As far as I could tell, the whole ethanol thing started with a bunch of scam artists (several of them went to jail, but most escaped with the money and no jail time).
It's pretty similar to the CNG hoax foisted on the public. ADOT put in a pumping station and converted quite a few vehicles. The engines ran poorly, had the nasty habit of dying in the middle of the intersection when taking off after a red light - and the darn vehicles couldn't be made to pass emissions tests!!
When politics takes over, common sense and the laws of physics go out the window.
Whenever I am in a state with high ethanol content, my mileage takes a serious dip.
We need something better than ethanol.