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Consent Decree CV-10-06029-MMM-AGR IGNACIA S. MORENO Assistant Attorney General Environment & Natural Resources Division MICHELLE R. LAMBERT Trial Attorney U.S. Department of Justice Environment & Natural Resources Division Environmental Defense Section U.S. Department of Justice P.O. Box 23986 Washington, DC 20026-3986 Telephone: (202) 616-7501 Facsimile: (202) 514-8865 Email: michelle.lambert@usdoj.gov Attorneys for Defendants

UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA

NATURAL RESOURCES DEFENSE COUNCIL, INC., and COALITION FOR A SAFE ENVIRONMENT, a California non-profit corporation, Plaintiffs,

v. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, LISA JACKSON, in her official capacity as Administrator of the United States Environmental Protection Agency, and JARED BLUMENFELD, in his official capacity as Regional Administrator for Region IX of the United States Environmental Protection Agency, Defendants. Case No. CV-10-6029-MMM-AGR

CONSENT DECREE

WHEREAS, on August 12, 2010, Plaint iffs Natural Resources Defense Council, Inc. and Coalition for a Safe En vironment filed the complaint in the above-captioned matter agains t Defendants United States Environmental Protection Agency, Lisa P. Jackson, in her official capacity as Administrator of the United Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 1 of 9 Page ID #:381 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 Consent Decree CV-10-06029-MMM-AGR States Environmental Protection Agency, and Jared Blumenfeld, in his official capacity as Regional Administrator for Re gion IX of the United States Protection Agency (collectively, “EPA”), alleging th at EPA failed to fulfill certain nondiscretionary duties under the Clean Air Act (“CAA”), 42 U. S.C. §§ 7401-7671q, and that such alleged failu re is actionable under secti on 304(a)(2) of the Act, 42 U.S.C. § 7604(a)(2); WHEREAS, section 110(a)(1) of the CAA , 42 U.S.C. § 7410(a)(1), requires States to adopt and submit to EPA for re view state implementation plans (“SIPs”), which establish specific cont rol measures and other re quirements that apply to particular sources of air pollution within a State and are designed to attain, maintain, and enforce Na tional Ambient Air Qua lity Standards (“NAAQS”) established by EPA that speci fy the maximum permissible concentrations for those pollutants in the ambient air, see 42 U.S.C. §§ 7408, 7409; WHEREAS, in 1997, EPA established an 8-hour ozone NAAQS and a 24- hour and an annual fine partic ulate matter (“PM2.5”) NAAQS; WHEREAS, EPA designated the South Coast Air Basin as “nonattainment” under section 107(d) of the CAA, 42 U. S.C. § 7407(d), for the 1997 ozone and PM2.5 NAAQS; WHERAS, States are required to submit SIP revisions for designated “nonattainment” areas; WHEREAS, section 110(k) of the CAA, 42 U.S.C. § 7410(k), sets forth the process by which EPA is to review SIP submissions, including revisions; WHEREAS, if EPA finalizes a rulema king disapproving the SIP revisions at issue in this litigation, sanctions would apply pursuant to section 179(b) of the CAA, 42 U.S.C. § 7509(b), and 40 C.F.R. § 52.31; WHEREAS, Plaintiffs’ complaint a lleges that EPA has a nondiscretionary duty to act within the time lines set fo rth in section 110(k)(2) of the CAA, 42 U.S.C. § 7410(k)(2), on SIP submissions and revisions submitted to EPA; Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 2 of 9 Page ID #:391 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 Consent Decree CV-10-06029-MMM-AGR WHEREAS, Plaintiffs’ complaint allege s that EPA has failed to take final action within time lines set forth in sec tion 110(k)(2) of the CAA to approve or disapprove (1) the State Strategy for the 2007 State Implementation Plan (“2007 State SIP”), submitted to EPA on November 16, 2007, and (2) the 2007 Air Quality Management Plan for the South Coast Ai r Quality Management District (“2007 South Coast SIP”), submitted to EPA on November 28, 2007; WHEREAS, through discussions, the pa rties have limited the scope of this Consent Decree to address only thos e elements of the 2007 State SIP and 2007 South Coast SIP that were submitted by the State of California in response to EPA’s designations of “nonattainment” for the South Coast Air Basin with respect to the 1997 NAAQS for ozone and PM2.5; WHEREAS, Plaintiffs’ complaint seek s an order from this court directing EPA to take final action on the agreed to portions of 2007 State SIP and 2007 South Coast SIP; WHEREAS, the parties have agreed to a settlement of this action without admission of any issue of fact or law; WHEREAS, the parties, by entering in to this Consent Decree, do not waive or limit any claim or defense, on any gr ounds, related to any final EPA action; WHEREAS, the parties consider this Consent Decree to be an adequate and equitable resolution of all of the claims in this matter related to the elements of the 2007 State SIP and 2007 South Coast SIP submitted by the State of California in response to EPA’s designations of “nonattainment” for the South Coast Air Basin with respect to the 1997 NAAQS for ozone and PM2.5; WHEREAS, it is in the interest of the public, the parties, and judicial economy to resolve this matter without protracted litigation; WHEREAS, the parties agree that this Court has jurisdiction over this matter pursuant to the citizen suit provision in section 304(a)(2) of the CAA and that venue lies in the Central District of California; Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 3 of 9 Page ID #:401 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 Consent Decree CV-10-06029-MMM-AGR WHEREAS, the Court, by entering th is Consent Decree, finds that the Consent Decree is fair, reasonable, in th e public interest, and consistent with the CAA; NOW THEREFORE, before the taking of testimony, without trial or determination of any issue of fact or law, and upon the consent of the parties, it is hereby ordered, adjudge d and decreed that: 1. No later than September 30, 2011, EPA shall sign for publication in the Federal Register a notice of the Agen cy’s final action on the portions of the 2007 State SIP and 2007 South Coast SIP that relate to EPA’s “nonattainment” designation of the South Coast Air Basin with respect to the 1997 PM2.5 NAAQS, and thereafter send the notice to the Office of the Federal Register for review and publication. 