— KANSAS hosck Bony Seca, DEPARTMENT OF HEALTH AND ENVIRONMENT www.kdheks.gov January 8, 2010 To KEEP Advisory Group Members: Thank you for your continued commitment to growing the Kansas economy while protecting our natural resources and being good stewards of the environment. As you know, the national economic downturn has made it difficult for projects like the Kansas Energy and Environmental Policy (KEEP) Advisory Group, which are funded from foundations and endowments, to secure the needed resources to carry out their mission. As a result, the KEEP process was put on hold while staff worked to identify an alternative funding source for completion of the final stages. Since my last communication in November, it kas been brought to my attention that the partial funding which was identified to complete a medified plan, including quantification analysis, is no longer available. Due to this change, I regret to inform you that we are suspending the process indefinitely and this constitutes our final report. ‘As we bring the KEEP process to a final close, I would like to spend some time reflecting on a few of our accomplishments since the inception of this initiative. As you know on March 21, 2008, Governor Kathleen Sebelius established the KEEP Advisory Group to identify opportunities for Kansas to respond to the challenge of global climate change, while becoming more energy efficient and energy independent end spurring economic growth. In just a short time, we have met four times in person and created five technical work groups (TWGs) to review a catalog of policy options identifying which prospects will be the most effective, feasible and economically advantageous to Kansas. An Interim Report was submitted to the Governor, containing a draft greenhouse gas emissions inventory and forecast and our concentrated list of priority options. By and large, our consensus building exercise has resulted in the prioritization of potential state actions for Kansas. More importantly, we have demonstrated that we can work together on these important issues that will affect the State of Kansas for many years to come. The KEEP completed a number of key milestones since its launch, including: ication of technical experts representing all sectors of the economy to serve on the © Identification of a full range of potential Kansas options for mitigation of GHG emissions, including approximately 346 possible state actions, © Identification by the TWGs of 47 priorities for analysis of draft policy options. © Provide comments to improve the quali-y of the draft GHG emissions inventory.January 8, 2010 Page two In addition, each of the five TWGs moved forward with analysis and preliminary development of straw proposals for each of the Tier I Policy Options as identified by the Advisory Group for further study. By utilizing local expertise, we were given the opportunity to review and support ‘a majority of the proposals put forward for further analysis. Certainly, the hard work and time commitment of the KEEP Advisory Group will be a strong preparatory framework for policymakers in the future. Beginning a dialogue between members of governmental agencies, legislature, business, industry, the energy sector, agriculture, environmental groups, academia and representatives of the public is an important step forward for Kansas. Thope that you will join me in recognizing the value in the work of the KEEP to date. Thank you again for your continued participation and support. Sincerely, Milles Jack J. Pelton Chair, KEEP Advisory Group Chairman, President & CEO Cessna Aircraft Company