Revised 12.18.08

1 APPENDIX A 1 TO CONSENT AGREEM ENT AND FINAL ORDER 2 FLUOROTELOMER-BASED PRODUCT BIODEGRADATION TESTING 3 SUPPLEMENTAL ENVIRONMENTAL PROJECT 4 5 I. OVERVIEW OF FLUOROTELO MER-BASED POLYMER PRODUCT 6 BIODEGRADATION TESTING SUPPL EMENTAL ENVIRONMENTAL PROJECT 7 A. This document, Appendix A, describes the Fluorotelomer-Based Product 8 Biodegradation Testing Supplemental Environm ental Project (“Biodegradation SEP”) that 9 Respondent, E. I. du Pont de Nemo urs and Company (“DuPont”) has agreed to perform pursuant to 10 Section III of the Consent Agreement and Fi nal Order (“CAFO”) in TSCA-HQ-2004-0016, et al. , 11 entered into between DuPont and the United Stat es Environmental Protection Agency (“EPA” or 12 “Agency”) (collectively, “the parties”). This Appendix describes the SEP activities that DuPont will 13 conduct to the extent that applicable funding allows. 14 B. In compliance with, and in addition to, the requirements of th e CAFO, DuPont, shall 15 (1) comply with the requirements of this A ppendix and Attachments A-H, and (2) require any 16 entity that DuPont contracts with to fulfill DuPont’s obligations unde r this SEP, to comply with the 17 requirements of this Appendix and Attachments A-H. 18 C. Purpose and Background. The purpose of this Biodegradation SEP is to determine 19 the degradation potential of the nine commercial fluorotel omer-based products identified in 20 Attachment A to this Appendix (“the Fluorotelomer Products” or “Fluorotelomer Products”) as well 21 as the degradation potential of corresponding synthe sized or purified polymers equivalent to the 22 Fluorotelomer Products with respect to the chemical composition th at creates their fluorotelomer 23 functionality (“Corresponding Polyme rs”). Eight of the nine Fluorotel omer Products to be tested 242 under this Biodegradation SEP are fluorotelomer-basedpolymers, while the ninth is a fluorotelomer1 based phosphate ester. The Fluorotelomer Products ar e products that were sold by DuPont prior to 2 the date DuPont signs the Consent Agreement, a nd that DuPont will pr ovide as the chemical 3 substances to be tested pursuant to this Biode gradation SEP. An understanding of the degradation 4 potential of the Fluorotelomer Products will be developed by consideri ng the results of semi5 continuous activated sludge (SCAS) studies. Accordingly, this Biodegradation SEP is designed to 6 provide information on the inherent biodegradati on potential of the Fluorotelomer Products and 7 their Corresponding Polymers using SCAS. 8 The modified SCAS test is an inherent biodegr adability study in which the test substance is 9 exposed to activated sludge microorganisms in an aerated, aqueous medium with periodic settling of 10 the solids and renewal of the aqueous phase with fresh media and test subs tance. The laboratory 11 will run the test for twelve (12) weeks and will measure analytes th at are indicative of degradation 12 by determining the amount and rate of formati on of observed degradati on product(s) in the 13 aqueous, sludge, and gas phases. Performing SC AS on the Fluorotelomer Products and then 14 comparing the results to the same study performed on their Corre sponding Polymers will enable a 15 close look at the potential aerobic biodegradation of each of the Fl uorotelomer Products. The test 16 also gives an indication of the potential for rem oval of the test substances via sorption to the 17 activated sludge inoculum. 18

D. Use and Functionality of Fluorotelomer Products. Fluorotelomer products are used 19 widely in a range of commercial applications, incl uding some that are directly released into the 20 environment, such as fire fighting foams, as we ll as soil, stain, and grease resistant coatings on 21 carpets, textiles, paper, and l eather. Fluorotelomer products are aqueous dispersions. They 223 originate from fluorotelomer iodides [F(CF2CF2)n-I; where n= 3,4,5 commonly] which are 1 commercially made by reacting pentaf luoroethyl iodide with tetrafluoroethylene to create even2 number-carbon polyfluoroalky i odides. Although the telomerization process can be used to 3 produce odd-number-carbon raw materials, those are not intentionally made or sold by DuPont. 4 Fluorotelomer iodides are functi onalized to create a series of fluorotelomer raw materials 5 [including other fluorotelomer iodides [F-(C F2-CF2)n-CH2-CH2-I, n = 3,4,5 commonly] and 6 fluorotelomer alcohols [F-(CF2-CF2)n -CH2-CH2-OH, n = 2,3,4, 5 etc.] that are then appended to an 7 organic or inorganic moiety that contains the fluorotelomer as a functional group. As an example, 8 fluorotelomer acrylate mono mers [F-(CF2-CF2)n-CH2-CH2 -O-C(O)-CH=CH2, n = 3,4,5 9 commonly] are copolymerized with one or more of a group of hydrocarbon m onomers to create an 10 acrylic polymer with fluorotelom er functionality. The most comm on fluorotelomer raw material 11 used in DuPont’s fluorotelomer products is the family of fluorotelomer alcohols. These alcohols 12 are generally further transformed into polymeric and non-polymeric fluorotelomer-based products. 13 This Biodegradation SEP involves the testing of polymeric and non-polymeric fluorotelomer 14 products based on these common fluorotelomer interm ediates; any reference in this Biodegradation 15 SEP to DuPont’s commercial Fluorotelomer Products and their Corresponding Polymers is a 16 reference to both the polymeri c and non-polymeric products. 17 DuPont generally manufactures product con centrates as aqueou s dispersions of 18 fluorotelomer products that are sold to industria l customers who dilute, formulate, and blend the 19 fluorotelomer products. These customers then eith er apply these new formulations to finished 20 articles or sell them to other customers who appl y them to finished articles. In this way, the 21 DuPont commercial Fluorotelomer Products being te sted as part of this Biodegradation SEP are 224 thus analogous to paint concentrates and the finish ed articles to a cured paint surface. Evaluations 1 of these biodegradation studies carried out on DuPont’s Fluorotelomer Products for the purpose of 2 attempting to assess the biodegradation potential of cured fluorotelomer-based polymer products 3 would need to be carefully done given the differences between the cured and uncured 4 fluorotelomer-based products. Substances made w ith fluorotelomer functionality should not be 5 referred to as either “perfluorinat ed” or “fluoropolymers” as these terms describe other materials. 6 E. As part of this Biode gradation SEP, DuPont will: 7 1. Provide sufficient quantities, as desc ribed in Sections II.D-E, below, of 8 DuPont’s nine Fluorotelomer Produc ts, listed in Attachment A. 9 2. Prepare the following chemical substa nces (referred to collectively as 10 “Corresponding Polymers”). 11 a. A purified polymer that is prepared in accordance with this Appendix 12 Attachment H – Purification Procedure Agreemen t (PPA) for each of the Fluorotelomer Products 13 listed in Attachment A (“Purified Fluorotelomer Product”). DuPont and EPA have agreed on the 14 procedure(s) that DuPont will use to purify th e Fluorotelomer Products to produce the Purified 15 Fluorotelomer Products, taking into consideration the need to optim ize various factors, including 16 the appropriate duration of extraction and redispersion processes, the desired purity of the Purified 17 Fluorotelomer Products, the schedule for delivery of the Purified Fluorotelomer Products to the 18 laboratories for characteri zation, testing and studies, and the overall schedule for completing this 19 Biodegradation SEP. The PPA represents the agreement reached between EPA and DuPont 20 concerning the procedure to be used to produce th e Purified Fluorotelomer Products. Reporting on 21 the production of the Purified Fluorotelomer Pr oducts shall be in accordance with the reporting 225 provisions of the PPA. 1 b. A synthesized fluorotelomer produc t containing a purified polymer, 2 comparable to the Fluorotelomer Product for wh ich it corresponds, that is prepared in the 3 laboratory using production plan t raw materials (“Synthesize d Fluorotelomer Product”). 4

c. A synthesized fluorotelomer produ ct containing a purified polymer, 5 comparable to the Purified Fluorotelomer Product fo r which it corresponds, that is prepared in the 6 laboratory using high purity raw materials (“Lab-scale Synthe sized Fluorotelomer Product”). 7 3. Timing of Test Substance Transfer. 8

a. Within thirty (30) days of entering into a contract with(1) the laboratory 9 performing biodegradation and (2) the laboratory performing characterization, DuPont shall 10 transfer the sufficient quantities, as described in Sections II.D, be low, of the nine Fluorotelomer 11 Products to such laboratories. 12 b. Within thirty (30) days of entering into a contract with (1) the 13 laboratory performing biodegradation and (2) the laboratory performing characterization, 14 DuPont shall transfer the sufficient quantitie s, as described in Sections II.D of the 15 Corresponding Polymers, identified on Attachment A for pilot testing, to such laboratories. 16

