MTBE Elimination Act

Amends the Toxic Substances Control Act to prohibit, three years after the enactment of the MTBE Elimination Act, the use of MTBE as a fuel additive.

Requires persons selling oxygenated gasoline containing MTBE at retail to be required under regulations promulgated by the Administrator to label the fuel dispensing system with a notice that specifies that the gasoline contains MTBE and provides other information concerning MTBE as determined appropriate by the Administrator.

Directs the Administrator to establish a schedule that provides for an annual phased reduction in the quantity of MTBE that may be used as a fuel additive during the three-year period beginning on this Act's enactment date.

Requires the Administrator to establish an MTBE research grants program within EPA. Authorizes grants to eligible grantees to pay the Federal cost share of research on: (1) the development of more cost-effective and accurate MTBE groundwater testing methods; (2) the development of more efficient and cost-effective remediation procedures for water sources contaminated with MTBE; or (3) the potential effects of MTBE on human health. Makes eligible for such grants Federal research agencies, national laboratories, colleges or universities, certain private research organizations, and State environmental research facilities. Authorizes appropriations.

Directs the Administrator to promulgate rules requiring a .5 pounds per square inch Reid vapor pressure allowance for all reformulated gasoline containing 3.5 percent oxygen by weight. Provides that any additional volatile organic compound emissions resulting from the use of such gasoline should be deemed to be fully offset and not calculated in determining compliance with certain Clean Air Act provisions dealing with reasonable further progress plans or demonstrations.