Gov. Gavin Newsom signed SB 795 on Sept. 19, 2026, to accelerate California’s rollout of E15 gasoline, a blend with up to 15% ethanol. Researchers estimate E15 could lower pump prices by up to $0.20 per gallon, potentially saving the state as much as $2.7 billion a year. A UC Riverside study says more ethanol can reduce particulate pollution without raising NOx emissions. Widespread consumer benefits will depend on infrastructure upgrades and gradual station conversions.
California Fast-Tracks E15 Gasoline: Bill Could Trim Pump Prices By Up To $0.20/gal
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California moved to speed the rollout of E15 gasoline after Gov. Gavin Newsom signed Senate Bill 795 on Sept. 19, 2026. The Governor's Office says the measure could lower fuel costs for drivers by making a lower-cost blend more widely available.
E15 is a gasoline blend that contains up to 15% ethanol. SB 795 is intended to implement AB 30 (the 2025 law authorizing E15 sales) by removing a regulatory obstacle that had delayed the blend's introduction in California.
Potential Savings And Environmental Findings
Researchers at the University of California, Berkeley, working with analysts at the U.S. Naval Academy, estimate that broader E15 availability could reduce retail gasoline prices by as much as $0.20 per gallon, translating to up to $2.7 billion in potential statewide savings annually. A separate University of California, Riverside study found that increasing ethanol content in gasoline could reduce particulate pollution while not meaningfully changing nitrogen oxide (NOx) emissions.
Why The Rollout Will Be Gradual
California lags much of the country on E15: by 2023 the blend was offered at more than 3,000 stations across 31 states. Industry analysts and the Berkeley–Naval Academy study caution that widespread adoption in California will require infrastructure upgrades along the fuel supply chain, including modifications at terminals, transport equipment and retail fueling stations. SB 795 removes a regulatory barrier, but consumer benefits are likely to appear gradually as retailers retrofit equipment and begin selling the blend.
Policy Intent And Market Effects
State officials say SB 795 streamlines the process for fuel sellers to offer E15 while preserving California’s environmental and safety standards. The measure is presented as both a way to expand lower-cost options for drivers and to bolster the state's fuel supply. Wider availability could increase competition at the pump and give drivers an additional option during regional or national price spikes.
Gov. Newsom: “This common-sense bill cuts unnecessary red tape while maintaining our environmental and safety standards. We're helping make E15 a real option for California drivers.”
Observers note that in car-dependent regions such as Southern California, even a modest reduction of up to $0.20 per gallon could add up to meaningful annual savings for many households, particularly those with long commutes.
National Context
The move comes amid broader conversations about E15 policy and transportation rules: Congress faces pressure to adopt nationwide E15 regulations to allow lower-cost fuel year-round; periods of tight global liquefied petroleum gas (LPG) supply have contributed to higher domestic gasoline prices; and federal regulators recently changed how some automakers can claim credits for fuel-saving technologies, a shift that also affects the broader fuel and vehicle landscape.
SB 795 clears an important procedural hurdle, but the pace and scale of E15 uptake in California will depend on private-sector investments, station conversions, and continued regulatory alignment at the state and federal levels.
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