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Page 1 of 177 [RIN 2070–AJ92] EO12866_RIN2070-AJ92_Formaldehyde-Imp_NPR M_2012-03-19_rev2013-05-03_MARKUP.docx 1 

### Revised to address Interagency Comm ents received under EO 12866 Review. 2 3 BILLING CODE 6560–50–P 4 ENVIRONMENTAL PRO TECTION AGENCY 5 40 CFR Part 770 6 EPA-HQ-OPPT- 2011
- 0380 2012-0018 ; FRL–XXXX–X 7 RIN 2070–AJ92 8 Formaldehyde Emissions Standa rds for Composite Wood Products 9 AGENCY: Environmental Protection Agency (EPA). 10 ACTION: Proposed rule. 11 SUMMARY : EPA is proposing new requirements for under the Formaldehyde Standards for 12 Composite Wood Products Act, or Title VI of th e Toxic Substances Control Act (TSCA). These 13 proposed requirements are designed to implement the statutory formaldehyde emission standards 14 for hardwood plywood, medium-density fiberboard, and particleboard sold, supplied, offered for 15 sale, or manufactured (including im ported) in the United States. As directed by the statute, this 16 proposal includes provisions rela ting to, among other things, lami nated products, products made 17 with no-added formaldehyde resins or ultra low-emitting formaldehyde resins , testing 18 requirements, product labeling, chain of custody documentati on and other recordkeeping 19 requirements, enforcement, and product invent ory sell-through provision s, including a product 20 stockpiling prohibition. The composite wood product formaldehyde emission standards 21 contained in TSCA Title VI are identical to the emission standards currently in place in 22 California. The This regulatory provisions in this proposal are implements these emissions 23 standards and is designed to ensure compliance with the TSCA Title VI formaldehyde emission 24*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 2 of 177 [RIN 2070–AJ92] standards while aligning, where practical, with the re gulatory requirements in California. 25 DATES: Comments must be recei ved on or before [ insert date [60] days after date of 26 publication in the Federal Register ]. 27 ADDRESSES: Submit your comments, identified by doc ket identification (ID) number EPA28 HQ-OPPT- 2011

- 0380 2012-0018 , by one of the following methods: 29

• Federal eRulemaking Portal : http://www.regulations.gov . Follow the on-line 30 instructions for submitting comments. 31

• Mail : Document Control Office (7407M), Offi ce of Pollution Prevention and Toxics 32 (OPPT), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 33
20460–0001. 34

• Hand Delivery : OPPT Document Control Office (DCO), EPA East Bldg., Rm. 6428, 35 1201 Constitution Ave., NW., Washington, DC. Atte ntion: Docket ID Number EPA-HQ-OPPT36
2011

- 0380

. 2012-0018. The DCO is open from 8 a.m. to 4 p.m., Monday through Friday, 37 excluding legal holidays. The te lephone number for the DCO is (202) 564–8930. Such deliveries 38 are only accepted during the DCO’s normal hours of operation, and special arrangements should 39 be made for deliveries of boxed information. 40
Instructions : Direct your comments to doc ket ID number EPA-HQ-OPPT- 2011

- 0380

. 41
2012-0018. EPA's policy is that all comments receive d will be included in the docket without 42 change and may be made available on-line at http://www.regulations.gov , including any personal 43 information provided, unless the comment include s information claimed to be Confidential 44 Business Information (CBI) or other information whos e disclosure is restrict ed by statute. Do not 45 submit information that you consider to be CBI or otherwise protec ted through regulations.gov 46 or e-mail. The regulations.gov website is an “anonymous access” system, which means EPA will 47*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 3 of 177 [RIN 2070–AJ92] not know your identity or contact information unless you provide it in the body of your 48 comment. If you send an e-mail comment directly to EPA without going through 49 regulations.gov, your e-mail address will be automati cally captured and included as part of the 50 comment that is placed in the docket and made available on the Internet. If you submit an 51 electronic comment, EPA recomme nds that you include your name and other contact information 52 in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read 53 your comment due to technical difficulties and cannot contact you for clarification, EPA may not 54 be able to consider your comment . Electronic files should avoid the use of special characters, any 55 form of encryption, and be free of any defects or viruses. 56
Docket : All documents in the docket are list ed in the docket index available at 57 http://www.regulations.gov . Although listed in the index, so me information is not publicly 58 available, e.g. , CBI or other information whose disclosure is restricted by st atute. Certain other 59 material, such as copyrighted material, will be publicly available only in hard copy. Publicly 60 available docket materials ar e available elect ronically at http://www.regulations.gov , or, if only 61 available in hard copy, at the OPPT Docket. Th e OPPT Docket is located in the EPA Docket 62 Center (EPA/DC) at Rm. 3334, EPA West Bldg., 1301 Constitution Ave., NW, Washington, DC. 63 The EPA/DC Public Reading Room hours of operation are 8:30 a.m. to 4:30 p.m., Monday 64 through Friday, excluding legal holidays. The telephone number of the EPA/DC Public Reading 65 Room is (202) 566–1744, and the telephone number for the OPPT Docket is (202) 566–0280. 66 Docket visitors are required to show photographic identificati on, pass through a metal detector, 67 and sign the EPA visitor log. A ll visitor bags are processed through an X-ray machine and 68 subject to search. Visitors will be provided an EPA/DC badge that must be visible at all times in 69 the building and retu rned upon departure. 70*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 4 of 177 [RIN 2070–AJ92] FOR FURTHER INFORMATION CONTACT: For technical information contact : Cindy 71 Wheeler, National Program Chem icals Division, Office of Pollu tion Prevention and Toxics, 72 Environmental Protection Agency, 1200 Penns ylvania Ave., NW., Washington, DC 20460– 73 0001; telephone number: 202-566-0484; e-mail address: wheeler.cindy@epa.gov

. 74 For general information contact : The TSCA-Hotline, ABVI-Goodwill, 422 South 75 Clinton Ave., Rochester, NY 14620; telephon e number: (202) 554–1404; e-mail address: TSCA76 Hotline@epa.gov

. 77 SUPPLEMENTARY INFORMATION: 78 I. General Information 79 A. Does this Action Apply to Me? 80 This document is directed to the public in general. However, this document may be of 81 particular interest to the following entities: 82

• Veneer, plywood, and engineered wood pr oduct manufacturing (NAICS code 3212). 83

• Manufactured home (mobile home) ma nufacturing (NAICS code 321991). 84

• Prefabricated wood building manufacturing (NAICS code 321992). 85

• All other basic organic chemical manufacturing (NAICS code 325199), e.g. , 86 formaldehyde manufacturing. 87

• Furniture and related product manufacturing (NAICS code 337). 88

• Furniture merchant wholes alers (NAICS code 42321). 89

• Lumber, plywood, millwork, and wood panel merchant wholesalers (NAICS code 90 42331). 91

• Other construction material mercha nt wholesalers (NAICS code 423390), e.g. , 92 merchant wholesale distributor s of manufactured homes ( i.e. , mobile homes) and/or 93*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 5 of 177 [RIN 2070–AJ92] prefabricated buildings. 94

• Furniture stores (NAICS code 4421). 95

• Building material and supplies dealers (NAICS code 4441). 96

• Manufactured (mobile) home d ealers (NAICS code 45393). 97

• Motor home manufacturing (NAICS code 336213). 98

• Travel trailer and camper manufacturing (NAICS code 336214). 99

• Recreational vehicle (RV) d ealers (NAICS code 441210). 100

• Recreational vehicle merchant w holesalers (NAICS code 423110). 101

• Plastics material and resin ma nufacturing (NAICS code 325211). 102 This listing is not intended to be exhaustiv e, but rather provides a guide for readers 103 regarding entities likely to be aff ected by this action. Other types of entities not listed in this unit 104 could also be affected. The North American Industrial Classification System (NAICS) codes 105 have been provided to assist you and others in determining whet her this action might apply to 106 certain entities. If you have any que stions regarding the applicability of this action to a particular 107 entity, consult the tech nical person listed under FOR FURTHER INFORMATION 108 CONTACT

. 109 B. What Should I Consider as I Prepare My Comments for EPA? 110
1. Submitting CBI . Do not submit this information to EPA through regulations.gov or e111 mail. Clearly mark the part or all of the in formation that you claim to be CBI. For CBI 112 information in a disk or CD-ROM that you mail to EPA, mark the outside of the disk or CD113 ROM as CBI and then identify electronically within the disk or CD-ROM the specific 114 information that is claimed as CBI. In addition to one complete version of the comment that 115 includes information claimed as CBI, a copy of the comment that does not contain the 116*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 6 of 177 [RIN 2070–AJ92] information claimed as CBI must be submitted for inclusion in the public docket. Information so 117 marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 118
2. Tips for preparing your comments . When submitting comments, remember to: 119 i. Identify the document by docket ID number and other identifying information (subject 120 heading, Federal Register date and page number). 121 ii. Follow directions. The Agency may ask you to respond to specific questions or 122 organize comments by referencing a Code of Federal Regulations (CFR) part or section number. 123 iii. Explain why you agree or disagree; suggest alternatives and substitute language for 124 your requested changes. 125 iv. Describe any assumptions and provide a ny technical information and/or data that you 126 used. 127 v. If you estimate potential costs or burdens, explain how you arrived at your estimate in 128 sufficient detail to allow for it to be reproduced. 129 vi. Provide specific examples to illustra te your concerns and suggest alternatives. 130 vii. Explain your views as cl early as possible, avoiding the use of profanity or personal 131 threats. 132 viii. Make sure to submit your comments by the comment period deadline identified. 133 II. Background 134 A. Executive Summary 135
1 . Purpose of the regulatory action. EPA is proposing a rule to implement the emission 136 standards and other provisions of the Form aldehyde Standards for Composite Wood Products 137 Act, enacted as Title VI of Toxic Substan ces Control Act (TSCA), 15 U.S.C. 2697. The purpose 138 of TSCA Title VI is to reduce formaldehyde emissions from composite wood products. This 139*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 7 of 177 [RIN 2070–AJ92] proposed rule would implement the emission standards established by TSCA Title VI for 140 composite wood products sold, supplied, offered fo r sale, or manufactured in the United States

. 141 (including imported products). TSCA Title VI directs EPA to promulgate supplementary 142 provisions to ensure compliance with the emissions standards by January 1, 2013. 143
2. Summary of the major provisions . TSCA Title VI requires EPA to promulgate 144 regulations that include provi sions on labeling; chain of custody requirements; sell-through 145 provisions; ultra low-emitting formaldehyde resins (ULEF); no-added formaldehyde-based resins 146 (NAF); finished goods; third-part y testing and certification; aud iting and reporting of third-party 147 certifiers; recordkeeping; enforcement; lami nated products; and exceptions from regulatory 148 requirements for products and components cont aining de minimis amounts of composite wood 149 products. The listed topics are addressed in this pr oposal, with the exception of topics related to 150 third-party certification which are being handled in a separate regulatory proposal. EPA also 151 proposes several definitions, clarifies frequency and process requirements for emissions testing, 152 and provides a means of determining test method equivalence. The emission standards 153 themselves are set by statute and ar e not altered in this proposal. 154 TSCA Title VI grants EPA the authority to mo dify the statutory definition of “laminated 155 product” and directs EPA to use al l available and relevant inform ation to determine whether the 156 definition of hardwood plywood should exempt e ngineered veneer or any laminated product. 157 EPA is proposing to exempt laminated products in which a wood veneer is attached to a 158 compliant and certified platform using a NAF re sin. EPA is also proposi ng modifications to the 159 statutory definition of “laminated product.” 160 This action includes labeling requirements for composite wood panels and finished 161 goods. It also includes “chain of custody require ments” and recordkeeping requirements with a 162*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 8 of 177 [RIN 2070–AJ92] proposed 5 3 year record retention period. EPA is also proposing to specifi cally require TSCA § 163 13 import certification for composite wood products that are articles. EP A has decided not to 164 propose an exception from any of the regulat ory requirements for pr oducts containing de 165 minimis amounts of composite wood products. 166 EPA proposes to set the manufactured-by date at 1 year after publica tion of the final rule 167 in the Federal Register. Composite wood panels made after the manufactured-by-date would be 168 subject to the emissions standards. Although TSCA Title VI allows EPA to set this date at 180 169 days after promulgation of the final implementing regulations, EPA believes that more time will 170 be needed to ensure infrastructure is in place and allow panel producers time to develop their 171 initial qualifying data for certification. 172 EPA proposes to provide producers of panels made with NAF-based resins or ULEF 173 resins with an exemption from TPC oversight an d formaldehyde emissions testing after an initial 174 testing period of 3 months for each product type . This made with NAF-based resins and 6 175 months for each product type made with ULEF resins. These specific initial testing pe riod 176 is periods are required by the statute and is are designed to ensure that the products meet the 177 TSCA section 601(a)(7) formaldehyde emission st andards for products made with NAF-based 178 resins . EPA does not propose reduced testing or exemptions the TSCA section 601(a)(10) 179 formaldehyde emission standards for products made with ULEF resins. 180
3. Costs and benefits . EPA has prepared an analysis of the potential costs and benefits 181 associated with this rulemaking. This analysis is summarized in greate r detail in Unit V.A. of this 182 proposal. The following chart Table 1 provides a brief outline of th e costs and benefits of this 183 proposal : . The estimated costs of the proposed rule exceed the quantified benefits. There are 184 additional unquantified benefits due to other avoided health effect s. After assessing both the 185*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 9 of 177 [RIN 2070–AJ92] costs and the benefits of the proposal, incl uding the unquantified benefits, EPA has made a 186 reasoned determination that the benef its of the proposal justify its costs. 187
188 Table 1. Summary of Costs and Benefits of Proposal 189 Category Description Benefits This proposed rule will reduce exposures to formaldehyde, resulting in benefits from avoided adverse health effects. For the subset of health effects where the results were quantified, the estimated annualized be nefits (due to avoided incidence of asthma , eye irritation , and nasopharyngeal cancer , and reduced female fertility ) are $ 184 20 million to $ 278 48 million per year using a 3% discount rate, and $9 1 million to $ 137 23 million per year using a 7% discount rate. There are additional unquantified benefits due to other avoided health effects. Costs The annualized costs of this proposed rule are estimated at $72 million to $81 million per year using a 3% discount rate, and $8 1 0 million to $89 million per year using a 7% discount rate. Effects on State, Local, and Tribal Governments Government entities are not expected to be subj ect to the rule’s requirements, which apply to entities that manufacture, f abricate, distribute, or sell composite wood products. The rule does not have a significant intergovernmental mandate, significant or unique effect on small governments, or have Federalism implications. Small Entity Impacts This rule would impact nearly 879, 000 small businesses: over 851,000 have costs impacts less than 1% of revenues, over 23,000 firms have impacts between 1% and 3%, and over 4,000 firms have impacts greater than 3% of revenues. Most firms with impacts over 1% have annualized costs of less than $250 per year. Environmental Justice and Protection of Children This rule increases the level of environmental protection for all affected populations without having any disproportionately high and adverse human health or environmental effects on any population, including any minority or low-income population or children. 190 B. What Action is the Agency Taking? 191 EPA is proposing a rule to implement the em ission standards and ot her provisions of the 192 Formaldehyde Standards for Composite Wood Produc ts Act, enacted as Title VI of Toxic 193 Substances Control Act (TSCA), 15 U.S.C. 2697. This proposed rule would implement 194 emissions standards established by TSCA Title VI for composite wood products sold, supplied, 195 offered for sale, or manufactured in the United States. Pursuant to TSCA section 3(7), the 196 definition of “manufacture” includes import. Under As required by Title VI, composite wood 197 products are identified as these regulations apply to hardwood plywood, medium-density 198 fiberboard, and particleboard. TSCA Title VI al so directs EPA to promulgate supplementary 199 provisions to ensure compliance with the emissions standards, including testing requirements, 200 laminated product provisions , provisions for products made with no

- added formaldehyde (NAF) 201*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 10 of 177 [RIN 2070–AJ92] resins or u ltra

- low emitting formaldehyde (ULEF) resins, product related to labeling 202 requirement s , ; chain of custody provisions for product compliance documentation, 203 recordkeeping, product inventory requirements; sell-through dates, a product stockpiling 204 prohibition, enforcement, and provisions; ultra low-emitting formaldehyde resins; no-added 205 formaldehyde-based resins; finished goods; third-party testing and certification ; auditing and 206 reporting of third-party certifiers; recordk eeping; enforcement laminated products; and 207 exceptions from the requirements of regulations promulgated pursuant to this subsection for 208 products and components containing de minimis amounts of composite wood products

. 209 EPA previously issued a proposal on the th ird party certification provisions (the TPC 210 Proposal) (Ref. 1). The TPC Proposal included pr ovisions for the accredi tation of third-party 211 certifiers (TPCs) and general requirement s for accreditation bodies and TPCs. 212 The proposed requirements in this document are consistent, to the extent EPA deemed 213 appropriate and practical, with the requirements currently in effect in California under a 214 California Air Resources Board (CARB) Airborne Toxic Control Measure (ATCM) (Ref. 2). By 215 aligning with the CARB ATCM requirements, EPA seeks to avoid differing or duplicative 216 regulatory requirements that woul d result in an increased burde n on the regulated community. 217 C. What is the Agency's Author ity for Taking this Action? 218 This proposal is being issued under the au thority of Section 601 of TSCA, 15 U.S.C. 219
2697. 220 D. Formaldehyde Sources and Health Effects 221 Formaldehyde is a colorless, flammable gas at room temperature and has a strong odor. It 222 is found in resins used in the manuf acture of composite wood products ( i.e. , hardwood plywood, 223 particleboard and medium-density fiberboard). It is also found in household products such as 224*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 11 of 177 [RIN 2070–AJ92] glues, permanent press fabrics, carpets, antisep tics, medicines, cosmetic s, dishwashing liquids, 225 fabric softeners, shoe care agents, lacquers, pl astics and paper product coa tings. It is a by-product 226 of combustion and certain other natural processes. Examples of sources of formaldehyde gas 227 inside homes include cigarette smoke , unvented, fuel-burning appliances ( e.g. , gas stoves, 228 kerosene space heaters), and composite wood products made using formaldehyde-based resins 229 (Ref. 3). 230 Formaldehyde is an irritant and the National Toxicology Program recently classified it as 231 a known human carcinogen (Ref. 4). Depending on c oncentration, formaldehyde can cause eye, 232 nose, and throat irrita tion, even when exposure is of rela tively short duration. In the indoor 233 environment, sensory reactions and various sympto ms as a result of mucous membrane irritation 234 are potential effects . There is also evidence that formal dehyde may be associated with changes 235 in pulmonary function and increased risk of asthma in children (Ref. 3 ). , including respiratory 236 symptoms. In addition, formaldehyde is a by-product of human metabolism, and thus 237 endogenous levels are present in the body. 238 In 1991, EPA classified formaldehyde as a pr obable human carcinogen, “based on limited 239 evidence in humans, and sufficient evidence in animals,” and derived an inhalation unit risk 240 factor for assessing formaldehyde cancer risk. Th e risk factor and s upporting documentation is 241 included in EPA’s Integrated Risk Information System (IRIS) assessment of formaldehyde (Ref. 242 5). Formaldehyde is also listed under section 112(b)(1) of the Clean Air Act (CAA) as a 243 hazardous air pollutant (HAP). The CAA requires EPA to regulat e emissions of HAPs from a 244 published list of industria l source categories. The EPA has de veloped lists of major and area 245 source categories that must meet emission standards for HAPs and has developed (or is 246 developing) standards for these source categ ories. The plywood and composite wood products 247*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 12 of 177 [RIN 2070–AJ92] (PCWP) National Emission Standards for Hazardous Air Pollutants (NESHAP), codified at 40 248 CFR part 63, subpart DDDD, first issued in 2004, is one of these standards. The PCWP 249 NESHAP controls emissions of formaldehyde a nd other HAPs (primarily acetaldehyde, acrolein, 250 methanol, phenol, and proprionaldehyde ) from various process units ( e.g. , blenders, dryers, 251 formers, board coolers, and pre sses) at PCWP facilities. 252 In 2004, the EPA determined that unit risk de rived from the Chemical Industry Institute 253 of Toxicology (CIIT; CIIT 1999) biologically -based cancer dose-response modeling of 254 formaldehyde-induced respiratory cancer (5.5 x 10-9 per micrograms per cubic meter ( μ g/m 3 )) 255 better reflected the current state of the science than the 1991 IRIS cancer unit risk. The authors of 256 the CIIT modeling (Conolly et al. 2004) presen ted their risk estimates as values more 257 conservative than their maximum likelihood estim ates, and as “conservative in the face of 258 modeling uncertainties.” Conseque ntly, EPA used the CIIT value in risk assessments supporting 259 regulatory actions developed under the authority of the Clean Air Act. For example, in the 2006 260 rulemaking that reconsidered th e PCWP NESHAP, OAR stated “[ i]n the case of formaldehyde, 261 we have determined that the cancer potency derived using the approa ch developed by CIIT, 262 which has been peer reviewed by an external review panel sponsored by EPA and the Canadian 263 government, represents an appropria te alternative to EPA’s current IRIS URE [unit risk estimate] 264 for formaldehyde. Therefore, this potency represen ts the best available peer-reviewed science at 265 this time.” (Ref. 6, p. 8348). However, subseque nt research published by the EPA suggests that 266 the CIIT model was not appropriate and was very sensitive to unm easured parameters such that 267 very different estimates, including the 1991 IRIS assessment values, were consistent with the 268 available scientific data. Because the CIIT values do not reflect the extent of uncertainty in 269 estimates using the data that are available, EP A has decided that those estimates do not reflect 270*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 13 of 177 [RIN 2070–AJ92] the broad range of possible risk and that the data are not suppor tive of interpreting 5.5 X 10-9 per 271 μg/m 3 as providing a health-protective estimate of human risk. Furthermore, the 1991 IRIS 272 assessment values are consistent with unit risk s estimated by Schlosser et al. (2003) based on 273 Benchmark Dose modeling of the be st available data at the time. In addition, the CIIT values do 274 not address the potential risk of increased leukemias or lymphomas. Thus, in 2010, EPA returned 275 to using the Agency’s current value on IRIS, 1.3 X 10-5 per μg/m 3 , which was last revised in 276 1991 as better reflecting the current state of the science as to the potential human cancer risk of 277 exposure to formaldehyde (Ref. 7). 278 The IRIS program in EPA’s Office of Re search and Development (ORD) recently 279 completed a draft assessment of the potential cancer and non-cancer hea lth effects that may 280 result from chronic exposure to formaldehyde by inhalation (Ref. 8). This draft IRIS assessment 281 was peer reviewed by the National Research Council of the National Academy of Sciences 282 ( NAS NRC ) with its review of the EP A’s draft assessment complete d in April of 2011 (Ref. 9). 283 The EPA will fully address all the N AS NRC recommendations on formaldehyde . The draft 284 formaldehyde IRIS assessment will be revised in response to the NAS NRC peer review and 285 public comments, and the final assessment will be pos ted on the IRIS website. In the interim, we 286 will present findings using the 1991 IRIS value as a primary estimate, and may also consider 287 other information as the science evolves. In addition, EPA developed concentration-response 288 functions to estimate the impact of ex posure to formaldehyde on eye irritation , asthma, and 289 female reproductive toxicity for use in the non-cancer benefits assessment to support this rule

. , 290 and proposes additional analysis to address re spiratory symptoms and other potential adverse 291 effects. The derivation of these c oncentration-respons e functions, uncertainties, and EPA’s 292 proposed approach for using the concentration-response functions in the benefits assessment 293*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 14 of 177 [RIN 2070–AJ92] were externally peer reviewed in 2011 (Ref. 10). While the economic analysis of cancer benefits 294 is based on the unit risk, which is a reasonable upper bound on the central estimate of risk, the 295 non-cancer benefits were evaluate d using the estimated concentr ation-response functions which 296 reflect the central effect estimat es rather than upper bounds. 297 E. History of this Rulemaking 298
1 . Overview of the CARB ATCM. In 2007, CARB issued an ATCM to reduce 299 formaldehyde emissions from hardwood pl ywood, medium-density fiberboard, and 300 particleboard, products referred to collectively as composite wood products. The CARB ATCM 301 was approved on April 18, 2008, by the California O ffice of Administrative Law and the first 302 emission standards took effect on January 1, 2009 . The CARB ATCM requires manufacturers to 303 meet formaldehyde emission standards for the co vered composite wood products that are sold, 304 offered for sale, supplied, or manufactured for use in California. The CARB ATCM also requires 305 that compliant composite wood products be used in finished goods sold, offered for sale, 306 supplied or manufactured for sa le in California. The CARB AT CM does not apply to hardwood 307 plywood and particleboard materials when inst alled in manufactured homes subject to 308 regulations promulgated by the United States Department of Housing and Urban Development 309 (HUD). 310 The CARB ATCM Phase 1 emission standa rds for hardwood plywood veneer core, 311 particleboard, and medium-density fiberboard took effect on January 1, 2009. The Phase 1 312 standard for hardwood plywood co mposite core took effect on Ju ly 1, 2009. The more stringent 313 Phase 2 standards first took effect on January 1, 2010, for hardwood plywood veneer core. 314 Phase 2 standards for medium-density fiberboa rd and particleboard took effect on January 1, 315
2011

. The final , the Phase 2 standard s to take effec t under the CARB ATCM are standard for 316*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 15 of 177 [RIN 2070–AJ92] thin medium density fiberboard took effect on January 1, 2012, and the Phase 2 standard for 317 hardwood plywood composite core , which begins took effect on July 1, 2012. 318 The CARB ATCM requires manufacturers of the regulated composite wood products to 319 demonstrate compliance with the emission standard s by having their emissions tests and quality 320 control processes certified by a TPC. TPCs must be approve d by CARB and must follow 321 specified requirements to verify that a manufact urer’s production meets applicable formaldehyde 322 emission standards and that the manufacturers follo w prescribed quality control practices. Once 323 approved by CARB, manufacturer s who use NAF resin systems are exempted from ongoing 324 testing requirements after three months of successful testing in cooperation with a TPC. 325 Manufacturers who use ULEF resin systems may be approved by CARB to reduce the frequency 326 of ongoing testing or, if they meet more stringe nt emissions requirements, may be exempted 327 from ongoing testing requirements for two years. The exemption based on ULEF resin is granted 328 after approval by CARB and six months of te sting in cooperation with a TPC. Manufacturers 329 who receive exemptions based on NAF or ULEF resin can reapply every two years for the 330 exemption from TPC oversight and formaldehyde emissions testing by submitting the chemical 331 formulation of the resin and the results of at le ast one primary or secondary method test for each 332 product type (based on a panel or set of pane ls randomly selected and tested by a TPC). 333 Under the CARB ATCM, manufacturers of composite wood products are required to 334 label their covered products to identify them as meeting either the Phase 1 or Phase 2 emission 335 standards, or as being made with either NAF or ULEF resins. Manufacturer s must also include a 336 statement of compliance on the bill of lading or invoice for the composite wood product. The 337 CARB ATCM also imposes recordkeeping requ irements on manufacturers to document their 338 compliance with the regulations, and the records must be kept for 2 years. 339*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 16 of 177 [RIN 2070–AJ92] The CARB ATCM requires distributors, importe rs, fabricators, and retailers to purchase 340 and sell panels and finished goods that comp ly with the applicable formaldehyde emission 341 standards. They must take “reasonable prudent precautions,” such as communicating with their 342 suppliers, to ensure that the products they purchase are in co mpliance with the applicable 343 emission standards. Like manufactur ers, distributors and importers must also provide a statement 344 of compliance on the composite wood or finished good product bill of lading or invoice. Like 345 manufacturers, distributors, im porters, fabricators and retailer s must also maintain records 346 documenting compliance for a period of 2 years. Importers and fabricators must label their 347 finished goods as compliant with the applicable standards. The labeling requirement also applies 348 to distributors if the product is in some way modified. One example of a modification that would 349 make a distributor subject to th e labeling requirement is if the distributor rece ives composite 350 wood product panels, cuts them into different shapes or sizes, and applies edge banding to them. 351 More information on the specific requirement s of the CARB ATCM and the relationship 352 between the CARB ATCM and this proposal is presented in Unit III. of this preamble. 353
2. TSCA section 21 petition. On March 24, 2008, 25 organizations and approximately 354 5,000 individuals petitioned EPA unde r section 21 of TSCA to use its authority under section 6 355 of TSCA to adopt the CARB ATCM nationally. Th e petitioners asked EPA to assess and reduce 356 the risks posed by formaldehyde emitted from hardwood plywood, particleboard, and medium357 density fiberboard by exercising its authorit y under TSCA section 6 to adopt and apply 358 nationwide the CARB formaldehyde emissions regulation for these composite wood products. In 359 addition, petitioners requested EPA to extend this regulation to include composite wood products 360 used in manufactured homes. 361 On June 27, 2008, EPA issued a Federal Register notice explaining the Agency’s 362*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 17 of 177 [RIN 2070–AJ92] decision to grant in part and deny in part the petitioners’ re quest (Ref. 11). EPA denied the 363 petitioners’ request to immediat ely pursue a TSCA section 6 rulemaking, stating that the 364 available information at the time was insuffi cient to support an ev aluation of whether 365 formaldehyde emitted from hardwood plywood, particleboard, and medium-density fiberboard 366 presents or will present an unreasonable risk to human health (incl uding cancer and non-cancer 367 endpoints) under TSCA section 6. As discussed in detail in the Federal Register notice 368 announcing EPA’s response to the petition, EP A’s evaluation of the data provided by the 369 petitioners revealed significant information gaps that would have needed to be filled to support 370 an evaluation of whether use of formaldehyde in these products presents or will present an 371 unreasonable risk under TSCA section 6. However, EPA did agree to initiate a proceeding to 372 investigate whether and what type of regulatory or ot her action might be a ppropriate to protect 373 against risks posed by formaldehyde emitted from pressed wood products. 374 Accordingly, on December 3, 2008, EPA issu ed an Advance Notice of Proposed 375 Rulemaking (ANPR) that announced EPA’s intention to investigat e whether and what regulatory 376 or other action might be appropr iate to protect against risks posed by formaldehyde emitted from 377 the products covered by the CARB ATCM as well as other pressed wood products. To help 378 inform EPA’s decision on the best ways to a ddress risks posed by formaldehyde emissions from 379 pressed wood products, the Agency requested pu blic comments and held six half-day public 380 meetings in Research Triangle Park, NC; Por tland, OR; Chicago, IL; Dallas, TX; Washington, 381 DC; and New Orleans, LA. These meetings took place January through March of 2009. EPA 382 received and reviewed comments submitted during the ANPR comment period which can be 383 found at regulations.gov under doc ket number EPA-HQ-OPPT-2008-0627. 384
3. The Formaldehyde Standards for Composite Wood Products Act. On July 7, 2010, 385*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 18 of 177 [RIN 2070–AJ92] President Obama signed into law the Formaldehyde Standards for Composite Wood Products 386 Act, or Title VI of TSCA, 15 U.S.C. 2697. The statute establishes formaldehyde emission 387 standards that are id entical to the CARB ATCM Phase 2 standards for hardwood plywood, 388 medium-density fiberboard, and particleboard sol d, supplied, offered for sale, or manufactured in 389 the United States and directs EPA to issue fi nal implementing regulations by January 1, 2013. 390 Pursuant to TSCA section 3(7), the definition of “manufacture” includes import. TSCA Title VI 391 does not give EPA the authority to raise or lower the establis hed emission standards, and EPA 392 must promulgate the implementing regulations in a manner that ensures compliance with the 393 standards. Congress directed EPA to consider a number of elements for inclusion in the 394 implementing regulations, many of which are asp ects of the CARB program. These elements 395 include: (A) labeling, (B) chain of custody requ irements, (C) sell-through provisions, (D) ultra 396 low-emitting formaldehyde resins, (E) no-added fo rmaldehyde-based resins, (F) finished goods, 397 (G) third-party testing and certification, (H) a uditing and reporting of TPCs, (I) recordkeeping, 398 (J) enforcement, (K) laminated products, and (L) exceptions from the requirements of regulations 399 promulgated for products and components containing de minimis amounts of composite wood 400 products. 401 III. Provisions of this Proposed Rule 402 403 A. Scope and Applicability 404 Pursuant to TSCA Title VI, this proposed regulation would generally cover entities that 405 manufacture (including import), supply, sell, or offer for sale hardwood plywood, medium406 density fiberboard, and particleboard in the Unit ed States, whether in the form of a panel or 407 incorporated into a finished good. 408
1. Hardwood plywood. a. General definition . The statute defines the term “hardwood 409*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 19 of 177 [RIN 2070–AJ92] plywood” as a hardwood or decorativ e panel that is intended for inte rior use and composed of an 410 assembly of layers or plies of veneer joined by an adhesive with a lumber, particleboard, 411 medium-density fiberboard (MDF), or hardboard core or any other sp ecial core or back material. 412 The statutory definition also re ferences a voluntary consensus standard for hardwood plywood, 413 American National Standards Institute/Hardwo od Plywood and Veneer Association HP-1-2009 414 (ANSI/HPVA HP-1) (Ref. 12). The statutory defi nition also describes f our specific exclusions 415 from the term: military-specified plyw ood, curved plywood, structural plywood, and wood416 based structural-use panels. The latter two are described by referenc e to voluntary consensus 417 standards (Refs. 13, 14). EPA is proposing to incorporate the basic st atutory definition of 418 hardwood plywood and the statutory exclusions into the regulation with one modification. 419 Although the statutory definition of hardwood pl ywood does not specifically mention hardwood 420 plywood made with a veneer co re, TSCA section 601(b)(2)(A) establishes a formaldehyde 421 emission standard for hardwood plywood with a ven eer core. Therefore, in order to avoid any 422 potential confusion about whether hardwood plywood made with a veneer core is covered by the 423 regulations, EPA proposes to add “veneer core” to the list of cores in the definition of hardwood 424 plywood. 425 As part of this rulemaking, EPA convened a Small Business Advocacy Review (SBAR) 426 Panel. More information on the Panel process, including the final repo rt of the Panel, is 427 discussed in Unit V. of this preamble. Th e SBAR Panel made several recommendations on 428 definitions associated with the definition of hardwood plywood (Ref. 15). The definition of the 429 term in TSCA Title VI, and as proposed in th is rulemaking, only includes products that are 430 “panels.” Therefore, only hardwood plywood pa nels would be required to be tested and 431 certified. The SBAR Panel recommended that EPA reduce uncertainty in the regulated 432*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 20 of 177 [RIN 2070–AJ92] community by clearly defining “panel” in a way that is based on the intent of the statute, and 433 considers trade usage and the limitations of curre nt test methods. EPA is proposing to define 434 panel as a flat or raised , rect angular piece of composite wood. The word “rectangular” in this 435 proposed definition is intended to encompa ss square pieces of composite wood as well. Raised 436 panels ( e.g. , raised panel cabinet doors) are specifically included in this proposed definition 437 because they can be produced using a similar ma nufacturing procedure as fl at panels, and have a 438 similar potential to emit formaldehyde. EPA re quests comment on test method limitations and 439 the extent to which they should affect th e definition of the term “panel.” 440 EPA is also proposing a definition of “intende d for interior use.” Under TSCA Title VI, 441 in order for a product to be regul ated as hardwood plywood, it must be intended for interior use. 442 The SBAR Panel recommended that EPA develop a cl ear definition for “interior use” in order to 443 eliminate potential confusion in the regulated community. The Panel further recommended that 444 the definition be based on the in tent of the statute and with c onsideration of how the hardwood 445 plywood is likely to be used and stored once in corporated into a fini shed good. EPA recognizes 446 that the primary purpose of TSCA Title VI is to reduce formaldehyde emissions from composite 447 wood products inside buildings and similar livin g areas, such as traile rs and recreational 448 vehicles. This is in contrast to other regulations, such as the PCWP NESHAP, which is designed 449 to reduce emissions from buildings and other faci lities. Therefore, EPA is proposing to define 450 the phrase “intended for interior use.” When applied to products, the phrase would mean 451 intended for use or storage inside a building or r ecreational vehicle, or co nstructed in such a way 452 that it is not suitable for long term use in a loca tion exposed to the elements. 453 b. Laminated products . For the purposes of TSCA Title VI, laminated products are a 454 subset of hardwood plywood. The statute de fines laminated product as a product made by 455*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 21 of 177 [RIN 2070–AJ92] affixing a wood veneer to a particleboard, MDF, or veneer-core plat form. The statutory 456 definition further provides that laminated product s are component parts us ed in the construction 457 or assembly of a finished good, and that a lami nated product is produced by the manufacturer or 458 fabricator of the finished good in which the produ ct is incorporated. Congress granted EPA the 459 authority to modify the statutory defin ition of laminated product through rulemaking

