Sources: AAA, The Detroit News
quote: To partially address your third statement, all cars are equipped with computers today. Those cars can be calibrated to deal with the higher level of ethanol by richening the air/fuel ratio. Easy peasy.
quote: For those few still running carburetors, they can simply re-jet their carbs to handle the ethanol. Again, tot a huge deal.
quote: The only thing damaging about ethanol is running it at the wrong air/fuel mixture. Richen your air/fuel ratio from 15-1 to say, 13-1 and your engine will be just fine.
quote: While I agree somewhat with your third statement, I challenge you to come up with a better solution than 1 & 2 for renewable-source fuels.