Governor Newsom signs Alvarez bill expanding fuel options to cut gas prices

SACRAMENTO — Governor Gavin Newsom today signed legislation that could help bring down the cost of gasoline in California. The Governor signed Assembly Bill 30 by Assemblymember David Alvarez (D-San Diego), which allows an additional blend of gasoline – E15 fuel specifically – to be sold in the state while the Air Resources Board (CARB) completes its ongoing work to study whether the additional blend can meet the state’s clean air requirements. 

“AB 30 is a bipartisan example of how we can solve problems thoughtfully in California,” said Assemblymember Alvarez.  “By authorizing the sale and use of E15 gasoline, we can reduce the cost of gas and maintain our commitment to a cleaner environment. I thank Governor Newsom and Speaker Rivas for prioritizing affordability this year, and I’m grateful to the Problem Solvers Caucus for making this bill a priority. I look forward to continuing to work on solutions that improve the lives of Californians in the months ahead.”

Last October, the Governor directed CARB to accelerate studying how California could increase ethanol blending in gasoline while maintaining environmental protections. Authorizing the use of this alternative gasoline fuel blend reduces the state’s dependence on petroleum and further diversifies the state fuel supply, helping to avoid gasoline price spikes and costs to consumers at the pump.

“Thanks to our work with the legislature, we have averted billions of dollars in higher costs at the pump by avoiding the kinds of severe gasoline price spikes we saw a few years ago,” said Governor Newsom. While we continue the critical work to stabilize our state’s fuel market, we’re cutting red tape to provide consumers with more options as we continue our transition to cleaner transportation.”

According to a study conducted by the University of California, Berkeley and the United States Naval Academy, E15 gasoline blend could lower prices at the pump by up to $0.20 per gallon and save Californians as much as $2.7 billion annually. E15 fuel, which contains 15% ethanol, has been widely adopted in other states and could reduce gasoline prices without adding environmental harm. 

Another study from the University of California, Riverside found that increasing ethanol blending in gasoline would not affect NOx emissions and would reduce particulate emissions. As of 2023, E15 was sold at more than 3,000 stations in 31 states.

AB 30 was sponsored by the California Problem Solvers Caucus and included an urgency clause which allows the law to take effect today.

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The 80th Assembly District includes the communities of Barrio Logan, Logan Heights, Sherman Heights, Lincoln Acres, Bonita, Otay Mesa andSan Ysidro, along with the cities of Chula Vista, National City and Imperial Beach.