. (TSCA 460 section 601(a)(3)(C)(i)(II)). EPA is also directed to use all available and relevant information to 461 determine whether the definition of hardwood pl ywood should exempt engineered veneer or any 462 laminated product. As discussed in this Unit, EPA is proposing to exempt some, but not all, 463 laminated products from the definition of hardw ood plywood. EPA is further proposing to delete 464 from the definition of laminated product the provis ion that limits applicab ility to producers of 465 finished goods. 466
i. CARB ATCM . The CARB ATCM defines lamina ted product as a finished good or 467 component part of a finished good made by a fabr icator in which a laminate or laminates are 468 affixed to a platform. Under this definition, if the platform consists of a composite wood 469 product, the platform must comply with the a pplicable emission standards. The CARB ATCM 470 defines fabricator as any pers on who uses composite wood products to make finished goods, 471 including producers of laminated products. La minate is defined under the CARB ATCM as a 472 veneer or other material affixed as a decora tive surface to a platform. Under the CARB ATCM, 473 fabricators or laminated product manufacturers have different requirements compared with 474 requirements for manufacturers of composite wood products. In particular, fabricators do not 475 need to conduct formaldehyde emissions testing or comply with TPC certification requirements; 476 instead, fabricators need to ensure that th ey are using compliant composite wood products 477 through recordkeepi ng and labeling. 478*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 22 of 177 [RIN 2070–AJ92] Under the CARB ATCM, a facility that affi xes wood veneers to purchased cores or 479 platforms and then sells the panels (often referre d to as a 3-ply mill) is considered a regulated 480 hardwood plywood manufacturer. In addition, a fac ility that manufactures its own platforms or 481 cores and attaches decorative face and back veneers is a regulated hardwood plywood 482 manufacturer, whether or not the facility sells the resulting hardwood plywood panels or uses 483 those panels to make a finished good. However, CARB considers a facility that affixes veneers 484 to purchased platforms and then uses the panels to make a finished good to be a fabricator or 485 laminated product manufacturer. For example, a cabinet manufacturer who affixes veneers to 486 purchased composite wood platforms and then cuts the panels and assemble s them into cabinets 487 would be a fabricator or laminated product manuf acturer. In addition, CARB considers a facility 488 that produces architectural plywood or custom pa nels to be a fabricat or or laminated product 489 manufacturer. 490 ii. Other background information on laminated products. The statute includes laminated 491 products within the definition of hardwood plywood unless EPA specifically exempts them 492 through rulemaking. The provision authorizing EPA to exempt a ny laminated products, TSCA 493 section 601(a)(3)(C), directs EPA to consider all available and re levant information on the topic 494 in a rulemaking under TSCA section 601(d). Section 601(d) requires EPA to promulgate 495 regulations to implement the formaldehyde emi ssion standards of TSCA Title VI in a manner 496 that ensures compliance with the emission standards. 497 In determining whether to exempt any laminated products, EPA analyzed available 498 information on formaldehyde emissions. A 2003 Co mposite Panel Association (CPA) technical 499 bulletin presents information on formaldehyde emi ssion reductions resulting from the application 500 of different types of laminates ( e.g. , vinyl, paper, melamine, polyethylene) and coatings ( e.g. , 501*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 23 of 177 [RIN 2070–AJ92] acrylate, acrylic, polyurethane) (Ref. 16). According to the bulle tin, documented emission 502 reductions ranged from approximately 50% to 95% compared with unlaminated or uncoated 503 products. However, the technical bulletin doe s not present emission reduction data for wood 504 veneer laminates. The bulletin notes that w ood veneer laminates have been shown to be 505 effective barriers for some volatile organic co mpounds (VOCs) but have only low to moderate 506 effectiveness as a barrier for formaldehyde, depe nding on the type of wood veneer used. This 507 may be related to the porosity of the wood ven eer, since according to th e technical bulletin, the 508 effectiveness of an emission barrier is determined by its basic permeability or porosity, as well as 509 the integrity of the laminate or coating. Some woods are more porous than others. In addition, 510 the technical bulletin points out that wood veneers are frequently applied to pa rticleboard and 511 MDF using urea-formaldehyde adhesives, and thes e adhesives create the potential for another 512 source of formaldehyde emissions. EPA reque sts comments, information, and data on the 513 formaldehyde emissions of wood veneered lamina ted products, particul arly relative to the 514 emissions of comparable hardwood plywood products that are not consider ed laminated products 515 under the CARB ATCM. 516 As directed by the statute, EPA evaluated othe r available and relevant information. Some 517 of this information came to EPA through the SB AR Panel process, particularly through the 518 advice and recommendations of the Small Entity Re presentatives (SERs) to the SBAR Panel. 519 Several SERs submitted oral or written comments on potential provisions for laminated products 520 under TSCA Title VI. One SER argued that la minators add only about 1/10th the resin a 521 platform manufacturer adds ( e.g. , 1.1 pounds of resin per panel to attach the veneer versus 9.6 522 total pounds resin per panel) and that laminators use a minor, ifnot de minimis, amount of urea523 formaldehyde resin (Ref. 15). Furthermore, this SER stated that laminators using NAF resins 524*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 24 of 177 [RIN 2070–AJ92] would not add at all to the formaldehyde emi ssions from the product (Ref. 15), but did not 525 provide data supporting this assert ion. Multiple SERs noted that if laminators are regulated 526 under TSCA Title VI, they would be paying for th eir products to be cert ified twice (Ref. 15). 527 According to these SERs, the composite wood plat form manufacturer woul d pay for certification 528 of the platform and pass that co st along to the laminator who pur chases the platform. If the 529 laminator is also regulated under TSCA Title VI, su ch that the laminator would have to have its 530 product certified again after the veneer is atta ched, then the laminated product would have two 531 certifications, one for the composite wood platform and one for the final product. These SERs 532 contended that this would put th em at a distinct disadvantage w ith respect to manufacturers who 533 make the entire product in-house and therefore ha ve only one certification for the final product. 534 Another SER commented that if laminated products were re gulated as hardwood plywood, it 535 could be costly and burdensome to thousands of small cabinet makers that laminate on a kitchen536 by-kitchen basis (Ref. 15). Several SERs sugge sted that many laminators laminate component 537 parts, not panels. In particular, it was suggest ed that the “raised pane l doors” that are used on 538 some cabinets do not meet the definition of a hardwood plywood panel under the ANSI/HPVA 539 HP-1 standard. Several SERs provided suggest ions to EPA on which laminators should be 540 exempted by rule; these included laminators not using urea-formaldehyde, laminators using a 541 certified composite wood platform or core, a nd cabinetmakers producing less than 10 million 542 square feet of laminated product. One SER sp ecifically suggested that EPA exempt from the 543 third-party certification and test ing requirements those laminators that certify that they use NAF 544 resins to attach veneers to compliant cores or otherwise include a statement of compliance under 545 penalty of perjury (Ref. 15). Many small manufac turers of laminated products have contended 546 that the testing requirements would be extremely burdensome for them if they are required to test 547*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 25 of 177 [RIN 2070–AJ92] each product type because many of the smaller ma nufacturers and custom manufacturers produce 548 many different product types, often made to order. 549 In contrast, the Hardwood Plywood and Veneer Association (HPVA) informed EPA both 550 orally and in written comments submitted in response to EPA’ s 2008 ANPR that it considers the 551 CARB ATCM provision for fabricators to be a “giant loophole” for certain hardwood plywood 552 manufacturers (Ref. 17). HPVA’s comments state that “[t]he em ission standards must apply to 553 any and all hardwood plywood i rrespective of who manufactures the hardwood plywood. CARB 554 arbitrarily differentiates betw een a primary hardwood plywood ma nufacturer and a ‘fabricator’ 555 who also manufactures hardwood plywood but is exempt from having to certify the hardwood 556 plywood they manufacture” (Ref. 17). HPVA also contends that th e processes that fabricators 557 and manufacturers of hardwood plywood use to la y up the veneers or press the face and back 558 onto a core or platform are identical as are the hardwood plywood panels that they produce. 559 iii. Proposed exemption for laminated products. Because of the potential for increased 560 formaldehyde emissions from attaching a wood ve neer to a platform, and because the final 561 laminated product can be indistinguishable from other products that ar e considered hardwood 562 plywood, EPA proposes to conclude that there is an insufficient basis to categorically exempt all 563 laminated products from the definition of ha rdwood plywood based on information currently 564 available to EPA. Accordingly, EPA is propos ing to exempt laminated products in which a 565 wood veneer is attached to a co mpliant and certified platform using a NAF resin. EPA believes 566 the proposed exemption would be consistent wi th the statutory directive to promulgate 567 regulations in a manner that ensures compliance w ith the formaldehyde emission standards. If 568 the laminated product is made from a veneer co re platform that is certified as meeting the 569 emission standards for hardwood plywood, and a veneer that is attached with a NAF resin, it is 570*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 26 of 177 [RIN 2070–AJ92] very unlikely that the laminated product would exceed the hardwood plywood standards. If the 571 laminated product is made from a particleboard or MDF platform that is certified as meeting the 572 applicable emission standards, and a veneer that is attached with a NAF resin, the final laminated 573 product may not meet the hardwood plywood standa rd, but it is very un likely that it would 574 exceed the applicable particleboard or MDF emis sion standard. EPA interprets its statutory 575 authority with respect to lami nated products to give EPA the discretion to exempt laminated 576 products from the definition of hardwood plyw ood if EPA has reasonable assurance that the 577 exempted products would comply with the emissi on standards in TSCA section 601(b)(2) for the 578 relevant platform. EPA believes that the proposed exemption is responsive to comments from 579 SERs and other affected entitie s and that it is a reasonable approach to addressing policy 580 inequities between entities making similar pr oducts. EPA also believes that the proposed 581 exemption is protective of public health, because most laminated products made by attaching 582 veneers with NAF resins to compliant platforms would meet the emission standards for 583 hardwood plywood, and all would co mply with the standards for MDF or particleboard. EPA 584 specifically requests comments, information, and data relating to the proposed exemption. 585 To qualify for this exemption, laminate d product producers w ould be required to 586 maintain records demonstrating that they are us ing compliant platforms and NAF resins. These 587 records could include records of purchases of NAF resins and of compliant, certified platforms, 588 or, if the resins or platforms are made in-house, records demonstrating th at the platforms have 589 been certified by an accredited TPC and records demonstrating the pr oduction of NAF resins. 590 The statute defines the term “laminated produc t” as a product in which a wood veneer is 591 affixed to a particleboard platform, a medium-d ensity fiberboard platform, or a veneer-core 592 platform, and that is a component part used in the construction or assembly of a finished good. 593*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 27 of 177 [RIN 2070–AJ92] The statute further defines a laminated product as being produced by the manufacturer or 594 fabricator of the finished good in which the product is incorporated. EPA is proposing a 595 definition of laminated product that is base d on the statutory definition with several 596 modifications. First, EPA is proposing to incl ude not only wood veneers, but also woody grass 597 veneers ( e.g. bamboo). Woody grass veneers are similar to wood veneers in that they can be 598 porous and therefore not effective barriers to formaldehyde emissions , and they can be affixed to 599 cores and platforms using urea-formaldehyde resi ns. In addition, including woody grass veneers 600 is consistent with the definition of hardwood plywood in the ANSI/HPVA HP-1 standard, which 601 specifies that “–the decorative face veneer is made from a hardwood or softwood species or 602 woody grass.” To ensure greater clarity in the re gulatory provisions on this specific issue, EPA 603 is proposing to include a definition of veneer that is based on the ANSI/HPVA HP-1 standard, 604 but also refers to woody grasses a nd their specific structure. EP A is proposing to define veneer 605 as a thin sheet of wood or woody gr ass that is rotary cut, sliced, or sawed from a log, bolt, flitch, 606 block, or culm. EPA is also proposing to de fine woody grass as a plant of the family Poaceae 607 (formerly Gramineae ) with hard lignified tissues or woody parts. EPA requests comment on 608 these definitions and whether they are consistent with industry usage. 609 EPA’s proposed definition would not include a provision stating that a laminated product 610 is produced by the manufacturer or fabricator of the finished good in which the product is 611 incorporated. EPA does not believe that the a pplication of the third- party certification and 612 testing requirements under TSCA Title VI shoul d differ depending on the identity of the product 613 manufacturer. If the applicability limitation is retained, an entity that purchases certified 614 particleboard or MDF panels, cuts and otherwise prepares them fo r future use as kitchen cabinet 615 doors, attaches a hardwood veneer using a NAF re sin, and then sells them to a kitchen cabinet 616*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 28 of 177 [RIN 2070–AJ92] manufacturer would not be cons idered a laminated product manuf acturer and would not qualify 617 for the proposed exemption from the definiti on of hardwood plywood. The door producer would 618 then have to comply with the third party certif ication and testing requirements applicable to 619 hardwood plywood manufacturers. In contrast, still under a scenario where the applicability 620 limitation is retained, if the enti ty also produced the kitchen cabi nets, considered a finished good 621 under the statute, then the entity would be a laminated product manufacturer and would be 622 exempt from the proposed testing and certificati on requirements. EPA has no reason to believe 623 that the formaldehyde emissions from the cab inet doors would differ depending on who makes 624 the door. It may be that entities that produ ce the entire finished good in-house are smaller than 625 entities that only produce part of the good, such as cabinet doors, and thus it would be 626 significantly more burdensome for them to have to comply with the certification and testing 627 provisions of this proposal. However, EPA has no ev idence that this is the case. In addition, if 628 the emissions from the products are the same, EPA does not currently pe rceive a reason that 629 justifies additional testing, regardless of the si ze of the entity making the product. Considering 630 these factors, EPA’s proposed definition of la minated product does not include a provision 631 limiting applicability to the manuf acturer or fabricator of the fi nished good in which the product 632 is incorporated. EPA specifically requests comment s, information, and data on this aspect of the 633 proposed definition of laminated product. 634 In addition, to provide additional clarity fo r the regulated community and the public on 635 the applicability of this regulat ion, EPA is proposing to define “component part,” a term used in 636 the definition of “laminated pr oduct,” as a part that contains one or more composite wood 637 products and is used in the assembly of fini shed goods. EPA is also proposing to define 638*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 29 of 177 [RIN 2070–AJ92] “fabricator” as an entity that incorporates composite wood products into component parts or into 639 finished goods. 640 TSCA Title VI also directs EPA to dete rmine whether the definition of hardwood 641 plywood should exempt engineered veneer. EPA in terprets the phrase “assembly of layers or 642 plies of veneer” in the definition of hardw ood plywood to include engi neered veneer. EPA 643 understands engineered veneer to be a veneer that is create d by dyeing and gluing together 644 veneer leaves in a mold to produce a block. The block is then sliced into leaves of veneer with a 645 designed appearance that is highly repeatable. EPA also understands that engineered veneer is 646 often made using urea-formalde hyde resin, and EPA expects that engineered veneer made with 647 urea-formaldehyde resin will have formaldehyde emission rates that are similar to other 648 composite wood products made with urea-formal dehyde resin. EPA has not identified any 649 information justifying an exemp tion for engineered veneer, so this proposal does not include 650 such an exemption. 651
2. Particleboard and medium-density fiberboard. The statute defines the term 652 “particleboard” as a panel composed of cellulosic material in the form of discrete particles (as 653 distinguished from fibers, flakes, or strands) that are pressed toge ther with resin, as determined 654 under the voluntary consensus standard ANS I A208.1–2009 (Ref. 18). The statute further 655 excludes products specified in the “Voluntar y Product Standard—Performance Standard for 656 Wood-Based Structural-Use Panels ” (Ref. 14). EPA is proposing to incorporate the statutory 657 definition of particleboard into the implementing regulations without change. 658 The statute defines the term “medium-dens ity fiberboard” as a panel composed of 659 cellulosic fibers made by dry forming and pressing a resinated fiber mat, as determined under the 660 voluntary consensus standard ANSI A208.2–2009 (Ref . 19). EPA is proposing to incorporate 661*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 30 of 177 [RIN 2070–AJ92] the statutory definition of medium -density fiberboard without cha nge. This proposed rule also 662 includes a separate definition for a related term, thin medium-density fiberboard. The statute 663 provides for a slightly-higher formaldehyde emission standard for thin medium-density 664 fiberboard, 0.13 ppm, than it does for regular medium-density fiberboard, 0.11 ppm. CARB 665 defines thin medium-density fiberboard as me dium density fiberboard that has a maximum 666 thickness of eight millimeters. The voluntary consensus standard for medium-density 667 fiberboard, ANSI A208.2–2009 (Medium Density Fiberboard (MDF) Fo r Interior Applications), 668 defines thin medium-density fiberboard as medium -density fiberboard with a thickness less than 669 or equal to 8 millimeters or 0.315 inches (Ref. 19) . EPA is proposing to use the same definition 670 as the voluntary consensus standard because it is consistent with CARB and EPA believes that it 671 reflects the common industry understanding of the term. 672 3. Statutory exemptions. TSCA section 601(c) exempts a number of products from the 673 formaldehyde emission standards for composite wood products. These exemptions include, but 674 are not limited to, hardboard, stru ctural plywood, structural pane ls, oriented strandboard, glued 675 laminated lumber, prefabricated wood I-joi sts, finger-jointed lumber, wood packaging, 676 composite wood products used inside new vehicl es other than recreat ional vehicles, windows 677 that contain less than five pe rcent by volume of composite w ood products, exterior doors and 678 garage doors that contain less than three pe rcent by volume of composite wood products, and 679 exterior and garage doors that are made with NAF-based or ULEF-based resins. EPA proposes 680 to incorporate these exemptions into the im plementing regulations without modification. 681 The statute exempts any finished good that ha s previously been sold or supplied to an 682 individual or entity that purch ased or acquired the finished g ood in good faith for purposes other 683 than resale. The statute pr ovides two examples: antiques and secondhand furniture. EPA’s 684*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 31 of 177 [RIN 2070–AJ92] interpretation of this exemption is such that on ce a finished good, such as a piece of furniture, is 685 sold to an end user, the piece of furniture is no lo nger subject to TSCA Title VI. Thus, dealers in 686 secondhand furniture would not have any oblig ations under this proposed rule. 687 With respect to exterior and garage doors made with NAF-based or ULEF-based resins, 688 these resin types are defined elsewhere in the stat ute, with reference to both the composition of 689 the resin and the formaldehyde emissions of com posite wood products made with the resin. EPA 690 interprets these statutory provisi ons to mean that, in order to be eligible for this exemption, 691 exterior and garage doors must comply with th e emission standards contained in the statutory 692 definitions of NAF-based resins and ULEF-based resins, as measured by the testing described in 693 the statutory definitions. However, EPA is not proposing to require that manufacturers, 694 fabricators, distributors, or retailers of these doors comply with the third-party certification, 695 recordkeeping, or labeling provisions of the TS CA Title VI implementing regulations. EPA 696 requests comments on whether any additional clarifications are needed, or whether 697 manufacturers, fabricators, dist ributors, or retailers of such doors should be required to comply 698 with any of the provisions of the TSCA Title VI implementing regulations. For example, should 699 manufacturers of these doors be required to maintain records to demonstrate that they are 700 purchasing or manufacturing NAF -based or ULEF-based resins or composite wood products 701 made with NAF-based or ULEF-based resins and th at the required testing ha s been conducted? 702 While many of the exemptions are defined w ithin the text of the exemption itself, by 703 reference to an applicable volunt ary consensus standard or other parameter, hardboard is not so 704 defined. Rather, TSCA Title VI provides that “the term ‘hardboard’ has such meaning as the 705 Administrator shall establish, by regula tion pursuant to subsection (d).” 706*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 32 of 177 [RIN 2070–AJ92] Under the CARB ATCM, hardboard is define d as “a composite panel composed of 707 cellulosic fibers, made by dry or wet forming and hot pressing of a fiber mat with or without 708 resins, that complies with one of the follo wing ANSI standards: ‘Basic Hardboard’ (ANSI 709 A135.4-2004), ‘Prefinished Hardboard Paneling ’ (ANSI A135.5-2004), or ‘Hardboard Siding’ 710 (ANSI A135.6- 2006)” (Refs. 20-22). The CARB ATCM further excludes hardboard from the 711 definition of composite wood product. Accordi ngly, hardboard is not su bject to the emission 712 standards in the CARB ATCM. 713 EPA understands that the definition of hardboard is being has been recently reevaluated 714 by industry in the context of a pending revision to the voluntary consensus standard for basic 715 hardboard, ANSI A135.4 (Ref. 20). EPA was inform ed that final approval of revisions to ANSI 716 A135.4, along with revisions to the prefinishe d hardboard paneling standard, ANSI A135.5 and 717 the hardboard siding standard, ANSI A135.6, are would be anticipated by the end of 2011 (Refs. 718 20-22). 719 The Composite Panel Association, sponsor of the ANSI standard, also informed EPA in 720 its comments to the SBAR Panel that the Association intends intended to vote on a proposed 721 revision to ANSI A135.4 that includes included the following definition: 722 Hardboard is a panel manufactured primarily from inter-felted li gnocellulosic fibers 723 consolidated under heat a nd pressure in a hot press to a density of 500 kg/m 3 (31 lbs/ft 3 ) 724 or greater by: 725 (A) a wet process, or 726 (B) a dry process that uses: 727 (a) a phenolic resin, or 728*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 33 of 177 [RIN 2070–AJ92] (b) a resin system in which there is no added formaldehyde as part of the resin 729 cross-linking structure. 730 Other materials may be added to improve certain properties, such as stiffness, hardness, 731 finishing properties, resistance to abrasion and moisture, as well as to increase strength, 732 durability, and u tility. (Ref. 15) 733 EPA is concerned that, because hardboard a nd thin medium-density fiberboard share 734 similar appearances and end uses, a broad defini tion of hardboard could lead to thin medium735 density fiberboard being errone ously categorized as hardboard and exempted from the emission 736 standards. This is contrary to the clear intent of TSCA Title VI which specifically includes an 737 emissions standard for thin medium-density fiberboard. EPA believe s that the definition in the 738 proposed ANSI revision, quoted above , would address this concern. Accordingly, EPA is 739 proposing to base its definition of hardboard on the proposed revisi ons to ANSI A135.4 this 740 definition . EPA’s proposal defines har dboard as a panel composed of cellulosic fibers made by 741 dry or wet forming and hot pressing of a fiber mat, either without re sins, or with a phenolic resin 742 ( e.g. , a phenol-formaldehyde resin) or a resin system in which there is no added formaldehyde as 743 part of the resin cross-linki ng structure, as determined under one of the following ANSI 744 standards: ANSI A135.4 (Basic Hardboard), ANS I A135.5 (Prefinished Hardboard Paneling), or 745 ANSI A135.6 (Hardboard Siding). EPA believes this is consistent with TSCA 601(d) which 746 requires EPA to promulgate regulations in a ma nner that ensures compliance with the statutory 747 emission standards. 748 Revisions to the three ANSI hardboard st andards have been made and the revised 749 versions are now available (Refs. 23-25). EP A requests comment on the proposed hardboard 750*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 34 of 177 [RIN 2070–AJ92] definition and whether any changes should be made to the definition in light of the recent ANSI 751 standard revisions. 752 In general, EPA believes that composite wood products made with phenol-formaldehyde 753 resins have lower formaldehyde emission rates than do products made with urea-formaldehyde 754 resins. In fact, phenol-formaldehyde resin is me ntioned in TSCA Title VI as a resin that may 755 qualify for ULEF resin status. EPA has some data on formaldehyde emissions from hardboard 756 made with phenol-formaldehyde resins (Refs. 2 3 , 2 4 26, 27 ). The data appear to support the idea 757 that products made with phenol formaldehyde resins have lower formaldehyde emission rates. 758 EPA requests comment, information, and data on hardboard made with phenol-formaldehyde 759 resins and whether such products sh ould be included within the de finition of the term hardboard, 760 thereby exempting such products from th e statutory emission standards. 761 4. Other definitions . EPA is also proposing to define a number of other terms used in the 762 proposed regulations to ensure th at the meaning and applicability of the regulatory requirements 763 are clear. These terms include “distributor,” “ importer,” “purchaser,” and “retailer.” EPA is 764 proposing to define “distributor ” as an entity that supplies composite wood products, component 765 parts, or finished goods to others. The term “i mporter” would be define d, consistent with the 766 definition of the term “manufacturer” in TSCA s ection 3 and the definition of “importer” in 40 767 CFR 710.3, as an entity that imports composite wood products, component parts that contain 768 composite wood products, or finished goods that contain composite w ood products into the 769 customs territory of the United States (as defi ned in general note 2 of the Harmonized Tariff 770 Schedules of the United States). The term includes the entity primarily liable for the payment of 771 any duties on the products, or an authorized agent acting on the entity’s behalf. The term 772 “purchaser” would be defined as an entity that acquires composite wood products in exchange 773*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 35 of 177 [RIN 2070–AJ92] for money or its equivalent. Finally, “retailer” w ould be defined as an entity that generally sells 774 smaller quantities of composite wood products directly to consum ers. EPA requests comment on 775 the utility of these definitions, whether these defi nitions comport with typi cal industry usage, and 776 whether any other general terms should be de fined in EPA’s regulation. 777 B. Formaldehyde Emission Standards 778 TSCA Title VI establishes formaldehyde emission standards for composite wood 779 products (hardwood plywood, particle board, and medium-density fi berboard) so that beginning 780 July 1, 2012 or 180 days after the final implemen ting regulations are promulgated, whichever is 781 later, the standards mirror the CARB ATCM Phase 2 emission levels. The statute also provides 782 for emission standards that woul d apply after the effective date of the implementing regulations 783 but before July 2011, or before July 2012. However, the July 2011 2012 date has already passed, 784 and EPA does not anticipate issu ing a final rule with an eff ective date before July 2012 , so these 785 interim standards are will not likely to eve r take effect. 786 When the later TSCA Title VI emission standards take effect 180 days after 787 implementing regulations are promulgated, the emission limit for hardwood plywood will be 788 0.05 parts per million (ppm) formaldehyde. For me dium-density fiberboa rd, the limit will be 789 0.11 ppm. For thin medium-density fiberboar d, the limit will be 0.13 ppm. For particleboard, 790 the limit will be 0.09 ppm. The statute does not give EPA authority to modify these emission 791 standards. 792 Because each of the two statutory emission standards for hardwood plywood is 0.05 ppm 793 for any final rule taking effect after July 1, 2012, the proposed regul ation merely states that the 794 emission standard for hardwood plywood is 0.05 ppm. With this language, EPA intends that any 795 product that meets the definition of hardw ood plywood is subject to the hardwood plywood 796*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 36 of 177 [RIN 2070–AJ92] emission limit, regardless of the makeup of its co re. EPA notes that the statutory definition of 797 hardwood plywood includes a number of different types of cores that may not appear to 798 expressly fit under the statutory emission standards for veneer co re and composite core. Yet, 799 EPA does not believe that Congress intended to exempt hardwood plywood made with a lumber 800 core, for example, from the emission standards of TSCA Title VI in part because the statute says 801 that “the emission standards... shall apply to hardwood plywood.” Therefore, EPA proposes an 802 emission standard for hardwood plywood of 0.05 ppm, given that the two statutory emission 803 standards for hardwood plywood are ultimately identical. EPA requests comment on whether 804 and how this revision would aff ect entities making laminated products with lumber cores or any 805 other special core material. 806 C. Product Certification in General 807 Under this proposal, composite wood products sold, supplied, offered for sale, or 808 manufactured (including imported) within the United States woul d have to be certified, unless 809 they are specifically exempted by TSCA Title VI or excluded by the proposed rule. In general, 810 this means that the formaldehyde emission levels from the composite wood products would have 811 been demonstrated to be below the emission standards in TSCA Title VI. This demonstration 812 would be through a combination of testing perf ormed by an accredited third-party certifier 813 (TPC), and repeated on a quarterly basis, and mo re frequent quality control testing performed by 814 the maker of the composite wood product, an accr edited TPC, or a contra ct laboratory. Specific 815 proposed requirements for this testing are disc ussed in Unit III.D. of this preamble. 816 EPA is proposing to require makers of com posite wood product panels to apply to an 817 accredited TPC for product certification, and to design and establish a quality control program, 818 including testing, that is both approved by the accredited TPC and specific to the panel producer. 819*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 37 of 177 [RIN 2070–AJ92] For each product type to be certified, the pane l producer would have to have at least one 820 quarterly test result and 3 months of quality control testing da ta that demonstrate that the 821 formaldehyde emission rates of the product are below the emission standards established by 822 TSCA Title VI and discussed in greater detail in Unit III.C. of this preamble. Uncertified 823 product produced after the manuf actured-by date, discussed in Un it III. I. of this preamble, 824 would not be permitted to be sold, supplied, or offered for sale in the United States. Under this 825 proposal, products currently certified by appr oved TPCs under the CARB ATCM would be 826 considered certified for purposes of TSCA Title VI. However, in the TPC Proposal, EPA 827 proposed to allow CARB-approved TPCs 1 year to become accredited under TSCA Title VI. If 828 that provision is finalized as proposed, a pa nel producer whose TPC does not become accredited 829 under TSCA Title VI in a timely manner would have to apply to an accredited TPC to be able to 830 continue to make certified product after the manufactured-by date. EPA requests comment on 831 this approach for CARB-certified products and whether a different approach or additional 832 requirements should be imposed for these products. 833 D. Formaldehyde Emissi on Testing Requirements 834 TSCA Title VI requires that composite wood products be measured for compliance with 835 the statutory emission standards by quarterly te sts pursuant to test methods ASTM E-1333-96 or 836 ASTM D-6007-02 (Ref. 2 5 , 2 6 28, 29 ). TSCA Title VI also require s that quality control tests be 837 conducted pursuant to ASTM D-6007-02, ASTM D-5582, or such other test methods as may be 838 established by EPA through rulemaking (Ref. 2 6 , 2 7 29, 30 ). Under the statute, test results 839 conducted using any test method other than ASTM E-1333-96 (2002) must include a showing of 840 equivalence by means that EPA must establish through rulemaking. Under TSCA Title VI, EPA 841 must also establish, through rulemaking, the number and frequency of tests required to 842*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 38 of 177 [RIN 2070–AJ92] demonstrate compliance with the emission standards. This unit of the pr eamble discusses EPA’s 843 proposed rulemaking on each of these statutory elements. 844
1. CARB ATCM Formaldehyde Testing Requirements. The CARB ATCM requires that 845 compliance with the emission standards for ha rdwood plywood, medium-density fiberboard, and 846 particleboard be demonstrated by conducting emissi on tests, verified by th ird party certifiers 847 (TPCs) using ASTM E-1333-96 (2002) (large cham ber test method), referred to as the primary 848 test method, or ASTM D-6007-02 (small chamber test method), referred to as the secondary test 849 method. If ASTM D-6007-02 is used, equiva lence between ASTM D-6007-02 and ASTM E850 1333-96 (2002) must be established at least once each year by the TPC. The CARB ATCM 851 specifies minimum requirements for demonstrat ing equivalence in se ction 93120.9(a)(2)(B) of 852 the ATCM; demonstration of equivalence for the purposes of this proposa l is discussed in Unit 853 III.D.3. of this document. The CARB ATCM allows alternate secondary test methods to be used 854 if they are demonstrated to provide equivale nt results to those obt ained using ASTM E-1333-96 855 (2002) (following the requirements in section 93120.9(a)(2)(B)) and are approved in writing by 856 the CARB Executive Officer, following submission of an application for approval. The CARB 857 ATCM also requires quality control testing using a test method that is correlated to the primary, 858 secondary, or alternate secondary test method. The CA RB ATCM also provides that all panels 859 must be tested in an unfinished condition, prior to the application of a finishing or topcoat. 860 The CARB ATCM requires that an initial qua lifying primary or secondary method test be 861 conducted on each product type, from each prod uction line of each facility; however, it also 862 allows a manufacturer to group two or more pr oduct types together if they have “similar 863 emission characteristics.” The emissions from each product type from each production line 864 cannot exceed the applicable standard. If an initial qualification test exceeds the emission 865*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 39 of 177 [RIN 2070–AJ92] standard, certification lapses on all of the products repres ented by that product group. 866 Under the CARB ATCM, after the initial qu alifying test, primary or secondary method 867 tests must be conducted at least quarterly. Fo r particleboard and medi um-density fiberboard, 868 these quarterly tests must be conducted on ra ndomly selected samples of each product type 869 (unless approved NAF or ULEF resi ns are used). Again, products can be grouped for testing, but 870 if a quarterly test exceeds the emission standa rd, certification lapses on all of the products 871 represented by that grouping. For hardwood plywood, a primary or secondary method test is 872 required at least quarterly (unl ess approved NAF or ULEF resins are used) on randomly selected 873 samples of the hardwood plywood product determin ed by the TPC to have the highest potential 874 to emit formaldehyde. 875 The CARB ATCM also requires “small scale” quality control tests that must be 876 conducted at the composite wood product manufactu ring facility, a contra ct laboratory, or a 877 laboratory operated by an approved TPC. These tests must be conducted on all lots of each 878 product type being certified unless prior notice is given, and tests mu st be reported to the TPC. 879 The CARB ATCM lists the following as appr oved small scale test methods: ASTM D 5582-00 880 (desiccator), ASTM D-6007-02 (s mall chamber), and alternative tests that can be shown to 881 correlate to the primary or secondary method tests and are approved by the CARB Executive 882 Officer. CARB has approved the following for use as alternative small scale test methods: EN 883 717-2 (Gas Analysis), DMC (Dynamic Micro Ch amber), EN 120 (perforator), and JIS A 1460 884 (24-hr Desiccator). CARB does not expressl y permit the grouping of product types for quality 885 control testing. However, CARB does provide TP Cs and manufacturers with some flexibility in 886 interpreting the term “pr oduct type” to allow sim ilar products, particularly those made with the 887 same resin system, to be considered to belong to the same product type for quality control testing 888*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 40 of 177 [RIN 2070–AJ92] purposes (Ref. 2) 889

a. Basic testing frequency requirements for par ticleboard and medium-density fiberboard 890
under the CARB ATCM. The CARB ATCM requires manufact urers of particleboard and 891 medium-density fiberboard (that don’t qualify for NAF or ULEF TPC exemption or reduced 892 testing) to conduct routine small scale quality control tests at l east once per shift (8 or 12 hours, 893 plus or minus one hour of production) for each production line for each product type. Quality 894 assurance and quality cont rol requirements for the purposes of this proposal are discussed in Unit 895 III.E. of this preamble. Quality control tests must also be conducted whenever a product type 896 production ends, even if eight hours of production has not been reached, or whenever one of the 897 following occurs: 1) the resin formulation is chan ged so that the formaldehyde to urea ratio is 898 increased; 2) an increase by more than ten per cent in the amount of formaldehyde resin used, by 899 square foot or by panel; 3) a decrease in the designated press tim e by more than 20 percent; or 4) 900 the Quality Control Manager or Quality Control Employee has reason to believe that the panel 901 being produced may not meet the requirements of the applicable standards. The CARB ATCM 902 allows for reduced testing for particleboard and medium-density fiberboa rd when the facility 903 demonstrates consistent operations and low variability of test values to the satisfaction of the 904 TPC based on criteria established by the TPC. Te sting frequency still must occur at least once 905 per 48-hour production period. 906 b. Basic testing frequency requirements for hardwood plywood under the CARB ATCM. 907 The CARB ATCM requires manufacturers of ha rdwood plywood (that don’t qualify for NAF or 908 ULEF TPC exemption or reduced testing) to cond uct routine small scale quality control tests on 909 each product type and product line based on producti on at the facility with the following testing 910 frequency: at least one test pe r week per product type and produc t line if the weekly hardwood 911*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 41 of 177 [RIN 2070–AJ92] plywood production is less than 200,000 square feet; at least two te sts per week per product type 912 and product line if the week ly hardwood plywood production is between 200,000 and 400,000 913 square feet; and at least four times per week per product type and product line if the weekly 914 hardwood plywood production is greater than 400,000 square feet. The CARB ATCM also 915 requires that quality control samp les must be analyzed within a period of time specified in the 916 manufacturer’s quality cont rol manual to avoid distribut ion of non-complying lots. 917
2. Proposed general testing requirements . As an initial matter, EPA is proposing to 918 define several terms that would be used in the testing requirements. EP A is proposing to use the 919 term “panel producer” to refer to those facilities that actually make composite wood products or 920 laminated products, excluding importers that do not also make the products. Because TSCA § 3 921 defines the term “manufacture” to include import, EPA believes that using another term would 922 clarify the regulation by referring to facilities that actually ma ke the products regulated under 923 TSCA Title VI for the purposes of the testing, certification, and recordkeeping requirements. 924 Under this proposal, some laminated products would not be hardwood plywood, and the act of 925 making those products would, therefore, not be subject to the tes ting and certification 926 requirements. However, EPA believes that ther e are some laminated products that cannot be 927 made in such a way as to render them exempt from the testing and certif ication requirements. 928 EPA is proposing to define “panel producer” as a manufacturing plant or other facility that 929 manufactures (excluding imports facilities that solely import products ) composite wood products 930 on the premises. EPA is also proposing to incorpor ate within this definition a statement that this 931 includes laminated products not excluded fr om the definition of hardwood plywood. EPA 932 requests comment on whether the term “panel producer ” should apply separately to each specific 933 facility owned or operated by an entity that produces composite wood products for the purposes 934*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 42 of 177 [RIN 2070–AJ92] of the testing, certification a nd recordkeeping requirements, or whether the term “panel 935 producer” should apply to the enti re business entity th at produces the composite wood products. 936 For example, should panel producers be required to have a quality control manual for each 937 separate facility? 938 EPA is proposing to incorporate the CARB de finition of the term “product type” with 939 some modifications. The term “manufacturer” in the CARB definition would be replaced by the 940 term “panel producer.” Under this proposal, “product type” means a t ype of composite wood 941 product that differs from another made by th e same panel producer, based on wood type, 942 composition, thickness, number of plies (if hardwood plywood), or re sin used. In order to make 943 it clear that TPCs and ma nufacturers have the flexibility to treat similar products similarly, the 944 proposed definition includes a statement that pr oducts with similar emissions made with the 945 same resin systems may be considered to be the same product type. 946 EPA is also proposing to define “lot” to mean a particular lot or batch of a product type 947 made during a single production r un. EPA believes that this is common industry usage of the 948 term. Likewise, EPA is proposing to define “p roduction line” as a set of operations and physical 949 industrial or mechanical equipment used to produce a composite wood product. EPA requests 950 comment on the utility of these de finitions, and whether other terms should also be defined, such 951 as “production run.” 952 In addition, entities conducti ng formaldehyde testing woul d be required to use the 953 procedures, such as testing condi tions and loading ratios, specifie d in the method being used. As 954 required by CARB, EPA is also proposing to requ ire that all equipment used in formaldehyde 955 testing be calibrated in accordance with the equipment manufacturer’s instructions. EPA 956 believes that this requirement is important for ensuring that the equipm ent is working properly 957*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 43 of 177 [RIN 2070–AJ92] and that accurate results are obtained. 958

