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AAA Calls For 90-Day Waiver Of Implementation Of New Fuel Requirement

16 June 2000

AAA Calls For 90-Day Waiver Of Implementation Of New Fuel Requirement

    WASHINGTON - In a letter today to EPA Administrator Carol Browner, AAA 
recommended for selected areas in the U.S. an immediate 90- day reprieve from 
the agency's current requirement that reformulated fuels (RFG-2) be offered as a
part of local clean air compliance.   On behalf of its 39 million U.S. members 
AAA asked for a temporary "cooling off" period because implementation of the 
regulations is contributing to high gas prices currently over $2.00 per gallon 
in certain sections of the country.   The association is asking EPA to help in 
providing relief to motorists, in particular, areas of the Midwest, Kentucky and 
Minnesota should be considered immediately.

    In the letter which follows, AAA points out that a 90-day waiver would 1)
provide motorists relief through the summer driving season when demand is high
for gasoline, 2) provide both EPA and DOE additional time to determine the
causes of current price levels and 3) give the oil industry additional time to
provide adequate supplies of RFG-2 fuel in compliance with EPA regulations.

    AAA is a not-for-profit federation of 86 clubs with 1,100 offices
providing nearly 43 million members in the United States and Canada with
travel, insurance, financial and auto related services.

    A copy of the letter to EPA Administrator Carol Browner follows.

    June 15, 2000

    The Honorable Carol Browner
    Administrator
    U.S. Environmental Protection Agency
    401 M Street, S.W.
    Washington, DC  20460

    Dear Administrator Browner:

    In the last few weeks certain sections of the country using reformulated
gasoline have witnessed dramatic increases in the price of fuel.  Motorists
are now paying gas prices well over $2.00 per gallon in certain sections of
the Midwest.  Moreover, there are wide price differentials within the region.
In fact, AAA concurs with a recent media statement by Assistant Administrator
Robert Perciasepe that "The (gasoline) prices being charged are unfair and
inappropriate.  We see no good explanation for why these price differentials
exist in the Midwest ... "

    Therefore, on behalf of more than 39 million AAA members in the United
States -- and particularly the more than 6 million AAA members residing in
Wisconsin, Michigan, Illinois, Minnesota, Indiana, Kentucky and Ohio -- we
recommend an immediate 90 day reprieve from your agency's current requirement
that reformulated fuels (RFG-2) be offered as part of local clean air
compliance programs.

    EPA is in a position to help motorists who need relief throughout the
country but, in particular, areas of the Midwest and Kentucky should be
considered immediately.

    A temporary "cooling off" period would offer the following advantages.
First, it would help alleviate price pressure which motorists are currently
enduring. We are now in the heaviest driving season of the year with strong
demand for gasoline.  Current price levels are placing an undue burden on
those required to commute daily to work.  Moreover, American families who have
made summer vacation plans are facing significant and unexpected increases in
their travel costs.  Secondly, it would provide both the EPA and DOE
additional time to determine the causes of the current price levels.  Finally,
a 90 day "cooling off" period would give the oil industry additional time to
provide adequate supplies of RFG-2 fuel in compliance with EPA regulations.

    AAA shares the EPA's desire to attain a healthful and clean environment,
and supports the use of clean-burning fuels where appropriate at reasonable
cost.  However, the sudden and high increase in fuel prices that has occurred
this summer is adversely affecting millions of motorists who must drive each
day to earn a living and make other mandatory trips by motor vehicle.  And no
reasonable explanation for the excessive costs has been determined.

    AAA has received many calls and letters from our members throughout the
United States objecting to the current high price of gasoline. At a minimum
they deserve an explanation of the reasons behind current prices.  I know you
are seeking that explanation.  In the meantime, we believe a 90 day suspension
of RFG-2 regulations for at least selected areas in the Nation would be in the
best interests of the traveling public.


    Sincerely,



    Susan G. Pikrallidas
    Vice President
    Public Affairs