California could soon change course on E-15

Pressure to lower gas prices across the Golden State could be the saving grace of this year’s corn harvest. California may soon be the final U.S. state to approve E-15 sales.

California could soon be the final state to approve the sale of E-15 biofuel, which could be a “Golden” lining for this year’s bumper corn crop, ready for harvest when low market prices are a big concern for producers.

Golden State lawmakers reversed course on E-15 this month, sending a bill to Governor Gavin Newsom’s desk to allow for sales to accomplish the Administration’s goal to reduce gas prices. According to AAA (on Sept. 9, 2025), a gallon of regular gas costs $4.63, which is more than a dollar higher than the U.S. national average.

While Gov. Newsom has yet to sign that bill, biofuel groups remain hopeful, adding that it would help absorb the surplus of low-cost corn about to hit the market.

“That adds another 500, almost 600 million gallons of new demand for American ethanol, when California adopts E15,” explained Troy Bredenkamp with the Renewable Fuels Association. “It’s 200 million bushels of new demand for new corn grind. So that is significant when you’re looking at one of the biggest crops, maybe the biggest crop in history, coming in this fall.”

Bredenkamp is also calling on Congress to settle the E-15 debate once and for all when it comes to year-round sales. Use of E-15 was previously banned during the summer months because it was believed to be more volatile in high temperatures, and there was worry it could contribute to smog and reduce air quality.

However, biofuel groups argue that science has disproved this theory. Arguing it is actually less volatile than standard gasoline.

Related Stories
ASFMRA’s Chad Hertz joins us to discuss farmland trends, economic pressures facing producers, and how outside influences are shaping today’s land market.
While there is no guarantee a House vote will happen today, the measure has officially been placed on the congressional calendar.
USDA’s first 2026/27 outlook shows tighter supplies across several markets, led by wheat, corn, cotton, rice, beef, and sugar.
Strong export demand is supportive, but higher freight costs may pressure basis and grain movement margins.
USDA says planting progress remains strong nationwide, though some soybean fields are still slow to emerge.

LATEST STORIES BY THIS AUTHOR:

Ryan Dunsbergen, soybean product manager for Golden Harvest, shares an overview of their new soybean seed lineup and what growers can expect in 2026.
Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
With China halting U.S. soybean purchases and talks tied to broader strategic issues, growers face renewed export uncertainty.
Talks highlight the widening role of agriculture in U.S.–India trade policy, though neither side appears ready for major concessions before tariff issues and oil imports are resolved.
Southern farms are deepening online engagement for cost savings and market access, while higher-cost precision technologies face renewed scrutiny amid tight budgets.