California legislators vote to allow the sale of higher-ethanol gasoline

California lawmakers voted on Wednesday to allow the sale a gasoline blend with a higher ethanol content that could lower fuel prices in America's largest auto market.

Once the bill has been signed by Gavin Newsom, E15 (a blend that contains 15% ethanol) will be available for sale immediately. California was the only state in the U.S. that didn't allow the sale of this fuel.

This move will likely benefit biofuel producers as well as corn farmers. It will increase the market for these products in the largest U.S. State.

California's Senate approved the bill AB 30 with a 39-0 unanimous vote. The measure was approved by the California Assembly in June.

Newsom directed California regulators to examine whether ethanol could be blended into gasoline last year, but the work has not been completed. California is grappling with the question of how to curb skyrocketing gas prices and still maintain its environmental goals.

California Senator Laura Richardson stated on the Senate floor when introducing the bill that "California's consumers can no longer wait." She cited a University of California report that found that the availability of the fuel could reduce gas prices by 20 cents a gallon in California.

Geoff Cooper said, "With today's passing of AB30 California takes a huge step towards lower gas prices, and a cleaner, sustainable future for all families in the state."

Many other states have already experienced the benefits of E15 - cleaner air, improved engine performance and lower fuel costs. Californian drivers will soon be able to enjoy the same benefits. We urge Gov. Newsom should sign the bill as soon as possible." (Reporting and editing by Nichola Grroom; Kim Coghill).

(source: Reuters)