California lawmakers have unanimously approved the E15 Clean-Up Act, removing key regulatory barriers to the sale of E15 petrol, a blend containing 15% ethanol.

The legislation allows retailers to use compatible existing vapour recovery equipment, clearing a major practical hurdle for fuel suppliers. Industry groups say the move could give motorists access to a lower-cost, lower-carbon alternative to conventional petrol.

With California accounting for around 10% of US petrol demand, wider E15 use could increase ethanol demand significantly and influence fuel policy in other major markets. The legislation now awaits final implementation and regulatory approval.