Methyl Tertiary Butyl Ether (MTBE) Issue Brief

Methyl Tertiary Butyl Ether (MTBE)

Issue Description
Definitions
State Concerns
NCSL Position
State Activity
NCSL Related Information
Other Related Resources

The 107th Congress (updated 06/12/2002)

NCSL Congressional Correspondence

Methyl tertiary butyl ether (MTBE) is a synthetic chemical used as an oxygenate in reformulated gasoline (RFG) and has been recently found to contaminate ground and drinking water. Contamination occurs mainly in areas required by the Clean Air Act Amendments (CAAA) of 1990 to use RFG and most often enters the water supply by leaking from underground storage tanks. The fuel additive is colorless, but can be detected by smell and taste at extremely low levels and poses potential health risks. Recently, states and the EPA have moved to ban the use of MTBE. As MTBE is reduced or eliminated from the fuel supply, other compounds will have to be used to maintain current emission standards. Ethanol is the most likely substitute.

Definitions

Clean Air Act Amendments (CAAA) - Passed in 1990, the CAAA requires areas designated as severe or extreme ozone attainment areas to sell RFG year-round to reduce ozone emissions. Currently the cities required to sell RFG are; Baltimore, Chicago, Hartford, Houston, Los Angeles, Milwaukee, New York City, Philadelphia, Sacramento and San Diego. Other areas may voluntarily "opt-in" the RFG program to help attain air quality goals.

Ethanol - A widely used oxygenate produced from corn. The fuel additive, like MTBE, improves air quality and fuel performance but poses minimal risk to water quality.

Methyl Tertiary Butyl Ether (MTBE) - A synthetic compound used as an oxygenate to fulfill the RFG 'oxygenate mandate' requirement set in the CAAA to help reduce air pollution. MTBE is the most widely used oxygenate used in 80 percent of the RFG nationwide. The CAAA does not specifically require the use of MTBE as a fuel additive. Most refiners, however, have chosen to use MTBE because it is easier to blend and less expensive to produce than other oxygenates.

Oxygenate - A fuel additive that is blended with motor fuel to raise the fuels oxygen content. Higher oxygen levels help the fuel burn more completely, reducing emissions. The CAAA requires RFG to be at least 2 percent oxygenate by weight.

Reformulated Gasoline (RFG) - The CAAA directs EPA to set regulations on motor fuel so as to require gasoline to be formulated differently, resulting in lower vehicle emissions. RFG differs from some conventional gasoline in that RFG: has lower levels of compounds that contribute to air pollution; will not evaporate as easily as conventional gasoline; and contains oxygenates. RFG constitutes approximately 32 percent of all gasoline in the United States. RFG is currently used in 17 states and the District of Columbia.

State Concerns

A ban on MTBE may result in an increase in gasoline prices as well as vehicle emissions. Also of concern is the cleanup cost associated with MTBE contamination of groundwater, water supply or surface water. In addition, any congressional activity should not preempt any current state efforts to phase-out or ban the use of MTBE.

The 107^th Congress (2001-2002)

A number of bills have been introduced in the 107^th Congress to regulate the use of MTBE.

On December 5, 2001, Sen. Tom Daschle (D-S.D.) introduced S. 1766, Energy Policy Act of 2002 (now part of S. 517, the comprehensive energy legislation). Section 818 requires increasing use of ethanol or other renewable fuels in motor vehicle fuel each year from 2003 to 2011. Sections 822-828 would ban the use of MTBE in gasoline within 4 years, allow Governors to waive the oxygenate requirement in reformulated gasoline, prevent backsliding on emissions of air toxics from RFG, and authorize funds for remediation of MTBE leaks.

On June 21, 2001, Rep. Darrell Issa (R-Calif.) and the entire U.S. House California delegation introduced H.R. 2270 to amend the Clean Air Act. The bill would permit California to apply California state regulations regarding RFG in certain areas within the state in lieu of the federal mandate.

On June 19, 2001, Rep. Peter King (R-N.Y.) introduced H.R. 2230 to amend the Clean Air Act. The bill would require certain regulations regarding motor vehicle fuels to prohibit the use of MTBE as a fuel additive. The bill was referred to the House Committee on Energy and Commerce and then to the Subcommittee on Energy and Air Quality.

On May 25, 2001, Rep. Mark Green (R-Wis.) introduced H.R. 2017. The bill does not directly address MTBE but addresses the use of ethanol. The proposed bill would direct the Administrator of EPA to conduct a study of the feasibility of developing regional vehicle fuel specifications for the U.S. and implementing the use of a uniform blend of ethanol-based gasoline in the Midwest. The bill was referred to the House Committee on Energy and Commerce.

On May 24, 2001, Sen. Bob Smith (R-N.H.) introduced S. 950 to amend the Clean Air Act and the Solid Waste Disposal Act. The bill would authorize the use of the Leaking Underground Storage Tank Trust Fund to protect human health and the environment from releases of MTBE. The bill would authorize states to issue regulation on any fuel or fuel additive to protect water quality and to waive the oxygen requirement for RFG sold in the state. The bill was referred to the Senate Committee on Environment and Public Works.

