IN THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
COMMUNITIES FOR A BETTER ENVIRONMENT,et al.

Petitioners,
v. No. 12-71340 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY,

Respondent, SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT and SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS,

Intervenors.
SETTLEMENT AGREEMENT WHEREAS Communities for a Better Environment,California Communities Against Toxics,Desert Citizens Against Pollution,Natural Resources Defense Council,Inc., and Physicians for Social Responsibility-Los Angeles (referred to as "Petitioners")filed in the United States Court of Appeals for the Ninth Circuit a petition for review captioned above that challenges the final action by the United States Environmental Protection Agency ( "EPA")titled "AirQuality Implementation Plans; California; South Coast; Attainment Plan for 1997

8-Hour Ozone Standards," 77 Fed. Reg. 12,674 (Mar. 1, 2012),pursuant to 42 U.S.C. § 7607(b)(1)of the Clean Air Act, alleging that EPA's final action violates the Clean Air Act. WHEREAS Petitioners Physicians far Social Responsibility-Los Angeles, Desert Citizens Against Pollution, Communities for a Better Environment, and Natural Resources Defense Council, Inc. have also noticed an appeal from the dismissal of Physiciansfog Social Responsibility-Los Angeles v. EPA,No. 2:11 -cv05885-GW-SS in United States District Court for the Central District of California, currently docketed in the Ninth Circuit as Case No. 12-56175. WHEREAS,on February 13, 2013,pursuant to the Clean Air Act, the State of California submitted to EPA for review and approval a revision to the California State Implementation Plan ( "SIP")to demonstrate attainment with the National Ambient Air Quality Standard for the one-hour ozone standard in the South Coast Air Basin (referred to as the "one-hour ozone plan").1 WHEREAS,on February 13, 2013,pursuant to the Clean Air Act,the State of California submitted to EPA for review and approval revisions to the California State Implementation Plan to demonstrate compliance with the requirements of

`The one-hour ozone attainment demonstration was included in the February 13, 2013 SIP revision submittal as Appendix VII( "1 -Hour Ozone Attainment Demonstration")to the 2012 South Coast Air Quality Management Plan (December 2012).

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### Clean Air Act section 182(d)(1)(A), 42 U.S.C. § 751 la(d)(1)(A)as it pertains to

the National Ambient Air Quality Standards for the one-hour ozone standard and the 1997 eight

-hour ozone standard in the South Coast Air Basin (referred to as the "section 182(d)(1)(A)demonstrations").2 WHEREAS the EPA and the Petitioners (collectively the "Parties")wish to implement this Settlement Agreement( "Agreement ")to avoid protracted and costly litigation and to preserve judicial resources; NOW, THEREFORE,the Parties, intending to be bound by this Agreement, hereby stipulate and agree as follows: 1. Not later than August 13, 2014,EPA shall sign for publication in the Federal Register 

### notices)of the Agency's final action on the submitted one-hour ozone plan and section 182(d)(1)(A)demonstrations,and thereafter send the notices)to the Office of the Federal Register for review and publication. 2. Upon publication of the final notices)in the Federal Register, Petitioners shall promptly voluntarily dismiss Communities for a Better Environment, et al. v. 

### EPA,Ninth Circuit Case No. 12-71340,pursuant to Rule 42 of the Federal Rules of Appellate Procedure. Petitioners reserve any rights they may have to challenge in any court or administrative proceeding such final action.

2 The section 182(d)(1)(A)demonstrations were included in the February 13, 2013 SIP revision submittal as Appendix VIII( "Demonstration of Offset of Growth in Emissions Associated with Growth in Vehicle Miles Traveled Under Section 182(d)(1)(A)of the Federal Clean Air Act ")to the 2012 South Coast Air Quality Management Plan (December 2012). 

### 33. If EPA does not take action in accordance with the terms of this

agreement then Petitioners' sole remedy under this Agreement regarding the final action under review in Cofnmunitiesfor a Better Environment et al. v. EPA,Ninth Circuit Case No. 12-71340 shall be the right to request that the Court lift the stay of proceedings and establish a schedule for briefing and oral argument. 4. EPA and Petitioners agree and acknowledge that before this Agreement is final, EPA must provide notice in the Federal Register and an opportunity for comment pursuant to Clean Air Act section 113(g), 42 U.S.C. § 7413(g). EPA shall submit said notice of this Agreement to the Federal RegisteY for publication as expeditiously as possible. After this Agreement 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 their consent to the Agreement,in accordance with section 113(8)of the Clean Air Act. This Agreement shall become final on the date that EPA provides written notice of such finality to Petitioner. 5. Upon receipt by the undersigned counsel for Petitioners of written notice from EPA that this Agreement is final, Petitioners Physicians for Social Responsibility-Los Angeles,Desert Citizens Against Pollution, Communities for a Better Environment, and Natural Resources Defense Council,Inc. shall promptly

