California lawmakers passed a bill Wednesday that would authorize the sale of higher-ethanol fuel, giving Democratic Gov. Gavin Newsom the chance to leapfrog state regulators who are studying the option to lower gas prices.
What happened: The state Senate unanimously approved AB 30, which would allow California gas stations to sell fuel blended with up to 15 percent ethanol. The bipartisan bill, co-authored by Assemblymembers David Alvarez (D) and Heath Flora (R), has an urgency clause, meaning it would take effect immediately after receiving Newsom’s signature.
Why it matters: California is the only state that caps the amount of ethanol that can be blended with gasoline at 10 percent, a factor that economists at the University of California, Berkeley, and the U.S. Naval Academy argue contributes to the state’s higher-than-average prices at the pump.
AB 30 would allow the new fuel blend, known as E15, to be sold until the California Air Resources Board adopts a regulation approving it or publishes an assessment demonstrating why use of the fuel is not feasible, and the California Environmental Policy Council completes its ongoing review of the blend.
