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yr4< PRC~t~ UNITED STATES ENVIRONMENTAL AGENCY WASHING'TON. f_~` C. 20460

A 0 ~ :F~I~c ~)F IR ANL P.4Ci4i d N December 4, 1996 Dear Colleague: American

n Thank you for submitting comments on the Petroleum Institute's (API) petition for reconsideration of the Phase II reformulated gasoline (RFG) emission reduction standards for oxides of nitrogen (NOx) . As part of its analysis of API's petition, EPA asked the Department ofEnergy (DOE) to update its December 1994 study of the cost of the Phase II RFG (Estimating the Costs and Effects of Reformulated Gasolines, DOE/PO-0030) . Since the 1994 study, EPA, DOE, and API have worked to improve the refinery model upon which DOE's cost estimates are based; over 200 improvements and cha ges to the model have been made. final EPA recently received a letter fromAPI that expressed concern about preliminary DOE refinery cost modeling results . API has asked that DOE's draft report of its complete results be circulated for comment, and that comments on DOE's draft report be considered by EPA, prior to a decision on the API petition. n rm opportunity questions W The draft DOE report will be a detailed technical report, and should be available for release on Mo day, December 16. On Friday, December 20, EPA will hold a meeting to provide an explanation of the info ation contained in the draft DOE report; the meeting will offer an to ask clarifying

that may assist in your reviewof the refinery cost modeling results. This meeting will take place from 1 :00 to 3 :00 p.m

. in the first floor conference room at EPA's Judiciary Square building, 501 Third St ., N . . be opportunity EPA will allow25 days fromthe December 20 meeting for written comments on DOE's draft report to submitted to the docket (i .e., until January 14, 1997) . EPA will study the submissions fromall of the commenters, incorporate theminto its response, and attempt to complete its response within 45 days, by February 28, 1997. EPA is concerned about extending its decision timetable beyond the end of 1996, not wishing to encroach on the lead time needed by refiners to comply with Phase II standards . However, API has assured EPA that it supports a modest extension of the decision making timetable to give API and other interested parties an to reviewthe draft DOE report . meeting,Ifyou would like to receive a copy of DOE's draft report and/or to participate in the December 23 please notify Debbie Wood at (202) 233-9249. Thank you for your interest in the RFG program . Sincerely,

Charles N

. Freed Director -- Fuels and En rgy Division

1 Recycled/Recyclable Printed Oil Recycled . wdh Vegetable Based Inks on 100°6 Paper i40°% Postconsumert

### R

. Patrick Thompson, President New York Mercantile Exchange Four World Trade Center New York, NY 10048 R .T. Richards, General Manager Environment and Product Safety Department Texaco Inc. P.O. Box 509 Beacon, NY 12508 Stephen F. Harper Director, Corporate Studies Amoco (Mail Code 1302) 200 East Randolph Drive Chicago, IL 60601-7125 S. 'WilliamBecker, Executive Director STAPPA/ALAPCO 444 North Capitol St ., N.W . Washington, D

.C . 20001 Steven W

. Percy Chairman and Chief Executive Officer BP America Inc. 200 Public Sq. 6B Cleveland, OH 44114-2375 B.M . Harney, Manager Policy & Issues Management Mobil Oil Corporation 3225 Gallows Road Fairfax, VA 22037-0001 Joseph W

. Kaufman Director, Laws & Regulations Refining Division Phillips 66 Company Bartlesville, OK 74004 WilliamF. O'Keefe American PetroleumInstitute

### 12:20 L St ., N.W . Washington, D

.C . 20005-4070 Robert W

. King, Director Environmental Fuels Technology Sun Company, Inc. Ten Penn Center 1801 Market Street Philadelphia, PA 19103-16999 Andrea Bear Field Hunton &Williams 1900 K St ., N.W

. Washington, D

.C . 20006-1500 Robert A . Beck, Vice President Environmental Affairs Edison Electric Institute 701 Pennsylvania Ave., N.W . Washington, D.C. 20004-2696 Gerald A

. Esper, Director Vehicle Environment Department American Automobiles Manufacturers Association 7430 Second Avenue, Suite 300 

### Detroit, MI 48202 Robert E. Martinez Secretary Of Transportation Commonwealth of Virginia P.O . Box 1475 Richmond, VA 23218 Becky Norton Dunlop Secretary of Natural Resources Commonwealth ofVirginia P.O . Box 1475 Richmond, VA 23218 Gregory M

. Scott Collier, Shannon, Rill & Scott 305C K St ., N.W

., Suite 400

### Washington, D.C. 20007

James W

. Rue, Deputy Secretary 

### Pennsylvania Department of Environmental Protection P.O. Box 2063 Harrisburg, PA 17105-2063 WilliamJ . Beckert, Senior Vice President CITGOPetroleumCorporation Box 3758 Tulsa, OK 74102 Urven R . Sternfels, President National PetroleumRefiners Association 18~99 L St ., N

. W ., Suite 1000 Washington, D.C. 20036 Marla K . Benyshek, Senior Consultant Conoco Inc. P.O. Box 1267 Ponca City, OK 74602-1267 Stephen L. Gerritson, Executive Director Lake Michigan Air Directors Consortium 2350 East Devon Avenue, Suite 242 Des Plaines, IL 60018 J .L . Frank, Executive Vice President Marathon Oil Company 

### P.O . Box 3128 Houston, TX 77253-3128 Doug Durante, Director Clean Fuels Development Coalition 1925 North Lynn St ., Suite 725 Arlington, VA 22209 W .T. Flis, Coordinator Exxon Company, U.S .A. P .O . Box 2180 

### Houston, TX 77252-2180

### Carl J . LaFoy, Clean Fuels Manager

Clark 8182 Maryland Avenue ST. Louis, MO63105-3721 

### EdLward O

. Sullivan, Commissioner Department of Environmental Protection 17 State House Station Augusta, Maine 04333-0017 Bruce S. Carhart, Executive Director Oz;one Transport Commission 444 N . Capitol St ., N.W

., Suite 638 Washington, D.C. 20001