Exhibit 1 Revised 12/22/11

1 APPENDIX A 1 TO CONSENT AGREEMENT AND FINAL ORDER 2

FLUOROTELOMER

- BASED PRODUCT BIODEGRADATION TESTING 3 SUPPLEMENTAL ENVIRONMENTAL PROJECT 4 5 I. OVERVIEW OF FLUOROTELOMER

- BASED POLYMER PRODUCT 6 BIODEGRADATION TESTING SUPPLEMENTAL ENVIRONMENTAL 7 PROJECT 8 9 A. This document, Appendix A, describes the Fluorotelomer

- Based Product 10
Biodegradation Testing Supplemental Environmental Project (“Biodegradation SEP”) that 11
Respondent, E. I. du Pont de Nemours and Company (“DuPont”) has agreed to perform pursuant 12
to Section III of the Consent Agreement and Final Order (“CAFO”) in TSCA

- HQ

- 2004

- 0016, 13

et al. , entered into between DuPont and the United States Environmental Protection Agency 14
(“EPA” or “Agency”) (coll ectively, “the parties”). This Appendix describes the SEP activities 15
that DuPont will conduct to the extent that applicable funding allows. 16

B. In compliance with, and in addition to, the requirements of the CAFO, DuPont, 17
shall (1) comply with the requirements of this Appendix and Attachments A

- H, and (2) require 18
any entity that DuPont contracts with to fulfill DuPont’s obligations under this SEP, to comply 19
with the requirements of this Appendix and Attachments A

- H. 20

C. Purpose and Background. The purpose of this Biodegradation SEP is to 21
determine the degradation potential of the nine commercial fluorotelomer

- based products 22

identified in Attachment A to this Appendix (“the Fluorotelomer Products” or “Fluorotelomer 23
Products”) as well as the degradation potential of corresponding synthesized or purified 24
polymers equivalent to the Fluorotelomer Products with respect to the chemical composition 25

that cre ates their fluorotelomer functionality (“Corresponding Polymers”). Eight of the nine 26Exhibit 1 Revised 12/22/11

2 Fluorotelomer Products to be tested under this Biodegradation SEP are fluorotelomer

- based 1
polymers, while the ninth is a fluorotelomer

- based phosphate ester. The Fluorotel omer 2
Products are products that were sold by DuPont prior to the date DuPont signs the Consent 3
Agreement, and that DuPont will provide as the chemical substances to be tested pursuant to 4
this Biodegradation SEP. An understanding of the degradation potentia l of the Fluorotelomer 5
Products will be developed by considering the results of semi

- continuous activated sludge 6
(SCAS) studies. Accordingly, this Biodegradation SEP is designed to provide information on 7
the inherent biodegradation potential of the Fluorot elomer Products and their Corresponding 8
Polymers using SCAS. 9
The modified SCAS test is an inherent biodegradability study in which the test 10
substance is exposed to activated sludge microorganisms in an aerated, aqueous medium with 11
periodic settling of the solids and renewal of the aqueous phase with fresh media and test 12
substance. The laboratory will run the test for twelve (12) weeks and will measure analytes 13
that are indicative of degradation by determining the amount and rate of formation of 14

observe d degradation product(s) in the aqueous, sludge, and gas phases. Performing SCAS 15
on the Purified Fluorotelomer Products and then comparing the results to the same study 16
performed on one or more of their Corresponding Polymers will enable a close look at th e 17
potential aerobic biodegradation of the Fluorotelomer Products. 18

D. Use and Functionality of Fluorotelomer Products. Fluorotelomer products are 19
used widely in a range of commercial applications, including some that are directly released 20

into the enviro nment, such as fire fighting foams, as well as soil, stain, and grease resistant 21
coatings on carpets, textiles, paper, and leather. Fluorotelomer products are aqueous 22
dispersions. They originate from fluorotelomer iodides [F(CF2CF2)n

- I; where n= 3,4,5 23Exhibit 1 Revised 12/22/11

3 comm only] which are commercially made by reacting pentafluoroethyl iodide with 1
tetrafluoroethylene to create even

- number

- carbon polyfluoroalky iodides. Although the 2
telomerization process can be used to produce odd

- number

- carbon raw materials, those are not 3

i ntentionally made or sold by DuPont. 4

Fluorotelomer iodides are functionalized to create a series of fluorotelomer raw 5
materials [including other fluorotelomer iodides [F

- (CF2

- CF2)n

- CH2

- CH2

- I, n = 3,4,5 6
commonly] and fluorotelomer alcohols [F

- (CF2

- CF2)n

- CH2

- CH2

- OH, n = 2,3,4,5 etc.] that are 7
then appended to an organic or inorganic moiety that contains the fluorotelomer as a functional 8
group. As an example, fluorotelomer acrylate monomers [F

- (CF2

- CF2)n

- CH2

- CH2

- O

- C(O)

- 9
CH=CH2, n = 3,4,5 commonly] are copolymer ized with one or more of a group of 10
hydrocarbon monomers to create an acrylic polymer with fluorotelomer functionality. The 11
most common fluorotelomer raw material used in DuPont’s fluorotelomer products is the 12
family of fluorotelomer alcohols. These alcoho ls are generally further transformed into 13
polymeric and non

- polymeric fluorotelomer

- based products. This Biodegradation SEP 14
involves the testing of polymeric and non

- polymeric fluorotelomer products based on these 15
common fluorotelomer intermediates; any re ference in this Biodegradation SEP to DuPont’s 16
commercial Fluorotelomer Products and their Corresponding Polymers is a reference to both 17
the polymeric and non

- polymeric products. 18
DuPont generally manufactures product concentrates as aqueous dispersions of 19
fluorotelomer products that are sold to industrial customers who dilute, formulate, and blend the 20
fluorotelomer products. These customers then either apply these new formulations to finished 21
articles or sell them to other customers who apply them to finish ed articles. In this way, the 22
DuPont commercial Fluorotelomer Products being tested as part of this Biodegradation SEP 23Exhibit 1 Revised 12/22/11

4 are thus analogous to paint concentrates and the finished articles to a cured paint surface. 1
Evaluations of these biodegradation studies carried out on DuPont’s Fluorotelomer Products 2
for the purpose of attempting to assess the biodegradation potential of cured fluorotelomer

3
based polymer products would need to be carefully done given the differences between the 4

cured and uncured fluorotel omer

- based products. Substances made with fluorotelomer 5
functionality should not be referred to as either “perfluorinated” or “fluoropolymers” as these 6

terms describe other materials. 7

E. As part of this Biodegradation SEP, DuPont will: 8

1. Provide sufficient quantities, as described in Sections II.D

- E below, of 9

DuPont’s nine Fluorotelomer Products, listed in Attachment A. 10

2. Prepare the following chemical substances (referred to collectively as 11
“Corresponding Polymers”). 12

a. A purified polymer that is prepared in accordance with this 13
Appendix Attachment H

– Purification Procedure Agreement (PPA) for each of the 14
Fluorotelomer Products listed in Attachment A (“Purified Fluorotelomer Product”). DuPont 15
and EPA have agreed on the procedure(s) that DuPont will use to purify the Fluorotelomer 16
Products to produce the Purified Fluorotelomer Products, taking into consideration the need to 17
optimize various factors, including the appropriate duration of extraction and redispersion 18

process es, the desired purity of the Purified Fluorotelomer Products, the schedule for delivery 19
of the Purified Fluorotelomer Products to the laboratories for characterization, testing and 20
studies, and the overall schedule for completing this Biodegradation SEP. The PPA represents 21
the agreement reached between EPA and DuPont concerning the procedure to be used to 22
produce the Purified Fluorotelomer Products. Reporting on the production of the Purified 23Exhibit 1 Revised 12/22/11

5 Fluorotelomer Products shall be in accordance with the reportin g provisions of the PPA. 1

b. A synthesized fluorotelomer product containing a purified 2
polymer, comparable to the Fluorotelomer Product for which it corresponds, that is prepared in 3
the laboratory using production plant raw materials (“Synthesized Fluorotelom er Product”). 4

c. A synthesized fluorotelomer product containing a purified 5
polymer, comparable to the Purified Fluorotelomer Product for which it corresponds, that is 6
prepared in the laboratory using high purity raw materials (“Lab

- scale Synthesized 7

Fluorote lomer Product”). 8

3. Timing of Test Substance Transfer. 9

a. Within thirty (30) days of entering into a contract with (1) the 10
laboratory performing biodegradation and (2) the laboratory performing characterization, 11
DuPont shall transfer the sufficient quantities, as described in Sections II.D , below, of the nine 12

Fluorotelomer Products to such laboratories. 13

b. Within thirty (30) days of entering into a contract with (1) the 14
laboratory performing biodegradation and (2) the laboratory performing characterization, 15

DuPont shall transfer the sufficient quantities, as described in Sections II.D of the 16
Corresponding Polymers, identified on Attachment A for pilot testing, to such laboratories. 17

c. DuPont shall transfer sufficient quantities, as described in Sections 18

II.D, of the Corresponding Polymers that EPA selects for biodegradation studies to such 19
laboratories to timely commence characterization and the biodegradation studies as required in 20
each laboratory’s EPA

- approved work plan. 21

d. The timing for transfer of test substances to EPA is set forth in 22

Section II.E., below. 23Exhibit 1 Revised 12/22/11

6 4

. Third Party Laboratory Contract: Characterization. Contract with a 1

Third Party Laboratory (“laboratory”) to characterize the Fluorotelomer Products, their 2
Corresponding Polymers identified in Attachment A for pilot testing, and any of their 3
Corresponding Polymers selected by EPA for biodegradation studies according to Attachment B 4
parameters to help inform the results of the biodegradation studies. The characterization o f 5
these Fluorotelomer Products and Corresponding Polymers, discussed in greater detail in 6
Attachment B, will determine, using the most accurate instrumentation and procedures 7
available as of the time of testing, and the best achievable precision, the amoun t of residual 8
monomers and oligomers, other residuals, and the molecular weight distribution of polymeric 9
material in the Fluorotelomer Products and Corresponding Polymers. 10

a. The Characterization Laboratory shall commit to t he following 11

timeline for char acterization if the solvent selected is tetrahydrofuran (THF), for which a 12
validation p rotocol was submitted to EPA in August 2011: 13

1. Report the results of method validation no later than forty

14
five (45) days after the validation protocol submitted to EPA in August 2011 has b een approved 15
by EPA. 16

