The federal government will soon begin a two-stage program to support rapid development of synthetic fuels production capacity. Existing regulatory requirements may impede that development. A national decision favoring synfuels development may entail waiving regulatory requirements. Noting that these requirements protect important public values such as environmental values and interests of the states in controlling their own development, this study proposes that the national decision be implemented in ways doing minimum damage to these values. It suggests using information generated in the first stage to reduce conflict between development and regulations. It proposes mechanisms for preserving a significant state role in synfuels facility siting consistent with the national program, and procedures for considering waivers of environmental and related regulations in the context of an overall development plan, thus allowing resolution of conflict by program redesign rather than only by waiver. These proposals call for more extensive federal planning of synfuels development than current legislation appears to contemplate.