a. Quarterly testing requirements. EPA is proposing to require that accredited TPCs 959 conduct the quarterly tests required by TSCA Title VI. The statute requi res these tests to be 960 performed using ASTM E-1333-96 (2002) or, upon a s howing of equivalence as discussed in this 961 Unit, ASTM D-6007-02 (Refs. 2 5 , 2 6 28, 29 ). In the TPC Proposal, using the authority provided 962 by TSCA section 601(d)(5), EPA proposed to incorporate ASTM E-1333-10, the most recent 963 version of this method, into the testing require ments, rather than the 2002 version (Refs. 1, 964
2 8 31 ). EPA will review the comments received on the TPC proposal and determine whether to 965 incorporate ASTM E-1333-10 into the testing requirements in place of ASTM E-1333-96 (2002) 966 before issuing the final rule. 967 EPA is proposing to require that the TPC laboratories test randomly chosen samples from 968 a single lot that is ready for shipment by th e panel producer. Neither the top nor bottom 969 composite wood product of a bundle would be se lected because the emissions from these 970 products may not be representative of the bundl e. For particleboard and medium-density 971 fiberboard, the proposed rule w ould require quarterly tests to be conducted on randomly selected 972 samples of each product type (unless th ey qualify for reduced testing based on ULEF or NAF 973 resin). For hardwood plywood, the proposed rule would require quarterly tests to be conducted 974 on randomly selected samples of the hardwood plywood product determined by the TPC to have 975 the highest potential to emit formaldehyde (unl ess they qualify for reduced testing based on 976
ULEF or NAF resins). 977 As under the CARB ATCM, this proposal w ould allow product types to be grouped for 978 quarterly testing. EPA is proposing to allo w accredited TPCs to approve the grouping of 979 products with similar characterist ics, particularly those characte ristics that are most likely to 980*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 44 of 177 [RIN 2070–AJ92] affect emissions, such as the t ype of wood or the resin system(s ) used to make the composite 981 wood product. For hardwood plywood, other factor s that are likely to influence formaldehyde 982 emissions are core type, pr ess time, veneer type ( i.e. , species), and whether or not the core is 983 certified. EPA requests comment on the approp riate criteria for grouping product types for 984 quality control testing, given the statutory direc tive to promulgate implementing regulations in a 985 manner that ensures compliance with the emission standards. For example, one possibility could 986 be to allow panel producers and acc redited TPCs to identify the produc ts that are likely to have 987 the highest emissions and to test those products. 988 Samples selected for quarterly testin g would have to be dead-stacked ( i.e. , closely 989 stacked) or air tight wrapped between the time of sample selection a nd the start of test 990 conditioning (as specified in ASTM E-1333-10 or , as appropriate, AS TM D-6007-02). Samples 991 would have to be labeled as such, signed by th e TPC, bundled air tight, wrapped in polyethylene, 992 protected by cover sheets, and promptly shippe d to the laboratory testing facility. EPA is 993 proposing to require conditioning to begin as soon as possible, but no more than 30 days after 994 production. This requirement, also included in the CARB ATCM, is designed to prevent panel 995 producers from holding composite wood products to al low them to off-gas. TPCs must notify 996 panel producers in writing within 24 hours of a failed quarterly test result. Lots represented by a 997 failed quarterly test result, woul d have to be handled as non-complying lots in accordance with 998 the proposed requirements discussed in Unit III.D .4. If lots were grouped for quarterly testing, 999 all lots in the group represented by a failed quarterly test result w ould have to be treated as non1000 complying lots. EPA requests comment on all asp ects of these sampling requirements, including 1001 whether the 30 day require ment is appropriate. 1002 b. Quality control test methods . EPA is proposing that in addition to ASTM D-6007-02 1003*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 45 of 177 [RIN 2070–AJ92] and ASTM D-5582, the following methods would also be allowed for quality control testing 1004 (with a showing of equivalence as described in this Unit): EN 717-2 (Gas Analysis Method) 1005 (Ref. 29 32 ), DMC (Dynamic Micro Chamber) (Ref. 30 33 ), EN 120 (Perforator Method) (Ref. 1006
31 34 ), and JIS A 1460 (24-hr Desiccator Method) (Ref. 3 2 35 ). EPA believes that these are 1007 appropriate methods for quality control testi ng based on CARB’s eval uation and approval of 1008 these methods as alternative small scale test me thods, and test results using these methods have 1009 been demonstrated to have adequate correlati ons with test results using ASTM E-1333-10. EPA 1010 proposes to establish these addi tional methods pursuant to Secti on 601(b)(3)(A)(ii) for quality 1011 control testing; as a general matter, EPA does not endorse any particul ar method over others. 1012 Other methods may also be appropriate for quali ty control testing, such as EN 717-1 (Chamber 1013 Method), EN 717-3 (Flask Method), ISO/ DIS 12460-1(1-Cubic-Meter Chamber Method), 1014 ISO/DIS 12460-2 (Small-Scale Chamber Method), ISO/DIS 12460-3 (Gas An alysis Method), or 1015 ISO/DIS 12460-4 (Desiccator Method). EPA re quests comment on whether these methods 1016 should also be allowed for quality contro l testing. 1017

c. Proposed quality control te sting frequency for partic leboard and medium-density 1018 fiberboard that do not qualify for reduced testing based on ULEF or NAF resins. EPA is 1019 proposing to require the same quality control te sting frequency for particleboard and medium1020 density fiberboard as is required under the CA RB ATCM. This proposal would require quality 1021 control tests at least once per sh ift (8 or 12 hours, plus or minus one hour of production) for each 1022 production line for each product type. Quality cont rol tests would also be conducted whenever a 1023 product type production ends, even if eight hou rs of production has not been reached, or 1024 whenever 1) there is a significant change to the resin formulation, e.g. , an increase in the 1025 formaldehyde-to-urea ratio; 2) ther e is an increase by more than ten percent in the amount of 1026*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 46 of 177 [RIN 2070–AJ92] formaldehyde resin used; 3) there is a decrease in the designated press time by more than 20 1027 percent; or 4) the quality contro l manager or quality control empl oyee has reason to believe that 1028 the panel being produced may not meet the requirements of the applicable standards. 1029 Also consistent with the CARB ATCM, EP A is not proposing to allow the grouping of 1030 products for quality control tes ting purposes. However, EPA is proposing to allow accredited 1031 TPCs and panel producers some flexibility in determining which products constitute a product 1032 type. CARB’s guidance to its TPCs on defi ning product type incl ude mention of those 1033 characteristics most likely to affect product em issions, such as type of wood or the resin 1034 system(s) used to make the composite w ood product. Again, for hardwood plywood, these 1035 factors include core type, press time, veneer type ( i.e. , species), and whether or not the core is 1036 certified. 1037 EPA is proposing to allow reduced quality control testing requir ements similar to 1038 CARB’s for particleboard and medium-density fi berboard when the pane l producer demonstrates 1039 consistent operations and low variability of test values. Under the EPA proposal, the panel 1040 producer would be required to request approval for reduced quality cont rol testing from an 1041 accredited TPC. If approved, quality control testi ng would still have to occur at least once per 1042 48-hour production period. Unlik e CARB, EPA is proposing to establish criteria for 1043 demonstrating consistency and low variability. Under EPA’s proposed requirements, which are 1044 based on a Composite Panel Association volunt ary program, a 30 panel running average would 1045 be maintained (Ref. 33 36 ). If the 30 panel running averag e remains two standard deviations 1046 below the designated Quality Control Limit (QCL) for the previous 60 consecutive days or more, 1047 testing frequency could be redu ced to one test per 24 hour pro duction period. When the 30 panel 1048 running average remains three standard deviations below the QCL for the previous 60 days or 1049*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 47 of 177 [RIN 2070–AJ92] more, testing frequency could be reduced to once every 48 hour production period. The QCL 1050 would be the quality contro l test value that is the correlative equivalent to the emission standard 1051 based on the ASTM E-1333-10 method. The QCL is established by using a simple linear 1052 regression where the dependent variables (Y-axis) are the quality control test results and the 1053 independent variables (X-axis) are the ASTM E-1333-10 test results. More information on the 1054 establishment of the QCL can be found in the TP C Proposal (Ref. 1). An accredited TPC would 1055 be required to approve a request for reduced qualit y control testing as long as the data submitted 1056 by the panel producer demonstrat e compliance with the criteria and the TPC does not otherwise 1057 have reason to believe that the data are ina ccurate or that the panel producer’s production 1058 processes are inadequate to en sure continued compliance with the emission standards. EPA will 1059 provide a list of panel producers and products types that are allo wed reduced testing under this 1060 provision on the EPA website. EPA requests comment on whether there should be a finite time 1061 period for reduced testing, after which a new application and de monstration would be required, 1062 or whether reduced testing should co ntinue to be allowed as long as the quality control test data 1063 demonstrate continued eligibility for reduced testing. 1064 As in the CARB ATCM, EPA is proposing that all panels would be tested in an 1065 unfinished condition, prior to the ap plication of a finishing or t opcoat. EPA believes that the 1066 proposed testing frequency is sufficient to ensure compliance with the emission standards, but is 1067 not overly burdensome. EPA believes that most U.S. producers of particleboard and medium1068 density fiberboard have been complying with the testing requirements under the CARB ATCM 1069 and thus, the rule, if finalized as propose d, would not impose an additional burden on these 1070 producers. 1071 d. Proposed quality control te sting frequency for hardwood plywood that does not qualify 1072*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 48 of 177 [RIN 2070–AJ92] for reduced testing based on ULEF or NAF resins . EPA is generally proposing to require the 1073 same frequency of testing for hardwood plywood that CARB requires. EPA believes that this 1074 testing frequency is adequate to ensure complia nce with the TSCA Title VI emission standards 1075 and consistency with CARB make s it easier for panel producers already complying with CARB 1076 to comply with these proposed requirements. Similarly, if a quality control test exceeds the 1077 applicable emission standards for that product, all lots of products repres ented by that test result 1078 would be considered to be non-complying lots a nd would have to be treated and retested in 1079 accordance with the procedures discu ssed in Unit III.D.4. 1080 EPA’s proposed quality control testing fr equency requirements for hardwood plywood 1081 are generally similar to CARB and are likewi se based on production volume. Under this 1082 proposal, hardwood plywood panel producers would be required to conduct routine quality 1083 control tests on each production line of each product type based on total hardwood plywood 1084 production by the panel producer with the following te sting frequency: at l east one test per week 1085 per production line of each produc t type if the weekly hardw ood plywood production is between 1086 100,000 and 200,000 square feet; at least two tests per week per production line of each product 1087 type if the weekly hardwood plywood produc tion is between 200,000 and 400,000 square feet; 1088 and at least four times per week per production li ne of each product type if the weekly hardwood 1089 plywood production is greater than 400,000 square feet. EPA believes that, for some small 1090 specialty panel producers, even one quality control test per w eek would be excessive. Very 1091 small custom manufacturers may make significantly less than 100,000 square feet of product per 1092 week per product type. In order to address the inequity of re quiring small manufacturers to 1093 conduct many more tests than requ ired of large manufacturers fo r the same production volume, if 1094 weekly production of hardwood plywood at the panel producer is less than 100,000 square feet, 1095*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 49 of 177 [RIN 2070–AJ92] EPA is proposing to require one quality control test per 100,000 square feet of each lot produced 1096 of each product type produced. If the panel producer never produces 100,000 square feet of a 1097 particular product type at one ti me, EPA is proposing to require just one quality control test of 1098 that product type per produc tion run or lot produced. 1099 EPA believes that the proposed testing fre quency for hardwood plywood is sufficient to 1100 ensure compliance with the emissi on standards but is not overly burdensome. EPA believes that 1101 most U.S. hardwood plywood panel producers as well as many foreign producers have been 1102 complying with the CARB ATCM testing require ments and thus, the rule, if finalized as 1103 proposed, would not impose an additional burden on these producers. For laminated product 1104 producers that do not have to te st under the CARB ATCM require ments, this proposed testing 1105 would be a new requirement; however, because the requirements are based on production 1106 volume, EPA believes that they would not be overly burdensome. EPA requests comment on 1107 whether these proposed requirements are sufficient to ensure compliance w ith the standards. 1108 Under the CARB ATCM, only particleboard and medium-density fiberboard producers 1109 are required to conduct quality control testing when product type production ends, changes are 1110 made to the resin formulation or the amount of resi n used, or there is a significant decrease in 1111 press time. There is no similar provision app licable to hardwood plywood. EPA’s proposal is 1112 consistent with the CARB ATCM, but EPA reque sts comment on whether quality control testing 1113 should be required for hardwood plywood producti on in these situations, or in any other 1114 situations, such as when the qua lity control manager or qualit y control employee has reason to 1115 believe that the panels in produc tion may not meet the emission sta ndard. EPA is also requesting 1116 comment on whether the proposed reduced quality control testing for cons istent particleboard 1117 and medium-density fiberboard ma nufacturing operations should al so be applicable to hardwood 1118*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 50 of 177 [RIN 2070–AJ92] plywood. 1119
3. Means of showing test method equivalence. EPA is proposing that equivalence between 1120 ASTM E-1333-10 and any other test method used would be demonstrated by the TPC for each 1121 laboratory used by the TPC or pa nel producer that is using the alternative method at least once 1122 each year or whenever there is a significan t change in equipment, procedures, or the 1123 qualifications of testing personnel. 1124 The CARB ATCM includes a specific met hod for demonstrating equivalence between 1125 ASTM E-1333-96 (2002) and ASTM D-6007-02. Th e CARB ATCM method requires at least 1126 ten comparison sample sets, which compare the re sults of the two methods, for an equivalence 1127 demonstration. The ten comparison sample sets consist of testing a minimum of five sample sets 1128 in at least two out of three specified ranges of formaldehyde concentrations. For the ASTM E1129 1333-96 (2002) method, each comparison sample consists of the result of simultaneously testing 1130 an appropriate number of panels (factoring in th e loading rate) from the same batch of panels 1131 tested by the ASTM D-6007-02 method. Fo r the ASTM D-6007 method, each comparison 1132 sample consists of testing nine specimens repres enting evenly distributed portions of an entire 1133 panel. The nine specimens are tested in groups of three specimens (factor ing in loading rate), 1134 resulting in three test results, which are averaged to represent one data point for the panel, and 1135 matched to their respective ASTM E-1333-96 (2002) comparison sample result. CARB requires 1136 that equivalence be established between the ASTM E-1333-96 (2002) and ASTM D-6007-02 1137 methods to represent the range in emissions ba sed on the emission standards for the composite 1138 wood products being tested. 1139 EPA is proposing the same general methodol ogy as is required under the CARB ATCM. 1140 However, because the CARB phase 2 emission standard s will be in effect by the time EPA issues 1141*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 51 of 177 [RIN 2070–AJ92] a final rule, EPA believes that it will be very difficult, if not im possible, to find products with 1142 emissions in the intermediate and upper ranges specified by the CARB equivalency 1143 demonstration requirements. EPA’s proposed procedure, therefore, does not include the 1144 requirement of testing different formaldehyde co ncentration ranges. In stead, EPA is proposing 1145 that equivalence be demonstrated in a range of formaldehyde concentrations that is 1146 representative of the emissions of the products that the TPC certifies. Therefore, EPA is 1147 proposing to require a minimum of five comparis on sample sets rather than ten. In addition, 1148 EPA is proposing to allow for mo re flexibility in sampling and not require testing of nine 1149 specimens representing evenly dist ributed portions of an entire panel. EPA believes that for 1150 some types of panels, within panel variability is such that fewer specimens can be tested, but for 1151 other panels testing of at leas t nine specimens would be needed. EPA believes that TPCs and 1152 panel producers are best able to determine the sa mpling and testing needed to account for within 1153 panel variability for a specific pr oduct type and is therefore propos ing to allow for flexibility in 1154 the distribution and number of specimens to re quire for the small chamber test comparison 1155 sample set. 1156 EPA is proposing the following method for demonstrating equivalence between ASTM 1157 E-1333-10 and ASTM D-6007-02: An equivalence de monstration would include at least five 1158 comparison sample sets ( i.e. , five large chamber sample sets and five small chamber sample 1159 sets), which compare the results of the two methods. For the ASTM E-1333-10 method, each 1160 comparison sample would consist of the result of simultaneously testing an appropriate number 1161 of panels, using the applicable loading ratios fr om the method, from the same batch of panels 1162 tested by the ASTM D-6007-02 method. For the ASTM D6007 method, each comparison 1163 sample would consist of testing specimens represen ting portions of panels tested in the ASTM E- 1164*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 52 of 177 [RIN 2070–AJ92] 1333-10 and matched to their respective ASTM E-1333-10 method comparison sample result. 1165 The arithmetic mean, x  ̄, and standard deviation, S , of the difference of all comparison sets would 1166 be calculated as follows: 1167

1168 Where x  ̄ = arithmetic mean; 1169
S = standard deviation; 1170

n = number of sets; 1171
Di = difference between the ASTM E-1333-10 a nd the ASTM D-6007-02 method values for the 1172
i th set; and 1173
i ranges from 1 to n . 1174 EPA is proposing that ASTM D-6007-02 method woul d be considered equivalent to the ASTM 1175 E-1333-10 method if the follo wing condition were met: 1176

1177 where C is equal to 0.026 (Ref. 3 4 ). 37). 1178 EPA believes that the proposed means fo r showing equivalence between ASTM E-1333- 1179 10 and ASTM D-6007-02 is a reasonable method of showing equivalence. In addition, it is not 1180 overly burdensome and it is similar to the procedure required under the CARB ATCM

. EPA 1181 independently analyzed this proposed method for demonstrating equivalence by evaluating 1182 CARB’s Supplemental Analysis Supporting the Te st for Demonstrating Equivalence between 1183 Primary and Secondary Methods for Measuring Formaldehyde Emissions from Composite Wood 1184 Products (Ref. 37) and by comparing CARB’s met hod with the two-one sided t-test (TOST). 1185*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 53 of 177 [RIN 2070–AJ92] EPA is proposing to use the CARB method because it appears to be satisfactory for the desired 1186 purpose, it is simpler than the TOST method, it is not overly burdensome, and industry is already 1187 using it. EPA requests comment on whether the pr oposed means of showing equivalence is 1188 appropriate. EPA specifically requests comment on whether five comparison sample sets are 1189 sufficient or whether ten should be required. In addition, EPA requests comment on whether 1190 testing products in two different ranges of formaldehyde concentrations should be required, as is 1191 required under the CARB ATCM, and what ranges would be appropriate ( e.g. , lower range less 1192 than 0.05 ppm and upper range 0.05-0.13 ppm as measured by ASTM E-1333-10). EPA also 1193 requests comment on whether sampling should be left to the TPCs a nd manufacturers, or 1194 whether EPA should require testing of nine spec imens (representing evenly distributed portions 1195 of an entire panel) tested in groups of three specimens, resulting in three test results, which 1196 would be averaged to repres ent one comparison sample for the ASTM D-6007-02 method, or 1197 whether some other sampling protocol should be required. EPA also requests comment on 1198 whether the proposed criteria fo r demonstrating equivalence are appropriate, or whether other 1199 criteria would be more appropriate, such as establishing equivalence criteria based on the two 1200

one - sided t

- test ( TOST ). method. 1201 EPA is proposing to require that equi valence between ASTM E-1333-10 and any 1202 formaldehyde quality control test method used other than ASTM D-6007-02 would be 1203 demonstrated by establishing a linear regressi on and an acceptable correlation, as defined by the 1204 correlation coefficient, or “r” value. Although co rrelation will not show that the test methods 1205 give equivalent results, it will demonstrate whet her a quality control test method can be used to 1206 adequately estimate the corresponding ASTM E-1333- 10 test result; therefore, if there is an 1207 acceptable correlation, the quality control test me thod can be used to estimate whether the 1208*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 54 of 177 [RIN 2070–AJ92] product meets the emission standards. The co rrelation would be based on a minimum sample 1209 size of five data pairs and a simp le linear regression where the depe ndent variable (Y-axis) is the 1210 quality control test value and the independent variable (X-axis) is the ASTM E-1333-10 test 1211 value. EPA is proposing the following minimum acceptable correlation coefficients (“r” values) 1212 for the correlation: 1213 Minimum Correlation for Equivalency Correlations Degrees of Freedom (n-2) “r” Value
3 0.878
4 0.811
5 0.754
6 0.707
7 0.666
8 0.632
9 0.602
10 or more 0.576 The number of data pairs is represented by th e letter “n”. For example, correlations 1214 based on five data pairs have 3- degrees of freedom, and the correla tion coefficient would need to 1215 be 0.878 or greater. These values are the sa me as those recommended by CARB in its 1216 Certification Guidelin e No. CWP-10-001 (Ref. 3 5 38 ). EPA requests comment, information, and 1217 data on these values and whether they adequately account fo r the uncertainties ( e.g. , sample 1218 preparation, emission testing) and thus, are appropriate for this purpose. 1219 Because of the low emissions required for regulated composite wood products, it may be 1220 necessary to include more than five data pairs an d/or a range of products (with a suitable range in 1221 emissions, e.g. , 0 – 0.1 ppm) in the testing to achieve acceptable correlation coefficients. In 1222*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 55 of 177 [RIN 2070–AJ92] addition to the requirement of establishing a ne w correlation annually or whenever there is a 1223 significant change in equipment, procedures, or the qualifications of te sting personnel, EPA is 1224 proposing that a new correlation would need to be established by the TPC for the panel producer 1225 whenever a TPC's quarterly test results compared with the panel producer's quality control test 1226 results do not fit the previously established correl ation. In addition, if a panel producer fails two 1227 quarterly tests in a row, a new correlation cu rve would have to be established. 1228 EPA requests comment on the proposed correlation method for demonstrating 1229 equivalence and whether the proposed acceptable co rrelation coefficients are reasonable. EPA 1230 also requests comment on whether the term “equi valency” needs to be more clearly defined and 1231 whether additional statistical parameters are needed to make a determination of “equivalency” 1232 for the quality control methods. 1233
4. Non-complying lots. EPA is proposing to require pr oducers of non-comp lying lots of 1234 composite wood products to treat such lots in a manner similar to the CARB ATCM 1235 requirements. A non-complying lot would be a ny lot or batch represented by a quarterly or 1236 quality control test value that exceeds the appl icable emission standard for the particular 1237 composite wood product. In the case of a quarterly test value, only the particular lot from which 1238 the sample was taken would be considered a non-c omplying lot; lots produ ced after the previous 1239 quarterly test but before the lot from which the sample was taken would still be considered 1240 certified product. However, future producti on of product type(s) represented by a failed 1241 quarterly test would not be considered certified and would ha ve to be treated as a non-complying 1242 lot until the product type(s) ar e re-qualified through a succes sful quarterly test. 1243 TPCs would be required to notify EPA and th e panel producer of any quarterly tests that 1244 exceed the applicable standard within 24 hours of obtaining the test result. Panel producers 1245*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 56 of 177 [RIN 2070–AJ92] would be required to segregat e the non-complying lot from ot her product. Products in non1246 complying lots could only be sold, supplied, or offere d for sale in the United States if a test value 1247 that meets the applicable standard is obtained after the products are trea ted with scavengers, to 1248 absorb excess formaldehyde, or treated through another process that reduces formaldehyde 1249 emissions, e.g. aging. EPA is proposing to define the term “scavenger” as a chemical or 1250 chemicals that can be applied to resins or composite wood pr oducts to reduce the amount of 1251 formaldehyde that can be emitted from com posite wood products. EPA requests comment on 1252 whether this definition is appropr iate. EPA also requests comment on processes other than aging 1253 that could be used to reduce formaldehyde emi ssions from non-complying lots. Under this 1254 proposal, panel producers would be required to k eep records of the disposition of non-complying 1255 lots, including the specific tr eatment used and the subsequent test results demonstrating 1256 compliance. 1257 Non-complying lots, by defin ition, do not meet the applicable emission standards and 1258 may not be sold, supplied, or offered for sale in th e United States. In order to ensure that this 1259 does not occur, EPA is proposing to require that panel producers retain lots of composite wood 1260 products from which quality control or quarterly samples have been selected until the samples 1261 have been tested and the results received. With respect to quarterly samples, this includes lots 1262 that are grouped for purposes of quarterly testi ng. EPA believes that this approach may be less 1263 burdensome overall and offer bette r protection to importers, distri butors, wholesalers, retailers, 1264 and consumers than an approach relying on af ter-the-fact enforcement actions and customer 1265 notifications. 1266 E. Quality Assurance and Quality Control Re quirements for Composite Wood Product Panel 1267 Producers 1268 1269 Composite wood product panel producers are re sponsible for ensuring that their products 1270*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 57 of 177 [RIN 2070–AJ92] meet the emission standards of TSCA Title VI. Quality assurance and quality control 1271 requirements for panel producers are necessary to en sure that all of thei r products comply with 1272 the applicable standards, includ ing those that are not actually tested. EPA believes that the 1273 proposed quality assurance and qua lity control requirements woul d help ensure proper handling 1274 of test samples, test equipment, and quality c ontrol testing. EPA is ge nerally proposing quality 1275 assurance requirements that ar e identical to the requireme nts under the CARB ATCM. As 1276 discussed in more detail in Unit III.F. of th is preamble, these quality assurance and quality 1277 control requirements do not apply to any product type made with a NAF-based resin or ULEF 1278 resin for which the panel producer is eligible for an exemption from the third party certification 1279 requirements, except for the purpose of appl ying for re-approval for the exemption. 1280 Under this proposal, each panel producer w ould be required to have a written quality 1281 control manual containing at a minimum: 1) or ganizational structure of the quality control 1282 department; 2) sampling procedures; 3) met hod of handling samples, including a specific 1283 maximum time period for analyzing quality contro l samples; 4) frequency of quality control 1284 testing; 5) procedures to identify changes in formaldehyde emissions resulting from production 1285 changes ( e.g. , increase in the percentage of resin, in crease in formaldehyde/urea molar ratio in 1286 the resin, or decrease in press time); 6) provisions for addition al testing; 7) recordkeeping 1287 requirements; 8) average percen tage of resin and press time for each product type; 9) product 1288 grouping, if applicable, and 10) procedures for redu ced quality control test ing, if applicable. The 1289 TPC would review and approve the manual to ensu re that the manual is complete and that the 1290 panel producer’s procedures are adequate to ensure that the TSCA Title VI emission standards 1291 are being met on an ongoing basis. The proposed requirement for a quality control manual is 1292 consistent with CARB and with international voluntary consensus standards, such as the 1293*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 58 of 177 [RIN 2070–AJ92] International Standards Organiza tion (ISO) 9000 series of standards. EPA requests comment on 1294 what should be included in the quality control manual. 1295 This proposal would also require each pane l producer to designate a quality control 1296 facility for conducting quality control formaldehyde testing of their product. The quality control 1297 facility must be a laboratory owned and opera ted by the panel producer, a TPC, or a contract 1298 laboratory. 1299 EPA is also proposing to require each panel pr oducer to designate a person as quality 1300 control manager with adequate experience and/or training to be responsible for formaldehyde 1301 emission quality control. EPA is requesting co mment on criteria for determining whether an 1302 individual’s experience and/or tr aining are appropriate for this position. For example, should the 1303 quality control manager have a certain number of years of experien ce in the wood products 1304 industry, or a degree in chemis try or a related field? 1305 The quality control manager woul d have to have the authority to take actions necessary to 1306 ensure that applicable emission standards are bei ng met. The quality control manager would also 1307 be identified in writing to the TPC. Under th is proposal, the panel produ cer would have to notify 1308 the TPC in writing within ten days of any change in the identity of the quality control manager 1309 and provide the TPC with the new quality contro l manager’s qualifications. The quality control 1310 manager would review and appr ove all reports of quality c ontrol testing conducted on the 1311 production of the panel producer. The quality co ntrol manager would also be responsible for 1312 ensuring that the samples are collected, packag ed, and shipped according to the procedures 1313 specified in the quality control manual. Th e panel producer quality control manager would 1314 monitor the testing facility’s results, and woul d immediately inform the TPC in writing of any 1315 significant changes in production that coul d affect formaldehyde emission rates. 1316*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 59 of 177 [RIN 2070–AJ92] EPA is proposing to require panel producers to submit monthly product data reports for 1317 each panel producer, production line and product type , to their TPC. The content requirements 1318 for the product data reports would be similar to the CARB requirements a nd include a data sheet 1319 for each specific product with test and produc tion information, and a quality control graph 1320 containing the established quality control limit (QCL) and shipping QCL, if applicable, the 1321 results of quality control tests, and retest values. EPA requests comment on whether other useful 1322 information, or a different fo rmat, should be required. 1323 EPA is also proposing to require that each qua lity control facility have quality control 1324 employees with adequate experience and/or tr aining to conduct accurate and precise chemical 1325 quantitative analytical tests. EPA requests comment on the criteria for determining whether an 1326 individual’s experience and/or training are appropriate for th is position. The quality control 1327 manager would identify each person conducting fo rmaldehyde quality control testing in the 1328 quality control manual and to the accredited TPC. 1329
F. NAF and ULEF Resins 1330 TSCA Title VI section 601(d)(2)(D) and (E) directs EPA to include, in its implementing 1331 regulations, provisions related to products made with NAF and U LEF resins. The statute also 1332 defines, under section 601(a)(7) and (10) resp ectively, what constitutes NAF-based and ULEF1333 based resins, in terms of the composition of the resin system and maximum formaldehyde 1334 emissions for composite wood products made with these resin systems. In general, a NAF 1335 composite wood product cannot incorporate a resi n formulated with formaldehyde. A ULEF 1336 composite wood product is one made from resins that may contain formaldehyde, but emit it at 1337 particularly low levels, such as melamine-ur ea-formaldehyde resin, phenol formaldehyde resin, 1338 resorcinol formaldehyde, or other formaldehyde-bas ed resins. The statutory maximum emissions 1339*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 60 of 177 [RIN 2070–AJ92] for products made with NAF-based or ULEF-based resins are identical to those in the CARB 1340
ATCM. 1341 Under the CARB ATCM, ULEF and NAF manuf actures are provided with incentives 1342 such as reduced testing requirements for ULEF , and for NAF, a two year exemption from TPC 1343 oversight and formaldehyde emissions testing for one individual product type. If further reduced 1344 emission standards are met, ULEF manufacturers can also be ex empted from TPC oversight and 1345 formaldehyde emissions testing. ULEF and NAF manufacturers must apply to CARB to get the 1346 initial exemption for either the reduced testing of their individua l products (for ULEF) or for a 1347 total exemption from TPC oversight and formal dehyde emissions testing (ULEF or NAF). A 1348 separate exemption is required for each co mposite wood product type. The NAF exemption 1349 under the CARB ATCM from TPC oversight and formaldehyde emissions testing requires an 1350 initial 3 month formaldehyde emissions testing pe riod with a TPC. For manufacturers to receive 1351 a ULEF exemption from TPC oversight and fo rmaldehyde emissions testing, 6 months of 1352 formaldehyde emissions testing with a TPC is required. In addition, formaldehyde emissions 1353 must be reduced to below the standard ULEF emissions level. Exempt NAF and ULEF 1354 manufacturers must reapply to CARB for exem ption from TPC oversight and formaldehyde 1355 emissions testing every two years by submitting test results for each product type for which an 1356 exemption is sought, based on a panel or set of pa nels randomly selected and tested by a TPC, 1357 and the chemical formulation of the resin. 1358 EPA is proposing a similar approach for the TSCA Title VI program . If certain emission 1359 thresholds are met , EPA proposes to provide producer s of panels made with NAF-based resins or 1360
ULEF resins with an exemption from TPC oversight and formaldehyde emissions testing after an 1361 initial testing period of 3 months for each product type . This made with NAF-based resins or 6 1362*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 61 of 177 [RIN 2070–AJ92] months for each product type made w ith ULEF resins. These specific initial testing period 1363 is periods are required by the statute and is are designed to ensure that the products meet the 1364 TSCA section 601(a )(7 ) formaldehyde emission standards for products made with NAF-based or 1365
ULEF resins. 1366 Whether using a NAF-based or ULEF resin, to qualify for this the exemption , during the 1367 initial from TPC oversight and formaldehyde emission testing period for a particular product 1368 type , there can be no test result higher than 0.05 ppm of formaldehyde for hardwood plywood 1369 and 0.06 ppm for particleboard, medium-density fi berboard, and thin medium-density fiberboard

. 1370 during the initial testi ng period of 3 or 6 months for NAF-b ased or ULEF resins, respectively. In 1371 addition, test results for 90 percent of the 3 required 3 or 6 months of quality control testing must 1372 be no higher than 0.04 ppm of formaldehyde. 1373 EPA is also proposing that, if less stringe nt emission standards than these are met, 1374 producers of panels made with ULEF resins ma y still qualify for reduced formaldehyde emission 1375 testing—but not the TPC exemption or the exemp tion from emission testing after the initial 6 1376 months. To qualify for this reduced testing provi sion for products made with ULEF resins, there 1377 can be no test result higher than 0.05 ppm of formaldehyde for hardwood plywood, 0.08 ppm for 1378 particleboard, 0.09 ppm for medium -density fiberboard, and 0.11 ppm for thin medium-density 1379 fiberboard during the initial 6 mont h testing period. In addition, test results for 90 percent of the 1380 required quality control testing must be no higher than 0.05 ppm of formaldehyde for 1381 particleboard, 0.06 ppm for medium -density fiberboard, and 0.08 ppm for thin medium-density 1382 fiberboard. Under this reduced testing provision, qualifying pa nels would only need to be 1383 quality control tested at leas t once per week per product type and production line, except that 1384 hardwood plywood panel producers who qualify for less frequent quality control testing may 1385*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 62 of 177 [RIN 2070–AJ92] continue to perform the lesser am ount of testing. For these pa nels, what would otherwise be 1386 quarterly testing by an accredited TPC would instead only be required every six months. 1387 An accredited TPC would be required to ove rsee the testing during the initial testing 1388 period, which must include at least one test result for the NAF exemption or two test results for 1389 either ULEF provision under ASTM E-1333-10 or, upon a showi ng of equivalence as discussed 1390 in this Unit, ASTM D-6007-02 ( Ref. 2 8 , 2 6 Refs. 31, 29 ). In contrast to the exemption under the 1391 CARB ATCM, EPA is not proposing to require the panel producer to formally apply to EPA for 1392 reduced testing or a TPC exemption every two years . Rather, the panel producer would be 1393 required to apply to an accredited TPC for an reduced testing or a TPC exemption based on the 1394 regulatory requirements and to send a copy of the application to EPA. EPA intends to list panel 1395 producers and product types that have been appr oved for reduced testing and exemption from 1396 TPC requirements on EPA’s website. 1397 To maintain eligibility for the a TPC exemption, at least once every two years after the 1398 conclusion of the initial testing period, the pane l producer would have to reapply for exemption 1399 to an accredited TPC and have one test re sult under ASTM E-1333-10 or, upon a showing of 1400 equivalence as discussed in this Unit, AS TM D-6007-02, which demonstrates continued 1401 compliance with the reduced formaldehyde emission standards for each product type ( Ref. 2 8 , 1402
2 6 Refs. 31, 29 ). The test must be based on produc ts randomly selected and tested by an 1403 accredited TPC . In the case of approval for ULEF reduced testing, no periodic reapplication 1404 would be necessary because the panel producer would have ongoing TPC oversight

. 1405 Testing records and other record s demonstrating eligibility for t he a TPC exemption or 1406 reduced testing , such as records showing the chemical composition of the resins used to 1407 manufacture the eligible products, would ha ve to be maintained for a minimum of 5 3 years from 1408*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 63 of 177 [RIN 2070–AJ92] the date that the record was cr eated. EPA requests comment on wh ether the test records from the 1409 initial testing period should be kept for as long as the a panel producer claims the a TPC 1410 exemption. 1411 Under this proposal, any change in the resin formulation, the core material, or any other 1412 part of the manufacturing pro cess that may affect formaldehyde emission rates would render the 1413 product ineligible for the exemption. EPA reduced testing approval or TPC exemption. EPA 1414 requests comment on whether other events, such as failed quarterly or ro utine quality control 1415 tests, should invalida te a reduced testing approval. EPA also requests comment on whether, in 1416 the event of such a change, the panel pr oducer should be required to begin the NAF TPC 1417 exemption process again with a 3 or 6 month testing period overs een by an accredited TPC, or 1418 whether a single TPC test of the modifi ed product would be sufficient. EPA also further requests 1419 comment on whether a distinction can be made be tween changes that are unlikely to result in 1420 changes in product emissions, which may not n eed extensive testing to confirm continued 1421 eligibility for the exemption, and more significant changes. EPA is particularly interested in 1422 specific examples of both types of changes. 1423 EPA is not proposing to include an exemption for products made with ULEF

- based resin. EPA 1424 believes that producers of composite wood product panels should be encouraged to move away 1425 from formaldehyde

- based resins altogether and that spec ial incentives should be provided for 1426

t hose panel producers who have made the change. In addition, EPA believes that the use of 1427
NAF

- based resin is a more reliable way of en suring that formaldehyde emissions from a 1428 particular product remain low over time, regardless of environmental conditions , such as heat 1429 and humidity. In contrast, Although this proposal contains a ULEF reduced testing provision, 1430 EPA requests comment on the utility of this op tion. It is EPA’s understanding that very few 1431*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 64 of 177 [RIN 2070–AJ92] manufacturers have sought the ULEF reduced te sting provision under the CARB ATCM in lieu 1432 of the total exemption from TPC oversight a nd formaldehyde emissions testing requirements 1433 after the initial testing period. As such, EPA anticipates that th e vast majority of ULEF resin1434 based composite wood product manufacturers will apply for the full exemption from TPC 1435 oversight and formaldehyde emissions test ing after the initia l testing period. 1436 EPA is also requesting comments, informa tion, and data on the broader question of 1437 giving composite wood products made with ULEF resins preferential treatment under TSCA. 1438 EPA is particularly concerned with products made with urea-formaldehyde-based resins. EPA 1439 believes that it is more difficult to ensure that formaldehyde emissions from products made with 1440
ULEF

- based resins remain low over time, re gardless of environmental conditions. these resins 1441 remain low over time, regardless of environmen tal conditions. It is well known that urea1442 formaldehyde resins can release formaldehyde when exposed to heat and humidity because of 1443 the chemistry of the resin. There are a numbe r of older studies demonstrating that urea1444 formaldehyde resins have increased emissions in the presence of heat and humidity. For 1445 example, a 1985 review article analyzes data on the effects of temperature or humidity on 1446 formaldehyde emissions from urea-formalde hyde bonded particleboard and hardwood plywood 1447 from numerous studies from 1960-1984 (Ref. 39). This article concludes that formaldehyde 1448 emissions increased exponentially with increa sing temperature. The relationship between 1449 humidity and formaldehyde emissions was more co mplex and variable, but the author concludes 1450 that the relationship wa s approximately linear. 1451 Since the 1980s, changes have been made to resins to lower formaldehyde emissions; for 1452 example, the ratio of formaldehyde to urea is of ten lower, and sometimes scavengers are added 1453 to the resin. Several recent emission studies have been conducted on composite wood products 1454*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 65 of 177 [RIN 2070–AJ92] that have been produced to m eet stringent emission standards. A study on a hardwood plywood 1455 product made with urea-formaldehyde resin a nd a similar hardwood plywood product made with 1456 a NAF resin demonstrated that the urea-formal dehyde product emitted more formaldehyde as the 1457 temperature and relative humidity increased. The study reports that both products met the 1458 CARB Phase 2 standard when initially tested in a small chamber under the test conditions 1459 specified by the method, i.e. , 25 degrees Celsius and 50% relative humidity (Ref. 3 6 40 ). 1460 However, when the urea-formaldehyde product was tested at 35 degrees Celsius and 100% 1461 relative humidity, its formaldehyde emissions incr eased by more than 31 times compared with 1462 the emissions measured at 25 degrees Celsius and 30% relative humidity. In contrast, the 1463 formaldehyde emissions from the NAF product only increased slightly (less than 4 times) over 1464 the same change in temperature and humidity co nditions. In addition, for the NAF product, total 1465 formaldehyde emissions reached a plateau and decr eased rapidly after a few days under all of the 1466 test conditions. EPA requests comment on whether there should be an exemption similar to the 1467 CARB exemption for products made with UL EF

- based resins, or whether another type of 1468 incentive should be offered for products made with ULEF

