California Governor Gavin Newsom on Friday gave a surprise boost to the ethanol industry by issuing a directive to the California Air Resources Board (CARB) to accelerate studying how California could increase ethanol blending in gasoline to allow the sales of E15.
The Renewable Fuels Association immediately praised Gov. Newsom for taking this action since California is the only state in the country that bans the sale of lower-cost, lower-carbon E15.
Gov. Newson cited a recent study conducted by the University of California, Berkeley and the United States Naval Academy, showing that just allowing the sale of E15 could lower gas prices in California by up to $0.20 per gallon and save Californians as much as $2.7 billion annually. That study was sponsored by the Renewable Fuel Association.
Listen to an interview with RFA Chief Economist Scott Richman about the study:
RFA Chief Economist Scott Richman 6:38