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March 01, 2007
CSSARA
Auto$ense
Newsletter
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California Service
Station & Automotive Repair
Association |
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1202 Grant Ave., Suite B1 |
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Novato, CA 94945 |
Phone 415/ 892-1243 *
Fax 415/ 892-4173
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Plan for EVR Phase II Upgrades
The Air Resources
Board has just put out a Vapor Recovery Advisory
regarding the April 2009 Phase II deadline.
Approximately 13,000 gasoline dispensing
facilities will need to obtain permits, purchase
Enhanced Vapor Recovery (EVR) Phase II equipment
and arrange for installation by a certified
contractor in the next two years. The Franklin
Fueling/Healy EVR Phase II system is currently
certified and is prepared to meet the equipment
demand. However, there is a potential shortage
of certified contractors if gasoline dispensing
facility operators wait too long to install EVR
systems.
Other EVR
Phase II systems are under test and could be
available by the end of 2007. But there is no
guarantee that any system currently in the
certification process will successfully complete
all performance testing and legal requirements
to obtain EVR certification. You can find
detailed information on the Vapor Recovery
program at the Air Resources Board web site at
www.arb.ca.gov/vapor/vapor.htm or by
contacting the ARB Engineering and Certification
Branch at 916-327-0900
ConocoPhillips to Sell 830 Stations
According to
a recent ConocoPhillips press release,
approximately 830 retail service stations are
scheduled for divestiture. Three-hundred-thirty
of these sites are company operated. The 500
franchise stations will, in most cases, first be
offered to the lessee dealer under applicable
state and federal laws. In California,
ConocoPhillips operates under the “76” flag. By
state law dealers are allowed the right of first
refusal if the franchisor (ConocoPhillips)
wishes to sell the facility during the lease
period. The franchisee has additional
protections under the federal Petroleum
Marketing Practices Act (PMPA).
If you are a
“76” franchisee, CSSARA can help you to
understand your rights as the existing
franchisee! Call, write or e-mail us to access
our relationships with skilled loan
facilitators, property and improvement
appraisers, and attorneys who are experienced in
handling such issues. You are
afforded these rights under California Business
& Professions Code, §§ 20999.3 and 20999.25,
which were originally bills sponsored and
lobbied by CSSARA. The original legislation was
AB372. It is important that you realize that
Couche-Tard, which is the owner of the Circle K
franchises are also very interested in many of
these sites. Be sure you understand completely
your rights as the existing franchisee.
No Empathy for Apathy
As a petroleum retailer, you know
first-hand how the recent price gouging by your
supplier is impacting your ancillary profit
centers, namely C-store sales, car wash sales
and automotive repair. Your customers must buy
gasoline. The majors realize this and have
absolutely no empathy for you (their partner) or
your customers. Why are your ancillary profit
centers doing poorly? It’s simple. California
gasoline sales are second only to the United
State as a whole in the number of gallons sold.
Yes, on an annual basis, we in California retail
more gasoline than China, Japan, or even
Canada. Last May the average price reached the
all-time, record and historic high at $3.33 per
gallon statewide. Without any fanfare, today
our average retail price is again over $3.00 per
gallon.
Let’s take a closer look. In
February 2006 California retailed close to
1,230,000,000 gallons of fuel. With the price
increases since the elections last November,
Californians today pay approximately $700
million more for gasoline than they did a year
ago in the same month. What has created this
huge increase? There are two answers. One is
government apathy when it comes to dealing with
big oil. Second is consumer apathy as they
believe there is no resolution to this issue.
We must speak up and we must
act. Alternative fuels are an important aspect
of our future. If we do not get involved in the
political system on this issue, we will not be
around and big oil will end up having all the
retail locations. If you do not become more
active in planning for the future you will be
carved out of the equation. It is crucial that
you educate your customers and that you speak
out to your elected officials.
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