E85 fuel is 85% ethanol.
Ethanol fuel has a net energy yield of about 1.2 (It takes about 1 BTU of petroleum energy to produce 1.2 BTU of ethanol energy).
That 1 BTU of energy comes from fossil fuels (Petroleum and natural gas).
Even Alberta tar sands yield about 3 BTUs of energy for each BTU of energy used to produce it.
Corn ethanol is heavily subsidized by taxpayers ($3 billion in tax credits in 2007 (76% of renewable fuels subsidies in 2007, possible growing to $5 billion in 2010, while solar, wind and geothermal received only 5% of the total).
Corn requires a lot of water, and is grown in a region with a declining aquifer.
Most corn now produced is a GMO that uses a lot of pesticide (e.g. "Roundup Ready" corn).
http://www.greentechmedia.com/articles/read/corn-ethanols-subsidy-glut-5489/