Good luck at the gas station in your area is impacted by this new law. It mandates new safety requirements for gasoline storage tanks. Locations that aren’t up to date face $5,000 daily fines. As a result, businesses are closing, leaving drivers to face a potential fuel shortage. 

New gas station law is enforced by $5,000 daily fines 

Hundreds of gas stations in California have no choice but to close. Drivers are struggling against limited options and fuel shortages as a new law goes into effect. 

California Senate Bill 445 forces owners and operators to replace single-walled gasoline storage tanks with double-walled ones. It was signed into law in 2025, but gas stations had until December 31, 2025, to comply. 

Its goal is to prevent groundwater and soil contamination by preventing leaks. But owners face $5,000 fines per day for operating with single-wall tanks. 

According to The Sun, over 480 locations are closing due to high costs related to upgrading storage tanks. Contractors estimate that digging to reach the existing tanks alone costs $100,000. 

Then they have to shore the ground, haul out the old tanks, and dispose of waste. Some gas station owners started the renovation process years ago, but are caught up in red tape. 

All they can do is risk facing expensive fines or temporarily close down. Some locations are permanently closing. About 120 locations have no formal plan to extract the tanks due to high costs. 

Others argue that those who waited too long to comply can only blame themselves. That had over a decade to comply with the change. Residents may need to prepare for increasing prices, long lines at the pump, and shortages as a result.