BILL ANALYSIS CONFERENCE COMPLETED SB 521 Presley (D) Conference Report No. 1, 3/9/94 27 - Urgency NOT RELEVANT COMMITTEE VOTES NOT RELEVANT NOT RELEVANT SUBJECT: Vehicles: inspection and maintenance program SOURCE: Author ____________________________________________________________________________ DIGEST: The provisions of this bill, dealing with certificates of šcompliance, were deleted in the Conference Committee. This bill now requires the Department of Consumer Affairs to implement a šprogram to test specified vehicles at privately-operated, test-only šstations. Existing law establishes the vehicle inspection maintenance program, which šprovides for privately operated smog check stations to test and repair švehicles subject to the program, as specified. This bill would, contingent upon the enactment of AB 2018, require the šDepartment of Consumer Affairs to implement a program to test a portion of šthe vehicles registered in the enhanced program area, as defined, at test- šonly stations which are privately operated pursuant to department contract, šas specified. ANALYSIS: Since March of 1984, the Bureau of Automotive Repair (BAR) šhas operated the state's Smog Check program, which was authorized by SB 33 š(Presley, 1982). SB 33 also established the California I/M Review šCommittee to monitor the program and keep the Legislature informed of the šemissions control results being achieved. Under the smog check program, gasoline, liquid propane (LPG) and compressed šnatural gas (CNG) fueled cars and trucks must be inspected at private, BAR- šlicensed facilities known as a "Smog Check" stations once every two years šand upon change of ownership. Repairs are required for vehicles that fail to pass a visual and šfunctional inspection, or a tailpipe emissions test. Enforcement of šprogram requirements is done through the Department of Motor Vehicles (DMV) šregistration process: vehicles may not be re-registered without meeting šthe smog check requirements. SB 1997 (Presley, 1988) made a number of changes and enhancements to the šSmog Check program which became effective on January 1, 1990. The Administrator of the federal EPA and the Secretary of the federal šDepartment of Transportation (DOT), in an April 15, 1993 joint letter to šGovernor Wilson, indicated their concerns over vehicle inspection šlegislation pending in California. The EPA and DOT advised that neither SB š1195 nor SB 119, in their earlier versions, fully addressed federal I/M šrequirements and would not be approved by federal officials. As a result, šthe EPA and DOT gave notice they intended to impose highway funding and šemissions offset growth sanctions on California. SB 119 was subsequently amended and the federal EPA stated that the revised šprovisions would meet the requirements of the Clean Air Act Amendments. SB š119 was considered by the committee on August 31, 1993 but failed passage šon a 3-7 vote. SB 1195, however, was approved by the committee on a 7-2 švote at the same hearing. The contents of SB 1195 later were amended into SB 629 (Russell-Katz) along šwith further revisions to an enhanced decentralized I/M program. SB 629 šwas approved by the Assembly 65-9 and referred to the Senate for action. šFederal EPA Administrator Browner stated that if the Legislature passed SB š629, she would institute sanctions immediately. However, if the šLegislature withheld action on SB 629, she would delay sanctions while šnegotiations took place. In January of 1994, the Senate passed SB 629 by a vote of 26-5 (page 3739, š1/20/94). (paste sb629 vote here) This bill and AB 2018 incorporate the compromise language for California to šmeet the federal Clean Air Act. CONTINUED SB 521 Page 3 Specifics of the Bill This bill would require the State of California, by January 1, 1995, to šimplement a test-only vehicle inspection program, in non-attainment areas šonly, through contracts with private facilities capable of testing annually š15 percent of vehicles subject to inspection. The bill would further require the Department of Consumer Affairs to expand šthe test-only program so that it meets the emission reduction performance šstandards established by the Environmental Protection Agency, as modified by results šof the pilot demonstration program. The program would be required, as a minimum, to utilize loaded mode šdynamometer test equipment. If expansion of the 15-percent test-only šprogram is needed, the Bureau of Automotive Repair (BAR) may do so by šutilizing a network of privately operated test-only stations established šthrough contracts or licenses. The initial 15 percent test-only program is što be implemented through contracted facilities only. The bill would require BAR to utilize multiple contracts unless only one šqualified contractor bids. The bill would require the South Coast Air šBasin to have at least two contractors; and the combined enhanced area that šincludes Bakersfield, Fresno and Sacramento shall have at least two šcontractors. The bill would specify that the BAR may operate test-only šstations on an interim basis while it is seeking additional qualified šcontractors. The bill would provide that in awarding bids, BAR must take into account štest costs and convenience to motorists. BAR may award preference points šon bids based on the extent to which bidders maximize the economic benefit što the state by using California-based subcontractors and employees. The šbill would require the BAR to ensure that there are adequate test-only šfacilities and that they are properly located to provide consumer šaccessibility and convenience to all persons within the enhanced program šarea and that the waiting time for consumers is minimal. The BAR may šoperate test-only facilities on an interim basis to ensure consumer šconvenience. This bill would also provide: A. All data generated by test-only facilities will be the property of the šstate. B. BAR may specify funding for consumer education as part of the bid proposal. C. A manager must be present at all test-only facilities at all hours of šoperation. D. BAR may specify advanced training certification