UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

____________________________________ ) ENVIRONMENTAL INTEGRITY ) PROJECT, et al., ) ) Plaintiffs, ) ) v. ) 1:12-cv-00867-RMC ) LISA P. JACKSON, Administrator, ) Environmental Protection Agency, ) ) Defendant. ) ____________________________________)

CONSENT DECREE WHEREAS, Plaintiffs Environmental Integr ity Project, Sierra Club, and Texas Campaign for the Environment (collectively, “Plaintiffs”) f iled this action pursuant to section 304(a)(2) of the Clean Air Act (“CAA”), 42 U.S.C. § 7604(a)(2), alleging that Defendant Lisa Jackson, in her official capacity as Administrator, United Stat es Environmental Protection Agency (“EPA”), failed to perform a non-discretionary duty under CAA § 505(b)(2), 42 U.S.C. § 7661d(b)(2), to grant or deny a petition submitted by Plaintiffs requesting that EPA object to a CAA permit issued by the Texas Commission on Environmen tal Quality to the Luminant Generation Company to operate the Sandow 5 Generating Pl ant (“Sandow 5”), a pow er plant located in Milam County, Texas; WHEREAS, Plaintiffs and EPA (c ollectively, “the Parties”) wish to effect a settlement of the above-captioned matter without e xpensive and protra cted litigation; WHEREAS, the Parties consider this Decree to be an adequa te and equitable resolution of the claims in the above-captioned matter; Case 1:12-cv-00867-RMC Document 11-1 Filed 10/18/12 Page 1 of 7WHEREAS, the Court, by entering this Decree , finds that the Decree is fair, reasonable, in the public interest, and consistent with the CAA, 42 U.S.C. §§ 7401 et seq. ; NOW THEREFORE, before the taking of te stimony, without trial or determination of any issue of fact or law, and upon the consen t of the Parties, it is hereby ORDERED, ADJUDGED, and DECREED that: 1. On or before January 15, 2013, EPA shall sign a response to Plaintiffs’ CAA Title V petition on the Sandow 5 Title V Permit (“Pe rmit”), pursuant to 42 U.S.C. § 7661d(b)(2). 2. Following signature of such respons e to Plaintiffs’ petition, EPA shall expeditiously deliver notice of EPA’s response to the Office of the Federal Register for publication. Following such transmission, EPA shall not take any step (other than as necessary to correct any typographical error or other errors in form) to de lay or otherwise interfere with publication of such notice in the Federal Register. 3. If EPA’s response to Plaintiffs’ petiti on includes the granting of any portion of the petition in whole or in part, EPA shall also promptly transmit the response to the Texas Commission on Environmental Quality. 4. The deadline for filing a motion for costs of litigation, includi ng attorneys’ fees, incurred prior to entry of this Consent Decree is hereby extended unt il ninety (90) days after the entry of this Consent Decree by th is Court. During this time, th e Parties shall seek to resolve informally any claim for costs of litigation, incl uding attorneys’ fees, and if they cannot, will

submit that issue to this Court for resolution. The United States does not waive or limit any defenses it may have to such claim. This Cour t shall retain jurisdicti on to resolve any requests for costs of litigation, in cluding attorneys’ fees. Case 1:12-cv-00867-RMC Document 11-1 Filed 10/18/12 Page 2 of 75. Any provision of this Decree may be modi fied by (a) written stipulation of the Parties with notice to the Court, or (b) by the Co urt following motion of any party to this Decree, pursuant to the Federal Rules of Civil Procedur e, and upon consideration of any response by the non-moving party. 6. Plaintiffs and EPA shall not challenge the terms of this Decree or this Court’s jurisdiction to enter and enforce this Decree. Upon entry, no part y shall challeng e the terms of

this Decree. 7. Plaintiffs and EPA agree that this Consen t Decree shall constitute a complete and

final settlement of all claims that Plaintiffs have asserted against the United States, including EPA, under any provision of law in connection w ith Environmental Integrity Project, et al. v.

Jackson , Case No. 12-cv-00867 (D.D.C.) , except as provided in Paragraph 4 of this Decree. Plaintiffs therefore discharge and covenant not to sue the United States, including EPA, for any

such claims. 8. Nothing in this Decree shall be c onstrued to limit or modify any discretion accorded EPA by the CAA or by general principles of administrative law in taking the actions which are the subject of this Decree, including discretion to a lter, amend, or revise any responses or final actions contemplated by this Decree. EPA’s obligation to perform the actions specified in Paragraph 1 by the time specified therein does not constitute a limitation or modification of

