US' Pacific Ethanol said Wednesday that its two production facilities at Madera and Stockton have been accepted by the California Energy Commission to
participate in the California Ethanol Producer Incentive Program.
Pacific Ethanol's plants in California have a combined production capacity of 100 million gallons/year. They have been shut since the first quarter of 2009 due to poor market conditions.
The payments would help to resume ethanol production in California,Pacific Ethanol's President and CEO Neil Koehler said.
CEPIP is designed to provide payments to California ethanol producers under specific unfavorable economic conditions and requires reimbursement by the producers any outstanding CEPIP payment balance when the economic situation is favorable.
Current funding is subject to final adoption by the State of California for its fiscal 2011 budget.
CEPIP uses what it calls the Ethanol Crush Spread calculation, which includes a Los Angeles ethanol price and a Chicago Board of Trade month-ahead futures corn price.
CEPIP limits total annual funding to $3 million for any single production facility.
Pacific Ethanol's subsidiaries emerged from bankruptcy at the end of June this year.
The company also has ethanol plants at Boardman, Oregon (40 million gal/year); and Burley, Idaho (60 million gal/year).
participate in the California Ethanol Producer Incentive Program.
Pacific Ethanol's plants in California have a combined production capacity of 100 million gallons/year. They have been shut since the first quarter of 2009 due to poor market conditions.
The payments would help to resume ethanol production in California,Pacific Ethanol's President and CEO Neil Koehler said.
CEPIP is designed to provide payments to California ethanol producers under specific unfavorable economic conditions and requires reimbursement by the producers any outstanding CEPIP payment balance when the economic situation is favorable.
Current funding is subject to final adoption by the State of California for its fiscal 2011 budget.
CEPIP uses what it calls the Ethanol Crush Spread calculation, which includes a Los Angeles ethanol price and a Chicago Board of Trade month-ahead futures corn price.
CEPIP limits total annual funding to $3 million for any single production facility.
Pacific Ethanol's subsidiaries emerged from bankruptcy at the end of June this year.
The company also has ethanol plants at Boardman, Oregon (40 million gal/year); and Burley, Idaho (60 million gal/year).
