California Senate Passes Bill to Allow E15 Fuel Sales

By Ryan Hanrahan

Reuters reported earlier this week that “California lawmakers on Wednesday voted to allow the sale of a higher-ethanol gasoline blend that could help bring down fuel prices in the largest U.S. auto market. The sale of E15, a blend containing 15% ethanol, would be allowed immediately once the bill is signed by Governor Gavin Newsom. California had been the only U.S. state that did not allow sales of the fuel.”

“The move likely will benefit biofuel producers and corn farmers, as it will expand the market for their products to the most populous U.S. state,” Reuters reported. “California’s state Senate passed the bill, AB 30, in a unanimous 39-0 vote. The measure passed the state Assembly in June.”

“Newsom had directed California regulators last year to study whether the state could increase ethanol blending in gasoline, but that work is not yet completed. California has been grappling with how to rein in skyrocketing pump prices while maintaining its ambitious environmental goals,” Reuters reported. “‘California consumers cannot wait any longer,’ California Senator Laura Richardson said on the Senate floor while introducing the bill. She pointed to a University of California study that estimated that the fuel’s availability could lower gas prices in the state by 20 cents per gallon.”

Allowing E15 Should Help Consumers and Farmers, Experts Say

Progressive Farmer’s Todd Neeley reported that “allowing E15 sales in California opens a 600- to 800-million-gallon ethanol market at a time when farmers need expanded markets. The move toward E15 in the state has accelerated this year because the state is seeing an increasing number of oil refineries close, raising concerns about lower gasoline supply and higher prices.”

“In July 2024, the University of California, Berkeley and the U.S. Naval Academy released a study that found state consumers could save up to $2.7 billion annually if E15 was made available,” Neeley reported. “That study found California drivers could save about 20 cents per gallon on E15.”

“An earlier 315-page study commissioned by the California Air Resources Board and conducted by scientists at the University of California, Riverside found E15 sales in California could also provide environmental benefits, cutting emissions of tailpipe pollutants like particulate matter and carbon monoxide that cause air quality and human health problems,” Neeley reported.

Reuters reported that Geoff Cooper, president of the Renewable Fuels Association, said in a statement that “with today’s passage of AB30, California is taking a big step toward lower gas prices and a cleaner, more sustainable future for families across the state. Many other states have already seen the benefits of E15 — healthier air, better engine performance, and cost savings at the pump. Now, California drivers are on the cusp of experiencing those same advantages, and we urge Gov. Newsom to sign the bill into law as quickly as possible.”

Ethanol Industry Has Called for E15 Expansion in Wake of Large US Crops

Neeley reported in a different article last month that “with the USDA forecasting a record corn crop … of 16.7 billion bushels, one of the nation’s largest ethanol interest groups called on the Trump administration to step up efforts to expand markets for farmers through E15.”

“The Renewable Fuels Association on Tuesday responded quickly to the numbers released today, calling on the federal government to remove what the RFS says are ‘artificial regulatory barriers’ that are ‘undercutting demand and constraining market opportunities’ for both corn and ethanol,” Neeley reported. “‘Alarm bells are ringing across rural America following today’s USDA report and they should be ringing in the halls of Congress,’ RFA President and CEO Geoff Cooper said in a statement, noting that this year’s crop is forecast to be nearly 2 billion bushels larger than last year’s crop.”

“‘Our nation’s farmers are doing their job — they are sustainably and efficiently producing the largest corn crop in history. But antiquated policies and regulations — like the summertime prohibition on E15, outdated pump labeling obligations and needless equipment certification requirements are stifling demand and failing America’s farmers.’”

California Senate Passes Bill to Allow E15 Fuel Sales was originally published by Farmdoc.