EPA’s discretion within the m eaning of this paragraph. 9. Nothing in this Decree shall be construe d as an admission of a ny issue of fact 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 Permit. Case 1:12-cv-00867-RMC Document 11-1 Filed 10/18/12 Page 3 of 710. Nothing in this Decree shall be c onstrued 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 distri ct court jurisdiction to review any issues that are within the exclusive jurisdiction of the Un ited States Court of A ppeals pursuant to CAA section 307(b)(1), 42 U.S.C. § 7607(b)(1). Noth ing in the terms of this Decree shall be construed to waive any remedies or defenses the Parties may have under CAA section 307(b)(1), 42 U.S.C. § 7607(b)(1). 11. The obligations imposed upon EPA under this Decree can only be undertaken using appropriated funds. No provision of this Decree shall be interprete d as or constitute a commitment or requirement that EPA obligate or pay funds in contravention of the AntiDeficiency Act, 31 U.S.C. § 1341, or a ny other applicable provision of law. 12. Any notices required or provided for by this Decree shall be made in writing and sent to the following:

For Plaintiffs:

Gabriel Clark-Leach Environmental Integrity Project - Texas Office 1303 San Antonio Street, Suite 200 Austin, TX 78701 Tel: (512) 637-9478 Fax: (512) 584-8019 gclark-leach@environm entalintegrity.org

For Defendants: Stephanie Talbert United States Department of Justice Environmental Defense Section P.O. Box 7611 Washington, D.C. 20044 Tel: (202) 514-2617 Fax: (202) 514-8865 stephanie.talbert@usdoj.gov Case 1:12-cv-00867-RMC Document 11-1 Filed 10/18/12 Page 4 of 7David Coursen U.S. Environmental Protection Agency Office of General Counsel 1200 Pennsylvania Ave., N.W. Washington, D.C. 20460 Tel: (202) 564-0781 Fax: (202) 564-5603 Coursen.david@usepa.gov Abirami Vijayan U.S. Environmental Protection Agency Office of Regional Counsel 1445 Ross. Ave. (6 RC-M) Dallas, TX 75202 Tel: (214) 665-7303 Fax: (214) 665-2182 Vijayan.abi@epa.gov

13. In the event of a dis pute between the Parties conc erning the interpretation or implementation of any aspect of this Decree, th e disputing Party shall provide the other Party with a written notice outlining the nature of the dispute and requesting info rmal negotiations. If the Parties cannot reach an agreed -upon resolution within ten (10) business days after receipt of the notice, any party may move th e Court to resolve the dispute. 14. No motion or other proceeding seeking to enforce this Decree or for contempt of

Court shall be filed unless the Plaintiff has fo llowed the procedure set forth in Paragraph 13. 15. The Court shall retain jurisdiction to determine and effect compliance with this Decree. When EPA’s obligations under Paragrap hs 1 through 3 of this Decree have been completed, and Plaintiffs’ claim for costs of litiga tion has been resolved pursuant to Paragraph 4, the above-captioned matter shall be dismissed wi th prejudice. The Parties shall file the appropriate notice with the Court so that the Clerk may close the file. 16. The Parties agree and acknowledge that before this Consent Decree can be Case 1:12-cv-00867-RMC Document 11-1 Filed 10/18/12 Page 5 of 7finalized and entered by the Court, EPA must provide notice in the Federal Register and an opportunity for comment pursuant to CAA section 113(g), 42 U.S.C. § 7413(g). EPA shall promptly submit a public notice of this Consent Decree to the Federal Re gister for publication and public comment after lodging this Consent D ecree with the Court. After this Consent Decree has undergone an opportunity for notice a nd comment, the Administrator and/or the Attorney General, as appropria te, shall promptly consider any such written comments in determining whether to withdraw or withhold cons ent to this Consent D ecree, in accordance with section 113(g) of the CAA. If the federal governm ent elects not to withdraw or withhold consent to this Consent Decree, the Parties promptly sha ll file a motion that requests the Court to enter

this Consent Decree. 17. It is hereby expressly understood and ag reed that this Cons ent Decree was jointly drafted by Plaintiffs and EPA and that any and all rules of construction to the effect that ambiguity is construed against th e drafting party shall be inappli cable in any dispute concerning the terms, meaning, or interpre tation of this Consent Decree. 18. The undersigned representatives of e ach Party certify that they are fully authorized by the Party they represent to bi nd that Party to the terms of this Decree. SO ORDERED on this ___ day of _________________, 2012.

_________________________________ THE HON. ROSEMARY M. COLLYER UNITED STATES DISTRICT JUDGE Case 1:12-cv-00867-RMC Document 11-1 Filed 10/18/12 Page 6 of 7SO AGREED:

FOR PLAINTIFFS

GABRIEL CLARK-LEACH Environmental Integrity Project - Texas Office 1303 San Antonio Street, Suite 200 Austin, TX 78701 Tel: (512) 637-9478 Fax: (512) 584-8019 gclark-leach@environm entalintegrity.org

FOR DEFENDANTS

IGNACIA S. MORENO Assistant Attorney General Environment & Natural Resources Division

STEPHANIE J. TALBERT United States Department of Justice Environmental Defense Section P.O. Box 7611 Washington, D.C. 20044 Tel: (202) 514-2617 Fax: (202) 514-8865 stephanie.talbert@usdoj.gov Case 1:12-cv-00867-RMC Document 11-1 Filed 10/18/12 Page 7 of 7