FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN 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. 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)
(Last)
(First)
(Middle)
2365 CARILLON POINT		 3. Date of Earliest Transaction (Month/Day/Year)
05/01/2008
(Street)

KIRKLAND, WA 98033		 4. If Amendment, Date 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
(City)
(State)
(Zip)
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 05/01/2008   C(1)   2,000,000 A $ 8 2,202,524 D  
Common Stock 05/01/2008   S   700 D $ 3.44 2,201,824 D  
Common Stock 05/01/2008   S   100 D $ 3.41 2,201,724 D  
Common Stock 05/01/2008   S   200 D $ 3.4 2,201,524 D  
Common Stock 05/01/2008   S   300 D $ 3.39 2,201,224 D  
Common Stock 05/01/2008   S   400 D $ 3.38 2,200,824 D  
Common Stock 05/01/2008   S   300 D $ 3.37 2,200,524 D  
Common Stock 05/01/2008   S   2,400 D $ 3.36 2,198,124 D  
Common Stock 05/01/2008   S   200 D $ 3.35 2,197,924 D  
Common Stock 05/01/2008   S   1,700 D $ 3.34 2,196,224 D  
Common Stock 05/01/2008   S   7,202 D $ 3.33 2,189,022 D  
Common Stock 05/01/2008   S   500 D $ 3.325 2,188,522 D  
Common Stock 05/01/2008   S   798 D $ 3.32 2,187,724 D  
Common Stock 05/01/2008   S   104 D $ 3.315 2,187,620 D  
Common Stock 05/01/2008   S   13,060 D $ 3.31 2,174,560 D  
Common Stock 05/01/2008   S   200 D $ 3.305 2,174,360 D  
Common Stock 05/01/2008   S   23,901 D $ 3.3 2,150,459 D  
Common Stock 05/01/2008   S   400 D $ 3.295 2,150,059 D  
Common Stock 05/01/2008   S   31,867 D $ 3.29 2,118,192 D  
Common Stock 05/01/2008   S   26,008 D $ 3.28 2,092,184 D  
Common Stock 05/01/2008   S   15,213 D $ 3.27 2,076,971 D  
Common Stock 05/01/2008   S   700 D $ 3.26 2,076,271 D  
Common Stock 05/01/2008   S   100 D $ 3.255 2,076,171 D  
Common Stock 05/01/2008   S   6,000 D $ 3.25 2,070,171 D  
Common Stock 05/01/2008   S   100 D $ 3.245 2,070,071 D  
Common Stock 05/01/2008   S   3,647 D $ 3.24 2,066,424 D  
Common Stock 05/01/2008   S   1,100 D $ 3.23 2,065,324 D  
Common Stock 05/01/2008   S   100 D $ 3.225 2,065,224 D  
Common Stock 05/01/2008   S   1,700 D $ 3.22 2,063,524 D  
Common Stock 05/01/2008   S   6,600 D $ 3.21 2,056,924 D  

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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 Underlying Securities
(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 of Derivative Security: 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 05/01/2008   C(1)     1,000,000   (2)   (2) Common Stock 2,000,000 (1) 3,750,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
CASCADE INVESTMENT LLC
2365 CARILLON POINT
KIRKLAND, WA 98033		     X    
GATES WILLIAM H III
ONE MICROSOFT WAY
REDMOND, WA 98052		     X    

Signatures

 Cascade Investment, L.L.C. By: /s/ Michael Larson, Business Manager   05/05/2008
**Signature of Reporting Person Date
 William H. Gates III By: /s/ Michael Larson*, Attorney-In-Fact   05/05/2008
**Signature of Reporting Person Date

Explanation of Responses:

* 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).
(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 1, 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.

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