California regulators back cheaper, higher-ethanol gasoline

By Alex Nieves | 12/15/2025 06:53 AM EST

Gov. Gavin Newsom (D) signed a law this year with the aim of lowering gasoline prices by blending more ethanol into fuel.

An E15 fuel sign sits on display.

California fuel suppliers can now sell gasoline blended with up to 15 percent ethanol. Charlie Neibergall/AP

California environmental regulators on Thursday endorsed higher ethanol content in gasoline, paving the way for the state to permanently allow the blend as a way to lower fuel prices.

What happened: The California Air Resources Board, the California Department of Toxic Substances Control and other agencies published a study finding that allowing gasoline blended with up to 15 percent ethanol — known as E15 — would have little impact on air, water and soil quality when compared to the current widespread use of E10 fuel.

The report recommends that the California Environmental Policy Council, which will have final say over new state rules regulating E15, declare that the new fuel blend does not pose a significant adverse impact on public health or the environment compared to lower ethanol options.

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Why it matters: Gov. Gavin Newsom (D) signed a law earlier this year, AB 30, that lets fuel suppliers sell gasoline blended with up to 15 percent ethanol — an option that is around 25 cents per gallon cheaper than traditional gas — until CARB adopts a regulation approving it or publishes an assessment demonstrating why the use of the fuel is not feasible.

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