California Senate Backs E15 Fuel to Support Farmers, Cut Gas Prices
E15 fuel sales approved in California's Senate could open up a major ethanol market, boosting demand for U.S. corn amid a record harvest.
California, long a holdout in the national E15 rollout, now joins other states in authorizing the higher-ethanol blend gasoline, aligning both energy and agricultural policy. The state Assembly passed the bill earlier this summer, and this week the Senate voted 39-0 in favor.
Senator Laura Richardson, who introduced the bill, emphasized urgency: "California consumers cannot wait any longer." A joint study by UC Berkeley and the U.S. Naval Academy projected $2.7 billion in annual savings if E15 were widely available. Per-gallon savings are estimated at 20 cents, offering real relief at the pump as refinery closures reduce fuel supply across the state.
Geoff Cooper, president of the Renewable Fuels Association (RFA), praised the passage of AB 30 as "a big step toward lower gas prices and a cleaner, more sustainable future for families across the state." He urged Governor Newsom to sign the bill without delay, noting that E15 is already bringing benefits to consumers in other states - from better engine performance to cleaner air.
With the USDA estimating this year's corn harvest at 16.7 billion bushels, the largest in history, farm groups have grown increasingly vocal about the need to expand domestic ethanol consumption. Cooper warned that "antiquated policies and regulations" - like summertime E15 bans and outdated pump requirements - are "failing America's farmers."
Beyond fuel cost relief, environmental benefits are a major selling point for E15 in California. A UC Riverside study found the blend could cut tailpipe emissions of particulate matter and carbon monoxide, contributing to improved air quality and public health.
California regulators are still finalizing broader ethanol blending policies, but the legislative move signals a clear intent to align the state's energy strategy with its climate goals - without sacrificing affordability.
For U.S. ag professionals, this development represents a strategic market expansion. Opening E15 sales in California - a state previously closed to the blend - offers corn growers and ethanol plants a crucial buffer against price volatility, especially in years of oversupply.
With gasoline supply tightening and ethanol infrastructure improving, the move to E15 could be a model for national policy. The bill also increases pressure on federal lawmakers to eliminate seasonal restrictions and modernize labeling and pump requirements that limit consumer access to E15 nationwide.