Meanwhile, the price of E85 continues to trail regular unleaded by only 30 cents per gallon, despite containing only 15% gasoline. Someone will make a killing off of cheaper ethanol production, but I doubt if motorists will see much of a price change.
E85 would have to be $1.00 per gallon cheaper than unleaded at this point, just to break even in cost per mile traveled.
The current cost of ethanol is quite a bit higher that what this company says it can be produced for. And to add to your point, if pollutants are measured per mile, then ethanol looks even worse.
The best idea is to open things up and let the free market decide which technology/fuel is the best. Instead we are stifling innovation through bureaucracy.