Enron Mail

From:jeffrey.keeler@enron.com
To:james.prentice@enron.com, stanley.horton@enron.com, ted.robinson@enron.com,michael.robison@enron.com, stephen.swain@enron.com, lou.potempa@enron.com, micha.makowsky@enron.com, michael.terraso@enron.com, rick.craig@enron.com, marc.phillips@enron.com,
Subject:EPA principles for MTBE ban
Cc:stephen.burns@enron.com
Bcc:stephen.burns@enron.com
Date:Thu, 23 Mar 2000 03:13:00 -0800 (PST)

Attached below is a copy of EPA's legislative principles for phasing out MTBE
use. These principles have been criticized by Members of Congress -- even
oxygenate bill sponsor Brian Bilbray -- as being very vague and lacking any
helpful information whatsoever. At the House Commerce Committee hearing a
few weeks ago, EPA Assistant Administrator Perciasepe was blasted for not
having submitted anything in detail that would help Congress solve the
complex RFG/MTBE issue. These empty prinicples will not likely help EPA in
moving forward with their regulatory plans.

*******

LEGISLATIVE PRINCIPLES FOR PROTECTING DRINKING WATER SUPPLIES,
PRESERVING CLEAN AIR BENEFITS, AND PROMOTING RENEWABLE FUELS

The Federal Reformulated Gasoline Program (RFG) established in the Clean Air
Act Amendments of 1990 has provided substantial reductions in the emissions
of a number of air pollutants from motor vehicles, most notably volatile
organic compounds and nitrogen oxides (precursors of ozone), carbon monoxide,
and air toxics (benzene, 1,3-butadiene, and others). In most cases these
reductions have exceeded those required by law.

However, the use of methyl tertiary butyl ether ("MTBE") in our nation's fuel
supply has created a significant and unacceptable risk to drinking water and
ground water resources. As a result of these concerns, last year EPA
commissioned a Blue Ribbon Panel on MTBE and Oxygenates in Gasoline (the
"Panel"). On July 27, 1999 the Panel issued recommendations on ways to
maintain air quality while protecting water quality from the risks associated
with MTBE. Significantly, the Panel called for a substantial reduction in
the use of MTBE as well as action by Congress to remove the current 2%
oxygenate requirement from the Clean Air Act. EPA endorsed the Panel's
recommendations and committed to work with Congress to make targeted
amendments to the Clean Air Act.

In the months since the Panel issued its recommendations, detections of MTBE
in water supplies have grown and Congress has not yet acted to address this
issue. It is of increasing importance to enact legislation that addresses
this problem in an environmentally sound and cost-effective way. Such
legislation should provide authority to phase out MTBE while avoiding
gasoline supply shortages and ensuring price stability.

The following legislative principles, taken together as a single package, are
designed to maintain air quality and enhance water quality protection while
preserving the significant role of renewable fuels, most importantly
ethanol. In addition, it is the Administration's intention that the
resulting legislation provide sufficient flexibility with respect to both
time and range of technological choices so as to allow for continued adequate
supplies of gasoline at reasonable prices for consumers.

Recommendation #1: Amend the Clean Air Act to provide the authority to
significantly reduce or eliminate the use of MTBE.

The rising number of MTBE detections in ground and surface water in some
areas of the nation have increased the urgency for preventing further MTBE
contamination. In some cases, communities have been forced to abandon their
drinking water supply. To effectively address this growing problem, the
Administration recommends that Congress amend the Clean Air Act to provide
the authority to significantly reduce or eliminate the use of MTBE.


Recommendation #2: As MTBE use is reduced or eliminated, ensure that air
quality gains are not diminished.

The clean burning Reformulated Gasoline Program has helped bring clean air to
cities across the nation. In many cases, Americans have enjoyed air quality
improvements that have exceeded expectations. The Administration recommends
that as Congress significantly reduces or eliminates MTBE, it institute
measures that maintain our air quality gains.

Recommendation #3: Replace the existing oxygen requirement contained in the
Clean Air Act with a renewable fuel standard for all gasoline.

Reducing or eliminating MTBE in no way diminishes the continued need for
other oxygenates, such as ethanol, to control mobile source emissions. In
addition, a significant role for renewable fuels is important to our nation's
energy supply (see, EO 13134 in which President Clinton sets a goal of
tripling the use of renewable bio-energy by 2010). Thus, the Administration
recommends that Congress replace the 2% oxygenate requirement in the Clean
Air Act with a renewable fuel annual average content for all gasoline at a
level that maintains the current level of renewable fuel (1.2% of the
gasoline supply) and allows for sustained growth over the next decade.

Congressional action on these recommendations is essential if we are to
continue to achieve the clean air public health benefits of cleaner burning
gasoline while avoiding unacceptable risks to our nation's water supplies.
The Administration urges Congress to address this request for legislation as
quickly as possible. We remain committed to working with Congress to provide
a targeted legislative solution to this matter.