FINAL MEETING SUMMARY
                           MARCH 15, 1995


Dear Phase 2 RFG Transition Subcommittee Members:

     The California Energy Commission (CEC) and the Air Resources
Board (ARB) jointly  held a Phase 2 Reformulated Gasoline (RFG)
Transition Subcommittee meeting on
March 15, 1995.  Enclosed for your review is a draft meeting
summary.  If you have any comments regarding the summary, we will
address them at the next subcommittee meeting.  After discussing
any necessary corrections or revisions, the subcommittee will be
asked to approve the draft meeting summary as final.  Also,
attached to the summary for your information are copies of the
presentations which were made to the subcommittee, and a copy of
the meeting attendance list.

     The next Phase 2 RFG Transition Subcommittee meeting will be
held in Sacramento on May 17, 1995.  If you should have questions 
or need further assistance, please contact Mr. Greg Allen, 
Transition Subcommittee Secretary, at (916) 327-5599.

                              Sincerely,




                              Susan Brown, Deputy Division Chief
                              Forecasting and Planning Division

Enclosures

cc:     Mr. Dean C. Simeroth, Chief
        Criteria Pollutants Branch
        Stationary Source Division 
        Air Resources Board



        
bcc:  James D. Boyd, Executive Officer
        Air Resources Board


        Michael Scheible, Deputy Executive Officer
        Air Resources Board


        Peter D. Venturini, Chief
        Stationary Source Division
        Air Resources Board


        John Lagarias, Board Member
        Air Resources Board

        
                       Phase 2 Reformulated Gasoline

                          Transition Subcommittee


                          Final Meeting Summary
                              March 15, 1995

                                 
                      California Air Resources Board

                                  -FINAL-


                                 
I.   Introduction

     The Phase 2 Reformulated Gasoline Transition Subcommittee
     held a meeting on March 15, 1995 in Sacramento, from 9:00 am 
     to 12:00 pm.

     The key issues discussed were:

     o    Approval of Draft 1/18/95 Meeting Summary
     o    Pipeline Operator Concerns with Transporting Phase 2 RFG  
     o    Compliance Plan Update
     o    Refinery Production Update
     o    Petroleum Marketer Concerns Regarding RFG

     Attached for your information are copies of the
     presentations which were made to the subcommittee, and a
     copy of the meeting attendance list.  Inquiries about this
     meeting summary should be directed to Mr. Greg Allen,
     Transition Subcommittee Secretary,
     at (916) 327-5599.


II.  Approval of Draft 1/18/95 Meeting Summary
     
     CEC staff noted that their "California RFG Balance Update",
one of the attachments to     the draft summary, contained an
error on Figure 6.  A corrected version of the    attachment
dated March 15, 1995 was submitted and the summary was approved
as   final. 

     Contact: Greg Allen  (916) 327-5599
 

III.      Pipeline Operator Concerns with Transporting Phase 2 RFG

     Mary Morgan, with Santa Fe Pacific Pipeline, gave a
presentation (copy attached)  regarding several unresolved issues
associated with the pipeline transport of Phase 2 RFG.  The
main focus of the discussion was on fungibility of products from
sources   operating under a small refiner exemption or a
variance, and the potential impact on downstream compliance
demonstration.  Other topics discussed included transmix blending 
and ethanol blending.          
          
     Contact: Mary Morgan  (213) 486-7830    


IV.  Compliance Plan Update

     ARB staff gave a brief presentation (copy attached)
describing the Compliance Plan process and requirements. 
Plan updates are required from each refiner on a quarterly  basis
until September 1995, and then monthly through project completion.  
Based on the most recent updates, all refiners are on schedule. 
     
     Contact: Mike Jaczola  (916) 327-1515
  

V.   Petroleum Marketer Concerns Regarding RFG

     Fungibility of fuels containing different oxygenates
continues to be a major concern of independent marketers. 
Mixing fuels which individually comply with RFG specifications 
yet contain different oxygenates may result in a fuel which does not 
comply.  Although this has been a problem since the introduction of 
oxygenated fuels in 1992, it will continue to be a concern with 
Phase 2 RFG.  In order to provide refiners flexibility, the 
regulations only specify the required oxygen content of gasoline, 
but not the type of oxygenate.    
     
     Independent marketers have also expressed concerns regarding
RVP requirements.   Dean Simeroth provided a brief explanation of
these requirements and their seasonal as     well as geographical
variation.  Phase 2 RFG RVP requirements only apply during the
summer; during the rest of the year RVP requirements are
specified by the California   Department of Food and Agriculture
Division of Measurement Standards (DMS).  Due     to limitations
in the gasoline distribution system, there may be certain areas
where it is    very difficult to obtain fuel which meets the
applicable RVP limit.  In response to this   concern, ARB is
currently reevaluating the RVP requirements and soliciting input
from the petroleum industry regarding appropriate modifications 
to this portion of the  regulation such that area requirements 
are more closely aligned with the existing distribution system.

     Contact: Greg Allen (916) 327-5599           
     
                          List of Attachments to
                       Phase 2 Reformulated Gasoline
                          Transition Subcommittee
                           Final Meeting Summary
                              March 15, 1995


                                           

          1.   Meeting Agenda 

          2.   CARB Phase 2 RFG Pipeline and Terminal Issues
          
          3.   Compliance Plan Update
          
                                           
                                  
                                Phase 2 RFG                         
                          Transition Subcommittee
                           Final Meeting Summary
                              March 15, 1995 


                           
                               Attachment 1
                                     
                              Meeting Agenda
                                    
                                    
                            
                                Phase 2 RFG                         
                           Transition Subcommittee
                            Final Meeting Summary
                               March 15, 1995 
                                    
                                Attachment 2
                                    
                  CARB Phase 2 RFG Pipeline and Terminal Issues
                  
                                    
                               Phase 2 RFG                         
                          Transition Subcommittee
                           Final Meeting Summary
                              March 15, 1995 
                            
                                    
                              Attachment 3
                                    
                         Compliance Plan Update
                                    
                                    
                            
                               Phase 2 RFG                         
                         Transition Subcommittee
                          Draft Meeting Summary
                               May 17, 1995 
                                    
                           
                              Attachment 4
                                    
                          Meeting Sign In Sheet
                                    

CBG Program Advisory and Subcommittee Activities