Toyota did some pretty substantial-sounding testing in 2000, and CARB published it recently. They found the running E10 instead of MTBE as the oxygenate produced 5.5% higher levels of NOx out the tailpipe.
Although its well-known that evaporative emissions increase noticeably with ethanol, I was not aware of any studies showing an increase in NOx (smog precursors).
They mention that CO (also a smog precursor) output dropped 6%. So on balance using ethanol still lowers (barely) the total smog-making emissions. But that is not pointed out. And NOx primarily assists in ozone producton only in the presence of CO, so less CO still means less ozone.
http://www.greencarcongress.com/2006...s_e1.html#more
source doc:
http://www.arb.ca.gov/fuels/gasoline...yota_prstn.pdf