# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 1 of 99 

# EO12866_RIN2070-AJ92_Formaldehyde-Imp_NPRM_ICR_2012-01-27.docx 1

2

Supporting Statement for OMB Review under 3

the Paperwork Reduction Act 4

5

1. IDENTIFICATION OF THE INFORMATION COLLECTION 6

7

l(a) Title of the Information Collection 8

9

TITLE: ICR for Proposed Rule Implem enting the Formaldehyde Emissions 10

Standards for Composite Wood Products Act [RIN 2070-AJ92] 11

12

EPA ICR No.: 2446.01 13

14

OMB Control No.: 2070-NEW 15

16

1(b) Short Characterization 17

18

The Formaldehyde Standards for Composite Wood Products Act, which established Title 19

VI of the Toxic Substances Control Act (TSCA) , set forth formaldehyde emission standards for 20

hardwood plywood, particleboard and medium-density fiberboard a nd directs EPA to promulgate 21

implementing regulations by January 2013. TSCA Title VI also directs EPA to promulgate 22

supplementary provisions to ensure compliance w ith the emissions standards, including testing 23

requirements, laminated product provisions, pr ovisions for products made with no-added 24

formaldehyde (NAF) resins or ultra-low emitti ng formaldehyde (ULEF) resins, product labeling 25

requirements, chain of custody provisions for product compliance documentation, recordkeeping, 26

product inventory sell-through da tes, a product stockpiling prohi bition, and product certification 27

by an accredited third party (third party certifier, or TPC). This ICR covers the recordkeeping 28

and reporting requirements for all aspects of the TSCA Title VI implementing regulations, 29

except those relating to a ccreditation bodies and third- party certifiers that wi sh to participate in 30

this third-party certification pr ogram. A separate information collection request covers those 31

recordkeeping and reporti ng requirements. 32

33

Some examples of proposed reporting and th ird-party reporting re quirements covered by 34

this information collection request include: 35

36

 Notifying EPA in the event of a failed quarterly test 37

 Reporting of the results of quality cont rol tests to third-party certifiers 38

 Notifying a third-party cert ifier of a change in quality control manager 39

40

Examples of proposed recordkeeping requirements include: 41

42

 Records on quarterly test results a nd quality assurance test results 43

 Records of quality control manuals 44

 Records on quality control managers a nd employees and their qualifications 45

 Records on the dispositio n of non-compliant lots 46

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 2 of 99 

#  Chain of custody recordkeeping requirements for importers, fabricators, and laminated 47

products producers 48

 Labeling requirements for manufacturers (incl uding importers), fabric ators, distributors, 49

wholesalers and retailers 50

 Minimized requirements for non-impor ting distributors and retailers 51

52

The information collected under this ICR would be used by EPA’s Regional 53

Administrators, the Office of Enforcement a nd Compliance Assurance (OECA), and/or the 54

Office of Chemical Safety and Pollution Preven tion (OCSPP), as appropr iate. Some of the 55

information would also be made available to the public via the internet. This would include the 56

names and address of companies that have produ cts that qualified for reduced testing based on 57

the use of no-added formaldehyde-based resi ns. Downstream purchasers may use this 58

information in order to determine that the me rchandise is compliant and to avoid purchasing 59

products that are not legally saleable in the Un ited States. Confiden tial business information 60

(CBI) submitted to EPA will be maintained by the Agency pursuant to TSCA § 14 and 40 CFR 61

Part 2. 62

63

2. NEED FOR AND USE OF THE COLLECTION 64

65

2(a) Need/Authority for the Collection 66

67

The reporting and recordkeeping requirements of this ICR are implemented under the 68

authority of TSCA Title VI. TSCA Title VI di rects EPA to promulgate regulations to ensure 69

compliance with the emissions standards, in cluding provisions on testing requirements, 70

laminated products, products made with no-a dded formaldehyde resins or ultra-low emitting 71

formaldehyde resins, product labeling requireme nts, chain of custody for product compliance 72

documentation, recordkeeping, product inventor y sell-through dates, a product stockpiling 73

prohibition, and product certificati on by a TPC. To meet its st atutory obligations, EPA must 74

obtain sufficient information to ensure complian ce with the emissions standards; moreover, a 75

reasonable amount of reporting encourages regulated entities to fulfill thei r obligations under the 76

statute and regulations. 77

78

2(b) Use of the Data 79

80

EPA would use the information collected to evaluate manufacturer and importer 81

compliance with the emissions standards. The in formation that is collected and required to be 82

reported to third-party certifiers is necessary to ensure that producers of composite wood panels 83

maintain proper quality assurance and control me asures. Third-party certifiers require access to 84

this information so that they can certify that pr oducts are produce in accordance with TSCA Title 85

VI requirements. TSCA Title VI also direct s EPA to include labeling provisions. The 86

information contained in the labels accompa nying composite wood panels and finished goods 87

containing such panels will allow downstream purchasers of these products to determine whether 88

the merchandise is compliant; non-compliant merc handise may not be legally sold supplied or 89

offered for sale in the United States. 90

91

92

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 3 of 99 

# 93

3. NON-DUPLICATION, CONSULTATION S, AND OTHER COLLECTION CRITERIA 94

95

3(a) Non-Duplication 96

97

TSCA Title VI assigns to the EPA Admini strator the responsibility for promulgating 98

regulations that ensure complian ce with the statutory emissions standards for formaldehyde from 99

composite wood products. The information collecti on requirements addressed in this ICR are not 100

duplicative of any other Federal requirement. There are no fede ral regulations on formaldehyde 101

emissions from pressed wood products other than those of the Department of Housing and Urban 102

Development (HUD) that are applicable to pa rticleboard and plywood used in manufactured 103

housing. In contrast with the HUD emissions standards which are only applicable to 104

particleboard and plywood used in manufactured housing, the emissions standards in TSCA Title 105

VI apply to hardwood plywood, medium-density fiberboard, and particleboard sold, supplied, 106

offered for sale, or manufactured (defined by stat ute to include import) in the United States. 107

108

Because the proposed regulatory requirements are necessarily tailored to the unique 109

TSCA Title VI requirements, these records and re ports are the sole source of information for 110

EPA to rely on to ensure compliance with the emissions standards. 111

112

3(b) Public Notice Required Prior to ICR Submission to OMB 113

114

The proposed rulemaking serves as the public notice for this ICR. Interested parties 115

should submit comments referencing Docket ID No. EPA-HQ-OPPT-2011-0380 to the address 116

listed at the end of this document. Responses wi ll be taken into account in developing the final 117

rulemaking. 118

119

3(c) Consultations 120

121

On numerous occasions during the course of developing the proposed regulation, the 122

Agency has consulted with the regulated commun ity and the public. These consultations have 123

been held directly with industry officials and, on an ongoing basis, with owners and operators of 124

regulated facilities. EPA has also consulted wi th the California Air Resources Board (CARB), 125

which operates a similar third-party certifi cation program for formaldehyde standards for 126

composite wood products that are sold, supplied or offered for sale in the State of California. 127

128

Since EPA began its regulatory investigati on into formaldehyde emissions from pressed 129

wood products with an Advanced Notice of Proposed Rulemaking (ANPR) published in 2008, 130

EPA has met on numerous occasions with the co mposite wood panel and related industries. 131

These meetings have been in the form of pres entations at trade shows and industry association 132

conferences, and meetings with the Composite Panel Association (CPA), the Hardwood Plywood 133

and Veneer Association (HPVA), the Kitchen Cabinet Manufacturing Association (KCMA), the 134

American Home Furnishings Alliance (AHF A), the Business and Institutional Furniture 135

Manufacturer’s Association (BIFMA), and indivi dual companies. EPA staff have, at the 136

invitation of potentially regulated manufacturers, conducted factory tours and site visits. 137

138

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 4 of 99 

# EPA convened a Small Business Advocacy Revi ew Panel and hosted two panel outreach 139

meetings with small entity representatives (SER). Prior to each meeting, EPA distributed 140

outreach materials to the SERs, and after each m eeting the SERs were asked to provide written 141

feedback on how EPA might reduce regulatory bu rden on small entities. The Panel received 142

written comments from the SERs in response to the discussions at the meetings and the outreach 143

materials. The Panel summarized written and oral comments from the SERs and developed Panel 144

recommendations in its Panel Report. ( See Panel Report of the Small Business Advocacy Review 145

Panel on EPA’s Planned Proposed Rule Impl ementing the Formaldehyde Standards for 146

Composite Wood Products Act (TSCA Title VI), April 4, 2011). 147

148

EPA intends to carry out further consultati ons and outreach with potentially regulated 149

entities concurrent with the public comment period. These comments will be used to update the 150

Supporting Statement as needed. 151

152

3(d) Effects of Less Frequent Collection 153

154

EPA has judged that the reporting and record keeping requirements of the ICR are the 155

minimum amount necessary to fulfill its statutory mandate to promulgate regulations that ensure 156

compliance with the emissions standards. The re ports and records in this ICR would allow EPA 157

carry out its statutorily-delegat ed roles in program design, en forcement, and oversight. EPA 158

believes that less frequent reporti ng and failure to require notice of significant events could result 159

in uncertified and noncompliant pr oducts being distributed in commerce in violation of the 160

statute. For example, panel producers must provi de their third-party cer tifier with monthly 161

product data reports for each production facility, pr oduction line, and product type. These reports 162

will include production information and quality cont rol test results, and w ill allow the third-party 163

certifier to monitor quality contro l testing and ensure that producti on at the facility remains in 164

compliance with the statutory emission standards. 165

166

3(e) General Guidelines 167

168

In general, this information collection complies with the guidelines at 5 CFR 169

1320.5(d)(2). The exceptions to OMB’s Pape rwork Reduction Act Guidelines, and the 170

explanation of why such characteristics are n eeded to fulfill the statutory requirements, are 171

described below: 172

173

Record retention for 5 years is especially critical because thes e regulated products 174

(composite wood panels, component parts, and finished goods) may be in commerce for 5 years 175

or even longer. Composite wood products ar e regulated beginning with the manufacture 176

(including import) of panels th rough their incorporat ion into component parts and finished 177

goods, the distribution of those prod ucts, and the retail sale of thos e products. This is a lengthy 178

process and the amount of time composite wood pane ls are held in inventory and the amount of 179

time before they are incorporated into a finished good are variable . This point was illustrated by 180

the fact that the State of Califor nia had to twice extend its “sell- through date” when it enacted an 181

Airborne Toxic Control Measur e (ATCM) establishing formaldehyde emissions standards for 182

composite wood products. The California Air Resour ces Board found that these extensions were 183

necessary because the recession increased the amount of time ma nufacturers needed to clear 184

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 5 of 99 

# preexisting inventory. ( See, e.g., Composite Wood Products Re gulation Advisory: 11-01, 185

Extension of Sell-Through Dates for: Distributors, Importers, Fa bricators, and Retailers of 186

Finished Goods Containing Phase 1 Hardwood Plyw ood- Veneer Core and Distributors of Phase 187

1 Particleboard and Medium Density Fiberboard Panels, available at 188

http://www.arb.ca.gov/toxics/c ompwood/outreach/11_01_advisory.pdf ). It is essential that 189

proper chain-of-custody documentation be retained for this entire period of time so that both 190

EPA and interested downstream consumers can be assured that a finished good containing 191

regulated composite wood product was made from compliant composite wood panels. 192

193

A number of provisions requi re reporting only upon the occurr ence of a specific event. 194

For example, a panel producer must notify its third-party certifier immediately if it makes 195

production changes that are like ly to have an impact on formaldehyde emissions from its 196

products. These reporting requirement s are not triggered by the calendar ( i.e. , they are not 197

required quarterly or at more fr equent intervals). Therefore, the Agency does not believe that 198

these provisions need specia l justification. Moreover, EP A believes that unless these 199

notifications are provided within the intervals prescribed in the proposed rule, a change in 200

circumstances could result in non-compliant produc ts being distributed in commerce. Not only is 201

this a violation of the statute, but it greatly incr eases the cost associated of segregating, treating 202

and retesting these products. 203

204

3(f) Confidentiality 205

206

Regulated entities may claim all or part of a ny information given to EPA as confidential 207

business information (CBI). EPA handles claims of confidentiality pursuant to established CBI 208

procedures, as found at Section 14 of TSCA, 40 CFR Part 2, and the Agency’s TSCA CBI 209

Manual. CBI is also protected under the Free dom of Information Act (5 USC Section 525). 210

Much of the information requested in the reporting requirements of these collections is not of a 211

confidential nature. 212

213

3(g) Sensitive Questions 214

215

EPA asks no questions of a sensitive nature. 216

217

4. THE RESPONDENTS AND THE INFORMATION REQUESTED 218

219

4(a) Respondents/NAICS Codes 220

221

The primary respondents would be manufactur es, distributors, impor ters, retailers of 222

regulated composite wood products and finish ed goods containing regulated composite wood 223

products. 224

225

The following NAICS codes may be affected: 226

227

 Hardwood Veneer and Plywood Ma nufacturing (NAICS code 321211); 228

 Reconstituted Wood Product Ma nufacturing (NAICS code 321219); 229

 All Other Miscellaneous Wood Produc t Manufacturing (NAICS code 321999); 230

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 6 of 99 

#  Furniture and Related Product Ma nufacturing (NAICS code 337); 231

 Miscellaneous Manufacturing (NAICS code 339); 232

 Merchant Wholesalers, Dura ble Goods (NAICS code 423); 233

 Merchant Wholesalers, Nondurable Goods (NAICS code 424); and 234

 Retail Trade (NAICS Sector 44 and 45). 235

236

4(b) Information Requested 237

238

(i) Data Items 239

240

The proposed recordkeeping requirements and reporting requirements include: 241

242

(A) Notifications/Reports . Respondents are required to submit information to EPA to 243

accomplish the following reporting tasks: 244

245

 Imports of regulated composite wood products and finished goods containing regulated 246

composite wood products must be accompanied by a TSCA § 13 import certification. 247

248

 Panel producers who wish to qualify for reduced testing and third-part y certifier oversight 249

under the no-added formaldehyde-based resin pr ovisions must apply to a third-party 250

certifier and send a copy of the application to EPA. 251

252

 Third-party certifiers must notify EPA and the panel producer of a fa iled quarterly test I 253

in writing within 24 hours. 254

255

(B) Third-Party Notifications/Reports . Respondents are required to submit 256

information to entities other than EPA as follows: 257

258

 Composite wood product panel producers must apply for product certification from a 259

third-party certifier. The application must include the panel producer’s name, address, 260

telephone number, and other contact info rmation, including name and contact 261

information for the panel producer’s quality c ontrol manager, and an identification of the 262

specific products for which certification is requested, the chemical formulation of the 263

resins, including base resins, catalysts, and other additive s used in panel production, and 264

testing results. A copy of the panel producer ’s quality control manual must also be 265

provided to the third-party certifier with the application. Manuals must include 266

information on the organizational structur e of the quality control department, a 267

description of the sampling procedures a nd frequency of testing, a description of 268

procedures used to identify significant production changes, a description of the resin and 269

press time for each product type, and a descri ption of recordkeeping procedures. Changes 270

in manuals must be submitted to and approve d by an accredited third- party certifier. 271

272

 Composite wood product panel producers must provide information on the qualifications 273

of their quality control manager and quality control employees to the third-party certifier. 274

275

 Composite wood product panel producers must pr ovide their third-part y certifier with a 276

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 7 of 99 

# monthly product data reports th at include production informa tion and quality control test 277

results for each production facility, production line, and product type. 278

279

 Composite wood product panel producers must no tify their third-party certifiers if they 280

change quality control managers. This notific ation must occur with in 10 days of the 281

change. 282

283

 Composite wood product panel producers wishi ng to take advantage of reduced testing 284

and third-party certification requirements for products made with no-added formaldehyde 285

resins must apply to an accredited third-party certifier. The applica tion must include the 286

panel producer’s name and contact information as well as an identification of the specific 287

product and the chemical formulation of the re sins, including base re sins, catalysts, and 288

other additives as used in manufacturing. Te sting results must also be part of the 289

application. If the applicati on is granted, every two years thereafter, the panel producer 290

must have one test performed by an accredite d third-party certifier that demonstrates 291

continued compliance with the reduced fo rmaldehyde emission standards for each 292

product type. 293

294

 Panels or bundles of regulated composite wood products must be labeled with the 295

producer’s name (or number), lot or batch number, the number of the accredited third296

party certifier, and markings indicating that the product complies with the TSCA Title VI 297

emission standards. Products th at qualify for reduced testing and third-party certification 298

requirements based on the use of no-added fo rmaldehyde resins must also be marked 299

with indications that they were produced using no-added fo rmaldehyde resins. Boards 300

that are shipped into the United States for te sting purposes must also be labeled as such. 301

302

 Fabricators of finished goods containing composite wood products are required to label 303

every finished good they produce, or every box containing finished goods. The label 304

could be applied as a stamp, tag, sticker, or bar code and must include the fabricator’s 305

name, the date the finished good was produced and a marking to denote that the product 306

was made in compliance with TSCA Title VI. 307

308

(C) Records . Respondents are required to maintain records as follows: 309

310

 Panel producers must maintain the following records for at least five years and make 311

them available upon request to EPA, their third- party certifiers, and to purchasers of their 312

composite wood products: 313

o Records of all quarterly emission testi ng and all ongoing quality control testing 314

that identify the TPC conducting or overse eing the testing and the laboratory or 315

quality control facility actually performi ng the testing. These records must also 316

include the date, the product type tested, the lot or ba tch number that the tested 317

material represents, the test met hod used, and the test results. 318

o Production records, includi ng a description of the co mposite wood product(s), the 319

date of manufacture, lot or batch nu mbers, and tracking information allowing 320

each product to be traced to a spec ific lot number or batch produced. 321

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 8 of 99 

# o Records of changes in production, includi ng changes of more than 10% in the 322

resin use percentage, changes in resin com position that result in a higher ratio of 323

formaldehyde to other resin components, and changes in the process, such as 324

changes in press time by more than 20 percent. 325

o Records demonstrating initia l and continued eligibility for the reduced testing 326

provisions in 40 CFR § 770.17, if applicable. 327

o Purchaser information for each composite wood product, if applicable, including 328

the name, contact person, address, phone number, e-mail address if available, 329

purchase order or invoice number, and amount purchased. 330

o Transporter information for each com posite wood product, if applicable, 331

including name, contact person, addre ss, phone number, e-mail address if 332

available, and shipping invoice number. 333

o Information on the disposition of non-com plying lots, includi ng product type and 334

amount of composite wood products affected, lot or batch numbers, mitigation 335

measures used, results of retesting, and final disposition. 336

o Copies of labels used. 337

338

 Panel producers are required to maintain an up-to-date quality control manual on their 339

premises. 340

341

 Panel producers are required to maintain the cr edentials of their quality control managers 342

and quality control employees for as long as employees are serving in a quality control 343

capacity. 344

345

 Producers of exempt laminated products are re quired to maintain records demonstrating 346

that they are using compliant platforms a nd NAF resins. These records would include 347

records of purchases of NAF resins and of co mpliant, certified platforms, or, if the resins 348

or platforms are made in-house, records de monstrating that the platforms have been 349

certified by an accredited TPC and records dem onstrating the production of NAF resins. 350

351

 Importers, fabricators of finished goods that incorporate composite wood products, 352

laminated product producers whose products are exempt from the definition of hardwood 353

plywood must maintain records identifying the panel producer, the date the composite 354

wood products were produced, the date th e composite wood products were purchased, 355

and bills of lading or invoices that include a written affirmation from the supplier that the 356

composite wood products are compliant. 357

358

 Non-importing distributors and retailers must retain invoices and bills of lading and 359

copies of labels used. 360

361

(ii) Respondent Activities 362

363

All respondents would need to read the rule and determin e which provisions would be 364

applicable to their operations; pl an and modify their procedures to come into compliance with 365

the rule; provide training to appropriate staff; process, compile, and review information for 366

accuracy and appropriateness; and record, disclose , and/or report the required information. 367

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 9 of 99 

# 368

369

5. THE INFORMATION CO LLECTION — AGENCY AC TIVITIES, COLLECTION 370

METHODOLOGY, AND INFORMATION MANAGEMENT 371

372

5(a) Agency Activities 373

374

EPA resources would be devot ed to reviewing and anal yzing import certifications, 375

auditing and inspecting facilities, producing a udit and inspection reports, responding to public 376

inquiries, providing regulatory interpre tations and developing rulemakings. 377

378

5(b) Collection Methodology and Management 379

380

5(c) Small Entity Flexibility 381

382

Small businesses are not exempt from the requirements of TSCA Title VI. The 383

information collections would apply to all enti ties that manufacture (including import), sell, 384

supply, or offer for sale regulated composite w ood products in the United States regardless of 385

size. They would also apply to entities that manufact ure regulated composite products, including 386

finished goods, for import into the U.S. and to thir d-party certifiers that wish to participate in the 387

program. During the Small Business Advocacy Re view Panel process, the Panel recommended 388

regulatory flexibility alternatives to alleviate burden on small business. EPA seeks to implement 389

those recommendations in its proposal. For ex ample, EPA’s proposal would allow labeling by 390

bundle, as opposed to individual boards. EPA is also requiring quali ty control tests for 391

hardwood plywood based on production volume, allowing low volume producers to conduct 392

fewer tests. 393

394

5(d) Collection Schedule 395

396

Panel producers must provide their third-pa rty certifiers with monthly product data 397

reports. The rest of the reporting activities are triggered by specific events or on an as needed 398

basis rather than by specific dates. 399

400

6. ESTIMATING BURDEN AND CO ST OF THE COLLECTION 401

402

This section estimates the burden and associated costs fo r both the respondents and the 403

Agency associated with the recordkeeping a nd reporting requirements of the proposed TSCA 404

Title VI Implementation Rule. This supporting statement provides average annual burden and 405

cost estimates for the next thr ee years of the program. All costs are presented in year 2010 406

dollars. 407

408

This ICR presents the burden and associated costs for the activity types listed below. 409

Note that not all entities will incur burden or co sts from these activities because they may already 410

be meeting the requirements under the CARB ATCM and/or their existing recordkeeping and 411

labeling systems may already be sufficient. 412

413

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 10 of 99 

#  Rule Familiarization: All respondents will need to read the rule in order to understand 414

the requirements; 415

 Testing and Certification: All composite panel produc ers will need to perform 416

formaldehyde emission testing on their compos ite wood products and attain certification 417

from an accredited third-party certifier (TPC ). These entities must undergo qualifying 418

tests at a TPC lab, obtain an on-site audit fr om a TPC, implement quality control systems, 419

and train quality control employees in orde r to receive initial certification. Once 420

certified, a mill is required to conduct on-goi ng small scale quality control testing, submit 421

monthly reports to the certifying TPC, and receive quarterly on-site audits and large 422

chamber testing to maintain its certified stat us. Mills that produce products made with 423

NAF resins that meet more stringent emissi ons limits may apply for exemptions from 424

some of the on-going testing requirements; 425

 Recordkeeping : Firms that import, produce, or manufacture composite wood panels, 426

component parts, or finished goods are requi red to keep records showing the date of 427

purchase of the composite wood product, the su pplier, and all precautions taken to ensure 428

that the product meets emissions standards. Wholesalers and retailers that do not import, 429

produce, or manufacture composite wood panels , component parts, or finished goods are 430

required to maintain invoices and bills of lading; and 431

 Labeling: Firms that package or repackage com posite wood products or finished goods 432

containing composite wood products will need to modify their labels to include their 433

name, the date the finished good was produced, and a statement of compliance. 434

435

Exhibit 6-1 summarizes the recordkeeping a nd reporting activities for respondents as a 436

result of the proposed rule: 437

438

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 11 of 99 Exhibit 6-1: Summary of Recordkeeping and Reporting Activities, by Sector and Activity

Activity Composite Panel Producer

Fabricator Wholesaler

Retailer Standard NAF 

# Imports No

Imports

1. Rule Familiarization 1-time 1-time 1-time 1-time

2. Certification Fee Annual

- - - -

3. Initial On-site Audit 1-time

- - - - 4. Develop Quality Control

Manual 1-time

- - - -

5. Qualifying Test 1-time

- - - - 6. Qualifying Test Shipment 1-time

- - - -

7. Correlation Test 1-time

- - - - 8. Recurring On-site Audit 1 

# Quarterly Annual

- - - - 9. Large Scale Testing Fee 2 

# Quarterly Annual

- - - - 10. Large Scale Testing Shipment 2 

# Quarterly Annual

- - - -

11. On-site Audit Travel 3 

# Annual

- - - -

12. Desk Audits 4 

# 8 per year

- - - - -

13. Purchase of Small Chamber

Testing Unit 5 

# 1-time

- - - - -

14. Quality Control Testing 6 

# Daily

- - - -

15. Lost Product 7 

# Daily -

- - - 16. Initial Recordkeeping -

- - 1-time

- - 17. Recurring Recordkeeping Annual Annual Annual

- - 18. Initial Labeling 1-time 1-time 1-time

-

Notes: 1. This analysis assumes that pr oducers with new NAF certifications will incu r the burden associated with one on-site au dit (in addition to

the initial audit) in the first year. The initial on-site audit is assumed to be sufficient for producers with existing NAF ce rtifications. All NAFcertified producers will have one on- site audit annually thereafter.

2. Mills are required to perform large scale testing quarterly unl ess all products are certified as NAF. It is assumed that mi lls with only NAFcertified products will perform large scale te sting annually. In the first year, mills with added-formaldehy de products will t est those products

three times in addition to the qualifying testing, and mills with NAF products will test those once at the end of the qualifyin g process.

3. It is assumed that travel is only necessary for the annual a udits, as other intermediate audi ts can be performed by contract ing inspectors closer

to the mill.

4. Desk audits are assumed to occur monthly except in months without quarterly on-site audits. The analysis assumes that produc ers with new

NAF certification will incur the burden associ ated with two desk audits in the firs t year. NAF-certified producers will not ha ve any desk audits in

subsequent years.

5. This analysis assumes that mills with standard certification will choose to set up and operate a small scale testing facilit y on-site; although, all

particleboard and MDF mills with standard certification are assumed to already have a small scale testing facility on-site. Mi lls with NAF

certification only require weekly testing for the first three mont hs of certification; as a result, it is assumed that these mi lls will outsource their

testing.

6. Particleboard and MDF mills are required to test samples at least once per eight or twelve hour shift, but the frequency is reduced to one test

per 48 hours if the plant or production line ha s shown consistent operations with low va riability of test results. The testing frequency for

hardwood plywood producers depends on their production volume, ranging from as little as one test per hundred thousand square f eet of

production to as much as four tests per week. This analysis makes the simplifying assumption that all panel producers will tes t once per day,

which results in a conservative estimate of the burden and co st of quality control testi ng for hardwood plywood producers.

7. Mills will need to forfeit a number of panels for initial and on-going testing. Mills are expected to ship five 4’ x 8’ pan els per product type for

qualifying testing. All producers are assume d to lose one panel per product type each day for quality control testing, which i s a conservative

estimate for hardwood plywood producers. In addition, mills ar e required to send one panel per product type to the TPC for lar ge scale testing

each quarter. However, product lines that are certified as NAF are exempt from rou tine quality control testing after the three month qualifying

period, and need only have large scale testing performed annually.



