1. SIA in US Legislative Update Shanghai, China
5/24/ :36 PM
SIA in US
Legislative Update
Shanghai, China
February 21-23, 2011
Reed Content
GLOBALFOUNDRIES
Talking Points

2. Agenda: SIA in US Legislative Update
5/24/ :36 PM
Agenda: SIA in US Legislative Update
US Climate Change Developments
EPA GHG Reporting Rule
EPA “Tailoring Rule”
EPA TSCA Reform Update
CA “Green Chemistry”
SIA Legislative Update, WSC ESH TF, Shanghai

3. Climate Change Regulatory Developments
Tailoring Rule (Final)
Most fabs become “major sources” for GHGs – requires Federal (Title V) operating permit
Effective January 1, 2011 for facilities that are already Clean Air Act “major sources” for other pollutants (like VOCs)
Effective July 1, 2011 for most SIA facilities that currently “minor sources” with state-level air permits
Significant modifications/expansions trigger PSD (Prevention of Significant Deterioration) permitting prior to the change – up to 18 month delay
Tailoring Rule Advocacy
SIA is working with EPA to develop guidance for States to administer rules for our industry (short term)
SIA also working with EPA to explore alternative regulatory scenarios for our industry “work” within the legal framework of the Clean Air Act (longer term – requires new rulemaking)
SIA Legislative Update, WSC ESH TF, Shanghai

4. Climate Change Regulatory Developments
Mandatory Reporting Rule (Final) published December 1, 2010
Effective January 1, 2011 for all semiconductor facilities - Subpart I (semiconductor/electronics industry)
F-GHGs and combustion emissions included
Extremely costly and technically infeasible
Requires extensive “recipe-specific” emissions testing for all non-”similar” etch processes
Reporting Rule Advocacy
SIA filed Petition for Reconsideration and Petition for Judicial Review (legal challenge) on January 31, 2011
SIA working with EPA to seek modifications to the Rule’s requirements
Deferral of Reporting of Confidential Business Information (CBI)
3-year delay for reporting certain data has been proposed
Delay helpful, concerns not solved unless requirements are changed
SIA Legislative Update, WSC ESH TF, Shanghai

5. TSCA (Toxic Substances and Control Act) Legislation:
In 2010, the US House and US Senate proposed revisions to TSCA law
The November 2010 elections increased the proportion of Republicans in Congress. They would like to reduce EPA influence, particularly with regard to new regulations that could negatively impact jobs or the economy.
It is highly unlikely that TSCA will be revised in 2011, unless the US Chemical industry pushes for it.
Some US chemical companies and associations have been making strong statements in favor of revising TSCA. In theory, regulations passed in the current Congress would be more favorable to industry.
In Feb 2011, Senator Lautenberg (D, NJ) held a hearing on TSCA. US chemical industry and NGO’s voiced support for TSCA revision
It’s likely that new TSCA bills will be proposed over the next year
It’s very unlikely that bills will pass, unless they are crafted in a way that achieves progressive legislation without impacting the economy
SIA Legislative Update, WSC ESH TF, Shanghai

6. Potential TSCA Actions Under Current EPA Authority
EPA continues to seek a tightening of laws, and is reported to be contemplating several chemical management actions:
Increasing the level of information that must be provided to comply with chemical import certification requirements
Regulating “nanomaterials” under TSCA:
Nano-scale versions of existing material would likely be classified as a “significant new use”, with associated testing requirements.
It is not clear how TSCA definitions will address nano-scale features in integrated circuits. Based upon a previous issue with a proposed CA definition, EPA’s definition of nano is being watched closely by SIA.
New regulations for brominated fire retardants and plasticizers (like BPA), that would include their presence in articles - a new policy direction.
IUR (Inventory Update Rule) revisions which would reduce reporting thresholds and add new requirements.
Limitations to Confidential Business Information (CBI) claims
Due to Congressional efforts to limit EPA regulations that could negatively impact jobs and the economy; it’s not clear how these efforts will progress.
SIA Legislative Update, WSC ESH TF, Shanghai

7. SIA Legislative Update, WSC ESH TF, Shanghai
California Safer Consumer Product Alternatives Regulation (“Green Chemistry”)
California is drafting regulations on “chemicals of concern” in consumer products
Electronics will likely be covered by these regulations
The proposed drafts reviewed to date have been extreme (e.g. a definition of “nano” that would have included integrated circuits)
In December, DTSC announced that they would not meet their deadline to have final rules in place by January 2011.
California governor changed at the beginning of the year, and a new administration is in place
Awaiting latest draft to see significance of changes
This regulation will affect product sales in the U.S.
CA law often sets precedents for national and other states’ governments
SIA Legislative Update, WSC ESH TF, Shanghai