California, the only state to prohibit E15 gasoline, has unanimously passed a bill that could slash fuel prices by 20 cents per gallon, bringing much-needed relief to residents suffering under the nation’s highest gas prices.
Key Takeaways
- Assembly Bill 30, the “Cleaner, Cheaper Fuels Act,” passed the California Assembly with a unanimous 65-0 vote and now heads to the Senate.
- California currently has the highest average gas price in the nation at $4.73 per gallon, and this bill could reduce prices by approximately 20 cents per gallon.
- The bill would legalize E15 gasoline (containing 15% ethanol), potentially saving California consumers up to $2.7 billion annually.
- California is currently the only state in America that prohibits E15 fuel sales.
- Governor Gavin Newsom supports the legislation and has allocated $2.3 million to expedite the regulatory process.
Rare Bipartisan Support for Consumer Relief
In a rare display of unity, California lawmakers voted unanimously to advance Assembly Bill 30, dubbed the “Cleaner, Cheaper Fuels Act.” The 65-0 vote reflects growing concerns about California’s extraordinary cost of living, particularly its exorbitant fuel prices. The bill now proceeds to the state Senate, where a similar proposal previously stalled. As an “urgency statute,” it requires a two-thirds majority in the Senate to pass but would take immediate effect upon receiving Governor Newsom’s signature.
California residents currently pay the highest gas prices in the nation, averaging $4.73 per gallon as of June 4, 2025. This financial burden falls especially hard on working-class communities and long-distance commuters in regions like the Central Valley. The unanimous Assembly vote signals that even in deep-blue California, economic reality has forced legislators to prioritize practical solutions over environmental dogma.
E15: The Solution California Has Been Avoiding
The legislation would legalize E15 gasoline, which contains 15% ethanol, compared to the 10% currently allowed in California fuels. Despite being widely available throughout the rest of the country, California remains the only state that prohibits E15 sales, leaving consumers without access to this more affordable option. The University of California, Berkeley, and the U.S. Naval Academy conducted a study suggesting that introducing E15 could save California consumers up to $2.7 billion annually.
“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 Gavin Newsom.
While the bill has generated broad support, some environmental groups oppose it, citing concerns about increased smog during summer months. This opposition highlights the ongoing tension in California between environmental policies and economic realities. However, proponents argue that E15 actually offers environmental benefits alongside its economic advantages, potentially creating a win-win scenario for the state.
Industry Support and Economic Impact
The Renewable Fuels Association has strongly endorsed the legislation, emphasizing its potential benefits for both consumers and the environment. The estimated savings of approximately 20 cents per gallon would provide meaningful relief for California families struggling with inflation and the state’s exceptionally high cost of living. Governor Newsom has already proposed allocating $2.3 million in the budget to help the California Air Resources Board (CARB) finalize the E15 rule-making process.
“[This bill] represents a clear win-win for both California consumers and the environment,” said Geoff Cooper, president and CEO of the Renewable Fuels Association.
Pearson Fuels, a key industry stakeholder, has highlighted the bill’s focus on “affordability” – a welcome shift in a state where policy decisions often seem to disregard cost implications for average citizens. The potential introduction of E15 represents a rare opportunity for California to align with nationwide practices while delivering tangible economic benefits to its residents, who have long suffered under policies that prioritize environmental symbolism over practical concerns.
Path Forward and Implementation
If the bill successfully navigates the Senate and receives Governor Newsom’s signature, California consumers could soon join the rest of America in having access to E15 fuel. The immediate implementation provided by the urgency clause would allow for quick relief at the pump. Newsom’s directive to CARB to expedite the regulatory process demonstrates an unusual acknowledgment from California leadership that economic pressures require immediate action rather than the state’s typically prolonged regulatory timelines.
The $2.7 billion in potential annual savings represents a significant economic stimulus that would be distributed directly to consumers rather than filtered through government programs. For a state that has lost population for four consecutive years due in part to its crushing cost of living, this legislation represents a small but meaningful step toward addressing the economic reality that has driven so many Californians to flee to more affordable states.