2. Submit the final characterization protocol no later than five 17
(5) days after the method validation results in subsection 4.a.1. above have been submitted. 18

3. Submit the final characterization report with the Cer tificate 19
of Analysis no later than thirty

- five (35) days after EPA approves the final characterization 20
protocol in subsection 4.a.2. above. 21

b. The Characterization Laboratory shall commit to the following 22

timeline for characterization if the solvent select ed is methyl tert

- butyl ether (MTBE): 23Exhibit 1 Revised 12/22/11

7 1. Revise and submit to EPA the validation characterization 1
protocol no later than three (3) days of EPA deciding MTBE should be used for 2

characterization. 3

2. Report the results of method validation no later than 4

twent y

- one (21) days after EPA approves the validation characterization protocol of 5

subsection 4.b.1. above. 6

3. Submit the final characterization protocol no later than five 7
(5) days after the method validation results in subsection 4.b.2. above have been submi tted. 8

4. Submit the final characterization report with the Certificate 9
of Analysis no later than thirty

- five (35) days after EPA approves the final characterization 10
protocol in subsection 4.b.3. above. 11

5. Third Party Laboratory Contract: Biodegradation. Contract with a 12
Third Party Laboratory (“laboratory”) to: 13

a. Pilot test the Purified Fluorotelomer Products and Corresponding 14
Polymers, as identified in Attachment A, following study guidelines for modified semi

15
continuous activated sludge (SCAS). SCAS pilot testing shall begin by the laboratory no later 16
than January 31, 2010. 17

b. Submit the final SCAS analytical method development plan by 18
January 20, 2012. 19

c. Submit the final SCAS analytical validation protocol no later than 20
thirty (30) days after EPA a pproval of the results from implementation of the EPA

- approved 21
SCAS analytical method development plan of subsection 5.b. above. Within thirty (3 0) days 22

after approval of the results from implementation of the EPA

- approved SCAS analytical 23Exhibit 1 Revised 12/22/11

8 validation proto col
, the Biodegradation Laboratory shall measure analytes from two (2) 1
replicate trial run time zero samples from each of three (3) separate test substance dosed SCAS 2
units for a total of six (6) replicate samples for one or both variants as described in S ection 3

II.M., below, and submit results. Subsections 5.d.

- 5.g. below shall be implemented only if the 4
EPA approves the trial run results. 5

d. Submit the final SCAS study protocol no later than fourteen (14) 6
days after EPA approval of the trial run results of subsection 5.c. above. 7

e. Submit the SCAS QAPP no later than fourteen (14) days after 8
EPA approval of the final SCAS study protocol of subsection 5.d. above. 9

f. Perform SCAS studies on the Purified Fluorotelomer Products and 10

any Corresponding Polymers sel ected by EPA to be used in the biodegradation studies. 11

g. Subject to section II.M. below, the laboratory will conduct the 12

SCAS studies on the Purified Fluorotelomer Products and any of their Corresponding 13
Polymers in order to investigate the degradation pote ntial of these Fluorotelomer Products to 14
produce perfluorooctanoic acid (PFOA) or other analytes identified in Attachment C, and to 15
determine the potential, if any, for their Corresponding Polymers to degrade to form PFOA or 16
other analytes identified in At tachment C. The SCAS testing shall begin within thirty ( 3 0) 17
days after the EPA approval of the final SCAS QAPP of subsection 5.e. above

. 18

6. Panel Administrator Contract. Contract with an independent third party 19
(“Panel Administrator”) to implement and administer the Peer Consultation process under this 20
Biodegradation SEP. As discussed in greater detail in Section V, a Peer Consultation Panel 21
will be involved in this Biodegradation SEP at specified milestones. 22

F. Applicability of Results. Because this Biodegradation SEP is designed to 23Exhibit 1 Revised 12/22/11

9 examine (1) the inherent biodegradation potential of the Fluorotelomer Products and their 1
Corresponding Polymers and (2) the biodegradation potential and fate of the Fluorotelomer 2

Products and their Corresponding Polymers under aerobic sewage treatment plant simulation 3

conditions, it does not address the biodegradation potential of the Fluorotelomer Products or 4
their Corresponding Polymers in soil, sediments, landfills, or aquatic or marine systems, nor 5
does it address deg radation under anaerobic conditions. Additionally, using the results of this 6
Biodegradation SEP to attempt to assess the biodegradation potential of cured polymers would 7
need to be carefully done given the differences between cured and uncured fluorotelom er

8
based products. 9
Inherent biodegradability tests are designed to assess whether a substance has any 10
potential for biodegradation. According to OECD Guidance on the Use of the Globally 11
Harmonized System for the Classification of Chemicals which are Hazar dous for the Aquatic 12
Environment (April 2001), a positive result in an inherent biodegradation test indicates that the 13
test substance will not persist indefinitely in the environment; however, rapid and complete 14
biodegradation cannot be assumed. A negative result in an inherent biodegradation test does 15

not definitively demonstrate that a chemical will not biodegrade under any conditions, but rather 16

that the chemical will not biodegrade under the conditions of the test. Aerobic sewage 17

treatment simulation te sts are designed to yield information on the behavior of chemicals in 18
aerobic sewage treatment plants. These tests permit the measurement of the rates of loss of the 19

test chemical, formation and identification of degradation products, partitioning of these 20

chemicals to sludge solids, and volatilization under conditions controlled to mimic those found 21

in full

- scale aerobic wastewater treatment systems. The results from these studies are indicative 22

of how the test substance will behave in full

- scale systems

. 23Exhibit 1 Revised 12/22/11

10 II. GENERAL OBLIGATIONS AND REQUIREMENTS 1

A. Total Cost. DuPont must spend no less than five million dollars ($5,000,000) 2

in eligible SEP costs in performing activities under this Biodegradation SEP, but is not required 3

to spend more than five million dollars ($5,000,000) in eligible SEP costs. 4

B. SEP Completion. DuPont shall comply with the deadlines set forth in this 5
Appendix and will use its best efforts to satisfactorily complete this Biodegradation SEP, 6

within the meanin g of Section IV.4 of the CAFO, no later than March 27, 2014 (“SEP 7
Completion Date”). No later than sixty (60) days prior to the SEP Completion Date, if DuPont 8
believes that it will be unable to satisfactorily complete the SEP within such time period, 9

DuPon t shall petition EPA to extend the SEP Completion Date based upon DuPont’s assertion 10
of good cause to extend such date. The Office of Civil Enforcement, in consultation with the 11
Office of Pollution Prevention and Toxics, will review DuPont's petition and m eet with 12
DuPont to discuss its petition. The Office of Civil Enforcement, in consultation with the Office 13

of Pollution Prevention and Toxics, shall determine whether DuPont has demonstrated that 14
there is good cause to extend the SEP Completion Date and, if determining that DuPont has 15
demonstrated good cause, determine how long to extend the SEP Completion Date

. 16

C. Good Laboratory Practices and Study Monitor. For purposes of this 17
Biodegradation SEP, with regard to characterization and biodegradation testin g and studies, 18
DuPont and its contractors shall be subject to, and must comply with, 40 C.F.R. Part 792. Each 19
laboratory conducting research under this Biodegradation SEP shall designate a Study Director 20

in accordance with 40 C.F.R. § 792.33. DuPont shall designate a Study Monitor that will serve 21
as the point of contact for EPA and the laboratories. 22

D. Supply of Test Substances to Laboratories. DuPont shall provide the laboratory 23Exhibit 1 Revised 12/22/11

11 that it contracts with to perform characterization and the laboratory that it contracts with to 1
perform the biodegradation studies, sufficient quantities of the Fluorotelomer Products, 2

identified in Attachment A, and any Corresponding Polymers, to perform all of the tests and 3

studies discussed in this Biodegradation SEP for whic h such laboratory has been contracted to 4
perform. Sufficient quantities of the Corresponding Polymers, identified in Attachment A for 5
pilot testing, must include the quantities necessary to perform characterization, the pilot tests, 6
and biodegradation stud ies, even if such Corresponding Polymers are not selected by EPA to 7
be used in the biodegradation studies. Each Fluorotelomer Product and Purified Fluorotelomer 8

Product that DuPont provides to the laboratory performing characterization must be from the 9

sam e production batch as provided to the laboratory performing the biodegradation studies. 10
Each Synthesized Fluorotelomer Product and Lab

- scale Synthesized Fluorotelomer Product 11
that DuPont provides to the laboratory performing characterization must be from t he same 12
laboratory batch as provided to the laboratory performing biodegradation testing. 13

E. Supply of Test Substances to EPA. EPA shall receive sufficient quantities of the 14

Fluorotelomer Products identified in Attachment A, and Corre sponding Polymers, to replicate 15
the characterization and biodegradation studies (i.e., SCAS tests (including pilots)) performed 16
under this Biodegradation SEP. DuPont shall fulfill this obligation as follows: 17

Sufficient quantities for EPA of the Fluorotelom er Products identified in 18
Attachment A, the nine Synthesized Fluorotelomer Products, and the nine Lab

- scale 19
Synthesized Fluorotelomer Products shall be shipped by DuPont to a laboratory identified by 20
EPA (per SEP A Section II.H.) on or before November 18, 2008 and 21

Sufficient quantities for EPA of the Purified Fluorotelomer Products 22Exhibit 1 Revised 12/22/11

12 resulting from the PPA shall be shipped by DuPont no later than fourteen (14) days after 1
sparging ceases for each such Product or by June 1, 2009, whichever occurs first. Furthe r 2
details on the quantities to be shipped, the specific timing for shipment, and shipment location 3

are set forth in Section II.B.4. of the PPA. 4
All test substances shall be provided to EPA following the chain of custody 5
procedures in Attachment D, except that quart jars acceptable under DOT regulations may be 6
substituted for the 30 mL containers. DuPont shall develop appropriate holding procedures for 7
the test substances to assure the chemical integrity of such substances. These appropriate 8
holding proced ures shall be provided to EPA three (3) days in advance of t he date that DuPont 9
ships the te st substance to the EPA

- identified laboratory. 10

F. Chain of Custody. Any instance in which, pursuant to this Biodegradation SEP, 11
DuPont or a laboratory transfers either Fluorotelomer Products, Corresponding Polymers, or 12
other chemicals to a laboratory or to EPA, DuPont and/or such laboratory(ies) are required to 13

follow the chain of custody procedures in Attachment D of this Appendix. 14

G. EPA Review and Approval (or Acceptance) Process. EPA will review and 15

either approve or, pursuant to Section II.G.3, below, accept all work plans, protocols, contracts, 16

request for proposals/b ids, confidentiality agreements, lists, material modifications, and any 17
other submission other than a final report, progress report, preliminary report, or quarterly 18
report, relating to performance of this Biodegradation SEP. 19