c. DuPont shall transfer sufficient qu antities, as described in Sections 17 II.D, of the Corresponding Polymers that EPA selects for biodegradation studies to such 18 laboratories to timely commence characterizatio n and the biodegradation studies as required in 19 each laboratory’s EPA-approved work plan. 20 d. The timing for transfer of test substances to EPA is set forth in Section 21 II.E., below. 226 4. Third Party Laboratory Co ntract: Characterization. Contract with a Third 1 Party Laboratory (“laboratory”) to characteriz e the Fluorotelomer Products, their Corresponding 2 Polymers identified in Attachment A for pilot testing, and any of their Corresponding Polymers 3 selected by EPA for biodegradatio n studies according to Attachment B paramete rs to help inform 4 the results of the biodegradation studies. The ch aracterization of these Fl uorotelomer Products and 5 Corresponding Polymers, discussed in greater detail in Attachment B, will determine, using the 6 most accurate instrumentation and procedures avai lable as of the time of testing, and the best 7 achievable precision, the amount of residual monomers and oligomers, other residuals, and the 8 molecular weight distribution of polymeric material in th e Fluorotelomer Products and 9 Corresponding Polymers. 10
5. Third Party Laboratory Contract: Biodegradation. Contract with a Third 11 Party Laboratory (“laboratory”) to: 12

a. Pilot test the Fluorotelomer Pr oducts and Corresponding Polymers, as 13 identified in Attachment A, following study gui delines for modified semi-continuous activated 14 sludge (SCAS). SCAS pilot tes ting shall begin by the laborato ry no later than January 31, 2010. 15 b. Perform SCAS studies on the Fluorotelomer Products and any 16 Corresponding Polymers selected by EPA to be used in the biodegradation studies. 17

c. The laboratory will conduct the SCAS studies on the Fluorotelomer 18 Products and any of their Corresponding Polymers in order to investigate the degradation potential 19 of these Fluorotelomer Products to produce perfluorooctanoic ac id (PFOA) or other analytes 20 identified in Attachment C, and to determin e the potential, if any, for their Corresponding 21 Polymers to degrade to form PFOA or othe r analytes identified in Attachment C. 227 6. Panel Administrator Contract. Contract with an independent third party 1 (“Panel Administrator”) to implement and admini ster the Peer Consulta tion process under this 2 Biodegradation SEP. As discussed in greater detail in Sect ion V, a Peer Consulta tion Panel will be 3 involved in this Biodegradation SEP at specified milestones. 4
F. Applicability of Results. Because this Biodegradation SEP is designed to examine (1) 5 the inherent biodegradation potential of the Fluorotelomer Products and their Corresponding 6 Polymers and (2) the biodegrada tion potential and fate of the Fluorotelomer Products and their 7 Corresponding Polymers under aerobic sewage treatment plant simulation conditions, it does not 8 address the biodegradation potential of the Fluorotelomer Products or their Corresponding 9 Polymers in soil, sediments, landfills, or aquatic or marine systems, nor does it address degradation 10 under anaerobic conditions. Additionally, using the re sults of this Biodegradation SEP to attempt 11 to assess the biodegradation potenti al of cured polymers would need to be carefully done given the 12 differences between cured and uncur ed fluorotelomer-based products. 13 Inherent biodegradability test s are designed to assess whether a substance has any potential 14 for biodegradation. According to OECD Guidance on the Use of the Globally Harmonized System 15 for the Classification of Chemicals which ar e Hazardous for the Aqua tic Environment (April 16 2001), a positive result in an inherent biodegradation test indicates that the test substance will not 17 persist indefinitely in the e nvironment; however, rapid and co mplete biodegradation cannot be 18 assumed. A negative result in an inherent biodegradation test does not definitively demonstrate that 19 a chemical will not biodegrade under any c onditions, but rather that the chemical w ill not 20 biodegrade under the conditions of the test. Aerobic sewage treatment simulation tests are designed 21 to yield information on the behavior of chemicals in aerobic sewage treatment plants. These tests 228 permit the measurement of the rates of loss of the test chemical, formation and identification of 1 degradation products, partitioning of these chemicals to sludge solids, and volatilization under 2 conditions controlled to mimic those found in full-s cale aerobic wastewater treatment systems. The 3 results from these studies are indicative of how the test substance will behave in full-scale 4 systems. 5 II. GENERAL OBLIGATIONS AND REQUIREMENTS 6 A. Total Cost. DuPont must spend no less than five million dollars ($5,000,000) in 7 eligible SEP costs in pe rforming activities under th is Biodegradation SEP, but is not required to 8 spend more than five million dollars ($5,000,000) in eligible SEP costs. 9

B. SEP Completion. DuPont shall comply with the deadlines set forth in this Appendix 10 and will use its best efforts to satisfactorily complete this Biodegradation SEP, within the 11 meaning of Section IV.4 of the CAFO, no later than December 27, 2011 (“SEP Completion 12 Date”). No later than sixty (60) days prior to the SEP Completion Da te, if DuPont believes that it 13 will be unable to satisfact orily complete the SEP within such time period, DuPont shall petition 14 EPA to extend the SEP Completi on Date based upon DuPont’s asse rtion of good cause to extend 15 such date. The Office of Civil Enforcement, in co nsultation with the Office of Pollution Prevention 16 and Toxics, will review DuPont's petition and meet with DuPont to discuss its petition. The Office 17 of Civil Enforcement, in consultation with th e Office of Pollution Prevention and Toxics, shall 18 determine whether DuPont has demonstrated that there is good cause to extend the SEP 19 Completion Date and, if determining that DuP ont has demonstrated good cause, determine how 20 long to extend the SEP Completion Date. 21 C. Good Laboratory Practices and Study Monitor. For purposes of this Biodegradation 229 SEP, with regard to characterization and biod egradation testing and studies, DuPont and its 1 contractors shall be subject t o, and must comply with, 40 C.F. R. Part 792. Each laboratory 2 conducting research under this Biodegradation SEP shall desi gnate a Study Director in 3 accordance with 40 C.F.R. § 792.33. DuPont shall desi gnate a Study Monitor that will serve as the 4 point of contact for EPA and the laboratories. 5
D. Supply of Test Substances to Laboratories. DuPont shall provide the laboratory that it 6 contracts with to perform characterization and the laboratory that it contracts with to perform the 7 biodegradation studies, suffici ent quantities of the Fluorotel omer Products, identified in 8 Attachment A, and any Corresponding Polymers, to perform all of the tests and studies discussed 9 in this Biodegradation SEP for which such laborat ory has been contracted to perform. Sufficient 10 quantities of the Corresponding Polymers, identif ied in Attachment A for pilot testing, must 11 include the quantities necessary to perform charact erization, the pilot tests, and biodegradation 12 studies, even if such Corresponding Polymers are not selected by EPA to be used in the 13 biodegradation studies. Each Fluorotelomer Pr oduct and Purified Fluor otelomer Product that 14 DuPont provides to the laboratory performing char acterization must be from the same production 15 batch as provided to the labora tory performing the biodegradat ion studies. Each Synthesized 16 Fluorotelomer Product a nd Lab-scale Synthesized Fluorotelomer Product that DuPont provides to 17 the laboratory performing characterization must be from the same laboratory batch as provided to 18 the laboratory performing biodegradation testing. 1910 E. Supply of Test Substances to EPA. EPA shall receive sufficient quantities of the 1 Fluorotelomer Products identi fied in Attachment A, and Corresponding Polymers, to 2 replicate the characterization a nd biodegradation studies (i.e., SC AS tests (including pilots)) 3 performed under this Biodegradation SEP. DuP ont shall fulfill this obligation as follows: 4

• Sufficient quantities for EPA of the Fl uorotelomer Products identified in 5 Attachment A, the nine Synthesized Fluorotelomer Products, and the nine 6 Lab-scale Synthesized Fluor otelomer Products shall be shipped by DuPont to 7 a laboratory identified by EPA (per SEP A Section II.H.) on or before 8 November 18, 2008 and 9

• Sufficient quantities for EPA of the Pu rified Fluorotelomer Products resulting 10 from the PPA shall be shipped by DuPont no later than fourteen (14) days 11 after sparging ceases for each such Product or by June 1, 2009, whichever 12 occurs first. Further details on the quantities to be shipped, the specific 13 timing for shipment, and shipment locati on are set forth in Section II.B.4. of 14 the PPA. 15 All test substances shall be provided to EP A following the chain of custody procedures in 16 Attachment D, except that quart jars accepta ble under DOT regulations may be substituted 17 for the 30 mL containers. DuPont shall develo p appropriate holding procedures for the test 18 substances to assure the chemical integrity of such substances. These appropriate holding 19 procedures shall be provided to EPA three (3) days in advance of the date that DuPont ships 20 the test substance to the EPA-identified laboratory. 21

