THE ethanol company once derided for topping up the coffers of the Coalition donated more than $300,000 to the Labor Party before the Rees Government mandated that 10 per cent of the petrol sold in NSW must contain ethanol by 2011.

The Australian Electoral Commission returns reveal that Manildra, the biggest manufacturer of ethanol in Australia, gave more than $95,000 to NSW Labor in 2007-08 before the Government decided to triple the first legislated mandate for ethanol in petrol.

The Iemma government had already promised during the 2007 election campaign it would mandate that 10 per cent of petrol in NSW would contain ethanol by 2011, but after a fiery cabinet meeting late last year, the Rees Government went further.

It decided that 4 per cent of unleaded petrol sold in NSW from this year would have to be E10 petrol, with that figure rising to 6 per cent in 2010. In 2011, regular unleaded would no longer be able to be sold and would be replaced everywhere with E10, giving motorists only the choice of E10 and premium unleaded.

The NSW Planning Minister, Kristina Keneally, is expected to approve a $400-million expansion of Manildra's Nowra plant.

The commission's annual returns also show that Clubs NSW increased its donations to NSW Labor from $86,500 in 2006-07 to $104,200 in last year - its highest donation to the branch.

But donations from one the party's biggest supporters, the Australian Hotels Association, have dropped.

The NSW branch of the AHA gave NSW Labor $189,999 in 2006-07 but that dropped to $61,000 in 2007-08.

The AHA is in a bitter battle over new liquor laws, which has enforced tough measures on some 24-hour pubs.