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.
More than 1,100 residents and farmers have signed a letter urging Ag Secretary Brooke Rollins to step in, saying the proposal threatens irrigation supplies and long-term farm viability in the region.
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Callahan is no stranger to agricultural trade and has been with the U.S. Trade Representative’s office since 2016.
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The Pet and Livestock Protection Act now moves to the Senate for consideration.
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Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.
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