California is set to allow sales of E15 fuel with a 15% ethanol blend for the first time after the state Senate unanimously passed AB 30. This makes California the last state to approve E15.

The legislation immediately opens a 600- to 800-million-gallon ethanol market. The push gained momentum as refinery closures raised concerns about fuel supply and high gasoline prices.

Supporters said E15 will cut fuel costs, reduce emissions, and improve air quality. A 2024 UC Berkeley and U.S. Naval Academy study estimated Californians could save $2.7 billion annually, or about 20 cents per gallon, with E15. A separate UC Riverside study found environmental benefits. These include reduced particulate matter and carbon monoxide emissions.

California Governor Gavin Newsom previously directed the California Air Resources Board (CARB) to prioritize E15 approval. He said it could increase supply with little environmental risk.

The Renewable Fuels Association and Growth Energy applauded the move as a long-overdue win for consumers. With immediate enactment, AB 30 paves the way for lower gas prices, cleaner fuel, and expanded markets for farmers.

Read more on California passing E15 legislation here.