SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

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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1. Name and Address of Reporting Person^*

CASCADE INVESTMENT LLC

(Last)

(First)

(Middle)

2365 CARILLON POINT

(Street)

KIRKLAND

98033

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
04/13/2006

3. Issuer Name and Ticker or Trading Symbol
Pacific Ethanol, Inc. [ PEIX ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director	X	10% Owner
Officer (give title below)		Other (specify below)

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Series A Cumulative Redeemable Convertible Preferred Stock	⁽¹⁾	⁽¹⁾	Common Stock	10,500,000⁽¹⁾	⁽¹⁾	D

Explanation of Responses:

1. See Below

Remarks:

(1) On April 13, 2006, Cascade Investment, L.L.C. ("Cascade") acquired 5,250,000 shares of the issuer's Series A Cumulative Redeemable Convertible Preferred Stock ("Series A Preferred Stock") at a price of $16.00 per share. Each share of Series A Preferred Stock is convertible at any time at Cascade's option into a number of fully paid and nonassessable shares of the issuer's Common Stock equal to the quotient of (x) $16.00 divided by (y) the conversion price in effect at the time of conversion. The conversion price is currently $8.00 and is subject to anti-dilution protection and other adjustments as set forth in the Certificate of Designations, Powers, Preferences and Rights of the Series A Preferred Stock (the "Certificate of Designations"). Using the current conversion price, Cascade's 5,250,000 shares of Series A Preferred Stock are convertible into 10,500,000 shares of the issuer's Common Stock. Cascade's right to convert the Series A Preferred Stock does not expire. In addition to Cascade's right to convert, the Series A Preferred Stock shall, upon the occurrence of certain events, be automatically converted into Common Stock pursuant to the terms of the Certificate of Designations. *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.

	William H. Gates III By: /s/ Michael Larson*, Attorney-In-Fact	04/20/2006
	** 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 5 (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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