This is in the news recently - and for one thing it indicates how confusing some of the terminology can be. Even EPA apparently is using "hydrous ethanol" in a limited an inaccurate way, but at least they are funding some of the R&D.
http://www.greencarcongress.com/2009/02/epa-approves-on.html To his credit, especially in a petrochemical-dominated state - Louisiana Governor Bobby Jindal signed into law the Advanced Biofuel Industry Development Initiative (Act 382) to develop an advanced biofuel industry in the state. The law calls for a hydrous ethanol testing program.

