Full Breakdown
California Clears Final Regulatory Hurdle for E15 Fuel Sales
By Drooid · · How we work
Legislative Action Removes Barrier to E15
California Governor Gavin Newsom signed Senate Bill 795, the “E15 Clean-up Act,” eliminating the last state-level obstacle to selling E15—a gasoline blend containing 15 % ethanol. The bill authorizes retailers to dispense E15 using existing vapor-recovery equipment, provided manufacturers submit compatibility statements to state agencies. The measure passed unanimously in the California Legislature.
Background and Context
For decades California limited ethanol blends to 10 % (E10). Assembly Bill 30, enacted last year, authorized E15 sales but left a regulatory gap that prevented retailers from offering the higher blend. The state’s gasoline market, the nation’s largest, has faced record-high pump prices—averaging about $6 per gallon—partly due to global oil disruptions linked to the war in Iran. Lawmakers and industry groups argue that expanding ethanol use can diversify the fuel supply, lower retail gasoline costs, and modestly reduce emissions.
Key Figures and Groups
- Gavin Newsom — Governor of California
- Geoff Cooper — President and CEO, Renewable Fuels Association
- Eric McAfee — CEO, Aemetis
- Emily Skor — CEO, Growth Energy
- David Hackett — President, Stillwater Associates
Data and Statistics
- Wholesale ethanol price: about $2.30 /gal (McAfee).
- Spot ethanol price in Los Angeles: $2.49 /gal; spot gasoline price: $4.27 /gal (Union Tribune).
- Average California regular-gasoline price: $6.14 /gal (GasBuddy).
- UC Berkeley/U.S. Naval Academy study estimates a $0.20-per-gallon reduction when shifting from E10 to E15, or $2.7 billion in annual savings for California drivers (RFA).
- Growth Energy notes E15 sells for roughly $0.30 less per gallon and is compatible with 96 % of light-duty vehicles.
- Aemetis projects the change could add about 650 million gallons of annual ethanol demand in California.
Official Statements & Responses
Governor Newsom called the bill “common-sense” action that removes unnecessary red tape while preserving environmental and safety standards. The Renewable Fuels Association said the move enables retailers to use existing infrastructure and will help lower fuel costs. Growth Energy highlighted the potential for “more affordable fuel options.” Analyst David Hackett expects independent retailers may adopt E15 within “weeks, not months,” though a full market transition could take several months.
Conflicting Reports & Gaps
Sources differ on the exact signing date. Reuters cites September 21, while Agwired, American Ag Network, and Bioenergy Times report August 31 following the legislature’s unanimous passage. The discrepancy remains unresolved.
What’s Next
The California Air Resources Board (CARB) is scheduled to vote on a permanent regulation for E15 during its September 24 board meeting.
Verbatim Quotes
- “This common-sense bill cuts unnecessary red tape while maintaining our environmental and safety standards. We're helping make E15 a real option for California drivers,” — Gavin Newsom
- “Currently ethanol sells wholesale for ?about $2.30 a gallon, so it will result in significant cost savings compared with gasoline in California,” — Eric McAfee
- “California drivers are about to experience those same advantages for themselves,” — Geoff Cooper
- “E15 saves consumers money and California is home to some of the nation’s highest gas prices. This step is a big win for drivers in the Golden State,” — Emily Skor