BILL ANALYSIS SB 521 PROPOSED CONFERENCE REPORT NO. 1 March 9, 1994 SB 521 (Presley) - As Amended: August 23, 1993 SENATE VOTE 39-0 ( June 3, 1993 ) ASSEMBLY VOTE š68-5 ( August 23, 1993 ) SENATE CONFERENCE VOTE 3-0 ASSEMBLY CONFERENCE VOTE 3-0 Ayes: Presley, Russell, Kopp Ayes: Katz, Escutia, Andal 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 Senate, this bill authorized smog check certificates to šbe issued by electronic means. The Assembly amendments were technical. The conference committee amendments delete the existing provisions and, šinstead: 1) Implement, along with provisions in AB 2018 (Katz) and SB 198 (Kopp), š 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 the Bureau of Automotive Repairs (BAR) in the Department of š Consumer Affairs to award one or more contracts for test-only smog check stations in areas of the state requiring an enhanced smog check program. These stations are to have sufficient capacity to test 15% of the vehicles subject to inspection annually commencing January 1, 1995 and are to meet specified service standards. At least two test-only contractors shall be selected for both the South Coast Air Basin and the combined Kern-Fresno-Sacramento enhanced areas unless BAR determines, after a public hearing, that there is not more than one qualified contractor. - continued - SB 521 Page 1 SB 521 3) Provide that BAR shall increase testing at test-only stations by š January 1, 1996, if necessary to meet EPA's air pollution reduction performance standards following the completion of a pilot demonstration program required by AB 2018. BAR has the option of contracting for additional stations or licensing individual stations. 4) Provide that all vehicles not tested at test-only stations pursuant to š Nos. 2 and 3 may continue to be tested at test-and-repair stations. All stations issuing smog certificates in enhanced areas must be equipped with loaded-mode dynamometers to improve testing accuracy. 5) Authorize BAR to request the Department of General Services for š exemptions from existing contracting laws, rules and procedures, if necessary to avoid delays to implementing the test-only program. A report on exemptions requested and granted shall be submitted to the Legislature. 6) Provide that test-only station networks shall only be implemented in š the enhanced areas, and not in other areas. 7) Provide that this bill is contingent on the enactment of AB 2018 and š furthermore that this bill shall not be implemented unless California and the EPA sign a memorandum of agreement concerning the pilot demonstration program required by AB 2018. FISCAL EFFECT An appropriation from the Vehicle Inspection and Repair Fund to cover šincreased program costs of this bill and AB 2018. COMMENTS 1) Beginning in 1993, the Legislature considered a number of different š 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 š convened in the interim to attempt to resolve the dispute. Negotiations broke off a number of times, and EPA noticed its intent to - continued - SB 521 Page 2 SB 521 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 š agreement. This bill contains the state's commitment to test a portion of vehicles in the enhanced areas at test-only stations. AB 2018 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 198 contains the vehicle repair assistance and buy-back program. FN 007381 - continued - SB 521 Page 3