# First Annual Oversight Report of the Decentralized Gateway Vehicle Inspection Program

Department of Natural Resources Division of Environmental Quality Missouri State Highway Patrol Air Pollution Control Program Motor Vehicle Inspection Division



## November 20082 Table of Contents

Introduction................................................................................................................... ...................3 Interagency Agreement.......................................................................................................... ..........3 Station Licensing .............................................................................................................. ...............3 Inspection Data ................................................................................................................ ................3

Decentralized Emissions I/M Rule ............................................................................................... ...4 Oversight Methods.............................................................................................................. .............5 Real Time Inspection Data/Pap erless Inspection Verification ................................5 Digital Cameras .......................................................................................................5 Bulletin Messaging and Documents Menu..............................................................5 Laptop Audit Computers with Wireless Internet Access.........................................6 Emissions Waivers and Exemptions........................................................................6

Consumer Protection Tec hnical Service Contracts..................................................6 Fingerprint Readers..................................................................................................7 Trigger Reports ........................................................................................................7 Equipment Lockouts and License Suspensions .......................................................8

Federal Prosecutions ................................................................................................8 Oversight Results.............................................................................................................. ...............8

Conclusion ..................................................................................................................... ..................9

List of Acronyms

EAV ................................................................................................Environmental Assistance Vis it GVIP ..................................................................................... Gateway Vehicle Inspection Program I/M............................................................................................................... Inspection/Ma intenance MDAS..............................................................................Missouri Decentralized Analyzer System MSHP............................................................................................... Missouri State Highway Patro l OBD ...............................................................................................................On-Board Diag nostics VID ......................................................................................................Vehicle Inspection Dat abase

VIN .................................................................................................. Vehicle Identification Num ber VIR...........................................................................................................Vehicle Inspectio n Report STI.................................................................................................................. SysTech In ternational

For more copies of this report, contact the Mi ssouri Department of Na tural Resources Gateway Vehicle Inspection Program at P.O. Box 176, Jefferson City, MO 65102-0176.3 

### Introduction

The vehicle emissions inspection and maintenan ce (I/M) program is a federally required air pollution control strategy in the St. Louis ozone nonattainment area, made up of the counties of Franklin, Jefferson, St. Charles, an d St. Louis, and the City of St. Louis. The I/M program is designed to reduce ground-level ozone-forming emi ssions from passenger vehicles and trucks by accurately identifying the vehicles that have em issions problems and requiring their repair prior to registration renewal. Ground-level ozone is a strong oxidizing chemical that when breathed affects the lung function of ever yone, especially the young, the elderl y and those with respiratory illnesses such as asthma, emphysema, and bronchitis.

Pursuant to paragraph 643.337.2, RSMo, the Missouri Department of Natural Resources and the Missouri State Highway Patrol (M SHP) are issuing a jo int annual report to the Missouri General Assembly on the status of the oversight me asures implemented for the decentralized I/M program called the Gateway Vehicle Inspection Program (GVIP). This report summarizes the data collected regarding compliance and incidents of fraud during the firs t year of the Gateway Vehicle Inspection Program, which began oper ations on October 1, 2007. This report also provides our joint recommendations for oversight improvements to the GVIP.



### Interagency Agreement

To comply with paragraphs 643.303.10 and 643.337.1, RSMo, the Department of Natural Resources and MSHP entered into an interagency agreement on July 3, 2007. The department is the lead agency with respect to motor vehicle emissions inspections, and the MSHP is the lead agency with respect to motor vehicle safety insp ections. This interagency agreement defines the responsibilities and coordinate s the oversight activities of both agencies for the shared

administration of the GVIP.



### Station Licensing

As of September 30, 2008, the MS HP had issued licenses to 734 public GVIP inspection stations and 19 private or government GVIP inspection stations. The MS HP had licensed approximately 4,000 emissions inspector/mechanics who are em ployed by the GVIP stations. The state’s contractor, SysTech International (STI), provided no-cost training for emissions inspector/mechanics on a monthly basis at Ra nken Technical College in St. Louis City.

