SRI Consulting Study Concludes MTBE Should Not Be
Banned; Study Examines Economics and Environmental Impacts of
Gasoline Additive
Media release
Copyright 1999 Business Wire
February 18, 1999
Feb. 18, 1999--SRI Consulting (SRIC) has recently completed a
major review of
the economics and environmental impacts associated with the use of
methyl
tertiary-butyl ether (MTBE) in gasoline. The use of oxygenates such
as
MTBE is required in certain major cities by the Environmental
Protection Agency (EPA) to reduce the formation of ozone and the
emission of carbon monoxide, both
of which contribute to high smog levels. SRIC calculated that even
after
including environmental impacts in the evaluation of
MTBE, gasoline with
MTBE remains California's lowest cost fuel option for decreasing
automotive
emissions.
The use of
MTBE is the subject of a major policy debate in California,
primarily due to the
detection of
MTBE in groundwater wells in Santa Monica and Lake Tahoe. The
University of
California (UC) has recently completed a major research study,
sponsored by the
state legislature, to evaluate the
health and environmental impacts of
MTBE. SRIC's report, which was sponsored by the Oxygenated Fuels
Association, was
submitted to the California EPA and the governor to provide an
additional
perspective on these issues.
The SRIC report concluded that
MTBE remains a viable and economical choice for reducing automotive
emissions in
California, and that continued use of the product is justified.
SRIC
specifically found that: -0-
-- Many of the concerns and economic costs that have been
attributed
to MTBE are a result of historical leaks from underground
gasoline storage tanks. With the completion of tank upgrades
(required by law by the end of 1998) and the use of
currently
available treatment technologies, future impacts of MTBE in
water
are expected to be dramatically smaller.
-- Reformulated gasoline, of which oxygenates such as MTBE are
a
significant component, makes an important contribution to
air
emission reductions. The use of oxygenates results in air
quality
improvements, even when compared to California
non-oxygenated
gasolines.
-- The continued use of MTBE in gasoline does not pose
unwarranted
acute or chronic public health risks. This finding is
consistent
with both the general body of research and the findings of
key
national and international health agencies.
-- SRIC calculated that gasoline with MTBE is the lowest cost
option
for producing California RFG, even after including
environmental
impacts in the evaluation. SRIC estimates the total costs
associated with MTBE to be $ 500 million to $ 2.1
billion/year less
than those shown in the UC report.
-0-
SRI Consulting, (www.sriconsulting.com) a wholly owned
subsidiary of Silicon
Valley-based SRI International, works with companies worldwide to
identify
market opportunities and develop strategies for competing in
today's
technology-driven marketplace. SRI Consulting combines strategic
business
consulting with technology expertise to help companies develop and
commercialize new products and leverage new
technologies into competitive advantages. These consulting services
are backed
by SRI International's 50-year heritage as a pioneer in developing
new products
and markets.
CONTACT: SRI Consulting
Mike Bonem, 650/859-5231
or
The Weber Group
Phil Gomes, 650/463-8611
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