Ugh. A GM small block that is "flex-fuel" is not optimized for E85. What I mean is to take advantage of the Octane rating E85 has, the engine really needs a bump in compression. But since they wanted the engine to run any mix of ethanol up to 85% so they kept the compression down where it would be for gasoline only. What it equates to is you might feel a little bump in power, but it's going to use more fuel.
It's the stupid thing to have an engine to set up for both honestly. When ethanol has less power per gallon than straight gasoline you will end up using more of it. And the idiots in charge think by forcing us to E10-15 that it will reduce our dependency on foreign oil. No dipshits, we'll end up using more because of the dang corn fuel they keep forcing on us.
It's not to say E85 is bad. When used in a dedicated application it's awesome. The guy I helped run a car at a local oval track switched to E85 over the track standard race fuel and that engine picked up a lot of HP all the way through the curve. He swapped the carb out for one built to use E85 and the jetting was 15-20 numbers bigger than what we ran for race fuel. We even increased the size of the fuel lines to make sure we could keep the monster fed.
Getting back to the original question. Don't bother trying to tow with it. The cheaper cost of fuel per gallon gets lost in the fact you'll end up using more to go the same distance.