Glenn K. Walker. Product Bulletin. VST Balance Nozzle Clip Removal and CARB Advisory

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Product Bulletin VST Balance Nozzle Clip Removal and CARB Advisory 418 06.21.10 Vapor Systems Technologies, Inc. 650 Pleasant Valley Drive Springboro, Ohio 45066 (USA) Toll Free: 1-888-878-4673 Phone: 937-704-9333 Fax: 937-704-9443 www.vsthose.com In the past several weeks and months, Vapor Systems Technologies, Inc. (VST) has surveyed numerous GDF (Gasoline Dispensing Facility) sites throughout the State of California and found that many sites have not been conducting weekly inspections of equipment as outlined in the applicable Executive Orders. VST has catalogued a huge and unanticipated number of drive-off events throughout the state (thousands per month). Furthermore, it has also been reported that a number of illegal and unauthorized repairs are being made to our equipment. In the event that proper maintenance, repairs, replacements, and inspections are not conducted, a nozzle failure may occur and result in a hazardous condition. All gasoline nozzles, or any mechanical device for that matter, will eventually fail for some reason. Frequent inspections are critical to assure maximum safety. Failed or damaged nozzles can unexpectedly cause gasoline spray. As a result of these issues, VST has coordinated an effort with the California State Fire Marshal and CARB to generate Advisory 418. The advisory, issued May 28, 2010, requires the daily inspection of the equipment to help minimize any risks. Due to the uncertainty that inspections will occur in a timely and routine manner, VST has concluded Advisory 418 does not go far enough. In order to protect the public, the removal of all nozzle hold-open clips is required until an alternate solution is adopted. Effective immediately, all future production of VST balance nozzles, both new and rebuilt, will be shipped without hold-open clips. In addition, we are dispatching crews to our distribution locations to remove the hold-open clip from all existing inventory. Furthermore and most importantly, we have dispatched a number of contractors and VST personnel throughout the state to begin the removal of all nozzle hold-open clips currently in service. Enclosed is a copy of authorization from the California State Fire Marshal and CARB that underscores our activity. In addition, VST whole heartedly supports CARB Advisory 418, and all stations should adhere to this policy as it is the law. Protection of the public is paramount. We ask for your assistance and support with this decision. Over the next number of days and weeks we will purge all hold open clips from the state and hope to complete these activities with a minimum of disturbance to your respective businesses. Sincerely, Glenn K. Walker Glenn K. Walker President Vapor Systems Technologies, Inc. SEE FOLLOWING PAGES

VST Nozzle Figure 1: VST Balance Nozzle with Hold Open Latch Installed Hold Open Latch to be Removed by VST Figure 2: VST Balance Nozzle with Hold Open Latch Removed Hold Open Latch Removed

California Environmental Protection Agency Air Resources Board Special Advisory Gasoline Dispensing Facility VST Nozzle Daily Check Number 418 May 28, 2010 VST Nozzles This advisory concerns all VST nozzles operating in California. In rare instances, a damaged VST nozzle can unexpectedly cause gasoline spray, upon activating the dispenser, prior to the nozzle being inserted into the vehicle fuel tank. The Air Resources Board (ARB) advises that all VST nozzles be checked daily by following the instructions included in Form 1 of this Advisory. See Figure 1 for a diagram of the nozzle. Any nozzle which fails Check A or Check B, of Form 1, should be removed immediately from service. As a reminder, for any hanging hardware components involved in a drive-off or subjected to customer abuse it is required that each individual component of the hanging hardware be visually inspected and functionally tested before the components can again be used for dispensing fuel. Prior to placing the component/s into service, use the appropriate equipment and follow the instructions specified in the Installation, Operation, and Maintenance Manual (IOM) Sections 10, 11 and 12 (as it relates to the latest revision of Executive Orders (EO) VR-203, VR-204 and VR-205) or IOM Sections 8, 9 and 10 (as it relates to the latest revision of EO VR-209). Questions and Further Information: For questions regarding this advisory call at (916) 327-0900. For copies of the Executive Orders visit our website at: 1. http://www.arb.ca.gov/vapor/eos/eo-vr203/eo-vr203.htm 2. http://www.arb.ca.gov/vapor/eos/eo-vr204/eo-vr204.htm 3. http://www.arb.ca.gov/vapor/eos/eo-vr205/eo-vr205.htm 4. http://www.arb.ca.gov/vapor/eos/eo-vr209/eo-vr209.htm

Advisory 418 Page 2 FORM 1 Daily Inspection and Function Checklist for VST Nozzles Fueling Check A Check B Fueling Check A Check B Point # Pass Fail Pass Fail Point # Pass Fail Pass Fail Inspected by: Date: Inspected by: Date: Check A 1) Make sure dispenser is de-activated (do not turn on). 2) Lift the nozzle from the dispenser cradle without touching the lever. 3) Make sure hold open clip is disengaged. 4) Point nozzle spout into a gasoline compatible container. Do not compress vapor collection sleeve (VCS). 5) Pull lever to make sure there is no spring tension. If the lever has no spring tension (dead lever), the nozzle passes. If the lever has spring tension (live lever i.e. same as dispensing fuel), the nozzle fails. 6) If Check A fails, tag out this Fueling Point and have the nozzle immediately serviced or replaced. Reference nozzle installation or nozzle repair instructions in the ARB Approved Installation, Operation, and Maintenance Manuals. 7) If Check A passes, proceed to Check B. Check B 1) While still pointing the nozzle spout in the gasoline compatible container and with the dispenser de-activated, compress the vapor collection sleeve (VCS) by pressing on the face seal, and confirm the lever has spring tension (live lever). 2) Then release the VCS and confirm the lever has no spring tension (dead lever). 3) If lever goes live (when the VCS is compressed), and goes dead (when the VCS is released), then the nozzle passes. 4) If lever stays dead (when the VCS is compressed) or stays live (when the VCS is released), then the nozzle fails. 5) If check B fails, tag out this Fueling point and have the nozzle immediately serviced or replaced. Reference nozzle installation or nozzle repair instructions in the ARB Approved Installation, Operation, and Maintenance Manuals.

Advisory 418 Page 3 Figure 1 VST Nozzle Vapor Collection Sleeve (VCS) Hold-Open Clip