# 439

Note that the TSCA Title VI rule requires importers of articles that are composite wood 440

products, or articles th at contain composite wood products, to comply with the TSCA Section 13 441

import certification regulations for “Chemical Substa nces in Bulk and As Part of Mixtures and 442

Articles,” as found at 19 CFR 12.118 through 12.127. Thus, any U.S. importer of composite 443

wood products or articles that contain composite wood products w ould have to ce rtify that all 444

articles in the shipment either comply with all ap plicable rules and orders under TSCA or that all 445

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 12 of 99 

# the articles in the shipment are not subject to TS CA. The statement must be on or attached to a 446

commercial invoice or entry document belonging to the imported shipment. In practice, import 447

certification is fulfilled by checking a box on an i nvoice or entry document. It is assumed that 448

this does not generally impose a significant ad ditional burden or cost on the importer. Any 449

potential burden associated with a submitter’s fam iliarization with this requirement is assumed to 450

be included in the more general rule familiarization burden discussed below. 451

452

Exhibit 6-2 summarizes the activities that ha ve reporting and record keeping burden hours 453

(and thus labor costs) associat ed with them, and those that have non-labor costs (such as 454

purchasing equipment, shipping composite wood sa mples for testing, TPC fees, etc.). Burden 455

hour estimates are discussed in section 6(a), wh ile labor and non-labor costs are discussed in 456

section 6(b). Exhibit 6-2 also summarizes the baseline calculations for this ICR analysis. Many 457

panel producers are already engaged in these activ ities because their products are certified under 458

the CARB ATCM. This analysis estimates the burden and cost of the TSCA Title VI rule’s 459

requirements both with and without accounting for this baseline. 460

461

This analysis assumes that mills making product lines that have a standard certification 1 

# 462

or a NAF certification under the CARB ATCM will not need to submit new data or resubmit 463

existing data to their existing TPC in order to receive the equivalent certification under the 464

TSCA Title VI regulations. Thus, this ICR does not include burdens and costs for these 465

reporting and recordkeeping activities where it is assumed the activities were already performed 466

to comply with the CARB ATCM and will not need to be performed again. This is consistent 467

with the methodology used in the Econo mic Analysis for the proposed rule. 468

469

However, this ICR does include the burdens and costs of required activities that will 470

continue to be performed under the TSCA Title VI rule, even if those activities would be 471

performed regardless of the TSCA rule (i.e., to comply with the CARB ATCM). This is 472

different from the methodology in the Economic Analysis for the proposed rule, where the 473

baseline included activities performed to comp ly with the CARB ATCM. As a result, the 474

Economic Analysis excluded the costs of activitie s that would be performed even without the 475

TSCA rule. 476

477

1 

# The term standard certification is used here to describe a certification other than an ultra-low-emitting formaldehyde (ULEF) or

NAF certification. The proposed rule does not provide for reduce d testing frequencies for products made with ULEF resins, so

mills that have a ULEF certification under the CARB ATCM wi ll incur additional costs under the TSCA Title VI rule.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 13 of 99 Exhibit 6-2: Summary of Recordkeeping and Reporting Activities, by Activity

Activity Labor

Costs

(see

Section

6(a)) NonLabor

Costs

(see

Section

6(b)) Burden/Cost Included for

Incremental Estimate, by firm

type Burden/Cost Included for

Total Estimate, by firm

type

Baseline CARBCompliant Not Baseline

CARBCompliant Baseline

CARBCompliant Not Baseline

CARBCompliant

1. Rule Familiarization Yes Yes Yes Yes Yes

2. Certification Fee Yes Incremental Only Yes Yes Yes

3. Initial On-site Audit Yes Yes Incremental Only Yes Yes Yes

4. Develop Quality Control

Manual Yes Yes Yes

5. Qualifying Test Yes Yes Yes

6. Qualifying Test Shipment Yes Yes Yes Yes

7. Correlation Test Yes Yes Yes Yes

8. Recurring On-site Audit Yes Yes Incremental Only Yes Yes Yes

9. Large Scale Testing Fee Yes Incremental Only Yes Yes Yes

10. Large Scale Testing

Shipment Yes Yes Incremental Only Yes Yes Yes

11. On-site Audit Travel Yes Incremental Only Yes Yes Yes

12. Desk Audits Yes Yes Incremental Only Yes Yes Yes

13. Purchase of Small Chamber

Testing Unit Yes Yes Yes

14. Quality Control Testing Yes Incremental Only Yes Yes Yes

15. Lost Product Yes Incremental Only Yes Yes Yes

16. Initial Recordkeeping Yes Yes Yes Yes

17. Recurring Recordkeeping Yes Yes Yes Yes

18. Initial Labeling Yes Yes Yes Yes Yes Yes

This ICR uses two sets of baseline calculations because it calculates both the incremental and the total burden and cost of th e

TSCA Title VI rule. The incremental burden and cost excludes fu ture activities that will be performed to comply with the CARB

ATCM in the baseline. The total burden and cost includes futu re activities that will be performed to comply with the CARB

ATCM in the baseline. Neither includes activities that CARB comp liant firms already performed in the past to meet the ATCM

requirements and that are assumed not to be repeated in order to comply with the TSCA Title VI requirements.



# 478

6(a) Estimating Respondent Burden 479

480

(i) Number of Respondents 481

482

Since the rule applies to products importe d into the U.S., the certification, testing, 483

recordkeeping, and reporti ng requirements also apply to entities outside the U.S. Therefore, this 484

analysis estimates both dome stic and foreign entities. 2 

# The number of respondents is estimated 485

separately by sector (i.e., panel producers, fabricators, wholesal ers, and retailers). 486

487

The number of domestic stock panel pr oducers (41 stock hardwood plywood mills, 30 488

particleboard mills, and 22 MDF mills) is ta ken from EPA’s Economic Analysis for the 489

rulemaking, and is described in more detail ther e. The estimate of foreign stock panel mills 490

exporting to the U.S. is based on the number of foreign mills on the CARB list of certified mills. 3 

# 491

To remain consistent with the Economic Analysis, which estimates that the share of imports that 492

is not CARB certified is larger compared to the share of domestic producti on that is not certified, 493

2 

# EPA’s Economic Analysis for the rulemaking ( Economic Analysis of the Formalde hyde Standards for Composite Wood

Products Act Implementing Regulations Proposed Rule ) does not estimate the number of foreign entities subject to the rule.

The number of domestic entities estim ated here is the same as the num ber in the Economic Analysis.

3 

# California Air Resources Board 2011.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 14 of 99 

# the analysis assumes the number of foreign mills that are not currently certified under the CARB 494

ATCM but will seek certification under the Title VI rule as 20 percent of the total number of 495

foreign mills certified under the CARB ATCM. 496

497

The Economic Analysis for the rule estimat ed there are 7,486 to 13,875 domestic entities 498

making wood veneer laminated products. The high e nd estimate (13,875) is used here. Under the 499

rule, wood veneer laminated products are exempt ed from the definition of hardwood plywood if 500

they are made with compliant platforms and NAF resins. The Economic Analysis estimates that 501

most domestic laminators not already using NAF re sins will switch to them so that their products 502

will be exempted from the definition of ha rdwood plywood. However, two percent of wood 503

veneer laminated product producers (278 entiti es) are assumed to continue to use added 504

formaldehyde resins and therefore will make products defined as hardwood plywood. The 505

remaining wood veneer laminated product producer s (13,597 entities) make products that will 506

not be defined as hardwood plywood, so these en tities will be considered fabricators under the 507

rule. The process used to estimate the number of wood veneer laminated product producers is 508

described in greater detail in the Economic Analysis. 509

510

As described in the Economic Analysis fo r the rule, the number of domestic wholesale 511

and retail trade firms was estimated using em ployer and nonemployer data from the Census. 4 

# 512

These totals were adjusted to account for that fact that not all firms are expected to sell 513

composite wood products. For example, some retail stores in the Floor Covering Stores industry 514

(NAICS 442210) might only sell ca rpet and rugs, and therefore would not be affected by the 515

proposed TSCA Title VI rule’s requirements. Data from the 2007 Economic Census’ Product 516

Lines Subject Series were used to estimate the pe rcentage of wholesalers and retailers that sell 517

composite wood products in affected industries. 5 

# 518

519

The numbers of foreign fabricators and whol esalers were estimated by 1) calculating the 520

ratio of the total customs value of imports for th e affected fabricator NAICS to the total domestic 521

value of shipments for these NAICS and 2) applyi ng it to the number of domestic firms in each 522

sector. In addition, the percenta ge of domestic wholesalers th at import composite wood products 523

or articles that contain composite wood products was estimated as ratio of the customs value of 524

imports to the sum of the customs value of impor ts and the total domestic value of shipments. 525

Exhibit 6-3 

# presents the customs value of imports a nd the domestic value of shipments for the 526

affected industries. 527

528

4 

# The following NAICS are included for wholesal ers: 423210, 423220, 423310, 423320, 423330, 423390, 423410, 423420,

423430, 423440, 423450, 423490, 423510, 423610, 423620, 423690, 423710, 423720, 423730, 423740, 423740, 423810,

423820, 423830, 423840, 423850, 423910, 423920, 423930, 423940, 423990, 424110, 424120, 424130, 424210, 424310,

424320, 424330, 424340, 424410, 424420, 424450, 424460, 424480, 424490, 424510, 424610, 424690, 424910, 424920,

424930, 424940, 424950, 424990.

The following NAICS are included for retailers: 441110, 441210, 441221, 441229, 441320, 442110, 442210, 442291, 442299,

443111, 443112, 443120, 443130, 444110, 444120, 444130, 444190, 444210, 444220, 445110, 445120, 445210, 445220,

445230, 445291, 445292, 445299, 445310, 446110, 446120, 446130, 446191, 446199, 447110, 447190, 448110, 448120,

448130, 448140, 448150, 448190, 448210, 448310, 448320, 451110, 451120, 451130, 451140, 451211, 451212, 451220,

452111, 452112, 452910, 452990, 453110, 453210, 453220, 453910, 453920, 453930, 453991, 453998, 454111, 454113,

454210, 454311, 454312, 454390.

5 

# U.S. Census Bureau 2010a, 2011.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 15 of 99 Exhibit 6-3: Customs Value of Imports and Dome stic Value of Shipments, by NAICS (millions,

2010$)

NAICS Description Customs

Value of

Imports Domestic

Value of

Shipments Sum of

Imports and

Domestic

Shipments

321211 Hardwood veneer and plywood manufacturing $1,516 $3,327 $4,843

321219 Reconstituted wood product manufacturing $1,502 $6,721 $8,223

321911 Wood window and door manufacturing $491 $14,161 $14,653

321918 Other millwork (including flooring) $770 $7,483 $8,254

321991 Manufactured home (mobile ho me) manufacturing $2 $6,086 $6,089

321992 Prefabricated wood building manufacturing $50 $4,215 $4,265

321999 All other miscellaneous wood product manufacturing $1,927 $6,058 $7,984

336213 Motor home manufacturing $117 $5,779 $5,896

336214 Travel trailer and camper manufacturing $537 $10,641 $11,178

337110 Wood kitchen cabinet and count ertop manufacturing $491 $18,658 $19,149

337121 Upholstered household furnitur e manufacturing $2,898 $11,269 $14,166

337122 Nonupholstered wood household furniture manufacturing - - -

337124 Metal household furniture manufacturing $2,708 $2,393 $5,101

337127 Institutional furniture manufacturing $12,133 $5,799 $17,932

337129 Wood television, radio, and sewing m achine cabinet manufacturing $4 $407 $411

337211 Wood office furniture manufacturing $697 $2,904 $3,601

337212 Custom architectural woodwork and millwork manufacturing - - -

337214 Office furniture (except wood) manufacturing $410 $8,978 $9,388

337215 Showcase, partition, shelving, and locker manufacturing $4,283 $7,873 $12,156

339920 Sporting and athletic goods manufacturing $6,260 $12,510 $18,770

339932 Game, toy, and children's vehi cle manufacturing $21,428 $2,712 $24,140

339950 Sign manufacturing $184 $13,003 $13,187

339992 Musical instrument manuf acturing $1,190 $1,796 $2,986

Total $59,598 $152,772 $212,370

Ratio of Customs Value of Imports Domestic Shipments 39%

Ratio of Customs Value of Imports to Sum of Imports and Domestic Shipments 28%

Sources: U.S. Census Bureau 2010b, U. S. International Trade Commission 2011



# 529

As indicated in Exhibit 6-3 

# . imports are 39.0 percent of the U.S. value of shipments for 530

these goods. Therefore, as shown in Exhibit 6- 4, it is assumed that th ere are 39.0 percent as 531

many foreign fabricators that e xport products to the U.S. as there are domestic fabricators 532

(31,083 foreign fabricators compared to 79,701 domes tic fabricators). Similarly, it is assumed 533

that there are 39 percent as ma ny foreign wholesalers that expor t composite wood products or 534

goods containing composite wood products to the U.S. as there are domestic wholesalers that are 535

subject to the rule (33,368 fore ign wholesalers compared to 8 5,560 domestic wholesalers). The 536

analysis assumes that composite wood products and goods containing composite wood products 537

are generally exported to the United States by pane l producers, fabricators, or wholesalers. Few 538

foreign retailers are assumed to export compos ite wood products directly to the U.S., so the 539

analysis does not estimate that number. 540

541

The number of wholesalers that import co mposite wood products is assumed to be 542

proportional to the ratio of the value of imports of composite wood products to the sum of the 543

total import and domestic shipment values. As shown in Exhibit 6-3 imports represent 28 544

percent of the value of imports a nd domestic shipments. Thus, it is estimated that 28 percent of 545

wholesalers are importers of com posite wood products. This resu lts in an estimate that 23,957 of 546

the 85,560 domestic wholesalers import com posite wood products. Since the number of 547

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 16 of 99 

# wholesalers that import products is estimated us ing the total customs va lue of imports (which 548

reflects imports by all sectors), to the extent that some products are imported directly by retailers, 549

the number of such retailers (and their recordkeeping burden) would be reflected in the 550

wholesaler estimate. And to the extent that some fabricators import composite wood products 551

directly, the estimated total recordkeeping bur den may be overstated (s ince the recordkeeping 552

burden for fabricators is estimated separately). 553

554

Exhibit 6-4: Summary of Respondents, by Sector and Geographic Location

Sector Domestic

Respondents Foreign

Respondents 1 

# Total

Respondents

Composite Panel Producers (Mills)

Stock Panel Mills

Stock Hardwood Plywood 41 538 579

Particleboard 30 209 239

MDF 22 274 296

Wood Veneer Laminated Product Producers

(Classified as making Hardwood Plywood) 2 

# 277 108 385

Total Composite Panel Producers 370 1,129 1,499

Fabricators (Firms)

Wood Veneer Laminated Product Producers

(Classified as Fabricators) 13,598 5,303 18,901

Other Fabricators 66,103 25,780 91,883

Total Fabricators 79,701 31,083 110,784

Wholesalers (Firms)

Wholesalers that import 23,957 --- 23,957

Wholesalers that do not import 61,603 --- 61,603

Total Wholesalers 85,560 33,368 118,928

Retailers(Firms) 3 

# 759,048 0 759,048

Total 924,679 65,580 990,259

Notes: 1. The numbers of foreign fabricators and wholesaler s were estimated by 1) calculating the ratio of the total

customs value of imports for the affected fabricator NAICS to the total domestic value of shipments for these NAICS

(which is 39 percent) and 2) applying it to the number of dome stic firms in each sector. The analysis assumes that there

are foreign retailers do not typically export composite wood products or goods containing composite wood products into

the United States. To remain consistent with the Economic Analysis, which assumes that there is uncertified product

being imported into the U.S., the analysis assumes that the nu mber of certified foreign mills as 20 percent of the total

number of certified mills.

2. These are laminators that are assumed to continue using adde d formaldehyde resins after the rule is implemented. It is

also assumed that all wood veneer laminated product producers are single-establishment firms.

3. The analysis assumes that there are foreign retailers do not typically export composite wood products or goods

containing composite wood products into the United States.



# Sources: California Air Resources Board 2011, Composite Panel Association 2011, U.S. Census Bureau

2009, 2010a, b, c, d, e, f, g, h, 2011, U.S. International Trade Commission 2011



# 555

As indicated in Exhibit 6-4, there are an estimated total of 990,259 domestic and foreign 556

respondents. Domestic respondents account for an estimated 93.4 percent of the total. Retailers 557

account for the largest proportion of the total respondents (76.7 percen t). Wholesalers, 558

fabricators, and composite panel producers acco unt for approximately 12.0 percent, 11.2 percent, 559

and 0.2 percent of the total number of respondents, respectively. 560

561

(ii) Burden Per Respondent 562

563

This section describes the per-activity recordkeeping and reporting burden for 564

respondents as a result of the proposed TSCA Title VI rule. Respondent activities are presented 565

separately for each unique combination of (1 ) responses per respondent and (2) per-response 566

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 17 of 99 

# burden that is accounted for in this analysis. For example, while all composite panel producers 567

are required to have an on-site audit perfor med quarterly, those with NAF certification are 568

exempt from subsequent audits after three months of routine small scale testing and one quarterly 569

test. As a result, even though th ese audits are assumed to take the same amount of time for all 570

producers (four managerial-level hou rs), they are presented as sepa rate activities because they 571

require a different number of annual responses, de pending on the certification type. The section 572

begins with a description of ac tivities that are comm on to all respondents, and then separately 573

discusses the activities by category of responde nts (composite panel producers, fabricators, 574

wholesalers, and retailers). 575

576

This section also describes the process us ed to estimate the number of respondents in 577

each activity group. Note that the number of foreign respondents in each activity group is 578

estimated by 1) calculating the se ctor-specific ratio of domestic respondents by certification type 579

to the total domestic respondents in that sector; 2) applying the ra tio to the estimated number of 580

foreign respondents in the sect or; and, 3) taking the sum of the rounded estimates across all 581

affected sectors. For example, this analysis assumes that 1 of the 30 domestic particleboard 582

respondents (or 3.3 percent) and 2 of the 22 domestic MDF respondents (or 9.1 percent) will 583

switch from ULEF certification to standard certifi cation as a result of the TSCA Title VI rule. 584

As a result, it is assumed that 6 certified fo reign particleboard responde nts (3.3 percent of 173) 585

and 26 certified foreign MDF respondents (9.1 percent of 228) will switch from ULEF 586

certification to standard certification as a result of the TSCA Titl e VI rule. 587

588

(A). All Respondents 589

590

The burden associated with ru le familiarization is presented first because this activity is 591

common to all respondents. Composite panel produ cers are presented separately from the other 592

respondent types because they are subject to test ing and certification requirements unique to their 593

sector. Since wood veneer laminated product pr oducers will be define d as either hardwood 594

plywood manufacturers or fabricator s under the proposed rule (depending on the resin they use), 595

they are discussed within the cont ext of these respondent types. 596

597

Rule Familiarization (Activity #1) 598

599

All entities will need to familiarize themselves with th e proposed regulation and either 600

ensure that their current systems are suffici ent for the requirements or identify necessary 601

changes. The analysis assumes that all respondents will spend 4.0 managerial labor hours on 602

rule familiarization. This one-time burd en is incurred during the first year. 603

604

(B). Composite Panel Producers 605

606

In addition to rule familiarization, com posite panel producers will also spend time on 607

testing and certification, recordk eeping, and labeling activities. Th is analysis assumes that mills 608

making product lines that have a standard certification or a NAF certification under the CARB 609

ATCM will not need to submit new data or resubm it existing data to their existing TPC in order 610

to receive the equivalent certification under the TS CA Title VI regulations. Thus, this ICR does 611

not include burdens and costs for these reporti ng and recordkeeping activities where it is 612

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 18 of 99 

# assumed the activities were already performed to comply with the CARB ATCM and will not 613

need to be performed again. This is consis tent with the methodology used in the Economic 614

Analysis for the proposed rule. However, th is ICR does include the burdens and costs of 615

required activities that will continue to be perf ormed under the TSCA Title VI rule, even if those 616

activities would be performed re gardless of the TSCA rule (i.e., to comply with the CARB 617

ATCM). This is different from the methodology in the Economic Analysis for the proposed rule, 618

where the baseline included activ ities performed to comply with the CARB ATCM. As a result, 619

the Economic Analysis excluded the costs of activiti es that would be performed even without the 620

TSCA rule. 621

622

In addition, this an alysis assumes that two percent of wood veneer laminated product 623

producers will continue to use added formaldehyde resins and thus be classified as hardwood 624

plywood producers. Since laminators are not certified under the CARB ATCM, these producers 625

will incur additional costs due to the TSCA Title VI rule. 626

627

TSCA Title VI requires panel producers to perform formaldehyde emission testing on 628

their composite wood products and obtain and main tain certification from an accredited TPC. 629

Panel producers must undergo qualify ing tests at a TPC lab, obtain an on-site audit from a TPC, 630

implement quality control systems, and train quality control employees in or der to receive initial 631

certification. Once a TPC certifies a panel producer , that producer is re quired to conduct on632

going small scale quality control testing, subm it monthly reports to the TPC, and receive 633

quarterly on-site audits and larg e scale testing to maintain its certified status. Panel producers 634

that make products with NAF resins and meet more stringent emissions limits may apply for 635

exemptions from some of the on-going testing requirements. 6 

# 636

637

NAF certification can be achieved by perfor ming three months of routine small scale 638

testing and one quarterly primary or secondary method test at the TPC. Product lines approved 639

for NAF certification are exempt from routine small scale testing and quarterly primary or 640

secondary method TPC testing for two years, af ter which point the mill may reapply for NAF 641

certification by submitting the results of at least one primary or secondary method test; however, 642

this analysis assumes that NAF-certified mills will undertake a TPC aud it annually. Where the 643

frequency of testing is different for compos ite panel producers with NAF certification and 644

standard certification, these groups are presented separately. 645

646

Initial On-site Audit (Activity #3) 647

648

Prior to certification, the TPC is expected to make at least one trip to the mill to inspect 649

the mill’s quality control systems and employees. During the initial visit, the TPC will assist the 650

mill in setting up quality control systems, including the small scale testing facility, if applicable, 651

and methods for selecting samples. Audits typica lly do not take more than one day of travel and 652

visitation, though if the mill requires a substantial number of modifications or is unprepared, the 653

duration of the visit may be longer. 7 

# This analysis assumes that a managerial-level employee 654

will be present for eight hours during the initial on -site audit of mills. It is assumed that the 655

6 

# The proposed rule does not provide for re duced testing frequencies for products made with ultra-low emissions formaldehyde

(ULEF) resins.

7 

# Personal Communication with HPVA 2011.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 19 of 99 

# initial quality control audit (see below) is suffici ent for mills with existing CARB certifications. 656

657

Quality Control Systems Development (Activity #4) 658

659

Mills are required to implement quality cont rol procedures to ensure that all certified 660

products consistently meet the applicable emissions standards. In addition, mills are required to 661

designate a quality control manager and quality control employees, if needed. The quality 662

control manager must have adequate training or experience to handl e all quality control 663

procedures, including on-s ite testing and shipping samples fo r TPC testing. All quality control 664

procedures and designated quality control personnel must be id entified in a quality control 665

manual. Prior to the mill’s in itial certification, the TPC will assist mills in developing and 666

documenting appropriate quality control procedures. In some cases, the mill’s resin supplier will 667

also help to train quality c ontrol employees and develop qua lity control procedures. 668

669

Based on conversations with CPA, HPVA, and composite wood manufacturers, it is 670

assumed that training, implementing quality cont rol systems, and developing the quality control 671

manual could take between one and five days to complete, depending on the mill’s existing 672

quality control systems. HPVA and CPA noted that smaller mills often do not have quality 673

control systems in place and that developing thes e systems can be a time-consuming process. 674

This analysis assumes that a managerial-lev el employee will spend forty hours training, 675

becoming familiarized with the testing and certifi cation requirements, writing the quality control 676

manual, and setting up quality control systems and te sting procedures. It also assumes that mills 677

with existing certifications will have quality c ontrol systems in place and so will not need to 678

spend time on these activities. 679

680

Qualifying Test (A ctivities #5 and #6) 681

682

Composite panel producers are required to obtain five qualifying tests for each product 683

type (e.g., veneer core hardwood plywood) and pr oduction line for which certification is sought. 684

A TPC employee must select and mark the panels to be tested during the initial mill audit, with 685

at least one panel being selected for each test. After panel selection has occurred, the mill must 686

ship the marked panels to the TPC for large scale testing. 8 

# Results from the five large chamber 687

tests must not exceed the emission standards for each product type and production line. Mills are 688

expected to ship at least five 4’ x 8’ panels for each produc t type via a commercial shipping 689

carrier. Panels must be dead-stacked (i.e., ha ving no layers between panels), bundled air-tight, 690

wrapped in polyethylene, and protected by cover sheet s. The analysis assumes that it will take a 691

managerial-level employee half an hour to prep are the panels for shipping. Producers that are 692

already CARB compliant and are not expected to adopt a more stringent certification type thus 693

will not incur this burden. 694

695

Quality Control Audits (Activities #8 and #11) 696

697

After certification has been granted, the TPC is obligated to perfor m an on-site audit at 698

8 

# Large scale testing can be performed using either the primary test method or an equivalent se condary test method; however,

this analysis assumes that al l qualifying testing is performed using the pr imary test method. The primary method for

formaldehyde testing is the large chamber test, as defined by ASTM International Standard E1333.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 20 of 99 

# least once quarterly, unless the mill obtains NAF certification. TPCs may also conduct periodic 699

“desk audits,” which are quality control check s performed over the phone in which the mill’s 700

small scale testing procedures and data are review ed. Desk audits are assumed to occur monthly, 701

except in months with quarterly on-site audits. This analysis assumes that a managerial-level 702

employee will be present for four hours for every on-site quality control audit, and one hour for 703

each desk audit. 704

705

This analysis assumes that producers with new NAF certifications will incur the burden 706

associated with one on-site audit (in addition to th e initial audit) and two de sk audits in the first 707

year. The initial on-site aud it is assumed to be sufficient for producers with existing NAF 708

certifications. All NAF-certified producers will have one on-s ite audit annually thereafter. 709

710

Quality Control Testing (Activity #14) 711

712

Mills must also perform on-going quality c ontrol testing on the a pplicable products. 713

Quality control testing is typically performed using a small chamber test (ASTM D6007) or 714

desiccator test (ASTM D5582). Th ese tests require smaller test samples and can be conducted at 715

the TPC facility or on-site at a TPC-approved la b at the composite wood mill. The TPC must 716

develop a statistical co rrelation between the large scale a nd small scale test methods using a 717

minimum of five data pairs. It is assumed that mills will need to obtain all five data pairs during 718

qualifying testing, though it is possible that some mills may be able to use previous test results or 719

data obtained from the resin manufacturer. Each large chamber test requ ires results from one 720

small chamber test or three desiccator tests to calculate the correlation. This analysis assumes 721

that the TPC will perform desiccator testing for ha lf of the mills and small chamber testing for 722

the other half during qualification wh en small scale testing is perfor med at the TPC. Thus, if the 723

TPC performs 5 large chamber tests, it would also perform either 15 desiccator tests or 5 small 724

chamber tests. 725

726

Mills have the option of constructing an on-si te lab and having it approved by a TPC, or 727

contracting a certifie d third-party lab to perform small scal e quality control testing. The decision 728

to perform on-site testing is dependent on the relative costs of building and running an on-site 729

lab, and the fees and shipping cost s associated with hiring a thir d-party lab. According to CPA 730

and HPVA, particleboard and MDF mills already have their own on-site labs to test for 731

formaldehyde (because they have to test their products on a daily basis under the CARB ATCM), 732

while most smaller hardwood plywood mills pay their TPC to conduct their quality control 733

testing. (In part because hard wood plywood mills often use ULEF or NAF resins to qualify for 734

exemptions from some of the on-going testi ng requirements under the CARB ATCM.) However, 735

the CARB ATCM allows mills to ship panels from certified product lines before test results are 736

available. By contrast, the proposed TSCA VI rule requires mills to wait until test results 737

indicate that the emissions standa rds have been met before shipping a lot that has been tested. It 738

is uncertain how often m ills currently ship product from a lot be ing tested before the test results 739

are available and therefore it is uncertain how mills will choose to comply with this requirement. 740

