Well its actually pretty simple to explain. Since the stoichiometric point for ehtanol is 9:1 instead of 14.7:1 as for gasoline, the air fuel mixture has to be changed for the % of ethanol present in the gas tank. In order to distinguish which gas is being used they added a composition sensor. So basically the sensor tells the computer what the stoichiometric pressure is and the sensor relays the message to the computer differentiating which fuel is being used.At that point the computer adjusts to the parimeters of the fuel and compensates.