Ethanol Producers Blame California Fire Marshal for Blocking E15 Sales

April 30, 2026

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(Inside EPA) Ethanol producers are asserting that the Newsom administration and California State Fire Marshal are essentially blocking the sale of 15 percent ethanol blends of gasoline (E15) -- despite last year’s law directing state officials to expedite such sales -- by maintaining that current vapor recovery equipment is not certified for E15 and must be. “The manufacturers of this equipment are all stating that their equipment is compatible with E15 and they will provide warranties to this effect,” Neil Koehler, a... READ MORE

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A cheaper gas blend is legal in California. Here’s why you still can’t buy it (San Francisco Chronicle)
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E15 Implementation in California Not a Sure Thing: Industry Official (OPIS)

Excerpt from Bloomberg: California lawmakers voted last year to allow the sale of gasoline containing up to 15% ethanol in a bid to lower fuel costs for consumers, but the industry says a drop has yet to flow as prices climb at the pump.

Ethanol producers say the state’s attempt to cut red tape has tied up gas stations and fuel producers further as regulators contend fuel pump equipment must be newly certified as safe to operate with E-15, a process the industry’s advocates say could take months or more than a year.

“That’s it. We’re down to this,” said Neil Koehler, policy ... READ MORE

Excerpt from Energy.AgWired.com: It was October 2025 when Governor Gavin Newsom signed legislation making way for lower cost 15 percent ethanol fuel (E15) to be made available for the first time in the state, but eight months later it has yet to happen.

At this week’s Fuel Ethanol Workshop, Robert White with the Renewable Fuels Association explained that the will of the state government is tied up in red tape regarding California’s unique stage two vapor recovery equipment.

“Stage 2 vapor recovery is a boot on the end of the nozzle when you fuel your vehicle that captures the vapor from the fuel as it enters the vehicle,” said White. “Unfortunately, it is a necessary requirement because the vehicles that would be approved to use E15 have onboard vapor recovery system that a lot of people don’t realize is there….So all we’ve been trying to say is they could use enforcement discretion, they could use various opportunities that they do at stage one and other pieces of equipment that they use at gas stations to allow E10 certified equipment to allow E15 because all of those systems were tested on E15. It’s just they were listed at E10. And the state fire marshal has dug in. They don’t seem like they’re ready to move. And so eight months later, here we sit.”

Meanwhile, White says sales of E85 in California continue to grow as retail prices are significantly lower compared to regular unleaded. “It’s crazy to think that, in Kansas City, I think the biggest discount I can find is 80 cents, maybe a dollar discount on E85. And you go to California and $2 or $3, we even saw a $4 discount in Glendale, California a couple of weeks ago from E85 to regular gasoline,” said White. “So flex fuel vehicles are definitely in high demand and we’re seeing more and more E85 stations being added – they just crossed 650 in the state.”

Learn more in this interview from FEW.
Play RFA Senior VP, Industry Relations and Market Development Robert White 12:25 READ MORE

Excerpt from Ethanol Producer Magazine: Over the past 10 years, California’s annual E85 volumes sold have increased by more than 600%. In 2015, the total volume purchased in the state was about 15 million gallons. In 2025, consumers bought 110 million gallons (118 million gallons in 2023). Since 2022, Californians have averaged purchasing just under 112 million E85 gallons annually.

The sharp rise of E85 usage can be directly linked to fuel providers like Pearson Fuels. The San Diego-based company announced in late April the opening of its 500th E85 fueling station. In total, the state has roughly 625 E85 pump locations.

“With some retail gasoline above $6 a gallon right now, E85 is providing significant savings to drivers,” says Doug Vind, managing member of Pearson Fuels, following the installation of fueling station 500.

At the time of Pearson’s announcement, E85 was selling for $2.50 per gallon less than gasoline. The lower price has always been a staple for justifying the use of the fuel, and that cost advantage has helped Pearson expand access to ethanol’s highest U.S. blend.

But growing E85 is only part of California’s continued ethanol evolution. In 2026, expanding ethanol use in the Golden State is also about technology—getting E85 conversion kits approved for use; persistence—navigating the final bureaucratic obstacles to E15 implementation; and adherence—finding creative ways to comply with the California Air Resources Board’s new feedstock sustainability requirements for ethanol coming into the state.

E85 Conversion Kits

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In February, (California Assemblymember Rhodesia) Ransom introduced AB 2046, legislation, aimed at giving consumers access to affordable gas by allowing them to legally install federally approved E85 conversion kits. At press time in late May, the bill had advanced through the state assembly and was awaiting action in the senate.

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The CFCA (California Fuels and Convenience Alliance) has been vocal about the impact of the Iran conflict on fuel supply and high gas prices, in a state that is highly susceptible to international oil price volatility.

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The E85 kits work by reading the ethanol content of the fuel in real time and sending adjusted signals to the vehicle’s fuel injectors, according to Pearson. The technology allows the engine to optimize fuel delivery. “One of the most common misconceptions is that higher ethanol blends damage engines,” the company states. “Modern vehicles are already built with materials compatible with ethanol. The limitation isn’t the hardware—it’s that the engine’s software isn’t designed to adjust to higher ethanol content without guidance. That’s exactly what the conversion kit provides.”

E15 Implementation
Despite the October 2025 passage of year-round E15 blending, Californians are still waiting for their chance to fill up with E15 blends, as CARB works through the implementation process. The primary issue is that CARB has not certified the proper vapor recovery equipment for use with E15.

