DuPont 2014 Annual Report Download - page 43

Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
42
In 2010, the U.S. Environmental Protection Agency (EPA) launched a phased-in scheme to regulate GHG emissions first from
large stationary sources under the existing CAA permitting requirements administered by state and local authorities. Large capital
investments may be required to install Best Available Control Technology on major new or modified sources of GHG emissions.
In 2014, the EPA proposed regulations for carbon dioxide emissions from new Electric Generating Units (EGU's). In 2014, the
EPA also proposed new regulations for carbon dioxide emissions from existing and reconstructed/modified EGUs that would be
based on individual state emission reduction programs. When finalized in 2015, these rules may affect the long term price and
supply of electricity and natural gas and demand for products that contribute to energy efficiency and renewable energy. The precise
impact of the proposed regulations is uncertain due to the flexibility provided to the states in developing their programs and
anticipated legal challenges to this regulatory approach. A comprehensive national policy that addresses climate change by relying
on market-based mechanisms to drive reductions in greenhouse gases is likely to be more economically efficient than the facility-
by-facility controls that would result from implementation of current proposed rules under EPA’s existing authorities.
At the international level, significant differences in regional or national approaches could present challenges in a global marketplace,
highlighting the need for coordinated global policy actions. An effective global climate policy framework will help drive the
market changes that are needed to stimulate and efficiently deploy new innovations in science and technology, while maintaining
open and competitive global markets.
PFOA
The Performance Chemicals segment used a form of PFOA (collectively, perfluorooctanoic acid and its salts, including the
ammonium salt) as a processing aid to manufacture some fluoropolymer resins. The Performance Materials segment used PFOA
in the manufacture of certain raw materials for perfluoroelastomer parts (and some fluoroelastomers). In the fall of 2002, DuPont
began producing rather than purchasing PFOA to support these manufacturing processes. PFOA is not used in the manufacture
of fluorotelomers; however, it is an unintended by-product present at trace levels in some fluorotelomer-based products.
PFOA is bio-persistent and has been detected at very low levels in the blood of the general population. Significant scientific
research has been and continues to be conducted to understand the exposure routes and potential hazards of PFOA. Regulatory
agencies continue to review these studies to evaluate potential regulation.
In January 2006, DuPont pledged its commitment to EPA's 2010/15 PFOA Stewardship Program. The EPA program asks
participants (1) to commit to achieve, no later than 2010, a 95 percent reduction in both facility emissions and product content
levels of PFOA, PFOA precursors and related higher homologue chemicals and (2) to commit to working toward the elimination
of PFOA, PFOA precursors and related higher homologue chemicals from emissions and products by no later than 2015.
As of the fourth quarter 2013, DuPont had already ceased the manufacture of PFOA and discontinued the use of PFOA for production
of fluoropolymer resins as well as for raw materials used in the production of perfluoroelastomer parts and fluoroelastomers. In
addition, as of the fourth quarter 2014, the company completed replacement of fluorotelomer-based products with alternative
products.
DuPont has met its commitment to the EPA 2010/15 PFOA Stewardship Program. Also, DuPont has met its 2007 commitment to
no longer make, use or buy PFOA by 2015.
For additional information regarding PFOA matters, see Note 15 to the Consolidated Financial Statements.