Senate Agriculture Subcommittee on

Research, Nutrition, and Legislation Field Hearing

April 18, 2000

Springfield, Illinois

Good Morning. I am Joe Hampton, Director of the Illinois Department of Agriculture. I am pleased to be here today along with Director Skinner of the Illinois Environmental Protection Agency. His leadership efforts have helped in moving the Clinton Administration to propose a ban on methyl tertiary butyl ether (MTBE). This is a step in the right direction to help protect our families, and communities, and our environment.

An unexpected side effect of the Federal Reformulated Gasoline Program (RFG) has been groundwater contamination caused by leakage of MTBE-blended gasoline. It is a colorless liquid, that smells like turpentine, contaminates our groundwater, and because it is non-biodegradable and soluble in water, it should be banned.

MTBE has entered underground wells and drinking water supplies across the country and continues to cause future environmental problems and costs. I am glad the Clinton Administration has proposed rectifying the MTBE problem, but I am very concerned about their proposal in two areas. The first one is the rescinding of the oxygenate requirement in gasoline, and my second concern is the new renewable fuel program as it is proposed.

While the nation's air pollution has improved with the Clean Air Act oxygenate requirement, increased negative national attention directed toward MTBE is allowing critics to question the oxygenate standard. Your bill Senator Fitzgerald, S. 2233, not only recognizes the problems with MTBE in Illinois, but also the importance in maintaining our air quality with an oxygenate requirement. I want to also commend Senator Durbin for his co-sponsorship of this bill and pledge our support to both of you for its passage.

As you know, Governor Ryan, other Illinois officials, organizations, some of which are here today, and the 23-member Governor's Ethanol Coalition have repeatedly asked the White House and the US EPA to maintain a role for ethanol in the RFG program. With Illinois farmers facing some of the lowest commodity prices in years, there needs to be an assurance for ethanol in the future and second, a need to increase that market share. Ethanol, whether produced from corn or other bio-fuels should not be overlooked, because it benefits the environment, the agricultural economy, and is a bio-based renewable fuel of the future.

Ethanol-blended gasoline has been projected to reduce carbon monoxide emissions by 780 tons and volatile organic compounds by 112 tons each day in the Chicago region. More than 95% of the gasoline sold in the Chicago area contains 10% ethanol. This is a substantial market for us here in Illinois and for the farmers of this state.

Illinois Corn Growers, if ethanol or the oxygenate requirement is eliminated, would forfeit a market of at least 160 million gallons of ethanol and 70 million bushels of grain usage. That elimination could translate into investment losses by the ethanol industry in excess of one billion dollars, the loss of 800 jobs in ethanol plants operations, 4,000 jobs in industry-related jobs, and a decrease in the national market price of corn by 25 cents per bushel.

Our Illinois legislators should also be complimented. Their recent efforts to pass a "consumer right to know bill" on what is being purchased at the gasoline pumps is the right first step to address MTBE. This Bill will require a retail motor fuel gas pump dispensing fuel containing 2% MTBE to display a label identifying the MTBE. This piece of legislation now awaits Governor Ryan's signature.

I want to again thank Director Skinner for his tireless efforts in this endeavor and you, Senator Fitzgerald, for your leadership here today. In closing, Iowa's Representative Greg Gankse best said, "The solution is simple: If you want clean water ban MTBE. If you want clean air, use oxygenated fuel. If you want both clean water and clean air, use ethanol."

Thank you for your time today. I will try and answer any questions you might have.