Mr. Speaker, I offer a motion to instruct conferees. Mr. Speaker, I yield myself 5 minutes. Mr. Speaker, this motion would do one thing: it urges conferees to reject a provision granting MTBE manufacturers a waiver from liability for the…
Mr. Speaker, I offer a motion to instruct conferees.
Mr. Speaker, I yield myself 5 minutes.
Mr. Speaker, this motion would do one thing: it urges conferees to reject a provision granting MTBE manufacturers a waiver from liability for the damage their products have caused to groundwater supplies throughout this country.
This broad liability waiver for MTBE manufacturers should be rejected for a number of reasons.
First, and most recent, a new draft risk assessment on MTBE written by the Environmental Protection Agency has concluded that MTBE is a likely, and I quote ``likely,'' human carcinogen. According to the publication ``Inside EPA,'' the study pinpoints kidney and lymph node tumors as a result of MTBE exposure.
Up until now, most of the concern about MTBE contamination has been that a tiny bit of it makes water smell and taste like kerosene, rendering the water unusable. But now EPA has released information that says MTBE in water may mean more than an unpleasant taste or smell: it may threaten your health.
MTBE contamination is a huge problem, and it is not going away. To date, this contamination has been found in over 2,300 water systems serving 36 States. Two recent studies have reconfirmed that the cost of removing MTBE from drinking water is substantial. The new studies put MTBE cleanup costs in the range of $25 billion to $33 billion and could be as high as $85 billion or more, and that is the cost for existing pollution.
Third, documents unearthed in court cases show that MTBE manufacturers knew as early as the mid-1980s about the damage their products caused to groundwater sources; and yet they continued to add it to gasoline. That is why juries have found that MTBE is a defective product. They also found that oil companies acted with malice because they knew what could happen with MTBE, and they did not do anything to stop it. That is why these oil companies have settled their cases. They did not pay millions of dollars to Tahoe, Santa Monica, and other communities out of good citizenship. They did it because they knew that juries would lower the boom on them for their actions. That is why this bill voids defective product lawsuits, because that is the way oil companies are being held accountable for their actions.
Fourth, CBO has found that the liability waiver in this House bill is an unfunded mandate. This protection for MTBE manufacturers is a huge unfunded liability that would shift the cost of the cleanup, literally billions of dollars, on to towns, cities, and water districts, on to your constituents, I say to my colleagues; and that is just plain wrong.
Mr. Speaker, 2 months ago, the House narrowly voted down my amendment to strike the MTBE liability waiver from our bill. Many Members voted ``no'' because of some impending deal to address the cleanup issue once and for all. Well, reports of this deal have leaked out. They are not pretty, and they will not address the MTBE contamination that your constituents face today or may face in the future.
The deal would provide full liability protection to MTBE producers and establish a $4 billion to $8 billion trust fund to address the contamination crisis. One big problem: remember, the cleanup of MTBE contamination is going to cost between $25 billion and $33 billion and could be as high as $85 billion, dwarfing this deal's cleanup fund.
Another problem: at least half of this fund comes from taxpayers. Mr. Speaker, why should taxpayers pay to clean up MTBE contamination? MTBE manufacturers caused this problem, and they knew it when they did it. They should clean it up.
This is a deal written by the industry for the industry. And it is no surprise that no one from the water industry, no cities, no counties, the people who will have to deal with the contamination, none of these people support this bill.
Finally, these are the controversial MTBE provisions that killed the energy bill in the last Congress. The Senate bill did not include MTBE provisions in their bill, and for good reason. They knew that giving these manufacturers protection from liability would
end the chances of the bill becoming law. With the country continuing to experience record energy prices, the need for comprehensive energy legislation is clear, and MTBE provisions once again threaten the passage of this bill.
Mr. Speaker, the MTBE industry knowingly caused widespread groundwater pollution, and now it is trying to shirk its responsibility to the communities living with this huge problem.
So I urge my colleagues to support the Capps motion to instruct conferees and to reject this ridiculous bailout for the MTBE industry.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms. Pelosi).
Mr. Speaker, I yield 3 minutes to my colleague, the gentleman from Massachusetts (Mr. Markey).
Mr. Speaker, I yield 3\1/2\ minutes to the gentlewoman from California (Ms. Eshoo).
Mr. Speaker, I yield 3\1/2\ minutes to the gentleman form Maine (Mr. Allen).
Mr. Speaker, I yield 2 minutes to the gentleman from Massachusetts (Mr. McGovern), a member of the Committee on Rules.
