N.Y. Comp. Codes R. & Regs. tit. 15, § 79.25 – OBD II emissions inspection waiver.

(a) If a vehicle fails, after proper repair, the reinspection of the emissions portion, a certificate of inspection must be offered by the official emissions inspection station if all of the following conditions are met:
1. (1) The safety inspection has been passed.
2. (2) All emissions control devices have passed inspection. The cost for replacement of missing emissions control devices, safety items or warranty repairs does not count towards the emissions waiver cost limits.
3. (3) Repairs and adjustments have been properly made and documented and cost at least $450, based on the cost of such repairs if performed in 1989. Provided, however, that the waiver amount will be adjusted to account for increases in the Consumer Price Index (CPI) since January 1989 and will be adjusted each year in accordance with the CPI.
(b) If all of the above conditions are met, the CVIS will allow the inspector to issue an inspection certificate for the vehicle. When issuing a "safety/emissions" sticker VS-1082SE, the inspector must check the "repair waiver issued" box on the reverse side of the sticker and punch the appropriate expiration month. The appropriate CVIS will print a waiver certification form that must be filled out by the station, and signed by both the customer and the certified inspector. The station must attach the following documentation to the waiver certification form: copies of invoices and receipts for all of the diagnostic and repair work performed and used to qualify for the waiver; copies of all vehicle inspection receipts for the initial emissions inspection failure and all subsequent emissions inspection failures. This documentation must be kept by the station for two years for possible review by NYS.
(c) The commissioner or an agent of the commissioner reserves the right to inspect a vehicle before or after the waiver is issued to verify that proper repairs have been made and have been documented, including documentation of diagnosis procedures. The repair cost must meet the minimum waiver cost as calculated in paragraph (a)(3) of this section. Repairs made to qualify for the waiver must address the reason for the emissions failure and follow acknowledged industry standards for diagnosis and repair.
(d) Official inspection stations fleet (see section 79.15 of this Part) may only apply the cost of parts towards a waiver; no labor may be applied. All diagnosis and repairs must be documented, as described in subdivision (c) of this section.
(e) Vehicles sold by a dealer that must be inspected prior to delivery are not eligible for a waiver.