California Clears Sale of Higher-Ethanol Fuel Blend
California has cleared the sale of E15 fuel to reduce gasoline costs for drivers in the state. Governor Gavin Newsom signed Senate Bill 795, which permits the immediate sale of the higher-ethanol blend.
The bill removes California's status as the only U.S. state where E15 could not be sold. Eric McAfee, CEO of Aemetis, estimates that E15 approval will boost state ethanol demand by 650 million gallons annually, with wholesale prices at $2.30 per gallon.
According to a 2024 academic study, E15 could reduce California retail gasoline prices by 20 cents per gallon, saving drivers at least $2.7 billion yearly.
The approval takes effect immediately and is expected to benefit ethanol producers and corn growers by opening the most populous U.S. state to the higher blend.