In an effort to cut down on global warming, California regulators have stepped up the amount of ethanol to be blended in the state’s fuel supply. Currently, the state puts ethanol in gasoline at a six percent rate. That goes up to 10 percent in 2010.
This article from the San Francisco Chronicle points out the problem with that: not much of it is homegrown for the Golden State. It has to be imported from the Midwest:
The great boom in ethanol plant construction that swept the nation’s farm belt in recent years has barely touched the Golden State. Biorefineries here make only 8.6 percent of all the ethanol California uses. Other states supply the rest, shipped by rail over the Sierra or through the Southern California desert.
The California Air Resources Board this summer decided to raise the amount of ethanol that oil companies can blend into the gasoline they sell here. By 2013 – after the new rules kick in – California’s ethanol use is expected to jump more than 78 percent, to 1.7 billion gallons per year.
Experts expect the ethanol industry in California to take off to meet that demand. In the meantime, Midwest ethanol is in ample supply. The biggest issue remains getting it there.



Expect some long lines at the pump Wednesday morning at the Kroger Store in Irving, Texas.
The $300 million project, which will be partly funded by a $72 million Department of Energy grant awarded
When Secretary of Agriculture Mike Johanns spoke at the National Press Club on July 27, the inevitable question about ethanol was asked.
This article on BizJournals.com says last October, Rex invested the first $5 million in the company:
Big River Resources is a holding company for several entities including Big River Resources West Burlington LLC, which runs an ethanol plant in West Burlington, Iowa. The ethanol plant starting operating in April 2004 as a 40 million gallon per year plant and expanded to a 52 million gallon plant in August last year. It plans to eventually ramp that production up to 80 million gallons per year.
”The 1,251 E85 fueling stations operating today in 41 states across the nation pale in comparison to the number of sites needed to satisfy the demands of the motoring public and the nation’s automakers,” said Phil Lampert, NEVC Executive Director.
Fargo hosted the state’s official labeling kick-off event on Thursday at the Cenex Convenience Store. North Dakota Governor John Hoeven;
“We’re increasing production of ethanol at a strong pace, and it’s important to increase public awareness of its benefits through our marketing efforts as well,” Hoeven, said. “Enhanced ethanol production is a win for our farmers and rural areas, and a win for our economy.”