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The 33.4kWh / gallon of gasoline is a direct BTU equivalency. The X-Prize wants to measure the efficiency of the vehicle, so this is completely fair and accurate.
As far as emissions goes, if electricity has to include the source, generation, and grid losses, then the gasoline also must include the exploration, drilling, refinement, and transportation loses.
The 40gm/km source-to-wheel (including waste disposal, too!) vs the 450-500gm/km for gasoline is comparing apples-to-apples -- electricity has far lower emissions.
Additionally, you must include the oil used for lubrication (or maybe the above numbers already do?).
The best thing about EV's is they have the potential for getting cleaner and cleaner as they are used -- because electricity *can* come from renewable sources! Liquid fuels can too (biodiesel, etc.) and methane from biomass is also renewable -- but gasoline as we know it is finite.
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