California is allowing E15 Fuel: Anticipated Economic and Environmental Benefits
California's fuel landscape is undergoing a significant change following the passage of Assembly Bill No. 30 (AB 30) by the Legislature. This urgent measure, co-authored by Assembly Members David Alvarez (D) and Heath Flora (R) and sponsored by the bipartisan California Problem Solvers Caucus, awaits the Governor’s signature. Once signed, AB 30 will immediately authorize the sale of E15 gasoline blends, making California the final U.S. state to permit this fuel.
California gasoline is currently blended with 10% ethanol by volume (E10). E15 is a blend containing 10.5% to 15% ethanol by volume. Ethanol, typically derived from corn, is a cleaner-burning alternative that is generally less expensive than petroleum. The U.S. Environmental Protection Agency (EPA) approved E15 for nationwide use in 2011.
Key Benefits of E15 Implementation
AB 30 directly addresses high fuel prices and is anticipated to provide several advantages for Californians:
Cost Savings for Consumers: Studies, including research from UC Berkeley and the U.S. Naval Academy, estimate that E15 could lower gasoline prices by approximately 20 cents per gallon. This translates to potential statewide savings of up to $2.7 billion annually for California drivers, or about $200 per household. While E15 has a slightly lower energy density, resulting in a minor reduction (1-3%) in fuel economy, the lower price of ethanol is expected to lead to overall cost savings at the pump.
Environmental Benefits: E15 is recognized as a cleaner-burning fuel with similar or enhanced benefits compared to E10. Research commissioned by the California Air Resources Board (CARB) suggests that the sale of E15 could reduce emissions of tailpipe pollutants, such as particulate matter and carbon monoxide, thereby contributing to improved air quality. Ethanol also helps reduce greenhouse gas emissions.
Addressing Regulatory Delays: Passed as an urgency statute, AB 30 aims to resolve previous regulatory delays by CARB, which initiated its study of E15 in 2018. Governor Newsom specifically directed CARB in October 2024 to expedite its review of E15 to help lower gas prices.
This authorization for E15 sales is temporary. It will remain in effect until the California Environmental Policy Council (CEPC) completes its review and CARB either adopts a permanent regulation for E15 or posts an assessment demonstrating such a regulation is not possible to meet specified requirements. CARB estimates CEPC approval and completion of the multimedia evaluation process by mid-2026.
AB 30 received broad bipartisan support, passing the Assembly with a 77-0 vote and the Senate with a 39-0 vote. This legislative consensus reflects a commitment to providing immediate financial relief for Californians facing high fuel costs. Upon the Governor's signature, AB 30 will take effect immediately, making E15 a new, more affordable fuel option available in the state.
Further updates regarding E15 availability will be provided.