1. Pactiv Corporation Trash Bag Law Exemption Request September 13, 2004

2. Trash Bag Law Requirements Manufacturers of regulated bags must certify annually to CIWMB one of the following: regulated bags were manufactured with 10% or more PCM 30% PCM in all plastic products not regulated under PCM content laws demonstrated insufficient quality/quantity of PCM to satisfy the requirements

3. Equipment Upgrades Sale of institutional liners and film businesses 2000/2001 Recognized need for process changes to incorporate more PCR Capital approved for equipment upgrades $3.6 million expenditure

4. Specifications Revised specifications for nine parameters by specifying –Test to be conducted, e.g., melt index –Test method and conditions, e.g., ASTM D1238, Condition E –Acceptable targets, e.g., 0.50-2.5 LLDPE –Typical test frequency, e.g., every 5th box –Property Range, e.g., +/- 15% within lots Documentation report revised Unacceptable PCR communicated to suppliers in attempt to improve incoming waste stream Worked with Professor Joe Green to establish quality assurance program for PCR

5. PCR Suppliers Actively searching for suppliers, within California and outside the state Clarified specifications Long-term contracts established, but no PCR readily available Communications enhanced

6. Communications Revised process to notify suppliers if PCR does not meet quality requirements Trained plant employees on need to document above process

7. Status of Exemptions Requested