*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

RIN 2070–AJ92 EO12866_RIN2070-AJ92_Formaldehyde-Imp_NPRM_2012-03-19.docx 1 

### Draft document as submitted for review under EO 12866/13563. 2 3 BILLING CODE 6560–50–P 4 ENVIRONMENTAL PRO TECTION AGENCY 5 40 CFR Part 770 6 EPA-HQ-OPPT-2011-0380; 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, testing re quirements, product labeling, chain of custody 18 documentation and other recordkeeping requirement s, enforcement, and product inventory sell19 through provisions, including a product stockpi ling prohibition. The composite wood product 20 formaldehyde emission standards contained in TS CA Title VI are identical to the emission 21 standards currently in place in California. Th e regulatory provisions in this proposal are 22 designed to ensure compliance with the TSCA Title VI formaldehyde emission standards while 23 aligning, where practical, w ith the regulatory requirem ents in California. 24*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 2 of 153 [RIN 2070–AJ92] DATES: Comments must be recei ved on or before [ insert date [60] days after date of 25 publication in the Federal Register ]. 26 ADDRESSES: Submit your comments, identified by doc ket identification (ID) number EPA27 HQ-OPPT-2011-0380, by one of the following methods: 28

• Federal eRulemaking Portal : http://www.regulations.gov . Follow the on-line 29 instructions for submitting comments. 30

• Mail : Document Control Office (7407M), Offi ce of Pollution Prevention and Toxics 31 (OPPT), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 32
20460–0001. 33

• Hand Delivery : OPPT Document Control Office (DCO), EPA East Bldg., Rm. 6428, 34 1201 Constitution Ave., NW., Washington, DC. Atte ntion: Docket ID Number EPA-HQ-OPPT35 2011-0380. The DCO is open from 8 a.m. to 4 p.m., Monday through Friday, excluding legal 36 holidays. The telephone number for the DCO is (202) 564–8930. Such deliveries are only 37 accepted during the DCO’s normal hours of operati on, and special arrangements should be made 38 for deliveries of boxed information. 39
Instructions : Direct your comments to docket ID number EPA-HQ-OPPT-2011-0380. 40 EPA's policy is that all comments received will be included in the docket without change and 41 may be made available on-line at http://www.regulations.gov , including any personal 42 information provided, unless the comment include s information claimed to be Confidential 43 Business Information (CBI) or other information whos e disclosure is restrict ed by statute. Do not 44 submit information that you consider to be CBI or otherwise protec ted through regulations.gov 45 or e-mail. The regulations.gov website is an“anonymous access” system, which means EPA 46 will not know your identity or contact inform ation unless you provide it in the body of your 47*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 3 of 153 [RIN 2070–AJ92] comment. If you send an e-mail comment directly to EPA without going through 48 regulations.gov, your e-mail address will be automati cally captured and included as part of the 49 comment that is placed in the docket and made available on the Internet. If you submit an 50 electronic comment, EPA recomme nds that you include your name and other contact information 51 in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read 52 your comment due to technical difficulties and cannot contact you for clarification, EPA may not 53 be able to consider your comment . Electronic files should avoid the use of special characters, 54 any form of encryption, and be fr ee of any defects or viruses. 55
Docket : All documents in the docket are list ed in the docket index available at 56 http://www.regulations.gov . Although listed in the index, so me information is not publicly 57 available, e.g. , CBI or other information whose disclosure is restricted by statute. Certain other 58 material, such as copyrighted material, will be publicly available only in hard copy. Publicly 59 available docket materials ar e available elect ronically at http://www.regulations.gov , or, if only 60 available in hard copy, at the OPPT Docket. Th e OPPT Docket is located in the EPA Docket 61 Center (EPA/DC) at Rm. 3334, EPA West Bldg., 1301 Constitution Ave., NW, Washington, DC. 62 The EPA/DC Public Reading Room hours of operation are 8:30 a.m. to 4:30 p.m., Monday 63 through Friday, excluding legal holidays. The telephone number of the EPA/DC Public Reading 64 Room is (202) 566–1744, and the telephone number for the OPPT Docket is (202) 566–0280. 65 Docket visitors are required to show photographic identificati on, pass through a metal detector, 66 and sign the EPA visitor log. All visitor bags are processe d through an X-ray machine and 67 subject to search. Visitors will be provided an EPA/DC badge that must be visible at all times in 68 the building and retu rned upon departure. 69 FOR FURTHER INFORMATION CONTACT: For technical information contact : Cindy 70*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 4 of 153 [RIN 2070–AJ92] Wheeler, National Program Chem icals Division, Office of Pollution Prevention and Toxics, 71 Environmental Protection Agency, 1200 Penns ylvania Ave., NW., Washington, DC 20460– 72 0001; telephone number: 202-566-0484; e-mail address: wheeler.cindy@epa.gov

. 73 For general information contact : The TSCA-Hotline, ABVI-Goodwill, 422 South 74 Clinton Ave., Rochester, NY 14620; telephon e number: (202) 554–1404; e-mail address: TSCA75 Hotline@epa.gov

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

• Veneer, plywood, and engineered wood produc t manufacturing (NAICS code 3212). 82

• Manufactured home (mobile home) manufacturing (NAICS code 321991). 83

• Prefabricated wood building manufacturing (NAICS code 321992). 84

• All other basic organic chemical manufacturing (NAICS code 325199), e.g. , 85 formaldehyde manufacturing. 86

• Furniture and related product manufacturing (NAICS code 337). 87

• Furniture merchant wholes alers (NAICS code 42321). 88

• Lumber, plywood, millwork, and wood panel merchant wholesalers (NAICS code 89 42331). 90

• Other construction material merchant wholesalers (NAICS code 423390), e.g. , merchant 91 wholesale distributors of manufactured homes ( i.e. , mobile homes) and/or prefabricated 92 buildings. 93*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 5 of 153 [RIN 2070–AJ92] • Furniture stores (NAICS code 4421). 94

• Building material and supplies dealers (NAICS code 4441). 95

• Manufactured (mobile) home d ealers (NAICS code 45393). 96

• Motor home manufacturing (NAICS code 336213). 97

• Travel trailer and camper manu facturing (NAICS code 336214). 98

• Recreational vehicle (RV) d ealers (NAICS code 441210). 99

• Recreational vehicle merchant w holesalers (NAICS code 423110). 100

• Plastics material and resin manufacturing (NAICS code 325211). 101 This listing is not intended to be exhaustiv e, but rather provides a guide for readers 102 regarding entities likely to be aff ected by this action. Other types of entities not listed in this unit 103 could also be affected. The North American Industrial Classification System (NAICS) codes 104 have been provided to assist you and others in determining whether this action might apply to 105 certain entities. If you have any que stions regarding the applicability of this action to a particular 106 entity, consult the technical person listed under FOR FURTHER INFORMATION 107 CONTACT

. 108 B. What Should I Consider as I Prepare My Comments for EPA? 109
1. Submitting CBI . Do not submit this information to EPA through regulations.gov or e110 mail. Clearly mark the part or all of the information that you claim to be CBI. For CBI 111 information in a disk or CD-ROM that you mail to EPA, mark the outside of the disk or CD112 ROM as CBI and then identify electronically within the disk or CD-ROM the specific 113 information that is claimed as CBI. In additi on to one complete version of the comment that 114 includes information claimed as CBI, a copy of the comment that does not contain the 115 information claimed as CBI must be submitted for inclusion in the public docket. Information so 116*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 6 of 153 [RIN 2070–AJ92] marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 117
2. Tips for preparing your comments . When submitting comments, remember to: 118 i. Identify the document by docket ID number and other identifying information (subject 119 heading, Federal Registerdate and page number). 120 ii. Follow directions. The Agency may ask you to respond to specific questions or 121 organize comments by referencing a Code of Federal Regulations (CFR) part or section number. 122 iii. Explain why you agree or disagree; suggest alternatives and substitute language for 123 your requested changes. 124 iv. Describe any assumptions and provide a ny technical information and/or data that you 125 used. 126 v. If you estimate potential costs or burdens, explain how you arrived at your estimate in 127 sufficient detail to allow for it to be reproduced. 128 vi. Provide specific examples to illustrate your concerns and suggest alternatives. 129 vii. Explain your views as cl early as possible, avoiding the use of profanity or personal 130 threats. 131 viii. Make sure to submit your comments by the comment period deadline identified. 132 II. Background 133 A. Executive Summary 134
1 . Purpose of the regulatory action. EPA is proposing a rule to implement the emission 135 standards and other provisions of the Form aldehyde Standards for Composite Wood Products 136 Act, enacted as Title VI of Toxic Substan ces Control Act (TSCA), 15 U.S.C. 2697. The purpose 137 of TSCA Title VI is to reduce formaldehyde emissions from composite wood products. This 138 proposed rule would implement the emission standards established by TSCA Title VI for 139*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 7 of 153 [RIN 2070–AJ92] composite wood products sold, supplied, offered for sale, or manufactured in the United States. 140 TSCA Title VI directs EPA to promulgate suppl ementary provisions to ensure compliance with 141 the emissions standards by January 1, 2013. 142
2. Summary of the major provisions . TSCA Title VI requires EPA to promulgate 143 regulations that include provi sions on labeling; chain of custody requirements; sell-through 144 provisions; ultra low-emitting formaldehyde resins (ULEF); no-added formaldehyde-based resins 145 (NAF); finished goods; third-party testing and certification; aud iting and reporting of third-party 146 certifiers; recordkeeping; enforcement; lami nated products; and exceptions from regulatory 147 requirements for products and components cont aining de minimis amounts of composite wood 148 products. The listed topics are a ddressed in this proposal, with th e exception of topics related to 149 third-party certification which are being handled in a separate regulatory proposal. EPA also 150 proposes several definitions, clarifies frequency and process requirements for emissions testing, 151 and provides a means of determining test method equivalence. The emission standards 152 themselves are set by statute and ar e not altered in this proposal. 153 TSCA Title VI grants EPA the authority to mo dify the statutory definition of “laminated 154 product” and directs EPA to use al l available and relevant inform ation to determine whether the 155 definition of hardwood plywood should exempt engi neered veneer or any laminated product. 156 EPA is proposing to exempt laminated products in which a wood veneer is attached to a 157 compliant and certified platform using a NAF resi n. EPA is also proposi ng modifications to the 158 statutory definition of “laminated product.” 159 This action includes labeling requirements for composite wood panels and finished 160 goods. It also includes “chain of custody require ments” and recordkeeping requirements with a 161 proposed 5 year record retention period. EPA is also proposing to specif ically require TSCA § 162*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 8 of 153 [RIN 2070–AJ92] 13 import certification for composite wood products that are articles. EPA has decided not to 163 propose an exception from any of the regulat ory requirements for pr oducts containing de 164 minimis amounts of composite wood products. 165 EPA proposes to set the manufactured-by date at 1 year after publica tion of the final rule 166 in the Federal Register. Compos ite wood panels made after the manufactured-by-date would be 167 subject to the emissions standards. Although TSCATitle VI allows EPA to set this date at 180 168 days after promulgation of the final implementing regulations, EPA believes that more time will 169 be needed to ensure infrastructure is in place and allow panel producers time to develop their 170 initial qualifying data for certification. 171 EPA proposes to provide producers of panels made with NAF-based resins with an 172 exemption from TPC oversight and formaldehyde emi ssions testing after an initial testing period 173 of 3 months for each product type. This initial testing period is required by the statute and is 174 designed to ensure that the products meet th e TSCA section 601(a)(7) formaldehyde emission 175 standards for products made with NAF-based resi ns. EPA does not propose reduced testing or 176 exemptions for products made with ULEF resins. 177
3. Costs and benefits . EPA has prepared an analysis of the potential costs and benefits 178 associated with this rulemaking. This analysis is summarized in greate r detail in Unit V.A. of this 179 proposal. The following chart provides a brief outlin e of the costs and benef its of this proposal: 180
181 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 quantif ied, the estimated annualized benefits (due to avoided incidence of asthma , eye irritation, na sopharyngeal cancer, and reduced female fertility) are $184 million to $278 million per year using a 3% discount rate, and $91 milli on to $137 million per year using a 7% discount rate. There are additiona l unquantified benefits due to other avoided health effects.*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 9 of 153 [RIN 2070–AJ92] Category Description Costs The annualized costs of this propose d rule are estimated at $72 million to $81 million per year using a 3% di scount rate, and $81 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 pr oducts. 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 ov er 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 envi ronmental protection for all affected populations without having any dispr oportionately high and adverse human health or environmental effects on any population, including any minority or low-income population or children. 182 B. What Action is the Agency Taking? 183 EPA is proposing a rule to implement the em ission standards and other provisions of the 184 Formaldehyde Standards for Composite Wood Produc ts Act, enacted as Title VI of Toxic 185 Substances Control Act (TSCA), 15 U.S.C. 2697. This proposed rule would implement 186 emissions standards established by TSCA Title VI for composite wood products sold, supplied, 187 offered for sale, or manufactured in the United States. Pursuant to TSCA section 3(7), the 188 definition of “manufacture” includes import