It may be the case that some mills normally maintain a level of inventory where they would 741

typically not ship any panels before test results ha ve been determined for that lot, but other mills 742

may ship out panels on the same day they are produced. This analysis assumes that all mills that 743

have not already done so will opt to set up and oper ate a quality control tes ting facility on-site, in 744

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 21 of 99 

# order to minimize the time spent waiting for test re sults, and to maximize th eir flexibility to ship 745

out panels shortly after they have been produced . (Assuming that mills conduct on-site testing 746

may overstate the costs of this requirement if some mills find it more cost effective to hold 747

products in inventory until test re sults have been determined by an outside lab.) Producers that 748

are already CARB compliant and ar e not expected to adopt a more stringent certification type 749

(e.g., NAF) will not need to perform correlation testing. 750

751

The frequency of small scal e testing without NAF certifi cation depends on the product 752

type and other factors. For hardwood plywood producers, the frequency of testing depends upon 753

the volume of hardwood plywood produced weekly at each plant. Plants producing less than 100 754

thousand square feet (msf) per week are required to test once per 100 msf. Plants producing 755

between 100 msf and 200 thousand s quare feet (msf) per week are required to test once, plants 756

producing between 200 msf and 400 msf per week ar e required to test twic e per week, and those 757

producing greater than 400 msf per week are required to test four times pe r week. Particleboard 758

and MDF producers must test samples at least on ce per eight or twelve hour shift, but this 759

frequency may be reduced to one test per fort y-eight hours if the plant or production line has 760

shown consistent operations and low variability of test results. This analysis makes the 761

simplifying assumption that all producers will test each production line once daily. This results 762

in a conservative estimate of the burden and cost of quality control testing for hardwood 763

plywood producers. It is assumed that the qu ality control manager will spend two hours each 764

day performing routine qual ity control testing. 765

766

As previously stated, composite panel produc ers need to perform 3 months of routine 767

small scale testing to become NAF certified. As a result, it is assumed that producers will 768

perform 65 daily quality c ontrol tests (assuming that the plants ar e in operation 5 days per week). 769

It is assumed that producers with existing NAF cer tifications will not incur the burden associated 770

with initial quality control testing. NAF certif ied producers will not incur any additional burden 771

associated with quality control testing in subseque nt years. Note that the numbers of quality 772

control testing responses are pres ented at the product line leve l; as a result, the per-response 773

burdens have been modified accordingly. 774

775

Recurring Recordkeeping (Activity #17) 776

777

Panel producers are assumed to incur an aver age labor burden of one hour of managerial 778

labor per week (equivalent to $3,710.72 per year) to maintain the following records for 5 years: 779

780

 Records of quarterly emission testing and qua lity control testing that identify the 781

accredited third-party certifier conducti ng or overseeing the testing and the 782

laboratory or quality control facility actually performing the testing. These 783

records must also include th e date, the product type teste d, the lot or batch number 784

that the tested material represents, the te st method used, and the test results; 785

 Production records, includi ng a description of the co mposite wood product(s), the 786

date of manufacture, lot or batch numbers, the amount of resin use by volume and 787

weight, the resin trade name, resin manuf acturer and supplier contact information, 788

and tracking information allowing each pr oduct to be traced to a specific lot 789

number or batch produced; 790

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 22 of 99 

#  Records demonstrating initia l and continued eligibility for the reduced testing 791

provisions for products made with no- added formaldehyde-based resins, if 792

applicable; 793

 Records of changes in production, incl uding changes in resin use, resin 794

composition, and changes in the process, such as changes in press time; 795

 Purchaser information for each composite wood product, if applicable, including 796

the name, contact person, address, phone number, e-mail address if available, 797

purchase order or invoice number, and amount purchased; 798

 Transporter information for each com posite wood product, if applicable, 799

including name, contact person, addre ss, phone number, e-mail address if 800

available, and shippi ng invoice number; 801

 Information on the disposition of non-com plying lots, includi ng product type and 802

amount of composite wood products affected, lot or batch numbers, mitigation 803

measures used, results of retesting, and final disposition; 804

 Copies of labels used; 805

 Panel producers are required to maintain an up-to-date quality control manual on 806

their premises; and 807

 Panel producers are required to maintain the credentials of their quality control 808

managers and quality control employees fo r as long as employees are serving in a 809

quality control capacity. 810

811

Initial Labeling (Activity #18) 812

813

It is assumed that panel producers, for whom product labeling is a customary business 814

practice, will incur the incremental costs of 6 hours of cleric al labor for changing their labels 815

twice. They may need to change their labels once before the effectiv e date of the rule (to 816

indicate that the panels were produc ed before that date if they ar e to be sold after the rule goes 817

into effect) and again after thei r product lines ar e certified. 818

819

To remain consistent with the Economic Analysis, wood veneer laminated product 820

producers defined as hardwood plywood producers ar e assumed to incur the same burden as the 821

fabricators who are assumed to incur more subs tantial initial labeling costs (an average of 100 822

hours of technical labor) (see below). 823

824

(C) Fabricators 825

826

While all fabricators will incur the burden associated with rule familiarization, only a 827

fraction will incur the additional burdens associat ed with recordkeeping and labeling. This is 828

because 1) many fabricators are already comp lying with similar requirements in the CARB 829

ATCM because the products they make are sold in California, and 2) many fabricators’ existing 830

recordkeeping and labeling system s are expected to be sufficient to meet the proposed rule’s 831

requirements without any si gnificant modifications. 832

833

All fabricators are required to label their pr oducts with their name, the date the finished 834

good was produced, and a statement of compliance. Fabricators are al so required to take 835

“reasonable precautions” to ensure that the co mposite wood products and finished goods they 836

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 23 of 99 

# acquire are in compliance with the applicable em ission standards. This includes keeping records 837

showing the date of purchase, th e supplier, as well as all precautions taken to ensure that the 838

product meets emissions standards. These records must be kept for five years. 839

840

Baseline Compliance for Fabricators 841

842

The baseline level of compliance for mo st fabricators was determined based on 843

conversations with industry associations. 9 

# However, baseline compliance for some industries 844

was estimated simply as the number of establishments located in California divided by the total 845

number of U.S. establishments in each industr y. Exhibit 6-5 presents the estimated baseline 846

CARB compliance levels for fabricator indus tries. The baseline CARB compliance category 847

represents the percent of fabricators estimated to be selling their products in California, and thus 848

using certified panels and comply ing with the recordkeeping requi rements. Additional details 849

are provided in the Economic Analysis for the rulemaking. 850

851

Exhibit 6-5: Baseline CARB Compliance of Fabricator Industries

NAICS NAICS Definition Baseline CARB

Compliance a



# 321211 b 

# Hardwood Veneer and Plywood Manufacturing 100%

321219 b 

# Reconstituted Wood Product Manufacturing 100%

337110 b 

# Wood Kitchen Cabinet and Countertop Manufacturing 50%

337129 b 

# Wood Television, Radio, and Sewi ng Machine Cabinet Manufacturing 50%

321911 b 

# Wood Window and Door Manufacturing 100%

337121 b 

# Upholstered House Furniture Manufacturing 100%

337122 b 

# Non-upholstered Wood Household Furniture Manufacturing 100%

337124 b 

# Metal Household Furniture Manufacturing 100%

337127 b 

# Institutional Furniture Manufacturing 100%

337211 b 

# Wood Office Furniture Manufacturing 100%

337214 b 

# Office Furniture (except Wood) Manufacturing 100%

337215 b 

# Showcase, Partition, Shelving, and Locker Manufacturing 100%

321918 c 

# Other Millwork (incl uding Flooring) 9.23%

337212 c 

# Custom Architectural W oodwork and Millwork 9.83%

321999 c 

# All Other Miscellaneous W ood Product Manufacturing 7.84%

336213 c 

# Motor Home Manufacturing 100%

336214 c 

# Travel Trailer and Camper 100%

321991 c 

# Manufactured Home (Mobile Home) Manufacturing 10.90%

321992 c 

# Prefabricated Building Manufacturing 5.92%

339950 c 

# Sign Manufacturing 10.09%

Notes: a. Baseline CARB compliance represents the percent of fa bricators estimated to be selling their products in California,

and thus using certified panels and comply ing with the recordkeeping requirements.

b. Assumptions based on conversatio ns with industry associations.

c. Estimated as the percentage of establishments in CA.



# Sources: U.S. Census Bureau 2009, 2010i



# 852

Fabricators incurring Recordkeeping and Labeling Costs 853

854

The proposed recordkeeping and labeling requi rements under the TSCA Title VI rule are 855

similar to the requirements under the CARB ATCM. As a result, firms that manufacture or sell 856

composite wood products destined for Califor nia markets have experience implementing 857

recordkeeping and labeling requirements that are si milar to the proposed TSCA Title VI rule. To 858

9 

# Conversations with industry represente d informed assumptions for the following fabricator NAICS codes: 321211, 321219,

337110, 337129, 321911, 337121, 337122, 337127, 337211, 337214, 337215, 336213, and 336214.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 24 of 99 

# learn about the experiences of the firm s who are complying with the CARB ATCM 859

requirements, two questionnaires (o ne for fabricators and one for w holesalers) were administered 860

to fewer than ten respondents per questionnaire. 10 

# These questionnaires asked respondents for 861

descriptions of the changes they made and the costs they incurred to implement any changes. 862

This information is described in detail in the Economic Analysis, and is summarized below. 863

864

Nine fabricator firms were administered telephone questionnaires that asked about the 865

changes that were made and the costs that were incurred in order to achieve compliance with the 866

CARB recordkeeping and labeling requirements. Based on the questionnaire results, most 867

fabricators are not estimated to incur initial costs for recordkeeping, because their existing 868

recordkeeping systems are adequate and do not need to be modified to comply with the TSCA 869

Title VI requirements. It is estimated that 11 percent of the fabricators that are not currently 870

complying with the CARB ATCM because their pr oducts are not sold in California will incur 871

additional recurring recordkeeping costs. 872

873

The fabricator questionnaire respondent that reported incu rring recurring recordkeeping 874

costs indicated that their recu rring recordkeeping burden associ ated with the CARB ATCM was 875

about 10 hours per week (equivalent to 520 hours per year), which this analysis estimates to be 876

about $12,917 per year. However, the burden reported by this fabric ator questionnaire 877

respondent seems unlikely to be representative for all the fabricator firms that incur a recurring 878

recordkeeping burden. This fabricator questionn aire respondent was a firm with employees, but 879

smaller firms, such as nonemployer firms, ar e likely to need much less time than 10 hours per 880

week (about a quarter of a 40 hour work week) to perform the necessary reco rdkeeping activities. 881

Since the recordkeeping requirements entail keeping track of com posite wood materials 882

purchased and shipments that contain composite wood products, it is exp ected that the burden 883

associated with keeping records will typically in crease with the volume of a fabricator’s sales. 884

Thus, to estimate the recurring recordkeeping burd en for nonemployer fabricators, the analysis 885

assumes that there is a fixed-co st component of the r ecurring recordkeeping co sts associated with 886

two hours of labor and a variable co st component that is proportional to a firm’s revenue. It is 887

assumed that fabricators will use clerical staff to perform these activities. 888

889

For employer firms, the average recurri ng recordkeeping burden is estimated as 520 890

hours per year (based on 2 hours of fixed cost la bor, with the remaining hours of variable cost 891

labor). For nonemployer firms, the variable cost component is calculated by subtracting the two 892

hours of fixed cost labor (at a cost of $49.68) from the total reported cost ($12,917) and then 893

dividing by the estimated average revenue for affected employer fabricators ($4,241,245). The 894

resulting variable cost component (0.30338 pe rcent of revenue) is multiplied by average 895

nonemployer revenues ($42,690) and results in recurring recordkeeping costs of $179.19, or 896

approximately 7.21 labor hours per year. 897

898

Several of the respondents indicated that th ey already had labeling systems in place and 899

therefore they did not incur any significant costs associated with CARB’s labeling requirements. 900

10 

# Retailers are also subject to the chain of custody and reco rdkeeping requirements. The California Retailers Association

indicated that retailers’ customary business practices were generally sufficient to meet the chain of custody requirements in t he

CARB ATCM (Personal Communication wi th CRA 2011), so retailers were not administered a questionnaire.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 25 of 99 

# However, this analysis assumes that these firms did in fact incur small costs associated with 901

making small changes to their labels. One of the firms that did report minor labeling costs 902

reported that it took “a few hours” to change over to using the new labels. The analysis assumes 903

that “a few hours” is 3 hours for the purpose of es timating costs. The analysis also assumes that 904

67 percent of firms that are not already comply ing with the CARB ATCM, and all firms that are 905

already complying with the CARB ATCM, incur the costs associated with 3 labor hours. 11 

# Two 906

other firms that responded to th e questionnaire reported more subs tantial costs associated with 907

setting up their labeling systems and therefore, it is assumed th at the remaining 33 percent of 908

firms that are not already complying with the CARB ATCM will incur the average burden 909

reported by these two firms (100 hours). 12 

# It is assumed that fabricat ors will use technical labor 910

to perform these activities. Since none of the fabricator respondents re ported any recurring costs 911

for labeling, no recurring labeling costs are estimated. 912

913

(D). Wholesalers 914

915

While all wholesalers will incur the burden a ssociated with rule familiarization, only a 916

fraction will incur incremental burdens associat ed with recordkeeping and labeling. As with 917

fabricators, this is because 1) many wholesal ers are already complying with the CARB ATCM 918

because they handle products that are ultimately sold in California, and 2) many wholesalers’ 919

existing recordkeeping systems are expected to meet the proposed rule’s requirements without 920

any significant modifications. Like fabricators, wholesal ers who import composite wood 921

products are required to take “reasonable pr ecautions” to ensure that the composite wood 922

products and finished goods they acquire are in compliance with th e applicable emission 923

standards. These records must be kept for five years. 924

925

Wholesalers that are defined as manuf acturers under TSCA (because they import, 926

produce, or manufacture composite wood panels, co mponent parts, or finished goods) must keep 927

records showing the date of purch ase, the supplier, and all precau tions taken to ensure that the 928

product meets the emissions standards. Wholesal ers that are not define d as manufacturers under 929

TSCA (because they do not import such products) mu st keep invoices and bills of lading. Most 930

wholesalers are likely to keep invoices and bills of lading as pa rt of their customary business 931

practices. 13 

# Therefore the requirement to keep invoi ces and bills of lading is not assumed to 932

impose any additional burden on whol esalers that do not import products. 14 

# 933

934

Baseline Compliance for Wholesalers 935

936

This analysis assumes that wholesale firms with establishments in California are 937

complying with the recordkeeping requirements of the CARB ATCM and therefore would not 938

incur the burden associated with some of the proposed rule’s requirements. Because data on the 939

number of firms with at least one establishmen t in California are not available, the following 940

11 

# 67 percent is calculated as 4/6 since 4 of the 6 firms that reported labeling their products are assumed to have these costs.

12 

# 33 percent is calculated as 2/6 since 6 firms reported that they labeled their product.

13 

# For example, the Internal Revenue Serv ice (U.S. Internal Revenue Service 2007) r ecommends that firms keep invoices in

order to document their assets, expens es, gross receipts, and purchases.

14 

# While wholesalers that do not import co mposite wood products are assumed to m eet the proposed rule’s recordkeeping

requirements with documents kept as part of their customary busine ss practices, these firms do c ount toward the respondent

and response totals in Exhibit 6-8 through Exhibit 6-13.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 26 of 99 

# steps must be taken to estimate baseline comp liance for each affected industry: (1) use 2007 941

Economic Census data to identify th e number of affected wholesale firms 15 

# (2) estimate the 942

number of single-unit firms in California; (3) estimate the number of multi-unit firms with at 943

least one establishment in California; and (4) es timate baseline compliance as the percentage of 944

U.S. firms with at least one establishment in Califor nia. Note that this approach may lead to an 945

understatement of the level of baseline comp liance among wholesalers because they may sell 946

products in states where they do not have phys ical locations. In addition, two wholesale 947

industries -- Furniture Merchant Wholesaler s (423210) and Home Furnishing Merchant 948

Wholesalers (423220) -- are assumed to be fully compliant with the CARB ATCM chain of 949

custody requirements in the baseline. 16 

# Exhibit 6-6 presents a summary of the baseline 950

compliance estimates for wholesale industries. The Economic Analysis for the rule provides a 951

detailed description of the baseline calculations. 952

15 

# U.S. Census Bureau 2009, 2010d, j.

16 

# Personal Communication with AHFA 2010, Pe rsonal Communication with BIFMA 2010.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 27 of 99 Exhibit 6-6: Baseline CARB Compliance of Wholesale Industries

NAICS NAICS Description Baseline

CARB Compliance a



# 423210 b 

# Furniture merchant wholesalers 100%

423220 b 

# Home furnishing merchant wholesalers 100%

423310 Lumber, plywood, millwork, and wood panel merchant wholesalers 12.3%

423320 Brick, stone, and related construction material merchant wholesalers 14.9%

423330 Roofing, siding, and insulation ma terial merchant wholesalers 13.7%

423390 Other construction material merchant wholesalers 14.6%

423410 Photographic equipment and supp lies merchant wholesalers 24.8%

423420 Office equipment merchant wholesalers 18.1%

423430 Computer and software merchant wholesalers 23.9%

423440 Other commercial equipment merchant wholesalers 13.0%

423450 Medical equipment merc hant wholesalers 15.9%

423490 Other professional equipment and s upplies merchant wholesalers 14.8%

423510 Metal service centers and other metal merchant wholesalers 15.1%

423610 Elec. equip. and wiring me rchant wholesalers 19.3%

423620 Electric appliance merc hant wholesalers 25.2%

423690 Other electronic parts and equipm ent merchant wholesalers 26.1%

423710 Hardware merchant wholesalers 19.4%

423720 Plumbing equip. mercha nt wholesalers 18.8%

423730 HVAC equip. merchant wholesalers 14.5%

423740 Refrigeration equipment and supp lies merchant wholesalers 22.2%

423810 Construction equipment merchant wholesalers 11.4%

423820 Farm and garden machinery and e quipment merchant wholesalers 9.5%

423830 Industrial machinery and equipm ent merchant wholesalers 12.3%

423840 Industrial supplies merc hant wholesalers 16.2%

423850 Service establishment equipment and supplies merchant wholesalers 9.9%

423910 Sporting and recreational goods and s upplies merchant wholesalers 21.1%

423920 Toy and hobby goods and supplie s merchant wholesalers 30.5%

423930 Recyclable material me rchant wholesalers 13.3%

423940 Jewelry merchant wholesalers 19.6%

423990 Other miscellaneous durable goo ds merchant wholesalers 17.9%

424110 Printing and writing paper merchant wholesalers 17.8%

424120 Stationery and office supplie s merchant wholesalers 15.1%

424130 Industrial and personal service pa per merchant wholesalers 17.2%

424210 Drugs and druggists' sundries merchant wholesalers 21.7%

424310 Piece goods, notions, and other dry goods merchant wholesalers 29.6%

424320 Men's and boys' clothing and furn ishings merchant wholesalers 24.6%

424330 Women's and children's clothi ng merchant wholesalers 32.0%

424340 Footwear merchant wholesalers 33.1%

424410 General line grocery merchant wholesalers 19.7%

424420 Packaged frozen food merchant wholesalers 19.6%

424450 Confectionery mercha nt wholesalers 15.1%

424460 Fish and seafood merc hant wholesalers 12.3%

424480 Fresh fruit and vegetable me rchant wholesalers 23.2%

424490 Other grocery and related produc ts merchant wholesalers 18.8%

424510 Grain and field bean merchant wholesalers 5.2%

424610 Plastics materials and basic forms a nd shapes merchant wholesaler 18.1%

424690 Other chemical and allied produ cts merchant wholesalers 13.6%

424910 Farm supplies mercha nt wholesalers 13.1%

424920 Book, periodical, and newspape r merchant wholesalers 16.4%

424930 Flower, nursery stock, & florists' supplies merchant wholesalers 17.9%

424940 Tobacco and tobacco product merchant wholesalers 8.1%

424950 Paint, varnish, and supplie s merchant wholesalers 18.0%

424990 Other miscellaneous nondurable goods merchant wholesalers 24.4%

Notes: a. Baseline CARB compliance represents the percent of w holesalers estimated to be selling their products in California,

and thus complying with the recordkeeping requirements.

b. Two wholesale industries, Furniture Merchant Wholes alers (423210) and Home Furnishing Merchant Wholesalers

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 28 of 99 Exhibit 6-6: Baseline CARB Compliance of Wholesale Industries

NAICS NAICS Description Baseline

CARB Compliance a



# (423220) are assumed to be fully compliant with the CARB AT CM chain of custody requirements in the baseline, based on

conversation with industry (Personal Communication w ith AHFA 2010, Personal Communication with BIFMA 2010).

Sources: U.S. Census Bureau 2010d, j



# 953

Wholesalers incurring Recordkeeping and Labeling Costs 954

955

Seven wholesale firms were administered te lephone questionnaires that asked about the 956

changes that were made and the costs that were incurred in order to achieve compliance with the 957

CARB recordkeeping and labeling requirements. The questionnaire a nd the calculation of 958

recordkeeping costs are described in detail in the Economic Analysis, and are summarized 959

below. 960

961

Based on the questionnaire responses, this analysis assumes that 57 percent of 962

wholesalers that import compos ite wood products and/or article s that contain composite wood 963

products will incur initia l recordkeeping costs asso ciated with 59.15 labor hours. 17 

# As indicated 964

above, this analysis estimates that 28 percen t of domestic wholesalers import composite wood 965

products and/or articles that co ntain composite wood products. In addition, the analysis assumes 966

that one percent of wholesalers will repackage their products and so will incur the same burden 967

as the fabricators who are assumed to incur more substantial initial labeling costs (an average of 968

100 hours). However, the recurring recordk eeping burden reported by the wholesaler 969

questionnaire respondent (forty fi ve minutes per day) seems unlikely to be representative for all 970

the wholesaler firms that incur this type of burden. This w holesaler questionnaire respondent 971

was a firm with employees, but smaller firms, su ch as nonemployer firms, are likely to need 972

much less time than 3.75 hours per week (nearly 10% of a 40 hour work week) to perform the 973

necessary recordkeeping activities. Since the recordkeeping requi rements entail keeping track of 974

composite wood materials purchased and shipment s that contain composite wood products, it is 975

expected that the burden associated with keepi ng records will typically increase with the volume 976

of a wholesaler’s sales. Thus, to estimate the recurring recordkeepi ng burden for nonemployer 977

wholesalers, the analysis assumes that ther e is a fixed-cost com ponent of the recurring 978

recordkeeping costs associated w ith two hours of labor and a vari able cost component that is 979

proportional to a firm’s revenue. It is assume d that wholesalers will use clerical labor for 980

recordkeeping activities and technical labor for labeling. 981

982

For employer firms that import composite wood products, the recurring recordkeeping 983

cost is estimated as 195 hours per year (based on 2 hours of fixed cost labor, with the remaining 984

hours of variable cost labor). For nonemployer firms that import composite wood products, the 985

variable cost component is calc ulated by subtracting two hours of fixed labor cost (at a cost of 986

$51.08) from the total reported annual cost ($4,980) and then dividing by the estimated average 987

revenue for affected employer wholesalers ($8,3 08,417). The resulting variable cost component 988

(0.05933 percent of revenue) is multiplied by average nonemployer revenues ($82,542) and 989

results in costs of $100.05, or 3.92 labor hours per year. 990

17 

# The average annual burden for wholesalers with initial recordk eeping costs was calculated as the average burden for the two

firms that quantified costs. One firm i ndicated that they spent $2,000 for a “small amount of labor.” This was divided by the

clerical wage rate in the wholesale trade industry ($25.54) and equals approximately 78.3 hours. The other firm indicated that

they spent 40 labor hours. As a result, the average firm incurred a labor burden of a pproximately 59.15 hours.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 29 of 99 

# 991

It is assumed that one percent of wholesal ers incur labeling burde n, either because they 992

are repackaging goods that were originally labele d on the packaging instead of on the individual 993

items, or because they are replacing an original label applied by the panel producer or fabricator 994

with a label listing a different company name. It is also assumed that these wholesalers incur the 995

same burden as the fabricators who are assumed to incur more substantial initial labeling burden 996

(an average of 100 hours). 997

998

(E). Retailers 999

1000

It is assumed that retailers do not import composite wood products directly (without a 1001

wholesaler), and thus are not subject to the rule’s chain of custody requirements. 18 

# Retailers that 1002

do not import composite wood products must k eep invoices and bills of lading. Retailer’s 1003

customary business practices are assumed to be ge nerally sufficient to meet the proposed rule’s 1004

recordkeeping requirements. 19 

# Therefore the recordkeeping requirements are not assumed to 1005

impose any additional burden on retailers. 20 

# In addition, assuming they do not modify the 1006

packaging of the composite wood products they pur chase, retailers are no t required to modify 1007

their labeling system to comply w ith the proposed rule. 1008

1009

Baseline Compliance for Retailers 1010

1011

Exhibit 6-7 presents a summary of the baseline compliance estimates for retail industries. 1012

Baseline CARB compliance was calculated in the same manner as described the wholesale 1013

section (i.e., by determining the number of firms w ith at least one establishment in California). 1014

Additional detail is provided in the Economic Analysis for the rulemaking. 1015

1016

18 

# Because all foreign products are assumed to be imported by wholesalers, the burden of the rule’s chain of custody

requirements for any retailers that do import products dir ectly is accounted for under the wholesaler category.

19 

# Personal Communication with CRA 2011.

20 

# While retailers are assumed to meet the pr oposed rule’s recordkeeping requirements with documents kept as part of their

customary business practices, thes e firms do count toward the respondent and res ponse totals in Exhibit 6-8 through Exhibit 6-

13.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 30 of 99 Exhibit 6-7: Baseline CARB Compliance of Retail Industries

NAICS NAICS Description Baseline CARB

Compliance

441110 New car dealers 11.5%

441210 Recreational vehicle dealers 11.6%

441221 Motorcycle, ATV, and persona l watercraft dealers 10.7%

441229 All other motor vehicle dealers 10.6%

441320 Tire dealers 14.7%

442110 Furniture stores 15.2%

442210 Floor covering stores 11.2%

442291 Window treatment stores 15.0%

442299 All other home furnishings stores 15.4%

443111 Household appliance stores 10.5%

443112 Radio, television, and other electronics stores 16.8%

443120 Computer and software stores 15.1%

443130 Camera and photographi c supplies stores 17.8%

444110 Home centers 16.2%

444120 Paint and wallpaper stores 19.0%

444130 Hardware stores 9.7%

444190 Other building material dealers 12.3%

444210 Outdoor power equipment stores 5.7%

444220 Nursery, garden center, and farm supply stores 8.7%

445110 Supermarkets and other grocery (except convenience) stores 15.3%

445120 Convenience stores 11.2%

445210 Meat markets 10.9%

445220 Fish and seafood markets 10.3%

445230 Fruit and vegetable markets 10.4%

445291 Baked goods stores 12.4%

445292 Confectionery and nut stores 13.9%

445299 All other specialty food stores 12.2%

445310 Beer, wine, and liquor stores 11.3%

446110 Pharmacies and drug stores 15.5%

446120 Cosmetics, beauty supplies, and perfume stores 12.4%

446130 Optical goods stores 16.1%

446191 Food (health) supplement stores 13.1%

446199 All other health and personal care stores 13.3%

447110 Gasoline stations with convenience stores 15.0%

447190 Other gasoline stations 13.1%

448110 Men's clothing stores 18.0%

448120 Women's clothing stores 17.0%

448130 Children's and infants' clothing stores 15.6%

448140 Family clothing stores 19.6%

448150 Clothing accessories stores 15.3%

448190 Other clothing stores 15.2%

448210 Shoe stores 19.1%

448310 Jewelry stores 14.4%

448320 Luggage and leather goods stores 16.1%

451110 Sporting goods stores 13.5%

451120 Hobby, toy, and game stores 14.2%

451130 Sewing, needlework, and piece goods stores 13.2%

451140 Musical instrument a nd supplies stores 12.2%

451211 Book stores 15.6%

451212 News dealers and newsstands 11.5%

451220 Prerecorded tape, compact disc, and record stores 14.5%

452111 Department stores (except disc ount department stores) 70.8%

452112 Discount department stores 74.7%

452910 Warehouse clubs and supercenters 92.0%

452990 All other general merchandise stores 9.8%

453110 Florists 9.2%

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 31 of 99 Exhibit 6-7: Baseline CARB Compliance of Retail Industries

NAICS NAICS Description Baseline CARB

Compliance

453210 Office supplies and stat ionery stores 17.6%

453220 Gift, novelty, and souvenir stores 12.8%

453910 Pet and pet supplies stores 12.9%

453920 Art dealers 13.7%

453930 Manufactured (mobile) home dealers 7.3%

453991 Tobacco stores 12.7%

453998 All other miscellaneous store retailers (except tobacco

stores) 11.5%

454111 Electronic shopping 10.3%

454113 Mail-order houses 11.3%

454210 Vending machine operators 11.0%

454311 Heating oil dealers 11.7%

454312 Liquefied petroleum gas (bottled gas) dealers 20.4%

454390 Other direct selling establishments 11.1%

Total Retailers 13.2%

a. Baseline CARB compliance represents the per cent of retailers estimated to be selling their

products in California, and therefore not exp ected to incur supplier notification costs.