For a current list of licensed GVIP inspection sta tions, sorted by city or by zip code, please visit

the web site: http://www.dnr.mo.gov/gatew ayvip/repair/index.html

.



### Inspection Data

Each licensed GVIP station performs vehicle safety and emissions inspections using at least one purchased inspection analyzer from STI. Th ese Missouri Decentralized Analyzer Systems (MDAS) send inspection information on a real time ba sis from the inspection stations directly to the GVIP vehicle inspection databa se (VID). The Department of Natural Resources, MSHP, the Department of Revenue and local license offi ces all have access to the VID through secure,

dedicated Internet connections.4 The GVIP began collecting vehicle emissions a nd safety inspection data on October 1, 2007. 1996 and newer model year light-duty gasoline- powered and 1997 and newer model year lightduty diesel-powered vehicles are subject to bien nial emissions inspections. All model years and weight classes of vehicles are subjec t to biennial safety inspections.

Through September 30, 2008, 758,859 emissions inspection records and 911,160 safety inspection records were collected from GVIP st ations. Emissions inspections made up 83.3 percent of the total inspecti on volume at GVIP stations during this first year. Through September 30, 2008, GVIP collected 77,803 vehicle em issions inspection fa ilure records, a 10.3 percent emissions failure rate. The department issued 389 co st based repair waivers and 219 technical waivers, a 0.8 percent waiver rate. This data indicates that over 99 percent of vehicles that failed the emissions inspection were either repaired to pass the on-board diagnostics (OBD) test or not registered in the program area.

In addition to exempting 1995 and older model year light-duty gasoline-powered and 1996 and older model year light-duty diesel-powered ve hicles, the GVIP was de signed to increase the

convenience of vehicle emissions inspections with mileage-based exemption options as well as lower cost waiver limits when compared to the previous vehicle emissions inspection program.

Through September 30, 2008, the department issu ed 1,852 mileage-based exemptions to twoyear old vehicles driven fewer than 40,000 miles at the first required sa fety inspection and to older vehicles driven fewer than 12,000 miles be tween biennial safety inspections. Retired motorists, public transportation users, carpoolers, and vehicle coll ectors have all benefited from the convenience of these new emissions mileage-ba sed exemption options. The department also issued 248 out of area exemptions to vehicles that are register ed in but operated exclusively

outside the St. Louis oz one nonattainment area.



### Decentralized Emissions I/M Rule

The Missouri Air Conservation Commission (M ACC) promulgated 10 CSR 10-5.381 On-Board Diagnostics Motor Vehicle Emissions Inspec tions, effective August 30, 2007. This rule established the state regulations that the department and MSHP currently use to oversee and enforce the GVIP inspection requirements.

On December 4, 2008, the MACC will be holding a public hearing regarding a rule amendment to 10 CSR 10-5.381 that proposes to clarify the enforcement procedures and penalties for the GVIP. The department’s Air Pollution Control Pr ogram drafted this proposed rule amendment

in close consultation with th e MSHP Motor Vehicle Inspection Division. After the public hearing, if the rule amendment is adopted by the MACC in February 2009, it will become effective on May 30, 2009. If ad opted, this rule will enable the department and MSHP to improve our joint enforcement activities to ensu re that safety and emissions inspections and repairs are conducted with the best interest of the public in mind.5 

### Oversight Methods

Real Time Inspection Data/Pape rless Inspection Verification Each MDAS unit is connected to the VID using a dedicated Internet connection at the inspection station. Each licensed GVIP inspect ion station is responsible for th e cost of maintaining either a low-speed or high-speed Internet connection for the MDAS units they have purchased. At the completion of each vehicle inspection, the MDAS software automatically uploads the inspection data to the VID, where it then becomes immedi ately available to the Department of Revenue contract license offices and online registra tion system for inspection verification.