. Under Title VI, composite wood products are 189 identified as hardwood plywood, medium-density fi berboard, and particleboard. TSCA Title VI 190 also directs EPA to promulgate supplementary provisions to ensure compliance with the 191 emissions standards, including te sting requirements, laminated product provisions, provisions for 192 products made with no-added formaldehyde (NAF ) resins or ultra-low emitting formaldehyde 193 (ULEF) resins, product labeli ng requirements, chain of cu stody provisions for product 194 compliance documentation, recordkeeping, product inventory sell-thr ough dates, a product 195 stockpiling prohibition, enforcement, and third-party certification. 196*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 10 of 153 [RIN 2070–AJ92] EPA previously issued a proposal on the th ird party certification provisions (the TPC 197 Proposal) (Ref. 1). The TPC Pr oposal included provisions for th e accreditation of third-party 198 certifiers (TPCs) and general requirement s for accreditation bodies and TPCs. 199 The proposed requirements in this document are consistent, to the extent EPA deemed 200 appropriate and practical, with the requirements currently in effect in California under a 201 California Air Resources Board (C ARB) Airborne Toxic Control M easure (ATCM) (Ref. 2). By 202 aligning with the CARB ATCM requirements, EPA seeks to avoid differing or duplicative 203 regulatory requirements that woul d result in an increased burde n on the regulated community. 204 C. What is the Agency's Author ity for Taking this Action? 205 This proposal is being issued under the authority of Section 601 of TSCA, 15 U.S.C. 206
2697. 207 D. Formaldehyde Sources and Health Effects 208 Formaldehyde is a colorless, flammable gas at room temperature and has a strong odor. 209 It is found in resins used in the manufacture of composite wood products ( i.e. , hardwood 210 plywood, particleboard and medium-density fiber board). It is also found in household products 211 such as glues, permanent press fabrics, carpets , antiseptics, medicines, cosmetics, dishwashing 212 liquids, fabric softeners, shoe car e agents, lacquers, plastics and pa per product coatings. It is a 213 by-product of combustion and certa in other natural processes. Examples of sources of 214 formaldehyde gas inside homes include cigare tte smoke, unvented, fuel-burning appliances ( e.g. , 215 gas stoves, kerosene space heaters), and co mposite wood products made using formaldehyde216 based resins (Ref. 3). 217 Formaldehyde is an irritant and the National Toxicology Program recently classified it as 218 a known human carcinogen (Ref. 4). Depending on concentration, formaldehyde can cause eye, 219*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 11 of 153 [RIN 2070–AJ92] nose, and throat irritatio n, even when exposure is of relatively short duration. In the indoor 220 environment, sensory reactions and various sympto ms as a result of mucous membrane irritation 221 are potential effects. There is also evidence that formaldehyde may be associated with changes 222 in pulmonary function and increased risk of asthma in children (Ref. 3). In addition, 223 formaldehyde is a by-product of human metabolis m, and thus endogenous levels are present in 224 the body. 225 In 1991, EPA classified formaldehyde as a pr obable human carcinogen, “based on limited 226 evidence in humans, and sufficient evidence in animals,” and derived an inhalation unit risk 227 factor for assessing formaldehyde cancer risk. The risk factor and supporting documentation is 228 included in EPA’s Integrated Risk Information System (IRIS) assessment of formaldehyde (Ref. 229 5). Formaldehyde is also listed under section 112(b)(1) of the CleanAir Act (CAA) as a 230 hazardous air pollutant (HAP). The CAA requires EPA to regul ate emissions of HAPs from a 231 published list of industria l source categories. The EPA has de veloped lists of major and area 232 source categories that must meet emission standards for HAPs and has developed (or is 233 developing) standards for thes e source categories. The pl ywood and composite wood products 234 (PCWP) National Emission Standards for Hazardous Air Pollutants (NESHAP), codified at 40 235 CFR part 63, subpart DDDD, first issued in 200 4, is one of these standards. The PCWP 236 NESHAP controls emissions of formaldehyde a nd other HAPs (primarily acetaldehyde, acrolein, 237 methanol, phenol, and proprionaldehyde ) from various process units ( e.g. , blenders, dryers, 238 formers, board coolers, and pre sses) at PCWP facilities. 239 In 2004, the EPA determined that unit risk de rived from the Chemical Industry Institute 240 of Toxicology (CIIT; CIIT 1999) biologically -based cancer dose-response modeling of 241 formaldehyde-induced respiratory cancer (5.5 x 10-9 per micrograms per cubic meter ( μ g/m 3 )) 242*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 12 of 153 [RIN 2070–AJ92] better reflected the current state of the science than the 1991 IRIS cancer unit risk. The authors of 243 the CIIT modeling (Conolly et al. 2004) presented their risk estimates as values more 244 conservative than their maximum likelihood estim ates, and as “conservative in the face of 245 modeling uncertainties.” Conseque ntly, EPA used the CIIT value in risk assessments supporting 246 regulatory actions developed under the authority of the Clean Air Act. For example, in the 2006 247 rulemaking that reconsidered the PCWP NESHAP, OAR stated “[i]n the case of formaldehyde, 248 we have determined that the cancer potency derived using the approa ch developed by CIIT, 249 which has been peer reviewed by an external review panel sponsored by EPA and the Canadian 250 government, represents an appropria te alternative to EPA’s current IRIS URE [unit risk estimate] 251 for formaldehyde. Therefore, this potency represen ts the best available peer-reviewed science at 252 this time.” (Ref. 6, p. 8348). However, subseque nt research published by the EPA suggests that 253 the CIIT model was not appropriate and was very sensitive to unm easured parameters such that 254 very different estimates, including the 1991 IRIS assessment values, were consistent with the 255 available scientific data. Because the CIIT va lues do not reflect the uncertainty in estimates 256 using the data that are available, EPA has deci ded that those estimates do not reflect the broad 257 range of possible risk and thatthe data are not supportive of interpreting 5.5 X 10-9 per μg/m 3 as 258 providing a health-protective esti mate of human risk. Furtherm ore, the 1991 IRIS assessment 259 values are consistent with unit risks estimated by Schlosser et al. (2003) based on Benchmark 260 Dose modeling of the best available data at the time. In addition, the CIIT values do not address 261 the potential risk of increased leukemias or lymphomas. Thus, in 2010, EPA returned to using 262 the Agency’s current value on IRIS, 1.3 X 10-5 per μg/m 3 , which was last revised in 1991 as 263 better reflecting the current state of the science as to the potential human cancer risk of exposure 264 to formaldehyde (Ref. 7). 265*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 13 of 153 [RIN 2070–AJ92] The IRIS program in EPA’s Office of Re search and Development (ORD) recently 266 completed a draft assessment of the potential cancer and non-cancer hea lth effects that may 267 result from chronic exposure to formaldehyde by inhalation (Ref. 8). This draft IRIS assessment 268 was peer reviewed by the National Academy of Sc iences (NAS) with its review of the EPA’s 269 draft assessment completed in April of 2011 (Ref . 9). The EPA will fully address all the NAS 270 recommendations on formaldehyde . The draft formaldehyde IRIS assessment will be revised in 271 response to the NAS peer review and public co mments, and the final assessment will be posted 272 on the IRIS website. In the interim, we will pr esent findings using the 1991 IRIS value as a 273 primary estimate, and may also consider other in formation as the scien ce evolves. In addition, 274 EPA developed concentration-response functions to estimate the impact of exposure to 275 formaldehyde on eye irritation, asthma, and fema le reproductive toxicity for use in the non276 cancer benefits assessment to support this rule. The derivation of thes e concentration-response 277 functions, uncertainties, and EPA’s proposed ap proach for using the concentration-response 278 functions in the benefits assessment were extern ally peer reviewed in 2011 (Ref. 10). While the 279 economic analysis of cancer benefits is based on the unit risk, which is a reasonable upper bound 280 on the central estimate of risk, the non-cancer benefits were evaluated using the estimated 281 concentration-response functions which reflect the central effect estimates rather than upper 282 bounds. 283 E. History of this Rulemaking 284
1 . Overview of the CARB ATCM. In 2007, CARB issued an ATCM to reduce 285 formaldehyde emissions from hardwood pl ywood, medium-density fiberboard, and 286 particleboard, products referred to collectively as composite wood products. The CARB ATCM 287 was approved on April 18, 2008, by the California O ffice of Administrative Law and the first 288*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 14 of 153 [RIN 2070–AJ92] emission standards took effect on January 1, 2009. The CARB ATCM requires manufacturers to 289 meet formaldehyde emission standards for the co vered composite wood products that are sold, 290 offered for sale, supplied, or manufactured fo r use in California. The CARB ATCM also 291 requires that compliant composite wood products be used in finished goods sold, offered for sale, 292 supplied or manufactured for sa le in California. The CARB ATCM does not apply to hardwood 293 plywood and particleboard materials when inst alled in manufactured homes subject to 294 regulations promulgated by the United States Department of Housing and Urban Development 295 (HUD). 296 The CARB ATCM Phase 1 emission standards for hardwood plywood veneer core, 297 particleboard, and medium-density fiberboard took effect on January 1, 2009. The Phase 1 298 standard for hardwood plywood composite core took effect on July 1, 2009. The more stringent 299 Phase 2 standards first took effect on January 1, 2010, for hardwood plywood veneer core. 300 Phase 2 standards for medium-density fiberboard and particleboard took effect on January 1, 301 2011. The final Phase 2 standards to take eff ect under the CARB ATCM are for thin medium 302 density fiberboard on January 1, 2012, and for hardwood plywood composite core, which begins 303 July 1, 2012. 304 The CARB ATCM requires manufacturers of the regulated composite wood products to 305 demonstrate compliance with the emission standard s by having their emissions tests and quality 306 control processes certified by a TPC. TPCs must be approve d by CARB and must follow 307 specified requirements to verify that a manufact urer’s production meets applicable formaldehyde 308 emission standards and that the manufacturers follo w prescribed quality control practices. Once 309 approved by CARB, manufacturer s who use NAF resin systems are exempted from ongoing 310 testing requirements after three months of su ccessful testing in cooperation with a TPC. 311*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 15 of 153 [RIN 2070–AJ92] Manufacturers who use ULEF resin systems may be approved by CARB to reduce the frequency 312 of ongoing testing or, if they meet more stringe nt emissions requirements, may be exempted 313 from ongoing testing requirements for two years. The exemption based on ULEF resin is 314 granted after approval by CARB and six months of testing in cooperation with a TPC. 315 Manufacturers who receive exemptions based on NAF or ULEF resin can reapply every two 316 years for the exemption from TPC oversight and formaldehyde emissions testing by submitting 317 the chemical formulation of the resin and the resu lts of at least one primary or secondary method 318 test for each product type (based on a panel or set of panels randomly selected and tested by a 319 TPC). 320 Under the CARB ATCM, manufacturers of composite wood products are required to 321 label their covered products to identify them as meeting either the Phase 1 or Phase 2 emission 322 standards, or as being made with either NAF or ULEF resins. Manufactur ers must also include a 323 statement of compliance on the bill of lading or invoice for the composite wood product. The 324 CARB ATCM also imposes recordkeeping requ irements on manufacturers to document their 325 compliance with the regulations, and the records must be kept for 2 years. 326 The CARB ATCM requires distributors, importe rs, fabricators, and retailers to purchase 327 and sell panels and finished goods that comp ly with the applicable formaldehyde emission 328 standards. They must take “reasonable pruden t precautions,” such as communicating with their 329 suppliers, to ensure that the products they purchase are in co mpliance with the applicable 330 emission standards. Like manufacturers, distributors and importers must also provide a 331 statement of compliance on the composite wood or finished good product bill of lading or 332 invoice. Like manufacturers, distributors, importe rs, fabricators and retailers must also maintain 333 records documenting compliance for a period of 2 years. Importers and fabricators must label 334*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 16 of 153 [RIN 2070–AJ92] their finished goods as compliant with the applic able standards. The labeling requirement also 335 applies to distributors if the product is in some way modified. One example of a modification 336 that would make a distributor subject to the labeling requirement is if the distributor receives 337 composite wood product panels, cuts them into different shapes or sizes, and applies edge 338 banding to them. 339 More information on the specific requirement s of the CARB ATCM and the relationship 340 between the CARB ATCM and this proposal is presented in Unit III. of this preamble. 341
2. TSCA section 21 petition. On March 24, 2008, 25 organizations and approximately 342 5,000 individuals petitioned EPA unde r section 21 of TSCA to use its authority under section 6 343 of TSCA to adopt the CARB ATCM nationally. The petitioners asked EPA to assess and reduce 344 the risks posed by formaldehyde emitted from hardwood plywood, particleboard, and medium345 density fiberboard by exercising its authority under TSCA section 6 to adopt and apply 346 nationwide the CARB formaldehyde emissions re gulation for these composite wood products. 347 In addition, petitioners requested EPA to exte nd this regulation to include composite wood 348 products used in manufactured homes. 349 On June 27, 2008, EPA issued a Federal Register notice explaining the Agency’s 350 decision to grant in part and de ny in part the petitioners’ reque st (Ref. 11). EPA denied the 351 petitioners’ request to immediat ely pursue a TSCA section 6 rulemaking, stating that the 352 available information at the time was insuffi cient to support an ev aluation of whether 353 formaldehyde emitted from hardwood plywood, particleboard, and medium-density fiberboard 354 presents or will present an unreasonable risk to human health (incl uding cancer and non-cancer 355 endpoints) under TSCA section 6. As discussed in detail in the Federal Registernotice 356 announcing EPA’s response to the petition, EP A’s evaluation of the data provided by the 357*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 17 of 153 [RIN 2070–AJ92] petitioners revealed significant information gaps that would have needed to be filled to support 358 an evaluation of whether use of formaldehyde in these products presents or will present an 359 unreasonable risk under TSCA section 6. However, EPA did agree to initiate a proceeding to 360 investigate whether and what type of regulatory or other action might be appropriate to protect 361 against risks posed by formaldehyde emitted from pressed wood products. 362 Accordingly, on December 3, 2008, EPA issu ed an Advance Notice of Proposed 363 Rulemaking (ANPR) that announced EPA’s intention to investigat e whether and what regulatory 364 or other action might be appropr iate to protect against risks posed by formaldehyde emitted from 365 the products covered by the CARB ATCM as well as other pressed wood products. To help 366 inform EPA’s decision on the best ways to a ddress risks posed by formaldehyde emissions from 367 pressed wood products, the Agency requested pu blic comments and held six half-day public 368 meetings in Research Triangle Park, NC; Portland, OR; Chicago, IL; Dallas, TX; Washington, 369 DC; and New Orleans, LA. EPA received and reviewed comments submitted during the ANPR 370 comment period which can be found at regu lations.gov under docket number EPA-HQ-OPPT371
2008-0627. 372
3. The Formaldehyde Standards for Composite Wood Products Act. On July 7, 2010, 373 President Obama signed into law the Formaldehyde Standards for Composite Wood Products 374 Act, or Title VI of TSCA, 15 U.S.C. 2697. The statute establishes formaldehyde emission 375 standards that are id entical to the CARB ATCM Phase 2 standards for hardwood plywood, 376 medium-density fiberboard, and particleboard sol d, supplied, offered for sale, or manufactured in 377 the United States and directs EPA to issue fi nal implementing regulations by January 1, 2013. 378 Pursuant to TSCA section 3(7), the definition of “manufacture” includes import. TSCA Title VI 379 does not give EPA the authority to raise or lower the establis hed emission standards, and EPA 380*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 18 of 153 [RIN 2070–AJ92] must promulgate the implementing regulations in a manner that ensures compliance with the 381 standards. Congress directed EPA to considera number of elements for inclusion in the 382 implementing regulations, many of which are asp ects of the CARB program. These elements 383 include: (A) labeling, (B) chain of custody requ irements, (C) sell-through provisions, (D) ultra 384 low-emitting formaldehyde resins, (E) no-added fo rmaldehyde-based resins, (F) finished goods, 385 (G) third-party testing and certification, (H) a uditing and reporting of TPCs, (I) recordkeeping, 386 (J) enforcement, (K) laminated products, and (L) exceptions from the requirements of regulations 387 promulgated for products and components containing de minimis amounts of composite wood 388 products. 389 III. Provisions of this Proposed Rule 390 391 A. Scope and Applicability 392 Pursuant to TSCA Title VI, this proposed regulation would generally cover entities that 393 manufacture (including import), supply, sell, or offer for sale hardwood plywood, medium394 density fiberboard, and particleboard in the Unit ed States, whether in the form of a panel or 395 incorporated into a finished good. 396
1. Hardwood plywood. a. General definition . The statute defines the term “hardwood 397 plywood” as a hardwood or decorativ e panel that is intended for inte rior use and composed of an 398 assembly of layers or plies of veneer joined by an adhesive with a lumber, particleboard, 399 medium-density fiberboard (MDF), or hardboard core or any other sp ecial core or back material. 400 The statutory definition also re ferences a voluntary consensus standard for hardwood plywood, 401 American National Standards Institute/Hardwo od Plywood and Veneer Association HP-1-2009 402 (ANSI/HPVA HP-1) (Ref. 12). The statutory defi nition also describes f our specific exclusions 403 from the term: military-specified plyw ood, curved plywood, structural plywood, and wood- 404*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 19 of 153 [RIN 2070–AJ92] based structural-use panels. The latter two are described by referenc e to voluntary consensus 405 standards (Refs. 13, 14). EPA is proposing to incorporate the basic st atutory definition of 406 hardwood plywood and the statutory exclusions into the regulation with one modification. 407 Although the statutory definition of hardwood pl ywood does not specifically mention hardwood 408 plywood made with a veneer co re, TSCA section 601(b)(2)(A) establishes a formaldehyde 409 emission standard for hardwood plywood with a ven eer core. Therefore, in order to avoid any 410 potential confusion about whether hardwood plywood made with a veneer core is covered by the 411 regulations, EPA proposes to add “veneer core” to the list of cores in the definition of hardwood 412 plywood. 413 As part of this rulemaking, EPA convened a Small Business Advocacy Review (SBAR) 414 Panel. More information on the Panel process, including the final repo rt of the Panel, is 415 discussed in Unit V. of this preamble. Th e SBAR Panel made several recommendations on 416 definitions associated with the definition of hardwood plywood (Ref. 15). The definition of the 417 term in TSCA Title VI, and as proposed in th is rulemaking, only includes products that are 418 “panels.” Therefore, only hardwood plywood panels would be required to be tested and 419 certified. The SBAR Panel recommended that EPA reduce uncertainty in the regulated 420 community by clearly defining “panel” in a way that is based on the intent of the statute, and 421 considers trade usage and the limitations of curre nt test methods. EPA is proposing to define 422 panel as a flat or raised, rect angular piece of composite wood. The word “rectangular” in this 423 proposed definition is intended to encompass square pieces of composite wood as well. Raised 424 panels ( e.g. , raised panel cabinet doors) are specifically included in this proposed definition 425 because they can be produced using a similar ma nufacturing procedure as fl at panels, and have a 426 similar potential to emit formaldehyde. EPA re quests comment on test method limitations and 427*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 20 of 153 [RIN 2070–AJ92] the extent to which they should affect th e definition of the term “panel.” 428 EPA is also proposing a definition of “intende d for interior use.” Under TSCA Title VI, 429 in order for a product to be regul ated as hardwood plywood, it must be intended for interior use. 430 The SBAR Panel recommended that EPA develop a cl ear definition for “interior use” in order to 431 eliminate potential confusion in the regulated community. The Panel further recommended that 432 the definition be based on the intent of the statute and with c onsideration of how the hardwood 433 plywood is likely to be used and stored once in corporated into a fini shed good. EPA recognizes 434 that the primary purpose of TSCATitle VI is to reduce formaldehyde emissions from composite 435 wood products inside buildings and similar livin g areas, such as traile rs and recreational 436 vehicles. This is in contrast to other regulations, such as the PCWP NESHAP, which is designed 437 to reduce emissions from buildings and other faci lities. Therefore, EPA is proposing to define 438 the phrase “intended for interior use.” When applied to products, the phrase would mean 439 intended for use or storage inside a building or r ecreational vehicle, or co nstructed in such a way 440 that it is not suitable for long term use in a loca tion exposed to the elements. 441 b. Laminated products . For the purposes of TSCA Title VI, laminated products are a 442 subset of hardwood plywood. The statute de fines laminated product as a product made by 443 affixing a wood veneer to a particleboard, MDF, or veneer-core plat form. The statutory 444 definition further provides that laminated product s are component parts us ed in the construction 445 or assembly of a finished good, and that a lami nated product is produced by the manufacturer or 446 fabricator of the finished good in which the produ ct is incorporated. Congress granted EPA the 447 authority to modify the statutory definition of laminated product through rulemaking. EPA is 448 also directed to use all availabl e and relevant information to de termine whether the definition of 449 hardwood plywood should exempt engineered veneer or any laminated product. As discussed in 450*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 21 of 153 [RIN 2070–AJ92] this Unit, EPA is proposing to exempt some, but not all, laminated products from the definition 451 of hardwood plywood. EPA is further proposing to delete from the definition of laminated 452 product the provision that limits applicabil ity to producers of finished goods. 453
i. CARB ATCM . The CARB ATCM defines laminated product as a finished good or 454 component part of a finished good made by a fabr icator in which a laminate or laminates are 455 affixed to a platform. Under this definition, if the platform consists of a composite wood 456 product, the platform must comply with the a pplicable emission standards. The CARB ATCM 457 defines fabricator as any pers on who uses composite wood products to make finished goods, 458 including producers of laminated products. Laminate is defined under the CARB ATCM as a 459 veneer or other material affixed as a decorative surface to a platform. Under the CARB ATCM, 460 fabricators or laminated product manufacturers have different requirements compared with 461 requirements for manufacturers of composite wood products. In particular, fabricators do not 462 need to conduct formaldehyde emissions testing or comply with TPC certification requirements; 463 instead, fabricators need to ensure that th ey are using compliant composite wood products 464 through recordkeepi ng and labeling. 465 Under the CARB ATCM, a facility that affi xes wood veneers to purchased cores or 466 platforms and then sells the panels (often referre d to as a 3-ply mill) is considered a regulated 467 hardwood plywood manufacturer. In addition, a fac ility that manufactures its own platforms or 468 cores and attaches decorative face and back veneers is a regulated hardwood plywood 469 manufacturer, whether or not the facility sells the resulting hardwood plywood panels or uses 470 those panels to make a finished good. However, CARB considers a facility that affixes veneers 471 to purchased platforms and then uses the panels to make a finished good to be a fabricator or 472 laminated product manufacturer. For example, a cabinet manufacturer who affixes veneers to 473*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 22 of 153 [RIN 2070–AJ92] purchased composite wood platforms and then cuts the panels and assemble s them into cabinets 474 would be a fabricator or laminated product manuf acturer. In addition, CARB considers a facility 475 that produces architectural plywood or custom panels to be a fabricat or or laminated product 476 manufacturer. 477 ii. Other background information on laminated products. The statute includes laminated 478 products within the definition of hardwood plywood unless EPA specifically exempts them 479 through rulemaking. The provision authorizing EPA to exempt any laminated products, TSCA 480 section 601(a)(3)(C), directs EPA to consider all available and re levant information on the topic 481 in a rulemaking under TSCA section 601(d). Section 601(d) requires EPA to promulgate 482 regulations to implement the formaldehyde emi ssion standards of TSCA Title VI in a manner 483 that ensures compliance with the emission standards. 484 In determining whether to exempt any laminated products, EPA analyzed available 485 information on formaldehyde emissions. A 2003 Co mposite Panel Association (CPA) technical 486 bulletin presents information on formaldehyde emi ssion reductions resulting from the application 487 of different types of laminates ( e.g. , vinyl, paper, melamine, polyethylene) and coatings ( e.g. , 488 acrylate, acrylic, polyurethane) (Ref. 16). According to the bulle tin, documented emission 489 reductions ranged from approximately 50% to 95% compared with unlaminated or uncoated 490 products. However, the technical bulletin doe s not present emission reduction data for wood 491 veneer laminates. The bulletin notes that w ood veneer laminates have been shown to be 492 effective barriers for some volatile organic co mpounds (VOCs) but have only low to moderate 493 effectiveness as a barrier for formaldehyde, depe nding on the type of wood veneer used. This 494 may be related to the porosity of the wood ven eer, since according to th e technical bulletin, the 495 effectiveness of an emission barrier is determined by its basic permeability or porosity, as well as 496*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 23 of 153 [RIN 2070–AJ92] the integrity of the laminate or coating. Some woods are more porous than others. In addition, 497 the technical bulletin points out that wood veneers are frequentlyapplied to particleboard and 498 MDF using urea-formaldehyde adhesives, and thes e adhesives create the potential for another 499 source of formaldehyde emissions. EPA reque sts comments, information, and data on the 500 formaldehyde emissions of wood veneered lamina ted products, particul arly relative to the 501 emissions of comparable hardwood plywood products that are not consider ed laminated products 502 under the CARB ATCM. 503 As directed by the statute, EPA evaluated othe r available and relevant information. Some 504 of this information came to EPA through the SB AR Panel process, particularly through the 505 advice and recommendations of the Small Entity Re presentatives (SERs) to the SBAR Panel. 506 Several SERs submitted oral or written comments on potential provisions for laminated products 507 under TSCA Title VI. One SER argued that la minators add only about 1/10th the resin a 508 platform manufacturer adds ( e.g. , 1.1 pounds of resin per panel to attach the veneer versus 9.6 509 total pounds resin per panel) and that laminators use a minor, ifnot de minimis, amount of urea510 formaldehyde resin (Ref. 15). Furthermore, this SER stated that laminators using NAF resins 511 would not add at all to the formaldehyde emi ssions from the product (Ref. 15), but did not 512 provide data supporting this assert ion. Multiple SERs noted that if laminators are regulated 513 under TSCA Title VI, they would be paying for th eir products to be cert ified twice (Ref. 15). 514 According to these SERs, the composite wood plat form manufacturer woul d pay for certification 515 of the platform and pass that co st along to the laminator who pur chases the platform. If the 516 laminator is also regulated under TSCA Title VI, su ch that the laminator would have to have its 517 product certified again after the veneer is atta ched, then the laminated product would have two 518 certifications, one for the composite wood platform and one for the final product. These SERs 519*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 24 of 153 [RIN 2070–AJ92] contended that this would put th em at a distinct disadvantage w ith respect to manufacturers who 520 make the entire product in-house and therefore have only one certification for the final product. 521 Another SER commented that if laminated products were re gulated as hardwood plywood, it 522 could be costly and burdensome to thousands of small cabinet makers that laminate on a kitchen523 by-kitchen basis (Ref. 15). Several SERs sugge sted that many laminators laminate component 524 parts, not panels. In particular, it was suggest ed that the “raised pane l doors” that are used on 525 some cabinets do not meet the definition of a hardwood plywood panel under the ANSI/HPVA 526 HP-1 standard. Several SERs provided suggest ions to EPA on which laminators should be 527 exempted by rule; these included laminators not using urea-formaldehyde, laminators using a 528 certified composite wood platform or core, and cabinetmakers producing less than 10 million 529 square feet of laminated product. One SER sp ecifically suggested that EPA exempt from the 530 third-party certification and test ing requirements those laminators that certify that they use NAF 531 resins to attach veneers to compliant cores or otherwise include a statement of compliance under 532 penalty of perjury (Ref. 15). Many small manufac turers of laminated products have contended 533 that the testing requirements would be extremely burdensome for them if they are required to test 534 each product type because many of the smaller manufacturers and custom manufacturers produce 535 many different product types, often made to order. 536 In contrast, the Hardwood Plywood and Veneer Association (HPVA) informed EPA both 537 orally and in written comments submitted in response to EPA’ s 2008 ANPR that it considers the 538 CARB ATCM provision for fabricators to be a “giant loophole” for certain hardwood plywood 539 manufacturers (Ref. 17). HPVA’s comments state that “[t]he em ission standards must apply to 540 any and all hardwood plywood i rrespective of who manufactures the hardwood plywood. CARB 541 arbitrarily differentiates betw een a primary hardwood plywood manufacturer and a ‘fabricator’ 542*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 25 of 153 [RIN 2070–AJ92] who also manufactures hardwood plywood but is exempt from having to certify the hardwood 543 plywood they manufacture” (Ref. 17). HPVA also contends that th e processes that fabricators 544 and manufacturers of hardwood plywood use to lay up the veneers or press the face and back 545 onto a core or platform are identical as are the hardwood plywood panels that they produce. 546 iii. Proposed exemption for laminated products. Because of the potential for increased 547 formaldehyde emissions from attaching a wood ve neer to a platform, and because the final 548 laminated product can be indistinguishable from other products that ar e considered hardwood 549 plywood, EPA proposes to conclude that there is aninsufficient basis to categorically exempt all 550 laminated products from the definition of hardwood plywood based on information currently 551 available to EPA. Accordingly, EPA is propos ing to exempt laminated products in which a 552 wood veneer is attached to a co mpliant and certified platform using a NAF resin. EPA believes 553 the proposed exemption would be consistent wi th the statutory directive to promulgate 554 regulations in a manner that ensures compliance w ith the formaldehyde emission standards. If 555 the laminated product is made from a veneer co re platform that is certified as meeting the 556 emission standards for hardwood plywood, and a veneer that is attached with a NAF resin, it is 557 very unlikely that the laminated product would exceed the hardwood plywood standards. If the 558 laminated product is made from a particleboard or MDF platform that is certified as meeting the 559 applicable emission standards, and a veneer that is attached witha NAF resin, the final laminated 560 product may not meet the hardwood plywood standard, but it is very un likely that it would 561 exceed the applicable particleboard or MDF emis sion standard. EPA interprets its statutory 562 authority with respect to lami nated products to give EPA the discretion to exempt laminated 563 products from the definition of hardwood plyw ood if EPA has reasonable assurance that the 564 exempted products would comply with the emissi on standards in TSCA section 601(b)(2) for the 565*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 26 of 153 [RIN 2070–AJ92] relevant platform. EPA believes that the proposed exemption is responsive to comments from 566 SERs and other affected entitie s and that it is a reasonable approach to addressing policy 567 inequities between entities making similar pr oducts. EPA also believes that the proposed 568 exemption is protective of public health, because most laminated products made by attaching 569 veneers with NAF resins to compliant platforms would meet the emission standards for 570 hardwood plywood, and all would co mply with the standards for MDF or particleboard. EPA 571 specifically requests comments, information, and data relating to the proposed exemption. 572 To qualify for this exemption, laminate d product producers w ould be required to 573 maintain records demonstrating that they are us ing compliant platforms and NAF resins. These 574 records could include records of purchases of NAF resins and of compliant, certified platforms, 575 or, if the resins or platforms are made in-house, records demonstrating th at the platforms have 576 been certified by an accredited TPC and records demonstrating the pr oduction of NAF resins. 577 The statute defines the term “laminated produc t” as a product in which a wood veneer is 578 affixed to a particleboard platform, a medium-d ensity fiberboard platform, or a veneer-core 579 platform, and that is a component part used in the construction or assembly of a finished good. 580 The statute further defines a laminated product as being produced by the manufacturer or 581 fabricator of the finished good in which the product is incorporated. EPA is proposing a 582 definition of laminated product that is base d on the statutory definition with several 583 modifications. First, EPA is proposing to incl ude not only wood veneers, but also woody grass 584 veneers ( e.g. bamboo). Woody grass veneers are similar to wood veneers in that they can be 585 porous and therefore not effective barriers to formaldehyde emissions , and they can be affixed to 586 cores and platforms using urea-formaldehyde resi ns. In addition, including woody grass veneers 587 is consistent with the definition of hardwood plywood in the ANSI/HPVA HP-1 standard, which 588*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 27 of 153 [RIN 2070–AJ92] specifies that “–the decorative face veneer is made from a hardwood or softwood species or 589 woody grass.” To ensure greater clarity in the re gulatory provisions on this specific issue, EPA 590 is proposing to include a definition of veneer that is based on the ANSI/HPVA HP-1 standard, 591 but also refers to woody grasses a nd their specific structure. EP A is proposing to define veneer 592 as a thin sheet of wood or woody gr ass that is rotary cut, sliced, or sawed from a log, bolt, flitch, 593 block, or culm. EPA is also proposing to de fine woody grass as a plant of the family Poaceae 594 (formerly Gramineae ) with hard lignified tissues or woody parts. EPA requests comment on 595 these definitions and whether they are consistent with industry usage. 596 EPA’s proposed definition would not include a provision stating that a laminated product 597 is produced by the manufacturer or fabricator of the finished good in which the product is 598 incorporated. EPA does not believe that the a pplication of the third- party certification and 599 testing requirements under TSCA Title VI shoul d differ depending on the identity of the product 600 manufacturer. If the applicability limitation is retained, an entity that purchases certified 601 particleboard or MDF panels, cuts and otherwise prepares them fo r future use as kitchen cabinet 602 doors, attaches a hardwood veneer using a NAF re sin, and then sells them to a kitchen cabinet 603 manufacturer would not be cons idered a laminated product manuf acturer and would not qualify 604 for the proposed exemption from the definiti on of hardwood plywood. The door producer would 605 then have to comply with the third party certif ication and testing requirements applicable to 606 hardwood plywood manufacturers. In contrast, still under a scenario where the applicability 607 limitation is retained, if the enti ty also produced the kitchen cabi nets, considered a finished good 608 under the statute, then the entity would be a laminated product manufacturer and would be 609 exempt from the proposed testing and certificati on requirements. EPA has no reason to believe 610 that the formaldehyde emissions from the cab inet doors would differ depending on who makes 611*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 28 of 153 [RIN 2070–AJ92] the door. It may be that entities that produ ce the entire finished good in-house are smaller than 612 entities that only produce part of the good, such as cabinet doors, and thus it would be 613 significantly more burdensome for them to have to comply with the certification and testing 614 provisions of this proposal. However, EPA has no ev idence that this is the case. In addition, if 615 the emissions from the products are the same, EPA does not currently pe rceive a reason that 616 justifies additional testing, regardless of the si ze of the entity making the product. Considering 617 these factors, EPA’s proposed definition of laminated product does not include a provision 618 limiting applicability to the manuf acturer or fabricator of the fi nished good in which the product 619 is incorporated. EPA specifically requests comment s, information, and data on this aspect of the 620 proposed definition of laminated product. 621 In addition, to provide additional clarity fo r the regulated community and the public on 622 the applicability of this regulat ion, EPA is proposing to define “component part,” a term used in 623 the definition of “laminated pr oduct,” as a part that contains one or more composite wood 624 products and is used in the assembly of fini shed goods. EPA is also proposing to define 625 “fabricator” as an entity that incorporates composite wood products into component parts or into 626 finished goods. 627 TSCA Title VI also directs EPA to dete rmine whether the definition of hardwood 628 plywood should exempt engineered veneer. EPA in terprets the phrase “assembly of layers or 629 plies of veneer” in the definition of hardw ood plywood to include engi neered veneer. EPA 630 understands engineered veneer to be a veneer that is create d by dyeing and gluing together 631 veneer leaves in a mold to produce a block. The block is then sliced into leaves of veneer with a 632 designed appearance that is highly repeatable. EPA also understands that engineered veneer is 633 often made using urea-formalde hyde resin, and EPA expects that engineered veneer made with 634*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 29 of 153 [RIN 2070–AJ92] urea-formaldehyde resin will have formaldehyde emission rates that are similar to other 635 composite wood products made with urea-formal dehyde resin. EPA has not identified any 636 information justifying an exemp tion for engineered veneer, so this proposal does not include 637 such an exemption. 638
2. Particleboard and medium-density fiberboard. The statute defines the term 639 “particleboard” as a panel composed of cellulosic material in the form of discrete particles (as 640 distinguished from fibers, flakes, or strands) that are pressed toge ther with resin, as determined 641 under the voluntary consensus standard ANS I A208.1–2009 (Ref. 18). The statute further 642 excludes products specified in the “Voluntary Product Standard—Performance Standard for 643 Wood-Based Structural-Use Panels ” (Ref. 14). EPA is proposing to incorporate the statutory 644 definition of particleboard into the implementing regulations without change. 645 The statute defines the term “medium-dens ity fiberboard” as a panel composed of 646 cellulosic fibers made by dry forming and pressing a resinated fiber mat, as determined under the 647 voluntary consensus standard ANSI A208.2–2009 (Ref . 19). EPA is proposing to incorporate 648 the statutory definition of medium -density fiberboard without change. This proposed rule also 649 includes a separate definition for a related term, thin medium-density fiberboard. The statute 650 provides for a slightly-higher formaldehyde emission standard for thin medium-density 651 fiberboard, 0.13 ppm, than it does for regular medium-density fiberboard, 0.11 ppm. CARB 652 defines thin medium-density fiberboard as me dium density fiberboard that has a maximum 653 thickness of eight millimeters. The voluntary consensus standard for medium-density 654 fiberboard, ANSI A208.2–2009 (Medium Density Fiberboard (MDF) Fo r Interior Applications), 655 defines thin medium-density fiberboard as medium -density fiberboard with a thickness less than 656 or equal to 8 millimeters or 0.315 inches (Ref. 19) . EPA is proposing to use the same definition 657*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 30 of 153 [RIN 2070–AJ92] as the voluntary consensus standard because it is consistent with CARB and EPA believes that it 658 reflects the common industry understanding of the term. 659 3. Statutory exemptions. TSCA section 601(c) exempts a number of products from the 660 formaldehyde emission standards for composite wood products. These exemptions include, but 661 are not limited to, hardboard, stru ctural plywood, structural pane ls, oriented strandboard, glued 662 laminated lumber, prefabricated wood I-joi sts, finger-jointed lumber, wood packaging, 663 composite wood products used inside new vehicl es other than recreational vehicles, windows 664 that contain less than five pe rcent by volume of composite w ood products, exterior doors and 665 garage doors that contain less than three pe rcent by volume of composite wood products, and 666 exterior and garage doors that are made with NAF-based or ULEF-based resins. EPA proposes 667 to incorporate these exemptions into the im plementing regulations without modification. 668 The statute exempts any finished good that ha s previously been sold or supplied to an 669 individual or entity that purch ased or acquired the finished g ood in good faith for purposes other 670 than resale. The statute pr ovides two examples: antiques and secondhand furniture. EPA’s 671 interpretation of this exemption is such that on ce a finished good, such as a piece of furniture, is 672 sold to an end user, the piece of furniture is no lo nger subject to TSCA Title VI. Thus, dealers in 673 secondhand furniture would not have any oblig ations under this proposed rule. 674 With respect to exterior and garage doors made with NAF-based or ULEF-based resins, 675 these resin types are defined elsewhere in the stat ute, with reference to both the composition of 676 the resin and the formaldehyde emissions of composite wood products made with the resin. EPA 677 interprets these statutory provisi ons to mean that, in order to be eligible for this exemption, 678 exterior and garage doors must comply with th e emission standards contained in the statutory 679 definitions of NAF-based resins and ULEF-based resins, as measured by the testing described in 680*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 31 of 153 [RIN 2070–AJ92] the statutory definitions. However, EPA is not proposing to require that manufacturers, 681 fabricators, distributors, or retailers of these doors comply with the third-party certification, 682 recordkeeping, or labeling provisions of the TS CA Title VI implementing regulations. EPA 683 requests comments on whether any additional clarifications are needed, or whether 684 manufacturers, fabricators, dist ributors, or retailers of such doors should be required to comply 685 with any of the provisions of the TSCA Title VI implementing regulations. For example, should 686 manufacturers of these doors be required to maintain records to demonstrate that they are 687 purchasing or manufacturing NAF -based or ULEF-based resins or composite wood products 688 made with NAF-based or ULEF-based resins and th at the required testing ha s been conducted? 689 While many of the exemptions are defined w ithin the text of the exemption itself, by 690 reference to an applicable volunt ary consensus standard or other parameter, hardboard is not so 691 defined. Rather, TSCA Title VI provides that “the term ‘hardboard’ has such meaning as the 692 Administrator shall establish, by regulation pursuant to subsection (d).” 693 Under the CARB ATCM, hardboard is define d as “a composite panel composed of 694 cellulosic fibers, made by dry or wet forming and hot pressing of a fiber mat with or without 695 resins, that complies with one of the follo wing ANSI standards: ‘Basic Hardboard’ (ANSI 696 A135.4-2004), ‘Prefinished Hardboard Paneling ’ (ANSI A135.5-2004), or ‘Hardboard Siding’ 697 (ANSI A135.6- 2006)” (Refs. 20-22). The CARB ATCM further excludes hardboard from the 698 definition of composite wood product. Accordi ngly, hardboard is not su bject to the emission 699 standards in the CARB ATCM. 700 EPA understands that the definition of hardboa rd is being reevaluated by industry in the 701 context of a pending revision to the voluntary consensus standard for basic hardboard, ANSI 702 A135.4 (Ref. 20). EPA was informed that fina l approval of revisions to ANSI A135.4, along 703*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 32 of 153 [RIN 2070–AJ92] with revisions to the prefinished hardboard paneling standard, ANSI A135.5 and the hardboard 704 siding standard, ANSI A135.6, are anticipated by the end of 2011 (Refs. 20-22). 705 The Composite Panel Association, sponsor of the ANSI standard, informed EPA in its 706 comments to the SBAR Panel that the Associat ion intends to vote on a proposed revision to 707 ANSI A135.4 that includes the following definition: 708 Hardboard is a panel manufactured primarily from inter-felted li gnocellulosic fibers 709 consolidated under heat and pressure in a hot press to a density of 500 kg/m 3 (31 lbs/ft 3 ) 710 or greater by: 711 (A) a wet process, or 712 (B) a dry process that uses: 713 (a) a phenolic resin, or 714 (b) a resin system in which there is no added formaldehyde as part of the resin 715 cross-linking structure. 716 Other materials may be added to improve certain properties, such as stiffness, hardness, 717 finishing properties, resistance to abrasion and moisture, as well as to increase strength, 718 durability, and utility. (Ref. 15) 719 EPA is concerned that, because hardboard and thin medium-density fiberboard share 720 similar appearances and end uses, a broad defini tion of hardboard could lead to thin medium721 density fiberboard being errone ously categorized as hardboard and exempted from the emission 722 standards. This is contrary to the clear intent of TSCA Title VI which specifically includes an 723 emissions standard for thin medium-density fibe rboard. EPA believes that the definition in the 724 proposed ANSI revision, quoted above, would address this concern. 725*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 33 of 153 [RIN 2070–AJ92] EPA is proposing to base its definition of hardboard on the proposed revisions to ANSI 726 A135.4. EPA’s proposal defines har dboard as a panel composed of cellulosic fibers made by dry 727 or wet forming and hot pressing of a fiber mat, either without resins, orwith a phenolic resin 728 ( e.g. , a phenol-formaldehyde resin) or a resin system in which there is no added formaldehyde as 729 part of the resin cross-linki ng structure, as determined under one of the following ANSI 730 standards: ANSI A135.4 (Basic Hardboard), ANS I A135.5 (Prefinished Hardboard Paneling), or 731 ANSI A135.6 (Hardboard Siding). EPA believes th is is consistent with TSCA 601(d) which 732 requires EPA to promulgate regulations in a manner that ensures compliance with the statutory 733 emission standards. 734 In general, EPA believes that composite wood products made with phenol-formaldehyde 735 resins have lower formaldehyde emission rates than do products made with urea-formaldehyde 736 resins. In fact, phenol-formaldehyde resin is me ntioned in TSCA Title VI as a resin that may 737 qualify for ULEF resin status. EPA has some data on formaldehyde emissions from hardboard 738 made with phenol-formaldehyde resins (Refs. 23, 24). The data appear to support the idea that 739 products made with phenol formaldehyde resins have lower formaldehyde emission rates. EPA 740 requests comment, information, and data on har dboard made with phenol-formaldehyde resins 741 and whether such products should be included w ithin the definition of the term hardboard, 742 thereby exempting such products from th e statutory emission standards. 743 4. Other definitions . EPA is also proposing to define a number of other terms used in the 744 proposed regulations to ensure th at the meaning and applicabilityof the regulatory requirements 745 are clear. These terms include “distributor,” “ importer,” “purchaser,” and “retailer.” EPA is 746 proposing to define “distributor ” as an entity that supplies composite wood products, component 747 parts, or finished goods to others. The term “i mporter” would be define d, consistent with the 748*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 34 of 153 [RIN 2070–AJ92] definition of the term “manufacturer” in TSCA s ection 3 and the definition of “importer” in 40 749 CFR 710.3, as an entity that imports composite wood products, component parts that contain 750 composite wood products, or finished goods that contain composite w ood products into the 751 customs territory of the United States (as defi ned in general note 2 of the Harmonized Tariff 752 Schedules of the United States). The term includes the entity primarily liable for the payment of 753 any duties on the products, or anauthorized agent acting on the entity’s behalf. The term 754 “purchaser” would be defined as an entity that acquires composite wood products in exchange 755 for money or its equivalent. Finally, “retailer” w ould be defined as an entity that generally sells 756 smaller quantities of composite wood products directly to consum ers. EPA requests comment on 757 the utility of these definitions, whether these defi nitions comport with typi cal industry usage, and 758 whether any other general terms should be de fined in EPA’s regulation. 759 B. Formaldehyde Emission Standards 760 TSCA Title VI establishes formaldehyde emission standards for composite wood 761 products (hardwood plywood, particle board, and medium-density fi berboard) so that beginning 762 July 1, 2012 or 180 days after the final implementing regulations are promulgated, whichever is 763 later, the standards mirror the CARB ATCM Phase 2 emission levels. The statute also provides 764 for emission standards that woul d apply after the effective date of the implementing regulations 765 but before July 2011, or before July 2012. Howe ver, the July 2011 date has already passed, and 766 EPA does not anticipate issuing a final rule with an effective date before July 2012, so these 767 interim standards are not likely to ev er take effect. 768 When the later TSCA Title VI emission standards take effect 180 days after 769 implementing regulations are promulgated, the emission limit for hardwood plywood will be 770 0.05 parts per million (ppm) formaldehyde. For me dium-density fiberboard, the limit will be 771*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 35 of 153 [RIN 2070–AJ92] 0.11 ppm. For thin medium-density fiberboar d, the limit will be 0.13 ppm. For particleboard, 772 the limit will be 0.09 ppm. The statute does not give EPA authority to modify these emission 773 standards. 774 Because each of the two statutory emission standards for hardwood plywood is 0.05 ppm 775 for any final rule taking effect after July 1, 2012, the proposed regul ation merely states that the 776 emission standard for hardwood plywood is 0.05 ppm. With this language, EPA intends that any 777 product that meets the definition of hardw ood plywood is subject to the hardwood plywood 778 emission limit, regardless of the makeup of its co re. EPA notes that the statutory definition of 779 hardwood plywood includes a number of different types of cores that may not appear to 780 expressly fit under the statutory emission standards for veneer co re and composite core. Yet, 781 EPA does not believe that Congress intended to exempt hardwood plywood made with a lumber 782 core, for example, from the emission standards of TSCA Title VI in part because the statute says 783 that “the emission standards... shall apply to hardwood plywood.” Therefore, EPA proposes an 784 emission standard for hardwood plywood of 0.05 ppm, given that the two statutory emission 785 standards for hardwood plywood are ultimately identical. EPA requests comment on whether 786 and how this revision would aff ect entities making laminated products with lumber cores or any 787 other special core material. 788 C. Product Certification in General 789 Under this proposal, composite wood products sold, supplied, offered for sale, or 790 manufactured (including imported) within the United States woul d have to be certified, unless 791 they are specifically exempted by TSCA Title VI or excluded by the proposed rule. In general, 792 this means that the formaldehyde emission levels from the composite wood products would have 793 been demonstrated to be below the emission standards in TSCA Title VI. This demonstration 794*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 36 of 153 [RIN 2070–AJ92] would be through a combination of testing perf ormed by an accredited third-party certifier 795 (TPC), and repeated on a quarterly basis, and mo re frequent quality control testing performed by 796 the maker of the composite wood product, an accr edited TPC, or a contra ct laboratory. Specific 797 proposed requirements for this testing are disc ussed in Unit III.D. of this preamble. 798 EPA is proposing to require makers of com posite wood product panels to apply to an 799 accredited TPC for product certification, and to design and establish a quality control program, 800 including testing, that is both approved by the accredited TPC and specific to the panel producer. 801 For each product type to be certified, the pane l producer would have to have at least one 802 quarterly test result and 3 months of quality control testing da ta that demonstrate that the 803 formaldehyde emission rates of the product are below the emission standards established by 804 TSCA Title VI and discussed in greater detail inUnit III.C. of this preamble. Uncertified 805 product produced after the manuf actured-by date, discussed in Un it III. I. of this preamble, 806 would not be permitted to be sold, supplied, or offered for sale in the United States. Under this 807 proposal, products currently certified by appr oved TPCs under the CARB ATCM would be 808 considered certified for purposes of TSCA Title VI. However, in the TPC Proposal, EPA 809 proposed to allow CARB-approved TPCs 1 year to become accredited under TSCA Title VI. If 810 that provision is finalized as proposed, a panel producer whose TPC does not become accredited 811 under TSCA Title VI in a timely manner would have to apply to an accredited TPC to be able to 812 continue to make certified product after the manufactured-by date. EPA requests comment on 813 this approach for CARB-certified products and whether a different approach or additional 814 requirements should be imposed for these products. 815 D. Formaldehyde Emissi on Testing Requirements 816 TSCA Title VI requires that composite wood products be measured for compliance with 817*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 37 of 153 [RIN 2070–AJ92] the statutory emission standards by quarterly te sts pursuant to test methods ASTM E-1333-96 or 818 ASTM D-6007-02 (Ref. 25, 26). TSCA Title VI al so requires that quali ty control tests be 819 conducted pursuant to ASTM D-6007-02, ASTM D-5582, or such other test methods as may be 820 established by EPA through rulemaking (Ref. 26, 27). Under the statute, test results conducted 821 using any test method other than ASTM E-1333-96 (2002) must include a showing of 822 equivalence by means that EPA must establish through rulemaking. Under TSCA Title VI, EPA 823 must also establish, through rulemaking, the number and frequency of tests required to 824 demonstrate compliance with the emission standards. This unit of the pr eamble discusses EPA’s 825 proposed rulemaking on each of these statutory elements. 826
1. CARB ATCM Formaldehyde Testing Requirements. The CARB ATCM requires that 827 compliance with the emission standards for hardwood plywood, medium-density fiberboard, and 828 particleboard be demonstrated by conducting emissi on tests, verified by th ird party certifiers 829 (TPCs) using ASTM E-1333-96 (2002) (large cham ber test method), referred to as the primary 830 test method, or ASTM D-6007-02 (small chamber test method), referred to as the secondary test 831 method. If ASTM D-6007-02 is used, equiva lence between ASTM D-6007-02 and ASTM E832 1333-96 (2002) must be established at least once each year by the TPC. The CARB ATCM 833 specifies minimum requirements for demonstrat ing equivalence in se ction 93120.9(a)(2)(B) of 834 the ATCM; demonstration of equivalence for the purposes of this proposa l is discussed in Unit 835 III.D.3. of this document. The CARB ATCM allows alternate secondary test methods to be used 836 if they are demonstrated to provide equivale nt results to those obt ained using ASTM E-1333-96 837 (2002) (following the requirements in section 93120.9(a)(2)(B)) and are approved in writing by 838 the CARB Executive Officer, following submission of an application for approval. The CARB 839 ATCM also requires quality control testing using a test method that is correlated to the primary, 840*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 38 of 153 [RIN 2070–AJ92] secondary, or alternate secondarytest method. The CA RB ATCM also provides that all panels 841 must be tested in an unfinished condition, prior to the application of a finishing or topcoat. 842 The CARB ATCM requires that an initial qua lifying primary or secondary method test be 843 conducted on each product type, from each prod uction line of each facility; however, it also 844 allows a manufacturer to group two or more pr oduct types together if they have “similar 845 emission characteristics.” The emissions from each product type from each production line 846 cannot exceed the applicable standard. If an initial qualification test exceeds the emission 847 standard, certification lapses on all of the products repres ented by that product group. 848 Under the CARB ATCM, after the initial qu alifying test, primary or secondary method 849 tests must be conducted at least quarterly. Fo r particleboard and medi um-density fiberboard, 850 these quarterly tests must be conducted on randomly selected samples of each product type 851 (unless approved NAF or ULEF resi ns are used). Again, products can be grouped for testing, but 852 if a quarterly test exceeds the emission standa rd, certification lapses on all of the products 853 represented by that grouping. For hardwood plywood, a primary or secondary method test is 854 required at least quarterly (unl ess approved NAF or ULEF resins are used) on randomly selected 855 samples of the hardwood plywood product determin ed by the TPC to have the highest potential 856 to emit formaldehyde. 857 The CARB ATCM also requires “small scale” quality control tests that must be 858 conducted at the composite wood product manufactu ring facility, a contra ct laboratory, or a 859 laboratory operated by an approved TPC. Thes e tests must be conducted on all lots of each 860 product type being certified unless prior notice is given, and tests mu st be reported to the TPC. 861 The CARB ATCM lists the following as appr oved small scale test methods: ASTM D 5582-00 862 (desiccator), ASTM D-6007-02 (s mall chamber), and alternative tests that can be shown to 863*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 39 of 153 [RIN 2070–AJ92] correlate to the primary or secondary method tests and are approved by the CARB Executive 864 Officer. CARB has approved the following for use as alternative small scale test methods: EN 865 717-2 (Gas Analysis), DMC (Dynamic Micro Ch amber), EN 120 (perforator), and JIS A 1460 866 (24-hr Desiccator). CARB does not expressl y permit the grouping of product types for quality 867 control testing. However, CARB does provide TP Cs and manufacturers withsome flexibility in 868 interpreting the term “pr oduct type” to allow sim ilar products, particularly those made with the 869 same resin system, to be considered to belong to the same product type for quality control testing 870 purposes (Ref. 2) 871

