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FOR IMMEDIATE RELEASE

CONTACT: Erik Olson or Elliott Negin, 202-289-6868

NRDC Denounces EPA's Proposal to Withdraw New Arsenic-in-Tap-Water
Standard; Group Says Move is Unwarranted and Illegal – and Vows to Sue

WASHINGTON (March 20, 2001) – The Bush administration's announcement today to withdraw the new arsenic-in-tap-water standard is a craven capitulation to the mining industry and other corporate interests at the expense of the health of millions of Americans, said NRDC (Natural Resources Defense Council).

EPA's final arsenic standard of 10 parts per billion (ppb) would have lowered allowable levels of arsenic in tap water from the current standard of 50 ppb, an outdated standard established in 1942. The new standard was a result of more than a decade of scientific reviews, public hearings, and discussions with health experts and industry. The international standard adopted several years ago by the World Health Organization and the European Union also is 10 ppb.

"This decision will force millions of Americans to continue to drink arsenic-laced water," said NRDC Senior Attorney Erik D. Olson. “Many will die from arsenic-related cancers and other diseases, but George Bush apparently doesn't care. This outrageous act is just another example of how the polluters have taken over the government."

George W. Bush received more money from the mining industry during last year's campaign than any other candidate for federal office. Meanwhile, the mining industry last year shoveled $5.6 million into Republican Party campaign coffers, but less than $900,000 to Democrats. (See the Center for Responsive Politics' Web site, opensecrets.org.)

The Environmental Protection Agency said it withdrew the rule on scientific grounds. In a draft press statement issued today, EPA Administrator Christie Whitman said, "I want to be sure that the conclusions about arsenic in the rule are supported by the best available science."

In fact, that work has already been done. A definitive 1999 report by the National Academy of Sciences (NAS) determined that arsenic in drinking water causes bladder, lung and skin cancer, and may cause kidney and liver cancer. The study also found that arsenic harms the central and peripheral nervous systems, heart and blood vessels, and causes serious skin problems, including pre-cancerous lesions and pigmentation changes. In addition, the NAS report and peer-reviewed animal studies have found that arsenic may cause birth defects and reproductive problems. NAS also found that children could be more vulnerable to arsenic exposure than adults.

The NAS report concluded that EPA's 1942 arsenic standard for drinking water of 50 ppb, established before the chemical was known to cause cancer, "does not achieve EPA's goal for public health protection and, therefore, requires downward revision as promptly as possible." NAS said that drinking water at the current EPA standard "could easily" result in a total cancer risk of one in 100- about a 10,000-times higher cancer risk than EPA would allow for carcinogens in food. NAS assumes people drink 2 liters of water a day over a lifetime.

According to NRDC, EPA should have lowered the arsenic level in drinking water to 3 ppb (see

5 ppb standard in June 2000 and then increased it to 10 ppb in January 2001 in response to industry pressure.

"What will it take to convince the Bush administration to do something about this enormous health risk?" asks Olson. "Congress told the agency to update the arsenic standard in the mid1970s and again in the late 1980s, but it never happened. In 1996, Congress asked for the third time, making January 2000 the deadline for a proposal. EPA finally proposed the new standard in June 2000 after we sued the agency. Now we will be forced to sue again.”

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The Natural Resources Defense Council is a national, non-profit organization of scientists, lawyers and environmental specialists dedicated to protecting public health and the environment. Founded in 1970. NRDC has more than 400,000 members nationwide, served from offices in New York, Washington, Los Angeles and San Francisco. More information is available through NRDC's Web site at www.nrdc.org.

NATIONAL ECONOMIC

RESEARCH ASSOCIATES

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POTENTIAL IMPACTS OF ENVIRONMENTAL
REGULATIONS ON DIESEL FUEL PRICES

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Consulting Economists

Evaluation of An Assessment of the Potential Impacts of Proposed Environmental Regulations on U.S. Refinery Supply of Diesel Fuel, prepared for American Petroleum Institute, August 2000.

by

David Harrison, Jr., Ph.D.
Randall Lutter, Ph.D.

Prepared for

Alliance of Automobile Manufacturers

December 2000

Cambridge, MA / Chicago, IL / Ithaca, NY / London / Los Angeles, CA/Madrid/New York, NY / Philodriphia, PA
San Francisco, CA/ Washington DC/White Plains, NY

ACKNOWLEDGEMENTS

This report was requested and funded by the Alliance of Automobile Manufacturers ("Alliance"). The report was prepared by National Economic Research Associates, Inc. (“NERA"), an international firm of consulting economists specializing in the application of economics to complex issues of business and public policy. NERA has considerable experience in energy and environmental economics and policy.

NERA was asked to evaluate the economic methodology contained in a recent report concerning the impacts of proposed environmental rules on diesel fuel markets that was prepared for the American Petroleum Institute ("AP] report").' Specifically, NERA's assignment was to assess the methodology used in the API report to project diesel fuel price increases due to proposed desulfurization regulations of the U.S. Environmental Protection Agency ("EPA"). (Projected price increases from the API report have appeared in the trade press.2) NERA's review included neither a detailed evaluation of the underlying data used in the API report nor evaluations of other aspects of the proposed EPA regulations.

The NERA report was prepared by Dr. David Harrison and Dr. Randall Lutter, a NERA outside consultant. Mr. Daniel Radov contributed to the report. We are grateful to individuals at the Alliance for providing us with the API report and various background information. Responsibility for the report, however, and any errors or omissions, rests solely with NERA.

1 Charles River Associates, Inc. and Baker and O'Brien. Inc., An Assessment of the Potential Impacts of Proposed Environmental Regulations on U.S. Refinery Supply of Diesel Fuel, prepared for American Petroleum Institute, August 2000.

2

See, "50 Cent/Gallon Price Spike, 320,000 Barrel/Day ULSD Shortage Seen in U.S. in 2006: Shocking API Study," Hart's Diesel Fuel News Vol. 4 (No. 15). August 2000, p. 1.

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