SETTLEII+I~NT AGREEMEI'~TT

This Settlement Agreement {"Agreement")is entered into by American Chemistry Council,Inc.("ACC")and the United States Environmental Protection Agency ("EFA") (together, "the Parties"). RECITALS A. 4n May 8,2013,EPA issued a final rule entitled, "Data Requirements for Antimicrobial Pesticides." 78 Fed. Reg..26,93b (May 8, 2013)("Final Rule"). B. On July 3, 2013,ACC filed a petition for review ofthe Final Rule in American Chemistry Counczl, lnc. v. Errvironmental Protection Agency,No. 13-1207 (D.C. Cir.). C. On July 29,2013,the Parties jointly filed a motion to hold the petition for review in abeyance in order to pursue settlement discussions. The motion was granted on July 30, 2~13,and joint status reports subsequently have been filed pursuant to Court order. D. This Agreement resolves all issues related to the Final Rule that ACC raised or could have raised in ACC's petition for review. The Parties have negotiated in good faith and have determined that the settlemen# ofthe petition for review without further litigation and through this Agreement is in the public interest. AGREEMENT Within fouz months ofthis Agreement becoming final pursuant to paragraph 9,EPA shall post a proposed guidance document called the Antimicrobial Pesticide Use Size Index {"USI")on the EPA website and take c4mrnent an the~proposed USI for thirty days. 2. EPA shall include in the proposed USI the following descriptsons:

a Direct Food Use: a use is generally considered to be a direct food use ifan antimicrobial pesticide is intended to he directly applied to food (defined for purposes ofthe Federal Food,Drug,and Cosmetic Act at 21 U.S.C. § 321{ fl) or applied to a material or article for thepurpose oftreating food.

o Indirect Faod Use: a use is generally considered to be an indirect food use ifthe use involves application ofthe antimicrobial pesticide in or on a material or article that comes into cflntact with food and may result in residues in or on food, but the use is no# intended for pesticidal treatment offood.

o Nonfood Use: a use is generally considered to be a nonfood use when #here is a reasonable certainty ofno residues in ar on food,for example because the antiruicrobial pesticide is not expected to come into contact (directly. or indirectly) with food as a result ofits intended use,EPA may elaborate on these descriptions in the proposed USA either by referencing

specif c uses that fall'into each ofthese categories or by otherwise further illustrating what the descriptions mean. 3. EPA s~al~ consider any comments submitted and subsequently post on the EPA website the.USI with any changes that E~'A deems appropriate within six months ofthe end ofthe thirty -day commentperiod. 4. Wixhin two years and six months ofthisAg~eernent becoming final pursuant to paragraph 9,EPA shall propose a correction to the Final Rule that will make the language ofthe Final Rule as it pertains to the 20~ ppb level established in 40 C.F.R. § 158.2230(d) consistent with the U.S:Food and Drug Administration's uw ofthat same level by making clear that the 200 ppb level established in the Final Rule is based on fatal estunated daily dietary intake, and is not based on the amount 4fresidue present on only a single commodity. 5. Within sixty days ofthis Agreement becoming final pursuant to paragraph 9,EPA shall issue an interim guidance document explaining EPA's interpretation ofthe 2QU ppb level established in the~Final Rule. 6. The Parkies may,by written mutual agreement,extend the dates in paragraphs 1, 3,4,and 5 by which actions must be taken to fulfill E~'A's obliga~iflns under this Agreement. 7. If~EPA fulfills the o~tigatior~s described in.pazagraphs 1, 3,4,and 5 by the dates described therein,or as modified pursuant ~o paragraph b,the Parties will file afaint stipulation ofdismissal ofthe petition fax review within 14 calendar days fol3owing EPA's fulfillment ofthe last obligation under this Agreement. 8. IfE~'A fails to perform the obligations described in pazagraphs 1, 3,4,and 5 by the dates described therein, or as modified pursuant to.paragraph 6,ACC ray file a motion to dissolve the stay ofACC's petition for review,and to request that a briefing schedule be set. EPA does not waive or iiinit any defense relating to such litigation. This shad he ACC's only remedy for EPA's failure to fulfill its obligations under this Agreement The ~'arties agree that contempt ofcourtis not an available remedy.under this Agreement. 9. ifEPA performs_ the obligations described %n paragraphs 1, 3,4,and 5 by the dates descr~hed therein, or as modified pursuant to paragraph b,this Agreement will constitute a full and final resolution ofaTi matters related to the.peritian far, review. ACC agrees to release, discharge, and covenant not to assert (by way ofilae commencement ofan action, the joinder of~EPA in an existing action,or in any other fashion} any and ail claims, causes ofaction, suits or demands Qfany kind whatsoever in law or in equity which they may have i~ad, or may now or hereafter have,against EPA relating to the Final Rule. This Agreement becomes final when signed by the Parties.l0. No provision o£this Agreement shall be interpreted as or constitute a commitment or

requirement that the United States or any ofits departments or agencies obligate yr pay funds in contravention ofthe Anti-Deficiency Act,31 U.S.C. § 1341 et seq.,or in .violation ofany other statute, law,ox regulation. In the event that sufficient appropriated funding is not available, ACC's sole and exclusive remedy under this Settlement Agreement is set forth in paragraph 8. Ifa lapse in appropriations occurs within sixty days prior to the deadlines in paragraphs 1, 3,4,and 5 ofthis Settlement Agreement,such• deadlines shall be extended automatically one day for each clay ofthe Lapse in appropriations. Nothing in this paragraph shall preclude EPA from seeking an additional extension through modification ofthis Agreement pursuant to paragraph 6. 11. Nothing in this Agreement shall be construed to limifox modify the discretion accorded to EPA by statute, or~6y generai~principles ofadministrative law. 12. This Agreement shall not constitute an admission or evidence ofany fact, wrongdoing, misconduct,or liability on the part ofthe United States, its officers,or any person affiliated with it. 13. Eaci~ party will bear its own costs oflitigation. 14. This Agreement is tlae entire agreement between ACC~and EPA for the issues involved in this case. All prior~conversatians, meetings,discussions, drafts and writings:ofany kind regarding issues involved in this case are specifically superseded by this Agreement. 15. It is hereby expressly understood end agreed that this Agreement was jointlq drafted by ACC and EPA. Accordingly,the Partieshereby agree that any and all rules of construction to the effect that ambiguity is construed against the drafting Party shall be inapplicable in any dispute concerning the terms, meaning,or interpretation ofthis Agreement. 16. The undersigned counsel for ACC and EPA hereby certify that they are duly authorized to bind t3ieir,clients to the terms ofthis Agreement. 17. The provisions ofthis Agreement shall apply to and be binding on the Parties, their successors and assigns. 18. This Agreement may be signed in counterparts, and such counterpart signatures shall be • given full force and effect. FOR PETITIOi~IER AMERICAN C~-iEMISTRY CtJU'NCIL; INC.:

### Dated: ~ ~~"~ IS 4 K.JAIN Assistan eneral Counsel American Chemistry Council 700 2"`~ Street,NE Washington,DC 20002 (202)Z49-4212 {phone) (202}47$-2538 (fa~c} komal~ain@americanchemis#ry.com

FOR RESP4ND~NT U.S. ENVIRONMENi'AL PROTECTION AGENCY: JOHN C. CRtJDEN Assistant,Attorney General Environment and Natural Resowces Division

.-- ~ Dated:~~ By' EP J. TA'~B RT Environmental D~fense Section Environment and Natwal Resources Division LT.S. Department ofJustice P.O.BOX 7b11 Washington,DC 20044 .(202)514-2617 Rax:(202} 514-8$65 Stephanie.

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