On May 24, 2001, Sen. Dianne Feinstein (D-Calif.) introduced S. 947 to amend the Clean Air Act. The bill would allow Governors to waive the oxygen content requirement for RFG. Referred to the Senate Committee on Environment and Public Works.

On May 24, 2001, Rep. Jim Nussle (R-Iowa) introduced H.R. 1999 to amend the Clean Air Act and the Internal Revenue Code of 1986. The bill would ban the use of MTBE, require federal vehicles to use ethanol and authorize a tax credit to small ethanol producers. The bill was referred to the House Committee on Energy and Commerce and House Committee on Ways and Means.

On May 15, 2001, Sen. Tom Harkin (D-Iowa) introduced S. 892 to amend the Clean Air Act. The bill would prohibit the sale or dispensing of any fuel or additive containing MTBE with the exception of nonattainment areas. The bill would also prohibit the use of any fuel or fuel additive containing MTBE or any other ether compound. The bill was referred to the Senate Committee on Environment and Public Works.

On May 3, 2001, Rep. Richard Pompo (R-Calif.) introduced H.R. 1695 to amend the Clean Air Act. The bill would prohibit use of certain fuel additives including MTBE. The bill was referred to the House Committee on Energy and Commerce.

On March 30, 2001, Sen. Tom Daschle (D-S.D.) introduced S. 670 to amend the Clean Air Act. The bill would eliminate MTBEs from the U.S. fuel supply and increase the production and use of ethanol. The bill was referred to the Senate Committee on Environment and Public Works.

On Feb. 14, 2001, Rep. Greg Ganske (R-Iowa) and Rep. John Shimkus (R-Ill.) introduced H.R. 608 to amend the Clean Air Act. The measure would phase in over the three years a ban on the use of MTBE. The bill directs the Administrator of EPA to develop guidelines to assist states in the cleanup of MTBE in groundwater and revises the oxygenate requirement under the Clean Air Act to be "equal to or exceed an average of two percent by weight" (as opposed to equal or exceed two percent by weight). The bill was referred to the House Committee on Energy and Commerce.

On Feb. 8, 2001, Rep. Lois Capps (D-Calif.) introduced H.R. 532. The proposed bill would provide funds for clean up of MTBE contamination. The bill would authorize not more than $200,000,000 from the Leaking Underground Storage Trust Fund to the EPA. The funds are to be used to protect human health and the environment from releases of MTBE from underground storage tanks. The bill was referred to the House Committee on Energy and Commerce.

On Feb. 6, 2001, Rep. Timothy Johnson (R-Ill.) introduced H.R. 454 to amend the Toxic Substances Control Act. Similar to S. 265, the measure would phase in over three years a ban on the use of MTBEs. The bill was referred to the House Committee on Energy and Commerce.

On Feb. 6, 2001, Sen. Peter Fitzgerald (R-Ill.) introduced S. 265 (introduced last session as S. 2233) to amend the Toxic Substances Control Act. Similar to H.R. 454, the measure phases in over three years the ban on MTBE. The bill was referred to the Senate Committee on Environment and Public Works.

On Jan. 3, 2001, Rep. Gary Condit (D-Calif.) introduced H.R. 52 to amend the Clean Air Act. The measure would permit the exclusive application of California state regulations regarding reformulated gasoline in federal RFG areas within the state. Referred to the Committee on Energy and Commerce.

On Jan. 3, 2001, Rep. James Greenwood (R-Pa.) introduced H.R. 20 to amend the Clean Air Act to modify the provisions regarding oxygen content of reformulated gasoline and to improve the regulation of the fuel additive MTBE. The bill was referred to the House Committee on Energy and Commerce.

For a more details see NCSL Bills Board: MTBE

NCSL Congressional Correspondence

None at this time.

Congressional Hearings

On April 27, 2001, the Senate Environment and Public Works Committee held a hearing in Salem, New Hampshire regarding the use of the gasoline additive methyl tertiary butyl ether (MTBE).

Opening Statement:
Sen. Bob Smith, of New Hampshire.
: Witnesses:
Christina Miller
Homeowner, Derry NH
: Hon. Arthur Klemm
New Hampshire State Senator
Windham, NH
: Robert Varney
Commissioner
New Hampshire Department of Environmental Services
: Nancy Kinner
Professor of Civil Engineering
University of New Hampshire
: William Holmberg
Biofuel Refiner, Bow NH
: Patty Aho
Executive Director
Maine Petroleum Association (API)
: Statements submitted for the Record:
Thomas L. Adams, President, Oxygenated Fuels Association (OFA)
Clint Norris, BC International
Hayes Gahagan, Gahagan & Associates

The 106^th Congress (1999-2000)

On Sept. 7, 2000, Sen. Bob Smith (R-NH) introduced S. 2962 to amend the Clean Air Act. The bill would have allowed states to waive the oxygenate requirement for RFG. The bill would have required all motor vehicle fuel sold in the United States from 2002 through 2007 to contain a specified percentage of renewable fuel. The bill would have amended the Solid Waste Disposal Act to authorize EPA and States to use funds from the Leaking Underground Storage Tank Trust fund to take corrective actions on MTBE contamination and to conduct inspections of underground storage tanks. The bill passed the Senate Committee on Environment and Public Works but failed to have any floor action.