1. In providing comments to DuPon t regarding such documents or 20
submissions, EPA will include justification(s) and/or rationale(s) for the comments. EPA will 21
provide such comments to DuPont within a reasonable amount of time, commensurate with 22
the type and nature of the document or submiss ion being reviewed. 23Exhibit 1 Revised 12/22/11

13 2. All of EPA’s comments, including requested changes, to a document or 1
submission enumerated above must be incorporated by DuPont, and/or its contractors, and 2
resubmitted to EPA for approval. With regard to contracts, request for proposa ls/bids, and 3
confidentiality agreements, if DuPont believes that EPA’s comments do not relate to the 4
performance of the Biodegradation SEP, DuPont shall notify EPA within seven (7) business days 5
of DuPont’s receipt of such comments. In this notification to EPA, DuPont shall explain why it 6
believes that EPA’s comments do not relate to the performance of this Biodegradation SEP and 7
that such comments are not required to be incorporated into the document. EPA shall consider 8
DuPont’s explanation before making a final decision regarding whether such comments relate 9
to the performance of this Biodegradation SEP; provided, however, that EPA will not 10
unreasonably require DuPont to modify or remove from any such contract or agreement any 11
provision that requires the contractor to indemnify DuPont for stipulated penalties that DuPont 12
pays under Section VII.4 of the CAFO as a result of the contractor’s failure to perform work in 13
accordance with a schedule to which the contractor has agreed. 14

3. In limited circumstances, E PA may, in its discretion, after reviewing a 15
proposed contract, proposed confidentiality agreement, or proposed protocol opt to accept such 16
a document without formally approving it. If EPA exercises this option, EPA will notify 17
DuPont that the proposed co ntract or proposed confidentiality agreement has been accepted. 18

H. Submission Procedures and Transfer of Test Substances to EPA. All 19
submissions by DuPont, a laboratory, or the Panel Administrator to EPA shall be submitted via 20

first class mail, return rece ipt requested, or by commercial delivery service with documented 21
delivery, to the person identified in Section V. of the CAFO. Such submissions shall be 22
provided in electronic format on a compact disc (CD) and shall be accompanied by a cover 23Exhibit 1 Revised 12/22/11

14 letter in hard copy that describes the contents of the CD and complies with any other 1
requirements of the CAFO. In addition, as of January 1, 2012, the same submission shall also 2
be submitted to EPA on a CD that is identified as containing documents for posting on the 3

internet on www.regulations.gov in the folder labeled EPA

- HQ

- OPPT

- 2011

- 0991. The 4
submissions for internet posting shall include an electronic version of the hard copy cover 5
letter that accompanied the submission to the person identified in Section V. of the CAFO. 6
EPA will specify, in advance of the transfer of test substanc es addressed in Se ction II.E, above, 7
where to transfer such divided samples. 8

I. Final Reports containing Confiden tial Business Information. All fina l reports 9
provided to EPA containing Confidential Business Information (“CBI”) must also be provided to 10
EPA in a sanitized version within thirty (30) days of submission of the CBI version. Such final 11
reports include final laboratory reports under 40 C.F.R. Part 792, final reports of the Peer 12
Consultation Panel, and SEP Completion Reports submitted pursuant to Section IV of the 13
CAFO and, as of January 1, 2012, sanitized Final Reports shall be submitted for posting by 14

EPA on the internet on www.regulations.gov in the folder labeled EPA

- HQ

- OPPT

- 2011

- 0991. 15
Any claim of CB I must be substantiated pursuant to 40 C.F.R. Part 2, upon submission of the 16
sanitized version. Note that this Section II.I governs over CAFO Section V.9. with respect to 17
the timing for submittal of sanitized final laboratory reports, final Peer Consultati on Panel 18
reports, and the SEP Completion Report. 19

J. Manner in which Testing and Studies shall be Performed. The characterization 20
and biodegradation studies must be performed in the following manner and in compliance with 21

the following Attachments, unless DuPont or its contractor requests, and EPA approves, a 22
change, or if EPA, after consultation with DuPont, determines that a change is appropriate: 23Exhibit 1 Revised 12/22/11

15 1. DuPont shall use one laboratory to characterize the Purified Fluorotelomer 1

Products, one or more Correspo nding Polymers identified in Attachment A for pilot testing, 2
and any Corresponding Polymers that EPA selects for biodegradation studies, in accordance 3

with Attachment B. 4

2. DuPont shall use one laboratory to perform SCAS studies (alternatively 5

referred to herein as the “biodegradation studies”), in accordance with Attachment C. 6

a. This laboratory shall perform the SCAS studies on the 7
Fluorotelomer Products and any Corresponding Polymers that EPA selects for biodegradation 8
studies, following both the sequence , and grouping (to maximize laboratory efficiency, 9
capacity allowing) provided in Attachment A. 10

b. If, based on their submissions in response to the Request for 11
Proposals (“RFP”) and any further information that DuPont or EPA receives, none of the 12

la boratories identified in Attachment G appears to be reasonably capable of, or if no laboratory 13
is willing to contractually commit to, completing all of the biodegradation studies (including 14
pilots) by no later than September 1, 2011 (or such longer time as EPA approves), the parties 15
agree to implement the following approach, in the following order of preference: 16

i. DuPont shall use one laboratory identified in Attachment 17

G to perform the biodegradation studies but not the analytical component of the studies, a nd 18

DuPont shall use the laboratory that DuPont contracts with to perform characterization of the 19
Fluorotelomer Products and any Corresponding Polymers under this Biodegradation SEP, as a 20
subcontractor for the analytical component of the biodegradation stud ies; or 21

ii. DuPont shall propose two laboratories identified in 22
Attachment G to perform the biodegradation studies and shall propose how to divide the 23Exhibit 1 Revised 12/22/11

16 biodegradation work between the two laboratories, subject to EPA approval. 1

3. Pilot Testing 2

a. The laboratory performing the biodegradation studies shall conduct 3
one pilot test for SCAS on each of the Fluorotelomer Products that have been selected for pilot 4
testing as identified in Attachment A, and shall conduct a pilot test for SCAS on each of t he 5
Corresponding Polymers that have been selected for pilot testing as identified in Attachment A, 6
to develop test data that can inform protocol decisions and to establish that these 7
biodegradation studies can produce results that can be analyzed and quant ified with regard to 8
the biodegradation potential of the Fluorotelomer Products and any Corresponding Polymers. 9
The first pilot test shall be for fourteen (14) days. Any subsequent pilot tests shall be 10
conducted for up to fourteen (14) days, with the exa ct number of days to be determined by 11
EPA prior to the start of each pilot test. 12

b. EPA reserves the right, after reviewing the results of the first pilot 13

of the Fluorotelomer Products or first pilots of its Corresponding Polymers, to specify the use of 14

t he Corresponding Polymers for the pilot tests in the remaining groups. 15

c. The Peer Consultation Panel, described in Section V, below, shall 16
review the results of such pilots, including the pilots’ protocol and design, in conjunction with 17

the characterization data. The Panel Administrator shall develop and forward to EPA and 18
DuPont a final Panel report providing: (1) each participating Panel member’s comments and 19
recommendations on appropriate final protocols for the laboratory to use for the biodegradation 20

stu dies and (2) comments and recommendations regarding which of the Corresponding Polymers 21
should be used in the biodegradation studies. EPA will review the Panel report and any 22
comments that DuPont has submitted to EPA pursuant to Section II.K, below. EPA wi ll then 23Exhibit 1 Revised 12/22/11

17 transmit its comments and judgments to DuPont and require DuPont to direct the laboratory to 1
develop a final protocol, within a specified timeframe, to be submitted to EPA for approval. 2
The final protocol that the laboratory develops shall consider the Panel report and EPA’s 3
comments and judgments. The laboratory shall not commence the biodegradation studies until 4
it has received EPA’s approval of the final protocol and EPA’s determination regarding which 5
of the Corresponding Polymers shall be used in the biodegradation studies. 6

K. DuPont Comments. At any time during the performance of this Biodegradation 7
SEP, DuPont may provide comments to EPA regarding the following technical documents: 8
protocols, test methods, analytical methods (and any modif ications of such technical 9
documents), and the Panel report addressing the charge set forth in Section V.A.2.b. To be 10
eligible for consideration by EPA, DuPont must submit such comments to EPA within seven 11
(7) business days of DuPont’s receipt of the techn ical document. EPA reserves the right to 12
directly seek input from the appropriate laboratory regarding DuPont’s comments. The 13
extension of deadlines in Section II.L, below, does not apply to this Section II.K. A request for 14

an extension of this deadline sh all be subject to EPA’s discretion, and granted for good cause 15

shown. 16

L. Extensions of deadlines other than the SEP Completion Date

. 17

1. First Extensions. For an extension of a deadline specified in this 18
Appendix or in a work plan or other submission implem enting this Biodegradation SEP, other 19
than the SEP Completion Date, DuPont shall be entitled to a first extension as a matter of right, 20
provided that DuPont submits a written notice to EPA that it is exercising this provision, no 21

later than one business da y prior to the deadline. 22

a. For deadlines of thirty (30) days or less, DuPont shall 23Exhibit 1 Revised 12/22/11

18 automatically receive an extension equal to the number of days initially provided in this 1
Appendix. 2

b. For deadlines greater than thirty (30) days, DuPont shall 3
automatically receive a 30

- day extension unless DuPont requests, and EPA approves, an 4
extension greater than thirty (30) days, for good cause shown. 5

c. For deadlines that are not stated in terms of number of days after a 6
preceding event but are stated as specific dates, D uPont shall automatically receive a 30

- day 7
extension unless DuPont requests, and EPA approves, an extension greater than thirty (30) days, 8
for good cause shown. 9

2. Second Extension (for Third Party Work only). For an extension of a 10

deadline other than th e SEP Completion Date involving work that DuPont has contracted with 11

a third party to perform, if, after exercising its right to an automatic extension provided in 12