a. Basic testing frequency requirements for particleboard and medium-density fiberboard 872
under the CARB ATCM. The CARB ATCM requires manufact urers of particleboard and 873 medium-density fiberboard (that don’t qualify for NAF or ULEF TPC exemption or reduced 874 testing) to conduct routine small scale quality control tests at l east once per shift (8 or 12 hours, 875 plus or minus one hour of production) for eachproduction line for each product type. Quality 876 assurance and quality control requirements for the purposes of this proposal are discussed in Unit 877 III.E. of this preamble. Quality control tests must also be conducted whenever a product type 878 production ends, even if eight hours of production has not been reached, or whenever one of the 879 following occurs: 1) the resin formulation is chan ged so that the formaldehyde to urea ratio is 880 increased; 2) an increase by more than ten per cent in the amount of formaldehyde resin used, by 881 square foot or by panel; 3) a decrease in the designated press tim e by more than 20 percent; or 4) 882 the Quality Control Manager or Quality Control Employee has reason to believe that the panel 883 being produced may not meet the requirements of the applicable standards. The CARB ATCM 884 allows for reduced testing for particleboard and medium-density fiberboard when the facility 885 demonstrates consistent operations and low variability of test values to the satisfaction of the 886*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 40 of 153 [RIN 2070–AJ92] TPC based on criteria established by the TPC. Te sting frequency still must occur at least once 887 per 48-hour production period. 888 b. Basic testing frequency requirements for hardwood plywood under the CARB ATCM. 889 The CARB ATCM requires manufacturers of ha rdwood plywood (that don’t qualify for NAF or 890 ULEF TPC exemption or reduced testing) to cond uct routine small scale quality control tests on 891 each product type and product line based on producti on at the facility with the following testing 892 frequency: at least one test pe r week per product type and produc t line if the weekly hardwood 893 plywood production is less than 200,000 square feet; at least two te sts per week per product type 894 and product line if the week ly hardwood plywood production is between 200,000 and 400,000 895 square feet; and at least four times per week per product type and product line if the weekly 896 hardwood plywood production is greater than 400,000 square feet. The CARB ATCM also 897 requires that quality control samp les must be analyzed within a period of time specified in the 898 manufacturer’s quality control manual to avoid distribut ion of non-complying lots. 899
2. Proposed general testing requirements . As an initial matter, EPA is proposing to 900 define several terms that would be used in the testing requirements. EP A is proposing to use the 901 term “panel producer” to refer to those facilities thatactually make composite wood products or 902 laminated products, excluding importers that do not also make the products. Because TSCA § 3 903 defines the term “manufacture” to include import, EPA believes that using another term would 904 clarify the regulation by referring to facilities that actually ma ke the products regulated under 905 TSCA Title VI for the purposes of the testing, certification, and recordkeeping requirements. 906 Under this proposal, some laminated products would not be hardwood plywood, and the act of 907 making those products would, therefore, not be subject to the tes ting and certification 908 requirements. However, EPA believes that ther e are some laminated products that cannot be 909*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 41 of 153 [RIN 2070–AJ92] made in such a way as to render them exempt from the testing and certif ication requirements. 910 EPA is proposing to define “panel producer” as a manufacturing plant or other facility that 911 manufactures (excluding imports) composite wood products on the premises. EPA is also 912 proposing to incorporate within this definition a statement that this includes laminated products 913 not excluded from the definition of hardw ood plywood. EPA requests comment on whether the 914 term “panel producer” should apply separately to each specific f acility owned or operated by an 915 entity that produces composite wood products for the purposes of the test ing, certification and 916 recordkeeping requirements, or wh ether the term “panel producer ” should apply to the entire 917 business entity that produces the composite wood products. For example, should panel 918 producers be required to have a quality control manual for each separate facility? 919 EPA is proposing to incorporate the CARB de finition of the term “product type” with 920 some modifications. The term “manufacturer” in the CARB definition would be replaced by the 921 term “panel producer.” Under this proposal, “product type” means a type of composite wood 922 product that differs from another made by th e same panel producer, based on wood type, 923 composition, thickness, number of plies (if hardwood plywood), or re sin used. In order to make 924 it clear that TPCs and ma nufacturers have the flexibility to treat similar products similarly, the 925 proposed definition includes a statement that pr oducts with similar emissions made with the 926 same resin systems may be considered to be the same product type. 927 EPA is also proposing to define “lot” to mean a particular lot or batch of a product type 928 made during a single production r un. EPA believes that this is common industry usage of the 929 term. Likewise, EPA is proposing to define “p roduction line” as a set of operations and physical 930 industrial or mechanical equipment used to produce a composite wood product. EPA requests 931*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 42 of 153 [RIN 2070–AJ92] comment on the utility of these de finitions, and whether other terms should also be defined, such 932 as “production run.” 933 In addition, entities conducti ng formaldehyde testing woul d be required to use the 934 procedures, such as testing condi tions and loading ratios, specifie d in the method being used. As 935 required by CARB, EPA is also proposing to requ ire that all equipment used in formaldehyde 936 testing be calibrated in accordance with the equipment manufacturer’s instructions. EPA 937 believes that this requirement is important for ensuring that the equipm ent is working properly 938 and that accurate results are obtained. 939

