Makes sense to me. I leave near a marine terminal and I've been aware of the bulk ethanol deliveries by barge for two years or so. It's stored at the terminal and blended with RFG as it's loaded into the tanker trucks. I read my first story of an ethanol spill from a barge into the bay last week (different marine terminal but within a few miles of me).

From Newsday on 12/08/06:
OYSTER BAY

Crack leads to ethanol spill during transfer

About 3,500 gallons of ethanol spilled into Oyster Bay early yesterday as it was being transferred to a vessel at the Commander Oil facility, Coast Guard and state environmental officials said.

The spill happened at a platform about 100 yards from shore, said Bill Fonda, a regional spokesman for the state Department of Environmental Conservation.

A thread in the piping system connecting the platform with the motor tanker John B. Caddell apparently developed a crack during the ethanol transfer, causing the fuel to spill into the bay, Fonda and Coast Guard Lt. Kris Tsairis said.

Most of the ethanol quickly evaporated, leaving few traces for Coast Guard and DEC teams posted to the cleanup, officials said. "It's almost like rubbing alcohol," Tsairis said. "As soon as it hits the air, it almost starts evaporating. Even our boats, which transited the entire bay, couldn't smell anything. That's a good sign."

The Coast Guard is investigating, Tsairis said.

Most of the ethanol quickly evaporated, leaving few traces for Coast Guard and DEC teams posted to the cleanup, officials said. "It's almost like rubbing alcohol," Tsairis said. "As soon as it hits the air, it almost starts evaporating. Even our boats, which transited the entire bay, couldn't smell anything. That's a good sign."

I had to laugh at this, last time i checked (about a minute ago) EtOH isnt overly volatile, and it is miscible with water. If that ethanol wound up in the bay, it didnt evaporate, it dissolved with the water (its why reason ethanol isnt blended in immediately, as mentioned above). Its good to see the coast guard know all about ethanol. Mind you, it probably dispersed very quickly, though there's a chance some fish got a bit drunk that day.

sorry to be pedantic but this is wrong I believe:

It's stored at the terminal and blended with RFG as it's loaded into the tanker trucks

If I understand the terminology,  Ethanol is blended with RBOB to make RFG.  

Not pedantic at all. Thanks for correcting my error.