1. your leveling kit will be just fine. it is totally different from a body lift and will not affect the aem kit whatsoever.
2. unless you have a CARB number, you will not pass the visual inspection. it will pass the sniffer test just fine. most aem kits have "carb pending", but without an actual carb number, it's technically not legal. with this in mind, most kits out there are also "not legal" in CA b/c they do not carry a carb number. the only kit i can think of that might have a carb number is K&N, but i'm not sure. you can check out their website to see. a simple solution is to swap back to stock when you have to smog, but that won' be for another 5yrs
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btw, i've used their kits on other cars/trucks and i've always been happy with the quality and fit.