You asked for information regarding several questions raised by a constituent regarding the change being made from a centralized emissions inspection program to a decentralized one using licensed motor vehicle dealers and repairers to perform inspections. Specifically, the questions involved how much the current centralized emissions inspection stations cost Connecticut when they were built, how they will be used in the future, what they will be sold for, how the state will supervise the new system, and how much emissions tests will cost under the new system.

The 25 centralized emissions inspection stations currently in use were not built by the state nor does the state own them. All of the emissions stations were built and equipped by the private contractor who operated the system for the state under the terms of the original contract entered into in 1983 and several subsequent extensions and revisions. The contractor (currently known as Envirotest) also had to acquire all the land for the stations, except for the station in Darien which was built by Envirotest on state-owned property.

Under the terms of the contract, Envirotest was paid a portion of the test fees it collected according to a negotiated fee schedule that was included in the contract. Thus, each month, Envirotest receives a fixed amount for each documented test it conducts. In effect, the remitted test fees serve to amortize Envirotest's original capital investment in the facilities and equipment, pay operating costs, and produce a profit. The employees performing emissions inspections are Envirotest's not the state's. At various times, the fee provisions were renegotiated to cover changes to the program, such as adding additional facilities or services.

The contract with Envirotest will expire on July 1, 2002. When it expires, Envirotest will no longer perform emissions inspections for the state. Since the facilities, equipment, and land belong to Envirotest, it will be up to the company to decide what it wants to do with the properties or if it wants to sell them. The state will have no role in the decisions or in any subsequent use of the facilities.

Recently, the Department of Motor Vehicles (DMV) decided that it would replace the 25-station centralized system with a decentralized system using authorized motor vehicle dealers and repairers. It selected Agbar Technologies Inc. of Chicago Illinois as the contractor that will be responsible for implementing the new system. As of July 1, 2002, all emissions inspections will be suspended for as long as eight months to allow Agbar to get the new system in operation. Many of the details of the new program are still being negotiated by the DMV and Agbar. DMV is also currently reviewing proposals for a contractor to perform as the data management administrator for the new program. The data management administrator will be expected to assist DMV in monitoring Agbar as the system administrator, provide certain fraud prevention protections, and develop data links between the test locations and the DMV registration and other database files.

DMV is currently planning to have 300 or more dealers and repairers authorized to inspect vehicles under the new program. Under the current plan, it appears that Agbar will provide the testing equipment to the dealers and repairers who will perform the tests. Agbar will get part of the test fee the dealer or repairer collects from the vehicle owner. Current test fees ($ 20 for newer vehicles requiring a test every two years and $ 10 for older vehicles requiring annual tests) will not change under the new program.

The fraud control measures currently being planned for the new system include:

1. three cameras for video auditing each facility, including the ability for DMV or Agbar personnel to observe tests in progress and communicate with technicians doing the tests;

2. an iris scan identification capability to prevent test lane operators from sharing user identification codes and unauthorized people from conducting inspections in someone else's name;

3. two-dimensional bar codes and computer tracking software to keep track of emissions sticker inventories and detect possible fraudulent activity;

4. computer software and "data pattern analysis" to perform anti-fraud audits, and

5. covert facility inspections, audit cars, unannounced station inspections, and test document reviews.

JJF: eh