California is moving closer to allowing year-round E15 sales, potentially opening one of the nation’s largest gasoline markets to increased ethanol use.
The California legislature approved a bill during the final day of its legislative session that removes the remaining regulatory barriers preventing E15 from being sold in the state. Renewable Fuels Association President and CEO Geoff Cooper discussed the development at the Farm Progress Show.
California had already taken a major step last year when lawmakers gave legal approval to E15. Cooper says the latest legislation addresses the remaining regulatory issues that prevented retailers from actually offering the fuel.
The legislation still requires the signature of California Governor Gavin Newsom, but Cooper says the industry expects that approval. Once signed, California retailers would be able to offer E15 throughout the year.
California is significant not only because of the size of its fuel market, but because it had been the final state where E15 was not legally approved. For Iowa, the development represents another potential source of demand for ethanol produced in the nation’s leading ethanol-producing state.
However, Cooper says the Renewable Fuels Association still prefers a national solution that would provide consistent year-round E15 access across the country.
Congress has made progress on that effort. The House approved year-round E15 legislation earlier this year, while supporters have also been working to include the issue in the Farm Bill.
The Senate Agriculture Committee did not advance its Farm Bill before lawmakers left Washington for the August recess, leaving the issue to wait until senators return. Cooper says the industry remains optimistic that lawmakers can find a path forward.
Cooper says support for year-round E15 extends across both parties and both chambers of Congress, with the Trump administration also supporting the effort.
For Iowa corn growers and ethanol producers, California represents another major market that could open to E15. At the same time, the industry continues working toward its larger goal of making year-round E15 available nationwide.
The post California breakthrough could boost Iowa ethanol demand appeared first on Iowa Agribusiness Radio Network.
