Benefits of Leasing The EVR/ISD Equipment

Meeting state mandates can be time consuming, frustrating, but most of all – costly. The gas station business has changed a lot over the last decade. Margins have steadily been squeezed by higher taxes and rising credit card fees to a point where most stations are only earning $.01 - $.03 per gallon of fuel sold.

Instead of tapping your company’s savings / retained earnings or running up a short term bank line of credit, explore an equipment lease. It makes sense to have a manageable monthly payment that can be depreciated over the useful life of the equipment. In addition, the benefits of leasing are tax deductions, write-offs, and improved cash flow. Cash is king and liquidity is crucial in good economic times but this is especially true in a soft economy. Preserve your bank lines for an emergency or short notice revenue generating opportunities.

Steve Lee is an Equipment Finance Specialist at a leading financing company, First Star Capital (http://www.firststarcapital.com/ ). Steve is a frequent contributor to online publications and newsletters, and is the author of this blog on commercial financing topics.

EVR/ISD Links

On February 1, 2001, the California Air Resources Board adopted revisions to now require all gasoline dispensing facilities (GDFs) that dispense over 600,000 gallons per year to upgrade. All gasoline dispensing or fueling operations with underground storage tanks must have both Phase II Enhanced Vapor Recovery (EVR) equipment and In-Station Diagnostic (ISD) monitoring systems.

This is a very important upgrade for all gas stations.

Here are some links that give more information on the EVR/ISD upgrades:

• EVR Phase II Executive Order
  www.arb.ca.gov/vapor/eo-evrphaseII.htm
• Help with understanding EVR Phase II
  http://www.evrhome.org/
• EVR Financing Information
  evrhome.org/finance.htm
• Contact information for the 35 California Air Quality Management Districts
  www.arb.ca.gov/capcoa/roster.htm

Steve Lee is an Equipment Finance Specialist at a leading financing company, First Star Capital (http://www.firststarcapital.com/ ). Steve is a frequent contributor to online publications and newsletters, and is the author of this blog on commercial financing topics.

The Importance of Upgrading Your Station

The deadline for the California-required Phase II EVR upgrade is April 1, 2009. The deadline for the ISD installations is September 1, 2009 and September 1, 2010 depending on the facility’s annual throughputs. It is vital to start this process now if you haven’t already.

Many gas station owners are delaying for some of the following reasons:

• Waiting on additional EVR systems to become available
• Thinking there is still plenty of time
• Thinking the deadline will be extended
• Thinking the deadline will not be enforced

The reality is:

• Competing EVR systems wont be available until late 2008 at the earliest
• Permitting and installation can take much longer than expected
• The deadline will not be extended
• There will be strict and expensive penalties for noncompliance

Act now to get a installation contractor before they are all booked.

Steve Lee is an Equipment Finance Specialist at a leading financing company, First Star Capital (http://www.firststarcapital.com/ ). Steve is a frequent contributor to online publications and newsletters, and is the author of this blog on commercial financing topics.