- based resins , and the basis for the 1469 exemption

. 1470 Riedlinger et al measured formaldehyde emissions from four types of particleboard (PB) 1471 panels (made with UF, phenol-formaldehyde (PF), melamine-urea-formaldehyde (MUF), and 1472 polymeric diphenylmethane diisocyanate (pMDI) resins), one of which (the PF product) was 1473 certified as a ULEF panel under the CARB ATCM (Ref. 41). Testing was conducted at both the 1474 standard temperature/relative humidity conditions and at 30 °C and 75% relative humidity using 1475 ASTM D-6007 and the Dynamic Microchamber Method (Refs. 29, 33) for up to 50 days. 1476 Aspects of the testing confound comparisons of the data; for example, testing at the standard and 1477*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 66 of 177 [RIN 2070–AJ92] elevated temperature/relative humidity conditions was conducted in two different laboratories, 1478 using different sampling procedures and analyt ical methods, with sampling at different time 1479 points. Nonetheless, the study appears to show that formaldehyde emissions from panels made 1480 with all four resin types increas ed by factors of 2 to 3 under the elevated temperature/relative 1481 humidity conditions. Emissions from pane ls made with two non-UF resin types ( i.e. , PF and 1482 pMDI) never exceeded the numerical emission li mit of 0.09 ppm for PB, even at elevated 1483 conditions, whereas emissions from pa nels made with the UF resins ( i.e. , UF and MUF) 1484 exceeded that numerical emission limit at elevat ed temperature and relative humidity until about 1485 20 or 25 days after the start of the testing. 1486 EPA also recently conducted a study to i nvestigate the effects of temperature and 1487 humidity on formaldehyde emissions from hard wood plywood made with different types of 1488 resins (Ref. 42). A CARB appr oved third-party certifier tested commercial hardwood plywood 1489 products certified as NAF or ULEF under the CARB ATCM using ASTM D-6007-02 (small 1490 chamber testing) at two different temperatures (25 °C and 30 °C) and three different relative 1491 humidities (50%, 70%, and 85%). The results de monstrate that while formaldehyde emissions 1492 increased from all panels with increasing temper ature, the effect of temperature on emissions 1493 from ULEF panels made with urea-formaldehyde (ULEF-UF) was up to th ree times greater than 1494 on the NAF panels made with an acrylic re sin or the ULEF panels made with phenol1495 formaldehyde. All formaldehyde emissions from the ULEF-UF panel exceeded the numerical 1496 emission limit for ULEF panels (0.05 ppm) excep t under standard conditions, while, in almost all 1497 cases, despite the chamber conditions, formaldehyde emissions for the ULEF-PF and NAF1498 acrylic panels were below th e numerical emission standard. 1499 Given this information, EPA requests commen t on whether there should be a reduced 1500*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 67 of 177 [RIN 2070–AJ92] testing option or a TPC exemption available to products made with ULEF resins. EPA also 1501 requests comment on whether the ULEF provisions should be limited to products made with a 1502 subset of ULEF resins that do not contain urea-formaldehyde polymer—in other words, limited 1503 to no-added urea formaldehyde-based (NAUF) resins . EPA believes that encouraging the use of 1504 NAUF resins is a more reliable way of ensuring that formaldehyde emissions from a particular 1505 product remain low over time, regardless of e nvironmental conditions, such as heat and 1506 humidity. 1507 G. De Minimis Exception 1508 Section 601(d)(2)(L) of TSCA allows EPA to promulgate, for products and components 1509 containing de minimis amounts of composite wood products, an exception to all of the 1510 requirements of the implementing regulations othe r than the formaldehyde emission standards. 1511 After due consideration, EPA has decided not to propose an excepti on from any of the regulatory 1512 requirements for products containing de mini mis amounts of composite wood products. EPA 1513 does not have data on the emission levels of such products, nor does EPA know of any 1514 information that suggests that such products wo uld not have formaldehyde emissions that exceed 1515 the statutory emission standards. In addition, EPA has not identif ied any apparent dividing line 1516 between products that contain de minimis amounts of composite wood products and other 1517 products. EPA requests comment, information a nd data on whether there should be such an 1518 exception, how the exception should be delineate d, and what regulatory provisions should apply 1519 or not apply to such products. EPA notes that any decision on this particular exception would 1520 not affect the statutory exemption from the em ission standards for windows, exterior doors, and 1521 garage doors made with small amounts of composite wood products. 1522 H. Chain-of-Custody, Recordkeeping, and Labeling Requirements 1523*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 68 of 177 [RIN 2070–AJ92] Section 601(d)(2) of TSCA Title VI also directs EPA to consider chain of custody, 1524 recordkeeping, and labeling requirements. Fo r labeling, EPA is proposing requirements that 1525 generally follow the approach taken in the CARB ATCM because EPA believes that this 1526 approach supports compliance with the TSCA Title VI emission standards while not being 1527 unduly burdensome. With respect to chain of custody and recordkeeping requirements, EPA is 1528 proposing requirements similar to that of the CA RB ATCM for entities that are manufacturers 1529 under TSCA. This includes entities who im port, produce, or manufacture composite wood 1530 panels, component parts, or fi nished goods. Again, EPA believes that this approach supports 1531 compliance with TSCA Title VI without undue bur den. However, for distributors and retailers 1532 who are not manufacturers under TS CA, EPA is proposing that they only be required to keep 1533 invoices and bills of lading. EPA has determined that these ordinary business records would 1534 provide enough information to enable EPA to tr ace back a particular composite wood product to 1535 the panel producer and thus allow EPA to monito r compliance with TSCA Title VI. Each of 1536 these proposed requirements is discussed in mo re detail in this Unit. 1537 1. Chain of custody and recordkeeping requirements. Most records would have to be 1538 kept for a period of five 3 years from the date that they are ge nerated. In additi on, all records that 1539 would be required by this proposal would also have to be provided to EPA upon request to 1540 facilitate EPA’s compliance monitoring activities. 1541 Producers of hardwood plywood, particleboard, and medium-density fiberboard panels 1542 would be required to maintain records of quarter ly emission testing and records of quality control 1543 testing. These records would have to identi fy the accredited TPC conducting or overseeing the 1544 testing, and would include the date, the product t ype tested, the lot or batch number that the 1545 tested material represents, and the test resu lts. In addition, panel producers would have to 1546*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 69 of 177 [RIN 2070–AJ92] maintain the following records: 1547

• Production records, including a description of the composite wood product(s), date of 1548 manufacture, lot or batch number s, and tracking information allo wing each product to be traced 1549 to a specific lot number or batch produced; 1550

• Changes in production, including changes in resin use, resin composition, and changes 1551 in the process, e.g. , press time; 1552

• Purchaser information for each composite w ood product, if applicable, including name, 1553 contact person, address, phone number, purch ase order or invoice number, and amount 1554 purchased; 1555

• Transporter information for each composite wood product, if applicable, including 1556 name, contact person, address, phone number, shi pping invoice number, and amount transported; 1557 and 1558

• Information on the disposition of non-complyi ng lots or batches, including product type 1559 and amount of composite wood products affected, lot or batch numbers, mitigation measures 1560 used, results of retesting, and final disposition of the lots or batches. 1561 In addition, laminated product producers whose products are exempt from the definition 1562 of hardwood plywood would have to maintain records demonstrating use of a NAF resin, 1563 including the resin trade name, re sin manufacturer contact informa tion, and resin supplier contact 1564 information, or, if the resin is made in-house, reco rds sufficient to demonstrate that the resin is a 1565 NAF resin. 1566 In order to assist customers such as fabricat ors, distributors, impor ters, and retailers in 1567 determining whether they are purchasing co mpliant composite wood products, EPA would 1568 require that all records pertaining to the compliance status of a particular lot, batch, or shipment 1569*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 70 of 177 [RIN 2070–AJ92] of composite wood products be prov ided to purchasers upon request. EPA realizes that some of 1570 the information contained in these records is information that manuf actures might claim as 1571 Confidential Business Information (CBI) in othe r contexts. While information collected under 1572 TSCA may be entitled to confiden tial treatment if it meets the st andard for Exemption 4 in the 1573 Freedom of Information Act (FOIA), 5 U.S.C. § 552( b)(4), TSCA provides that health and safety 1574 studies and data derived from hea lth and safety studies, are not entitled to confidential treatment, 1575 irrespective of the Exemption 4 standard, unless the data derive d from such studies disclose 1576 confidential processes us ed in the manufacturing or processi ng of a chemical substance or 1577 mixture or, in the case of a mixture, the release of data disclosing confid ential portion of mixture 1578 information. 1579 TSCA defines a "health and safety study" as any study of any effect of a chemical 1580 substance or mixture on health or the environm ent or on both, including underlying data and 1581 epidemiological studies, studies of occupatio nal exposure to a chemical or mixture, 1582 toxicological, clinical, and ecol ogical studies of a chemical or mixture, and any test performed 1583 pursuant to TSCA (15 U.S.C. 2602(6)). Because the testing required by TSCA Title VI and the 1584 implementing regulations would be “any test perf ormed pursuant to the Act,” such tests would 1585 be health and safety studies. Therefore, unde r TSCA, the formaldehyde emission test results of 1586 specific products are not entitled to confidential treatment. The na mes of the producers of panels 1587 for which formaldehyde emission data are generate d similarly are not enti tled to confidential 1588 treatment, analogous to how EPA tr eats the confidentiality of chem ical identities in health and 1589 safety studies. It is a long established principl e that the chemical name is part of, or underlying 1590 data to, a health and safety study. (See 40 CFR 716.3; 40 CFR 720.3(k)) The rationale for this is 1591 that the chemical name provide s context for the study results, i.e. , the test relates to a specific 1592*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 71 of 177 [RIN 2070–AJ92] chemical. Without knowing the chemical name, ther e is no basis for unders tanding the results of 1593 the test. 1594 The same principle applies to producer name s. The requirement to test formaldehyde 1595 emissions from specific composite wood products produced by specific panel producers, and an 1596 obligation to make those results available to downstream purchasers so that purchasers can 1597 determine whether they are purchasing compliant products, is integral to TSCA Title VI and 1598 these implementing regulations. In order to ha ve context, the raw emission numbers must be 1599 linked to the products tested. For this reason, the product name and the producer of the product 1600 constitute part of, or are unde rlying data to, a health and sa fety study. Therefore under TSCA, 1601 the product and panel producer name are not entitled to confiden tial treatment. 1602 Producers of hardwood plywood, particleboard and medium-density fiberboard panels 1603 using NAF-based resins or ULEF resins who qualify for the re duced testing and third-party 1604 certification requirements discussed in Unit III.F. would have to maintain records demonstrating 1605 initial eligibility for the reduced testing. In addition, th e panel producer would have to keep 1606 records documenting the following for each product type: 1607

• The amount of resin use by volume and weight; 1608

• Production volume, reported as sq uare feet per product type; 1609

• Resin trade name, resin manufacturer contac t information, and resin supplier contact 1610 information; 1611

• Changes in the production method, including changes in press time by more than 20 1612 percent; and 1613

• Changes in the resin formulation. 1614 Importers, fabricators of finished goods that incorporate composite wood products, 1615*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 72 of 177 [RIN 2070–AJ92] laminated product producers whose products are exempt from the definition of hardwood 1616 plywood, distributors, and retailers would be required to take steps to ensure that they are 1617 purchasing composite wood products or compon ent parts that comply with the emission 1618 standards. Importers, fabric ators, and laminated product pr oducers would be required to 1619 document these steps. In general, this means th at the importer, fabricator, or producer would be 1620 required to obtain from the supplier records iden tifying the panel producer (s) that produced the 1621 composite wood products and the dates that the pr oducts were manufactured and purchased from 1622 the panel producer(s), and bills of lading or invoi ces that include a writte n affirmation from the 1623 supplier that the composite wood products are compliant with this subpart. EPA requests 1624 comment on what documentation ought to be required of distributors and reta ilers in this regard. 1625 For example, should distributors and retailers be required to obtain bill s of lading or invoices 1626 from their suppliers that incl ude a written affirmation that the composite wood products are 1627 compliant with this subpart? Or should distributo rs and retailers be requir ed to obtain the same 1628 records that EPA is proposing to require for impor ters, fabricators, and la minators? In addition, 1629 laminated product producers whose products are exempt from the definition of hardwood 1630 plywood would have to maintain records demonstr ating use of a NAF resin, including the resin 1631 trade name, resin manufacturer contact informati on, and resin supplier contact information, or, if 1632 the resin is made in-house, records sufficient to demonstrate that the re sin is a NAF resin. 1633 For distributors and retail ers who do not import, produce, or manufacture composite 1634 wood panels, component parts, or finished goods, EP A is proposing to require that they maintain 1635 invoices and bills of lading. The invoices and bill s of lading would not be required to contain an 1636 affirmation by the supplier that the goods comp ly with TSCA Title IV. EPA believes that 1637 invoices and bills of lading are usually kept by most distributors and retailers already, as part of 1638*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 73 of 177 [RIN 2070–AJ92] their general recordkeeping practices. EPA has de termined that these records will enable EPA to 1639 identify the producer or importer of composite wood panels, component parts, or finished goods 1640 being sold by distributors and retailers. For finished goods, this will allow EPA to ultimately 1641 identify the producer of the composite wood pane ls that make up the finished goods. Without 1642 imposing additional recordkeeping burdens on most distributors and retailers, this requirement 1643 will allow EPA to effectively monitor compliance with TSCA Title VI. 1644 Entities that fit within two or more of these recordkeeping cate gories, such as a fabricator 1645 of finished goods who also buys finished goods fo r resale, or a distribu tor that buys finished 1646 goods from both foreign and domestic companies fo r resale, would be required to keep only the 1647 records for each product th at correspond to the activ ities the entity undertook with respect to that 1648 product. For example, a domestic fabricator of finished goods who also buys domestic finished 1649 goods and sells both categories of finished goods to a domestic distributor for resale would have 1650 to keep the records required for fabricators on those products that the fabricator produces, and 1651 invoices and bills of lading only for those finished goods that the fabricator buys and resells. A 1652 distributor who purchases both foreign and domestic finished goods for resale would be required 1653 to keep the following records: 1654

• For foreign finished goods that the distri butor imports, records identifying the panel 1655 producer(s) that produced the composite wood pr oducts and the dates that the products were 1656 manufactured and purchased from the panel producer(s) as well as bills of lading or invoices 1657 that include a written affirm ation from the supplier that the composite wood products are 1658 compliant with this subpart. 1659

• For domestic finished goods, onl y invoices and bills of lading, which need not contain a 1660 written compliance affirmation from the supplier. 1661*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 74 of 177 [RIN 2070–AJ92] For imported finished goods, only the importer would be responsible fo r keeping the records 1662 identifying the panel producer and the da te that the composite wood products were 1663 manufactured. For example, if the importer sells the goods to a domestic distributor, who then 1664 sells them to a domestic retailer, only the importe r would have to keep the additional records. 1665 The domestic distributor and retail er would only be required to keep invoices and bills of lading. 1666 With respect to home builders or producers of goods such as modular homes, 1667 manufactured homes, or recreat ional vehicles that contain composite wood products, EPA will 1668 generally consider these entities to be either fa bricators or retailers for recordkeeping purposes, 1669 depending on their activities with respect to composite wood products. For example, a home 1670 builder or manufactured home producer who pur chases finished kitchen cabinets made of 1671 composite wood products from another entity, instal ls them in the home, and then sells the home 1672 to a consumer would be considered to be a reta iler so long as no major m odifications were made 1673 to the cabinets in the process of installing th em. In contrast, a manufactured home producer 1674 would be considered a fabricator if the producer purchased finished composite wood panels, cut 1675 them into shelves or countertops, edge-banded them , and then installed them into a manufactured 1676 home and sold the home to a consumer. EPA belie ves that this approach is consistent with 1677 CARB’s approach (Ref. 43, Questions 87, 89, and 91) . These entities may al so be importers if 1678 they import composite wood products, or components made with composite wood products, for 1679 installation into their homes or recreationa l vehicles. EPA requests comment on how the 1680 definition of “fabricator” and the record keep ing requirements for fabr icators would affect 1681 manufactured home producers. 1682 In order for this recordkeeping system to f unction effectively, allowing EPA to determine 1683 the source of the composite wood products that make up an imported finished good, the records 1684*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 75 of 177 [RIN 2070–AJ92] required to be kept by the importer would have to be accessible to EPA. EPA requests comment 1685 on alternative ways to ensure that this is th e case. For example, EPA could require importer 1686 records to be maintained in the United States, e ither at the importer’s pl ace of business or at a 1687 registered agent’s. Or EPA could require an electronic copy of the importer records to be 1688 available in the United States at the importer’s pl ace of business or with the importer’s registered 1689 agent. 1690 2. Labeling . The CARB ATCM requires that each panel or bundle of regulated 1691 composite wood products be labeled with the manufacturer name; product lot number or batch 1692 produced; markings that denote the product complie s with the applicable Phase 1 or Phase 2 1693 emission standards; markings if the product wa s made using ULEF or NAF-based resins; the 1694 CARB assigned number of the TPC; and a statem ent of compliance on the bill of lading or 1695 invoice. 1696 EPA is proposing similar labeling requirements. Under this proposal, panels or bundles 1697 of panels that are sold, supplied, or offered for sa le in the United States would have to be labeled 1698 with the name of the panel pr oducer, the lot or batch number, the number of the accredited TPC, 1699 and markings indicating that the product complies with the TSCA Title VI emission standards. 1700 Labels for products produced under the NAF exemption or ULEF exemptions discussed in Unit 1701 III.F. would also have to include the designation “no-added formaldehyde ” or “ultra low1702 emitting formaldehyde .” There would also have to be a statement of compliance on the bill of 1703 lading or invoice. As is required under CARB, distributors , Distributors and wholesalers , and 1704 retailers who receive labeled bundles of regulated composite wood pr oducts and then divide and 1705 repackage them, whether in bundles or separately, must would be required to label each separate 1706 bundle or item with the same information as require d on the original label. EPA is proposing to 1707*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 76 of 177 [RIN 2070–AJ92] define the term “bundle” as more than one composite wood product panel, component part, or 1708 finished good fastened together for transportation or sale. EPA requests comment on the utility 1709 of this definition and whether it repr esents common industry usage. 1710 EPA is interested in any information or da ta available on how often retailers receive 1711 bundles of regulated composite wood products and then divide and repackage them. In addition, 1712 EPA requests comment on whether th ese retailers should then be re quired to label each separate 1713 bundle or item with the same information as requi red on the original label. EPA would also be 1714 interested in comments on other approaches that could be used to convey the information; for 1715 example, allowing retailers to use signage in the retail display area, which contains the 1716 information on the label, to meet this requirement in lieu of separate labels on each product once 1717 debundled. Alternatively EPA requests comment on requiring fabricators and manufacturers to 1718 label every regulated product se parately prior to bundling and also requiring wholesalers, 1719 distributors, and retailers to mainta in those labels at all times. 1720 Fabricators of finished goods containing composite wood pro ducts would be required to 1721 label every finished good they produce, or ev ery box containing finished goods. As permitted by 1722 under the CARB ATCM, EPA is proposing to allow the label to be app lied as a stamp, tag, 1723 sticker, or bar code. It would have to include, at a minimum, the fabricator’s name, the date the 1724 finished good was produced and a marking to de note that the product was made in compliance 1725 with TSCA Title VI. EPA requests comment on wh ether a label applied as a bar code should be 1726 permitted, given that consumers of finished goods may not be able to read bar codes. EPA 1727 believes that many consumers of finished goods will be aware of the labeling requirements, 1728 either under the CARB ATCM or TSCA Title VI, a nd will be looking for a label that indicates 1729 compliance with the emission standards. 1730*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 77 of 177 [RIN 2070–AJ92] EPA proposes to allow boards to be shipped into and around the United States for quality 1731 control or quarterly tests. Th ese boards may not be sold, offe red for sale or supplied to any 1732 entity other than a TPC laboratory or contract la boratory prior to successful emissions testing. 1733 These boards or bundles must be labeled “For TSCA Title VI testing only, not for sale in the 1734 United States.” The boards or bundles may be re -labeled as compliant with TSCA and offered 1735 for sale once they have successfully completed testing. 1736 I. Sell-through Provisions and Stockpiling 1737 TSCA Title VI directs EPA to establish sell-through provisions for composite wood 1738 products, and finished goods containing regu lated composite wood products, based on a 1739 designated date of manufacture, or “manufactured-by” date. U nder the statute, composite wood 1740 products or finished goods manufactured before the specified manufact ured-by date are not 1741 subject to statutory emission standards or testing requirements. TSCA Ti tle VI states that the 1742 manufactured-by date must be no earlier than 180 days after promulgation of the final 1743 implementing regulations, but EPA has the discreti on to establish, by rulema king, a later date. 1744 The manufactured-by date approach directed by TSCA Title VI differs from the CARB 1745 ACTM approach, which is based on a sell-through date. CARB esta blished a series of dates by 1746 which products that are not compliant with all of the CARB requirements must be sold. In 1747 contrast, TSCA Title VI requires EPA to set a date by which all new products that are 1748 manufactured must be compliant with the emission standards. This approach should avoid some 1749 of the implementation issues encountered by CARB. For example, due to the economic 1750 recession, CARB found it necessary to extend the sell -through dates more than once to allow for 1751 the slow turnover of pree xisting inventory (Ref. 3 7 , 3 8 44, 45 ). 1752 TSCA Title VI also directs EPA to prohibi t the sale of inventory that was stockpiled, 1753*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 78 of 177 [RIN 2070–AJ92] which is defined in the statute as manufacturi ng or purchasing composite wood products between 1754 the date the statute was enacted a nd the manufactured-by date at a rate significantly greater than 1755 the rate during a particular base period. EPA is directed to define what constitutes “a rate 1756 significantly greater” and to establ ish the base period. Under the statute, the base period must 1757 end before July 7, 2010, the date that the Formaldehyde Standards for Composite Wood Products 1758 Act was enacted. 1759 EPA believes that because many products are already CARB ATCM-compliant, and 1760 because of a low consumer demand for products not CARB ATCM-compliant, stockpiling is not 1761 likely to be advantageous for manufacturers. Du ring the SBAR Panel process, at least one SER 1762 commented that consumers were asking for CARB compliant product prior to the end of the 1763 CARB sell-through periods (Ref. 15). Moreover, EPA believes that the cost of storing 1764 stockpiled goods would reduce or eliminate a ny economic advantage to stockpiling. Another 1765 SER commented that “[g]iven the cost of ca rrying inventory there is a natural brake on 1766 accumulating non-complying inventories long before the effective date of the regulation.” (Ref. 1767 15). 1768 EPA proposes to set the manufactured-by date at 1 year after publica tion of the final rule 1769 in the Federal Register . Although TSCA Title VI allows EPA to set this date at 180 days after 1770 promulgation of the final implementing regulations, EPA believes that more time will be needed 1771 to get all of the infrastructure , such as the accredited TPCs, in place and allow panel producers 1772 time to develop their initial qualifying data for certification. The manu factured-by date would 1773 apply to both regulated composite wood pane ls and finished goods containing regulated 1774 composite wood panels. Composite wood products th at can be shown to be manufactured before 1775 the established manufactured-by da te would not be subject to the emissions standards, nor would 1776*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 79 of 177 [RIN 2070–AJ92] they be required to be labele d or tested for emissions. Composite wood products manufactured 1777 before the manufactured-by date could be inco rporated into finished goods at any time. 1778 Retailers, fabricators, and distributors would be permitted to continue to buy and sell these 1779 composite wood products and finished goods that incorporate these products, because they 1780 would be considered compliant with TSCA Title VI and its implementing regulations, assuming 1781 the absence of stockpiling as discussed below. Under TSCA, the term “manufacture” includes 1782 import, so the “manufactured-by” date would eff ectively be an “imported-by” date for imported 1783 goods. 1784 In order to establish that a regulated co mposite wood product panel was made before the 1785 manufactured-by date, the panel pr oducer or importer and any subs equent distributor , retailer or 1786 fabricator would be required to keep records that document when the product was manufactured. 1787 In the case of a finished good, any subsequent dist ributor, retailer or fabr icator would be required 1788 to keep records that documen t that the composite wood products making up the finished good 1789 were either manufactured before the manufactured-by date or were manufactured in accordance 1790 with TSCA Title VI. In order to reduce consumer confusion, pr oducts that are made before the 1791 manufactured-by date would not be labeled as co mpliant with TSCA Title VI. Selling stockpiled 1792 regulated composite wood panels and finished goods containing regulated composite wood 1793 products would be prohibited. EPA proposes to define stockpiling as manufacturing or 1794 purchasing composite wood products between Ju ly 7, 2010, the date that the Formaldehyde 1795 Standards for Composite Wood Products Act wa s signed into law by the President, and the 1796 established manufactured-by date (1 year after the final regula tions are promulgated), for the 1797 purpose of circumventing the TSCA Title VI emi ssion standards, at an average annual rate ten 20 1798 percent greater than the amount manufactured or purchased duri ng the 2009 calendar year. For 1799*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 80 of 177 [RIN 2070–AJ92] producers of regulated composite wood panels, st ockpiling would be measur ed by square footage 1800 of regulated composite wood panels produced. Fo r importers and fabricators of finished goods 1801 containing regulated composite wood products, st ockpiling would be measured by the square 1802 footage of regulated composite w ood panels purchased to be inco rporated into finished goods. 1803 In either case, entities that can demonstrate that they have a greater than ten 20 percent increase 1804 in purchasing or production of regulated compos ite wood panels for some reason other than 1805 circumventing the emissions standards would not be deemed to be stockpiling. Other reasons 1806 may include an immediate increase in custom er demand or sales, or a planned business 1807 expansion. EPA requests comment on whether the stockpiling provisions should apply to 1808 entities that were not in existence at the beginning of calendar year 2009. 1809 EPA specifically requests comment on whethe r it is appropriate to set the proposed 1810 manufactured-by date at the date 1 year after the final impl ementing regulations are promulgated. 1811 EPA requests comment on alternate dates, and th e rationale, including any available information 1812 and data, for selecting another date. EPA is al so interested in how different manufactured-by 1813 dates would affect panel producer s and fabricators of products th at are not regu lated under the 1814 CARB ATCM, but would be regulated under TSCA Title VI. EPA recognizes that increased 1815 production during the period after th e statute was enacted may very well be due to the economic 1816 recovery and not to a desire on the part of panel producers, importers, and fabricators to 1817 circumvent the emission standards. EPA requests comment on the proposed stockpiling 1818 definition, including information and data fo r alternate baseline periods, rates, and 1819

measurements. EPA also requests comment on any data th at might be available from which to 1820 derive an appropriate rate for determining potential stockpiling. 1821 J. Import Certification 1822*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 81 of 177 [RIN 2070–AJ92] TSCA Title VI directs EPA, in coordination with U.S. Customs and Border Protection 1823 (CBP) and other appropriate Federal departme nts and agencies, to revise regulations 1824 promulgated pursuant to TSCA § 13 as necessa ry to ensure compliance. The TSCA § 13 1825 regulations, promulgated by CBP, require importers to certify that shipments of chemical 1826 substances and mixtures are in compliance with TSCA or not subject to TSCA. EPA believes 1827 that most, if not all, products subject to TSCA Title VI would be considered articles. Articles, 1828 defined in 19 CFR § 12.120(a), are generally fo rmed to specific shapes or designs during 1829 manufacture and have end use func tions related to their shape or design. Articles are generally 1830 exempt from the TSCA § 13 certification requi rements, but the regulations at 19 CFR § 1831 12.121(b) recognize that EPA has the authority to, by regulation or order, make the requirements 1832 applicable to articles. 1833 EPA is proposing to specifically require TSCA § 13 import certification for composite 1834 wood products that are articles. TSCA § 13 im port certification is a valuable compliance 1835 monitoring tool, and import certification for articl es subject to TSCA Title VI would also serve 1836 as an important reminder of the TSCA Title VI requirements to the importer. The certification 1837 requirement would apply to imports of hard wood plywood, particleboard, and medium-density 1838 fiberboard panels, as well as finished goods containing such materials. Persons importing 1839 specifically-exempted products, su ch as structural or curved plywood, and finished goods 1840 incorporating such produc ts, would not be required to certify. 1841 EPA generally believes that the existing im port certification regulat ions, along with the 1842 specific labeling and recordkeepi ng requirements for composite w ood products discussed in Unit 1843 III.H., are sufficient to ensure compliance with TSCA Title VI. However, EPA has begun 1844 consultations with CBP on the TSCA § 13 import regulations to determine whether revisions are 1845*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 82 of 177 [RIN 2070–AJ92] warranted. 1846 K. Enforcement. 1847 The failure to comply with any provis ion of TSCA Title VI, or the regulations 1848 implementing TSCA Title VI, is a prohibite d act under TSCA section 15. Any person who 1849 commits a prohibited act under TSCA section 15 can be held liable for civil and criminal 1850 penalties. 1851 L. Report to Congress. 1852 Section 3 of the Formaldehyde Standard s for Composite Wood Products Act requires 1853 EPA to report to Congress on an annual basi s beginning in July 2011 and continuing through 1854 2014. These reports must describe the status of th e measures carried out or planned to be carried 1855 out pursuant to TSCA Title VI and the extent to which relevant industries have achieved 1856 compliance with the requirements of TSCA Title VI. The statute directs EPA to promulgate 1857 final implementing regulations by January 1, 2013. EPA is proposing to make the manufactured1858 by date 1 year after the final rule is promul gated, which would mean composite wood products 1859 manufactured through 1 year after promulgation would not be subjec t to the emission standards. 1860 EPA requests comment on how data on industry compliance could or should be obtained, and 1861 whether a reporting requirement woul d best accomplish this goal. 1862 M. HUD’s Manufactured Housing Program 1863 Under the authority of the National Manuf actured Housing Construction and Safety 1864 Standards Act of 1974, 42 U.S.C. 5401 et se q., HUD regulates the construction of all 1865 manufactured (mobile) homes built in the Un ited States. The HUD standards established 1866 pursuant to the 1974 Act cover many aspects of manufactured home construction, including body 1867 and frame requirements, thermal protection, plumbing, electrical, a nd fire safety. ( See 24 C.F.R. 1868*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 83 of 177 [RIN 2070–AJ92] Parts 3280 and 3282) HUD oversees the enforcement of the construction st andards through third 1869 party inspection agencies and State governments. 1870 The HUD standards for manufactured housi ng include specific formaldehyde emission 1871 limits for plywood and particleboar d materials installed in manuf actured housing. In contrast, 1872 TSCA Title VI covers only hardwood plywood, a subset of plywood. In addition, TSCA Title 1873 VI also covers MDF, which is not covered by the current HUD standards. The HUD emission 1874 limits apply to any plywood or particleboard that is bonded with a resin system. In addition, 1875 HUD’s limits also apply to plywood or particlebo ard that is coated with a surface finish 1876 containing formaldehyde. HUD’s current formalde hyde emission limits are 0.2 parts per million 1877 (ppm) for plywood and 0.3 ppm for particleboard, as measured by ASTM E-1333-96 (Ref. 28). 1878 These emission limits are higher than those es tablished by the Formaldehyde Standards for 1879 Composite Wood Products Act of 2010, but Secti on 4 of the 2010 Act directs HUD to update its 1880 regulations to ensure that the regulations reflect the standard s established by section 601 of 1881
TSCA. 1882 EPA is requesting comment on how best to harmonize EPA’s regulatory program under 1883 TSCA Title VI with HUD’s manufactured homes program. In particular, the focus of TSCA 1884 Title VI, with its emphasis on composite wood product panel producers a nd product certification, 1885 is somewhat different from the focus of th e National Manufactured H ousing Construction and 1886 Safety Standards Act of 1974 on manufactured ho me producers and consumer protection. In 1887 view of the differences in statutory authoritie s provided to EPA and HUD, are there additional 1888 provisions that EPA should consid er or other actions that EPA and HUD should take to ensure 1889 that their respective programs are complementary? 1890 IV. References 1891*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 84 of 177 [RIN 2070–AJ92] As indicated under ADDRESSES, a docket has been established for this rulemaking 1892 under docket ID number EPA-HQ-OPPT- 2011

- 0380 2012-0018 . The following is a listing of the 1893 documents that are specifically referenced in this proposed rule. The docket includes these 1894 documents and other information considered by EPA, including documents that are referenced 1895 within the documents that are included in the docket, even if the referenced document is not 1896 physically located in the docket. For assistance in locating these other docu ments, please consult 1897 the technical contact listed under FOR FURTHER INFORMATION CONTACT. 1898 1. US Environmental Protection Agency (EPA ). Formaldehyde; Third-Party Certification 1899 Framework for the Formaldehyde Standa rds for Composite Wood Products Rule. Federal 1900 Register . XX FR XXXXX (XXXX). 1901 2. California Environmental Protection Agen cy Air Resources Board. Airborne Toxic 1902 Control Measure to Reduce Formaldehyde Emi ssions from Composite Wood Products. Final 1903 Regulation Order. April 2008. 1904 http://www.arb.ca.gov/regact/2007/compwood07/compwood07.htm 1905 3. Agency for Toxic Substances and Dis ease Registry (ATSDR). 1999. Toxicological 1906 Profile for Formaldehyde and 2010 Addendum to the Profile. Atlanta, GA: U.S. Department of 1907 Health and Human Services, Public Health Service. 1908 4. National Toxicology Program, U. S. Department of Health and Human Services (HHS), 1909 12th Report on Carcinogens, June 10, 2011. 1910 5. USEPA Office of Research and Development (ORD). Form aldehyde. Integrated Risk 1911 Information System (IRIS). 1991. ht tp:// www.epa.gov/iris/subst/0419.htm. 1912 6. USEPA Office of Air and Radiation ( OAR). National Emission Standards for 1913 Hazardous Air Pollutants: Plywood and Compos ite Wood Products; List of Hazardous Air 1914*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 85 of 177 [RIN 2070–AJ92] Pollutants, Lesser Quantity Designations , Source Category List; Final Rule. Federal Register 1915 (71 FR 8341, February 16, 2006) (FRL–8028–9) . http://www.epa.gov/ttn/atw/plypart/ 1916 fr16fe06.pdf. 1917 7. USEPA, ORD. Memorandum from Pe ter Preuss to Steve Page entitled 1918 “Recommendation for Formaldehyde Inhalation Cancer Risk Values” (January 22, 2010). 1919 8. USEPA, ORD. IRIS Toxicological Revi ew of Formaldehyde-Inhalation Assessment 1920 (2010 External Review Draft). 1921 http://cfpub.epa.gov/ncea/iris_dr afts/recordisplay .cfm?deid=223614

. 1922
9. National Research Council of the National Academy of Sciences ( NAS NRC ). Review 1923 of the Environmental Protection Agency's Dr aft IRIS Assessment of Formaldehyde (2011). 1924 http://www.nap.edu/cata log.php?record_id=13142

. 1925
10. USEPA Approach Document (2011 Approach to Assessing Non-cancer Health Effects 1926 from Formaldehyde and Benefits from Reducing Non-cancer Health Eff ects as a Result of 1927 Implementing Formaldehyde Emission Lim its for Composite Wood Products (2013 ). 1928 11. USEPA. Formaldehyde Emissions from Composite Wood Products; Disposition of 1929 TSCA Section 21 Petition; Notice. Fede ral Register (73 FR 36504, June 27, 2008). 1930 12. American National Standards Institu te (ANSI)/Hardwood Plywood and Veneer 1931 Association (HPVA). American National St andard for Hardwood and Decorative Plywood, 1932 ANSI/HPVA HP-1-2009. 1933 13. US Department of Commerce (DOC), Nati onal Institute of Standards and Technology 1934 (NIST), Technology Administration. Voluntary Product Standard PS-1- 07 (2007), Structural 1935 Plywood. 1936 14. USDOC, NIST. Voluntary Product Standa rd PS-2-04 (2004), Performance Standard 1937*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 86 of 177 [RIN 2070–AJ92] for Wood-Based Structural-Use Panels. 1938 15. USEPA. Report of the Small Business Advocacy Review Panel on EPA’s Planned 1939 Proposed Rule Implementing the Formaldehyde Standards for Composite Wood Products Act 1940 (TSCA Title VI) (Apr. 4, 2011). 1941 16. Composite Panel Association (CPA). VOC Emission Barrier Effects of Laminates, 1942 Overlays and Coatings for Particleboard, Medi um Density Fiberboard (MDF) and Hardboard 1943 (2003), available at 1944 http://www.pbmdf.com/cpa30/files/cc LibraryFiles/Filename/000000000738/TB%20VOC.pdf

. 1945 17. HPVA. Comments of the Hardwood Pl ywood and Veneer Association (HPVA) 1946 Submitted to the Environmental Protection Agen cy (EPA) on the Advanced Notice of Proposed 1947 Rulemaking (ANPR) for Formaldehyde from Certain Wood Products (March 19, 2009). 1948 18. ANSI. American National Standard for Particleboard A208.1–2009. 1949 19. ANSI. American National Standard for Medium Density Fiberboard (MDF) for 1950 Interior Applications, ANSI A208.2–2 2009. 1951 20. ANSI. American National Standard, Basic Hardboard, ANSI A135.4 2004. 1952 21. ANSI. American National Standard, Pr efinished Hardboard Paneling, ANSI A135.5 1953
2004. 1954 22. ANSI. American National Standar d, Hardboard Siding, ANSI A135.6 2006. 1955
23. ANSI. American National Standard, Basic Hardboard, ANSI A135.4-2012. 1956 24. ANSI. American National Standard, Pr efinished Hardboard Paneling, ANSI A135.5- 1957
2012. 1958 25. ANSI. American National Standard, Engineered Wood Siding, ANSI A135.6-2012. 1959
26. Kelly, T. I., D. L. Smith, J. Satola. Em ission Rates of Formaldehyde from Materials 1960*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 87 of 177 [RIN 2070–AJ92] and Consumer Products Found in California Home s. Environmental Science & Technology Vol. 1961 33: 81-88 (1999). 1962
24 27 . Georgia Pacific LLC. Letter (August 15, 2011). 1963
25 28 . ASTM International. ASTM E-1333-96, St andard Test Method for Determining 1964 Formaldehyde Concentrations in Air and Emi ssion Rates from Wood Products Using a Large 1965 Chamber. 1966
26 29 . ASTM International. ASTM D-6007-02 (2008), Standard Test Method for 1967 Determining Formaldehyde Concentrations in Air from Wood Products Using a Small-Scale 1968 Chamber. 1969
27 30 . ASTM International. ASTM D 5582-00 (2006), Standard Test Method for 1970 Determining Formaldehyde Levels from Wood Products Using a Desiccator. 1971
28 31 . ASTM International. ASTM E-1333-10, St andard Test Method for Determining 1972 Formaldehyde Concentrations in Air and Emi ssion Rates from Wood Products Using a Large 1973 Chamber. 1974
29 32 . CEN, European Committee for Standa rdization. EN 717- 2 (1995), Wood-based 1975 panels. Determination of formaldehyde releas e-Formaldehyde release by the gas analysis 1976 method, English Version. 1977 33. Huber, C.W., Anderson, W.H., Vieira, J. W., and Liles, W.T., The Dynamic 1978 Microchamber Computer Integrated Formaldehyde Test System: User Manual, revised version 1979 (March 2007); available at www.gp-dmc.com 30. Dynamic Micro Chamber method. 1980
31