a. Quarterly testing requirements. EPA is proposing to require that accredited TPCs 940 conduct the quarterly tests required by TSCA Title VI. The statute requi res these tests to be 941 performed using ASTM E-1333-96 (2002) or, upon a s howing of equivalence as discussed in this 942 Unit, ASTM D-6007-02 (Refs. 25, 26). In the TP C Proposal, using the authority provided by 943 TSCA section 601(d)(5), EPA proposed to incorporate ASTM E-1333-10, the most recent 944 version of this method, into the testing requirement s, rather than the 2002 version (Refs. 1, 28). 945 EPA will review the comments received on th e TPC proposal and determine whether to 946 incorporate ASTM E-1333-10 into the testing requirements in place of ASTM E-1333-96 (2002) 947 before issuing the final rule. 948 EPA is proposing to require thatthe TPC laboratories test randomly chosen samples from 949 a single lot that is ready for shipment by th e panel producer. Neither the top nor bottom 950 composite wood product of a bundle would be se lected because the emissions from these 951 products may not be representative of the bundl e. For particleboard and medium-density 952 fiberboard, the proposed rule w ould require quarterly tests to be conducted on randomly selected 953 samples of each product type (unless they qualifyfor reduced testing based on NAF resin). For 954*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 43 of 153 [RIN 2070–AJ92] hardwood plywood, the proposed rule would require quarterly tests to be conducted on randomly 955 selected samples of the hardwood plywood product determined by the TPC to have the highest 956 potential to emit formaldehyde (unless they qua lify for reduced testing based on NAF resins). 957 As under the CARB ATCM, this proposal w ould allow product types to be grouped for 958 quarterly testing. EPA is proposing to allo w accredited TPCs to approve the grouping of 959 products with similar characterist ics, particularly those characte ristics that are most likely to 960 affect emissions, such as the type of wood or the resin system(s ) used to make the composite 961 wood product. For hardwood plywood, other factor s that are likely to influence formaldehyde 962 emissions are core type, pr ess time, veneer type ( i.e. , species), and whether or not the core is 963 certified. EPA requests comment on the approp riate criteria for grouping product types for 964 quality control testing, given the statutory direc tive to promulgate implementing regulations in a 965 manner that ensures compliance with the emission standards. For example, one possibility could 966 be to allow panel producers and acc redited TPCs to identify the produc ts that are likely to have 967 the highest emissions and to test those products. 968 Samples selected for quarterly testin g would have to be dead-stacked ( i.e. , closely 969 stacked) or air tight wrapped between the time of sample selection and the start of test 970 conditioning (as specified in ASTM E-1333-10 or , as appropriate, AS TM D-6007-02). Samples 971 would have to be labeled as such, signed by th e TPC, bundled air tight, wrapped in polyethylene, 972 protected by cover sheets, and promptly shippe d to the laboratory testing facility. EPA is 973 proposing to require conditioning to begin as soon as possible, but no more than 30 days after 974 production. This requirement, also included inthe CARB ATCM, is designed to prevent panel 975 producers from holding composite wood products to al low them to off-gas. TPCs must notify 976 panel producers in writing within 24 hours of a failed quarterly test result. Lots represented by a 977*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 44 of 153 [RIN 2070–AJ92] failed quarterly test result, woul d have to be handled as non-complying lots in accordance with 978 the proposed requirements discussed in Unit III.D .4. If lots were grouped for quarterly testing, 979 all lots in the group represented by a failed quarterly test result w ould have to be treated as non980 complying lots. EPA requests comment on all asp ects of these sampling requirements, including 981 whether the 30 day require ment is appropriate. 982 b. Quality control test methods . EPA is proposing that in addition to ASTM D-6007-02 983 and ASTM D-5582, the following methods would also be allowed for quality control testing 984 (with a showing of equivalence as described inthis Unit): EN 717-2 (Gas Analysis Method) 985 (Ref. 29), DMC (Dynamic Micro Chamber) (Ref. 30), EN 120 (Per forator Method) (Ref. 31), 986 and JIS A 1460 (24-hr Desiccator Method) (Ref. 32). EPA believe s that these are appropriate 987 methods for quality control testing based on CA RB’s evaluation and approval of these methods 988 as alternative small scale test methods, and test results using these methods have been 989 demonstrated to have adequate correlations with test results us ing ASTM E-1333-10. EPA 990 proposes to establish these addi tional methods pursuant to Secti on 601(b)(3)(A)(ii) for quality 991 control testing; as a general matter, EPA does not endorse any particul ar method over others. 992 Other methods may also be appropriate for quali ty control testing, suchas EN 717-1 (Chamber 993 Method), EN 717-3 (Flask Method), ISO/ DIS 12460-1(1-Cubic-Meter Chamber Method), 994 ISO/DIS 12460-2 (Small-Scale Chamber Method), ISO/DIS 12460-3 (Gas An alysis Method), or 995 ISO/DIS 12460-4 (Desiccator Method). EPA re quests comment on whether these methods 996 should also be allowed for quality contro l testing. 997

