http://www.enn.com/news/2004-02-17/s_13168.asp

How Bush reversed regulatory effort on polluting gas additive

Tuesday, February 17, 2004

By Pete Yost, Associated Press

WASHINGTON - The Bush administration quietly shelved a proposal to 
ban a gasoline additive that contaminates drinking water in many 
communities, helping an industry that has donated more than $1 
million to Republicans.

The Environmental Protection Agency's decision had its origin in the 
early days of President Bush's tenure when his administration decided 
not to move ahead with a Clinton-era regulatory effort to ban the 
clean-air additive MTBE. The proposed regulation said the 
environmental harm of the additive leaching into ground water 
overshadowed its beneficial effects to the air. The Bush 
administration decided to leave the issue to Congress, where it has 
bogged down over a proposal to shield the industry from some lawsuits.

That initiative is being led by House Majority Leader Tom DeLay, 
R-Texas. A draft of the proposed regulation that former President 
Clinton's EPA sent to the White House on its last full day in office 
in January 2001 said, "The use of MTBE as an additive in gasoline 
presents an unreasonable risk to the environment."

The EPA document went on to say that "low levels of MTBE can render 
drinking water supplies unpotable due to its offensive taste and 
odor," and the additive should be phased out over four years. "Unlike 
other components of gasoline, MTBE dissolves and spreads readily in 
the ground water ... resists biodegradation, and is more difficult 
and costly to remove."

People say MTBE-contaminated water tastes like turpentine. In Santa 
Monica, Calif., the oil industry will pay hundreds of millions of 
dollars because the additive contaminated the city's water supply.

"We're the poster child for MTBE, and it could take decades to clean 
this up," said Joseph Lawrence, the assistant city attorney. In 2000, 
the MTBE industry's lobbying group told the Clinton administration 
that limiting MTBE's use by regulation "would inflict grave economic 
harm on member companies."

Three MTBE producers account for half the additive's daily output. 
The three contributed $338,000 to George W. Bush's presidential 
campaign, the Republican Party, and Republican congressional 
candidates in 1999 and 2000 - twice what they gave Democrats, 
according to the Center for Responsive Politics.

Since then, the three producers have given just over $1 million to 
Republicans. The producers are Texas-based Lyondell Chemical and 
Valero Energy and the Huntsman companies of Salt Lake City.

"This is a classic case of the Bush administration helping its 
campaign contributor friends at the expense of public health," said 
Frank O'Donnell, executive director of the Clean Air Trust, a 
Washington-based environmental group.

Huntsman spokesman Don Olsen, echoing comments by other MTBE 
producers, said, "We were not a huge campaign contributor, and this 
has absolutely nothing to do with campaign donations. It has to do 
with good public policy."

The industry says it has become a victim in a Washington power struggle.

"Because of MTBE there has been a marked improvement in air quality 
and reduction in toxics in the air," Olsen said. "Because of leaking 
underground storage tanks in some relatively few instances, MTBE 
found its way into places it shouldn't be. But that has nothing to do 
with the product, which has done exactly what it was designed to do."

Said Valero Energy spokeswoman Mary Rose Brown, "It would have been 
impossible to fulfill the requirements of the Clean Air Act without 
MTBE."

A daily Washington newsletter disclosed the existence of the draft 
rule shortly after Bush's inauguration; outside the industry, few 
people noticed. At the direction of White House chief of staff Andrew 
Card and Mitch Daniels, then the White House's budget director, all 
government agencies withdrew their pre-Inauguration Day draft 
regulations.

The EPA withdrew agency rules, including the MTBE one, in 
mid-February 2001, White House budget office spokesman Chad Kolton 
said. In subsequent months, agencies rewrote many Clinton-era 
regulatory proposals and went public with them. However, the proposed 
MTBE regulation never surfaced.

"As legislation looked more promising in 2002 and 2003, we focused 
our energies on supporting language in the Senate's energy bill," 
Jeffrey Holmstead, the EPA's assistant administrator for air quality, 
said in a statement Friday. "We have not ruled out the possibility of 
seeking a solution" by regulation, Holmstead said.

The EPA favors a phaseout of MTBE through legislation. But the 
legislation has stalled, and it no longer calls for a ban in four 
years.

Sen. John Kerry of Massachusetts, the front-runner for the Democratic 
presidential nomination, issued a statement Sunday calling the MTBE 
matter a case of the Bush administration "yet again putting special 
interests over America's interest." He pledged to "take on the big 
oil and gas companies and fight for clean water and a clean 
environment."

Rep. Henry Waxman, D-Calif., said, "If the White House had not 
rejected this regulation, MTBE would be virtually eliminated by now 
and our groundwater would be protected." Waxman is the ranking 
Democrat on the House Government Reform Committee.

On their own, 17 states banned the additive and dozens of communities 
are suing the oil industry.

"Nobody's talking about the trial lawyers campaign contributions to 
their supporters in Congress, and its the trial lawyers who are the 
force behind these unjustified lawsuits," said Brown of Valero Energy.

To regulate MTBE, the EPA would have to use the Toxic Substances 
Control Act, which the agency considers cumbersome and unwieldy.

MTBE industry representative Scott Segal said, "It took EPA a decade 
to develop enough data to justify issuing a regulation for asbestos" 
under the law. "Even then, the courts still blocked it."

Bob Perciasepe, an EPA official during the Clinton administration, 
said a regulatory approach would have provided "a pressure point" to 
pass legislation.

Georgetown University law professor Lisa Heinzerling said regulating 
MTBE would be difficult, but "if we can't use the Toxic Substances 
Control Act to regulate MTBE, which has contaminated water supplies 
all over the country, then what can you use it for?"

Source: Associated Press





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