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State legislative action is being taken to end production and use of a major competitor to ethanol.

A bill is nearing completion which bans methyl tertiary butyl ether (MTBE) from being manufactured, imported, sold or distributed in Ohio. (See "Energy Bill" story about action at the federal level.)

MTBE is a petroleum-based product that is competitive with ethanol. Like ethanol, it is a gasoline additive that is used as both an oxygenate and octane enhancer. However, MTBE has been found to be highly carcinogenic. Even small amounts leaking from underground fuel storage tanks have the potential of harming drinking water supplies.

MTBE is currently the additive of choice in 80 percent of the national markets required to have specially formulated gasoline to comply with the Clean Air Act. Banning its use is expected to translate into increased demand for ethanol.

At press time, HB 425 passed the Senate and was awaiting concurrence. OFBF was heavily involved in efforts to pass this and other ethanol-friendly legislation in the Ohio General Assembly. Governor Taft is expected to sign the bill.