White Paper Abstract

Driven by strong consumer value, innovative fuel retailers and progressive state policies, California has emerged as the national leader in E85 market growth. California’s E85 market has grown 600% over the past five years to exceed 11 million gallons in 2014. Key research findings include:

California has the highest rate of E85 growth of any state in the nation. E85 use has expanded 600% in California since 2009, while gasoline demand has decreased.
E85 use has significant positive impacts on air quality, GHG reductions and petroleum reductions; providing air quality benefits in severe non-attainment areas by contributing 18-53% reduction in NOx as well as a 32% reduction in greenhouse gasses (GHG) emissions.
E85 use has specifically benefited CalEPA designated Disadvantaged Communities.
E85 is California’s value fuel, with 92% of users saying it is same or better value than gasoline.
California's 1 million Flex Fuel vehicles can displace 600 million gallons of petroleum gasoline with E85.
California’s retail E85 volume per location exceeds the national average by 300%.
As a result of its policies, California is home to the lowest carbon ethanol in the country.

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Summary of Key Findings

1. E85 Volume Growth

E85 sales volume in California has grown 600% in the past five years to 11.1 million total gallons, while sales of gasoline declined. Volumes for individual retail locations are the highest in the country, averaging 140,585 gallons per year in 2014.

2. California's E85 User

California E85 users recognize E85’s value proposition, with 92% of customers reporting same or better value compared to unleaded gasoline. California's has over 1 million E85 compatible Flex Fuel vehicles with the potential to displace 600 million gallons of petroleum annually.

E85 user demographics reflect California’s diverse population with widespread adoption amongst mainstream fuel consumers.

3. Air Quality & Greenhouse Gas Benefits

E85 provides meaningful air quality improvements and greenhouse gas reductions. California's E85 offers 18-53% reduction in NOx and a 32% reduction in greenhouse gas emissions when compared to unleaded gasoline. California’s highest volume E85 retail locations are located in EPA extreme non-attainment areas.

4. Propel's Market Approach

Propel's retail strategies are the primary driver of California’s E85 market growth since 2009, resulting in 70% market share. Propel's unique market approach has outperformed the California average retail location by 300% and increased E85 volumes despite petroleum pricing volatility.