Calif. E15 Bill Passes Unanimously

LINCOLN, Neb. (DTN) -- California lawmakers moved one step closer to allowing E15 sales in the state on Wednesday, as the California Assembly unanimously passed legislation to allow for immediate sales while the California Air Resources Board finalizes a rulemaking process.

Assembly Bill 30 is tabbed as a so-called "urgency statute" and passed 77-0 in the state assembly. It now heads to the state senate where it will need a two-thirds majority vote to pass.

If the senate passes the bill and it is signed by the governor, it will take effect immediately rather than on the standard Jan. 1 in California.

California is the only state that doesn't allow E15 sales. The legislation is likely to have support from outgoing Democratic Gov. Gavin Newsom.

In October 2024, Newsom directed the California Air Resources Board to take immediate steps toward allowing E15 sales.

At the time, Newsom said in a letter to CARB Chairman Liane Randolph that, "Given the potential for allowing E15 gasoline to increase fuel supply and reduce gasoline prices, with little to no environmental harm, it is prudent for CARB to prioritize resources that would allow for the expeditious completion of this process."

In July 2024, the University of California, Berkeley, and the U.S. Naval Academy released a study that found state consumers could save up to $2.7 billion annually if E15 was made available.

That study found California drivers could save about 20 cents per gallon on E15.

An earlier 315-page study commissioned by the California Air Resources Board and conducted by scientists at the University of California, Riverside, found E15 sales in California could also provide environmental benefits, cutting emissions of tailpipe pollutants like particulate matter and carbon monoxide that cause air quality and human health problems.

Renewable Fuels Association President and CEO Geoff Cooper said in a statement that the bill's passage "represents a clear win-win for both California consumers and the environment."

Jeff Wilkerson, manager of government policy and regulatory affairs at Pearson Fuels based in California, said "affordability" is paramount focus in the state legislature this year and the potential costs savings of E15 is taking center stage.

Pearson Fuels is a leading provider of higher ethanol blends in the state including E85.

"Housing availability, high insurance rates and increasing gasoline prices have each been areas of focus," Wilkerson told DTN.

"But gasoline prices have been the easy target because of Gov. Newsom's special sessions, CARB's LCFS vote and the resulting blowback, and recent news of two refineries planning to exit the state. This is a near perfect setup for leaning on higher ethanol blends, which help address each of those issues."

According to a news release from a group of California Assembly members calling themselves the "California Problem Solvers Caucus," Newsom proposed giving CARB $2.3 million in his May budget proposal to help CARB finalize its E15 rule-making process.

"For too long, the California Air Resources Board has delayed action on E15 fuel -- despite its proven track record across the country," assembly member David Alvarez said in a statement.

"This unnecessary regulatory holdup has prevented consumers from accessing a cleaner, more affordable fuel option. AB 30 sends a clear message: Californians cannot afford to wait while bureaucracy stalls progress. It's time CARB considers not just environmental impacts but the economic benefits to everyday consumers who are struggling with high fuel prices."

California has the highest average gasoline price in the country, at $4.73 per gallon as of June 4, 2025.

Central Valley assembly member Heath Flora said in a statement the E15 legislation was urgent because of rising gas prices.

"My constituents and most people in the Central Valley drive long distances every day, paying upwards of $5 for a gallon of gas," Flora said.

"AB 30 will have an immediate impact on gas prices and provide much-needed relief."

Read more on DTN:

"California Adoption of E15 Could Save State Consumers Billions," https://www.dtnpf.com/…

"California Governor Directs State Agency to Make E15 Available to Consumers," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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