c. Proposed quality control te sting frequency for partic leboard and medium-density 998 fiberboard that do not qualify for re duced testing based on NAF resins. EPA is proposing to 999 require the same quality control testing fre quency for particleboard and medium-density 1000*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 45 of 153 [RIN 2070–AJ92] fiberboard as is required under the CARB ATCM. This proposal would require quality control 1001 tests at least once per shift (8 or 12 hours, plus or mi nus one hour of production) for each 1002 production line for each product type. Quality control tests would also be conducted whenever a 1003 product type production ends, even if eight hou rs of production has not been reached, or 1004 whenever 1) there is a significant change to the resin formulation, e.g. , an increase in the 1005 formaldehyde-to-urea ratio; 2) ther e is an increase by more than ten percent in the amount of 1006 formaldehyde resin used; 3) there is a decrease in the designated press time by more than 20 1007 percent; or 4) the quality contro l manager or quality control empl oyee has reason to believe that 1008 the panel being produced may not meet the requirements of the applicable standards. 1009 Also consistent with the CARB ATCM, EP A is not proposing to allow the grouping of 1010 products for quality control tes ting purposes. However, EPA is proposing to allow accredited 1011 TPCs and panel producers some flexibility in determining which products constitute a product 1012 type. CARB’s guidance to its TPCs on defi ning product type incl ude mention of those 1013 characteristics most likely to affect product em issions, such as type of wood or the resin 1014 system(s) used to make the composite w ood product. Again, for hardwood plywood, these 1015 factors include core type, press time, veneer type ( i.e. , species), and whether or not the core is 1016 certified. 1017 EPA is proposing to allow reduced quality control testing requir ements similar to 1018 CARB’s for particleboard and medium-density fi berboard when the pane l producer demonstrates 1019 consistent operations and low variability of test values. Under the EPA proposal, the panel 1020 producer would be required to request approval for reduced quality cont rol testing from an 1021 accredited TPC. If approved, quality control testi ng would still have to occur at least once per 1022 48-hour production period. Unlik e CARB, EPA is proposing to establish criteria for 1023*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 46 of 153 [RIN 2070–AJ92] demonstrating consistency and low variability. Under EPA’s proposed requirements, which are 1024 based on a Composite Panel Association volunt ary program, a 30 panel running average would 1025 be maintained (Ref. 33). If the 30 panel runni ng average remains two standard deviations below 1026 the designated Quality Control Limit (QCL) for the previous 60 consecutive days or more, 1027 testing frequency could be redu ced to one test per 24 hour pro duction period. When the 30 panel 1028 running average remains three standard deviations below the QCL for the previous 60 days or 1029 more, testing frequency could be reduced to once every 48 hour production period. The QCL 1030 would be the quality contro l test value that is the correlative equivalent to the emission standard 1031 based on the ASTM E-1333-10 method. The QCL is established by using a simple linear 1032 regression where the dependent variables (Y-axis) are the quality control test results and the 1033 independent variables (X-axis) are the ASTM E-1333-10 test results. More information on the 1034 establishment of the QCL can be found in the TP C Proposal (Ref. 1). An accredited TPC would 1035 be required to approve a request for reduced quality control testing as long as the data submitted 1036 by the panel producer demonstrat e compliance with the criteria and the TPC does not otherwise 1037 have reason to believe that the data are ina ccurate or that the panel producer’s production 1038 processes are inadequate to en sure continued complia nce with the emissionstandards. EPA 1039 requests comment on whether there s hould be a finite time period for reduced testing, after which 1040 a new application and demonstration would be required, or whether reduced testing should 1041 continue to be allowed as long as the quality control test data demonstrate continued eligibility 1042 for reduced testing. 1043 As in the CARB ATCM, EPA is proposing thatall panels would be tested in an 1044 unfinished condition, prior to the ap plication of a finishing or t opcoat. EPA believes that the 1045 proposed testing frequency is sufficient to ensure compliance with the emission standards, but is 1046*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 47 of 153 [RIN 2070–AJ92] not overly burdensome. EPA believes that mostU.S. producers of particleboard and medium1047 density fiberboard have been complying withthe testing requirements under the CARB ATCM 1048 and thus, the rule, if finalized as propose d, would not impose an additional burden on these 1049 producers. 1050 d. Proposed quality control te sting frequency for hardwood plywood that does not qualify 1051 for reduced testing based on NAF resins . EPA is generally propos ing to require the same 1052 frequency of testing for hardwood plywood that CA RB requires. EPA believes that this testing 1053 frequency is adequate to ensure compliance w ith the TSCA Title VI emission standards and 1054 consistency with CARB makes it easier for pane l producers already complying with CARB to 1055 comply with these proposed requirements. Simi larly, if a quality control test exceeds the 1056 applicable emission standards for that product, all lots of products repres ented by that test result 1057 would be considered to be non-complying lots a nd would have to be treated and retested in 1058 accordance with the procedures discu ssed in Unit III.D.4. 1059 EPA’s proposed quality control testing fr equency requirements for hardwood plywood 1060 are generally similar to CARB and are likewi se based on production volume. Under this 1061 proposal, hardwood plywood panel producers would be required to conduct routine quality 1062 control tests on each production line of each product type based on total hardwood plywood 1063 production by the panel producer with the following te sting frequency: at l east one test per week 1064 per production line of each produc t type if the weekly hardw ood plywood production is between 1065 100,000 and 200,000 square feet; at least two tests per week per production line of each product 1066 type if the weekly hardwood plywood produc tion is between 200,000 and 400,000 square feet; 1067 and at least four times per week per production li ne of each product type if the weekly hardwood 1068 plywood production is greater than 400,000 square feet. EPA believes that, for some small 1069*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 48 of 153 [RIN 2070–AJ92] specialty panel producers, even one quality control test per we ek would be excessive. Very 1070 small custom manufacturers may make significantly less than 100,000 square feet of product per 1071 week per product type. In order to address the inequity of re quiring small manufacturers to 1072 conduct many more tests than requ ired of large manufacturers fo r the same production volume, if 1073 weekly production of hardwood plywood at the panel producer is less than 100,000 square feet, 1074 EPA is proposing to require one quality control test per 100,000 square feet of each lot produced 1075 of each product type produced. If the panel producer never produces 100,000 square feet of a 1076 particular product type at one ti me, EPA is proposing to require just one quality control test of 1077 that product type per produc tion run or lot produced. 1078 EPA believes that the proposed testing fre quency for hardwood plywood is sufficient to 1079 ensure compliance with the emissi on standards but is not overly burdensome. EPA believes that 1080 most U.S. hardwood plywood panel producers as well as many foreign producers have been 1081 complying with the CARB ATCM testing require ments and thus, the rule, if finalized as 1082 proposed, would not impose an additional burden on these producers. For laminated product 1083 producers that do not have to te st under the CARB ATCM require ments, this proposed testing 1084 would be a new requirement; however, because the requirements are based on production 1085 volume, EPA believes that they would not be overly burdensome. EPA requests comment on 1086 whether these proposed requirements are sufficient to ensure compliance w ith the standards. 1087 Under the CARB ATCM, only particleboard and medium-density fiberboard producers 1088 are required to conduct quality control testing when product type production ends, changes are 1089 made to the resin formulation or the amount of resi n used, or there is a significant decrease in 1090 press time. There is no similar provision app licable to hardwood plywood. EPA’s proposal is 1091 consistent with the CARB ATCM, but EPA reque sts comment on whether quality control testing 1092*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 49 of 153 [RIN 2070–AJ92] should be required for hardwood plywood producti on in these situations, or in any other 1093 situations, such as when the qua lity control manager or quality control employee has reason to 1094 believe that the panels in produc tion may not meet the emission standard. EPA is also requesting 1095 comment on whether the proposed reduced quality control testing for cons istent particleboard 1096 and medium-density fiberboard manufacturing operations should al so be applicable to hardwood 1097 plywood. 1098
3. Means of showing test method equivalence. EPA is proposing that equivalence between 1099 ASTM E-1333-10 and any other test method used would be demonstrated by the TPC for each 1100 laboratory used by the TPC or panel producer that is using the alternative method at least once 1101 each year or whenever there is a significan t change in equipment, procedures, or the 1102 qualifications of testing personnel. 1103 The CARB ATCM includes a specific met hod for demonstrating equivalence between 1104 ASTM E-1333-96 (2002) and ASTM D-6007-02. Th e CARB ATCM method requires at least 1105 ten comparison sample sets, which compare the re sults of the two methods, for an equivalence 1106 demonstration. The ten comparison sample sets consist of testing a minimum of five sample sets 1107 in at least two out of three specified ranges of formaldehyde concentrations. For the ASTM E1108 1333-96 (2002) method, each comparison sample consists of the result of simultaneously testing 1109 an appropriate number of panels (factoring in th e loading rate) from the same batch of panels 1110 tested by the ASTM D-6007-02 method. Fo r the ASTM D-6007 method, each comparison 1111 sample consists of testing nine specimens repres enting evenly distributed portions of an entire 1112 panel. The nine specimens are tested in groups of three specimens (factor ing in loading rate), 1113 resulting in three test results, which are averaged to represent one data point for the panel, and 1114 matched to their respective ASTM E-1333-96 (2002) comparison sample result. CARB requires 1115*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 50 of 153 [RIN 2070–AJ92] that equivalence be established between the ASTM E-1333-96 (2002) and ASTM D-6007-02 1116 methods to represent the range in emissions ba sed on the emission standards for the composite 1117 wood products being tested. 1118 EPA is proposing the same general methodol ogy as is required under the CARB ATCM. 1119 However, because the CARB phase 2 emission standard s will be in effect by the time EPA issues 1120 a final rule, EPA believes that it will be very difficult, if not impossible, to find products with 1121 emissions in the intermediate and upper ranges specified by the CARB equivalency 1122 demonstration requirements. EPA’s proposed procedure, therefore, does not include the 1123 requirement of testing different formaldehyde co ncentration ranges. In stead, EPA is proposing 1124 that equivalence be demonstrated in a range of formaldehyde concentrations that is 1125 representative of the emissions of the products that the TPC certifies. Therefore, EPA is 1126 proposing to require a minimum of five comparis on sample sets rather than ten. In addition, 1127 EPA is proposing to allow for mo re flexibility in sampling and not require testing of nine 1128 specimens representing evenly distributed portions of an entire panel. EPA believes that for 1129 some types of panels, within panel variability is such that fewer specimens can be tested, but for 1130 other panels testing of at leas t nine specimens would be needed. EPA believes that TPCs and 1131 panel producers are best able to determine the sa mpling and testing needed to account for within 1132 panel variability for a specific pr oduct type and is therefore propos ing to allow for flexibility in 1133 the distribution and number of specimens to re quire for the small chamber test comparison 1134 sample set. 1135 EPA is proposing the following method for demonstrating equivalence between ASTM 1136 E-1333-10 and ASTM D-6007-02: An equivalence de monstration would include at least five 1137 comparison sample sets ( i.e. , five large chamber sample sets and five small chamber sample 1138*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 51 of 153 [RIN 2070–AJ92] sets), which compare the results of the two methods. For the ASTM E-1333-10 method, each 1139 comparison sample would consist of the result of simultaneously testing an appropriate number 1140 of panels, using the applicable loading ratios fr om the method, from the same batch of panels 1141 tested by the ASTM D-6007-02 method. For the ASTM D6007 method, each comparison 1142 sample would consist of testing specimens represen ting portions of panels tested in the ASTM E1143 1333-10 and matched to their respective ASTM E-1333-10 method comparison sample result. 1144 The arithmetic mean, x  ̄, and standard deviation, S , of the difference of all comparison sets would 1145 be calculated as follows: 1146

1147 Where x  ̄ = arithmetic mean; 1148
S = standard deviation; 1149

n = number of sets; 1150
Di = difference between the ASTM E-1333-10 and the ASTM D-6007-02 method values for the 1151
i th set; and 1152
i ranges from 1 to n . 1153 EPA is proposing that ASTM D-6007-02 method woul d be considered equivalent to the ASTM 1154 E-1333-10 method if the follo wing condition were met: 1155

