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Specialty chemical producer Rhodia Inc. (NYSE:RHA) has negotiated a consent decree with the U.S. Department of Justice and the U.S. Environmental Protection Agency and three states to resolve New Source Review (NSR) and New Source Performance Standards (NSPS) permitting issues associated with the company�s sulfuric acid facilities. Up to 92 percent of sulfur dioxide (SO2) emissions will be eliminated at four newly abated facilities, while the other four previously-abated facilities will contribute further emission reductions averaging 52 percent. When fully implemented, the sulfur dioxide air emissions from these facilities will be one-half of the levels allowed under the NSPS for new sulfuric acid plants, eliminating more than 19,000 tons per year of emissions overall. The consent decree requires Rhodia to achieve these lower air emission limits by 2014, including interim, plant-specific targets. By abating the largest emitting units first, Rhodia will achieve two-thirds of the required emissions reductions within the next four years. The agreement also requires new measures to ensure continuous emission monitoring. The consent decree resolves EPA�s allegations that Rhodia may have violated NSR or NSPS rules at one or more of its sulfuric acid facilities. Rhodia will pay a penalty of $2 million. The consent decree affects eight production units at six sites in Texas, Louisiana, California and Indiana. Four of the eight units (Hammond, IN.; Baytown, TX.; Dominguez and Martinez, CA) already employ state-of-the-art emissions control equipment and operate with emissions well below the NSPS levels. These sites, nevertheless, will soon operate with still lower permit limits and add new, continuous emission monitoring systems. The two production units at each of the Houston and Baton Rouge sites will undergo more significant modifications. �Best Available Control Technology� (BACT) will be installed on each of the four units to reduce SO2 emissions to about one-half the NSPS. The new abatement systems will be installed beginning with the largest unit at Houston. One unit will be completed about every 21 months until all four units are abated by 2014. This schedule allows Rhodia to accomplish the emissions reductions objectives and ensure reliability of supply to its sulfuric acid customers. Considering that Rhodia�s four facilities that are not already abated for SO2 emissions predate the NSR and NSPS programs, Rhodia believed they were not �new sources,� and were previously unaffected by the NSR and NSPS programs. However, EPA�s rules in this area are highly complex and have been subject to varying interpretations over the years by both industry and EPA. In fact, the disagreement on these issues has spawned extensive litigation around the country which continues to this day. Unfortunately, the courts have not been able to resolve the issues on a national level in any meaningful way. Recognizing the financial, operational and legal uncertainty associated with contesting EPA�s current interpretation, Rhodia chose instead to negotiate the consent decree. The negotiated settlement achieves significant environmental benefits, over specific timeframes, and allows the company to manage these emission abatement projects in a way that ensures continued reliable service to sulfuric acid customers. James Harton, president of Rhodia Inc. and its Eco Services enterprise which operates the plants, said the company has always believed its plants were in compliance with NSR and NSPS requirements. Nevertheless, �we came to what we believe is a balanced solution that resolves highly complex and controversial compliance issues while allowing us to move forward with improvements at our plants in a reasonable timeframe, without disrupting the business. The consent decree clearly improves air quality and allows Rhodia to maintain its leadership in sulfuric acid markets.� Rhodia�s sulfuric acid plants utilize regeneration technology to sustainably produce one of the most widely used chemicals employed in refineries and many other industrial and manufacturing applications. Refiners use sulfuric acid as a catalyst to produce alkylate, a key component of high-octane gasoline. During alkylate production, the sulfuric acid accumulates by-product impurities that diminish its catalytic capacity. The used or �spent� sulfuric acid is returned to Rhodia plants where it is decomposed and impurities are removed. This purified or regenerated acid is then returned to refineries and other customers for use in a continuous, sustainable loop. Beyond petroleum refiners, Rhodia Eco Services supplies fresh (non-regenerated) acid for other industrial applications including petrochemicals, plastics, solvents, cleaning agents and other industrial uses where reliability of supply is a significant requirement. Rhodia is a global specialty chemicals company recognized for its strong technology positions in Performance Materials, Functional Chemicals and the Organics and Services clusters. Partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, refining, and paints and coatings markets, Rhodia offers tailor-made solutions combining original molecules and technologies to respond to customers� needs. Rhodia subscribes to the principles of Sustainable Development, communicating its commitments and performance openly with stakeholders. Rhodia generated sales of 4.8 billion euros in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange.