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

Remote OBD OBD tests can be conducted remotely on 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

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

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

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.

Equipped Vehicles 6

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

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

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

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

MIL On Rates Percent of Trips 11

Thank You! Questions? 12