Aemetis, Inc. (Nasdaq: AMTX), a California renewable fuels producer, today called for the California Air Resources Board (CARB) to immediately implement a 15% ethanol blend in gasoline to reduce gas prices for California consumers and reduce greenhouse gas emissions (GHG) from motor vehicles.
The press release reads as follows:
California stands alone among the 50 states in not adopting a 15% blend of fuel ethanol. The US EPA approved E-15 for use in light duty vehicles in 2011, and 49 other states have adopted a 15% ethanol blend. California still mandates a 90% petroleum blend in every gallon of gasoline.
In response to Governor Newsom calling a special session of the state legislature, the State Assembly is currently holding hearings regarding the need for lower fuel prices in California. An obvious solution is to allow consumers to purchase lower cost, cleaner burning, domestically produced renewable fuel instead of mandating higher cost, polluting imported petroleum fuel.
A recent study by UC Berkeley and US Naval Academy economists found that allowing an E-15 blend could save California drivers $2.7 billion at the pump annually, which translates into approximately $0.20 per gallon every time a motorist fuels their car.
A typical California household would save about $200 per year on gasoline expenses, and for many lower income residents of the Golden State, that money could be spent on items like childcare, groceries, or prescription medications.
Moving to an E-15 blend would have an immediate impact on California’s environment as ethanol is derived from renewable sources and emits 46% fewer air pollutants than gasoline. According to the Environmental and Energy Study Institute, the US transportation sector accounts for 27 percent of US greenhouse gas emissions. Increasing California’s ethanol blend would reduce emissions and likely reduce gasoline usage in the state, while providing an immediate and measurable benefit to the state’s ambitious goal of reaching net carbon neutrality by the year 2045.
A study commissioned by CARB found that adopting E-15 in the state could cut emissions of tailpipe pollutants such as particulate matter and carbon monoxide, which cause air quality and human health problems.
“As the transition to EVs and other zero tailpipe emission vehicles take place over the next decade, California should adopt every tool available – today – to expedite the reduction of harmful fossil fuel emissions,” said Eric McAfee, Chairman and CEO of Aemetis, Inc. “The most immediate cost-saving and environmentally beneficial step the state can take is the implementation of E-15,” added McAfee.
The adoption of E15 supports the broader goals outlined in California’s climate action plans, which include reducing dependence on fossil fuels, decreasing air pollution, and promoting the use of renewable energy. By transitioning to E15, California can make substantial progress in achieving these goals.
The steps required to allow an E-15 blend in California have been conducted, including source testing and on-road testing. Billions of miles have been driven on E-15 across the United States since 2011. CARB can adopt new rules that will allow E-15 to be sold in California as soon as 2025.
“We applaud Governor Newsom’s focus on the chronic problem of high gas prices in California, and we urge the state legislature’s special session to call on CARB to implement E-15,” said McAfee.
