NY Emissions--98 Rav4--help!

Has anyone had a problem with a '98 Rav4L and NY State emssions?
Bought a '98 Rav4 L 5 speed with 46000 miles in 2002. Check engine
light went on within a week of purch and I was told it was the oxygen
sensor ( which was coverd and replaced at no charge) Next major repair
was the Catalytic converter-- replaced by dealer. At 85000 miles
dealer told me I needed to replace the EGR valve-- and quoted $638.00
excluding labor! I took my repair business to a local.shop and paid
$238.00 for the same part, the check engine light has remained on. The
car now has 125,00 miles and runs well.
Shop tells me it may fail emissions and maybe I should buy a new car.
I would like to keep the car for 2 more years. Trade in value is
approx. $4500.00
How many O2 sensors does this car have? Any suggestions/estimates about
repair costs would be appreciated.

Alright, first you need to find out what your car is trying to tell you.
Most chain parts stores will retrieve stored trouble codes for free. Tell
us what codes you have, and we'll try to help.