2. No later than December 15, 2011, EPA shall sign for publication in the Federal Register a notice of the Agency’s final action on the portions of the 2007 State SIP and 2007 South Coast SIP that rela te to the nonattainment designation of the South Coast Air Basin with respect to the 1997 oz one NAAQS, and thereafter send the notice to the Office of the Federa l Register for review and publication. 3. When EPA’s obligations unde r Paragraphs 1 and 2 have been completed, the parties will file a joint re quest to the Court to dismiss this matter with prejudice. 4. The parties may extend the deadlines established in Paragraphs 1, 2, and 10 by written stipulation executed by couns el for the parties and filed with the Court. In addition, the deadlines estab lished in Paragraphs 1, 2, and 10 may be extended by the Court upon motion by any party to this Consent Decree for good cause shown, after consideration of any response by the non-moving party. 5. Nothing in this Consent Decree sh all be construed to limit or modify the discretion accorded EPA by the CA A and by general principles of administrative law, including the discretion to alter, amend or revise any response Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 4 of 9 Page ID #:411 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 Consent Decree CV-10-06029-MMM-AGR and/or final action contemplated by this C onsent Decree. EPA’s obligation to take the action set forth in Para graphs 1 and 2 by the time specified therein does not constitute a limitation or modification of EPA’s discretion within the meaning of this paragraph. 6. Nothing in this Consent Decree shall be construed to confer upon the district court jurisdiction to review any decision made in the final action identified in Paragraphs 1 or 2. Nothing in this Co nsent Decree shall be construed to confer upon the district court jurisdiction to review any issues that are within the exclusive jurisdiction of the United States Courts of Appeals pursuant to sections 307(b)(1) and 505 of the CAA, 42 U.S.C . §§ 7607(b)(1), 7661d. 7. This Court shall retain jurisdicti on to enforce the terms of this Consent Decree and to consider any requests for cost s of litigation, including attorneys’ fees. 8. In the event of a dispute between the parties concerning the interpretation or implementation of any asp ect of this Consent Decree, the disputing party shall provide the other party with a written notice outlining the nature of the dispute and requesting informal negotiations . If the parties cannot reach an agreedupon resolution within ten (10) business days after receipt of the notice, any party may move the Court to resolve the dispute. 9. No motion or other proceeding seek ing to enforce this Consent Decree shall be considered properly filed, unle ss Plaintiff has followed the procedure set forth in Paragraph 8 and provided EPA with written notice received at least ten (10) business days before the filing of such motion or proceeding. 10. EPA agrees that, pursuant to se ction 304(d) of the CAA, 42 U.S.C. § 7604(d), Plaintiff is both eligible and entitle d to recover its costs of litigation in this action, including reasonable attorneys’ fees , incurred prior to entry of this Consent Decree. The deadline for f iling a bill of costs and a motion for costs of litigation, including reasonable attorneys’ fees, pur suant to Local Rule 54-12 for activities performed in this case prior to the entry of this Consent Decree, is hereby extended Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 5 of 9 Page ID #:421 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 Consent Decree CV-10-06029-MMM-AGR until 90 days after the date on which the C ourt enters this Consent Decree. During this time the parties shall seek to reso lve informally any claim for costs of litigation, including reasona ble attorneys’ fees. 11. The obligations imposed upon EPA under this Consent Decree may only be undertaken using appropriated fund s. No provisions of this Consent Decree shall be interpreted as or constitute a commitment or requirement that EPA obligate or pay funds in contravention of the Anti- Deficiency Act, 31 U.S.C. § 1341, or any other applicable federal law. 12. Plaintiffs and Defendants shall not challenge the terms of this Consent Decree or this Court’s jurisdicti on to enter this Consent Decree. 13. The parties agree and acknowledge th at before this Consent Decree is entered by the Court, EPA must provide notice of this Consent Decree in the Federal Register and an opportunity for pu blic comment pursuant to section 113(g) of the CAA, 42 U.S.C. § 7413(g). After th is Consent Decree has undergone notice and comment, the Administrator and/or the A ttorney General, as appropriate, shall promptly consider any such written comment s in determining whether to withdraw or withhold their consent to the Consent D ecree, in accordance with section 113(g) of the CAA. If the Administrator and/or the Attorney General do not elect to withdraw or withhold their consent, EPA sh all promptly file a motion that requests the Court to enter this Consent Decree. 14. Any notices required or provided for by this Consent Decree shall be made in writing, via facsimile, email or other means, and sent to the following: For Plaintiff: Adriano L. Martinez Natural Resources Defense Council 1314 Second St. Santa Monica, CA 90401 Telephone: (310) 434-2300 Facsimile: (310) 434-2399 Email: amartinez@nrdc.org Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 6 of 9 Page ID #:431 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 Consent Decree CV-10-06029-MMM-AGR Angela Johnson Meszaros Law Offices of Angela Johnson Meszaros 1107 Fair Oaks Avenue #246 South Pasadena, CA 91030 Telephone: (323) 229-1145 Facsimile: (310) 878-0116 Email: angela@cleanairmatters.net

