So that hose is supposed to be dangling (unattached to anything on one end)?
I think the egr system needs a rebuild anyways, I'm failing smog because of high HC. I plan on running through the emissions system tonight and retesting (for the forth time) the smog tomorrow.
I bet you ANYTHING that if you at least changed out your CAT, you'd pass. I'd remove it after you passed and then go over all the smog stuff.