California Assembly Passes Bill to Speed E15 Adoption

by Erin Voegele (Ethanol Producer Magaziine) The California Assembly on Oct. 1 voted in favor of a bill that aims to allow the sale of E15 fuel blends within the state. California is the only state that has not approved the sale of E15, a gasoline blend that contains up to 15% ethanol.

The bill, ABX2-9, was introduced by California Assemblywoman Cottie Petrie-Norris on Sept. 24. The bill on Sept. 27 unanimously passed out of the Petroleum and Gasoline Supply Committee. The California Assembly on Oct. 1 voted 68 to zero in favor of the bill, which is now under consideration by the California Senate.

The bill would require the California Energy Commission, in consultation with the California Air Resource Board, to report to the legislature by July 1, 2025, on specified potential solutions to increase the supply of gasoline within the state as identified by the 2024 CEC Transportation Fuels Assessment. The bill allow allows CARB to adopt a fee on ethanol producer to cover all of a portion of the agency’s costs associated with the development, implementation, and enforcement of gasoline blends containing between 10% and 15% ethanol by volume. Those fees cannot exceed $5 million collected over five years. The bill would require CARB to complete its multimedia evaluation of E15 by July 1, 2025.

The 2024 CEC Transportation Fuels Assessment included several potential strategies that could increase the production of gasoline by modifying fuel standards. One of those strategies the report said is worthy of analysis is the modification of fuel standards to increase ethanol blending to 15% by volume.

According to an analysis of the legislation published by the California Assembly, multimedia evaluations are conducted by a working group and typically take 2-5 years to complete. They are performed based on a three-tier structure. CARB began the process of a multimedia evaluation for E15 in 2018. A Tier III report, the multimedia risk assessment final report, was circulated to relevant agencies in late 2022, but little progress has been made since that time, with CARB currently estimating that at least another full year may be needed to complete the entirety of the multimedia evaluation.

ABX2-9 would accelerate the process underway at CARB to evaluation, but does so while preserving the existing statutory requirements. The bill analysis explains that slow progress on CARB’s E15 work has raised concerns about the agency’s resource constraints to finish the work. The fee levied on ethanol producers aims to help overcome those resource constraints.

Additional information is available on the California legislature website. READ MORE

Excerpt from Argus Media: An attempt by California lawmakers to eventually allow the sale of a 15pc ethanol blend gasoline (E15) to temper consumer fuel prices in California has likely stalled in the state senate.

ABX2-9, sponsored by state assembly member Cottie Petrie-Norris (D), would have required the California Air Resources Board (CARB) to finish its evaluation of the potential for moving to an E15 blend from E10, the highest ethanol blending approved in the state, supported by a fee on ethanol producers.

"As you might imagine, I am extremely disappointed to see this common-sense policy fail to move forward as part of the extraordinary session," Petrie-Norris said.

The bill cleared the state assembly with no opposition last week as part of a special session called by governor Gavin Newsom (D) to address retail fuel prices.

ABX2-9, read for the first time on Monday in the state Senate, has been referred to its rules committee for assignment. But the bill will not be referred to the Special Committee on Fuel Supply and Price Spikes for further action, according to state Senate president pro tem Mike McGuire (D).

California, unlike the rest of the country, has a permanent ban on E15 gasoline due to environmental concerns, such as the potential for higher emissions of NOx, which contributes to smog. Outside of the state, retailers are allowed to sell E15 during only the winter months, but the EPA has granted waivers for summertime sales of E15 each of the last three years. READ MORE

The California Senate will not take up an Assembly bill that sought to speed up a state agency’s decision on whether to allow more ethanol in California fuel.

What happened: California Senate President Pro Tem Mike McGuire confirmed Monday that the Senate Special Committee on Fuel Supply and Price Spikes won’t take up Assemblymember Cottie Petrie-Norris’ ABX 2-9 during the special legislative session. The bill, which the Assembly passed unanimously last week, would require the California Air Resources Board to speed up its review of a 15 percent ethanol blend, up from 10 percent today.

“While the goals of this legislation are laudable, and we’re grateful to the Assemblymember’s leadership, a more thorough analysis and additional work is needed on the proposal,” McGuire said in a statement.

McGuire said in the statement that the Senate was “ready to move quickly this week” on ABX 2-1, Gov. Gavin Newsom’s proposal to give the state authority to require oil refiners to store more gas to try to prevent price spikes. He said the Senate would continue to look at Petrie-Norris’ proposal for consideration during regular legislative proceedings. READ MORE