. 1981
34 . CEN, European Committee for Standardi zation. EN 120 (1992), Wood based panels. 1982 Determination of formaldehyde content-Extrac tion method called the perforator method, English 1983*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 88 of 177 [RIN 2070–AJ92] Version. 1984
32 35 . Japanese Standards Association, Japane se Industrial Standards. JIS A 1460 (2001), 1985 Building boards determination of Formaldehyde emission-Desiccator method, English Version. 1986
33 36 . Composite Panel Association, Form aldehyde Grademark Program Quality 1987 Assurance Manual (January 1, 2007). 1988 34. CARB Supplemental Analysis. 1989
35 37. CARB. Supplemental Analysis Supporting the Test for Demonstrating Equivalence 1990 between Primary and Secondary Methods for Measuring Formaldehyde Emissions from 1991 Composite Wood Produ cts (January 2008). 1992
38 . CARB. Third Party Certification Guidelin e: Establishing a Correlation with an 1993 Acceptable Correlation Coefficient (“r” Value), Guideline No. 10-001 (June 8, 2010). 1994
36 39. Myers, G.E. The effects of temperatur e and humidity on formaldehyde emission 1995 from UF-bonded boards: a literature cr itique. Forest Prod. J. 35(9):20-31 (1985). 1996
40 . Frihart, C.R., Wescott, J.M., Birkela nd, M. J., and Gonner, K.M. “Formaldehyde 1997 Emissions from ULEF- and NAF-Bonded Comme rcial Hardwood Plywood as Influenced by 1998 Temperature and Relative Humidity.” Proceedings of the International Convention of Society of 1999 Wood Science and Technology and United Nations Economic Commission for Europe—Timber 2000 Committee, October 11-14, 2010, Geneva, Switzerland. 2001 http://www.fpl.fs.fed.us/documnts/pdf2010/fpl_2010_frihart005.pdf

. 2002
37 41. Riedlinger, D., Martin, P., and Ho lloway, T. Particleboard Formaldehyde 2003 Emissions and Decay under Elevated Temperat ure and Humidity Conditions, study conducted 2004 for Arclin, (March 28, 2012). 2005 42. USEPA. Measuring Formaldehyde Em issions from Low Emitting Hardwood 2006*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 89 of 177 [RIN 2070–AJ92] Plywood Panels under Different Conditions of Temperature and Relative Humidity (March 2007 2013). 2008 43. CARB. Composite Wood Produ cts ATCM Frequently Asked Questions (Version 6 – 2009 August, 2012). 2010
44 . CARB. Composite Wood Pr oducts Regulation Advisory: 10-01, Extension of Sell2011 Through Date for Distributors, Fa bricators, and Retailers of Pr e-Phase 1 Finished Goods (July 2012 2010). 2013
38 45 . CARB. Composite Wood Products Regula tion Advisory: 11-01, Extension of Sell2014 Through Dates for Distributors, Importers, Fabr icators, and Retailers of Finished Goods 2015 Containing Phase 1 Hardwood Plywood - Veneer Core and Distributo rs of Phase 1 Particleboard 2016 and Medium Density Fiberboard Panels (May 2011). 2017
39 46 . USEPA. Economic Analysis of the Formaldehyde Standards for Composite Wood 2018 Products Act Implementing Regulations Proposed Rule (Economic Analysis) ( February 2019
2012 April 2013 ). 2020
40 47 . Hanrahan, L. P., K. A. Dally, H. A. Anderson, M. S. Kanarek and J. Rankin. 2021 Formaldehyde vapor in mobile homes: a cross sec tional survey of concen trations and irritant 2022 effects. Am. J. Public Health. 74: 1026-1027 (1984). 2023
41. McGwin, 48. Neghab, M., A. Soltanzadeh, and A. Choobineh. Respiratory morbidity 2024 induced by occupational inhalation exposure to formaldehyde. Industrial Health, 49(1), 89-94 2025 (2011). 2026 49. Herbert, F.A., P.A. Hessel, L.S. Melenka , K. Yoshida, and M. Nakaza. Respiratory 2027 consequences of exposure to wood dust and fo rmaldehyde of workers manufacturing oriented 2028 strand board. Arch. Environ. Health 49(6):465–470 (1994). 2029*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 90 of 177 [RIN 2070–AJ92] 50. Malaka, T., and A.M. Kodama. Respiratory health of plywood workers 2030 occupationally exposed to formaldehyde . Arch. Environ. Health 45:288–294 (1990). 2031 51. Alexandersson, R., and G ., . Hedenstierna. Pulmonary function in wood workers 2032 exposed to formaldehyde: A prospective st udy. Arch. Environ. Health 44:5–11 (1989). 2033 52. Horvath, E, Jr., J. Lienert Anderson, W.E. Pierce, L. Hanrahan, and J. I. Kennedy, Jr. 2034 Formaldehyde D. Wendlick. Effects of formaldehyde on the mucous membranes and lungs: A 2035 study of an industrial population. JAMA 259:701–707 (1988). 2036 53. Holmström, M., and B. Wilhelmsson. Re spiratory symptoms and pathophysiological 2037 effects of occupational exposure to formaldehyde and wood dust. Scand J Work Environ Health 2038
14:306

− 311 (1988). 2039 54. Alexandersson, R., G. Hedensti erna, and B. Kolmodin-Hedman. Exposure and 2040 Asthma in Children: A Systematic Review

. Environmental Health Perspectives . 118 : 313

- 317 2041 (March 2010 to formaldehyde effects on pulmonary f unction. Arch. Environ. Health 37:279–284 2042 (1982 ). 2043
42 55. Garrett, M.H., M.A. Hooper, B.M. Hooper, P.R. Rayment, and M.J. Abramson. 2044 Increased risk of allergy in children due to formaldehyde exposure in homes. Allergy 34:330– 2045 337 (1999). 2046 56. Krzyzanowski, M. J.J. Quackenboss, and M.D. Lebowitz. Chronic respiratory effects 2047 of indoor formaldehyde exposure. Environ. Res. 52:117–125 (1990). 2048
57 . Taskinen, H. K., P. Kyyronen, M. Sallme n, S. V. Virtanen, T. A. Liuldwnen, O. 2049 Huida, M. L. Lindbohm and A. Anttila. Re duced Fertility Among Female Wood Workers 2050 Exposed to Formaldehyde. American Journal of Industrial Medicine

. 36: 202-221 (1999). 2051
43 58. Taskinen, H. K., P. Kyyronen, K. Hemmi nki, M. Holkkala, K. Lajunen, and M. L. 2052*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 91 of 177 [RIN 2070–AJ92] Lindbohm. Laboratory Work and Pr egnancy Outcome. J. Occup. Med. 36 (3): 311-319 (1994). 2053 59. John, E.M., D.A. Savitz, and C.M. Shy. Spontaneous Abortions among 2054 Cosmetologists. Epidemiology 5 (2): 147-55 (1994). 2055
60 . USEPA. Information Collection Reque st (ICR) for the Formaldehyde Emission 2056 Standards for Composite Wood Products Act Impl ementing Regulations (Proposed Rule). EPA 2057 ICR No. 2446.01 and OM B No. 2070-[NEW]. 2058
44 61 . USEPA. Initial Regulatory Flexibility Analysis for Formaldehyde Emission 2059 Standards for Composite Wood Products; Proposed Rule ( February 2012 April 2013 ). 2060
45 62 . USEPA. Unfunded Mandates Reform Ac t Statement. Formaldehyde Emission 2061 Standards for Composite Wood Products; Proposed Rule ( February 2012 April 2013 ). 2062 V. Statutory and Executive Order Reviews 2063 A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: 2064 Improving Regulation and Regulatory Review 2065 2066 Under section 3(f)(1) of Executive Orde r 12866 (58 FR 51735, October 4, 1993), this 2067 action is an "economically “ significant regulatory action” because it is likely to have an an nual 2068 effect on the economy of $100 million raises novel legal or more in the first year of 2069 implementation policy issues . Accordingly, EPA submitted this action to the Office of 2070 Management and Budget (OMB) for review under Executive Orders 12866 and 13563 (76 FR 2071 3821, January 21, 2011) and any changes made in response to OMB recommendations have been 2072 documented in the docket for this action. 2073 EPA has prepared an analysis of the potenti al costs and benefits associated with this 2074 rulemaking. This analysis is contained in the Economic Analysis of the Formaldehyde Standards 2075 for Composite Wood Products Act Implemen ting Regulations Proposed Rule (Economic 2076 Analysis, Ref. 39 46 ) and is briefly summarized here in Table 2 , and in more detail below. 2077*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 92 of 177 [RIN 2070–AJ92] Table 2. Summary of Costs and Benefits of Proposal 2078 Category Description Benefits This proposed rule will reduce exposures to formaldehyde, resulting in benefits from avoided adverse health effects. For the subset of health effects where the results were quantified, the estimated annualized be nefits (due to avoided incidence of asthma, eye irritation , and nasopharyngeal cancer and reduced female fertility ) are $ 184 20 million to $ 278 48 million per year using a 3% discount rate, and $9 1 million to $ 137 23 million per year using a 7% discount rate. There are additional unquantified benefits due to other avoided health effects. Costs The annualized costs of this proposed ru le are estimated at $72 million to $81 million per year using a 3% discount rate, and $8 1 0 million to $89 million per year using a 7% discount rate. Effects on State, Local, and Tribal Governments Government entities are not expected to be subject to the rule’s requirements, which apply to entities that manufacture, fabricate, distribute, or sell composite wood products. The rule does not have a significant intergov ernmental mandate, significant or unique effect on small governments, or have Federalism implications. Small Entity Impacts This rule would impact nearly 879,000 small businesses: over 851,000 have costs impacts less than 1% of revenues, over 23,000 firms have impacts between 1% and 3%, and over 4,000 firms have impacts greater than 3% of revenues. Most firms with impacts over 1% have annualized costs of less than $250 per year. Environmental Justice and Protection of Children This rule increases the level of environm ental protection for all affected populations without having any disproportionately high and adverse human health or environmental effects on any population, including any minority or low-income population or children. 2079
1. Entities subject to the rule . EPA analyzed the effect of this proposal on panel 2080 producers, fabricators, wholesalers ( i.e. , distributors and importers) , and retailers. Due to the 2081 similarities between this propos al and the CARB ATCM, the incr emental costs and benefits of 2082 this proposal are determined in part by the degr ee to which firms are already complying with the 2083 ATCM. So the following discussion of the numbe r of entities subject to the TSCA Title VI rule 2084 includes an estimate of baseline compliance with the CARB ATCM. These estimates are 2085 displayed in Table 3. 2086 Mills making hardwood plywood, MDF, or partic leboard panels that would be classified 2087 as a composite wood products under the CARB AT CM are referred to here as stock panel 2088 producers. Thus, stock panel producers do not include facilitie s that only make products 2089 exempted from the CARB ATCM (and that are statutorily excluded from the TSCA Title VI 2090 rule) such as curved plywood, military specifi ed plywood, structural plywood, and wood-based 2091 structural-use panels. There are approximately 90 stock panel mills in the U.S., operated by 54 2092 firms. This count of stock panel producers ex cludes firms making laminated products that are 2093*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 93 of 177 [RIN 2070–AJ92] included in the definition of hardwood pl ywood. These laminated product producers are 2094 discussed separately below. 2095 A total of 79 stock panel mills have been certified as meeting the CARB Phase 2 2096 standards for at least one of their composite wood products. (The Phase 2 standards are 2097 equivalent to the emissions standards in this proposal.) The CARB certified mills are 2098 responsible for virtually all the U.S. pr oduction volume of composite wood products. 2099 Approximately 99.6% of stock hardwood plywood produ ced in the U.S. is certified as meeting 2100 the CARB Phase 2 emissions standard, as is 100% of the MDF production and 98% of the 2101 particleboard production. All of these mills would incur costs for the time spent on rule 2102 familiarization under the TSCA Title VI program . Some of these mills may also incur costs to 2103 change raw materials and production processes if they switch from a ULEF certification under 2104 the CARB ATCM to a NAF certification under (i.e., becoming familiar with the TSCA Title 2105
VI requirements of the rule

. ). 2106 There are 16 U.S. stock panel mills making at least one product that is not certified as 2107 meeting the CARB Phase 2 standards. (Some of the 90 stock panel mills make both product 2108 lines that are certified under the CARB ATCM as well as product lines that are not certified 2109 because they are not intended to be sold in Ca lifornia.) These mills would incur costs for 2110 certification and testing due to th e proposal, and some may incur costs to change raw materials 2111 and production processes in order to meet the em ission standards in this proposal. They would 2112 also incur costs for rule familiarization and labeling. 2113 Approximately 7,000 to 14,000 laminated product producers in the U.S. make products 2114 (such as custom hardwood plywood and architectu ral panels, windows, doors, kitchen cabinets, 2115 furniture, architectural woodwor k and millwork, engineered wood flooring, and other goods) by 2116*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 94 of 177 [RIN 2070–AJ92] affixing veneer to purchased platforms as part of the production process. These laminated 2117 products are regulated as hardwood plywood under this proposal unless they are made using 2118 NAF resins to attach the veneer to compliant and certified platforms, in which case they are 2119 exempted from the definition of hardwood plywood. 2120 The wood products industry commonly uses the term laminates to describe products that 2121 are laminated with materials other than veneer, such as high pressure laminate, thermally fused 2122 paper, vinyl film, decorative foil, or polypropylene film. Such pr oducts are not considered to be 2123 hardwood plywood under this proposal regardless of the type of resin used. So firms making 2124 these products are considered fa bricators (discussed below), a nd are not counted as laminated 2125 product producers. 2126 The estimate of 7,000 to 14,000 laminated product producers excludes firms that use 2127 veneer to make products that are exempted from the definition of hardwood plywood because 2128 they do not create pa nels (flat or raised rectangular pieces of composite wood product) during the 2129 production process; the products are made by af fixing veneer to substrates other than 2130 particleboard, MDF, or veneer co re platforms; or the products ar e statutorily exempted by TSCA 2131 Title VI (including products used in boats and aircraft, and products not intended for interior use) 2132 or otherwise do not qualify as regulated hard wood plywood (such as curved plywood, military 2133 specified plywood, and structural plywood). 2134 Since laminated products are not consid ered to be hardwood plywood under the CARB 2135 ATCM, they are not certified or tested for emissions under that rule. But in order to be sold in 2136 California, such products must be made using certified composite wood products as platforms, 2137 and they must comply with the labeling and ch ain of custody requirement s in the CARB ATCM. 2138 Nationally, 2,700 to 4,000 of these laminated product producers are assumed to be using 2139*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 95 of 177 [RIN 2070–AJ92] formaldehyde-based resins. It is generally le ss expensive for these firms to switch to a NAF 2140 resin than to pay for the certifi cation and product testing required for panel producers under this 2141 proposal. EPA believes that nearly all lamina ted product producers using formaldehyde-based 2142 resins to attach wood or woody gr ass veneer to compliant and certified platforms will switch to 2143 NAF resins, in order to qualify for the exemp tion from the definition of hardwood plywood in 2144 this proposal. EPA assumes that only about 150 to 300 U.S. laminated product producers will 2145 continue using formaldehyde-based resins, and thus will need to certify and test their products as 2146 a result of this proposal. 2147 There are approximately 80,000 fabricators in the U.S. making composite wood products 2148 into component parts or finished goods , including the 7,000 to 14,000 laminated product 2149 producers. The other 66,000 to 73,000 fabricator s use composite wood products to make goods 2150 such as architectural components, cabinets, and furniture, without affixing veneer themselves. 2151 Under the CARB ATCM, fabricated products sold in California must be made using certified 2152 composite wood products, and they must comply with the ATCM’s labeling and chain of 2153 custody requirements. Nationwide, approximate ly 32,000 fabricators (including some laminated 2154 product producers) are estimated to comply with the labeling and chain of custody requirements 2155 in the CARB ATCM because their products may be sold in California. Firms that sell any 2156 products in California typically follow the CARB ATCM’s requireme nts for all of their products, 2157 including products that are sold outside of California. Such firms would still incur rule 2158 familiarization costs due to this proposal. The remaining 48,000 fabricators that do not comply 2159 with the CARB ATCM because they do not sell a ny products in California would incur costs to 2160 comply with the chain of custody requirements in this proposal, as well as rule familiarization 2161

costs. 2162*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 96 of 177 [RIN 2070–AJ92] Approximately 86,000 U.S. distributors (also re ferred to as wholesalers) are estimated to 2163 sell goods containing composite wood products . As many as 24,000 wholesalers may be 2164 importing composite wood panels or component parts or finished goods containing composite 2165 wood products, and are considered manufacturers under TSCA. (This is the number of firms that 2166 may import the goods themselves, not those that only buy and sell goods imported by others.) 2167 Approximately 32,000 of the 86,000 wholesalers have at least one facility in California, and thus 2168 must comply with the labeling and chain of cu stody requirements in the CARB ATCM. Of the 2169 approximately 759,000 retailers in the U.S. th at sell products cont aining composite wood 2170 products, about 101,000 have at least one facility in California and are following the chain of 2171 custody requirements in the CARB ATCM. Agai n, firms that sell any products in California 2172 typically follow the CARB ATCM’s requirements for all of the products they sell, including 2173 products that are sold outside of California. All wholesale and retail fi rms will incur additional 2174 costs for rule familiarization due to the Titl e VI rule. Of the 24,000 wholesalers importing 2175 composite wood products (who are subject to the rule’s recordkeeping requirements for TSCA 2176 manufacturers), about 15,000 do not have any fa cilities in California. Wholesalers that 2177 repackage products may incur additional la beling costs due to this proposal. 2178 Table 3. Number of Entities in the United States Subject to the Rule 2179 Type TSCA Universe Baseline Condition (CARB ATCM Universe) Stock panel producers ( i.e. , manufacturers) 90 mills operated by 54 firms 79 mills have been certified by CARB for at least one product, but 16 mills make at least one product that is not CARB certified. Depending on the product type, 98% to 100% of U.S. production volu me is CARB certified. Laminated product producers ( i.e. , laminators) 7,000 to 14,000 firms Laminators are considered fa bricators under the CARB ATCM. Nationally, 32,000 of the combined group are subject to CARB ATCM requirements. Fabricators 66,000 to 73,000 firms Wholesalers (i.e., distributors) 86,000 firms, of which 24,000 are importers. 32,000 are subject to CARB AT CM requirements, of which 9,000 are importers. Retailers 759,000 firms 101,000 are su bject to CARB ATCM requirements. Total 925,000 firms 2180
2. Options evaluated . Congress directed EPA to cons ider a number of elements for 2181*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 97 of 177 [RIN 2070–AJ92] inclusion in the implementing regulations, and EPA considered various options for addressing 2182 these elements. For many of the provisions, such as the product-inventor y sell-through provision 2183 and the stockpiling prohibition, EPA did not have th e data needed to make quantitative estimates 2184 of the effects of different options. EPA did have sufficient information to analyze several 2185 different options for how laminated products might be included in the definition of hardwood 2186 plywood, for the certification of ULEF products, and for the chain of custody and recordkeeping 2187 required by the rule. The Economic Analysis disc usses emissions standards that are different 2188 from those set in TSCA Title VI. That discussion is simply for informational purposes, and the 2189 breadth of the discussion should not necessarily imply that EPA has corresponding flexibility in 2190 implementing the statute. Among the analytical options based on the formaldehyde emission 2191 standards that are set in Title VI of TSCA, the Economic Analysis includes options to exempt all 2192 laminated products from the definition of hardwood plywood; not exempt any laminated 2193 products from the definition; exempt all laminated products except custom plywood and 2194 architectural panels from the definition; exempt laminated products made by attac hing a wood 2195 veneer to a NAF platform usi ng a NAF resin from the definition; exempt laminated products 2196 made by attaching a wood veneer to a compliant and certified platform using a NAF resin from 2197 the defin ition; and the proposed opti on to exempt laminated p roducts made by attaching a wood 2198 veneer to a compliant and certified platform using a NAF resin from the definition combined 2199 with reduced recordkeeping requirements for firms that do not qualify as manufacturers under 2200 TSCA (i.e., certain distributors and r etailers), and with no requirement for firms to inform their 2201 suppliers that the products supplied must comply with TSCA Title VI. The options EPA 2202 analyzed with emissions standards consistent with TSCA Title VI are displayed in Table 4. 2203 Table 4. Options Analyzed in the Economic Analysis 2204 Option Description Option SE All laminated products are exempt from the definition of hardwood plywood.*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 98 of 177 [RIN 2070–AJ92] Option Description Option SI All laminated products are included in the definition of hardwood plywood. Option SP All laminated products are exempt fr om the definition of ha rdwood plywood except architectural panels and custom plywood. Option SN Laminated products made using NAF resins to attach veneer to platforms certified as NAF are exempt from the def inition of hardwood plywood. Option SC Laminated products made using NAF resins to attach veneer to compliant and certified platforms are exempt from the definition of hardwood plywood. Proposed Option

- Option SCR Laminated products made using NAF resins to attach veneer to compliant and certified platforms are exempt from t he definition of hardwood plywood; reduced recordkeeping requirements for firms t hat do not qualify as manufacturers under TSCA; no requirement to inform suppliers that the products supplied must comply with TSCA Title VI. Option SEUR All laminated products are exempt from t he definition of hardwood plywood; ULEF certification allowed; reduced recordke eping requirements for firms that do not qualify as manufacturers under TSCA; no r equirement to inform suppliers that the products supplied must comply with TSCA Title VI. Option SFCC All laminated products are exempt from t he definition of hardwood plywood; ULEF certification allowed; tested lots may be shipped before test results are available. Proposed Option
– Option SCUR Laminated products made using NAF resins to attach veneer to compliant and certified platforms are exempt from the definition of hardwood plywood; ULEF certification allowed; reduced recordkeeping requirements for firms that do not qualify as manufacturers under TSCA; no requirement to inform suppliers that the products supplied must comply with TSCA Title VI. 2205 2206 3. Benefits . Reductions of formaldehyde emi ssions from composite wood products 2207 benefits individuals who reside, work, or othe rwise spend a substantia l amount of time where 2208 new composite wood products are introduced to an indoor space. The Economic Analysis (Ref. 2209
39 46 ) estimates the benefits of the options ove r a 30 year period for lowering formaldehyde 2210 emissions from composite wood products. 2211 This benefits analysis uses an age-de pendent exposure analysis that includes 2212 formaldehyde exposure from homes, daycare, sc hools, workplace, vehicles, and outdoors. For 2213 each option, there are 3,300 different exposure s cenarios derived from 22 different composite 2214 wood product age/source combinations, 5 structur e types, 5 climate zones, and 6 individual 2215 age/employment status combinations. Changes in exposure are estimated by changing the two 2216 broad categories where a s ubstantial amount of new composite wood products might be 2217 introduced: new home construction and major re novations that include kitchen remodeling. 2218 Changes in the risk of the adve rse health outcomes associated with the changes in exposure are 2219*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 99 of 177 [RIN 2070–AJ92] estimated for nasopharyngeal cancer and three non

- cancer health effects: sensory irritation, 2220 asthma incidence, and female reproductive toxicity ( i.e. , reduced fertility). sensory irritation. 2221 Table 5 displays the benefits for the options described in Table 4. 2222 The total annualized quantified benefits of the propos ed option are between $ 184 20 2223 million and $ 278 48 million per year (in 2010 dollars) using a 3% discount rate, and between 2224 $ 91 9 million and $ 137 23 million per year using a 7% discount rate. Using a 3% discount rate, 2225 about 85% The majority of the total quantified benefits are attribut able to reductions in asthma 2226 risk and about 14% are attr ibutable to reductions in cancer risk. Only about 2% of the total 2227 benefits are attributable to avoiding eye irritati on and reduced fertility. The benefits under the 2228 proposed option (Option SCR SCUR ) are less than 4 5 % lower those of the most protective option 2229 (Option SN). The most protective proposed option (Option SN) has benefits that are less than 2230
20 14 % larger than the options that exclude laminated produ cts from the definition of hardwood 2231 plywood (Options SE, SEUR, and SFCC). 2232 There are additional unquantified benefits for all of the least protective option (Option 2233 SE). options from respiratory and ot her avoided health effects. While EPA has not valued these 2234 avoided health effects in this pr oposal, EPA believes that the eff ects could be substantial and has 2235 represented their inclusion in the tabl e below using the letter indicator “B”. 2236
2237 Table 5. Summary of the Monetized Benefits (millions 2010$) 2238 Summary of the Monetized Benefits (millions 2010$) Regulatory

Option Benefit Category Individuals Affected Annually(thousands) Annual Cases Avoided Annualized Benefits ($ million) 3% Discount Rate 7% Discount Rate
Option SE Cancer 106,057 9 to 21 $17 to $38 $8 to $17 Eye Irritation 106,057 22,133 to 170,214 $1 to $4 $0 to $4 Asthma 17,802 to 24,270 2,469 to 3,416 $143 to $202 $71 to $99 Fertility 1,352 1,501 $1 $1*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 100 of 177 [RIN 2070–AJ92] Total Benefits $162 to $245 $80 to $121 Option SI Same as Option SCR Option SP Not estimated

Option SN Cancer 106,057 11 to 25 $20 to $45 $9 to $20 Eye Irritation 106,057 24,154 to 198,950 $1 to $5 $1 to $4 Asthma 17,802 to 24,270 2,915 to 4,019 $169 to $238 $84 to $117 Fertility 1,352 1,765 $2 $2 Total Benefits $192 to $289 $95 to $143 Option SC Same as Option SCR
Proposed Option

- Option SCR Cancer 106,057 10 to 24 $20 to $43 $9 to $19 Eye Irritation 106,057 23,650 to 191,590 $1 to $5 $1 to $4 Asthma 17,802 to 24,270 2,799 to 3,864 $162 to $229 $81 to $113 Fertility 1,352 1,696 $2 $1 Total Benefits $184 to $278 $91 to $137 The number of individuals affect ed represents individuals of all ages for na sopharyngeal cancer and eye irritation; children ages 6 to 17 and ages 2 to 17 for asthma; and women ages 20 to 40 for reduced fertility. 2239

Regulatory Option Benefit Category Annual Cases Avoided Annualized Benefits ($ million) 3% Discount Rate 7% Discount Rate
Options SE, SEUR, and SFCC Cancer 9 to 21 $17 to $38 $8 to $17 Eye Irritation 22,133 to 170,214 $1 to $4 $1 to $4 Total Benefits $18 to $42 + B $8 to $20 + B Option SP Not estimated
Option SN Cancer 11 to 25 $20 to $45 $9 to $20 Eye Irritation 24,154 to 198,950 $1 to $5 $1 to $5 Total Benefits $21 to $50 + B $10 to $24 + B Options SI, SC, SCR, and SCUR (Proposed Option) Cancer 10 to 24 $20 to $43 $9 to $19 Eye Irritation 23,650 to 191,590 $1 to $5 $1 to $4 Total Benefits $20 to $48 + B $9 to $23 + B Totals may not add due to rounding. ”B” represents the unqua ntified health benefits. 2240 2241 Formaldehyde is classified as a known hu man carcinogen by the National Toxicology 2242 Program, based on evidence in humans and animals (Ref. 4). This analysis uses the EPA’s 1991 2243 IRIS Inhalation Unit Risk factor of 1.3×10 -5 cancer cases per μ g/m 3 of formaldehyde. In June 2244 2010, EPA released a draft IRIS Toxicological Review of Formaldehyde that recommended a 2245 different unit risk factor a nd recommended the use of age-dependent adjustment factors 2246*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 101 of 177 [RIN 2070–AJ92] (ADAFs) to account for age-specific suscep tibility. This draft assessment underwent 2247 independent scientific peer review by the National Research Council of the National Academy of 2248 Sciences ( NAS NRC ). However, given that EPA is currently in the process of revising the IRIS 2249 assessment based on the NAS NRC review and public comments, th e 1991 IRIS value is used to 2250 analyze this proposed rule. 2251 The benefits of a reduction in cancer risk are based on the value of a reduction in the risk 2252 an individual will ultimately die from the cancer (re ferred to as fatal cancer), and a reduction in 2253 the risk an individual will ultimat ely die from something other th an the cancer (referred to as 2254 non-fatal cancer). These two categories reflec t the two possible outcomes for nasopharyngeal 2255 cancer and do not reflect differe nt types of cancer. The number of excess cancer cases was 2256 estimated and then divided into these two categ ories: 44.7% of the cancer risk reductions are 2257 assumed to be reductions in non-fatal cancer risk and 55.3% of the reductions are assumed to be 2258 reductions in fatal cancer (mortality) risk. Th e value of reduced mortality risk is $8.01 per 2259 mortality micro-risk reduction – that is, a redu ction of 1/1,000,000 in the risk of mortality. Non2260 fatal cases of nasopharyngeal cancer were valued using a cost-of-il lness approach. The value of 2261 an avoided case of non-fatal na sopharyngeal cancer was estimated to be the present discounted 2262 value of the stream of expected medical expendit ures and opportunity cost s associated with the 2263 illness from the year of diagnosis, taking into account that the individual ma y die of other causes. 2264 Costs include the cost of diagnos is, initial treatment costs, an d “maintenance” costs in each 2265 subsequent year. The stream of annual costs de pends on the stage of the cancer at diagnosis, the 2266 individual’s age at diagnosis, a nd the individual’s employment st atus each year after diagnosis, 2267 resulting in a value of $0.09 to $0.14 per micro-risk reduction. 2268*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 102 of 177 [RIN 2070–AJ92] The benefits associated with avoiding non-can cer health impacts are described in an EPA 2269 report titled “Approach to Assessing Non-cancer Health Effects from Formaldehyde and 2270 Benefits from Reducing Non-cancer Health Eff ects as a Result of Implementing Formaldehyde 2271 Emission Limits for Composite Wood Products” (Ref. 10). The 2010 draft IRIS assessment 2272 identified seven categories of non-cancer health effects and proposed RfCs based on four effects: 2273 sensory irritation, pulmonary function effects, as thma and allergic sens itization (atopy), and 2274 reproductive toxicity. The NAS NRC supported the derivation of candidate reference 2275 concentrations (RfCs) for each of these four endpoints based on human ep idemiologic data (Ref. 2276 9), but EPA determined there was sufficient info rmation for quantitative concentration-response 2277 modeling for use in EPA’s economic analysis for only three categories of effects : eye irritation, 2278 asthma, and female reproduct ive toxicity . In the 2011 non-cancer approach document, EPA 2279 derived concentration-re sponse functions from preferred studies for these three endpoints and 2280 recommended accompanying unit values for use in the benefits assessment.

. The available data 2281 on pulmonary function effects could not be advanced because it was not possible to link specific 2282 decrements in pulmonary function with specific ec onomic costs and any associated benefits were 2283 not monetized. Likewise, benefits from the redu ction of the other non-ca ncer effects for which 2284 candidate RfCs were not deri ved were also not monetized. EPA later concluded that, at this 2285 time, it only has sufficient information on the re lationship between formaldehyde exposure and 2286 eye irritation to include a valuation estimate in the overall benefits analysis. 2287 Information from two studies reporting se nsory irritation in humans from chronic 2288 formaldehyde inhalation exposures in a residential environment were combined to create the 2289 concentration-response function for eye irritation. The function was based on a power model fit 2290 to the odds ratio of the prevalence of burni ng eyes reported in Figure 1 of Hanrahan et al . (Ref. 2291*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 103 of 177 [RIN 2070–AJ92] 40 47 ). This function was then used with a willin gness to pay to avoid eye irritation of $26 to 2292 calculate the monetized benefits of reduced sensory irritation for all individuals. 2293 The concentration

- response function for asthma incidence was developed based on a 2294

meta

- analysis of formaldehyde

- associated childhood asthma conducted by McGwin et al . (Ref. 2295 41). This meta

- analysis was based on seven peer

- reviewed studies pr oviding quantitative 2296 information on the association between formaldehyde exposure and asthma i n children, with 2297 mean ages in the studies from 2 to 14 years with a range from 6 months to 17 years. The NAS 2298 report (2011) noted that, while Rumchev and coaut hors (2002) interpreted the health outcome in 2299 their study as a diagnosis of asthma, study partici pants of such young ages are now thought to 2300 have been more likely to have actually had lo wer respiratory illnesse s with wheezing of an 2301 infectious etiology, a diagnosis which coul d often have been mislabeled as asthma . The 2302 remaining six studies were used t o develop a pooled random effects odds ratio. The willingness 2303 to pay to avoid chronic asthma was calculated as the net present value of the stream of annual 2304 willingness to pay values to avoid the disease over a lifetime. A range of $35,443 to $66,064 2305

was used to calculate the benefit of avoiding one statistical case of chronic asthma. Combining 2306 the concentration

- response information with the unit cost , incidence rates, and other relevant 2307 terms, the analysis estimates the monetized benefits of avoiding th e development of asthma. The 2308 analysis calculates a lower benefits estimate ba sed on avoiding asthma in children ages 6 through 2309 17, and a higher benefits estimate based on avoiding asthma in children ages 2 through 17 . 2310 The concentration

- response relations hip for female reproductive toxicity is based on a 2311 retrospective cohort study by Taskinen et al . (Ref. 42). Estimates of mean daily exposure to 2312 formaldehyde were based on measurements taken at factories in Finland during the early 1990s. 2313 The concentratio n - response function was estimated by fitting a linear regression to formaldehyde 2314*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 104 of 177 [RIN 2070–AJ92] concentrations and the corresponding fraction of female factory workers aged 20 to 40 who took 2315 longer than 12 months to con ceive. The value of avoided infertility used in the benefits analysis 2316 is estimated using a weighted cost of illness approach based on the costs of treating infertility, 2317 either through medication to stim ulate ovulation, artificial insemina tion, or in vitro fertilization. 2318 This was used to estimate the monet ized benefits of reduced re productive toxicity for women 2319 between the ages of 20 and 40, resulting in an estimate of $1,969 to $5,336 to avoid reduced 2320 fertility. 2321 Formaldehyde exposure is associated with a rang e of respiratory relate d effects. Effects 2322 from repeated exposure in humans include irritati on of the upper respiratory tract, decrements in 2323 pulmonary function, and nasal epithelial lesions such as metaplasia and loss of cilia. Animal 2324 studies suggest that formaldehyde ma y also cause airway inflammation. 2325 In occupational studies of formaldehyde exposur e, lung function defici ts and decreases in 2326 spirometric values (that is, the vo lume and speed of air that is exhaled or inhaled) have been 2327 reported both in preshift versus postshift measurements and as a result of long-term exposures 2328 (Refs. 48-54). Studies of long-term formaldehyde exposure also report increased respiratory 2329 symptoms, such as cough, increased phlegm, chest tightness, and chest colds, in exposed workers 2330 (Refs. 48-51 and 53-54). In addition, some studi es report an association between formaldehyde 2331 exposure in residential settings and respiratory symptoms (Ref. 55) . Furthermore, there are also 2332 studies that report that form aldehyde exposure may increase the prevalence of asthma – 2333 particularly in the young (Ref. 56). Studies on asthma, as well as mechanistic information and 2334 their analyses, were evaluated in EPA’s recent Draft Toxicological Review of Formaldehyde – 2335 Inhalation Assessment through the Integrated Risk Information System (IRIS) Program (Ref. 8). 2336 This draft IRIS assessment was released in June 2010 for public comment and external peer 2337*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 105 of 177 [RIN 2070–AJ92] review by the National Research Council of the National Academ y of Sciences (NRC). The 2338 NRC released their review report in April 2011 (Ref. 9). The NRC suggested EPA should 2339 examine studies relating formaldehyde exposures to asthma, pulmonary function and changes in 2340 pulmonary pathology. EPA is currently revising the draft assessment in response to the NRC 2341 review. 2342 EPA is committed to evaluating alternative approaches to quantifying the benefits 2343 associated with reduced respiratory symptoms such as exacerbation of symptoms among those 2344 who have chronic respiratory diseases, e.g., bronch itis and asthma. For instance, the agency will 2345 explore the extent to which approa ches used to quantify respirator y symptoms in air quality rules 2346 might be applied to residential e xposure to formaldehyde. If a scie ntifically defensible approach 2347 is available by the time the final rule is promulgated, EPA will include such quantification as 2348 part of the benefits analysis. Although uncerta inty remains regarding how best to quantify the 2349 formaldehyde exposure’s effect on respiratory outcomes, EPA c onsiders these effects to be 2350 important non-monetized impacts that contribute to the overall benefits of th is rule, as indicated 2351 by the “+B” in the various ta bles summarizing benefits. 2352 Epidemiologic studies suggest an asso ciation between occupational exposure to 2353 formaldehyde and adverse reproductive outcomes in women, including reduced fertility (Refs. 2354 57-59). EPA does not feel that it has sufficien t information at this time on the relationship 2355 between formaldehyde exposure and reduced ferti lity to include a valuation estimate in the 2356 overall benefits analysis. 2357 There are three reasons w hy the total economic benefits reported above may be 2358 underestimated. First, there are a number of potential heal th effects that are not included in this 2359 analysis. In addition to cancer , the 2010 draft IRIS assessment enumerated potential health 2360*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 106 of 177 [RIN 2070–AJ92] outcomes from formaldehyde exposure including sensory irritation, upper respiratory tract 2361 pathology, pulmonary function effects, asthma and allergic sensiti zation, immune function 2362 effects, neurological and behavi oral toxicity, and developmenta l and reproductive toxicity. 2363 However, The NRC review of the draft IRIS assessme nt was released in April 2011 (Ref. 9), and 2364 EPA is currently revising the draft in response. Monetization of a ny health endpoint identified 2365 requires an estimated concentratio n-response function that can be appropriately linked for use in 2366 the economic analyses. At this time, only three non

- cancer health effects

– sensory irritation , 2367 asthma, and female reproductive toxicity

– have has sufficient data for such quantitative 2368 concentration

- response modeling to quantify the benefits . Second, while the cancer benefits were 2369 evaluated using the unit risk as a reasonable upper bound on the central estimate of risk, the non 2370

cancer sensory irritation benefits were evaluated using a central estimates estimate of the 2371 concentration-response functions function rather than an upper (or lower) bounds bound which 2372 could also underestimate any associated economic benefits. Third, the valuation of some of 2373 these endpoints relies on cost-of-i llness estimates rather than willi ngness to pay. In general, cost 2374 of illness estimates only capture mitigating and indirect costs, omitting averting expenditures and 2375 lost utility associated with pain and suffering, and are, therefore, considered to be underestimates 2376 of economic benefits. 2377
4. Costs . The Economic Analysis estimates the in cremental cost to firms located in the 2378 U.S. of complying with the requirements of the pr oposal compared to the ac tivities that firms are 2379 already undertaking, often in re sponse to the CARB ATCM. The costs of the proposal for the 2380 industries subject to the rule ar e displayed in Tables 6 and 7. 2381 Depending on their baseline compliance with the CARB ATCM, panel producers may 2382 incur costs for third-party certification, testi ng, and changes to raw materials and production 2383*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 107 of 177 [RIN 2070–AJ92] processes where necessary to meet the emissions standards. Panel producers and other regulated 2384 firms may incur costs for labeling, reco rdkeeping and rule familiarization. 2385 Stock panel producers are estimated to incur a total annualized cost of $ 2 1 million per 2386 year under either a 3% or 7% discount rate . Laminated product producers incur a total 2387 annualized cost of $18 million to $32 million per year using a 3% discount rate and $18 million 2388 to $33 million per year using a 7% rate. Of th is, $3 million per year is incurred by firms that 2389 convert to NAF resins in order to qualify fo r the exemption from the definition of hardwood 2390 plywood, $8 million to $ 16 17 million per year is spent on resin changes, testing and certification 2391 by firms that continue to use formaldehyde-bas ed resins and thus do not qualify for the 2392 exemption, and the balance is spent on rule fa miliarization, labeling, an d recordkeeping. The 2393 remaining fabricators incur a tota l annualized cost of $21 million to $26 million per year using a 2394 3% discount rate and $21 million to $27 million per year using a 7% discount rate. Wholesalers 2395 incur total annualized costs of $16 milli on per year under a 3% discount rate and $17 million per 2396 year using a 7% discount rate. Retailers are estimated to in cur total annualized costs of $10 2397 million per year using a 3% discoun t rate and $16 million per year using a 7% discount rate. The 2398 proposal is estimated to result in a total cost of $ 435 434 million to $447 million in the first year. 2399 Annualized costs of the proposal are $72 million to $81 million per year usi ng a 3% discount rate 2400 and $ 81 80 million to $89 million per year using a 7% discount rate. 2401 Given the formaldehyde emissions standards th at are set in Title VI of TSCA, annualized 2402 costs for the other options for laminated products ranged from $ 100 60 million to $293 million 2403 per year using a 3% discount rate, and $ 112 68 million to $311 million per year using a 7% 2404 discount rate . The total costs by option are displayed in Table 8

