SETTLEMENT AGREEMENT

WHREAS, on April 22, 2008, the United States Environmental Protection Agency

("EPA" or the "Agency") published "Lead; Renovation, Repair, and Painting Program; Final

Rule" in the Federal Register, 73 Fed. Reg. 21692 (April 22, 2008) (the "LRR Rule");-

WHREAS, the Sierra Club, the Center for Environmental Health and Linda Kite

(hereinafter "Sierra Club Petitioners") fied a petition for review of the LRR Rule in the Court

of Appeals for the 9th Circuit (Case 08-1193) ("Sierra Club Petition");

WHEREAS, the New York City Coalition to EndLead Poisoning, Northern Manhattan

Improvement Corporation, New York Public Interest Research Group, and Make the Road New

York (hereinafter "New York Petitioners") fied a petition for review of the LRR Rule in the

Court of Appeals for the 2nd Circuit (Case No. 08-1235) ("New York Petition");

WHEREAS, the National Association of Home Builders filed a petition for review of the

LRR Rule in the Court of Appeals for the District of Columbia (Case 08-1258);

WHEREAS, the petitions for review of the LRR Rule were consolidated before the

Court of Appeals for the District of Columbia;

WHEREAS, in order to avoid protracted and costly litigation, the Sierra Club Petitioners,

the New York Petitioners (hereinafter referred to together as "Public Interest Petitioners"), and

EP A wish to implement this Settlement Agreement;

NOW THEREFORE, the Public Interest Petitioners and EPA agree as follows:

GENERAL PROVISIONS

1. The parties to this Settlement Agreement ("Agreement") are the Public Interest

Petitioners and EP A (the "Parties"). Nothing in this Agreement shall be construed to make any

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other person or entity not executing this Agreement a third-part beneficiary to this Agreement.

2. This Agreement applies to, is binding upon, and inures to the benefit of the Public

Interest Petitioners (and their successors, assigns, and designees) and EPA.

3. This Settlement Agreement shall not constitute an admission or evidence of any

fact, wrongdoing, misconduct, or liability on the part of the United States, its officers, or any

person affiiated with it.

4. Within fourteen (14) days after the Effective Date of this Agreement, the Parties

shall notify the collrt of this Agreement and request that the Sierra Club Petition and the New

York Petition be held in abeyance pending completion of, and subject to, the terms of this

Agreement.

5. Any deadline stated herein that falls on a Saturday, a Sunday, or a legal holiday

shall be extended to the next day which is not one of the aforementioned days.

EP A ACTIONS

6. The "ODt-Out ProDosal."

a. On or before October 20,2009, EPA agrees to sign a Notice of Proposed

Rulemaking that would propose to amend the LRR Rule ("Opt-out

Proposal"). EP A agrees that the Opt-out Proposal wil include, at a

minimum, the following elements:

(1) A proposal to remove the provision regarding the applicability of

the work practice requirements currently found at 40 C.F.R.

§ 745.82(c).

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(2) A proposal to require that renovation firms provide owners and

occupants a post-renovation notification that wil include

information regarding the work practices utilized by the renovator

as well as any sampling or testing results.

b. EP A agrees to take final action on the Opt-Out Proposal, which may

include signature of a final rule by the Administrator of EP A, on or before

April 22, 2010.

7. The "Clearance Proposal"

a. On or before April 22,2010, EPA agrees to sign a Notice of Proposed

Rulemaking that would propose to amend the LRR Rule ("Clearance

Proposal"). EP A agrees that the Clearance Proposal wil, at a minium,

include the following elements:

(1) A proposal to require dust wipe sampling on uncarpeted surfaces

in certain circumstances. Specifically, the Clearance Proposal will

include a proposal to require dust wipe sampling in the work area

after: (i) use of a heat gun at temperatures below 1100 degrees; (ii)

removal or replacement ofwindow(s) or door frame(s); (iii)

scraping an area of60 ft2 or greater; and (iv) removal of more than

40 ft2 (or equivalent in a linear foot extrapolation) of trim or

molding.

