8/8/2019 Latch Train Wreck Letter Final 8.24.10

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August 24, 2010

Enhanced Vapor Recovery - Train Wreck #2 

Members of the Legislature:

YET ANOTHER SIGNIFICANT REGULATORY CONCERN – This communication isrelated to the California Air Resources Board’s Enhanced Vapor Recovery (EVR) program,the very same program that created a major problem last year (April 1, 2009) when over half  of the state’s service stations were unable to meet a retrofit deadline for major and expensiveupgrades to their gasoline dispensing equipment. We appreciated the Legislature’s

involvement in getting that problem addressed with CARB and air pollution control districtsby allowing additional time for these stations to comply.

NEW PROBLEM – The State Fire Marshal (SFM) has issued a directive to remove hold-openlatches from gasoline pumps at service stations. These latches are a customer convenienceand were legally required by CARB. Approximately one-third of the state’s gasoline outletsare covered under the SFM directive. This order relates to hold-open nozzles manufacturedby a company named VST. The State Fire Marshal has determined there is a potential safetyissue with the new, mandated VST nozzles, as they may spray gasoline if the hold open latchmechanics fail.

SITUATION CREATED – Service station owner/operators, that were required to purchasethe VST hold-open nozzle (no other certified nozzles are currently available), are now goingto suffer further economic harm, loss of business and increased liability for having to use thisfaulty CARB-mandated nozzle. Stations owners ordered to remove the hold-open latchesare likely to see:

•  Customer frustration and anger over removal of the latches;

•  Increased liability as customers use “inventive”, non-authorized ways to overcome thelack of continuous nozzle operation;

Page 1 •CIOMA Letter; Gasoline Nozzle “Train Wreck” 8/24/2010

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•  Loss of business as customers become aware of the inconvenience at VST-equippedstations; and

•  Possible charges for replacement or repair of the nozzles.

NUMEROUS CONCERNS – The State Fire Marshal decision was based upon “rareoccurrences” (SFM language). This decision did not include an equally effective alternative

for enhanced nozzle inspection. We believe it is an over-reaction that will cause significanteconomic harm to station owners and operators.

CIOMA’s RECOMMENDATIONS:

•  Immediate approval of an “enhanced inspection” alternative to the hold-open latchremoval directive by the SFM.

•  A specific timeline for equipment replacement and/or repair should be issued as soon aspossible. A determination of a station operator’s potential financial responsibility forequipment repair and/or purchase needs to be quickly communicated.

•  An independent, third-party audit should be commenced immediately to determine

whether all nozzle components were subjected to full and rigorous testing, both duringthe agency certification process and by independent testing laboratories.

•  Agencies should make financial assistance available to station owner/operators whoincur financial harm from the SFM’s decision to remove hold open latches.

•  Going forward, agencies having a role in certification should be included in the chain ofliability regarding the safe operation of equipment they have certified.

We are available to meet with you on this critically important issue. Please let us know if youwish to discuss this further.

Sincerely,

 Jay McKeeman, Vice President, Government Relations & CommunicationsCalifornia Independent Oil Marketers Association(916) 646-5999 office(916) 207-5999 cell

cc: Linda Adams, Secretary, Cal/EPALester Snow, Secretary, Resources AgencyMary Nichols, Chair, California Air Resources AgencyDan Pellissier, Deputy Cabinet Secretary, Governor’s Office

Page 2 •CIOMA Letter; Gasoline Nozzle “Train Wreck” 8/24/2010