Latest market news

California E15 bill sputters

  • : Emissions
  • 24/10/08

An attempt by California lawmakers to eventually allow the sale of a 15pc ethanol blend gasoline (E15) to temper consumer fuel prices in California has likely stalled in the state senate.

ABX2-9, sponsored by state assembly member Cottie Petrie-Norris (D), would have required the California Air Resources Board (CARB) to finish its evaluation of the potential for moving to an E15 blend from E10, the highest ethanol blending approved in the state, supported by a fee on ethanol producers.

"As you might imagine, I am extremely disappointed to see this common-sense policy fail to move forward as part of the extraordinary session," Petrie-Norris said.

The bill cleared the state assembly with no opposition last week as part of a special session called by governor Gavin Newsom (D) to address retail fuel prices.

ABX2-9, read for the first time on Monday in the state Senate, has been referred to its rules committee for assignment. But the bill will not be referred to the Special Committee on Fuel Supply and Price Spikes for further action, according to state Senate president pro tem Mike McGuire (D).

"While the goals of this legislation are laudable, and we're grateful to the Assembly member's leadership, a more thorough analysis and additional work is needed on the proposal," McGuire said.

California, unlike the rest of the country, has a permanent ban on E15 gasoline due to environmental concerns, such as the potential for higher emissions of NOx, which contributes to smog. Outside of the state, retailers are allowed to sell E15 during only the winter months, but the EPA has granted waivers for summertime sales of E15 each of the last three years.

For now, the California legislature is focusing on AB X2-1, which would require in-state refiners to maintain minimum stocks of gasoline and gasoline blending components, a proposal supported by Newsom.

The state Senate, which has been slow to heed a request by Newsom at the end of August for a special session, convened this week — with the aim of a speedy close to the session.

"With this session we'd like to be able to move quickly and efficiently," McGuire said on Monday.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more