ATTACHMENT B

- RULE DEVELOPMENT PROCESS

Calendar Year 2008
January 02, 2008 RECLAIM Working Group was formed
February 07, 2008 Public Consultation Meeting was conducted
April 03, 2008 April 30, 2008 Preliminary Draft Staff Report was released. Two Wor king

Group Meetings were conducted.
May 1, May 15, May 28, June 20, July 02, 2008 Request for Proposal to seek expert consultants was drafted

and discussed with the RECLAIM Working Groups on three Working Group Meetings from May to July. A Stationary

Co mmittee Meeting was also conducted on June 20.
July 11, 2008 July 16, 2008 RFP was presented to the Governing Board, and received

Governing Board’s approval to release on July 11. A Bidder Conference was conducted on July 16
August 1, 2008 August 30, 20 08 Staff formed a task force to evaluate the six proposals

received & make recommendation to the Governing Board
September 5, 2008 Staff presented the recommendation of consultants to the

Governing Board and received an approval to hire ETS, Inc.

and NEX IDEA
September 15, 2008 October 15, 2008 The consultants visited the facilities and conducted their

feasibility and cost analyses, and the draft analyses were

released to the facilities for comments.

December 16, 2008 NEXIDEA finalized the analyses for c oke calciner and

sulfuric acid plants. ETS Inc. finalized the analyses for glass

and cement facilities.

Calendar Year 2009

January

– April 20, 2009 ETS Inc., their subcontractors, and staff conducted a second

visit to all refineries. ETS, Inc. relea sed their draft analyses

three additional times to the refineries for comments and finalized their analyses on April 20, 2009.

June 23, 2009 (Public Workshop and CEQA Scoping Meeting) Staff conducted a Public Workshop and CEQA Scoping

Meeting. At this st age, staff proposed about 7 tpd RTC

reduction from 2012

- 2017 with a total costs (present worth value for 25 years) estimated to be $883

- $944 million dollars and a weighted average cost effectiveness of about $16 K per

ton SOx reduced. Staff released the draft staff report, Notice of Preparation for Environmental Assessment, and draft rule.

June 19, 2009 November 20, 2009 Two Stationary Committee Meetings were conducted in 2009.

In addition, from March

– December, staff conducted several2 meetings with W SPA and the refineries to discuss issues related to costs, baseline and RTC shave methodologies.

December 11, 2009 December 15, 2009 The Governing Board established a Refinery Committee

Group and conducted the first Refinery Committee Meeting

on December 11 and a WGM on December 15. At this stage, staff’s estimates were 6.2 tpd emission reductions from 2005 baseline, 7.5 tpd RTC reduction, 64%

- 67.5% RTC shave, total estimated costs of $745 million, and cost effectiveness of about $13 K per ton SOx reduc ed.

Calendar Year 2010
January 08, 2010 (Informational Hearing) Staff conducted an “Informational Hearing” to inform the

Governing Board and the public about the development of PAR XX, the main issues associated with PAR XX, and a proposed Work Plan for 2010.

March 10, 2010

– June 15, 2010 As called for under the Work Plan and approved by the

Governing Board, staff hired a Norton Engineering Inc. (NEC) to review ETS, Inc. and NEXIDEA’s feasibility and costs analyses. NEC and staff visited the refinerie s in March/April, and NEC completed its review and issued a final report on June 15. In April

– June, staff also met with WSPA

and the refineries numerous times to discuss RTC shave methodologies and costs, costs and cost

- effectiveness analyses. In addit ion, staff contacted the California Department of Water Resources and other water purveyors to discuss about the water impacts of the proposal, current and potential future regulations related to water usage in

California.
August 18, 2010 Draft CEQA docum ent was released and staff conducted a

second Refinery Committee Meeting. Staff’s revised estimates were 5.4 tpd emission reductions from 2005 baseline, 6.1 tpd RTC reduction from 2012

- 2019, 55% RTC shave, total estimated costs of $630

- 745 million, an d cost effectiveness of about $16 K

- $19 K/ton. Staff excluded the emission reductions of 0.85 tpd estimated from boilers/heaters, used audited emissions in the analysis for RTC shave, extended the compliance period to 2019 and accounted for growth.

Se ptember 8, 22 and 24, 2010 Staff reconvened the WGM & conducted a Public

Consultation Meeting on September 8, a RCM on September 22, and a SSC Meeting on September 24, 2010.

October 1, 2010 Set Hearing for PAR XX was conducted on October 1 st , 2010

-3

October 14, 2010 Revised Draft Staff Report and Socioeconomic Analysis were

released for 30

- day public review. A RCM was conducted on October 14, 2010. On October 26, staff revised its proposal to 5.7 tpd RTC reduction (51.4% shave) in 4 phases: 3 tpd in CY

20 13, 4 tpd in CY 2014, 5 tpd in CY 2017, and 5.7 tpd in CY

2019.

November 5, 2010 A Governing Board Hearing is planned for November 5, 2010.