# Sources:U.S. Census Bureau 1997, 2010g, k, l



# 1017

(F). Summary 1018

1019

Exhibit 6-8 and Exhibit 6-9 summarize the to tal number of responde nts, total burden per 1020

respondent and total burden for each response acti vity over the first year, and second and third 1021

years of the ICR, respectively. Exhibit 6-10 pres ents the average total value for those variables 1022

over the first three years of the rule (i.e., without accounting for the baseline compliance with the 1023

CARB ATCM). Exhibit 6-11 through Exhibit 6-13 mirror the previous three tables, except that 1024

they account for incremental burdens (excluding ba seline burden and cost). Note that most 1025

respondents are incurring burdens for multiple activi ties listed in these exhibits. As indicated, 1026

the average annual burden over the fi rst three years of th e rule is estimated to be approximately 1027

8.0 million hours, while the incremental burden over this time period is estimated at 5.9 million 1028

hours. The domestic burden accounts for approximately 62.8 percent and 66.2 percent of the 1029

totals, respectively. 1030

1031

1032

1033*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 32 of 99Exhibit 6-8: Total (including baseline) First YearBurden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivitiesPerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal1. Rule FamiliarizationProducers3M3701,1291,49914.001,4804,5165,996Fabricators4M79,70131,083110,78414.00318,804124,332443,136WholesalersM85,56033,368118,92814.00342,240133,472475,712RetailersM759,048-759,04814.003,036,192-3,036,1922. Certification Fee---------3. Initial On-site AuditWith Existing CertificationsM8276484614.003283,0563,384Without Existing Certifications3,5M28836565318.002,3042,9205,2244. Develop Quality Control Manual3M288365653140.0011,52014,60026,1205. Qualifying Test6. Qualifying Test Shipment61 ProductM1112914010.50665702 Products3,5M28836565320.251441833277. Correlation Test1 ProductM11129140101.001101,2901,4002 Products3,5M288365653201.005,7607,30013,0608. Quarterly On-site Audit7Standard3,6M3397131,05234.004,0688,55612,624NAF (With New Certification)M1727629314.00681,1041,172NAF (With Existing Certification)M14140154-4.00---9. Large Scale Testing Fee---------10. Large Scale Testing Shipment7Standard Certification3,5M3397131,05230.505091,0701,578NAF (With New Certification)M1727629310.509138147NAF (With Existing Certification)M14140154-0.50---11. On-site Audit Travel---------12. Desk Audits8Standard Certification3,5M3397131,05281.002,7125,7048,416NAF (With New Certification)M1727629321.003455258613. Purchase of Small Chamber TestingUnit9---------14. Quality Control Testing10Standard Certification3,6M3397131,0522602.00176,280370,760547,040New NAF CertificationM17276293652.002,21035,88038,09015. Lost Product---------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 33 of 99Exhibit 6-8: Total (including baseline) First YearBurden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivitiesPerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal16. Initial Recordkeeping11C8,57611,94520,521159.15507,270706,5471,213,81717. Recurring Recordkeeping12Producers3,5M3701,1291,49915219,24058,70877,948Fabricators with burden- Employers4C3,6301,4225,0521520.001,887,600739,4402,627,040Fabricators with burden - Nonemployers4C5,1371,9977,13417.2137,03814,39851,436Fabricators without burdenC70,93427,66498,5981----Wholesalers with burden - EmployersC4,2085,86110,0691195.00820,5601,142,8951,963,455Wholesalers with burden - NonemployersC6,0948,48714,58113.9223,88833,26957,158Wholesalers without burdenC75,25819,02094,2781----RetailersC759,048-759,0481----18. Initial Labeling13Minor Changes - Producers4,5C931,0211,11416.005586,1266,684Minor Changes - Fabricators4T64,29024,98689,27613.00192,87074,958267,828Major Changes - Producers3C2771083851100.0027,70010,80038,500Major Changes - Fabricators andWholesalers4T16,2666,34422,6101100.001,626,600634,4002,261,000Total - Year 19,048,1024,137,03913,185,140Notes: 1. This column indicates the category of labor associatedwith the activity. "M", "T", and "C" stand for managerial, technical, and clerical labor, respectively.2. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value ofimports for the affected fabricator NAICS to the total domestic value ofshipments for these NAICS (which is 39 percent) and 2) applying itto the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export composite woodproducts or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis,which assumes that there is uncertified product being imported into theU.S., the analysis estimates the numberof certified foreign mills as 20 percent ofthe total number of certified mills.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.5. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by a TPCas a result of the TSCA Title VI rule.6. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform correlation testing because it isassumed that their previous testing is sufficient.7. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Although mills are likely to incur somelabor burden while learning how to use the small chamber testing unit, it is not estimated in this analysis.10. This analysis assumes that composite panel producers testeach production line once daily. Composite panel producers needto perform 3 months of routine small scale testing to become NAFcertified.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 34 of 99Exhibit 6-8: Total (including baseline) First YearBurden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivitiesPerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal11. Recordkeeping costs are incurred by composite panel producers (including the estimated twopercent of wood veneer laminated product producers defined as hardwood plywood producers),fabricators, and wholesalers that importcomposite wood products or articles that contain composite wood products. However, composite panel producers and fabricatorsare not expected to need to makeany initial changes to theirrecordkeeping systems. This analysis assumes that 28 percent of domestic wholesalers import composite wood products or articles that contain composite wood products. Inaddition, it is assumed that 57 percent of wholesalers are notalready complying with the CARB ATCM and will have initial burden to change their recordkeeping systems to comply with the TSCA TitleVI rule.12. While recordkeeping is required for all respondents, not all entities will incur recordkeepingburden and costs. This analysis assumes that some fabricators and wholesalers have existingrecordkeeping systems that are sufficient to meet the rule's requirements. Based on responses to EPA’s questionnaires, it is assumed that that 11 percent of fabricators and 43 percent of wholesalers willhave recurring recordkeeping costs. However, the analysis assumes that only 28 percent of domestic wholesalers import composite wood products or articles thatcontain composite wood products andthus 43% of that 28% incur recurring recordkeeping burden. The customary business practices ofthe remaining fabricators, wholesalers, and all retailers are assumed to be generally sufficient to meet theproposed rule’s recordkeeping requirements.For fabricators and wholesalers with burden, the analysis assumes that there is afixed-cost component of the recurring recordkeeping costs associated withtwo hours of labor and a variable cost component that is proportional to a firm’s revenue. The variable cost factor is estimated by subtracting the fixed cost from the total reported cost and then dividingby the estimated average revenue for affected employer category.For fabricators, the fixed cost is $49.68, the total reportedcost is $12,916.80, and the average revenue is $4,241,245. For wholesalers,the fixed cost is $51.08, the total reported cost is $4,890.30,and the average revenue is $8,308,417. The respective variablecost factors are 0.30338 percent and 0.05933 percent of revenue. Therecurring recordkeeping burdens for employer fabricators and wholesalers are 520 and 195 hours per year, respectively. For nonemployers, the average recurring recordkeeping burden is estimated as thesum of the burden associated with the fixed cost (2 hours) andthe burden associated with the respective variable costs, whichare calculated as 0.30338 percent ofaverage nonemployer fabricatorrevenues ($42,690) and 0.05933 percent of average nonemployer wholesaler revenues ($82,542). The resulting average fabricatorand wholesaler nonemployer recurring recordkeeping burdens are 7.21and 3.92 hours per year, respectively.13. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include their name, the date the finished goodwas produced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the products theypurchase. This analysis assumes that all producers, 67 percent of fabricators that are not already complying with the CARB ATCM, and all fabricators that are already complying with the CARBATCM 33 percent of fabricators, and 1 percent of wholesalers will incur the cost associated with 3 hours of labor for making small changes to their labels. The remaining fabricators and one percent ofwholesalers are assumed to incur the average cost of the two firms that reported initial labeling costs in the fabricator questionnaire (see the Economic Analysis for more details).1034*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 35 of 99Exhibit 6-9: Total (including baseline) Second and Third Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal1. Rule FamiliarizationProducers3M--------Fabricators4M--------WholesalersM--------RetailersM--------2. Certification Fee---------3. Initial On-site AuditWith Existing CertificationsM--------Without Existing Certifications3,5M--------4. Develop Quality Control Manual3M--------5. Qualifying Test---------6. Qualifying Test Shipment1 ProductM--------2 Products3,5M--------7. Correlation Test61 ProductM--------2 Products3,5M--------8. Quarterly On-site Audit7Standard3,6M3397131,05244.005,42411,40816,832NAF (With New Certification)M1727629314.00681,1041,172NAF (With Existing Certification)M1414015414.00565606169. Large Scale Testing Fee---------10. Large Scale Testing Shipment7Standard Certification3,5M3397131,05240.506781,4262,104NAF (With New Certification)M1727629310.509138147NAF (With Existing Certification)M1414015410.507707711. On-site Audit Travel---------12. Desk Audits8Standard Certification3,5M3397131,05281.002,7125,7048,416NAF (With New Certification)M--------13. Purchase of Small ChamberTesting Unit9---------14. Quality Control Testing10Standard Certification3,5M3397131,0522602.00176,280370,760547,040New NAF CertificationM--------15. Lost Product16. Initial Recordkeeping11C--------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 36 of 99Exhibit 6-9: Total (including baseline) Second and Third Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal17. Recurring Recordkeeping12Producers3,5M3701,1291,499152.0019,24058,70877,948Fabricators with burdenEmployers4C3,6301,4225,0521520.001,887,600739,4402,627,040Fabricators with burden -Nonemployers4C5,1371,9977,13417.2137,03814,39851,436Fabricators without burdenC70,93427,66498,5981----Wholesalers with burden -EmployersC4,2085,86110,0691195.00820,5601,142,8951,963,455Wholesalers with burden -NonemployersC6,0948,48714,58113.9223,88833,26957,158Wholesalers without burdenC75,25819,02094,2781----RetailersC759,048-759,0481----19. Initial Labeling4,13Minor Changes - Producers4,5C--------Minor Changes - Fabricators4T--------Major Changes - Producers3C--------Major Changes - Fabricators andWholesalers4T--------Total - Years 2 and 32,973,5602,379,8805,353,441Notes: 1. This column indicates the category of labor associatedwith the activity. "M", "T", and "C" stand for managerial, technical, and clerical labor, respectively.2. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value ofimports for the affected fabricator NAICS to the total domestic value ofshipments for these NAICS (which is 39 percent) and 2) applying itto the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export composite woodproducts or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis,which assumes that there is uncertified product being imported into theU.S., the analysis estimates the numberof certified foreign mills as 20 percent ofthe total number of certified mills.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.5. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.6. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform correlation testing because it isassumed that their previous testing is sufficient.7. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 37 of 99Exhibit 6-9: Total (including baseline) Second and Third Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal9. Although mills are likely to incur somelabor burden while learning how to use the small chamber testing unit, it is not estimated in this analysis.10. This analysis assumes that composite panel producers testeach production line once daily. Composite panel producers needto perform 3 months of routine small scale testing to become NAFcertified.11. Recordkeeping is required for composite panel producers (including the estimated two percent of wood veneer laminated product producers defined as hardwoodplywood producers), fabricators,and wholesalers that import composite wood products or articlesthat contain composite wood products. However, composite panelproducers and fabricatorsare not expected to need to make any initialchanges to their recordkeeping systems. This analysis assumes that 28 percent of domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, itis assumed that 57 percent of wholesalers are not already complying with the CARB ATCM and willhave initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.12. While recordkeeping is required for all respondents, not all entities will incur recordkeepingburden and costs. This analysis assumes that some fabricators and wholesalers have existingrecordkeeping systems that are sufficient to meet the rule's requirements. Based on responses to EPA’s questionnaires, it is assumed that that 11 percent of fabricators and 43 percent of wholesalers willhave recurring recordkeeping costs. However, the analysis assumes that only 28 percent of domestic wholesalers import composite wood products or articles thatcontain composite wood products andthus 43% of that 28% incur recurring recordkeeping burden. The customary business practices ofthe remaining fabricators, wholesalers, and all retailers are assumed to be generally sufficient to meetthe proposed rule’s recordkeeping requirements. For fabricatorsand wholesalers with burden, the analysis assumes that there is a fixed-cost component of the recurring recordkeeping costs associatedwith two hours of labor and a variable cost component that is proportional to a firm’s revenue. The variable cost factor is estimated by subtracting the fixed costfrom the total reported cost and thendividing by the estimated average revenue for affected employercategory. For fabricators, the fixed cost is $49.68, the totalreported cost is $12,916.80, and the average revenue is $4,241,245. Forwholesalers, the fixed cost is $51.08, the total reported costis $4,890.30, and the average revenue is $8,308,417. The respective variable cost factors are 0.30338 percent and 0.05933 percent of revenue.The recurring recordkeeping burdens for employer fabricators and wholesalers are 520 and 195 hours per year, respectively. Fornonemployers, the average recurring recordkeeping burden is estimatedas the sum of the burden associated with the fixed cost (2 hours) and the burden associated withthe respective variable costs,which are calculated as 0.30338 percent of average nonemployer fabricatorrevenues ($42,690) and 0.05933 percent of average nonemployer wholesaler revenues ($82,542). The resulting average fabricatorand wholesaler nonemployer recurring recordkeeping burdens are 7.21and 3.92 hours per year, respectively.13. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include their name, the date the finished goodwas produced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the productsthey purchase This analysis assumes thatall producers, 67 percent of fabricators that are not already complying with the CARBATCM, and all fabricators that are already complying with the CARBATCM 33 percent of fabricators, and 1 percent of wholesalers will incur the cost associated with 3 hours of labor for making small changes to their labels. The remaining fabricators and one percent ofwholesalers are assumed to incur the average cost of the two firms that reported initial labeling costs in the fabricator questionnaire (see the Economic Analysis for more details).1035*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 38 of 99Exhibit 6-10: Three Year Average Burden Hours (including baseline), by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal1. Rule FamiliarizationProducers3M3701,1291,4990.33334.00004931,5051,998Fabricators4M79,70131,083110,7840.33334.0000106,25741,440147,697WholesalersM85,56033,368118,9280.33334.0000114,06944,486158,555RetailersM759,048-759,0480.33334.00001,011,963-1,011,9632. Certification Fee---------3. Initial On-site AuditWith Existing CertificationsM827648460.33334.00001091,0191,128Without Existing Certifications3,5M2883656530.33338.00007689731,7414. Develop Quality Control Manual3M2883656530.333340.00003,8404,8668,7065. Qualifying Test---------6. Qualifying Test Shipment1 ProductM111291400.33330.5000221232 Products3,5M2883656530.66670.250048611097. Correlation Test61 ProductM111291403.33331.0000374304672 Products3,5M2883656536.66671.00001,9202,4334,3538. Quarterly On-site Audit7Standard3,5M3397131,0523.66674.00004,97210,45715,429NAF (With New Certification)M172762931.00004.0000681,1041,172NAF (With Existing Certification)M141401540.66674.0000373734119. Large Scale Testing Fee---------10. Large Scale Testing Shipment7Standard Certification3,5M3397131,0523.66670.50006221,3071,929NAF (With New Certification)M172762931.00000.50009138147NAF (With Existing Certification)M141401540.66670.50005475111. On-site Audit Travel---------12. Desk Audits8Standard Certification3,5M3397131,0528.00001.00002,7125,7048,416NAF (With New Certification)M172762930.66671.00001118419513. Purchase of Small Chamber Testing Unit9---------14. Quality Control Testing10Standard Certification3,5M3397131,052260.00002.0000176,280370,760547,040New NAF CertificationM1727629321.66672.000073711,96012,69715. Lost Product---------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 39 of 99Exhibit 6-10: Three Year Average Burden Hours (including baseline), by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal16. Initial Recordkeeping11C8,57611,94520,5210.333359.1500169,073235,492404,56517. Recurring Recordkeeping12Producers3,5M3701,1291,4991.000052.000019,24058,70877,948Fabricators with burden- Employers4C3,6301,4225,0521.0000520.00001,887,600739,4402,627,040Fabricators with burden - Nonemployers4C5,1371,9977,1341.00007.210037,03814,39851,436Fabricators without burdenC70,93427,66498,5981.0000----Wholesalers with burden - EmployersC4,2085,86110,0691.0000195.0000820,5601,142,8951,963,455Wholesalers with burden - NonemployersC6,0948,48714,5811.00003.920023,88833,26957,158Wholesalers without burdenC75,25819,02094,2781.0000----RetailersC759,048-759,0481.0000----18. Initial Labeling4,13Minor Changes - Producers4,5C931,0211,1140.33336.00001862,0422,228Minor Changes - Fabricators4T64,29024,98689,2760.33333.000064,28424,98489,267Major Changes - Producers3C2771083850.3333100.00009,2323,60012,832Major Changes - Fabricators and Wholesalers4T16,2666,34422,6100.3333100.0000542,146211,446753,591Total - Three Year Average4,998,2062,965,5427,963,747Notes: 1. This column indicates the category of labor associatedwith the activity. "M", "T", and "C" stand for managerial, technical, and clerical labor, respectively.2. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value ofimports for the affected fabricator NAICS to the total domestic value ofshipments for these NAICS (which is 39 percent) and 2) applying itto the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export composite woodproducts or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis,which assumes that there is uncertified product being imported into theU.S., the analysis estimates the numberof certified foreign mills as 20 percent ofthe total number of certified mills.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.5. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.6. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform correlation testing because it isassumed that their previous testing is sufficient.7. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Although mills are likely to incur somelabor burden while learning how to use the small chamber testing unit, it is not estimated in this analysis.10. This analysis assumes that composite panel producers testeach production line once daily. Composite panel producers needto perform 3 months of routine small scale testing to become NAFcertified.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 40 of 99Exhibit 6-10: Three Year Average Burden Hours (including baseline), by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Total Burden (Hours)DomesticForeign2TotalDomesticForeignTotal11. Recordkeeping is required for composite panel producers (including the estimated two percent of wood veneer laminated product producers defined as hardwoodplywood producers), fabricators,and wholesalers that import composite wood products or articlesthat contain composite wood products. However, composite panelproducers and fabricatorsare not expected to need to make any initialchanges to their recordkeeping systems. This analysis assumes that 28 percent of domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, itis assumed that 57 percent of wholesalers are not already complying with the CARB ATCM and willhave initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.12. While recordkeeping is required for all respondents, not all entities will incur recordkeepingburden and costs. This analysis assumes that some fabricators and wholesalers have existingrecordkeeping systems that are sufficient to meet the rule's requirements. Based on responses to EPA’s questionnaires, it is assumed that that 11 percent of fabricators and 43 percent of wholesalers willhave recurring recordkeeping costs. However, the analysis assumes that only 28 percent of domestic wholesalers import composite wood products or articles thatcontain composite wood products andthus 43% of that 28% incur recurring recordkeeping burden. The customary business practices ofthe remaining fabricators, wholesalers, and all retailers are assumed to be generally sufficient to meetthe proposed rule’s recordkeeping requirements. For fabricatorsand wholesalers with burden, the analysis assumes that there is a fixed-cost component of the recurring recordkeeping costs associatedwith two hours of labor and a variable cost component that is proportional to a firm’s revenue. The variable cost factor is estimated by subtracting the fixed costfrom the total reported cost and thendividing by the estimated average revenue for affected employercategory. For fabricators, the fixed cost is $49.68, the totalreported cost is $12,916.80, and the average revenue is $4,241,245. Forwholesalers, the fixed cost is $51.08, the total reported costis $4,890.30, and the average revenue is $8,308,417. The respective variable cost factors are 0.30338 percent and 0.05933 percent of revenue.The recurring recordkeeping burdens for employer fabricators and wholesalers are 520 and 195 hours per year, respectively. Fornonemployers, the average recurring recordkeeping burden is estimatedas the sum of the burden associated with the fixed cost (2 hours) and the burden associated withthe respective variable costs,which are calculated as 0.30338 percent of average nonemployer fabricatorrevenues ($42,690) and 0.05933 percent of average nonemployer wholesaler revenues ($82,542). The resulting average fabricatorand wholesaler nonemployer recurring recordkeeping burdens are 7.21and 3.92 hours per year, respectively.13. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include their name, the date the finished goodwas produced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the productsthey purchase This analysis assumes thatall producers, 67 percent of fabricators that are not already complying with the CARBATCM, and all fabricators that are already complying with the CARBATCM 33 percent of fabricators, and 1 percent of wholesalers will incur the cost associated with 3 hours of labor for making small changes to their labels. The remaining fabricators and one percent ofwholesalers are assumed to incur the average cost of the two firms that reported initial labeling costs in the fabricator questionnaire (see the Economic Analysis for more details).1036*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 41 of 99Exhibit 6-11: Incremental First Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotal1. Rule FamiliarizationProducers3M3701,1291,49914.001,4804,5165,996Fabricators4M79,70131,083110,78414.00318,804124,332443,136WholesalersM85,56033,368118,92814.00342,240133,472475,712RetailersM759,048-759,04814.003,036,192-3,036,1922. Certification Fee---------3. Initial On-site AuditWith Existing CertificationsM8276484614.003283,0563,384Without Existing Certifications3,5M28836565318.002,3042,9205,2244. Develop Quality Control Manual3M288365653140.0011,52014,60026,1205. Qualifying Test---------6. Qualifying Test Shipment1 ProductM1112914010.50665702 Products3,5M28836565320.251441833277. Correlation Test61 ProductM11129140101.001101,2901,4002 Products3,5M288365653201.005,7607,30013,0608. Quarterly On-site Audit7Uncertified to Standard3,5M27715443134.003,3241,8485,172ULEF to StandardM1111412534.001321,3681,500NAF (With New Certification)M1121122214.00448448889. Large Scale Testing Fee---------10. Large Scale Testing Shipment7Uncertified to Standard3,5M27715443130.50416231647ULEF to StandardM1111412530.5017171188NAF (With New Certification)M1121122210.50610611111. On-site Audit Travel---------12. Desk Audits8Uncertified to Standard3,5M27715443181.002,2161,2323,448ULEF to StandardM1111412581.00889121,000NAF (With New Certification)M1121122221.002242244413. Purchase of Small Chamber TestingUnit9---------14. Quality Control Testing10---------Standard Certification3,5M2882685562602.00149,760139,360289,120New NAF CertificationM17276293652.002,21035,88038,09015. Lost Product---------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 42 of 99Exhibit 6-11: Incremental First Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotal16. Initial Recordkeeping11C8,57611,94520,521159.15507,270706,5471,213,81717. Recurring Recordkeeping12Producers3,5M3701,1291,499152.0019,24058,70877,948Fabricators with burden- Employers4C2,1768483,0241520.001,131,520440,9601,572,480Fabricators with burden -Nonemployers4C3,0541,1914,24517.2122,0198,58730,606Fabricators without burdenC42,31016,43758,7471----Wholesalers with burden - EmployersC2,6423,6806,3221195.00515,190717,6001,232,790Wholesalers with burden -NonemployersC3,8265,3319,15713.9214,99820,89835,895Wholesalers without burdenC47,26311,94459,2071----RetailersC658,150-658,1501----18. Initial Labeling4,13Minor Changes - Producers4,5C931,0211,11416.005586,1266,684Minor Changes - Fabricators4T64,29024,98689,27613.00192,87074,958267,828Major Changes - Producers3C2771083851100.0027,70010,80038,500Major Changes - Fabricators andWholesalers4T16,2666,34422,6101100.001,626,600634,4002,261,000Total - Year 17,935,0883,153,69211,088,777Notes: 1. This column indicates the category of labor associatedwith the activity. "M", "T", and "C" stand for managerial, technical, and clerical labor, respectively.2. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value ofimports for the affected fabricator NAICS to the total domestic value ofshipments for these NAICS (which is 39 percent) and 2) applying itto the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export composite woodproducts or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis,which assumes that there is uncertified product being imported into theU.S., the analysis estimates the numberof certified foreign mills as 20 percent ofthe total number of certified mills.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.5. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.6. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform correlation testing because it isassumed that their previous testing is sufficient.7. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Although mills are likely to incur somelabor burden while learning how to use the small chamber testing unit, it is not estimated in this analysis.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 43 of 99Exhibit 6-11: Incremental First Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotal10. This analysis assumes that composite panel producers testeach production line once daily. Composite panel producers needto perform 3 months of routine small scale testing to become NAFcertified.11. Recordkeeping is required for composite panel producers (including the estimated two percent of wood veneer laminated product producers defined as hardwoodplywood producers), fabricators,and wholesalers that import composite wood products or articlesthat contain composite wood products. However, composite panelproducers and fabricatorsare not expected to need to make any initialchanges to their recordkeeping systems. This analysis assumes that 28 percent of domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, itis assumed that 57 percent of wholesalers are not already complying with the CARB ATCM and willhave initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.12. While recordkeeping is required for all respondents, not all entities will incur recordkeepingburden and costs. This analysis assumes that some fabricators and wholesalers have existingrecordkeeping systems that are sufficient to meet the rule's requirements. Based on responses to EPA’s questionnaires, it is assumed that that 11 percent of fabricators and 43 percent of wholesalers willhave recurring recordkeeping costs. However, the analysis assumes that only 28 percent of domestic wholesalers import composite wood products or articles thatcontain composite wood products andthus 43% of that 28% incur recurring recordkeeping burden. The customary business practices ofthe remaining fabricators, wholesalers, and all retailers are assumed to be generally sufficient to meetthe proposed rule’s recordkeeping requirements. For fabricatorsand wholesalers with burden, the analysis assumes that there is a fixed-cost component of the recurring recordkeeping costs associatedwith two hours of labor and a variable cost component that is proportional to a firm’s revenue. The variable cost factor is estimated by subtracting the fixed costfrom the total reported cost and thendividing by the estimated average revenue for affected employercategory. For fabricators, the fixed cost is $49.68, the totalreported cost is $12,916.80, and the average revenue is $4,241,245. Forwholesalers, the fixed cost is $51.08, the total reported costis $4,890.30, and the average revenue is $8,308,417. The respective variable cost factors are 0.30338 percent and 0.05933 percent of revenue.The recurring recordkeeping burdens for employer fabricators and wholesalers are 520 and 195 hours per year, respectively. Fornonemployers, the average recurring recordkeeping burden is estimatedas the sum of the burden associated with the fixed cost (2 hours) and the burden associated withthe respective variable costs,which are calculated as 0.30338 percent of average nonemployer fabricatorrevenues ($42,690) and 0.05933 percent of average nonemployer wholesaler revenues ($82,542). The resulting average fabricatorand wholesaler nonemployer recurring recordkeeping burdens are 7.21and 3.92 hours per year, respectively.13. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include their name, the date the finished goodwas produced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the productsthey purchase. This analysisassumes that all producers, 67 percent of fabricators that are not already complying with the CARB ATCM, and all fabricators that are already complying with the CARBATCM will incur the cost associated with3 hours of labor for making small changes totheir labels. The remaining fabricatorsand one percent of wholesalers are assumed to incur the average cost ofthe two firms that reported initial labelingcosts in the fabricator questionnaire (see the Economic Analysis for more details).1037*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 44 of 99Exhibit 6-12: Incremental Second and Third Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotal1. Rule FamiliarizationProducers3M--------Fabricators4M--------WholesalersM--------RetailersM--------2. Certification Fee---------3. Initial On-site AuditWith Existing CertificationsM--------Without Existing Certifications3,5M--------4. Develop Quality Control Manual3M--------5. Qualifying Test---------6. Qualifying Test Shipment1 ProductM--------2 Products3,5M--------7. Correlation Test61 ProductM--------2 Products3,5M--------8. Quarterly On-site Audit7Uncertified to Standard3,5M27715443144.004,4322,4646,896ULEF to StandardM1111412534.001321,3681,500NAF (With New Certification)M1121122214.00448448889. Large Scale Testing Fee---------10. Large Scale Testing Shipment7Uncertified to Standard3,5M27715443140.50554308862ULEF to StandardM1111412530.5017171188NAF (With New Certification)M1121122210.50610611111. On-site Audit Travel---------12. Desk Audits8Uncertified to Standard3,5M27715443181.002,2161,2323,448ULEF to StandardM1111412581.00889121,000NAF (With New Certification)M--------13. Purchase of Small Chamber Testing Unit9---------14. Quality Control Testing10Standard Certification3,5M2882685562602.00149,760139,360289,120New NAF CertificationM--------15. Lost Product---------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 45 of 99Exhibit 6-12: Incremental Second and Third Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotal16. Initial Recordkeeping11C--------17. Recurring Recordkeeping12Producers3,5M3701,1291,499152.0019,24058,70877,948Fabricators with burden- Employers4C2,1768483,0241520.001,131,520440,9601,572,480Fabricators with burden - Nonemployers4C3,0541,1914,24517.2122,0198,58730,606Fabricators without burdenC42,31016,43758,7471----Wholesalers with burden - EmployersC2,6423,6806,3221195.00515,190717,6001,232,790Wholesalers with burden - NonemployersC3,8265,3319,15713.9214,99820,89835,895Wholesalers without burdenC47,26311,94459,2071----RetailersC658,150-658,1501----18. Initial Labeling4,13Minor Changes - Producers4,5T--------Minor Changes - Fabricators4T--------Major Changes - Producers3T--------Major Changes - Fabricators and Wholesalers4T--------Total - Years 2 and 31,860,2161,393,5183,253,732Notes: 1. This column indicates the category of labor associatedwith the activity. "M", "T", and "C" stand for managerial, technical, and clerical labor, respectively.2. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value ofimports for the affected fabricatorNAICS to the total domestic value ofshipments for these NAICS (which is 39 percent) and 2) applying itto the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export composite woodproducts or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis,which assumes that there is uncertified product being imported into theU.S., the analysis estimates the numberof certified foreign mills as 20 percent ofthe total number of certified mills.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.5. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by a TPCas a result of the TSCA Title VI rule.6. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform correlation testing because it isassumed that their previous testing is sufficient.7. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will onlyincur the initial on-site audit in thefirst year. All producers with NAF certification will have one on-site audit annually thereafter.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Although mills are likely to incur somelabor burden while learning how to use the small chamber testing unit, it is not estimated in this analysis.10. This analysis assumes that composite panel producers testeach production line once daily. Composite panel producers needto perform 3 months of routine small scale testing to become NAFcertified.11. Recordkeeping is required for composite panel producers (including the estimated two percent of wood veneer laminated product producers defined as hardwood plywood producers), fabricators, and*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 46 of 99Exhibit 6-12: Incremental Second and Third Year Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotalwholesalers that import composite wood products. However, composite panel producers andfabricators are not expected to need to make any initial changes to their recordkeeping systems. This analysisassumes that 28 percent of domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, it is assumed that 57 percent of wholesalers are notalready complying with the CARB ATCM and will have initial burden to change their recordkeeping systems to comply with the TSCATitle VI rule.12. While recordkeeping is required for all respondents, not all entities will incur recordkeepingburden and costs. This analysis assumes that some fabricators and wholesalers have existingrecordkeeping systems that are sufficient to meet the rule's requirements. Based on responses to EPA’s questionnaires, it is assumed that that 11 percent of fabricators and 43 percent of wholesalers willhave recurring recordkeeping costs. However, the analysis assumes that only 28 percent of domestic wholesalers import composite wood products or articles thatcontain composite wood products andthus 43% of that 28% incur recurring recordkeeping burden. The customary business practices ofthe remaining fabricators, wholesalers, and all retailers are assumed to be generally sufficient to meet theproposed rule’s recordkeeping requirements.For fabricators and wholesalers with burden, the analysis assumes that there is afixed-cost component of the recurring recordkeeping costs associated withtwo hours of labor and a variable cost component that is proportional to a firm’s revenue. The variable cost factor is estimated by subtracting the fixed cost from the total reported cost and then dividingby the estimated average revenue for affected employer category.For fabricators, the fixed cost is $49.68, the total reportedcost is $12,916.80, and the average revenue is $4,241,245. For wholesalers,the fixed cost is $51.08, the total reported cost is $4,890.30,and the average revenue is $8,308,417. The respective variablecost factors are 0.30338 percent and 0.05933 percent of revenue. Therecurring recordkeeping burdens for employer fabricators and wholesalers are 520 and 195 hours per year, respectively. For nonemployers, the average recurring recordkeeping burden is estimated as thesum of the burden associated with the fixed cost (2 hours) andthe burden associated with the respective variable costs, whichare calculated as 0.30338 percent of average nonemployer fabricator revenues($42,690) and 0.05933 percent of average nonemployer wholesaler revenues($82,542). The resulting average fabricator and wholesaler nonemployer recurring recordkeeping burdens are 7.21 and 3.92hours per year, respectively.13. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include theirname, the date the finished good wasproduced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the products theypurchase. This analysis assumes that all producers, 67 percent of fabricators thatare not already complying with the CARB ATCM, and all fabricators that are already complying with the CARB ATCMwill incur the cost associated with 3 hoursof labor for making small changes to theirlabels. The remaining fabricators and one percent of wholesalers are assumedto incur the average cost of the twofirms that reported initial labeling costsin the fabricator questionnaire (seethe Economic Analysis for more details).1038*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 47 of 99Exhibit 6-13: Three Year Average Incremental Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotal1. Rule FamiliarizationProducers3M3701,1291,4990.33334.00004931,5051,998Fabricators4M79,70131,083110,7840.33334.0000106,25741,440147,697WholesalersM85,56033,368118,9280.33334.0000114,06944,486158,555RetailersM759,048-759,0480.33334.00001,011,963-1,011,9632. Certification Fee---------3. Initial On-site AuditWith Existing CertificationsM827648460.33334.00001091,0191,128Without Existing Certifications3,5M2883656530.33338.00007689731,7414. Develop Quality Control Manual3M2883656530.333340.00003,8404,8668,7065. Qualifying Test---------6. Qualifying Test Shipment1 ProductM111291400.33330.5000221232 Products3,5M2883656530.66670.250048611097. Correlation Test61 ProductM111291403.33331.0000374304672 Products3,5M2883656536.66671.00001,9202,4334,3538. Quarterly On-site Audit7Uncertified to Standard3,5M2771544313.66674.00004,0632,2596,321ULEF to StandardM111141253.00004.00001321,3681,500NAF (With New Certification)M112112221.00004.0000448448889. Large Scale Testing Fee---------10. Large Scale Testing Shipment8Uncertified to Standard3,5M2771544313.66670.5000508282790ULEF to StandardM111141253.00000.500017171188NAF (With New Certification)M112112221.00000.5000610611111. On-site Audit Travel---------12. Desk Audits8Uncertified to Standard3,5M2771544318.00001.00002,2161,2323,448ULEF to StandardM111141258.00001.0000889121,000NAF (With New Certification)M112112220.66671.0000714114813. Purchase of Small ChamberTesting Unit9---------14. Quality Control Testing10Standard Certification3,5M288268556260.00002.0000149,760139,360289,120*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 48 of 99Exhibit 6-13: Three Year Average Incremental Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotalNew NAF CertificationM1727629321.66672.000073711,96012,69715. Lost Product---------16. Initial Recordkeeping11C8,57611,94520,5210.333359.1500169,073235,492404,56517. Recurring Recordkeeping12Producers3,5M3701,1291,4991.000052.000019,24058,70877,948Fabricators with burdenEmployers4C2,1768483,0241.0000520.00001,131,520440,9601,572,480Fabricators with burden -Nonemployers4C3,0541,1914,2451.00007.210022,0198,58730,606Fabricators without burdenC42,31016,43758,7471.0000----Wholesalers with burden -EmployersC2,6423,6806,3221.0000195.0000515,190717,6001,232,790Wholesalers with burden -NonemployersC3,8265,3319,1571.00003.920014,99820,89835,895Wholesalers without burdenC47,26311,94459,2071.0000----RetailersC658,150-658,1501.0000----18. Initial Labeling4,13Minor Changes - Producers4,5C931,0211,1140.33336.00001862,0422,228Minor Changes - Fabricators4T64,29024,98689,2760.33333.000064,28424,98489,267Major Changes - Producers3C2771083850.3333100.00009,2323,60012,832Major Changes - Fabricators andWholesalers4T16,2666,34422,6100.3333100.0000542,146211,446753,591Total - Three Year Average3,884,9721,980,1865,865,153Notes: 1. This column indicates the category of labor associatedwith the activity. "M", "T", and "C" stand for managerial, technical, and clerical labor, respectively.2. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value ofimports for the affected fabricator NAICS to the total domestic value ofshipments for these NAICS (which is 39 percent) and 2) applying itto the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export composite woodproducts or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis,which assumes that there is uncertified product being imported into theU.S., the analysis estimates the numberof certified foreign mills as 20 percent ofthe total number of certified mills.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.5. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.6. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform correlation testing because it isassumed that their previous testing is sufficient.7. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit in*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 49 of 99Exhibit 6-13: Three Year Average Incremental Burden Hours, by Activity and Geographic LocationActivityLaborType1Number of EntitiesNumber ofActivities PerRespondentBurden PerActivity(Hours)Incremental Burden (Hours)DomesticForeign2TotalDomesticForeignTotalthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Although mills are likely to incur somelabor burden while learning how to use the small chamber testing unit, it is not estimated in this analysis.10. This analysis assumes that composite panel producers testeach production line once daily. Composite panel producers needto perform 3 months of routine small scale testing to become NAFcertified.11. Recordkeeping is required for composite panel producers (including the estimated two percent of wood veneer laminated product producers defined as hardwoodplywood producers), fabricators,and wholesalers that import composite wood products or articlesthat contain composite wood products. However, composite panelproducers and fabricatorsare not expected to need to make any initialchanges to their recordkeeping systems. This analysis assumes that 28 percent of domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, itis assumed that 57 percent of wholesalers are not already complying with the CARB ATCM and willhave initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.12. While recordkeeping is required for all respondents, not all entities will incur recordkeepingburden and costs. This analysis assumes that some fabricators and wholesalers have existingrecordkeeping systems that are sufficient to meet the rule's requirements. Based on responses to EPA’s questionnaires, it is assumed that that 11 percent of fabricators and 43 percent of wholesalers willhave recurring recordkeeping costs. However, the analysis assumes that only 28 percent of domestic wholesalers import composite wood products or articles thatcontain composite wood products andthus 43% of that 28% incur recurring recordkeeping burden. The customary business practices ofthe remaining fabricators, wholesalers, and all retailers are assumed to be generally sufficient to meetthe proposed rule’s recordkeeping requirements. For fabricatorsand wholesalers with burden, the analysis assumes that there is a fixed-cost component of the recurring recordkeeping costs associatedwith two hours of labor and a variable cost component that is proportional to a firm’s revenue. The variable cost factor is estimated by subtracting the fixed costfrom the total reported cost and thendividing by the estimated average revenue for affected employercategory. For fabricators, the fixed cost is $49.68, the totalreported cost is $12,916.80, and the average revenue is $4,241,245. Forwholesalers, the fixed cost is $51.08, the total reported costis $4,890.30, and the average revenue is $8,308,417. The respective variable cost factors are 0.30338 percent and 0.05933 percent of revenue.The recurring recordkeeping burdens for employer fabricators and wholesalers are 520 and 195 hours per year, respectively. Fornonemployers, the average recurring recordkeeping burden is estimatedas the sum of the burden associated with the fixed cost (2 hours) and the burden associated withthe respective variable costs,which are calculated as 0.30338 percent of average nonemployer fabricatorrevenues ($42,690) and 0.05933 percent of average nonemployer wholesaler revenues ($82,542). The resulting average fabricatorand wholesaler nonemployer recurring recordkeeping burdens are 7.21and 3.92 hours per year, respectively.13. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include their name, the date the finished goodwas produced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the productsthey purchase. This analysisassumes that all producers, 67 percent of fabricators that are not already complying with the CARB ATCM, and all fabricators that are already complying with the CARBATCM will incur the cost associated with3 hours of labor for making small changes totheir labels. The remaining fabricatorsand one percent of wholesalers are assumed to incur the average cost ofthe two firms that reported initial labelingcosts in the fabricator questionnaire (see the Economic Analysis for more details).1039104010411042

