California State Senate SENATOR RONALD S. CALDERON monte oes paneanipeteintar Vuieriere SeNare oisTm=t Reeeee August 25,2010 Governor Amneld Schwarzenegger Governor's Office, State Capitol Sacramento, CA 95814 Linda Adams, Secretary Cal/EPA P.O. Box 2815 Sacramento, CA 95812-2815 Lester Snow, Secretary Natural Resources Agency 1416 Ninth Street, Suite 1311 Sacramento, CA 95814 Subject: Slate Fire Marshal Decision to Remove Hold-Open Latches on VST Gasoline Dispensing Nozzles ‘Dear Governor Schwarzenegger, Secretary Adams and Secretary Snow: {thas come to our attention that the State Fire Marshal has ordered removal of hold-open latches from nczzles at approximately one-third ofthe states gasoline dispensing facilities (ever 3000 facilities) by October 15,2010. Thisis allegedly due to problems relating to the :malfunction of hold-open latches on a certain brand of nozzle manufactured by Vapor ‘Systems Technology (VST). The equipment manufacturer indicates that approximately 35,000 VST nozzles have been involved in over one billion fueling activities, and yet only thirteen incidents have been reported. We are concerned this overly-broad order will create significant hardships of those facilities ‘that were legally required to purchase and use the VST nozzles ineluding: ‘+ Customer frustration and anger over removal ofthe latches; ‘+ Increased liability as customers use “inventive”, non-authorized ways to overcome the lack of continuous nozale operation; ‘+ Loss of business as customers become aware of the inconvenience at VST-equipped stations; and '+ Possible charges for replacement or repair of the nozales.We understand that these nozzles were certified and mandated by a numberof state agencies, as part of the California Enhanced Vapor Recovery (EVR) program, including the California Air Resources Board (CARB) and the Office ofthe State Fire Marshal. We also ‘understand there is no specific timeline for a mechanical fix for this situation. Further, we are not aware of any certainty regarding the station owners’ financial responsibility in achieving equipment replacement or repair. We are informed by industry representatives that the removal of the hold open latches will create an equal or greater potential for customer safety, as customers attempt to overcome the lack of a hold open latch with various types of objects. Itis our understanding that facility owners incurred recent significant costs to upgrade their stations with the EVR equipment, ranging from $50,000 - $100,000 per station to eet the CARB EVR deadlines. These new problems will only add to the financial strain created by the EVR mandates. Based upon these circumstances we request the following immediate actions: 1) Immediate approval of an “enhanced inspection” alternative to the hold-open latch removal directive by the State Fire Marshal, We understand a solid framework for such a program, including frequent inspection of nozzles, recordkeeping of inspections and verification of inspection activities has been discussed by industry and government representatives, 2) A specific timelire for equipment replacement and /or repair should be issued as soon as possible. A determination of a station operator's potential financial responsibilty for ‘equipment repair and/or purchase also needs to be quickly communicated, 3) Anindependent, third-party audit should be commenced immediately to determine whether all nozzle components were subjected to full and rigorous testing, both during the agency certification process and by independent testing laboratories. We ask that you keep us informed of the progress on the actions we have recommended in this letter, Sincerely, fod Gm Ronald Calderon Senator, 30" Senate Districtfe ohee'm Buti Glona Negrete iad o 7 SSE ‘ \ De oom . a rren ‘“Frice. Dean Floree Lees Llput- Ny Gi Elaine Alguist Tra Rus Kin ba Ce). hy hbert Cedille Terry Hil] Con hh Triuan Aram bala j— Ylontin (Aewne Mathn Gorter ke. (ath. Brand Sim NielsenSignatu a Gully _ FA MiterSignature Printed Name heed Time MPfo—_ Cer Kesmen eS Vad Tite) ANTHon't Apasey Ten Beerghill Nel Hla Nethax. Fletcher Dose Aromssns —Daser D. Grenade L Villinesbs ty jae Cogdill tb He Kabob 4 i Hy pm)