Exempt in California means you're not required to have a smog test performed to register your vehicle, even when the vehicle is bought/sold. And if you don't need to smog test for your registration, the only other way you'd need to have a smog test done is if you've been cited for being out of compliance (there are no yearly inspections here). But a 1975 vehicle is exempt from compliance, so, how would you be cited?
So I don't know what the EPA would do to enforce that law, or how someone would ever be in a position that the EPA would find out.
It may still be illegal to defeat or remove a catalytic converter on a 1975 vehicle if it came with one originally, but if you're not ever required to have a smog test or inspection on that vehicle, I don't know how anyone would find out.