Mr. Speaker, I yield 3 minutes to the gentlewoman from California (Ms. Solis).
Mr. Speaker, I do not have any further speakers, just closing comments of my own.
(Mr. BARTON of Texas asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I want to thank my esteemed colleague, who is in opposition to this amendment and, indeed, he, the chairman of the Committee on Energy and Commerce, is my friend and friends of all of us who have spoken today who are members of his committee. But I wish to comment on some of the remarks he made in his speech.
First, regarding the list funds which he spoke about as being a place for managing this pollution. Stopping the leaks from the tanks stops additional MTBE contamination, Mr. Chairman, but it does nothing about existing contamination, and that is the contamination that has polluted over 2,300 water districts across this country in 36 different States.
Second, the chairman referred to the very minute amounts of MTBE that have polluted all of this groundwater that we have been discussing. And it is true that the groundwater is rendered unusable because of the strong smell and taste of kerosene, even in a very small amount of MTBE which is in the groundwater. But I would argue, respectfully, that the American people deserve to know that the Environmental Protection Agency has a report, even though it is a draft report, because it identifies the state of a likely carcinogen that MTBE contains. Even if it is nothing more than a small amount, I do not believe, as a public health nurse, that we want to contaminate our drinking water with even a small amount of a likely carcinogen.
Third, I want to get back to the point about the liability of manufacturers of MTBE who knew when they created this product in the 1970s as an additive to gasoline that it was toxic and that it would pollute groundwater. Here is a statement from the deposition of Curt Stanley, a Shell Oil remediation expert, which is part of the testimony for the South Lake Tahoe water district when it was presented with a huge lawsuit against the Shell Company.
The question was asked: ``So is it fair to say,'' and this is taken from testimony, ``that by 1981, the Shell Oil Company knew that MTBE in its gasoline could contaminate public drinking water supplies?'' The answer is: ``Yes.'' Question: ``And is it also fair to say that they knew by that time that it created taste and odor problems in public drinking water supplies?'' The answer: ``Yes.'' And the final question: ``And did you report those facts to the Shell management?'' And the answer is: ``Yes.''
Since at least that time, 1981, the oil companies, the MTBE manufacturers knew that they were making a defective product and knowingly they continued to manufacture it.
Now, the chairman described the compromise that has been worked out on the underlying bill, and in doing so, interestingly, acknowledges fault on the part of the MTBE manufacturers, because they are liable if they are going to be part of the deal in coming to a conclusion. ``They should pay,'' he
says. I say, ``they must pay.'' They must be held accountable. And the deal that is struck is one in which they will pay only a portion of the damages and the taxpayers will pay the remainder.
The House Republican energy bill fails to address this Nation's record gas prices. And according to the Bush administration's own Energy Department would actually cause gas prices to increase, and that at a time when they are increasing. This energy bill we are now going to be considering in conference will do nothing to cause containment of that increase in gas prices. Instead of giving real relief to consumers, this Republican bill gives loads of new tax breaks and loopholes to special interests. And the worst example of these special interest giveaways is the complete liability shield for MTBE manufacturers, a shield that will shift billions of dollars in cleanup costs from MTBE manufacturers to the American taxpayer.
MTBE is responsible for polluting groundwater in so many communities across this country. Cleanup costs are estimated in the billions, $28 billion to maybe as high as over $50 billion. MTBE manufacturers are now being held accountable in court, but this provision would end that accountability. I would remind Members that it was the special protections granted to MTBE manufacturers that brought this bill down in the last Congress. Senate leaders have made it clear they are not including this grossly unwanted get-out-of-jail-free card for the MTBE this year either.
So I know many Members of the House have school boards, have water districts or towns with lawsuits against MTBE manufacturers, and those lawsuits are going to be voided. Null. They are not going to be able to proceed under this energy bill. Your constituents would lose their right to hold these manufacturers of MTBE accountable for the pollution in their groundwater. And the billions in MTBE cleanup that your communities face will be shifted from the oil companies, who have record profits and who caused the problem, to your constituents, who have to live with the problem.
Make no mistake, that is what this vote is all about. By voting for the motion to instruct conferees, you will be saying that it is not okay to make your constituents pay for pollution that they did not cause, but that was caused by MTBE manufacturers. The special protection in this bill for MTBE manufacturers is completely unwarranted and it will cost your constituents a fortune.
So I urge you to vote for the motion to instruct conferees. Vote for the Capps motion.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.