CALIFORNIA AIR RESOURCES BOARD
                                
                         Lincoln Plaza
                    Auditorium, First Floor
                         400 "P" Street
                         Sacramento, CA
                                
                          May 15, 1992
                           8:30 a.m.
                                
                             AGENDA

                                                             Page

92-7-1    Public Hearing to Consider the Adoption of          001
          Amendments to the Criteria for Designating Areas
          of California as Nonattainment, Attainment, or
          Unclassified for State Ambient Air Quality Standards.

92-7-2    Public Meeting to Consider a Status Report on       091
          Delaying Compliance by Independent Refiners with
          the Requirements of the Phase 2 Reformulated
          Gasoline Regulations.

                         ITEM NO.: 92-7-2

Public Meeting to Consider a Status Report on Delaying Compliance
by Independent Refiners with the Requirements of the Phase 2
Reformulated Gasoline Regulations.

                          RECOMMENDATION

The staff recommends that the Air Resources Board (ARB or Board)
not schedule a rulemaking hearing to consider providing
independent refiners with a delay in compliance with the Phase 2
reformulated gasoline regulations.

                            DISCUSSION

At a November 22, 1991, public hearing, the Board approved
regulations affecting the composition of commercial gasoline sold
in California.  These regulations are referred to as the Phase 2
reformulated gasoline regulations, and include a comprehensive
set of specifications for eight gasoline properties.  The
regulations will require full compliance throughout the gasoline
distribution system beginning April 1, 1996.

At the November 22, 1991, public hearing, the Board heard
testimony from one independent refiner requesting a delay in the
compliance date for the sulfur content, olefin content, T90
distillation temperature, and T50 distillation temperature
specifications.  The Board approved the regulations without any
delay for independent refiners, but directed the staff to
investigate the status of independent refiners further, and to
return to the Board with a recommendation on the appropriateness
of considering a delay for independent refiners in a subsequent
rulemaking.

                       SUMMARY AND IMPACTS

The Board staff has completed its evaluation, which includes a
financial analysis of independent refiners in California.  In its
analysis, the staff evaluated existing data, collected and
evaluated additional information on the financial status of
California refiners, held a consultation meeting with interested
parties, and met with representatives of both the independent and
the large refiners in California.  Based on this analysis, the
Board staff believes that the independent refiners have the
financial resources necessary to comply with all of the Phase 2
reformulated gasoline regulations.