Section II.L.1, above, DuPont requests a second extension of the same deadline, such extensi on 13

shall be granted provided that DuPont’s Study Monitor sent a written notice to the third party 14
no later than five (5) business days before the deadline, and DuPont requests an extension no 15
later than one (1) business day prior to the deadline. In exerc ising this provision, DuPont shall 16
furnish EPA with the written notice that it sent to the third party. 17

a. For deadlines of thirty (30) days or less, DuPont shall receive an 18
extension equal to the number of days initially provided in this Appendix. 19

b. For dead lines greater than thirty (30) days, DuPont shall receive a 20

30

- day extension unless DuPont requests, and EPA approves, an extension greater than thirty 21
(30) days, for good cause shown. 22

3. Additional Extensions. DuPont’s request for an extension other th an the 23Exhibit 1 Revised 12/22/11

19 SEP Completion Date for which there is either: (a) a second request for an extension of a 1
deadline that does not involve work that DuPont has contracted with a third party to perform, 2
or (b) a third request for an extension of a deadline that does i nvolve work that DuPont has 3

contracted with a third party to perform, or (c) subsequent requests for extensions of deadlines 4

addressed in Sections II.L.3.a

- b, such requests are subject to EPA’s discretion, and granted for 5
good cause shown. In granting a re quest for an extension under Section II.L.3, EPA may grant 6
an extension of time different from the amount of time requested by DuPont. 7

4. Delays resulting from EPA Review. If DuPont is delayed in performing 8
a required action prescribed in an EPA

- approved w ork plan and the delay is caused only 9
because of EPA’s review and approval of a submission that DuPont provided to EPA 10
sufficiently in advance of the deadline so as to allow EPA a reasonable amount of time to 11
review and approve the submission, commensurate with the type and nature of the submission, 12
DuPont will be entitled to an extension to perform the required action. The extension shall be 13
equal to the number of days of EPA’s review and approval of the submission and shall be 14

calculated from the date tha t EPA received such submission through the date that EPA 15
transmitted its approval of the submission to DuPont. If, during its review and prior to its 16
approval, EPA requests that DuPont make changes to the submission, in calculating the 17
extension, the parti es shall not include the amount of time for DuPont to make such changes 18
and resubmit the document to EPA for approval. Such time excluded from the extension shall 19
start from the date that EPA transmits the requested changes to DuPont through the date that 20
EPA receives the amended submission, incorporating the requested changes. But, such time 21
excluded from the extension shall not include time during which EPA is still reviewing a 22
portion of the submission for which EPA has also requested changes. If an exte nsion is granted 23Exhibit 1 Revised 12/22/11

20 under this provision, DuPont may still request an extension of the extended deadline under 1

Sections II.L.1

- 3, above. 2

5. To the extent that this Section II.L governs requests for extensions of 3
deadlines under this Biodegradation SEP, it shall supersede any provisions in the CAFO 4
concerning the extension of deadlines. 5

M. Trial Run to Assess Fluorotelomer Based Polymer Residuals Baseline 6
Agreement. Prior to the commencement of any full scale determinative SCAS testing, 7
DuPont shall assess whether the residual levels in a SCAS trial run time zero sample of the 8
polymer test substance reported by the Biodegradation Laboratory substantially agree with th e 9
residual levels of the polymer test substance as reported in the Certificate of Analysis from the 10
Characterization Laboratory. For this section, the following two variants of the test substances 11

shall be used: (1) the Purified Fluorotelomer Product and (2) the Lab

- scale Synthesized 12

Fluorotelomer Product. The chemical characterization conducted by the Characterization 13
Laboratory is designed to identify and quantify the residuals (also referred to as analytes) listed 14
in Attachment C. Knowing that residua l levels can be accurately quantified before full scale 15
SCAS testing begins assures a basis upon which the residuals at the conclusion of SCAS 16
testing can be identified and quantified with accuracy. Although some variation may be 17
anticipated and some resi duals may have less impact on the study results, to assure that the 18
SEP provides quality data, DuPont will proceed with full scale definitive SCAS testing on a 19
given test substance only if the “substantially equivalent residual levels” requirements of eith er 20

section M.1. i or M.1. ii are satisfied. 21

1. “Substantially equivalent residual levels” will be satisfied for the purposes 22
of this SEP by meeting either the requirements of section M.1 .i . to achieve a 95% molar 23Exhibit 1 Revised 12/22/11

21 equivalence or by EPA ’ s approval as desc ribed in M.1. ii

. 1

i

. “Substantial equivalence by meeting a 95% molar equivalence” is 2

achieved where the sums of the molar concentrations of each analyte reported by the 3
Characterization Laboratory for the polymer test samples compared to the sums of the molar 4
concentrations of each analyte reported by the Biodegradation Laboratory for the trial run time 5
zero sample agree with a 95% molar equivalence. The Characterization Laboratory shall 6
measure analytes of interest from six (6) replicate samples of the polymer test substances (i.e., 7

the variants identified above). The Biodegradation Laboratory shall measure analytes from 8
two (2) replicate trial run time zero samples from each of three (3) separate test substance 9

dosed SCAS units for a total of six (6) r eplicate samples for one or both variants. The 10
Biodegradation Laboratory shall also measure "Background" by measuring analytes from two 11
(2) replicate trial run time zero samples from each of three (3) separate SCAS units to which 12

test substance has not be en dosed for a total of six (6) replicate samples. Trial run time zero 13
samples will be collected from all six (6) SCAS units subsequent to the draw and fill procedure 14

after a minimum of two (2) minutes after aeration has started to allow for uniform distr ibution 15

of test substance in the SCAS units. 16

ii

. If agreement with the 95% molar equivalence of section M.1. i . is 17

not achieved, then EPA shall review the data associated with the residual levels to determine 18
whether there is sufficient confidence to beg in the full scale SCAS testing. 19

2. If it is necessary for EPA to review the residual levels from the time zero 20
trial run with the residual levels reported by the Characterization Laboratory, and if EPA 21

determines that the differences between the residual levels determined for the time zero trial 22
run and the residual levels reported by the Characterization Laboratory are too great to allow 23Exhibit 1 Revised 12/22/11

22 conclusions to be drawn on whether biodegradation of the test substance(s) in the definitive 1

SCAS test o ccurs, then full scale SCAS testing shall not be initiated and DuPont shall perform 2

the activities listed in Section VI below. 3

III. SELECTION OF THIRD PARTY LABORATORIES 4

A. Development of Confidentiality Agreement. Within forty

- five (45) days from the 5
date DuPont signs the Consent Agreement, DuPont shall submit to EPA the confidentiality 6
agreement that DuPont intends to use with any laboratory. Within seven (7) business days of 7
receipt of EPA’s approval (or acceptance) of the confidentiality agreement, DuPont must provide 8
the laboratories listed in Attachment G with a confidentiality agreement and request that such 9
confidentiality agreement be signed and returned by a date certain consistent with the deadlines 10
established in this Appendix. 11

B. Development of Request for Proposals. By February 1, 2006, DuPont shall 12
submit to EPA one or more draft Requests for Proposals (RFPs) to be sent to all of the 13
laboratories identified in Attachment G to solicit proposals for (1) characterizing the 14

Fluorotelomer Produc ts and any Corresponding Polymers, and (2) conducting the SCAS 15
studies on the Fluorotelomer Products and any Corresponding Polymers (including pilot 16
testing). 17
The proposed RFPs must at least include the following elements: 18

1. The laboratory’s obligation, if selected, to follow 40 C.F.R. Part 792, and 19
prepare (or subcontract for preparation of) and comply with, a QAPP, provided in Attachment E 20
of this Appendix. 21

2. All existing information that would be reasonably relevant to assis ting 22
the laboratory to develop a firm cost estimate, with pricing, for the work that the laboratory is 23Exhibit 1 Revised 12/22/11

23 solicited to perform, which must include such information as the identity, structure, and 1
compositional analysis of the Fluorotelomer Products. The labor atory’s proposal may be 2
based upon not

- to

- exceed estimates for the proposed work or any other method that provides, 3

to the extent feasible, a firm cost estimate for the work. 4

a. Laboratories receiving the RFP for characterization of the 5

Fluorotelomer Product s and Corresponding Polymers must provide cost estimates for 6
characterizing all of the Fluorotelomer Products and their Corresponding Polymers. 7

b. Laboratories receiving the RFP for the biodegradation work must 8
include cost estimates for conducting 14

- day pi lot tests for SCAS on the Fluorotelomer 9
Products and the Corresponding Polymers, as identified in Attachment A, and for performing 10

SCAS studies on all Fluorotelomer Products and their Corresponding Polymers. 11

3. The laboratory’s cost proposal should include t he identification of any 12
analytical methods that the laboratory anticipates needing to develop in order to perform any of 13
the required analytical work associated with the characterization or biodegradation studies 14
required under this Biodegradation SEP. 15

4. F or the laboratories receiving the RFP for the biodegradation work, 16

DuPont shall provide the guidelines for SCAS, included in Attachment C of this Appendix. 17

5. A requirement that the recipient identify in its proposal a general schedule 18
and budget for complet ion of the proposed work identified in the RFP in accordance with the 19
deadlines and criteria set forth in this Appendix. 20

6. A copy of Section II.L, above, and the terms and conditions 21

identified in Section III.F.2, below. 22

7. Notice that failure to submit a proposal meeting all of the criteria in the 23Exhibit 1 Revised 12/22/11

24 RFP to DuPont within thirty (30) days of the laboratory’s receipt of the RFP may render the 1
laboratory ineligible for selection. 2

C. Within seven (7) days of receipt of the approved RFP, DuPont shall provide the 3

EPA

- approved RFPs to all laboratories listed in Attachment G that have submitted to DuPont a 4
signed confidentiality agreement. If DuPont has not received a signed confidentiality 5
agreement from a laboratory by the date that DuPont is required to provide th e RFP, DuPont 6
shall notify EPA why it cannot send the RFP to such laboratory. EPA reserves the right to 7
contact such laboratory to inquire why it has not returned the confidentiality agreement and, if 8
such laboratory agrees within seven (7) business days o f contact by EPA to sign and submit the 9
confidentiality agreement to DuPont, DuPont shall then provide the RFP to the laboratory. 10

D. Laboratory Eligibility. Within forty

- five (45) days of EPA’s approval of the 11
RFPs, or such longer time as EPA has approved in accordance with Section III.D.2, below, 12

DuPont must receive a firm proposal back from a laboratory receiving an RFP in order for that 13
laboratory to be eligible to perform work under this Biodegradation SEP. 14

1. DuPont shall require the recipients to submit one duplicate copy of its 15
proposal to EPA concurrent with its submission to DuPont. 16