As a result of this real time paperless in spection verification syst em, GVIP has simplified registration verification and increased registrati on integrity for St. Loui s area Department of

Revenue contract license offices . Contract license offices now have the ability to quickly identify fraudulent vehicle inspection reports (VIR s) that motorists attempt to use to bypass the vehicle inspection requirements. Contract license offices now contact DEQ as soon as such attempts have been prevented so that the department and MSHP can initiate immediate investigation of the source of these fraudulent VIRs. The depa rtment has already contacted

motorists who have tried to use fraudulent vehi cle inspection reports and required legitimate inspections to be performed to prevent the su spension of fraudulently obtained registrations.

Digital Cameras Each MDAS unit is equipped with a detachable digital camera. The M DAS software requires licensed inspector/mechanics to photograph the rear license plate, vehicl e identification number (VIN) on the dashboard, a nd the odometer. An example of th ese three photographs is provided below. These photographs are attached to the vehicle inspection record, uploaded to the VID, and available for state agency review. As a result, the department and MSHP can be sure that the vehicle being inspected was phys ically present, and that th e information on the vehicle inspection report is accurate.

Rear license plate Vehicle Id entification Number Odometer

Bulletin Messaging and Documents Menu Each MDAS unit is equipped with a messaging sy stem that allows STI, the department, and

MSHP to contact individual GVIP stations or all GVIP stations to inform the inspector/mechanics about inspection procedures, billing reminders, and software updates. This bulletin messaging system also allows STI, th e department, and MSHP to quickly and costefficiently communicate with over 700 licen sed GVIP stations and over 4000 inspectors.

Each MDAS unit is equipped with a Documents menu, a digital library th at stores GVIP state statutes, rules, and fact sheets, as well as comme nt, waiver and exemption forms. This feature6 allows GVIP stations to print public informati on that directly assists motorists with GVIP compliance. As a result of the Documents menu feature of the MDAS, GVIP has simplified the distribution of public information to insp ection stations and to vehicle owners.

Laptop Audit Computers with Wireless Internet Access Per their contract with the state, STI has provide d the department and MSHP auditors with laptop audit computers that have MDAS lane software as well as customized auditing software. These laptops are also equipped with wireless Internetaccess cards that allow department and MSHP auditors to securely access the VID and conduc t environmental assistance visits (EAVs) and overt and covert audits. Each MDAS unit is also equipped with audit software so that if the laptop audit computers are unavailable or can’t r eceive a wireless signal, department and MSHP

auditors can still secure ly access the VID and conduct their EAVs and audits.

These laptop audit computers allow department and MSHP auditors to review all inspection records for all stations and inspector/mechanics while in the field. DEQ and MSHP auditing managers can review audit results on the VID as soon as the EAVs or audits are completed, and they can generate summary audit reports from the VID. As a result of these laptop audit computers with wireless Internet access, GVIP has cost-effective inspection station auditing and audit reporting.

Emissions Waivers and Exemptions The department is responsible for issuing the co st-based emissions waivers and out of area and mileage-based emissions exemptions described earli er in this report. Motorists whose vehicles fail the emissions inspection must repair their vehicl e, retest their vehicle, and if the vehicle is still failing, may then apply to the department for a cost-based waiver. Motorists must have spent more than the minimum required for the type of cost-based waiver being requested, and the vehicle must pass certain portions of the OBD test in order for the cost-based waiver to be

issued. Motorists whose vehicles are bein g driven exclusively outside of the ozone nonattainment area may apply to the department for an out of area exemption. Two-year old vehicles have fewer than 40,000 miles at the firs t biennial safety insp ection or whose older vehicles have fewer than 12,000 miles between bienni al safety inspections are statutorily exempt from an emissions inspection, provided that mo torists apply to the department for a mileagebased exemption.

The GVIP VID allows the departme nt to review inspection record s pertaining to cost-based and out of area waivers and mileage exemptions and approve or deny waiver and exemption requests in a timely fashion. As a result of these VID f eatures, most mileage exemptions and out of area waivers are issued within one business day, and mo st cost-based waivers ar e issued within five business days. Just like vehicle inspection results, as s oon as the department issues waivers or exemptions, these waivers and exemptions are available for real time verification by the Department of Revenue contract licens e offices and online registration system.

