E15 sign in Iowa gas station.Iowa Renewable Fuels Assn
The Renewable Fuels Association October 25th applauded California Gov. Gavin Newsom for directing the state’s Air Resources Board (CARB) to expedite the approval of E15, gasoline containing 15 percent ethanol. California is the only state in the country that doesn’t currently allow the sale of lower-cost, lower-carbon E15 but limits it to 10%.
In a letter to CARB Chair Liane Randolph Gov. Newsom wrote, “Given the potential for allowing E15 gasoline to increase fuel supply and reduce gasoline prices, with little to no environmental harm, it is prudent for CARB to prioritize resources that would allow for the expeditious completion of this process. Therefore, I am directing CARB to accelerate its action on this critical issue.”
E15 fuel, which contains 15% ethanol, has been widely adopted in other states and could significantly reduce prices without adding environmental harm, says RFA. As of 2023, E15 was sold at more than 3,000 stations in 31 states.
In a related news release, Newsom stated, “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. It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump.”
Gov. Newsom’s letter cited a recent study by economists at the University of California, Berkeley and United States Naval Academy that showed E15 could result in a $0.20 per gallon price decrease for the state’s drivers, saving California families up to $2.7 billion per year.
E15 is a fuel blend that contains 15% ethanol and is generally cheaper than regular gasoline, says the RFA.
- Price: In April 2023, E15 was on average $0.27 per gallon cheaper than E10, or 7.4%.In summer 2023, E15 was on average 10–30 cents per gallon cheaper than regular gas, with some locations offering over $1 off per gallon.
- Reasons for lower price: Ethanol is cheaper to produce than gasoline, and the domestic production of ethanol from corn helps stabilize fuel prices.
- Benefits: E15 is a lower-carbon option and can help save money on fuel.
“”We sincerely appreciate Gov. Newsom’s efforts to accelerate the approval of the cleaner, greener E15 fuel blend in California,” said RFA President and CEO Geoff Cooper. “Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump. Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits.”
Newsom’s news release also highlights recent vehicle testing from the University of California, Riverside showing that “blending in gasoline would not affect NOx emissions and would reduce particulate emissions.”
CARB has long argued that higher blends of ethanol would hurt the fight against air pollution. Given their opposition, ethanol manufacturers based in California had trouble making a profit and several have gone out of business.
Just a few weeks ago CARB appeared poised to make it harder to offer higher blends in the state.
RFA opposed proposed regulations updating California’s Low Carbon Fuel Standard recently noting that CARB’s proposal was “fundamentally flawed and could significantly restrict the future use of low-carbon ethanol in the state”, the Renewable Fuels Association wrote.
CARB had been criticized by the RFA arguing that ” renewable fuel producers and California consumers will suffer if CARB moves ahead with its unnecessary and inexplicable proposal for new “sustainability” requirements and an arbitrary new method for assigning hypothetical land use change penalties.
“If CARB had its thumb on the scale against ethanol before, now they are trying to give themselves the authority to put their whole fist on the scale,” said RFA President and CEO Geoff Cooper. “This proposal is completely disconnected from reality and, if finalized, will very likely result in shortages of low-carbon fuels and higher fuel prices for California consumers.”
Now Newsom is weighing in and if CARB changes its tune could help reduce average fuel cost in California, widely known for high gas prices. CARB needs to finish their studies first.
Ethanol is made from corn and is not an oil product.It is blended with gasoline around the state available at all gas stations.Blending at the 15% level should not require much retooling of the process, say sources.
Consumer Reports writes that “the EPA says E15 can be used in flexible-fuel vehicles, as well as 2001 and newer cars, light-duty trucks, and medium-duty SUVs. Don’t use E15 in motorcycles or other small engines, heavy-duty trucks, or nonroad vehicles such as boats and snowmobiles.”
Oil analyst Tom Kloza has written that it “looks like CA governor Newsom will look to accelerate car approval of E 15 gasoline blends.Opis data shows ethanol to be about $.40 a gallon beneath Carbob so the move makes economic sense”. Carbob gas from the refineries for use in California is mixed with ethanol at the terminal racks before the finished blend shows up at your local station.