shakran

Well GM might make a killing, and BP might make a killing, and the corn farmers in the midwest would almost certainly make a killing, but the price of gas would skyrocket.

That's because now you'd have regular, midgrade, premium, E85, and now we're adding E70. Some of the gas that used to be in the regular, midgrade, and premium pumps is now going to be diverted to the E70 pumps. You're cutting the supply of gas. You still have to maintain a large supply of actual gasoline because you're not going to get all the people with 3 or more year old cars to convert. And since we're not increasing the gas supply, but we are increasing demand on that gas into yet another boutique fuel, we're making the price of that gas raise.

That added to the fact that high-ethanol gas has to be stored in special tanks, pumped with special pumps, and all sorts of special infrastructure has to be added at the refinery. The cost to do that will NOT be absorbed by the fuel industry, but by the fuel industry's customers. AKA the price rises even more.

We've already seen this happen with E85 (which BTW GM already makes vehicles that run on it, so they're already set to make the killing you talked about, just with a higher concentration of ethanol) - ethanol is causing gas prices to rise, not decrease.