Owners who have applied for permits and made arrangements to install equipment will not be cited, the letter said. Some fines will be levied, but, "only the most recalcitrant operators who absolutely refuse to comply could be subject to significant penalties."
That reassurance does not comfort Hosmanek. Battered by competition from cheaper chains such as Thrifty and Arco, the 51-year-old businessman said he was refused credit by banks and equipment lenders. Refitting his eight nozzles and hoses would cost more than $60,000, he said. "Even if I could get the funding, I couldn't make the payments."
With fewer customers, Hosmanek has laid off eight of his 18 employees. Down the road, he said, a Shell station began installing the equipment Friday.
"I asked the guy how he did it, and he said he put it all on credit cards," Hosmanek said. "That's financial suicide."
Single-station owners like Hosmanek aren't the only ones hurting. David Berri, an Irvine businessman whose family owns 22 stations in Orange, San Diego and Los Angeles counties, said he put a 25% deposit on vapor equipment last year. But his bank has since canceled his credit line. His family has put seven stations up for sale, but so far, there are no buyers.
"The economy snuck up on us," he said. "If I complied, I'm at the point this could bankrupt me, and I have a family to take care of."
State officials say they have little choice when it comes to imposing pollution rules. Federal law requires states to clean their air. The rule, they note, would prevent 10 tons a day of vapor emissions.
"That's a big deal in a state where nearly three-quarters of our residents breathe air that still fails to meet federal health standards for ozone," said the air board's Tom Cackette.
Board officials also note that letting laggard station owners off the hook would be unfair to the three-quarters of stations that have ordered equipment. Fewer than 5% of pumps, many of them in carwashes, convenience stores or car dealers, have indicated that they would voluntarily shut down, officials said.
In the Legislature, Assemblyman Martin Garrick (R-Solana Beach) and Sen. Dave Cox (R-Fair Oaks) are leading the charge to delay enforcement. On Monday, Cox called for the resignation of state Air Resources Board Chairwoman Mary D. Nichols for being "recalcitrant" in refusing Schwarzenegger's request for a delay.
But a compromise may be in the works. A bill sponsored by Assemblyman Ira Ruskin (D-Redwood City) would provide $8 million in grants to stations for the equipment.
That could help owners like Hosmanek, who shows no sign of backing down.
"I'm not going to shut down," he said, despite facing what he contends could be thousands of dollars in fines. "I'm going to stand up and fight."
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margot.roosevelt@latimes.com
