Folsom-area drivers could see gas-price relief after Gov. Gavin Newsom signed a bill clearing the way for cheaper E15 fuel in California.

Newsom signed Senate Bill 795 on Sept. 19, removing a regulatory bottleneck that had blocked gas stations from selling E15, a blend of 15% ethanol and 85% gasoline. A study by economists at the University of California, Berkeley, and the U.S. Naval Academy estimates the fuel could lower prices by up to 20 cents per gallon and save Californians as much as $2.7 billion a year, according to the governor's office. That study was sponsored by the Renewable Fuels Association, the ethanol industry's national trade group.

The savings would be welcome in the Sacramento metro area, where AAA reported the average price for regular gas was $5.95 per gallon as of Sept. 14. Statewide, the average hit $6.17 on Sept. 21, the Sacramento Bee reported. The national average stood at $4.48.

The problem was paperwork. Last year, Newsom signed Assembly Bill 30, which legalized E15 sales in California. But the fuel never reached pumps because manufacturers of E15-compatible dispensing equipment needed sign-offs from four separate state agencies before the California Air Resources Board (CARB) could certify the hardware, KCRA reported. As of earlier in 2026, no vapor recovery components had been certified as E15-compatible.

SB 795, authored by state Sen. Bob Archuleta, streamlines that process so CARB can certify equipment without waiting on the other agencies. On Friday, Sept. 25, CARB voted to adopt new gasoline regulations that allow E15 sales, according to a CARB announcement.

Still, drivers should not expect immediate savings.

Gas stations must upgrade dispensers, signage and storage systems before selling E15. The state estimates those modifications could cost between $25,000 and more than $400,000 per station, ABC10 reported. Offering E15 is voluntary; not every station will carry it.

"Going from E10 to E15 is not that big of a change. It's not going to revolutionize anything, but eventually, we might see some savings," Lew Fulton, a professor at the UC Davis Institute of Transportation Studies, told ABC10.

David Hackett, president of Irvine-based transportation energy consulting firm Stillwater Associates, offered a more optimistic timeline. He estimated it would take "weeks, not months" for E15 to appear at some pumps, with independent retailers likely to move first, the Mercury News reported. The Renewable Fuels Association expects broader availability by early 2027.

One tradeoff: Doug Johnson, a AAA spokesperson, told ABC10 that drivers would get about 2% less mileage per gallon with E15 compared to regular gasoline. CARB says E15 works in cars, trucks and SUVs from model year 2001 and newer but cannot be used in school buses, delivery trucks, motorcycles, boats or lawnmowers. Dispensers must be clearly labeled.

CARB's scientific review found E15's health and environmental effects comparable to the current E10 blend, with a potential slight improvement in air quality. E15 is available in 36 other states, according to CARB. California was the last state to legalize the fuel.

No Folsom-area gas station has announced plans to carry E15. The Renewable Fuels Association expects independent stations to lead the transition, with the first E15 pumps statewide arriving by early 2027.