Safe-Harbor Provision For Methyl Tertiary Butyl Ether (MTBE)

Publication Date: February 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Environment

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Abstract:

Methyl tertiary butyl ether (MTBE) is a fuel additive in wide use throughout the United States. Due to leakage from underground storage tanks and other sources of exposure, MTBE has been found in the drinking water supplies of several states. Whether to shield certain parties from MTBE-related liability proved controversial in the 108th Congress, and ultimately no legislation addressing the issue was enacted. 108th Congress legislation included S. 2095, S. 791, H.R. 3940, and H.R. 2253, each of which would have provided for the eventual discontinuation of the additive but did not provide parties associated with MTBE with any special protections from liability. Other 108th Congress legislation, including the conference-reported version of the Energy Policy Act of 2003 (H.R. 6) contained a safe- harbor provision protecting any potential defendant, such as MTBE manufacturers and distributors, from products liability claims. Additionally, the H.R. 6 provision included language applying the safe-harbor retroactively, potentially barring several pending lawsuits. Exemption from liability related to MTBE contamination remains controversial and may again become the subject of debate in the 109th Congress. Accordingly, this report analyzes the legal implications of the safe-harbor provision found in H.R. 6. This report will be updated as necessary.