This Project Deliverable (PD) encompasses work done within the Activities 6.4.5 (Integration and evaluation of the Procedure for Institutional Compatibility Assessment (PICA) in SEAMLESS-IF) and 6.5.5 (Feedback and contribution to the improvement of the Procedure for Institutional Compatibility Assessment) from July 2007 until April 2008. With the introduction of the Detailed Implementation Plan - months 37-51 both Activities have become part of the new Activity 6.6.6 (Integration, evaluation and improvement of PICA into SEAMLESS-IF). PICA has been developed in WP 2 as a formalised methodology to assess ex-ante the compatibility between policy options and different institutional contexts. This PD is a joint production of the members of the PICA Tool Task Force working at Cemagref in Clermont-Ferrand (Cemagref) and Humboldt-University of Berlin (UBER). Activity 6.4.5 (later Activity 6.6.6) evaluates PICA empirically and integrates it into SEAMLESS-IF, focussing on conceptual, technological, and empirical aspects. More precisely, it is analysed if and how the four distinct PICA steps need to be adjusted to elaborate the procedure and to facilitate PICA integration into SEAMLESS-IF. Thus, testing PICA is one of the main objectives of Activity 6.4.5 (6.6.6). For this, PICA was applied to the implementation of the policy option EU Nitrate Directive' in two départements (Allier and Puy-de-Dôme) in Auvergne in France. The empirical evidence that has been gathered and documented by the Cemagref team was used to elaborate the procedure (Activity 6.5.5). The results of Testing PICA Step 1 and 2 (Testing Phase One) have already been presented in PD6.5.5.1. In PICA Step 1, the policy type of the policy option under scrutiny is identified; in PICA Step 2, the identified policy type is linked to Crucial Institutional Aspects (CIA). In this PD, the test of PICA Steps 3 and 4 (Testing Phase Two) is documented. In PICA Step 3, institutional indicators to evaluate the extent of a respective CIA are selected or developed and assessed; in PICA Step 4, the results are grouped into thematic categories of institutional compatibility.