As boaters, ethanol presents unique problems for us. I would strongly recommend (along with all boat mfrs.) that you avoid ethanol (E-10) for marine use if you can.
First, you need to see if you live in an EPA mandated RFG area. (RFG = reformulated gas = ethanol = E-10.... different ways to say the same thing.) Here is the EPA map:
http://www.epa.gov/otaq/rfg/whereyoulive.htm In these areas you are stuck with E-10. I live in one of these areas, but I can drive to a nearby county to get good ol' old-fashioned gas without E-10. As you'll see on the map, it's not a short drive for some to get RFG-free gas, however.
As tuneman points out, it really is a political thing. Most people in the U.S. think that burning corn alcohol is good since it reduces foreign oil imports and helps our farmers. Politicians quickly latch on to E-10 as a great energy policy solution since it is easy to explain and seems like a win for most people (except boaters). As a result, E-10 is spreading quickly beyond the EPA mandated RFG areas.
If fact, even if you live in a non-RFG area, you still need to be careful. Federal law requires gas stations to post whether they have E-10 in their pumps. Always look at the pump before you gas up. If you see an E-10 label in a non-RFG area, move on to another gas station. Often you may find "good gas" at a station across the street.
So what's the big deal about E-10 for boaters? As the use of E-10 spreads more and more problems are being reported with boat engines, fuel lines, gas tanks and more. Unlike cars, a boat's fuel system is not airtight. So, ethanol interacts with a boat's gas system in a different manner than in an auto.
Here are a couple of news articles about the problems:
"Ethanol may Leave Boaters High and Dry," Milwaukee Journal Sentinel, Aug. 28 '06:
http://www.jsonline.com/story/index.aspx?id=488180&format=print "Tanks for Nothing," U.S. Boat Magazine, Sept. '06:
http://www.epicmarine.com/docs/Ethanol.pdf There is a lot of coverage on ethanol in ski boats on the Toyota Marine web site:
http://www.epicmarine.com/forum4/index.php?topic=947.0 The bottom line.... E-10 is nasty stuff to many boats. Since E-10 is a political issue, your voice needs to be heard. One idea floating in Washington is to grant an E-10 exemption for marine use. (See the U.S. Boat article and you'll see how a U.S. Congressman's boat engine was ruined by E-10.... so there is an awareness in DC to this issue.) As with any issue, your voice needs to be heard. Write a letter to your congressmen letting them know that boats are hurt by E-10 and you need relief. Also be aware that E-10 use is a state issue in many states as well. You may need to follow developments in your own state and write letters locally, too.