Mr. Chairman, and members of the Committee, I am pleased to be with you today to testify on the effects of the removal of methyl tertiary-butyl ether (MTBE) from gasoline.

The Energy Information Administration (EIA) is an independent statistical and analytical agency within the Department of Energy. We are charged with providing objective, timely, and relevant data, analysis, and projections for the use of the Congress, the Administration, and the public. We do not take positions on policy issues, but we do produce data, analysis, and forecasts that are meant to assist policymakers in their energy policy deliberations. Because we have an element of statutory independence with respect to our analyses, our views are strictly those of EIA and should not be construed as representing those of the Department of Energy or the Administration.

I have been asked to focus my testimony on a recent analysis entitled Eliminating MTBE in Gasoline in 2006, which EIA issued on February 22, 2006. A copy of that analysis is attached and provides the substance of my written testimony.

Although EIA’s analysis is now approximately a month old, we feel that it still provides a timely and pertinent description of our perspective on the market situation with regard to the widespread removal of MTBE from reformulated gasoline and the significantly increased use of ethanol that is likely to occur as a result. I will be providing an update of market conditions, based on information available in the past few days, in my oral remarks.

Thank you for your consideration of the following analysis. I look forward to answering any questions you may have.