Motor vehicle pollution control devices: aftermarket parts: approval process., the official text

An act to add Section 43019.4 to the Health and Safety Code, relating to air pollution.

LEGISLATIVE COUNSEL'S DIGEST

Existing law prohibits the disconnection, modification, or alteration of required motor vehicle pollution control devices. Existing law exempts from the prohibition an alteration, modification, or modifying device, apparatus, or mechanism that is covered by a resolution of the State Air Resources Board that makes specified findings. Under existing regulations, the executive officer of the state board is authorized to exempt add-on and modified parts for on-road vehicles or engines from the above prohibition based on an evaluation conducted in accordance with certain procedures. Existing law requires the state board to undertake a public process to review the existing procedures for exempting parts for on-highway vehicles under those resolutions with the goal of streamlining the process for issuing executive orders. Existing law authorizes the state board to adopt a schedule of fees to cover all or a portion of the state board’s reasonable costs for the certification, audit, and compliance of aftermarket parts sold in the state, as specified.
This bill would authorize a manufacturer of an add-on or modified part for on-road vehicles or engines to submit an application to the state board for a conditional approval to sell an add-on or modified part before issuance of an executive order while the applicant is awaiting final determination for the add-on or modified part, as specified. The bill would require the state board to make a determination on whether the application is complete and satisfies other specified requirements and, if it determines those requirements are met, to grant a conditional approval. If the state board does not make a determination within 30 days of receipt of an application, the bill would deem the application conditionally approved. The bill would authorize, upon the effective date of a conditional approval, the add-on or modified part specified in the application to be sold, offered for sale, advertised, or installed in the state. The bill would require a conditional approval to expire 2 years from the effective date of the conditional approval, unless extended by the executive officer, or upon issuance of an executive order, whichever occurs sooner.

The people of the State of California do enact as follows:

SECTION 1.
(a) The Legislature finds and declares all of the following:
(1) California’s executive order program for add-on and modified parts plays an important role in ensuring compliance with Section 27156 of the Vehicle Code and protecting air quality.
(2) Manufacturers seeking executive orders have been partners with the State Air Resources Board for decades, working on the development of regulations to ensure compliance with the state’s air quality standards.
(3) Manufacturers invest substantial time and financial resources to develop compliant products and satisfy the technical, engineering, testing, and administrative requirements necessary to obtain an executive order from the state board.
(4) A lengthy executive order review process can impose significant economic burdens on manufacturers by preventing the sale of products while applications remain under review.
(b) (1) It is the intent of the Legislature for this act to do both of the following:
(A) Establish a pathway for the conditional sale, advertisement, and installation of add-on and modified parts supported by complete applications that include emissions testing, engineering analysis, and other documentation demonstrating compliance with Section 27156 of the Vehicle Code while the state board completes its review of an application for an executive order.
(B) Establish a conditional approval process for manufacturers that have demonstrated a track record of compliance through prior participation in the executive order program while the state board completes its review of an application.
(2) It is further the intent of the Legislature that the conditional approval process established by this act provide certainty, transparency, and timely review for applicants that submit complete applications to the state board.
(c) Nothing in this act is intended to alter applicable emissions standards, limit the authority of the state board to request additional information or testing, restrict the authority of the state board to approve or deny an application, or prevent the state board from requiring corrective action, recall, stop-sale orders, or other remedies where warranted.

