California lawmakers have approved the sale of E15 gasoline, a 15% ethanol blend, a significant policy shift as the state was previously the sole U.S. state prohibiting its sale. This measure, now awaiting Governor Newsom's signature, is anticipated to reduce fuel prices for consumers by an estimated 20 cents per gallon and substantially expand the market for biofuel producers and corn farmers, addressing both economic and environmental objectives in the largest U.S. auto market.
California's legislature has passed bill AB 30 to authorize the sale of E15 gasoline, a blend containing 15% ethanol, pending the governor's signature. This represents a significant policy shift, as California was the sole remaining U.S. state where the fuel was not permitted. The unanimous 39-0 vote in the state Senate underscores strong political support for the measure, which aims to address high fuel prices while aligning with environmental goals. According to a University of California study cited in the bill's introduction, the introduction of E15 is estimated to reduce gasoline prices by approximately 20 cents per gallon for consumers. The primary commercial beneficiaries of this legislation will be biofuel producers and corn farmers, who gain access to the largest automobile market in the United States, creating a substantial new source of demand for ethanol and its agricultural inputs.
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