FOR IMMEDIATE RELEASE April 21, 2005

CONTACT: Brendan Daly/Jennifer Crider 202-226-7616

Pelosi: ‘Republicans Are Not Even Giving MTBE Polluters a Slap on the Wrist; They Are Giving Them a Pat on the Back’

Washington, D.C. – House Democratic Leader Nancy Pelosi spoke today on the House floor in opposition to a provision in the Republican energy bill that gives producers of gasoline additive MTBE a $2 billion subsidy, exempts the producers from liability, and establishes a nine-year phase out plan of MTBE.  Below are Pelosi’s remarks:

“I rise in support of Congresswoman Capps’ amendment to strike the disgraceful MTBE giveaway, and I commend her for seizing the opportunity to offer this amendment.

“Mr. Chairman, as we discussed yesterday in general debate, a few drops of MTBE can poison an entire drinking water system.  But the industry lobbied for MTBE to be added to gasoline anyway.  The dirty little secret is that the industry knew all along that MTBE would leak out of gasoline storage tanks and contaminate ground water.  In fact, there was a deliberate attempt by the MTBE producers to hide the groundwater impacts of their product from Congress.

“Today, communities across America are suffering the effects of MTBE.  MTBE contamination of groundwater and surface water is a major problem in my state of California, and many drinking water wells have had to be shut down because of this contaminant.  MTBE contamination has been detected in all 50 states, and a recent study indicates that it could cost between $12 and $63 billion to clean up.  That’s $12 to $63 billion to clean up something the industry knew was dirty to begin with, and withheld information about that from Congress.

“Not surprisingly, the MTBE producers and the big oil companies want to be protected from liability for contaminating our drinking water supplies.  And not surprisingly, Tom DeLay and House Republicans are happy to oblige.  Mr. DeLay insisted on the MTBE provision in the last Congress, even at the cost of killing the energy bill.  He insisted on it again this year.  In fact, this is the Majority Leader’s bill we are debating today.

“Instead of eliminating MTBE now, the Republican energy bill gives nine years for a phase out, nine years of MTBE leaking into our water supply.  And a loophole may even allow MTBE to be used indefinitely.  It gives MTBE producers liability protection in contamination lawsuits and it gives a $2 billion subsidy to MTBE manufacturers. 

“According to the Republican Congress, you pollute our groundwater and you get $2 billion.  That’s your gift for contaminating our groundwater.  Republicans are not even giving MTBE polluters a slap on the wrist; they are giving them a pat on the back.

“But in their attempt to shield MTBE producers and big oil companies from accountability, Republicans have created a huge unfunded mandate for states and localities, and it is taxpayers who are stuck with the bill.  Remember unfunded mandates?  Wasn’t that principle number one of the Contract with America?  No unfunded mandates. 

“And then in their attempt to shield MTBE producers and big oil companies from accountability, Republicans have created this unfunded mandate, which is called such by the National Water Resources Association, the American Public Works Association, the Western Coalition of Arid States, the Association of California Water Agencies, the American Water Works Association, the Association of Metropolitan Water Agencies, the National Association of Towns and Townships, the National Association of Counties, the National League of Cities, and the U.S. Conference of Mayors.

“These organizations say that this provision amounts to a ‘massive unfunded mandate on local governments and citizens.’  Republicans used to oppose unfunded mandates, and the rules of the House still allow us to strike them.

“I urge my colleagues to support the Capps amendment, to demand accountability, and to stop the outrageous MTBE giveaway.”

“ Democrats are united in presenting a New Direction for America, one that will make our nation as strong as its people, one that brings opportunity, security, and prosperity to all Americans. ”

Democratic Leader Nancy Pelosi