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. 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. “It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump.”
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. “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.
“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.
For years the governor has sought to hold oil and gas companies accountable for California’s notoriously high price spikes. In his directive to CARB, Newsom claimed spikes in 2022 and 2023 cost Californians an additional $2.2. billion at the pump. He called it imperative to maintain a reliable and affordable supply.
In the waning days of the legislative session this year, the governor attempted to jam a bill through the Legislature aimed at building a reserve supply to soften price spikes when refineries shut down for maintenance.
The Assembly, weary after years of similar last-minute legislative maneuvers, stalled the measure, driving Newsom to call for lawmakers to return to Sacramento for a special session to consider his bill. Through a slower, more public deliberative process, the Legislature passed the legislation, and the governor signed the bill into law last week.
But it only targets price spikes when demand is high and supply is low. California on average pays $1.47 higher per gallon than the national average, due largely to gas taxes.
Assemblymember Cottie Petrie-Norris, D-Irvine, attempted to tackle the issue by introducing a bill during the special session to mandate CARB approve an E15 regulation by July 2025. Despite the unanimous bipartisan support, the Senate shot down the measure, arguing it still needed work.
Newsom took up the mantle in his executive order. Yet after more than five years of study, CARB is close to wrapping up its lengthy assessment process, lining it up to draft regulatory language.
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. 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.
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