F. Chain of Custody. Any instance in which, pursuant to this Biodegradation 2211 SEP, DuPont or a laboratory transfers either Fluorotelomer Products, Corresponding 1 Polymers, or other chemicals to a laborat ory or to EPA, Du Pont and/or such 2 laboratory(ies) are required to follow the chai n of custody procedures in Attachment D of 3 this Appendix. 4
G. EPA Review and Approval (or Acceptance) Process. EPA will review and either 5 approve or, pursuant to Section II.G.3, below, a ccept all work plans, protocols, contracts, 6 request for proposals/bids, confidentiality agr eements, lists, material modifications, and any 7 other submission other than a final report, prog ress report, preliminary report, or quarterly 8 report, relating to performance of this Biodegradation SEP. 9

1. In providing comments to DuPont regarding such documents or 10 submissions, EPA will include justification(s) and/or rationale(s) for the comments. EPA 11 will provide such comments to DuPont within a reasonable amount of time, commensurate 12 with the type and nature of the doc ument or submission being reviewed. 13
2. All of EPA’s comments, including requested changes, to a document or 14 submission enumerated above must be incorpor ated by DuPont, and/or its contractors, and 15 resubmitted to EPA for approval. With regard to contracts, request for proposals/bids, and 16 confidentiality agreements, if DuPont believ es that EPA’s comments do not relate to the 17 performance of the Biodegradation SEP, DuPont shall notify EPA within seven (7) business 18 days of DuPont’s receipt of such comments. In this notification to EPA, DuPont shall 19 explain why it believes that EPA’s comments do not relate to the performance of this 20 Biodegradation SEP and that such comments are not required to be in corporated into the 21 document. EPA shall consider DuPont’s ex planation before making a final decision 2212 regarding whether such comment s relate to the performance of this Biodegradation SEP; 1 provided, however, that EPA will not unreasonably require DuPont to modify or remove 2 from any such contract or agreement any provisi on that requires the contractor to indemnify 3 DuPont for stipulated penalties that DuPont pays under Section VII.4 of the CAFO as a 4 result of the contractor’s failu re to perform work in accordance with a schedule to which the 5 contractor has agreed. 6
3. In limited circumstances, EPA may, in its discretion, after reviewing a 7 proposed contract, proposed conf identiality agreement, or pr oposed protocol opt to accept 8 such a document without formally approving it. If EPA exercises this option, EPA will 9 notify DuPont that the proposed contract or proposed confidentiality agreement has been 10 accepted. 11

H. Submission Procedures and Transfer of Test Substances to EPA. All 12 submissions by DuPont, a laboratory, or the Panel Administrator to EPA shall be submitted 13 via first class mail, return receipt reques ted, or by commercial delivery service with 14 documented delivery, to the person identified in Section V of the CAFO. All submissions 15 shall be provided in electronic format on a compact disc (CD). All submissions shall be 16 accompanied by a cover letter in hardcopy, that describes the contents of the CD, and 17 complies with any other requirements of the CAFO. EPA will specify, in advance of the 18 transfer of test substances a ddressed in Section II.E, above, wh ere to transfer such divided 19 samples. 20
I. Final Reports containing Confidential Business Information. All final reports 21 provided to EPA containing Confidential Business Information (“CBI”) must also be provided 2213 to EPA in a sanitized version within thirty (30) days of submission of the CBI version. Such 1 final reports include final laboratory reports under 40 C.F.R. Part 792, final reports of the 2 Peer Consultation Panel, and SEP Completion Reports submitted pursuant to Section IV of 3 the CAFO. Any claim of CBI must be substa ntiated pursuant to 40 C.F.R. Part 2, upon 4 submission of the sanitized version. Note thatthis Section II.I gover ns over CAFO Section 5 V.9. with respect to the timing for submittal of sanitized final laboratory reports, final Peer 6 Consultation Panel reports, a nd the SEP Completion Report. 7
J. Manner in which Testing and Studies shall be Performed. The characterization 8 and biodegradation studies must be performe d in the following manner and in compliance 9 with the following Attachments, unless DuPont or its contractor requests, and EPA approves, a 10 change, or if EPA, after consultation with Du Pont, determines that a change is appropriate: 11 1. DuPont shall use one laboratory to characterize the Fluorotelomer Products, 12 the Corresponding Polymers identified in Attachment A for pilot testing, and any 13 Corresponding Polymers that EPA selects for biodegradation studies, in accordance with 14 Attachment B. 15 2. DuPont shall use one laboratory to perform SCAS studies (alternatively 16 referred to herein as the “biodegradation st udies”), in accordance with Attachment C. 17

a. This laboratory shall perfor m the SCAS studies on the 18 Fluorotelomer Products and any Corres ponding Polymers that EPA selects for 19 biodegradation studies, following both the seque nce, and grouping (to maximize laboratory 20 efficiency, capacity allowing) provided in Attachment A. 21 b. If, based on their submi ssions in response to the Request for 2214 Proposals (“RFP”) and any further information that DuPont or EPA receives, none of the 1 laboratories identified in Attachment G appear s to be reasonably ca pable of, or if no 2 laboratory is willing to contractually commit t o, completing all of the biodegradation studies 3 (including pilots) by no later th an September 1, 2011 (or such longer time as EPA approves), 4 the parties agree to implement the following ap proach, in the followi ng order of preference: 5
i. DuPont shall use one laboratory identified in Attachment G to 6 perform the biodegradation studies but not th e analytical component of the studies, and 7 DuPont shall use the laboratory that DuPont co ntracts with to perform characterization of 8 the Fluorotelomer Products and any Corresp onding Polymers under this Biodegradation 9 SEP, as a subcontractor for the analytical component of the biode gradation studies; or 10 ii. DuPont shall propose two laborator ies identified in Attachment 11 G to perform the biodegradation studies and sh all propose how to divide the biodegradation 12 work between the two laboratories, subject to EPA approval. 13 3. Pilot Testing 14

a. The laboratory performing the biod egradation studies shall conduct 15 one 14-day pilot test for SCAS on each of th e Fluorotelomer Products that have been 16 selected for pilot testing as identified in A ttachment A, and shall conduct one 14-day pilot 17 test for SCAS on each of the Corresponding Polymers that have been selected for pilot 18 testing as identified in Attachment A, to devel op test data that can in form protocol decisions 19 and to establish that these bi odegradation studies can produce results that can be analyzed 20 and quantified with regard to the biodegrad ation potential of the Fluorotelomer Products 21 and any Corresponding Polymers. 2215 b. EPA reserves the right, after reviewing the results of the first pilot of 1 the Fluorotelomer Products or first pilots of its Corresponding Polymers, to specify the use of 2 the Corresponding Polymers for the p ilot tests in the remaining groups. 3

c. The Peer Consultation Panel, descri bed in Section V, below, shall 4 review the results of such p ilots, including the pilots’ protocol and design, in conjunction 5 with the characterization data. The Panel Admi nistrator shall develop and forward to EPA 6 and DuPont a final Panel repor t providing: (1) eachparticipating Panel member’s comments 7 and recommendations on appropriate final prot ocols for the laboratory to use for the 8 biodegradation studies and (2) comments a nd recommendations regarding which of the 9 Corresponding Polymers should be used in the biodegradation studies. EPA w ill review the 10 Panel report and any comments that DuPont has submitted to EPA pursuant to Section II.K, 11 below. EPA will then transmit its comments and judgments to DuPont and require DuPont to 12 direct the laboratory to develop a final prot ocol, within a specified timeframe, to be 13 submitted to EPA for approval. The final protocol that the laboratory develops shall consider 14 the Panel report and EPA’s comments and j udgments. The laboratory shall not commence 15 the biodegradation studies until it has received EPA’s approval of the final protocol and 16 EPA’s determination regarding which of the Co rresponding Polymers shall be used in the 17 biodegradation studies. 18 K. At any time during the performance of this Biodegradation SEP, DuPont may 19 provide comments to EPA regard ing the following technical documents: protocols, test 20 methods, analytical methods (and any modificati ons of such technical documents), and the 21 Panel report addressing the charge set fort h in Section V.A.2.b. To be eligible for 2216 consideration by EPA, DuPont must submit such comments to EPA within seven (7) 1 business days of DuPont’s receipt of the t echnical document. EPA reserves the right to 2 directly seek input from the appropriate la boratory regarding DuPont’s comments. The 3 extension of deadlines in Secti on II.L, below, does not apply to this Section II.K. A request 4 for an extension of this deadline shall be subject to EPA’s discre tion, and granted for good 5 cause shown. 6 L. Extensions of deadlines ot her than the SEP Completion Date 7 1. First Extensions. For an extension of a deadline specified in this 8 Appendix or in a work plan or other subm ission implementing this Biodegradation SEP, 9 other than the SEP Completion Da te, DuPont shall be entitled to a first extension as a matter 10 of right, provided that DuPont submits a writte n notice to EPA that it is exercising this 11 provision, no later than one busin ess day prior to the deadline. 12

a. For deadlines of thirty (30) days or less, DuPont shall 13 automatically receive an extension equal to th e number of days init ially provided in this 14 Appendix. 15 b. For deadlines greater than thirty (30) days, DuPont shall 16 automatically receive a 30-day extension unles s DuPont requests, a nd EPA approves, an 17 extension greater than thirty (30) days, for good cause shown. 18

