California’s gas-car phaseout brings turmoil to mom-and-pop gas stations
California Gov. Jerry Brown and California Environmental Protection Agency Administrator Michael D. Padilla signed a law last week repealing a controversial gas-mileage mandate that was in place for three years since 2002. The law also sets up a transition that will force motorists to stop buying and selling gasoline within six months of the law’s being enacted. The law is expected to take effect May 1.
It will not be easy for Californians who use gas-guzzling vehicles to make the transition. Many stations, including gas and auto services stores, auto repair shops, gas stations, station garages and fleets are not prepared for the new laws. That, in turn, could cause them to lose customers.
The result could be a rush to the pump. As of April, there were 461 gas stations in California. That’s up from the 243 in mid-2002. The number of stations has been dwindling for years as people have driven less and the number of gas stations to fill up has been declining. In 1982, a total of 1,117 gas stations were in operation. By 2006, that number had shrunk to 998.
“It’s one of those things where you’d like gasoline to be cheap, but it’s difficult because there’s a limited amount of gasoline, so people need to conserve,” says Bill Smith, president of the California Auto Dealers Assn., the trade group that represents independent dealers.
So how is the California industry going to handle the change?
“We are concerned,” says Steve Williams, owner of a San Diegan auto-repair shop. Mr. Williams says he has to take care of two customers at the shop during the transition. “We’re kind of worried that we’re going to take a hit. We’re trying to find a way to make it work without having to close our doors,” says Mr. Williams. “We may just have to get by with a different name.”
The law requires gas stations to sell fuel economy-based standards for all models of fuel-guzzling cars to comply with the state’s requirements. But after the law takes effect, some gas stations will have to switch to the mileage standards for their customers.
The California Office of Emergency Service warned of potential power outages and traffic