# Need to return call by / at/between and . Signature: ___________________________ Project No.: 0207.04.005.208 DISTRIBUTION

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# Project Name: Formaldehyde Occupational Exposure

Assessment

TELEPHONE CALL RECORD

Outgoing Call Date: 06/11/2009 Time: 3:00 PM ET

Company Name: Hardwood Plywood Veneer Association Contact Name: Kip Howlett

Phone No.: (703)-435-2900 x103

Name: Jason Sese Eastern Research Group

GENERAL SUBJECT:



# TOPICS DISCUSSED AND ACTION TAKEN

J. Sese called Kip Howlett at 3 PM on Thursday June 11, 2009 as scheduled via email.

See attached response sheet.Need to return call by/at/betweenand. Signature: ___________________________1.HPVA represents 75-90% of production capacity in North Americaa.Percentage of representation of U.S. productionb.Representation of secondary manufacturers (e.g., furnituremfrs) and downstream users (wholesalers, retailers)c.Market Profile?- HPVA represents over 90% of U.S Production. But because of housingdepression and imports – a lot of capacity has been idled andpermanently shutdown; e.g. Chesapeake.- HPVA has some associate members, such as furniture companies; butthey are not the core of memberships (veneers, HWPW, flooring).-North American capacity of HWPW (US is about 80%):2007: capacity = 1.999 billion ft2;production = 997 million ft22008: capacity = 1.827 billion ft2; production = 842 million ft2(766million ft2was unfinished)- Of 739 million ft2used domestically in North America, 205 million issold to distributers with 1 facility; 361 million ft2is sold to distributerswith multiple facilities (regional). Distributers send wood to cabinetfurniture manufacturers and millworking facilities. Distribution isprobably the same as these breakdowns:* 27 million ft2sold to furniture MFG (big furniture companies)* 22 million ft2to cabinets (kitchen cabinets about 50% of the HWPW)* 16.7 million ft2to fixture industry.* 53.6 million ft2directly into retail (Home Depot, Lowes).Information about the amount used for flooring is not yet collected.2.HWPW manufacturinga.Inventories on-site and off-siteb.Use rates for downstream manufacturing or usec.Imports and contribution to overall throughputd.Customer-specific processing of HWPWsee response to Q1.- use rates not available.- 80% of market is imported HWPW- unfinished HWPW is finished by OEM; prefinished will probably bycut and ripped (tongue and groove) for flooring.3.Product flowa.Where does the product go after it is manufactured?b.What portion of the production is stored in warehouses priorto being sold to customers? Sold directly to secondarymanufacturers? Sold directly to downstream users?c.What portion of the production from secondary manufacturerssee response to Q1.- HWPW is stored in warehouses at distributer facilities. However,because of market slowdown, wood may stay at the warehouse for 6months to 1 year.Need to return call by/at/betweenand. Signature: ___________________________is sold to Retailers? Wholesalers? Directly to consumers?4.Resin systems that meet CARB ATCM emission standards – Arethere current formaldehyde-based systems that meet Phase IIstandards.Yes, scavenged UF resins can be made to meet Phase II standards.5.CARB Phase I compliance of domestically manufactured HWPWa.Are all producers CARB Phase I compliant?b.Has compliance been focused on implementing changes to theprocess operations or to the resin?Approximately 1/3 of manufacturers meet Phase I standards withscavenged UF.6.CARB Phase II compliancea.Are there current members that are CARB Phase IIcompliant?b.Has compliance focused on implementing changes to theprocess operations in addition to modifications to the resinsystems?Approximately 1/3 of the companies meet Phase II standards andapproximately 1/3 of the companies reach exempt status using;* Scavenged UF* PVA* SoyPF is not used - operational problems; higher temps and longer presstimes.Depending on the core, the formaldehyde emissions increase the finalhardwood7.Are you aware of emissions or exposure studies at secondarymanufacturing facilities?No, but OSHA has a limit of 1 ppm. Large companies might haveexposures studies.8.The new CARB limits for HWPW represent an additional 70%reduction to the 95% that has already occurred under the HUDrule. In our HUD certification program over the last 25 years, wetested products which averaged 0.1 ppm which is about half theregulatory emission limit. Are these results available for HWPWand products containing HWPW?Results are available for domestic products. HWPW – mean of 0.5 ppm;wall paneling 0.1 ppm or lower; industrial closer to 0.15 ppm. Mostcompanies operate at half of the emission level.9.ANSI/HPVA HP-1 and ANSI/HPVA EF national consensusstandards are being revised now to incorporate the ARB emissionlimits. Resins are 4.5-8% of HWPW by weight compared to PB- HWPW limits will be same as CARB- Three categories will be established:1) Exempt: No-added formaldehyde (NAF);Need to return call by/at/betweenand. Signature: ___________________________and MDF which will be 9-12% by weight. Do these revised resincompositions result in CARB Phase I and Phase II compliantproducts?2) No added urea formaldehyde (NAUF – LEED point);3) Ultra low emitting formaldehyde (ULEF) e.g.scavenged UF- Engineering wood flooring is tested as used (finished)