(2) A request for comment on whether EPA should require clearance

in any or all of the circumstances in which EPA proposes to

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require dust wipe sampling. For purposes of this Agreement,

clearance means demonstrating that dust lead levels on uncarpeted

surfaces in the work area are below those set forth in 40 C.F.R.

745.65(b) and includes an exception or alternative provision for

addressing situations where achieving lead levels below the levels

set forth in 40 C.F.R. 745.65(b) would require expanding the scope

of the renovation job.

(3) A request for comment on whether the proposed threshold (60 ft2)

for dust wipe sampling after scraping should be lowered to 6 ft2

and whether EP A should require clearance.

(4) A request for comment on whether the proposed threshold (40 ft2)

for dust wipe sampling after the removal of trim or molding should

be lowered to less that 40 ft2 and whether EP A should require

clearance.

(5) A request for comment on whether the EP A should require dust

wipe sampling in situations where the final wet disposable

cleaning cloth used for cleaning verification pursuant to 40 CFR

745.85(b)(1) does not match the cleaning verification card.

(6) A proposal to require clearance after: (i) use of machines that

disturb lead-based paint through high speed operation such as

sanding, grinding, power planing, needle gun, abrasive blasting, or

sandblasting used with HEP A exhaust control; and (ii) demolition

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or removal of plaster over 6 ft2.

(7) A request for comment on whether to require clearance after

renovation activities in rental properties in situations where EP A

proposes to require dust wipe sampling pursuant to Paragraph

7.a.(1) if the renovator has been informed that such activities are

being performed to remedy a violation or comply with an order

(such as an order to correct building code violations) issued by any

local or state governmental authority. In connection with this

request for comment, EP A wil also request comment on whether

the renovator should be obligated to affrmatively ask owners and

occupants of rental property whether the renovation activity is

being performed to comply with an order issued by any local or

state governmental authority and must indicate in the postrenovation notice whether the renovator was informed that the

renovation was performed for such reason.

(8) A request for comment on whether EP A should expand the scope

of any proposed clearance requirement to scenarios beyond what is

proposed.

b. EP A agrees to take final action on the Clearance Proposal, which may

include signature ofa final rule by the Administrator ofEPA, on or before

July 15,2011.

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c. Subject to the following conditions, EPA may in its sole discretion extend

the deadline in Paragraph 7.b. by four months or less:

(1) EP A must provide notice to the Public Interest Petitioners at least

ten (10) days before the deadline, advising the Public Interest

Petitioners ofthe new date by which EP A shall take final action on

the Clearance Proposal, and explaining EPA's basis for invoking

the provisions of this Paragraph.

(2) This procedure may be used multiple times, but in no event may

the deadline set in Paragraph 7.b. be extended by means of this

Paragraph 7.c. by more than a total of four months.

8. Non-residential Buildines.

a. Non-residential Buildines ANR

(1) On or before April 22, 2010, EP A agrees to sign an Advanced

Notice of Proposed Rulemaking ("ANPR") regarding EPA's

intention to:

(a) Propose work practice standards applicable to renovation

activities on the exterior of public buildings constructed

before 1978 and commercial buildings ("Non-residential

Buildings"); and

(b) Evaluate whether renovation activities in the interior of

Non-residential Buildings create lead-based paint hazards

and, if so, propose work practice standards applicable to

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such renovation activities in the interior of Non-residential

Buildings.

b. The "Exterior Proposal"

(1) On or before December 15,2011, EPA agrees to sign a Notice of

Proposed Rulemaking that wil include proposed work practice

standards applicable to renovation activities on the exteriors of

Non-residential Buildings ("Exterior Proposal").

(2) EP A agrees to take final action on the Exterior Proposal, which

may include signature of a final rule by the Administrator of EP A,

on or before July 15,2013.

(3) Subject to the following conditions, EPA may in its sole discretion

extend the deadlines in Paragraphs 8.b.(1) and (2) by four months

or less:

(a) EPA must provide notice to the Public Interest Petitioners

at least ten (10) days before the deadline, advising the

Public Interest Petitioners of the new date by which EPA

shall take the action described in Paragraph 8.b.(1) or

8.b.(2), and explaining EPA's basis for invoking the

provisions of this Paragraph.

