Thanks for correcting me Coug, I was on a roll when I through out E85 and that was wrong. Our fuel stations out here have green stickers on the telling you the percentage of ethanol in the fuel, They usually say: suitable for all diesel engines or not to exceed 15% or not to exceed 20%.
Also please note the pumps I was speaking of are the rotary style, they use the fuel as their sole source of lubrication. inline pumps have their own lubrication (engine oil) to lubricate them so seal swelling was their main problem.
Around here the stickers say things like B2, B5 or B20, or higher numbers up to B100, but that's the biodiesel blend not ethanol. Ethanol is strictly for gasoline in my area. Fortunately I can get ethanol free gasoline at a few local pumps because we're near the water and ethanol fuel sucks the moisture right out of the air. That causes a lot of issued in boat motors.
B2 gave the best lubricity, it dropped off after that. The higher the Biodiesel blend, the faster the fuel went bad or grew algae, but B100 is also a great solvent and will strip the paint off of a vehicle or tractor if you aren't careful with it.
I know cars like the VW TDI from 2009 onward don't work with anything over B5 because the emissions system Diesel particulate filter has to get burned out regularly, and they do that by injecting raw fuel into cylinders to go through the exhaust and heat up the DPF. Problem is the biodiesel is too good of a solvent and washes away the motor oil on the cylinder walls, can get past the rings and dilute the oil (which is pretty expensive at $50 for 5 quarts) and cause long term issues. Those are the warning stickers around here.
Seeing as you're from California though it doesn't surprise me that the pumps would be doing something to reduce one type of emissions at the expense of others. E-Diesel does seem to reduce particulate emissions, but increases other types of emissions.