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.

LATEST STORIES BY THIS AUTHOR:

CoBank’s 2026 Year Ahead Report cites global grain oversupply, easing inflation, rate cuts, and major data center growth that could reshape rural America.
Plan for sharp, short-term volatility after unexpected outages; permanent closures rarely trigger major price spread disruptions.
American Farm Bureau Federation (AFBF) economist Danny Munch joined us on Thursday’s Market Day Report to break down the scope of the U.S. Christmas Tree industry and what growers are up against.
Canadian tariffs would raise costs for potash, ammonia, and UAN, increasing spring fertilizer risk.
Lewis Williamson with HTS Commodities breaks down the outlook on grain storage and domestic supply chain strength as producers weigh planting decisions with forthcoming federal aid.
Experts say flooding the zone with more money could have unintented consequences without opening new markets for planted crops and inputs under significant pressure.