California's renewable fuels producer Aemetis, Inc. is urging the California Air Resources Board (CARB) to implement a 15% ethanol blend (E-15) in gasoline, a move that could significantly impact the state's economy and environmental efforts. This call comes as California remains the only state in the U.S. that has not adopted the E-15 blend, despite its approval by the EPA in 2011 for use in light-duty vehicles.
The potential adoption of E-15 in California could have far-reaching consequences. A recent study by economists from UC Berkeley and the US Naval Academy suggests that allowing an E-15 blend could result in annual savings of $2.7 billion for California drivers, translating to approximately $0.20 per gallon at the pump. For the average California household, this could mean savings of about $200 per year on gasoline expenses, providing much-needed financial relief, especially for lower-income residents.
Beyond the economic benefits, the implementation of E-15 could play a crucial role in California's environmental goals. Ethanol, derived from renewable sources, emits 46% fewer air pollutants than gasoline. This reduction in emissions aligns with California's ambitious target of reaching net carbon neutrality by 2045. A study commissioned by CARB found that adopting E-15 could lead to a decrease in tailpipe pollutants such as particulate matter and carbon monoxide, which are known to cause air quality and human health problems.
The timing of this proposal is particularly relevant as the State Assembly is currently holding hearings on the need for lower fuel prices in California, following Governor Newsom's call for a special session of the state legislature. The adoption of E-15 could provide an immediate solution to the state's high gas prices while simultaneously addressing environmental concerns.
Eric McAfee, Chairman and CEO of Aemetis, Inc., emphasized the urgency of implementing E-15, stating, "As the transition to EVs and other zero tailpipe emission vehicles take place over the next decade, California should adopt every tool available – today – to expedite the reduction of harmful fossil fuel emissions." McAfee added that the implementation of E-15 is the most immediate cost-saving and environmentally beneficial step the state can take.
The adoption of E-15 in California would not only align with the state's climate action plans but also support broader goals such as reducing dependence on fossil fuels, decreasing air pollution, and promoting the use of renewable energy. The transition to E-15 could mark a significant milestone in California's efforts to achieve these objectives.
Importantly, the groundwork for implementing E-15 in California has already been laid. Source testing and on-road testing have been conducted, and billions of miles have been driven on E-15 across the United States since its approval in 2011. CARB has the authority to adopt new rules that would allow E-15 to be sold in California as soon as 2025.
As California grapples with chronic high gas prices and ambitious environmental targets, the potential adoption of E-15 represents a significant opportunity. It offers a solution that could provide immediate economic relief to consumers while simultaneously advancing the state's environmental goals. The decision by CARB and the state legislature regarding E-15 implementation could have lasting impacts on California's economy, environment, and energy landscape for years to come.
