Hearing Held on Bilbray Bill

California Representative Brian Bilbray

A hearing was recently held by the House Commerce Health and Environment Subcommittee regarding H.R. 11, a bill introduced by California Representative Brian Bilbray that would eliminate the oxygen requirement in California gasoline.  Originally introduced in the last Congress to respond to the state's MTBE water contamination crisis, the Executive Order issued by California Governor Gray Davis phasing out the use of MTBE will accomplish H.R. 11's intended goal . removing MTBE from the state's gasoline supply.  The legislation is supported by the oil industry, which argues that it needs the flexibility to fulfill the Governor's order.

Nebraska Governor Mike Johanns submitted testimony on behalf of the 22-state Governors' Ethanol Coalition in opposition to the bill.  "The agricultural community is suffering from low commodity prices, falling export markets, decreasing land values and plunging domestic feed use of grain," said Johanns.  "One significant bright spot in agriculture's otherwise dismal outlook is the opportunity for increased domestic grain consumption created by new demand for ethanol." "While the oxygenate of choice for refiners in California has been MTBE, demand for ethanol to replace MTBE in the state can result in developing an in-state ethanol industry.  Ethanol demand will be met by a combination of an expanded California ethanol industry and supplies from existing ethanol production facilities across the U.S."

Nebraska Governor Mike Johanns

Governor Johanns committed to work to ensure the "best possible solution for California without abandoning the significant air quality, energy security and rural economic development benefits of the oxygen content requirement in reformulated gasoline.  No citizen should have to choose between clean air and clean water.  With ethanol, that choice does not have to be made."

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