S. HRG. 106±546 BLUE RIBBON PANEL FINDINGS ON MTBE HEARING BEFORE THE SUBCOMMITTEE ON CLEAN AIR, WETLANDS, PRIVATE PROPERTY, AND NUCLEAR SAFETY COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS FIRST SESSION OCTOBER 5, 1999 Printed for the use of the Committee on Environment and Public Works ( U.S. GOVERNMENT PRINTING OFFICE 63±233 CC WASHINGTON : 2000 For sale by the U.S. Government Printing Office Superintendent of Documents, Congressional Sales Office, Washington, DC 20402 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS ONE HUNDRED SIXTH CONGRESS JOHN H. CHAFEE, Rhode Island, Chairman JOHN W. WARNER, Virginia MAX BAUCUS, Montana ROBERT SMITH, New Hampshire DANIEL PATRICK MOYNIHAN, New York JAMES M. INHOFE, Oklahoma FRANK R. LAUTENBERG, New Jersey CRAIG THOMAS, Wyoming HARRY REID, Nevada CHRISTOPHER S. BOND, Missouri BOB GRAHAM, Florida GEORGE V. VOINOVICH, Ohio JOSEPH I. LIEBERMAN, Connecticut MICHAEL D. CRAPO, Idaho BARBARA BOXER, California ROBERT F. BENNETT, Utah RON WYDEN, Oregon KAY BAILEY HUTCHISON, Texas JIMMIE POWELL, Staff Director J. THOMAS SLITER, Minority Staff Director SUBCOMMITTEE ON CLEAN AIR, WETLANDS, PRIVATE PROPERTY, AND NUCLEAR SAFETY JAMES M. INHOFE, Oklahoma, Chairman GEORGE V. VOINOVICH, Ohio ROBERT F. BENNETT, Utah BOB GRAHAM, Florida KAY BAILEY HUTCHISON, Texas JOSEPH I. LIEBERMAN, Connecticut BARBARA BOXER, California (II) CONTENTS Page OCTOBER 5, 1999 OPENING STATEMENTS Bennett, Hon. Robert F., U.S. Senator from the State of Utah ........................... 10 Boxer, Hon. Barbara, U.S. Senator from the State of California ........................ 3 Chafee, Hon. John H., U.S. Senator from the State of Rhode Island ................. 2 Inhofe, Hon. James M., U.S. Senator from the State of Oklahoma .................... 1 Lieberman, Hon. Joseph I., U.S. Senator from the State of Connecticut ........... 39 Voinovich, Hon. George V., U.S. Senator from the State of Ohio ........................ 20 WITNESSES Campbell, Robert H., chairman and chief executive officer, Sunoco, Inc. ........... 28 Letter, to Senators Inhofe and Graham ......................................................... 55 Prepared statement .......................................................................................... 53 Responses to additional questions from Senator Inhofe ............................... 56 Summary, Blue Ribbon Panel Recommendations on MTBE ......................... 41±47 Garn, Hon. Jake, vice chairman, Huntsman Corporation, Salt Lake City, UT .......................................................................................................................... 25 Prepared statement .......................................................................................... 71 Greenbaum, Daniel S., president, Health Effects Institute, Cambridge, MA, and former chair, Blue Ribbon Panel on the Use of Oxygenates in Gasoline . 11 Prepared statement........................................................................................... 40±48 Responses to additional questions from: Senator Boxer ............................................................................................ 50 Senator Inhofe ........................................................................................... 48 Senator Lieberman .................................................................................... 52 Kenny, Michael P., executive officer, California Air Resources Board, Sac- ramento, CA .......................................................................................................... 26 Letters: To EPA Assistant Administrator, Robert Perciasepe ............................. 63 To EPA Director of Mobile Sources, Margo Oge ..................................... 70 Prepared statement .......................................................................................... 57 Responses to additional questions from Senator Inhofe ............................... 59 ADDITIONAL MATERIAL Articles: MTBE Groundwater Impacts in South Lake Tahoe, CA .............................. 87 Former Senator Garn Tells Senate Panel to Save Fuel Additive MTBE .... 85 Comments, National Research Council Report...................................................... 77±81 Letters: To Margo T. Oge, Director, Office of Mobile Sources, from Michael P. Kenny ............................................................................................................. 70 To Senators James M. Inhofe and Bob Graham, from Robert H. Camp- bell .................................................................................................................. 55 To EPA Assistant Administrator Robert Perciasepe from Michael P. Kenny ............................................................................................................. 