Consumer Protection Tec hnical Service Contracts GVIP has been designed to ensure maximum insp ection and repair integrity. Since cost-based waivers allow a failing vehicle to be registered and operated in a failing condition for up to another two years, the department has designed a consumer protection system to ensure that: 1)7 emissions repairs that motorists pa y for prior to applying for a cost-based waiver are appropriate for the emissions failure, and 2) failed vehicles show an improvement after repairs prior to receiving a cost-based waiver.

Through negotiated contracts, the department has retained the services of eight local vehicle repair facilities, two in St. L ouis City, four in St. Louis Count y, one in St. Charles County, and one in Jefferson County. These eight repair faci lities serve as consum er protection technical service centers, and are paid on an as needed basi s to: 1) review vehicl es and repair receipts after repairs to ensure that vehicle owners w ho are seeking cost-based waivers have received qualified repairs that are cost-e ffective and appropriate for the emissions failure, and/or 2) accurately diagnose vehicles that have been repaired but haven’t shown an improvement.

As a result of these consumer protection technical service contracts, th e department has been able to deny waiver requests on the basis of an independent professiona l repair technician’s review of the repairs wh en motorists have paid for repairs that were not perf ormed properly or appropriate for the failure. In some cases, the independent analysis and review by one of these consumer protection technical serv ice centers has determined that the repairs paid for were not necessary or were not performed as billed. After these reviews, the department has worked with the shops that initially performe d the repairs to provide the moto rists with either additional free repairs or reimbursement for the ineffective repairs that they had paid for. In other cases, the independent analysis and review by one of these consumer prot ection technical service centers has been able to provide motorists with accurate diagnostic information on how best to repair their vehicle to pass the OBD test . Both results have reduced the number of cost-based waivers that have been issued, thereby minimizing the air quality effect of waived vehicles while maximizing the number of fully repaired vehicles.

Fingerprint Readers Each MDAS is equipped with a fingerprint reader. The MDAS software requires licensed inspector/mechanics to scan one finger prior to beginning each inspection. The scanned fingerprint is compared to the fingerprint that is stored on the MDAS for that inspector/ mechanic. If the fingerprints match, then the iden tity of the inspector/mechanic is confirmed and the inspection is allowed to proceed. If the fingerprints do not match, then the inspector/ mechanic cannot perform the vehicle inspection.

As a result of this technology, the department and MSHP have both a unique way of verifying the identity of each licensed inspector/mechanic and a cost-effective and fraud-resistant way to ensure that the inspector/mechan ic was physically present and re sponsible for th e inspections that the VID shows they conducted. Fingerprint readers, in combin ation with the trigger reports described below, have dramatically improved enforcement efficiency and capability by quickly pinpointing and documenting the inspector/mechan ics who are conducting improper inspections.

Trigger Reports As soon as the inspection data is uploaded by the MDAS systems to the VID, the inspection data is available to the department and MSHP via an Internet-based Reporting Suite. This reporting software can be accessed from the department a nd MSHP offices as well as the auditing laptop computers with wireless Internet cards. Th e Reporting Suite has a co mbination of standard8 reports to review GVIP records and “trigger reports” that automa tically identify emissions or safety inspection patterns that are inconsistent with state regulations. These trigger reports were designed by STI, the department and MSHP so th at as soon as improper inspections occur, the evidence of that activity is reco rded and compiled into a report, and DEQ and MSHP can initiate immediate investigation. As a result of the tr igger reports on the VID, GVIP has streamlined and increased the efficiency of overt and covert aud its as well as the enfor cement activities of the department and MSHP.

For example, the OBD VIN Mismatch Report has re vealed “clean scanning” violations occurring in several stations. Clean scanning is the ille gal act of connecting the MDAS OBD cable to the computer of a vehicle other than the vehi cle photographed and iden tified on the vehicle inspection report, with the inte nt of bypassing the required OBD test procedure for the vehicle being inspected. By comparing the VIN that the inspector/mechanic entered with the VIN that the vehicle reported through its OBD system, th e OBD VIN Mismatch Report has efficiently identified the inspector/mechanics who have cl ean scanned vehicles. Once these cases were investigated and confirmed, MSHP took immediate enforcement action, which is described

below.

