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View Winners → Politics Oct 26, 2024
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Gov. Gavin Newsom on Friday directed the California Air Resources Board to speed up the process of adding more ethanol to gasoline that aims to lower pump prices without compromising environmental protections.
The move builds on legislation passed this year and in 2023 that aim to prevent price spikes and increase the oil industry’s public transparency and instructs the board to develop methods for increasing the ethanol blend known as E15 in California gasoline, according to Newsom’s office. Studies have shown E15 in the fuel mix can reduce prices while maintaining environmental standards.
“There’s massive potential for this to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean,” Newsom said in a statement. “It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump.”
Citing a study by the University of California, Berkeley, and the United States Naval Academy, state officials estimated the ethanol upgrade could reduce per-gallon gas prices by up to $0.20 and save state residents as much as $2.7 billion each year.
The governor’s board directive cited another study from the University of California, Riverside, which found that increasing gasoline’s ethanol blend would not impact nitrogen oxide emissions and would reduce particulate emissions.
Newsom’s office acknowledged it “would require strategic considerations regarding market structure and infrastructure modifications.”
Changes to California’s gasoline blend must have a “multimedia evaluation” and the Environmental Policy Council’s approval. In his letter to board Chair Liane Randolph, the governor called this “an intensive process unique to California, which the federal government and the many other states that have already allowed use of E15 fuel have not been required to undertake.”
E15 fuel, which is 15% ethanol, has been adopted in 31 states and last year was sold at more than 3,000 stations, according to the U.S. Department of Energy.
Newsom added that he welcomes “partnership with the Legislature next year to consider necessary statutory changes and funding that would further expedite CARB’s consideration of authorizing E15.”
Newsom signed legislation earlier this month that allows the state to require oil refiners to maintain a minimum inventory of fuel to avoid supply shortages. The new law also authorizes the California Energy Commission to require refiners to plan for resupply during maintenance outages.
“It will help prevent price spikes that cost Californians upwards of $2 billion last year,” according to the governor’s office.
The price of a gallon of regular gas in Los Angeles County was $4.55 Saturday, according to the Oil Price Information Service and AAA. It hit an all-time high of $6.494 on Oct. 5, 2022.
The national average price Saturday was $3.136.
