California Greenlights E15 Fuel Blend Amid Record Gas Prices

California Governor Gavin Newsom has signed legislation allowing the sale of E15, a higher-ethanol fuel blend, in the state. This move aims to reduce gasoline costs for California drivers, who have been struggling with high prices.

The signing of Senate Bill 795 removes the final regulatory hurdle for the sale of E15, which contains 15% ethanol. The bill was unanimously voted on by state Senators last year and has been in effect since then.

California's approval of E15 comes as Congress weighs separate legislation to permit year-round sales of E15 nationwide. The issue gained urgency after the US war with Iran rattled global oil markets, pushing up fuel prices.

Aemetis CEO Eric McAfee estimates that the change could add about 650 million gallons of annual ethanol demand in the state. He also notes that the higher blend will result in significant cost savings compared to gasoline in California, where average prices were hovering near record levels of $6.14 per gallon on Sunday.