Mandate could force gas stations out of business

RAMSTORIA

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ARCADIA - Dozens of gas stations around California are choosing to shut down rather than comply with a state mandate that would require owners to purchase new equipment to reduce vapor emissions at the pump.

The requirement, known as Phase II in the state's Enhanced Vapor Recovery Program, is set to go into effect in April. It requires gas station owners to individually purchase tens of thousands of dollars of equipment designed to prevent harmful vapors from escaping into the air when gasoline is pumped.

But smaller retailers say that the requirement puts an unfair burden on businesses that don't sell enough gasoline to offset the extra cost - and that don't contribute much to the problem in the first place.

Among them is George Fasching, who after 31 years of selling gasoline at Fasching's Car Wash in Arcadia, stopped in December.

"I came to the decision that I was too small a volume operator to continue on with the expenses imposed by the bureaucracy of the state," Fasching said.

April's requirements would have cost him $35,000, he said. Fasching used to sell the gasoline as a convenience for his car wash customers, and blames the new regulations for forcing him to stop.

"It will have some effect on my business, but at least I have the relief that I don't have to deal with these people anymore," he said.

As of the end of December 2008, the South Coast Air Quality Management District had heard back from 3,109 of its 4,500 sites about EVR Phase II.

Seventy-six - or 2.4 percent - indicated they will be shutting down on April 1, 2009 rather than upgrade their sites, said Dimitri Stanich, public information officer for the California Air Resources Board.

Some 1,400 of the SCAQMD's sites have not yet responded. About 12,000 dispensing facilities will be affected statewide.

Many of those shutting down their pumps are in fact city facilities and businesses with their own dispensers, such as fire stations and construction companies.

"What you're going to find is that some of these are not retail gasoline facilities, but a business that has had their own private gas pump for some time," SCAQMD spokesman Sam Atwood said. "They're deciding for their own business reasons at this time that they're not going to renew their permit."

April's regulations promise to cut what are known as reactive organic gas emissions by 7 tons per day statewide, but opponents point to the fact that California produces 2,322 tons of such gases per day.

CARB officials believe the requirement is a manageable and necessary cost to curb air pollution and smog and to protect public health.

"We do calculate the cost of compliance with the regulation as related to emissions," Stanich said. "These costs could be recovered by raising gasoline prices by an average 0.68 cents per gallon."

Cost-effectiveness for the whole EVR program was estimated at $5.24 per pound of emissions, he said.

Anything under $10 per pound is generally considered cost-efficient.

Lower-volume sellers would have to raise prices more to offset costs, he added.

Vapor emissions contain hydrocarbons that combine with other molecules in the air to form ground-level ozone, which is known to cause numerous adverse health effects, including reducing lung function in children.

http://www.pasadenastarnews.com/news/ci_11563313

Boy I love living in California. Put people out of work and force who knows how many small businesses to close for a .3% reduction in gasoline vapor emissions.

I love how some woman casually says that raising gas prices by 70 cents a gallon would offset the costs, because ya know, business with tight budgets can afford to sell gas for $3 bucks a gallon while Chevron sells it for $2.20.
 
And here I thought that the mandate was going to be a complete overhaul of our car technology, forcing through Hydrogen and electric mobiles and making gasoline illegal.

I can dream, can't I!
 
You know I have actually seen gas stations closed down, pumps removed and the rest of the station bulldozed to the ground. When I see that I am like, how can a station go out of business? Everyone needs Gas and it's not like people are NOT buying. But after reading that I can see why now.

I doubt we will see any going out of business signs in any gas stations anywhere. To shut down the only means of fueling millions of combustion engine vehicles would be a death sentence.
 
[quote name='RAMSTORIA']

I love how some woman casually says that raising gas prices by 70 cents a gallon would offset the costs, because ya know, business with tight budgets can afford to sell gas for $3 bucks a gallon while Chevron sells it for $2.20.[/quote]

They actually said .68 cents/gallon.

It does hurt small businesses more than larger ones, but that's the way the cookie crumbles.
 
[quote name='DarkSageRK']They actually said .68 cents/gallon.

It does hurt small businesses more than larger ones, but that's the way the cookie crumbles.[/QUOTE]

i know i know, when i was typing it i was too lazy to double check the exact amount so i just rounded to 70. :cry:
 
I wouldn't have mentioned it if you had just rounded it up by .02 cents, but you rounded it up by 69.32 cents. :p

This issue wouldn't really concern me even if I did live in Cali, as gas stations are generally the only ones that get my business. I'm not exactly an environmentalist, but to me this trade-off is a good thing.
 
[quote name='evanft']0.68 cents/gallon? Really? That's the fucking issue?[/QUOTE]
No, its the outlay of $35,000+ up front to buy this equipment. You would have to sell upwards of 50,000 gallons of gas for it to "only" cost you .68 cents per gallon.

The little guy doesn't have that cash in the first place, and doesn't sell enough gas to offset it in the end by raising prices by a cent. And since their volume is so low, the level of emissions prevented by buying this equipment is negligible.
 
Yah know...

1. I think Kalifornya has much bigger problems to deal with like... oh, that the state will run out of money Monday. (they said about a week right? xD)

2. I'd like to see them enforce it.

3. I'd like to see them have the funds to get people to enforce it.

4. It's not going to really matter since nobody will be able to afford gas since they've been layed off.

As long as we (bay area) don't become the next LA... I don't care.
 
[quote name='dafoomie']No, its the outlay of $35,000+ up front to buy this equipment. You would have to sell upwards of 50,000 gallons of gas for it to "only" cost you .68 cents per gallon.

The little guy doesn't have that cash in the first place, and doesn't sell enough gas to offset it in the end by raising prices by a cent. And since their volume is so low, the level of emissions prevented by buying this equipment is negligible.[/quote]

This looks like a job for yet another bailout.

Wait, wait, wait. They didn't contribute enough to the winning campaigns.
 
[quote name='dafoomie']No, its the outlay of $35,000+ up front to buy this equipment. You would have to sell upwards of 50,000 gallons of gas for it to "only" cost you .68 cents per gallon.

The little guy doesn't have that cash in the first place, and doesn't sell enough gas to offset it in the end by raising prices by a cent. And since their volume is so low, the level of emissions prevented by buying this equipment is negligible.[/quote]

Plus .68 cents/gallon can be a big deal - how many times have you gone to the no-name brand across the street to save a penny per gallon? The economy and record gas prices are already squeezing independent owners, and clueless govt regulators come in to finish the job. Why not make oil companies (who just posted a new record profit) pony up the dough for the emissions equipment and offer a subsidy to the gas stations - the price-fixing car-glorifying oil cartels are more responsible for the smog then Joe Sixpack's Gas N' Go.
 
[quote name='fatherofcaitlyn']This looks like a job for yet another bailout.

Wait, wait, wait. They didn't contribute enough to the winning campaigns.[/QUOTE]

Their guys lost. The third in succession for the presidency would happily shut down all gas stations in a heartbeat to "save the planet."
 
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