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From replacements to new installations to closures, underground storage tanks (USTs) have moved to the forefront of operational — and investment — priority.
California, which is widely considered the regulatory bellwether for the U.S., mandated the closure of all “non-compliant single-walled UST systems” by Dec. 31, 2025. Across the country, the investment logic for USTs has returned to a position of predictability. Here are 3 things to consider:
1. The outlook for motor fuels has stabilized.
Confidence is high that liquid fuels will remain the dominant energy source for transportation in the United States. Indicators include:
- Federal policies, including tax credits and lower corporate average fuel economy standards, that were helping drive the expansion of EVs have been — or are proposed to be — rolled back.
- Consumer demand for EVs is showing signs of weakening.
- Automakers are adjusting their production strategies to reduce or eliminate EVs and increase production of gas and hybrid models.
2. UST payback period looks increasingly favorable.
In February 2025, global energy trader Vitol reported that there is unlikely to be a global reduction in oil consumption through 2040. Furthermore, if adoption of electric vehicles stalls, and targets are pushed back by just five years, Vitol said road transport fuel demand could be higher in 2040 than current projections. Amid the growing acceptance that conventional motor fuels will remain a cornerstone of the market, the timing of projected liquid fuel demand suggests a payback period between 15 and 20 years, which helps in making the business decision of investing in a new UST.
3. Future-proofing assets for future fuels is vital.
While liquid fuels are expected to remain a staple of the energy mix, their composition is likely to evolve. The Transportation Energy Institute suggested that a portfolio approach to decarbonizing internal combustion engine vehicles with fuels such as E15, biodiesel and renewable diesel, can achieve incremental, near-term greenhouse gas reductions. Preparing all fueling system equipment for higher biofuel blends will help fueling operations meet this transition.
Have questions about replacing USTs or installing new tanks? Reach out to your local Source representative for guidance.
Additionally, we invite you to download our free UST Birth Certificate, which helps UST operators document critical UST information at the time of installation.
