PHASE 2 REFORMULATED GASOLINE
                      ADVISORY COMMITTEE

                            FINAL
                       MEETING SUMMARY
                        JUNE 7, 1995

                        Introduction

The California Reformulated Gasoline (CaRFG) Advisory Committee met
on June 7, 1995, the fourth in a series of planned meetings.

The Advisory Committee's Chairman, Mr. John Lagarias, began the
meeting by giving a brief overview of the Performance, Transition,
and Public Education Subcommittees' activities since this Advisory
Committee's last meeting on February 1, 1995.  Also, Mr. Lagarias
announced that Mr. Peter Venturini, Chief, of the Air Resources
Board's (ARB) Stationary Source Division will assume the
responsibility of discussion leader for the Public Education
Subcommittee.  Mr. Venturini will replace Mr. Ron Friesen, former
Assistant Chief of the Stationary Source Division who left State
service recently to pursue other interests.  The Performance
Subcommittee has met on seven occasions to date, and the Transition
and Public Education Subcommittees have each met six times.  

The draft meeting summary from the February 1, 1995 Advisory
Committee meeting was approved as final as there were no comments
received on the draft version.


Presentation on Performance Subcommittee Efforts

Mr. Dean Simeroth of the ARB discussed the Performance
Subcommittee's compatibility and performance test program
(Attachment 2).  The following points were made:

     The Subcommittee's objectives and formation were reviewed. 

     An overview of the ARB on-road test program schedule was
     provided.  Vehicle pretests were begun and the test fuel
     purchased in January, 1995.  The test program formally began in
     February, transitioned to summertime fuel for Southern
     California and for the Sacramento Valley in May.  The test
     program is scheduled to be completed by August, 1995.
     Preliminary analysis of the CaRFG test fuels show that the
     wintertime fuel is within the tolerances of the original fuel
     specifications.  Samples have been taken of the summertime
     fuel, the fuel is being analyzed, and the data is being quality
     checked. 
     
     An overview was provided of the test and control fleet sizes
     and age of the vehicles.  Fleet size has been reduced from
     approximately 1800 test vehicles and control vehicles to
     approximately 1300 (773 test vehicles and 516 control
     vehicles).  The reduction in the number of test and control
     vehicles is primarily due to the City and County of Sacramento
     adjusting the size of their fleets.

     Data collection and inspection procedures being used by ARB
     personnel were described.  A status report on baseline failure
     rate data collection efforts was also presented. 

     The Technical Review Panel (TRP) held its first meeting on June
     1, 1995, to review the incidents reported from Pacific Bell and
     GTE fleets.  Preliminary results indicate that the incidents
     are related to the ages and mileage of the vehicles rather than
     to the fuel.  However, the automobile manufacturer members on
     the TRP are examining the failed components and are expected to
     have a comprehensive assessment before the next Advisory
     Committee meeting.

     A representative from GTE presented a report on its test
     program.  The GTE fleet is composed of high-mileage domestic
     vehicles (both control and test vehicles).  Results to date
     show no incidents which relate directly to the use of
     California reformulated gasoline.  Vehicle driveability surveys
     are also satisfactory.

Reports on additional testing being done by individual companies and
organizations were:  
     
     Chevron began an independent test program in January, 1995,
     using a Chevron formulated CaRFG gasoline and a fleet of
     240 Chevron employee personal vehicles (approximately 120 test
     and 120 control vehicles) in Richmond, CA.  The program was
     completed at the end of May, 1995.  Preliminary analysis now
     indicates that the difference between test and control vehicle
     incidents is statistically insignificant.  Plans are to
     complete a report on the test program and present it to the
     Performance Subcommittee at the July, 1995 meeting.  

     Texaco is sponsoring two performance and compatibility test
     programs, using an employee fleet in New York and a company
     fleet in California, to look at the effects of a CaRFG fuel
     with lower aromatic levels (less than 10%).  The New York
     vehicle test program is 90% complete.  In addition, Texaco is
     testing the effect of the lower aromatic fuel on gasoline
     dispensing pumps (Tokheim).  Plans are to present test program
     results to the Performance Subcommittee as soon as the results
     are available, beginning at the next meeting in July, 1995. 
     (Attachment 4)
     
     Chevron and Texaco will provide their data to the ARB to be
     integrated into the performance and compatibility test data
     base. 
 