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 50 of 99 

# 1043

6(b) Estimating Respondent Costs 1044

1045

Respondent costs are estimated by multiplyi ng burden estimates from the previous 1046

section with loaded wage rates, and a dding in capital/startup costs and operating and 1047

maintenance (O&M) costs. 1048

1049

(i) Wage Rates 1050

1051

The fully loaded unit labor cost for manage rial, technical, and cl erical labor in the 1052

regulated industry and for EPA staff is estimated by adding fringe benefits and overhead costs to 1053

the hourly wage or annual salary for each category following the method described in Wage 1054

Rates for Economic Analysis of th e Toxics Release Inventory Program . This section describes 1055

the method employed to estimate the fully loaded unit labor costs for each labor category and 1056

presents the results of the analysis. 1057

1058

Wage data used to calculate the labo r costs are from the May 2009 National Industry1059

Specific Occupational Employment and Wage Estim ates estimated as part of the Bureau of 1060

Labor Statistics’(BLS’) O ccupational Employment St atistics Program (OES). 21 

# The values were 1061

inflated to 2010 dollars using data from th e BLS’ Employer Costs for Employee Compensation 1062

(ECEC) for all private industry for 2009 and 2010. 22 

# Thus, the analysis uses domestic wage rates 1063

to estimate the costs for burden incurred by foreign firms. 1064

1065

The costs of fringe benefits (i.e., paid leav e and insurance) were estimated using the same 1066

ECEC data for all private industr y in 2010, resulting in a fringe be nefit rate of 42 percent. An 1067

additional loading factor of 17 percent is applied to wages to account for overhead. This 1068

overhead loading factor is added to the benefits loading factor, and the total (1.59) is then applied 1069

to the base wage to derive the fully loaded wage. 1070

1071

The derivation of the fully lo aded costs for managerial, tech nical, and clerical labor is 1072

presented in Exhibit 6-14. Note that two types of managerial la bor costs are calculated – one for 1073

rule familiarization (a general managerial la bor rate for wood product manufacturing NAICS) 1074

and one for testing and certification (a more sp ecific managerial labor rate for composite panel 1075

manufacturing NAICS). 1076

1077

21 

# U.S. Bureau of Labor Statistics (BLS) 2009

22 

# U.S. Bureau of Labor Statistics (BLS) 2011*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 51 of 99Exhibit 6-14: Derivation of Loaded Industry Wage RatesLaborCategoryEntity Type Burden Type Data Source for Wage InformationWage($2010)Fringe andOverhead FactorLoaded Wages($2010)(a) (b) (c) = (a)*(b)ManagerialComposite Panel ProducersRuleFamiliarizationBLSOES, Managerial Occupations, NAICS321000 - Wood Product Manufacturing$46.291.59$73.60FabricatorsWholesalersBLSOES, Managerial Occupations, Sector 42 -Wholesale Trade$58.67 $93.29RetailersBLSOES, Managerial Occupations, 321200 -Veneer, Plywood, and Engineered Wood ProductManufacturing$44.47 $70.71Composite Panel ProducersTesting andCertification,RecordkeepingBLSOES, Managerial Occupations, 321200 -Veneer, Plywood, and Engineered Wood ProductManufacturing$44.88 $71.36Technical Fabricators / Wholesalers LabelingBLSOES, Computer and Mathematical ScienceOccupations, 321200 - Veneer, Plywood, andEngineered Wood Product Manufacturing$27.84 $44.27ClericalComposite Panel ProducersRecordkeepingfor Fabricatorsand Wholesalers/ Labeling forProducersBLSOES, Office and Administrative SupportOccupations, NAICS 321000 - Wood ProductManufacturing$15.62 $24.84FabricatorsWholesalersBLSOES, Office and Administrative SupportOccupations, Sector 42 - Wholesale Trade$16.06 $25.54

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 52 of 99 

# (ii) Costs Per Respondent 1078

1079

This section describes the recordkeeping a nd reporting costs for each respondent activity 1080

as a result of the proposed TSCA Title VI Rule. The total cost is comprised of labor costs, 1081

capital/start-up costs, and opera ting and maintenance (O&M) costs. The latter two costs are 1082

classified as non-labor costs in th is analysis. Labor costs are pres ented first since they are based 1083

directly on the labor burden and the loaded wa ge rates summarized above . Costs are broken out 1084

such that each unique combination of (1) the number of responses pe r respondent and (2) per1085

response costs is classified as a separate activity. 1086

1087

Labor Costs 1088

1089

Exhibit 6-15 and Exhibit 6-16 summarize the total per-activity recordkeeping and 1090

reporting labor costs for all respondents over the first year, and second and third years of the 1091

rule, respectively. Exhibit 6-17 presents the aver age labor costs over the first three years of the 1092

rule, by activity. Exhibit 6-18 through Exhibit 6- 20 present the same information as the previous 1093

three tables, except for the incr emental labor costs. These labor costs were estimated by 1094

multiplying the labor burdens summarized in Exhibit 6-8 through Exhibit 6-13 by the loaded 1095

wage rates presented in Exhibit 6-14. As indicated, the estimated average annual total labor cost 1096

over the first three years of the rule is appr oximately $312.2 million, while the incremental labor 1097

costs are $246.9 million. The domestic labor cost accounts for approximately 66.0 percent 1098

