In a sane universe, consumer advocates would be fighting against this.
Picture an America in some parallel universe: The oil industry announces that it is mixing 10% or more of Ethanol into the gasoline supply. Immediately, America's already most hated industry is attacked from all quarters for literally attempting to water down American's fuel to rip off consumers. Ralph Nader would be filing class action lawsuits on behalf of all consumers for the losses in lower mileage and damage to automobile and other gasoline engines, and Al Gore would go on a rampage about the increased net carbon footprint and other environmental damage because of the resource intensive nature of producing Ethanol. The EPA would move to ban it because it increases air pollution. There'd be food riots in the 3rd world, because of the diversion of food crops to produce Ethanol, and vast amounts of rain forest would be cut down for crop land needed to make up the difference.
Oh wait. The last part actually did happen in our universe too.
At least the America in that universe retains some degree of sanity. Ours clearly does not. Ethanol is a complete scam. The idea that ethanol is low carbon is a flat-out lie, especially considering that it takes a gallon of oil-based products (gasoline, diesel, and fertilizer) to produce a gallon of Ethanol, which actually has lower heat content than the fuel it's replacing. Getting lower mileage these days? That's probably why. Never mind the damage that may be happening to your engine. But now that the US government is also an automaker, they're okay with the idea that your older car is going to die a premature death. Just consider it your sacrifice for keeping the UAW in business.
