New CA Law Causes Gas Stations to Close in Mass

The California Fuels and Convenience Alliance (CFCA), is Urging the Legislature to take Immediate Action to Prevent a Fuel Supply and Affordability Crisis, tied to the January 1st, 2026, Deadline to Remove All Single-Walled Underground Storage Tanks (USTs).

While CFCA Supports the Transition to Safer Double-Walled Tanks, the Current Enforcement Approach, Fails to Account for the Very Real and Ongoing Barriers that Small, Independent Station Owners are Facing. CFCA Urges the Legislature to take immediate Action by Adopting a more Flexible Compliance Approach-Like that Proposed in AB 626, to Avoid a Preventable Crisis Threatening Fuel Access, Affordability, and Economic Stability.

The New California Law, has Led to the Closure of Numerous Gas Stations, particularly those that are Not Compliant with the State's Regulations.

This Law, which aims to Control Fuel Supply and Upgrade Underground Storage Tanks, has Resulted in the Shutdown of Small, Independent Fueling Businesses, that are Unable to Replace or Close their Tanks in time.

The Closures are expected to have a Significant Impact on Fuel Access, Affordability, and Economic Stability in the State.

473 Single-Walled Tanks remain in Operation, out of Tens-of-Thousands that Once Existed across the state, the Shutdown of these Facilities will have Broad and Disproportionate Consequences.

For Small, Locally Owned Fueling Businesses, Replacing or Closing these Tanks, is a Process that should take Only a few Months. However, due to Factors entirely Outside of their Control, many Operators have been Trapped in Years-Long Delays.

Station Owners have made Good Faith Efforts to Comply with the Law, yet have been Repeatedly Stalled by a Range of Systemic Issues.

These Include: Pandemic-Related Disruptions, Labor and Construction Shortages, and Most Critically, Excessive Delays in Local Permitting and in the State Water Resources Control Board's Administration of the RUST Fund Loan Program.

In some of the Most Egregious Cases, it has taken up to Two years just to Receive a Decision on whether a Loan Application has been Approved or Denied. Similar Delays Plague the Permitting Process.










NYC Wins When Everyone Can Vote! Michael H. Drucker