California E85 Sales Set New Record in 2023

(Growth Energy) Growth Energy, the nation’s largest biofuel trade association, welcomed the release of new data from the California Air Resources Board (CARB) showing that sales of E85 set a new record in the state in 2023.

“Californians used more E85 than ever last year, a fact that demonstrates how enthusiastic consumers are about higher biofuel blends, and their need for more ways to reduce their carbon footprint and save at the pump,” said Growth Energy CEO Emily Skor. “Everyone wants to help lower carbon emissions, and higher biofuel blends are one of the most affordable ways for them to do so. California and policymakers across the country should take note of E85’s meteoric rise in the Golden State and continue to lower consumer costs by increasing biofuels’ share of the American fuel tank.”

“California should also fast track its approval of E15—another more affordable fuel blend made with 15% bioethanol that can be used in nearly-every light-duty vehicle or truck on the road today, whether it’s a flex-fuel vehicle or not,” Skor added.

Retailers feel the same way, according to Growth Energy Vice President of Market Development Jake Comer.

“California’s E85 numbers demonstrate that retailers and consumers alike are demanding greater access to more affordable biofuel blends. That’s why we’ve been spending a lot of time working with California retailers to help them offer these products,” said Comer. “However, when retailers ask us about offering E15, we have to deliver the unfortunate news that they aren’t allowed to sell E15 in California. Many of these retailers operate in multiple states and have seen the success of E15 elsewhere, so there is strong pent-up demand to offer this fuel option. We’re hoping that California—the only state that doesn’t allow E15 to be sold—will soon give customers and retailers more affordable, lower carbon biofuels at the pump.”

California is the only state in the U.S. where E15—a blend made with 15% bioethanol that is approved by the U.S. Environmental Protection Agency (EPA) for use in all vehicles made in model year 2001 and newer—is not approved for sale. Still, fuel retailers in the state have taken steps to sell more E85 to California drivers, including through the use of funds awarded through the Higher Blends Infrastructure Incentive Program (HBIIP), a federal infrastructure grant program that helps fuel retailers offer higher biofuel blends, and that continues through most of this year. Growth Energy’s industry-leading Market Development team supports retailers writing grant submissions and guides retailers on the best way to market biofuels. California had 52 fuel stations apply for HBIIP funding in round one, and 25 apply in round two. We would expect even higher interest from retailers if California were to approve E15. READ MORE

The record use of lower-cost E85 in California saved the state’s drivers $99 million in 2023, while cutting greenhouse gas emissions by nearly 370,000 metric tons, a new analysis from the Renewable Fuels Association shows. A record 118.5 million gallons of E85 flex fuel, containing 85 percent ethanol, were sold last year, a 14 percent increase over 2022 and nearly double the volume of 2021.

“E85 continues to be an increasingly popular fuel option for the Golden State,” said RFA Senior Vice President for Industry Relations and Market Development Robert White. “Thanks to the efforts of leading fuel marketers like Pearson Fuels and Propel Fuels, more Californians are taking advantage of the lowest-cost fuel available in the marketplace. By choosing E85, these drivers are making a positive impact on their communities by reducing carbon emissions and slashing the harmful tailpipe pollution that causes air quality and health concerns.”

White noted that California’s Low Carbon Fuel Standard and the federal Renewable Fuel Standard are providing a strong incentive for retailers and marketers to increase E85 sales. “The LCFS policy is certainly doing its job to stimulate demand for lower-carbon, more affordable fuels,” White said. “Now it’s time for automakers to step up and expand their flex fuel vehicle (FFV) offerings so even more drivers can enjoy E85’s economic and environmental benefits.”

According to E85prices.com, the average retail price of E85 in California in 2023 was $3.17 per gallon, compared to an average price of $5.01 per gallon for E10 gasoline—an average price discount of 37 percent. With 1.34 million FFVs on the road in California, the average FFV owner saved $74 on their annual fuel bill.

"Retail gasoline remains expensive in California,” said Doug Vind, Pearson Fuels managing member. Pearson sells E85 at 350 locations across California. “That fact, coupled with our ability to continually add stations to our network, indicates to us that we're far from reaching a peak in E85 consumption. E85 can be fully renewable, dramatically lower in carbon and meaningfully more affordable at the pump. It's what is helping California carve its path to a zero-emission future without hurting those who can't buy an EV or pay $6 for a gallon of gasoline.”

"California should be doing everything it can to encourage FFV owners to use E85,” Vind added. “Volumes are increasing while only a few hundred thousand drivers may have access to it. We need to get more FFVs on the road immediately to reduce petroleum consumption, provide consumers with relief from high gas prices and realize substantial carbon reductions.”

The RFA analysis further states that using E85 resulted in the avoidance of 369,518 metric tons of greenhouse gas emissions in California in 2023 alone—equivalent to removing more than 82,000 gasoline-powered passenger vehicles from the road for the entire year.

"The unique combination of California's low-carbon economy and entrepreneurial culture has created a win-win-win for consumers, fuel retailers and farmers,” said Rob Elam, founder and CEO of Sacramento-based Propel Fuels. “Propel is proud to have led the way bringing innovative E85 marketing and supply to the California market."