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        <ReturnReference>SCHEDULE D, PAGE 3, PART X</ReturnReference>
        <Explanation>THE INSTITUTE OF CLEAN AIR COMPANIES, INC. HAS ADOPTED THE ACCOUNTING OF UNCERTAINTY IN INCOME TAXES AS REQUIRED BY THE INCOME TAXES TOPIC (TOPIC 740) OF THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC). THE INSTITUTE OF CLEAN AIR COMPANIES HAS ANALYZED ITS TAX POSITIONS, AND HAS CONCLUDED THAT NO LIABILITY FOR UNRECOGNIZED TAX BENEFITS SHOULD BE RECORDED RELATED TO ANY UNCERTAIN TAX POSITIONS TAKEN ON RETURNS FILED FOR OPEN TAX YEARS (2009-2011), OR EXPECTED TO BE TAKEN IN ITS 2012 TAX RETURN. THE INSTITUTE OF CLEAN AIR COMPANIES, INC. IS NOT AWARE OF ANY TAX POSITIONS FOR WHICH IS BELIEVES THAT THERE IS A REASONABLE POSSIBILITY THAT THE TOTAL AMOUNTS OF UNRECOGNIZED TAX BENEFITS WILL CHANGE MATERIALLY IN THE NEXT TWELVE MONTHS.</Explanation>
      </Form990ScheduleDPartXIII>
    </IRS990ScheduleD>
    <IRS990ScheduleO documentId="RetDoc3">
      <GeneralExplanation>
        <Identifier>MANAGEMENT DELEGATED</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 3</ReturnReference>
        <Explanation>THE ORGANIZATION HAS ENTERED INTO A MANAGEMENT CONTRACT WITH SMITHBUCKLIN. UNDER THE TERMS OF THIS CONTRACT, INSTITUTE OF CLEAN AIR COMPANIES, INC. MAKES PAYMENTS TO SMITHBUCKLIN WHICH COVER STAFF SALARIES AND OTHER OVERHEAD EXPENSES. THE FEES INCURRED BY NATIONAL LUMBER DURING THE FISCAL YEAR WERE 578,718. SMITHBUCKLIN'S PERFORMANCE UNDER THIS AGREEMENT IS MONITORED BY THE BOARD OF INSTITUTE OF CLEAN AIR COMPANIES, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>ORGANIZATION'S PROCESS USED TO REVIEW FORM 990</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 11B</ReturnReference>
        <Explanation>THE MANAGEMENT COMPANY REVIEWS THE 990 ALONG WITH THE EXECUTIVE DIRECTOR AND A COPY OF THE 990 IS SENT TO THE BOARD PRIOR TO FILING.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>GOVERNING DOCUMENTS DISCLOSURE EXPLANATION</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 19</ReturnReference>
        <Explanation>THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
  </ReturnData>
</Return>