(b) This procedure may be used multiple times, but in no event

may the deadline set in either Paragraph 8.b.(1) or 8.b.(2)

be extended by means of this Paragraph 8.b.(3) by more

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(4) Subject to the following conditions, EPA may in its sole discretion

extend the deadlines in Paragraphs 8.c.(2) and (3) by up to two

years, if EP A concludes that additional studies should be

conducted or additional information should be gathered to

complete the Interior Proposal or establish a hazard standard for

the interiors of Non-residential Buildings.

(a) EPA must provide notice to the Public Interest Petitioners

within 60 days of receiving the SAB Report, advising the

Public Interest Petitioners of the new date by which EPA

shall take the action described in Paragraph 8.c.(2) or

8.c.(3) and explaining EPA's basis for invoking the

provisions of this Paragraph.

(b) Thereafter, the new date may be further extended provided

that EP A must provide notice to the Public Interest

Petitioners at least ten (10) days before the deadline,

advising the Public Interest Petitioners of the new date by

which EP A shall take the action described in Paragraph

8.c.(2) or 8.c.(3) and explaining EPA's basis for such

further extension.

(c) The procedure in this Paragraph 8.c.(4) may be used

multiple times, subject to the following conditions:

i) In no event may the date set in Paragraph 8.c.(2) or

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in 8.c.(3) be extended by means of this Paragraph

8.c.(4) by more than a total of two years.

(5) Additionally, subject to the following conditions, EP A may in its

sole discretion extend the deadlines in Paragraphs 8.c.(2) and (3)

by four months or less (even if extended pursuant to Paragraph

8.c.(4)):

(a) EPA must provide notice to the Public Interest Petitioners

at least ten (10) days before the deadline, advising the

Public Interest Petitioners of the new date by which EPA

shall take the action described in Paragraph 8.c.(2) or

8.c.(3) and explaining EPA's basis for invoking the

provisions of this Paragraph.

(b) This procedure may be used multiple times, but in no event

may the deadline set in either Paragraph 8.c.(2) or 8.c.(3)

be extended by means of this Paragraph 8.c.(5) by more

than a total of four months.

MODIFICATION AN REMEDIES

9. In addition to the modification provisions in Paragraphs 7 and 8 above, the parties

may modify any deadline or other term of this agreement in writing.

10. IfEPA fails to take action as set forth in Paragraphs 6 through 8, the Public

Interest Petitioners' sole remedy under this Agreement shall be the right to ask the court to lift

the abeyance and establish a schedule for further proceedings with regard to the Public Interest

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Petitioners' claims concerning the matters identified in Paragraphs 6-8 of this Settlement

Agreement as to which EP A failed to act.

11. The United States does not waive or limit any defense relating to this litigation if

the stay is lifted. The Parties specifically agree that contempt of court is not an available remedy

under this Settlement Agreement.

12. The Public Interest Petitioners' sole remedy concerning any issue relating to any

final action taken pursuant to Paragraphs 6 through 8 is to challenge such final action under

Section 19 ofthe Toxic Substances Control Act ("TSCA"), 15 U.S.c. § 2618. Nothing in this

Settlement Agreement shall be construed to limit any defenses EP A may have to any such

challenge or action.

ATTORNEYS' FEES, DISMISSAL, WAIVER AND SAVINGS PROVISIONS

13. The Parties agree that, pursuant to 15 U.S.C. § 2618(d), Public Interest Petitioners

are entitled to an award of costs of suit (including reasonable attorneys' fees) ("Costs") for work

performed in connection with the litigation through the date of this Settlement Agreement.

