FYI -- More information from EPA to back up its recent announcement:

Oxygenates in Gasoline

Congress required, in the Clean Air Act of 1990, that areas of the country 
with the worst ozone smog problems use reformulated gasoline (RFG) with an 
increased oxygen content of 2%. Seventeen states and the District of Columbia 
presently use reformulated gasoline (RFG), either because of the 
Congressional mandate, or because some areas have voluntarily chosen to use 
RFG to help achieve their clean air goals.  Methyl tertiary-butyl ether 
(MTBE) is the oxygen additive most commonly used by the petroleum industry to 
satisfy the RFG mandate.  MTBE is used in approximately 87% of RFG, with 
ethanol being the second most commonly used additive.  Of those areas listed 
below, only Milwaukee and Chicago use RFG that is primarily ethanol.


Areas Required to Use RFG

Areas That Have Voluntarily Chosen to Use RFG

Los Angeles, CA
San Diego, CA
Hartford, CT
New York City (NY-CT-NJ)
Greater Philadelphia (PA-NJ-DE-MD)
Chicago (IL-WI-IN)
Baltimore, MD
Houston, TX
Milwaukee, WI
Sacramento, CA
The State of Connecticut (that portion not part of
NYC)
The State of Delaware (that portion not part of Phil.)
The District of Columbia
Kentucky portion of Cincinnati Metro Area
Louisville, KY
Maryland - DC suburbs and two other nearby counties
The State of Massachusetts
St. Louis, MO
New Hampshire Portion of Greater Boston
The State of New Jersey (that portion not part of NYC
and Phil.)
New York counties near NYC
The State of Rhode Island
Texas - Dallas-Fort Worth area
Virginia - DC suburbs, Richmond, Norfolk-Virginia
Beach-Newport News

Since the late 1970s, MTBE also has been used by the petroleum industry in 
much smaller amounts as an octane enhancer to replace lead. Approximately 4.5 
billion gallons of MTBE are used each year in gasoline (275,000 barrels per 
day out of a total of 8.2 million barrels/day of gasoline), an increase of 
more than 3 times since Congress's 1990 mandate.

MTBE in Water

Since MTBE is very soluble in water and does not "cling" to soil well, it has 
a tendency to migrate much more quickly into water than other components of 
gasoline.  Recent testing by the United States Geological Survey show 
detections of MTBE in approximately 20% of the ground water in RFG areas, 
while there is only a 2% detection rate in non-RFG areas.  Most of these 
detections are below the levels of public health concern and are within the 
range
EPA has set for a taste and odor water advisory for MTBE at 20 to 40 parts 
per billion.  Small individual fuel spills (more than 9 million gallons of 
gasoline each year) and storm water runoff contribute to low level detections 
of MTBE in water supplies.  MTBE detections at higher concentrations usually 
result from leaking underground or aboveground fuel storage tanks and 
pipelines.  Even though significant air quality gains have been made using 
RFG, these air benefits can be maintained without using MTBE and without 
endangering the nation's water resources.

MTBE - Call to Action

In response to the growing concerns regarding MTBE in water, EPA 
Administrator Browner appointed an independent Blue Ribbon Panel of experts 
to investigate the use of oxygen additives in gasoline.  The Panel called for 
significant reduction in the use of MTBE in gasoline and recommended that 
Congress and EPA take action to lift the oxygen mandate and clean up MTBE 
contamination.  EPA fully supports the Panel recommendations and is taking 
steps to strengthen its underground storage tank, safe drinking water, 
remediation, and research programs. Upon release of the Panel's report in 
September 1999, EPA immediately began working with and encouraging Congress 
to pass legislation that responded to the Panel's recommendations.  To date, 
legislation that would solve  this problem has not moved forward.  EPA is now 
providing Congress with a framework for legislation that will give EPA the 
authority to significantly reduce or eliminate MTBE.  EPA is also taking 
action to control MTBE under the Toxic Substances Control Act (TSCA) as a 
backup to the needed Congressional action.  A TSCA rulemaking is procedurally 
burdensome and may take several years to complete.

Ethanol Use Will Expand

Current annual ethanol production is about 1.5 billion gallons.  Of this 
total, about 30 percent is used in RFG during the summer in Federally 
designated non-attainment areas.  About 20 percent of ethanol production is 
used in the winter oxygenate program in Federally designated areas where 
carbon monoxide is a problem.  The remaining 50 percent of production is used 
in conventional gasoline markets around the United States to enhance octane 
and extend fuel supplies.

With today's announcement by Secretary Glickman and Administrator Browner, 
ethanol use is expected to continue to grow.  Provided air quality gains 
achieved to date are not reduced, ethanol will continue to be used very much 
as it is used today.  In areas of the country where it is heavily used, 
ethanol will continue to be favored based on its price, availability and 
environmental benefits.   Other areas may also find ethanol to be an economic 
way to maintain air quality benefits that had been achieved with the use of 
MTBE.  Without the renewable fuels standard, some petroleum-based substitutes 
for ethanol may emerge over time.  The proposed renewable fuels standard 
would ensure that the current market for ethanol would be maintained and 
expand over time.

The renewable fuels standard will be met through the use of fuels made from a 
variety of renewable feedstocks. While most ethanol now is made from corn, 
other crops, such as wheat and sorghum, have and could also be used.  In 
addition, new conversion technologies now in development are expected to be 
available in the future for efficient conversion of cellulosic material to 
ethanol.  These technologies would make possible the broader use of a wide 
array of renewable feedstocks, including agricultural waste and residue, such 
as corn stalks, and dedicated crops, such as switchgrass.

The President has set a goal to triple U.S. use of biobased products and 
bioenergy by 2010.  The Administration's FY 2001 budget proposes an increase 
of $96 million (56 percent) to support biobased products and bioenergy 
research and development, demonstration and commercialization, and outreach 
and education activities.  The President also directed USDA's Commodity 
Credit Corporation to provide up to $100 million in FY 2000 and up to $150 
million in 2001 and 2002 in incentive payments to ethanol and other bioenergy 
producers to expand production of biobased fuels.  Payments will be made on a 
portion of the increase in agricultural commodities purchased for expanded 
bioenergy production, with smaller and cooperatively-owned facilities 
receiving higher payment rates.

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