E15 Coming to California for First Time

LINCOLN, Neb. (DTN) -- The California Senate on Wednesday voted unanimously on a bill to sell E15 in the state for the first time. The measure now heads to Gov. Gavin Newsom, who is expected to sign it into law.

California is the only state that doesn't allow E15 sales.

In October 2024, Newsom directed the California Air Resources Board to take immediate steps toward allowing E15 sales. Because the legislation is tabbed as a so-called "urgency statute" it will take effect immediately rather than on Jan. 1. The California Assembly passed the 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 has accelerated this year because the state is seeing an increasing number of oil refineries close, raising concerns about lower gasoline supply and higher prices.

"With today's passage of AB 30, California is taking a big step toward lower gas prices and a cleaner, more sustainable future for families across the state," said Geoff Cooper, president and CEO of the Renewable Fuels Association.

"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 on the cusp of experiencing those same advantages and we urge Gov. Newsom to sign the bill into law as quickly as possible. E15 will provide relief at the pump for Californians who continue to face the highest gas prices in the country."

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.

In 2024, Newsom said in a letter to CARB Chairman Liane Randolph, "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."

Growth Energy CEO Emily Skor said her organization is providing "technical expertise" to support the upcoming E15 rulemaking in California.

"After nearly 15 years since E15 was first approved by the U.S. Environmental Protection Agency and has been legal to sell in every other state, California has finally approved E15 for use in the nation's second-largest fuel market," she said.

"With AB 30, the legislature heard and responded to California drivers that demanded more affordable fuel options. We thank lawmakers for listening and look forward to working with fuel retailers and state regulators to get this fuel into the tanks of California motorists as quickly as possible."

Cooper said the RFA credits AB30's sponsors including Assembly members David Alvarez and Heath Flora who pushed the bill across the finish line.

"California's regulatory agencies have reviewed the E15 gasoline blend for nearly eight years and have yet to issue any rulings," Alvarez said in a statement.

"This unnecessary holdup has prevented California's drivers from accessing a cleaner, more affordable fuel option that's already approved across the country. AB 30 sends a clear message: Californians cannot afford to wait while bureaucracy stalls progress. This bill delivers economic benefits to Californians struggling with high fuel prices."

Last year, Newsom, who is not running for reelection, expressed support for E15 as a "win-win" for Californians.

RFA has been leading the effort to secure E15 approval in California for the past seven years, Cooper said. That began with the 2018 initiation of a "multimedia evaluation" of E15 in collaboration with CARB and other ethanol industry stakeholders.

California's recently finalized 2025-26 state budget includes funding for CARB to complete the E15 approval process and AB30 allows the fuel to be sold while CARB's work progresses.

Read more on DTN:

"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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