2. Assembly Bill 1879 (2008) - required DTSC to adopt regulations establishing a process to: 1.Identify and prioritize chemicals in consumer products with potential to cause adverse public health or environmental impacts 2.Evaluate safer alternatives Shared vision - a science-based process to drive markets toward safer products DTSCs interpretation – manufacturers should ask: is it necessary? 2

3. 1. Chemicals 2. Products (Product-Chemical Combinations) 3. Alternatives Analysis Candidate Chemicals List Priority Products Alternatives Selection 4. Regulatory Response 3

4. Anyone may petition DTSC to add / remove a chemical, chemical list, or product High priority for petitions by federal and California regulatory programs

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6. Manageable universe of substances for prioritization List of lists approach minimizes surprises and facilitates stakeholder acceptance Sends immediate signals to the marketplace Deters regrettable substitutions 6

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8. Proposed list of 3 product-chemical combinations released March 13, 2014: o Spray Polyurethane Foam (SPF) Systems containing unreacted diisocyanates o Childrens Foam Padded Sleeping Products containing Tris (1,3-dicloro-2-propyl) phosphate (TDCPP) o Paint and Varnish Strippers and Surface Cleaners containing methylene chloride DTSC to propose a 3-year workplan for additional Priority Product listings in October, 2014. 8

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10. External scientific peer review CEQA Economic impact analysis Environmental Policy Council review 10

11. Notice of intent to remove chemical of concern or product (within 6 months of PP listing) Alternatives Assessment Threshold (AAT) - DTSC may include in final PP listing Petition to de-list (chemical or product) 11

12. Required after a Priority Product is listed: To evaluate alternatives to use of COC AA first stage & Preliminary AA Report AA second stage & Final AA Report Alternate Process AA 12

13. A.Product function/ performance B.Useful life C.Materials/resource consumption D.Water conservation E.Water quality impacts F.Air emissions G.Product use, transportation, energy inputs H.Energy efficiency I.Greenhouse gas emissions J.Waste and end-of-life disposal K.Public health impacts: sensitive sub-populations L.Environmental impacts M.Economic impacts 13 DTSC required to issue AA guidance before adopting first list of Priority Products

14. RETAILERS: sell the product in California. -OR- ASSEMBLERS: assemble products containing Priority Product components U.S. IMPORTER: imports the product into California. MANUFACTURER: makes the product or controls the manufacturing process, or has the capacity to specify the chemicals in the product. 3 2 1 14

15. AA final reports posted - allow for redaction of trade secrets Public comment period for final AA Report DTSC will review comments to determine which warrant a response from manufacturer 15

16. No action Additional information to DTSC Additional information to consumer Additional safety measures Use Restrictions/Prohibitions on Sales End-of-life product stewardship R&D funding 16

17. Initial Candidate Chemicals - September 26, 2013 First proposed Priority Products – March 13, 2014 Adoption of first priority products – Q2-Q3 2015 PP notification due – Q3-Q4 2015 Preliminary AA report due – Q1-Q2 2016 Final AA report due – Q1-Q2 2017 Regulatory response - unknown 17

18. Objective selection of Priority Products PP Rulemaking – APA, scientific peer review, economic analysis and EPC review Lawsuits More PRA requests Petitions to add/remove CCs and PPs Filling data gaps - especially product/market data Managing data and trade secret information DTSC resources 18