You may upgrade your Oldsmobile Cutlass engine to a later model but you must ensure you use all the emission components belonging to the newer engine. After the engine change is complete, your Cutlass will have to be inspected by a California State Referee. They will conduct a smog check.
The Referee will ensure that the job was done properly and that the new engine does not pollute. If all is well they will issue you a BAR label which will be placed somewhere on your vehicles chassis which will be an indication that the vehicle is California legal, and subsequent smog inspections can be performed at regular smog check stations.
We recommend you speak directly with a State Referee before beginning any work, and inquire on whether keeping the older transmission will be a problem. You can contact the referee by calling (800) 622-7733.