1. OTC Attainment Planning Update SIP Steering Committee April 13, 2011

2. November 2010 OTC Meeting States signed a Memorandum of Understanding committing to adopt by a January 2014 target date - “as necessary and appropriate” - OTC model rules for: Stationary Generators Applicability level of 10 –100Kw Allows for state-specific language with regard to Independent System Operator (ISO) requirements for emergency generation High Energy Demand Day (HEDD) Turbines Applicability level of 5-15MW Provides definitions for HEDD conditions 2

3. November 2010 OTC Meeting Directed OTC Staff and OTC Committees to continue to work on the following measures and to develop an MOU for June 2011 meeting recommending the adoption of some or all of these additional strategies: Solvent degreasers (sent Model Rule back to SAS committee) Natural gas compressor facilities (added as a new source category) Vapor controls at gasoline service stations Coal-fired boilers serving EGUs Muni-waste incinerators Other HEDD units (not covered by model rule) Industrial, Commercial, Institutional (ICI)Boilers Lightering Non-road idling Freight transportation and ports Additional transportation strategies 3

4. November OTC Meeting Statement to EPA calling for issuance of ozone NAAQS by 12/31/2010 and need for national control measures Statement calling for EPA to adopt Tier 3 Light Duty Vehicle emission and fuel standards based on CA standards www.otcair.orgwww.otcair.org for all formal actions and presentations) 4

5. OTC March 16 th Stakeholder Meeting Stationary and Area Source (SAS) Committee Reviewing Additional NOx controls for: Natural Gas Compressor Stations – Developing white paper, gathering information on emissions – Conducting stakeholder outreach (American Gas Association, Johnson Matthey, others ), 5

6. OTC March 16 th Stakeholder Meeting SAS Committee Reviewing Additional VOC controls for: – Solvent Degreasing – Consumer Products to address thinners and multipurpose solvents – Stage I and II Refueling Vapor Recovery 6

7. Stakeholder Meeting – Solvent Degreasing Proposed Solvent Degreasing Model Rule 2011 OTC Model Rule is based on two California air district rules Replaces 1mm Hg limit with 25 g/l VOC limit for all degreasing (including vapor degreasing) Received comments from Safety Kleen and others Evaluating stakeholder comments; more stakeholder outreach calls No action will be proposed at June OTC meeting 7

8. Stakeholder Meeting – Consumer Products Consumer Products - revision to 2006 OTC Model Rule to address thinners and multipurpose solvents Developed white paper on inclusion of new limits in the Consumer Products Rule Seeking broader stakeholder input Develop recommendation for OTC June meeting 8

9. Stakeholder Meeting –Stage I/II Stage I/II workgroup: – Examining pros/cons of keeping Stage II systems (Stage II captures vapors in the vehicle gas tank displaced by refueling) – Analyzing potential for additional reductions from “enhanced” Stage I (Stage I captures vapors in gasoline storage tanks displaced when tank is filled) – Looking at vapor monitoring and vapor management systems - evaluating vendor data received from Veeder Root – Interested in hearing from other stakeholders 9

10. Stakeholder Meeting – Mobile Sources Mobile Source Committee reviewing reductions from Non-Road Idling Many states prohibit unnecessary idling of highway diesel trucks; only a few prohibit it for non-road equipment Existing non-road idling provisions in OTC have limits of 3 or 5 minutes; this range will be included in Model Rule Model Rule posted on 9/2010; addressed comments posted revised version 3/11/2011 10

11. Stakeholder Meeting – Mobile Sources Mobile Source Committee reviewing Goods Movement Strategy (marine, rail, highway, air) Analyzing Inventory to determine source categories involved Rank Categories to determine areas of focus Need stakeholder input on the strategy proposal Comments to OTC by 3/31 Preliminary analysis for June Meeting 11

12. All OTC Committee Presentations, Model Rules, Technical Support for Model Rules, and Stakeholder Comments are available at: www.otcair.org – under “meetings” 12