needed for employees of test-only facilities. E. BAR may require some or all of the contractees to perform referee CONTINUED SB 521 Page 4 services in enhanced or basic areas. F. Bar may be exempted from state contracting procedures if necessary to accomplish implementation of the enhanced program within the timelines prescribed by state or federal law. The bill provides, however, that if BAR does follow this exemption, it must report that exemption to the Legislature. The bill would provide that implementation of the enhanced program is šdependent on the signing of the memorandum of agreement by the California šEnvironmental Protection Agency and the federal Environmental Protection šAgency (EPA). The program established by this bill shall be implemented šonly in urbanized areas classified by the EPA as a serious, severe or šextreme non-attainment area for carbon monoxide with a design value greater šthan 12.7 ppm, and may not be implemented in any other area. The bill would specify that if an existing smog check station has been šrequired to make additional investments of more that $10,000 in order to šparticipate in the enhanced program, BAR must submit recommendations to the šGovernor and the Legislature for mitigation of expenditures. Finally, this bill is double-joined with AB 2081 (Katz-D). Note: At the end of this analysis is a comparison of the major elements šcontained in SB 629 with those proposed in this bill and AB 2018. FISCAL EFFECT: Appropriation: No Fiscal Committee: Yes Local: No CONFERENCE COMMITTEE VOTE: Page 4085, 3/9/94 RJG:ctl 3/14/94 Senate Floor Analyses CONTINUED SB 521 Page 5 SMOG CHECK PROGRAM COMPARISON OF MAJOR ELEMENTS: SB 629 AND PROPOSED AB 2018 (KATZ) AND SB š521 (PRESLEY) CONFERENCE REPORTS Status: AB 2018/SB 521 approved by Conference Committee 3/9 Effective Date SB 629: Program becomes operative January 1, 1995. Proposed: Contains urgency clause, to take effect immediately. Test-only stations SB 629: BAR would contract for expansion of its current system of test- šonly referee stations for the "enhanced areas". The following vehicles šwould be required to be tested at referee stations: gross polluters, šincluding vehicles detected by remote sensing (RSD); a 2 percent random šsample of vehicles; tampered vehicles, etc. Proposed: California commits to contracting with one or more contractors šfor a system of test-only stations which in 1995 will have the annual šcapacity to test 15 percent of the vehicle fleet in the enhanced areas that šis subject to testing. Ultimate expansion of test-only stations SB 629: If necessary to meet EPA requirements, California commits to šimplement SB 119 (Presley) in the enhanced areas, which calls for 100 špercent of initial biennial smog checks to be done at test-only stations, šafter June 30, 1995. Proposed: If necessary to meet EPA requirements, California agrees to šexpand the test-only network in enhanced areas after conclusion of the špilot project, to meet EPA's performance standard, in 1996. This would be šsubstantially less than 100 percent of initial biennial smog checks. The šexpansion could be accomplished either by an expansion of the test-only šcontract or by other licensed test-only stations, as determined by the šstate. Repair Cost Limits SB 629: $450, except no limit applies to gross polluters. Effective šJanuary 1, 1996, or whenever a buyback program is implemented. Proposed: Same as SB 629, except effective January 1, 1995 as required by šfederal regulation. Annual testing of gross polluters SB 629: Would require annual testing for five years as one of the šadditional steps that BAR would implement if needed to meet federal šrequirements. CONTINUED SB 521 Page 6 Proposed: Annual testing would be required for two to five years, if BAR šdetermines this is necessary to meet federal requirements. Referee Stations SB 629: Existing contracted network is to be expanded to allow referee šstations to do some test-only work beyond traditional referee functions šsuch as approving repair cost waivers. Proposed: BAR may require some or all contracted test-only stations to šperform traditional referee functions. Distribution of lists of smog repair stations SB 629: Not specified. Proposed: Test-only stations would distribute regional lists of smog šrepair stations prepared by BAR. Appointment of I/M Review Committee: SB 629: Provides that if the SB 629 I/M Review Committee is not fully šappointed by California authorities by April 30, 1994, EPA makes the šappointments. SB 629 becomes operative January 1, 1995. Proposed: Provides for no EPA appointments. Remote Sensing Pilot Project SB 629: The I/M Review Committee would design the RSD pilot project, to be šcarried out by BAR. The Committee would later decide whether RSD expansion šstatewide will reduce pollution sufficiently to satisfy EPA requirements. Proposed: BAR, CalEPA, ARB and EPA jointly carry out the RSD pilot project šby the end of 1994, with input from the I/M Review Committee. The project šis defined in the Protocol and all parties are bound by the terms of the šMOA. In addition to RSD, other methods of targeting gross polluters will šbe tested, as will the effectiveness of less-costly dynamometers such as šASM and RG 140. Appropriation SB 629: Contains no appropriation to fund BAR/Cal EPA work in šdemonstration program or other enhanced activities. Proposed: Contains an appropriation to fund expanded activities. Also šprovides a future funding source for the buyback program by directing funds šCalifornia may receive from the MDL 150 litigation to this purpose. Other Items Proposed: o BAR could award five-year contracts for test-only stations, rather than š CONTINUED SB 521 Page 7 the current three-year limit, and could request additional exemptions from šstate contracting procedures if necessary to expedite changes to the smog šcheck program. o BAR quality assurance inspectors would have access to smog station records. o BAR would have the ability to require manufacturers of smog check šequipment to provide financial security for any warranties they offer. 3-10-94 CONTINUED