E15 Gasoline Finally Coming to California?

Agri-Pulse’s Brad Hooker reported at the end of this past week that “Gov. Gavin Newsom on Friday directed the California Air Resources Board to accelerate its regulatory review of the E15 blend of gasoline. Newsom said the higher ethanol mix would reduce gas prices while supporting the state’s stringent regulations on tailpipe emissions.”

“The governor seized on new research from the University of California, Berkeley, and the U.S. Naval Academy showing that boosting the ethanol ratio from the current 10% to 15% would lower prices at the pump by 20 cents per gallon, adding up to $2.7 billion in statewide savings every year,” Hooker reported. “The University of California, Riverside, has found E15 would not worsen the state’s already high nitrous oxide emissions and that it would reduce particulate emissions.”

“‘There’s massive potential for this to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean,’ said Newsom,” according to Hooker’s reporting. “‘It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump.'”

“Newsom and state politicians have faced considerable pressure this year to reduce gas and energy prices, as the costs for California’s ambitious climate goals begin to mount,” Hooker reported. “CARB has been defending its proposed update to the Low Carbon Fuel Standard after the oil and gas industry and Republican lawmakers warned it could significantly raise gas prices. The public backlash coincides with an announcement by Phillips 66 that it is shutting down a major gasoline refinery supplying the Los Angeles region. Along with his directive to accelerate the E15 review, Newsom said he plans to partner with the Legislature next year to enact statutory changes and funding to further expedite the E15 process.”

Adopting E15 Could Save Consumers Billions, Study Says

Progressive Farmer’s Todd Neeley reported in July that “if California regulators allow E15 sales in the state consumers could save up to $2.7 billion annually, according to a new study commissioned by the Renewable Fuels Association.”

“Economists at the University of California, Berkeley and the U.S. Naval Academy found that California drivers could save about 20 cents per gallon if E15 was made legal. State regulators reportedly are considering ending the restriction of ethanol in gasoline to 10% or E10,” Neeley reported. “…The researchers found that increased use of ethanol-blend biofuels lowers gasoline usage, enhances energy security and reduces greenhouse gas emissions.”

“‘Based on this study’s results, a typical California household could save $200 per year on their gas bill if state regulators would simply allow drivers to fuel up on E15,’ RFA President and CEO Geoff Cooper said in a news release,” according to Neeley’s reporting. “Cooper said there are more than 24 million registered vehicles in California already approved to use E15.”

“‘It’s time for California to catch up to the other 49 states that already allow consumers to choose lower-cost, lower-carbon E15,’ he said,” according to Neeley.

Biofuels Groups Support Newsom’s Directive

Hooker reported that “the Renewable Fuels Association applauded Newsom’s order, pointing out that California is the only state that does not allow E15 sales.”

“‘Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump,’ said RFA President and CEO Geoff Cooper,” according to Hooker. “‘Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits.'”

“Growth Energy, the nation’s largest biofuel trade association, noted that E15 would help to decarbonize the state’s light-duty vehicles,” Hooker reported. “‘We stand ready to assist the governor’s office and state to complete the approval process and permit the sale of this more affordable and environmentally-beneficial fuel option, which Americans have already relied on to travel 120 billion miles,’ said Growth Energy CEO Emily Skor.”