September 23, 2003

The Honorable Henry Waxman

House of Representatives

2204 Rayburn House Office Building

Washington, D.C.  20515

Dear Congressman Waxman:

The California Nevada Section of the American Water Works Association (CA-NV AWWA) is a scientific and educational organization of over 8100 members, dedicated to leading and educating the drinking water professional.  CA-NV AWWA strongly opposes provisions in pending energy legislation H.R. 6 that would provide product liability immunity, or so called “safe harbor” to gasoline manufacturers for MTBE and ethanol.  We understand that the House conferees have tentatively agreed to accept those provisions.  We urge you to influence a change in this position.

Over the past several years, MTBE contamination has cost water utilities and ultimately the water consumer millions of dollars.  These costs are anticipated to be in the billions of dollars nationwide before we will be free from the harm MBTE contamination has caused.  We believe that if such product immunity is eventually enacted, gasoline manufacturers will have little, if any incentive to pay their fair share to clean up contaminated water supplies or assist in the development of alternative water sources.  The burden to clean our water supply should not be carried by water consumers.

Contrary to claims by oil companies and ethanol producers, the product defect liability immunity provisions of H.R. 6 are not narrowly tailored.  In a major way, these provisions shift the liability for clean up away from producers to water consumers.  They also shift liability to retailers and distributors, who are in no way responsible for the decision to produce a product that has as much capacity for environmental harm as MTBE and who are likely to lack the resources necessary to remedy the problem it causes.

Last year a jury found that MTBE was a defective product in a case brought by the South Tahoe Water District in California, resulting in a settlement in which oil companies agreed to pay to clean up MTBE contaminated water supplies.  An important factor in the jury’s decision were documents produced at trial proving that gasoline manufacturers had known for many years that MTBE spreads in the environment farther and faster than other constituents of gasoline and is enormously expensive to clean up.

Moreover, the environmental damage that may be associated with ethanol is completely unknown.  Ethanol has essentially the same water solubility as MTBE and is expected to behave in the same manner.  However, ethanol has yet to be analyzed for in drinking water sources because it is not yet a regulated drinking water contaminant and not widely used.  But if it were safe, why are its producers seeking product immunity?

The ultimate victims of product liability immunity will be the people of California, who will lose their aquifers to contamination and their money to cleanups and acquisition of new sources of water.  Protect the American people from contaminated drinking water supplies and the cost to clean them up.  Please say no to liability immunity for ethanol and MTBE producers.

Sincerely,

Jacqueline R. Glover
2002-2003 Chair

CC: 
Greg Dotson, Counsel
CA-NV AWWA Governing Board
Linda Littell, Secretary, CA-NV AWWA