Another way the ethanol industry is looking to expand is by gaining market access to California. The Renewable Fuels Association is now calling on the state to allow the sale of E15 blends. They believe its an easy way to enhance the state’s low carbon fuel standard.
RFA Chief Economist, Scott Richman says that E15 offers consumers a unique opportunity to not only lower the cost of gasoline but also cut greenhouse gas emissions and pollutants. The sale of E15 could shave off as much as 20 cents a gallon off the cost of gasoline in California.
The state currently has the highest average fuel prices.
If permitted it could result in a statewide annual savings of nearly $3 billion dollars.
Unfortunately, the Senior Vice President of Industry Relations and Market Development at the RFA says a few challenges still remain.
Robert White states, “California is the last holdout, the last state where you can’t sell E15, and ironically, given their low carbon fuel standard and our low carbon fuel that makes E15, we could sell it for anywhere from 20-25 cents a gallon less today in a state where fuel prices are well over $5 a gallon. We recently had some discussions with the California Air Resources Board that has to approve E15 and unfortunately, we couldn’t come to an agreement on many things. And so, it will at least be another handful of years before E15 is approved because we haven’t started the rulemaking process.”
RFA President and CEO Geoff Cooper says that it is time for California to catch up to the other 49 states that have already allowed consumers to choose lower-cost, lower-carbon E15.