     The Department of Energy (DOE) is conducting a high mileage
     road test.  (Please note the correction on page 10 of the
     "Performance Subcommittee Activities," which is Attachment 2). 
     

     General Motors just received the CaRFG test fuel and plans to
     complete its bench test program on material compatibility by
     August, 1995.

     Ford's test program will analyze the lubricity impact of three
     different reformulated fuels, as well as of conventional fuels,
     on metal-to-metal wear.  Testing will begin shortly and plans
     are to present the analysis to the Performance Subcommittee at
     its next meeting in July, 1995. 

     Nissan is conducting an investigation with the National Highway
     and Traffic Safety Association (NHTSA) to determine the cause
     of fuel injector and hose leaks and fires reported in high
     mileage (average >110,000 miles) Nissan 1983-88 model years and
     V-6 engine families.  The investigation is not yet concluded. 
     However, it was reported that high temperature tests (150 C)
     were conducted to determine whether heat was the causative
     factor.  The tentative conclusion is that the nature of the
     materials breakdown from high temperature is dissimilar from
     that found in the field.  To determine whether the fuel was a
     possible source of the materials failure, a 2000-hour bench
     test (equivalent to 100,000 miles) was then conducted, using
     MTBE (15% by volume).  Fuel injector (Nylon-66) failures were
     produced, similar to those found in the field.   Duplicating
     the 2,000-hour test using a changed formulation of Nylon-66
     injectors, the performance is satisfactory.  Nissan reported
     that they would update the Performance Subcommittee at its next
     meeting on the progress made on the NHTSA investigation.   

Mr. Simeroth concluded the on-road presentation by indicating that
existing efforts underway will continue, and that a report outline
is being developed for all of the test programs (ARB, individual
company, and off-road).  

A summary of the off-road test program was presented by Mr. Jack
Kitowski:  

     University of California at Davis, and Cal Poly San Luis
     Obispo, cancelled their participation in the off-road testing
     program, but California State University Fresno and others have
     helped to offset these changes by increasing the level of their
     participation. Also, seven companies worldwide from the
     Portable Power Equipment Manufacturers are participating in the
     off-road testing program by testing hand-held lawn and garden
     equipment.  Harley-Davidson motorcycle testing is underway. 
     Boat and watercraft engine test programs will be underway
     shortly.  Tecumseh and Briggs and Stratton have completed their
     lawn and garden testing, and prepared reports indicating no
     problems from the use of CaRFG.  Lake Tahoe Winter Sports
     completed testing with snowmobiles and also found no problems
     from the use of CaRFG.  In summary, the off-road test program
     is meeting nearly all statistical goals for fleet participation
     in each of the seven off-road categories.

Presentation on Transition Subcommittee Efforts

Ms. Susan Brown of the California Energy Commission (CEC) presented
an overview of the discussions of the Transition Subcommittee .  In
addition to the prepared handouts, (Attachment 5), the following
points were made:

     The primary charge of the Transition Subcommittee was
     reiterated.  The Committee was reminded that the information
     presented is in aggregate form to protect the confidentiality
     of the information from the individual refiners that the CEC
     has been analyzing. 

     CEC analysis of  the reports from refiners indicates that
     production capacity is sufficient to meet the high forecasted
     demand for CaRFG for California.  The current forecast assumes
     a 2% per year increase in demand for gasoline as well as an
     additional one-time increase of 2% in 1996 to accommodate the
     energy content decrease associated with California reformulated
     gasoline.  The difference between maximum capacity and best
     estimate for production is planned maintenance at refineries.
      
     CEC forecasts that California will continue to be a net
     exporter of gasoline with the introduction of CaRFG.  There are
     two main ways to distribute California fuel exports; that is,
     either through pipeline or trucking.  The Transition
     Subcommittee has been working on identifying potential
     distribution issues and solutions as part of the contingency
     planning efforts, both for exports and for movement within
     California.  
     
