http://www.usatoday.com/tech/news/2006-03-12-ethanol-boom_x.htm?POE=TECISVA"The nation's growing thirst for ethanol is leading to a miniboom in plant construction — even far from the Corn Belt, which has been home to most production."
" Thirty-three ethanol plants are under construction, and another eight of the 95 plants in operation are being expanded, the Renewable Fuels Association reports. ""Builders say they have more work than they can handle. Ethanol plant construction firm Fagen in Granite Falls, Minn., is maxxed out through 2008. "We're turning down work every day," President Ron Fagen says."
" ...some plants are planned outside the Corn Belt. In the West:
•California. Pacific Ethanol is building a $50 million plant in California's central valley, due to open later this year. The plant will use corn shipped in by rail and
produce cattle feed as a byproduct. The plant is close to one of the nation's largest dairy herds. "
They can produce cattle feed supplement because you don't use the protein content of the corn for the ethanol. Thus, ethanol production does not compete with food production.