Im pretty sure the engines and fuel systems are sealed up to resist the alcohol and then the ECM adjusts for the differences in fuel based on performance metrics. Edit: I stand corrected: there is also a specialized pass-though sensor in-line that detects alcohol percentage on the fly and adds the info into the tune.
This is similar to the basic knock sensors on all engines. If it senses knock, it changes the timing to counter it. If the O2 sensors detect that the mixture is running lean, it can command more fuel or alter the throttle position.
Any engine can be converted and tuned to run E85+ if you want, its just a matter of what you want to do and the parts you have installed. Usually folks going down that path are going for high performance and wind up putting larger injectors in the engine for example. There's no real benefit otherwise. E85 doesn't make the most sense a fuel overall. You burn away any cost savings due to the lower energy content.