Public Interest Petitioners are entitled to such an award in an amount to be determined either by

settlement or by the Court. In the event that the Parties are unable to reach a settlement, Public

Interest Petitioners may fie a motion for Costs with the Court; however, any such motion must

be fied within 180 days ofthis matter being placed in abeyance. Any award of Costs pursuant

to this Paragraph 13, whether by settlement or by the court, shall constitute a full and final

resolution of Public Interest Petitioners' claim for Costs in this matter; provided, however, that if

EP A fails to take action as set forth in Paragraphs 6 through 8 and Public Interest Petitioners

succeed in lifting the abeyance pursuant to Paragraph 10, Public Interest Petitioners may seek to

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recover Costs for additional work performed in any reactivated proceedings.

14. Within 30 days ofEPA's completion of the actions specified in Paragraphs 6-8

above, the Public Interest Petitioners shall dismiss their petitions with prejudice pursuant to Fed.

R. App. Pro. 42.

15. This Settlement Agreement constitutes a full and final resolution of all matters

related to the Public Interest Petitions. Public Interest Petitioners agree to release, discharge, and

covenant not to assert (by way of the commencement of an action, the joinder of EP A in an

existing action or in any other fashion) any and all claims, causes of action, suits or demands of

any kind whatsoever in law or in equity which they may have had, or may now or hereafter have,

against the United States based upon matters related to their Petitions.

16. Nothing in Paragraphs 14 or 15 shall preclude Public Interest Petitioners from

bringing a legal challenge to a final action taken pursuant to Paragraphs 6 through 8 as provided

in Paragraph 12.

17. Nothing in this Settlement Agreement shall be construed to limit or modify the

discretion accorded to EP A by TSCA, or by general principles of administrative law, nor shall it

in any way be deemed to limit EPA's discretion in adopting any final rule.

18. Nothing in this Settlement Agreement shall be construed to limit or modify EPA's

discretion to alter, amend or revise any regulations, guidance, or interpretation EP A may issue in

accordance with or on matters related to this Settlement Agreement from time to time or to

promulgate or issue superseding regulations, guidance, or interpretations, or to limit any right

that Public Interest Petitioners may have to seek judicial review in a subsequent case of any such

action by EP A.

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19. - No provision of this Settlement Agreement shall be interpreted as or constitute a

commitment or requirement that EPA obligate or pay funds in contravention of the AntiDeficiency Act, 31 U.S.c. § 1341, or take actions in contravention of the Administrative

Procedure Act, 5 U.S.c. §§ 551-559, 701-706, TSCA, or any other law or regulation, either

substantive or proceduraL.

20. The possibility exists that circumstances outside the reasonable control ofEPA

could delay compliance with the schedule established in Paragraphs 6 through 8. Such situations

include, but are not limited to, a government shut-down such as occurred in 1995 and 1996, or

catastrophic environmental events requiring immediate and/or time-consuming response by

EPA. Should a delay occur due to such circumstances, any resulting failure to meet the

timetables set forth herein shall not constitute a failure to comply with the terms ofthis

Settlement Agreement, and any deadlines shall be extended one day for each day of the delay.

EPA wil provide the Public Interest Petitioners with notice as soon as is reasonably possible

under the circumstances in the event that EPA invokes this term of the Settlement Agreement

and will provide Public Interest Petitioners with an explanation of EPA's basis for invoking the

provisions of this Paragraph. The provisions of this Paragraph shall not limit Public Interest

Petitioners' right to petition the Court to lift the stay pursuant to Paragraph 10, except that the

court may take any delays described by this Paragraph into account in determining whether the

conditions for lifting the stay have been met.

NOTICE

21. Any notices required or provided for by this Agreement shall be in writing, and

shall be deemed effective (i) upon receipt if sent by U.S. Post or (ii) upon the date sent if sent by

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overnight delivery, facsimile, or emaiI. In addition, to be effective, any such notice must be sent

to the following:

For Public Interest Petitioners:

Thomas Neltner

1701 Tilton Dr.

Silver Spring, MD 20902

Telephone number: 317-442-3973

Fax number: 866-234-8505

email: neltner(ßikecoalition.org

Matthew Chachère

Northern Manhattan Improvement Corporation Legal Services

76 Wadsworth Avenue

New York, NY 10033

Telephone number: 212-822-8300

Fax number: 212-740-9645

email: matthewchachere(ßnmic.org

For Defendants:

