OPENING STATEMENT OF SENATOR BOB SMITH
MTBE FIELD HEARING IN SALEM, NEW HAMPSHIRE
April 27, 2001

Good afternoon thank you all for coming here today for this hearing on MTBE. I would like to offer special thanks to the witnesses. I would also like to thank Salem High School for allowing us to use this room.

Since taking over as Chairman of the Senate Environment and Public Works Committee, I have made a great effort to ensure that New Hampshire residents have a strong voice in the development of environmental policy.

In the two years prior to my Chairmanship, only 2 NH witnesses testified before the Committee - I will soon be welcoming our 30th New Hampshire witness. It does make a difference; it certainly played a major role last year, for example, in ensuring that our tree farmers in northern New Hampshire didn't lose their business because of a very short-sighted EPA regulation (TMDLs).

Another issue that had enormous New Hampshire involvement was that of Brownfields reform legislation. I am very pleased to report that my Brownfields bill passed the Senate on Wednesday by a vote of 99-0. This legislation - supported by the President - will ensure that many of the currently abandoned contaminated industrial sites that languish in New Hampshire will be cleaned up and redeveloped in places like: Nashua, Northfield, Bradford, and Tilton. In fact, next Friday, I will be joined in Winchester by President Bush's EPA Administrator, Christine Whitman, to tour a Brownfields site (former AC Lawrence Tannery).

I believe it is important to hold field hearings and to host senior Administration officials up here because the more we bring New Hampshire values to Washington - the better the nation will be served.

That applies to why we are here today - to discuss and explore the problems associated with Methyl Tertiary Butyl Ether, referred to as "MTBE".

I have asked our witnesses to share with us their experiences and expertise. This testimony will be invaluable in my efforts to draft legislation to take care of this problem for New Hampshire and other states dealing with MTBE.

MTBE is it is a clean, cheap gasoline additive that boosts octane. It has been added to gasoline for over two decades. In 1990, the Clean Air Act was amended to include the Reformulated Gasoline Program the RFG program requires cleaner-burning gasoline in certain areas. Other areas, including four counties in Southern New Hampshire, chose to participate.

The program has been successful in achieving air quality benefits beyond requirements. Unfortunately, one provision of the program is causing water quality problems. The RFG program mandates the use of an oxygenate in our gasoline MTBE is one of two options currently in use, the other is ethanol.

The problem with MTBE is its ability to migrate through the ground very quickly and into the water table. Even at low levels of contamination, MTBE renders water unusable because of its foul odor and taste. In an effort to address a clean air concern, the impact on our drinking water was neglected.

We must change how we develop these laws and regulations; our efforts should be more holistic - no more "stove-pipe", narrow-vision thinking.

One of the most distressing aspects of MTBE contamination is that the health effects of this gasoline additive are largely unknown. Because of MTBE, New Hampshire has spent a lot of money in order provide safe water for residents with contaminated wells; the state has been providing bottled water as well as installing and maintaining expensive treatment equipment.

Particularly hard hit have been communities in the southern tier of our state, such as homes around Arlington Lake (here in Salem), Frost Road in Derry, and Green Hills Estates in Raymond. New Hampshire is not alone many other states have also had gasoline leaks or spills that resulted in costly clean-ups (even the closure of wells).

MTBE remains a major problem that will not go away without federal action. I am glad to hear that Governor Shaheen has joined the battle with her recent request to opt-out of the Reformulated Gasoline (RFG) program. I am also glad to hear that the state legislature is pursuing creative options to get New Hampshire out of the RFG program.

We all share the common goal of protecting New Hampshire's water. I support these efforts and I will do what I can to help.

Unfortunately, even if allowed, getting New Hampshire out of the RFG program would only act as a band-aid it would not provide a cure.

It will:

-- NOT keep MTBE out of New Hampshire
-- NOT clean up existing contamination
-- REQUIRE additional measures to maintain air quality.

The opt-out is a step toward a comprehensive solution but federal legislation is needed.

Last year, I introduced a bill (S. 2962) that offered a comprehensive solution.

It will:

--Provide money for Cleanup
--Ban MTBE
--Allow governors to waive oxygenate mandate
--Maintain current air quality benefits "Anti-Backsliding".

It seems like passage of the bill should be quick and easy surely no one would oppose legislation that solves a major environmental problem. Unfortunately, competing regional interests across the country have made this one of the more difficult issues to deal with. Due to the competing interests of ethanol states and oil states, many of the proposed federal fixes would do nothing to address the problem here in New Hampshire.

Fortunately, any legislation dealing with MTBE will have to go through my committee. Solving the MTBE problem remains one of my top priorities. We need to work together reach consensus among the competing interests in order to protect New Hampshire and other states from MTBE contamination. I will make sure any bill that comes out of my committee does this.

It is my intention to introduce a bill very similar to last years' bill (S. 2962). I am hopeful that we will be able to reach an agreement and move meaningful legislation.

I will continue to fight for a solution that protects our wells and that does not create other problems, such as increased air pollution, gasoline price spikes or supply shortages.

Once again, thank you all for coming. I look forward to hearing the testimony from our witnesses