This isn't new, I've read articles on it (in California) over 20 years ago. Inspections work when a large percentage of your cars are emitting an excessive amount of pollutants. But as that percentage decreases, you end up wasting huge amounts of money.
Say an inspection costs $25 and 1 in 10 cars is not in compliance. You're basically paying $250 to detect each polluting car and require it be fixed. That's probably a worthwhile tradeoff.
Now fast-forward. After decades of inspections have successfully weeded out the worst-polluting cars, only 1 in say 1,000 cars is not in compliance. You're now siphoning $25,000 out of the economy to detect each polluting car. There's no way that's worth it.
California is pretty much already in that second state. 20 years ago the companies that make the emissions testing equipment suggested a much more financially sensible solution. Stop the inspections or reduce them to random lottery inspections which would hit each car on average every 10 years - the vast majority of cars are already clean enough and there's little to be gained from annual or bi-annual inspections. Instead, place detection equipment like used in TFA on places where cars pass by single-file, like freeway on-ramps. This equipment would automatically measure the emissions of each passing car (or truck), and if a particular car was dirty it would snap a photo of the license plate. If a car was flagged repeatedly at multiple stations, the State could then issue the owner a notice requiring him to fix it.
But the idea never got anywhere because the auto repair shops lobbied heavily against it. See, these inspections have become a billion dollar business, and they didn't want to lose that money. One person wasting money is another person making easy money.