In Re Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation

457 F. Supp. 2d 324, 2006 U.S. Dist. LEXIS 43330, 2006 WL 1738233
District Court, S.D. New York·Decided June 23, 2006·No. MDL 1358(SAS). No. M 21-88. No. 1:00-1898·Published·Cited by 12 cases

Opinion

OPINION AND ORDER

SCHEINDLIN, Judge.

I. INTRODUCTION

In this consolidated multi-district litigation (“MDL”), plaintiffs seek relief from contamination, or threatened contamination, of groundwater from various defendants’ use of the gasoline additive methyl tertiary butyl ether (“MTBE”) and/or tertiary butyl alcohol (“TBA”), a product that is formed by the natural degradation of MTBE in water. Defendants now move for summary judgment on the ground that plaintiffs’ claims are conflict preempted by *326 the Clean Air Act (“CAA”) because first, “compliance with both federal and state regulations is a physical impossibility;” 1 or second, plaintiffs’ state tort claims “stand[ ] as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” 2 After hearing oral argument on May 9, 2006 and conducting a thorough review of the facts presented, defendants’ motion is denied.

II. BACKGROUND

The parties have already engaged in extensive motion practice, and familiarity with the Court’s previous opinions is assumed. 3 The facts underlying this case are comprehensively set out in those opinions. 4

A. The 1990 CAA Amendments

The purpose of the CAA is “to protect and enhance the quality of the Nation’s air resources so as to promote the public health and welfare and the productive capacity of its population.” 5 The CAA gives the United States Environmental Protection Agency (“EPA”) the authority to set national ambient air quality standards for various air pollutants. 6 Individual states must devise plans to meet the standards. 7

In 1990, amendments to the CAA created the Reformulated Gasoline Program (“RFG Program”) 8 to help reduce ozone-causing car emissions, such as volatile organic compounds (“VOCs”) and toxic air pollutants. 9 In order to accomplish this, section 211(k)(2)(B) of the amendments required that reformulated gasoline have a *327 minimum oxygen content of two percent. 10 To achieve this minimum oxygen content, gasoline manufacturers add oxygenated fuel to the gasoline. The RFG Program required the use of reformulated gasoline in the nine largest metropolitan areas with the most severe summertime ozone levels. 11 Other areas that did not attain the national ambient air quality standards could opt into the program. 12 In addition, the amendments enacted an Oxygenated Fuels (“Oxyfuel”) Program, which required that gasoline contain 2.7 percent oxygen by weight during the wintertime in areas that did not attain the national ambient air quality standard for carbon monoxide. 13 The EPA certified various blends of gasoline for use in the RFG Program, including gasoline with MTBE, however, it did not mandate the use of any one oxygenate. 14 Two of the most widely used oxygenates are MTBE and ethanol.

Section 211(k)(l) of the amendments authorizes the EPA to issue regulations for reformulated gasoline to require “the greatest reduction” in emissions of ozone-forming VOCs during the summer and toxic air pollutants throughout the year “achievable through the reformulation of conventional gasoline, taking into consideration the cost of achieving such emission reductions, any nonair-quality and other air-quality related health and environmental impacts and energy requirements.” 15 In 2005, Congress removed the oxygen requirement for reformulated gasoline contained in the CAA. 16 The Energy Policy Act of 2005 now requires the EPA to promulgate regulations to require gasoline “sold or introduced into commerce in the United States” to contain an annual average volume of four billion gallons of renewable fuel starting in 2006 and increasing to seven and a half billion gallons of renewable fuel in 2012. 17

B. Brief Summary of Plaintiffs’ Allegations

MTBE is highly soluble in water and does not readily biodegrade. Because of its high solubility, MTBE races through the underground water supply, eventually contaminating wells and underground aquifers. MTBE can persist in underground aquifers for many decades, far *328 longer than other components of gasoline. Even in very small quantities, MTBE imparts a foul taste and odor to water and renders it unusable and unfit for human consumption. MTBE is carcinogenic in animals and may be carcinogenic in humans. 18

Sometime after 1979, defendants started manufacturing, distributing, and/or selling MTBE-containing gasoline. 19 By the 1990s, defendants added MTBE to gasoline in concentrations varying between eleven and fifteen percent. 20 Plaintiffs allege that defendants chose to add MTBE to gasoline despite their awareness of specific incidents of MTBE contamination and the dangers posed by MTBE. 21 Defendants misled the EPA and the public about the dangers of MTBE during the process leading up to the 1990 CAA amendments and conspired to convince the EPA and the public that MTBE was harmless and that increased concentrations of MTBE were desirable. 22 According to plaintiffs, had the public been warned of the hazards of MTBE, plaintiffs and the public would have sought and demanded alternative oxygenates. 23

Plaintiffs assert that defendants have a duty “not to market any product which is unreasonably dangerous for its intended and foreseeable uses.” 24 And plaintiffs claim MTBE is “defective and unreasonably dangerous for its intended and foreseeable transportation, storage, handling and uses.” 25

III. LEGAL STANDARD

Summary judgment is appropriate if the record “show[s] that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” 26

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In Re Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation, 457 F. Supp. 2d 324, 2006 U.S. Dist. LEXIS 43330, 2006 WL 1738233 (S.D.N.Y. 2006).

457 F. Supp. 2d 324 (In Re Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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