Pactiv Corporation

Trash Bag Law Exemption Request

September 13, 2004

Trash Bag Law Requirements

Manufacturers of regulated bags must certify annually to CIWMB one of the following:

• regulated bags were manufactured with 10% or more PCM

• 30% PCM in all plastic products not regulated under PCM content laws

• demonstrated insufficient quality/quantity of PCM to satisfy the

requirements

Equipment Upgrades

• Sale of institutional liners and film businesses 2000/2001

• Recognized need for process changes to incorporate more PCR

• Capital approved for equipment upgrades

• $3.6 million expenditure

Specifications

• Revised specifications for nine parameters by specifying – Test to be conducted, e.g., melt index– Test method and conditions, e.g., ASTM D1238, Condition E– Acceptable targets, e.g., 0.50-2.5 LLDPE– Typical test frequency, e.g., every 5th box– Property Range, e.g., +/- 15% within lots

• Documentation report revised

• Unacceptable PCR communicated to suppliers in attempt to improve incoming waste stream

• Worked with Professor Joe Green to establish quality assurance program for PCR

PCR Suppliers

• Actively searching for suppliers, within California and outside the state

• Clarified specifications

• Long-term contracts established, but no PCR readily available

• Communications enhanced

Communications

• Revised process to notify suppliers if PCR does not meet quality requirements

• Trained plant employees on need to document above process

Status of Exemptions Requested

2003 Period 2002 Period

Manufacturer PCMContent

ExemptionGranted

PCMContent

ExemptionGranted

Clorox n/a n/a 0 no

Glad Products 0.1 yes n/a n/a

Pactiv 2.5 pending 7.5 yes

Poly-America 4.1 yes 4.3 yes

Trans Western 1.9 yes 0 no