New Bill Would Let California Drivers Modify Vehicles for Cheaper Ethanol Fuel

February 19, 2026

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by Alex Nieves (Politico Pro) California is the only state that does not allow flex fuel conversion kits. -- California would become the final state to legalize conversion kits that enable cars to run on high-ethanol fuel under a new bill introduced Wednesday (February 18, 2026).

The details: AB 2046, by Assemblymember Rhodesia Ransom, would exempt E85 conversion kits from a state law that prohibits the sale or installation of devices that modify a vehicle's original design or performance, unless those devices have received California Air Resources Board approval.

While the agency has approved thousands of aftermarket parts, it has not cleared any E85 conversion kits, which allow standard gasoline and hybrid vehicles to run on fuel containing 85 percent ethanol.

The bill would exempt conversion kits approved by the U.S. EPA, meaning aftermarket part manufacturers would not need CARB sign-off before selling their products.

Why it matters: AB 2046 is the latest attempt to expand the use of cheaper ethanol amid widespread concerns about gasoline prices.

California is the only state that does not allow drivers to install parts that enable vehicles to run on E85, commonly known as flex fuel. READ MORE

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Excerpt from CBS News: Complaints are growing over California's high gas prices.

"It's terrible," California Assemblymember Rhodesia Ransom (D-Stockton) said. "What we're seeing right now is how quickly global events can drive up gas prices in California."

A gallon of regular gas is now well above $5, but at this E85 fuel is going for much cheaper. But what is E85?

"E85 is a mixture of ethanol and gasoline," said Colin Murphy, with the UC Davis energy futures research program. "It can be anywhere up to 85% ethanol. That's where the E85 comes from."

Murphy says it's predominantly made from corn instead of petroleum, so it's less impacted when global crude oil prices spike.

"It is being viewed as an option for some price relief given the increase in gas prices due to the Iran war," Murphy said.

Now, Ransom is trying to make it easier for more people to use E85.

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"It's typically up to $2.50 cheaper per gallon than regular gasoline," she said.

People who own cars that can't already use E85 can install a conversion kit. But Ransom says those kits have not yet been authorized by California air quality regulators.

Now, she's introducing a bill that would allow people to use these aftermarket fuel modifications.

"What we're seeing is they have not been approving folks' applications, and so we want to fix that," she said.

The conversion kits can cost several hundred dollars and need to be professionally installed.

"Without knowing how long the gas prices are going to be high, it's really hard to say that it is going to be a good long-term investment for somebody who's trying to add these things to their vehicle right now," Murphy said.

But if gas prices continue to climb, Ransom says using E85 could provide drivers some relief.

"It puts Californians and individuals in more control with alternative access to different fuel opportunities," she said.

Some cars may get fewer miles per gallon when using E85. READ MORE

Excerpt from Pearson Fuels: AB 2046, the Access to Affordable Gas Act, is advancing through the California Legislature. If signed into law, it would make California the last state in the nation to legalize EPA-approved E85 conversion kits. It’s a milestone years in the making, and one Pearson Fuels has been proud to champion.

“AB 2046 represents a meaningful step toward expanding fuel choice and improving affordability for California drivers, said Doug Vind, managing member of Pearson Fuels. “We appreciate Asm. Ransom for introducing this bill and the legislators who are helping move it forward.”

What this means for California drivers

If passed, drivers of standard gasoline-powered vehicles would, for the first time, have a legal pathway to convert their vehicles into flex fuel vehicles capable of running on E85, gasoline or any combination of the two fuels.

E85 is a cleaner, more affordable fuel that has been widely available across the United States for years. Until now, most California motorists have been unable to legally access the cost-saving and environmental benefits of E85, unless they were driving an automaker designated flex fuel vehicle.

Under current regulations, any modification to a vehicle’s fuel system requires approval from the California Air Resources Board (CARB). Because CARB has not approved E85 conversion kits, these products are not permitted for use — despite being federally approved by the U.S. Environmental Protection Agency (EPA).

AB 2046 would change that. In a strong early signal of support, the bill passed its first committee with a 16–0 vote. Now, AB 2046 moves to the Assembly Appropriations Committee, the next step in the process before a full Assembly vote.

Authored by Assemblymember Rhodesia Ransom, the legislation would exempt EPA-approved E85 conversion kits from CARB’s approval requirement. Drivers would be able to voluntarily install these kits and choose to fuel interchangeably with E85, gasoline or a combination of the two fuels.

Lower fuel costs, real savings

E85 continues to offer a consistent price advantage compared to conventional gasoline.

Across California, E85 has typically been priced $1.50 to $2.00 per gallon less than gasoline. The price gap is even larger during gas spikes, due to refinery issues or supply challenges.

For many drivers, that translates into hundreds of dollars in annual savings.

Proven technology, already in use

E85 conversion kits are not new or experimental.

These systems are already in use across Europe and throughout the United States. The technology allows vehicles to automatically adjust fuel delivery based on ethanol content, enabling safe operation on higher ethanol blends like E85.

Installation is straightforward and typically completed in just a few hours by a trained technician. No major modifications. No need to replace your vehicle.

Infrastructure is already in place

California’s E85 network is ready.

More than 600 E85 stations operate statewide, including over 450 supported by Pearson Fuels. If AB 2046 passes, the E85 fueling network is expected to continue expanding — giving more drivers access to a lower-cost fuel option.

What’s next

If you already drive a flex fuel vehicle, you can start saving immediately.

Download the Pearson Fuels App to:

Find nearby E85 stations
Compare real-time fuel prices
Access limited-time promotions

For drivers interested in conversion kits, additional information on approved products and installation options will become available as the market develops under the new law.

While this legislation does not solve every challenge facing California’s fuel market, it removes a long-standing barrier and opens the door for broader access to lower cost E85. READ MORE

Excerpt from CBS News: There are already about 1.1 million flex-fuel vehicles on California roads that can use E-85.

"When you see $5 or $6 for a gallon of gasoline, it's a shock to the system," said Jeff Wilkerson with Pearson Fuels. "When you go by a station that has E85 for $2.99…that's a meaningful difference for a lot of people."

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Wilkerson said E-85 is typically cheaper because ethanol costs less than gasoline and is completely produced domestically, making it less vulnerable to global supply disruptions.

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If approved, the legislation could take effect by the end of the summer. READ MORE

Excerpt from Ethanol Producer Magazine: The California Assembly Transportation Committee on April 7 voted unanimously to advance a bill that aims to allow California drivers to legally install federally approved E85 conversion kits in their vehicles. The legislation is now under consideration by the California Assembly Committee on Appropriations.

California is currently the only state where drivers cannot install conversion kits that allow their gasoline-powered vehicles to be fueled with E85. State law requires any aftermarket parts that modify a vehicle’s fuel system to be approved by the California Air Resource Board. To date, CARB has not approved any such kits.

California Assemblymember Rhodesia Ransom on Feb. 17 introduced AB 2046, a bill that would update California law to exempt E85 conversion kits approved by the U.S. EPA from the CARB approval requirement. The legislation is currently cosponsored by 14 additional lawmakers. READ MORE