($205.9 million) and 71.6 percent ($176.7 millio n) of these totals, respectively. 1099*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 53 of 99Exhibit 6-15: Total (including baseline) First Year LaborCosts, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerial1. Rule FamiliarizationProducers1--$108,928--$332,378--$441,306Fabricators1--$23,463,974--$9,150,835--$32,614,810Wholesalers2--$31,927,570--$12,451,603--$44,379,172Retailers3--$214,689,136-----$214,689,1362. Certification Fee---------3. Initial On-site Audit4With Existing Certifications--$23,406--$218,076--$241,482Without Existing Certifications--$164,413--$208,371--$372,7854. Develop Quality Control Manual4--$822,067--$1,041,856--$1,863,9235. Qualifying Test---------6. Qualifying Test Shipment41 Product--$428--$4,638--$4,9952 Products--$10,347--$13,059--$23,3357. Correlation Test41 Product--$7,850--$92,054--$99,9042 Products--$411,034--$520,928--$931,9628. Quarterly On-site Audit4Standard--$290,292--$610,556--$900,849NAF (With New Certification)--$4,852--$78,781--$83,634NAF (With Existing Certification)---------9. Large Scale Testing Fee---------10. Large Scale Testing Shipment4Standard Certification--$36,322--$76,355--$112,606NAF (With New Certification)--$642--$9,848--$10,490NAF (With Existing Certification)---------11. On-site Audit Travel4---------12. Desk Audits4Standard Certification--$193,528--$407,037--$600,566NAF (With New Certification)--$2,426--$39,391--$41,81713. Purchase of Small Chamber TestingUnit---------14. Quality Control Testing4Standard Certification--$12,579,341--$26,457,434--$39,036,774New NAF Certification--$157,706--$2,560,397--$2,718,10215. Lost Product---------16. Initial Recordkeeping5$12,955,676--$18,045,210--$31,000,886--17. Recurring Recordkeeping*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 54 of 99Exhibit 6-15: Total (including baseline) First Year LaborCosts, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerialProducers4$1,372,966--$4,189,403--$5,562,369--Fabricators with costs - Employers6$46,887,984--$18,367,690--$65,255,674--Fabricators with costs -Nonemployers6$920,024--$357,646--$1,277,670--Fabricators without costs---------Wholesalers with costs - Employers5$20,957,102--$29,189,538--$50,146,641--Wholesalers with costs -Nonemployers5$610,100--$849,690--$1,459,815--Wholesalers without costs---------Retailers---------18. Initial LabelingMinor Changes - Producers6$13,861--$152,170--$166,031--Minor Changes – Fabricators7-$8,538,355--$3,318,391--$11,856,746-Major Changes – Producers6$688,068--$268,272--$956,340--Major Changes - Fabricators andWholesalers7-$72,009,582--$28,084,888--$100,094,470-Total - Year 1$84,405,781$80,547,937$284,894,191$71,419,619$31,403,279$54,273,597$155,825,426$111,951,216$339,167,648Notes: 1. The analysis uses aloaded wage rate of $73.60 for rule familiarization for composite panelproducers and fabricators.2. The analysis uses a loaded wage rate of$93.29 for rule familiarization for wholesalers.3. The analysis uses a loaded wage rateof $70.71 for rule familiarization for retailers.4. The analysis uses a loaded wage rate of $71.36 for testing and certification and recordkeeping for composite panel producers.5. The analysis uses a loaded wage rateof $25.54 for recordkeeping for wholesalers.6. The analysis uses a loaded wage rate of $24.84 forrecordkeeping for fabricators, and labeling for producers.7. The analysis uses a loaded wage rate of$44.27 for labeling for fabricators and wholesalers.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 55 of 99Exhibit 6-16: Total (including baseline) Second and ThirdYear Costs, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerial1. Rule FamiliarizationProducers1---------Fabricators1---------Wholesalers2---------Retailers3---------2. Certification Fee---------3. Initial On-site Audit4With Existing Certifications---------Without Existing Certifications---------4. Develop Quality Control Manual---------5. Qualifying Test---------6. Qualifying Test Shipment71 Product---------2 Products---------7. Correlation Test41 Product---------2 Products---------8. Quarterly On-site Audit4Standard Certification--$387,057--$814,075--$1,201,132NAF (With New Certification)--$4,852--$78,781--$83,634NAF (With Existing Certification)--$3,996--$39,962--$43,9589. Large Scale Testing Fee---------10. Large Scale Testing Shipment4Standard Certification--$48,382--$101,759--$150,141NAF (With New Certification)--$642--$9,848--$10,490NAF (With Existing Certification)--$500--$4,995--$5,49511. On-site Audit Travel---------12. Desk Audits4Standard Certification--$193,528--$407,037--$600,566NAF (With New Certification)---------13. Purchase of Small Chamber---------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 56 of 99Exhibit 6-16: Total (including baseline) Second and ThirdYear Costs, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerialTesting Unit14. Quality Control Testing4Standard Certification--$12,579,341--$26,457,434--$39,036,774New NAF Certification---------15. Lost Product---------16. Initial Recordkeeping5---------17. Recurring RecordkeepingProducers4$1,372,966--$4,189,403--$5,562,369Fabricators with costs -Employers6$46,887,984--$18,367,690--$65,255,674--Fabricators with costsNonemployers6$920,024--$357,646--$1,277,670--Fabricators without costs---------Wholesalers with costs -Employers5$20,957,102--$29,189,538--$50,146,641--Wholesalers with costs -Nonemployers5$610,100--$849,690--$1,459,815--Wholesalers without costs---------Retailers---------18. Initial LabelingMinor Changes - Producers6---------Minor Changes – Fabricators7---------Major Changes – Producers6---------Major Changes - Fabricators andWholesalers7---------Total - Years 2 and 3$70,748,176-$13,218,298$52,953,967-$27,913,891$123,702,169-$41,132,190Notes: 1. The analysis uses aloaded wage rate of $73.60 for rule familiarization for composite panelproducers and fabricators.2. The analysis uses a loaded wage rate of$93.29 for rule familiarization for wholesalers.3. The analysis uses a loaded wage rateof $70.71 for rule familiarization for retailers.4. The analysis uses a loaded wage rate of $71.36 for testing and certification and recordkeeping for composite panel producers.5. The analysis uses a loaded wage rateof $25.54 for recordkeeping for wholesalers.6. The analysis uses a loaded wage rate of $24.84 forrecordkeeping for fabricators, and labeling for producers.7. The analysis uses a loaded wage rate of$44.27 for labeling for fabricators and wholesalers.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 57 of 99Exhibit 6-17: Three Year Average Labor Costs (includingbaseline), by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerial1. Rule FamiliarizationProducers1--$36,285--$110,768--$147,053Fabricators1--$7,820,515--$3,049,984--$10,870,499Wholesalers2--$10,641,497--$4,150,099--$14,791,596Retailers3--$71,555,904-----$71,555,9042. Certification Fee---------3. Initial On-site Audit4With Existing Certifications--$7,778--$72,716--$80,494Without ExistingCertifications--$54,804--$69,433--$124,2384. Develop Quality ControlManual4--$274,022--$347,238--$621,2605. Qualifying Test---------6. Qualifying Test Shipment41 Product--$143--$1,499--$1,6412 Products--$3,425--$4,353--$7,7787. Correlation Test41 Product--$2,640--$30,685--$33,3252 Products--$137,011--$173,619--$310,6308. Quarterly On-site Audit4Standard Certification--$354,802--$746,212--$1,101,013NAF (With NewCertification)--$4,852--$78,781--$83,634NAF (With ExistingCertification)--$2,640--$26,617--$29,3299. Large Scale Testing Fee---------10. Large Scale Testing Shipment4Standard Certification--$44,386--$93,268--$137,653NAF (With NewCertification)--$642--$9,848--$10,490NAF (With ExistingCertification)--$357--$3,354--$3,63911. On-site Audit Travel---------12. Desk Audits4Standard Certification--$193,528--$407,037--$600,566*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 58 of 99Exhibit 6-17: Three Year Average Labor Costs (includingbaseline), by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerialNAF (With NewCertification)--$785--$13,130--$13,91513. Purchase of Small ChamberTesting Unit---------14. Quality Control Testing4Standard Certification--$12,579,341--$26,457,434--$39,036,774New NAF Certification--$52,592--$853,466--$906,05815. Lost Product---------16. Initial Recordkeeping5$4,318,124--$6,014,466--$10,332,590--17. Recurring RecordkeepingProducers4$1,372,966--$4,189,403--$5,562,369--Fabricators with costs -Employers6$46,887,984--$18,367,690--$65,255,674--Fabricators with costs -Nonemployers6$920,024--$357,646--$1,277,670--Fabricators without costs---------Wholesalers with costs -Employers5$20,957,102--$29,189,538--$50,146,641--Wholesalers with costs -Nonemployers5$610,100--$849,690--$1,459,815--Wholesalers without costs---------Retailers---------18. Initial LabelingMinor Changes – Producers6$4,620--$50,723--$55,344--Minor Changes –Fabricators7-$2,845,853--$1,106,042--$3,951,850-Major Changes – Producers6$229,323--$89,424--$318,747--Major Changes - Fabricatorsand Wholesalers7-$24,000,803--$9,360,714--$33,361,474-Total - Three Year Average$75,300,243$26,846,656$103,767,949$59,108,580$10,466,756$36,699,541$134,408,850$37,313,324$140,467,489Notes: 1. The analysis uses aloaded wage rate of $73.60 for rule familiarization for composite panelproducers and fabricators.2. The analysis uses a loaded wage rate of$93.29 for rule familiarization for wholesalers.3. The analysis uses a loaded wage rateof $70.71 for rule familiarization for retailers.4. The analysis uses a loaded wage rate of $71.36 for testing and certification and recordkeeping for composite panel producers.5. The analysis uses a loaded wage rateof $25.54 for recordkeeping for wholesalers.6. The analysis uses a loaded wage rate of $24.84 forrecordkeeping for fabricators, and labeling for producers.7. The analysis uses a loaded wage rate of$44.27 for labeling for fabricators and wholesalers.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 59 of 99Exhibit 6-18: Incremental First Year Labor Costs, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerial1. Rule FamiliarizationProducers1--$108,928--$332,378--$441,306Fabricators1--$23,463,974--$9,150,835--$32,614,810Wholesalers2--$31,927,570--$12,451,603--$44,379,172Retailers3--$214,689,136-----$214,689,1362. Certification Fee---------3. Initial On-site Audit4With Existing Certifications--$23,406--$218,076--$241,482Without ExistingCertifications--$164,413--$208,371--$372,7854. Develop Quality ControlManual4--$822,067--$1,041,856--$1,863,9235. Qualifying Test---------6. Qualifying Test Shipment41 Product--$428--$4,638--$4,9952 Products--$10,276--$13,059--$23,3357. Correlation Test41 Product--$7,850--$92,054--$99,9042 Products--$411,034--$520,928--$931,9628. Quarterly On-site Audit4Uncertified to Standard--$237,201--$131,873--$369,074ULEF to Standard--$9,420--$97,620--$107,040NAF (With NewCertification)--$3,140--$60,228--$63,3689. Large Scale Testing Fee---------10. Large Scale Testing Shipment4Uncertified to Standard--$29,686--$16,484--$46,170ULEF to Standard--$1,213--$12,203--$13,416NAF (With NewCertification)--$428--$7,564--$7,92111. On-site Audit Travel---------12. Desk Audits4Uncertified to Standard--$158,134--$87,916--$246,049*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 60 of 99Exhibit 6-17: Three Year Average Labor Costs (includingbaseline), by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerialULEF to Standard--$6,280--$65,080--$71,360NAF (With NewCertification)--$1,570--$30,114--$31,68413. Purchase of Small ChamberTesting Unit---------14. Quality Control Testing4Standard Certification--$10,686,874--$9,944,730--$20,631,603New NAF Certification--$157,706--$2,560,397--$2,718,10215. Lost Product---------16. Initial Recordkeeping5$12,955,676--$18,045,210--$31,000,886--17. Recurring RecordkeepingProducers4$1,372,966--$4,189,403--$5,562,369--Fabricators with costs -Employers6$28,106,957--$10,953,446--$39,060,403--Fabricators with costs -Nonemployers6$546,952--$213,301--$760,253--Fabricators without costs---------Wholesalers with costs -Employers5$13,157,953--$18,327,504--$31,485,457--Wholesalers with costs -Nonemployers5$383,049--$533,735--$916,758--Wholesalers without costs---------Retailers---------18. Initial LabelingMinor Changes - Producers6$13,861--$152,170--$166,031--Minor Changes –Fabricators7-$8,538,355--$3,318,391--$11,856,746-Major Changes – Producers6$688,068--$268,272--$956,340--Major Changes - Fabricatorsand Wholesalers7-$72,009,582--$28,084,888--$100,094,470-Total - Year 1$57,225,482$80,547,937$282,920,734$52,683,041$31,403,279$37,048,007$109,908,497$111,951,216$319,968,597*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 61 of 99Exhibit 6-17: Three Year Average Labor Costs (includingbaseline), by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerialNotes: 1. The analysis uses aloaded wage rate of $73.60 for rule familiarization for composite panelproducers and fabricators.2. The analysis uses a loaded wage rate of$93.29 for rule familiarization for wholesalers.3. The analysis uses a loaded wage rateof $70.71 for rule familiarization for retailers.4. The analysis uses a loaded wage rate of $71.36 for testing and certification and recordkeeping for composite panel producers.5. The analysis uses a loaded wage rateof $25.54 for recordkeeping for wholesalers.6. The analysis uses a loaded wage rate of $24.84 forrecordkeeping for fabricators and labeling for producers.7. The analysis uses a loaded wage rate of$44.27 for labeling for fabricators and wholesalers.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 62 of 99Exhibit 6-19: Incremental Second and Third Year LaborCosts, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerial1. Rule FamiliarizationProducers1---------Fabricators1---------Wholesalers2---------Retailers3---------2. Certification Fee---------3. Initial On-site Audit4With Existing Certifications---------Without Existing Certifications---------4. Develop Quality Control Manual4---------5. Qualifying Test---------6. Qualifying Test Shipment41 Product---------2 Products---------7. Correlation Test41 Product---------2 Products---------8. Quarterly On-site Audit4Uncertified to Standard--$316,268--$175,831--$492,099ULEF to Standard--$9,420--$97,620--$107,040NAF (With New Certification)--$3,140--$60,228--$63,3689. Large Scale Testing Fee---------10. Large Scale Testing Shipment4Uncertified to Standard--$39,533--$21,979--$61,512ULEF to Standard--$1,213--$12,203--$13,416NAF (With New Certification)--$428--$7,564--$7,92111. On-site Audit Travel---------12. Desk Audits4Uncertified to Standard--$158,134--$87,916--$246,049ULEF to Standard--$6,280--$65,080--$71,360NAF (With New Certification)---------13. Purchase of Small ChamberTesting Unit---------14. Quality Control Testing4Standard Certification--$10,686,874--$9,944,730--$20,631,603New NAF Certification---------15. Lost Product---------16. Initial Recordkeeping5---------17. Recurring Recordkeeping*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 63 of 99Exhibit 6-19: Incremental Second and Third Year LaborCosts, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerialProducers4$1,372,966--$4,189,403--$5,562,369--Fabricators with costs -Employers6$28,106,957--$10,953,446--$39,060,403--Fabricators with costs -Nonemployers6$546,952--$213,301--$760,253--Fabricators without costs---------Wholesalers with costs -Employers5$13,157,953--$18,327,504--$31,485,457--Wholesalers with costs -Nonemployers5$383,049--$533,735--$916,758--Wholesalers without costs---------Retailers---------18. Initial LabelingMinor Changes - Producers6---------Minor Changes - Fabricators7---------Major Changes - Producers6---------Major Changes - Fabricators andWholesalers7---------Total - Years 2 and 3$43,567,877-$11,221,290$34,217,389-$10,473,151$77,785,240-$21,694,368Notes: 1. The analysis uses aloaded wage rate of $73.60 for rule familiarization for composite panelproducers and fabricators.2. The analysis uses a loaded wage rate of$93.29 for rule familiarization for wholesalers.3. The analysis uses a loaded wage rateof $70.71 for rule familiarization for retailers.4. The analysis uses a loaded wage rate of $71.36 for testing and certification and recordkeeping for composite panel producers.5. The analysis uses a loaded wage rateof $25.54 for recordkeeping for wholesalers.6. The analysis uses a loaded wage rate of $24.84 forrecordkeeping for fabricators and labeling for producers.7. The analysis uses a loaded wage rate of$44.27 for labeling for fabricators and wholesalers.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 64 of 99Exhibit 6-20: Three Year Average Incremental Labor Costs, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerial1. Rule FamiliarizationProducers1--$36,285--$110,768--$147,053Fabricators1--$7,820,515--$3,049,984--$10,870,499Wholesalers2--$10,641,497--$4,150,099--$14,791,596Retailers3--$71,555,904-----$71,555,9042. Certification Fee---------3. Initial On-site Audit4With Existing Certifications--$7,778--$72,716--$80,494Without ExistingCertifications--$54,804--$69,433--$124,2384. Develop Quality ControlManual4--$274,022--$347,238--$621,2605. Qualifying Test---------6. Qualifying Test Shipment41-Product by TPC--$143--$1,499--$1,6412-Product by TPC--$3,425--$4,353--$7,7787. Correlation Test41-Product by TPC--$2,640--$30,685--$33,3252-Product by TPC--$137,011--$173,619--$310,6308. Quarterly On-site Audit4Uncertified to Standard--$289,936--$161,202--$451,067ULEF to Standard--$9,420--$97,620--$107,040NAF (With NewCertification)--$3,140--$60,228--$63,3689. Large Scale Testing Fee---------10. Large Scale Testing Shipment4Uncertified to Standard--$36,251--$20,124--$56,374ULEF to Standard--$1,213--$12,203--$13,416NAF (With NewCertification)--$428--$7,564--$7,92111. On-site Audit Travel---------12. Desk Audits4Uncertified to Standard--$158,134--$87,916--$246,049*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 65 of 99Exhibit 6-20: Three Year Average Incremental Labor Costs, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerialULEF to Standard--$6,280--$65,080--$71,360NAF (With NewCertification)--$500--$10,062--$10,56113. Purchase of Small ChamberTesting Unit---------14. Quality Control Testing4Standard Certification--$10,686,874--$9,944,730--$20,631,603New NAF Certification--$52,592--$853,466--$906,05815. Lost Product---------16. Initial Recordkeeping5$4,318,124--$6,014,466--$10,332,590--17. Recurring RecordkeepingProducers4$1,372,966--$4,189,403--$5,562,369--Fabricators with costs -Employers6$28,106,957--$10,953,446--$39,060,403--Fabricators with costs -Nonemployers6$546,952--$213,301--$760,253--Fabricators without costs---------Wholesalers with costs -Employers5$13,157,953--$18,327,504--$31,485,457--Wholesalers with costs -Nonemployers5$383,049--$533,735--$916,758--Wholesalers without costs---------Retailers---------18. Initial LabelingMinor Changes – Producers6$4,620--$50,723--$55,344-Minor Changes –Fabricators7-$2,845,853--$1,106,042--$3,951,850-Major Changes - Producers6$229,323--$89,424--$318,747--Major Changes - Fabricatorsand Wholesalers7-$24,000,803--$9,360,714--$33,361,474-Total - Three Year Average$48,119,944$26,846,656$101,778,792$40,372,002$10,466,756$19,330,589$88,491,921$37,313,324$121,109,235Notes: 1. The analysis uses aloaded wage rate of $73.60 for rule familiarization for composite panelproducers and fabricators.2. The analysis uses a loaded wage rate of$93.29 for rule familiarization for wholesalers.3. The analysis uses a loaded wage rateof $70.71 for rule familiarization for retailers.4. The analysis uses a loaded wage rate of $71.36 for testing and certification and recordkeeping for composite panel producers.5. The analysis uses a loaded wage rateof $25.54 for recordkeeping for wholesalers.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 66 of 99Exhibit 6-20: Three Year Average Incremental Labor Costs, by Activity and Geographic Location ($2010)ActivityDomesticForeignTotalClericalTechnicalManagerialClericalTechnicalManagerialClericalTechnicalManagerial6. The analysis uses a loaded wage rate of $24.84 forrecordkeeping for fabricators and labeling for producers.7. The analysis uses a loaded wage rate of$44.27 for labeling for fabricators and wholesalers.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 67 of 99 

# Non-Labor Costs 1100

1101

This subsection presents th e non-labor costs associated with the recordkeeping and 1102

reporting requirements of the proposed TSCA T itle VI rule. The different categories of 1103

respondents (composite panel producers, fabricators, wholesalers, and reta ilers) are presented 1104

separately because they engage indifferent activ ities. There are no activit ies that are common to 1105

all respondents. Exhibit 6-22 through Exhibit 6-24 summarizes the number of respondents, per1106

respondent and total non-labor cost s for each response activity over th e next three years. Exhibit 1107

6-25 through Exhibit 6-27 present th e corresponding incremental costs. 1108

1109

(A). Composite Panel Producers 1110

1111

Composite panel producers will incur non-la bor costs from testi ng and certification 1112

activities. As stated above, this analysis a ssumes that product lines that have a standard 1113

certification or a NAF certification under the CA RB ATCM will not have to submit new data or 1114

resubmit existing data to their TPC in order to receive the equivalent certification under the 1115

TSCA Title VI regulations. In addition, this an alysis assumes that two percent of wood veneer 1116

laminated product producers will continue to use added formaldehyde resins and thus be 1117

classified as hardwood plywood producers. Thes e entities are not certifie d by CARB and so will 1118

incur the burdens associated with first time certification by a TPC. 1119

1120

Certification Fees (Activity #2) 1121

1122

CPA and HPVA charge administrative fees to mills for certifying their products. CPA 1123

charges a quarterly fee of $1,500 re gardless of NAF status, whic h is equivalent to $6,000 per 1124

year. HPVA charges an annual program f ee of $4,500 to $5,500 (depending on membership 1125

status) to mills that are not NAF certified. Mill s with NAF certifications are required to pay the 1126

standard annual program fee in the first year and an annual fee of $2,700 to $3,700 in all 1127

subsequent years. This analysis assumes that th e annual certification fee for mills with standard 1128

certification is $6,000, the fees for uncertified or standard-certified mills with new NAF 1129

certifications are $6,000 in the first year and $3,7 00 in all subsequent years, and the annual 1130

certification fee for mills with a curr ent NAF or ULEF certification is $3,700. 23,24 

# 1131

1132

Exhibit 6-21: Certification Fees

Cost Category Certification Type Fee

Initial Fee All $6,000

Annual Fee Standard $6,000

NAF/ULEF $3,700



# 1133

1134

1135

1136

23 

# A mill with NAF/ULEF certifications is a ssumed to have one product line that is NAF certified and one product line that is

ULEF certified under the CARB ATCM. It is assumed that all mills with NAF/ULEF ce rtification will s eek NAF certification

for the ULEF product line.

24 

# NAF certifications apply to prod uct lines, and not necessarily to the entire faci lity. Mills with multiple product lines could

have one or more lines certified as NAF and other lines that ar e not. The NAF testing costs do not apply to any product lines

that are not NAF certified.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 68 of 99 

# Qualifying Test (Activity #5) 1137

1138

Under TSCA Title VI, a composite panel producer is required to obtain five qualifying 1139

tests for each product type (e.g., hardwood plywood – veneer core) and production line from the 1140

mill for which certification is sought. This ICR a ssumes that all qualifying testing is performed 1141

using the primary test method, large chamber test , as defined by ASTM International Standard 1142

E1333. This ICR assumes a cost of $480 pe r large scale test based on HPVA’s 2010 fee. 25 

# This 1143

analysis assumes that mills making product lines that have a standard certification or a NAF 1144

certification under the CARB ATCM will not need to submit new data or resubmit existing data 1145

to their existing TPC in order to receive the e quivalent certification under the TSCA Title VI 1146

regulations. Thus, producers that are already CARB compliant and are not expected to adopt a 1147

more stringent certification type (e.g., NAF certification) will not incur this burden. 1148

1149

Qualifying Test Shipping (Activity #6) 1150

1151

Mills are expected to ship at least five 4’ x 8’ panels for each product type via a 1152

commercial shipping carrier. Pa nels must be dead-stacked (i .e., having no layers between 1153

panels), bundled air-tight, wrapped in polyethyl ene, and protected by cover sheets. Based on 1154

conversations with CPA and with CARB-certified mills, the total shipping cost for the qualifying 1155

tests is estimated to be approximately $200 per pr oduct line. This analysis assumes that mills 1156

making product lines that have a standard certification or a NAF certification under the CARB 1157

ATCM will not need to submit new data or resubm it existing data to their existing TPC in order 1158

to receive the equivalent certification under the TS CA Title VI regulations. Thus, producers that 1159

are already CARB compliant and ar e not expected to adopt a more stringent certification type 1160

will not incur this burden. 1161

1162

Quarterly On-site Audit (Activity #8) 1163

1164

The TPC is responsible for conducting on-site vis its to certified mills. Before the initial 1165

certification, the TPC is expected to make at leas t one trip to the mill to inspect the mill’s quality 1166

control systems and employees. During the initial visit, the TPC will assist the mill in setting up 1167

quality control systems, including the small scale testing facility, if applicable, and methods for 1168

selecting samples. After certification has been granted, the TPC is obligated to perform an on1169

site audit at least once quarterly, unless the m ill obtains NAF certification. Audits typically do 1170

not take more than one day of travel and visi tation, though if the mill requires a substantial 1171

number of modifications or is unprepared, the duration of the visit may be longer. 26 

# 1172

1173

The cost of the audit is borne by the com posite panel producer and has two components: 1174

audit fees and travel costs. Site audit fees can range from $300 to $450 for initial visits and from 1175

$400 to $450 for quarterly visits, depending on the TP C. Based on these ranges, this analysis 1176

assumes that will mills will pay a fee of $450 per visit. 1177

1178

As in the burden section, this anal ysis assumes that producers with new NAF 1179

25 

# This is the rate charged by HPVA’s Reston Lab to non-memb ers for testing panels. This lab charges non-members $660 to

test doors, $840 to test finished engineered wood fl ooring, and $480 to test furniture and cabinets.

26 

# Personal Communication with HPVA 2011

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 69 of 99 

# certifications will incur the costs as sociated with one on-site audit (i n addition to the initial audit) 1180

and two desk audits in the first year. The init ial on-site audit is assumed to be sufficient for 1181

producers with existing NAF certifications. Al l NAF-certified producers will have one on-site 1182

audit annually thereafter. 1183

1184

Large Scale Testing Fees (Activity #9) 1185

1186

As described above, it is assumed that each la rge scale test costs $480. Mills are required 1187

to perform large scale testing qua rterly unless all products are certi fied as NAF. It is assumed 1188

that mills with only NAF-certified products will pe rform large scale testing annually. In the first 1189

year, mills with added-formaldehyde products will test those products three times in addition to 1190

the qualifying testing, and mills with NAF produc ts will test those once at the end of the 1191

qualifying process. Note that some respondent s are assumed to have both standard and NAF 1192

certifications. 1193

1194

Large Scale Testing Shipping (Activity #10) 1195

1196

Mills are expected to ship one 4’ x 8’ panel for each product type via a commercial 1197

shipping carrier. Panels must be dead-stacked (i.e., having no layers between panels), bundled 1198

air-tight, wrapped in polyethylen e, and protected by cover sheets. Based on conversations with 1199

CPA and with CARB-certified mills, the total shipping cost for the quarterly tests is estimated to 1200

be approximately $50 per product line. Note that some respondents are assumed to have both 1201

standard and NAF certifications. 1202

1203

On-site Audit Travel (Activity #11) 1204

1205

Travel costs can vary depending on the relativ e location of the mill to the TPC; mills 1206

within a close proximity may not incur any trav el costs, whereas a mill across the country may 1207

incur travel costs of up to $2,000 per visit. It is assumed that tr avel is only necessary for the 1208

annual audits, as other intermediate audits can be performed by contractin g inspectors closer to 1209

the mill. Therefore, this analysis assumes that each annual audit costs $1,500 in travel costs. All 1210

composite panel producers are assumed to incur this cost. 1211

1212

Desk Audits (Activity #12) 1213

1214

TPCs may conduct periodic “desk audits,” which are quality control checks performed 1215

over the phone in which the mill’s small scale tes ting procedures and data are reviewed. Desk 1216

audits are assumed to occur monthly, except in m onths with quarterly on -site audits. Based on 1217

fees charged by CPA and HPVA, it is assumed that each desk audit costs $250. 1218

1219

As in the burden section, this analysis assumes that producers with new NAF 1220

certifications will incur the costs associated with two desk audits in the first year; none are 1221

performed in subsequent years. No additional desk audits are assumed to be performed as a 1222

result of this rule for respondent s with existing NAF certification. 1223

1224

1225

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 70 of 99 

# Small Chamber Testing Unit (Activity #13) 1226

1227

This analysis assumes that all panel manuf acturers that are required to perform routine 1228

quality control testing will use their own small chamber testing unit rather than have the TPC 1229

perform the testing. It is assumed th at the unit costs $10,000 to purchase. 1230

1231

Quality Control Testing (Activities #14) 1232

1233

To maintain certification, a mill must perform small scale quality control testing for each 1234

certified product type and producti on line. Mills have the option of constructing an on-site lab 1235

and having it approved by a TPC, or contracting a certified third-party lab to perform small scale 1236

quality control testing. According to CPA a nd HPVA, particleboard and MDF mills already 1237

have their own on-site labs to test for formalde hyde (because they have to test their products on a 1238

daily basis under the CARB ATCM), while most smaller hardwood plywood mills pay their TPC 1239

to conduct their quality contro l testing. (In part because hardwood plywood mills often use 1240

ULEF or NAF resins to qualify for exemptions from some of the on-going testing requirements 1241

under the CARB ATCM.) However, the CARB AT CM allows mills to ship panels from 1242

certified product lines before te st results are available. By contrast, the proposed TSCA rule 1243

requires mills to wait until test results indicate th at the emissions standards have been met before 1244

shipping a lot that has been tested. It is uncertain how often mills currently ship product from a 1245

lot being tested before the test results are available and therefore it is uncertain how mills will 1246

choose to comply with this requirement. It may be the case that some mills normally maintain a 1247

level of inventory where they woul d typically not ship any panels before test results have been 1248

determined for that lot, but other mills may ship out panels on the same day they are produced. 1249

This analysis assumes that all mills that do not already do so will opt to set up and operate a 1250

quality control testing facility on- site, in order to minimize the tim e spent waiting for test results, 1251

and to maximize their flexibility to ship out panels shortly after they have been produced. 1252

(Assuming that mills conduct on-site testing may overs tate the costs of this requirement if some 1253

mills find it more cost effective to hold produc ts in inventory until test results have been 1254

determined by an outside lab. Producers that ar e already CARB compliant and are not expected 1255

to adopt a more stringent certification type wi ll not need to perform correlation testing. 1256

1257

HPVA typically uses a desiccat or test for small scale testi ng, but small chamber tests may 1258

also be performed. Each instance of desiccator testing requires three small samples to be cut 1259

from a larger panel and tested. It is assumed th at mills will incur fees of $70 per desiccator test 1260

and $405 per small chamber test. The mean cost, weighted by the number of tests needed (three 1261

for desiccator testing), is $154. 1262

1263

Lost Product (Activity #15) 1264

1265

Mills will need to forfeit a number of panels for initial a nd on-going testin g. Mills are 1266

expected to ship five 4’ x 8’ panels per product type for qualify ing testing. Producers will lose 1267

one panel per product type each day for quality control testing. In addition to routine small scale 1268

testing, mills are required to send one panel per product type to the TPC for large scale testing 1269

each quarter. However, product lines that are cer tified as NAF are exempt from routine quality 1270

control testing after the three month qualifying period, and need only have large scale testing 1271

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 71 of 99 

# performed annually. Note that the total respondents w ith lost product costs presented in the 1272

exhibits below sum to more than the total num ber of respondents because some respondents are 1273

assumed to have both standard and NAF certifications. 1274

1275

This analysis estimated the cost of each pane l using the average cost per square foot of 1276

hardwood plywood, $0.49 and particleboard, $0.28 (RIS I 2010). Assuming a panel size of 32 sq. 1277

ft., each hardwood plywood panel will cost the mill $15.68, and each particleboard panel will 1278

cost $8.96. 1279

1280

(B). Fabricators 1281

1282

Fabricators are subject to the proposed rule ’s recordkeeping and labeling requirements. 1283

However, not all fabricators incu r the non-labor costs as sociated with proposed rule because 1) 1284

they may already complying with the CARB ATCM (Exhibit 6-5) or 2) their existing systems 1285

are sufficient to meet the requirements. As stated above, this analysis a ssumes that 98 percent of 1286

wood veneer laminated product producers will likely switch to NAF resins and be classified as 1287

fabricators. It is assu med that the entirety of th is subset of fabricators will incur the non-labor 1288

costs associated with supplier notification. 1289

1290

As described in the Economic Analysis for the rulemaking, one respondent to the 1291

fabricator questionnaire repor ted that that they would in cur a one-time cost of $250 for 1292

purchasing new stamps for labeling. To remain c onsistent with the labor section, this cost was 1293

averaged across the two firms that reported more significant costs. As a result, this analysis 1294

assumes that the 33 percent of fabricators that are not CARB compliant in the baseline will incur 1295

an initial non-labor cost of approximately $125.00 ($250/2) a ssociated with the labeling 1296

requirements. There are not expected to be a ny non-labor costs associat ed with recordkeeping 1297

for fabricators. 1298

1299

(C). Wholesalers 1300

1301

Wholesalers are subject to th e proposed rule’s recordkeepi ng and labeling requirements. 1302

This analysis assumes that 1 percent of whol esalers will repackage their products and so will 1303

incur an initial non-labor labeling co st. It is assumed that these wholesalers incur the same costs 1304

as the fabricators described above (an average of $125.00). In addition, no t all wholesalers will 1305

incur the non-labor costs associat ed with recordkeeping because 1) they are already complying 1306

with the CARB ATCM (Exhibit 6-6), 2) their existing systems are sufficient to meet the 1307

requirements, or 3) they do not import com posite wood products or ar ticles that contain 1308

composite wood products and so are only requir ed to keep ordinary business records. 1309

1310

As described in the Economic Analysis fo r the rulemaking, only one respondent to the 1311

wholesaler questionnaire reported that they incurred non-labor costs (a one-time cost of $2,000 1312

for programming changes). The average non-labo r cost is calculated for firms reporting 1313

quantified costs. As a result, this analysis assu mes that the 57 percent of wholesalers that import 1314

composite wood products and/or articles that co ntain composite wood products will incur an 1315

initial non-labor cost of approximately $1,000 ($2,000/2) associated w ith the recordkeeping 1316

requirements (since one of two firms reporting costs reported a non-labo r cost of $2,000). As 1317

