1. ITI AND TECHNET OPENING COMMENTS CHRIS HANKIN, SENIOR DIRECTOR INFORMATION TECHNOLOGY INDUSTRY COUNCIL (ITI) APRIL 26, 2016 1

2. ITI and TechNet Presentations Opening Comments: Chris Hankin, ITI Displays (3): – Mark Hollenbeck, HP Inc. – Humberto Fossati, HP Inc. – Robert White, Dell Computers (5): – Paul Ford, HP Inc. – Stephen Eastman, Intel – Shahid Sheikh, Intel – Robert White, Dell – Mark Hollenbeck, HP Inc. 2

3. At the last workshop, ITI/TechNet: – (1) voiced our very serious concerns with the first Staff Draft, and – (2) proposed constructive engagement with the CEC and other stakeholders. Very active consultations have been held since, to include the F2F meetings referenced in the new Staff Draft. We reached agreements with fellow stakeholders on some issues, and clarified facts in other areas. This progress is not adequately reflected in the new Staff Draft. The new Staff Draft is not technically feasible, nor cost effective, and its promulgation as-is would significantly limit choices for Californians. 3 Status

4. Going Forward We will continue to engage constructively with the CEC and other stakeholders. If we are to achieve the agreed goal of a technically feasible, cost effective Final Rule by year’s end, much work and significant changes are requisite. – To include reinstatement of areas of agreement between the stakeholders. The proposed 1/1/18 effective date must go. – In this regard, the new Staff Draft cut the implementation period for desktops in half -- a huge concern. We will continue to pursue a package of voluntary partnership initiatives to supplement the rule making. 4

5. Examples of Problems Intentionally or not, under the new Staff Draft as of 1/1/18 in California: – The availability of low cost, smaller sized monitors would significantly diminish; – The availability of enhanced performance displays would significantly diminish; – The availability of gaming monitors and curved monitors would significantly diminish; – The availability of mainstream and performance desktop computers would significantly diminish; – The availability of gaming desktop and notebook computers would significantly diminish; 5

6. Examples of Problems (cont.) – The availability of desktop computers using the Linux operating system would significantly diminish; – The availability of notebook computers using the Chrome operating system would significantly diminish; – The availability of new monitor technologies like OLED, HDR, and Wireless could significantly diminish; – The availability of monitors incorporating USB Type-C with Power Delivery capabilities would significantly diminish; – The availability of computers with new innovations, to include cyber security protections, could significantly diminish. 6