02/28/2007 GAAS:170:07 FOR IMMEDIATE RELEASE

Governor Schwarzenegger issued the following statement applauding the U.S. Department of Energy's decision to invest $385 million in federal funding to build the nation's first commercial-scale cellulosic ethanol plants.

Among the six grant recipients is Irvine-based BlueFire Ethanol, Inc., which will receive up to $40 million in capital costs to build a biorefinery to produce up to 19 million gallons of cellulosic ethanol from landfill waste.

"I am pleased the federal government awarded a grant to BlueFire Ethanol, Inc. to build California's first cellulosic ethanol plant. Utilizing landfill waste produces cellulosic ethanol in a clean and low carbon manner, which is important in our fight to decrease greenhouse gas emissions from transportation fuels. This plant is good news for the environment and also the economy since it will increase revenues and create new jobs in the community."

On January 27, 2007, Governor Schwarzenegger wrote a letter to Secretary Samuel W. Bodham in support of Bluefire Ethanol, Inc.'s grant application.

Governor Schwarzenegger has led the charge to make California a global leader in alternative fuel research and development. California recently won a $500 million grant from BP to the University of California to establish the Energy Biosciences Institute (EBI). As part of the Governor's Research and Innovation Initiative, he included $40 million in lease revenue bonds for the EBI in his 2007-08 budget, demonstrating California's commitment to keeping the University of California system at the forefront of research and innovation. The Initiative also includes $30 million for the University of California's Helios Project, which will produce the next generation of super-efficient solar energy technology. In January 2007, Governor Schwarzenegger signed an Executive Order establishing a groundbreaking Low Carbon Fuel Standard (LCFS) for transportation fuels sold in California. By 2020 the standard will reduce the carbon intensity of California's passenger vehicle fuels by at least 10 percent. This first-of-its kind standard will support AB 32 emissions targets as part of California's overall strategy to fight global warming and spur research and investment in alternative fuels.