. 2405 Table 6. Costs of Proposed Option by Industry Type (millions 2010$) 2406*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 108 of 177 [RIN 2070–AJ92] Industry Type First Year Annualized (3%) Annualized (7%) Low High Low High Low High Stock panel producers $ 3 2 $ 3 2 $ 2 1 $ 2 1 $ 2 1 $ 2 1 Laminators $55 $102 $18 $32 $18 $33 Fabricators (excluding laminators) $91 $57 $26 $21 $27 $21 Wholesalers $71 $71 $16 $16 $17 $17 Retailers $215 $215 $10 $10 $16 $16 Total $43 5 4 $447 $72 $81 $8 1 0 $89 Low and high end scenarios reflect the estimated number of laminators and the number of product lines certified per firm, not the low and high costs for each category of entities. 2407
2408*** EO12866 Review Draft – Do Not Cite, Quote or Release During the Review ***Page 109 of 177 [RIN 2070–AJ92]Table 7. Incremental Cost Estimates for Proposed Rule by Type of Entity, Baseline Status, and Activity2409Type ofEntityBaseline Status underCARB ATCMNumber of Mills,Firms, orProductionVolume (msf†)Activities with Incremental CostsEstimatedNumber of Mills,Firms, or ProductionVolume IncurringCostsTotal Cost (million 2010$)First YearSubsequentYearsPanelmanufacturersAll panel manufacturers62 millsBecome familiar with TSCA rule62$0.02- - -On-site daily quality control testing21$0.2$0.02Set-up to label products as TSCA compliant62$0.009- - -Keep additional records62$0.2$0.2Manufacture products notcertified under CARB ATCM16 millsHave products tested and certified by a TPC16$0.4$0.0949,600 msfChanges to raw materials47,300 msf$1.1$1.1Wood veneerlaminatedproductmanufacturersAll laminators7,486 to 13,875 firmsBecome familiar with the TSCA rule7,486 to 13,875$2.2 to $4.1- - -Set-up to label products as TSCA compliant7,486 to 13,875$34.1 to $63.2- - -Laminators defined as hardwoodplywood producers under TSCA150 to 277 firmsHave products tested and certified by a TPC150 to 277$9.3 to $19.6$8.4 to $17.2On-site daily quality control testing150 to 277$1.6 to $3.0$0.1 to $0.2Keep additional records150 to 277$1.4 to $2.5$1.4 to $2.57,248 msfChanges to raw materials2,149 msf$0.06$0.06Laminators defined as fabricatorsunder TSCA7,336 to 13,598 firmsand 355,164 msfChanges to raw materials105,317 msf$3.2$3.2Laminators defined asfabricators; not compliant withCARB ATCM requirements forfabricators7,336 to 13,598 firmsKeep additional records674 to 1249$3.7 to $6.8$3.7 to $6.8Fabricators thatare notlaminatorsAll fabricators that are notlaminators66,103 to 72,492 firmsBecome familiar with the TSCA rule66,103 to 72,492$19.5 to $21.3- - -Set-up to label products as TSCA compliant66,103 to 72,492$16.8 to $45.9- - -Fabricators not compliant withCARB ATCM requirements33,665 to 40,054 firmsKeep additional records3,703 to 4,406$20.3 to $24.1$20.3 to $24.1WholesalersAll wholesalers85,560 firmsBecome familiar with the TSCA rule85,560$31.9- - -If repackaging or replacing an original label,set-up to label products as TSCA compliant855$3.9- - -Wholesalers that import and arenot compliant with CARB ATCM15,045 firmsSet up systems to keep additional records8,576$21.5- - -Keep additional records6,649$13.5$13.5RetailersAll retailers759,048 firmsBecome familiar with the TSCA rule759,048$214.7- - -Total$434 to $447$56 to $65†Production volume is reported in thousands of square feet (msf) of production2410*** EO12866 Review Draft – Do Not Cite, Q uote or Release During the Review ***

Page 110 of 177 [RIN 2070–AJ92] Table 8. Total Costs by Option (millions 2010$) 2411

Option First Year Annualized (3%) Annualized (7%) Low High Low High Low High Option SE $595 $595 $100 $100 $112 $112 Option SI $919 $1,254 $ 19 20 4 $293 $2 0 1 8 $311 Option SP $600 $600 $104 $104 $115 $115 Option SN $6 54 26 $6 89 39 $1 43 28 $1 85 37 $1 54 39 $1 95 48 Option SC $609 $621 $112 $121 $123 $132 Proposed Option

– Option SCR $435 $447 $72 $81 $8 1 0 $89 Option SEUR $420 $420 $60 $60 $68 $68 Option SFCC $594 $594 $100 $100 $111 $111 Proposed Option
– Option SCUR $434 $447 $72 $81 $80 $89 2412
5. Net benefits . Net benefits are the difference between benefits and costs. The net 2413 benefits for the options are disp layed in Tables 9 and 10. The proposal is estimated to result in 2414 quantified net benefits of $103 -$24 million to $206 -$60 million per year using a 3% discount 2415 rate, and $2 million to $ -$ 57 million to -$79 million per year using a 7% discount rate. 2416 Quantified net benefits for the other options for regulating laminated products based on the 2417 formaldehyde emissions standards that are set in Title VI of TSCA range from -$ 109 18 million 2418

to $166 -$273 million per year using a 3% discount rate and -$ 220 48 million to $14 -$302 million 2419
per year
. using a 7% discount rate. There are additio nal unquantified benefits due to respiratory 2420 and other avoided health effects.EPA considers health benefits from avoided health effects to be 2421 potentially important non-monetized impacts that contribute to the overall net benefits of this 2422 rule, and has represented their inclusion in the table below using the letter “B”. 2423 Table 9. Annualized Net Benefits by Option (millions 2010$, 3% discount rate) 2424*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 111 of 177 [RIN 2070–AJ92] Option Costs Benefits Net Benefits Low Estimate High Estimate Lower Estimate Higher Estimate Lower Net Estimate Higher Net Estimate Option SE $100 $100 $ 162 18+B $ 245 42+B $62 ($82)+ B $145 ($58)+ B Option SI $ 194 2 04 $293 $184 $20+B $278 $48+ B - $109 ($273)+ B $84 ($157)+ B Option SP $104 $1 04 Not estimated Not estimated Not estimated Not estimated Option SN $1 43 2 8 $1 85 37 $192 $21+B $289 $50+ B $7 ($116)+ B $146 ($79)+ B Option SC $112 $121 $184 $20+B $278 $48+ B $63 ($101)+ B $166 ($64)+ B Proposed Option

– Option SCR $72 $81 $184 $20+B $278 $48+ B $ 103 ($61)+ B $206 ($24)+ B Option SEUR $60 $60 $18B $42+B ($42)+ B ($18)+ B Option SFCC $100 $100 $18+B $42+B ($82)+ B ($58)+ B Proposed Option – Option SCUR $72 $81 $20+B $48+ B ($60)+ B ($24)+ B “B” represents the unqua ntified health benefits. 2425 Table 10. Annualized Net Benefits by Option (millions 2010$, 7% discount rate) 2426 Option Costs Benefits Net Benefits Low Estimate High Estimate Lower Estimate Higher Estimate Lower Net Estimate Higher Net Estimate Option SE $112 $112 $80 $8+B $121 $20+ B - $31 ($103)+ B $9 ($91)+ B Option SI $218 $311 $91 $9+B $137 $23+ B - $220 ($302)+ B - $71 ($195)+ B Option SP $115 $1 15 Not estimated Not estimated Not estimated Not estimated Option SN $139 $148 $95 $10+B $ 143 $24+ B - $99 ($138)+ B - $11 ($114)+ B Option SC $123 $132 $91 $9+B $137 $23+ B - $41 ($123)+ B $14 ($100)+ B Option SCR $80 $89 $91 $9+B $137 $23+ B $2 ($80)+ B $57 ( $57)+ B Option SEUR $68 $68 $8+B $20+B ($60)+ B ($48)+ B Option SFCC $111 $111 $8+B $20+B ($103)+ B ($91)+ B Proposed Option – Option SCUR $80 $89 $9+ B $23+ B ($79)+ B ($57)+ B “B” represents the unqua ntified health benefits. 2427 Costs exceed quantified benefits by a larger margin for the proposed rule (Option SCUR) 2428 than for Option SEUR, which exempts all lamina ted products from the definition of hardwood 2429 plywood. However, both the relative ranking of the options and the fact that quantified net 2430 benefits are negative for all th e options might change if EPA could quantify additional health 2431 benefits. Furthermore, as explained elsewhere in this proposal, currently available information 2432*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 112 of 177 [RIN 2070–AJ92] indicates that laminated products can exceed the formaldehyde emission standards. Therefore, 2433 on the basis of information currently available to the Agency, EPA has concluded that exempting 2434 all laminated products from the definition of ha rdwood plywood is not consistent with TSCA 2435 Title VI’s statutory mandate that EPA promulgate regulations in a manner that ensures 2436 compliance with the emission standards in TSCA section 601(b)(2). Of the options that are 2437 consistent with the statutory mandate, the proposed rule has the lowest costs as well as the best 2438 balance between costs and quantifie d benefits. After assessing both the costs and the benefits of 2439 the proposal, including the unquantified benefits, EPA has made a reasoned determination that 2440 the benefits of the proposal justify its costs. 2441 To further improve the analysis for the fi nal rule, the Agency is also specifically 2442 interested in supporting informa tion on the following questions rela ted to the data, estimates, and 2443 assumptions used in the Agency’s analysis: 2444

1. 1. What, if any, differences are there in actual formaldehyde emissions levels between 2445 products made domestically and those imported into the U.S.? Are data available characterizing 2446 the differences in emissions between products that are certified unde r the CARB ATCM and 2447 those that are not certified b ecause they are sold in the U.S. outside of California? 2448

2. 2. Is there evidence that products that do not comply with the CARB ATCM are being 2449 sold in California? If so, are there diffe rences in compliance between products made 2450 domestically and those imported in to the U.S.? Is there informa tion available to indicate how the 2451 level of compliance with the TSCA Title VI rule can be expected to differ from compliance with 2452 the CARB ATCM? 2453

3. 3. Did firms located outside of California that sell regulated composite wood products in 2454 California incur different cost s due to the CARB ATCM compared to firms located in 2455*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 113 of 177 [RIN 2070–AJ92] California? If so, what influen ced these differences in costs? How did the differences, if any, 2456 depend on firm type (panel producer , fabricator, dist ributor, or retailer), firm size, complexity of 2457 the supply chain, or other factors? 2458 4. To what extent are w holesalers that do not have a physical location in California 2459 complying with the CARB ATCM’s recordkeepi ng requirements because they sell goods that 2460 may ultimately be sold in California? 2461

. 5. In addition to the Census data that EPA us ed in its analysis, what other information is 2462 available that would allow EPA to better characterize the number of firms in different industries 2463 affected by the rule? 2464
6. For each industry that uses veneer to manufacture products, how many firms make 2465 laminated products sold in the U.S. that could potentially be included in the definition of 2466 hardwood plywood under TSCA Title VI because they m eet all of the following criteria: (a) they 2467 affix a wood or woody grass veneer to the face an d/or back of a purchased platform to produce a 2468 component part used in the cons truction or assembly of a fini shed good; (b) they are applying 2469 veneer to a particleboard, MDF, or veneer-core platform; (c) they are making a product that 2470 qualifies as a panel under the propo sed rule, where a panel is de fined as a flat or raised 2471 rectangular piece of composite wood product; and (d) they are making a product that does not 2472 qualify for one of the statutory exemptions in TSCA Title VI (such as the exemptions for 2473 products intended for use in a new vehicle such as a rail car, boat, or aircraft, or the exemption 2474 for products intended for exterior use)? 2475
4 7 . To what extent are the laminated products described above currently made using an 2476 added formaldehyde resin to affix the veneer to th e platform? To what extent will these products 2477 continue to use added formaldehyde resins after the TSCA Title VI rule is implemented? What 2478*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 114 of 177 [RIN 2070–AJ92] if any process or performance issues will f ace laminated product producers that switch to NAF 2479 resins? 2480
5 8 . To what extent were firms’ customary r ecordkeeping practices generally sufficient to 2481 meet the chain of custody requirements in the CA RB ATCM? For firms that had to modify their 2482 recordkeeping systems or practices to comply with the CARB ATCM, how much additional 2483 effort or cost was required, on a one-time or ongoing basis? How do those costs depend on firm 2484 type (panel producer, fabricator, distributor, or retailer), firm size, complexity of the supply 2485 chain, or other factors? 2486
6. 9. If your firm has a schedule for the retention of records, how long do you retain 2487 records such as purchasing r ecords, invoices, bills of ladi ng, production records, shipping 2488 information, and product testing information? What policies does your firm have for the 2489 retention or destruction of th ese records? In light of your firm’s records retention and 2490 destruction policies or your or dinary business practices, how would the differences between a 2491 two year recordkeeping period, a three year peri od, and a 5 year period a ffect your recordkeeping 2492 cost under TSCA Title VI? What are the key components of your recordkeeping costs (labor, 2493 computer storage, physical storage for paper record s, etc.), and how do these costs change as the 2494 recordkeeping period in creases? Please provi de a detailed response. 2495
10. What costs did fabricator s incur to label their produc ts due to the CARB ATCM? 2496 What factors, such as production volume or the number or complexity of the products, 2497 determined the magnitude of those costs? Were there additional costs due to the CARB labeling 2498 requirement after the first year? If so, what were the costs for, how large were they, and what 2499 factors influenced those costs? How common is it for distributors or reta ilers to repackage or 2500 relabel goods? To what extent do distribu tors or retailers apply labels under the CARB ATCM, 2501*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 115 of 177 [RIN 2070–AJ92] either because they are repackaging goods that we re originally labeled on the packaging instead 2502 of on the individual items, or because they are replacing an original label applied by the panel 2503 producer or fabricator with a label listing a different company name? 2504
7 11 . What data are available on the types a nd quantities of goods containing composite 2505 wood products used within a typical residence? How do these quantities differ by the type of 2506 dwelling (single family attached housing, single family detached housing, multi-family housing, 2507 manufactured housing, etc.)? Are there differences in the typical quantities of composite wood 2508 products used associated with the ra ce or income of the residents? 2509
8 12 . In the absence of a requirement that pa nel producers hold lots selected for testing 2510 until the test results are received, how likely is it that panels would be shipped before the test 2511 results are available? Given the lower fre quency of quality control testing for hardwood 2512 plywood producers (including laminators produced panels defined as hardwood plywood), how 2513 would such a requirement affect their decision ab out whether to perform quality control testing 2514 for formaldehyde emissions in-house or to send the panels to a thir d party for testing? 2515
9 13 . What data are available on the amount of work or leisure tim e patients typically 2516 miss as a result of treatment for nasopharyngeal cancer, including the time recovering from 2517 chemotherapy or radiation? 2518 14. How should EPA quantify the benefits of avoiding respiratory effects related to 2519 formaldehyde exposure? Which symptoms shoul d be valued? How should the results be 2520 presented to reflect the underlyi ng uncertainty in such estimates? 2521 15. How should EPA evaluate and quantify th e benefits of improve d fecundity due to 2522 reductions in formaldehyde exposure? How shou ld the results be presented to reflect the 2523 underlying uncertainty in such estimates? 2524*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 116 of 177 [RIN 2070–AJ92] B. Paperwork Reduction Act (PRA) 2525 The information collection requirements in this proposed rule have been submitted to 2526 OMB for review and approval under the PRA, 44 U.S.C. 3501 et seq . The Information 2527 Collection Request (ICR) document prepared by EPA has been assigned EPA ICR number 2528 2446.01, and the OMB Control No. 2070-[new] (Ref. 43 60 ). 2529 The new information collection activities containe d in this rule are de signed to assist the 2530 Agency in meeting the requirement in Sect ion 601(d) of TSCA that EPA promulgate 2531 implementing regulations in a manner that ensures compliance with the TSCA Title VI emission 2532 standards. The new information collection requirem ents affect firms that sell, supply, offer for 2533 sale, or manufacture (including import) hardw ood plywood, particleboard, MDF, or finished 2534 goods containing these materials in the United States. Although firms have the option of 2535 choosing to engage in the cove red activities, once a firm chooses to do so, the information 2536 collection activities contained in this rule become mandatory for that firm. 2537 The ICR document provides a detailed presenta tion of the estimated burden and costs for 2538 3 years of the program. Burden is defined at 5 CFR 1320.3(b). Since the ru le applies to products 2539 imported into the U.S., the certification, testing, recordkeeping, and reporti ng requirements also 2540 apply to entities outside the U.S. Therefore, the ICR document considers the burden and cost to 2541 both foreign and domestic entities. This is in c ontrast to the Economic Analysis for the proposed 2542 rule (Ref. 39 46 ), where the cost analysis is limited to domestic entities. The ICR document also 2543 accounts for the burdens of baseline reporting and recordkeeping activities in two ways. One 2544 estimates the incremental burden and cost excludi ng all the activities performed to comply with 2545 the CARB ATCM in the baseline, which is consis tent with the cost estimates in the Economic 2546 Analysis. The other estimates the burden and cost of future activities even if those activities 2547*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 117 of 177 [RIN 2070–AJ92] would be performed in the absence of the TSCA Title VI rule ( i.e. , to comply with the CARB 2548 ATCM), which yields higher co st estimates than those in the Economic Analysis. 2549 The ICR document estimates that more th an 990,000 firms are subj ect to the rule’s 2550 reporting and recordkeeping requirements. Of these, nearly 925,000 ar e domestic firms and 2551 approximately 66,000 are foreign firms. Over th e three year period covered by the ICR, the 2552 incremental burden of the rule (excluding burden for ac tivities performed in the baseline) is 2553 estimated to average 5. 9 8 million hours per year. The total annual burden (including burden for 2554 required activities performed in the baseline) is estimated to average 8.0 7.9 million hours per 2555 year. The total burden reflects nearly 1.7 million responses per year over the three years of the 2556 ICR, where the number of responses includes both responses that are submitted to EPA or a third 2557 party as well as recordkeeping activities conduc ted by firms that only maintain records. The 2558 total annual burden equate s to an average of approximately 5 hours per response. 2559 An agency may not conduct or sponsor, a nd a person is not required to respond to an 2560 information collection request unl ess it displays a currently vali d OMB control number, or is 2561 otherwise required to submit the specific inform ation by a statute. The OMB control numbers for 2562 EPA’s regulations codified in Title 40 of the C ode of Federal Regulations, after appearing in the 2563 preamble of the final rule, are further displayed either by publication in the Federal Register or 2564 by other appropriate means, such as on the relate d collection instrument or form, if applicable. 2565 The display of OMB control numbers for certain EPA regulations is consolidated in a list at 40 2566
CFR 9.1. 2567 To comment on the Agency's need for this information, the accuracy of the provided 2568 burden estimates, and any suggested methods for minimizing respondent burden, EPA has 2569 established a public docket for this rule, whic h includes the ICR, under Docket ID number EPA- 2570*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 118 of 177 [RIN 2070–AJ92] HQ-OPPT- 2011

- 0380 2012-0018 . Submit any comments related to the ICR to EPA and OMB. 2571
See ADDRESSES section at the beginning of this notice for where to submit comments to EPA. 2572 Send comments to OMB at the Office of Info rmation and Regulatory Affairs, Office of 2573 Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office 2574 for EPA. Since OMB is required to make a d ecision concerning the ICR between 30 and 60 days 2575 after [Insert date of publication in the Federal Register ], a comment to OMB is best assured of 2576 having its full effect if OMB receives it by [I nsert date 30 days after publication in the Federal 2577 Register ]. The final rule will respond to any OMB or public comments on the information 2578 collection requirements contai ned in this proposal. 2579 C. Regulatory Flexibility Act (RFA) 2580 The RFA, 5 U.S.C. 601 et seq. , generally requires an agen cy to prepare a regulatory 2581 flexibility analysis of any rule subject to notice and comment rulemaking requirements under the 2582 Administrative Procedure Act or any other statute unless the agency certifies that the rule will 2583 not have a significant economic impact on a substantial number of small entities. Small entities 2584 include small businesses, small organizati ons, and small governmental jurisdictions. 2585 Small entities include sma ll businesses, small organizat ions, and small governmental 2586 jurisdictions. For purposes of assessing the impacts of today's proposed rule on small entities, 2587 small entity is defined as: (1) a small business as defined by the Small Business Administration’s 2588 (SBA) regulations at 13 CFR 121.201; (2) a small governmental jurisd iction that is a government 2589 of a city, county, town, school district or spec ial district with a popul ation of less than 50,000; 2590 and (3) a small organization that is any not-for-p rofit enterprise which is independently owned 2591 and operated and is not do minant in its field. 2592 Pursuant to section 603 of the RFA, EPA pr epared an initial re gulatory flexibility 2593*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 119 of 177 [RIN 2070–AJ92] analysis (IRFA) that examines the impact of the proposed rule on small entities along with 2594 regulatory alternatives that c ould reduce that impact (Ref. 44 61 ). The IRFA is available for 2595 review in the docket and is summarized below. 2596 1. Need for the rule . TSCA section 601(d) directs EP A to promulgate regulations to 2597 implement the formaldehyde standards for compos ite wood products described in TSCA section 2598 601(b)(2). EPA is issuing a proposed rule unde r TSCA Title VI to implement the statutory 2599 formaldehyde emission standards for hardw ood plywood, medium-density fiberboard, and 2600 particleboard sold, supplied, offered for sale, or manufactured (including imported) in the United 2601 States. As directed by the st atute, this proposal includes pr ovisions relatin g to, among other 2602 things, laminated products , products made with ultra low-emitting formaldehyde resins , products 2603 made with no-added formaldehyde resins, test ing requirements, product labeling, chain of 2604 custody documentation and other recordkeeping requirements, and product inventory sell2605 through provisions, including a pr oduct stockpiling prohibition. 2606 2. Objectives and legal basis for the rule . The legal basis for the rule is TSCA section 2607 601(d), which provides authority for the Administra tor to “promulgate regulations to implement 2608 the standards required under s ubsection (b) in a manner that ensures compliance with the 2609 emission standards described in subsection (b)(2) .” Therefore, the central objective of the 2610 regulatory provisions of this proposal is to ensure compliance with the TSCA Title VI 2611 formaldehyde emission standards. 2612 3. Description and number of small entities to which the rule will apply . The small 2613 entities potentially affected by the rule are ma nufacturers (including impor ters), fabricators, 2614 distributors, and retail ers of composite wood products. For purposes of assessing the impacts of 2615 the rule on small entities, small entity is defined as: (1) a small business as defined by the Small 2616*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 120 of 177 [RIN 2070–AJ92] Business Administration’s (SBA) regulations at 13 CFR 121.201; (2) a small governmental 2617 jurisdiction that is a government of a city, county, town, school distri ct or special district with a 2618 population of less than 50,000; and (3) a small orga nization that is any not-for-profit enterprise 2619 which is independently owned and operated and is not dominant in its field. EPA estimates that 2620 the rule will affect appr oximately 879,000 small entities. 2621
4
. Projected compliance requirements . This proposal implements the statutory 2622 formaldehyde emission standards for hardw ood plywood, medium-density fiberboard, and 2623 particleboard sold, supplied, offered for sale, or manufactured (including imported) in the United 2624 States. As directed by the st atute, this proposal includes pr ovisions relatin g to, among other 2625 things, laminated products , products made with ultra low-emitting formaldehyde resins , products 2626 made with no-added formaldehyde resins, test ing requirements, product labeling, chain of 2627 custody documentation and other recordkeeping requirements, and product inventory sell2628 through provisions, including a pr oduct stockpiling prohibition. Th is proposal would establish 2629 requirements for manufacturers (including importers), fabricators, distribu tors, and retailers of 2630 composite wood products. The regulatory provisi ons in this proposal are designed to ensure 2631 compliance with the TSCA Title VI formalde hyde emission standards while aligning, where 2632 practical, with the regulatory requirements unde r the California Air Resources Board’s (CARB) 2633 Airborne Toxic Control Meas ure (ATCM). By aligning its elf with the existing CARB 2634 requirements, EPA seeks to avoid differing or dup licative regulatory requirements that would 2635 result in an increased burde n on the regulated community. 2636 5. Classes of small entities s ubject to the compliance requirements . Small entities 2637 include small businesses, small organizations, an d small governmental jurisdictions. The small 2638 entities that are potenti ally directly regulated by this ru le are small businesses that are 2639*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 121 of 177 [RIN 2070–AJ92] manufacturers (including importers ), fabricators, dist ributors, or retailer s of composite wood 2640 products. No small governments or small organizati ons are expected to be directly regulated by 2641 the rule. 2642 6. Professional skills needed to comply . Each panel producer must designate a person as 2643 quality control manager with adequate experi ence and/or training to be responsible for 2644 formaldehyde emission quality control. EPA has not proposed criteria for determining whether 2645 an individual’s experience or tr aining are appropriate for this position, but experience in the 2646 wood products industry or a degree in chemistry or a related field might provide the skills need 2647 to comply with the requirements. 2648 A panel producer must be able to follo w sampling and handling procedures for the 2649 material that is to be tested. However, t hose procedures must be described in the panel 2650 producer’s quality control manual, and specified sk ills should not be needed to follow the written 2651 procedures. 2652 Each panel producer must also designate a qua lity control facility for conducting quality 2653 control formaldehyde testing, and the quality control facility must have quality control 2654 employees with adequate experience and/or tr aining to conduct accurate chemical quantitative 2655 analytical tests. But instead of performing th ese functions themselves, panel producers have the 2656 option of hiring an accredited third party certifier (TPC) or a contract laboratory to fulfill these 2657 requirements. 2658 To obtain product certification, a panel producer must apply to an accredited TPC, and 2659 must provide information and notifications to the TPC. Finally, manufacturers, fabricators, 2660 distributors, or retailer s of composite wood products must ma intain records. None of these 2661 activities requires any special skills. 2662*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 122 of 177 [RIN 2070–AJ92] 7. Relevant Federal rules . The U.S. Department of Housing and Urban Development 2663 (HUD) has regulations governing formaldehyde em ission levels from plywood and particleboard 2664 materials installed in manufactured homes. (See 24 CFR 3280.308.) However, TSCA Title VI 2665 establishes specific formaldehyde emission stan dards for hardwood plywood, particleboard, and 2666 medium-density fiberboard and does not provide EPA with the authority to modify these 2667 standards. Furthermore, the Formaldehyde St andards for Composite Wood Products Act, which 2668 includes TSCA Title VI, directs HUD to revise their regulations to ensure that they reflect the 2669 emission standards in TSCA Title VI. And th e HUD regulations do not deal with the other 2670 elements addressed in these implementing regulat ions (where EPA does ha ve the authority to 2671 make determinations) such as laminated products, products made with ultra low-emitting 2672 formaldehyde resins, products made with no-added formaldehyde resins , testing requirements, 2673 chain of custody documentation, and product invent ory sell-through provisions. Therefore, the 2674 regulatory provisions of this proposal for which EPA has flexibility in implementing the statute 2675 do not duplicate, overlap, or conflic t with any other Federal rules. 2676 8. Potential economic impacts on small entities . Of the 879,000 small firms affected by 2677 the proposal, over 851,000 (about 97%) ar e expected to have costs imp acts that are less than 1% 2678 of their revenues, over 23,000 firm s (about 3 percent) are expect ed to experience impacts at 2679 levels between 1 and 3% percent of their re venue, and over 4,000 firms (less than 1%) are 2680 expected to incur costs exceed ing 3% of their revenues. 2681 Many of the firms with cost impacts above 1% of their revenues are fabricators, 2682 wholesalers, and retailers with annualized costs less than $250 ( i.e. , they are firms with annual 2683 revenues below $25,000). These firms account for 92% of the firms with cost impacts that are 2684 between 1% and 3% and 42% of the firm s with cost impacts that exceed 3%. 2685*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 123 of 177 [RIN 2070–AJ92] 9. Small Business Advocacy Review Panel . As required here by section 609(b) of the 2686 RFA, as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA), EPA 2687 also conducted outreach to small entities and convened a Small Business Advocacy Review 2688 Panel on February 3, 2011 to obtai n advice and recommendations of representatives of the small 2689 entities that potentially would be subject to the proposed rule's requirements. The Panel solicited 2690 input on all aspects of these proposed regulations and on the framework for the third-party 2691 certification program under TSCA Title VI. Seventeen potentially-impacted small entities 2692 served as small-entity represen tatives (SERs) to the Panel, re presenting a broad range of small 2693 entities from diverse geographic locations, and five trade associations. The Panel concluded its 2694 deliberations on April 4, 2011. 2695 Consistent with the RFA/SBREFA requireme nts, the Panel evaluated the assembled 2696 materials and small-entity comments on issues rela ted to elements of the IRFA. A copy of the 2697 Panel report is included in the docket for this propos ed rule (Ref. 15). It is important to note that 2698 the Panel’s findings and discussion were based on the information av ailable at the time the final 2699 report was prepared. EPA has continued to conduc t analyses relevant to the proposed rule, and 2700 additional information may be developed from public comment on the proposed rule. 2701 The Panel’s recommendations on the TPC framework were discussed in the TPC 2702 Proposal (Ref. 1). The Panel’s most significan t findings and recommendations on other aspects 2703 of the TSCA Title VI implementing regulations are summarized below. 2704

a. In general . The Panel recommended that EPA adopt regulatory requirements that are 2705 consistent with the CARB ATCM wherever possi ble. EPA agrees with this recommendation and 2706 has tried throughout this proposal to remain consistent with CARB wh ere it is practical to do so. 2707*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 124 of 177 [RIN 2070–AJ92] b. Manufactured-by dates and stockpiling . The Panel generally agreed with those SERs 2708 that recommended that EPA propose to establish the manufactured-by date at 180 days after 2709 promulgation of the final rule and make the re ference period for determining whether stockpiling 2710 has occurred the 12 month period prior to prom ulgation of the final rule. The Panel also 2711 recommended that EPA request comments and data on alternative dates a nd reference periods. 2712 EPA is proposing to establish the manufactured -by date at 1 year after promulgation of 2713 the final rule. This is primarily to allow fo r development of the third-party certification 2714 infrastructure and to give panel producers w ho are not already complying with the CARB ATCM 2715 adequate time before the manufactured-by date to select an accredited third-party certifier, 2716 develop a quality control manual, and complete the initial testing to qualify for product 2717 certification. 2718 EPA is proposing to establish the stockpili ng reference period, or base period, as the 2719 calendar year 2009 because, under TSCA Title VI, the base period must end before the statute 2720 was enacted. EPA requests comments and data on both the proposed manufactured-by date and 2721 the proposed base period for determining whether stockpiling has occurred. 2722

c. Quality control and compliance testing . The Panel recommended that EPA consider 2723 CARB’s method of establishing equivalency and car efully evaluate any al ternative test method 2724 permitted. After considering the options, EP A is proposing to use CARB’s method of 2725 establishing equivalency between test methods and EPA is also proposing to recognize those 2726 alternative test methods that CARB has approved. 2727 The Panel further recommended that EP A provide clear direction on product 2728 decertification and recertifica tion procedures and the recall of noncompliant products. In 2729 response to these recommendations, EPA has propos ed specific provisions on what actions are 2730*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 125 of 177 [RIN 2070–AJ92] required and allowed in the event of a failed test result. EPA has also proposed to require panel 2731 producers to hold lots selected for testi ng until the test results are received. 2732 d. Labeling and recordkeeping. The Panel generally r ecommended that labeling and 2733 record keeping provisions should be closely harmonized with CA RB’s requirements, including 2734 allowing panels to be labeled by bundle, rather than individuall y. The Panel did recognize that 2735 subtle differences between the TSCA Title VI implementing regulations and the CARB ATCM 2736 may make identical labels impossible. EPA is proposing labeling requireme nts that are virtually 2737 identical to CARB’s, except that the labels mu st say that the products are TSCA Title VI 2738 compliant instead of CARB compliant. For enti ties that are manufact urers under TSCA (i.e., 2739 they manufacture, produce, or import composite wood panels, component parts, or finished 2740 goods), EPA’s proposed recordkeeping and chain

- of custody documentation requirements are 2741 also virtually identical to CARB ’s. For distributors and retail ers that are not manufacturers 2742 under TSCA, EPA is proposing that the only records they be required to k eep are invoices and 2743 bills of lading. This requirement is less burdensome than recordkeeping and chain of custody 2744 requirements similar to t hose in the CARB ATCM. 2745

e. Laminated products and engineered veneer. The Panel recommended that EPA 2746 continue to seek available information, and exempt those laminated products that can be 2747 exempted consistent with the direction given in TSCA Title VI. The Panel further recommended 2748 that EPA work with small businesses, especially those laminating on a ma de-to-order basis, to 2749 design a testing scheme that is practical for thos e businesses, and at the same time, is calculated 2750 to ensure compliance with the emissions sta ndards. The Panel also recommended that EPA 2751 consider basing the number and frequency of required quality control tests on production 2752 volume, thereby requiring fewer tests for smaller producers. EPA has incorporated all of these 2753*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 126 of 177 [RIN 2070–AJ92] recommendations into this propos al, by proposing to exempt laminated products that are made 2754 with certified platforms and NAF resins, and by proposing to allow for quality control testing 2755 frequency based on production volume for hardwood plywood producers. 2756 f. Definitions . The Panel recommended that EPA develop a definition of “hardboard” 2757 that takes the revised ANSI standard into ac count while ensuring that similar products are 2758 similarly regulated under TSCA Title VI. While a revised ANSI standard for “hardboard” has 2759 yet to be finalized, EPA believes that its proposed definiti on takes into account both widespread 2760 industry usage of the term and the intent of the statute. 2761 Recognizing that TSCA Title VI was not intended to apply to structural plywood, the 2762 Panel also recommended that EPA develop a clear definition for “interior use” in order to 2763 eliminate confusion in the regulated community. According to the Panel, the definition should 2764 be based on the intent of the st atute and consider how the hardw ood plywood is likely to be used 2765 and stored once incorporated into a finished good. EPA has proposed a definition of “intended 2766 for interior use” that includes these considera tions and requests comments on the appropriateness 2767 of this definition. 2768 While the SERs differed in their advice on th e definition of the term “panel,” the SBAR 2769 Panel recommended that EPA reduce uncertainty in the regulated community by including in its 2770 regulation a clear definition of “p anel” that is based on the intent of the statute, and considers 2771 trade usage and the limitations of current test methods. Again, EPA is proposing a definition that 2772 takes these factors into account, and EPA reque sts comment on all aspects of the proposed 2773 definition. 2774
10. Alternatives considered

. EPA’s Economic Analysis for the proposed rule (Ref. 39) 2775 examined a number Over the course of alt ernative analytical options. Among the this 2776*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 127 of 177 [RIN 2070–AJ92] rulemaking, EPA considered alternatives based on the formaldehyde emissions standards set in 2777 Title VI for various provisions of TSCA, EPA analyzed different options for how laminated 2778 products might be included i n the definition of hardwood plywood, and for the rule’s chain of 2779 custody and recordkeeping requirements. These the rule. Most of these alternatives would have 2780 applied to both small and large entities , but , given the number of small entities in the affected 2781 industries, some of these alternatives would largely could affect many small entities. EPA is 2782 proposing the option with the lowest total cost among these options. This will minimize any 2783 significant economic impact on small entities. The Economic Anal ysis included two options for 2784 the definition of hardwood pl ywood that had higher total made a concerted effort to keep the 2785

costs than the proposed rule (because they di d not include the propos ed rule’s reduced 2786 recordkeeping requirements for firms that are not manufacturers under TSCA) but that were less 2787 burdensome to certain laminated product producers. Specifically, one of the alternative options 2788 would have excluded all laminated products fr om the definition of hardwood plywood, and the 2789 second would have excluded all laminated products other th an architectural panels and custom 2790 plywood from the definition of hardwood plyw ood. Both alternative options would apply 2791 regardless of the types of resins used in ma king the laminated products exempted from the 2792 defi nition of hardwood plywood. and burdens associated with this rule as low as possible while 2793 still ensuring compliance with the TSCA Title VI emissions standards. In developing the 2794 proposed rule, EPA considered the statutory requ irements and the benefits from protection of 2795 human health and the environment, as well as the compliance costs imposed by the rule, both in 2796 general and on small entities. EPA took a number of steps to reduce the economic impacts of the 2797 rule where doing so was consistent with the stat utory mandate. The steps where EPA was able to 2798 quantify the resulting cost reductions are: 2799*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 128 of 177 [RIN 2070–AJ92] Because eligibility for the exemptions for lami nated products in the alternative options was not 2800

• Aligning with the CARB ATCM where practical . This regulatory proposal is designed 2801 to ensure compliance with the TSCA Title VI formaldehyde emission standards while aligning, 2802 where practical, with the regulat ory requirements in California. Some of the areas where EPA 2803 has aligned the proposal with the CARB ATCM are described below. Aligning the TSCA 2804 implementing regulations with California’s requ irements helps reduce costs for the nearly 100 2805 composite wood product mills, the 32,000 fabri cators, the 32,000 wholesalers, and the 101,000 2806 retailers that are already complying with the CARB ATCM in the baseline. However, EPA 2807 deviated from the CARB ATCM where doing so would reduce burden while still ensuring 2808 compliance with the TSCA Title VI emissions sta ndards. The proposed rule costs $19 million to 2809 $31 million per year less than an option that is fully consistent with the CARB ATCM. 2810

