California drivers were promised a cheaper fuel option. They’re still waiting.
Nearly a year after state lawmakers legalized E15 gasoline, not a single station in California is selling the fuel blend, despite estimates it could reduce prices at the pump by up to 30 cents per gallon.
The delay comes as California continues to post the highest gasoline prices in the nation, with statewide averages hitting $5.61 per gallon on Friday.
Supporters say E15, which contains 15% ethanol, could help bring down fuel costs because ethanol is generally cheaper than petroleum gasoline.
Yet motorists remain unable to buy it while regulators work through a lengthy approval process.
“Drivers are missing out on those savings all because of this kind of red tape bureaucratic process that is holding things up,” Geoff Cooper, president of the Renewable Fuels Association, told the San Francisco Chronicle. “We don’t understand why it’s taking so long when this fuel has been in the marketplace for 15 years outside of California.”
The biggest obstacle is the California Office of the State Fire Marshal.
Before E15 can be sold, manufacturers must update vapor-recovery certifications showing that fueling equipment such as hoses and nozzles can safely handle the fuel without releasing excessive gasoline vapors.
The agency also requires complete testing reports from laboratories it has approved.
Additional certifications are required from the California Air Resources Board, the State Water Resources Control Board, the Division of Occupational Safety and Health and the California Department of Food and Agriculture.
Cooper argues the process is costly and time-consuming, saying manufacturers have already verified compatibility and provide written warranties covering E15 use.
Lawmakers finally approved the fuel last fall — making California the last state in the nation to legalize E15 — but drivers still have no access to it because regulators have yet to complete the necessary approvals.
In December, California air regulators concluded that E15 would not have a significant adverse impact on public health or the environment.
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How much money drivers would actually save remains up for debate.
Cooper estimates Californians could save 30 cents or more per gallon based on price differences seen at stations in other states.
Jeff Wilkerson, government policy and regulatory affairs manager at Pearson Fuels, projects savings closer to 10 cents per gallon after accounting for gasoline and ethanol prices, transportation costs and federal renewable identification number credits, according to the Chronicle.
Aaron Smith, a professor of agricultural and resource economics at UC Berkeley, has also cautioned that expected savings may be overstated. In an analysis for the Energy Institute at Haas, Smith said that E15 has sold for about 25 cents less per gallon than standard gas in other states but argued the discount may partly reflect weaker consumer demand rather than lower production costs.
He also noted that E15 contains slightly less energy than standard gas, which can reduce fuel economy.
Even after regulatory approvals are complete, some stations could face costly infrastructure upgrades.
Wilkerson said certain locations may need to replace underground storage tanks before offering E15, a project he estimated could cost well into six figures.
Federal rules create another complication.
E15 generally cannot be sold between June 1 and Sept. 15 because it does not meet certain federal clean-air requirements intended to reduce smog.
Although the EPA recently issued a temporary emergency waiver allowing summer sales in response to rising fuel prices, the seasonal restrictions have made some retailers reluctant to invest.
Gov. Gavin Newsom raised concerns about implementation costs before signing the legislation legalizing E15. Since then, he has directed state agencies to speed up the approval process.
E15 is recommended only for vehicles built after 2001, including light-duty trucks and flex-fuel vehicles. Federal law prohibits its use in motorcycles, boats, small engines and vehicles older than model year 2001 because it may cause damage. It is now sold at roughly 5,000 stations nationwide.
The post Disbelief as California drivers can’t buy cheaper gas blend that state legalized last year appeared first on New York Post.
