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Date: Fri, 17 Mar 2000 02:10:00 -0800 (PST)
From: jeffrey.keeler@enron.com
To: james.prentice@enron.com, stanley.horton@enron.com, ted.robinson@enron.com, 
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Subject: MTBE Ban, Pro-ethanol legislation introduced
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Rep. Greg Ganske yesterday introduced legislation to ban MTBE and promote 
ethanol.  He will most certainly offer this proposal as an amendment to 
whatever legislation comes before the House Commerce Committee for a 
markup.   

As there have been a number of controversial issues to consider in the 
debate, the House Commerce and Senate Environment Commitees have both had 
difficulty settling on dates for their respective mark-ups of RFG 
legislation, but we do expect both to try to move forward in the coming 
months.

A copy of the legislation and Rep. Ganske's press release is attached.

 - ganske_009.pdf


NEWS RELEASE

FOR IMMEDIATE RELEASE
March 16, 2000

Reps. Ganske and Shimkus Introduce Legislation to Ban MTBE and Promote Ethanol

Representatives Greg Ganske (R-IA) and John Shimkus (R-IL)today introduced 
the Clean Air and Water Preservation Act of 2000 to ban the gasoline additive 
methyl tertiary butyl ether (MTBE) and promote renewable ethanol.  They were 
joined on the bill by 21 other Members of
Congress.

MTBE and ethanol are added to gasoline to reduce harmful emissions. MTBE is 
responsible for widespread groundwater contamination. Ethanol, however, is a 
clean, renewable additive that does not contaminate water.

"We do not have to chose between clean air and clean water.  With renewable 
ethanol, not MTBE, we can have both," Ganske said.

"This bill clearly addresses the problem of MTBE contaminating water," Ganske 
said.  "Not only does it eliminate MTBE in gasoline within three years, it 
directs the EPA to help states figure out how to get this chemical out of 
their drinking water supplies."

"MTBE has caused the contamination of groundwater in sites around the 
country, including my District. However, there is a safe and clean 
alternative - ethanol," Shimkus said. "The Clean Air and Water Preservation 
Act will provide cleaner air by reducing harmful auto emissions and will 
provide cleaner water, as ethanol spillage does not contaminate
groundwater."

"The Clean Air and Water Preservation Act of 2000 gives refiners the 
flexibility they have sought within the Clean Air Act by allowing them to 
average their oxygen content," Ganske said.  "While giving them this 
flexibility, we have also raised the bar on environmental quality."

The Clean Air Act Amendments of 1990 required specific reductions in harmful 
emissions.  With oxygenated fuels in the Reformulated Gasoline Program, 
refiners have exceeded these requirements. The bill raises the standards to 
take into consideration these lower emissions levels, resetting the bar at a 
more environmentally sound level.

In promoting the bill, Ganske cited a USDA study of the agriculture impact of 
replacing MTBE with ethanol.  The study found that doing so would generate an 
extra $1 billion in on-farm cash receipts each year.  In addition, it would 
improve the price of corn by 14 cents per bushel each year for at least the 
next ten years.

"The Clean Air and Water Preservation Act of 2000 is a sensible environmental 
and agricultural bill," Ganske said.  "It is exceptionally important 
considering our farmers are entering their third year of depressed commodity 
prices and Congress last year appropriated billions in emergency farm 
support."

The Clean Air and Water Preservation Act of 2000 does the following:

* Bans MTBE within three years and urges refiners to replace it with ethanol.
* Requires labels be placed on all pumps dispensing MTBE-blended fuel.
* Directs EPA to provide technical guidelines to help states remove MTBE from 
water.
* Gives refiners flexibility to blend oxygen within the 2% requirement.
* Prohibits environmental backsliding by raising the standards on emissions 
reductions and prohibiting an increase in the use of gasoline aromatics 
(which can lead to cancer-causing particulate emissions).
* Directs DOE and EPA to look for alternative sources of gasoline oxygenates.


"Congress must make a commitment to environmental quality, renewable energy 
and American agriculture.  This bill does all three,"  Ganske said.  "It will 
help cleanup MTBE contaminated water supplies.  It will preserve the clean 
air accomplishments of the past decade.  And it will provide a renewable 
energy source which will decrease our dependence on foreign oil and improve 
our agricultural economy.  The Clean Air and Water Preservation
Act of 2000 is a good bill for all involved."

Original Cosponsors:
> John Shimkus (IL)
> Bill Barrett (NE)
> Lane Evans (IL)
> Jim Leach (IA)
> Leonard Boswell (IA)
> Tom Latham (IA)
> David Minge (MN)
> Ray LaHood (IL)
> Jim Ramstad (MN)
> Lee Terry (NE)
> David Phelps (IL)
> William Lipinski (IL)
> Jerry Weller (IL)
> Roy Blunt (MO)
> Pat Danner (MO)
> Thomas Ewing (IL)
> Kenny Hulshof (MO)
> Fred Upton (MI)
> John Thune (SD)
> Bruce Vento (MN)
> Sherwood Boehlert (NY)
> Don Manzullo (IL)
