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ETHANOL As a Transportation Fuel In California

As of January 1, 2004, California completed a transition from methyl tertiary butyl-ether (MTBE) to ethanol as a gasoline oxygenate additive. With most gasoline sold in the state presently containing 5.7 percent ethanol, California is now the largest ethanol fuel market in the United States. About one billion gallons of ethanol are expected to be used in the state's gasoline supply in 2004.

The Energy Commission continues to study the potential for ethanol fuel production and use as part of California's overall strategy to assure adequate transportation energy supplies and reduce dependence on petroleum. In addition to its use as a gasoline blending component, ethanol can also be used as E85 (85% ethanol, 15% gasoline) in flexible fuel vehicles being produced by automakers.

Most of California's current ethanol supply comes from the Midwest U.S. corn-based industry, with a small supply contribution from foreign imports. There are only two small producers of ethanol in California today; however, a number of projects for expanded in state ethanol production are under consideration.

For Fuel Ethanol Price Graphs, please go to:
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For more information about ethanol please contact:

Emerging Fuels & Technology Office
Fuels and Transportation Division
California Energy Commission
1516 Ninth Street, MS-44
Sacramento, CA 95814
Phone: 916-654-4628

ETHANOL (also know has Ethyl Alcohol or Grain Alcohol, chemical formula CH3CH2OH) is a liquid produced mostly via fermentation and distillation processes from sugar and starch crop feedstock. Advanced processes for producing ethanol from agricultural, forestry and municipal wastes and residues are under development. Ethanol has been used in the U.S. as a gasoline octane enhancer and oxygenate since the 1970s when federal energy tax policy was enacted to encourage domestic production and use of this fuel.