April 12, 2005

Dear Representative,

We urge you to support the amendments by Representative Capps to strike “safe harbor” and transition assistance for MTBE producers from the Energy Policy Act of 2005. These provisions, unless excised from the energy bill once and for all, will authorize $1.75 billion in government giveaways for the MTBE industry and may leave taxpayers liable for billions more due to MTBE contamination of groundwater nationwide. We cannot let Congress shift the financial burden of MTBE clean-up onto the American taxpayer.

MTBE contamination is a problem that affects hundreds of communities in dozens of states, and will cost billions to address. The safe harbor provision for MTBE manufacturers included in the energy bill now before the House Energy and Commerce Committee will shift the liability for MTBE contamination away from those parties responsible. This creates an unfunded mandate – one that will inevitably be borne by local taxpayers.

Section 1503 adds insult to injury by authorizing $1.75 billion in transition assistance for MTBE

producers. This fund subsidizes MTBE manufacturers to convert their plants into facilities that can produce other fuel additives. This provision makes the government responsible for funding what should be considered a normal business expense, thus undermining natural market forces.

At a time of record federal deficits, Congress can ill-afford to hand out bundles of taxpayer money to a well-heeled industry. MTBE manufacturers have helped create a nationwide problem that communities and states have been forced to address; we should not let Congress waive liability out of hand.

Again, we urge you to stand up for fiscal responsibility by supporting the Capps amendments to strike 1503 and eliminate safe harbor from the energy bill. If you would like more information, please contact Evan Berger at (202) 546-8500 x111.

Sincerely,

Jill Lancelot
President / Co-founder