SACRAMENTO, CA – California has removed another regulatory barrier to broader E15 sales, potentially opening the nation’s largest gasoline market to more ethanol demand. Governor Gavin Newsom signed Senate Bill 795 on September 19 after lawmakers approved the measure unanimously.
E15 contains up to 15% ethanol. California previously authorized its sale under Assembly Bill 30, but equipment and vapor-recovery requirements continued limiting retailer implementation. Senate Bill 795 directs state regulators to complete rules allowing compatible existing equipment to dispense the fuel.
For corn growers and ethanol producers, wider California adoption could create another outlet for ethanol production. The size of that opportunity will depend on retailer participation, infrastructure compatibility, and how quickly stations begin offering E15.
State officials cite research estimating E15 could reduce California gasoline prices by up to 20 cents per gallon and save drivers as much as $2.7 billion annually.
California regulators still have implementation work ahead, making retailer adoption the next key measure of whether the new law translates into additional ethanol demand.
Farm-Level Takeaway: California E15 expansion could create meaningful new ethanol demand if retailers adopt the fuel broadly.