Study Sees Benefits in Smog Check Overhaul : Pollution: Test-only centers ordered by the EPA would create 8,378 jobs, economic report says. Opponents of the federal plan dispute the claims.

Overhauling California’s Smog Check program as ordered by the Clinton Administration would boost the state’s economy by $2.1 billion and create 8,378 full-time jobs by 2002, economic consultants claim in a new report.

Funded by the American Lung Assn., the economic study contradicts the fears of Gov. Pete Wilson and state lawmakers who oppose the federal effort, which would create a new network of test-only centers for checking California cars for excess emissions. State leaders have long argued that such a program would put thousands of people out of work at 9,000 private Smog Check stations that currently both conduct tests and repair vehicles that fail.

The consultants, with SRI International of Menlo Park, concluded that 598 of the nearly 1,600 Smog Check mechanics and technicians would lose jobs under the federal proposal. But they maintain that the loss would be more than offset because 2,575 new inspectors and 1,634 mechanics would be needed to conduct “more stringent and thorough” tests and repairs under the federal plan. The study is to be released at a Sacramento press conference today.

The consultants also conclude that 4,561 jobs would be created to construct the inspection stations. The net gain to the economy between 1994 and 2002 would reach $2.1 billion, including $805 million in construction and start-up of the new test stations, the report says.

“Building the network of inspection stations . . . would have an immediate positive economic impact in California,” the consultants say. “Operation of the 130-station network would create ongoing employment and economic activity.”

The group’s findings are certain to be controversial because the battle, which pits the Clinton Administration against a bipartisan group of California lawmakers and Wilson, still is being waged over how to overhaul the state program.

Opponents of the federal plan on Wednesday had not yet seen the study, but said they remain dubious about its claims. They say separating tests from repairs not only would harm the car-testing industry but also would inconvenience motorists.

As proposed by the U.S. Environmental Protection Agency, the new Smog Check system would have California motorists take their cars to privately owned emissions testing centers that are overseen by state contracts. Vehicles needing repairs then would be taken to regular mechanics. The EPA says the change is necessary to cut down on fraud in the repair business.

But service station owners vehemently oppose that proposal, and state legislators and Wilson defied the EPA by passing a law to keep the test and repair stations intact and crack down on fraud with extra policing of mechanics and random roadside testing of cars. The new program is supposed to begin next January.

For months, the EPA has threatened to impose economic sanctions on the state for defying its order and violating the federal Clean Air Act. The EPA started--and then abruptly stopped--the process of freezing millions of dollars in federal highway funds. Clinton Administration officials say they stopped the sanctions process because it would hurt Los Angeles’ earthquake recovery efforts.

In the meantime, several other states with auto inspection programs, including Nevada and New York, also have defied the EPA order because they are awaiting resolution of the California debate.

Representatives of the lung association, who support the EPA approach, say they hired SRI International a few months ago to try to settle the debate over the economic impact.

“There has been so much misinformation floating around in Sacramento in terms of whether this (EPA proposal) is really a dreadful thing for the small gas station or whether it is opening up a whole new world of test and repair of vehicles. This shows the latter is true--that it is a boon to the economy,” said Gladys Meade, a clean-air activist with the lung association.

But Charlie Peters, who represents an association of mechanics, said the test-only centers would hurt the overall industry and only generate revenue for the few government contractors who would operate them. Peters opposes both the EPA plan and the new state law, saying the emphasis should not be on where the tests occur but on establishing standards for the repairs.

“Tell me about all the jobs it will create, because I have difficulty in picturing those. It’s a 30-second test and it won’t lead to increased repairs. The repair industry just gets a huge nothing,” he said.