Tier II Issues

CEA MARtin Baelay Cos unions memos her 11 STATES Hillary her 11 (callmalawa) TIER II ISSUES A. PROCESS AND TIMING ISSUES (mtg wl states next WEEK) Final rule on gasoline and auto emissions must be published by end of 1999 in order to avoid losing a model year of coverage of autos. This will require that EPA get material over as early as possible (piecemeal if necessary); and that other agencies and White House offices raise any issues they want analyzed within a week or so. In particular, DOE and SBA need to be engaged. OMB, OSTP, CEA and OVP also may have outstanding analytic issues. DONE BY THANKSGIUING. ?? (TJ) (SBA) B. SUBSTANTIVE ISSUES IN RULE Californice everyone llse - 1. Sulfur content in gasoline: status can opt nito the Proposal: 30 ppm (refinery average) California program (ni tech remaio) Alternative: 5 ppm (refinery average) (x2) DOE Position: has moved closer to EPA. Focused on timing/per gallon cap, not 30 V. 5. DOE strongly opposed to 5 ppm. Relationship to proposed rule for sulfur in diesel fuel (going to OMB for clearance in December) USTR 2. Small refiner exemption: proposal; WGA letter; SBA position; WTO issue. SBA gap 12rekings wants proposed exemption retained; WGA proposes additional exemption for Western refiners; WGA proposal could be crafted to help address WTO issue. 3. Additional "bin" to accommodate new diesel engine technology Proposal: one additional bin, sought comment on upper bins Autos want: an additional bin; relationship to PNGV, CAFE. Autos also may want: elimination of time period after which additional bin disappears? 4. Technical review: auto COS. want it to be condition precedent for later years 5. "Interim reductions: proposal requires early year reductions, unlike California. Clean diesel fuel rule. (lowertuan 30; plus newer technology)