The TPC PerspectiveErwin SchutfortProfessional Service Industries Inc.2710 West 5th AvenueEugene, OR 97402Erwin.Schutfort@psiusa.comContent• Global Scope – Regions• Inside the CertificationProcess• Statistical Analysis• Due Diligence Programs• Perspectives• North America• South America• AsiaCARB – PSI’s Global ScopePSI Field Laboratories (Asia)• Eugene, OR• Nanjing PRC• Dongguan PRC• Kota Kinabalu, MY• Sibu, MY•Thailand (June 2009)•Vietnam (May 2009)2 large chambers (ASTM E 1333)12 small chambers (ASTM D 6007)Manufacturers (Asia)• China: 144 mills• Thailand: 13• Indonesia: 16• Malaysia: 19• Taiwan: 1• Vietnam: 1http://www.arb.ca.gov/toxics/compwood/tpc/listofmills.htmManufacturers in South AmericaChileEcuadorArgentinaParaguayBrazilTPCs•InspectionsQualification TestsQuarterly AuditsRecord Keeping•Assist furniture fabricators andretailers in their Due Diligence•Level the playing field22 TPC’s globally accredited by CARBPSI = TPC-2Third Party CertifiersCARB Manufacturer CertificationInside View of the Certification ProcessInitial Audit• Overview of Facility• QA Manual Review• Sample CollectionLog Yards – Raw MaterialVeneer thickness and moisture content of raw material.Sample CollectionA3 SamplesSize is 20 cm x 30 cm10 cm distance from edgesTotal of 15 to 45 samples for a full CARB Manufacturer Certification!Plant & Press TechnologyMDF Contipress ProductionLine in ThailandParticleboard Plantin ChinaHWPW Manufacturing ProcessAdhesive TechnologyMill Laboratories (USA)• Most PB & MDF mills have a DMC orsmall chamber (ASTM D 6007)• Many HWPW mill outsource or usedesiccator method (ASTM D 5582)QA LaboratoriesTrainingCorrelationsDongwha DMM Correlation (9/23/08)JIS Desiccator [mg/L]0 1 2 3 4 5 6 7

ASTM D 6007 chamber [ppm]-0.20.00.20.40.60.81.01.21.4Dongwha Merbok Correlation (preliminary)Dongwha - Nilai - JIS Desiccator [mg/L]0 1 2 3 4 5

PSI - ASTM D 6007 Small Chamber [ppm]0.00.10.20.30.40.50.6Accuracy of Correlation depends on accuracy of bothmethods.It is necessary to determine the standard deviationin QCL calculation.Samling Correlation (12/10/08)JIS Desiccator [mg/L]0 2 4 6 8 10 12 14

ASTM D 6007 Desiccator [ppm]-0.50.00.51.01.52.02.5Certificate of Compliance• Each lot / shipmentreceives a certificate ofcompliance• Verify online at:www.carbcert.com• Assures chain ofcustody to fabricators,retailers, importers,and distributorsRegistration Number4418402077•Issued by TPC toInitiate theChain of Custody•Lot specific number•Passed to Importer•Passed to Distributor•Passed to FabricatorCARB Premium Panels• Panel manufacturersachieve a premium pricefor certified products.• Certified producers filltheir order books prior tonon-certifiedmanufacturers.• Early adopters were thewinners.STATISTICSAll Composite Wood Samples020406080100120140160 0 0.01 0. 0 2 5 0. 05 0 . 1 0.15 0. 2 0 .25 0. 3 0. 35 0.4 0.45 0. 5 0. 55 0. 6 0.65 0.7 0.75 0. 8 0. 85 0.9 0.95 1 2 3 4Formaldehyde [ppm]

FrequencyMDFHWPWPBn = 778average: 0.10 ppmmedian: 0.06 ppmmaximum: 2.93 ppmParticleboard05101520253035400 0.01 0.03 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.60.65 0.7 0.75 0.8 0.85 0.9 0.95 1 2 3 4Formaldehyde [ppm]

