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Statement on Proposed Revisions to Cross-State Air Pollution Rule

On October 6, 2011, following the submission of additional data from states and companies and further
review of the rule, EPA proposed a routine rulemaking that will maintain the extensive public health
benefits of the Cross State Air Pollution Rule while also making certain technical adjustments to account
for the updated information the Agency recently received.

These adjustments, possible because of the inherent flexibility of the Clean Air Act, will increase CSAPR
emission budgets in nine states and ease limits on market‐based compliance options. While individual
state adjustments vary, overall, the budget increases are slight – about one percent – when compared
to the millions of tons of pollution reductions secured by CSAPR. The proposal maintains the significant
health benefits of the rule – saving up to 34,000 lives a year – while continuing CSAPR'S flexibility and
certainty for utilities as we work together to ensure that we protect the air we all breathe and the jobs
of American workers.

While the CSAPR trading programs begins in January 2012, companies have until the end of 2012 and
early 2013 to demonstrate compliance. As with any proposal, this rulemaking has gone through a public
comment period to ensure important feedback from stakeholders will inform the final rule.