There Is No Excuse

The Air Resources Board is reminding California’s service station owners that they must upgrade vapor recovery systems on their gasoline pumps by April 1, 2009. The deadline is fast approaching, and less than 15% of the 11,000 gas stations are currently in compliance.

The state has invested millions of dollars into this initiative. There will be no exceptions with respect to this deadline:

"There's no excuse for not meeting the deadline - people know it's coming, the technology to comply is there and the public health benefits are easily quantifiable. Penalties for missing the deadline will not only cost operators, but delay clean air for many regions of the state." -- ARB Chairman Mary Nichols

Financing is becoming harder to obtain during these volatile economic times. Please begin your prequalification process immediately to secure your financing…it may not be there come 2009. Banks are increasingly calling lines of credit used for EVR upgrades, due to the high amount of soft costs involved and because the equipment is essentially non-revenue generating.

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.

Veeder-Root Announces New Carbon Canister Enhanced Vapor Recovery System

October 17, 2008 Veeder-Root has finally announced the release of the eVRgreen System with CARB Certification. This system is a complete vapor recovery and monitoring system that meets California’s state mandated April 1, 2009 Stage II EVR upgrade deadline. Veeder-Root claims this is the "simplest, most cost-effective solution available for retail petroleum station owners in California who need to comply with new EVR regulations." Gas stations owners can expect installation times to be cut in half, with seamless operation from the start.

For complete details or to order this solution contact your Veeder-Root distributor today. Veeder-Root is offering informational sessions for Enhanced Vapor Recovery at several locations in California. Contact your Veeder-Root distributor to learn more about these sessions. You can also register for more information and updates from Veeder-Root at http://www.veeder.com/page/EVR_Solutions.

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.

How Much Will Your Station Cost?

With the deadline around the corner, many gas station owners are asking how much their station's upgrade will cost. The best way to know is to have a contractor visit your station and give you a quote. Nonetheless, ARB of California has give a few estimates as to how much the upgrades could cost.

Phase II Franklin/Healy EVR equipment (*assuming labor costs are $75 per hour):

For 2 Dispensers:
Dispenser Equipment $7,240
Dispenser Equipment Installation* $600
Clean Air Separator $7,245
CAS Installation* $2,000
TOTAL $17,240

For 4 Dispensers:
Dispenser Equipment $14,480
Dispenser Equipment Installation* $1,200
Clean Air Separator $7,245
CAS Installation* $2,000
TOTAL $24,925

For 6 Dispensers:
Dispenser Equipment $21,720
Dispenser Equipment Installation* $1,800
Clean Air Separator $7,245
CAS Installation* $2,000
TOTAL $32,765

For 12 Dispensers:
Dispenser Equipment $43,440
Dispenser Equipment Installation* $3,600
Clean Air Separator $7,245
CAS Installation* $2,000
TOTAL $56,285

The numbers may seems overwhelming at first. Shop around with different contractors, but keep in mind: You get what you pay for. Sometimes the labor is much cheaper, but the equipment may not be installed correctly costing you more in the long run.

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.

Benefits of EVR Upgrade

Many gas station owners have been asking us what the new Phase II EVR upgrade will actually do. How will it help the environment?

According to evrhome.org, the EVR systems reduce gasoline vapor emissions. By reducing the emissions, this will save gasoline. California's total throughput is about 16 billion gallons of gasoline per year.

The Phase II EVR systems in California alone will:

• Reduce hydrocarbon emissions by 372 tons/day. Hydrocarbons, which make up the gasoline vapors, react with other air pollutants in the ozone's atmosphere.


• Save 120,000 gallons of gasoline each day


• Station owners and consumers save $360,000 each day

So the upgrade will save gas, money, and improve the atmosphere. This is something that is both valuable, and at our present time, needing to be preserved as best as possible.


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 Meetings in August 2008

It is always important to continue learning, especially when it comes to state-mandated regulations.

There are a couple of free meetings in California where you can go and find answers to all your Phase II EVR Upgrade questions. Here is the information for the two meetings in August (provided by evrhome.org):

August 27, 2008 - Anaheim, CA
EVR/ISD Informational Meeting
Hosted by Shields-Harper
Meeting
Notice

August 28, 2008 - Burbank, CA
EVR/ISD Permitting Workshop
Hosted by Shields-Harper
Meeting
Notice

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 Countdown to EVR/ISD Deadline

Although 236 days seems like quite a while, upgrading your station as soon as possible is vital.

Permitting and installation can take much longer than expected. Equipment and installation contractors are currently available. Planning ahead pays off seeing that the installation contractors are getting booked further and further in advance. If you wait too long, it will become extremely difficult to get the upgrade before the deadline.

Upgrading soon also benefits the owner because it will save money. Costs are expected to rise as the deadline approaches. Equipment prices have already risen by 10% to 15% this year.

Upgrade your station soon to save yourself the money and the headache.

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.