A bill signed by Gov. Gavin Newsom could lower fuel costs for California motorists by accelerating the arrival of E15 gasoline, a blend the Governor's Office says is often cheaper than the standard fuel now sold.
That may matter especially in Southern California, where pump prices have been rising and gasoline is a major ongoing household cost.
Here's what to know
According to a release from the Governor's Office, Newsom signed Senate Bill 795 on Sept. 19, 2026, removing a regulatory obstacle that had delayed California's E15 rollout. E15 is a gasoline blend containing up to 15% ethanol.
The law is meant to put AB 30 into effect after the 2025 measure approved E15 sales in California. The Governor's Office said doing so would broaden the state's fuel mix and add a choice that could be cheaper per gallon than E10, the blend drivers usually buy.
Researchers at the University of California, Berkeley, and the United States Naval Academy estimated that E15's arrival could lower gasoline prices by up to 20 cents a gallon, for annual statewide savings of up to $2.7 billion.
A separate University of California, Riverside, study found that using more ethanol in gasoline would reduce particulate pollution without changing nitrogen oxide emissions.
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More background
California is behind much of the country on this fuel: By 2023, E15 was already available at more than 3,000 stations in 31 states.
Even so, the change is not expected to spread quickly in California. The Berkeley-Naval Academy study said a move to E15 would require statewide infrastructure upgrades, including changes at retail gas stations.
The legislation removes one obstacle to rollout, though any noticeable consumer impact is likely to come slowly as retailers convert equipment and begin offering the blend.
In a car-dependent region such as Southern California, where commuting costs can strain household budgets, a drop of up to 20 cents per gallon could add up to noticeable annual savings.
What's being done?
SB 795 aims to simplify the path for fuel sellers to offer E15 in California without changing the state's environmental or safety rules.
State officials said the measure is intended both to expand lower-cost options for drivers and to bolster the fuel supply.
Expanded fuel choice could give Californians more flexibility when prices spike. Even if E15 does not replace conventional gasoline everywhere, wider availability could increase competition.
Newsom described the bill as a practical step for families feeling squeezed by high fuel costs, stating: "This common-sense bill cuts unnecessary red tape while maintaining our environmental and safety standards. We're helping make E15 a real option for California drivers."
Where can I learn more?
These articles look at nationwide E15 policy, California gas prices, and other transportation changes affecting fuel costs.
• Congress is being pressed to pass nationwide E15 rules to keep lower-cost fuel available year-round.
• California motorists have seen gasoline top $6 a gallon as overseas liquefied petroleum gas demand tightens supply.
• Federal regulators have eliminated start-stop technology credits, changing how automakers count fuel-saving features.
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