Researchers from UC Berkeley and the U.S. Naval Academy found adopting E15 blend
gasoline could save Californians 20
cents per gallon
ST.
LOUIS, July 12, 2024 /PRNewswire/ -- 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.
"Consumers have the potential to gain significantly from the
introduction and purchase of E15," according to the study. "In
particular, our estimates suggest an approximately 20 cents per gallon discount for E15 compared
with E10 after adjusting for energy content." The authors also
highlighted the benefit of E15's lower carbon emissions. "In
California, price savings for lower GHG intensity fuels are larger,
likely due to California-specific
policies incentivizing low carbon fuels."
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.
"Based on this study's results, a typical California household could save $200 per year on their gas bill if state
regulators would simply allow drivers to fuel up on E15," said RFA
President and CEO Geoff Cooper,
noting that more than 24 million registered vehicles in
California are already approved to
use E15, but stations are not allowed to sell it. "It's time for
California to catch up to the
other 49 states that already allow consumers to choose lower-cost,
lower-carbon E15. The state's failure to approve the use of E15
essentially amounts to a gas price hike at a time when hardworking
Californians can least afford it."
The study also found that "low-income commuters may stand to
gain the most from a transition towards E15," given their
propensity to have longer commutes and less fuel-efficient
vehicles.
An earlier study commissioned by the California Air Resources
Board found that adopting E15 in California could also provide significant
environmental benefits, cutting emissions of tailpipe
pollutants—like particulate matter and carbon monoxide—that cause
air quality and human health problems.
ABOUT THE RENEWABLE FUELS ASSOCIATION
The Renewable Fuels Association is the leading trade association
for America's ethanol industry, driving growth in sustainable
renewable fuels and bioproducts for a better future. Our
vision is to help the world by unlocking the power of renewable
fuels and bioproducts. Learn more at https://ethanolrfa.org/.
CONTACTS:
Matt Mahon,
matt@latigostrategies.com, (916) 502-1568
Ken Colombini,
kcolombini@ethanolrfa.org, (636) 594-2281
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SOURCE RENEWABLE FUELS ASSOCIATION