California Clearing the Way for Year-Round E15 Saves Consumers Money While Opening Up Major New Ethanol Market

The legislation removes the final technical barrier to year-round E15 sales, clearing the way for California drivers to have access to a lower carbon fuel that will save an estimated 20 or more cents per gallon.

"It's been truly amazing to see California work in a bipartisan manner to unanimously pass E15 legislation," said IRFA Executive Director Monte Shaw. "And not just bipartisan, but unanimous. But it makes sense. California drivers can save billions with E15. It will reduce tailpipe and carbon emissions. It will add much needed physical gallons to a constrained market. And, while maybe not California's motivation, E15 in the state represents 600 to 700 million gallons per year of ethanol market potential."

California joins seven Midwestern states in taking action to ensure motorists have access to E15 year-round. This move represents another significant step toward expanding the national market for homegrown ethanol. California is one of the nation's largest fuel markets, and increased access to E15 will create new opportunities for Iowa ethanol producers and corn farmers. Meanwhile, the future of nationwide, year-round E15 remains clouded in Congress.

"It's almost shocking to say, but the U.S. Congress could take a lesson from California on E15," said Shaw. "California beat Congress to the E15 punch. All 50 states deserve the right to offer E15 for sale. Consumers deserve the chance to choose E15. I know our Congressional champions are working hard to get E15 across the finish line, but the whole institution needs to wake up."

After California legislation authorizing E15, known as AB30, was signed into law last October, state agencies moved quickly to implement the unanimous legislation. But after months of work, the California Fire Marshal insisted state law wouldn't allow E15 through a small part of the existing infrastructure, known as secondary vapor recovery devices, even though the manufacturers certified the equipment was compatible with E15. This technical barrier threatened to delay E15 access by 1 to 2 years. Instead, during the final hours of the California legislative session, a second unanimous bill (SB795) passed, allowing E15 to be dispensed using current equipment if certified by the manufacturer.

During months of behind-the-scenes work to find a path forward, the California Governor's Office reached out to Iowa for their experience. IRFA helped provide California with over ten years of data and experience offering E15 through existing equipment.

"Iowa may not be the biggest fuel market in the country, but when it comes to E15, we've been leading by example for more than a decade," said Shaw. "We think Iowa played a small but important role in getting California across the finish line. At the request of the California Governor's Office, IRFA provided California officials with information, data, and rule language drawing on Iowa's decade-plus of experience successfully selling E15 through existing dispensers and fueling infrastructure. Now, California drivers have the opportunity to benefit from a lower-cost, lower-carbon fuel, while Iowa farmers and ethanol producers gain another major market for homegrown ethanol. That's a win-win worth celebrating."

IRFA will continue working with policymakers and renewable fuels stakeholders across the country to build on this momentum, expand markets for ethanol, and support policies that strengthen demand for Iowa-produced renewable fuels.

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The Iowa Renewable Fuels Association represents the state's liquid renewable fuels industry and works to foster its growth. Iowa is the nation's leader in renewable fuels production with 42 ethanol refineries capable of producing over 5 billion gallons annually - including 34 million gallons of annual cellulosic ethanol production capacity - and 8 biodiesel facilities with the capacity to produce 408 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.