The blue handle fuel nozzle IS for E85 (at Statoil gas stations anyway):
Statoil warns against using E85 on a regular car due to the issues associated with etanol on gaskets, fuel lines etc. SAAB used specific fuel system components on their E85 models.
In the US there has been 10% etanol added for a number of years, meaning that US cars might be more compatible with E85? On the other hand I doubt that BMW and other manufacturers choose different material for fuel components for the Euro vs US versions.
GM stopped using different materials in 2005 after no ill effects had been detected from E85.
Maybe the E85 "issues" is just a urban myth? Something for Mythbusters to investigate
