This is one of the dumbest ideas ever. Ethanol is already an incredibly inefficient process that takes more energy to make than you get out of it. Corn was bad enough, but at least it was renewable (in a sense). So now they turn to peat to supply the alcohols that they'll mix with gasoline. Michigan already has one of the fastest dwindling peat reserves in the united states. If they determine this to be "Environmentally sustainable" there'll be no carnivorous plants left by 2012.
Yes, the article is a few years old, but I know they're still doing research.