News Release (C-20-97)

555 Capitol Mall, Suite 525 Sacramento, CA 95814 (916) 324-9670 FAX (916) 445-5563

For Immediate Release (C-20-97) Contact: Communications Office (916) 324-9670 October 1998

California Update: Actions to Address MTBE Contamination (October 1998)

California’s environmental and energy agencies today updated their investigations and actions to ensure protection of the state’s drinking water supply from contamination by gasoline and gasoline additives like methyl tertiary butyl ether, or MTBE.

These efforts stem from legislation signed in 1997 and 1998 by Governor Pete Wilson:

AB 592 (Kuehl) – Requires State Fire Marshall, using a Geographical Information System (GIS), to (1) identify pipelines within 1,000 ft of a public drinking water well, and (2) adopt pipeline regulations for wellhead protection for drinking water wells.

SB 1189 (Hayden) – Requires: (1) reporting of pipeline ruptures, accidents, (2) State Water Resources Control Board (SWRCB) to establish GIS mapping for tanks/discharges, (3) Proposition 65 evaluation of MTBE, and (4) establishing secondary and primary drinking water standards; and authorizes the SWRCB to pay for treatment of drinking water systems from the Underground Storage Tank (UST) Fund.

SB 521 (Mountjoy) – Directs the University of California to evaluate the human health and environmental risks and benefits, if any, of MTBE with a report of findings due to the Governor by January 1, 1999. Requires the Governor to certify whether there is a risk to human health or the environment from using MTBE in gasoline, and to take appropriate action to protect public health and the environment if there is such a risk. Requires cleanup of MTBE discharges to water and provides that no public water system, or its customers, shall be responsible for remediation or treatment costs of water contaminated by MTBE.

AG 1491 (Cunneen) – Prohibits fuel deliveries to uncertified USTs after January 1, 1999.

SB 2198 (Sher) – Created the Drinking Water Treatment and Research Fund of $20 million to be used by public water systems for treatment of MTBE-contaminated groundwater and surface water for drinking water purposes. A portion of the funds may be used for research into treatment technologies.

In his signing message to the Members of the California Legislature on AB 592, SB 1189, and SB 521, Governor Wilson directed additional actions to ensure that state government: (1) reviewed the effectiveness state and federal standards for USTs that take effect in 1998 (2) evaluated surface water bodies serving drinking water sources, and (3) reviewed the viability of alternative oxygenates. By including the directives below in his message, Governor Wilson said the state would be able to comprehensively address the possible human and environmental health issues associated with oxygenates:

The SWRCB is to review existing databases of UST contamination sites and determine if there is leak history associated with UST systems meeting the 1998 federal and state standards; and if so, identify appropriate measures that would assure the prevention and detection of oxygenate releases from retail marketing facilities.

The SWRCB is to evaluate refueling facilities and practices at marinas located on drinking water sources, and identify any further upgrades that should be made to eliminate releases to the water body.

The California Energy Commission (CEC) is to evaluate MTBE and alternative oxygenates, including alternatives that could be used in lieu of MTBE.

The CEC, with the Air Resources Board (ARB), SWRCB, and the Department of Health Services (DHS), is to review the relative air quality effects and potential environmental risks and benefits of alternative oxygenates and the present and future availability of oxygenates.

Current Situation

There is continuing concern about MTBE contamination of California’s water supplies. Of 4,200 drinking water sources sampled by the Department of Health Services, 57 sources, including 14 reservoirs (approximately one percent of total sources monitored), have reported detectable amounts of MTBE. While few drinking water sources have been affected, there has been extensive public concern about whether additional supplies could be affected, especially given the solubility of MTBE in water.

Current contamination problems are being aggressively pursued, including cleanup actions in such areas as Santa Monica and Marysville. At Glenville, in Kern County, potable water is being provided to residents to replace a very localized contamination. To assist in these and other cleanup actions, Governor Wilson approved $20 million in state funding to assist with MTBE cleanup costs (AB 592, Kuehl).

The main regulatory action to prevent future contamination of water supplies by MTBE or any other petroleum additives will be completed this year. By December 22, 1998, all underground storage tanks must be replaced or upgraded with leak prevention and monitoring systems.

Implementation of a "zero-tolerance gasoline contamination policy" for leaking underground storage tanks will prohibit new fuel deliveries to tanks that have not complied with the state and federal tank replacement rules (AB 1492, Cunneen).

For surface waters, the Air Resources Board is now considering regulations that will significantly reduce discharge of petroleum products during normal boating operations, the main source of reported MTBE contamination in surface reservoirs.

