In the catagory of more than you needed (wanted?) to know... At least part of the economic issue is that due to Cali's environmental laws, higher oxygenate content is required to reduce smog etc. For years the industry standard has been methyl-t-butyl-ether (MTBE) but this compound is extremely stable and migrates to the water table where it lurks for decades. It is classified as a CNS toxin and animal carcinogen - not something you want in your ice tea... so a less toxic oxygenated compound was substituted, namely ethanol. (Many people feel more ethanol in their water is better...) It is a good choice too because it is higher octane than "octane", although it actually has a lower energy content (because it is already partially oxidized). The economics of ethanol production for fuel are complicated and depend upon such things as the carbohydrate chosen for fermentation and processing efficiency. Suffice it to say if it were really cheaper that petroleum fuel we'd all be driving ethanol fueled vehicles.
