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I think the catalyic converter may be near the end of its useful life.
This is just guessing without additional information, but how many miles does it have on it?
Is it a Volvo cat or a replacement?
I believe that most replacements only have a 5 yr 50,000 mile warranty. Due to the increase in price of the precious metals, I believe that they do not have as much metal in them as they used to, and they don't last as long.
I failed my test last year with a 5 yr 50,000 mile replacement convertor that was reaching the end of its service life. Prior to that, I had the original convertor. The replacement convertor cleaned up the emissions to the point that the reading was only two digits, instead of four, like yours.
At least you passed this time.
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If it needs to be maintained, repaired or replaced on a 1990 240, I've probably done it. '90 240DL, 271K looking forward to 300K badge (or sticker??). >>You haven't really worked on a car until you draw blood<< :-}
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