IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SOUTHERN ALLIANCE FOR CLEAN ENERGY and ENVIRONMENTAL IN~'EGI2ITY PROJECT, Plaintiffs,

v. LISA P.JACKSON,in her official capacity as Administrator, United States Environmental Protection Agency,

Defendant. Casc No. 12-~V-00338-ESI~ Ion. Mien S. l~uvelle

CONSENT DECREE WHF.,REAS,Plaintiffs Southern Alliance fox Clean Energy and Enviroxunental Integrity Project filed their Complaint (Civil Case No. 12-CV-1814)on March 2, 2012,pursuant to Section 304(a) ofthe Clean Air Act ( "Act"), 42 U.S.C. § 7604(a); WHEREAS,Plaintiffs allege that Defendant Lisa P. Jackson, in her official capacity as Administrator of the United States Environmental Protection Agency (hereinafter "EPA"),has failed to perform a nondiscretionary duty pursuant to section 505(b}(2} ofthe Act, 42 U.S.C. 7b61d(b)(2}, to grant or deny, within b0 days after it was filed, a petition dated February 28, 2011 ( "Shawnee Petition"),requesting that EPA object to proposed Title V operating pezmit No. V-09-002-R1 for the Tennessee Vat.ley Authority's Fossil Plant issued by the Commonwealth ofKentucky ( "Shawnee Permit");WHEREAS,the Shawnee Petition superseded and constructively withdrew an earlier

petition dated December 16, 2010,in which Plaintiffs requested that EPA object to the Shawnee Permit; WHEREAS,Plaintiffs and the EPA (collectively "the Parties")wish to effectuate a settlement in the above

-captioned matter without expensive and protracted litigation; WHEREAS,the Parties consider this Consent Decree ( "Decree")to be an adequate and equitable resolution ofthe claims in the above

-captioned matter; and WHEREAS,the Court, by entering this Decree,finds that the Decree is fair, reasonable, in the public interest, and consistent with the Act, 42 U.S.C, ~§ 7401 et seq. NOW THEREFORE,before the taking oftestimony,without trial or deternunation of any issue offact or law,and upon the consent ofthe Parties, it is hereby ORDERED,ADJUDGED,and DECREED that:

This Court has subject matter jurisdiction over the claims set forth in the Complaint and to order the relief contained in this Decree. Venue is proper in the 'United States District Court for the District ofColumbia. 2. On or before September 1, 2012,EPA shall sign its response to the Shawnee Petition. EPA shall promptly deli~•er notice ofthis action to the Office ofthe Federal Register for publicarion. Following such transmission, EPA shall not take any step (other than as necessary to correct any typographical or other errors in form} to delay or otherwise interfere with publication ofsuch notice in the Federal Register. 3. IfEPA's icspanse to the Shawnee Petition includes the granting ofany portion ofthe Shawnee Petition in whole or in part, EPA also shall promptly n~ansmit it to theKentucky Energy and Environment Cabinet, Department for Environmental Protection,

Division ofAir Quality, 200 Fair Oaks Lane, First Floor, Frankfort,KY 40601. 4. Any provision ofthis Decree may be modified by: (a)written stipulation ofthe Panties with notice to the Court; or (b)the Court following motion of any Party to this Decree, pursuant to the Federal Rules ofCivil Procedure, and upon consideration ofany response by the non-moving Party and any reply. 5. Plaintiffs and the EPA shall not challenge the terms ofthis Decree or this Court's jurisdiction to enter and enforce this Decree.. 6. The deadline for filing a motion for costs of litigation (including attorneys' fees) for activities performed prior to the execution ofthis Decree is hereby extended unti160 days after this Decree is entered by the Court. During this time, the Parties shall seek. to resolve infoi7nally any claim for costs oflitigation (including attorneys' fees) and if they cannot, will submit that issue to The Court for resolution. Nothing in this paragraph shall be construed as an admission or concession by the EPA that Plaintiffs are entitled to or eligible for recovery ofany costs or attorneys' fees. 7. Nothing in this Decree shall be construed to limit or modify any discretion accorded EPA by the Act or by general principles of administrative law in taking the actions which are the subject ofthis Decree, including the discretion to alter, amend or revise any responses oz• final actions contemplated by this Decree. EPA's obligation to perform the actions specified rn Paragraph 2 by the time specified therein does not constitute a limitation or modification ofEPA's discretion within the meaning ofthis paragraph.8. Nothing in this Decree shall be construed as an admission ofany issue offact or

law nor to waive or limit any claim or defense,on any grounds,related to any final action EPA may take with respect to the Shawnee Permit. 9. Nothing in this Decree shall be construed to confer upon the District Court jurisdiction to review any final decision made by EPA pursuant to this Decree. Nothing in this Decree shall be construed to confer upon the district court jurisdiction to review any issues that

are within the exclusive jurisdiction ofthe United States Courts ofAppeals pursuant to Section 307(b)(1)of the Act,42 U.S.C. § 7607(b)(1). Nothing in the terms of this Decree shall be construed to waive any remedies or defenses the Parties may have under Section 307(b)(1)of the Act,42 U.S.C. § 7607(b)(1). 10. The obligations imposed on EPA under this Decree can only be undertaken using appropriated funds. No provision ofthis Decree shall be interpreted as or constitute a commitment or requirement that EPA obligate or pay funds in contravention ofthe AntiDeficiency Act, 31 U.S.C. § 1341, or any other applicable federal statute. The possibility exists that circumstances outside the reasonable control ofEPA could delay compliance with the deadline established in Paragraph 2. Such situations include,but are not limited to, a government shut-down such as occurred in 1995 and 1996, or' catastrophic environmental events requiring iirunediate and/or time

