California has cleared the final regulatory hurdle for retailers to offer E15 gasoline, potentially opening a major new market for ethanol.
E15 is a blend of 15% ethanol and 85% gasoline.
Governor Gavin Newsom signed Senate Bill 795, the E15 Clean-up Act, into law following unanimous passage by the California Legislature in August.
The Renewable Fuels Association says the law allows retailers to use existing vapor recovery equipment to dispense E15 if manufacturers provide state agencies with a statement confirming compatibility.
RFA President and CEO Geoff Cooper says the action removes red tape that had prevented E15 sales.
“California drivers are about to experience those same advantages for themselves,” Cooper says, pointing to lower costs, reduced emissions, and improved engine performance.
Recent studies cited by RFA estimate E15 could save California drivers at least 2.7 billion dollars annually, or about 200 dollars per household.
The law could also significantly expand ethanol demand in the nation’s largest gasoline market.