2. If a laboratory that received the RFP does not submit a proposal to DuPont 17
within thirty (30) days of receipt of the RFP, EPA reserves the right to contact such laboratory 18
to inquire why it has not submitted a proposal to DuPont. If the laboratory indicates that it 19

wants to submit a proposal, the laboratory must do so by a date to be specified by EPA, which 20

shall not be longer than fourteen (14) days after contact by EPA, u nless the parties agree to a 21
longer time period. 22

E. Selection of Laboratories. No later than fourteen (14) days after receipt of the 23Exhibit 1 Revised 12/22/11

25 last bid that DuPont received within the applicable period for submission under III.D, DuPont 1
must propose to EPA the labora tory that DuPont would like to use to perform the 2

characterization of the Fluorotelomer Products and Corresponding Polymers, and the laboratory 3

that DuPont would like to use to perform the biodegradation studies of the Fluorotelomer 4
Products and Correspond ing Polymers. 5

1. DuPont must provide EPA with a detailed rationale describing why 6
DuPont has selected such laboratories to perform the work and why it has not selected the 7
other laboratories that submitted a proposal to perform such work. 8

2. DuPont shall co ntract with only one laboratory to perform the modified 9
SCAS studies on the Fluorotelomer Products and Corresponding Polymers. DuPont shall 10
contract with only one laboratory to characterize the Fluorotelomer Products and 11
Corresponding Polymers. 12

3. If, aft er proposal submission, EPA rejects either the laboratory for 13
characterization and/or the laboratory for biodegradation testing, EPA will provide DuPont with 14
a written rationale for the rejection and require DuPont to propose a different laboratory from 15

wh ich DuPont has received a proposal. The parties will continue this process until EPA agrees 16
to DuPont’s laboratory selection. 17

4. If no laboratories submit proposals to DuPont, or if none of the proposals 18
submitted is acceptable to EPA, the Directors of the Office of Civil Enforcement and the 19
Office of Pollution Prevention and Toxics shall meet with DuPont to discuss appropriate 20
changes that can be made to this Biodegradation SEP to foster laboratory participation in the 21
performance of this Biodegradatio n SEP. EPA and DuPont shall first implement the alternative 22
approach set forth in Section II.J.2.b before EPA considers whether to expand the list of 23Exhibit 1 Revised 12/22/11

26 potential laboratories identified in Attachment G to include foreign laboratories. If the parties 1

cannot a gree to any such appropriate changes, or if after agreeing to such appropriate changes, 2

no laboratories submit a proposal, this Biodegradation SEP shall be deemed to have ceased 3
prior to its completion, in which case, DuPont shall not be subject to Section VII.3 of the 4

CAFO but DuPont shall be subject to Section VII.1 of the CAFO, and the parties may exercise 5

Section VI of the CAFO even though this Biodegradation SEP is not deemed satisfactorily 6
completed. 7

F. Laboratory Contract Requirements. Within thirt y (30) days of EPA’s approval 8
of the laboratories under Section III.E, DuPont must provide EPA with a final draft of the 9
proposed contract that DuPont and the two laboratories have negotiated. 10

1. No contract shall be executed by DuPont and a laboratory until EPA has 11
reviewed and either approved or accepted the contract in accordance with Section II.G.2. 12

2. The proposed contract must include the following terms and conditions in 13

addition to the elements discussed in Section III.B, above: 14

a. The laboratory c onsents to inspection, for purposes of this 15
Biodegradation SEP, at any reasonable time, as provided in 40 C.F.R. § 792.15. 16

b. All laboratory personnel must directly answer any questions from 17
EPA pertaining to work the laboratory is performing under this Biod egradation SEP. Any 18
request from EPA for written information from a laboratory pertaining to work it is 19
performing under this Biodegradation SEP will be transmitted through DuPont’s designated 20
Study Monitor. DuPont’s Study Monitor shall notify the laborato ry of EPA’s request for such 21

information within three (3) business days of EPA’s request, and the laboratory shall provide 22
such information to EPA and DuPont within three (3) business days of DuPont’s Study 23Exhibit 1 Revised 12/22/11

27 Monitor’s notice to the laboratory. 1

i. If, based upo n oral or written information so obtained, 2

EPA believes that a minor modification(s) to an approved or accepted test protocol or other 3
analytical method must be made, EPA will inform DuPont of the modification and require 4
DuPont to instruct the laboratory to implement the change immediately and continue running 5
the test. DuPont may submit comments for EPA’s consideration regarding such modification, 6

in accordance with Section II.K, above. 7

ii. If, based upon oral or written information so obtained, 8
EPA believes that a modification to an approved or accepted test protocol or other analytical 9
method must be made that requires the laboratory to stop the test and start again, EPA will 10

inform DuPont of the modification and require DuPont to instruct the laboratory to provide 11

EPA and DuPont with all data generated up to that date and immediately terminate the test and 12

re

- run the test implementing the modification. DuPont may submit comments for EPA’s 13

c onsideration regarding such modification, in accordance with Section II.K, above. 14

c. EPA shall have the exclusive authority to approve all work plans, 15
protocols, and test methods that the study sponsor would otherwise approve under 40 C.F.R. Part 16

792 as w ell as any analytical methods not expressly enumerated in 40 C.F.R. Part 792, and the 17
QAPPs. DuPont may submit comments for EPA’s consideration regarding such technical 18

documents, in accordance with Section II.K, above. 19

d. Material Modifications. Any propo sed material modification that 20
a laboratory or DuPont would like to make that involves work conducted under this 21
Biodegradation SEP must be approved by EPA prior to implementation. For purposes of this 22
Biodegradation SEP, a material modification is an a djustment to the work conducted under this 23Exhibit 1 Revised 12/22/11

28 Biodegradation SEP made in the normal course of implementing such work that would result in a 1
substantive alteration of the biodegradation studies or other activities conducted under this 2
Biodegradation SEP. 3

e. EPA and DuPont shall receive written notification from the 4
laboratory no later than five (5) business days before the laboratory makes any modification 5
that involves work previously approved by EPA under this Biodegradation SEP, except as 6
provided in Section III.F.2.f, below. If, based upon this notification, EPA believes that such 7
modification is material, EPA will orally notify DuPont and the laboratory immediately, and 8
require DuPont to instruct the laboratory to submit such proposed modification to EPA for 9
approval within the timeframe that EPA establishes in the oral notice. DuPont may submit 10
comments for EPA’s consideration regarding such modification, in accordance with Section II. 11

K, above. 12

f. Emergency Modifications. In the event of an emergency, the 13
laboratory may make a modification that involves work previously approved by EPA under 14
this Biodegradation SEP, to address an unforeseen circumstance or occurrence that will have 15
an adverse affect on the test if not immediately implemented. The laboratory shall provide 16
notice to EPA and DuPont within twenty

- four (24) hours of such modification. If, based upon 17
this modification, EPA believes that the laboratory must stop the test and start again or that the 18
laboratory should implement an additional change, EPA will require DuPont to instruct the 19
laboratory to provide EPA and DuPont with all data generated up to that date and either 20
immediately terminate the test and re

- run the test or immediately implement the additional 21
change. DuPont may submit comments fo r EPA’s consideration regarding such modification or 22
additional change, in accordance with Section II.K, above. 23Exhibit 1 Revised 12/22/11

29 g. Progress Reports. Within thirty (30) days of commencing the 1
technical work, and by the first day of each month thereafter until the laborato ry submits its 2
last final report under Section IV.C, below, the laboratory shall provide EPA and DuPont with 3
a progress report that describes the technical work performed, a copy of the raw data generated 4
up to that date, and costs incurred. 5

h. Information E xchange. When the laboratory provides any 6
information in written form to EPA or DuPont concerning the laboratory’s work under this 7
Biodegradation SEP, the laboratory shall provide such information to the other party as soon as 8
practicable. The laboratory i s not responsible for disseminating information that it receives in 9
written form from DuPont; DuPont shall concurrently provide the information to EPA. When 10
the laboratory provides information in oral form to EPA or DuPont concerning the laboratory’s 11

work under this Biodegradation SEP, the laboratory shall communicate such information to the 12
other party as soon as practicable. The laboratory is not responsible for communicating 13
information it receives in oral form from DuPont or EPA; each party shall commun icate such 14
information to the other party. However, when the laboratory receives an oral communication 15
from DuPont or EPA, it shall notify both parties and provide a brief written description of such 16
oral communication. To the extent practicable, the par ties shall jointly communicate orally 17
with the laboratory in light of the laboratory’s obligation to prepare a written notification to the 18
parties when it receives an oral communication, not jointly, from either party. 19

i. The laboratory shall allow Peer C onsultation Panel members to 20
visit the laboratory, as necessary, when the Peer Consultation Panel has a meeting(s) and/or 21
deliberations relevant to the work that the laboratory is performing under this Biodegradation 22

SEP. 23Exhibit 1 Revised 12/22/11

30 G. Contract Execution. Within five (5) business days of receipt of EPA’s 1
approval (or acceptance) of the proposed contract in accordance with Section II.G.2, DuPont 2
must sign and forward the contract to the laboratory for execution. 3

a. DuPont and the laboratory shall seek to execute the contract within thirty 4
(30) days of receipt of EPA’s approval (or acceptance) of the proposed contract. If DuPont 5
and the laboratory have not executed the contract within thirty (30) days, DuPont must, inform 6

EPA of the delay, explain the reason for the de lay, provide a reasonable estimate as to when the 7

contract will be executed, and exercise its right to an automatic extension in Section II.L, 8
above. After exercising its right to an automatic extension in Section II.L, but before a second 9
request for an e xtension under Section II.L, if DuPont believes that, notwithstanding its best 10
efforts, the laboratory will not enter into the contract with DuPont, DuPont shall provide 11
notice to EPA of the impasse. EPA reserves the right to contact such laboratory, upon receipt 12
of such notice from DuPont, to inquire why the laboratory has not entered into the contract 13
with DuPont. If DuPont and the laboratory have not entered into a contract within fourteen 14
(14) days EPA’s inquiry, unless DuPont and EPA agree to a longer time period, then the parties 15
shall follow the approach set forth in Section III.H, below. 16

b. Within five (5) business days from the date that DuPont and the 17
laboratory execute the contract, DuPont must notify EPA that it has entered into the 18

contract with the laboratory. 19

H. If no laboratory enters into a contract with DuPont, the Directors of the Office of 20

Civil Enforcement and the Office of Pollution Prevention and Toxics shall meet with DuPont 21
to discuss appropriate changes that can be made to this Biod egradation SEP to foster laboratory 22
participation in the performance of this Biodegradation SEP. If the parties cannot agree to any 23Exhibit 1 Revised 12/22/11