1156 where C is equal to 0.026 (Ref. 34). 1157 EPA believes that the proposed means fo r showing equivalence between ASTM E-1333- 1158 10 and ASTM D-6007-02 is a reasonable method of showing equivalence. In addition, it is not 1159*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 52 of 153 [RIN 2070–AJ92] overly burdensome and it is similar to the pr ocedure required unde r the CARB ATCM. EPA 1160 requests comment on whether the proposed means of showing equivalence is appropriate. EPA 1161 specifically requests comment on wh ether five comparison sample se ts are sufficient or whether 1162 ten should be required. In addition, EPA request s comment on whether testing products in two 1163 different ranges of formaldehyde concentrations should be required, as is required under the 1164 CARB ATCM, and what range s would be appropriate ( e.g. , lower range less than 0.05 ppm and 1165 upper range 0.05-0.13 ppm as measured by ASTM E-1333-10). EPA also requests comment on 1166 whether sampling should be left to the TPCs and manufacturers, or whether EPA should require 1167 testing of nine specimens (representing evenly distributed portions of an entire panel) tested in 1168 groups of three specimens, resulting in three test results, which would be averaged to represent 1169 one comparison sample for the ASTM D-6007-02 method, or whether some other sampling 1170 protocol should be required. EPA also reque sts comment on whether the proposed criteria for 1171 demonstrating equivalence are appropriate, or whether other criteria would be more appropriate, 1172 such as establishing equivalence criteria ba sed on the two one-sided t-test (TOST). 1173 EPA is proposing to require that equi valence between ASTM E-1333-10 and any 1174 formaldehyde quality control test method used other than ASTM D-6007-02 would be 1175 demonstrated by establishing a linear regressi on and an acceptable correlation, as defined by the 1176 correlation coefficient, or “r” value. Although co rrelation will not show that the test methods 1177 give equivalent results, it will demonstrate whether a quality control test method can be used to 1178 adequately estimate the corresponding ASTM E-1333- 10 test result; therefore, if there is an 1179 acceptable correlation, the quality control test me thod can be used to estimate whether the 1180 product meets the emission standards. The co rrelation would be based on a minimum sample 1181 size of five data pairs and a simp le linear regression where the depe ndent variable (Y-axis) is the 1182*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 53 of 153 [RIN 2070–AJ92] quality control test value and the independent variable (X-axis) is the ASTM E-1333-10 test 1183 value. EPA is proposing the following minimum acceptable correlation coefficients (“r” values) 1184 for the correlation: 1185 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 1186 based on five data pairs have 3- degrees of freedom, and the correlation coefficient would need to 1187 be 0.878 or greater. These values are the sa me as those recommended by CARB in its 1188 Certification Guideline No. CWP-10-001 (Ref. 35). EPA requests comment, information, and 1189 data on these values and whether they adequately account fo r the uncertainties ( e.g. , sample 1190 preparation, emission testing) and thus, are appropriate for this purpose. 1191 Because of the low emissions required for regulated composite wood products, it may be 1192 necessary to include more than five data pairs an d/or a range of products (with a suitable range in 1193 emissions, e.g. , 0 – 0.1 ppm) in the testing to achieve acceptable correlation coefficients. In 1194 addition to the requirement of establishing a ne w correlation annually or whenever there is a 1195 significant change in equipment, procedures, or the qualifications of te sting personnel, EPA is 1196*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 54 of 153 [RIN 2070–AJ92] proposing that a new correlation would need to be established by the TPC for the panel producer 1197 whenever a TPC's quarterly test results compared with the panel producer's quality control test 1198 results do not fit the previously established correl ation. In addition, if a panel producer fails two 1199 quarterly tests in a row, a new correlation curve would have to be established. 1200 EPA requests comment on the proposed correlation method for demonstrating 1201 equivalence and whether the proposed acceptable co rrelation coefficients are reasonable. EPA 1202 also requests comment on whether the term “equi valency” needs to be more clearly defined and 1203 whether additional statistical parameters are needed to make a determination of “equivalency” 1204 for the quality control methods. 1205
4. Non-complying lots. EPA is proposing to require pr oducers of non-comp lying lots of 1206 composite wood products to treat such lots in a manner similar to the CARB ATCM 1207 requirements. A non-complying lot would be any lot or batch represented by a quarterly or 1208 quality control test value that exceeds the appl icable emission standard for the particular 1209 composite wood product. In the case of a quarterlytest value, only the particular lot from which 1210 the sample was taken would be considered a non-c omplying lot; lots produ ced after the previous 1211 quarterly test but before the lot from which the sample was taken would still be considered 1212 certified product. However, future producti on of product type(s) represented by a failed 1213 quarterly test would not be considered certified and would have to be treated as a non-complying 1214 lot until the product type(s) ar e re-qualified through a succes sful quarterly test. 1215 TPCs would be required to notify EPA and th e panel producer of any quarterly tests that 1216 exceed the applicable standard within 24 hours of obtaining the test result. Panel producers 1217 would be required to segregat e the non-complying lot from other product. Products in non1218 complying lots could only be sold, supplied, or offere d for sale in the United States if a test value 1219*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 55 of 153 [RIN 2070–AJ92] that meets the applicable standard is obtained after the products are treated with scavengers, to 1220 absorb excess formaldehyde, or treated through another process that reduces formaldehyde 1221 emissions, e.g. aging. EPA is proposing to define the term “scavenger” as a chemical or 1222 chemicals that can be applied to resins or composite wood pr oducts to reduce the amount of 1223 formaldehyde that can be emitted from com posite wood products. EPA requests comment on 1224 whether this definition is appropr iate. EPA also requests commenton processes other than aging 1225 that could be used to reduce formaldehyde emi ssions from non-complying lots. Under this 1226 proposal, panel producers would be required to k eep records of the disposition of non-complying 1227 lots, including the specific tr eatment used and the subsequenttest results demonstrating 1228 compliance. 1229 Non-complying lots, by defin ition, do not meet the applicable emission standards and 1230 may not be sold, supplied, or offered for sale in th e United States. In order to ensure that this 1231 does not occur, EPA is proposing to require that panel producers retain lots of composite wood 1232 products from which quality control or quarterly samples have been selected until the samples 1233 have been tested and the results received. With respect to quarterly samples, this includes lots 1234 that are grouped for purposes of quarterly testi ng. EPA believes that this approach may be less 1235 burdensome overall and offer bette r protection to importers, distri butors, wholesalers, retailers, 1236 and consumers than an approach relying on af ter-the-fact enforcement actions and customer 1237 notifications. 1238 E. Quality Assurance and Quality Control Re quirements for Composite Wood Product Panel 1239
Producers 1240 Composite wood product panel producers are re sponsible for ensuring that their products 1241 meet the emission standards of TSCA Title VI. Quality assurance and quality control 1242*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 56 of 153 [RIN 2070–AJ92] requirements for panel producers are necessary to en sure that all of thei r products comply with 1243 the applicable standards, includ ing those that are not actually tested. EPA believes that the 1244 proposed quality assurance and qua lity control requirements woul d help ensure proper handling 1245 of test samples, test equipment, and quality c ontrol testing. EPA is ge nerally proposing quality 1246 assurance requirements that ar e identical to the requireme nts under the CARB ATCM. As 1247 discussed in more detail in Unit III.F. of th is preamble, these qualityassurance and quality 1248 control requirements do not apply to any product type made with a NAF-based resin for which 1249 the panel producer is eligible for an exemption from the third party certification requirements, 1250 except for the purpose of applying fo r re-approval for the exemption. 1251 Under this proposal, each panel producer w ould be required to have a written quality 1252 control manual containing at a minimum: 1) or ganizational structure of the quality control 1253 department; 2) sampling procedures; 3) method of handling samples, including a specific 1254 maximum time period for analyzing quality contro l samples; 4) frequency of quality control 1255 testing; 5) procedures to identify changes informaldehyde emissions resulting from production 1256 changes ( e.g. , increase in the percentage of resin, in crease in formaldehyde/urea molar ratio in 1257 the resin, or decrease in press time); 6) provisions for addition al testing; 7) recordkeeping 1258 requirements; 8) average percentage of resin and press time for each product type; 9) product 1259 grouping, if applicable, and 10) procedures for redu ced quality control test ing, if applicable. The 1260 TPC would review and approve the manual to ensure that the manual is complete and that the 1261 panel producer’s procedures are adequate to ensure that the TSCA Title VI emission standards 1262 are being met on an ongoing basis. The proposedrequirement for a quality control manual is 1263 consistent with CARB and with international voluntary consensus standards, such as the 1264 International Standards Organization (ISO) 9000 series of standards. EPA requests comment on 1265*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 57 of 153 [RIN 2070–AJ92] what should be included in the quality control manual. 1266 This proposal would also require each pane l producer to designate a quality control 1267 facility for conducting quality control formaldehyde testing of their product. The quality control 1268 facility must be a laboratory owned and operated by the panel producer, a TPC, or a contract 1269 laboratory. 1270 EPA is also proposing to require each panel pr oducer to designate a person as quality 1271 control manager with adequate experience and/or training to be responsible for formaldehyde 1272 emission quality control. EPA is requesting co mment on criteria for determining whether an 1273 individual’s experience and/or tr aining are appropriate for this position. For example, should the 1274 quality control manager have a certain number of years of experien ce in the wood products 1275 industry, or a degree in chemis try or a related field? 1276 The quality control manager woul d have to have the authority to take actions necessary to 1277 ensure that applicable emission standards are bei ng met. The quality control manager would also 1278 be identified in writing to the TPC. Under th is proposal, the panel produ cer would have to notify 1279 the TPC in writing within ten days of any change in the identity of the quality control manager 1280 and provide the TPC with the new quality contro l manager’s qualifications. The quality control 1281 manager would review and appr ove all reports of quality c ontrol testing conducted on the 1282 production of the panel producer. The quality co ntrol manager would also be responsible for 1283 ensuring that the samples are collected, packag ed, and shipped according to the procedures 1284 specified in the quality control manual. Th e panel producer quality control manager would 1285 monitor the testing facility’s results, and woul d immediately inform the TPC in writing of any 1286 significant changes in production that coul d affect formaldehyde emission rates. 1287 EPA is proposing to require panel producers to submit monthly product data reports for 1288*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 58 of 153 [RIN 2070–AJ92] each panel producer, production line and product type , to their TPC. The content requirements 1289 for the product data reports would be similar to the CARB requirements and include a data sheet 1290 for each specific product with test and produc tion information, and a quality control graph 1291 containing the established quality control limit (QCL) and shipping QCL, if applicable, the 1292 results of quality control tests, and retest values. EPA requests comment on whether other useful 1293 information, or a different fo rmat, should be required. 1294 EPA is also proposing to require that each qua lity control facility have quality control 1295 employees with adequate experience and/or tr aining to conduct accurate and precise chemical 1296 quantitative analytical tests. EPA requests comment on the criteria for determining whether an 1297 individual’s experience and/or training are appropriate for th is position. The quality control 1298 manager would identify each person conducting fo rmaldehyde quality control testing in the 1299 quality control manual and to the accredited TPC. 1300
F. NAF and ULEF Resins 1301 TSCA Title VI section 601(d)(2)(D) and (E) directs EPA to include, in its implementing 1302 regulations, provisions related to products made with NAF and U LEF resins. The statute also 1303 defines, under section 601(a)(7) and (10) resp ectively, what constitutes NAF-based and ULEF1304 based resins, in terms of the composition of the resin system and maximum formaldehyde 1305 emissions for composite wood products made with these resin systems. In general, a NAF 1306 composite wood product cannot incorporate a resi n formulated with formaldehyde. A ULEF 1307 composite wood product is one made from resins that may contain formaldehyde, but emit it at 1308 particularly low levels, such as melamine-ur ea-formaldehyde resin, phenol formaldehyde resin, 1309 resorcinol formaldehyde, or other formaldehyde-bas ed resins. The statutory maximum emissions 1310 for products made with NAF-based or ULEF-based resins are identical to those in the CARB 1311*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 59 of 153 [RIN 2070–AJ92] ATCM. 1312 Under the CARB ATCM, ULEF and NAF manuf actures are provided with incentives 1313 such as reduced testing requirements for ULEF , and for NAF, a two year exemption from TPC 1314 oversight and formaldehyde emissions testing for one individual product type. If further reduced 1315 emission standards are met, ULEF manufacturers can also be ex empted from TPC oversight and 1316 formaldehyde emissions testing. ULEF and NAF manufacturers must apply to CARB to get the 1317 initial exemption for either the reduced testing of their individua l products (for ULEF) or for a 1318 total exemption from TPC oversight and formal dehyde emissions testing (ULEF or NAF). A 1319 separate exemption is required for each co mposite wood product type. The NAF exemption 1320 under the CARB ATCM from TPC oversight and formaldehyde emissions testing requires an 1321 initial 3 month formaldehyde emissions testing pe riod with a TPC. For manufacturers to receive 1322 a ULEF exemption from TPC oversight and fo rmaldehyde emissions testing, 6 months of 1323 formaldehyde emissions testing with a TPC is required. In addition, formaldehyde emissions 1324 must be reduced to below the standard ULEF emissions level. Exempt NAF and ULEF 1325 manufacturers must reapply to CARB for exem ption from TPC oversight and formaldehyde 1326 emissions testing every two years by submitting test results for each product type for which an 1327 exemption is sought, based on a panel or set of panels randomly selected and tested by a TPC, 1328 and the chemical formulation of the resin. 1329 For the TSCA Title VI program, EPA proposes to provide producers of panels made with 1330 NAF-based resins with an exemption from TP C oversight and formaldehyde emissions testing 1331 after an initial testing period of 3 months for each product type. This in itial testing period is 1332 required by the statute and is designed to ensure that the products meet the TSCA section 1333 601(a)(7) formaldehyde emission standards for pr oducts made with NAF-based resins. To 1334*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 60 of 153 [RIN 2070–AJ92] qualify for this exemption, during the initial testi ng period, there can be no te st result higher than 1335 0.05 ppm of formaldehyde for hardwood plyw ood and 0.06 ppm for particleboard, medium1336 density fiberboard, and thin medium-density fiber board. In addition, test results for 90 percent 1337 of the 3 months of quality control testing must be no higher than 0.04 ppm of formaldehyde. 1338 An accredited TPC would be required to ove rsee the testing during the initial testing 1339 period, which must include at least one test result under ASTM E-1333-10 or, upon a showing of 1340 equivalence as discussed in this Unit, ASTM D-6007-02 (Ref. 28, 26). In contrast to the 1341 exemption under the CARB ATCM, EPA is not pr oposing to require the panel producer to 1342 formally apply to EPA for exemption every two years. Rather, the panel producer would be 1343 required to apply to an accredited TPC for an exemption based on the re gulatory requirements 1344 and send a copy of the applicati on to EPA. EPA intends to li st panel producers and product 1345 types that have been approved for reduced te sting and exemption from TPC requirements on 1346 EPA’s website. 1347 To maintain eligibility fo r the exemption, at least on ce every two years after the 1348 conclusion of the initial testing period, the pane l producer would have to reapply for exemption 1349 to an accredited TPC and have one test re sult under ASTM E-1333-10 or, upon a showing of 1350 equivalence as discussed in this Unit, AS TM D-6007-02, which demonstrates continued 1351 compliance with the reduced formaldehyde emi ssion standards for each product type (Ref. 28, 1352 26). The test must be based on products randomlyselected and tested by an accredited TPC. 1353 Testing records and other r ecords demonstrating eligibility for the exemption, such as 1354 records showing the chemical composition of th e resins used to manufacture the eligible 1355 products, would have to be maintained for a mini mum of 5 years from the date that the record 1356 was created. EPA requests comment on whether th e test records from the initial testing period 1357*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 61 of 153 [RIN 2070–AJ92] should be kept for as long as the panel producer claims the exemption. 1358 Under this proposal, any change in the resin formulation, the core material, or any other 1359 part of the manufacturing pro cess that may affect formaldehyde emission rates would render the 1360 product ineligible for the exemption. EPA request s comment on whether, inthe event of such a 1361 change, the panel producer should be required to begin the NAF exemption process again with a 1362 3 month testing period overseen by an accredited TPC, or whether a single TPC test of the 1363 modified product would be sufficient. EPA also requests comment on whether a distinction can 1364 be made between changes that are unlikely to result in changes in product emissions, which may 1365 not need extensive testing to confirm continued eligibilityfor the exemption, and more 1366 significant changes. EPA is particular ly interested in specific examples of both types of changes. 1367 EPA is not proposing to include an exemption for products made with ULEF-based resin. 1368 EPA believes that producers of composite wood product panels should be encouraged to move 1369 away from formaldehyde-based resins altogether and that special incent ives should be provided 1370 for those panel producers who have made the change. In addition, EPA believes that the use of 1371 NAF-based resin is a more reliable way of ensuring that formaldehyde emissions from a 1372 particular product remain low over time, regardle ss of environmental conditions, such as heat 1373 and humidity. In contrast, EPA believes that it is more difficult to ensure that formaldehyde 1374 emissions from products made with ULEF-based resins remain low over time, regardless of 1375 environmental conditions. A study on a hardwood plywood product made with urea1376 formaldehyde resin and a similar hardw ood plywood product made with a NAF resin 1377 demonstrated that the urea-formaldehyde product emitted more formaldehyde as the temperature 1378 and relative humidity increased. The study repo rts that both products met the CARB Phase 2 1379 standard when initially tested in a small ch amber under the test conditions specified by the 1380*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 62 of 153 [RIN 2070–AJ92] method, i.e. , 25 degrees Celsius and 50% re lative humidity (Ref. 36). However, when the urea1381 formaldehyde product was tested at 35 degr ees Celsius and 100% relative humidity, its 1382 formaldehyde emissions increased by more than 31 times compared with the emissions measured 1383 at 25 degrees Celsius and 30% relative humidity. In contrast, the formaldehyde emissions from 1384 the NAF product only increased slig htly (less than 4 times) over the same change in temperature 1385 and humidity conditions. In addition, for the NAF product, total formaldehyde emissions 1386 reached a plateau and decreased rapidly after a few days under all of th e test conditions. EPA 1387 requests comment on whether there should be an exemption similar to the CARB exemption for 1388 products made with ULEF-based resins, or whethe r another type of incentive should be offered 1389 for products made with ULEF-based resi ns, and the basis for the exemption. 1390 G. De Minimis Exception 1391 Section 601(d)(2)(L) of TSCA allows EPA to promulgate, for products and components 1392 containing de minimis amounts of composite wood products, an exception to all of the 1393 requirements of the implementing regulations othe r than the formaldehyde emission standards. 1394 After due consideration, EPA has decided not to propose an excepti on from any of the regulatory 1395 requirements for products containing de mini mis amounts of composite wood products. EPA 1396 does not have data on the emission levels of such products, nor does EPA know of any 1397 information that suggests that such products wo uld not have formaldehyde emissions that exceed 1398 the statutory emission standards. In addition, EPA has not identif ied any apparent dividing line 1399 between products that contain de minimis amounts of composite wood products and other 1400 products. EPA requests comment, information and data on whether there should be such an 1401 exception, how the exception should be delineate d, and what regulatory provisions should apply 1402 or not apply to such products. EPA notes thatany decision on this particular exception would 1403*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 63 of 153 [RIN 2070–AJ92] not affect the statutory exemption from the em ission standards for windows, exterior doors, and 1404 garage doors made with small amounts of composite wood products. 1405 H. Chain-of-Custody, Recordkeeping, and Labeling Requirements 1406 Section 601(d)(2) of TSCA Title VI also directs EPA to consider chain of custody, 1407 recordkeeping, and labeling requirements. Fo r labeling, EPA is proposing requirements that 1408 generally follow the approach taken in the CARB ATCM because EPA believes that this 1409 approach supports compliance with the TSCA Title VI emission standards while not being 1410 unduly burdensome. With respect to chain of custody and recordkeeping requirements, EPA is 1411 proposing requirements similar to that of the CA RB ATCM for entities that are manufacturers 1412 under TSCA. This includes entities who im port, produce, or manufacture composite wood 1413 panels, component parts, or fi nished goods. Again, EPA believes that this approach supports 1414 compliance with TSCA Title VI without undue bur den. However, for distributors and retailers 1415 who are not manufacturers under TS CA, EPA is proposing that theyonly be required to keep 1416 invoices and bills of lading. EPA has determined that these ordinary business records would 1417 provide enough information to enable EPA to tr ace back a particular composite wood product to 1418 the panel producer and thus allow EPA to monito r compliance with TSCA Title VI. Each of 1419 these proposed requirements is discussed in mo re detail in this Unit. 1420 1. Chain of custody and recordkeeping requirements. Most records would have to be 1421 kept for a period of five years from the date that they are generated. In addition, all records that 1422 would be required by this proposal would also have to be provided to EPA upon request to 1423 facilitate EPA’s compliance monitoring activities. 1424 Producers of hardwood plywood, particleboard, and medium-density fiberboard panels 1425 would be required to maintain records of quarter ly emission testing and records of quality control 1426*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 64 of 153 [RIN 2070–AJ92] testing. These records would have to identi fy the accredited TPC conducting or overseeing the 1427 testing, and would include the date, the product t ype tested, the lot or batch number that the 1428 tested material represents, and the test resu lts. In addition, panel producers would have to 1429 maintain the following records: 1430

 Production records, including a description of the compos ite wood product(s), date of 1431 manufacture, lot or batch numbers, and track ing information allowing each product to be 1432 traced to a specific lot number or batch produced; 1433

 Changes in production, including changes in re sin use, resin composition, and changes in 1434 the process, e.g. , press time; 1435

 Purchaser information for each composite wood product, if applicable, including name, 1436 contact person, address, phone number, purch ase order or invoice number, and amount 1437 purchased; 1438

 Transporter information for each composite w ood product, if applicable, including name, 1439 contact person, address, phone number, shipping invoice number, and amount 1440 transported; and 1441

 Information on the disposition of non-complying lots or batches, including product type 1442 and amount of composite wood products aff ected, lot or batch numbers, mitigation 1443 measures used, results of retesting, and final disposition of the lots or batches. 1444 In addition, laminated product producers whose products are exempt from the definition 1445 of hardwood plywood would have to maintain records demonstrating use of a NAF resin, 1446 including the resin trade name, re sin manufacturer contact information, and resin supplier contact 1447 information, or, if the resin is made in-house, reco rds sufficient to demonstrate that the resin is a 1448 NAF resin. 1449*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 65 of 153 [RIN 2070–AJ92] In order to assist customers such as fabricat ors, distributors, importers, and retailers in 1450 determining whether they are purchasing co mpliant composite wood products, EPA would 1451 require that all records pertaining to the compliance status of a particular lot, batch, or shipment 1452 of composite wood products be prov ided to purchasers upon request. EPA realizes that some of 1453 the information contained in these records is information that manuf actures might claim as 1454 Confidential Business Information (CBI) in othe r contexts. While information collected under 1455 TSCA may be entitled to confidential treatment if it meets the st andard for Exemption 4 in the 1456 Freedom of Information Act (FOIA), 5 U.S.C. § 552( b)(4), TSCA provides that health and safety 1457 studies and data derived from hea lth and safety studies, are not entitled to confidential treatment, 1458 irrespective of the Exemption 4 standard, unless the data derive d from such studies disclose 1459 confidential processes us ed in the manufacturing or processi ng of a chemical substance or 1460 mixture or, in the case of a mixture, the release of data disclosing confid ential portion of mixture 1461 information. 1462 TSCA defines a "health and safety study" as any study of any effect of a chemical 1463 substance or mixture on health or the environm ent or on both, including underlying data and 1464 epidemiological studies, studies of occupatio nal exposure to a chemical or mixture, 1465 toxicological, clinical, and ecol ogical studies of a chemical or mixture, and any test performed 1466 pursuant to TSCA (15 U.S.C. 2602(6)). Because the testing required by TSCA Title VI and the 1467 implementing regulations would be “any test perf ormed pursuant to the Act,” such tests would 1468 be health and safety studies. Therefore, unde r TSCA, the formaldehyde emission test results of 1469 specific products are not entitled to confidential treatment. The names of the producers of panels 1470 for which formaldehyde emission data are generate d similarly are not enti tled to confidential 1471 treatment, analogous to how EPA tr eats the confidentiality of chem ical identities in health and 1472*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 66 of 153 [RIN 2070–AJ92] safety studies. It is a long established principl e that the chemical name is part of, or underlying 1473 data to, a health and safety study. (See 40 CFR 716.3; 40 CFR 720.3(k)) The rationale for this is 1474 that the chemical name provide s context for the study results, i.e. , the test relates to a specific 1475 chemical. Without knowing the chemical name, ther e is no basis for unders tanding the results of 1476 the test. 1477 The same principle applies to producer name s. The requirement to test formaldehyde 1478 emissions from specific composite wood products produced by specific panel producers, and an 1479 obligation to make those results available to downstream purchasers so that purchasers can 1480 determine whether they are purchasing compliant products, is integral to TSCA Title VI and 1481 these implementing regulations. In order to ha ve context, the raw emission numbers must be 1482 linked to the products tested. For this reason, the product name and the producer of the product 1483 constitute part of, or are unde rlying data to, a health and sa fety study. Therefore under TSCA, 1484 the product and panel producer name are not entitled to confidential treatment. 1485 Producers of hardwood plywood, particleboard and medium-density fiberboard panels 1486 using NAF-based resins who qualify for the re duced testing and thir d-party certification 1487 requirements discussed in Unit III.F. would have to maintain records demonstrating initial 1488 eligibility for the reduced testi ng. In addition, the panel producer would have to keep records 1489 documenting the following for each product type: 1490