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CARB also says that before it can provide these certifications, state law requires approvals from four other state agencies: the Department of Industrial Relations (a division of Occupational Safety and Health), the Department of Forestry and Fire Prevention (State Fire Marshall), the California Department of Food and Agriculture (a division of Measurement Standards) and the State Water Resources Control Board.

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Sustainability Requirements
Producers looking to supply California with ethanol for any blend level will need to understand new feedstock sustainability requirements. Under the revamped Low Carbon Fuel Standard, CARB is now calling on producers to report the point of origin for their feedstocks, along with a number of other LCFS changes adopted this year.

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According to CARB, beginning with the 2026 data year submitted in 2027, holders of pathways utilizing biomass must maintain attestations showing when the biomass was planted, contracted and harvested after July 1, 2025. Geographical shapefiles or the coordinates of plot boundaries must be provided to CARB to show the physical location of the biomass used to produce renewable fuel supplied to the LCFS program.

The point-of-origin requirement was debated for several months prior to implementation by CARB. The RFA and Growth Energy both expressed opposition. The phase-in timeline for the full set of requirements for crops like corn, soybean or other feedstocks will culminate in 2031. This year, the main requirement for producers is the supply of geographical shapefiles or coordinates. From 2026 on, producers will need to maintain that information and provide it to CARB as necessary.

In an April webinar, CARB provided clarity on the new point-of-origin requirements. Carmen Meiaula, air pollution specialist for CARB, said the agency is evaluating multiple strategies that would allow producers to show plot boundaries, including satellite imagery.

During the Q&A portion of the webinar, a participant asked if plants outside of California need to record and account for all of the feedstock used at a given biorefinery, or only the amount of feedstock used to produce fuel supplied to California. For example, if a plant produces 100 million gallons of renewable fuel per year but only supplies 1 million gallons of that fuel to California, does 100% of the feedstock used at the plant need to be accounted for and shown to meet the requirements of the LCFS sustainability metrics?

A CARB representative said only the feedstock used to produce the fuel supplied to California would need to be accounted for with point-of-origin requirements for sustainability. CARB is using a mass balance approach for reporting, so the feedstock used at the plant for California would not have to be stored separately or treated differently. A follow-up question from the same participant centered on corn kernel fiber and its requirements. According to CARB, CKF is not subject to sustainability requirements under new LCFS point-of-origin policy. READ MORE

Excerpt from San Francisco Chronicle: “We don’t understand why it’s taking so long when this fuel has been in the marketplace for 15 years outside of California.”

‘Time-consuming’ certification

Multiple state agencies must certify gasoline equipment as E15 compatible, including the California Air Resources Board, the State Water Resources Control Board, the Division of Occupational Safety and Health, and the California Department of Food and Agriculture. The Office of the State Fire Marshal is a key remaining regulatory barrier, according to Cooper ( Geoff Cooper, the president of the Renewable Fuels Association).

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The Office of the State Fire Marshal requires manufacturers to update existing vapor-recovery certifications to show that gas-station equipment, including hoses and nozzles, is compatible with E15 and does not release excessive gasoline vapors into the air. To do so, manufacturers must submit a complete test report from a laboratory specifically approved by the fire marshal’s office.

Cooper argued the process is time-consuming, costly and ultimately unnecessary, since manufacturers have already checked compatibility and have written warranties on the equipment for E15.

Cal Fire spokesperson Chris Baker said in an email that the fire marshal “recognizes the urgency of bringing E15 to market and is acting quickly to support that effort without compromising safety. We’re working directly with manufacturers, testing labs, and state partners alike to streamline requirements and remove bottlenecks, our office is committed to providing a clear and predictable path forward.”

Cal Fire did not respond to additional questions on its certification process and timeline. READ MORE

Excerpt from OPIS:

The long-awaited manifestation of E15 retail sites in California may not come to fruition if a current stalemate is not resolved, an industry official warned Wednesday.

“All the regulatory hurdles have been cleared for E15 through guidance from the relevant agencies with the notable exception of the Offices of the State Fire Marshall (OSFM),” Neil Koehler, a policy advisor with the Renewable Fuels Association, told OPIS.

Koehler was previously co-founder and co-CEO of Pacific Ethanol, now known as Alto Ingredients.

“If the current OSFM impasse is not resolved, there is a chance that E15 won’t be implemented.”

Koehler nevertheless indicated that he remains hopeful regarding the situation. “Given the overwhelmingly positive economic and environmental benefits of E15 and the lack of safety issues with E15, I am optimistic that saner minds will prevail,” he said.

The process could move quickly if the correct decision is made, according to Koehler.

“E15 could be implemented in a matter of weeks once the regulatory framework is in place,” he claimed.

California moved in October to permit usage of the fuel blend, with Gov. Gavin Newsom’s signature on Assembly Bill 30 (AB30) ending its long-running status as the final state without access to the higher blend of ethanol. Koehler expressed annoyance with the process up to this point.

“OSFM is asserting that the vapor recovery equipment on the dispensing nozzles is not certified for E15, and millions of dollars of new and unnecessary testing and costly new equipment purchases will be required to certify for E15,” he said. “Unnecessary, because E15 was the test fuel for the E10 certifications, so there is no imaginable health or safety risk utilizing the existing equipment.”

Other than that dispute, Koehler indicated that there should be no other holdups.

“Marketers are ready to go,” he said. “Given today’s economics, E15 can materially reduce consumer prices, provided desperately needed new incremental fuel supply with the closure of refineries and the Iran war, while significantly reducing emissions relative to E10.

“The health and welfare of California citizens is being threatened by the lack of full implementation of AB30.” READ MORE