[Congressional Record Volume 147, Number 73 (Thursday, May 24, 2001)]
[Senate]
[Page S5623]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH of New Hampshire (for himself and Mr. Reid):
  S. 950. A bill to amend the Clean Air Act to address problems 
concerning methyl tertiary butyl ether, and for other purposes; to the 
Committee on Environment and Public Works.
  Mr. SMITH of New Hampshire. Mr. President, by now everyone knows of 
the damage that the gasoline additive, MTBE, has done to our nation's 
drinking water supply, including in the state of New Hampshire. MTBE 
has been a component of our fuel supply for two decades. In 1990, the 
Clean Air Act was amended to include a clean gasoline program. That 
program mandated the use of an oxygenate in our fuel, MTBE was one of 
two options to be used. The problem with MTBE is its ability to migrate 
through the ground very quickly and into the water table. Several 
states have had gasoline leaks or spills lead to the closure of wells 
because of MTBE. MTBE is not a proven carcinogen, but its smell and 
taste does render water unusable. Many homes in New Hampshire and 
across the nation have lost use of their water supply because of MTBE 
contamination.
  Today I am introducing a bill with my friend Senator Reid, who is the 
Ranking Member on the committee that I chair, the Environment & Public 
Works Committee. This bill addresses the problems associated with MTBE, 
but will not reduce any environmental benefits of the Clean Air 
program. Briefly, this bill will: Authorize $400 million out of the 
Leaking Underground Storage Tank Fund (LUST Fund) to help the states 
clean up MTBE contamination, address the integrity of Underground 
Storage Tanks and the program; Ban MTBE four years after enactment of 
this bill; Allow Governors to waive the gasoline oxygenate requirement 
of the Clean Air Act; Preserve environmental benefits on air toxics, 
and; Provide funds to help transition from MTBE to other clean, safe 
fuels.
  The funding for cleanup and transition is provided out of a sense of 
fairness. Since a Federal mandate caused the pollution, it would be 
irresponsible for the Federal Government not to bear some of the 
financial burden associated with the clean up and the transition to a 
less destructive alternative fuel.
  This is a very complex issue that the Environment and Public Works 
Committee has struggled with for months. It has always been my intent 
to craft a solution that was direct and balanced. There are many 
competing interests and a number of solutions have been offered. Most 
of the competing interests are based on regional differences and 
preferences.
  Some prefer a simple ban of MTBE, this approach would make gas 
dramatically more expansive and more dirty. Some would like a stand 
alone mandate of Ethanol, that too has many problems associated with 
it. Ethanol would bring with it both cost and smog concerns, 
particularly in states like New Hampshire. Simply eliminating the RFG 
mandate does not work either. Under this scenario, MTBE would continue 
to be used and wells would continue to be contaminated.
  I am also very pleased that this bill is consistent with the 
President's National Energy Policy because it will reduce the intra-
regional patchwork of what are known as ``boutique'' fuels. This bill 
will allow for the use of one fuel blend to meet RFG requirement in 
many regions that currently require multiple boutique fuels. This will 
ease the burden on refineries and fuel supply, which in turn will 
reduce the risk of increased gas prices for the consumer. The fuel 
suppliers recognize this benefit and I am very pleased that this bill 
has the support of the American Petroleum Institute. While they have 
raised some minor technical concerns that I am committed to addressing 
prior to passage, I am pleased to have their support.
  I believe that this bill provides for a workable solution to both our 
MTBE problem as well as addressing the ``boutique'' fuels problems in 
this country. We will clean up our nation's drinking water and preserve 
the environmental benefits of RFG without undue added cost to the 
consumers. I am convinced this is the right approach.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 950

  [Data not available at time of printing.]
  Mr. REID. Mr. President, I am pleased to join with the Senator from 
New Hampshire, the Chairman of the Environment and Public Works 
Committee, in introducing legislation to address the water resource 
problems that have been caused in Lake Tahoe and around the country by 
MTBE contamination.
  As my colleagues may know, the oxygenate requirement that Congress 
included in the 1990 Clean Air Act Amendments for certain nonattainment 
areas was met by most fuel providers and refiners with significantly 
increased production of MTBE. While this additive has proven beneficial 
in meeting air quality goals and reducing toxic air pollution, its 
enhanced production and usage has led to major drinking and surface 
water contamination, largely because of leaking underground storage 
tanks, spills and watercraft releases.
  Our bill seeks to deal with the MTBE problem and prevent such 
unintended consequences from occurring again, while still protecting 
air and water quality. This measure embodies several of the major 
recommendations of the EPA's Blue Ribbon Panel on Oxygenates in 
Gasoline.
  We are proposing to significantly enhance state authority and 
resources to deal with remediation of MTBE releases from leaking 
underground storage tanks, and to improve compliance and prevent 
additional releases at these sources. Four years after enactment, MTBE 
would be banned from the fuel supply. The bill would amend the Clean 
Air Act to ensure that additives added to the fuel supply in the future 
undergo regular testing and review of public health and water quality 
impacts.
  Our legislation allows Governors to waive out of the oxygenate 
requirement imposed by the Act's reformulated gasoline, RFG provisions 
and, for the RFG areas in those states, refiners and fuel providers 
would have to ensure that there would be continued overcompliance with 
toxics reductions performance standards based on regional averages. In 
recognition of the industry investments made to comply with the 
oxygenate requirement, the bill authorizes grants to American companies 
making MTBE for domestic consumption in RFG areas if they opt to 
convert to production of replacement additives that do not degrade 
water quality, as well as continuing to improve public health and air 
quality. Finally, the bill allows the EPA to improve on its mobile 
source toxics rule and afford better protection to more sensitive and 
exposed populations from these harmful substances.
  This is a sensible bill that prevents backsliding on air quality and 
is designed to improve water resource protection. I am hopeful that the 
Committee and Congress will be able to act swiftly to resolve the MTBE 
problems facing so many communities across the nation and in Nevada.
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