CA could see lower gas prices, E15 fuel introduced

(FOX40.COM) — Gov. Gavin Newsom signed AB30 on Thursday, expanding fuel options toward using E15 fuel to reduce gas prices in California.

Video Above: Gov. Gavin Newsom tackles utility and gas prices

Assemblymember David Alvarez authored the legislation that will allow an additional blend of gasoline to be sold in the state. E15 fuel has been adopted by other states in the U.S. and could reduce gas prices without adding environmental harm, according to Newsom.

“AB 30 is an example of how we can solve problems thoughtfully in California,” Alvarez said. “By authorizing the sale and use of E15 gasoline, we can reduce the cost of gas and maintain our commitment to a cleaner environment. 

A study conducted by the University of California, Berkeley and the United States Naval Academy found that this bill could lower gasoline prices by up to $.20 per gallon, saving Californians as much as $2.7 billion annually.

With this change, Newsom said infrastructure modifications would be required, especially for retail gas stations.

“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. “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 continue our transition to cleaner transportation.”