March 24, 2000

The Honorable Carol M. Browner
Administrator, United States Environmental Protection Agency
Ariel Rios Building
1200 Pennsylvania Ave., N.W.
Washington, D.C.  20460

Dear Ms. Browner:

     Enclosed for your consideration is the Report of the Small
Business Advocacy Review Panel (SBAR Panel or the Panel) convened
for the planned proposed rulemaking on Heavy-duty Engine
Standards and Diesel Fuel Sulfur Control that the Environmental
Protection Agency (EPA or the Agency) is currently developing.

     On November 12, 1999, EPA's Small Business Advocacy
Chairperson convened this Panel under section 609(b) of the
Regulatory Flexibility Act (RFA) as amended by the Small Business
Regulatory Enforcement Fairness Act of 1996 (SBREFA).  In
addition to the Chair, the Panel consisted of the Deputy Director
of EPA=s Office of Transportation and Air Quality, the Chief
Counsel for Advocacy of the Small Business Administration, and
the Deputy Administrator of the Office of Information and
Regulatory Affairs within the Office of Management and Budget.

     The Report includes a discussion of the options under
consideration for the proposed regulation under development, a
description of the Panel's outreach to small entity
representatives, summary of small entity comments received by the
Panel, and the Panel's findings and discussion.

                              Sincerely,

                                   

____________________________

Thomas E. Kelly, Chair                  John T. Spotila,
Small Business Advocacy                 Administrator
U.S. Environmental Protection Agency    Office of Information and Regulatory Affairs 
                                        Office of Management and Budget




____________________________
Jere W. Glover                     Christopher H. Grundler,
Chief Counsel for Advocacy         Deputy Director
U.S. Small Business Administration Office of Transportation and Air Quality
                                   Office of Air and Radiation
                                   U.S. Environmental Protection Agency

Enclosure