c. For deadlines that are not stated in terms of number of days after 19 a preceding event but are stated as specific date s, DuPont shall automatically receive a 30- 20 day extension unless DuPont reque sts, and EPA approves, an ex tension greater than thirty 21 (30) days, for good cause shown. 2217 2. Second Extension (for Third Party Work only). For an extension of a 1 deadline other than the SEP Completion Date involving work that DuPont has contracted 2 with a third party to perform, if, after exercisi ng its right to an automatic extension provided 3 in Section II.L. 1, above, DuPont requests a second extension of the same deadline, such 4 extension shall be granted provided that DuPont ’s Study Monitor sent a written notice to the 5 third party no later than five (5) business days before the deadline, and DuPont requests an 6 extension no later than one (1) business day prior to the deadline. In exercising this 7 provision, DuPont shall furnish EPA with the writ ten notice that it sent to the third party. 8

a. For deadlines of thirty (30) days or less, DuPont shall 9 receive an extension equal to the number of days initially provided in this Appendix. 10 b. For deadlines greater than thirty (30) days, DuPont shall receive a 11 30-day extension unless DuPont requests, and EPA approves, an extension greater than 12 thirty (30) days, for good cause shown. 13
3. Additional Extensions. DuPont’s request for an extension other than the 14 SEP Completion Date for which there is either : (a) a second request fo r an extension of a 15 deadline that does not involve work that Du Pont has contracted with a third party to 16 perform, or (b) a third request for an exte nsion of a deadline that does involve work that 17 DuPont has contracted with a third party to perf orm, or (c) subsequent requests for extensions 18 of deadlines addressed in Sections II.L.3.a-b, such requests are subject to EPA’s discretion, 19 and granted for good cause shown. In granting a request for an extension under Section 20 II.L.3, EPA may grant an extension of time di fferent from the amount of time requested by 21 DuPont. 2218 4. Delays resulting from EPA Review. If DuPont is delayed in performing a 1 required action prescribed in an EPA-approve d work plan and the delay is caused only 2 because of EPA’s review and approval of a submission that DuPont provided to EPA 3 sufficiently in advance of the deadline so as to allow EPA a reasonable amount of time to 4 review and approve the submission, commensu rate with the type and nature of the 5 submission, DuPont will be entitled to an extension to perform the required action. The 6 extension shall be equal to the number of days of EPA’s review and approval of the 7 submission and shall be calculated from the date that EPA received such submission through 8 the date that EPA transmitted its approval of the submission to DuPont. If, during its review 9 and prior to its approval, EPA requests that DuPont make changes to the submission, in 10 calculating the extension, the pa rties shall not include the am ount of time for DuPont to 11 make such changes and resubmit the document to EPA for approval. Such time excluded 12 from the extension shall start from the date that EPA transmits the requested changes to 13 DuPont through the date that EPA receives the amended submission, incorporating the 14 requested changes. But, such time excluded fr om the extension shall not include time during 15 which EPA is still reviewing a portion of the submission for which EPA has also requested 16 changes. If an extension is granted under this provision, DuPont may still request an 17 extension of the extended deadlin e under Sections II.L.1-3, above. 18

5. To the extent that this Section II.L governs requests for extensions of 19 deadlines under this Biodegradation SEP, it shall supersede any provisions in the CAFO 20 concerning the extension of deadlines. 2119 1 III. SELECTION OF THIRD PARTY LABORATORIES 2 A. Development of Confidentiality Agreement. Within forty-five (45) days from the 3 date DuPont signs the Consent Agreement, Du Pont shall submit to EPA the confidentiality 4 agreement that DuPont intends to use with any laboratory. Within seve n (7) business days of 5 receipt of EPA’s approval (or acceptance) of the confidentiality agre ement, DuPont must 6 provide the laboratories listed in Attachment G with a confidentiality agreement and request 7 that such confidentiality agreement be signed a nd returned by a date certain consistent with 8 the deadlines established in this Appendix. 9
B. Development of Request for Proposals. By February 1, 2006, DuPont shall 10 submit to EPA one or more draft Requests for Proposals (RFPs) to be sent to all of the 11 laboratories identified in Attachment G to solicit proposals for (1) characterizing the 12 Fluorotelomer Products and any Corresponding Polymers, and (2) conducting the SCAS 13 studies on the Fluorotelomer Products and any Corresponding Polymers (including pilot 14 testing). 15 The proposed RFPs must at leas t include the following elements: 16 1. The laboratory’s obligation, if select ed, to follow 40 C.F.R. Part 792, and 17 prepare (or subcontract for preparation of) and comply with, a QAPP, provided in Attachment 18 E of this Appendix. 19 2. All existing information that would be reasonably relevant to assisting 20 the laboratory to develop a firm cost estimate, with pricing, for the work that the laboratory 21 is solicited to perform, which must include su ch information as the identity, structure, and 2220 compositional analysis of the Fluorotelomer Products. The laboratory’s proposal may be 1 based upon not-to-exceed estimates for the proposed work or any other method that 2 provides, to the extent feasible, a firm cost estimate for the work. 3

a. Laboratories receiving the RFP for characterization of the 4 Fluorotelomer Products and Corresponding Poly mers must provide cost estimates for 5 characterizing all of the Fluorotelomer Products and their Corresponding Polymers. 6 b. Laboratories receiving the RFP fo r the biodegradation work must 7 include cost estimates for conducting 14-day p ilot tests for SCAS on the Fluorotelomer 8 Products and the Corresponding Polymers, as iden tified in Attachment A, and for performing 9 SCAS studies on all Fluorotelomer Produc ts and their Corresponding Polymers. 10
3. The laboratory’s cost proposal should include the iden tification of any 11 analytical methods that the laboratory anticipates needing to develop in order to perform any 12 of the required analytical work associated wi th the characterization or biodegradation studies 13 required under this Biodegradation SEP. 14
4. For the laboratories receiving th e RFP for the biodegradation work, 15 DuPont shall provide the guidelines for SCAS, included in Attachment C of this Appendix. 16
5. A requirement that the recipient identi fy in its proposal a general schedule 17 and budget for completion of the proposed work id entified in the RFP in accordance with the 18 deadlines and criteria se t forth in this Appendix. 19
6. A copy of Section II.L, above, and the terms and conditions 20 identified in Section III.F.2, below. 21 7. Notice that failure to submit a proposal meeting all of the criteria in the 2221 RFP to DuPont within thirty (30) days of th e laboratory’s receipt of the RFP may render the 1 laboratory ineligible for selection. 2
C. Within seven (7) days of receipt of th e approved RFP, DuPont shall provide the 3 EPA-approved RFPs to all laboratories listed in Attachment G that have submitted to 4 DuPont a signed confidentiality agreement. If DuPont has not received a signed 5 confidentiality agreement from a laboratory by th e date that DuPont is required to provide 6 the RFP, DuPont shall notify EPA why it can not send the RFP to such laboratory. EPA 7 reserves the right to contact such laborat ory to inquire why it has not returned the 8 confidentiality agreemen t and, if such laboratory agrees w ithin seven (7) business days of 9 contact by EPA to sign and submit the confidentiality agreement to DuPont, DuPont shall 10 then provide the RFP to the laboratory. 11
D. Laboratory Eligibility. Within forty-five (45) days of EPA’s approval of the 12 RFPs, or such longer time as EPA has approved in accordance with Section III.D.2, below, 13 DuPont must receive a firm proposal back from a laboratory receiving an RFP in order for that 14 laboratory to be eligible to perform work under this Biodegradation SEP. 15
1. DuPont shall require th e recipients to submit one duplicate copy of its 16 proposal to EPA concurrent wi th its submission to DuPont. 17
2. If a laboratory that received the RFP does not submit a proposal to 18 DuPont within thirty (30) days of receipt of the RFP, EPA reserves th e right to contact such 19 laboratory to inquire why it has not submitted a proposal to DuPont. If the laboratory 20 indicates that it wants to submit a proposal, the laboratory must do so by a date to be specified 21 by EPA, which shall not be longer than fourteen (14) days after cont act by EPA, unless the 2222 parties agree to a longer time period. 1 E. Selection of Laboratories. No later than fourteen (14) days after receipt of the 2 last bid that DuPont received within the applicable period for submission under III.D, 3 DuPont must propose to EPA the laboratory that DuPont would like to use to perform the 4 characterization of the Fluorotelomer Pr oducts and Correspondi ng Polymers, and the 5 laboratory that DuPont would like to use to perform the biodegrad ation studies of the 6 Fluorotelomer Products a nd Corresponding Polymers. 7

1. DuPont must provide EPA with a detailed rationa le describing 8 why DuPont has selected such laboratories to perform the work and why it has not selected 9 the other laboratories that submitte d a proposal to perform such work. 10