Equipment Lockouts and License Suspensions Because MDAS units must stay connected with the VID to perform vehicle inspections, the department and MSHP have the ability to a pply an electronic “lockout” that removes the permission of an inspector/mechanic or a GVIP st ation from using their MDAS. This lockout is an effective tool that allows the department and MSHP to prevent an inspection station from performing future improper inspections.

In addition to having their MDAS systems locked out from performing inspections, inspection

stations that have been found to be involved with clean scanning vehicles or other improper inspection activities have had thei r inspection licenses suspended fo r up to one year. Lockouts are removed once the license suspension for such act ivity has been served. As a result of the equipment lockouts and license suspensions, GVIP has been able to limit fraudulent vehicle inspections as soon as they have been detected.

Federal Prosecutions

Because the federal Clean Air Act mandates that ozone nonattainment areas implement vehicle emissions I/M programs, inspector/mechanics who engage in inspection fraud activities such as clean scanning can be prosecuted for violating th e Clean Air Act. The department and MSHP

have collaborated with the U.S. Environmental Protection Agency Office of Criminal Investigations and the U.S. Atto rney’s Office on investigations of vehicle inspection fraud and inspection document falsification. On Septembe r 24, 2008, a federal grand jury indicted three inspector/mechanics from two inspection statio ns, American Automotive Sales & Service and Sure Start Tire and Battery, with Clean Air Act vi olations. These individua ls have been charged with intentionally conducting fraudulent vehi cle emissions inspecti ons via clean scanning.



### Oversight Results

In its first year of operations, the GVIP has improved vehicle regi stration integrity by providing all Department of Revenue contract license o ffices with a real time verification system for9 vehicle safety and emissions inspection results w ithout the use of paper VIRs. Because all GVIP inspection results are available on a real time basis to the Department of Revenue and local contract license offices through a secure, dedicated Internet conn ection, the GVIP is now able to instantly assure the Department of Revenue of the validity of in spection records. This system has prevented multiple attempts of document registration fraud and led to the investigation and

identification of the individua ls who were producing fraudulen t vehicle inspection reports.

In its first year of operations , the GVIP has implemented an im proved auditing system that has streamlined the department and MSHP oversight of vehicle emissions and safety inspections.

The combined effect of all of the integrated oversight methods described above is that DEQ and MSHP can cost-effectively audit, detect, enforce, and then prevent further emissions and safety inspection fraud.

As a direct result of GVIP oversight methods desc ribed in this report, the MSHP has suspended or revoked more than 30 inspec tor/mechanic licenses for “clean s canning” violations. Additional investigations are underway, and violation report s are being submitted for further action as once the investigations become fi nalized. Through September 30, 2008, MSHP has suspended or revoked the following station licenses:

St. Louis City American Automotive Sales & Service, 1457 South Vandeventer, 63110, License #115368 Bill’s Automotive, 4239 East Martin Luther King Drive, 63113, License #115100 Century Tire, 4701 Gravois Road, 63116, License #115016 Joseph Leake Service, 4 582 Martin Luther King Drive, 63113, License #115458 OK Used Cars, 6900 Noonan, 63143, License #115077 Southside Motors, 4700 Eichelberger, 63116, License #115367

St. Louis County Joe Bess Automotive, 242 Lemay Ferry Road, 63125, License #096084 J & M Service, 2020 Patterson, 63031, License #096191 Precision Automotive, 10484 West Florissant, 63136, License #096405 Sure Start Tire and Battery, 6767 St. Charles Rock Road, 63133, License #096265



### Conclusion

In summary, the GVIP oversight measures descri bed in this report are working as designed and, as the program matures, will have an even gr eater potential for compliance and enforcement capabilities. The department and MSHP will con tinue to jointly ensure compliance with state vehicle inspection statutes and ru les, remove violators from the program, and work for the public health and safety by overseeing an inspection pr ogram with proven value and integrity. Lastly, both agencies will also continue working with ST I to enhance the oversight tools needed so that the department and MSHP can identify more vi olations and improve enforcement capabilities.