California Bill Advances to Ease Rules on Ethanol Fuel Conversion Kits

California lawmakers approved a bill to ease restrictions on E85 conversion kits that allow conventional gasoline cars to run on a cheaper ethanol fuel blend. Assembly Bill 2046 advanced through the Assembly on a 59-0 vote with no debate or opposition. The measure now heads to the California state Senate and would need Gov. Gavin Newsom’s approval before it becomes law.

The bill comes as California faces the nation’s highest gas prices, which have climbed above $6 a gallon amid the Iran-Israel war and its effects on global oil markets. Assemblymember Rhodesia Ransom, a Stockton Democrat and the bill’s author, said the proposal offers a practical way for commuters and working families to save money.

If approved, the measure would exempt manufacturers of E85 converter kits from an approval process by the California Air Resources Board. The kits, which cost between $800 and $1,250, would let drivers convert their cars to run on both gasoline and E85 fuel, a blend of up to 85 percent ethanol and 15 percent gasoline.

3 million vehicles in California can currently use E85, which is sold at about 640 stations statewide. The ethanol blend has sold for $2 or more less per gallon than gasoline during recent price spikes, according to Jeff Wilkerson of Pearson Fuels. E85 delivers 20 to 30 percent fewer miles per gallon than gasoline, meaning drivers save money only when the fuel is priced at least 20 to 30 percent below gasoline.

The state’s Low Carbon Fuel Standard rates E85 cleaner than regular gasoline, though UC Berkeley economist Aaron Smith said the benefits are likely overstated because official numbers understate emissions from land use changes.

The California Air Resources Board has received only five applications for E85 conversion kits since 2008 and has approved none. The bill would leave in place a separate federal certification process run by the Environmental Protection Agency. Ransom said more E85 pumps would be built if the state loosened restrictions and encouraged demand.

She added that the bill would present E85 as an alternative choice for drivers.