2. DuPont shall contract with only one laboratory to perform the 11 modified SCAS studies on the Fluorotelomer Products and Correspond ing Polymers. DuPont 12 shall contract with only one laboratory to characterize the Fluorotelomer Products and 13 Corresponding Polymers. 14 3. If, after proposal submission, EP A rejects either the laboratory for 15 characterization and/or the la boratory for biodegradation tes ting, EPA will pr ovide DuPont 16 with a written rationale for the rejection and require DuPont to propose a different laboratory 17 from which DuPont has received a proposal. The parties will continue this process until EPA 18 agrees to DuPont’s laboratory selection. 19 4. If no laboratories submit proposals to DuPont, or if none of the 20 proposals submitted is acceptable to EPA, the Di rectors of the Office of Civil Enforcement 21 and the Office of Pollution Prevention and Toxi cs shall meet with DuPont to discuss 2223 appropriate changes that can be made to th is Biodegradation SEP to foster laboratory 1 participation in the performance of this Bi odegradation SEP. EPA and DuPont shall first 2 implement the alternative approach set forth in Section II.J.2.b before EPA considers whether 3 to expand the list of potential laboratories id entified in Attachment G to include foreign 4 laboratories. If the part ies cannot agree to any such appropriate changes, or if after agreeing to 5 such appropriate changes, no laboratories subm it a proposal, this Biodegradation SEP shall be 6 deemed to have ceased prior to its completion, in which case, DuPont shall not be subject to 7 Section VII.3 of the CAFO but DuPont shall be subject to Section VII.1 of the CAFO, and 8 the parties may exercise Section VI of the CA FO even though this Biodegradation SEP is not 9 deemed satisfactorily completed. 10
F. Laboratory Contract Requirements. Within thirty (30) days of EPA’s approval 11 of the laboratories under Section III.E, DuPont must provide EPA with a final draft of the 12 proposed contract that DuPont and the two laboratories have negotiated. 13 1. No contract shall be executed by DuPont and a laboratory until EPA has 14 reviewed and either approved or accepted the contract in accordan ce with Section II.G.2. 15
2. The proposed contract must include the following te rms and conditions in 16 addition to the elements discussed in Section III.B, above: 17

a. The laboratory consents to in spection, for purposes of this 18 Biodegradation SEP, at any reasonable time, as provided in 40 C.F.R. § 792.15. 19 b. All laboratory personnel must dire ctly answer any questions from 20 EPA pertaining to work the laboratory is performing under this Biodegradation SEP. Any 21 request from EPA for written information from a laboratory pertaining to work it is 2224 performing under this Biodegradation SEP will be transmitted through DuPont’s designated 1 Study Monitor. DuP ont’s Study Monitor shall notify the la boratory of EPA’s request for such 2 information within three (3) business days of EPA’s request, and the laboratory shall 3 provide such information to EPA and DuPont within three (3) business days of DuPont’s 4 Study Monitor’s notice to the laboratory. 5 i. If, based upon oral or written information so obtained, EPA 6 believes that a minor modification(s) to an a pproved or accepted test protocol or other 7 analytical method must be made, EPA will info rm DuPont of the modification and require 8 DuPont to instruct the laboratory to impl ement the change imme diately and continue 9 running the test. DuPont may submit comments for EPA’s consideration regarding such 10 modification, in accordance with Section II.K, above. 11 ii. If, based upon oral or written information so obtained, EPA 12 believes that a modification to an approved or accepted test protocol or other analytical 13 method must be made that requires the laborat ory to stop the test and start again, EPA will 14 inform DuPont of the modificati on and require DuPont to instru ct the laboratory to provide 15 EPA and DuPont with all data generated up to that date and immediately terminate the test 16 and re-run the test implementing the modification. DuPont may submit comments for 17 EPA’s consideration regarding such modifica tion, in accordance with Section II.K, above. 18
c. EPA shall have the exclusive au thority to approve all work plans, 19 protocols, and test methods that the study sp onsor would otherwise approve under 40 C.F.R. 20 Part 792 as well as any analytical methods not expressly enumerated in 40 C.F.R. Part 792, 21 and the QAPPs. DuPont may submit comments for EPA’s consideration regarding such 2225 technical documents, in accord ance with Section II.K, above. 1 d. Material Modifications. Any proposed material modification that 2 a laboratory or DuPont would like to make th at involves work conducted under this 3 Biodegradation SEP must be approved by EPA prior to implementation. For purposes of this 4 Biodegradation SEP, a material modification is an adjustment to the work conducted under 5 this Biodegradation SEP made in the normal co urse of implementing such work that would 6 result in a substantive alteration of the biode gradation studies or other activities conducted 7 under this Biodegradation SEP. 8

e. EPA and DuPont shall receive written notification from the 9 laboratory no later than five (5) business days before the laboratory makes any modification 10 that involves work previously approved by EPA under this Biodegradation SEP, except as 11 provided in Section III.F.2.f, below. If, base d upon this notification, EPA believes that such 12 modification is material, EPA will orally notif y DuPont and the laboratory immediately, and 13 require DuPont to instruct the laboratory to submit such proposed modification to EPA for 14 approval within the timeframe that EPA establis hes in the oral notice. DuPont may submit 15 comments for EPA’s consideration regarding su ch modification, in accordance with Section 16 II.K, above. 17
f. Emergency Modifications. In the event of an emergency, the 18 laboratory may make a modification that invo lves work previously approved by EPA under 19 this Biodegradation SEP, to address an unforeseen circumstance or occurrence that will have 20 an adverse affect on the test if not immedi ately implemented. The laboratory shall provide 21 notice to EPA and DuPont with in twenty-four (24) hours of such modification. If, based 2226 upon this modification, EPA believes that the labor atory must stop the test and start again or 1 that the laboratory should implement an a dditional change, EPA will require DuPont to 2 instruct the laboratory to provide EPA and DuPont with all data generated up to that date and 3 either immediately terminate the test and re-run the test or immediately implement the 4 additional change. DuPont may submit comments for EPA’s consideration regarding such 5 modification or additional change, in accordance with Section II.K, above. 6
g. Progress Reports. Within thirty (30) days of commencing the 7 technical work, and by the first day of each mo nth thereafter until the laboratory submits its 8 last final report under Section IV.C, below, the laboratory shall provide EPA and DuPont 9 with a progress report that describes the tec hnical work performed, a copy of the raw data 10 generated up to that date, and costs incurred. 11
h. Information Exchange. When the laboratory provides any 12 information in written form to EPA or DuP ont concerning the laboratory’s work under this 13 Biodegradation SEP, the laboratory shall provide such information to the other party as soon 14 as practicable. The laboratory is not respon sible for disseminating information that it 15 receives in written form from DuPont; DuPont shall concurrently provide the information to 16 EPA. When the laboratory provides information in oral form to EPA or DuPont concerning 17 the laboratory’s work under this Biodegradati on SEP, the laboratory shall communicate such 18 information to the other party as soon as prac ticable. The laboratory is not responsible for 19 communicating information it receives in oral form from DuPont or EPA; each party shall 20 communicate such information to the other party. However, when the laboratory receives 21 an oral communication from DuPont or EPA, it shall notify both parties and provide a brief 2227 written description of such oral communication. To the extent practicable, the parties shall 1 jointly communicate orally with the laboratory in light of the labor atory’s obligation to 2 prepare a written notification to the parties when it receive s an oral communication, not 3 jointly, from either party. 4 i. The laboratory shall allow Peer Consultation Panel members to 5 visit the laboratory, as necessary, when the Peer Consultation Panel has a meeting(s) and/or 6 deliberations relevant to the work that the laboratory is performing under this Biodegradation 7 SEP. 8
G. Contract Execution. Within five (5) business days of receipt of EPA’s approval 9 (or acceptance) of the proposed contract in accordance with Section II.G.2, DuPont must 10 sign and forward the contract to the laboratory for execution. 11

a. DuPont and the laboratory shall seek to execute the contract within thirty 12 (30) days of receipt of EPA’s approval (or acceptance) of the proposed contract. If DuPont 13 and the laboratory have not ex ecuted the contract within thir ty (30) days, DuPont must, 14 inform EPA of the delay, explain the reason for th e delay, provide a reasonable estimate as to 15 when the contract will be executed, and exerci se its right to an automatic extension in 16 Section II.L, above. After exerci sing its right to an automatic extension in Section II.L, but 17 before a second request for an extension under Section II.L, if DuPont believes that, 18 notwithstanding its best efforts, the laboratory will not enter into the contract with DuPont, 19 DuPont shall provide notice to EPA of the impa sse. EPA reserves the right to contact such 20 laboratory, upon receipt of such notice from Du Pont, to inquire why the laboratory has not 21 entered into the contract with DuPont. If DuP ont and the laboratory have not entered into a 2228 contract within fourteen (14) days EPA’s i nquiry, unless DuP ont and EPA agree to a longer 1 time period, then the parties shall follow the approach set forth in Section III.H, below. 2
b. Within five (5) business days fr om the date that DuPont and the 3 laboratory execute the contract, DuPont must notify EPA that it has entered into the 4 contract with the laboratory. 5

