As the California State Senate was voting to approve sales of E15 last week, the Renewable Fuels Association was in San Diego kicking off a major educational effort to help retailers and others in the transportation fuel industry prepare for the opportunity.
RFA Senior Vice President of Industry Relations and Market Development Robert White says they hosted three E15 workshops at the CFCA Summit, the annual trade show of the California Fuels & Convenience Alliance.
“It was very exciting to see the interest level in those workshops…there were literally thousands of stations represented,” said White. “From small independents and mom and pops to major refiners, they were all in the rooms learning about what requirements there were, what the blending economics are, what the value proposition could be, not only for them to make more margin per gallon, but could they lower their price point for the consumer and perhaps become the price leader.”
White says they have eight more workshops scheduled over the next month around the state because they really want California retailers to be able to hit the ground running as soon as they are cleared to sell.
“We believe that E15 value proposition is going to be even stronger than it is here in the Midwest and parts of the East Coast and Southeast so that when one retailer starts to do that blending we think it’ll take hold a little bit faster than we’ve seen in other areas,” says White. “So here’s this strange scenario where the last state to legalize E15 could really become the poster child for the rest of the country.”
Exactly when the first E15 sales could start in California depends on several factors, the first of which is when, and whether, Governor Gavin Newsom signs the bill. “The governor can sign it and make it law. Or if he takes no action in 30 days, it still becomes law,” White says. “The only way it gets stopped is if he vetoes it. And we fully expect the governor to sign it. This has been one of his priorities.”
RFA has set up a website to provide information about selling E15 in California called E15forCA.com.
Listen to White’s interview here.
Robert White, RFA - E15 for CA (12:35)