California's agricultural and biofuel sectors are anxiously awaiting Governor Gavin Newsom's decision on Assembly Bill 30, a measure that would authorize the immediate sale of E15, a gasoline blend containing 15% ethanol.

The California Legislature passed the bill with rare bipartisan unity, marking a strong signal of support for expanding renewable fuels. AB 30 passed the Assembly unanimously in June, followed by a 39-0 Senate vote this week. If signed, the bill would take effect immediately under its urgency statute.

However, Newsom's administration has signaled firm opposition, citing fiscal and regulatory concerns. The California Department of Finance labeled the bill "duplicative and unnecessary," pointing out that the California Air Resources Board (CARB) is already conducting a thorough review of E15, backed by $2.3 million and 10 new staff positions approved earlier this year.

Critics in the administration argue that implementing E15 prematurely would impose new costs on the California Department of Food and Agriculture (CDFA), requiring lab equipment upgrades, staffing, and higher fuel testing expenses. These costs, they warn, could result in an increase to the state's motor vehicle fuel fee-directly contradicting Newsom's priority to lower gas prices.

Still, AB 30's supporters point to significant potential savings for California drivers, who routinely pay among the nation's highest fuel prices. A joint study by UC Berkeley and the U.S. Naval Academy estimates that E15 could save drivers up to 20 cents per gallon, totaling $2.7 billion in annual statewide savings.

"California consumers cannot wait any longer," said Sen. Laura Richardson, D-South Bay. Assemblymember David Alvarez, D-San Diego, the bill's author, added, "It's time we joined the other 49 states that already allow E15."

The fuel and ag industries have rallied behind the bill, with support from the Renewable Fuels Association, Growth Energy, the California Farm Bureau, and the California Fuels and Convenience Alliance. They argue that E15 offers not only economic relief but environmental benefits as well. Studies by CARB and UC Riverside suggest E15 could help reduce tailpipe emissions linked to smog and public health risks.

"Now California drivers are on the cusp of experiencing the same benefits seen in other states - cleaner air, engine efficiency, and lower costs," said Geoff Cooper, CEO of the Renewable Fuels Association.

However, Newsom faces pressure to uphold regulatory protocols. CARB officials stress that their review process-meant to assess E15's air, water, and soil impacts-is resource-intensive and time-consuming. The agency must complete several internal evaluations before rulemaking can even begin.

Despite vetoing a similar effort last year, Newsom later directed CARB to accelerate its E15 review. AB 30 aims to push that effort further by sidestepping delays in implementation.

If Newsom signs AB 30, California could become the 50th state to allow E15 sales, opening new markets for ethanol producers and corn growers. If he vetoes it, the decision could alienate key rural constituencies and renewable energy advocates.

For now, all eyes are on Newsom, who has until October 12 to act.