FOR IMMEDIATE RELEASE ENRD

THURSDAY, APRIL 26, 2007 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Acid Manufacturer Will Spend $50

Million
to Reduce Air Pollution
WASHINGTON — Rhodia Inc., an acid manufacturer, will pay a $2 million
penalty and spend approximately $50 million on air pollution controls at eight
production plants in four states across the country, per the terms of a settlement
which will resolve allegations that the company violated the Clean Air Act. The
pollution controls are expected to reduce harmful emissions from its production
plants in Texas, Louisiana, California and Indiana by 19,000 tons per year.

The company will meet new, lower emission limits for sulfur dioxide at eight
sulfuric acid production units: two in Houston, Texas and one in Baytown, Texas;
two in Baton Rouge, La.; one each in Martinez, Calif., and Dominguez, Calif.; and
one in Hammond, Ind. To meet these limits, the company will install state-of-the-
art pollution control equipment at several plants and change operating procedures at
several others. The states of Indiana and Louisiana, California’s Bay Area Air
Quality Management District, and the city of Hammond, Ind., joined the federal
government in today’s agreement and will receive shares of the civil penalty.

Rhodia is the first sulfuric acid manufacturer in the nation to agree to a company-
wide “global” compliance agreement. As a result of these actions, actual emissions
at some of the Rhodia plants will decrease by more than 90 percent. The Justice
Department and the Environmental Protection Agency (EPA) expect to reach similar
agreements with other sulfuric acid manufacturers.

“This agreement is helping to improve the environment and at the same time
creating a level playing field in the industry,” said Matthew J. McKeown, Acting
Assistant Attorney General for the Justice Department's Environmental and Natural
Resources Division. “Today’s settlement shows the high level of cooperation
possible among the federal government, our local and state partners, and industry,
when all are committed to compliance and meaningful improvement of the
environment.”

“Today’s settlement will reduce harmful air pollutants by 19,000 tons per year,” said
Grant Nakayama, EPA assistant administrator for the Office of Enforcement and
Compliance Assurance. “Sulfur dioxide can impair breathing, aggravate respiratory
diseases such as bronchitis, and cause acid rain. This will improve air quality for
millions of people around the nation.”

Rhodia’s plants produce acid by burning sulfur-containing compounds, creating

sulfur dioxide. The sulfur dioxide is then converted to sulfur trioxide, which
combines with water to form sulfuric acid. Air pollution is created when
“unconverted” sulfur dioxide and sulfuric acid mist is released to the atmosphere.
Children, the elderly and people with heart and lung conditions are the most
sensitive to sulfur dioxide.

The government’s complaint alleges that Rhodia made modifications to its plants,
which increased emissions of sulfur dioxide, without first obtaining pre-construction
permits and installing required pollution control equipment. The EPA requires major
sources of air pollution to obtain such permits before making changes that would
result in a significant emissions increase of any pollutant. Today’s settlement will
ensure that the proper pollution equipment will be installed to reduce future
emission levels.

The EPA is focusing on improving compliance among industries that have the
potential to cause significant amounts of air pollution, including the cement
manufacturing, glass manufacturing, and acid production industries.

The consent decree, lodged today in the U.S. District Court for the Northern District
of Indiana, is subject to a 30-day public comment period and approval by the federal
court. A copy of the consent decree is available on the Justice Department Web site
at http://www.usdoj.gov/enrd/Consent_Decrees.html. The company is required to
pay the penalty within 30 days after the court approves the settlement and to begin
meeting stricter emission limits at some of the plants by July 1, 2007.

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