     The participation of the refiners in completing the Joint
     CEC/ARB survey was appreciated, and Ms. Brown thanked them for
     their forthright responses.  Refiners will be requested to
     update the survey on an ongoing basis if there is significant
     change in their plans to produce reformulated gasoline.  

     An important new area of inquiry is to determine the effect on
     other products, i.e., diesel and aviation fuel, with the
     increase in production of reformulated gasoline.  Survey
     results project that distillates and aviation fuel will
     actually increase with the maximization of RFG production,
     apparently at the expense of residual fuel production at the
     refineries. 

     The Transition Subcommittee continues to work on a preliminary
     list of  "what if" scenarios.  The purpose of these efforts is
     to determine the effect of an unforecasted loss of a key
     process unit on the supply and distribution of reformulated
     gasoline.  Plans are to continue working on these scenarios and
     to discuss this work with the Subcommittee at its next meeting
     in July 1995. 

     One idea CEC is working on with the Subcommittee is an
     information clearinghouse as part of the contingency planning
     efforts.  The purpose of the CaRFG Assessment Center would be
     to obtain qualitative information from refiners, the public,
     pipeline operators, and gasoline marketers during the
     transition to CaRFG, in order to assess the effect on supply of
     any mechanical breakdowns at refineries; the time required to
     complete repairs; availability of other products (i.e.,
     blending products); or any unexpected event which may impact
     supply.  

     The CEC has hired Mr. Robert Brown, an independent contractor, 
     who will also provide technical support to this project by
     using a computer model to simulate the operation of a typical
     Southern California refinery.  The computer model will be used
     to analyze and verify the effects of losing a key process unit
     at a refinery on the production output of reformulated gasoline
     and to validate current CEC forecasts and estimates.


Presentation on Public Education Subcommittee Efforts

Mr. Peter Venturini of the ARB presented the Public Education
Subcommittee's progress in developing an information outreach
program (Attachment 6).   A summary of the presentation is provided
below.

     The purpose of the Subcommittee was reiterated. 

     Mr. David Novak, of Novak Communications, was hired in March
     1995 as a contractor to provide technical expertise on the
     development of the CaRFG public outreach program.  Mr.
     Venturini thanked Subcommittee members Ms. Janet Hathaway of
     NRDC, Ms. Carolyn Green of Ultramar, and Mr. Norm Nishikubo of
     Chrysler Corporation, who assisted in the review of the
     proposals and the selection of the contractor.   
  
     The draft public outreach plan has been prepared and is
     currently under ARB internal review.   It will be presented to
     the Public Education Subcommittee at its next meeting in July,
     1995.  The plan is (1) proactive; (2) focuses on the positive
     benefits of CaRFG; (3) recognizes CaRFG as an evolutionary,
     rather than a new, gasoline; and  (4) recognizes the need for
     cooperation between all affected parties.  The outreach plan
     elements and strategies will be presented to the Advisory
     Committee at its next meeting in October 1995.

     The public outreach program will be structured into four
     phases.  Phase One will lay the foundation by identifying
     potential audiences and developing products (June through
     August).   Phase Two will further develop tasks, tactics and
     outreach tools, and begin outreach efforts (September through
     December).  Phase Three  will be aggressive outreach to
     targeted audiences just before introduction of the Phase 2
     reformulated gasoline (January through February, 1996).  Phase
     Four will be to monitor the situation, maintain flexible
     response and increase outreach coverage as needed (March
     through at least the summer, 1996). 

     The ARB has formed an internal outreach team to bring together
     individuals with expertise in a variety of different areas to
     implement the CaRFG outreach program.  Subteams are comprised
     of:  1) a group of technical specialists to gather facts and
     information needed for the outreach effort; 2) a materials
     development team who will translate the information gathered by
     the technical specialists into publications, fact sheets, and
     communication tools; 3) point persons designated as an external
     outreach team to address audiences, respond to questions from
     the public, and the media;  4) the Public Education
     Subcommittee,  which will continue its work and coordinate
     their efforts with other teams; and 5) a field director and
     distribution team who will identify and coordinate the various
     meetings, events, and activities where the outreach message can
     be presented.  These teams will also form any crisis response
     team, if needed, after the implementation of the CaRFG
     regulation.   

