BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: SB 1239 Hearing Date: 4/19/2016 ----------------------------------------------------------------- |Author: |Gaines | |----------+------------------------------------------------------| |Version: |2/18/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Erin Riches | |: | | ----------------------------------------------------------------- SUBJECT: Smog check: exemptions DIGEST: This bill expands the existing smog check exemption from pre-1976 model year vehicles to pre-1981 model year vehicles. ANALYSIS: Smog check program To help meet federal air quality standards, existing law establishes the Motor Vehicle Inspection Program, commonly known as the smog check program. The Department of Consumer Affairs administers this program through the Bureau of Automotive Repair (BAR). The smog check program generally requires vehicle owners to have their vehicles tested every two years, with some exceptions including gas-powered vehicles manufactured prior to 1976, alternatively fueled vehicles, and vehicles six model years old or newer. Existing law defines a "collector motor vehicle" as a motor vehicle owned by a collector that is used primarily in shows, parades, charitable functions, and historical exhibitions for display, maintenance, and preservation, and is not used primarily for transportation. Existing law provides a partial smog check exemption for some collector vehicles. Specifically, if the vehicle is at least 35 years old, and the owner can demonstrate that the vehicle is insured as a collector vehicle, then the vehicle is exempt from the visual and functional SB 1239 (Gaines) Page 2 of ? inspection of emission controls. However, the vehicle must still pass a functional inspection of the fuel cap, a visual inspection for liquid fuel leaks, and a tailpipe test. This bill provides that all motor vehicles manufactured prior to the 1981 model year are exempt from smog check. COMMENTS: 1)Purpose. The author states that existing law is "inconsistent" because it requires vehicles to be at least 35 model years old in order to qualify for a smog check exemption, yet also mandates that a vehicle's model year (MY) must be older than 1976. This bill would change the date to 1981 "in order to maintain the 35-year exemption." The sponsor of this bill, the Association of Car Clubs, states that older cars "are normally insured with collector insurance and have mileage restrictions dictated by the insurance company and have little or no negative impact on the environment." 2)Pre-1976 exemption vs. collector car exemption. Existing law includes two separate types of smog check exemptions relating to older cars. First, collector cars are exempted from some portions of smog check, provided they meet certain criteria: the owner must be able to demonstrate that the vehicle is insured as a collector vehicle; the vehicle must be at least 35 years old (e.g., MY 1981); the vehicle must comply with exhaust emissions standards for that vehicle's class and MY; and the vehicle must pass a functional inspection of the fuel cap and a visual inspection for liquid fuel leaks. A collector vehicle meeting these requirements is exempt from the visual or functional check of emission control devices, including the catalytic converter, but must undergo the other portions of the smog test. The visual check is important because it is generally much easier to tamper with older vehicles' emissions controls - e.g., to increase engine performance - because older systems are much less sophisticated. For example, a vehicle owner can install a diverter hose to bypass parts of the system; while the owner can connect the hose properly in order to pass the smog test, a visual check is likely to detect this adjustment. Existing law provides a separate exemption for vehicles older SB 1239 (Gaines) Page 3 of ? than MY 1976. These vehicles are exempt from the smog check program altogether. This bill would expand the pre-MY 1976 exemption to all pre-MY 1981 vehicles, including collector vehicles. By doing so, this bill would make all MY 1976-81 collector cars - which are currently subject to partial smog check - fully exempt. The sponsor of this bill states, "Requiring a costly smog inspection only adds to the already high cost of owning and maintaining such a vehicle and we feel that it's purely a revenue collecting regulation." California established the smog check program, however, in order to help meet federal air quality standards. 3)Older vehicles have much higher GHG emissions. According to the state Air Resources Board (ARB), transportation accounts for approximately 40% of the state's total GHG emissions. Of the cars on California's roads, just 25% of vehicles account for 75% of vehicle emissions. This is partly because the smog check program does not hold older cars to the same emissions standards as newer cars. Not only are emissions standards for older cars less stringent, but allowances are also made for normal wear and tear in a vehicle's emissions control system as it ages. Thus, even if an older vehicle passes a smog test, it is still higher-emitting than a newer vehicle. Notwithstanding the lower emissions standards, BAR data indicate that in 2015, an average of 30% of MY 1976-1981 vehicles failed a smog test. Exempting these vehicles from smog check would allow thousands of vehicles that do not meet state emissions standards to continue driving on California's roads. Although the author and sponsor state that exempting collector cars fully from smog check would have little environmental impact because these vehicles are low mileage, non-collector cars are likely driven a significantly higher number of miles. 4)Background on smog check exemptions. Prior to 1998, vehicles MY 1973 and earlier were exempt from smog check. Subsequently, SB 42 (Kopp, Chapter 801, Statutes of 1997) established the "30-year rolling exemption," allowing vehicles to "graduate" from smog check once they reached 30 years of age. The Department of Consumer Affairs opposed SB 42, stating that while the initial number of vehicles exempted by the bill was modest, that number was responsible for a SB 1239 (Gaines) Page 4 of ? significant share of the smog test failure rate of the entire fleet. ARB also opposed the bill, arguing that it would make it even more difficult to attain federal air quality standards in areas such as the South Coast Air Quality Management District. In 2004, the Legislature passed and the Governor signed AB 2683 (Lieber, Chapter 704, Statutes of 2004). AB 2683 repealed the 30-year rolling exemption and instead applied the smog check exemption strictly to vehicles manufactured prior to MY 1976. 5)Opposition concerns. Writing in opposition to this bill, the Bay Area Air Quality Management District (BAAQMD) states that since 2004, when AB 2683 was passed, "a host of medical research has shown that levels of air pollution breathed by Californians today is in fact far more damaging to public health than was earlier suspected." The Coalition for Clean Air notes that "the smog check program ? allows for deterioration of the vehicle's emission controls over time. To pass smog check, owners of older vehicles simply need to maintain their vehicles." The California Air Pollution Control Officers Association states that the smog check program "is essential for clean air and public health" and "is an equitable and cost-effective way to cut air pollution." 6)State assistance is available. The state provides assistance to owners of high-polluting cars through several programs. The Consumer Assistance Program, administered by BAR, provides, for eligible customers, an opportunity to renew registration even if the car does not pass a smog test, provided the owner has spent a certain amount on repair; repair cost assistance; or a voucher in return for "retiring" (scrapping) the vehicle. BAR also administers, in conjunction with the ARB, the Enhanced Fleet Modernization Program (EFMP), which provides funds for voluntary retirement of eligible passenger vehicles and light- and medium-duty trucks that are high polluters. A component of this program, EFMP Plus-Up, provides additional assistance to eligible customers in the San Joaquin Air Pollution Control District and the South Coast Air Quality Management District. 7)Second hearing. Testimony, but no vote, was taken on this bill in this committee on April 12. At the hearing, the author pledged to work with opponents on possible amendments to address their concerns. The committee had not yet received any draft amendments on the morning of April 14. SB 1239 (Gaines) Page 5 of ? Related Legislation: AB 550 (Waldron 2015) - would have allowed the owner of a vehicle that failed a smog test to pay a smog abatement fee of $200. This bill died in the Assembly Transportation Committee without being set for hearing. SB 1224 (La Malfa 2012) - would have expanded the smog check exemption to pre-1981 model year vehicles. This bill failed passage in this committee. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, April 13, 2016.) SUPPORT: Association of Car Clubs (sponsor) Rods and Relics of Lincoln Hills Specialty Equipment Market Association 19 individuals OPPOSITION: Bay Area Air Quality Management District California Air Pollution Control Officers Association Coalition for Clean Air -- END --