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
Stable U.S. fundamentals continue for major crops, but global adjustments in corn, soybeans, wheat, and cotton may influence early-2026 pricing.
Corn and wheat exports continue to outperform last year, while soybeans show steady but subdued movement compared to 2024.
Mold damage is tightening China’s corn supplies, supporting higher prices and creating potential demand for alternative feed grains in early 2026.
Georgia has regained its HPAI-free status after a swift response to October’s detection. Commissioner Tyler Harper urges producers to stay vigilant and maintain biosecurity.
While this month’s WASDE report will not include updated figures on U.S. crop size, officials say it will offer a clearer picture of crop conditions in the Southern Hemisphere.
Southern producers head into 2026 with thin margins, tighter credit, and rising agronomic risks despite scattered yield improvements.
Record yields and exceptionally low BCFM strengthen U.S. corn’s competitive position in global markets.
Water access—not acreage alone—is driving where irrigation expands or contracts.
Credit stress is building for row-crop farms despite steady land values and slight price improvements.