California clears final hurdle, legalizes 15% ethanol gasoline amid soaring pump prices

Governor Gavin Newsom signed Senate Bill 795 on Saturday, clearing the last regulatory obstacle to the sale of E15 gasoline, a 15% ethanol blend, and completing the implementation of last year’s AB 30 law. The legislation enables immediate sales across the state, just as California gasoline prices sit near $6.14 per gallon, far above the $4.44 national average. Economists from the University of California, Berkeley and the U.S. Naval Academy have projected that widespread E15 adoption could lower pump prices by roughly 20 cents per gallon, delivering up to $2.7 billion in annual savings for drivers, though it will require stations to modify equipment.

Currently, E15 is available at more than 3,000 stations in 31 states, and the new market could generate about 650 million gallons of additional ethanol demand, according to Aemetis CEO Eric McAfee. The shift also benefits corn growers and aligns with a federal bill under consideration to permit year-round E15 sales nationwide. A separate study from UC Riverside indicated the blend would not raise nitrogen-oxide emissions and would cut particulate emissions.