Apparently you didn't actually read my post so let me correct you on a few items...
First, I did make the comment about corn state folks over doing the value of ethanol -- it's right in my post if you'd bothered to read it. And yes, you can bet money is part of the equation as farmers have a surprising amount of clout.
Second, yep, ethanol pulls water as it's a getter, but the upside in that by doing so it makes sure there is none in your cars tank. And yes, it can pull moisture from the air, but in the cars tank you do NOT have air circulating in a way that brings tons of water in -- tanks are EQUALIZED but the air in the tank is not circulated from the outside so the net inflow of water, even in VERY humid areas is actually quite limited. That large storage tanks may have some issues is not terribly surprising as they aren't going to spend a penny keeping moisture out and would rather complain about getting water in the tanks. Why spend money using dry nitrogen when you can just bitch about them corn folk forcing this on ya?
Older vehicles may well have some problems with corrosion and I guess if you're still running carbs your best bet would be to get E0 gas and you can generally find that if you look. Are you saying E0 gas isn't available in Texas? There were similar problems associated with the switch from leaded fuels to unleaded fuels as I'm sure you remember...
In summary: E10 provides MORE power but less mileage, burns cleaner with fewer emissions, raises octane permitting the use of lower spec gasoline, is a renewable fuel source, and yes, it does provide additional jobs in the corn belt.
Brian
No, I did read your post... and you are contradicting yourself. Ethanol has less energy potential than gasoline... there is no way E10 can provide MORE power (given the same volume of fuel in each instance.) You have to use more E10 fuel to equal the same energy output as straight gasoline.
It does burn cleaner in some circumstances (given the same volume of fuel in each instance,) but requires, again... more E10 to equal the same energy output as straight gasoline. Furthermore, as ethanol absorbs water, it quickly breaks down and delivers lower octane numbers (and the aforementioned phase separation if it continues) and there are other instances where it can produce higher emissions.
Just FYI... gasoline and ethanol are mixed as they are loaded on the transport truck. Ethanol is stored separately, for obvious reasons. I'm not familiar with storage requirements, but I'm sure there are some steps taken to keep water contamination from occurring prior to loading to final delivery. Water will readily separate from fuel in storage and is not an issue.
Retail storage. It would be absurdly unworkable to build and maintain a closed-loop in-ground storage system. As the fuel is pumped out, some amount of vapor is returned to the storage tank (from the vehicle being fueled) but differences in temperatures, poor maintenance, and even just water setting in the parking lot over the fills allows moisture to enter the storage tanks... it is, quite literally, impossible to keep water from entering the retail storage tanks... and this is the most critical point.... before it is pumped into a vehicle. With normal gas, water will settle out to the bottom of the tank; with ethanol, it is absorbed and delivered to the consumer.
Although I see non-E fuel for sale in OK and AR, I can't find it here in TX; I live in one of the emission control areas of TX, before the days of E10, we had 'reformulated' gasoline (vs 'conventional' fuel sold outside the 'VOC' areas of Dallas, Houston, and other munis) and, further, winter and summer blends. Reformulated fuel (RFG) produced less fuel economy, winter blend even more so, and now we have E10... which, again, decreases fuel economy. It may be available out in Nowheresville, but I don't regularly venture there, and as the storage facilities are forced to supply a larger and larger VOC restrictive area, they are simply phasing out conventional gas storage in favor of straight up RFG and ethanol.
My point is, and this is just my .02 worth based on my experiences, both professionally and personally, ethanol fuel is just bad, bad, bad. It adds additional costs to the whole fuel delivery and storage processes, can produce substandard performance vs straight gasoline, increases maintenance problems vs straight gasoline, for what I see is very little benefit.... and every bit of that cost is passed on to the consumer.
EDIT: And, I forgot the biggest problem... ethanol can't be pipelined... it must be trucked, 9000 gallons at a time, from the source to the storage terminal. How much fuel do you suppose it takes to truck in all that ethanol? OTR trucks get around 5-6MPG. Factor in all the wear and tear on the trucks, the cost of maintenance, the wear on the roads, etc...
I'll have to do some research... I'm curious to see what the numbers are of just straight-up conventional gas vs full-on RFG E10... in the end, I'll bet it's a wash.