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Why is Congress Making the Public Pay $29 Billion for the MTBE Crisis?

By Paul Granger, P.E.

The widespread use of methyl tertiary butyl ether (MTBE) in reformulated gasoline and its impact on water supply systems throughout the country has raised serious concerns among water purveyors. MTBE was touted by the petroleum industry as the panacea for providing clean air. The promulgation of the 1990 Clean Air Act by the EPA resulted in the widespread use of MTBE as an additive in reformulated gasoline for reducing carbon monoxide emissions from motor vehicles. MTBE became the choice of gasoline companies based on its low cost and ease of production, thereby increasing reformulated gasoline profits. Industry representatives have been misleading the public to believe that the EPA mandated the specific use of the chemical.

MTBE has unique properties that allow it to travel far into the groundwater supply and make it difficult and expensive to remove with traditional treatment methods. The probable carcinogen, when released into the water supply, can impart an unpleasant taste and odor. It is so noxious that some people can detect its foul taste and odor at incredibly low levels, in some cases at only 8 parts per billion. In locations across the country, consumers are already paying increased water rates for this costly cleanup process.

Unfortunately, the unpleasant odor now extends deep into the halls of Congress. Under the guise of passing new energy legislation, congressional leaders are making a deal that would cost water consumers across the nation billions of dollars to protect the producers and distributors of MTBE. Water suppliers and municipal authorities across the country are working very hard to stop the bill while MTBE manufacturers are making every effort to pass legislation that would exempt them from MTBE cleanup liability. Presently, the legislation has been blocked thanks to the leadership of New York Senator Charles Schumer, who led the effort to filibuster the Energy Bill during December, 2003. Unfortunately, efforts are still underway in Congress to pass this initiative, even though it would impose devastating cleanup costs on communities across our nation.

The chemical that is supposed to be cleaning the air is now swiftly making its way into our drinking water supply. Tens of thousands of gasoline spills and leaking underground tanks have caused MTBE contamination problems in many major communities throughout the nation. MTBE spreads rapidly through the environment and often pollutes nearby properties or water supply wells. The problem is widespread and growing.

The American Water Works Association estimates that water suppliers are already faced with a national cost exceeding $29 billion to prevent, clean up, and treat MTBE contamination. For just the state of New York, more than 14,000 gasoline spills reportedly don’t meet state cleanup standards. The cost of remediating these problems is unprecedented. Supply wells polluted with MTBE can require treatment systems costing millions of dollars in capital construction costs and tens of millions of dollars in long-term operation and maintenance costs. Ultimately, this cost will be passed on to the taxpayer. These are costs that water suppliers and consumers should not have to pay.

During November 2000, the MTBE threat to my water utility became a sudden and unwelcome reality when a large spill containing a very high concentration of MTBE was found within 450 feet of a vital drinking water supply well facility. The spill will eventually impact two critical supply wells. At this time, the polluter has not taken action to clean up the impacted aquifer even though it was reported to state environmental authorities during 1997. What is unfortunate and disturbing is that more than 7 years has elapsed, and the contamination continues to migrate unabated toward our vital water supply facility.

Due to the failure of the polluter to clean up the contaminated groundwater and lack of state regulatory agency assistance, the Plainview Water District was forced to undertake legal action against the polluter as a last resort. This action was taken to ensure cleanup of the spill and to properly shift the enormous financial burden of wellhead treatment to the responsible party rather than the ratepayer.

Passage of "safe harbor" legislation would hinder efforts by water suppliers, property owners, and government authorities to hold MTBE manufacturers liable for their fair share of cleanup costs. Drinking water ratepayers and taxpayers should not have to bear financial responsibility for cleaning up MTBE problems they didn’t cause. Communities afflicted with MTBE contamination have a right to hold accountable those responsible for polluting our drinking water supply. Despite the severe financial consequences that will be imposed on water consumers, efforts are still underway in Congress to pass energy legislation with an MTBE liability safe harbor. As long as the bill includes the egregious MTBE provision, our lawmakers must continue to support a filibuster on the measure. Congress has a moral and fiduciary responsibility to protect the public interest by holding the industry that created the pollution crisis fully accountable.

Paul Granger, P.E. is superintendent of the Plainview Water District, which provides drinking water to residents of Long Island, New York. He has testified on MTBE to the Senate Subcommittee on Clean Air, Climate Change, and Nuclear Safety.

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