There's a glut of ethanol on the market, and the solutions to consume it are not easy. The maximum blend in gasoline is 10% before it affects the catalytic converter, and E85 can't compete with the more efficient, though more expensive, gasoline.
"When Congress wrote the rules (increasing usage of ethanol) in 2007, gasoline consumption had been growing for years.
Gasoline consumption hit a peak of 3.4 billion barrels that year and then fell to 3.3 billion barrels last year, and it could end 2009 at about the same level."
It's clear that it will be very difficult, if not impossible to reach the mandate of 15 billion gallons of biofuels by 2012, or 36 billion gallons in 2022, up from less than seven billion gallons in 2007.
"As of yet, not all gasoline is blended with 10 percent ethanol, but that saturation point is rapidly approaching.
As for E85, the problem is that at current prices, it does not make economic sense for drivers, and most of them use regular gasoline in their flex-fuel cars.
Gasoline was selling on average Thursday (11/26) for $2.63 a gallon, while E85 was selling for $2.23 a gallon. That might make E85 sound like a bargain, but cars go fewer miles on a gallon of ethanol than of gasoline. Adjusted for that factor, E85 on Thursday was effectively 31 cents a gallon more expensive than gasoline.
A return of $4 gasoline might change things, by making E85 a relative bargain and spurring wider use. So would an unexpected spurt in total fuel demand. Otherwise, it is not at all clear how the nation's coming surplus of ethanol can be absorbed."
Contributor's comment: Another solution would be for Congress to add a 'fossil fuel fee per gallon' so that E85 becomes more competitive with gasoline.
FULL STORY: U.S. Unlikely to Use the Ethanol Congress Ordered

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Chicago’s Ghost Rails
Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

Amtrak Cutting Jobs, Funding to High-Speed Rail
The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

Ohio Forces Data Centers to Prepay for Power
Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

MARTA CEO Steps Down Amid Citizenship Concerns
MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant
A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Caltrans
City of Fort Worth
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie