What a bummer! Have you already visited a smog shop to get their thoughts? I think you will end up at the referee which is hard because they won't be letting anything slide. At least they would know exactly what's required. Local shop may not be knowledgeable on this situation. Were catalytic converters required in 79? I would imagine smog pump or EGR is required... There is a process in CA to obtain an exemption related to an engine swap. Never gone through it myself.
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