New fuel blend cleared for California pumps could save drivers 20 cents a gallon

Californians will now be able to save $0.20 per gallon as drivers are getting a cheaper fuel option amid soaring gasoline prices — a saving that will amount to billions for Golden State motorists.

Governor Gavin Newsom signed new legislation last week to allow the sale of E15 gasoline across the Golden State, which opens access to a lower-cost, 15% ethanol blend that aims to diversify California’s fuel market.

The new fuel blend with 15% ethanol could provide much-awaited relief as California gasoline prices have climbed to record highs, with regular gasoline averaging $6.24 per gallon and diesel reaching an average of $8.44 per gallon, according to the latest analysis by AAA Gas Prices. 

The E15 fuel has been available at more than 3,000 gas stations in 31 states and California was the sole state prohibiting its sale until last week. 

A study conducted by researchers at the University of California, Berkeley estimates that the adoption of E15 could cost 20 cents less per gallon as compared to the regular E10 fuel. 

Across the entire state, those savings could total as much as $2.7 billion annually for consumers. The research highlights that the economic relief would not surface overnight because the fuel blend requires widespread infrastructure modifications at gasoline stations across the state. 

“Decisions by branded and unbranded gas stations on whether to add separate E15 nozzles or replace existing E10 nozzles, along with adjustments in pricing strategies, will be critical for successful implementation,” the study said. 

Increasing the ethanol blend in fuel would not raise nitrogen oxide emissions and would actually lead to reductions in fine particulate emissions, according to a study from the University of California, Riverside.

E15 was officially approved in 2011 for use in light-duty vehicles manufactured after 2001, following extensive testing by the U.S. Department of Energy. 

Despite the economic benefits of the new blend, there are strict restrictions on its usage based on the vehicle type because higher concentrations of ethanol can cause severe corrosion, overheating and component degradation in non-compatible engines.

The U.S. Environmental Protection Agency (EPA) prohibits the use of E15 in conventional passenger cars manufactured prior to model year 2001, nor in any motorcycles regardless of its year of manufacture. 

Additionally, all heavy-duty vehicles, such as delivery trucks and school buses, as well as off-road transportation, including boats and snowmobiles, are also prohibited from using the ethanol blend. 

Small off-road gasoline engines that power lawn mowers, chain saws and other outdoor power equipment are also explicitly barred from using the E15 blend, leaving standard E10 or ethanol-free gasoline as their only approved fuel options.

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