Andrew Simons, Attorney,

Pesticides and Toxic Substances Law Offce

Offce of General Counsel

U.S. Environmental Protection Agency

1200 Pennsylvania Ave., NW.

MC- ARN 2333A

Washington, D.C. 20460

Telephone: (202) 564-3649

Fax number: 202-564-5442

email: simons.andrew(gepa. gov

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Angeline Purdy

Environmental Defense Section

Environment and Natural Resources Division

United States Department of Justice

P.O. Box 23986

Washington, D.C. 20026-3986

Telephone: (202) 514-0996

Attn: DJ # 90-5-2-4-16726

Fax number: (202) 514-8865

Email: Angeline.purdy(ßusdoi.gov

or such other person as either part may subsequently identify in writing to the other party.

MISCELLANEOUS

22. By signature below, the Public Interest Petitioners and EP A consent to the fiing

of this Settlement Agreement in the D.C. Circuit. Each undersigned representative of the Parties

to this Settlement Agreement certifies that he or she is fully authorized by the Part to enter into

and execute the terms and conditions of this Settlement Agreement, and to legally bind such

Part to this Settlement Agreement.

23. The various terms, paragraphs, and sections contained herein shall be deemed

separable and severable. If any provision of this Settlement Agreement is deemed invalid or

unenforceable, the balance ofthe Settlement Agreement shall remain in full force and effect.

24. This Settlement Agreement is the entire agreement between the Public Interest

Petitioners and EP A in this case. All prior conversations, meetings, discussions, drafts and

writings of any kind are specifically superseded by this Settlement Agreement.

25. It is hereby expressly understood and agreed that this Settlement Agreement was

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jointly drafted by the Public Interest Petitioners and EPA. Accordingly, the Parties hereby agree

that any and all rules of construction to the effect that ambiguity is construed against the drafting

Part shall be inapplicable in any dispute concerning the terms, meaning, or interpretation ofthis

Settlement Agreement.

26. This Settlement Agreement may be executed in any number of counterpart

originals, each of which shall be deemed to constitute an original agreement, and all of which

shall constitute one agreement. The execution of one counterpart by any Part shall have the

same force and effect as if that Part had signed all other counterparts.

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For Sierra Club Petitioners:

Date:

Thomas Neltner

1701 Tilton Dr.

Silver Spring, MD 20902

For New York Petitioners

Date:

Matthew Chachère

Northern Manhattan Improvement Corporation Legal

Services

76 Wadsworth Avenue

New York, NY 10033

For Defendant:

Date:

Angeline Purdy, Trial Attorney

Environmental Defense Section

United States Department of Justice

P.O. Box 23986

Washington, DC 20026

202-514-3785

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For Sierra Club Petitioners:

Date: t1hal19

Thomas Neltner

~/I~

1701 Tilton Dr.

Silver Spring, MD 20902

For New York Petitioners

Date:

Matthew Chachère

Northern Manhattan Improvement Corporation Legal

Services

76 Wadsworth Avenue

New York, NY 10033

F or Defendant:

Date:

Angeline Purdy, Trial Attorney

Environmental Defense Section

United States Department of Justice

P.O. Box 23986

Washington, DC 20026

202-514-3785

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For Sierra Club Petitioners:

Date:

Thomas Neltner

1701 Tilton Dr.

Silver Spring, MD 20902

For New York Petitioners

Date: II ~/i;¿td

Matthew Chachère

~.

Noithern Manhattan Improvement Corporati~n Legal

Services

76 Wadsworth Avenue

New York, NY 10033

For Defendant:

Date:

Angeline Purdy, Trial Attorney

Environmental Defense Section

United States Department of Justice

P.O. Box 23986

Washington, DC 20026

202-514-3785

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Date:

Date:

Date:

For Sierra Club Petitioners:

Thomas Neltner

1701 Tilton Dr.

Silver Spring, MD 20902

. For New York Petitioners

Matthew Chachère

Northern Manhattan Improvement Corporation Legal

Services

76 Wadsworth Avenue

New York, NY 10033

~ It-~l 01-

For Defend.arr:

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