-consuming response by EPA. Should a delay occur due to such circumstances,any resulting failure to meet the deadline set forth herein shall not constitute a failure to comply with the terms ofthis Decree, and any deadlines occun-ing within

one hundred twenty {120)days ofthe termination ofthe circumstances causing the delay shall be extended one day for each day ofthe circumstances causing the delay. EPA will provide Plaintiffs with notice as soon as is reasonably possible under the circumstances in the event thatEPA invokes this provision ofthe Decree and will provide Plaintiffs with an explanation of

EPA's basis for invoking this provision. Plaintiffs may challenge the invocation ofthis provision ofthe Decree under the dispute resolution terms ofthis Decree. I 1. Any notices required or provided for by this Decree shall be made in writing,via facsimile or other means,and sent to the following: For Plaintiffs: Jennifer Peterson Environmental Integrity Project One Thomas Circle, Suite 900 Washington,DC 20036 Telephone: (202)263-4453 Fax: (202) 296-8822 Email: JPeterson@environmentalintegrityproject.org For Defendants: Heather E. Lange Environmental Defense Section :Environment and Natural Resources Division United States Department ofJustice P.O. Box 7611 Washington,D.C. 20044 Attn: DJ # 9052419208 Telephone; (202)514-4206 Fax: (202)514-8865 Email: Heather.Gange@usdoj.gov Vera Karnytak United States EPA Region 4 61 Forsyth St., S.W. Atlanta, GA 30303 Telephone: (404)562-9589 Email: Kornylak.Vera a.epa.gov Gretchen Graves United States EPA Office ofGeneral Counsel 1200 Pennsylvania Avenue,NW Washington DC 20460 Telephone: (202)564-5581Email: Graves.Gretchen(aepa.gov

or such other person as either Party may subsequently identify in writing to the other Party. 12. In the event ofa dispute between the Parties concerning the interpretation or implementation of any aspect of this Decree,the disputing Party shall provide the other Party with a written notice outlining the nature ofthe dispute and requesting informal negotiations. If the Parties cannot reach an agreed-upon resolution within thirty (30)days after receipt ofthe notice, any Party may move the Court to resolve the dispute. No motion or other proceeding seeking to enforce this Decree or for contempt ofCourt shall be properly filed unless Plaintiffs have followed the procedure set forth in this Paragraph, and provided EPA with written notice received at least ten (10} business days before the filing ofsuch motion. 13. The Parties agree and acknowledge that before this Decree can be finalized and entered by the Court,EPA must provide notice in the Federal Register and an opportunity for comment pursuant to Clean Air Act section 113(8), 42 U.S.C. § 74130;). After this Decree has undergone an opportunity for notice and comment,the Administrator and/or the Attorney General, as appropriate, shall promptly consider any such written comments in determining whether to withdraw or withhold consent to this Decree, in accordance with section 113(g)of the Clean Air Act. Ifthe federal government elects not to withdraw or withhold consent to this Decree,the Parties shall promptly file a motion that requests the Court to enter this Decree. 14. The Court shall retain jurisdiction to determine and effectuate compliance with this Decree. When EPA's obligations under Paragraph 2 have been completed, and Plaintiffs' claims for costs oflitigation have been resolved pursuant to the process described in Paragraph 6,the above

-captioned matter shall be dismissed with prejudice. EPA shall fle an appropriate notice with the Court so that the Clerk may close the fle.15. The undersigned representatives of each Party certify that they are fully

authorized by the Party they represent to bind that Party to the terms ofthis Decree. Respectfully submitted, Ignacia S. ivloreno Assistant Attorney General United States Department of Justice Environment and Natural Resources Division

Dated: , 2012 By: ,~~ %~`~l ~ /~- Heather E. Gange Environmental Defense Section D.C. Bar No. 452619 U.S. Department ofJustice P.O. Box 7611 Washington,D.C. 20044 Voice: (202)514-4206 Fax: (2Q2) 514-8865 Email: Heather.GangeLusdoj.gov Cot.rnsel, for EPA

Dated: ~rl'i~~,`~ . 2U 12 °.~~~~~ ~~ ~, ~'3 nni.fer Peerson J Environmental Integrity Project One Thomas Circle, Suite 900 Washington, DC 20036 Telephone: (202)263-4453 Fax: (202) 2~6-8822 Email: JPeterson@environmentalintegrity project.org Counsel for Plcrintzffs

~~ 012I~EIZ~i~: , 2012

Hon. Ellen S. Huvelle United States District Judge