First, small amounts of ethanol is now the oxygenate used in reformulated gasoline (RFG) to reduce pollution smog-forming and toxic air pollutants. MTBE (methyl tertiary butyl ether) has been ruled out since being detected in ground water. You probably are using ethanol if you add the contents of a can of 'octane booster.'
Next, there gasohol, a blend of 10-percent ethanol and 90- percent gasoline (E10), sold during the 1970's fuel shortages. E10 is back with states like Missouri, Minnesota, Montana, and Hawaii requiring its sale and others states planning to do so. The goal is the availability of at least E10 everywhere by 2010. There is move to increase this to E20 that contains 20-percent ethanol.
If you own an older vehicle, one built before the mid-1980s, you are more likely to experience problems with even small amounts of alcohol, even E10. A big problem is deterioration or swelling and hardening of rubber components like fuel hoses, carburetor seals and gaskets, and fuel pump seals. when in contact with ethanol. This may lead to fuel leaks. The solution is replacement of components with ethanol compatible ones. Trying to find and use non-ethanol fuel will be difficult.
Because ethanol absorbs water more readily, this can be especially troublesome with vehicles that sit idle for extended periods. It can cause rust in metal components such as fuel tanks. It can also cause pitting of metal parts. If you plan to store a vehicle, run the tank dry before storing.
While not usually a problem in vehicles, even low concentrations of ethanol can damage fiberglass fuel tanks such as used in boats. Ethanol dissolves the lining of fiberglass fuel tanks, often depositing a dark "sludge" inside marine engines causing costly damage. Eventually, fiberglass tanks dissolve until they fail, leaking fuel.
Finally, there is E85, 85-percent ethanol and 15-percent gasoline. Gasoline is needed in E85 to overcome starting problems because it is difficult to initiate combustion in pure ethanol especially in cold weather, meaning hard starts. E85 is used in Flexible Fuel Vehicles or FFVs that can operate on E85, gasoline, or any combination of the two.
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