Tom Shoaf: Yes. Generally speaking, it’s really starting to calm down. We still have some supply chain issues, not that we can’t get something we’ve learned how to deal with those, but there’s longer leads on certain types of equipment, mostly on the electrical side. But we’ve certainly seen pipe costs come off significantly since the beginning of the year. Labor costs have started to level off. And so it’s not gone away, but I think it’s really flattened out.
Chris Jeffrey: Great. And then just last one, maybe on the renewable fuels business. with the update from the RFS from the PPA as far as quotas renewable diesel. Just curious if you’re hearing any changes from producers as far as supply and demand impact in California?
Tom Shoaf: Generally, speaking, they want more storage.
Chris Jeffrey: That’s it for me. Thanks, everyone.
Tom Shoaf: Thanks.
Operator: One moment for next question. Next question comes from Selman Akyol with Stifel. Your line is open.
Q – Selman Akyol: Thank you. Danny, just following up on your last comment there, you talked about more demand for storage. You’re seeing additional opportunities to invest in renewables in California in 2024.
Tom Shoaf: Yes, we are. We’ve got several comps. Some are repurposing existing assets. I think there’s a couple of locations we could potentially even build more storage. That being said, the West Coast kind of regardless of which state you’re in is challenging, to say the least in terms of the permitting environment to build new assets. But I think we’ll continue to see EBITDA growth in that segment for years to come, just as we transition into these higher-margin products.
Q – Selman Akyol: Understood. Thank you. And then you guys also talked about continuing to pursue or realize benefits from your optimization, your expense optimization program. And I’m wondering if there is more to do there. Are you guys finding more opportunities?
Tom Shoaf: That’s something that we’re continually looking at, and we’ll be looking at that hard as we go into the 2024 budgeting cycle. So I do expect there’s more that can be done there, though.
Q – Selman Akyol: Okay, thank you very much.
Tom Shoaf: Thank you.
Operator: I’m not showing any further questions at this time. I’d like to turn the call back over to Pam.
Pam Schmidt: Thank you, Kevin. We would once again like to thank everyone for joining us on the call today. If anyone has additional questions, please feel free to contact stars, NuStar Investor Relations. Thanks again, and have a great day.
Operator: Ladies and gentlemen, this does conclude today’s presentation. You may now disconnect, and have a wonderful day.
