California Clears Way for E15 Sales, Opens Largest Auto Market to Higher-Ethanol Fuel

California has cleared the way for sales of E15 gasoline after Governor Gavin Newsom signed Senate Bill 795. This move removes the final regulatory barrier to E15 sales, opening up the nation's largest auto market to fuel containing 15 percent ethanol.

The change could create a significant new market for corn and ethanol producers. Aemetis CEO Eric McAfee estimates that California could generate roughly 650 million gallons of additional ethanol demand each year.

CALifornia officials also say E15 could help lower fuel costs. Economists at UC Berkeley and the U.S. Naval Academy estimated that E15 could reduce gasoline prices by as much as 20 cents a gallon, saving motorists up to $2.7 billion annually.