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I've also seen a Euro 85/86 "smog" 32v motor as sold in some areas outside of the US, but its actually less compression and HP than the US 85/86.
The catch with Calif is that unless the car was previously registered in Calif, EPA if it recognizes any of the federalizing, only considers it a 49 state legal import. Usually what they want is to have the car re federalized by a Calif approved importer, which can run $10k easily and unpredictably.
A possible loophole are active duty military who have the car registered in another state and are transferred to Calif, but I don't know if that would make the car possible for them to sell or anybody else to register.
Other ways may be possible, but I haven't seen anybody actually do anything legal that works.
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