31 such appropriate changes, or if after agreeing to such appropriate changes, no laboratories enter 1

into a contract with DuPon t, this Biodegradation SEP shall be deemed to have ceased prior to 2

its completion, in which case, DuPont shall not be subject to Section VII.3 of the CAFO but 3

DuPont shall be subject to Section VII.1 of the CAFO, and the parties may exercise Section VI 4

of the CAFO even though this Biodegradation SEP is not deemed satisfactorily completed. 5

I. Commencement of Work. Within thirty (30) days from the date that DuPont and 6

each laboratory execute the contract, the laboratory must commence the work it has agreed to 7
perform under the contract, as described in Section IV, below. 8

IV. T ESTS TO BE PERFORMED ON DUPONT FLUOROTELOMER PRODUCTS 9

AND CORRESPONDING POLYMERS 10

A. Characterization of the Fluorotelomer Products and Corresponding Polymers 11

1. As provided in Section III.I, the laboratory shall commence the work 12

identified in this Section IV.A, within thirty (30) days from the date that DuPont and the 13
laboratory execute the contract to perform work under this Biodegradation SEP. The 14
laboratory s hall commence such work by submitting a work plan to EPA that describes the 15
work the laboratory has been contracted to perform, addressing all requirements for such work 16
under this Biodegradation SEP (including Attachment B), and a general schedule and bud get 17
for completion of the work. Within forty

- five (45) days from the date that DuPont and the 18
laboratory execute the contract to perform work under this Biodegradation SEP, the laboratory 19
shall submit to EPA all relevant technical documents that require EP A’s approval. 20

2. Within fourteen (14) business days of EPA’s approval of the work plan 21
and all relevant technical documents, the laboratory shall begin the implementation of the 22

EPA

- approved work plan. 23Exhibit 1 Revised 12/22/11

32 3. Within fourteen (14) business days of characterizing each Fluorotelomer 1
Product and any Corresponding Polymers, the laboratory shall provide EPA and the Panel 2
Administrator, a Certificate of Analysis, as provided in Attachment F, as well as the 3
protocols and a copy of the raw data. The laboratory shall provi de the QAPP to the Panel 4
Administrator with the first Certificate of Analysis but need not provide the QAPP for the 5
remaining eight Fluorotelomer Products and Corresponding Polymers. 6

B. Biodegradation Studies: SCAS 7

1. As provided in Section III.I, the labor atory shall commence the work 8

identified in this Section IV.B, within thirty (30) days from the date that DuPont and the 9
laboratory execute the contract to perform such work. The laboratory shall commence such 10
work by submitting a work plan to EPA that des cribes the work the laboratory has been 11
contracted to perform, addressing all requirements for such work under this Biodegradation 12
SEP (including Attachment C), and a general schedule and budget for completion of the work. 13
Within ninety (90) days from the date that DuPont and the laboratory execute the contract to 14
perform work under this Biodegradation SEP, the laboratory shall submit to EPA all relevant 15
technical documents that require EPA’s approval. 16

2. Within fourteen (14) business days of EPA’s approval o f the work plan 17
and all relevant technical documents, the laboratory shall begin the implementation of the 18

EPA

- approved work plan. 19

a. The laboratory shall run the SCAS test for twelve (12) weeks. The 20
inoculum source shall be activated sludge mixed liquor from a municipal wastewater treatment 21
plant operating in compliance with its National Pollutant Elimination Discharge System 22
(“NPDES”) permit. Settled domestic sewage from a municipal wastewater treatment plant 23Exhibit 1 Revised 12/22/11

33 operating in compliance with its NPDES permi t shall be used as feed. Daily samples of the 1
aqueous phase, sludge solids, and off gas shall be collected, analyzed, and quantified for the 2
analytes listed in Attachment C of this Biodegradation SEP. If at any time EPA determines, or 3

if DuPont or the labo ratory recommends and EPA determines, that daily sampling is not 4

necessary, EPA will notify DuPont to instruct the laboratory of a change in the sampling 5
schedule and establish a new timeframe for sampling. Analyses shall be conducted using the 6

most accura te instrumentation and procedures available as of the time of testing. All analytical 7
methods shall be approved by EPA prior to the start of the studies. 8

3. The laboratory shall conduct one 14

- day pilot test for SCAS on the first 9

Purified Fluorotelomer Produ ct that has been selected for pilot testing as identified in 10
Attachment A, and shall conduct one pilot test lasting up to 14 days, with the exact time to be 11
determined, for SCAS on other Corresponding Polymers that have been selected for pilot 12
testing as i dentified in Attachment A, to develop test data that can inform protocol decisions 13
and to establish that these biodegradation studies can produce results that can be analyzed and 14
quantified with regard to the biodegradation potential of the Fluorotelomer P roducts and 15
Corresponding Polymers. 16

4. Pilot Preliminary Reports. No later than fourteen (14) days after the 17
laboratory completes each pilot test, the laboratory shall provide EPA, DuPont, and the Panel 18
Administrator with a preliminary report regarding the p ilot test results. In providing the 19
preliminary report, the laboratory shall summarize the pilot test results and provide the QAPP, 20
the protocols, and a copy of the raw data. 21

5. Within fourteen (14) business days after EPA has approved the final 22
design and protocols for the SCAS studies, the laboratory shall begin the biodegradation studies 23Exhibit 1 Revised 12/22/11

34 following the sequence and groupings (capacity allowing) provided in Attachment A. 1

a. EPA reserves the right to omit any analyte identified in 2
Attachment C for purposes of the biodegradation studies. 3

b. Upon consideration of the Panel’s report addressing the charge in 4
Section V.A.2.c, additional characterization data for any purified or synthesized Corresponding 5
Polymers that had not been characterized prior to the Panel’s rep ort, and the amount of 6
remaining eligible SEP dollars, EPA shall determine which of the Corresponding Polymers, if 7
any, shall be used in the biodegradation studies. 8

6. Study Preliminary Reports. Within seven (7) business days of the 9
laboratory completing the biodegradation studies on the first Fluorotelomer Product and any of 10
its Corresponding Polymers (or first group of Fluorotelomer Products and any of their 11
Corresponding Polymers), the laboratory shall submit a preliminary report summarizing the 12
study r esults to EPA, DuPont, and the Panel Administrator for distribution to the Peer 13

Consultation Panel. 14

a. In providing the preliminary report, the laboratory shall also 15
provide the protocols and a copy of the raw data. The laboratory shall only provide the QAPP 16

to the Panel Administrator with the first Fluorotelomer Product and any of its Corresponding 17
Polymers (or first group of Fluorotelomer Products and any of their Corresponding Polymers). 18

b. As the laboratory completes biodegradation studies on each 19

Fluorotel omer Product and Corresponding Polymers (or group of Fluorotelomer Products and 20
Corresponding Polymers), the laboratory shall submit preliminary reports and associated 21

information described in Section I V.B.6.a, above, to EPA, DuPont, and to the Panel 22

Admin istrator for distribution to the Peer Consultation Panel. 23Exhibit 1 Revised 12/22/11

35 C. Reporting Test and Study Results 1

1. Each laboratory shall follow 40 C.F.R. Part 792, subpart J in preparing the 2
final report for the tests that it performs. 3

2. Each laboratory must submit a final report to EPA, DuPont, and the Panel 4
Administrator within thirty (30) days of completing all of the work identified in its contract 5

with DuPont. 6

V. PEER CONSULTATION FOR TESTS PERFORMED ON DUPONT 7

FLUOROTELOMER PRODUCTS AND CORRESPONDING POLYMERS 8

A. Peer Consultation Panel and Charges. As part of this Biodegradation SEP, 9

DuPont shall contract with an independent third party to serve as a Panel Administrator to 10
implement and administer the Peer Consultation process under this Biodegradation SEP. 11

1. The Panel Administrator shall select a Peer Consultation Panel (“Panel”) 12
that will address the charges set forth in Section V.A.2, below. 13

a. The Panel Administrator shall solicit potential Panel member 14
nominations from the public, will allow self

- nomi nation, and may nominate potential Panel 15
members. The parties may submit Panel member nominations to the Panel Administrator. 16

b. After receiving Panel member nominations, the Panel 17
Administrator shall develop a pool of potential Panel members that will be subject to comment 18
by EPA, DuPont, and the public. 19

c. After considering all comments received regarding the Panel 20

member pool, the Panel Administrator shall select a potential Panel and submit the potential 21

Panel to EPA and DuPont for comment. The Panel Administrator has the exclusive authority to 22
select the Panel. If both parties, independently, recommend to the Panel Administrator that a 23Exhibit 1 Revised 12/22/11

36 particular potential Panel member would not be appropriate to serve on the Panel, the Panel 1

Administrator shal l remove such individual from the potential Panel and from the pool, select a 2
new potential Panel from the pool of potential Panel members, and then submit a new potential 3
Panel to EPA and DuPont for comment. The Panel Administrator shall follow this appro ach 4

until it has selected a final Panel. 5

d. The Panel Administrator shall treat all comments received under 6

Sections V.A.1.b and V.A.1.c as confidential. 7

2. The Panel is charged to: 8

a. Review the approved or accepted protocols that the laboratory used 9

to characterize the Fluorotelomer Products and Corresponding Polymers for chemical 10
characteristics, compositional analysis, oligomeric content, molecular weight distribution, and 11
residual content as discussed in Attachment B of this Biodegradation SEP and det ermine: 12

i. whether the approved or accepted protocols were 13
sufficiently robust to provide reliable characterization data, and 14

ii. whether the laboratory correctly followed the protocols. 15

b. Review the design and approved or accepted protocol that was 16

used to run eac h pilot and results for each pilot to provide comments and recommendations for 17
developing a final design and protocol for SCAS studies that will be approved by EPA prior to 18
implementation by the laboratory. 19

c. Compare the pilot results and characterizatio n data of each 20

Fluorotelomer Product to the pilot results and characterization data of its Corresponding Polymer 21
to advise EPA regarding the similarities and differences of the Corresponding Polymers as 22
compared to the Fluorotelomer Products, and which, if any, of the Corresponding Polymers 23Exhibit 1 Revised 12/22/11

