| September 25, 2008 |
California Mandates Greener Gas Stations
The California Air Resources Board has improved the regulations on gas stations, requiring that stations with underground tanks upgrade their vapor recovery systems. Gas stations have until April 1, 2009 to make the improvement, which will limit the smog-causing gasoline vapors that escape into the air during refueling.
An estimated 12,000 gas stations will need to install new equipment to meet the new requirements. In addition to the vapor recovery systems, most gas stations will also need to install in-station diagnostic systems to monitor the performance of their new vapor recovery systems. The diagnostic system is also responsible for triggering an alarm in the event of a failure. There's a longer window for installing the diagnostic systems: larger gas stations have until September 2009 to complete installation. Smaller gas stations have until September 2010.
One supplier in particular is profiting from this new mandate. Franklin Electric sells vapor recovery systems that meet the California Air Resources Board's requirements. The Indiana-based company sells its systems for about $18,000 each. R. Scott Trumbull, the CEO of Franklin Electric, spoke with Investors.com about the record sales the company is experiencing. Approximately 25 percent of the gas stations affected by California's new rules have already bought their vapor recovery systems — and Franklin Electric made a whopping 90 percent of those sales.