB 2018 - continued - AB 2018 Page 4