1. Remote OBD Here and Now Gene Tierney Opus Inspection Eric Berkobin Verizon Telematics

2. Remote OBD OBD tests can be conducted remotely on 1996+ vehicles using telematics EPA has established guidance Remote OBD offers ●Superior convenience to motorists ●Reduced transactional costs to state ●Solves OBD readiness problem ●Potential for lower test fees to motorists ●Potential additional emission credit 2

3. Usage Based Insurance What is it? ●Insurance companies are using telematics (typically cellular systems) to track driver behavior and adjust insurance rates ●Good drivers get lower rates ●All major insurance companies jumping in OBD status can be easily captured ●Can serve as official state OBD test ●Easy way to get benefits of Remote OBD 3

4. Verizon Telematics Formerly Hughes Telematics ●Purchased NetworkCar (now NetworkFleet)  Deep experience in telematics ●Working with major insurers  State Farm Insurance  AAA / ACP (No Cal, Mid Atlantic)  Others ●Working with auto manufacturers  Mercedes Benz  VW  Others 4

5. State Farm 5 Largest auto insurer in the U.S. Aggressively pursuing UBI Doing UBI in nearly all I/M states Verizon Telematics collects and processes data for State Farm, et al.

6. Equipped Vehicles 6

7. How Does It Work Verizon Telematics ●Equips vehicles for insurers ●Captures data from equipped vehicles Motorist has already chosen telematics ●Completely voluntary ●Next steps is to offer these motorists the option to get the OBD test done remotely Opus Inspection and Verizon Telematics teamed up to make this happen ●Looking for states ready to accept Remote OBD tests in lieu of a test station visit ●We will cooperate with current I/M contractor 7

8. Remote OBD Test Proposed Test Features ●Captures same data as standard OBD test ●As test date nears, notify motorist if MIL is on ●If on, report “failure” to Opus Inspection ●Monitor to see that MIL gets turned off ●Report final status to Opus Inspection ●Opus Inspection uploads test results to State VID All procedures comply with EPA guidance 8

9. Additional Features Verizon Telematics captures data on every trip Two options for States/motorists ●One Time Remote OBD  To match current I/M program requirement, only the data captured within the “test period” is relevant  Data from rest of year ignored for I/M purposes ●Continuous I/M  If State wishes, EPA guidance can be implemented to achieve continuous testing 9

10. Data Has Tremendous Potential Brief Example ●One month’s worth of trip data ●35 states covered in this analysis  States with less than 10,000 trips omitted ●15 non-I/M States ●17 I/M states (not statewide) ●3 I/M states (statewide) ●4,250,083 trips 10

11. MIL On Rates Percent of Trips 11

12. Thank You! Questions? 12