FINAL

                     PHASE 2 RFG ADVISORY COMMITTEE

                   MEETING SUMMARY   OCTOBER 18, 1994

Introduction

The Phase 2 Reformulated Gasoline (RFG) Advisory Committee met on
October 18, 1994, in the second of a series of planned meetings. 

The Advisory Committee's Chairwoman, Miss Jacqueline Schafer,
began the meeting by  giving a brief introduction to the
Performance, Transition, and Public Education Subcommittee's
activities.  The Performance Subcommittee has met three times
prior to the October 18, 1994 Advisory Committee meeting, and the
Transition and Public Education Committees have both met two
times.  Each subcommittee has developed a mission statement and
defined key activities and schedules for the next two years
(attached).  Miss Schafer related that confidentiality and
antitrust concerns are key issues affecting the transition
subcommittee's work and, to a lessor extent, the work of the
other subcommittees.  The      Air Resources Board (ARB),
California Energy Commission (CEC), and the Attorney General's
Office jointly developed guiding principles regarding both
confidentiality and antitrust concerns.  Miss Schafer proposed
that these principles serve as guidelines for the committee and
subcommittees.  The guiding principles were enclosed in the
material handed out at the meeting and are attached to this
summary.


Presentation on Performance Subcommittee Efforts

Mr. Dean Simeroth of the ARB discussed the Performance
subcommittee compatibility and performance test program.  The
following points were made:

  -  The subcommittee has developed an on-road and an off-road
     draft test protocol.  Test protocols include test schedules,
     description of fuel and fleets, emission inspections, data
     collection and analyses, and fuel sampling and analyses.


  -  The test schedule has a preliminary phase of fleet
     selection, contracting arrangements, and pretest inspections
     from November 1994 to January 1995.  Actual testing extends
     from February 1995 to August 1995.

  -  Test  fuels specifications and make-up were given as a range
     of values.  The subcommittee recommended the use of "normal"
     fuels, i.e., fuel used by the general public as the control
     fuel.  This will help contain cost and avoid fuel changes in
     the control vehicles.

  -  The on-road test fleet will include at least 1,000 test
     vehicles and potentially 1,000 control vehicles, both pre-
     and post-1985 vehicles.  The off-road fleet testing has
     already begun for some utility, lawn and garden equipment; 
     arrangements have been made for testing of marine and
     agricultural engines.

  -  To supplement the vehicle and engine testing, bench testing
     will be conducted with Phase 2 test fuel modified to contain
     ethanol, a low aromatic Phase 2 test fuel, RFA (baseline
     fuel), and Phase 2 test fuel to test material compatibility.

A copy of the presentation is attached.


Presentation on Transition Subcommittee Efforts

Mr. Gerry Bemis of the CEC presented a monthly schedule of the
Transition Subcommittee key activities and discussed the
projected California gasoline supply and demand situation.  In
summary:

  -  In October, the subcommittee evaluated historical and
     anticipated California supply, demand, and reserve capacity.
     

  -  In November and December 1994 and January 1995, the
     subcommittee is scheduled to address distribution issues,
     regional issues, and federal RFG implementation issues
     respectively.

  -  Preliminary CEC forecasts indicate that supplies of
     California RFG will be adequate.

  -  The CEC and ARB will refine the RFG supply data using the
     Joint CEC/ARB RFG survey form.   Cooperation from refiners
     will enable the CEC to make more accurate forecasts of
     expected production, maximum production, and import volumes.

  -  All data will be aggregated so that no individual provider's
     data can be ascertained.

  -  Fuel suppliers' plans are dynamic; therefore, the CEC will
     update data as the implementation date approaches.  The CEC
     will meet with individual data providers in November and
     December 1994; this information will be summarized and
     presented to the Transition subcommittee on January 18, 1995
     and to the full Advisory Committee on February 1, 1995.

A copy of the presentation is attached.


Presentation on Public Education Subcommittee Efforts

Mr. Ron Friesen of the ARB presented the Public Education
Subcommittee's outreach program.   The outreach program includes,
an outreach plan, fact sheets, a newsletter, a proposal for a
public relations contract, and other products.

  -  The outreach plan is the blueprint for targeting key
     audiences, developing messages, and exploring appropriate
     media options.

  -  The subcommittee expects to develop a series of facts sheets
     that are intended to inform the general public about RFG
     issues.

  -  Also, the subcommittee expects to develop a quarterly
     newsletter which is intended for the more informed
     individual regarding advisory committee and subcommittee
     activities.

  -  The subcommittee will propose a public relations contract to
     advise on the development of the outreach plan.

A copy of the presentation is attached.


Open Discussion and Comments Following the Presentations

Chairwoman Schafer announced the availability of an ARB
electronic bulletin board which would have a portion devoted
specifically to RFG issues.  Users would be able to view and
download, among other things, RFG Committee and Subcommittee
meeting agendas and summaries.  This service is scheduled to go
on-line in November 1994 and will have an access number of (916)
322-2826.  Some of the comments from the committee were as
follows.

  -  Funds need to be set aside for purchase of RFG and for RFG
     public announcements; Chairwoman Schafer requested 
     committee members to contribute.

  -  Texaco expressed concerns regarding the use of low-aromatics
     RFG.  Texaco based these concerns on fuel-related problems
     experienced by one of its affiliates; the problems were
     attributed to conventional gasoline with a low aromatic
     hydrocarbon content.

  -  The ARB is monitoring United States Environmental Protection
     Agency (U.S. EPA) RFG activities and the implementation of
     the federal program.  Also, a U.S. EPA representative is on
     the Transition subcommittee and will report to the Advisory
     Committee on February 1, 1995.

  -  The federal Energy Information Administration has issued a
     report on supply and demand of EPA RFG.  Critical issues in
     implementing EPA RFG appear to be administrative in nature.

  -  Although oil company participation on the Transition
     subcommittee can be characterized as "light," the CEC and
     ARB are having one-on-one meetings with the oil companies to
     gather needed information.

CBG Program Advisory and Subcommittee Activities