California Issues Upbeat Assessment of Ethanol Supply.

Oil Daily, The, October, 2003

WASHINGTON -- With the state set to switch completely to ethanol blended gasoline by next January, the California Energy Commission (CEC) released a report Tuesday that said US ethanol production is increasing rapidly and the industry is expanding beyond Midwestern states.

The report coincides with the heated debate in Congress on increasing ethanol use in gasoline in a comprehensive energy bill. If the energy bill is passed this year, ethanol and other renewable fuels use in gasoline could go up to 5 billion gallons by 2012. The proposed mandate, however, is causing concern among some who worry that there could be supply and logistical problems.

The CEC report said the US ethanol production capacity increased from 2.22 billion gallons per year in 2001 to...