Being emissions "legal" and passing the local emissions test/getting an emissions sticker are usually 2 entirely different things. For suppliers selling parts, claiming it to be emissions legal usually involves the part having gone through the testing required to get a CARB (California Air Resources Board) number. It's quite expensive for a manufacturer/supplier to do this, and in most cases it's easier for the manufacturer/supplier to simply mark their parts with the "This part intended for off-road use only and is not to be used on any vehicle driven on public roads...." blah, blah, blah -- words to that effect, and then let the buyer take the risk on how the part is gonna be used. Ford Racing has changed their catalog recently - if you look at the last few years catalogs, fewer and fewer parts have the 'emissions legal' stamp. So when they say their crate engines aren't emissions legal, it means you can't legitimately look your emissions inspector in the eye and say you've got CARB certificates for all the parts in the engine. However, many areas don't ask you - they just run a sniffer. And if you pass the sniffer, you get the sticker. In that case, you may 'pass emissions', but you wouldn't be emissions 'legal' because the parts used in the engine aren't qualified for it. In some places there's just a visual inspection - if the inspector doesn't know much about the vehicle, they may just look for cats, air pumps, egr, stuff like that - and if it's all there to their satisfaction you get a sticker. Once again, depending on the inspector, you may get a sticker, but not be legal. Some places do a visual and a sniffer, and they have inspectors who know quite a bit about the way these cars are modded. They may ask for CARB numbers on certain parts - or ask you what you've modified inside and out - and if the parts you used have CARB numbers. Some folks supply numbers from parts, even though they've actually got a different part in the car (how are they gonna check to see what cam you've got?) So you see, it's all over the board.
What FRPP is really telling you is that they're not gonna take any liability associated with whether that engine is emissions legal, will pass any type of emissions test or has emissions legal parts in it. They're leaving all that risk up to the buyer. As to whether their B-cam, X-headed motor will pass with all the emissions stuff hooked up (cats, air pump, egr) -- I have no idea because I don't know what the testing criteria are in the Phoenix area. Your best bet is to understand exactly what the techs in Phoenix are looking for (and it can vary from person to person and testing station to testing station, state to state, county to county), and to find other folks in your area with a similar engine and see what they did to pass the test - and exactly where and who did the inspection on it. Billy-Bob might've passed it at Station A when Vern, his sister's cousin did the inspection with a wink; you go to Station B, and get inspector Bubba who caught you in a bar with his wife the night before and the outcome may be different. You see what I mean - there's not a one size fits all answer to any emissions issue/question. And once again - just because they passed the test and got a sticker doesn't mean they're emissions legal. And just because you use all emissions legal parts doesn't guarantee it'll pass the sniffer - state of tune is critical too. Aren't you glad there's a straightforward answer?