California Clears Regulatory Barrier for E15 Gasoline Sales

California has cleared the way for sales of E15 gasoline, opening up its massive auto market to fuel containing 15% ethanol. Governor Gavin Newsom signed Senate Bill 795, removing the final regulatory barrier to E15 sales. California had been the only state where the higher-ethanol blend could not be sold.

The change is expected to provide a significant new market for U.S. corn and ethanol producers. Aemetis CEO Eric McAfee estimated that California could generate about 650 million gallons of additional ethanol demand annually.

California officials say E15 could also help reduce gasoline costs, with a study by economists at the University of California, Berkeley, and U.S. Naval Academy estimating that it could reduce prices by as much as 20 cents per gallon and save California motorists up to $2.7 billion annually.