The amendment introduced at the start of the mark-up by Chairman Smith mirrored many of the principles set forth in a July 19 letter to the Chairman from the Governors' Ethanol Coalition and Northeast States for Coordinated Air Use Management, together representing 32 governors.

"We are committed to maintaining the air quality benefits of the reformulated gasoline program while protecting the citizens of our states from further drinking water contamination cause by the continued use of MTBE in gasoline and from unwarranted hikes in gasoline prices," said the letter, signed by Governors Tom Vilsack of Iowa and Mike Johanns of Nebraska on behalf of the Governors' Ethanol Coalition. Also signing the letter were Governors George Pataki of New York and Jeanne Shaheen of New Hampshire on behalf of the Northeast States for Coordinated Air Use Management.

"While our states are not in agreement on the efficacy of the oxygenate requirement, we all agree that the consequence of inaction on MTBE this year is unacceptable," they said. "Thus in the spirit of cooperation we have come together in support of the following principles for legislative action:

• MTBE must be phased out nationally as expeditiously as possible, but no longer than four years; states should be provided financial assistance in dealing with MTBE clean-up; and the Environmental Protection Agency will work to insure that consumers are provided information about the characteristics and health affects of gasoline constituents and additives;
• In order to provide states and refiners with increased flexibility in meeting reformulated gasoline standards, the oxygen content requirement may be waived at the request of a governor. Recognizing the attendant public policy goals of the Clean Air Act's oxygen requirement (e.g. national security, rural economic stimulus, competition, global warming), Congress must adopt a competitive Clean Alternative Fuels Program that will allow steady expansion of domestically-produced renewable fuels such as ethanol, including provisions which would promote new biomass production; and
• The air quality and public health benefits of reformulated gasoline and the oxygenate standard should be preserved, including a cap to prevent any increase in the use of aromatics in reformulated gasoline. Toward this end, the Environmental Protection Agency must be required to perform comprehensive testing of gasoline components and renewable fuels to ensure that the full environmental attributes of all fuel constituents are understood and credited.

"We all agree that MTBE must be removed from gasoline. We believe these legislative principles provide a framework that will allow refiners to move quickly away from MTBE, while preserving the air quality, energy security and economic goals of the 1990 Clean Air Act Amendments. By adding flexibility to the oxygen requirement in the reformulated gasoline program, while phasing out MTBE, we will ensure that public health is protected while at the same time supporting efforts to lower gasoline prices nationally," the letter concludes.

The letter can be viewed on the Coalition's web site at: www.ethanol-gec.org/smithletter.pdf