H. If no laboratory enters into a contract withDuPont, the Directors of the Office of 6 Civil Enforcement and the Office of Pollution Pr evention and Toxics shall meet with DuPont 7 to discuss appropriate changes that can be made to this Biodegradation SEP to foster 8 laboratory participation in the performance of this Biodegrada tion SEP. If the parties cannot 9 agree to any such appropriate changes, or if af ter agreeing to such appropriate changes, no 10 laboratories enter into a contra ct with DuPont, this Biodegradation SEP shall be deemed to 11 have ceased prior to its completion, in which case, DuPont shall not be subject to Section 12 VII.3 of the CAFO but DuPont sh all be subject to Section VII .1 of the CAFO, and the parties 13 may exercise Section VI of the CAFO even though this Biodegradation SEP is not deemed 14 satisfactorily completed. 15
I. Commencement of Work. Within thirty (30) days from the date that DuPont and 16 each laboratory execute the contract, the laboratory must commence the work it has agreed to 17 perform under the contract, as de scribed in Section IV, below. 18 IV. TESTS TO BE PERF ORMED ON DUPONT’S FLUOROTELOMER 19 PRODUCTS AND CORRE SPONDING POLYMERS 20 A. Characterization of the Fluorotelom er Products and Corresponding Polymers 21 1. As provided in Sectio n III.I, the laboratory shall commence the work 2229 identified in this Sec tion IV.A, within thirty (30) days from the date that DuPont and the 1 laboratory execute the contract to perform work under this Biodegradation SEP. The 2 laboratory shall commence such work by submitting a work plan to EPA that describes the 3 work the laboratory has been contracted to perform, addressing all requirements for such 4 work under this Biodegradation SEP (including Attachment B) , and a general schedule and 5 budget for completion of the work. Within forty-fi ve (45) days from the date that DuPont 6 and the laboratory execute the contract to pe rform work under this Biodegradation SEP, the 7 laboratory shall submit to EPA all relevant tech nical documents that require EPA’s approval. 8 2. Within fourteen (14) business days of EPA’s approval of the work plan 9 and all relevant technical documents, the labor atory shall begin the implementation of the 10 EPA- approved work plan. 11
3. Within fourteen (14) busines s days of characterizing each 12 Fluorotelomer Product and any Corresponding Polymers, the labo ratory shall provide EPA 13 and the Panel Administrator, a Certificate of Analysis, as provided in Attachment F, as 14 well as the protocols and a copy of the raw data. The laboratory shall provide the QAPP to 15 the Panel Administrator with the first Certificate of Analysis but need not provide the 16 QAPP for the remaining eight Fluorotelo mer Products and Corresponding Polymers. 17 B. Biodegradation Studies: SCAS 18 1. As provided in Sectio n III.I, the laboratory shall commence the work 19 identified in this Section IV.B , within thirty (30) days from the date that DuPont and the 20 laboratory execute the contract to perform su ch work. The laboratory shall commence such 21 work by submitting a work plan to EPA that describes the work the laboratory has been 2230 contracted to perform, addressing all require ments for such work under this Biodegradation 1 SEP (including Attachment C), and a genera l schedule and budget for completion of the 2 work. Within ninety (90) days from the date that DuPont and the laboratory execute the 3 contract to perform work under this Biodegrad ation SEP, the laboratory shall submit to EPA 4 all relevant technical documents that require EPA’s approval. 5
2. Within fourteen (14) business days of EPA’s approval of the work plan 6 and all relevant technical documents, the labo ratory shall begin the implementation of the 7 EPA-approved work plan. 8 a. The laboratory shall run th e SCAS test for twelve (12) 9 weeks. The inoculum source shall be activ ated sludge mixed liquo r from a municipal 10 wastewater treatment plant operating in compliance with its National Pollutant Elimination 11 Discharge System (“NPDES”) permit. Settled do mestic sewage from a municipal wastewater 12 treatment plant operating in compliance with it s NPDES permit shall be used as feed. Daily 13 samples of the aqueous phase, sludge solids, an d off gas shall be collected, analyzed, and 14 quantified for the analytes listed in Attachment C of this Biode gradation SEP. If at any time 15 EPA determines, or if DuPont or the laborat ory recommends and EPA de termines, that daily 16 sampling is not necessary, EPA will notify DuPont to instruct the laboratory of a change in 17 the sampling schedule and establish a new timeframe for sampling. Analyses shall be 18 conducted using the most accurate instrumentation and procedures available as of the time of 19 testing. All analytical methods shall be approved by EPA prior to the start of the studies. 20
3. The laboratory shall conduct one 14-day pilot test for SCAS on each of 21 the Fluorotelomer Products that have been se lected for pilot testing as identified in 2231 Attachment A, and shall conduct one 14-day pilot test for SCAS on each of the 1 Corresponding Polymers that have been selected fo r pilot testing as iden tified in Attachment 2 A, to develop test data that can inform pr otocol decisions and to establish that these 3 biodegradation studies can produce results that can be analyzed and quantified with regard to 4 the biodegradation potential of the Fluorot elomer Products and Corresponding Polymers. 5
4. Pilot Preliminary Reports. No later than fourteen (14) days after the 6 laboratory completes each pilot test, the laborat ory shall provide EPA, DuPont, and the Panel 7 Administrator with a preliminary report regard ing the pilot test results. In providing the 8 preliminary report, the laboratory shall summarize the pilot test results and provide the QAPP, 9 the protocols, and a copy of the raw data. 10

5. Within fourteen (14) business days after EPA has approved the final 11 design and protocols for the SCAS studies, th e laboratory shall begin the biodegradation 12 studies following the sequence an d groupings (capacity allowing) provided in Attachment 13 A. 14

a. EPA reserves the right to om it any analyte identified in 15 Attachment C for purposes of the biodegradation studies. 16 b. Upon consideration of the Panel’ s report addressing the charge in 17 Section V.A.2.c, additional characterization data for any purified or sy nthesized Corresponding 18 Polymers that had not been characterized pr ior to the Panel’s report, and the amount of 19 remaining eligible SEP dollars, EPA shall de termine which of the Corresponding Polymers, 20 if any, shall be used in the biodegradation studies. 21
6. Study Preliminary Reports. Within seven (7) bus iness days of the 2232 laboratory completing the biodegr adation studies on the first Fluorotelomer Product and any 1 of its Corresponding Polymers (or first group of Fluorotelomer Products and any of their 2 Corresponding Polymers), the laboratory shall submit a preliminary report summarizing the 3 study results to EPA, DuPont, and the Panel Administrator for distribution to the Peer 4 Consultation Panel. 5

a. In providing the preliminary report, the laboratory shall also 6 provide the protocols and a c opy of the raw data. The laborat ory shall only provide the 7 QAPP to the Panel Administrator with the first Fluorotelomer Product and any of its 8 Corresponding Polymers (or fi rst group of Fluorotelomer Products and any of their 9 Corresponding Polymers). 10 b. As the laboratory completes biodegradation studies on each 11 Fluorotelomer Product and Corresponding Poly mers (or group of Fluorotelomer Products 12 and Corresponding Polymers), the laboratory shall submit preliminary reports and 13 associated information described in Section IV.B.6.a, above, to EPA, DuPont, and to the 14 Panel Administrator for distribution to the Peer Consultation Panel. 15 C. Reporting Test and Study Results 16 1. Each laboratory shall follow 40 C.F.R. Part 792, subpart J in preparing 17 the final report for the tests that it performs. 18 2. Each laboratory must submit a fi nal report to EPA, DuPont, and the 19 Panel Administrator within thirty (30) days of completing all of the work identified in its 20 contract with DuPont. 2133 1 V. PEER CONSULTATION FOR TESTS PERFORMED ON DUPONT’S 2 FLUOROTELOMER PRODUCTS AN D CORRESPONDING POLYMERS 3 A. Peer Consultation Panel and Charges. As part of this Biodegradation SEP, DuPont 4 shall contract with an independent third party to serve as a Panel Admi nistrator to implement 5 and administer the Peer Consultation process under this Biodegradation SEP. 6 1. The Panel Administrator shall select a Peer Consultation Panel (“Panel”) 7 that will address the charges set forth in Section V.A.2, below. 8 a. The Panel Administrator shall solicit potential Panel member 9 nominations from the public, will allow self- nomination, and may nomi nate potential Panel 10 members. The parties may submit Panel member nominations to the Panel Administrator. 11 b. After receiving Panel member nominations, the Panel 12 Administrator shall develop a pool of potential Panel member s that will be subject to 13 comment by EPA, DuPont, and the public. 14 c. After considering all comme nts received regarding the Panel 15 member pool, the Panel Administrator shall se lect a potential Panel an d submit the potential 16 Panel to EPA and DuPont for comment. The Pa nel Administrator has th e exclusive authority 17 to select the Panel. If both pa rties, independently, recommend to the Panel Administrator that 18 a particular potential Panel memb er would not be appropriate to serve on the Panel, the Panel 19 Administrator shall remove su ch individual from the poten tial Panel and from the pool, 20 select a new potential Panel from the pool of potential Panel members, and then submit a 21 new potential Panel to EPA and DuPont for co mment. The Panel Administrator shall follow 2234 this approach until it has selected a final Panel. 1 d. The Panel Administrator shall treat all comments received 2 under Sections V.A.1.b and V.A.1.c as confidential. 3 2. The Panel is charged to: 4

