Statement of

Congressman John Shimkus

20^th District, Illinois

TO THE

SENATE AGRICULTURE, NUTRITION AND FORESTRY SUBCOMMITTEE ON RESEARCH, NUTRITION, AND GENERAL LEGISLATION

REGARDING

RECENT PROPOSALS TO PHASE OUT THE USE OF MTBE

April 18, 2000

Mr. Chairman and Members of the Subcommittee, I first want to commend Chairman Fitzgerald on his efforts and for calling today's hearing. Thank you for allowing me to testify to you today on the importance of phasing out MTBE and increasing the use of biofuels, such as ethanol.

In my tenure as a Member of Congress I have never seen a better climate to increase the use of ethanol than here and now. With gas prices at almost two dollars per gallon and corn prices just over two dollars per bushel, we can produce a product that will help our energy supply while increasing the demand for corn for farmers.

With that in mind, I am here today to discuss recent proposals to phase out the use of MTBE, a hazardous fuel additive and an ethanol competitor. As you well know, the Clinton Administration recently offered its legislative principles in response to our MTBE crisis. The Administration is asking for three legislative responses.

1) To amend the Clean Air Act to provide the authority to significantly reduce or eliminate MTBE use.

2) As MTBE use is reduced or eliminated, ensure that air quality gains are not diminished.

3) Replace the existing oxygen requirement contained in the Clean Air Act with a renewable fuel standard for all gasoline at a level that maintains the current level of renewable fuel (1.2% of the gasoline supply) and allows for sustained growth over the next decade.

While I support the first two principles, I need to express my reservations about eliminating the oxygenate requirement in reformulated gasoline. I agreed with my colleague, Representative Greg Ganske (IA-4), when he said "We want to fix real problems, like MTBE water contamination, not abandon real solutions, like oxygenated fuels." We need to understand that, mathematically, under the Administration's proposal, not as much ethanol would be used per gallon as the current law.

As a result, Congressmen Ganske, LaHood and I have introduced H.R. 4011, the "Clean Air and Water Preservation Act of 2000." Our bill currently has 37 other cosponsors and is supported by the American Farm Bureau Federation, the National Corn Growers Association and the Renewable Fuels Association. This legislation:

1) Bans MTBE within three years and urges refiners to replace it with ethanol.

2) Requires labels be placed on all pumps dispensing MTBE-blended fuel.

3) Directs US EPA to provide technical guidelines to help states remove MTBE from water.

4) Gives refiners flexibility to blend oxygen within the two percent requirement.

5) 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 forming particulate emissions).

6) Directs DOE and EPA to look for alternative sources of gasoline oxygenates.

Overall, this bill 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.

Last week, with the leadership of our two Senators, Durbin and you as well as Congressman LaHood, Mr. Chairman, we had a very profitable meeting with Secretary of Agriculture Dan Glickman, EPA Administrator Carol Browner, and Members of the Illinois and Missouri delegations. I hope that in the future we can continue to sit around the table and work on a solution to phase out MTBE and increase the demand for ethanol. Again, the time is now to make changes, and I appreciate the work that everyone has been doing. However, I must make special mention of the work that Senator Fitzgerald has done since coming to Washington. For many of our constituents in downstate, they were waiting to see how involved you might be in ag related issues, particularly ethanol. I am here to testify to them that not only have you been involved, but you have taken the lead in fighting for ethanol, in fact, you have done so much on this issue, that I think Ray and I are going to propose that we make you an honorary member of the House Renewable Fuels Caucus.

In all seriousness, though, I appreciate, and we all appreciate the work that you continue to do for us. You promised that the ag community would have another strong voice in the Senate and you haven't let us down.

Working with you, Ray and our ag community, I am confident that we will build on our efforts and ensure ethanol and biofuels will be a part of our nation's energy future.

Thank you for allowing me to testify today; and thank you, Chairman Fitzgerald, for holding this hearing.