Gas Price BOMBSHELL — Cost Saving Additive APPROVED

California legislators unanimously approved a bill to allow E15 fuel in the state for the first time, potentially saving drivers 20 cents per gallon as gas prices hover at a painful $4.73 statewide average.

Key Takeaways

• California’s Assembly Bill 30, known as the “Cleaner, Cheaper Fuels Act,” passed with a unanimous 65-0 vote and now heads to the Senate as an “urgency statute”
• The legislation would allow E15 fuel (containing 15% ethanol) to be sold in California, which is currently the only state prohibiting its use
• Consumers could save approximately 20 cents per gallon, potentially reducing statewide fuel costs by up to $2.7 billion annually
• The bill has bipartisan support and backing from Governor Gavin Newsom, though some environmental groups have raised concerns about increased summer smog
• If approved by the Senate with a two-thirds majority and signed by the governor, the law would take effect immediately

Relief for California’s Sky-High Gas Prices

Assembly Bill 30, aptly named the “Cleaner, Cheaper Fuels Act,” has cleared a significant legislative hurdle in California’s ongoing battle against exorbitant fuel costs. The bill, which would permit the sale of E15 gasoline containing up to 15% ethanol, unanimously passed the state Assembly with a 65-0 vote. This rare display of bipartisan agreement underscores the urgency of addressing California’s painful distinction as the state with the highest average gas prices in the nation, currently sitting at a staggering $4.73 per gallon as of early June 2025.

California remains the only state in America that doesn’t permit E15 sales, effectively isolating itself from a fuel blend that’s widely available throughout the rest of the country. Assemblyman David Alvarez, the bill’s author, has emphasized the legislation’s dual benefits: reducing fuel costs for cash-strapped residents while simultaneously offering environmental advantages. The measure has gained particular attention for its potential to help long-distance commuters in California’s Central Valley, who are disproportionately burdened by the state’s fuel prices.

Economic Impact and Support

The economic benefits of E15 fuel could be substantial for California residents. A study conducted by the University of California, Berkeley, and the U.S. Naval Academy projects that introducing E15 could save California consumers up to $2.7 billion annually. This translates to approximately 20 cents per gallon in savings at the pump – a significant relief for families already struggling with California’s crushing cost of living. These potential savings have attracted support from organizations like Pearson Fuels, which has highlighted the bill’s focus on affordability as a key selling point.

“Given the potential for allowing E15 gasoline to increase fuel supply and reduce gasoline prices, with little to no environmental harm, it is prudent for CARB to prioritize resources that would allow for the expeditious completion of this process,” said Governor Newsom.

Governor Gavin Newsom has already expressed support for the legislation, demonstrating rare alignment with conservative priorities of reducing costs for working families. In a concrete show of support, Newsom previously directed the California Air Resources Board (CARB) to expedite the process for allowing E15 sales and proposed $2.3 million in the budget to help CARB finalize the E15 rule-making process. This proactive approach signals a recognition that Californians are desperate for relief from the state’s punishing gas prices, which continue to burden residents despite decreases in other states.

Senate Hurdles and Implementation Timeline

The bill now faces a critical test in the California Senate, where a similar proposal previously stalled. As an “urgency statute,” the Cleaner, Cheaper Fuels Act requires a two-thirds majority vote in the Senate to pass – a higher threshold than standard legislation. However, the unanimous Assembly vote suggests growing momentum for the measure across political lines. If approved by the Senate and signed by Governor Newsom, the bill would take effect immediately, potentially bringing rapid relief to California drivers who have endured years of excessively high fuel prices.

“[E15] represents a clear win-win for both California consumers and the environment,” said Geoff Cooper, President and CEO of the Renewable Fuels Association.

Despite broad support, the bill does face opposition from some environmental groups who have raised concerns about potential increases in summer smog. However, supporters counter that these concerns are outweighed by the economic benefits and potential environmental advantages of E15 fuel. The Renewable Fuels Association has been particularly vocal in supporting the bill, emphasizing that E15 provides both consumer benefits and environmental improvements. This balanced approach appears to have resonated with lawmakers from both parties who recognize that California’s working families need immediate relief from the state’s persistently high fuel costs.