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, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  CASCADE INVESTMENT LLC
 2. Date of Event Requiring Statement (Month/Day/Year)
04/13/2006		 3. Issuer Name and Ticker or Trading Symbol
Pacific Ethanol, Inc. [PEIX]
(Last)
(First)
(Middle)
2365 CARILLON POINT		 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 Original Filed(Month/Day/Year)
(Street)

KIRKLAND, WA 98033		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
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)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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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 of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Series A Cumulative Redeemable Convertible Preferred Stock   (1)   (1) Common Stock 10,500,000 (1) $ (1) D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
CASCADE INVESTMENT LLC
2365 CARILLON POINT
KIRKLAND, WA 98033		     X    

Signatures

William H. Gates III By: /s/ Michael Larson*, Attorney-In-Fact 04/20/2006
**Signature of Reporting Person Date

Explanation of Responses:

* 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).
(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.

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