Lowering the compression wouldn't necessarily reduce air/fuel consumption because you aren't changing the stroke of the piston. You need approximately 40% more fuel to run E85 than gasoline. This means you would have to reduce the displacement of the engine or increase the amount of fuel by about that much. You could buy some 440cc injectors and throw them on there. And the car would run E85. But without a tune it would run on the rich side and it would be really rich on gasoline. You also need to keep in mind that the extra fuel means worse fuel economy. Generally E85 gets 20-25% worse mileage than gasoline. So unless you can get E85 for 25% less you will actually lose money. There are all kinds of advantages to running E85 on a boosted track car but for a daily driver it's just not practical. I use a moates 2-timer to switch between e85 and gas on my car. I'm getting about 33mpg highway on gas and around 25mpg highway on E85. If you do the math you'll find it's more expensive for me to drive around on E85. If you still want to run E85 you will need the following.
1. 440cc injectors
2. moates 2-timer or equivalent
3. a good tune for both fuels
4. possibly new fuel lines depending on the year of the car and condition of current lines.