### voluntarily dismiss Physiciansfor Social Responsibility-LosAngeles v. EPA,Ninth

Circuit Case No. 12-56175,pursuant to Rule 42 of the Federal Rules of Appellate Procedure, with each party to bear its own costs and attorneys' fees incurred in connection with the appeal,Ninth Circuit Case No. 12-56175. 6. The Parties acknowledge that if EPA elects to finalize this Agreement, EPA will undertake notice and comment rulemaking proceedings during which it will consider the one-hour ozone plan and section 182(d)(1)(A)demonstrations, and that EPA's final actions)on the one-hour ozone plan and section 182(d)(1)(A) demonstrations will be based upon its consideration of the administrative record before the Agency,including public comments. Nothing in the terms of this Agreement shall be construed to limit or modify the discretion accorded EPA by the Clean Air Act or by general principles of administrative law. Nothing in the terms of this Agreement sha11 be construed to limit EPA's authority to alter, amend,or revise any final rule, interpretation or guidance EPA issues in accordance with this Agreement. Nothing in the terms of this Agreement shall be construed to limit or modify the rights Petitioners may have under the Clean Air Act or general principles of administrative law. 7. Any obligations of EPA to obligate or expend funds under this Agreement are subject to the availability of appropriations in accordance with the Anti

-Deficiency Act, 31 U.S.C. § 1341. This Settlement Agreement shall not be

5construed to require the United States to obligate or pay funds in contravention of

the Anti

-Deficiency Act, 31 U.S.C. § 1341. 8. The undersigned representatives of each party certify that they are fully authorized by the party that they represent to bind that respective party to the terms of this Agreement. FOR PETITIONERS:

ADRIANO MARTINEZ Natural Resources Defense Council 1314 Second Street Santa Monica,CA 90401 Tel: (310)434-2300 Fax: (310)434-2399 amartinez

@nrdc.org Counsel for Petitioner Natural Resources Defense Council Dated:

ANGELA JOHNSON MESZAROS Law Offices of Angela Johnson Meszaros 1107 Fair Oakes Avenue #246 South Pasadena, CA 91030 Tel: (323)341 -5868 Fax: (323)872

-5212 angela@cleanairmatters.net Counsel for Petitioners California Communities Against Toxics,Desert Citizens Against Pollution, and Physicians for Social Responsibility-Los Angeles Dated:construed to require the United States to obligate or pay funds in contravention of

the Anti

-Deficiency Act, 31 U.S.C. § 1341. 8. The undersigned representatives ofeach party certify that they are fully authorized by the party that they represent to bind that respective party to the terms ofthis Agreement. FOR PETITIONERS:

ADRIANO MARTINEZ Natural Resources Defense Council 1314 Second Street Santa Monica,CA 90401 Tel: (310)434-2300 Fax: (310)434-2399 amartinez@nrdc.org Counsel for Petitioner Natural Resources Defense Council Dated:

JOI~NSON I a Offi es o~Angela~Jo s Meszaros 110 F ' Oak s Avenue #2 South Pasadena, CA 91 Tel: (323)341 -5868 Fax: (323)872-5212 angela @cleanairmatters.net Counsel for Petitioners California Communities Against Toxics,Desert Citizens Against Pollution,and Physicians for Social Responsibility-Los Angeles Dated: 

### DMAYA GOLDEN-KRASNER

Communities for a Better Environment 6325 Pacific Boulevard, Suite 300 Huntington Park, CA 90255 Tel: (323)826-9771 Fax: (323)588-7079 maya@cbecal.org Counsel for Petitioner Communities for a Better Environment Dated: _ _~f

(I J 13
FOR RESPONDENT: IGNACIA S. MORENO Assistant Attorney General Environment and Natural Resources Division
DUSTIN J. HA A United States Depart Justice Environmental Defense Section P.O. Box 7611 Washington,D.C. 20044 Tel: (202)514-1806 Fax: (202)514-8865 dustin.maghamfar

@usdoj .gov Counsel for United States Environmental Protection Agency Dated: `~ ~~~~ ~ 3

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