LEGISLATIVE DEVELOPMENTS

January 2004

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House Energy Bill’s MTBE Provisions: Industry “Gift Basket” or Congressional Apology?

In November, the U.S. Senate narrowly failed to bring the much-publicized House Energy Bill (HR 6) to a vote, although congressional leaders have promised to revive the bill when Congress reconvenes in January. As currently written, the bill’s most controversial provision would have exempted oil companies and methyl tertiary butyl ether (MTBE) manufacturers from liability for MTBE contamination clean-up costs. These provisions have the potential to significantly affect local governments and water districts by eliminating most present and all future litigation that seeks recovery of costs relating to MTBE contamination.