     Public opinion research, funded by the ARB, and with
     contributions from ARCO and Western States Petroleum
     Association, is being conducted by Applied Management and
     Planning.  The purpose of the research is to help shape the
     plan more fully and to help clarify the basic messages we need
     to reach in the affected public.  The research consists of two
     presurvey focus groups (one in Riverside and one in Sacramento)
     which have already met, and will also include a 1,100 person
     phone survey.  Three follow-up focus groups will then meet (in
     Los Angeles, Oakland, and Fresno).  The information gathered
     from this research will be presented to the Public Education
     Subcommittee and the Advisory Committee when the results are
     compiled. 

     The third RFG Forum newsletter will be completed by July 1995,
     and will include articles on the public outreach efforts,
     carbon monoxide (and the health effects associated with carbon
     monoxide), and a "viewpoint" article contributed by
     Ms. Janet Hathaway of the NRDC.  ARB is currently distributing
     about 5,000 copies of the newsletter and more can be made
     available for distribution within organizations and to business
     associates.

     Two facts sheets have previously been completed on the CaRFG
     program and on the performance and compatibility programs.  
     ARB staff is finalizing a third fact sheet on the subject of
     Federal RFG vs. California RFG.  Staff is also drafting a fact
     sheet on oxygenates.  Plans are to present the latter two fact
     sheets at the next Subcommittee meeting.

Responding to questions, Mr. Venturini indicated that (1) there will
be a fact sheet on fuel economy once all of the data are available;
(2) presentations will be given to any groups that we think would be
important to address, such as local Chambers of Commerce and service
clubs. 


Open Discussion and Comments Following the Presentations

     What kind of fuel economy data will be available from the
     programs?  

     In addition to the data from the performance test program
     fleets, near the end of the program a select number of these
     vehicles will do Federal Test Program type testing, alternating
     between conventional fuel and CaRFG to validate field
     information with data from a controlled setting.  Also, DOE
     will be tracking long-term effects on fuel economy through high
     mileage (30,000) accumulation to determine whether the fuel
     economy


     changes.  Also, the Wisconsin RFG study on fuel economy is
     already included in the draft ARB paper on the most current
     fuel economy information (excluding California's test program
     which is not yet completed).  The paper has been reviewed by
     the Performance Subcommittee, and will be made available to the
     Public Education Subcommittee for use in its publications.

     Are quality assurance procedures being used in the collection
     of the data from the performance test programs?

     ARB recently began development of a quality assurance tools to
     check the data now being entered into the program's database
     (double entry), with statisticians reviewing and recommending
     methods for handling the data and analysis.  ARB inspection
     teams are working with the fleets to ensure that data
     acquisition and reporting are subject to quality control. 
     Quality control checks on procedures for fuel sample collection
     is being done, including splitting samples for separate
     analyses.  Finally, the entire data set will be available for
     public access.

     When will the outreach plan be presented to the Advisory
     Committee?  

     The outreach plan will be presented to the Public Education
     Subcommittee during the July and September meetings and will
     then be presented to the Advisory Committee at its next meeting
     in October, 1995.

     A comment and ensuing discussion indicated that it is essential
     to carefully distinguish between vehicle failures and
     incidents.

     What did the Wisconsin study conclude on the health effects of
     MTBE in RFG?

     Based on the study done, no direct relationship between health
     effects and MTBE could be drawn.  A similar study recently
     became available from Maine, and the same conclusion was
     reached.


Announcements

     Chairman Lagarias announced that the ARB electronic bulletin
     board is now operational with a section devoted specifically to
     CaRFG issues.  Users can view and download CaRFG Advisory
     Committee and Subcommittee meeting agendas and summaries, as
     well as other information.  This service can be accessed by
     calling: (916) 322-2826.

     Future Subcommittee meetings are scheduled for July 18-19, 1995
     in Los Angeles, and September 19-20, 1995 at the ARB
     Headquarters building in Sacramento.

     The next meeting date for the Advisory Committee is tentatively
     set for Wednesday, October 11, 1995, tentatively located in Los
     Angeles.    


Adjournment

CBG Program Advisory and Subcommittee Activities