GM claims to have 2.5 million flex fuel vehicles (those than can be fueled with up to 85 percent ethanol) on the road, but only a fraction of vehicles owners have ever put anything but gasoline in their tanks. The availability ethanol fuel pumps has hindered the fuel's acceptance as so far only approximately 2,000 of the 185,000 fueling stations offer e85, according to GM Exec Director of Environment and Energy Alan Weverstad.

The first e85 pump in Los Angeles is opening, and to celebrate GM and station Conserv Fuel (11699 San Vicente Blvd. in Brentwood) will offer the fuel for just 85 cents per gallon on Tuesday, February 26 between noon and 2 pm. Like everything LA I'm guessing there will be a line, but no velvet rope.

GM will also provide flex fuel vehicles running on ethanol to celebs at Sunday's Oscars.

To get ethanol more efficiently from the source material to drivers, two investment companies are considering building a $3 billion pipeline from the Midwest to the Northeast.

Magellan Midstream Partners and Buckeye Partners say the pipeline would deliver ethanol from Iowa, Illinois, Minnesota and South Dakota to major markets in Pennsylvania and the New York. A feasibility study is expected to be finished by the end of the year.

Ethanol would be less expensive if it could be delivered via pipeline because of the higher costs of truck and rail delivery. Ethanol can't be delivered via existing gasoline pipelines because of its corrosive properties.

Fuel (like energy from wind or solar) could become somewhat geography-specific as making the most of what's close by will keep prices down and be more energy efficient.