Construction of the plant would occur in two phases. The first phase, located in Rialto, California, would consist of a manifold transfer system that starts receiving and offloading ethanol railcars in the fall of 2009. The second phase includes full unit train capability and ethanol storage, which would be located at an adjacent site in Colton, California, and is scheduled for completion in mid 2010.

The Phase 1 facility would have the capacity to handle current Colton area demand for ethanol, plus it required to meet the mandated increase to a 10% blend in gasoline in 2010.

Larry Padfield, vice president of US Development Group, said: “Demand for ethanol in southern California continues to grow in order to meet the requirements of the state’s biofuels mandates. Our new facility will help meet this growing need for ethanol by greatly enhancing the distribution capability of ethanol in the region.”

The West Colton Rail Terminal would be served by the Union Pacific Railroad and will be located less than a mile from gasoline blending terminals that serve the greater San Bernardino and Riverside County-Inland Empire region. The terminal would feature dedicated ethanol storage, 100 railcar high-speed offloading capability, and outbound truck and pipeline capabilities.