For some reason, the EPA requires oxygenates in gasoline, presumably to lower emissions. There seem to be two choices, ethanol and MTBE. MTBE delivers better engine performance and does a nice job in preventing smog, but has a nasty habit of getting into ground water. Whether that is from tank leaks or is a tailpipe emission, I don't know.
Ethanol is safer for the environment, but it's a lousy fuel. Farmers love it, because it drives up the price of corn.
Two technologies were devised in the 1970's to reduce emissions: catalytic convertors and oxygenated gasoline. Used alone, either will significantly reduce emissions with minimal effect on fuel economy. Used together, however, the emissions reduction is little better than either alone, yet the reduction in fuel economy is greater than the sum of the two methods.
And, for engines manufactured since 1990, neither ethanol nor MTBE produce any measurable improvement in emissions.
They do, however, produce a.) a measurable increase in price (about $.15/gal) and b.) a measurable decrease in mpg (about 15%).
Truly, the federal government knows best...