The Full Committee held a hearing on MTBE last year. Since then much has happened. In March, Governor Gray Davis ordered the state of California to phase out MTBE use by the end of 2002.
In July, the EPA's Blue Ribbon Panel issued its report on the use of oxygenates in gasoline. Those findings and recommendations have served to guide the debate about the future of MTBE, the 2% mandate and the problems with leaking underground storage tanks.
In early August, the future of MTBE was even debated on the Senate floor. In that debate I urged the Senate to move forward cautiously, guided by the recommendations of the Blue Ribbon Panel. It is important that we not rush to judgment or make hasty decisions. But I also believe we must address this problem. The future of the RFG program, the progress we have made on air quality and public confidence in our water supply, all depend upon resolving this question about the use of oxygenates in gasoline.
Once again, I want to stress that this is not a California only problem. MTBE has been found in water supplies in 26 states, including my state of Rhode Island. Much of this comes from leaking underground storage tanks, which were required by law to be upgraded or closed by December 22, 1998.
MTBE contamination of water is most acute in the 17 states that use RFG. The air quality benefits of RFG have been substantial. Toxics and ozone forming compounds have been reduced dramatically. But frankly, the future of this program is threatened by a mandate that does not make sense.
RFG contains specific limits on toxic emissions, including benzene, and emissions of volatile organic compounds. The success of the program has relied upon these limits, not on the requirement that the gasoline contain 2% oxygen. The 2% mandate is redundant and expensive, costing consumers over $1 billion dollars per year.
Last year, in the Full Committee hearing, I called for the 2% mandate to be lifted. I am glad to see that the Blue Ribbon Panel agreed with me in their recent report. I also support their recommendations to accelerate enforcement of underground storage tank regulations and move to protect water supplies. The only proper way to address this problem is through a comprehensive approach, guided by the common sense recommendations of the Blue Ribbon Panel.
I look forward to hearing the testimony of the witnesses here today.