On-Board Diagnostics for emissions-related components require the monitoring of the catalytic converter performance. Currently, the dual Exhaust Gas Oxygen (EGO) sensor method is the only proven method for monitoring the catalyst performance for hydrocarbons (HC). The premise for using the dual oxygen sensor method is that a catalyst with good oxygen storage capacity (OSC) will perform better than a catalyst with lower OSC. A statistical relationship has been developed to correlate HC performance with changes in OSC.The current algorithms are susceptible to false illumination of the Malfunction Indication Light (MIL) due to: 1. The accuracy with which the diagnostic algorithm can predict a catalyst malfunction condition, and 2. The precision with which the algorithm can consistently predict a malfunction. A new algorithm has been developed that provides a significant improvement in correlation between the EGO sensor signals and hydrocarbon emissions.