 The amount of resin use by volume and weight; 1491

 Production volume, reported as square feet per product type; 1492

 Resin trade name, resin manuf acturer contact information, and resin supplier contact 1493 information; 1494

 Changes in the production method, including changes in press time by more than 20 1495*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 67 of 153 [RIN 2070–AJ92] percent; and 1496

 Changes in the resin formulation. 1497 Importers, fabricators of finished goods that incorporate composite wood products, 1498 laminated product producers whose products are exempt from the definition of hardwood 1499 plywood, distributors, and retailers would be required to take steps to ensure that they are 1500 purchasing composite wood products or compon ent parts that comply with the emission 1501 standards. Importers, fabric ators, and laminated product pr oducers would be required to 1502 document these steps. In general, this means th at the importer, fabricator, or producer would be 1503 required to obtain from the supplier records identifying the panel producer (s) that produced the 1504 composite wood products and the dates that the pr oducts were manufactured and purchased from 1505 the panel producer(s), and bills of lading or invoi ces that include a writte n affirmation from the 1506 supplier that the composite wood products are compliant with this subpart. EPA requests 1507 comment on what documentation ought to be required of distributors and reta ilers in this regard. 1508 For example, should distributors and retailers be required to obtain bill s of lading or invoices 1509 from their suppliers that incl ude a written affirmation that the composite wood products are 1510 compliant with this subpart? Or should distributo rs and retailers be requir ed to obtain the same 1511 records that EPA is proposing to require for importers, fabricators, and laminators? In addition, 1512 laminated product producers whose products are exempt from the definition of hardwood 1513 plywood would have to maintain records demonstr ating use of a NAF resin, including the resin 1514 trade name, resin manufacturer contact informati on, and resin supplier contact information, or, if 1515 the resin is made in-house, records sufficient to demonstrate that the re sin is a NAF resin. 1516 For distributors and retail ers who do not import, produce, or manufacture composite 1517 wood panels, component parts, or finished goods, EP A is proposing to require that they maintain 1518*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 68 of 153 [RIN 2070–AJ92] invoices and bills of lading. The invoices and bill s of lading would not be required to contain an 1519 affirmation by the supplier that the goods comp ly with TSCA Title IV. EPA believes that 1520 invoices and bills of lading are usually kept by most distributors and retailers already, as part of 1521 their general recordkeeping practices. EPA has de termined that these records will enable EPA to 1522 identify the producer or importer of composite wood panels, component parts, or finished goods 1523 being sold by distributors and retailers. For finished goods, this will allow EPA to ultimately 1524 identify the producer of the composite wood pane ls that make up the finished goods. Without 1525 imposing additional recordkeeping burdens on most distributors and retailers, this requirement 1526 will allow EPA to effectively monitor compliance with TSCA Title VI. 1527 Entities that fit within two or more of these recordkeeping cate gories, such as a fabricator 1528 of finished goods who also buys finished goods fo r resale, or a distributor that buys finished 1529 goods from both foreign and domestic companies fo r resale, would be required to keep only the 1530 records for each product th at correspond to the activ ities the entity undertook with respect to that 1531 product. For example, a domestic fabricator of finished goods who also buys domestic finished 1532 goods and sells both categories of finished goods to a domestic distributor for resale would have 1533 to keep the records required for fabricators on those products that the fabricator produces, and 1534 invoices and bills of lading only for those finished goods that the fabricator buys and resells. A 1535 distributor who purchases both foreign and domestic finished goods for resale would be required 1536 to keep the following records: 1537

 For foreign finished goods that the distri butor imports, records identifying the panel 1538 producer(s) that produced the composite wood products and the dates that the products 1539 were manufactured and purchased from the panel producer(s) as well as bills of lading or 1540 invoices that include a written affirmation from the supplier that the composite wood 1541*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 69 of 153 [RIN 2070–AJ92] products are compliant with this subpart. 1542

 For domestic finished goods, only invoices and bills of lading, which need not contain a 1543 written compliance affirmation from the supplier. 1544 For imported finished goods, only the importer would be responsible fo r keeping the records 1545 identifying the panel producer and the date that the composite wood products were 1546 manufactured. For example, if the importer sells the goods to a domestic distributor, who then 1547 sells them to a domestic retailer, only the importe r would have to keep the additional records. 1548 The domestic distributor and retail er would only be required to keep invoices and bills of lading. 1549 In order for this recordkeeping system to function effectively, allowing EPA to determine 1550 the source of the composite wood products that make up an imported finished good, the records 1551 required to be kept by the importer would have to be accessible to EPA. EPA requests comment 1552 on alternative ways to ensure that this is th e case. For example, EPA could require importer 1553 records to be maintained in the United States, e ither at the importer’s pl ace of business or at a 1554 registered agent’s. Or EPA could require anelectronic copy of the importer records to be 1555 available in the United States at the importer’s pl ace of business or with the importer’s registered 1556 agent. 1557 2. Labeling . The CARB ATCM requires that each panel or bundle of regulated 1558 composite wood products be labeled with the manufacturer name; product lot number or batch 1559 produced; markings that denote the product complie s with the applicable Phase 1 or Phase 2 1560 emission standards; markings if the product wa s made using ULEF or NAF-based resins; the 1561 CARB assigned number of the TPC; and a statem ent of compliance on the bill of lading or 1562 invoice. 1563 EPA is proposing similar labeling requirements. Under this proposal, panels or bundles 1564*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 70 of 153 [RIN 2070–AJ92] of panels that are sold, supplied, or offered for sa le in the United States would have to be labeled 1565 with the name of the panel pr oducer, the lot or batch number, the number of the accredited TPC, 1566 and markings indicating that the product complies with the TSCA Title VI emission standards. 1567 Labels for products produced under the NAF exempti on discussed in Unit III.F. would also have 1568 to include the designation “no-added formaldehyde.” There would also have to be a statement of 1569 compliance on the bill of lading or invoice. As is required under CARB, distributors, 1570 wholesalers, and retailers who receive labele d bundles of regulated composite wood products 1571 and then divide and repackage them, whether in b undles or separately, must label each separate 1572 bundle or item with the same information as require d on the original label. EPA is proposing to 1573 define the term “bundle” as more than one composite wood product panel, component part, or 1574 finished good fastened together for transportation or sale. EPA requests comment on the utility 1575 of this definition and whether it repr esents common industry usage. 1576 Fabricators of finished goods containing composite wood pro ducts would be required to 1577 label every finished good they produce, or ev ery box containing finished goods. As permitted by 1578 under the CARB ATCM, EPA is proposing to allow the label to be app lied as a stamp, tag, 1579 sticker, or bar code. It would have to include, at a minimum, the fabricator’s name, the date the 1580 finished good was produced and a marking to de note that the product was made in compliance 1581 with TSCA Title VI. EPA requests comment on wh ether a label applied as a bar code should be 1582 permitted, given that consumers of finished goods may not be able to read bar codes. EPA 1583 believes that many consumers of finished goods will be aware of the labeling requirements, 1584 either under the CARB ATCM or TSCA Title VI, and will be looking for a label that indicates 1585 compliance with the emission standards. 1586 EPA proposes to allow boards to be shipped into and around the United States for quality 1587*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 71 of 153 [RIN 2070–AJ92] control or quarterly tests. Th ese boards may not be sold, offe red for sale or supplied to any 1588 entity other than a TPC laboratory or contract laboratory prior to successful emissions testing. 1589 These boards or bundles must be labeled “For TSCATitle VI testing only, not for sale in the 1590 United States.” The boards or bundles may be re -labeled as compliant with TSCA and offered 1591 for sale once they have successfully completed testing. 1592 I. Sell-through Provisions and Stockpiling 1593 TSCA Title VI directs EPA to establish sell-through provisions for composite wood 1594 products, and finished goods containing regu lated composite wood products, based on a 1595 designated date of manufacture, or “manufactured-by” date. U nder the statute, composite wood 1596 products or finished goods manufactured before the specified manufactured-by date are not 1597 subject to statutory emission standards or testing requirements. TSCA Ti tle VI states that the 1598 manufactured-by date must be no earlier than 180 days after promulgation of the final 1599 implementing regulations, but EPA has the discreti on to establish, by rulema king, a later date. 1600 The manufactured-by date approach directed by TSCA Title VI differs from the CARB 1601 ACTM approach, which is based on a sell-through date. CARB esta blished a series of dates by 1602 which products that are not compliant with all of the CARB requirements must be sold. In 1603 contrast, TSCA Title VI requires EPA to set a date by which all new products that are 1604 manufactured must be compliant with the emission standards. This approach should avoid some 1605 of the implementation issues encountered by CARB. For example, due to the economic 1606 recession, CARB found it necessary to extend the sell -through dates more than once to allow for 1607 the slow turnover of preexist ing inventory (Ref. 37, 38). 1608 TSCA Title VI also directs EPA to prohibi t the sale of inventory that was stockpiled, 1609 which is defined in the statute as manufacturi ng or purchasing composite wood products between 1610*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 72 of 153 [RIN 2070–AJ92] the date the statute was enacted and the manufactured-by date at a rate significantly greater than 1611 the rate during a particular base period. EPA is directed to define what constitutes “a rate 1612 significantly greater” and to establ ish the base period. Under the statute, the base period must 1613 end before July 7, 2010, the date that the Formaldehyde Standards for Composite Wood Products 1614 Act was enacted. 1615 EPA believes that because many products are already CARB ATCM-compliant, and 1616 because of a low consumer demand for products not CARB ATCM-compliant, stockpiling is not 1617 likely to be advantageous for manufacturers. During the SBAR Panel process, at least one SER 1618 commented that consumers were asking for CARB compliant product prior to the end of the 1619 CARB sell-through periods (Ref. 15). Moreover, EPA believes that the cost of storing 1620 stockpiled goods would reduce or eliminate any economic advantage to stockpiling. Another 1621 SER commented that “[g]iven the cost of ca rrying inventory there is a natural brake on 1622 accumulating non-complying inventories long before the effective date of the regulation.” (Ref. 1623 15). 1624 EPA proposes to set the manufactured-by date at 1 year after publica tion of the final rule 1625 in the Federal Register . Although TSCA Title VI allows EPA to set this date at 180 days after 1626 promulgation of the final implementing regulations, EPA believes that more time will be needed 1627 to get all of the infrastructure , such as the accredited TPCs, in place and allow panel producers 1628 time to develop their initial qualifying data for certification. The manu factured-by date would 1629 apply to both regulated composite wood pane ls and finished goods containing regulated 1630 composite wood panels. Composite wood products th at can be shown to be manufactured before 1631 the established manufactured-by date would not be subject to the emissions standards, nor would 1632 they be required to be labele d or tested for emissions. Composite wood products manufactured 1633*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 73 of 153 [RIN 2070–AJ92] before the manufactured-by date could be inco rporated into finished goods at any time. 1634 Retailers, fabricators, and distributors would be permitted to continue to buy and sell these 1635 composite wood products and finished goods that incorporate these products, because they 1636 would be considered compliant with TSCA Title VI and its implementing regulations, assuming 1637 the absence of stockpiling as discussed below. Under TSCA, the term “manufacture” includes 1638 import, so the “manufactured-by” date would eff ectively be an “imported-by” date for imported 1639 goods. 1640 In order to establish that a regulated co mposite wood product panel was made before the 1641 manufactured-by date, the panel pr oducer or importer and any subs equent distributor , retailer or 1642 fabricator would be required to keep records that document whenthe product was manufactured. 1643 In the case of a finished good, any subsequent distributor, retailer or fabr icator would be required 1644 to keep records that document that the composite wood products making up the finished good 1645 were either manufactured before the manufactured-by date or were manufactured in accordance 1646 with TSCA Title VI. In order to reduce consumer confusion, pr oducts that are made before the 1647 manufactured-by date would not be labeled as co mpliant with TSCA Title VI. Selling stockpiled 1648 regulated composite wood panels and finished goods containing regulated composite wood 1649 products would be prohibited. EPA proposes to define stockpiling as manufacturing or 1650 purchasing composite wood products between Ju ly 7, 2010, the date that the Formaldehyde 1651 Standards for Composite Wood Products Act wa s signed into law by the President, and the 1652 established manufactured-by date (1 year after the final regulations are promulgated), for the 1653 purpose of circumventing the TSCA Title VI emissi on standards, at an average annual rate ten 1654 percent greater than the amount manufactured or purchased duri ng the 2009 calendar year. For 1655 producers of regulated composite wood panels, st ockpiling would be measur ed by square footage 1656*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 74 of 153 [RIN 2070–AJ92] of regulated composite wood panels produced. Fo r importers and fabricators of finished goods 1657 containing regulated composite wood products, st ockpiling would be measured by the square 1658 footage of regulated composite w ood panels purchased to be inco rporated into finished goods. 1659 In either case, entities that can demonstrate that they have a greater than ten percent increase in 1660 purchasing or production of regulated compos ite wood panels for some reason other than 1661 circumventing the emissions standards would not be deemed to be stockpiling. Other reasons 1662 may include an immediate increase in custom er demand or sales, or a planned business 1663 expansion. EPA requests comment on whether the stockpiling provisions should apply to 1664 entities that were not in existence at the beginning of calendar year 2009. 1665 EPA specifically requests comment on whethe r it is appropriate to set the proposed 1666 manufactured-by date at the date 1 year after the final impl ementing regulations are promulgated. 1667 EPA requests comment on alternate dates, and th e rationale, including any available information 1668 and data, for selecting another date. EPA is al so interested in how different manufactured-by 1669 dates would affect panel producer s and fabricators of products th at are not regu lated under the 1670 CARB ATCM, but would be regulated under TSCATitle VI. EPA recognizes that increased 1671 production during the period after th e statute was enacted may verywell be due to the economic 1672 recovery and not to a desire on the part of panel producers, importers, and fabricators to 1673 circumvent the emission standards. EPA requests comment on the proposed stockpiling 1674 definition, including information and data fo r alternate baseline periods, rates, and 1675

measurements. 1676 J. Import Certification 1677 TSCA Title VI directs EPA, in coordination with U.S. Customs and Border Protection 1678 (CBP) and other appropriate Federal departme nts and agencies, to revise regulations 1679*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 75 of 153 [RIN 2070–AJ92] promulgated pursuant to TSCA § 13 as necessary to ensure compliance. The TSCA § 13 1680 regulations, promulgated by CBP, require importers to certify that shipments of chemical 1681 substances and mixtures are in compliance withTSCA or not subject to TSCA. EPA believes 1682 that most, if not all, products subject to TSCA Title VI would be considered articles. Articles, 1683 defined in 19 CFR § 12.120(a), are generally fo rmed to specific shapes or designs during 1684 manufacture and have end use func tions related to their shape or design. Articles are generally 1685 exempt from the TSCA § 13 certification requi rements, but the regulations at 19 CFR § 1686 12.121(b) recognize that EPA has the authority to, by regulation or order, make the requirements 1687 applicable to articles. 1688 EPA is proposing to specifically require TSCA § 13 import certification for composite 1689 wood products that are articles. TSCA § 13 im port certification is a valuable compliance 1690 monitoring tool, and import certification for articl es subject to TSCA Title VI would also serve 1691 as an important reminder of the TSCA Title VI requirements to the importer. The certification 1692 requirement would apply to imports of hardwood plywood, particleboard, and medium-density 1693 fiberboard panels, as well as finished goods containing such materials. Persons importing 1694 specifically-exempted products, su ch as structural or curved plywood, and finished goods 1695 incorporating such produc ts, would not be required to certify. 1696 EPA generally believes that the existing im port certification regulat ions, along with the 1697 specific labeling and recordkeepi ng requirements for composite w ood products discussed in Unit 1698 III.H., are sufficient to ensure compliance with TSCA Title VI. However, EPA has begun 1699 consultations with CBP on the TSCA § 13 import regulations to determine whether revisions are 1700 warranted. 1701 K. Enforcement. 1702*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 76 of 153 [RIN 2070–AJ92] The failure to comply with any provis ion of TSCA Title VI, or the regulations 1703 implementing TSCA Title VI, is a prohibite d act under TSCA section 15. Any person who 1704 commits a prohibited act under TSCA section 15 can be held liable for civil and criminal 1705 penalties. 1706 L. Report to Congress. 1707 Section 3 of the Formaldehyde Standard s for Composite Wood Products Act requires 1708 EPA to report to Congress on an annual basi s beginning in July 2011 and continuing through 1709 2014. These reports must describe the status of th e measures carried out orplanned to be carried 1710 out pursuant to TSCA Title VI and the extentto which relevant industries have achieved 1711 compliance with the requirements of TSCA Title VI. The statute directs EPA to promulgate 1712 final implementing regulations by January 1, 2013. EPA is proposing to make the manufactured1713 by date 1 year after the final rule is promul gated, which would mean composite wood products 1714 manufactured through 1 year after promulgation would not be subjec t to the emission standards. 1715 EPA requests comment on how data on industry compliance could or should be obtained, and 1716 whether a reporting requirement woul d best accomplish this goal. 1717 IV. References 1718 As indicated under ADDRESSES, a docket has been established for this rulemaking 1719 under docket ID number EPA-HQ-OPPT-2011-0380. The following is a listing of the 1720 documents that are specifically referenced inthis proposed rule. The docket includes these 1721 documents and other information considered by EPA, including documents that are referenced 1722 within the documents that are included in the docket, even if the referenced document is not 1723 physically located in the docket. For assistance in locating these other documents, please consult 1724 the technical contact listed under FOR FURTHER INFORMATION CONTACT. 1725*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 77 of 153 [RIN 2070–AJ92] 1. US Environmental Protection Agency (EPA ). Formaldehyde; Third-Party Certification 1726 Framework for the Formaldehyde Standards for Composite Wood Products Rule. Federal 1727 Register . XX FR XXXXX (XXXX). 1728 2. California Environmental Protection Agen cy Air Resources Board. Airborne Toxic 1729 Control Measure to Reduce Formaldehyde Emi ssions from Composite Wood Products. Final 1730 Regulation Order. April 2008. 1731 http://www.arb.ca.gov/regact/2007/compwood07/compwood07.htm 1732 3. Agency for Toxic Substances and Dis ease Registry (ATSDR). 1999. Toxicological 1733 Profile for Formaldehyde and 2010 Addendum to the Profile. Atlanta, GA: U.S. Department of 1734 Health and Human Services, Public Health Service. 1735 4. National Toxicology Program, U. S. Department of Health and Human Services (HHS), 1736 12th Report on Carcinogens, June 10, 2011. 1737 5. USEPA Office of Research and Development (ORD). Form aldehyde. Integrated Risk 1738 Information System (IRIS). 1991. ht tp:// www.epa.gov/iris/subst/0419.htm. 1739 6. USEPA Office of Air and Radiation ( OAR). National Emission Standards for 1740 Hazardous Air Pollutants: Plywood and Compos ite Wood Products; List of Hazardous Air 1741 Pollutants, Lesser Quantity Designations , Source Category List; Final Rule. Federal Register 1742 (71 FR 8341, February 16, 2006) (FRL–8028–9) . http://www.epa.gov/ttn/atw/plypart/ 1743 fr16fe06.pdf. 1744 7. USEPA, ORD. Memorandum from Pe ter Preuss to Steve Page entitled 1745 “Recommendation for Formaldehyde Inhalation Cancer Risk Values” (January 22, 2010). 1746 8. USEPA, ORD. IRIS Toxicological Revi ew of Formaldehyde-Inhalation Assessment 1747 (2010 External Review Draft). 1748*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 78 of 153 [RIN 2070–AJ92] http://cfpub.epa.gov/ncea/iris_dr afts/recordisplay .cfm?deid=223614

