Red Tape Stalls California From Selling Popular Ethanol Fuel

California lawmakers voted last year to allow the sale of gasoline containing up to 15% ethanol in a bid to lower fuel costs for consumers, but the industry says a drop has yet to flow as prices climb at the pump.

Ethanol producers say the state’s attempt to cut red tape has tied up gas stations and fuel producers further as regulators contend fuel pump equipment must be newly certified as safe to operate with E-15, a process the industry’s advocates say could take months or more than a year.

“That’s it. We’re down to this,” said Neil Koehler, policy ...