- California law (SB 445) requires single-walled underground fuel tanks without secondary containment and continuous leak detection to be permanently closed by Dec. 31, 2025, with penalties of $500–$5,000 per tank per day after the deadline.
- State regulators say about 99% of roughly 50,000 such tanks have already been closed, leaving under 650 remaining and enforcement ramping up in 2026.
- State aid has helped fund closures and upgrades, including about $183 million since 2015 through the RUST program and an extended cleanup fund through 2036.
- The deadline is driving temporary and permanent gas station closures when owners can’t afford upgrades or face permitting delays, reducing fuel access in some areas.
Read More
California’s multi-year regulatory effort to phase out aging, single-walled underground storage tanks has culminated in a mandatory deadline of December 31, 2025, by which any UST lacking both secondary containment and continuous leak detection must be permanently closed or removed. This statute (SB 445, codified in Health and Safety Code §25292.05) carries stiff penalties of $500-$5,000 per tank per day after the deadline, plus possible red tagging to stop fuel deliveries.
As of the end of 2025, the State Water Resources Control Board reports that 99% of the original ~50,000 single-walled tanks—i.e. about 49,350 units—have been closed. The remaining ~650 are now in formal planning or enforcement for removal; only about 120 tanks across 50 sites reportedly lack even formal closure planning. These are mostly located at gas stations, industrial or municipal facilities.
To mitigate financial burdens, California has invested $183 million since 2015 via the RUST Program, including $80 million since 2023, offering grants and loans to station owners. The UST Cleanup Fund has also been extended to 2036 to help with contamination cleanup and financial assurances.
The closures have yielded real-world disruptions: some gas stations (e.g. Piedmont Gas & Auto Repair, Grand-Mandana Gas Station) have temporarily shuttered their pumps; others, like the 76 station on Bay Farm Island, have closed permanently because the cost of compliance (multi-hundreds of thousands) was prohibitive. These disruptions create potential fuel access gaps, especially in underserved or remote areas.
Strategically, this regulation represents a shift in California’s fuel infrastructure landscape. Station operators face increased capital investment, regulatory compliance costs, and operational risk. Real-estate values, station viability, and fuel supply logistics could be stressed in rural or low-income communities, potentially inviting state or private intervention. Open questions include whether remaining operators will comply or be forced out, how enforcement will vary by region, the role of funding availability, and potential political or legislative movements to delay or relieve penalties (such as AB 626, which was introduced but held in committee).
Supporting Notes
- SB 445 requires permanent closure of USTs without secondary containment & continuous leak detection by December 31, 2025; noncompliance penalties are $500-$5,000/tank/day.
- As of December 2025, 49,350 out of ~50,000 single-walled tanks are closed; fewer than 650 remain.
- Of the remaining facilities, 530 have submitted permit applications; 225 tanks have removal start dates; but ~120 tanks on 50 sites are not yet in formal planning.
- Total funding provided: $183 million since 2015; $80 million since 2023.
- Cleanup fund extended via AB 1115 through January 1, 2036.
- Piedmont Gas & Auto Repair temporarily closed for 3 months to upgrade tanks; Grand-Mandana Gas Station also listed among non-compliant sites. [initial article]
- The 76 station on Bay Farm Island closed permanently due to inability to afford ~$2 million upgrade.
- AB 626 was introduced to provide exemptions for operators acting ‘in good faith’ who applied for upgrades, but it held in committee and was not enacted in time.