DuPont 2009 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 2009 DuPont annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

Part II
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, continued
In the first quarter 2008, DuPont introduced its next generation fluorotelomer products. The products are marketed as
DuPontCapstoneproducts for use in home furnishings, stone and tile, fire fighting foam, fluorosurfactants, textiles
and leather goods. The U.S. Food and Drug Administration (FDA) has authorized two new DuPont grease and oil
repellents for use in paper packaging. Additional products will be introduced for paper packaging and other end use
markets pending appropriate regulatory approvals.
In the fourth quarter of 2009, EPA announced the start of a comprehensive approach to enhancing EPA’s current
chemicals management program under TSCA. As part of this enhancement, EPA released four Existing Chemical
Action Plans (the Plans) in December 2009 of which one covers long-chain perfluorinated chemicals (PFCs) including
PFOA. The Plans outline the risks that the use of the specified chemicals may present and the specific steps that EPA
will take to address concerns. EPA indicated that it intends to propose regulatory actions in 2012 to address the
potential risks from PFCs, but the specific steps noted in the PFCs Plan are generally consistent with the requirements
of the 2010/2015 PFOA Stewardship Program.
In January 2009, the EPA issued a national Provisional Health Advisory for PFOA of 0.4 parts per billion (ppb) in drinking
water. In March 2009, EPA and DuPont entered an Order on Consent under the Safe Drinking Water Act (SDWA)
reflecting an action level of 0.40 ppb (see Note 20 to the Consolidated Financial Statements).
In February 2007, the New Jersey Department of Environmental Protection (NJDEP) identified a preliminary drinking-
water guidance level for PFOA of 0.04 ppb as part of the first phase of an ongoing process to establish a state drinking-
water standard. During the first quarter 2009, the NJDEP began the process to establish a permanent Maximum
Contaminant Level (MCL) for PFOA in drinking water. The process is estimated to take 1 to 2 years. While the NJDEP
will continue sampling and evaluation of data from all sources, it has not recommended a change in consumption
patterns.
Based on extensive health and toxicological studies, DuPont believes that PFOA exposure does not pose a health risk
to the general public. Human studies have evaluated many health endpoints across a wide range of exposed
populations. While some associations have been reported, no human health effects are known to be caused by PFOA.
A considerable number of human health studies are ongoing and results will be available over the next several years.
There have not been any regulatory or government actions that prohibit the production or use of PFOA. However, there
can be no assurance that there will not be in the future. Products currently manufactured by the company representing
approximately $1 billion of 2009 revenues could be affected by any such regulation or prohibition. DuPont has
established reserves in connection with certain PFOA environmental and litigation matters (see Note 20 to the
Consolidated Financial Statements).
47