Intel

Final Project Agreement -- Terms and Conditions of the FPA (cont.)

ENFORCEABILITY OF THE FPA AND PUBLIC ACCOUNTABILITY

Certain requirements referenced in some of the attachments of this FPA are enforceable under the appropriate implementing statutes and regulations. Such requirements shall continue to be fully enforceable in accordance with the terms of relevant statutory and regulatory authorities. The five year commitments set forth in Subsections II(A)(3)(a), II(B), II(C), II(D), II(E) and II(H) of the text of this FPA are not legal requirements⁵ . Therefore, Intel is not legally obligated to implement these commitments and they are not enforceable under any environmental statute or regulation. Nonetheless, Intel agrees to make every effort to attain the five year commitments in Subsections II(A)(3)(a), II(B), II(C), II(D), II(E) and II(H). However, the Parties and the public stakeholders who assisted in developing this FPA recognize that the five year commitments are aggressive in nature, that it is difficult for Intel to predict performance in light of the lack of operational experience at the Ocotillo Site, and that potential events outside of Intel's control might impair the Company's ability to meet those commitments. In order to monitor Intel's progress in meeting its five year commitments, the Company has established an "Action Plan." Under this plan, Intel will proceed as follows:
- Pursuant to Subsection II(G), Intel will provide quarterly reports and an annual summary report on the progress the Company makes in attaining its five year commitments for the Ocotillo Site. If applicable, these reports shall provide the reasons for Intel's potential inability to attain one or more of these commitments.
- Intel will continue its close association with the public by holding, with the assistance of ADEQ, semi-annual public meetings on the FPA. These meetings will provide an open forum for discussion on the quarterly reports, and will provide opportunity for public input and suggestions on how to improve Intel's environmental performance at the Ocotillo Site.
- Intel will convene the other Parties and the Community Advisory Panel ("CAP") in January, 1999 to perform an in-depth evaluation of the Company's efforts towards attainment of the five year commitments identified in the FPA. If, after taking into account public input from the CAP, the majority of the Parties determine that the progress on one or more of the commitments is insufficient to create an expectation that such commitment(s) will be attained by December 31, 2001, then the commitment(s) and/or their deadline(s) shall be renegotiated in good faith by the Parties.
- Intel will make publicly available a report on the outcome of the January, 1999 meeting.
⁵ Section II(A)(3)(a) summarizes certain enforceable permit requirements related to screen modeling of chemical substances that have AAAQGs. This section also discusses, however, Intel's voluntary commitment to undertake additional screen model analysis at the property line of emissions from new chemical substances introduced to the Ocotillo Site which have not already been evaluated under the air permit. In addition, this section refers to Intel's voluntary commitment to evaluate maximum on-site modeled ambient air concentrations of certain chemicals which generate emissions to ensure the safety of employees and site visitors.
In addition to the above measures that are designed to foster public accountability, Intel is committed to assisting regulatory agencies in implementing projects similar to the Ocotillo Site Project XL. In particular:
- Building upon the expected success from implementation of the Ocotillo Site Project XL, Intel anticipates working with the community to apply, where appropriate, the innovative environmental approaches in this FPA to additional manufacturing and semiconductor facilities in the Chandler area.
One of Project XL's criteria is transferability of a site-specific project to other similarly-situated facilities. Intel operates another semiconductor wafer fabrication facility in the Chandler area, along with several additional facilities. Intel commits to work with EPA, state and local authorities to apply the innovative environmental approaches in this FPA to these other Intel facilities, as appropriate, after the Ocotillo Site Project XL has been implemented. Moreover, the results of the Ocotillo Site Project XL may be transferable to other semiconductor operations in the United States. Intel commits to work with EPA and electronics trade associations to implement environmental strategies that build on the success of the Ocotillo Site Project XL.

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