Its true but its usually for repairs that will make you pass smog and only if the repairs are over a certain $ amount and you could prove you cant afford it. Most all the smog stations have it posted up somwhere and best bet is to go there for more info.
The Breathe Easier program is sponsored by the governor's office and facilitated through the Consumer Assistance Program (CAP). CAP is 2 parts, a retirement program and a repair program. If your car is due for biennial smog and fails, the state will pay $1000 to retire (not really for us, unless you have some junker that is really not worth the $). Same scenario as above, but the state will subsidize up to $500 to repair your failing vehicle if it is referred to test-only or your household meets a certain income threshhold. The co-pay for test only is $100 and the copay for income eligible is $20. You may obtain an application from your local test only station, Bureau of Automotive Repair field office or by calling 1-800-952-5210. If my car failed, I would certainly take advantage of that program.