1. Finding A Better Approach to Cleaner Air Transforming the SIP Process

2. Why the SIP Process No Longer Works 1.Responsibility and authority are not aligned a.SIP-related emissions in Houston are now dominated by federally preempted sources such as cars and trucks b.Increased role of interstate/international pollution 2.SIPs focus state/local governments narrowly on addressing one pollutant at a time (sometimes to the detriment or avoidance of other concerns) and on short-term solutions. 3.SIP process focuses on procedure over results 4.SIPs encourage resources to be spent on inefficient/ineffective control strategies and on delay tactics

3. SIP Related Emissions Now Dominated by Federal Sources that States Cannot as Efficiently and Effectively Control Houston 2007Dallas 2007

4. Interstate/International Transport More of an Issue and Outside of State Control EPA found in CAIR that Arkansas significantly contributes to Houston ozone TX in CAIR because impacts 2 counties in Illinois Over ½ of ozone in DFW and sometimes Houston is background Cannot tell another state what to do →

5. SIP Process Focuses Community Narrowly on Addressing One Pollutant at a Time and on Finding Short-Term Solutions

6. SIP Process Encourages Resources to be Spent on Delay Tactics Ex./Houston 2010 deadline, 2007 submittal >50% NOx reduction needed Cannot timely attain— but compelled to spend tens of millions: (1) developing unviable control strategies and (2) justifying a bump-up money would be better spent reducing pollution

7. A Better Path

8. SIP Transformation Workgroup Ad hoc group of industry representatives, government officials, and other community leaders Ad hoc group of industry representatives, government officials, and other community leaders Brainstorming and issue development Brainstorming and issue development Meetings with public officials, environmental groups, and industry leaders Meetings with public officials, environmental groups, and industry leaders Legislative and legal initiatives Legislative and legal initiatives

9. List of Political and Community Leaders Consulted Office of Senator Hutchison Office of Senator Hutchison Office of Senator Cornyn Office of Senator Cornyn Office of Congressman Culberson Office of Congressman Culberson Office of Congressman Green Office of Congressman Green Office of Congressman Hall Office of Congressman Hall Office of Congressman Barton Office of Congressman Barton Office of Congressman Brady Office of Congressman Brady Office of Congressman McCaul Office of Congressman McCaul Office of Congressman Gonzalez Office of Congressman Gonzalez Office of Governor Rick Perry Office of Governor Rick Perry Texas House Environmental Regulation Committee Chairman Dennis Bonnen Texas House Environmental Regulation Committee Chairman Dennis Bonnen Mayor Bill White Mayor Bill White TCEQ Chairman White TCEQ Chairman White National Stone, Sand and Gravel Association National Stone, Sand and Gravel Association U.S. Chamber of Commerce U.S. Chamber of Commerce Judge Robert Eckels Doug Foshee, CEO, El Paso Corporation American Road & Transportation Builders Association National Association of Manufacturers National Association of Home Builders County Executives of America Jeff Holmstead (former EPA air chief), Lisa Jaeger (former EPA General Counsel), and Scott Segal (Senior lobbyist and attorney for Bracewell & Giuliani) Rob Brenner, Director, Office of Policy Analysis and Review, USEPA and Staff Larry Starfield, EPA Region VI Laura Fiffick, City of Dallas American Electric Power

10. What potential exists for SIP transformation? Within current system Within current system Subpart 2 extremely prescriptive Subpart 2 extremely prescriptive Courts narrowly construing Subpart 2 Courts narrowly construing Subpart 2 Outside current system Outside current system Legislative opportunities may especially exist if CO2 legislation moves forward Legislative opportunities may especially exist if CO2 legislation moves forward Best path may be to focus on creating a new multi- pollutant air quality management process that is the next “evolution” in air quality planning Best path may be to focus on creating a new multi- pollutant air quality management process that is the next “evolution” in air quality planning

11. Benefits to the Greater Houston Partnership in Leading this Effort Create a better business climate and help maintain/create jobs Create a better business climate and help maintain/create jobs Improve public health and the image of the community Improve public health and the image of the community Ensure more emission reductions at less cost to businesses and taxpayers Ensure more emission reductions at less cost to businesses and taxpayers Focus community on a holistic, long-term, and results- oriented approach to air quality planning Focus community on a holistic, long-term, and results- oriented approach to air quality planning Advance the Partnership’s position as a national leader in improving air quality Advance the Partnership’s position as a national leader in improving air quality

12. Leadership Opportunity for the Greater Houston Partnership Sentiment in Washington to create more nation- wide support for the SIP reform effort—especially from cities, counties, and states Sentiment in Washington to create more nation- wide support for the SIP reform effort—especially from cities, counties, and states The Greater Houston Partnership stated in a previous mission statement that one of its goals was to create a national clean air workgroup The Greater Houston Partnership stated in a previous mission statement that one of its goals was to create a national clean air workgroup Recommend the following: Recommend the following: 1. Formal endorsement by GHP Board of SIP reform and agreement to lead effort 2. Assign SIP reform to a committee 3. Create a national clean air workgroup for the specific task of transforming the SIP process

13. Mission Statement of National SIP Transformation Workgroup Mission Statement: Mission Statement: The purpose of the Federal SIP Transformation Workgroup is to draw together national support for transforming the SIP process into a more results-oriented, efficient, and holistic air quality planning program Objectives of SIP Transformation: Objectives of SIP Transformation: Properly align responsibility with authority by giving EPA primary responsibility for achieving the NAAQS.. Properly align responsibility with authority by giving EPA primary responsibility for achieving the NAAQS.. Create a multi-pollutant, long-term, results-oriented approach to air quality planning. Create a multi-pollutant, long-term, results-oriented approach to air quality planning. First Phase Action Items for Federal SIP Transformation Workgroup: First Phase Action Items for Federal SIP Transformation Workgroup: Bring together at least 4 other metropolitan areas to participate in the workgroup. Bring together at least 4 other metropolitan areas to participate in the workgroup. Host an initial kick-off meeting for the workgroup. Host an initial kick-off meeting for the workgroup. Develop material for all workgroup members to use in educating their constituencies and elected officials about the problem and need for reform. Develop material for all workgroup members to use in educating their constituencies and elected officials about the problem and need for reform. Obtain letters of support from elected officials representing these metropolitan areas and states. Obtain letters of support from elected officials representing these metropolitan areas and states. Host a national conference on SIP reform. Host a national conference on SIP reform. Coordinate a lobbying effort for each of the metropolitan areas Coordinate a lobbying effort for each of the metropolitan areas