Gov. Gavin Newsom signed a bill authorizing the sale of E15 gasoline in California, ending its status as the only state barring the 15% ethanol blend. Supporters say Assembly Bill 30 will help cut gas prices for consumers, expand demand for ethanol and provide environmental benefits, while regulators continue reviewing the fuel’s impa
The California action comes as farmers are scrambling for new markets to make up for stagnant exports. Expanding E15 usage is a top policy priority for the nation's corn growers.
The measure by Assemblymember David Alvarez, D-San Diego, cleared the Legislature with unanimous support in both chambers. It allows E15 sales immediately while the California Air Resources Board completes its ongoing evaluation of the blend to ensure compliance with state clean air standards.
Backers point to research showing E15 could reduce pump prices by up to 20 cents per gallon, potentially saving California drivers up to $2.7 billion annually, equating to $200 per household.
“While we continue the critical work to stabilize our state’s fuel market, we’re cutting red tape to provide consumers with more options as we continue our transition to cleaner transportation,” Newsom said in a signing statement.
Alvarez described the law as a practical step to reduce costs and maintain environmental commitments.
“AB 30 is an example of how we can solve problems thoughtfully in California,” said Alvarez. “By authorizing the sale and use of E15 gasoline, we can reduce the cost of gas and maintain our commitment to a cleaner environment.”
The ethanol industry hailed the governor’s action as a breakthrough for the nation’s second-largest fuel market. Growth Energy CEO Emily Skor pointed out that it has been nearly 15 years since U.S. EPA first approved E15.
“California has finally approved E15 for use in the nation’s second-largest fuel market,” said Skor in a statement. “With AB 30, the Legislature heard and responded to California drivers that demanded more affordable fuel options.”
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The biofuel association has been providing technical assistance to CARB as it readies for rulemaking. Skor encouraged lawmakers and the governor to identify other ways to “maximize the impact AB 30 can have in the short-term.”
The Renewable Fuels Association, another ethanol industry group, also welcomed the development.
“California is on the road to lower gas prices and a cleaner future for families across the state,” said RFA President and CEO Geoff Cooper. “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 about to experience those same advantages for themselves.”
Implementation will depend on station upgrades, labeling and compatibility checks, while CARB’s environmental review remains crucial. Last year Newsom directed CARB to accelerate the review, after a previous measure on E15 languished in a special session focused on reducing gas prices. The governor has allocated additional spending to accelerate CARB’s implementation of the upcoming E15 regulations.
Some environmental groups have cautioned that ethanol production carries upstream emissions and could conflict with the state’s long-term push toward electrification. Industry advocates counter that most modern vehicles are compatible with E15 and that studies have shown reduced particulate and carbon monoxide emissions.
For farmers and biofuel producers, the bill represents a significant new market. Ethanol producers see California’s move as both an economic opportunity and a precedent for integrating more biofuels into the state’s ambitious climate framework.
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