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.