63±69 To Senator Bob Graham from Robert Baer .................................................... 87 Report, Public Health Goal for Methyl Tertiary Butyl Ether (MTBE) in Drink- ing Water............................................................................................................. 88±177 (III) IV Page Statements: Association of Metropolitan Water Agencies and American Water Works Association ..................................................................................................... 81 Bergson, Ivo, South Tahoe Public Utility District ......................................... 87 Hall, Steve, executive director of the Association of California Water Agencies ......................................................................................................... 82 Lyondell Chemical CompanyÐSummary of Dissenting Report ................... 48 Santa Clara Valley Water District .................................................................. 85 Summary, The Blue Ribbon Panel on Oxygenates in GasolineÐExecutive Summary and Recommendations ........................................................................ 41±47 BLUE RIBBON PANEL FINDINGS ON MTBE TUESDAY, OCTOBER 5, 1999 U.S. SENATE, COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS, SUBCOMMITTEE ON CLEAN AIR, WETLANDS, PRIVATE PROPERTY, AND NUCLEAR SAFETY, Washington, DC. The subcommittee met, pursuant to notice, at 9:30 a.m., in room 406, Senate Dirksen Building, Hon. James N. Inhofe (chairman of the subcommittee) presiding. Present: Senators Inhofe, Bennett, Voinovich, Boxer, and Chafee [ex officio]. OPENING STATEMENT OF HON. JAMES M. INHOFE, U.S. SENATOR FROM THE STATE OF OKLAHOMA Senator INHOFE. The subcommittee will come to order. At today's hearing we are going to examine the recommendations of the Environmental Protection Agency's Blue Ribbon Panel Advi- sory Committee on the use of Oxygenates in Gasoline on MTBE. MTBE is a fuel additive used to add oxygen to gasoline. The Clean Air Act requires reformulated gasoline, RFG, to contain 2 percent oxygen by weight. MTBE is used in over 85 percent of the RFG, and ethanol is the second largest at 8 percent. The require- ment for RFG began in 1995, as mandated by the 1990 Clean Air amendments. In the last few years, MTBE has been found in drinking water sources, and it is my understanding that the great majority of the levels found are well below the public health concerns, although they create a problem with odor and taste. Because of these water- related concerns, the use of MTBE has been questioned. In March 1999, Governor Gray Davis issued an executive order that will eliminate MTBE from California's gasoline by the end of 2002. There are various legislative options in Congress for dealing with MTBE. These range from an outright ban, to phase-out, to making oxygenates optional. Over the last 2 years the full committee has held two hearings addressing the concerns in California; today is the first time for our subcommittee to consider the MTBE program nationwide. We will be hearing from members of the Blue Ribbon Panel and other rep- resentatives. The EPA's Blue Ribbon Panel issued their report on July 29, 1999. The findings of the report have, in my opinion, been mischaracterized by both the press and the Senate. It is my under- (1) 2 standing that the panel's recommendation for an orderly phase- down in the use of MTBE was dependent upon the repeal of the Federal oxygenate mandate. It is my hope that the ultimate goal of today's hearing is for the members of the committee to under- stand fully what the report says and does not say regarding MTBE. Recently the Department of Energy identified several areas of concern for the U.S. refining industry, including the uncertainty of the role of oxygenates, particularly MTBE in gasoline. I think it is important that we do not jump to any rash conclusions out of un- founded fear or unjustified claims of fuel alternatives. We should not act in haste on the MTBE issue because the potential impacts to the consumer are significant. The safeguarding of the nationwide supply and distribution of gasoline must be a key consideration in any action that is taken to address MTBE. I believe that one of the most important lessons to be learned from the current situation is that prescriptive mandates reduce flexibility and may lead to unintended consequences. There are a number of issues and questions that I would like ad- dressed, both today and in the coming weeks and months. First, what are the health concerns of MTBEÐnot the talk, but the real health concerns? Are there benefits to the air from MTBE or other oxygenates, and are they necessary? Are there specific negative environmental effects from MTBE? What is the