Actually, they tried an alternative fuel (CNG and/or LNG) and it didn't work out too well. Several buses (U-district routes, in particular) were using it, and the conclusion at that time (several years ago, before the big jump in price) was that when everything was added together it was significantly more expensive than diesel, and with the arrival of some of the very clean burning diesel engines, the environmental advantage wasn't that much either.

As for E85, transportation should be one big issue, tax is probably the other one. I'm almost certain that the govt is losing money on E85, and with no corn growers' lobby or major ethanol plant nearby, there's not much reason to have it here. Pissing up someone just for the sake of it is often silly, especially when *you* have to pay for it. And BTW, WA doesn't have income tax, and I consider that quite conservative financially. (and good ) Lastly, they have their hands full with other things, so they could care less about Seattle having E85 or not.