37 should be used in the biodegradation studies. 1

i. If, based upon such comparison, the Panel can identify one 2
Corresponding Polymer for each Fluorotelomer Product that should be used in the 3
biodegradation studies, the Panel shall so state, and provide a detailed explanation as to why it is 4
appropriate to use only this one Corresponding Polymer in the biodegradation studies. 5

ii. If, based upon such comparison, the Panel cannot identify 6
one Corresponding Polymer for each Fluorotel omer Product but can identify two 7
Corresponding Polymers for a particular Fluorotelomer 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 comparison, the Panel cannot identify 11
two Corresponding Polymers for each Fluorotelomer Product and recommends that all three 12
Corresponding Polymers for a particular Fluorotelomer Product be used in the biodegradation 13

studies, the Panel shall so state, and provide a detailed explanation as to why it is appropriate to 14
use all three Corresponding Polymers in the biodegradation studies. 15

iv. If, based upon such comparison, the Panel cannot identify 16
any Corresponding Polymers for a Fluorotelomer Product and recommends that no 17
Corresponding Polymer be used in the biodegradation 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. T he Panel shall also advise EPA as to whether the 21
laboratory should run a 14

- day pilot test for SCAS on each of the Corresponding Polymers that 22
it recommends should be used in the biodegradation studies but which were not pilot tested by 23Exhibit 1 Revised 12/22/11

38 the laboratory perf

orming the biodegradation work. 1

d. Advise EPA regarding which analytes that were measured for in 2
the pilot tests should also be measured for in the biodegradation studies. 3

e. Evaluate the results of the SCAS studies performed on the 4

Fluorotelomer Products and an y Corresponding Polymers, and advise EPA as to what the results 5
mean, both for the individual substances and for the group of test substances as a whole. 6

f. Provide comment on whether 14C labeling or other methods would 7

enhance the characterization of the tes t substances, measurement of the potential for 8
biodegradation, and/or the evaluation of the biodegradation study results. If so, the Panel 9
should describe how, and in what ways, the use of 14C

- radiolabeled Lab

- scale Synthesized 10

Fluorotelomer Product would increase the usefulness of the results of the characterization and 11
biodegradation studies. 12

3. EPA, after consultation with DuPont, may submit additional, timely 13
charges to the Panel that relate to, and are consistent with, the purposes of this Biodegradation 14

SEP. 15

4. The Panel Administrator may request a clarification from EPA regarding 16
the charges set forth in Section V.A.2, above. Such request must be made in writing. The Panel 17
Administrator will provide DuPont a copy of its written request and EPA will provid e DuPont 18
with a copy of its written response to the request, in accordance with Section V.E.8, below. 19

B. Requirements of Panel Input. The Panel will provide input to EPA on an 20
advisory basis; such input will be provided by way of a summary document that refl ects the 21
individual opinions of the Panel members. The Panel Administrator may designate fewer than 22
all members of the Panel to participate in providing advice on specific charges. Accordingly, at 23Exhibit 1 Revised 12/22/11

39 different times during the Peer Consultation process, the P anel may be composed of different 1
experts appropriate to the issue(s), but shall only be composed of the experts that have been 2
selected by the Panel Administrator to serve as members of this Peer Consultation Panel. While 3

consensus is not required, an acc urate summary of all opinions expressed by the individual 4
members must be submitted to EPA. The Panel will not operate under a consensus

- based 5
process but rather should identify areas of agreement and disagreement, and provide 6
supporting scientific rationa le. While EPA will consider the advice and recommendations it 7

receives from the Panel, EPA is not bound by such advice or recommendations. 8

C. Qualifications and Requirements for Panel Members 9

1. The Panel must be composed of scientific experts who, collectively, have 10
extensive and broad experience relevant to such areas as conducting and/or assessing 11
biodegradation testing and environmental fate of polymers, and laboratory analysis and 12
characterization of polymers and fluorochemicals. Specific knowle dge of fluorotelomer 13
chemistry is desirable. 14

2. Panel members must have sufficient technical expertise to make 15
meaningful contributions to science

- based evaluations. 16

3. Examples of the types of expertise that will be needed include, but are not 17

limited to, con ducting biodegradation testing, environmental fate, polymer chemistry, 18
analytical chemistry under 40 C.F.R. Part 792, and/or fluorotelomer/ fluoropolymer chemistry. 19

D. General Requirements for the Peer Consultation Process 20

1. One Panel will be selected by the Panel Administrator and shall be 21
composed of at least four (4) but no more than eight (8) members collectively meeting the 22
qualifications stated in Section V.C. 23Exhibit 1 Revised 12/22/11

40 2. In selecting the Panel, the Panel Administrator shall use conflict of interest 1
guidelines approved by EPA. DuPont shall have an opportunity to review and provide 2
comments to EPA regarding the conflict of interest guidelines. 3

3. The Panel Administrator shall submit information to Administrative 4

Record (AR) 226 to ensure that the public has an oppo rtunity to nominate panel members, access 5

to the Panel’s sanitized final reports, and access to all sanitized laboratory final reports. The 6
Panel Administrator shall not disclose any information that would be Toxic Substances Control 7

Act Confidential Busin ess Information if submitted to EPA. 8

4. Panel meetings and deliberations will not be open to the public but will be 9
open to DuPont and EPA employees and/or contractors with Toxic Substances Control Act 10

Confidential Business Information clearance. Such Panel meetings and/or deliberations may 11
also be open to other individuals or entities that EPA would like to attend, subject to 12
confidentiality agreements, and prior approval from DuPont. 13

5. If practicable, Panel meetings and deliberations will be held at or near the 14
facilities of the laboratory conducting work relevant to the charge or charges under consideration 15
at such meetings and/or deliberations so that Panel members can visit the laboratory, as 16

needed. 17

6. EPA and DuPont may submit written comments to the Panel 18
Administrator regarding technical documents developed by the laboratories under 19
consideration by the Peer Consultation Panel. The Panel Administrator shall not provide such 20

written comments to Panel m embers in advance of any Panel meetings or deliberations but 21
only provide such comments to the Panel members at the time of the Panel meetings or 22
deliberations so as not to bias the Panel members’ premeeting consideration of any particular 23Exhibit 1 Revised 12/22/11

41 issue under cons ideration. 1

E. Selection and Responsibilities of the Panel Administrator 2

1. By February 1, 2006, the parties will agree to the Panel Administrator. 3

2. By March 15, 2006, DuPont must provide EPA with a final draft of the 4
proposed contract that DuPont and the Pa nel Administrator have negotiated. The contract shall 5
not be executed by DuPont and the Panel Administrator until EPA has reviewed and either 6
approved or accepted the contract. The contract shall provide for appropriate confidentiality 7
provisions. 8

3. Within seven (7) business days from receipt of EPA’s approval (or 9
acceptance) of the proposed contract, DuPont must sign and forward the contract to the Panel 10

Administrator for execution. 11

a. DuPont and the Panel Administrator shall seek to execute the 12

contract w ithin twenty

- one (21) days of DuPont’s receipt of EPA’s approval (or acceptance) of 13
the proposed contract. If DuPont and the Panel Administrator have not executed the contract 14
within twenty

- one (21) days of DuPont’s receipt of EPA’s approval (or acceptance ) of the 15
proposed contract in accordance with Section II.G.2, DuPont must inform EPA of the delay, 16
explain the reason for the delay, provide a reasonable estimate as to when the contract will be 17
executed, and exercise its right to an automatic extension pr ovided in Section II.L, above. 18

However, if DuPont believes that, notwithstanding its best efforts, the candidate Panel 19

Administrator will not execute the contract with DuPont, DuPont shall provide notice to EPA of 20
the impasse. EPA reserves the right to con tact such candidate Panel Administrator, upon receipt 21

of such notice from DuPont, to inquire why it has not entered into the contract with DuPont. If 22

DuPont and the candidate Panel Administrator have not entered into a contract within fourteen 23Exhibit 1 Revised 12/22/11

42 (14) days af

ter EPA’s inquiry, unless EPA and DuPont agree to a longer time period, then the 1
parties shall follow the approach set forth in Section V.E.4, below. 2

b. Within five (5) business days from the date that DuPont and the 3

Panel Administrator execute the contra ct, DuPont must notify EPA that it has entered into the 4

contract with the Panel Administrator. 5

4. If no Panel Administrator enters into a contract with DuPont, the Directors 6

of the Office of Civil Enforcement and the Office of Pollution Prevention and To xics shall 7
meet with DuPont to discuss appropriate changes that can be made to this Biodegradation SEP 8
to foster Panel Administrator participation in the performance of this Biodegradation SEP. If 9
the parties cannot agree to any such appropriate changes , or if after agreeing to such 10
appropriate changes, no potential Panel Administrators enters into a contract with DuPont, this 11
Biodegradation SEP shall be deemed to have ceased prior to its completion, in which case, 12
DuPont shall not be subject to Section VII.3 of the CAFO but DuPont shall be subject to Section 13
VII.1 of the CAFO, and the parties may exercise Section VI of the CAFO even though this 14
Biodegradation SEP is not deemed satisfactorily completed. 15

5. Peer Consultation Process Work Plan. Within sixt y (60) days of contract 16
execution, the Panel Administrator must submit to EPA a proposed work plan (including all 17
applicable attachments) that addresses the following: 18

a. The process, schedule, and budget for implementing and 19
administering the Peer Consultati on process under this Biodegradation SEP from the date the 20
Panel Administrator executes the contract with DuPont through the date that the Panel 21

Administrator submits to EPA and A R226 (or EPA

- HQ

- OPPT

- 2011

- 0991 at Regulations .Gov 22

if submitted on or after January 1, 2012) th e Panel’s final report from the last Panel meeting. 23Exhibit 1 Revised 12/22/11

43 b. A description of the process for nominating and selecting the Panel 1
members, in accordance with Section V.A. 1, above, and the rationale to be used in determining 2
how many experts to empanel to address the charges. 3

c. The schedule for the Panel to timely address the charges in Section 4

V.A.2 to ensure the most efficient use of the Panel. 5

i

. The Panel Administrator shall communicate with the 6
laboratory performing the b iodegradation testing to determine if it would be appropriate to 7

have the Peer Consultation Panel review the results of the first pilot test for SCAS and, once the 8
laboratory has begun the full biodegradation studies, the results of the SCAS studies for th e 9
first grouping of chemical substances identified in Attachment A, i.e., the three Fluorotelomer 10
Products identified as the A group, and any Corresponding Polymers selected for testing, or 11
any subsequent groupings identified in Attachment A, as appropriat e. The Panel Administrator 12
may seek a recommendation from the laboratory with regard to this issue and/or the Panel 13
Administrator may make its own determination after reviewing the data as to whether it is 14
appropriate to convene the Peer Consultation Panel to review such results or to delay the review 15
until all pilot tests and all biodegradation studies are completed. 16

ii

. Regardless of how Peer Consultation is handled with regard 17
to reviewing the first pilot test results and biodegradation study results, a ll pilot tests and 18
biodegradation studies shall be reviewed by the Peer Consultation Panel. 19

d. The proposed conflict of interest guidelines that will be used to 20
screen potential Panel members. The Panel Administrator shall send the conflict of interest 21
guidel ines to DuPont concurrent with its submission to EPA. DuPont shall have fourteen (14) 22
business days to provide comments to EPA regarding such conflict of interest guidelines. 23Exhibit 1 Revised 12/22/11

