The California Fuels and Convenience Alliance (CFCA) is urging legislature to take immediate action to prevent a “fuel supply and affordability crisis tied to the January 1, 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 said in a press release.

CFCA is also urging the legislature to adopt a more flexible compliance approach to avoid a “preventable crisis threatening fuel access, affordability and economic stability.”

Although only 473 single-walled tanks remain in operation out of tens of thousands that once existed across California, 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.”

The Alliance also noted that some of the impacted sites are in rural or underserved communities where they serve as critical infrastructure. “These independent, unbranded gas stations are often the only local option for fuel and typically offer lower prices to consumers. They also provide essential fuel access for schools, first responders, farms and medical facilities.”

According to CFCA, if these stations are forced to shut down, it will result in:

• Fewer fueling locations will reduce competition and push gas prices higher across the state.
• Rural families will have to travel farther and pay more for fuel.
• Local job losses and business closures will harm regional economies.
• The pressure on California’s already constrained fuel supply will grow even worse.

“We are approaching a dangerous turning point,” said CFCA Senior Director of Government Affairs, Alessandra Magnasco. “If nothing is done, the state will lose hundreds of small gas stations, and consumers will pay the price. We cannot allow red tape to turn into red tags. If lawmakers fail to act now, California will see higher prices, fewer choices and real economic pain, which are all avoidable outcomes.”