Responding to member requests to address national concerns about MTBE water contamination and the reformulated gasoline program, the House Commerce Subcommittee on Health and Environment held a hearing March 2 to discuss MTBE and implications for the reformulated gasoline oxygenate requirement. The consensus from the hearing is that a national solution is essential; H.R. 11 - which eliminates oxygenate use in California only - or other state-specific bills have little support; MTBE must come out of gasoline; and anti-backsliding language is absolutely necessary.

Iowa Congressman Greg Ganske

Iowa Congressman Greg Ganske, a member of the committee, expressed strong support for ethanol's role in the program, stating, "reformulated gasoline does not contaminate water; it cleans the air. If you want clean air, use oxygenated gasoline. If you want clean water, ban MTBE. We don't have to choose between clean air clean water. If we switch from MTBE to ethanol, we can have both."

The committee heard testimony from three members: Bob Franks of New Jersey, Ray LaHood of Illinois and Michael Forbes of New York. Representative Franks testified in support of legislation he has introduced, H.R. 1367, which bans MTBE nationwide after three years, and H.R. 3536, which requires a number of health and environmental studies of MTBE to be completed by EPA.

While vocalizing his support for maintaining the oxygen requirement in reformulated gasoline, Representative LaHood focused his comments on the need for action to allow "greater integration of ethanol into the reformulated gasoline program." Specifically, he urged EPA to act quickly to establish a carbon monoxide credit for ethanol that would enable refiners to utilize ethanol more cost-effectively in Phase 2 reformulated gasoline.

Representative Forbes, speaking on behalf of his constituents on Long Island who have suffered extensive MTBE water contamination, expressed support for maintaining the federal oxygen requirement in reformulated gasoline. Noting he believes refiners chose the wrong oxygenate, Forbes called for an MTBE ban and a move to ethanol.

EPA Assistant Administrator for Air and Radiation Bob Perciasepe stated EPA believes the Congress must address the issue of the use of oxygenates in a comprehensive approach that "must include consideration of either reducing or eliminating the use of MTBE as a gasoline additive in an expeditious and practicable time frame," adding "we believe there are alternatives, such as ethanol, but adequate lead time is necessary." In response to the MTBE water contamination crisis, EPA is:

• developing a drinking water standard for MTBE under the Safe Drinking Water Act;
• establishing a water quality standard under the Clean Water Act;
• enhancing underground storage tank program compliance to 90 percent in 2000;
• funding a grant to University of California-Davis to evaluate the effectiveness of leak detection technologies;
• conducting a $1 million technology demonstration project for the clean up of MTBE contaminated aquifers; and
• proposed rulemaking to account for the impact on ozone formation from CO emissions reductions associated with ethanol use to provide increased flexibility to refiners.

EPA has proposed regulating MTBE use under the Toxic Substances Control Act. The proposed rule is currently undergoing an inter-agency review by the Office of Management and Budget.

With regard to the California waiver request, Perciasepe noted that the agency does not expect to have its assessment complete before this summer. The Clean Air Act clearly states that EPA can only grant a waiver if it can be shown that using oxygenates interferes with attainment of a National Ambient Air Quality Standards. Perciasepe commented that the waiver request is inconsistent with the agency's existing position that oxygenates have a beneficial impact on air quality.

Illinois EPA Director Tom Skinner, commenting on the successful ethanol reformulated gasoline program in the greater Chicago area, urged the Congress to maintain the oxygen requirement and allow ethanol to play a larger role in improving the nation's air quality. "The reformulated gasoline program has been an unqualified success in the Chicago area, and we are looking forward to the additional benefits which will be provided by Phase 2 of the program," Skinner said. "We believe that the use of oxygenates in reformulated gasoline has also provided significant air quality benefits in our nation's metropolitan areas, well beyond those required in the Clean Air Act." Skinner expressed concern that unless EPA makes fundamental policy changes in the next few months that account for the carbon monoxide emissions reductions benefits of ethanol, the Chicago area could be forced to use MTBE in Phase 2 reformulated gasoline.

Michael Graboski of the Colorado School of Mines, testified on behalf of the National Corn Growers Association that if the oxygen requirement were removed, aromatics would increase. "Aromatic compounds are highly toxic and many like benzene are known human carcinogens. The toxic potency of aromatics and their combustion byproducts are, in many cases, orders of magnitude greater than the potency of oxygenates or their combustion byproducts."

Eric Vaughn, President of the Renewable Fuels Association, noted that today's rising oil prices and failing farm economy demonstrate the need to promote the increased production and use of ethanol in reformulated gasoline as a safe response to MTBE water contamination.