All parties agree we won't make attainment in 2005; EPA sanctions are inevitable.

$2 billion in frozen federal highway funding.

$36 million a year in new fees on existing small and large businesses - unless they cut emissions by at least 20 percent.

New federal Title V regulations sooner on small and mid-sized businesses.

Bigger pollution reductions required for new job-creating industry; "emission reduction credits" aren't available and could hinder new job-creating industry.

May result in costly litigation, replacing local decision making with federal judges and federal regulators.

Federal Implementation Plan: EPA steps in - we lose control of our destiny.

• Decisions made in Washington, DC
• Driving restrictions
• Limits individual choices
• Threatens economic development
  

Gives us time to make attainment in 2010. All current controls stay in place; tougher permits eventually placed on most sources.

We can control our own destiny; avoids handing over control to federal EPA.

Gives time for state requirements for cleaner cars and trucks to take effect.

Gives time for regulation of federal sources (aircraft, trains) to take effect.

Gives time for new technological improvements to reduce air pollution.

Allows time to develop a plan taking advantage of new science developed by Central California Ozone Study.

Stops the clock on federal sanctions:

• Prevents development of EPA FIP.
• Keeps $2 billion in highway funds flowing.
• Eliminates increased pollution offsets for new facilities.
• Delays onerous and costly federal Title V permitting of small and mid-sized businesses. Gives time to eliminate federal duplication of regional permitting program.