For Defendants: Michelle R. Lambert U.S. Department of Justice Environmental Defense Section P.O. Box 23986 Washington, DC 20026-3986 Telephone: (202) 616-7501 Facsimile: (202) 514-8865 Email: michelle.lambert@usdoj.gov Jan Tierney Office of the General Counsel U.S. Environmental Protection Agency Ariel Rios Bldg. MC 2344A 1200 Pennsylvania Ave., N.W. Washington, D.C. 20460 Phone: (202) 564-5598 Fax: (202) 564-5603 Email: tierney.jan@epa.gov Ann Lyons Office of Regional Counsel U.S. Environmental Protection Agency 75 Hawthorne Street, MC ORC-2 San Francisco, CA 94105 Phone: (415)-972-3883 Fax: (415) 947-3570 Email: lyons.ann@epa.gov Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 7 of 9 Page ID #:441 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8 Consent Decree CV-10-06029-MMM-AGR 15. The undersigned representatives of each party certify that they are fully authorized by the party that they repr esent to bind that party to the terms of this Consent Decree.

IT IS SO ORDERED. Dated: _________________

________________ _______________ JUDGE MARGARET M. MORROW United States District Court Judge

COUNSEL FOR PLAINTIFFS: Dated: December 13, 2010 N ATURAL R ESOURCES D EFENSE C OUNCIL By: /s/ Adriano L. Martinez (with permission) Adriano L. Martinez Natural Resources Defense Council 1314 Second St. Santa Monica, CA 90401 Telephone: (310) 434-2300 Facsimile: (310) 434-2399 Attorneys for Plaintiffs Natural Resources Defense Council and Coalition for a Safe Environment Dated: December 13, 2010 L AW O FFICES OF A NGELA J OHNSON M ESZAROS By: /s/ Angela Johnson Me szaros (with permission) Angela Johnson Meszaros Law Offices of Angela Johnson Meszaros 1107 Fair Oaks Avenue #246 South Pasadena, CA 91030 Telephone: (323) 229-1145 Facsimile: (310) 878-0116 Attorneys for Plaintiff Coalition for a Safe Environment COUNSEL FOR DEFENDANTS: Dated: December 13, 2010 IGNACIA S. MORENO Assistant Attorney General Environment & Natural Resources Division Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 8 of 9 Page ID #:451 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9 Consent Decree CV-10-06029-MMM-AGR By: /s/ Michelle R. Lambert MICHELLE R. LAMBERT U.S. Department of Justice Environmental Defense Section P.O. Box 23986 Washington, DC 20026-3986 Telephone: (202) 616-7501 Facsimile: (202) 514-8865 Attorneys for Defendants Case 2:10-cv-06029-MMM -AGR Document 7-1 Filed 12/13/10 Page 9 of 9 Page ID #:46