Ethanol Conversion: Lawmakers Seek Alternatives Amid Rising Fuel Costs

May 26, 2026

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by Alejandro Lazo and Yue Stella Yu (CalMatters/LAist) In the face of the nation’s highest gas prices, California lawmakers approved a bill to ease restrictions on E85 conversion kits — devices that let conventional gasoline cars run on a cheaper, mostly ethanol fuel blend.

Background: The measure is the latest example of Sacramento lawmakers scrambling to respond to gas costs that have soared amidst the Iran-Israel war, which has rattled global oil markets and pushed California pump prices above $6 a gallon. It now heads to the California state Senate and would need Gov. Gavin Newsom’s approval before it becomes law.

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In the face of the nation's highest gas prices, California lawmakers approved a bill to ease restrictions on E85 conversion kits — devices that let conventional gasoline cars run on a cheaper, mostly ethanol fuel blend.

Assembly Bill 2046, dubbed the “Access to Affordable Gas Act” by its author, Assemblymember Rhodesia Ransom, a Stockton Democrat, advanced through the Assembly on a 59-0 vote with no debate or opposition.

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If approved in its current form, the measure would exempt manufacturers of E85 converter kits from an approval process by the state’s primary climate regulator, the California Air Resources Board, which requires companies to demonstrate the devices do not increase a vehicle's emissions. The bill would leave in place a separate federal certification process run by the Environmental Protection Agency.

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The converter kits, which cost between $800 to $1,250, according to a legislative analysis of the bill, would let drivers convert their cars to run on both gasoline and E85 fuel.

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While E85 is typically priced lower than gasoline and can reduce petroleum dependence and carbon emissions, it delivers 20% to 30% fewer miles per gallon, according to the air board, meaning drivers only save money when E85 is priced at least 20% to 30% below gasoline.

About 1.3 million vehicles in California can currently use the fuel, which is sold at about 640 stations statewide — just 3% of the state’s more than 15,000 fuel pumps, according to the bill analysis.

Ransom said more E85 pumps would be built if the state loosened restrictions and encouraged demand for the fuel blend. She stressed that her bill would present E85 as an alternative.

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Environmentally, the fuel is rated cleaner than regular gasoline by California's Low Carbon Fuel Standard. READ MORE

Related articles

California's Ethanol Opportunity (Ethanol Producer Magazine)
The suspense is over (Politico)
Sick of high gas prices? Ethanol blend fuel is lower-priced, but there's a catch (Los Angeles Daily News/Merced Sun-Star)

Excerpt from Politico: Also left on the cutting room floor: legislation by Assemblymember Rhodesia Ransom, AB 2046, that would have allowed drivers to install conversion kits to enable their cars to run on high-ethanol fuel. California is the only state that hasn’t approved these kits, which allow standard gasoline and hybrid vehicles to run on fuel containing 85 percent ethanol. E85 fuel is on average $1.50 to $2.00 per gallon cheaper than gasoline. READ MORE

Excerpt from Los Angeles Daily News/Merced Sun-Star:

In fact, only about 1.3 million vehicles on the road in California are flex-fuel vehicles, out of a total of about 30.8 million registered in the state, according to the Department of Motor Vehicles. Not very many.

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“It is all due to expensive gas prices. E85 is a natural competitor to gasoline when gasoline is more expensive,” said Jeff Wilkerson, manager of government policy and regulatory affairs for Pearson.

“E85 is a more tame fuel when it comes to price. It is not impacted by the war in Iran or a refinery outage,” he added, because the source is American corn or plant waste that gets turned into alcohol.

The price of unleaded gasoline has risen from last year, and analysts say that’s because of the U.S. war in Iran and the closure or near-closure of the Strait of Hormuz, greatly limiting oil supplies to the United States and other countries. The lower supply causes a hike in pump prices.

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Some like owning flex-fuel vehicles and using E85 because it is a cleaner burning renewable energy source not dependent on foreign oil or geopolitical battles. “People care about the environment. So this is not just for folks who want to save money,” Wilkerson said.

Not many vehicles to choose from

A main problem is that carmakers used to make more flex-fuel vehicles but have moved away from those for more “eco-boost” gas-efficient models. FFVs are usually bigger, more powerful pickup trucks and SUVs. These include 2026 models of the Chevrolet Silverado with a 5.3 liter V8 engine, and a very similar GMC Sierra. All flex-fuel vehicles can use gasoline or E85.

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For people who want to go flex fuel for the savings, buying a V8-powered SUV or truck might be out of their price range. That’s why the Complete Flex Fuel Buyer’s Guide from the E-85 Gas Finder site recommends searching the used, FFV-vehicle market. Most are 10 years old, including Chevy Suburbans and Tahoes. The Ford Explorer was a FFV model until model year 2024.

FFV sedans — no longer made — include the Mercedes-Benz C-Class and E-Class with V6 engines made through 2016, as well as the Buick LaCrosse V6, with the newest model from 2016.

“There are still 2015-2017 (FFV) models that are trucks and Suburbans, and larger SUVs,” Wilkerson said.

Many people don’t know they are driving a flex-fuel vehicle. The carmakers sometimes hide the notification inside the fuel door. “If you don’t know what you are looking for, there’s a good chance you wouldn’t know you are driving a flex-fuel vehicle,” he said.

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Legislation on the move Instead of buying a FFV, aftermarket flex-fuel conversion kits can adapt your regular car into a flex-fuel vehicle. However, that kind of conversion kit is not available in California, though it is in 49 other states and in many countries.

“I know a company from France that has installed 250,000 of these devices on vehicles,” Wilkerson said.

Assembly Bill 2046 would allow conversion kits to be sold in California and installed on regular vehicles. The bill has bipartisan support and passed the Assembly without a no vote, as well as the Senate appropriations committee.

On Aug 3, it was placed on the suspense file. The bill is frozen until the Senate committee votes to move it forward. “It is not uncommon for bills to go to suspense. We believe it will go forward. It has bipartisan support,” said Assemblymember Rhodesia Ransom, D-Tracy, the bill’s author.

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She sees her legislation as a way to help drivers find some relief from high gas prices. “This is about choices,” she said. “California should not be the only state in the nation where you can’t access this fuel kit. If California is serious about the affordability crisis, we should not get in the way of folks accessing a tool that can help them.”

The cost of a conversion kit ranges from $800 to $1,200, according to the legislative analyst report on the bill. The California Air Resources Board objects to the bill because it would bypass their authority and make the modified cars subject only to U.S. Environmental Protection Agency approval, observers point out.

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Ransom called that a “manufactured opposition” that “has no bearing on reality.” She pointed out that cars using E85 still must pass the state Smog Check.

Also because ethanol burns cleaner and is 100% octane, it provides more power but reduces fuel economy by between 15% and 20%. So using E85 means fewer miles to the gallon. Wilkerson said that pencils out in California, where the price of gasoline is a lot higher than in other states.

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She added that moving California drivers away from fossil fuels could bring more economic stability. “I don’t think we will get rid of our dependency on fossil fuels,” she said. “But this will give us more security. Global conflicts hold us hostage to the price of our fuel.” READ MORE