It is soluble in water and is volatile, so it can be carried quite long distances.
Ethanol will oxidise quickly (less than a few days), with carbon dioxide and water as the final products. However, ethanol can act as a precursor, leading to the formation of photochemical smog. Water or snow can wash the ethanol out of the atmosphere, but due to its volatility, ethanol will quickly re-enter the vapour phase. Ethanol present in soil or water will decompose in the presence of oxygen. Ethanol is a good nutrient and energy source for microbes. In the absence of oxygen, this can lead to the formation of methane.
Source:
http://www.npi.gov.au/resource/ethanol-ethyl-alcohol