In California, a new study by economists at UC Berkeley and the U.S. Naval Academy found California drivers could expect to save 20 cents per gallon if the state allowed gas stations to sell E15 fuel – a blend of 15 percent ethanol and 85 percent gasoline approved in all 49 other states.
The potential savings for California consumers could reach $2.7 billion annually, according to the study authored by David Zilberman, PhD, a distinguished professor in the Agricultural and Resources Economics Department at UC Berkeley, and Scott Kaplan, PhD, assistant professor in the Economics Department at the United States Naval Academy.
California is the last remaining state to limit ethanol inclusion in gasoline to just 10 percent (E10), but state regulators are considering approval of E15 after extensive vehicle testing showed the fuel offers important emissions benefits. E15 is legally approved by the U.S. Environmental Protection Agency for use in all cars, pickups, SUVs and vans manufactured in the last 24 years.
The study, sponsored by the Renewable Fuels Association, details the economic viability and implications of adopting E15 in California by analyzing fuel characteristics, market dynamics, and regulatory influences. Beyond direct cost savings, researchers found that increased use of ethanol-blend biofuels lowers gasoline usage, enhances energy security and reduces greenhouse gas emissions.
