That is his point. By not being exempt, he would have to have it smogged here in CA. In CA only 1975 and prior vehicles are smog exempt.
One would need to talk to the smog police, but for a non-exempt vehicle in CA it is my understanding that you can put a same year or newer engine in any vehicle. If the same year, it must still meet all original engine smog requirements. If a newer engine, it then must meet the standards of the newer engine. That is my situation. I am puttng an '06 Duramax into a s1976 FMC. After the transition I will have to pass 2006 standards for the Duramax and not the 1976 standards of the 440 that I am taking out.