Fuels

Convenience operators face underground storage tank deadline

California’s mandate to close single-walled tanks by Dec. 31 remains in force as legislative efforts to ease the transition stall
Permanent closure of certain underground storage tanks is approaching.
Permanent closure of certain underground storage tanks is approaching. | Shutterstock

A key state mandate requiring the permanent closure of certain underground storage tanks (USTs) is approaching, with no legislative relief in place for gas stations and convenience store operators facing delays. 

Under California law, single-walled USTs that lack secondary containment and continuous leak detection must be permanently closed by Dec. 31, 2025. The requirement, passed under Senate Bill 445 in 2014, was designed to phase out tanks more vulnerable to leaks from corrosion, earthquakes, and other environmental risks.

While the deadline was set more than a decade ago, many small and independent operators have struggled to upgrade or close their tanks due to permitting backlogs, funding issues, and contractor shortages—especially in rural or underserved areas. 

A proposed legislative fix—Assembly Bill 626, introduced Feb. 13, 2025, which would have created a case-by-case grace period for operators acting in good faith, failed to advance during the current legislative session, leaving little time for alternatives.

In a hearing before the Assembly Environmental Safety & Toxic Materials Committee in April, John Kennedy, senior policy advocate for the Rural County Representatives of California (RCRC), testified in support of the bill, noting, "We have several dozen remaining single-walled USTs in our communities," and called the grace period "a common-sense" step to avoid sudden fuel supply disruptions.

RCRC, which represents California’s rural counties, joined others in backing the bill, including the California Fuels and Convenience Alliance (CFCA), which advocates for small fuel retailers and convenience operators. 

"While the bill did not move forward this legislative session, it sought to protect both businesses and local communities, particularly those in rural or underserved areas, by offering a practical solution for underground storage tank operators working in good faith to meet the 2025 double-walling deadline," Kennedy told CSP in a statement. "The bill didn’t excuse noncompliance—it simply recognized that some delays are beyond operators’ control and helped ensure that responsible businesses aren’t unfairly penalized for circumstances they can’t manage."

Without legislative action, enforcement of the Dec. 31, 2025, closure deadline remains in full effect. Operators of non-compliant single-walled USTs must upgrade or permanently close those tanks by the end of the year to avoid penalties.

The California State Water Resources Control Board (SWRCB) is focused on enforcing the current law and does not support deadline extensions. As of Aug. 5, 2024, more than 2,000 single-walled UST systems remained in operation statewide, according to SWRCB. Operators who fail to meet the deadline could face fines, permit revocation, or mandatory tank removal, potentially leading to temporary or permanent fuel service disruptions, according to SWRCB. With less than five months until the deadline, SWRCB is urging affected operators to confirm their compliance plans with local enforcement agencies and begin or complete upgrades as soon as possible.

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