In addition to giving the green light for the California Air Resources Board (CARB) to raise gas prices, Governor Gavin Newsom has directed state regulators to accelerate their study of increasing gasoline-ethanol content. The governor's order calls on CARB to examine the feasibility of blending gasoline with 15 percent ethanol, also known as E15. This represents a shift from California's current 10 percent cap on ethanol blending.
Governor Newsom highlighted the potential benefits of this initiative, noting that expanding ethanol blending could help reduce California gas prices while maintaining the state's environmental protections. State officials estimate that increasing the ethanol blend could immediately boost California’s gasoline supply by as much as 10 percent, potentially reducing prices at the pump.
Ethanol is derived mainly from corn, and studies have shown mixed results about its environmental impact. The National Academy of Sciences reported in 2022 that “corn-based ethanol is likely a much bigger contributor to global warming than straight gasoline.”
Reuters reported that “the research, which was funded in part by the National Wildlife Federation and U.S. Department of Energy, found that ethanol is likely at least 24% more carbon-intensive than gasoline due to emissions resulting from land use changes to grow corn, along with processing and combustion.”
The timing of Newsom's directive is significant, as CARB is set to vote on the state's low-carbon fuel standard in November, a decision expected to raise gas prices by 47 to 60 cents per gallon.