[Ernest_at_the_Beach]

Less ethanol can be used than MTBE to meet state blending requirements. Each gallon of ethanol-based gasoline will contain about 6 percent ethanol, compared with 11 percent MTBE per gallon. Since less ethanol can be added to gasoline, the total volume of finished gasoline produced in the state will be reduced by about 5 percent. To keep pace with demand, California will have to import 3 percent to 5 percent more gasoline, said industry expert Phillip Verleger.

I think the problem is the additional gasoline and the current in state refineries being maxed out , Of course the environmentalists will not let a new refinery to be built!

[Dog Gone]

Of course the environmentalists will not let a new refinery to be built!

There is some good news in that regard. While your statement is undoubtedly true, the EPA has given the current refiners some flexibility in modifying their plants which will result in greater capacity. It's still going to require more imported oil to make the gasoline, though.