"We have recently seen several issues of concern that appear to be related to gasoline containing Ethanol (Gasohol).
Blends above 10% are likely to cause problems in vehicles not designed for alcohol. These problems include delamination (chemical breakdown) of rubber, plastic, and synthetic components such as; rubber, plastic, and synthetic hoses, fuel lines, plastic fuel pumps, plastic fuel tanks, fiberglass fuel tanks, fuel tanks that are epoxy coated, or with rubberized, or plasticized liners, and aluminum, copper, brass, or bronze fuel system and injection system components.
Vehicles stored with gasoline containing Ethanol in the fuel tank are more likely to have problems with the alcohol causing component corrosion, deterioration, and breakdown.
Special plastics, corrosion resistant stainless steel and other more expensive components must be used in any component that touches fuel containing alcohol.
Ethanol is much more hygroscopic than regular gasoline. This holding of dissolved or suspended water can lead to more component corrosion; and gum, varnish, and carbon deposit formation problems.
Ethanol is not as volatile as gasoline, therefore as the percentage of alcohol increases; the engine becomes progressively more difficult to start in cold weather conditions.
Ethanol is a strong solvent and has been used by industry for hundreds of years to clean various types of contaminants and to dissolve and suspend solids.
Gasoline with dissolved solids (plastics, styrene?s, rubber materials, etc.) that will tend to reform as the fuel evaporates. The reforming of the dissolved material shows up as deposits in the fuel system and engine. This material has shown up as deposits on the throttle plate, injector?s piston crowns, and exhaust valves. It is also a problem with PCV?s systems and turbochargers."
In some cases, particularly in the marine markets, gasoline containing Ethanol has been found to saturate and partially dissolve fiberglass fuel tanks. This has been found to cause severe engine problems and very serious safety concerns from leakage.
There is also a problem where Gasoline, MTBE, Ethanol, and Water come together. This combination can cause formations of a thick, gooey, black material that wreaks havoc on fuel systems.
http://www.enertechlabs.com/ethanol_in_gasoline.htm