44 e. The proposed contract for the Panel members, including the 1
proposed honorarium to be paid to each Panel member. 2

f. The proposed confidentially agreements for the Panel members. 3

g. The process that the Panel Administrator will use to draft, on 4
behalf of the Panel, the Panel’s reports. The Panel Administrator must address the following: 5

i. The pr ocess and schedule for the Panel Administrator to 6
compile comments from the Panel; and 7

ii. The process and schedule for the Panel Administrator to 8

submit a draft of the document to the Panel members for their review and comment before such 9

document becomes fin al. 10

h. The number and timing of the Panel’s meetings to address the 11
charges identified in Section V.A.2. If the Panel Administrator would like to arrange a Panel 12
meeting or deliberation at a laboratory located outside of North America, the Panel 13

Administrator shall seek prior approval from EPA before arranging such meeting. 14

i. A discussion of any other function(s) not expressly stated herein but 15
that are necessary to implement and administer the Peer Consultation process under this 16
Biodegradation SEP. 17

6. Within seven (7) days of receipt of EPA’s approval of the work plan, the 18
Panel Administrator must commence the Peer Consultation process, as described in the EPA

19
approved work plan. 20

7. The Panel Administrator is responsible for arranging Panel meetings 21

and/or deli berations, and acting as facilitator during Panel meetings and/or deliberations; 22
coordinating exchange of information to Panel members; submitting all Panel reports to EPA 23Exhibit 1 Revised 12/22/11

45 and DuPont, with a copy of any such report and if there is CBI, a sanitized version of the 1
report, submitted to AR 226 (if prior to January 1, 2012) or directed to EPA

- HQ

- OPPT

- 2011

- 2
0991 at regulations.gov (if on or after January 1, 2012) within thirty (30) days after submittal 3
of a report to EPA and DuPont; and for carrying out all other functions necessary to implement 4
and administer the Peer Consultation process under this Biodegradation SEP. 5

8. Information Exchange. When the Panel Administrator provides any 6
information in oral or written form to EPA or DuPont concerning the Peer Consul tation 7
process, the Panel Administrator shall provide such information to the other party in the same 8
form as soon as practicable. The Panel Administrator is not responsible for sharing 9

information it receives in oral or written form from EPA or DuPont; the party providing such 10

information to the Panel Administrator shall concurrently provide the information in the same 11
form to the other party. However, when the Panel Administrator receives a substantive oral or 12

written communication from DuPont or EPA th at impacts the Panel Administrator’s 13
implementation and/or administration of the Peer Consultation process, it shall notify both 14
parties of the communication and provide a brief written description of the content of the 15

communication. 16

9. Recomme ndations, Advice, and Conclusions of the Panel 17

a. Final Panel Reports submitted to the Parties. Within forty

- five 18
(45) days of each Panel meeting, the Panel Administrator shall submit a final written report, on 19

behalf of the Panel, to EPA and DuPont, that add resses the charge or charges under 20
consideration at such meeting. 21

b. Final Panel Reports submitted, as of January 1, 2012, for posting 22

to EPA

- HQ

- OPPT

- 2011

- 0991

. Within thirty (30) days after the Panel Administrator has 23Exhibit 1 Revised 12/22/11

46 submitted a final written report to EPA and DuPont, such final written report and a sanitized 1
version of such final written report shall be submitted to the person identified in Section V of 2
the CAFO for posting on Regulations.gov at EPA

- HQ

- OPPT

- 2011

- 0991. 3

VI. ADDITIONAL ACTIVITIES 4

A. If full scale SCAS testing is not initiated because of the “substantial equivalence” 5
provisions of Section II.M. above, then DuPont shall spend up to $1,500,000.00 (one million 6

five hundred thousand dollars), without exceeding the total five million dollar cost o f the SEP, 7
on purchasing approved items referenced in Section VI.B. below, or other items as approved 8
by EPA, for the purpose of assisting others to perform research on whether Fluorotelomer 9
Products degrade to produce PFOA or assisting in the identificati on and quantification of PFOA 10

in humans and/or the environment. These items shall be donated to universities, state, or local 11

laboratories

. The EPA, in its unreviewable discretion, must approve each item and recipient 12
prior to any purchase in order for it to be considered an eligible SEP cost. A ny equipment 13
purchase and donation will be made in accordance with the EPA 1998 SEP Policy (signed 14
April 10, 1998). If SEP funds are remaining after implementing this provision, refer to Section 15

VII.1 of the CAFO. 16

1. Timing and Manner of Initial Proposal. Within ninety (90) days after 17
EPA provides written notification to DuPont that full scale SCAS testing should not 18
commence, DuPont shall propose in writing by email and via first class mail, return receipt 19
requested, or by commercial delivery service with documented delivery, to the person 20
identified in Section V of the CAFO, what items it intends to purchase, when the items will be 21
bought, the name and address of the recipient of each item and a detailed cost estimat e for the 22

EPA to consider. 23Exhibit 1 Revised 12/22/11

47 2. Timing and Manner of Subsequent Proposals . If EPA rejects an item 1
or recipient in the initial proposal by DuPont, then any subsequent proposals shall be submitted 2
in the same manner and to the same person as set forth above, except that subsequent proposals 3
shall be submitted within forty

- five (45) days of receiving written notice from EPA that a 4
proposed item or recipient has not been approved. 5

3. Timing of Purchase and Delivery of Approved Items . An item shall be 6
approved for purchase to the proposed recipient when DuPont receives written notice of such 7
approval from EPA. DuPont shall order the approved item for shipment to the approved 8
recipient within ninety (90) days of receiving EPA ’ s written approval to make such a purcha se. 9
Delivery of the purchased items shall be set to occur within ninety (90) days after the purchase 10
order is placed, unless EPA approves an extension. 11

B. DuPont may purchase analytical instruments for the purpose of Gas 12
Chromatography/Mass Spectrometry and Liquid Chromatography/Mass Spectrometry. DuPont 13
may also purchase reference standards as described below, including but not limited to 14
substances listed in SEP Appendix A Attachment B Table 1 Characterization of Fluorotelomer 15
Products and Corresponding Po lymers. Additional substances in clude: 10

- 2 Fluorotelomer 16
Acrylate (10

- 2 FTAc), 12

- 2 Fluorotelomer Acrylate (12

- 2 FTAc), 8

- 2 Fluorotelomer Acetate 17

(8

- 2 FTOH Acetate), 10

- 2 Fluorotelomer Acetate (10

- 2 FTOH Acetate), 12

- 2 Fluorotelomer 18

Acetate, 8

- 2 Fluorote lomer Aldehyde (8

- 2 FTAL) and 8

- 2 Unsaturated fluorotelomer Aldehyde 19
(FTUAL), Mass labeled fluorotelomer acids (e.g., M+2 , M+4 PFOA), Mass labeled 20
fluorotelomer alcohols (e.g., M+4 6

- 2, 8

- 2, and 10

- 2 FTOH), Mass labeled fluorotelomer 21
aldehydes (e.g. 8:2 F TAL and FTUAL) 22

C. Upon EPA approval, DuPont may complete the SEP through the purchase of up to 23Exhibit 1 Revised 12/22/11

48 $1,500,000 (one million five hundred thousand dollars), without exceeding the total five 1
million dollar cost of the SEP, of the approved items in this section VI.B. if it has completed 2

one or more Purified Fluorotelomer Products and one or more of the Lab

- scale Synthesized 3
Fluorotelomer Products through full scale definitive SCAS testing. The EPA shall only 4
approve such a request if it determines that additiona l SCAS testing is not feasible with the 5
remaining budget or that the public interest is best served through the expenditure on the 6
approved items instead of additional activities. Any equipment purchase and donation will be 7

made in accordance with the SEP Policy. If S EP funds are remaining after implementing this 8
provision, refer to Section VII.1 of the CAFO. 9

VII. MISCELLANEOUS 10

A. Eligible SEP Costs 11
1. The cost for providing sufficient quantities, as described in Sections II.D

12

E, above, of the Fluorotelomer Products for characterization, biodegradation pilot tests, and 13
biodegradation studies shall not be an eligible SEP Cost. 14

2. The cost of preparing sufficient quantities, as described in Sections II.D

- E, 15

for characterization of Cor responding Polymers identified for pilot testing in Attachment A, 16
and up to two additional Corresponding Polymers that the Panel recommends pursuant to 17
charge V.A.2.c, shall not be an eligible SEP Cost. 18

3. The cost of preparing sufficient quantities, as de scribed in Sections II.D

- E, 19
for biodegradation pilot tests of the Corresponding Polymers, as identified on Attachment A, 20
shall not be an eligible SEP cost. 21

4. The cost of preparing sufficient quantities, as described in Sections II.D

- E, 22

for biodegradation st udies of up to two of the Corresponding Polymers that the Panel identifies 23Exhibit 1 Revised 12/22/11

49 pursuant to charge V.A.2.c, shall not be an eligible SEP cost. 1

B. The title, section headings, and sub

- headings used in this Appendix A are 2
intended by the parties to assist in reading the document and have no legal meaning or effect. 3

C. Unless otherwise indicated, the word “days” as used in this Appendix refers to 4
calendar days. 5

D. Unless otherwise provided in this Appendix or its Attachments, terms shall have 6
the same meaning as pr ovided in 15 U.S.C §§ 2601 et seq. and 40 C.F.R. Parts 2 and 792. 7

Terms not defined in 15 U.S.C §§ 2601 et seq. and 40 C.F.R. Parts 2 and 792, but that are 8

defined in this Appendix or its Attachments, shall be given the meaning as defined in this 9
Appendix or its Attachments. 10

E. Except as otherwise provided, all communications between the parties, including 11
DuPont’s third party contractors, shall be in writing. 12