1. Lead-Free Law Overview (and what it means to you) Rick Fields Zurn Wilkins

2. One Earth. One Goal. Zurn places the customer first, building value and trust through superior knowledge of the global markets we serve. Our products and services will continue to provide innovative water solutions delivered by exceptional people. 2 Zurn Mission Statement

3. For more than a century Zurn Engineered Water Solutions® has established itself as an innovator and leading manufacturer of highly engineered water product solutions. 3 About Zurn

4. Lead-Free Law Overview This presentation is for informational purposes only and is the interpretation of Zurn Wilkins. It is not intended to be legal advice. For legal advice, ask your legal counsel for interpretation of the law and recommendation for your response.

5. Lead (Pb) Lead is and has been used as an additive in nearly all bronze cast and forged components used in plumbing fittings and valves for centuries First water tap was patented in 1845 Following WWII, lead pipes were phased out in favor of copper because of increased awareness of the dangers of lead poisoning SDWA recognized and defined Lead-Free in 1986

6. Why is Lead Used in Bronze? Machinability – Ductility and elongation properties allows for rapid machining and acts as a lubricant. Pressure tightness – Lead fills the voids in castings to prevent leak paths from inner to outer surface.

7. Regulated Lead Phase-Out Environmental regulations have significantly reduced or eliminated the use of lead in non- battery products, including: – Gasoline (1975 to 1995) – Paints (1978) – Solders (1986) – End-point plumbing devices (1996)

8. Why is Lead an Issue? The Center of Disease Control has indicated that there is no safe threshold for blood lead levels in young children Children: < 6 most at risk – Significant period of brain development – Effects are delay in physical and mental development Adults: kidney damage, reproductive effects, high blood pressure, loss of memory & problems in concentrating * Issue Brief #14, February 2010 Pew Center for The States estimates that $192 to $270 Billion could be saved in social benefits*

9. Backflow Preventer Materials Standard Bronze Alloys AlloyClassificationLead Content C83600Red Brass4.0 - 6.0% C84400Semi-Red Brass6.0 - 8.0% Lead-Free Bronze Alloys AlloyClassificationLead Content C87000 SeriesCopper-Silicone≤ 0.20% C89000 Series Copper-Bismuth (Envirobrass & Federalloy) ≤ 0.25% Lead-Free Alternative Materials Engineered Plastic Stainless Steel

10. Issues With Lead-Free Bronze Performance – Greater tendency for stress cracking Rockwell Hardness Scale – No real track record concerning long term performance Cost Averages 30-40% higher than Standard Bronze – Foundry process requires dedicated equipment – Machine process requires longer cycle times

11. AB 1953 Legislation known as Assembly Bill 1953 Became law as revision to California Health and Safety Code Section 116875 (HSC § 116875) Went into effect January 1, 2010 Changes the definition of “Lead-Free” from 8% (SDWA) lead content by weight to less than 0.25% lead weighted average Health and Safety Code § 116875 Applies to any pipe, fitting or plumbing fixture intended to dispense water for human consumption through cooking or drinking Cannot plate, coat, treat or wash the material to comply – analysis is on the base metal (per DTSC protocol) Excludes Backflow preventers which protect/separate potable water systems from non-potable services such as irrigation, industrial and laboratory use California Lead-Free Law

12. California HSC § 116875 Measurement DTSC Test Protocol

13. Vermont – 2010 Maryland – 2012 Louisiana – 2013 Other State Lead Free Laws

14. NSF Standard 61 Voluntary performance standard Products (such as backflow preventers) are tested and certified (rather than alloys) Limits the amount of lead and other substances that can leach from a particular product Product exposed for 16 days to specially formulated water Maximum lead leach limit – 5ppb (normalized to 1 liter) – Section 9 – End Point Devices (Faucets) – Section 8 – In-Line Devices (Backflow)

15. NSF 61 Annex G Added to NSF 61 Established to meet.25% weighted average lead content (DTSC test protocol) Products must first comply with NSF 61, then certified to Annex G

16. Allows NSF to compete with groups that only provide compliance to weighted average calculation method Contains evaluation procedure used in NSF 61 Annex G Removes requirement to comply with NSF 61 Allows for certification to California & Vermont Lead-Free law NSF Standard 372

17. Standards NSF/ANSI Standard 372 – It creates a protocol for 3 rd party certifying agencies to use for testing lead content of components and calculation guidelines to demonstrate that products meet the 0.25% weighted average lead content NSF/ANSI Standard 61 Annex G – Products must first comply with NSF 61, then certified to Annex G – Until 2014, Annex G is an addendum to Standard 61 with the same protocol as Standard 372 – Beginning in 2014, meeting Standard 61 means that you are Lead-Free Multiple agencies can certify to these standards, including NSF, IAPMO, UL, and WQA

