You will need a lot of work on your car if your planning on running E85.
Ethanol biased fuels contain much more oxygen than petrol and burn "cleaner" emitting less CO2. But Ethanol is much less volatile than petrol and harder to ignite so your timing will need to be advanced by a considerable amount.
The injector's will need to be increased by a certain amount to add more fuel into the combustion chamber.
The reason Ethanol fuelled cars make more power is also due to the fact that ethanol contains more oxygen than petrol this means that you can cram more fuel in and thus make up for the reduced amount of energy per unit compared to petrol.
Other things to consider:
Ethanol is a very good cleanser and will wash all the carbon build up since you have been running petrol into your engine.
Ethanol can perish rubber and plastic parts such as certain lines in your engine.
Ethanol LOVES water it is impossible to separate all the water from ethanol fuels so a little will still remain in pump fuels. If you leave your car parked for a while there is a good chance you will get a layer of water in your fuel.
E85 cars do not like cold starts because ethanol will not vaporise easily.
Do some research on the internet and find out what others have had to do to run ethanol.
Im my opinion the B16B is a highly tuned engine Honda put a lot of development in designing an engine with maximum performance to be run on quality fuels you could find yourself in a world of pain if you start messing with alternative fuels.
Note: I am currently writing an essay for my uni course in chemistry on the use of ethanol as an alternative fuel so I have done a reasonable amount of research.