The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Thursday, July 14, 1994                TAG: 9407140687
SECTION: BUSINESS                 PAGE: D3   EDITION: FINAL 
SOURCE: BY H. JOSEF HEBERT, ASSOCIATED PRESS 
DATELINE: WASHINGTON                         LENGTH: Medium:   73 lines

EPA REJECTS USE OF MANGANESE-BASED ADDITIVE RICHMOND-BASED ETHYL'S FUEL ADDITIVE HAS BEEN REBUFFED REPEATEDLY FOR HEALTH REASONS.

The Environmental Protection Agency on Wednesday rejected use of a manganese-based additive for gasoline, denying a petition by Ethyl Corp., which contends the product would reduce air pollution.

Some scientists and environmentalists fear the additive could cause public health problems because manganese has been found to harm the nervous system.

Ethyl Corp., a Fortune 500 company based in Richmond, has sought EPA approval of the additive, known as HiTec 3000, since the mid-1980s but was rebuffed by the EPA through three presidential administrations.

EPA Administrator Carol Browner said the agency has concerns about the health uncertainties raised by the proposed widespread use of the additive. The agency said more tests are needed to resolve the ``important, unanswered questions'' surrounding the potential manganese exposure.

``At this time we have concerns about the potential effects of manganese emissions on public health,'' said Browner in a statement. ``We can't allow Americans to be exposed to a chemical, especially on such a broad scale, when such uncertainties exist about health consequences.''

In addition to concern about health effects, the EPA said it also has received reports that the additive adversely affects the performance of sophisticated emissions diagnostic systems that are required on new cars to protect air quality.

Ethyl said in a statement that it would appeal the EPA decision in federal court.

``The EPA has chosen quite simply to ignore all valid scientific evidence demonstrating that . . . (the additive) presents no negative health effects and actually contributes to a cleaner environment,'' said Ethyl Chairman Bruce C. Gottwald.

Ethyl has argued that HiTec 3000 boosts gasoline octane and substantially reduces nitrogen oxide and other harmful tailpipe emissions that cause urban smog. The company claims the amount of manganese that is releases would be too small to cause a public health or environmental concern.

The Clean Air Act requires that fuel or fuel additives be substantially similar to those used in the EPA's vehicle emission certification program. Ethyl was seeking a waiver to that requirement, something the agency is allowed to do if it chooses.

The EPA decision was applauded by the Environmental Defense Fund, a major environmental group, which in recent days had expressed concern that Browner might approve the additive.

``As a neurotoxin and a metal, manganese has the potential to create an environmental health problem on the scale of lead,'' said Ellen Silbergeld, a toxicologist for the New York-based environmental group.

She said that because the effects of low doses of manganese are not clearly known, widespread use of the additive would amount to conducting ``an experiment on the American public to gather data'' that the company should determine before the additive is approved.

Ethyl has invested years of research and time in the HiTec 3000 additive. Four years ago the corporation's stock climbed to nearly $30 a share in part because of anticipation of the additive's acceptance.

Recently Ethyl shares have been in the $12 range.

Ethyl has a long history in producing gasoline octane enhancers. In 1925 it won approval for lead as an antiknock additive in gasoline. Lead later proved to be harmful to humans and today is virtually phased out.

Although lead once was Ethyl's principal product, the corporation has diversified in recent years including into the pharmaceutical and life insurance businesses.

KEYWORDS: U.S. ENVIRONMENTAL PROTECTION AGENCY ETHYL CORP.

by CNB