It's a matter of supply. The sudden switch from MTBE to ethanol in California creates a huge demand that the market was not ready for. That's why Gray Davis delayed the switchover from its original date.
Now I may be wrong, but seems to me the corn growers knowing the Ethonol switch was coming have probably more than been prepared for the switch, lets face it Ethonol is a kick back to corn growers always has been. I can see some delays issues regarding getting the equipment all in place, but it is standard equipment, unlike MTBE where it was a new process, ethonol gas is established. SO I am just having a hard time buying that this should cause any sort of massive shortages. Of course this is Cali we are talking about... they can screw up anything out there.