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February 4, 2002

Bills would phase out use of suspect gasoline additive

Some regard MTBE as a pollutant, perhaps causing cancer; legislation could be a boon to corn producers.

By Dena Tackett - February 01, 2002

Friendly to the environment and beneficial to corn farmers.

That's how supporters describe legislation being considered by both chambers of the Indiana General Assembly.

Senate Bill 381 and House Bill 1338, which won committee approval this week, would phase out the use of methyl tertiary-butyl ether, or MTBE, in gasoline by July 23, 2004. The measures would require that gas sold or used in Indiana contain no more than 0.5 percent of MTBE.

The substance has been added to gas since the late 1970s to make cars run more efficiently, but its use has been limited in urban areas plagued with smog. Federal law requires these areas to use petroleum-based MTBE or corn-produced ethanol to improve air quality. Two northwest Indiana counties -- Lake and Porter -- have been selling this reformulated gas since 1995.

But concerns about MTBE contaminating water supplies have prompted 16 states to either ban or consider banning the additive. Illinois lawmakers voted last year to stop using MTBE by mid-2004.

Small amounts of MTBE in groundwater produce a foul smell; researchers are studying whether the substance causes cancer.

Rey Barreto, a Purdue University professor who has studied MTBE's effects, questions how effective this legislation would be. He believes that even 0.5 percent of MTBE in gas can contaminate water supplies.

Barreto argues there's no way to keep the additive out of gasoline because Indiana shares storage tanks and pipelines with Kentucky and Michigan. Neither of those states limits its use.

"Trying to fix it at the state level is impossible," Barreto said. "It has to be addressed at the national level, or you're just kidding yourself."

Still, the legislation has a long list of supporters, including environmental groups and petroleum companies. The most enthusiastic supporters are the state's more than 30,000 corn growers, who could make more money if the legislation becomes law.

One of the chief sponsors of Senate Bill 381, Sen. Robert Jackman, R-Milroy, says he's confident that increased demand for corn will raise crop values, which will help farmers in his central Indiana district.

"I thinks its effect on agriculture would be absolutely phenomenal," said Jackman, who rents land that he owns to corn farmers.

Most experts agree that increasing the use of ethanol wouldn't affect the price Hoosiers pay at the pump. Since Indiana is a corn-producing state, one-third of the state's gas companies already use ethanol, said Chris Kubik, an economist with the Indiana Department of Transportation.

Still, some believe that if the price of corn increases, gasoline prices could rise in states outside the corn-abundant Midwest.

But for Indiana, the legislation is a win-win situation, say Jackman and the bills' other chief supporters, Rep. Bill Friend, R-Macy, and Sen. Brandt Hershman, R-Wheatfield.

"It's one of those rare and very encouraging situations where we can do something environmentally friendly and support our Indiana economy," Hershman said.

 

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