UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION 6

1445 ROSS AVENUE, SUITE 1200

DALLAS TX75202-2733

DEC 22 2010

Mark R. Vickery, P.G.

Executive Director

Texas Commission on Environmental Quality

Post Office Box 13087

Austin, Texas 78711-3087

Dear Mr. Vickery:

Thank you for your letter dated November 10,2010, informing the U.S. Environmental

Protection Agency (EPA) that the Texas Commission on Environmental Quality (TCEQ) plans

to withdraw its System Cap Trading (SCT) Program from EPA consideration and will propose a

rulemaking to repeal the program. We understand that it may not be possible to take this action

by December 31, 2010.

EPA proposed disapproval ofthe SeT program on November 18, 2010, in order to satisfy

our original consent decree obligations with the Business Coalition for Clean Air (BCCA)

Appeal Group, Texas Association ofBusiness, and Texas Oil and Gas Association (see 75 FR

70654). On December 17,2010, EPA filed a motion with the Court to extend the consent decree

deadline for the SCT Program to May 30,2011 (see enclosure). We expect that TCEQ will

complete the repeal and withdrawal from our consideration ofthe SCT Program within the

revised timeline. IfTCEQ formally withdraws the SCT Program from our review before the

May 30,2011 deadline has passed, EPA will formally withdraw our proposed disapproval ofthe

program. However, if TCEQ is unable to complete the necessary rulemaking activities within

this extended window, EPA will finalize our disapproval in order to satisfy our revised consent

decree obligations.

If you have any further questions, please contact me at (214) 665-2100, or your staffmay

contact Mr. leffRobinson ofmy staff at (214) 665-6435.

Al Armendariz

Regional Administrator

Enclosure

Internet Address (URL) • http://www.epa.gov/region6

Recycled/Recyclable. Printed with Vegetable Oil Based Inks on 100% Recycled Paper, Process Chlorine Free
Case 3:08-cv-01491-N Document34 Filed 12/17/10 Page 1 of 3 Pagel 0 452

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

v.

Plaintiffs,

Defendants.

BCCA APPEAL GROUP, et al.

No.3:08-CV-I49I-G

UNITED STATES ENVIRONMENTAL

PROTECTION AGENCY, et al.

------------))

)

)

)

)

)

)

)

)

)

)

NOTICE OF MODIFICATION TO CONSENT DECREE

Defendant United States Environmental Protection Agency ("EPA") hereby notifies the

Court that pursuant to Paragraph 5 of the Consent Decree entered in this case on January 21,

2010 ("Decree"), the parties have entered a written agreement providing for an extension ofthe

date by which EPA shall take final action On the SIP submission entitled "System Cap Trading

Program (Chapter 101, Sub H, Division 5) (Rule Project No. 2000-046-101-AI)." Under

Paragraph 3 and Exhibit 1 ofthe Decree, EPA was required to take action on this submission by

December 31, 2010. On December 17, 2010, the parties agreed to a modification that requires

EPA to take action on this submission by May 30, 2011. This modification changes only the

date for performance ofthe specified action, and does not modifY any other aspect ofthe Decree.

Dated: December 17, 2010 Respectfully submitted,

1GNACIA S. MORENO

Assistant Attorney General

Environment & Natural Resources Division

lsiAngeline Purdy

1
Case 3:08-cv-01491-N Document 34 Filed 12/17/10 Page 2 of 3 PagelD 453

ANGELINE PURDY

Environmental Defense Section

U.S. Department ofJustice

P.O. Box 23986

Washington, D.C. 20026-3986

Street address:

60 I D Street, NW, Suite 8000

Washington, D.C. 20004

Tel: (202) 514-0996

Fax: (202) 514-8865

Email: angeline.purdy@usdoj.gov

OfCounsel

Scott Jordan

Office ofGeneral Counsel

U.S. Environmental Protection Agency

1200 Pennsylvania Avenue, N.W.

Washington, D.C. 20004

Joshua Olszewski

Office of Regional Counsel

U.S. Environmental Protection Agency - Region 6

1445 Ross Ave.

Dallas, TX 75202-2733

2
Case 3:08-cv-01491-N Document 34 Filed 12/17/10 Page 3 of 3 PagelD 454

CERTIFICATE OF SERVICE

I hereby certify that on December 17, 20 I0, I electronically filed the foregoing document

with the clerk of court for the United States District Court for the Northern District ofTexas

using the electronic case filing system of the court. The electronic case filing system sent a

"Notice ofElectronic Filing" to the following attorneys ofrecord:

Van H. Beckwith

van.beckwith@bakerbotts.com

Matthew L. Kuryla

matthew.kurvla@bakerbotts.com

Scott Janoe

scott.janoe@bakerbotts.com

lsiAngeline Purdy

ANGELINE PURDY

Trial Attorney

3