California Lawmakers Vote to Allow Sale of Higher-Ethanol Fuel, Paving Way for Low-Cost, Energy-Efficient Gasoline

SACRAMENTO, Calif., Sept. 4, 2025 — The rollout of 15 percent ethanol-blended petrol (E15) in California is now just a step away as lawmakers on Wednesday voted to allow the sale of a higher-ethanol gasoline blend that could help bring down fuel prices in the largest U.S. auto market.

The sale of E15, a blend containing 15 percent ethanol, would get an official nod immediately once the bill is signed by Governor Gavin Newsom.

California had been the only U.S. state that did not allow sales of the fuel.

While the administration insist that E15 represents a leap forward for California’s energy security and environmental commitments, the move is expected to benefit biofuel producers and corn farmers, as it is will offer them a larger market for their products to the most populous U.S. state.

California's state Senate passed the bill, AB 30, in a unanimous 39-0 vote. The measure passed the state Assembly in June.

On directions of Governor Newsom issued last year, California regulators had to conduct studies to ascertain whether the state could increase ethanol blending in gasoline, but that task is not yet completed.

It has been a major challenge for California to explore measures to control the skyrocketing pump prices while maintaining its ambitious environmental goals.

“California consumers cannot wait any longer,” California Senator Laura Richardson said on the Senate floor while introducing the bill.

She pointed to a University of California study that estimated that the fuel's availability could lower gas prices in the state by 20 cents per gallon.

“With today's passage of AB30, 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 of the Renewable Fuels Association, said in a statement.

“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.”

Know More on RFA Welcoming E15

RFA Urges Gov Newsom to Sign Bill: Geoff Cooper, president and CEO of the Renewable Fuels Association, or RFA, welcomed the passage by lawmakers for making E15 a reality.

“With today’s passage of AB30, California is taking a big step toward lower gas prices and a cleaner, more sustainable future for families across the state,” said.

“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.”

Cooper continued, “We applaud the California legislature for swiftly passing this critical bill, and we especially thank the bipartisan California Problem Solvers Caucus for bringing awareness and attention to this issue. AB30’s sponsors, Assembly members David Alvarez and Heath Flora, also deserve special recognition for their leadership in opening the California marketplace to more affordable, cleaner fuel options.”

Stand of Assembly Members: California’s regulatory agencies have reviewed the E15 gasoline blend for nearly eight years and have yet to issue any rulings, said Assembly member Alvarez. “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, and I am especially grateful to the Problem Solvers Caucus for their partnership on this commonsense solution.”

How Did the Largest Biofuel Trade Association Respond

Growth Energy, the nation’s largest biofuel trade association, applauded the California State Senate after the legislature unanimously approved AB 30, a bill that would finally allow California fuel retailers to sell E15, a fuel option made with 15 percent American ethanol that’s approved for use in 96 percent of all light-duty vehicles on the road today.

Specifically, AB 30 provisionally approves E15 for sale in California while the California Air Resources Board (CARB) completes its environmental review of this fuel option, which burns cleaner and can save California drivers from 10 to 30 cents per gallon on average.

The bill’s passage is the result of a years-long effort led by Growth Energy to demonstrate to California lawmakers and regulators that E15 is not only better for the environment. This fuel is also more affordable than ordinary fuel and could potentially save Californians millions of dollars while simultaneously reducing their environmental impact, it said.

“After nearly 15 years since E15 was first approved by the U.S. Environmental Protection Agency (EPA) 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,” said Growth Energy CEO Emily Skor after the Senate approved the bill. “We thank Assembly Members David Alvarez, Cottie Petrie-Norris, Heath Flora, and the Problem Solvers Caucus for continuing to push to make this cost-saving fuel available to Californians and we urge Governor Newsom to sign AB 30 into law right away.”

The move is expected to benefit biofuel producers and corn farmers, as it is will expand the market for their products to the most populous U.S. state.

Inputs from Saqib Malik

Editing by David Ryder