• Defining hardwood plywood to exclude laminated products in which a wood veneer is 2811 attached to a compliant and cer tified platform using a N AF resin, and defining laminated 2812 products without limiting applicability to the manufacturer or fabricator of the finished good in 2813 which the product is incorporated. These definitions will result in 98% of laminated product 2814 producers being regulated as fabri cators rather than panel producer s. As a result, the rule will 2815 cost $92 million to $172 million per year less than if all laminated products were included in the 2816 definition of hardwood plywood. 2817

• Reducing recordkeeping for non-manufacturers . The rule costs $40 million per year 2818 less than if EPA had proposed recordkeeping requirements similar to the CARB ATCM’s. 2819

• Reducing TPC oversight and testing requirements for NAF and ULEF products . The 2820 ULEF provisions alone reduce the tota l rule costs by $0.5 million per year. 2821 EPA also took a number of steps to reduce burden where it did not have sufficient 2822*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 129 of 177 [RIN 2070–AJ92] information to quantify the resulting cost reductions. Some of these steps include: 2823 • Not requiring retailers to relabel items that they divide or repackage. 2824 • Reducing quality control testing for small hardwood plywood producers. 2825 • Reducing quality control testing for part icleboard and medium-density fiberboard 2826 producers that demonstrate cons istent operations and low va riability of test values. 2827 • Allowing panel producers to group pr oducts and product types for testing. 2828 • Adopting a definition of hardboard that exempts hardboard products (including those 2829 made with phenol-formaldehyde resin) from the statutory emission standa rds and the testing and 2830 certification requirements. 2831 • Setting the manufactured-by date for the sell-through provisions at 1 year after 2832 promulgation of the final rule, instead of the statutory minimum of 180 days. 2833 • Allowing alternate test methods to ASTM D-6007-02 and ASTM D-5582 for quality 2834 control testing, after de monstrating equivalence. 2835 • Not requiring recordkeeping for exempt products. 2836 • Allowing TPCs approved by CARB to certify products under TSCA Title VI until one 2837 year after the publication of the final rule, and allowing products currently certified by these 2838 TPCs to be considered certified for purposes of TSCA Title VI during that same period. 2839 • Allowing equivalence between ASTM E-1333- 10 and any other approved test method 2840 to be demonstrated in a range of formaldehyde concentrations that is representative of the 2841 emissions of the products that a TPC certifies. 2842 EPA also considered and rejected various alte rnatives to the rule that could affect the 2843 economic impacts of the rule on small entities. For the reasons described below, these 2844 alternatives are not consistent with the statutory objectives of the rule and are not included in the 2845*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 130 of 177 [RIN 2070–AJ92] proposed rule. 2846

• Exempting all laminated products from the definition of hardwood plywood . EPA 2847 considered excluding all laminated products from the definition of ha rdwood plywood. Because 2848 eligibility for such an exemption would not be based on the type of resi ns used to attach a wood 2849 veneer to a platform, currently av ailable information indicates that these options this would have 2850 allowed laminated products that exceed the form aldehyde emission standards to be exempted 2851 from the definition of hardwood plywood. Therefore, on the basis of information currently 2852 available to the Agency, EPA has concluded that such alternative options are exempting all 2853 laminated products from the de finition of hardwood plywood is not consistent with TSCA Title 2854 VI’s statutory mandate that EP A promulgate regulations in a manner that ensures compliance 2855 with the emission standards in TSCA section 601(b)(2). 2856

• Providing additional de minimis exceptions . EPA has decided not to propose an 2857 exception from any of the regulatory requireme nts for products containing small amounts of 2858 composite wood products, other than implementi ng the statutory exceptions for certain windows 2859 and doors. EPA does not have the authority to promulgate a de minimis exception to the 2860 statutory requirements (e.g., emissions standards, or quarterly testing) ; rather EPA has the 2861 authority to promulgate a de minimis exception for the other regulatory provisions (e.g., record 2862 keeping, chain-of-custody, quality control testing, and labeling). EPA does not know of any 2863 information that suggests that products with a de minimis amount of composite wood products 2864 would necessarily be made from panels that meet the statutory emissions standards, as required 2865 by the statute. Thus, EPA believe s it is necessary to make thes e products subject to the already 2866 reduced regulatory requirements. EPA has concl uded that, on the basis of information currently 2867 available to the Agency, excepting such products w ould not be consistent with TSCA Title VI’s 2868*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 131 of 177 [RIN 2070–AJ92] statutory mandate that EPA promulgate regulations in a manner that ensures compliance with the 2869 emission standards in TSCA section 601(b)(2). 2870

• Not requiring retention of tested lots . EPA is proposing to requi re that panel producers 2871 retain lots of composite wood products from wh ich quality control or quarterly samples have 2872 been selected until the samples have been test ed and the results received. Without this 2873 requirement, panel producers could inadvertently sell products exceeding the emission standards 2874 in TSCA section 601(b)(2). Furthermore, EPA believes that the proposed approach may be less 2875 burdensome overall and offer bette r protection to importers, distri butors, wholesalers, retailers, 2876 and consumers than an approach relying on af ter-the-fact enforcement actions and customer 2877 notifications. 2878 Additional information on the alternatives that EPA considered is presented elsewhere in 2879 this proposal, and in the IRFA (Ref. 61). 2880 EPA invites comments on all aspects of the proposal and its impacts on small entities. 2881 D. Unfunded Mandates Reform Act (UMRA) 2882 Title II of UMRA, 2 U.S.C. 1531-1538, establis hes requirements for Federal agencies to 2883 assess the effects of their regulatory actions on State, local, and trib al governments and the 2884 private sector. This rule contains a Federal mandate that may result in expenditures exceeding 2885 the inflation-adjusted UMRA threshold of $100 million or more for State, local, and tribal 2886 governments, in the aggregate, or the private sector in any one year . Accordingly, EPA has 2887 prepared under section 202 of the UMRA a written statement which is summarized below (Ref. 2888
45 62 ). 2889
1. Authorizing legislation. This proposed rule is issued under the authority of Section 601 2890 of TSCA, 15 U.S.C. 2697. 2891*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 132 of 177 [RIN 2070–AJ92] 2. Cost-benefit analysis. EPA has prepared an analysis of the costs and benefits 2892 associated with this rulemaking, a copy of which is available in the docket for this rulemaking 2893 (Ref. 39 46 ). The Economic Analysis presents the costs of the rule as well as various regulatory 2894 options and is summarized in Unit V.A. of this preamble. EPA has estimated that this proposal 2895 will result in a total cost of $ 435 434 million to $447 million in the first year. The cost is 2896 estimated to drop to $ 57 56 million to $ 66 65 million in the second year . The total annualized 2897 cost of this proposal is $72 million to $81 millio n per year when using a 3% discount rate and 2898 $ 81 80 million to $89 million per year using a 7% disc ount rate. When adjusted for inflation, the 2899 $100 million UMRA threshold is equivalent to approximately $143 million in 2010 dollars. 2900 Thus, the cost of the rule to the private sector and State, local, and Tr ibal governments in the 2901 aggregate exceeds the inflation-adjusted UMRA threshold in the first year. 2902 This proposed rule will redu ce exposures to formaldehyde, re sulting in benefits from 2903 avoided adverse health effects. For the subset of health effects where the results were quantified, 2904 the estimated annualized benefits (due to avoided incidence of asthma, eye irritation, 2905 nasopharyngeal cancer , and reduced female fertility eye irritation ) are $ 184 20 million to $ 278 48 2906 million per year using a 3% discount rate, and $ 91 9 million to $ 137 23 million per year using a 2907 7% discount rate. There are additional unquantified benefits due to other avoided health effects 2908 (upper respiratory tract pathol ogy, pulmonary function, allergic sensitization, immune function 2909 effects, neurological and behavioral toxicity, and developmental toxicity).

. 2910 Net benefits are the difference between benef its and costs. The pr oposal is estimated to 2911 result in quantified net benefits of $103 -$24 million to $206 -$60 million per year using a 3% 2912 discount rate, and $2 million to $ -$ 57 million to -$79 million per year using a 7% discount rate. 2913 EPA considers the additional unquantified health benefits from avoided cases of respiratory 2914*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 133 of 177 [RIN 2070–AJ92] related and other effects to be potentially important non-monetized impacts that contribute to the 2915 overall net benefits of this rule. 2916
3. State, local, and Tribal government input. Consistent with the intergovernmental 2917 consultation provisions of sec tion 204 of the UMRA EPA has initiated consultations with 2918 governmental entities affected by this rule. EPA has met with officials from the state of 2919 California on numerous occasions to di scuss aspects of the CARB ATCM and its 2920 implementation. With the assistance of the National C onference of State Le gislatures, EPA has 2921 also initiated consultations with state e nvironmental health directors. 2922
4. Least burdensome option. Consistent with section 205, EPA has identified and 2923 considered a reasonable number of regulatory alte rnatives. TSCA Title VI establishes specific 2924 formaldehyde emission standards for hardwood plywood, particleboard, and medium-density 2925 fiberboard and does not provide EPA with the aut hority to modify these st andards. The statute 2926 further directs EPA to promulgate implementing regulations that address elements such as 2927 laminated products, products made with ultra low-emitting formaldehyde resins, products made 2928 with no-added formaldehyde resins, testing requ irements, product labeling, chain of custody 2929 documentation and other recordkeeping require ments, and product inventory sell-through 2930 provisions. Section 601(d) of TSCA requires EPA to promulgate implementing regulations in a 2931 manner that ensures compliance with the TSCA Title VI emission standards. Within those 2932 constraints, EPA has considered a number of regulatory altern atives for regulating laminated 2933 products, as described in Unit III and elsewhere in this Unit, as well as in the Economic Analysis 2934 (Ref. 39). 46). One of the alternative options that EPA considered, which would have exempted 2935 all laminated products from the definition of hardwood plywood, had lower costs than the 2936 proposed rule. But as explaine d elsewhere in this proposal, cu rrently available information 2937*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 134 of 177 [RIN 2070–AJ92] indicates that laminated products can exceed the formaldehyde emission standards. Therefore, 2938 on the basis of information currently available to the Agency, EPA has concluded that exempting 2939 all laminated products from the definition of ha rdwood plywood is not consistent with TSCA 2940 Title VI’s statutory mandate that EPA promulgate regulations in a manner that ensures 2941 compliance with the emission standa rds in TSCA section 601(b)(2). EPA has determined that 2942 the proposed rule is the least burdensome option that is consistent with TSCA Title VI’s 2943 statutory mandate that EPA promulgate regulations in a manner that ensures compliance with the 2944 emission standards in TSCA section 601(b)(2). 2945 This rule does not contain a significant Fe deral intergovernmental mandate as described 2946 by § 203 of UMRA, because it neither imposes en forceable duties on State, local, or tribal 2947 governments nor reduces an authorized amount of Fe deral financial assistance provided to State, 2948 local, or tribal governments. And this proposed rule contains no regul atory requirements that 2949 might significantly or uniquely affect small governments. The proposed rule would regulate 2950 entities that manufacture (inc luding import), fabricate, dist ribute, or sell composite wood 2951 products. Governments do not typically engage in these activities, so gov ernment entities are not 2952 expected to be subject to the rule’s requirements. 2953
E. Executive Order 13132: Federalism 2954 This action does not have federalism implications because

. It will not have substantial 2955 direct effects on the States, on the relationship between the national government and the States, 2956 or on the distribution of power and responsibilities among the vari ous levels of government, as 2957 specified in Executive Order 13132 (64 FR 4325 5, August 10, 1999). The proposed rule would 2958 not regulate governments directl y, it would regulate entit ies that manufacture (including import), 2959 fabricate, distribute, or sell composite wood pr oducts. Governments do not typically engage in 2960*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 135 of 177 [RIN 2070–AJ92] these activities. Thus, Executive Order 13132 does not apply to this action. 2961 In the spirit of Executive Or der 13132, and consistent with EPA policy to promote 2962 communications between EPA and State and local governments, EPA has met with officials 2963 from the state of California on numerous occasio ns to discuss aspects of the CARB ATCM and 2964 its implementation. With the assistance of the National Conference of St ate Legislatures, EPA 2965 has also initiated consultations with state environmental health directors. EPA specifically 2966 solicits comment on this proposed acti on from State and local officials. 2967
F. Executive Order 13175: Consultation and Coor dination with Indian Tribal Governments 2968 This action does not have tribal implicati ons, as specified in Executive Order 13175 (65 2969 FR 67249, November 9, 2000). The proposed rule would not regulate tribal governments 2970 directly, it would regulate entitie s that manufacture (including impor t), fabricate, distribute, or 2971 sell composite wood products. Tribal governments do not typically engage in these activities. 2972 Thus, Executive Order 13175 does not apply to this action. 2973 EPA specifically solicits additi onal comment on this proposed ac tion from tribal officials. 2974 G. Executive Order 13045: Protection of Children from Environmental Health Risks and Safety 2975
Risks 2976 This action is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997) 2977 because it is not an economically significant regulatory action as defined by Executive Order 2978
12866 , and EPA believes that the envi ronmental health or safety risk addressed by this action has 2979 a disproportionate effect on children. Accordingly . Nevertheless , EPA has evaluated the 2980 environmental health effects of formaldehyde emissions from composite wood products on 2981 children. The results of this evaluation ar e described in the Economic Analysis (Ref. 39 46 ). The 2982 analysis shows that children aged two zero through fifteen one represent 19 3 percent of the 2983*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 136 of 177 [RIN 2070–AJ92] individuals affected by the rule and are estimated to accrue about 75 2 to 10 percent of the 2984 proposed rule’s total quantified benefits. These results are driven Children aged two through 2985 fifteen represent 20 percent of the individuals affected by the rule and are estimated to accrue 2986 about 16 to 22 percent of the pr oposed rule’s total quantified benefits associated with avoiding 2987 asthma incidence.

. Given these results, EPA has determin ed that this proposed rule will not 2988 have disproportionally high and adverse human h ealth or environmental effects on children. 2989 These proposed standards would reduce emissi ons of formaldehyde from composite wood 2990 products for individuals of all ag es that are exposed and children are likely to may accrue higher 2991 benefits from the exposure redu ctions compared to adults. 2992 The public is invited to submit comments or identify peer-reviewed studies and data that 2993 assess effects of early life exposure to formaldehyde. 2994 H. Executive Order 13211: Actions Concerning Regul ations That Significantly Affect Energy 2995 Supply, Distribution, or Use 2996 2997 This proposed rule is not a ” “ significant energy ac tion” as defined in Executive Order 2998 13211 (66 FR 28355, May 22, 2001), because it is not lik ely to have any adverse effect on the 2999 supply, distribution, or use of energy. 3000 I. National Technology Transfe r and Advancement Act (NTTAA) 3001 Section 12(d) of NTTAA, 15 U.S.C. 272 note, directs EPA to use voluntary consensus 3002 standards in its regulatory activities unless to do so would be inconsistent with applicable law or 3003 otherwise impractical. Voluntary consensu s standards are technical standards ( e.g. , materials 3004 specifications, test methods, sampling procedures , and business practices) that are developed or 3005 adopted by voluntary consensus st andards bodies. NTTAA direct s EPA to provide Congress, 3006 through OMB, explanations when the Agency de cides not to use avai lable and applicable 3007 voluntary consensus standards. 3008*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 137 of 177 [RIN 2070–AJ92] This proposed rulemaking involves numerous te chnical standards, many of which EPA is 3009 directed to use by TSCA Title VI. Technical standards identified in the statute include the two 3010 quarterly test methods, ASTM E-1333-96 and ASTM D-6007-02, a quality control test method, 3011 ASTM D-5582-00, and various standa rds that define specific composite wood products, such as 3012 ASTM D-5456-06 (Structural Composite Lumber Products), ASTM D-5055-05 (Prefabricated 3013 Wood I-Joists), ANSI A190.1 (Structural Glue d Laminated Timber), ANSI/HPVA HP–1–2009 3014 (Hardwood and Decorative Plywood), ANSI A208.2–2 2009 (Medium Density Fiberboard), 3015 ANSI A208.1–2009 (Particleboard), PS-1-07 (Structural Plywood), and PS-2-04 (Wood-Based 3016 Structural-Use Panels). 3017 In addition, EPA has identified other vol untary consensus standards that EPA is 3018 proposing to incorporate into this regulation. These include the revise d quarterly test method, 3019 ASTM E-1333-10, and standards that define hardboard, ANSI A135.4, ANSI A135.5, and ANSI 3020 A135.6. EPA is also proposing to allow three al ternative quality control test methods that are 3021 incorporated in voluntary consensus standards, EN 717-2 (gas analysis), EN 120 (perforator), 3022 and JIS A 1460 (24-hour desiccator). 3023 EPA is proposing the use of voluntary consen sus standards issued by the International 3024 Organization for Standardization, ASTM Intern ational, the American National Standards 3025 Institute, the National Institute of Standa rds and Technology, the European Committee for 3026 Standardization, Georgia Pacifi c Chemicals LLC, and the Japanese Standards Association. 3027 Copies of the standards referenced in th e proposed regulatory te xt at 40 CFR 770.1, 770.3, 3028 770.10, 770.15, 770.17, 770.20, and 770. 60 20 have been placed in the docket for this proposed 3029 rule. You may also obtain copies of these standards from: 3030*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 138 of 177 [RIN 2070–AJ92] (1) International Organizati on for Standardization, Case postale 56, CH·1211, Geneve 20, 3031 Switzerland, telephone +41–22–749–01–11, http://www.iso.org

. 3032 (2) ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, 3033 PA, 19428-2959 USA, telephone (877) 909-ASTM, http://www.astm.org

. 3034 (3) ANSI, American National Standards Institute, 1899 L Street, NW, 11 th Floor, 3035 Washington, DC 200036, telephone (202) 293-9287, http://ansi.org/

. 3036 (4) National Institute of Standards and Technology, Technology Administration, U.S. 3037 Department of Commerce, 100 Bureau Drive, MS 2150, Gaithersburg, MD 20899-2150; 3038 http://ts.nist.gov/docvps

. 3039 (5) CEN, European Committee for Standardization, CEN-CENELEC Management 3040 Centre, 4 th Floor, Avenue Marnix 17, B-1000 Brussels, telephone +32-3-550-08-11, 3041 http://www.cen.eu/cen/pages/default.aspx

. 3042 (6) Georgia-Pacific Chemicals LLC, 133 P eachtree Street, Atlanta, GA 30303, telephone 3043 (877) 377-2737, http://www.gp-dmc.com/default.aspx

. 3044 (7) Japanese Standards Association, Japa nese Industrial Standards, 1-24, Akasaka 4, 3045 Minatoku, Tokyo 107-8440, Japan, telephone +81-3-3583-8000, http://www.jsa.or.jp/

. 3046 In the final rule, EPA intends to seek approval fro m the Director of the Federal Register for the 3047 incorporation by reference of the standards referenced in the fi nal rule in accordance with 5 3048 U.S.C. 552(a) and 1 CFR part 51. 3049 EPA welcomes comments on this aspect of the proposed rulemaking and specifically 3050 invites the public to identify a dditional potentially-a pplicable voluntary consensus standards and 3051 to explain why such standards shoul d be used in this regulation. 3052
J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority 3053 Populations and Low-Income Populations 3054*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 139 of 177 [RIN 2070–AJ92] 3055 Executive Order 12898 (59 FR 7629, February 16, 1994) establishes federal executive 3056 policy on environmental justice. Its main provi sion directs federal agencies, to the greatest 3057 extent practicable and permitted by law, to make environmental justice part of their mission by 3058 identifying and addressing, as appropriate, disp roportionately high and adverse human health or 3059 environmental effects of their programs, policie s, and activities on minority populations and low3060 income populations in the United States. 3061 EPA has determined that this proposed ru le will not have disproportionally high and 3062 adverse human health or environmental effect s on any population, including any minority or 3063 low-income population. These proposed standard s would reduce emissions of formaldehyde 3064 from composite wood products for all populations that are exposed, with sli ghtly larger benefits 3065 for individuals from minority or low-income affected populations. 3066 This proposed rule establishes standards that reduce emissions of formaldehyde from 3067 composite wood products. Formaldehyde exposure ma y cause a range of health effects including 3068 nasopharyngeal cancer, sensory irritation, asthma, and female reproductive toxicity. respiratory 3069 related and other effects. 3070 The Economic Analysis (Ref. 39 46 ), described in Unit V.A, monetizes the benefits from 3071 reducing each the number of these four identified health impacts, cases of nasopharyngeal cancer 3072 and estimates total benefits as th e sum of these four categories sensory irritation . Benefits 3073 valuation is done for formaldehyde exposure in fi ve climate zones from nine different housing 3074 types (five types of new housing and four types of renovated h ousing), allowing for off-gassing 3075 of up to ten years, as well as occupational, school, and outside formaldehyde exposure. The 3076 population in these climate zones and housing types is broken down into broad age and 3077 employment categories to assess exposure. 3078*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 140 of 177 [RIN 2070–AJ92] The Economic Analysis (Ref. 39 46 ) includes an environmental justice analysis that 3079 expands on the primary benefits analysis by anal yzing the monetized impacts specifically for 3080 minority and low-income populations. Results indi cate that disaggregation of total benefits by 3081 population groups leads to variati on in the range of individual be nefits, by minority population. 3082 Benefits estimates are reported in 2010 dollars, annualiz ed at a 3% rate. The population of all 3083 individuals affected by the rule shows the same es timates reported in the total benefits analysis; 3084 annualized quantified benefits ranging for the proposed rule range from $ 184 20 million to $ 278 48 3085 million for the options with emissions standards that are consistent with the statute , and 3086 $1.74 average $0.19 to $ 2.62 0.45 per individual. The affectedNon-Hispanic White population 3087 account for 65% of the total affected population, accrue 54 60% to 61 % of the total 3088 annualized quantified benefits, and experience average annualized quantified benefits ranging 3089 from $ 1.43 0.18 to $ 2.16 0.42 per individual. In comparison, be nefits for minority populations are 3090 higher. Minority populations represent about 35% of the individuals affected by the rule and are 3091 estimated to accrue about 45 40 % of the proposed rule’s total quantified benefits. The affected 3092 Non-Hispanic Black population account for 12% of the total affe cted population, accrue 15% to 3093
16 13 % of the total annualized quantified benefits, and experience average annualized quantified 3094 benefits ranging from $ 2.32 0.21 to $ 3.35 0.49 per individual. The a ffected Hispanic population 3095 account for 15% of the total affected population, accrue 22 18 % of the total annualized quantified 3096 benefits, and experience average annualized quantified benefits ranging from $ 2.47 0.22 to 3097 $ 3.78 0.51 per individual. The affected Non-Hispan ic Native American or Alaskan Indian 3098 population account for 0.6% of the total affected population, accrue 0. 7 6 % of the total 3099 annualized quantified benefits, and experience average annualized quantified benefits ranging 3100 from $ 1.92 0.19 to $ 2.80 0.43 per individual. The affected low-income population account for 3101*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 141 of 177 [RIN 2070–AJ92] 12% of the total affected population, accrue 18 14% to 15 % of the total annualized quantified 3102 benefits, and experience average annualized quantified benefits ranging from $ 2.49 0.22 to 3103 $ 3.82 0.53 per individual. 3104 To further improve the analysis for the final rule, the public is invited to submit 3105 comments or identify peer-reviewe d studies and data that assess the exposures of minority or 3106 low-income populations to formaldehyde emi ssions from composite wood products, and the 3107 health effects of those exposures. 3108
3109*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 142 of 177 [RIN 2070–AJ92] List of Subjects in 40 CFR Part 770 3110 Environmental protection, Formaldehyde, Re porting and recordkeeping requirements, 3111 Toxic substances, Wood. 3112
3113 Dated: ____________________ 3114
3115

__________________________________________ 3116 Administrator 3117
3118*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 143 of 177 [RIN 2070–AJ92] Therefore, 40 CFR part 770 as proposed on [insert date of TPC proposal] (76 FR ?????), 3119 is amended to read as follows 3120 1. The authority citation for part 770 continues to read as follows: 3121 Authority : 15 U.S.C. 2697(d). 3122 2. Section 770.1 is amended by adding paragr aphs (b) through (e) to read as follows. 3123 § 770.1 Scope and applicability. 3124
* * * * * 3125 (b) This subpart applies to any hardwood plywood, particleboard, or medium-density 3126 fiberboard, or finished goods c ontaining these materials, that ar e sold, supplied, offered for sale, 3127 or manufactured (including importe d) in the United States. 3128 (c) This subpart does not apply to the following: 3129 (1) Any finished good that has previously been sold or supplied to an individual or entity 3130 that purchased or acquired the finished good in good faith for purposes other than resale, e.g. , an 3131 antique or secondhand furniture. 3132 (2) Hardboard, unless the ha rdboard is used as a core for hardwood plywood. 3133 (3) Structural plywood, as specified in PS- 1-07, Voluntary Product Standard—Structural 3134 Plywood. 3135 (4) Structural panels, as specified in PS -2-04, Voluntary Product Standard—Performance 3136 Standard for Wood-Based St ructural-Use Panels. 3137 (5) Structural composite lumber, as specifi ed in ASTM D5456-06, Standard Specification 3138 for Evaluation of Structural Composite Lumber Products. 3139 (6) Oriented strand board. 3140*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 144 of 177 [RIN 2070–AJ92] (7) Glued laminated lumber, as specif ied in ANSI A190.1-2002, Structural Glued 3141 Laminated Timber. 3142 (8) Prefabricated wood I-joists, as specifie d in ASTM D5055-05, Standard Specification 3143 for Establishing and Monitoring Structural Capacities of Pref abricated Wood I-Joists. 3144 (9) Finger-jointed lumber. 3145 (10) Wood packaging, including pallet s, crates, spools, and dunnage. 3146 (11) Composite wood products used inside the following: 3147 (i) New vehicles (other than recreational vehi cles) that are constructed entirely from new 3148 parts and that have never been the subject of a re tail sale or registered with the applicable State 3149 or other governmental agency. 3150 (ii) New rail cars. 3151 (iii) New boats. 3152 (iv) New aerospace craft. 3153 (v) New aircraft. 3154 (d) The emission standards in § 770.10 do not apply to windows that contain composite 3155 wood products, if the windows contain less than 5% by volume of hardwood plywood, 3156 particleboard, or medium-density fiberboard, co mbined, in relation to the total volume of the 3157 finished window. 3158 (e) The emission standards in § 770.10 do not apply to exterior doors and garage doors 3159 that contain composite wood products, if: 3160 (1) The doors are made from composite w ood products manufactured with no-added 3161 formaldehyde-based resins or ultra low-emitting formaldehyde resins; or 3162*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 145 of 177 [RIN 2070–AJ92] (2) The doors contain less than 3% by vol ume of hardwood plywood, particleboard, or 3163 medium-density fiberboard, combined, in relation to the total volume of the finished exterior 3164 door or garage door. 3165 3. Section 770.2 is amended by adding paragr aphs (d) and (e) to read as follows: 3166 § 770.2 Effective dates. 3167
* * * * * 3168 (d) After [ date 1 year after publication of the final rule in the Federal Register ], all 3169 hardwood plywood, particleboar d, and medium-density fibe rboard, and finished goods 3170 containing these materials, sold, supplied, offered for sale, or manufactured (including imported) 3171 in the United States must comply with this subpart. Except: Hardwood plywood, particleboard, 3172 and medium-density fiberboard manufact ured (including imported) before [ date 1 year after 3173 publication of the final regulations in the Federal Register ] may be sold, supplied, offered for 3174 sale, or used to fabricate component parts or finished goods at any time. 3175 (e) After [ date 1 year after publication of the final rule in the Federal Register ], all 3176 manufacturers (including importe rs), fabricators, suppliers, di stributors, and retailers of 3177 hardwood plywood, particleboar d, and medium-density fibe rboard, and finished goods 3178 containing these materials, must comply with this subpart. 3179 4. Section 770.3 is amended by revising the definition for “Panel producer” and 3180 alphabetically adding the following definitions to read as follows: 3181 § 770.3 Definitions. 3182
* * * * * 3183
Article means a manufactured item which: 3184 (i) Is formed to a specific sh ape or design during manufacture. 3185*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 146 of 177 [RIN 2070–AJ92] (ii) Has end use functions dependent in whol e or in part upon its shape or design during 3186 the end use. 3187 (iii) Has either no change of chemical co mposition during its end use or only those 3188 changes of composition which have no commercial purpose separate from that of the article and 3189 that may occur as described in 19 CFR 12.120(a)(2); except that fluids and particles are not 3190 considered articles regard less of shape or design. 3191
Bundle means more than one composite wood product panel, component part, or finished 3192 good fastened together for transportation or sale. 3193 Component part means a part that contains one or more composite wood products and is 3194 used in the assembly of finished goods. 3195
* * * * * 3196
Distributor means an entity that supplies composite wood products, component parts, or 3197 finished goods to others. 3198
* * * * * 3199
Fabricator means an entity that incorporates composite wood products into component 3200 parts or into finished goods. 3201 Finished good means any good or product, other than a panel, that contains hardwood 3202 plywood, particleboard, or medium-density fiberboard and that is not a component part or other 3203 part used in the assembly of a finished good. 3204
Hardboard means a panel composed of cellulosic fibers made by dry or wet forming and 3205 hot pressing of a fiber mat, either wit hout resins, or with a phenolic resin ( e.g. , a phenol3206 formaldehyde resin ), ) or a resin system in which there is no

- added formaldehyde as part of the 3207 resin cross-linking structure, as determined under one of the following ANSI standards: ANSI 3208*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 147 of 177 [RIN 2070–AJ92] A135.4 (Basic Hardboard), ANSI A135.5 (Prefini shed Hardboard Paneling), or ANSI A135.6 3209 (Hardboard Siding). 3210 Hardwood plywood means a hardwood or decorative panel that is intended for interior 3211 use and composed of (as determined under ANS I/HPVA HP–1–2009) an asse mbly of layers or 3212 plies of veneer, joined by an a dhesive with a lumber core, a particleboard core, a medium-density 3213 fiberboard core, a hardboard core, a veneer core , or any other special core or special back 3214 material. Hardwood plywood does not include m ilitary-specified plywood, curved plywood, or 3215 any plywood specified in PS-1-07, Voluntary Product Standard – Structural Plywood, or PS-2- 3216 04, Voluntary Product Standard – Performance Standa rd for Wood-Based Stru ctural-Use Panels. 3217 In addition, hardwood plywood does not include lami nated products that are made by attaching a 3218 wood or woody grass veneer with a no-added formal dehyde-based resin to a core that has been 3219 manufactured in compliance with this subpart an d that is either certif ied in accordance with § 3220
770. 60 or 15, manufactured with no-added form aldehyde-based resins under § 770.17