SEC. 2.
Section 43019.4 is added to the Health and Safety Code, to read:
43019.4.
(a) For purposes of this section, the following definitions apply:
(1) “Applicant” means a manufacturer of an add-on or modified part, or a manufacturer’s representative, who submits an application for an executive order pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations.
(2) (A) “Complete application” means an application submitted pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations for an executive order that includes all information required by the applicable procedures governing evaluation of the application, all applicable fees, and a testing report from an emissions testing facility that complies with those procedures, and that complies with subparagraph (B). The testing report shall include, but is not limited to, all of the following:
(i) Complete test results and supporting analysis.
(ii) Identification of all test vehicles, engine families, and configurations.
(iii) Description of all test procedures, conditions, and methodologies.
(iv) Validation and sign-off by the emissions testing facility.
(v) A clear conclusion regarding whether the part satisfies the criteria for exemption under Section 27156 of the Vehicle Code.
(B) A complete application shall also include both of the following:
(i) A complete and accurate description of the product, its installation, and the vehicle or engine coverage requested.
(ii) A certification to the state board that, based on the submitted test data, the part satisfies the criteria for exemption under Section 27156 of the Vehicle Code.
(3) “Emissions testing facility” means a facility determined by the state board to have the equipment necessary to conduct testing, or engineering justification, in support of an application submitted pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations.
(4) “Final determination” means a written decision issued by the executive officer granting or denying an application for an executive order under subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations.
(b) (1) (A) An applicant who satisfies the requirement set forth in subparagraph (B) may submit an application to the state board for a conditional approval to sell an add-on or modified part before issuance of an executive order while the applicant is awaiting final determination for the add-on or modified part.
(B) An applicant may only submit an application pursuant to subparagraph (A) if the state board issued at least 10 executive orders to the applicant pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations before January 1, 2027, regardless of whether the executive order was for the same, or similar, add-on or modified parts.
(2) (A) The state board shall do both of the following:
(i) Determine whether the application is a complete application and whether the applicant satisfies the requirement set forth in subparagraph (B) of paragraph (1).
(ii) Notify the applicant in writing whether the requirements of clause (i) have been satisfied.
(B) If the state board determines that the requirements of clause (i) of subparagraph (A) have been satisfied, the state board shall grant a conditional approval, which shall become effective on the date that the state board notifies the applicant pursuant to subparagraph (A).
(C) If the state board determines that the requirements of clause (i) of subparagraph (A) have not been satisfied, the state board shall submit a response to the applicant detailing the reasons why the application is incomplete and shall work with the applicant to satisfy the requirements of subparagraph (A).
(D) If the state board does not determine whether or not the requirements set forth in subparagraph (A) have been satisfied within 30 business days of receipt of an application pursuant to paragraph (1), the application shall be deemed to be conditionally approved. The conditional approval shall become effective on the date that the applicant notifies the state board in writing of its intent to sell the add-on or modified part.
(3) Upon the effective date of a conditional approval, the add-on or modified part specified in the application may be sold, offered for sale, advertised, or installed in the state. A conditional approval shall be treated as the equivalent to an executive order.
(4) Upon the effective date of a conditional approval, the validity of a conditional approval shall not be affected by a request from the state board for additional information, clarification, supplemental documentation, supplemental testing, or other materials necessary for granting an executive order.
(5) A conditional approval shall expire two years from the effective date of the conditional approval, unless extended by the executive officer, or upon issuance of an executive order, whichever occurs sooner.
(6) (A) The manufacturer shall maintain detailed records of all parts sold under the conditional approval and provide those records to the state board within 30 days of a request for those records.
(B) The state board may suspend or revoke a conditional approval if the applicant fails to comply with subparagraph (A).
(c) An add-on or modified part sold, offered for sale, advertised, or installed under a conditional approval pursuant to subdivision (b) shall not be deemed a violation of Section 27156 of the Vehicle Code solely because a final determination has not been made.
(d) (1) Upon withdrawal, revocation, or expiration of a conditional approval, the executive officer may require the manufacturer to implement a recall, corrective action, stop-sale order, or other remedy for parts sold, offered for sale, advertised, or installed in the state pursuant to subdivision (b), as the executive officer determines necessary and appropriate.
(2) The manufacturer shall be responsible for all costs associated with any recall and remedy required pursuant to this subdivision. The state board may require the manufacturer to submit and implement a recall or corrective action plan for parts sold, offered for sale, advertised, or installed in the state pursuant to subdivision (b).
(3) A manufacturer that fails to comply with a recall or corrective action plan required pursuant to this subdivision may be subject to civil penalties pursuant to Section 43008.6.
(e) On or before January 1, 2028, the state board shall revise the procedures incorporated by reference in subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations, and any associated forms, guidance documents, or regulations, as necessary to conform to the requirements of this section.