These plants have a combined annual production capacity of 100 million gallons. The CEPIP is designed to provide payments to eligible California ethanol producers under specific unfavorable economic conditions and requires reimbursement by participants to the state of any outstanding CEPIP payment balances under specifically identified favorable economic conditions. Current funding is subject to final adoption by California for its 2011 fiscal year budget.
With the passage of AB 118 in 2007, the California Energy Commission has an annual program budget of approximately $100m to support projects including those that develop and improve alternative and renewable low-carbon fuels; optimize alternative and renewable fuels for existing and developing engine technologies; produce alternative and renewable fuels in California; and decrease the overall impact and carbon footprint of the fuels and increase sustainability.
Pacific Ethanol president and CEO Neil Koehler said that California continues to lead the nation in supporting the production of low-carbon fuels. The recently approved CEPIP program combined with the state’s Low-Carbon Fuel Standard set to begin in January 2011, helps assure that California will meet the low-carbon fuel threshold requirements established by Governor Schwarzenegger.
