We got a new 2005 Prius a few weeks ago, and it suddenly occurred to me "I wonder if this car needs a Calif. smog check every two years". The idea seems ludacrous, but remember we are talking about government, it doesn't have to make sense. How could they even do the smog check, since the car won't idle? Does DMV know it is a hybrid, and therefore never sends you the biannual notice to get a smog check?
It is possible by using the scan tool or by doing a dance to put the car into diagnostic mode, where the traction system is off, and engine constantly runs at on of 3 or 4 speeds, depending on position of accellerator. I don't know if the inspection locations would be aware how to do this. As for being exempt, I think I saw that it was (for now) in a thread or two, but I am not in a location that it is required, so I don't know for sure.
Please note the following: " Hybrid vehicles that use both gasoline and electricity are exempt from smog certification until 2011." From: http://www.dmv.ca.gov/vr/smogfaq.htm