18. US Federal Lead Law Introduced 9/29/10 by Senator Barbara Boxer (CA) – SB 3874 “Reduction of Lead in Drinking Water Act” Amended section 1417 of Safe Drinking Water Act (SDWA) – Redefined “Lead-Free” from 8% by weight to 0.25% weighted average lead content Passed Senate December 16, 2010 – Passed House of Representatives next day Signed into law January 4, 2011 by President Obama Goes into effect January 4, 2014

19. US Federal Lead Law SDWA does not mandate or provide guidance for certification of Lead-Free products* SDWA mandates State enforcement of Lead- Free regulations through plumbing codes – Lack of State enforcement is punished by reduction of Federal funds – States may or may not require certification as a means of enforcement *Guidance may come from the EPA at some point

20. NSF & US Federal Lead Law Many States already require NSF 61 compliance – NSF 61 requires full compliance with the Federal SDWA – Therefore, after the law takes effect Annex G will have to be absorbed into NSF 61 standard – NSF 372 will remain for products that need Lead- Free certification but are not required to fall under the scope of NSF 61

21. Consistencies between CA and Federal Law No person shall use or introduce into commerce a plumbing fitting or fixture that is not Lead-Free Lead-Free is defined as a weighted average lead content of 0.25% – Lead content calculation is identical – Neither law specifically addresses coatings or lead reduction washes Exempt – Service saddles – Water distribution main gate valves that are 2 inches in diameter and above

22. Exclusive Language – CA & Federal In California Rule – Third Party Certification requirement – Monitoring (enforcement) program by DTSC In Federal Rule – Exempt toilets, bidets, urinals, fill valves, flushometer valves, tub fillers, shower valves

23. Compare CA and Federal Laws California Law Any pipe, plumbing fitting or fixture for: – Manufacturing, industrial, or irrigation purposes Kitchen & bathroom faucets – Or any end-use device intended to convey or dispense water for human consumption through drinking or cooking Any other uses where the water is not intended for human consumption through drinking or cooking Federal law Any pipe, plumbing fitting or fixture including backflow preventers for non-potable services: – Irrigation, industrial manufacturing, and outdoor watering purposes Any other uses where the water is not anticipated to be used for human consumption

24. Grey Areas – Not Addressed Commercial Fire Systems Tempered Water Systems – Thermostatic mixing valves Devices that “touch” the potable water but do not necessarily convey or dispense water for human consumption

25. Concerning Backflow Preventers Both laws are basically the same concerning what is required to be Lead-Free and what is exempt Neither law have a requirement for replacing existing installations with Lead-Free product Neither law specifically discusses repair requirements of existing assemblies that were installed prior to the effective date of the law

26. Concerning Backflow Preventers Backflow performance standards (USC, ASSE, AWWA, IAPMO, CSA, UL, ULC, FM) – Current standards allow for both standard and Lead-Free products Manufacturers must – Develop strategy for Lead-Free products – options: 100% Lead-Free Dual Inventory Standard & Lead-Free based on application – Submit Lead-Free products to approval agencies

27. EPA Interpretation and Enforcement Eliminate Dual-Inventories? – If a product can be used in a potable application, regardless of how it is actually used, it must be Lead- Free Require all parts to be Lead-Free? Define specific product types instead of vague applications? Third-Party Certification? Enforcement left up to States – Consequences of non-compliance is reduction in Federal funds

28. Product Identification To identify products go to www.zurn.com/lead-free www.zurn.com/lead-free – Zurn Wilkins Hang tag states “Lead-Free” Packaging states “Lead-Free” and XL logo Tags/Packaging may show NSF logo Green handles “XL” marking on product – Zurn Commercial Brass Faucets Lead-Free logo on packaging Some products have “XL” marking on product – Zurn PEX “G” marking on fittings (for “Annex G” compliance) – Zurn Specification Drainage “XL” products have logo

29. Channels Converting Early Production and inventory conversion process has started – As of February 2013, Zurn Wilkins Inventory has converted Zurn Wilkins Lead-Free products currently are over 40% of total sales Zurn Lead-Free Leadership Program encourages distribution early conversion

30. Lead-Free Resource Page on Zurn.com

31. Where Do We Go From Here? Start Immediately – Develop and implement your transition plan – Know product categories affected and effective date of January 4, 2014 – Shift purchases to compliant products – Use standard product inventory prior to Jan. 4, 2014 – Educate staff and customers – Know how to identify Lead-Free compliant products Water Suppliers and Engineers – Change specifications to include compliance with NSF 61 and 372 via third-party testing – Confirm manufacturer’s listings with third party agencies – Convert bid documents to Lead-Free compliance Distributors – Set inventory transition plan with every vendor – Expire bids for non-compliance products Contractors – Train on and practice proper installation techniques Inspectors – Communicate with contractors and building owners on Lead-Free law requirements – Be able to identify Lead-Free products and packaging

32. Where Do We Go From Here? Bottom line is we are ALL responsible to: Get the lead out!

33. Thank You