California Lawmakers Vote to Allow Sale of Higher-Ethanol Fuel

September 04, 2025

Print This Article Share it With Friends

by Nichola Groom (Reuters/MSN) California lawmakers on Wednesday (September 3, 2025) voted to allow the sale of a higher-ethanol gasoline blend that could help bring down fuel prices in the largest U.S. auto market.

The sale of E15, a blend containing 15% ethanol, would be allowed immediately once the bill is signed by Governor Gavin Newsom. California had been the only U.S. state that did not allow sales of the fuel.

The move likely will benefit biofuel producers and corn farmers, as it is will expand the market for their products to the most populous U.S. state.

California's state Senate passed the bill, AB 30, in a unanimous 39-0 vote. The measure passed the state Assembly in June.

Newsom had directed California regulators last year to study whether the state could increase ethanol blending in gasoline, but that work is not yet completed. California has been grappling with how to rein in skyrocketing pump prices while maintaining its ambitious environmental goals.

"California consumers cannot wait any longer," California Senator Laura Richardson said on the Senate floor while introducing the bill. She pointed to a University of California study that estimated that the fuel's availability could lower gas prices in the state by 20 cents per gallon.

"With today's passage of AB30, California is taking a big step toward lower gas prices and a cleaner, more sustainable future for families across the state," said Geoff Cooper, president of the Renewable Fuels Association, said in a statement.

"Many other states have already seen the benefits of E15 -- healthier air, better engine performance, and cost savings at the pump. Now, California drivers are on the cusp of experiencing those same advantages, and we urge Gov. Newsom to sign the bill into law as quickly as possible." READ MORE

Related articles

RFA Applauds Passage of Bill Legalizing E15 in California (Renewable Fuels Association)
California Senate Votes to Allow More Ethanol in Gasoline Blends (Bloomberg Government)
California Senate unanimously approves E15 bill (Ethanol Producer Magazine)

Excerpt from Renewable Fuels Association: Lower-cost E15 is now just one step away from becoming a legal fuel in California, as the state Senate voted 39–0 today to pass Assembly Bill 30. The bill, which would legalize E15 immediately upon the governor’s signature, now heads to Gov. Gavin Newsom’s desk for final approval. California is the only state in the nation that does not currently allow the sale of E15.

“With today’s passage of AB30, California is taking a big step toward lower gas prices and a cleaner, more sustainable future for families across the state,” said Geoff Cooper, president and CEO of the Renewable Fuels Association. “Many other states have already seen the benefits of E15—healthier air, better engine performance, and cost savings at the pump. Now, California drivers are on the cusp of experiencing those same advantages, and we urge Gov. Newsom to sign the bill into law as quickly as possible. E15 will provide relief at the pump for Californians who continue to face the highest gas prices in the country.”

Cooper continued, “We applaud the California legislature for swiftly passing this critical bill, and we especially thank the bipartisan California Problem Solvers Caucus for bringing awareness and attention to this issue. AB30’s sponsors, Assemblymembers David Alvarez and Heath Flora, also deserve special recognition for their leadership in opening the California marketplace to more affordable, cleaner fuel options.”

“California’s regulatory agencies have reviewed the E15 gasoline blend for nearly eight years and have yet to issue any rulings,” said Assemblymember Alvarez. “This unnecessary holdup has prevented California’s drivers from accessing a cleaner, more affordable fuel option that’s already approved across the country. AB 30 sends a clear message: Californians cannot afford to wait while bureaucracy stalls progress. This bill delivers economic benefits to Californians struggling with high fuel prices, and I am especially grateful to the Problem Solvers Caucus for their partnership on this commonsense solution.”

Recent studies show E15 could save California drivers $2.7 billion annually, or $200 per household, and significantly cut the emissions of tailpipe pollutants that create smog and contribute to illness and disease.

Gov. Newsom has expressed his support for legalizing E15, saying last year that “there is massive potential for this [E15] to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean.”

RFA has been leading the effort to secure E15 approval in California for the past seven years, Cooper noted, beginning with the 2018 initiation of a “multimedia evaluation” of E15 in collaboration with the California Air Resources Board (CARB) and other ethanol industry stakeholders. While California’s recently finalized 2025-2026 state budget includes funding for CARB to complete the E15 approval process, AB30 allows the fuel to be sold while CARB’s work progresses.

This week, RFA began hosting a series of E15 educational workshops this fall for California fuel marketers, equipment suppliers, and others in the supply chain who are interested in making lower-cost, cleaner-burning E15 available to drivers. READ MORE

Excerpt from Ethanol Producer Magazine: Under a state law implemented in 1999, any regulatory change to California’s gasoline blend requires a multimedia evaluation and approval by the California Environmental Policy Council—an intensive process unique to California.

The 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. The California Air Resources Board 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. As of late 2024, CARB estimated at least another year could be required to complete the multimedia evaluation process.

California lawmakers and Gov. Gavin Newsom took action last year to try to expedite the availability of E15. The California Assembly in October 2024 unanimously approved a bill that aimed to require CARB to complete its multimedia evaluation of E15 by July 1, 2025. The state Senate, however, failed to take action on the bill. After the E15 bill failed, Newsom directed CARB to accelerate efforts to approve E15 sales.

...

The current version of the legislation would allow for the sale of blends of gasoline containing 10.5% to 15% ethanol by volume in the state for use as transportation fuel until CEPC completes its review and publicly posts the findings of its multimedia review of E15 as required by existing law, and CARB either adopts a regulation establishing a specification for E15 or posts an assessment on its website demonstrating that it is not possible for a proposed regulation establishing a specification for E15.

...

Growth Energy also applauded passage of the bill, predicting the use of E15 could save California drivers 10 to 30 cents per gallon.

“After nearly 15 years since E15 was first approved by the U.S. Environmental Protection Agency (EPA) and has been legal to sell in every other state, California has finally approved E15 for use in the nation’s second-largest fuel market,” said Emily Skor, CEO of Growth Energy, after the Senate approved the bill. “We thank Assembly Member David Alvarez and the Problem Solvers Caucus for continuing to push to make this cost-saving fuel available to Californians and we urge Governor Newsom to sign AB 30 into law right away.”

“Growth Energy has already begun to provide technical expertise in support of CARB’s still-forthcoming E15 approval rulemaking, and we encourage the state to identify other ways to maximize the impact AB 30 can have in the short-term,” Skor added. “With AB 30, the legislature heard and responded to California drivers that demanded more affordable fuel options. We thank lawmakers for listening, and look forward to working with fuel retailers and state regulators to get this fuel into the tanks of California motorists as quickly as possible.” READ MORE