California Reformulated Gasoline Program
                        Transition Subcommittee
                  Final Summary for September 20, 1995


I.   Introduction

     The California Reformulated Gasoline Transition Subcommittee
     held a meeting on
     September 20, 1995 in Sacramento, from 9:00 am to 12:00 pm.

     The key issues discussed were:

     o    Pipeline & Terminal Operations for California RFG
     o    CEC Preliminary Analysis of Fuel Distribution Patterns
     o    California RFG Balance Update
     o    Regulatory Issues 
            -  September 6, 1995 "Housekeeping" Consultation Meeting  
            -  ARB Variance Guidelines & SB 709

     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.  Pipeline & Terminal Operations for California RFG
     
     Representatives from both Santa Fe Pacific Pipeline, and
     CALNEV Pipeline/GATEX, made presentations regarding how
     their respective pipeline and terminal operations are
     evolving in order to accommodate the introduction of cleaner
     burning gasoline.  Topics addressed included general
     pipeline and terminal operations and layout, pipeline
     fungible specifications, transmix blending and processing,
     and ethanol blending. Each speaker provided copies of their
     presentation materials which are attached to this meeting
     summary.

     Contact: Mary Morgan, Santa Fe Pacific Pipeline (213) 486-7830 
              Rob Kennedy, CALNEV Pipeline/GATEX (909) 387-9517


III.      CEC Preliminary Analysis of Fuel Distribution Patterns

     An analysis of past motor vehicle gasoline production
     volumes and distribution patterns was presented by
     California Energy Commission staff. Much of the analysis was
     based on information obtained pursuant to the Petroleum
     Industry Information Reporting Act.  The analyses separately
     addressed both northern and southern California production
     and distribution patterns for the refining centers in each
     area.  For northern California, the analysis also included
     efforts to determine the amount of gasoline exported out of
     state via pipeline which flows back into California by
     tanker truck.  A copy of the presentation materials is
     attached to this meeting summary.    

     Contact: James Fore  (916) 654-4870
          
IV.  California RFG Balance Update
     
     On October 18, 1994, California Energy Commission staff
     presented an initial assessment of the RFG supply/demand
     balance to the Transition Subcommittee.  As additional
     information becomes available staff updates their analysis
     and presents results to the subcommittee.  Today, CEC staff
     presented the latest of these updates dated September 20,
     1995 (copy attached).  This update is based upon new
     information obtained from the CEC/CARB Joint RFG Survey
     forms, updated CARB RFG Compliance Plans, and ongoing
     communications with industry representatives. 

     The primary finding of this evaluation is that California
     refiners have the ability to provide adequate volumes of RFG
     during the first full year of the regulation, even under a
     worst case high demand scenario.  The analysis indicates
     that gasoline demand has been relatively flat since 1992 and
     is not expected to approach the worst case high demand
     scenario growth rate of two percent by 1996.

     Contact: Gordon Schremp  (916) 654-4887

V.   Regulatory Issues 
          
     ARB staff provided a brief overview of the September 6, 1995
"Housekeeping"  Consultation Meeting which was held in order
to discuss various requested  modifications to the CaRFG
regulations.  Areas of concern included downstream  blending
of oxygenates (CARBOB), averaging methodologies and reporting 
requirements, and various considerations regarding RVP
allowances.
     
     Staff also provided a brief status report on the ARB
variance guidelines and SB 709 which if signed into law
requires a variance procedure for CaRFG to be adopted as a  state
regulation by ARB.  At the time of this meeting the bill had been
approved by both legislative bodies and was awaiting signature
by the Governor.  ARB is proceeding on the assumption that the 
legislation will be approved and is working expeditiously on 
preparing such a regulatory item for presentation to the board.
          
     Contact: Dean Simeroth  (916) 322-6020

CBG Program Advisory and Subcommittee Activities