SACRAMENTO, CA – California is moving closer to widespread E15 availability, potentially opening one of the nation’s largest gasoline markets to additional ethanol demand and creating new opportunities for corn growers.
Lawmakers approved Senate Bill 795, which directs state regulators to clear remaining fire-safety and equipment barriers after California legalized E15 last year. The bill now heads to Gov. Gavin Newsom.
California consumes roughly 13 billion gallons of gasoline annually. If the entire market eventually shifted from E10 to E15, the additional ethanol requirement could approach 650 million gallons, equivalent to roughly 240 million bushels of corn. Actual adoption would likely occur gradually.
Corn would capture most of that demand, but sorghum could also benefit. California recognizes both corn- and sorghum-based ethanol pathways under its low-carbon fuel program, giving Plains growers a potential secondary market.
The bigger question is how quickly retailers adopt E15 and how falling gasoline demand affects total volumes. Even partial penetration, however, could create meaningful new ethanol demand.
Farm-Level Takeaway: California E15 adoption could add significant ethanol demand, primarily benefiting corn while creating secondary opportunities for sorghum growers.