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 72 of 99 

# indicated above, this analysis assumes that 28 percent of domestic whol esalers import composite 1318

wood products and/or articles that contain compos ite wood products. There are not expected to 1319

be any non-labor costs associated wi th recurring reco rdkeeping costs. 1320

1321

(D). Retailers 1322

1323

As stated above, retailer’s customary busin ess practices are assumed to be generally 1324

sufficient to meet the proposed ru le’s recordkeeping requirements. 27 

# In addition, retailers are 1325

assumed not to repackage goods made with co mposite wood products, and thus do not incur 1326

costs to modify labeling systems to comply with the proposed rule. 1327

1328

(E). Summary 1329

1330

Exhibit 6-22 and Exhibit 6-23 summarize the total (including base line) per-activity non1331

labor costs for all the respondent s over the first year, and sec ond and third years of the rule, 1332

respectively. Exhibit 6-24 presents the average non-labor costs over the fi rst three years of the 1333

rule, respectively. Exhibit 6-25 through Exhibit 6-27 mirror the prev ious three tables, except that 1334

they account for incremental non-lab or costs (excluding baseline non- labor costs). Note that the 1335

number of respondents cannot be summed acr oss activities because many respondents are 1336

incurring multiple burdens. As indicated, the average total annual non-labor cost (including 1337

baseline) over the first three years of the rule is estimated at approximately $37.3 million, while 1338

the incremental non-labor costs are $25.6 millio n. The domestic non-labor costs account for 1339

approximately 34.5 percent ($12.9 million) and 46.3 percent ($11.9 million) of these totals, 1340

respectively. 1341

27 

# Personal Communication with CRA 2011).*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 73 of 99Exhibit 6-22: Total (including baseline) First Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotal1. Rule Familiarization--------2. Certification Fee2Standard33397131,0521$6,000$2,034,000$4,278,000$6,312,000NAF (From Uncertified or Standard)112112221$6,000$66,000$1,266,000$1,332,000NAF (From NAF or NAF/ULEF)202052251$3,700$74,000$758,500$832,5003. Initial On-site AuditWith Existing Certifications827648461$450$36,900$343,800$380,700Without Existing Certifications3,42883656531$450$129,600$164,250$293,8504. Develop Quality Control Manual--------5. Qualifying Test51 Product111291405$480$26,400$309,600$336,0002 Products3,428836565310$480$1,382,400$1,752,000$3,134,4006. Qualifying Test Shipping51 Product111291401$200$2,200$25,800$28,0002 Products3,42883656532$200$115,200$146,000$261,2007. Correlation Test--------8. Quarterly On-site Audit6Standard3,43397131,0523$450$457,650$962,550$1,420,200NAF (With New Certification)172762931$450$7,650$124,200$131,850NAF (With Existing Certification)14140154-$450---9. Large Scale Testing Fee71 Standard (Existing)886944$480$15,360$165,120$180,4802 Standard (New)3,42771544316$480$797,760$443,520$1,241,2802 Standard (Existing)544735278$480$207,360$1,816,320$2,023,6801 NAF322251$480$1,440$10,560$12,0002 NAF314164472$480$29,760$399,360$429,12010. Large Scale Testing Shipment71 Standard (Existing)886944$50$1,600$17,200$18,8002 Standard (New)3,42771544316$50$83,100$46,200$129,3002 Standard (Existing)544735278$50$21,600$189,200$210,8001 NAF322251$50$150$1,100$1,2502 NAF314164472$50$3,100$41,600$44,70011. On-site Audit Travel3701,1291,4991$1,500$555,000$1,693,500$2,248,50012. Desk Audits8Standard3,43397131,0528$250$678,000$1,426,000$2,104,000NAF172762932$250$8,500$138,000$146,50013. Purchase of Small Chamber Testing2953506451$10,000$2,950,000$3,500,000$6,450,000*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 74 of 99Exhibit 6-22: Total (including baseline) First Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotalUnit314. Quality Control Testing--------15. Lost Product72 Standard (HWPW - Existing)3,4295304599528$15.68$2,442,317$2,516,828$4,959,1451 NAF (HWPW - New)5556071$15.68$5,566$61,230$66,7971 NAF (HWPW - Existing)555601$15.68$78$862$9412 NAF (HWPW - New)11211222142$15.68$24,492$469,804$494,2962 NAF (HWPW - Existing)776832$15.68$220$2,383$2,6031 Standard (PB/MDF - Existing)88694264$8.96$18,924$203,428$222,3512 Standard (PB/MDF - New)-4646536$8.96-$220,918$220,9182 Standard (PB/MDF - Existing)36277313528$8.96$170,312$1,310,454$1,480,7651 NAF (PB/MDF - New)1101171$8.96$636$6,362$6,9981 NAF (PB/MDF - Existing)432361$8.96$36$287$3232 NAF (PB/MDF - Existing)764712$8.96$125$1,147$1,27216. Initial Recordkeeping98,57611,94520,5211$1,000$8,576,000$11,945,000$20,521,00017. Recurring Recordkeeping--------18. Initial Labeling10Minor Changes - Producers--------Minor Changes - Fabricators--------Major Changes – Producers32771083851$125$34,625$13,500$48,125Major Changes - Fabricators andWholesalers1116,2666,34422,6101$125$2,033,250$793,000$2,826,250Total - Year 1$22,991,311$37,563,583$60,554,894*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 75 of 99Exhibit 6-22: Total (including baseline) First Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotalNotes: 1. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value of imports for the affected fabricator NAICS to the total domestic value ofshipments for these NAICS (which is 39 percent) and 2) applying itto the number of domestic firms in each sector. The analysis assumes that there foreign retailersdo not typically export composite woodproducts or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis,which assumes that there is uncertified product being imported into the U.S., theanalysis estimates the number of certified foreign mills as 20 percent ofthe total number of certified mills.2. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by a TPC as aresult of the TSCA Title VI rule.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be defined ashardwood plywood. A similar proportion of foreign laminators exporting to the U.S. are also assumed to continue to use added formaldehyde resins.4. This analysis assumes that that mills will seek standard certification for uncertified and ULEF product lines. The exceptions are 1) mills that are both ULEF and NAF certified, which are assumed to switch totwo NAF product lines; and 2) uncertifiedhardwood plywood producers, which are assumed to switch to NAF certification.5. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are assumed not to need to perform qualifying or correlation testing because itis assumed that their previous testing is sufficient.6. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certificationswill incur the burden associated with oneon-site audit (in addition to the initial audit) and two desk audits in the firstyear. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit in the first year. Allproducers with NAF certification will haveone on-site audit annually thereafter.7. The respondents sum to more than the total number of respondents because some respondents are assumed to have both standardand NAF certifications.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated with two desk audits in the first year; none arerequired in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Firms that are manufacturers under TSCA (i.e., composite panel producers [including the estimated two percent of wood veneerlaminated product producers defined as hardwood plywood producers],fabricators, and wholesalers that importcomposite wood products) must keep records showing the date of purchase, the supplier,and all precautions taken to ensure that the product meets the emissions standards.However, composite panel producers and fabricators are not expected to need to makeany initial changes to their recordkeepingsystems. This analysis assumes that 28 percent of domestic wholesalers importcomposite wood products or articles that contain composite wood products. In addition,it is assumed that 57 percent of wholesalers that are not already complying withthe CARB ATCM will have initial burdento change their recordkeeping systems tocomply with the TSCA Title VI rule.10. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include theirname, the date the finished good wasproduced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the products they purchase.This analysis assumes that all 33 percent of fabricators thatare not already complying with the CARB ATCM (because their products are not sold in California) willincur a non-labor cost of $125.00 forpurchasing stamps for labeling.Producers and wholesalers are not expected toincur any non-labor costs from initial labeling.11. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 76 of 99Exhibit 6-23: Total (including baseline) Second and Third YearNon-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotal1. Rule Familiarization--------2. Certification Fee2Standard33397131,0521$6,000$2,034,000$4,278,000$6,312,000NAF (From Uncertified or Standard)112112221$3,700$40,700$780,700$821,400NAF (From NAF or NAF/ULEF)202052251$3,700$74,000$758,500$832,5003. Initial On-site AuditWith Existing Certifications--------Without Existing Certifications3,4--------4. Develop Quality Control Manual--------5. Qualifying Test51 Product--------2 Products3,4--------6. Qualifying Test Shipping51 Product--------2 Products3,4--------7. Correlation Test5--------8. Quarterly On-site Audit6Standard3,43397131,0524$450$610,200$1,283,400$1,893,600NAF (With New Certification)172762931$450$7,650$124,200$131,850NAF (With Existing Certification)141401541$450$6,300$63,000$69,3009. Large Scale Testing Fee71 Standard (Existing)886944$480$15,360$165,120$180,4802 Standard (New)3,42771544316$480$797,760$443,520$1,241,2802 Standard (Existing)544735278$480$207,360$1,816,320$2,023,6801 NAF322251$480$1,440$10,560$12,0002 NAF314164472$480$29,760$399,360$429,12010. Large Scale Testing Shipment71 Standard (Existing)886944$50$1,600$17,200$18,8002 Standard (New)3,42771544316$50$83,100$46,200$129,3002 Standard (Existing)544735278$50$21,600$189,200$210,8001 NAF322251$50$150$1,100$1,2502 NAF314164472$50$3,100$41,600$44,70011. On-site Audit Travel3701,1291,4991$1,500$555,000$1,693,500$2,248,50012. Desk Audits8Standard3,43397131,0528$250$678,000$1,426,000$2,104,000NAF--------13. Purchase of Small Chamber Testing Unit3--------14. Quality Control Testing--------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 77 of 99Exhibit 6-23: Total (including baseline) Second and Third YearNon-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotal15. Lost Product72 Standard (HWPW - Existing)3,4295304599528$15.68$2,442,317$2,516,828$4,959,1451 NAF (HWPW - New)555601$15.68$78$862$9411 NAF (HWPW - Existing)555601$15.68$78$862$9412 NAF (HWPW - New)112112222$15.68$345$6,617$6,9622 NAF (HWPW - Existing)776832$15.68$220$2,383$2,6031 Standard (PB/MDF - Existing)88694264$8.96$18,924$203,428$222,3512 Standard (PB/MDF - New)-4646536$8.96-$220,918$220,9182 Standard (PB/MDF - Existing)36277313528$8.96$170,312$1,310,454$1,480,7651 NAF (PB/MDF - New)110111$8.96$9$90$991 NAF (PB/MDF - Existing)432361$8.96$36$287$3232 NAF (PB/MDF - Existing)764712$8.96$125$1,147$1,27216. Initial Recordkeeping9--------17. Recurring Recordkeeping--------18. Initial Labeling10Minor Changes - Producers--------Minor Changes - Fabricators--------Minor Changes – Wholesalers3--------Major Changes – Fabricators11--------Total - Years 2 and 3$7,799,524$17,801,356$25,600,880Notes: 1. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value of imports for the affected fabricator NAICS to the total domesticvalue of shipments for these NAICS (which is 39 percent) and 2)applying it to the number of domestic firms in each sector. The analysis assumes that there foreign retailers do not typically exportcomposite wood products or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis, which assumes that there is uncertified product beingimported into the U.S., the analysis estimates the number of certified foreign mills as 20 percent of the total number of certified mills.2. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. This analysis assumes that that mills will seek standard certification for uncertified and ULEF product lines. The exceptions are 1) mills that are both ULEF and NAF certified, which are assumed toswitch to two NAF product lines; and 2) uncertified hardwood plywood producers, which are assumed to switch to NAF certification.5. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are assumed not to need to perform qualifying or correlation testingbecause it is assumed that theirprevious testing is sufficient.6. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.7. The respondents sum to more than the total number of respondents because some respondents are assumed to have both standardand NAF certifications.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Firms that are manufacturers under TSCA (i.e., composite panel producers [including the estimated two percent of wood veneerlaminated product producersdefined as hardwood plywoodproducers], fabricators, and wholesalers that import composite wood products) must keep records showing the date of purchase, the supplier, and all precautions taken to ensure that the product meets*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 78 of 99Exhibit 6-23: Total (including baseline) Second and Third YearNon-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotalthe emissions standards. However, composite panel producers and fabricators are not expected toneed to makeany initial changes to their recordkeeping systems.This analysis assumes that 28 percentof domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, it is assumed that 57 percent of wholesalersthat are not already complying withthe CARB ATCM will have initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.10. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include their name, the date the finished goodwas produced, and a statement of compliance. Retailers are notrequired to modify their labelingsystem to comply with the proposed rule assuming they do not modify the packaging of the productsthey purchase. This analysisassumes that all 33 percent of fabricators thatare not already complying with the CARB ATCM (because their products are not sold inCalifornia) will incur a non-laborcost of $125.00 for purchasing stamps for labeling. Producers and wholesalers are not expected to incur any non-labor costs from initial labeling.11. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 79 of 99Exhibit 6-24: Three Year Average Non-Labor Costs (includingbaseline), by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotal1. Rule Familiarization--------2. Certification Fee2Standard33397131,0521.0000$6,000.00$2,034,000$4,278,000$6,312,000NAF (From Uncertified or Standard)112112221.0000$4,466.67$49,133$942,467$991,601NAF (From NAF or NAF/ULEF)202052251.0000$3,700.00$74,000$758,500$832,5003. Initial On-site AuditWith Existing Certifications827648460.3333$450.00$12,299$114,589$126,887Without Existing Certifications3,42883656530.3333$450.00$43,196$54,745$97,9404. Develop Quality Control Manual--------5. Qualifying Test51 Product111291401.6667$480.00$8,800$103,202$112,0022 Products3,42883656533.3333$480.00$460,795$583,994$1,044,7906. Qualifying Test Shipping51 Product111291400.3333$200.00$733$8,599$9,3322 Products3,42883656530.6667$200.00$38,402$48,669$87,0717. Correlation Test--------8. Quarterly On-site Audit6Standard3,43397131,0523.6667$450.00$559,355$1,176,461$1,735,816NAF (With New Certification)172762931.0000$450.00$7,650$124,200$131,850NAF (With Existing Certification)141401540.6667$450.00$4,200$42,002$46,2029. Large Scale Testing Fee71 Standard (Existing)886944.0000$480.00$15,360$165,120$180,4802 Standard (New)3,42771544316.0000$480.00$797,760$443,520$1,241,2802 Standard (Existing)544735278.0000$480.00$207,360$1,816,320$2,023,6801 NAF322251.0000$480.00$1,440$10,560$12,0002 NAF314164472.0000$480.00$29,760$399,360$429,12010. Large Scale Testing Shipment71 Standard (Existing)886944.0000$50.00$1,600$17,200$18,8002 Standard (New)3,42771544316.0000$50.00$83,100$46,200$129,3002 Standard (Existing)544735278.0000$50.00$21,600$189,200$210,8001 NAF322251.0000$50.00$150$1,100$1,2502 NAF314164472.0000$50.00$3,100$41,600$44,70011. On-site Audit Travel3701,1291,4991.0000$1,500.00$555,000$1,693,500$2,248,50012. Desk Audits8Standard3,43397131,0528.0000$250.00$678,000$1,426,000$2,104,000NAF172762930.6667$250.00$2,833$46,002$48,83613. Purchase of Small Chamber Testing Unit32953506450.3333$10,000.00$983,235$1,166,550$2,149,78514. Quality Control Testing--------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 80 of 99Exhibit 6-24: Three Year Average Non-Labor Costs (includingbaseline), by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotal15. Lost Product72 Standard (HWPW - Existing)3,4295304599528.0000$15.68$2,442,317$2,516,828$4,959,1451 NAF (HWPW - New)5556024.3333$15.68$1,908$20,985$22,8931 NAF (HWPW - Existing)555601.0000$15.68$78$862$9412 NAF (HWPW - New)1121122248.6667$15.68$8,394$161,013$169,4072 NAF (HWPW - Existing)776832.0000$15.68$220$2,383$2,6031 Standard (PB/MDF - Existing)88694264.0000$8.96$18,924$203,428$222,3512 Standard (PB/MDF - New)-4646536.0000$8.96-$220,918$220,9182 Standard (PB/MDF - Existing)36277313528.0000$8.96$170,312$1,310,454$1,480,7651 NAF (PB/MDF - New)1101124.3333$8.96$218$2,180$2,3981 NAF (PB/MDF - Existing)432361.0000$8.96$36$287$3232 NAF (PB/MDF - Existing)764712.0000$8.96$125$1,147$1,27216. Initial Recordkeeping98,57611,94520,5210.3333$1,000.00$2,858,381$3,981,269$6,839,64917. Recurring Recordkeeping--------18. Initial Labeling10Minor Changes - Producers--------Minor Changes - Fabricators--------Major Changes – Producers32771083850.3333$125.00$11,541$4,500$16,040Major Changes - Fabricators andWholesalers1116,2666,34422,6100.3333$125.00$677,682$264,307$941,989Three-Year Average Cost$12,862,997$24,388,221$37,251,216*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 81 of 99Exhibit 6-24: Three Year Average Non-Labor Costs (includingbaseline), by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerResponseTotal CostDomesticForeign1TotalDomesticForeignTotalNotes: 1. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value of imports for the affected fabricator NAICS to the total domesticvalue of shipments for these NAICS (which is 39 percent) and 2)applying it to the number of domestic firms in each sector. The analysis assumes that there foreign retailers do not typically exportcomposite wood products or goods containing composite wood products into the United States. To remain consistent with the Economic Analysis, which assumes that there is uncertified product beingimported into the U.S., the analysis estimates the number of certified foreign mills as 20 percent of the total number of certified mills.2. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. This analysis assumes that that mills will seek standard certification for uncertified and ULEF product lines. The exceptions are 1) mills that are both ULEF and NAF certified, which are assumed toswitch to two NAF product lines; and 2) uncertified hardwood plywood producers, which are assumed to switch to NAF certification.5. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are assumed not to need to perform qualifying or correlation testingbecause it is assumed that theirprevious testing is sufficient.6. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.7. The respondents sum to more than the total number of respondents because some respondents are assumed to have both standardand NAF certifications.8. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.9. Firms that are manufacturers under TSCA (i.e., composite panel producers [including the estimated two percent of wood veneerlaminated product producersdefined as hardwood plywoodproducers], fabricators, and wholesalers that import composite wood products) must keep records showing the date of purchase, the supplier, and all precautions taken to ensure that the product meetsthe emissions standards. However, composite panel producers and fabricators are not expected toneed to makeany initial changes to their recordkeeping systems.This analysis assumes that 28 percentof domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, it is assumed that 57 percent of wholesalersthat are not already complying withthe CARB ATCM will have initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.10. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need tomodify their labels to include their name, the date the finished goodwas produced, and a statement of compliance. Retailers are notrequired to modify their labelingsystem to comply with the proposed rule assuming they do not modify the packaging of the productsthey purchase. This analysisassumes that all 33 percent of fabricators thatare not already complying with the CARB ATCM (because their products are not sold inCalifornia) will incur a non-laborcost of $125.00 for purchasing stamps for labeling. Producers and wholesalers are not expected to incur any non-labor costs from initial labeling.11. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 82 of 99Exhibit 6-25: Incremental First Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotal1. Rule Familiarization--------2. Certification Fee2Uncertified to Standard3,42771544311$6,000$1,662,000$924,000$2,586,000ULEF to Standard111141251$2,300$25,300$262,200$287,500NAF (With New Certification)112112221$6,000$66,000$1,266,000$1,332,0003. Initial On-site AuditWith Existing Certifications82764846-$450---Without Existing Certifications3,42883656531$450$129,600$164,250$293,8504. Develop Quality Control Manual--------5. Qualifying Test51 Product111291405$480$26,400$309,600$336,0002 Products3,428836565310$480$1,382,400$1,752,000$3,134,4006. Qualifying Test Shipping51 Product111291401$200$2,200$25,800$28,0002 Products3,42883656532$200$115,200$146,000$261,2007. Correlation Test5--------8. Quarterly On-site Audit6Uncertified to Standard3,42771544313$450$373,950$207,900$581,850ULEF to Standard111141253$450$14,850$153,900$168,750NAF (With New Certification)112112221$450$4,950$94,950$99,9009. Large Scale Testing Fee1 New Standard564693$480$7,200$92,160$99,3602 New Standard3,42771544316$480$797,760$443,520$1,241,2802 ULEF to 2 Standard111141256$480$31,680$328,320$360,0001 New NAF665711$480$2,880$31,200$34,0802 New NAF112112222$480$10,560$202,560$213,12010. Large Scale Testing Shipment1 New Standard564693$50$750$9,600$10,3502 New Standard3,42771544316$50$83,100$46,200$129,3002 ULEF to 2 Standard111141256$50$3,300$34,200$37,5001 New NAF665711$50$300$3,250$3,5502 New NAF112112222$50$1,100$21,100$22,20011. On-site Audit Travel2883656531$1,500$432,000$547,500$979,50012. Desk Audits7Uncertified to Standard3,42771544318$250$554,000$308,000$862,000ULEF to Standard111141258$250$22,000$228,000$250,000NAF (With New Certification)112112222$250$5,500$105,500$111,000*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 83 of 99Exhibit 6-25: Incremental First Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotal13. Purchase of Small Chamber Testing Unit22953506451$10,000$2,950,000$3,500,000$6,450,00014. Quality Control Testing--------15. Lost Product1 New Standard - PB/MDF56469268$8.96$12,006$153,682$165,6882 New Standard - HWPW3,4277154431536$15.68$2,328,041$1,294,290$3,622,3312 ULEF to 2 Standard - PB/MDF32730528$8.96$14,193$127,734$141,9262 ULEF to 2 Standard - HWPW88795528$15.68$66,232$720,276$786,5091 ULEF to 1 NAF - PB/MDF1101167$8.96$600$6,003$6,6041 ULEF to 1 NAF – HWPW5556067$15.68$5,253$57,781$63,0342 New NAF – HWPW11211222142$15.68$24,492$469,804$494,29616. Initial Recordkeeping88,57611,94520,5211$1,000.00$8,576,000$11,945,000$20,521,00017. Recurring Recordkeeping--------18. Initial Labeling9Minor Changes - Producers--------Minor Changes - Fabricators--------Major Changes – Producers32771083851$125.00$34,625$13,500$48,125Major Changes - Fabricators and Wholesalers1016,2666,34422,6101$125.00$2,033,250$793,000$2,826,250Total - Year 1$21,799,672$26,788,780$48,588,453Notes: 1. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value of imports for the affected fabricator NAICS to the total domesticvalue of shipments for these NAICS (which is 39 percent) and 2)applying it to the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export compositewood products or goods containing composite woodproducts into the United States. To remain consistent with the Economic Analysis, which assumes that there isuncertified product being importedinto the U.S., the analysis estimates thenumber of certified foreign mills as 20 percent of the total number of certified mills.2. This analysis assumes that that mills will seek standard certification for uncertified and ULEF product lines. The exceptions are 1) mills that are both ULEF and NAF certified, which are assumed toswitch to two NAF product lines; and 2) uncertified hardwood plywood producers, which are assumed to switch to NAF certification.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.5. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform qualifying or correlation testingbecause it is assumed that theirprevious testing is sufficient.6. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.7. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.8. Firms that are manufacturers under TSCA (i.e., composite panel producers [including the estimated two percent of wood veneerlaminated product producersdefined as hardwood plywoodproducers], fabricators, and wholesalers that import composite wood products) must keep records showing the date of purchase, the supplier, and all precautions taken to ensure that the product meetsthe emissions standards. However, composite panel producers and fabricators are not expected toneed to makeany initial changes to their recordkeeping systems.This analysis assumes that 28 percentof domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, it is assumed that 57 percent of wholesalersthat are not already complying with*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 84 of 99Exhibit 6-25: Incremental First Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotalthe CARB ATCM will have initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.9. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need to modify their labels to include theirname, the date the finished good wasproduced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the products theypurchase. This analysis assumes that all 33 percent of fabricators that are not already complying with the CARB ATCM (becausetheir products are not sold in California) will incur a non-labor cost of$125.00 for purchasing stamps for labeling. Producers and wholesalers are not expected to incur any non-labor costs from initial labeling.10. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 85 of 99Exhibit 6-26: Incremental Second and Third Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotal1. Rule Familiarization--------3. Certification Fee2Uncertified to Standard3,42771544311$6,000$1,662,000$924,000$2,586,000ULEF to Standard111141251$2,300$25,300$262,200$287,500NAF (With New Certification)112112221$3,700$40,700$780,700$821,4004. Initial On-site AuditWith Existing Certifications--------Without Existing Certifications3,4--------5. Develop Quality Control Manual--------6. Qualifying Test51 Product--------2 Products3,4--------7. Qualifying Test Shipping51 Product--------2 Products3,4--------8. Correlation Test5--------9. Quarterly On-site Audit6Uncertified to Standard3,42771544314$450$498,600$277,200$775,800ULEF to Standard111141253$450$14,850$153,900$168,750NAF (With New Certification)112112221$450$4,950$94,950$99,90010. Large Scale Testing Fee1 New Standard564694$480$9,600$122,880$132,4802 New Standard3,42771544318$480$1,063,680$591,360$1,655,0402 ULEF to 2 Standard111141256$480$31,680$328,320$360,0001 New NAF665711$480$2,880$31,200$34,0802 New NAF112112222$480$10,560$202,560$213,12011. Large Scale Testing Shipment1 New Standard564694$50$1,000$12,800$13,8002 New Standard3,42771544318$50$110,800$61,600$172,4002 ULEF to 2 Standard111141256$50$3,300$34,200$37,5001 New NAF665711$50$300$3,250$3,5502 New NAF112112222$50$1,100$21,100$22,20012. On-site Audit Travel2883656531$1,500$432,000$547,500$979,50013. Desk Audits7Uncertified to Standard3,42771544318$250$554,000$308,000$862,000ULEF to Standard111141258$250$22,000$228,000$250,000NAF (With New Certification)--------14. Purchase of Small Chamber Testing Unit--------*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 86 of 99Exhibit 6-26: Incremental Second and Third Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotal15. Quality Control Testing--------16. Lost Product1 New Standard - PB/MDF56469264$8.96$11,827$151,388$163,2152 New Standard - HWPW3,4277154431528$15.68$2,293,294$1,274,972$3,568,2662 ULEF to 2 Standard - PB/MDF32730520$8.96$13,978$125,798$139,7762 ULEF to 2 Standard - HWPW88795520$15.68$65,229$709,363$774,5921 ULEF to 1 NAF - PB/MDF11011-3$8.96-$27-$269-$2961 ULEF to 1 NAF – HWPW55560-3$15.68-$235-$2,587-$2,8222 New NAF – HWPW112112222$15.68$345$6,617$6,96217. Initial Recordkeeping8--------18. Recurring Recordkeeping--------19. Initial Labeling9Minor Changes - Producers--------Minor Changes - Fabricators--------Major Changes – Producers3--------Major Changes - Fabricators and Wholesalers10--------Total - Years 2 and 3$6,873,711$7,251,002$14,124,713Notes: 1. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value of imports for the affected fabricator NAICS to the total domesticvalue of shipments for these NAICS (which is 39 percent) and 2)applying it to the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export compositewood products or goods containing composite woodproducts into the United States. To remain consistent with the Economic Analysis, which assumes that there isuncertified product being importedinto the U.S., the analysis estimates thenumber of certified foreign mills as 20 percent of the total number of certified mills.2. This analysis assumes that that mills will seek standard certification for uncertified and ULEF product lines. The exceptions are 1) mills that are both ULEF and NAF certified, which are assumed toswitch to two NAF product lines; and 2) uncertified hardwood plywood producers, which are assumed to switch to NAF certification.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.5. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform qualifying or correlation testingbecause it is assumed that theirprevious testing is sufficient.6. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.7. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.8. Firms that are manufacturers under TSCA (i.e., composite panel producers [including the estimated two percent of wood veneerlaminated product producersdefined as hardwood plywoodproducers], fabricators, and wholesalers that import composite wood products) must keep records showing the date of purchase, the supplier, and all precautions taken to ensure that the product meetsthe emissions standards. However, composite panel producers and fabricators are not expected toneed to makeany initial changes to their recordkeeping systems.This analysis assumes that 28 percentof domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, it is assumed that 57 percent of wholesalersthat are not already complying withthe CARB ATCM will have initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.9. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need to modify their labels to include theirname, the date the finished good was*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 87 of 99Exhibit 6-26: Incremental Second and Third Year Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivities PerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotalproduced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the products theypurchase. This analysis assumes that all 33 percent of fabricators that are not already complying with the CARB ATCM (becausetheir products are not sold in California) will incur a non-labor cost of$125.00 for purchasing stamps for labeling. Producers and wholesalers are not expected to incur any non-labor costs from initial labeling.10. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 88 of 99Exhibit 6-27: Three Year Average Incremental Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivitiesPerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotal1. Rule Familiarization--------2. Certification Fee2Uncertified to Standard3,42771544311.0000$6,000.00$1,662,000$924,000$2,586,000ULEF to Standard111141251.0000$2,300.00$25,300$262,200$287,500NAF (With New Certification)112112221.0000$4,466.67$49,133$942,467$991,6013. Initial On-site AuditWith Existing Certifications82764846-$450.00---Without Existing Certifications3,42883656530.3333$450.00$43,196$54,745$97,9404. Develop Quality Control Manual--------5. Qualifying Test51 Product111291401.6667$480.00$8,800$103,202$112,0022 Products3,42883656533.3333$480.00$460,795$583,994$1,044,7906. Qualifying Test Shipping51 Product111291400.3333$200.00$733$8,599$9,3322 Products3,42883656530.6667$200.00$38,402$48,669$87,0717. Correlation Test--------8. Quarterly On-site Audit5Uncertified to Standard3,42771544313.6667$450.00$457,054$254,102$711,156ULEF to Standard111141253.0000$450.00$14,850$153,900$168,750NAF (With New Certification)112112221.0000$450.00$4,950$94,950$99,9009. Large Scale Testing Fee1 New Standard564693.6667$480.00$8,800$112,641$121,4412 New Standard3,42771544317.3333$480.00$975,036$542,078$1,517,1132 ULEF to 2 Standard111141256.0000$480.00$31,680$328,320$360,0001 New NAF665711.0000$480.00$2,880$31,200$34,0802 New NAF112112222.0000$480.00$10,560$202,560$213,12010. Large Scale Testing Shipment1 New Standard564693.6667$50.00$917$11,733$12,6502 New Standard3,42771544317.3333$50.00$101,566$56,466$158,0332 ULEF to 2 Standard111141256.0000$50.00$3,300$34,200$37,5001 New NAF665711.0000$50.00$300$3,250$3,5502 New NAF112112222.0000$50.00$1,100$21,100$22,20011. On-site Audit Travel2883656531.0000$1,500.00$432,000$547,500$979,50012. Desk Audits7Uncertified to Standard3,42771544318.0000$250.00$554,000$308,000$862,000ULEF to Standard111141258.0000$250.00$22,000$228,000$250,000NAF (With New Certification)112112220.6667$250.00$1,833$35,168$37,002*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 89 of 99Exhibit 6-27: Three Year Average Incremental Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivitiesPerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotal13. Purchase of Small Chamber Testing Unit2953506450.3333$10,000.00$983,235$1,166,550$2,149,78514. Quality Control Testing--------15. Lost Product1 New Standard - PB/MDF56469265.3333$8.96$11,887$152,153$164,0402 New Standard - HWPW3,4277154431530.6667$15.68$2,304,877$1,281,411$3,586,2882 ULEF to 2 Standard - PB/MDF32730522.6667$8.96$14,049$126,444$140,4932 ULEF to 2 Standard - HWPW88795522.6667$15.68$65,563$713,001$778,5641 ULEF to 1 NAF - PB/MDF1101120.3333$8.96$182$1,822$2,0041 ULEF to 1 NAF - HWPW5556020.3333$15.68$1,594$17,535$19,1302 New NAF - HWPW1121122248.6667$15.68$8,394$161,013$169,40716. Initial Recordkeeping88,57611,94520,5210.3333$1,000.00$2,858,381$3,981,269$6,839,64917. Recurring Recordkeeping--------18. Initial Labeling9Minor Changes - Producers--------Minor Changes - Fabricators--------Major Changes – Producers32771083850.3333$125.00$11,541$4,500$16,040Major Changes - Fabricators andWholesalers1016,2666,34422,6100.3333$125.00$677,682$264,307$941,989Three-Year Average Cost$11,848,570$13,763,049$25,611,620Notes: 1. The numbers of foreign fabricators, and wholesalers were estimated by 1) calculating the ratio of the total customs value of imports for the affected fabricator NAICS to the total domesticvalue of shipments for these NAICS (which is 39 percent) and 2)applying it to the number of domestic firms in each sector. The analysis assumes that foreign retailers do not typically export compositewood products or goods containing composite woodproducts into the United States. To remain consistent with the Economic Analysis, which assumes that there isuncertified product being importedinto the U.S., the analysis estimates thenumber of certified foreign mills as 20 percent of the total number of certified mills.2. This analysis assumes that that mills will seek standard certification for uncertified and ULEF product lines. The exceptions are 1) mills that are both ULEF and NAF certified, which are assumed toswitch to two NAF product lines; and 2) uncertified hardwood plywood producers, which are assumed to switch to NAF certification.3. This analysis assumes that two percent of wood veneer laminated product producers(277 domestic entities) will continue to use added formaldehyde resins and therefore their products will be definedas hardwood plywood. A similar proportion offoreign laminators exporting to the U.S.are also assumed to continue to use added formaldehyde resins.4. Since CARB does not certify wood veneer laminated products, allproducers of wood veneer laminated products defined as hardwood plywood will incur costs to have their products certified by aTPC as a result of the TSCA Title VI rule.5. Producers that are already CARB compliant and are not expectedadopt a more stringent certification type (e.g., NAF certification) are not assumed to need to perform qualifying or correlation testingbecause it is assumed that theirprevious testing is sufficient.6. On-site audits must be conducted at least once quarterly, unless the mill obtains NAF certification. This analysis assumes that producers with new NAF certifications will incur the burden associatedwith one on-site audit (in addition to the initial audit) and twodesk audits in the first year. Producers with existing NAF certifications under the CARB ATCM will only incur the initial on-site audit inthe first year. All producers with NAF certificationwill have one on-site audit annually thereafter.7. Desk audits are assumed to occur monthly, except in monthswith a quarterly on-site audit. Producers with new NAF certifications will incur the costs associated withtwo desk audits in the first year;none are required in subsequent years. No desk audits are required for respondents with existing NAF certification.8. Firms that are manufacturers under TSCA (i.e., composite panel producers [including the estimated two percent of wood veneerlaminated product producersdefined as hardwood plywoodproducers], fabricators, and wholesalers that import composite wood products) must keep records showing the date of purchase, the supplier, and all precautions taken to ensure that the product meets*** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***Page 90 of 99Exhibit 6-27: Three Year Average Incremental Non-Labor Costs, by Activity and Geographic Location ($2010)ActivityNumber of RespondentsNumber ofActivitiesPerRespondentCost PerActivityTotal CostDomesticForeign1TotalDomesticForeignTotalthe emissions standards. However, composite panel producers and fabricators are not expected toneed to makeany initial changes to their recordkeeping systems.This analysis assumes that 28 percentof domestic wholesalers import composite wood products or articles that contain composite wood products. In addition, it is assumed that 57 percent of wholesalersthat are not already complying withthe CARB ATCM will have initial burden to change their recordkeeping systems to comply with the TSCA Title VI rule.9. Firms that package or repackage composite wood products orfinished goods containing composite wood products will need to modify their labels to include theirname, the date the finished good wasproduced, and a statement of compliance. Retailers are not required to modify their labeling system to comply with the proposed rule assuming they do not modify the packaging of the products theypurchase. This analysis assumes that all 33 percent of fabricators that are not already complying with the CARB ATCM (becausetheir products are not sold in California) will incur a non-labor cost of$125.00 for purchasing stamps for labeling. Producers and wholesalers are not expected to incur any non-labor costs from initial labeling.10. Total excludes the estimated 2 percent ofwood veneer laminated product producers expected to continue to use added formaldehyde resins.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 91 of 99 

