I'll look for the link in a bit, but I was under the impression that the manufacture and waste disposal of E85 made it no more environmentally friendly than standard petro (which still contains ethanol, just not as much). Since this is the drawing factor, that is "burns cleaner", are we really helping if the production is grossly less efficient? Even if it's cheaper?
Hmm, check out this link:
http://digg.com/environment/Why_Wal_...o_sell_ethanol
It has some info that I was trying to portray above...