MTBE Elimination Act

Summary: Amends the Toxic Substances Control Act to prohibit, three years after the enactment of the MTBE Elimination Act, the use of MTBE as a fuel additive.
Requires persons selling oxygenated gasoline containing MTBE at retail to be required under regulations promulgated by the Administrator to label the fuel dispensing system with a notice that specifies that the gasoline contains MTBE and provides other information concerning MTBE as determined appropriate by the Administrator.
Directs the Administrator to establish a schedule that provides for an annual phased reduction in the quantity of MTBE that may be used as a fuel additive during the three-year period beginning on this Act's enactment date.
Requires the Administrator to establish an MTBE research grants program within EPA. Authorizes grants to eligible grantees to pay the Federal cost share of research on: (1) the development of more cost-effective and accurate MTBE groundwater testing methods; (2) the development of more efficient and cost-effective remediation procedures for water sources contaminated with MTBE; or (3) the potential effects of MTBE on human health. Makes eligible for such grants Federal research agencies, national laboratories, colleges or universities, certain private research organizations, and State environmental research facilities. Authorizes appropriations.
Directs the Administrator to promulgate rules requiring a .5 pounds per square inch Reid vapor pressure allowance for all reformulated gasoline containing 3.5 percent oxygen by weight. Provides that any additional volatile organic compound emissions resulting from the use of such gasoline should be deemed to be fully offset and not calculated in determining compliance with certain Clean Air Act provisions dealing with reasonable further progress plans or demonstrations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``MTBE Elimination Act''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress finds that--
            (1) a single cup of MTBE, equal to the quantity found in 1 
        gallon of gasoline oxygenated with MTBE, renders all of the 
        water in a 5,000,000-gallon well undrinkable;
            (2) the physical properties of MTBE allow MTBE to pass 
        easily from gasoline to air to water, or from gasoline directly 
        to water, but MTBE does not--
                    (A) readily attach to soil particles; or
                    (B) naturally degrade;
            (3) the development of tumors and nervous system disorders 
        in mice and rats has been linked to exposure to MTBE and 
        tertiary butyl alcohol and formaldehyde, which are 2 metabolic 
        byproducts of MTBE;
            (4) reproductive and developmental studies of MTBE indicate 
        that exposure of a pregnant female to MTBE through inhalation 
        can--
                    (A) result in maternal toxicity; and
                    (B) have possible adverse effects on a developing 
                fetus;
            (5) the Health Effects Institute reported in February 1996 
        that the studies of MTBE support its classification as a 
        neurotoxicant and suggest that its primary effect is likely to 
        be in the form of acute impairment;
            (6) people with higher levels of MTBE in the bloodstream 
        are significantly more likely to report more headaches, eye 
        irritation, nausea, dizziness, burning of the nose and throat, 
        coughing, disorientation, and vomiting as compared with those 
        who have lower levels of MTBE in the bloodstream;
            (7) available information has shown that MTBE significantly 
        reduces the efficiency of technologies used to remediate water 
        contaminated by petroleum hydrocarbons;
            (8) the costs of remediation of MTBE water contamination 
        throughout the United States could run into the billions of 
        dollars;
            (9) although several studies are being conducted to assess 
        possible methods to remediate drinking water contaminated by 
        MTBE, there have been no engineering solutions to make such 
        remediation cost-efficient and practicable;
            (10) the remediation of drinking water contaminated by 
        MTBE, involving the stripping of millions of gallons of 
        contaminated ground water, can cost millions of dollars per 
        municipality;
            (11) the average cost of a single industrial cleanup 
        involving MTBE contamination is approximately $150,000;
            (12) the average cost of a single cleanup involving MTBE 
        contamination that is conducted by a small business or a 
        homeowner is approximately $37,000;
            (13) the reformulated gasoline program under section 211(k) 
        of the Clean Air Act (42 U.S.C. 7545(k)) has resulted in 
        substantial reductions in the emissions of a number of air 
        pollutants from motor vehicles, including volatile organic 
        compounds, carbon monoxide, and mobile-source toxic air 
        pollutants, including benzene;
            (14) in assessing oxygenate alternatives, the Blue Ribbon 
        Panel of the Environmental Protection Agency determined that 
        ethanol, made from domestic grain and potentially from recycled 
        biomass, is an effective fuel-blending component that--
                    (A) provides carbon monoxide emission benefits and 
                high octane; and
                    (B) appears to contribute to the reduction of the 
                use of aromatics, providing reductions in emissions of 
                toxic air pollutants and other air quality benefits;
            (15) the Department of Agriculture concluded that ethanol 
        production and distribution could be expanded to meet the needs 
        of the reformulated gasoline program in 4 years, with 
        negligible price impacts and no interruptions in supply; and
            (16) because the reformulated gasoline program is a source 
        of clean air benefits, and ethanol is a viable alternative that 
        provides air quality and economic benefits, research and 
        development efforts should be directed to assess infrastructure 
        and meet other challenges necessary to allow ethanol use to 
        expand sufficiently to meet the requirements of the 
        reformulated gasoline program as the use of MTBE is phased out.
    (b) Sense of Congress.--It is the sense of Congress that the 
Administrator should provide technical assistance, information, and 
matching funds to help local communities--
            (1) test drinking water supplies; and
            (2) remediate drinking water contaminated with methyl 
        tertiary butyl ether.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Eligible grantee.--The term ``eligible grantee'' means 
        any of the following:
                    (A) A Federal research agency.
                    (B) A national laboratory.
                    (C) A college.
                    (D) A university.
                    (E) A research foundation maintained by a college 
                or university.
                    (F) A private research organization with an 
                established and demonstrated capacity to perform 
                research or technology transfer.
                    (G) A State environmental research facility.
            (3) MTBE.--The term ``MTBE'' means methyl tertiary butyl 
        ether.

