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1999 ANNUAL REPORT
MTBE

Executive Order Details MTBE Phase Out

On March 25, 1999 Governor Davis issued an Executive Order directing state agencies to phase out the use of MTBE in gasoline by December 31, 2002. WSPA supported the Executive Order applauding the Administration for its recognition that an immediate ban on MTBE could have a devastating impact on California consumers and the economy. WSPA also stressed that federal legislation would be necessary to provide maximum flexibility for refiners to produce non-oxygenated gasoline and reduce the impacts of an MTBE phase out. Throughout the year, WSPA remained in strong support of federal legislation sponsored by Senator Dianne Feinstein (S 266) and Congressman Brian Bilbray (HR11), both of which would keep California’s strict performance standards intact while exempting California from the federal oxygenate mandate.

WSPA communicated at both the state, local and federal level to build a coalition in support of HR 11 and S 266 which included every member of the California congressional delegation, key environmental organizations, air districts, water agencies, business and taxpayer organizations and the Davis Administration.

WSPA continued its partnership with the Association of California Water Agencies (ACWA) preparing several key research reports on issues such as UST Management, Ethanol Fate and Transport, and Remediation and Treatment Technologies for MTBE in groundwater.

As the year drew to a close, WSPA was successful in helping to defeat legislative attempts to accelerate the phase out, and other measures which would have added uncertainty for refiners in meeting the Governors timetable. As of December, HR 11 awaited consideration by the full House Committee on Health and the Environment, with little prospect for passage as political pressure from the corn states intensified.

Future challenges for WSPA and California refiners will include keeping the phase out timetable intact, while also continuing advocacy to support repeal of the federal oxygenate mandate.

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