You can make your own ethanol at home, and it's legal. You simply need to get a "small fuel producer" permit from the US Alcohol and Tobacco Tax and Trade Bureau.
Permits are free, and entitle you to make up to 10,000 gallons of
ethanol fuel at home for personal use per year. For more information,
check out Journey to Forever.
You can make your own still or buy one. Here are a few places online that sell already-made stills: