SEC Form 4
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
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 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
CASCADE INVESTMENT LLC
(Last) (First) (Middle)
2365 CARILLON POINT
(Street)
KIRKLAND WA 98033
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
Pacific Ethanol, Inc. [ PEIX ] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
Director X 10% Owner
Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
05/29/2008
4. If Amendment, Date of Original Filed (Month/Day/Year)
 6. Individual or Joint/Group Filing (Check Applicable Line)
Form filed by One Reporting Person
X Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 05/29/2008 C(1) 2,000,000 A $8 2,975,224 D
Common Stock 05/29/2008 S 6,900 D $3.75 2,968,324 D
Common Stock 05/29/2008 S 1,100 D $3.74 2,967,224 D
Common Stock 05/29/2008 S 100 D $3.735 2,967,124 D
Common Stock 05/29/2008 S 2,750 D $3.73 2,964,374 D
Common Stock 05/29/2008 S 1,900 D $3.72 2,962,474 D
Common Stock 05/29/2008 S 27,350 D $3.71 2,935,124 D
Common Stock 05/29/2008 S 25,600 D $3.7 2,909,524 D
Common Stock 05/29/2008 S 300 D $3.695 2,909,224 D
Common Stock 05/29/2008 S 12,900 D $3.69 2,896,324 D
Common Stock 05/29/2008 S 10,250 D $3.68 2,886,074 D
Common Stock 05/29/2008 S 100 D $3.675 2,885,974 D
Common Stock 05/29/2008 S 24,370 D $3.67 2,861,604 D
Common Stock 05/29/2008 S 74,724 D $3.66 2,786,880 D
Common Stock 05/29/2008 S 200 D $3.655 2,786,680 D
Common Stock 05/29/2008 S 39,210 D $3.65 2,747,470 D
Common Stock 05/29/2008 S 46,480 D $3.64 2,700,990 D
Common Stock 05/29/2008 S 18,000 D $3.63 2,682,990 D
Common Stock 05/29/2008 S 9,100 D $3.615 2,673,890 D
Common Stock 05/29/2008 S 24,166 D $3.61 2,649,724 D
Common Stock 05/29/2008 S 100 D $3.605 2,649,624 D
Common Stock 05/29/2008 S 14,906 D $3.6 2,634,718 D
Common Stock 05/29/2008 S 100 D $3.595 2,634,618 D
Common Stock 05/29/2008 S 30,488 D $3.59 2,604,130 D
Common Stock 05/29/2008 S 200 D $3.585 2,603,930 D
Common Stock 05/29/2008 S 48,606 D $3.58 2,555,324 D
Common Stock 05/29/2008 S 8,500 D $3.57 2,546,824 D
Common Stock 05/29/2008 S 9,200 D $3.56 2,537,624 D
Common Stock 05/29/2008 S 23,140 D $3.55 2,514,484 D
Common Stock 05/29/2008 S 600 D $3.545 2,513,884 D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Series A Cumulative Redeemable Convertible Preferred Stock $8 05/29/2008 C(1) 1,000,000 (2) (2) Common Stock 2,000,000 (1) 2,750,000 D
1. Name and Address of Reporting Person*
CASCADE INVESTMENT LLC
(Last) (First) (Middle)
2365 CARILLON POINT
(Street)
KIRKLAND WA 98033
(City) (State) (Zip)
Relationship of Reporting Person(s) to Issuer
Director X 10% Owner
Officer (give title below) Other (specify below)
1. Name and Address of Reporting Person*
GATES WILLIAM H III
(Last) (First) (Middle)
ONE MICROSOFT WAY
(Street)
REDMOND WA 98052
(City) (State) (Zip)
Relationship of Reporting Person(s) to Issuer
Director X 10% Owner
Officer (give title below) Other (specify below)
Explanation of Responses:
1. Each Series A Cumulative Redeemable Convertible Preferred Stock ("Series A Preferred Stock") is convertible into two shares of Pacific Ethanol, Inc. ("Pacific Ethanol") common stock at a price per share of $8. On May 29, 2008, Cascade Investment, L.L.C. ("Cascade") converted 1,000,000 shares of Series A Preferred Stock at a conversion price of $8 a share, resulting in the issuance to Cascade of 2,000,000 shares of Pacific Ethanol common stock.
2. The Series A Preferred Stock is convertible at any time at Cascade's option and has no expiration date.
Remarks:
* Duly authorized under Special Power of Attorney appointing Michael Larson attorney-in-fact, dated February 3, 2006, by and on behalf of William H. Gates III, filed as Exhibit 99.1 to Cascade Investment, L.L.C.'s Amendment No. 2 to Schedule 13G with respect to Arch Capital Group Ltd. on March 7, 2006, SEC File No. 005-45257, and incorporated by reference herein.
Cascade Investment, L.L.C. By: /s/ Michael Larson, Business Manager 06/02/2008
William H. Gates III By: /s/ Michael Larson*, Attorney-In-Fact 06/02/2008
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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