Lawmakers in California have voted to allow sales of Ethanol-blended fuel in the state as President Donald Trump relaxes emissions norms in the U.S.
Higher Ethanol Blend Could Bring Fuel Prices Down
California will allow sales of E15 gasoline in the state, which contains 15% Ethanol, as soon as Governor Gavin Newsom signs the bill into law, Reuters reported on Wednesday.
Newsom had earlier asked regulators in California to study the effects of Ethanol blending to rein in gas prices in the state, but the research isn't completed yet, the report said.
It's worth noting that California was the only state in the U.S. to not allow the sale of the fuel. The AB 30 bill was passed with a unanimous 39-0 vote, with California Senator Laura Richardson hinting at lower fuel prices in the state due to the decision, the report suggests.
California's Greener Push Amid Trump's Emissions Rollback
The news comes as California has taken measures to promote greener alternatives in the state amid rising gas prices. Recently, the government announced it could still offer incentives on electric vehicles via backfill, despite the Federal EV credit ending on September 30.
Meanwhile, the Trump administration has relaxed CAFE norms in the U.S., which dictate that vehicles must be able to cover a certain distance on a gallon of fuel. Relaxing the norms pulls legal pressure off automakers to comply with fuel economy norms.
It's worth noting that Stellantis NV (NYSE:STLA) paid $190 million in fuel economy fines for the company's 2019 and 2020 models exceeding CAFE standards.
Trump EPA Proposes Rescinding Endangerment Finding
Trump's EPA also proposed rescinding the 2009 Endangerment Finding, which forms the basis of the U.S.'s climate action as well as curbs on carbon emissions in the country.
The move has been touted as an end to "sixteen years of uncertainty" for automakers in the U.S. by the administration, saying that it would end up saving over $54 billion for consumers.
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