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California energy panel promises millions to ethanol firm founded by Schwarzenegger ally

Aug 27, 2010 9:48:00 PM - latimes.com
The money from a tax on car owners goes to a fund for clean-energy technologies. But backers say it was not to be used for corn ethanol, which they say harms the environment as much as oil.

California's energy commission has promised millions of dollars to a struggling corn ethanol business founded by a political ally — and generous campaign contributor — to Gov. Arnold Schwarzenegger despite public assurances that the commission's environmental funds would not be used to subsidize that technology.

USA, California: (Latest Stories)