California Opens Door to Higher Ethanol Blends in Massive Gasoline Market
California has opened up to higher ethanol blends in its massive gasoline market, creating a new opportunity for farmers and producers. Governor Gavin Newsom signed Senate Bill 795, also known as the E-15 Clean Up Act, which fixes regulatory flaws that previously prevented retailers from selling E-15. The legislation passed with overwhelming bipartisan support.
The bill allows retailers to use existing equipment if manufacturers file compatibility statements with the state. California's fire marshal will finalize certification rules for tanks, dispensers, and hoses at individual stations.
California burns approximately 13.5 billion gallons of gasoline annually, making it the second-largest market in the nation after Texas. The new law could drive fresh ethanol demand up by 600-800 million gallons, consuming an additional 250 million bushels of corn.
This shift is expected to save California drivers around $2.7 billion annually by switching to higher ethanol blends.