California Clears Sales of Higher-Ethanol Fuel Amid Soaring Gas Prices
California Governor Gavin Newsom has signed Senate Bill 795 into law, paving the way for the sale of E15 in the state. This higher-ethanol fuel blend contains 15% ethanol and had previously been banned due to regulatory hurdles.
The measure will allow California drivers to benefit from lower gasoline prices, with estimates suggesting that E15 could cut retail prices by around 20 cents per gallon. According to Eric McAfee, CEO of Aemetis, the change could add about 650 million gallons of annual ethanol demand in the state.
Average gasoline prices in California were hovering near record levels at around $6.14 per gallon on Sunday, compared with a national average of $4.44 per gallon. The move is expected to benefit ethanol producers and corn growers by opening up the nation's most populous state to the higher blend.