F re q u e n c yn = 193average: 0.19 ppmmedian: 0.12 ppmmaximum: 1.22 ppmMedium Density Fiberboard0102030405060700 0.01 0.03 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.60.65 0.7 0.75 0.8 0.85 0.9 0.95 1 2 3 4Formaldehyde [ppm]

F r e q u e n c yn = 198average: 0.11 ppmmedian: 0.06 ppmmaximum: 1.19 ppmHWPW - Veneer Core and Composite Core020406080100120 0 0. 0 1 0 .0 2 5 0.05 0.1 0.1 5 0.2 0 .2 5 0.3 0 .3 5 0 .4 0. 4 5 0. 5 0.55 0. 6 0.65 0.7 0 .7 5 0.8 0 .8 5 0 .9 0 .9 5 1 2 3 4Formaldehyde [ppm]

F r e q u e n c y'Composite Core""Veneer Core"Due Diligencereasonable prudent precautionsATCM Requirements for FurnitureManufacturers• §93120.7– (a) Emission limits for HWPW, PB, and MDF– (b) Exemptions– (c) Additional Requirements– (d) Product Labeling; Statement of Compliance– (e) Facility Inspections• §93120.12 -- Appendix 1 (d)• Sell-through provisionsDue Diligence• Show in all transactions thatmaterial is CARB compliant.• Verify the mill is TPCcertified• Verify the TPC is listed byCARB• ASK the TPC for assistancehttp://www.arb.ca.gov/toxics/compwood/tpc/listofmills.htmMiranda.Wilcox@psiusa.comPSI CARB Fabricator Program# 9408

# 9 4 0 8D6007 Chamber6. Certificate of Analysisonline report – PDF format2. get samplenumber + box3. Prepare sample



# # 9 4 0 84. Submit in Pre-paidEnvelope / Box5. PSI Analysis1. Subscribe toServiceDueDiligence # 9 4 0 88” x 10”D2 

# # 9 4 0 8PSI CARB Fabricator (2)• Subscription based analytical service3, 5, or 10 samples / month• Not a substitute for certification• Eligible for Marine Cargo Insurance -Regulation Violation endorsement• Double check the manufacturer’s productendorsementExemptionsExamples of Exemptions• Molded Particleboard• Curved Plywood• Pallets andpackaging0.84 ppmLaminated MDFMDF or hardwood plywood withcomposite core?MDF / PBVeneer laminatedon platformPerspectiveBusiness EnvironmentRegulationUnregulatedMarketForcesCARBLacey ActEPA formaldehydeCPSA (Pb in toys)REACH (EU) ....FSC, SFI, ...IOSMAT-003...ISO9001, ...E-1...CommodityServiceExperienceValueCost and EffortGoods3 ¢ / cup6 ¢ / cup$1.25 / cup$5.00 / cupCommodityServiceExperienceValueCost and EffortGoodsCarbon Tax Credits ?• CO2sequestration• 5,000,000 m3panels/yr.• 3.5 Mt CO2/ yearCARB Certified MDF/PB PanelsCARB Certificate of Compliancereports the volume and becomesBasis for Carbon Offset Calculation.PSI CARB Fabricator Program# 9408

# 9 4 0 8D6007 Chamber6. Certificate of Analysisonline report – PDF format2. get samplenumber + box3. Prepare sample



# # 9 4 0 84. Submit in Pre-paidEnvelope / Box5. PSI Analysis1. Subscribe toServiceDueDiligence # 9 4 0 88” x 10”D2 

# # 9 4 0 8Finished Products TestingFinished products with complex geometries can be tested in a large chamber.No-Loading ratio, but aPPM/SKU valueis reported (Appendix X – ASTM E 1333).Product can be declared asformaldehyde emission freeif it meets IAQ standards.0.01 ppm/chairPSI CARB ContactMiranda.Wilcox@psiusa.comMs. Miranda WilcoxCARB Project ManagerProfessional Service Industries Inc.2710 West 5th AvenueEugene, OR 97402541-484-9212