Ethanol Blog
California E15 Rulemaking Could Unlock New Ethanol Market for US Farmers
LINCOLN, Neb. (DTN) -- The state of California has launched a rulemaking to eventually sell E15 in the state, as the California Air Resources Board's proposal comes nearly nine months after ethanol groups pressed for needed regulations.
The state proposed amendments to its reformulated gasoline regulations, including the incorporation of E15 into the framework.
The rule would maintain Reid vapor pressure seasonal restrictions for E15. For example, there are RVP restrictions from April 1 to Oct. 31 in the South Coast, San Diego, Mojave Desert and the Salton Sea Air Basins.
Currently, the U.S. ethanol industry has been relying on waivers from the U.S. Environmental Protection Agency to allow E15 sales to continue during summer months.
Specifically, the proposal calls for allowing fuel producers or importers to blend additional ethanol with E10 to produce E15.
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One of the key concerns outlined in the proposal, according to CARB, is higher ethanol blends that lead to increased permeation emissions -- or vapors permeating rubber hoses and seals in older vehicles and equipment -- releasing volatile organic compounds that contribute to smog.
"CARB's proposed rulemaking represents a critical step toward getting E15 into the fuel tanks of California drivers, who are looking for ways to save money," Growth Energy CEO Emily Skor said in a statement.
"We applaud the agency for maintaining an approach that is consistent with interim rules adopted following passage of AB30 to make E15 available to California drivers."
In October 2024, California Gov. Gavin Newsom directed CARB to take immediate steps toward allowing E15 sales. The California Assembly passed an E15 bill on Aug. 29, 2025.
Allowing E15 sales in California opens a 600- to 800-million-gallon ethanol market at a time when farmers need expanded markets. The move toward E15 in the state accelerated in 2025 because the state is seeing an increasing number of oil refineries close, raising concerns about lower gasoline supply and higher prices.
California's approval of E15 in 2025 "opened the door for significant economic benefits to the state's drivers and agricultural economy," Growth Energy said in a news release.
"We thank Gov. Newsom, Assembly Members David Alvarez, Cottie Petrie-Norris, Heath Flora and the California Problem Solvers Caucus who have made lower-cost fuel options a top priority, as well as regulators at CARB," Skor said.
"We will continue to work with them to make retailer and consumer access to E15 as easy as possible. We also continue to work closely with the state fire marshal's office to clear the final regulatory barriers to bigger savings at the pump."
Read more on DTN:
"E15 Coming to California for First Time," https://www.dtnpf.com/…
Todd Neeley can be reached at todd.neeley@dtn.com
Follow him on social platform X @DTNeeley
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