a. Review the approved or accep ted protocols that the 5 laboratory used to characte rize the Fluorotelomer Products and Corresponding Polymers 6 for chemical characteristics, compositional anal ysis, oligomeric content, molecular weight 7 distribution, and residual content as discussed in Attachment B of this Biodegradation SEP 8 and determine: 9 i. whether the approved or accepted protocols 10 were sufficiently robust to provide reliable characterization data, and 11 ii. whether the laboratory correctly followed the 12 protocols. 13 b. Review the design and approved or accepted protocol that 14 was used to run each pilot and results for each pilot to provide comments and 15 recommendations for developing a final design a nd protocol for SCAS studies that will be 16 approved by EPA prior to im plementation by the laboratory. 17

c. Compare the pilot results and ch aracterization data of each 18 Fluorotelomer Product to the pilot results and characterization data of its Corresponding 19 Polymer to advise EPA regarding the simila rities and differences of the Corresponding 20 Polymers as compared to the Fluorotelomer Pr oducts, and which, if any, of the Corresponding 21 Polymers should be used in the biodegradation studies. 2235 i. If, based upon such comparison, the Panel can 1 identify one Corresponding Polymer for each Fl uorotelomer Product thatshould be used in 2 the biodegradation studies, th e Panel shall so state, and provide a detailed explanation as to 3 why it is appropriate to use only this one Corresponding Polymer in the biodegradation 4 studies. 5 ii. If, based upon such comp arison, the Panel cannot 6 identify one Corresponding Polymer for each Fluorotelomer Product but can identify two 7 Corresponding Polymers for a particular Fluorotel omer Product, the Panel shall so state, and 8 provide a detailed explanation as to why it is appropriate to use the two Corresponding 9 Polymers in the biodegradation studies. 10 iii. If, based upon such comp arison, the Panel cannot 11 identify two Corresponding Polymers for each Fluorotelomer Product and recommends that 12 all three Corresponding Polymers for a particular Fluorotelom er Product be used in the 13 biodegradation studies, the Panel shall so state, and provide a detailed explanation as to why 14 it is appropriate to use all three Correspondi ng Polymers in the biodegradation studies. 15
iv. If, based upon such comp arison, the Panel cannot 16 identify any Corresponding Polymers for a Fl uorotelomer Product and recommends that no 17 Corresponding Polymer be used in the biodegrada tion studies, the Panel shall so state, and 18 provide a detailed explanation as to why it is not appropriate to use any Corresponding 19 Polymers in the biodegradation studies. 20 v. The Panel shall also advise EPA as to whether 21 the laboratory should run a 14-day pilot test for SCAS on each of the Corresponding 2236 Polymers that it recommends should be used in the biodegradation studies but which were 1 not pilot tested by the laboratory performing the biodegradation work. 2 d. Advise EPA regarding which analytes that were 3 measured for in the pilot tests should also be measured for in the biodegradation studies. 4

e. Evaluate the results of the SCAS studies performed on the 5 Fluorotelomer Products and an y Corresponding Polymers, and advise EPA as to what the 6 results mean, both for the indivi dual substances and for the group of test substances as a 7 whole. 8 f. Provide comment on whethe r 14C labeling or other 9 methods would enhance the char acterization of the test subs tances, measurement of the 10 potential for biodegradation, and/ or the evaluation of the biodeg radation study results. If so, 11 the Panel should describe how, and in what ways, the use of 14C-radiolabeled Lab-scale 12 Synthesized Fluorot elomer Product would increase the us efulness of the results of the 13 characterization and biodegradation studies. 14
3. EPA, after consultation with Du Pont, may submit additional, timely 15 charges to the Panel that relate to, and are consistent with, the purposes of this 16 Biodegradation SEP. 17
4. The Panel Administrator may re quest a clarification from EPA 18 regarding the charges set forth in Section V. A.2, above. Such request must be made in 19 writing. The Panel Administrator will provide DuPont a copy of its written request and 20 EPA will provide DuPont with a copy of its wr itten response to the request, in accordance 21 with Section V.E.8, below. 2237 B. Requirements of Panel Input. The Panel will provide input to EPA on an 1 advisory basis; such input wi ll be provided by way of a summa ry document that reflects the 2 individual opinions of the Panel members. The Panel Administrator may designate fewer 3 than all members of the Panel to particip ate in providing advice on specific charges. 4 Accordingly, at different ti mes during the Peer Consultatio n process, the Panel may be 5 composed of different experts appropriate to th e issue(s), but shall only be composed of the 6 experts that have been selected by the Panel Administrator to serve as members of this Peer 7 Consultation Panel. While cons ensus is not required, an accur ate summary of all opinions 8 expressed by the individual members must be submitted to EPA. The Panel will not operate 9 under a consensus-based process but rather should identify areas of agreement and 10 disagreement, and provide supporting scientif ic rationale. While EPA will consider the 11 advice and recommendations it receives from the Panel, EPA is not bound by such advice or 12 recommendations. 13
C. Qualifications and Requirements for Panel Members 14 1. The Panel must be composed of scientific experts who, collectively, 15 have extensive and broad experience releva nt to such areas as conducting and/or 16 assessing biodegradation testi ng and environmental fate of polymers, and laboratory 17 analysis and characterization of polymers and fluorochemicals. Specific knowledge of 18 fluorotelomer chemistry is desirable. 19
2. Panel members must have sufficient technical expertise to make 20 meaningful contributions to science-based evaluations. 21
3. Examples of the types of expertise that will be needed include, but are 2238 not limited to, conducting biodegradation testin g, environmental fate, polymer chemistry, 1 analytical chemistry under 40 C.F.R. Part 792, and/or fluorotelomer/ fluoropolymer 2 chemistry. 3 D. General Requirements for the Peer Consultation Process 4 1. One Panel will be selected by th e Panel Administrator and shall be 5 composed of at least four (4 ) but no more than eight (8) members collectively meeting the 6 qualifications stated in Section V.C. 7
2. In selecting the Panel, the Panel Administrator shall use conflict of 8 interest guidelines approved by EPA. DuPont shall have an opportunity to review and 9 provide comments to EPA regarding th e conflict of interest guidelines. 10
3. The Panel Administrator shall su bmit information to Administrative 11 Record (AR) 226 to ensure that the public ha s an opportunity to nominate panel members, 12 access to the Panel’s sa nitized final reports, and access to all sanitized laboratory final 13 reports. The Panel Administrator shall not disc lose any information that would be Toxic 14 Substances Control Act Confidential Busi ness Information if submitted to EPA. 15 4. Panel meetings and deliberations will not be open to the public but 16 will be open to DuPont and EPA employees an d/or contractors with Toxic Substances 17 Control Act Confidential Business Information clearance. Such Panel meetings and/or 18 deliberations may also be open to other indi viduals or entities that EPA would like to 19 attend, subject to confidentiality agreemen ts, and prior approval from DuPont. 20
5. If practicable, Panel meetings and deliberations will be held at or near the 21 facilities of the laboratory conducting work re levant to the charge or charges under 2239 consideration at such meetings and/or de liberations so that Panel members can visit the 1 laboratory, as needed. 2 6. EPA and DuPont may submit written comments to the Panel 3 Administrator regarding t echnical documents develope d by the laboratories under 4 consideration by the Pe er Consultation Panel. The Panel Administrator shall not provide 5 such written comments to Panel members in advance of any Panel meetings or 6 deliberations but only provide such comments to the Panel members at the time of the 7 Panel meetings or deliberations so as not to bias the Panel members’ premeeting 8 consideration of any particul ar issue under consideration. 9 E. Selection and Responsibilitie s of the Panel Administrator 10 1. By February 1, 2006, the parties will agree to the Panel Administrator. 11 2. By March 15, 2006, DuPont must provi de EPA with a fi nal draft of the 12 proposed contract that DuPontand the Panel Administrator have negotiated. The contract 13 shall not be executed by DuPont and the Pane l Administrator until EPA has reviewed and 14 either approved or accepted th e contract. The contract sh all provide for appropriate 15 confidentiality provisions. 16
3. Within seven (7) business days from receipt of EPA’s approval (or 17 acceptance) of the proposed contract, DuPont must sign and forward the contract to the 18 Panel Administrator for execution. 19
a. DuPont and the Panel Administrator shall seek to execute 20 the contract within twenty-one (21) days of DuPont’s receipt of EPA’s approval (or 21 acceptance) of the proposed contract. If Du Pont and the Panel Ad ministrator have not 2240 executed the contract within twenty-one (21) days of DuPont’s recei pt of EPA’s approval 1 (or acceptance) of the proposed contract in accordance with Section II.G.2, DuPont must 2 inform EPA of the delay, explain the reason fo r the delay, provide a reasonable estimate as 3 to when the contract will be executed, and exercise its right to an automatic extension 4 provided in Section II.L, above. However, if DuPont believes that, notwithstanding its best 5 efforts, the candidate Panel Administrator will not execute the contract with DuPont, DuPont 6 shall provide notice to EPA of the impasse. EPA reserves the right to contact such candidate 7 Panel Administrator, upon receipt of such no tice from DuPont, to inquire why it has not 8 entered into the contract with DuPont. If DuPont and the candidate Panel Administrator 9 have not entered into a contract within fourteen (14) days after EPA’s inquiry, unless EPA 10 and DuPont agree to a longer time period, then the parties shall fo llow the approach set 11 forth in Section V.E.4, below. 12 b. Within five (5) business days from the date that DuPont 13 and the Panel Administrator execute the cont ract, DuPont must notify EPA that it has 14 entered into the contract w ith the Panel Administrator. 15 4. If no Panel Administrator enters into a contract with DuPont, the 16 Directors of the Office of Civil Enforcemen t and the Office of Pollution Prevention and 17 Toxics shall meet with DuPont to discuss appropriate changes that can be made to this 18 Biodegradation SEP to foster Panel Administrator participation in the performance of this 19 Biodegradation SEP. If the partie s cannot agree to any such appr opriate changes, or if after 20 agreeing to such appropriate changes, no potential Panel Administrators enters into a 21 contract with DuPont, this Biodegradation SEP shall be deemed to have ceased prior to its 2241 completion, in which case, DuPont shall not be subject to Section VII.3 of the CAFO but 1 DuPont shall be subject to Section VII. 1 of the CAFO, and the parties may exercise Section 2 VI of the CAFO even though this Biodegrad ation SEP is not deemed satisfactorily 3 completed. 4
5. Peer Consultation Process Work Plan. Within sixty (60) days of 5 contract execution, the Panel Administrator must submit to EPA a proposed work plan 6 (including all applicable attachment s) that addresses the following: 7

