California Approves E15 Fuel Sales to Cut Gasoline Costs

California Governor Gavin Newsom signed Senate Bill 795 on September 19, 2026, allowing immediate sales of E15, a 15% ethanol gasoline blend, in the largest U.S. auto market. California had been the only state where the fuel was prohibited. The measure is projected to add approximately 650 million gallons of annual ethanol demand, benefiting producers and corn growers, according to Aemetis CEO Eric McAfee. He noted ethanol trades near $2.30 per gallon wholesale, offering significant savings versus gasoline. California gasoline averaged about $6.14 per gallon on September 20, versus a national average of $4.44, per GasBuddy. The Renewable Fuels Association estimates E15 could cut retail prices by roughly 20 cents per gallon, saving drivers at least $2.7 billion annually. The approval coincides with federal legislation under consideration to permit year-round E15 sales nationwide.