California Fuel Update

The California Air

Resources Board recently acted to require labeling on gasoline pumps that contain MTBE. The provision, which was incl uded in Governor Davis' Executive Order phasing out the use of MTBE in California, will go into effect this fall. The label states, "Contains MTBE; the State of California has de termined that the use of this chemical presents a significant risk to the environment." Similar labels in other states have prompted consumers to demand MTBE-free gas and has led to the introduction of ethanol-blended fuels.

Legislation that establishes a phase-out schedule for MTBE has been approved unanimously by the Assembly Transportation Committee. SB 192, introduced by California Senator Don Perata, prohibits the sale of gasoline containing more than 11 percent by volume MTBE immediately. It requires gasoline refiners, blenders and importers producing gasoline for sale in California to reduce the total amount of MTBE used in its annual production of gasoline by at least one-third of the amount used in 1999 by December 31, 2000. By December 31, 2001, the amount of MTBE used in 1999 must be reduced by two-thirds. Similar to the Executive Order, the bill prohibits the sale of gasoline containing any MTBE after January 1, 2003.

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