SEC. 4. USE AND LABELING OF MTBE AS A FUEL ADDITIVE.

    Section 6 of the Toxic Substances Control Act (15 U.S.C. 2605) is 
amended by adding at the end the following:
    ``(f) Use of Methyl Tertiary Butyl Ether.--
            ``(1) Prohibition on use.--Effective on the date that is 3 
        years after the date of enactment of this subsection, a person 
        shall not use methyl tertiary butyl ether as a fuel additive.
            ``(2) Labeling of fuel dispensing systems for mtbe.--Any 
        person selling oxygenated gasoline containing methyl tertiary 
        butyl ether at retail shall be required under regulations 
        promulgated by the Administrator to label the fuel dispensing 
        system with a notice that--
                    ``(A) specifies that the gasoline contains methyl 
                tertiary butyl ether; and
                    ``(B) provides such other information concerning 
                methyl tertiary butyl ether as the Administrator 
                determines to be appropriate.
            ``(3) Regulations.--As soon as practicable after the date 
        of enactment of this subsection, the Administrator shall 
        establish a schedule that provides for an annual phased 
        reduction in the quantity of methyl tertiary butyl ether that 
        may be used as a fuel additive during the 3-year period 
        beginning on the date of enactment of this subsection.''.

SEC. 5. GRANTS FOR RESEARCH ON MTBE GROUND WATER CONTAMINATION AND 
              REMEDIATION.

    (a) In General.--
            (1) Establishment.--The Administrator shall establish a 
        MTBE research grants program within the Environmental 
        Protection Agency.
            (2) Purpose of grants.--The Administrator may make a grant 
        under this section to an eligible grantee to pay the Federal 
        share of the costs of research on--
                    (A) the development of more cost-effective and 
                accurate MTBE ground water testing methods;
                    (B) the development of more efficient and cost-
                effective remediation procedures for water sources 
                contaminated with MTBE; or
                    (C) the potential effects of MTBE on human health.
    (b) Administration.--
            (1) In general.--In making grants under this section, the 
        Administrator shall--
                    (A) seek and accept proposals for grants;
                    (B) determine the relevance and merit of proposals;
                    (C) award grants on the basis of merit, quality, 
                and relevance to advancing the purposes for which a 
                grant may be awarded under subsection (a); and
                    (D) give priority to those proposals the applicants 
                for which demonstrate the availability of matching 
                funds.
            (2) Competitive basis.--A grant under this section shall be 
        awarded on a competitive basis.
            (3) Term.--A grant under this section shall have a term 
        that does not exceed 4 years.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2001 through 2004.

SEC. 6. REFORMULATED GASOLINE.

    (a) Congressional Findings.--The Congress finds that:
            (1) Section 211(k) of the Clean Air Act requires the use of 
        reformulated gasoline in the nation's worst ozone nonattainment 
        areas.
            (2) In order to promote more complete fuel combustion, the 
        Clean Air Act requires reformulated gasoline to contain a 
        minimum of 2.0 percent oxygen.
            (3) The presence of oxygen in a fuel is beneficial in 
        reducing volatile organic compound, carbon monoxide, toxic air 
        pollutant emissions.
            (4) The use of ethanol at the typical blending rate of 10 
        percent by volume equates to a 3.5 percent oxygen content.
            (5) This increased oxygen content, while providing the 
        intended benefits of reducing volatile organic compound and 
        toxic air pollutant emissions, results in additional carbon 
        monoxide emission reductions.
            (6) The National Research Council found that carbon 
        monoxide in exhaust emissions from motor vehicles contributes 
        about 20 percent to the overall ozone forming potential of 
        motor-vehicle emissions.
            (7) Reducing carbon monoxide emissions will have a positive 
        impact on ozone air quality.
            (8) Blending ethanol into an unoxygenated reformulated 
        gasoline base will increase the volatility of the resulting 
        blend.
            (9) In order to account for this volatility increase, 
        gasoline producers must, at increased expense, reduce the 
        volatility of the unoxygenated reformulated gasoline base.
            (10) The benefits of reduced carbon monoxide emissions on 
        ozone air quality have not been fully considered in the USEPA's 
        reformulated gasoline compliance methodology, the complex 
        model.
            (11) Scientific analyses detailing the carbon monoxide and 
        ozone air quality benefits of reformulated gasoline blends 
        containing 3.5 percent oxygen have concluded that a minimum of 
        a 0.5 pounds per square inch Reid vapor pressure allowance is a 
        reasonable gasoline volatility offset for determining the 
        proper impact of such gasoline,
    (b) RVP Allowance.--In order to account for the positive impact of 
reduced carbon monoxide emissions on ozone air quality and because of 
the positive environmental impact resulting from the use of oxygenates 
in gasoline, the Administrator of the Environmental Protection Agency 
is directed to promulgate rules requiring a 0.5 pounds per square inch 
Reid vapor pressure allowance for all reformulated gasoline containing 
3.5 percent oxygen by weight.
    (c) Offset.--Notwithstanding any other provision of law, any 
additional volatile organic compound emissions resulting from the use 
of such reformulated gasoline should be deemed to be fully offset and 
thus not calculated in determining compliance with any of the 
provisions in section 182 of the Clean Air Act (42 U.S.C. 7511a), 
dealing with Reasonable Further Progress plans or demonstrations.