a. The process, schedule, and budget for implementing and 8 administering the Peer Consultation process under this Biodegra dation SEP from the date the 9 Panel Administrator executes the contract wi th DuPont through the date that the Panel 10 Administrator submits to EPA and AR226 the Panel’s final report from the last Panel 11 meeting. 12 b. A description of the process for nominating and selecting 13 the Panel members, in accordance with Section V.A. 1, above, and the rationale to be used in 14 determining how many experts to em panel to address the charges. 15

c. The schedule for the Panel to timely address the 16 charges in Section V.A.2 to ensure th e most efficient use of the Panel. 17
i. The Panel Administrator shall communicate with 18 the laboratory performing the biodegradation tes ting to determine if it would be appropriate 19 to have the Peer Consultation Panel review the results of the first pilot test for SCAS and, 20 once the laboratory has begun the full biodegradati on studies, the results of the SCAS studies 21 for the first grouping of chemical substances identified in Attachment A, i.e., the three 2242 Fluorotelomer Products identifie d as the A group, and any Corresponding Polymers selected 1 for testing, or any subsequent groupings identified in Attach ment A, as appropriate. The 2 Panel Administrator may seek a recommendation from the laboratory with regard to this 3 issue and/or the Panel Administrator may make its own determination after reviewing the 4 data as to whether it is appropriate to convene the Peer Consultation Panel to review such 5 results or to delay the review until all pilot tests and all biodegradation studies are completed. 6 ii. Regardless of how P eer Consultation is handled 7 with regard to reviewing the fi rst pilot test results and biodegr adation study results, all pilot 8 tests and biodegradation studies shall be reviewed by the Peer Consultation Panel. 9 d. The proposed conflict of intere st guidelines that will be 10 used to screen potential Panel members. The Panel Administrator shall send the conflict of 11 interest guidelines to DuPont concurrent withits submission to EPA. DuPont shall have 12 fourteen (14) business days to provide comments to EPA regarding such conflict of interest 13 guidelines. 14

e. The proposed contract for the Panel members, including 15 the proposed honorarium to be paid to each Panel member. 16 f. The proposed confidentially agreements for the Panel 17 members. 18
g. The process that the Panel Administrator will use to draft, 19 on behalf of the Panel, the Panel’s reports . The Panel Administrator must address the 20 following: 21 i. The process and schedule for the Panel 22 Administrator to compile comments from the Panel; and 2343 ii. The process and schedule for the Panel 1 Administrator to submit a draft of the document to the Panel members for their review and 2 comment before such document becomes final. 3 h. The number and timing of the Panel’s meetings to address 4 the charges identified in Section V.A.2. If th e Panel Administrator w ould like to arrange a 5 Panel meeting or deliberation at a laboratory located outside of North America, the Panel 6 Administrator shall seek prior approval from EPA before arranging such meeting. 7 i. A discussion of any other function(s) not expressly stated 8 herein but that are necessary to implement and administer the Peer Consultation process 9 under this Biodegradation SEP. 10
6. Within seven (7) days of receipt of EPA’s approval of the work plan, the 11 Panel Administrator must commence the Peer C onsultation process, as described in the 12 EPA-approved work plan. 13 7. The Panel Administrator is respon sible for arranging Panel meetings 14 and/or deliberations, and acting as facilitator during Panel meetings and/or deliberations; 15 coordinating exchange of information to Pa nel members; submitting all Panel reports to 16 EPA and DuPont, with a copy of any such report and if there is CBI, a sanitized version of 17 the report, submitted to AR 226 within thirty (30) days after submittal of a report to EPA 18 and DuPont; and for carrying out all other functions necessary to implement and 19 administer the Peer Consultation pr ocess under this Biodegradation SEP. 20
8. Information Exchange. When the Panel Administrator provides any 21 information in oral or written form to EP A or DuPont concerning the Peer Consultation 2244 process, the Panel Administrator shall provide such information to the other party in the 1 same form as soon as practicable. The Pane l Administrator is not responsible for sharing 2 information it receives in oral or written form from EPA or DuPont; the party providing such 3 information to the Panel Administrator shall concurrently provide the information in the 4 same form to the other party. However, when the Panel Administrator receives a substantive 5 oral or written communication fr om DuPont or EPA that imp acts the Panel Administrator’s 6 implementation and/or administration of the Pe er Consultation process, it shall notify both 7 parties of the communication and provide a brie f written description of the content of the 8 communication. 9 9. Recommendations, Advice, and Conclusions of the Panel 10

a. Final Panel Reports submitted to the Parties. Within 11 forty-five (45) days of each Panel meeting, the Panel Administrator shall submit a final 12 written report, on behalf of the Panel, to EP A and DuPont, that addresses the charge or 13 charges under consideration at such meeting. 14 b. Final Panel Reports submitted to AR 226. Within thirty 15 (30) days after the Panel Administrator has submitted a final written report to EPA and 16 DuPont, such final written report and a sanitized version of such final written report shall be 17 submitted to AR 226. 18
VI. MISCELLANEOUS 19 A. Eligible SEP Costs 20 1. The cost for providing sufficient qu antities, as described in Sections 21 II.D-E, above, of the Fluorotelomer Products for characterization, biodegradation pilot 2245 tests, and biodegradation studies sh all not be an eligible SEP Cost. 1
2. The cost of preparing sufficient quantit ies, as described in Sections II.D2 E, for characterization of Corresponding Polymers identified for pilot testing in Attachment 3 A, and up to two additional Corresponding Poly mers that the Panel recommends pursuant 4 to charge V.A.2.c, shall not be an eligible SEP Cost. 5 3. The cost of preparing sufficient quantit ies, as described in Sections II.D6 E, for biodegradation pilot tests of the Corre sponding Polymers, as identified on Attachment 7 A, shall not be an eligible SEP cost. 8 4. The cost of preparing sufficient quan tities, as described in Sections II.D9 E, for biodegradation studies of up to two of the Correspondi ng Polymers that the Panel 10 identifies pursuant to charge V.A.2.c, shall not be an eligible SEP cost. 11 B. The title, section headi ngs, and sub-headings used in this Appendix A are 12 intended by the parties to assist in readi ng the document and have no legal meaning or 13 effect. 14
C. Unless otherwise indicated, the word “days” as used in this Appendix refers 15 to calendar days. 16 D. Unless otherwise provided in this Appendix or its Attachments, terms shall have 17 the same meaning as provided in 15 U.S.C §§ 2601 et seq. and 40 C.F.R. Parts 2 and 792. 18 Terms not defined in 15 U.S.C §§ 2601 et seq. and 40 C.F.R. Parts 2 and 792, but that are 19 defined in this Appendix or its Attachments, shall be given the meaning as defined in this 20 Appendix or its Attachments. 21
E. Except as otherwise provided, all co mmunications between the parties, 2246 including DuPont’s third party cont ractors, shall be in writing. 1