1. ILLINOIS’ VEHICLE INSPECTION AND MAINTENANCE PROGRAM TRANSITIONING TO A NEW TESTING CONTRACTOR (Spring 2007 – Spring 2008) Presentation to: East-West Gateway Air Quality Advisory Committee May 22, 2008 Chris Demeroukas Manager, Division of Mobile Source Programs, Bureau of Air Illinois Environmental Protection Agency

2. 2 Overview  Illinois Program:  Centralized Program - to April 30, 2008 -Contractor: Envirotest Illinois, Inc.  New Program Design/Bidding Process – 2004-2007  New “Hybrid” Program – May 1, 2008 Onward - Main Contractor: Applus Technologies, Inc.  Implementation Issues  Q & A

3. 3 Illinois Program to April 30, 2008: Centralized Program – Contractor: Envirotest  Northeastern Illinois and Metro-East St. Louis Areas  Centralized, Test-Only Network  27 Stations - 107 Lanes  Test Volume -~2 million test per year (to Jan. 2007) -~1.7 million tests per year (beginning Feb. 2007)  Biennial test frequency w. 4-year new car “exemption”  1996 and Newer Passenger cars, LDT and HDV (beginning Feb. 1, 2007)  Test types: - OBD - Idle - Gas cap  Other elements:  “ Free test”(i.e., no direct motorist fee)  Cost: approx. $21 per test to 2006, $13 per test for Feb. 2007- Apr. 2008  Converted to “Registration Denial” Enforcement January 1, 2008

4. 4 New Illinois Program Design: Request for Proposals Development/Bidding Process - 2004 to 2007  New Program Goals:  Optimize the program to provide CAA required emission reductions - Provide significant share of reductions necessary to reach attainment of the 8-hour NAAQS - Meet applicable performance standards  Operate at a significantly reduced cost - Operate within current funding constraints - No direct motorist fee  Develop specifications that provides opportunity for competitively bidding the project

5. 5 New Illinois Program Design: Request for Proposals Development/Bidding Process - 2004 to 2007 (con’t)  Bidding Specifications to Meet Goals:  Range of Possible Test Networks Increased -Minimally require a “full-service” core of testing stations  Increased Test System Automation -Automated VID access -Use of bar code scanners and other tools to minimize data entry and testing errors  Enhanced Test Quality Assurance Features -Contractor required to incorporate features to identify fraud -Video surveillance image capture for each test  Improved VID Access/Support -Web-based, include support for VIN decoding, DLC locators, Exception tables

6. 6 New Illinois Program Design: Request for Proposals Development/Bidding Process - 2004 to 2007 (con’t)  Bidding Specifications to Meet Goals (con’t):  Enhanced Customer Information System - Web-based - Station locations - Current wait times - Repair facility performance  Provisions for contractor support for fleet-self testing  OBD Self-service pilot program (three locations)  Simplified contractor reimbursement formula  Five-year term with allowance for two one-year extensions

7. 7 Illinois Program – May 1, 2008 Onward: “Hybrid” Program – Main Contractor: Applus Technologies, Inc.  Network:  Centralized Stations (17 total) -9 Full Service -5 OBD Only  Decentralized Stations (approx. 38 total) -Appointment-only  Other -Support for fleet testing, self-service kiosks  Technology:  Met requirements of Request For Proposals  Exceeded certain requirements: - Robust, web-based data and video transfer system (“I/M Dashboard”) - High level of fraud prevention features (vehicle “fingerprinting”, inspector iris scans prior to each test, pictures and video of each test stored, etc.). - Highly developed and configurable testing software – able to make improvements/corrections quickly  Cost/Term:  $6.95/test – per test cost does not change over the life of the contract  Savings of approx. $30 million/year as compared to centralized, IM240- based program  5 years of testing, 2 option years (at state’s discretion)

8. 8 Illinois Program Implementation Issues  Start-Up Issues:  Network Design/Development -Centralized Stations – build or purchase? – when? -Decentralized Stations – integrating franchisees into contractor’s system / meeting state data and security requirements  Software Development -Possibly more complex than contractor anticipated -Significant data migration transition issues from prior contractor

9. 9 Illinois Program Implementation Issues (con’t)  Remaining Issues:  Database clean-up/access/software issues  Finalizing Remaining Centralized Facilities - Two left to complete – expected to be within next two weeks.

10. 10 Wrap-Up  Q & A  Thank You