Phase 2 Reformulated Gasoline
Transition Subcommittee
Final
Meeting Summary
January 18, 1995
Dear Phase 2 RFG Advisory/Subcommittee Members and Interested
Parties:
Enclosed is the Final Meeting Summary for the January
18, 1995,
Transition Subcommittee meeting. If you have questions about
this Final Meeting Summary, please contact me at (916) 322-6020,
or Mr. Greg Allen, Transition Subcommittee Secretary at (916)
327-5599.
Sincerely,
Dean C. Simeroth, Chief
Criteria Pollutants Branch
Enclosure
Phase 2 Reformulated Gasoline
Transition Subcommittee
Final
Meeting Summary
January 18, 1995
California Air Resources Board
I. Introduction
The Phase 2 Reformulated Gasoline Transition Subcommittee
held a meeting on January 18, 1995 in Sacramento, from 8:30
am to 12:00 pm.
The key issues discussed were:
o California Phase 2 RFG Supply/Demand Update
o Supply/Demand Evaluation of Oxygenates
o Independent Marketers' Concerns Regarding Phase 2 RFG
o Southern California's Transition to U.S. EPA Phase 1
RFG
Attached for your information are copies of the
presentations which were made to the subcommittee, and a
copy of the meeting attendance list. Inquires about this
meeting summary should be directed to Mr. Greg Allen,
Transition Subcommittee Secretary,
at (916) 327-5599.
II. California Phase 2 RFG Supply/Demand Update
On October 18, 1994 the Transition Subcommittee conducted a
briefing on the California gasoline supply/demand balance.
California Energy Commission staff presented an update of
that evaluation entitled "California RFG Balance Update,
January 18, 1995" (copy attached). This update contains
aggregated gasoline production estimates from both the
recently completed CEC/CARB Joint RFG Survey and updated
CARB RFG Compliance Plans. Topics addressed include
California gasoline demand, California RFG balance, gasoline
markets outside of California, and California gasoline
movement. The primary finding of this evaluation is that
California refiners have the ability to meet a high demand
scenario, through the year 2000, without the need to import
finished CARB Phase 2 RFG from outside California, import
additional blendstocks or make additional refinery
modifications to expand RFG production capacities.
Pipeline export demand for conventional gasoline has
historically been supplied by a combination of California
refinery production and imports from outside the state.
However, as California refineries gradually increase their
RFG production to meet a steadily increasing demand, they
will produce lesser amounts of conventional gasoline.
Therefore, without increases in California refinery
production capacity, additional imports of conventional
gasoline may be needed to meet the pipeline export demand.
Contact: Gordon Schremp (916) 654-4887
III. Supply/Demand Evaluation of Oxygenates
Numerous uncertainties have impacted the supply and price of
oxygenates used to meet both state and federal RFG mandates.
Although some of these uncertainties have been settled, their
existence has caused the industry to delay or change some of its
plans to develop additional oxygenate production capacity. To
date, these changes and delays have not caused any severe
shortages in the market, but have led to a tighter market than
originally anticipated.
James Fore of the CEC presented a paper entitled "The 1995
Oxygenate Outlook" (copy attached). Issues addressed include
market uncertainties, impact of the federal RFG program on the
methanol market, current and forecast supply evaluations, and a
look at the MTBE market.
Contact: James Fore (916) 654-4870
IV. Independent Marketers' Concerns Regarding Phase 2 RFG
Evelyn Gibson, CIOMA's Director of Government Affairs,
presented a brief overview of the independent marketers'
concerns regarding the implementation of RFG
regulations in California. Issues of concern include
fungibility, useability, compliance, storage problems, and
increasing costs of operation. Copies of slides which were
presented are included as an attachment to this meeting
summary.
Subsequent to the meeting, Evelyn provided the subcommittee
secretary with a two page written summary of CIOMA's
concerns. Although it was not available during the meeting, a
copy has been included in the attachments to the meeting summary.
Contact: Evelyn Gibson (916) 373-0294
V. Southern California's Transition to U.S. EPA Phase 1 RFG
During previous subcommittee meetings it was suggested that
the subcommittee monitor the current transition to Federal
Phase 1 RFG for the purpose of discovering any problems
which can be averted or circumvented during the transition
to CARB Phase 2 RFG in 1996. The CEC, in consultation with
the ARB, developed a questionnaire to capture some of the
current transition experiences of refiners, marketers, and
pipeline companies in California. While the completed
questionnaires are not due back until January 31, 1995, CEC
staff obtained by telephone contact some preliminary
information regarding the progress of the transition to
date. Tom Glaviano of the CEC presented these preliminary
findings in a paper entitled "Southern California Transition
to EPA Phase 1 RFG: A Preliminary Assessment " (copy
attached). In summary, all respondents indicate that there
is more than adequate supply of Federal RFG in southern
California, with no production problems experienced at the
refineries. The most common complaint regarding the
transition to Federal RFG was in reference to the
administrative burden of the federal reporting requirements,
including difficulty in interpreting some of these
requirements and the large volume of associated paperwork.
Contact: Tom Glaviano (916) 654-4874
List of Attachments to
Phase 2 Reformulated Gasoline
Transition Subcommittee
Final Meeting Summary
January 18, 1995
1. Meeting Agenda
2. California RFG Balance Update
3. The 1995 Oxygenate Outlook
4. Independent Marketers' Concerns Regarding RFG
5. Southern California Transition to EPA Phase 1 RFG
Phase 2 RFG
Transition Subcommittee
Final Meeting Summary
January 18, 1995
Attachment 1
Meeting Agenda
Phase 2 RFG
Transition Subcommittee
Final Meeting Summary
January 18, 1995
Attachment 2
California RFG Balance Update*
*The January 18, 1995 version of this document which was
distributed with the draft meeting summary contained an error on
Figure 6. This error was corrected at the March 15, 1995
subcommittee meeting. Enclosed is the corrected version of this
document dated March 15, 1995.
Phase 2 RFG
Transition Subcommittee
Final Meeting Summary
January 18, 1995
Attachment 3
The 1995 Oxygenate Outlook
Phase 2 RFG
Transition Subcommittee
Final Meeting Summary
January 18, 1995
Attachment 4
Independent Marketers' Concerns Regarding RFG
Phase 2 RFG
Transition Subcommittee
Final Meeting Summary
January 18, 1995
Attachment 5
Southern California Transition to EPA Phase 1 RFG
CBG Program Advisory and Subcommittee Activities