. , or 3221 manufactured with ultra low-emitting fo rmaldehyde-based resins under § 770.18(d). 3222 Importer means an entity that imports compos ite wood products, component parts that 3223 contain composite wood products, or finished goods that contai n composite wood products into 3224 the customs territory of the United States (as de fined in general note 2 of the Harmonized Tariff 3225 Schedules of the United Stat es). Importer includes: 3226 (1) The entity primarily liab le for the payment of any duties on the products, or 3227 (2) An authorized agent acti ng on the entity’s behalf. 3228 Intended for interior use means intended for use or storage inside a building or 3229 recreational vehicle, or constructed in such a way that it is not suitable for long term use in a 3230 location exposed to the elements. 3231*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 148 of 177 [RIN 2070–AJ92] * * * * * 3232 Laminated product means a product in which a wood or woody grass veneer is affixed to 3233 a particleboard platform, a medium-density fiber board platform, or a veneer core platform. A 3234 laminated product is a component part used in the construction or assembly of a finished good. 3235 Laminated product producer means a manufacturing plant or other facility that 3236 manufactures (excluding imports facilities that solely import products ) laminated products on the 3237 premises. 3238
Lot means the particular batch of a product type made during a si ngle production run. 3239 Medium-density fiberboard means a panel composed of cellulosic fibers made by dry 3240 forming and pressing a resinated fibe r mat (as determined under ANSI A208.2–2009). 3241 No-added formaldehyde-based resin means a resin formulated with no added 3242 formaldehyde as part of the re sin cross-linking structure in a composite wood product that meets 3243 the emission standards in § 770.17(c). 3244 Non-complying lot means any lot or batch of com posite wood product represented by a 3245 quarterly or quality control test value that ex ceeds the applicable standa rd for the particular 3246 composite wood product. In the case of a quarterly test value, only the pa rticular lot or batch 3247 from which the sample was taken would be cons idered a non-complying lot. However, future 3248 production of the product type(s) represented by a failed quarterly test are not considered 3249 certified and must be treated as a non-comply ing lot until the product t ype(s) are re-qualified 3250 through a successful quarterly test. 3251
Panel means a flat or raised pi ece of composite wood product. 3252 Panel producer means a manufacturing plant or other facility that manufactures 3253 (excluding imports facilities that solely import products ) composite wood products on the 3254*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 149 of 177 [RIN 2070–AJ92] premises. This includes laminated products not excluded from the definition of hardwood 3255 plywood. 3256
Particleboard means a panel composed of cellulosic material in the form of discrete 3257 particles (as distinguished from fibers, flakes, or strands) that are pressed together with resin (as 3258 determined under ANSI A208.1–2009). Particleboard does not include any product specified in 3259 PS-2-04, Performance Standard for Wood- Based Structural-Use Panels. 3260
* * * * * 3261 Product type means a type of composite wood product that differs from another, made by 3262 the same panel producer, based on wood type, composition, thickness, number of plies (if 3263 hardwood plywood), or resin used. Products with similar emissions made with the same resin 3264 system may be considered to be the same produc t type. Factors to consider in determining 3265 whether products belong to th e same product type include t hose factors likel y to affect 3266 emissions, such as wood type, resin type, core type, veneer type, and press time. 3267
Production line means a set of operations and phy sical industrial or mechanical 3268 equipment used to produce a composite wood product. 3269
Purchaser means an entity that acquires composite wood products in exchange for money 3270 or its equivalent. 3271 Quality control limit means the quality control method te st formaldehyde value that is the 3272 correlative equivalent to the applicable emission standard ba sed on the ASTM E1333-10 method. 3273
Recreational vehicle means a vehicle which is: 3274 (1) Built on a single chassis. 3275 (2) Four hundred square feet or less when measured at the largest horizontal projections. 3276 (3) Self-propelled or permanently towable by a light duty truck. 3277*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 150 of 177 [RIN 2070–AJ92] (4) Designed primarily not for use as a pe rmanent dwelling but as temporary living 3278 quarters for recreational, campi ng, travel, or seasonal use. 3279
Retailer means an entity that generally sell s smaller quantities of composite wood 3280 products directly to consumers. 3281 Scavenger means a chemical or chemicals that ca n be applied to resins or composite 3282 wood products to reduce the amount of formalde hyde that can be emitted from composite wood 3283 products. 3284 Stockpiling means manufacturing or purchasing composite wood products, whether in the 3285 form of panels or incorporated into finished goods, between July 7, 2010 and [ date 180 days 3286 after publication of the final rule in the Federal Register ] at an average rate at least 10 20 % 3287 greater than the average rate of manufacture or purchase duri ng the 2009 calendar year for the 3288 purpose of circumventing the emission standard s and other requirements of this subpart. 3289 Thin medium-density fiberboard means medium-density fiberboard that has a thickness 3290 less than or equal to 8 m illimeters or 0.315 inches. 3291
* * * * * 3292 Ultra low-emitting formaldehyde resin means a resin in a co mposite wood product that 3293 meets the emission standards in 770.18(c). 3294
Veneer means a thin sheet of wood or woody grass that is rotary cut, sliced, or sawed 3295 from a log, bolt, flitch, block, or culm. 3296 Woody grass means a plant of the family Poaceae (formerly Gramineae ) with hard 3297 lignified tissues or woody parts. 3298 5. Subpart C is added to read as follows: 3299 Subpart C--Composite Wood Products 3300*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 151 of 177 [RIN 2070–AJ92] Sec. 3301 770.10 Formaldehyde emission standards. 3302 3303 770.12 Stockpiling. 3304 770.15 Composite wood product certification. 3305 770.17 No-added formaldehyde-based resins. 3306 770.18 Ultra low-emitting formaldehyde resins. 3307 770.20 Testing requirements. 3308 770.22 Non-complying lots. 3309 770.24 Samples for testing. 3310 770.30 Importers, fabricators, laminated produ ct producers, distribut ors, and retailers. 3311 770.40 Reporting and recordkeeping. 3312 770.45 Labeling. 3313 770.55 Prohibited acts. 3314 Subpart C--Composite Wood Products 3315 § 770.10 Formaldehyde emission standards. 3316 (a) Except as provided in §§ 770.1 and in 770.17, th e emission standards in this section 3317 apply to composite wood products sold, supplied, offered for sa le, or manufactured (including 3318 imported) in the United States. These emissi on standards apply regardless of whether the 3319 composite wood product is in the form of a pane l, a component part, or incorporated into a 3320 finished good. 3321 (b) The emission standards are based on test method ASTM E1333-10, and are as 3322 follows: 3323 (1) For hardwood plywood, 0.05 parts pe r million (ppm) of formaldehyde. 3324 (2) For medium-density fiber board, 0.11 ppm of formaldehyde. 3325*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 152 of 177 [RIN 2070–AJ92] (3) For thin medium-density fibe rboard, 0.13 ppm of formaldehyde. 3326 (4) For particleboard, 0. 09 ppm of formaldehyde. 3327 § 770.12 Stockpiling. 3328 (a) The sale of stockpiled i nventory of composite wood produc ts, whether in the form of 3329 panels or incorporated into fini shed goods, is prohibited after [ date 1 year after publication of the 3330 final rule in the Federal Register ]. 3331 (b) To determine whether stockpiling has occu rred, the rate of manufacture or purchase is 3332 measured as follows: 3333 (1) For composite wood products in the form of panels, the rate is measured in terms of 3334 square footage of panels produced. 3335 (2) For composite wood products incorporated into component parts or finished goods, 3336 the rate is measured in terms of the square footage of compos ite wood product panels purchased 3337 for the purpose of incorporating them into component parts or finished goods. 3338 (c) Manufacturers or purchasers who can dem onstrate that they have a greater than 3339
10 20 % increase in manufacturing or purchasing co mposite wood products for some reason other 3340 than circumventing the emissions standards would not be in violation of this section. Such 3341 reasons may include, but are not limited to: 3342 (1) A quantifiable immediate increase in customer demand or sales. 3343 (2) A documented and planned business expansion. 3344 (3) The manufacturer or purchaser was not in business at the beginning of calendar year 3345
2009. 3346 (4) An increase in production to meet in creased demand resulting from an emergency 3347 event or natural disaster. 3348*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 153 of 177 [RIN 2070–AJ92] § 770.15 Composite wood product certification. 3349 (a) Only certified composite wood products , whether in the form of panels or 3350 incorporated into component parts or finished goods, are permitted to be sold, supplied, offered 3351 for sale, or manufactured (inc luding imported) in the United States, unless the product is 3352 specifically exempted by this subpart. 3353 (b) Certified composite wood products are t hose that are produced or fabricated in 3354 accordance with all of the provi sions of this subpart. 3355 (c) To obtain product certification, a panel producer must apply to a TSCA Title VI 3356 Accredited TPC. The applicati on must contain the following: 3357 (1) The panel producer’s name, address, telephone number, and other contact 3358 information. 3359 (2) A copy of the panel producer’s quality control manual as required by § 770.20(e)(1). 3360 (3) Name and contact information for the pa nel producer’s quality control manager. 3361 (4) An identification of the specific products for which certification is requested, and the 3362 chemical formulation of the resi ns, including base resi ns, catalysts, and other additives used in 3363 panel production. 3364 (5) At least one test conducted in accordance with § 770.20(c). 3365 (6) Three months of routine quality c ontrol tests conducted in accordance with 3366 § 770.20(b). 3367 (d) The TSCA Title VI Accredited TPC must act on a panel producer’s complete 3368 application within 90 days of receipt. 3369*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 154 of 177 [RIN 2070–AJ92] (1) If the application demonstrates that the candidate product achieves the applicable 3370 emission standards described in § 770.10, the TSCA Title VI Accredited TPC will approve the 3371 application. 3372 (2) If the applicati on does not demonstrate that th e candidate product achieves the 3373 applicable emission standards described in § 770.10, the TSCA Title VI Accredited TPC will 3374 disapprove the application. A ne w application may be submitted for the candidate product at any 3375 time. 3376 (e) If a panel producer fails a quarterl y test, certification for any product types 3377 represented by the sample is suspended until a co mpliant quarterly test result is obtained. 3378 § 770.17 No-added formaldehyde-based resins. 3379 (a) Producers of composite wood product pa nels made with no-added formaldehyde3380 based resins may apply to a TSCA Title VI A ccredited TPC for a 2-year exemption from the 3381 testing and certification requirements in § 770.20. A copy of the application must be sent to 3382 EPA. The application must contain the following: 3383 (1) The panel producer’s name, address, telephone number, and other contact 3384 information. 3385 (2) An identification of the specific product a nd the chemical formulation of the resins, 3386 including base resins, cata lysts, and other additives as used in manufacturing. 3387 (3) At least one test conducted under the supe rvision of a TSCA Title VI Accredited TPC 3388 pursuant to test method ASTM E1333-10 or AS TM D6007-02. Test results obtained by ASTM 3389 D6007-02 must include a showi ng of equivalence in accordance with § 770.20(d)(1). 3390 (4) Three months of routine quality control tests under § 770.20, including a showing of 3391 equivalence in accordance with § 770.20(d)(2). 3392*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 155 of 177 [RIN 2070–AJ92] (b) The TSCA Title VI Accredited TPC will approve a panel pr oducer’s application 3393 within 90 days of receipt if th e application is complete and de monstrates that the candidate 3394 product achieves the emission standards descri bed in paragraph (c) of this section. 3395 (c) As measured according to paragraphs (a)( 3) and (a)(4) of this section, the emission 3396 standards for composite wood products made with no-added formaldehyde-based resins are as 3397 follows: 3398 (1) No test result higher than 0.05 parts pe r million (ppm) of formaldehyde for hardwood 3399 plywood and 0.06 ppm for particlebo ard, medium-density fiberboar d, and thin medium-density 3400 fiberboard. 3401 (2) No higher than 0.04 ppm of formaldehyde fo r 90% of the 3 months of routine quality 3402 control testing data required under pa ragraph (a)(4) of this section. 3403 (d) After the initial 2-year period, and every 2 years thereafter, in or der to continue to 3404 qualify for the exemption from the testing and certification requirements, the panel producer 3405 must reapply to a TSCA Title VI Accredited TP C and obtain at least one test result in accordance 3406 with paragraph (a)(3) of this section that complies with the emission standards in paragraph 3407 (c)(1) of this section. 3408 (e) Any change in the resin formulation, the core material, or a ny other part of the 3409 manufacturing process that may affect formal dehyde emission rates invalidates the exemption 3410 for any product produced after such a change. 3411 § 770.18 Ultra low-emitting formaldehyde resins. 3412 (a) Producers of composite wood product panels made with ultra low-emitting 3413 formaldehyde resins may apply to a TSCA Title VI Accredited TPC for approval either to 3414 conduct less frequent testing than is specified in § 770.20 or approval for a 2-year exemption 3415*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 156 of 177 [RIN 2070–AJ92] from the testing and certifica tion requirements in § 770.20. A c opy of the application must be 3416 sent to EPA. The application must contain the following: 3417 (1) The panel producer’s name, address, telephone number, and other contact 3418 information. 3419 (2) An identification of the specific product a nd the chemical formulation of the resins, 3420 including base resins, scavenge r resins, scavenger additives, cat alysts, and other additives as 3421 used in manufacturing. 3422 (3) At least two tests conducted under the s upervision of a TSCA Title VI Accredited 3423 TPC pursuant to test method ASTM E1333-10 or ASTM D6007-02. Test results obtained by 3424 ASTM D6007-02 must include a showing of equi valence in accordance with § 770.20(d)(1). 3425 (4) Six months of routine quality contro l tests under § 770.20, incl uding a showing of 3426 equivalence in accordance with § 770.20(d)(2). 3427 (b) The TSCA Title VI Accredited TPC will approve a panel pr oducer’s application 3428 within 90 days of receipt if th e application is complete and de monstrates that the candidate 3429 product achieves the emission sta ndards required for reduced tes ting as described in paragraph 3430 (c) of this section or the emi ssion standards required for a 2-y ear exemption as described in 3431 paragraph (d) of this section. 3432 (c) As measured according to paragraphs (a)( 3) and (a)(4) of this section, the emission 3433 standards for reduced testing for composite wood products made with ultra low-emitting 3434 formaldehyde resins are as follows: 3435 (1) No test result higher than 0.05 parts pe r million (ppm) of formaldehyde for hardwood 3436 plywood, 0.08 ppm for particleboar d, 0.09 ppm for medium-density fiberboard, and 0.11 ppm for 3437 thin medium-density fiberboard. 3438*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 157 of 177 [RIN 2070–AJ92] (2) For 90% of the 6 months of routine quality control testin g data required under 3439 paragraph (a)(4) of this section, no higher than 0.05 ppm of formaldehyde for particleboard, no 3440 higher than 0.06 ppm of formalde hyde for medium-density fibe rboard, and no higher than 0.08 3441 ppm of formaldehyde for thin medium-density fiberboard. 3442 (d) As measured according to paragraphs (a)( 3) and (a)(4) of this section, the emission 3443 standards for an exemption from the testi ng and certification requirements of § 770.20 for 3444 composite wood products made with ultra low-em itting formaldehyde resins are as follows: 3445 (1) No test result higher than 0.05 ppm of formaldehyde for hardwood plywood or 0.06 3446 ppm of formaldehyde for partic leboard, medium-density fiberb oard, and thin medium-density 3447 fiberboard. 3448 (2) For 90% of the 6 months of routine quality control testin g data required under 3449 paragraph (a)(4) of this section, no higher than 0.04 parts per million of formaldehyde.(e) After 3450 the initial 2-year period, and every 2 years thereafter, in orde r to continue to qualify for an 3451 exemption from the testing and cer tification requirements, the pane l producer must reapply to a 3452 TSCA Title VI Accredited TPC and obtain at leas t one test result in accordance with paragraph 3453 (a)(3) of this section that complies with the emi ssion standards in paragrap h (c)(1) of this section. 3454 (f) Any change in the resin formulation, the core material, or a ny other part of the 3455 manufacturing process that may affect formal dehyde emission rates invalidates the exemption 3456 from the testing and certificati on requirements for any product resu lting from such a change and 3457 produced after such a change. 3458 § 770.20 Testing requirements. 3459 (a) General requirements --(1) All panels must be tested in an unfinished condition, prior 3460 to the application of a finishing or topcoat. 3461*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 158 of 177 [RIN 2070–AJ92] (2) Facilities that conduct the formaldehyde testing required by this section must follow 3462 the procedures and specifications , such as testing conditions a nd loading ratios, of the test 3463 method being used. 3464 (3) All equipment used in the formaldehyde testing required by this section must be 3465 calibrated and otherwise maintained and used in accordance with the equipment manufacturer’s 3466 instructions. 3467 (b) Quality control testing-- (1) Allowable methods. Quality control testing may be 3468 performed using any of the following methods, with a showing of equi valence for each method 3469 pursuant to paragraph (d ) of this section: 3470 (i) ASTM D6007-02. 3471 (ii) ASTM D5582. 3472 (iii) EN 717-2 (Gas Analysis Method). 3473 (iv) DMC (Dynamic Micro Chamber). 3474 (v) EN 120 (Perforator Method). 3475 (vi) JIS A 1460 (24-hr Dess icator Desiccator Method). 3476 (2) Frequency of testing-- (i) Particleboard and medium-dens ity fiberboard must be tested 3477 at least once per shift (8 or 12 hours, plus or minus 1 hour of production) for each production line 3478 for each product type. Quality control tests must also be conducted whenever: 3479 (A) A product type production ends, even if 8 hours of production has not been reached. 3480 (B) The resin formulation is changed so that the formaldehyde to urea ratio is increased. 3481 (C) There is an increase by more than 10% in the amount of formaldehyde resin used, by 3482 square foot or by panel. 3483 (D) There is a decrease in the design ated press time by more than 20%. 3484*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 159 of 177 [RIN 2070–AJ92] (E) The quality control manager or quality control employee has reason to believe that 3485 the panel being produced may not meet the requi rements of the appli cable standards. 3486 (ii) Particleboard and medium-density fiber board panel producers are eligible for reduced 3487 quality control testing if they de monstrate consistent operations and low variability of test values. 3488 To qualify, panel producers must: 3489 (A) Apply in writing to a TS CA Title VI Accredited TPC. 3490 (B) Maintain a 30 panel running average. 3491 (C) If the 30 panel running average remains 2 standard de viations below the designated 3492 quality control limit for 60 days or more, the TSCA Title VI Accredit ed TPC may approve a 3493 reduction to 1 quality control test per 24-hour production period. 3494 (D) If the 30 panel running average remains 3 standard de viations below the designated 3495 quality control limit for 60 days or more, the TSCA Title VI Accredit ed TPC may approve a 3496 reduction to 1 quality control te st per 48-hour production period. 3497 (E) The TSCA Title VI Accredited TPC w ill approve a request for reduced quality 3498 control testing as long as the data submitted by the panel producer demonstrates compliance with 3499 the criteria and the TSCA Title VI Accredited TPC does not otherwise have reason to believe 3500 that the data are inaccurate or the panel producer’s production pro cesses are inadequate to ensure 3501 continued compliance with the emi ssion standards. 3502 (iii) Hardwood plywood must be tested as follows: 3503 (A) At least one test per week per product type and pr oduction line if the weekly 3504 hardwood plywood production at the panel produ cer is more than 100,000 but less than 200,000 3505 square feet. 3506*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 160 of 177 [RIN 2070–AJ92] (B) At least two tests per week per produc t type and production line if the weekly 3507 hardwood plywood production at the panel producer is 200,000 square feet or more, but less than 3508 400,000 square feet. 3509 (C) At least four times pe r week per product type and production line if the weekly 3510 hardwood plywood production at the panel produ cer is 400,000 square feet or more. 3511 (D) If weekly production of hardwood plyw ood at the panel producer is 100,000 square 3512 feet or less, at least one test per 100,000 square feet for each product type produced; or, if less 3513 than 100,000 square feet of a pa rticular product type in a singl e production run is produced, one 3514 quality control test of that product ty pe per production run or lot produced. 3515 (iv) Composite wood products that have b een approved by TSCA Title VI Accredited 3516 TPC for reduced testing under § 770.18(b)-(c) must be tested at least once per week per product 3517 type and production line, ex cept that hardwood plywood pane l producers who qualify for less 3518 frequent testing under (b)(2)(iii) (D) of this section may conti nue to perform quality control 3519 testing under that provision. 3520 (3) Lots selected for sampling . All lots from which samples are selected for quality 3521 control testing must be retained at the panel pr oducer’s facility until the quality control test 3522 results are received by th e panel producer. 3523 (i) Lots represented by passing quality control test results may be shipped as soon as the 3524 test results are receive d by the panel producer. 3525 (ii) Lots represented by failing quality c ontrol test results must be handled as non3526 complying lots in accordance with § 770.22 3527 (4) Results . Any sample that exceeds the quality control limit established pursuant to 3528 this section must be reported to the TSCA Title VI Accredited TPC in writing within 24 hours. 3529*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 161 of 177 [RIN 2070–AJ92] Any lot or batch represented by a quality contro l sample that exceeds the quality control limit 3530 must be handled in accordance with § 770.22. 3531 (c) Quarterly testing. Quarterly testing must be supervised by TSCA Title VI Accredited 3532 TPCs and performed by laboratories accredited under § 770. 60 7

. 3533 (1) Allowable methods . Quarterly testing must be performed using ASTM E1333-10 or, 3534 with a showing of equivalence pursuant to paragraph (d) of this section, ASTM D6007-02. 3535 (2) Sample selection-- (i) Samples must be randomly chosen by a TSCA Title VI 3536 Accredited TPC from a single lo t or group of lots that is re ady for shipment by the panel 3537 producer. 3538 (ii) Lots may be grouped for quarterly tes ting purposes. For hardwood plywood samples, 3539 the samples must be randomly selected from products that have the highest potential to emit 3540 formaldehyde. 3541 (iii) Samples must not include the top or the bottom composite wood pr oduct of a bundle. 3542 (iv) All lots from which samples are selected for quarterly testing must be retained at the 3543 panel producer’s facility until the quarterly test results are received by the panel producer. This 3544 includes lots that are grouped for pur poses of quarterly testing. 3545 (A) Lots represented by passing quarterly test results may be shipped as soon as the test 3546 results are received by the panel producer. 3547 (B) Lots represented by failing quarterly te st results must be disposed of as non3548 complying lots in accordance with § 770.22 3549 (3) Sample handling. Samples must be dead-stacked or air-tight wrapped between the 3550 time of sample selection and the start of test conditioning. Samples must be labeled as such, 3551 signed by the TSCA Title VI Accredited TPC, bundled air-tight, wrapped in polyethylene, 3552*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 162 of 177 [RIN 2070–AJ92] protected by cover sheets, and promptly shipped to the laboratory testing facility. Conditioning 3553 must begin as soon as possible, but no later th an 30 days after the samp les were produced. 3554 (4) Results . Any sample that exceeds the applicab le formaldehyde emission standard in 3555 § 770.10 must be reported by the TSCA Title VI Accredited TPC to the panel producer and to 3556 EPA in writing within 24 hours. Any lot or batc h represented by a sample result that exceeds the 3557 applicable formaldehyde emission standard must be disposed of in accordance with § 770.22. 3558 Where lots are grouped for testing, th is includes all lots in the group re presented by the sample. 3559 (5) Reduced testing frequency . Composite wood products that have been approved by 3560 TSCA Title VI Accredited TPC for reduced te sting under § 770.18(b)-(c) need only undergo 3561 quarterly testing every six months. 3562 (d) Equivalence. Equivalence between ASTM E1333-10 and any other test method used 3563 for quality control or quarterly testing must be demonstrated by TSCA Title VI Accredited TPCs 3564 at least once each year or whenever there is a sign ificant change in equipment, procedure, or the 3565 qualifications of testing personnel. 3566 (1) Equivalence between ASTM E1333-10 and ASTM D6007-02 . Equivalence must be 3567 demonstrated for at least five comparison samp le sets, which compare the results of the two 3568 methods. 3569 (i) Samples-- (A) For the ASTM E1333-10 method, each comparison sample must consist 3570 of the result of simultaneously testing panels, using the applicable loading ratios specified in the 3571 ASTM E1333-10 method, from the same batch of panels tested by the ASTM D6007-02 method. 3572 (B) For the ASTM D6007-02 method, each comp arison sample shall consist of testing 3573 specimens representing portions of panels test ed in the ASTM E1333-10 method and matched to 3574 their respective ASTM E1333-10 met hod comparison sample result. 3575*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 163 of 177 [RIN 2070–AJ92] (C) The five comparison sample sets must c onsist of testing a minimum of five sample 3576 sets as measured by the ASTM E1333-10 method. 3577 (ii) Average and standard deviation . The arithmetic mean, x  ̄ , and standard deviation, S , 3578 of the difference of all comparison sets must be calculated as follows: 3579

3580 Where x  ̄ = arithmetic mean; 3581
S = standard deviation; 3582

n = number of sets; 3583
Di = difference between the ASTM E1333-10 and ASTM D6007-02 method values for the i th 3584 set; and 3585
i ranges from 1 to n . 3586 (iii) Equivalence determination. The ASTM D6007-02 method is considered equivalent 3587 to the ASTM E1333-10 method if th e following condition is met: 3588

3589 where C is equal to 0.026. 3590 (2) Equivalence between ASTM E1333-10 and any quality control test method other than 3591 ASTM D6007-02 . Equivalence must be demonstrated by establishing an acceptable correlation 3592 coefficient (“r” value). 3593 (i) Correlation. The correlation must be based on a minimum sample size of five data 3594 pairs and a simple linear regression where the depe ndent variable (Y-axis) is the quality control 3595 test value and the independent variable (X-axi s) is the ASTM E1333-10 test value. Either 3596*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 164 of 177 [RIN 2070–AJ92] composite wood products or formaldehyde emission re ference materials can be used to establish 3597 the correlation. 3598 (ii) Minimum acceptable correlation coefficients (“r” values) . The minimum acceptable 3599 correlation coefficients for equivalency correlatio ns are as follows, where “n” is equal to the 3600 number of data pairs, and “r” is the correlation coefficient: 3601

Degrees of Freedom (n-2) r Value 3 0.878
4 0.811
5 0.754 6 0.707
7 0.666 8 0.632 9 0.602 10 or more 0.576
3602 (iii) Variation from previous results . If data from a TSCA Title VI Accredited TPC's 3603 quarterly test results and a panel producer's quality control test results do not fit the previously 3604 established correlation, the TSCA Title VI Accr edited TPC must establish a new correlation, and 3605 new quality control limits. 3606 (iv) Failed quarterly tests. If a panel producer fails two quarterly tests in a row for the 3607 same product type, the TSCA Title VI Accredite d TPC must establish a new correlation curve. 3608*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 165 of 177 [RIN 2070–AJ92] (e) Quality assurance and qua lity control requirements for panel producers. Panel 3609 producers are responsible for produc t compliance with the applicable emission standards. 3610 (1) Quality control manual-- (i) Each panel producer must have a written quality control 3611 manual containing, at a minimum, the following: 3612 (A) A description of the organizational stru cture of the quality control department, 3613 including the names of the quality control manager and quality control employees. 3614 (B) A description of the sampli ng procedures to be followed. 3615 (C) A description of the me thod of handling samples. 3616 (D) A description of the frequenc y of quality control testing. 3617 (E) A description of the procedures used to identify changes in formaldehyde emissions 3618 resulting from production changes ( e.g. , increase in the percentage of resin, increase in 3619 formaldehyde/urea molar ratio in the resin, or decrease in press time). 3620 (F) A description of provisions for additional testing. 3621 (G) A description of recordkeeping procedures. 3622 (H) The average percentage of resin and press time for each product type. 3623 (I) A description of product grouping, if applicable. 3624 (J) Procedures for reduced quality control testing, if applicable. 3625 (ii) The quality control manual must be a pproved by a TSCA Title VI Accredited TPC. 3626 (2) Quality control facilities. Each panel producer must de signate a quali ty control 3627 facility for conducting quality c ontrol formaldehyde testing. 3628 (i) The quality control facility must be a laboratory owned and operated by the panel 3629 producer, a TSCA Title VI Accredited TP C, or a contract laboratory. 3630*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 166 of 177 [RIN 2070–AJ92] (ii) Each quality control fac ility must have quality cont rol employees with adequate 3631 experience and/or training to conduct accurate chemi cal quantitative analytical tests. The quality 3632 control manager must identify each person conduc ting formaldehyde quality control testing to 3633 the TSCA Title VI Accredited TPC. 3634 (3) Quality control manager. Each panel producer must designate a person as quality 3635 control manager with adequate experience and/or training to be responsible for formaldehyde 3636 emission quality control. The quality control manager must: 3637 (i) Have the authority to take actions necessa ry to ensure that a pplicable formaldehyde 3638 emission standards are being met on an ongoing basis. 3639 (ii) Be identified to the TSCA Title VI A ccredited TPC that will be overseeing the quality 3640 control testing. The panel producer must notif y the TSCA Title VI Accredited TPC in writing 3641 within 10 days of any change in the identity of the quality control manager and provide the 3642 TSCA Title VI Accredited TPC with the new quality control manager’s qualifications. 3643 (iii) Review and approve all reports of quality control testing conducted on the 3644 production of the panel producer. 3645 (iv) Ensure that the samples are collec ted, packaged, and shipped according to the 3646 procedures specified in the quality control manual. 3647 (v) Immediately inform the TSCA Title VI Ac credited TPC in writing of any significant 3648 changes in production that could affect formaldehyde emissions. 3649 § 770.22 Non-complying lots. 3650 (a) Non-complying lots are not certified composite wood pr oducts and they may not be 3651 sold, supplied or offered for sale in the United St ates except in accordance with this section. 3652 (b) Non-complying lots must be isolated from certified lots. 3653*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 167 of 177 [RIN 2070–AJ92] (c) Non-complying lots may be retested using the same te st method if each panel is 3654 treated with a scavenger or handl ed by other means of reducing formaldehyde emissions, such as 3655 aging. Tests must be performed as follows: 3656 (1) At least three test panels must be selected from three separate bund les. They must be 3657 selected so that they are represen tative of the entire lot. Test samples must not be selected from 3658 the top or bottom panels of a bundle. 3659 (2) The average of all samples must test at or below the applicable emission standards in 3660 § 770.10. 3661 (d) Information on the disposition of non-co mplying lots, including product type and 3662 amount of composite wood products affected, lot or batch numbers, mitigation measures used, 3663 results of retesting, and final di sposition, must be provided to th e TSCA Title VI Accredited TPC 3664 within 7 days of final disposition. 3665 § 770.24 Samples for testing. 3666 (a) Composite wood product panels may be shipped into and transported across the 3667 United States for quality cont rol or quarterly tests. 3668 (1) Such panels may not be sold, offered for sale or supplied to a ny entity other than a 3669 TSCA Title VI Accredited TPC laboratory or a cont ract laboratory before testing in accordance 3670 with § 770.20. 3671 (2) If test results for such panels demonstr ate compliance with the emissions standards in 3672 this subpart, the panels may be relabeled in accordance with § 770.50 and sold, offered for sale, 3673 or supplied. 3674 § 770.30 Importers, fabricators, laminated pro duct producers, distributors, and retailers. 3675 (a) Importers, fabricators, laminated product producers whose products are exempt from 3676*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 168 of 177 [RIN 2070–AJ92] the definition of hardwood plywood, distributors, and retailers must take reasonable precautions 3677 to ensure that they are purc hasing composite wood products, whet her in the form of panels, 3678 component parts, or finished goods, that co mply with the emission standards and other 3679 requirements of this subpart. 3680 (b) For importers, fabricators, and lami nated product producers, taking reasonable 3681 precautions means specifying TSCA Title VI comp liant products when ordering or purchasing 3682 from suppliers and obtaining the following records: 3683 (1) Records identifying the panel producer and the date the composite wood products 3684 were produced. 3685 (2) Records identifying the date the composite wood products were purchased. 3686 (3) Bills of lading or invoices that include a written affirmation from the supplier that the 3687 composite wood products are compliant with this subpart. 3688 (c) Importers of articles that are composite wood products, or arti cles that contain 3689 composite wood products, must comply with the import certification regulations for “Chemical 3690 Substances in Bulk and As Part of Mixtur es and Articles,” as found at 19 CFR 12.118 through 3691 12.127 or as later promulgated. 3692 (d) Records required by this section must be maintained in accordance with § 770.40(d). 3693 § 770.40 Reporting and recordkeeping. 3694 (a) Panel producers must maintain th e following records for a period of 5 3 years. The 3695 following records must also be made available to the panel producers’ TSCA Title VI Accredited 3696 TPCs. Records described in para graph (a)(1) of this section must also be made available to 3697 purchasers of their composite wood products. 3698*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 169 of 177 [RIN 2070–AJ92] (1) Records of all quarterly emission test ing and all ongoing quali ty control testing. 3699 These records must identify the TSCA Title VI Accredited TPC conducting or overseeing the 3700 testing and the laboratory or qua lity control facility actually performing the testing. These 3701 records must also include the date , the product type tested, the lot or batch number that the tested 3702 material represents, the test met hod used, and the test results. 3703 (2) Production records, including a descripti on of the composite wood product(s), the 3704 date of manufacture, lot or ba tch numbers, and tracking inform ation allowing each product to be 3705 traced to a specific lot number or batch produced. 3706 (3) Records of changes in pr oduction, including changes of more than 10% in the resin 3707 use percentage, changes in resin composition that result in a higher ratio of formaldehyde to 3708 other resin components, and change s in the process, such as changes in press time by more than 3709 20%. 3710 (4) Records demonstrating in itial and continued eligibil ity for the reduced testing 3711 provisions in § 770.17 and § 770.18 , if applicable. These records must include: 3712 (i) Approval for reduced testing from a TSCA Title VI Accredited TPC. 3713 (ii) Amount of resin use re ported by volume and weight. 3714 (iii) Production volume reported as square feet per product type. 3715 (iv) Resin trade name, resin manufacturer c ontact information, and resin supplier contact 3716 information. 3717 (v) Any changes in the form ulation of the resin. 3718 (5) Purchaser information for each composite wood product, if applicable, including the 3719 name, contact person, address, te lephone number, e-mail address if available, purchase order or 3720 invoice number, and amount purchased. 3721*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 170 of 177 [RIN 2070–AJ92] (6) Transporter information for each compos ite wood product, if applicable, including 3722 name, contact person, address, telephone number, e-mail address if av ailable, and shipping 3723 invoice number. 3724 (7) Information on the disposition of non-co mplying lots, including product type and 3725 amount of composite wood products affected, lot or batch numbers, mitigation measures used, 3726 results of retesting, a nd final disposition. 3727 (8) Copies of labels used. 3728 (b) Panel producers must provide their TSCA Title VI Accredited TPC with monthly 3729 product data reports for each production facility, production line, and product type, maintain 3730 copies of the reports for a minimum of 5 3 years from the date that they are produced. Monthly 3731 product data reports must contain a data sheet for each specific product type with test and 3732 production information, and a quality cont rol graph containing the following: 3733 (1) Quality Control Limit (QCL). 3734 (2) Shipping QCL (if applicable). 3735 (3) Results of quality control tests. 3736 (4) Retest values. 3737 (c) Laminated product producers whose products are exempt from the definition of 3738 hardwood plywood must keep reco rds demonstrating eligibility for the exemption. These 3739 records include: 3740 (1) Resin trade name, resin manufacturer co ntact information, resi n supplier contact 3741 information, and resin purchase records. 3742 (2) Panel producer contact informa tion and panel purchase records. 3743*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 171 of 177 [RIN 2070–AJ92] (3) For panels produced in-house, records de monstrating that the panels have been 3744 certified by an accredited TPC. 3745 (4) For resins produced in-house, records dem onstrating the production of NAF resins. 3746 (d) Importers, fabricators, and laminated product producers whose products are exempt 3747 from the definition of hardwood plywood must ma intain the records described in § 770.30 and 3748 copies of labels used. These records must be maintained for a minimum of 5 3 years from the 3749 date that they are produced. 3750 (e) Distributors and retailers must retain invo ices and bills of lading and copies of labels 3751 used. These records must be maintained for a minimum of 5 3 years from the date that they are 3752 produced. 3753 § 770.45 Labeling. 3754 (a) Panels or bundles of panels that are sol d, supplied, or offered for sale in the United 3755 States must be labeled with the panel producer’s name, the lot or batch number, the number of 3756 the TSCA Title VI Accredited TPC, and a stat ement that the products are TSCA Title VI 3757 certified. 3758 (1) A panel producer number may be used inst ead of a name to prot ect identity, so long 3759 as the identity of the panel producer can be determined at the request of EPA. 3760 (2) Panels or bundles of panels manufactured in accordance with § 770.17 must also be 3761 labeled that they were made with no-added form aldehyde-based resins in addition to the other 3762 information required by this section. 3763 (3) Panels or bundles of panels manufactured in accordance with § 770.18 must also be 3764 labeled that they were made with ultra lo w-emitting formaldehyde in addition to the other 3765 information required by this section. 3766*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 172 of 177 [RIN 2070–AJ92] (b) Panels imported into or transported acro ss the United States for quarterly or quality 3767 control testing purposes in accordance with § 770.20 must be labeled “For TSCA Title VI testing 3768 only, not for sale in the United Stat es.” The panels may be re-label ed if test results are below the 3769 applicable emissions standa rds in this subpart. 3770 (c) Fabricators of finished goods containi ng composite wood products must label every 3771 finished good they produce, or ev ery box containing fi nished goods. 3772 (1) The label may be applied as a stamp, tag, sticker, or bar code. 3773 (2) The label must include, at a minimum, th e fabricator’s name, the date the finished 3774 good was produced, and a statement that the finished goods are TSCA Title VI compliant. 3775 (d) Distributors , and wholesalers , and retailers who receive labeled bundles of regulated 3776 composite wood products and then divide and rep ackage them, whether in bundles or separately, 3777 must label each separate bundle or item with the same informati on as required on the original 3778 label. Labels on bundles that are not so repack aged must be kept in tact by distributors, 3779 wholesalers, and retailers. 3780 § 770.55 Prohibited acts. 3781 (a) The following are prohibit ed acts under TSCA section 15: 3782 (1) Manufacturing (includi ng import) non-certified compos ite wood products unless the 3783 products are specifically exempted by this subpart. 3784 (2) Manufacturing (including import) composite wood products without complying with 3785 the testing provisions in § 770.20, unl ess the products are specifically exempted by this subpart. 3786 (3) Selling, offering for sale, or supplyi ng non-certified composite wood products unless 3787 the products are specifically exempted by this subpart. 3788*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 173 of 177 [RIN 2070–AJ92] (4) Selling, offering for sale, or supply ing composite wood products belonging to non3789 complying lots without first complyi ng with the provisions of § 770.22. 3790 (5) Selling, offering for sale, or supplying certified composite wood products that are not 3791 labeled in accordance with § 770.45. 3792 (6) Selling, offering for sale, or supply ing composite wood products that exceed the 3793 applicable emission standards of § 770.10. 3794 (7) Failing to comply with the r ecordkeeping requirements of § 770.40. 3795 6. Section 770.99 is revised to read as follows: 3796 § 770.99 Incorporation by reference. 3797 The materials listed in this section are incorp orated by reference into this part with the 3798 approval of the Director of th e Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To 3799 enforce any edition other than that specified in this section, a document must be published in the 3800 Federal Register and the material must be available to the public. All approved materials are 3801 available for inspection at the OPPT Docket in the EPA Docket Center (EPA/DC) at Rm. 3334, 3802 EPA, West Bldg., 1301 Constitution Ave., NW., Wash ington, DC. The EPA/DC Public Reading 3803 Room hours of operation are 8:30 a.m. to 4: 30 p.m., Monday through Friday, excluding legal 3804 holidays. The telephone number of the EPA/DC Public Reading room is (202) 566-1744, and the 3805 telephone number for the OPPT Docket is (202) 566-0280. In addition, thes e materials are also 3806 available for inspection at the National Arch ives and Records Admi nistration (NARA). For 3807 information on the availability of this material at NARA, call (202) 741-6030 or go to 3808 http://www.archives.gov/federal_regi ster/code_of_fede ral_regulations/ 3809 ibr_locations.html. These materials may also be obtained fr om the sources listed in this section. 3810*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 174 of 177 [RIN 2070–AJ92] (a) ANSI material . Copies of these materials may be obtained from the American 3811 National Standards Institute, 1899 L Street, NW., 11 th Floor, Washington, DC 20036, or by 3812 calling (202) 293-8020, or at http://ansi.org/

. 3813 (1) ANSI A135.4- 2004, American National St andard, Basic Har dboard, IBR approved 3814 for § 770.3. 3815 (2) ANSI A135.5-2004, American National Stan dard, Prefinished Hardboard Paneling, 3816 IBR approved for § 770.3. 3817 (3) ANSI A135.6-2006, American National Stan dard, Hardboard Siding, IBR approved 3818 for § 770.3. 3819 (4) ANSI A190.1-2002, American National Stan dard for Wood Products, Structural 3820 Glued Laminated Timber, IBR approved for § 770.1. 3821 (5) ANSI A208.1-2009, American National St andard, Particleboard, IBR approved for 3822 § 770.3. 3823 (6) ANSI A208.2–2-2009, American National St andard, Medium Density Fiberboard 3824 (MDF) for Interior Applications, IBR approved for § 770.3. 3825 (7) ANSI/HPVA HP–1–2009, American Na tional Standard for Hardwood and 3826 Decorative Plywood, IBR approved for § 770.3. 3827 (b) ASTM material . Copies of these materials may be obtained from ASTM International, 3828 100 Barr Harbor Dr., P.O. Box C700, West Conshohocken, PA, 19428-2959, or by calling (877) 3829 909-ASTM, or at http://www.astm.org. 3830 (1) ASTM D5055-05 (2005), Standard Specifi cation for Establishing and Monitoring 3831 Structural Capacities of Prefabricate d Wood I-Joists, IBR approved for § 770.1. 3832*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 175 of 177 [RIN 2070–AJ92] (2) ASTM D5456-06 (2006), Standard Specifi cation for Evaluation of Structural 3833 Composite Lumber Products, IBR approved for § 770.1. 3834 (3) ASTM D5582-00 (Reapproved 2006), Octo ber 1, 2006, Standard Test Method for 3835 Determining Formaldehyde Levels from Wood Produc ts Using a Desiccator, IBR approved for 3836 §§ 770.7(a) through (c) and 770.20. 3837 (4) ASTM D6007-02 (Reapproved 2008), Octo ber 1, 2008, Standard Test Method for 3838 Determining Formaldehyde Concentrations in Air from Wood Products Using a Small-Scale 3839 Chamber, IBR approved for §§ 770.7(a) through (c), 770.15, 770.17, and 770.20. 3840 (5) ASTM E1333-10 (Approved 2010), Standard Test Method for Determining 3841 Formaldehyde Concentrations in Air and Emi ssion Rates from Wood Products Using a Large 3842 Chamber, IBR approved for §§ 770.7(a) through (c), 770.10, 770.15, 770.17, and 770.20. 3843 (c) CEN materials. Copies of these materials are not directly available from the 3844 European Committee for Standardization, but from one of CEN’s National Members, Affiliates, 3845
or Partner Standadisation Standardization Bodies. To purchase a st andard, go to CEN’s website, 3846 http://www.cen.eu , and select “Products” for more detailed information. 3847 (1) EN 120:1992, Wood based panels. Dete rmination of formaldehyde content3848 Extraction method called the perforator met hod, English Version, IBR approved for § 770.20. 3849 (2) EN 717-2:1995, Wood-based panels. Dete rmination of formaldehyde release3850 Formaldehyde release by the gas analysis me thod, English Version, IBR approved for § 770.20. 3851 (d) Georgia Pacific material . Copies of this material may be obtained from Georgia3852 Pacific Chemicals LLC, 133 Peachtree Street , Atlanta, GA 30303, or by calling (877) 377-2737, 3853

or at http://www.gp-dmc.com/default.aspx. 3854 (1) GP DMC (Dynamic Micro Chamber) Manual, 2011 Edition, IBR approved for 3855*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 176 of 177 [RIN 2070–AJ92] § 770.20. 3856 (2) [Reserved] 3857 (e) ISO material. Copies of these materials may be obtained from the International 3858 Organization for Standardization, 1, ch. de la Voie-Creuse, CP 56, CH-1211, Geneve 20, 3859 Switzerland, or by calling +41-22-749-01-11, or at http://www.iso.org

. 3860 (1) ISO/IEC 17011:2004(E), Conformity A ssessments--General Requirements for 3861 Accreditation Bodies Accrediting Conformity A ssessments Bodies (First Edition), IBR approved 3862 for §§ 770.7(a) through (c ) and 770.60

. ). 3863 (2) ISO/IEC 17020:1998(E), General Criteria fo r the Operation of Various Types of 3864 Bodies Performing Inspections (First Edit ion), IBR approved for §§ 770.7(a) through (c ) and 3865
770.60

. ). 3866 (3) ISO/IEC 17025:2005(E), General Requirements for the Competence of Testing 3867 and Calibration Laboratories (Second Edition), May 15, 2005, IBR approved for 3868 §§ 770.7(a) through (c ) and 770.60

. ). 3869 (4) ISO/IEC Guide 65:1996(E), General Requ irements for Bodies Operating Product 3870 3871 Certification Systems (First Edition) , 1996, IBR approved for §§ 770.7(a) through (c ) and 3872 7 70.60

. ). 3873 3874 (f) Japanese Standards Association. Copies of this material may be obtained from 3875 Japanese Industrial Standards, 1-24, Akasak a 4, Minatoku, Tokyo 107-8440, Japan, or by calling 3876 +81-3-3583-8000, or at http://www.jsa.or.jp/. 3877 (1) JIS A 1460:2001 Building boards Determination of formaldehyde emission3878 Desiccator method, English Vers ion, IBR approved for § 770.20. 3879 (2) [Reserved] 3880*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 177 of 177 [RIN 2070–AJ92] (g) NIST material . Copies of these materials may be obtained from the National Institute 3881 of Standards and Technology (NIST) by calling (800) 553-6847 or from the U.S. Government 3882 Printing Office (GPO). To purchase a NIST public ation you must have the order number. Order 3883 numbers may be obtained from the Public Inqui ries Unit at (301) 975-NIST. Mailing address: 3884 Public Inquiries Unit, NIST, 100 Bureau Dr., Stop 1070, Gaithersburg, MD 20899-1070. If you 3885 have a GPO stock number, you can purchase prin ted copies of NIST publications from GPO. 3886 GPO orders may be mailed to: U.S. Government Printing Office, P.O. Box 979050, St. Louis, 3887 MO 63197-9000, placed by telephone at (866) 51 2-1800 (DC Area only: (202) 512-1800), or 3888 faxed to (202) 512-2104. Additional in formation is available online at: http://www.nist.gov

. 3889 (1) Voluntary Product Standard PS-1-07 ( 2007), Structural Plywood, IBR approved for 3890 §§ 770.1 and 770.3. 3891 (2) Voluntary Product Standard PS-2-04 (2004) , Performance Standard for Wood-Based 3892 Structural-Use Panels, IBR approved for §§ 770.1 and 770.3. 3893
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