# (iii) Total Burden and Costs 1342

1343

Exhibit 6-28 presents a summary of the to tal non-incremental burde n and costs for this 1344

information collection request over the first th ree years of the rule, by geographic location. 1345

Exhibit 6-29 presents a summary of the total in cremental burden and costs for this information 1346

collection request over the first th ree years of the rule, by geographic location. As indicated, the 1347

total average domestic incremental cost over the fi rst three years of the rule is approximately 1348

86.2 percent of the total domestic co st of the rule. Note that th e incremental costs for domestic 1349

respondents presented in Exhibit 6-29 differ from the values in the Economic Analysis. This is 1350

due to two factors: 1) the Economic Analysis in cludes the costs of changes to raw materials for 1351

composite panel producers, while the ICR doe s not (because it is not a reporting or 1352

recordkeeping cost); and 2) the burden in the ICR is calculated at the activity level and rounded 1353

to nearest tenth of a percentage, while the costs in the Economic Analysis are calculated at the 1354

establishment level. 1355

1356

Exhibit 6-28: Total (including baseline) Burden and Costs ($2010)

Geographic Location of

Respondents Labor Non-Labor Cost Total Cost Hours Cost

Year 1

Domestic Respondents 9,048,102 $449,847,909 $22,991,311 $472,839,220

Foreign Respondents 4,137,039 $157,096,495 $37,563,583 $194,660,078

Total Respondents 13,185,140 $606,944,290 $60,554,894 $667,499,184

Years 2 and 3

Domestic Respondents 2,973,560 $83,966,474 $7,799,524 $91,765,998

Foreign Respondents 2,379,880 $80,867,858 $17,801,356 $98,669,214

Total Respondents 5,353,441 $164,834,359 $25,600,880 $190,435,239

Three Year Average

Domestic Respondents 4,998,206 $205,914,848 $12,862,997 $218,777,845

Foreign Respondents 2,965,542 $106,274,877 $24,388,221 $130,663,098

Total Respondents 7,963,747 $312,189,663 $37,251,216 $349,440,879

Notes: Values may not sum to totals due to rounding



# 1357

Exhibit 6-29: Total Incremental Burden and Costs, by Geographic Location ($2010)

Geographic Location of

Respondents Labor Non-Labor

Cost Total Incremental

Cost Hours Cost

Year 1

Domestic Respondents 7,935,088 $420,694,153 $21,799,672 $442,493,825

Foreign Respondents 3,153,692 $121,134,327 $26,788,780 $147,923,107

Total Respondents 11,088,777 $541,828,310 $48,588,453 $590,416,763

Years 2 and 3

Domestic Respondents 1,860,216 $54,789,167 $6,873,711 $61,662,878

Foreign Respondents 1,393,518 $44,690,540 $7,251,002 $51,941,542

Total Respondents 3,253,732 $99,479,608 $14,124,713 $113,604,321

Three Year Average

Domestic Respondents 3,884,972 $176,745,392 $11,848,570 $188,593,962

Foreign Respondents 1,980,186 $70,169,347 $13,763,049 $83,932,396

Total Respondents 5,865,153 $246,914,480 $25,611,620 $272,526,100

Notes: Values may not sum to totals due to rounding



# 1358

1359

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 92 of 99 

# 1360

6(c) Estimating Agency Burden and Cost 1361

1362

EPA resources would be devot ed to reviewing and analyzi ng data submissions, compiling 1363

and recording data, maintaining hard-copy files of submitted data, auditing and inspecting 1364

facilities, producing audit and inspection reports, responding to public inquiries, and providing 1365

regulatory interpretations. EPA anticipates that these activities will require the equivalent of one 1366

full-time employee (FTE) at Headquarters. Us ing the 2010 Washington/Baltimore area annual 1367

salary rate for a GS-13, Step 5 employee ($100, 904), and multiplying by a loading factor of 1.6 1368

to reflect overhead and fringe benefits resu lts in an estimated EPA cost of $161,446 per year. 1369

1370

6(d) Bottom Line Burden Hours and Costs/Master Table 1371

1372

Exhibit 6-30 presents the frequency for each of the respondent activities assumed in the 1373

bottom line burden hour and cost tables. Exhibi t 6-31 and Exhibit 6-32 present the respective 1374

total and incremental bottom line burden and cost s, by activity frequency and respondent type. 1375

In Exhibit 6-31, all activities of a given fre quency that a single re spondent performs are 1376

accounted for as a single response for that time pe riod. For example, if a respondent performs 1377

two different quarterly activities pe r quarter this is accounted for as a single response per quarter 1378

or four responses per year (e.g., paying the large scale testing fee and paying shipment costs for 1379

large scale testing is counted as a single response not two separate responses). 1380

1381

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 93 of 99 

# 1382

Exhibit 6-30: Frequency of Activities

Activity Assumed Ac tivity Frequency 1



# 1. Rule Familiarization

Producers One-Time

Fabricators One-Time

Wholesalers One-Time

Retailers One-Time

2. Certification Fee

Standard Annual

New NAF Annual

Existing NAF/ULEF Annual

3. Initial On-site Audit

With Existing Certifications One-Time

Without Existing Certif ications One-Time

4. Develop Quality Control Manual One-Time

5. Qualifying Test

1 Product One-Time

2 Products One-Time

6. Qualifying Test Shipping

1 Product One-Time

2 Products One-Time

7. Correlation Test

1 Product One-Time

2 Products One-Time

8. Quarterly On-site Audit

Standard Quarterly

NAF (With New Certification) Annual

NAF (Existing Certifications Only) Annual

9. Large Scale Testing Fee

1 Product with Standard Certif ication (Existing) Quarterly

2 Products with Standard Ce rtification (New) Quarterly

2 Products with Standard Certif ication (Existing) Quarterly

1 Product with NAF Certification Annual

2 Product with NAF Certification Annual

10. Quarterly On-site Audit Shipment

Standard Certification Quarterly

NAF (With New Certification) Annual

NAF (With Existing Ce rtification) Annual

10a. Large Scale Testing Shipment

1 Product with Standard Certif ication (Existing) Quarterly

2 Products with Standard Ce rtification (New) Quarterly

2 Products with Standard Certif ication (Existing) Quarterly

1 Product with NAF Certification Annual

2 Product with NAF Certification Annual

11. On-site Audi t Travel Annual

12. Desk Audits

Standard Annual

NAF (With New Certification) Annual

13. Purchase of Small Cham ber Testing Unit One-Time

14. Quality Control Testing - HWPW

Standard Certification Daily

New NAF Certification One-Time

15. Lost Product

2 Products with Standard Certif ication (HWPW - Existing) Daily

1 Product with NAF Certification (HWPW - New) Annual

1 Product with NAF Certifica tion (HWPW - Existing) Annual

2 Products with NAF Certification (HWPW - New) Annual

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 94 of 99 Exhibit 6-30: Frequency of Activities

Activity Assumed Ac tivity Frequency 1



# 2 Products with NAF Certifica tion (HWPW - Existing) Annual

1 Product with Standard Certific ation (PB/MDF - Existing) Daily

2 Products with Standard Certif ication (PB/MDF - New) Daily

2 Products with Standard Certifi cation (PB/MDF - Existing) Daily

1 Product with NAF Certification (PB/MDF - New) Annual

1 Product with NAF Certificatio n (PB/MDF - Existing) Annual

2 Products with NAF Certifica tion (PB/MDF - Existing) Annual

16. Initial Recordkeeping One-Time

17. Recurring Recordkeeping

Producers Annual

Fabricators Annual

Wholesalers Annual

Retailers Annual

18. Initial Labeling

Minor Changes - Producers One-Time

Minor Changes - Fabricators One-Time

Major Changes - Producers One-Time

Major Changes - Fabricators and Wholesalers One-Time

1 

# This represents the activity frequency assumed for th e purpose of the calculations in Exhibit 6-33 (which

classifies activities as one-time, annual, quarterly, or da ily), not the frequency required by the rule. For example,

the rule requires panel producers to be certified by a TPC every two years. Exhibit 6-33 assumes that

certification occurs annually but halves the average burde n per response, so that the total burden is unchanged.



# 1383

1384

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 95 of 99 

# 1385 Exhibit 6-31: Summary of Three Year Average Total (including baseline) Burden and Costs, by

Geographic Location ($2010)

Response and

Respondent Type Number of

Respondents Average Responses

per Respondent Average Burden per

Response (hours) Total Burden Total Cost

Domestic

Producers

One-Time 370 0.3333 140.8681 17,372 $2,361,644

Annual 370 1.0000 59.6811 22,082 $5,026,015

Quarterly 370 4.0000 3.7797 5,594 $2,085,323

Daily 370 260.0000 1.8324 176,280 $15,210,894

Fabricators

One-Time 79,701 0.3333 25.7560 684,190 $34,047,670

Daily 79,701 1.0000 24.1482 1,924,638 $47,808,008

Wholesalers

One-Time 85,560 0.3333 10.9281 311,639 $19,115,185

Annual 85,560 1.0000 9.8697 844,448 $21,567,202

Retailers

One-Time 759,048 0.3333 4.0000 1,011,963 $71,555,904

Annual 1 

# 759,048 1.0000 - - -

Total 924,679 4,998,206 $218,777,845

Foreign

Producers

One-Time 1,129 0.3333 76.8279 28,910 $3,888,772

Annual 1,129 1.0000 58.6873 66,258 $14,680,318

Quarterly 1,129 4.0000 2.6050 11,764 $4,693,501

Daily 1,129 260.0000 1.2631 370,760 $30,709,062

Fabricators

One-Time 31,083 0.3333 25.7470 266,738 $13,274,319

Daily 31,083 1.0000 24.2524 753,838 $18,725,336

Wholesalers

One-Time 33,368 0.3333 26.1753 291,110 $14,652,563

Annual 33,368 1.0000 35.2483 1,176,164 $30,039,228

Retailers

One-Time - 0.3333 - - -

Total 65,580 2,965,542 $130,663,099

Total

Producers

One-Time 1,499 0.3333 92.6350 46,282 $6,250,415

Annual 1,499 1.0000 58.9326 88,340 $19,706,338

Quarterly 1,499 4.0000 2.8949 17,358 $6,778,822

Daily 1,499 260.0000 1.4036 547,040 $45,919,953

Fabricators

One-Time 110,784 0.3333 25.7534 950,926 $47,321,899

Daily 110,784 1.0000 24.1775 2,678,476 $66,533,344

Wholesalers

One-Time 118,928 0.3333 15.2061 602,749 $33,767,748

Annual 99,908118,928 1.0000 20.2247

16.9902 2,020,613 $51,606,456

Retailers

One-Time 759,048 0.3333 4.0000 1,011,963 $71,555,904

Annual 1 

# 759,048 1.0000 - - -

Total 990,259 7,963,747 $349,440,879

1. Retailers are assumed not to import products directly, in whic h case they are only required to keep invoices and bills of la ding.

These records are typically ke pt as a customary business pr actice, so no annual burden is attributed to retailers.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 96 of 99 Exhibit 6-32: Summary of Three Year Average Total Incremental Burden and Costs, by Geographic

Location ($2010)

Response and

Respondent

Type Number of

Respondents Average Activities

per Respondent Average

Burden per

Response

(hours) Total

Burden Total Cost

Domestic

Producers

One-Time 370 0.3333 140.8681 17,372 $2,349,345

Annual 370 1.0000 58.3811 21,601 $4,317,674

Quarterly 370 4.0000 3.1892 4,720 $1,930,023

Daily 370 260.0000 1.5568 149,760 $13,083,250

Fabricators

One-Time 79,701 0.3333 25.7560 684,190 $34,047,670

Annual 47,540 1.0000 24.2646 1,153,539 $28,653,909

Wholesalers

One-Time 85,560 0.3333 10.9281 311,639 $19,115,185

Annual 23,10253,731 1.0000 22.94999.8675 530,188 $13,541,002

Retailers

One-Time 759,048 0.3333 4.0000 1,011,963 $71,555,904

Annual 1 

# 658,150 1.0000

- - -

Total 924,679 3,884,972 $188,593,962

Foreign

Producers

One-Time 1,129 0.3333 76.8279 28,910 $3,774,183

Annual 1,129 1.0000 54.8654 61,943 $8,201,018

Quarterly 1,129 4.0000 0.9035 4,080 $1,784,589

Daily 1,129 260.0000 0.4748 139,360 $12,217,739

Fabricators

One-Time 31,083 0.3333 25.7470 266,738 $13,274,319

Annual 18,476 1.0000 24.3314 449,547 $11,166,747

Wholesalers

One-Time 33,368 0.3333 26.1753 291,110 $14,652,563

Annual 20,955 1.0000 35.2421 738,498 $18,861,239

Retailers

One-Time

- 0.3333

- - -

Total 65,580 ,980,186 83,932,397

Total

Producers

One-Time 1,499 0.3333 92.635 46,282 $6,123,528

Annual 1,499 1.0000 55.7325 83,543 $12,518,622

Quarterly 1,499 4.0000 1.4675 8,799 $3,714,540

Daily 1,499 260.0000 0.7418 289,120 $25,300,988

Fabricators

One-Time 110,784 0.3333 25.7534 950,926 $47,321,899

Annual 66,016 1.0000 24.2833 1,603,086 $39,820,656

Wholesalers

One-Time 118,928 0.3333 15.2061 602,749 $33,767,748

Annual 74,686 1.0000 39.506916.9869 1,268,685 $32,402,215

Retailers

One-Time 759,048 0.3333 4.0000 1,011,963 $71,555,904

Annual 1 

# 658,150 1.0000

- - -

Total 990,259 5,865,153 272,526,100

1. Retailers are assumed not to import products directly, in whic h case they are only required to keep invoices and bills of la ding.

These records are typically ke pt as a customary business pr actice, so no annual burden is attributed to retailers.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 97 of 99 

# 1386

6(e) Reasons for Changes in Burden 1387

1388

Not applicable. These are new requir ements so there was no previous ICR. 1389

1390

6(f) Burden Statement 1391

1392

The annual public burden for this collect ion of information, which is approved under 1393

OMB Control No. xxxx-xxxx, is estimated to be 4.64 hours per response (i.e., 7,963,747 burden 1394

hours for an estimated 1,716,048 responses). 28 

# According to the Paperwork Reduction Act, 1395

“burden” means the total time, effort, or fina ncial resources expended by persons to generate, 1396

maintain, retain, or disclose or provide inform ation to or for a Fede ral agency. For this 1397

collection it includes such activities as annual fa miliarization with requ irements, recordkeeping, 1398

notification, and reporting requirements. An agen cy may not conduct or sponsor, and a person is 1399

not required to respond to, a co llection of information unless it displays a currently valid OMB 1400

control number. The OMB control numbers for EP A’s regulations in titl e 40 of the CFR, after 1401

appearing in the Federal Regist er, are listed in 40 CFR part 9 and included on the related 1402

collection instrument or form, if applicable. 1403

1404

To comment on the Agency’s need for this information, the accuracy of the provided 1405

burden estimates, and any suggested methods for minimizing respondent burden, including the 1406

use of automated collection techniques, EPA has established a public docket for this ICR under 1407

Docket ID No. EPA-HQ-OPPT-XXXX-XXXX. The docket is available for public viewing at 1408

the Pollution Prevention and Toxics Docket in the EPA Docket Center (EPA/DC). The EPA/DC 1409

Public Reading Room is located in the EPA West Building, Room 3334, 1301 Constitution Ave., 1410

NW., Washington, DC. The EPA/DC Public Readi ng Room is open from 8:30 a.m. to 4:30 p.m., 1411

Monday through Friday, excluding legal holidays. The telephone number for the EPA/DC 1412

Public Reading Room is (202) 566-1744, and th e telephone number for the Pollution Prevention 1413

and Toxics Docket is (202) 566-0280. An electr onic version of the public docket is available 1414

through the Federal Docket Management Syst em (FDMS) at www.regulations.gov. Use FDMS 1415

to submit or view public comments, access the inde x listing of the contents of the public docket, 1416

and to access those documents in the public docket that are available electronically. Once in the 1417

system, select “search,” then key in the docket ID number identified above. Also, you can send 1418

comments to the Office of Information and Re gulatory Affairs, Offi ce of Management and 1419

Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office for EPA. Please 1420

include the EPA Docket ID No. EPA-HQ- OPPT-XXXX-XXXX and OMB control number 1421

xxxx-xxxx in any correspondence. 1422

1423

1424

1425

28 

# The total number of responses is calculated by taking the sum of the products of the number of respondents and the number of

responses presented in Exhibit 6-31.

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 98 of 99 

# References 1426

1427

California Air Resources Board. 2011. CARB List of Certified Mills

. 

# 1428

Composite Panel Association. 2011. 2011 Surface & Panel Buyers Guide

. 

# 1429

Personal Communication with AHFA. 2010. Conversation between Bill Perdue (American Home 

# 1430

Furnishings Alliance) and Abt Associates Inc. November 3, 2010. 

# 1431

Personal Communication with BIFMA. 2010. Brad Miller's (BIFMA) Written Responses to Questions 

# 1432

about FSCWPA Impacts on Members . November 23, 2011. 

# 1433

Personal Communication with CRA. 2011. Conversation between Pamela Williams (California Retailers 

# 1434

Association) and Abt Associates Inc. January 20, 2011. 

# 1435

Personal Communication with HPVA. 2011. Conversation between Kip Howlett (HPVA) and Abt 

# 1436

Associates Inc. January 4, 2011. 

# 1437

U.S. Bureau of Labor Statistics (BLS). 2009. Occupational Employment Statistics 2009 Mean Hourly 

# 1438

Wages

. 

# 1439

U.S. Bureau of Labor Statistics (BLS). 2011. BLS Employer Cost for Employee Compensation (ECEC) 

# 1440

Data for all private industry for 2009-2010

. 

# 1441

U.S. Census Bureau. 1997. 1992 Enterprise Statistics: Company Summary

. 

# 1442

U.S. Census Bureau. 2009. Sector 42: EC0742I1: Wholesale Trade: Industry Series: Preliminary Summary 

# 1443

Statistics for the United States: 2007

. 

# 1444

U.S. Census Bureau. 2010a. Sector 44: EC0744SLLS1: Retail Trade: Subject Series - Product Lines: 

# 1445

Product Lines Statistics by Kind of Business for the United States and States: 2007

. 

# 1446

U.S. Census Bureau. 2010b. Sector 31: EC0731SG3: Manufacturing: Summary Series: General Summary: 

# 1447

Industry Statistics for Subsectors and Industries by Employment Size: 2007. 

# 1448

U.S. Census Bureau. 2010c. Sector 44: EC0744SSSZ3: Retail Trade: Subject Series - Estab & Firm Size: 

# 1449

Summary Statistics for Single Unit and Multiunit Firms for the United States: 2007

. 

# 1450

U.S. Census Bureau. 2010d. Sector 42: EC0742A1: Wholesale Trade: Geographic Area Series: Summary 

# 1451

Statistics for the United States

. 

# 1452

U.S. Census Bureau. 2010e. Sector 31: EC0731A1: Manufacturing: Geographic Area Series: Industry 

# 1453

Statistics for the States

. 

# 1454

U.S. Census Bureau. 2010f. Sector 42: EC0742SSSZ5: Wholesale Trade: Subject Series - Estab & Firm 

# 1455

Size: Summary Statistics by Employment Size of Firms for the United States: 2007

. 

# 1456

U.S. Census Bureau. 2010g. Sector 44: EC0744SSSZ4: Retail Trade: Subject Series - Estab & Firm Size: 

# 1457

Summary Statistics by Sales Size of Firms for the United States: 2007

. 

# 1458

U.S. Census Bureau. 2010h. Sector 00: NS0800A1: 2008 Nonemployer Statistics: Geographic Area Series: 

# 1459

Nonemployer Statistics by Legal Form of Organization: 2008 

# 1460

U.S. Census Bureau. 2010i. Data Item: Wholesale type of operation.” American FactFinder Help. Census 

# 1461

Data Information

. 

# 1462

U.S. Census Bureau. 2010j. Sector 42: EC0742SSSZ3: Wholesale Trade: Subject Series - Estab & Firm 

# 1463

Size: Summary Statistics for Single Units and Multiunit Firms for the United States: 2007

. 

# 1464

U.S. Census Bureau. 2010k. Statistics for U.S. Businesses (SUSB) . Number of Firms, Number of 

# 1465

Establishments, Employment, Annual Payroll, and Estim ated Receipts by Enterprise Receipt Size for the 

# 1466

United States, All Industries: 2007 . December 15, 2010. 

# 1467

# *** EO 12866 Review Draft – Deliberative – Do Not Quote, Cite, or Release During Review***



# Page 99 of 99 U.S. Census Bureau. 2010l. Sector 44: EC0744A1: Retail Trade: Geographic Area Series: Summary 

# 1468

Statistics for the United States, States, Metro Areas, Counties, and Places: 2007

. 

# 1469

U.S. Census Bureau. 2011. Sector 42: EC0742SLLS1: Wholesale Trade: Subject Series - Product Lines: 

# 1470

Product Lines Statistics by Kind of Business for the United States and States: 2007

. 

# 1471

U.S. Internal Revenue Service. 2007. Starting a Business and Keeping Records . Publication 583. Revised 

# 1472

January 2007. 

# 1473

U.S. International Trade Commission. 2011. U.S. Interactive Tariff and Trade Dataweb

. 

# 1474

1475

1476