Other bills concerning the use of MTBE were introduced but failed to pass out of committee.

NCSL Congressional Correspondence

None.

Congressional Hearings

On June 14, 2000, the Senate Subcommittee on Clean Air, Wetlands, Private Property, and Nuclear Safety held a hearing on the environmental benefits and impacts of ethanol under the Clean Air Act.

Opening Statements:
Sen. James M. Inhofe, Oklahoma
Sen. Bob Smith, New Hampshire
Sen. George V. Voinovich, Ohio
Sen. Christopher S. Bond, Missouri
Sen. Robert F. Bennett, Utah
Sen. Joseph I. Lieberman, Connecticut

Statement by the Witnesses:
Dan Greenbaum
President
Health Effects Institute
Cambridge, MA

Blake Early
Environmental Consultant
American Lung Association

Michael Graboski
Director
Colorado Institute for Fuels and High Altitude Engine Research
Department of Chemical Engineering
Colorado School of Mines
Lakewood, CO

Bob Slaughter
Director, Public Policy
National Petrochemical and Refiners Association

Jack Huggins
Vice President, Ethanol Operations
Williams Energy Services
Pekin, IL

Jason S. Grumet
Executive Director
Northeast States for Coordinated Air Use Management
Boston, MA

Stephen Gatto
President and CEO
BC International
Dedham, MA

Gordon Proctor
Director
Ohio Department of Transportation
Columbus, OH

Sen. Charles Grassley, Iowa
Sen. Tom Harkin, Iowa
Sen. Richard Durbin, Illinois
Sen. Peter Fitzgerald, Illinois

On Oct. 5, 1999, the Senate Subcommittee on Clean Air, Wetlands, Private Property, and Nuclear Safety held a hearing on EPA's Blue Ribbon Panel findings on MTBE.

Opening Statements:
Sen. James M. Inhofe, Oklahoma
Sen. John H. Chafee, Rhode Island
Sen. George V. Voinovich, Ohio
Sen. Joseph I. Lieberman, Connecticut
Sen. Barbara Boxer, California

Statement by the witnesses:
Dan Greenbaum
President
Health Effects Institute
Cambridge, Massachusetts

Honorable Jake Garn
Vice Chairman
Huntsman Corporation
Salt Lake City, Utah

Michael Kenny
Executive Officer
California Air Resources Board
Sacramento, California

Bob Campbell
Chairman, CEO
Sunoco Inc.
Philadelphia, Pennsylvania

NCSL Position

The National Conference of State Legislatures (NCSL) recommends caution in the promotion of alternative fuels, especially where traditional fuels are to be replaced with alternative fuels. Many times the alternative fuel may potentially result in other pollution problems.

In areas required under the CAAA to utilize reformulated oxygenated fuels, selection of alternative fuel additives should be left to state discretion. States should be allowed the ability to regulate the use of MTBE according to each state's individual needs where costs, safety, and economic and environmental impact can be considered.

With regards to fuel additives, NCSL recommends the following:

Prior to approval of fuel additives, the EPA should extensively examine public health benefits and cross-media implications.
Any fuel requirements should be in the form of performance-based goals. Specific chemicals or other additives should not be prescribed in order to maximize state flexibility to achieve the goals.
Any fuel requirement should be based on anticipated air quality benefits.

(Access a full copy of NCSL's Alternative Fuels and Alternatively Fueled Vehicles Policy)

State Activity

Eighteen states - Arizona, California, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Michigan, Minnesota, Nebraska, New Hampshire, New York, Ohio, South Dakota and Washington - have enacted laws to either phase out MTBE or opt out of the federal RFG program as of June 2002. Other state legislative activities include: laws to direct state agencies to study MTBE contamination of water supplies and its health effects; and, resolutions to urge Congress and the EPA to eliminate the federal oxygenate requirement.

On June 12, the EPA denied California's request for a waiver from the CAA requirement to use 2 percent oxygen in RFG. The EPA Administrator Christie Todd Whitman stated, "We cannot grant a waiver for California since there is no clear evidence that a waiver will help California to reduce harmful levels of air pollutants." Whitman went on to explain, "The Administration is concerned about the risks of MTBE in drinking water in California and other states. Clean air and clean water are equally important. We do not want to pursue one at the expense of the other. As it currently stands, the Clean Air Act provisions limit the Agency's ability to address these concerns. We are exploring all options and currently assessing the health risks of MTBE." The EPA decision partnered with the 1999 decision by the state to phase out the use of MTBE by 2003, will most likely lead to ethanol replacing MTBE in RFG. On June 21, 2001, Rep. Darrell Issa (R-Calif.) and the entire U.S. House California delegation introduced H.R. 2270. The bill would amend the Clean Air Act and would permit California to apply California state regulations regarding RFG in certain areas within the state in lieu of the federal mandate. For more information on H.R. 2270 and other bills addressing the use of oxygenates see NCSL Bills Board.