Newsom signs fuel choice bill, says it could lower gas costs in California

CALIFORNIA – Governor Gavin Newsom signed legislation on October 2 that he says could lower gasoline prices in California by 20 cents per gallon.

Assembly Bill 30 immediately allows sales of an additional gasoline blend — E15, while the California Air Resources Board (CARB) continues studying whether it can meet the state’s clean air standards.

Before the signing, California was the only state that banned E15 sales.

E15 is a blend of gasoline with 15% ethanol and 85% regular unleaded fuel. Ethanol is typically made from corn or other plant materials, making it a renewable fuel source.

It’s approved only for cars, SUVs, and light trucks made in 2001 or later — not for motorcycles, older vehicles, or small engines such as lawn mowers and boats. The EPA warns that using it in those engines could cause severe damage.

Regulators previously warned about E15

Newsom cited a joint study by UC Berkeley and the U.S. Naval Academy showing E15 could cut gasoline prices by up to 20 cents per gallon. Transitioning, however, would require infrastructure upgrades at stations statewide.

Last October, he directed CARB to fast-track reviews of higher ethanol blends while maintaining environmental protections. Regulators had previously warned that E15 could increase nitrogen oxide (NOₓ) emissions, a smog-forming pollutant that worsens in warm climates.

According to the Governor’s office, authorizing E15 will reduce California’s reliance on petroleum, diversify the fuel supply, and help prevent future price spikes.

‘Drivers can take advantage without having to buy a new car’

Agriculture and industry groups welcomed the news.

Growth Energy CEO Emily Skor said E15 is a more affordable fuel option that most drivers can use without having to buy a new vehicle.

“Its approval in California will generate more demand for American farmers, boosting the ag economy while allowing California residents to keep more of their hard-earned money,” Skor said.