Lazs, I figured you'd be more up in arms over the MTBE fiasco. The EPA caused more contamination and has done more long term damage to the environment than the reactor accident at TMI by forcing the use of MTBE in gasoline.
There are a lot of people you can point a finger at for that one, from EPA to the ethanol mfgs to the oil industry.
In a nutshell, the oil industry asked to be allowed to meet a goal using it's own solutions but ended up being told HOW to meet the goal. The ethanol industry pushed and won an "oxygenate" mandate from EPA (with the assumption that ethanol would be a primary oxygenate). Oxygenates were a solution to a problem that was largely disappearing through the use of oxygen sensors in cars. It is useful, however, in limited CO non-attainment areas ("wintertime" reformulated gasolines).
However, ethanol is very hard to work with since you can't ship it blended (or alone) in standard pipelines. The oil industry promoted MTBE as an effective alternative. However, if given the choice they could have met the ozone/smog standards without an oxygenate. Now, there are problems with MTBE (though the extent beyond taste and odor have not been established).
About par for the course where Washington is concerned. Since the marginal to negative clean air benefits of oxygenates are getting established and publicly understood , the ethanol lobby is now pushing the "foreign oil" angle, which aslo has a hard time adding up.
Charon