While these actions are being taken to prevent future contamination, California regulations are already in place to protect air quality without requiring the use of MTBE. The State’s clean fuel regulations allow refiners to produce gasoline with alternative oxygenates, and in fact without any oxygenates as is currently being done by some refineries. Today’s proposed actions by ARB will increase that flexibility.

Federal impediments to concerns about MTBE in water supplies continue. Bipartisan efforts were made this year to exempt California from federal oxygenate requirements as long as clean-air benefits are realized (S. 575, Feinstein and HR 630, Bilbray). Refiners have proven they can make the world’s cleanest gasoline without any oxygenates, yet it cannot be sold in such markets as Sacramento and Los Angeles because of the specific requirements of federal law. The vast majority of the California Congressional delegation supports both bills, which are expected to be reintroduced next year.

New Reports Released October 23, 1998

California Energy Commission report: "Supply and Costs of Alternatives to MTBE in Gasoline"

This report evaluated the consumer cost and fuel supply implications of different oxygenate requirements including potential phasing out MTBE. The report concludes that immediate removal of MTBE from gasoline would be disastrous to California’s consumers and the economy, creating up to a 40 percent shortfall of supplies. The report evaluated the use of five alternatives to MTBE, including the immediate elimination option. Two options, particularly when considered over a six year attainment period, define impacts of as little as $.03 per gallon at the pump. A public hearing on the report is set for November 13, 1998 at the Energy Commission.

California Energy Commission Report: Attainment Goals for Replacement and Upgrade of all Underground Storage Tanks (UST)

By December 22, 1998, all USTs in California must be upgraded to ensure no leaks of fuels to groundwater. Non-complying tanks will no longer be able to receive fuel after January 1, 1999. This report looks at how many gasoline tanks have been replaced on a county by county basis. Results indicate that except for some remote locations in some rural areas, California’s motorists will have uninterrupted access to gasoline.

Cal/EPA’s State Water Resources Control Board Report: Attainment of Federal Compliance Standards for Upgrading Underground Storage Tanks

This report reviews progress on complying with the federal law to replace underground storage tanks by December 22, 1998. While the report determines an overall compliance rate of 52 percent, there is not expected to be a critical supply problem for motorists as many of those tanks not yet replaced include those not in use, and others used for farm, fleet and private storage which may not be planned for immediate use. This report also provides an initial review of reported piping problems with new USTs. The conclusions to date are that better leak detection systems may be needed, especially in the case of single-walled tanks, and that dispenser islands may require better secondary containment devices.

Cal/EPA’s Air Resources Board Staff Report: Emissions Control Regulations for Marine Engines (2-Stroke Outboards and Jet Ski’s)

The staff report recommends regulations to require improved emissions performance by two-stroke watercraft engines by 75 percent in 2005, affecting new models starting in 2001. While the proposed rule was not prompted by the presence of MTBE in water, if approved it is expected to benefit not only air quality but also surface water pollution from excessive gasoline and oil. For example, jet ski engines typically emit unburned up to 25 percent of their fuel into the environment. The ARB will consider the regulation at its December 10, 1998 meeting.

Other Related Activities

Cal/EPA’s Air Resources Board Staff Report: Proposal to Increase the Allowable Oxygen Content of Reformulated Gasoline from 2.7% to 3.5%

This proposal, released in August, would allow the greater use and substitution of ethanol as an oxygenate for up to ten percent in gasoline blends. The proposal is set for consideration by the ARB at its December 10, 1998 meeting.

Cal/EPA’s Office of Environmental Health Hazard Assessment Report: Evidence of the Carcinogenicity and Reproductive Toxicity of MTBE

OEHHA is currently reviewing studies of MTBE, and will include the studies by the University of California when they are released (SB 521, Mountjoy), and will bring this information before the Proposition 65 Science Advisory Board for their consideration as to whether or not MTBE causes cancer or reproductive harm (SB 1189, Hayden). The two committees of the Science Advisory Board will convene public meetings on December 9^th and 10^th to make their recommendations and findings on MTBE. If the State’s qualified experts conclude that MTBE has been clearly shown to cause cancer and/or reproductive toxicity, it would be placed on the Governor’s Proposition 65 List of chemicals known to the State to cause cancer and reproductive toxicity. One year after listing, clear and reasonable warnings would have to be given when exposures exceed the Proposition 65 no significant risk level.

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1998 Releases | Archived Press Releases