California Governor Gavin Newsom signed Senate Bill 795, allowing the immediate sale of E15 gasoline, a blend containing 15% ethanol and 85% gasoline. California had been the only U.S. state barring the higher blend. The move comes as gasoline prices in the state approach $6.14 per gallon, compared with a national average of $4.44, according to GasBuddy data. Aemetis CEO Eric McAfee estimated that E15 could create about 650 million gallons of annual ethanol demand in California, while noting that ethanol sells wholesale for about $2.30 per gallon. The Renewable Fuels Association said E15 could reduce retail gasoline prices by roughly 20 cents per gallon and save California drivers at least $2.7 billion annually, citing a 2024 study by economists at the University of California, Berkeley, and the U.S. Naval Academy. Congress is separately considering legislation to authorize year-round E15 sales nationwide as the war with Iran rattles oil markets and heightens concerns about crude supply disruptions.