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