California moves to expand fuel options in bid to lower gas prices

Gov. Gavin Newsom has signed legislation allowing another gasoline blend to be sold in California, a move aimed at lowering fuel prices.

The measure, Assembly Bill 30, authorizes the sale of E15 fuel, a gasoline blended with 15% ethanol, while the California Air Resources Board reviews whether it meets the state’s air-quality standards.

State officials say expanding ethanol use could stabilize the fuel market, diversify supply and reduce reliance on petroleum, which has contributed to price spikes in recent years.

 A study by UC Berkeley and the U.S. Naval Academy estimated that E15 could cut gas prices by up to 20 cents a gallon and save drivers as much as $2.7 billion annually, although stations would need infrastructure upgrades. Another study by UC Riverside found that the blend would not increase smog-forming emissions and could potentially reduce particulates.

E15 is already sold at more than 3,000 stations across 31 states, according to the governor’s office.

“Thanks to our work with the Legislature, we have averted billions of dollars in higher costs at the pump by avoiding the kinds of severe gasoline price spikes we saw a few years ago,” Newsom said in a statement. “While we continue the critical work to stabilize our state’s fuel market, we’re cutting red tape to provide consumers with more options as we transition to cleaner transportation.”

Alvarez said the bill strikes a balance between affordability and environmental responsibility.

This isn’t the first time Newsom has moved to address California’s high fuel costs.

Last year, he called a special legislative session to address gas price spikes, after receiving pushback on a request to approve a series of bills that would cut energy costs for Californians and require petroleum refiners to maintain a stable inventory.