Jan 10, 2026
California faces an unprecedented fuel infrastructure challenge as 473 independent gas stations prepare to close on January 1st, 2026.
In this video, we break down what’s actually driving this crisis. A 2014 state law requires all underground storage tanks to be upgraded from single-walled to double-walled systems by the end of 2025. The upgrades cost approximately $2 million per station — a financial barrier many independent operators cannot overcome.
We’ll dive into the RUST loan program that was designed to help small stations cover upgrade costs, the multi-year application delays that left owners unable to complete work before the deadline, and the $5,000 per day penalties that force immediate closure for non-compliant stations.
Finally, we look at the human and economic impact — rural communities losing their only fuel source, the gap between electric vehicle adoption rates and gasoline infrastructure decline, and what happens to fuel prices when competition disappears from local markets.