. 1749 9. National Academy of Sciences (NAS). Review of the Environmental Protection 1750 Agency's Draft IRIS Assessment of Formaldehyde (2011). 1751 http://www.nap.edu/cata log.php?record_id=13142

. 1752 10. USEPA Approach Document (2011). 1753 11. USEPA. Formaldehyde Emissions from Composite Wood Products; Disposition of 1754 TSCA Section 21 Petition; Notice. Fede ral Register (73 FR 36504, June 27, 2008). 1755 12. American National Standards Institu te (ANSI)/Hardwood Plywood and Veneer 1756 Association (HPVA). American National St andard for Hardwood and Decorative Plywood, 1757 ANSI/HPVA HP-1-2009. 1758 13. US Department of Commerce (DOC), Nati onal Institute of Standards and Technology 1759 (NIST), Technology Administration. Voluntary Product Standard PS-1- 07 (2007), Structural 1760 Plywood. 1761 14. USDOC, NIST. Voluntary Product Standard PS-2-04 (2004), Performance Standard 1762 for Wood-Based Structural-Use Panels. 1763 15. USEPA. Report of the Small Business Advocacy Review Panel on EPA’s Planned 1764 Proposed Rule Implementing the Formaldehyde Standards for Composite Wood Products Act 1765 (TSCA Title VI) (Apr. 4, 2011). 1766 16. Composite Panel Association (CPA). VOC Emission Barrier Effects of Laminates, 1767 Overlays and Coatings for Particleboard, Medi um Density Fiberboard (MDF) and Hardboard 1768 (2003), available at 1769 http://www.pbmdf.com/cpa30/files/cc LibraryFiles/Filename/000000000738/TB%20VOC.pdf

. 1770 17. HPVA. Comments of the Hardwood Pl ywood and Veneer Association (HPVA) 1771*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 79 of 153 [RIN 2070–AJ92] Submitted to the Environmental Protection Agen cy (EPA) on the Advanced Notice of Proposed 1772 Rulemaking (ANPR) for Formaldehyde from Certain Wood Products (March 19, 2009). 1773 18. ANSI. American National Standard for Particleboard A208.1–2009. 1774 19. ANSI. American National Standard for Medium Density Fiberboard (MDF) for 1775 Interior Applications, ANSI A208.2–2 2009. 1776 20. ANSI. American National Standard, Basic Hardboard, ANSI A135.4 2004. 1777 21. ANSI. American National Standard, Pr efinished Hardboard Paneling, ANSI A135.5 1778
2004. 1779 22. ANSI. American National Standar d, Hardboard Siding, ANSI A135.6 2006. 1780 23. Kelly, T. I., D. L. Smith, J. Satola. Em ission Rates of Formaldehyde from Materials 1781 and Consumer Products Found in California Home s. Environmental Science & Technology Vol. 1782 33: 81-88 (1999). 1783 24. Georgia Pacific LLC. Letter (August 15, 2011). 1784 25. ASTM International. ASTM E-1333-96, St andard Test Method for Determining 1785 Formaldehyde Concentrations in Air and Emi ssion Rates from Wood Products Using a Large 1786 Chamber. 1787 26. ASTM International. ASTM D-6007-02 (2008), Standard Test Method for 1788 Determining Formaldehyde Concentrations in Air from Wood Products Using a Small-Scale 1789 Chamber. 1790 27. ASTM International. ASTM D 5582-00 (2006), Standard Test Method for 1791 Determining Formaldehyde Levels from Wood Products Using a Desiccator. 1792 28. ASTM International. ASTM E-1333-10, St andard Test Method for Determining 1793 Formaldehyde Concentrations in Air and Emi ssion Rates from Wood Products Using a Large 1794*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 80 of 153 [RIN 2070–AJ92] Chamber. 1795 29. CEN, European Committee for Standardization. EN 717-2 (1995), Wood-based 1796 panels. Determination of formaldehyde releas e-Formaldehyde release by the gas analysis 1797 method, English Version. 1798 30. Dynamic Micro Chamber method. 1799 31. CEN, European Committee for Standardization. EN 120 (1992), Wood based panels. 1800 Determination of formaldehyde content-Extrac tion method called the perforator method, English 1801 Version. 1802 32. Japanese Standards Association, Japane se Industrial Standards. JIS A 1460 (2001), 1803 Building boards determination of Formaldehyde emission-Desiccator method, English Version. 1804 33. Composite Panel Association, Formaldehyde Grademark Program Quality Assurance 1805 Manual (January 1, 2007). 1806 34. CARB Supplemental Analysis. 1807 35. CARB. Third Party Certification Guidelin e: Establishing a Correlation with an 1808 Acceptable Correlation Coefficient (“r” Value), Guideline No. 10-001 (June 8, 2010). 1809 36. Frihart, C.R., Wescott, J.M., Birkela nd, M. J., and Gonner, K.M. “Formaldehyde 1810 Emissions from ULEF- and NAF-Bonded Comme rcial Hardwood Plywood as Influenced by 1811 Temperature and Relative Humidity.” Proceedings of the International Convention of Society of 1812 Wood Science and Technology and United Nations Economic Commission for Europe—Timber 1813 Committee, October 11-14, 2010, Geneva, Switzerland. 1814 http://www.fpl.fs.fed.us/documnts/pdf2010/fpl_2010_frihart005.pdf

. 1815 37. CARB. Composite Wood Pr oducts Regulation Advisory: 10-01, Extension of Sell1816 Through Date for Distributors, Fabricators, and Retailers of Pr e-Phase 1 Finished Goods (July 1817*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 81 of 153 [RIN 2070–AJ92] 2010). 1818 38. CARB. Composite Wood Pr oducts Regulation Advisory: 11-01, Extension of Sell1819 Through Dates for Distributors, Importers, Fabr icators, and Retailers of Finished Goods 1820 Containing Phase 1 Hardwood Plywood - Veneer Core and Distributo rs of Phase 1 Particleboard 1821 and Medium Density Fiberboard Panels (May 2011). 1822 39. USEPA. Economic Analysis of the Fo rmaldehyde Standards for Composite Wood 1823 Products Act Implementing Regulations Proposed Rule (Economic Analysis) (February 2012). 1824 40. Hanrahan, L. P., K. A. Dally, H. A. Anderson, M. S. Kanarek and J. Rankin. 1825 Formaldehyde vapor in mobile homes: a cross sec tional survey of concentrations and irritant 1826 effects. Am. J. Public Health. 74: 1026-1027 (1984). 1827 41. McGwin, G., Jr., J. Lienert and J. I. Kennedy, Jr. Formaldehyde Exposure and 1828 Asthma in Children: A Systematic Review. Environmental Health Perspectives. 118 : 313-317 1829 (March 2010). 1830 42. Taskinen, H. K., P. Kyyronen, M. Sallme n, S. V. Virtanen, T. A. Liuldwnen, O. 1831 Huida, M. L. Lindbohm and A. Anttila. Re duced Fertility Among Female Wood Workers 1832 Exposed to Formaldehyde. American Journal of Industrial Medici ne. 36: 202-221 (1999). 1833 43. USEPA. Information Collection Reque st (ICR) for the Formaldehyde Emission 1834 Standards for Composite Wood Products Act Impl ementing Regulations (Proposed Rule). EPA 1835 ICR No. 2446.01 and OM B No. 2070-[NEW]. 1836 44. USEPA. Initial Regulatory Flexibili ty Analysis for Formaldehyde Emission 1837 Standards for Composite Wood Products ; Proposed Rule (February 2012). 1838 45. USEPA. Unfunded Mandates Reform Ac t Statement. Formaldehyde Emission 1839 Standards for Composite Wood Products ; Proposed Rule (February 2012). 1840*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 82 of 153 [RIN 2070–AJ92] V. Statutory and Executive Order Reviews 1841 A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: 1842 Improving Regulation and Regulatory Review 1843 Under section 3(f)(1) of Executive Orde r 12866 (58 FR 51735, October 4, 1993), this 1844 action is an "economically signifi cant regulatory action” because it is likely to have an annual 1845 effect on the economy of $100 million or more in th e first year of implementation. Accordingly, 1846 EPA submitted this action to the Office of Management and Budget (OMB) for review under 1847 Executive Orders 12866 and 13563 (76 FR 3821, January 21, 2011) and any changes made in 1848 response to OMB recommendations have been documented in the docket for this action. 1849 EPA has prepared an analysis of the potenti al costs and benefits associated with this 1850 rulemaking. This analysis is contained in the Economic Analysis of the Formaldehyde Standards 1851 for Composite Wood Products Act Implementing Regulations Proposed Rule (Economic 1852 Analysis, Ref. 39) and is briefly summa rized here, and in more detail below. 1853
1854 Category Description Benefits This proposed rule will reduce e xposures to formaldehyde, resulting in benefits from avoided adverse health effects. For the subset of health effects where the results were quantified, the estimated annualized benefits (due to avoided incidence of asthma, eye irritation, n asopharyngeal cancer, and reduced female fertility) are $184 million to $278 million per year using a 3% discount rate, and $91 million to $137 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 proposedrule are estimated at $72 million to $81 million per year using a 3% discount rate, and $81 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 intergovernmental mandate, significant or unique effect on small governments, or have Federalism implications. Small Entity Impacts This rule would impact n early 879,000 small busin esses: 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 firm s have impacts greater than 3% of revenues. Most firms with impacts over 1% have annualized costs of less than $250 per year.*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 83 of 153 [RIN 2070–AJ92] Category Description Environmental Justice and Protection of Children This rule increases the level of envi ronmental protection for all affected populations without having any dispro portionately high and adverse human health or environmental effects on any population, including any minority or low-income population or children. 1855
1. Entities subject to the rule . EPA analyzed the effect of this proposal on panel 1856 producers, fabricators, wholesalers ( i.e. , distributors and importers) , and retailers. Due to the 1857 similarities between this propos al and the CARB ATCM, the incr emental costs and benefits of 1858 this proposal are determined in part by the degr ee to which firms are already complying with the 1859 ATCM. So the following discussion of the numbe r of entities subject to the TSCA Title VI rule 1860 includes an estimate of baseline compliance with the CARB ATCM. 1861 Mills making hardwood plywood, MDF, or partic leboard panels that would be classified 1862 as a composite wood products under the CARB AT CM are referred to here as stock panel 1863 producers. Thus, stock panel producers do not include facilitie s that only make products 1864 exempted from the CARB ATCM (and that are statutorily excluded from the TSCA Title VI 1865 rule) such as curved plywood, military specifi ed plywood, structural plywood, and wood-based 1866 structural-use panels. There are approximately 90 stock panel mills in the U.S., operated by 54 1867 firms. This count of stock panel producers ex cludes firms making laminated products that are 1868 included in the definition of hardwood pl ywood. These laminated product producers are 1869 discussed separately below. 1870 A total of 79 stock panel mills have been certified as meeting the CARB Phase 2 1871 standards for at least one of their composite wood products. (The Phase 2 standards are 1872 equivalent to the emissions standards in this proposal.) The CARB certified mills are 1873 responsible for virtually all the U.S. pr oduction volume of composite wood products. 1874 Approximately 99.6% of stock hardwood plywood produ ced in the U.S. is certified as meeting 1875*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 84 of 153 [RIN 2070–AJ92] the CARB Phase 2 emissions standard, as is 100% of the MDF production and 98% of the 1876 particleboard production. All of these mills woul d incur costs for rule familiarization under the 1877 TSCA Title VI program. Some of these mills ma y also incur costs to change raw materials and 1878 production processes if they switch from a U LEF certification under the CARB ATCM to a NAF 1879 certification under the TSCA Title VI rule. 1880 There are 16 U.S. stock panel mills making at least one product that is not certified as 1881 meeting the CARB Phase 2 standards. (Some of the 90 stock panel mills make both product 1882 lines that are certified under the CARB ATCM as well as product lines that are not certified 1883 because they are not intended to be sold in Ca lifornia.) These mills would incur costs for 1884 certification and testing due to th e proposal, and some may incur costs to change raw materials 1885 and production processes in order to meet the em ission standards in this proposal. They would 1886 also incur costs for rule familiarization and labeling. 1887 Approximately 7,000 to 14,000 laminated productproducers in the U.S. make products 1888 (such as custom hardwood plywood and architectural panels, windows, doors, kitchen cabinets, 1889 furniture, architectural woodwork and millwork, engineered wood flooring, and other goods) by 1890 affixing veneer to purchased platforms as part of the production process. These laminated 1891 products are regulated as hardwood plywood under this proposal unless they are made using 1892 NAF resins to attach the veneer to compliant and certified platforms, in which case they are 1893 exempted from the definition of hardwood plywood. 1894 The wood products industry commonly uses the term laminates to describe products that 1895 are laminated with materials other than veneer, such as high pressure laminate, thermally fused 1896 paper, vinyl film, decorative foil, or polypropylene film. Such pr oducts are not considered to be 1897 hardwood plywood under this proposal regardless of the type of resin used. So firms making 1898*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 85 of 153 [RIN 2070–AJ92] these products are considered fabricators (discussed below), and are not counted as laminated 1899 product producers. 1900 The estimate of 7,000 to 14,000 laminated product producers excludes firms that use 1901 veneer to make products that are exempted from the definition of hardwood plywood because 1902 they do not create panels (flat or raised rectangular pieces of composite wood product) during the 1903 production process; the products are made by af fixing veneer to substrates other than 1904 particleboard, MDF, or veneer co re platforms; or the products ar e statutorily exempted by TSCA 1905 Title VI (including products used in boats and aircraft, and products not intended for interior use) 1906 or otherwise do not qualify as regulated hardwood plywood (such as curved plywood, military 1907 specified plywood, and structural plywood). 1908 Since laminated products are not consid ered to be hardwood plywood under the CARB 1909 ATCM, they are not certified or tested for emissions under that rule. But in order to be sold in 1910 California, such products must be made using certified composite wood products as platforms, 1911 and they must comply with the labeling and ch ain of custody requirement s in the CARB ATCM. 1912 Nationally, 2,700 to 4,000 of these laminated product producers are assumed to be using 1913 formaldehyde-based resins. It is generally le ss expensive for these firms to switch to a NAF 1914 resin than to pay for the certifi cation and product testing required for panel producers under this 1915 proposal. EPA believes that nearly all lamina ted product producers using formaldehyde-based 1916 resins to attach wood or woody gr ass veneer to compliant and certified platforms will switch to 1917 NAF resins, in order to qualify for the exemp tion from the definition of hardwood plywood in 1918 this proposal. EPA assumes that only about 150 to 300 U.S. laminated product producers will 1919 continue using formaldehyde-based resins, and thus will need to certify and test their products as 1920 a result of this proposal. 1921*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 86 of 153 [RIN 2070–AJ92] There are approximately 80,000 fabricators inthe U.S. making composite wood products 1922 into component parts or finished goods , including the 7,000 to 14,000 laminated product 1923 producers. The other 66,000 to 73,000 fabricator s use composite wood products to make goods 1924 such as architectural components, cabinets, and furniture, without affixing veneer themselves. 1925 Under the CARB ATCM, fabricated products sold inCalifornia must be made using certified 1926 composite wood products, and they must comply with the ATCM’s labeling and chain of 1927 custody requirements. Nationwide, approximate ly 32,000 fabricators (including some laminated 1928 product producers) are estimated to comply withthe labeling and chain of custody requirements 1929 in the CARB ATCM because their products may be sold in California. Firms that sell any 1930 products in California typically follow the CARB ATCM’s requireme nts for all of their products, 1931 including products that are sold outside of California. Suchfirms would still incur rule 1932 familiarization costs due to this proposal. The remaining 48,000 fabricators that do not comply 1933 with the CARB ATCM because they do not sell any products in California would incur costs to 1934 comply with the chain of custody requirements in this proposal, as well as rule familiarization 1935

costs. 1936 Approximately 86,000 U.S. distributors (also re ferred to as wholesalers) are estimated to 1937 sell goods containing composite wood products . As many as 24,000 wholesalers may be 1938 importing composite wood panels or component parts or finished goods containing composite 1939 wood products, and are considered manufacturers under TSCA. (This is the number of firms that 1940 may import the goods themselves, not those that only buy and sell goods imported by others.) 1941 Approximately 32,000 of the 86,000 wholesalers have at least one facility in California, and thus 1942 must comply with the labeling and chain of cu stody requirements in the CARB ATCM. Of the 1943 approximately 759,000 retailers in the U.S. th at sell products cont aining composite wood 1944*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 87 of 153 [RIN 2070–AJ92] products, about 101,000 have at least one facility in California and are following the chain of 1945 custody requirements in the CARB ATCM. Agai n, firms that sell any products in California 1946 typically follow the CARB ATCM’s requirements for all of the products they sell, including 1947 products that are sold outside of California. All wholesale and retail fi rms will incur additional 1948 costs for rule familiarization due to the Titl e VI rule. Of the 24,000 wholesalers importing 1949 composite wood products (who are subject to the rule’s recordkeeping requirements for TSCA 1950 manufacturers), about 15,000 do not have any fa cilities in California. Wholesalers that 1951 repackage products may incur additional la beling costs due to this proposal. 1952
1953 Number of Entities in the United States Subject to the Rule 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 CA RB certified. Depending on the product type, 98% to 100% of U.S. production volume is CARB certified. Laminated product producers ( i.e. , laminators) 7,000 to 14,000 firms Laminators are considered fabricators 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 ATCM requirements, of which 9,000 are importers. Retailers 759,000 firms 101,000 are subject to CARB ATCM requirements. Total 925,000 firms 1954
2. Options evaluated . Congress directed EPA to cons ider a number of elements for 1955 inclusion in the implementing regulations, and EPA considered various options for addressing 1956 these elements. For many of the provisions, such as the product-inventory sell-through provision 1957 and the stockpiling prohibition, EPA did not have th e data needed to make quantitative estimates 1958 of the effects of different options. EPA did have sufficient information to analyze several 1959*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 88 of 153 [RIN 2070–AJ92] different options for how laminated products mightbe included in the definition of hardwood 1960 plywood, and for the chain of custody and record keeping required by the rule. The Economic 1961 Analysis discusses emissions standards that are di fferent from those set in TSCA Title VI. That 1962 discussion is simply for informational purposes, and the breadth of the discussion should not 1963 necessarily imply that EPA has corresponding flex ibility in implementing the statute. Among 1964 the analytical options based on th e formaldehyde emission standards that are set in Title VI of 1965 TSCA, the Economic Analysis includes options to exempt all laminated products from the 1966 definition of hardwood plywood; not exempt any la minated products from the definition; exempt 1967 all laminated products except custom plywood and architectural panels from the definition; 1968 exempt laminated products made by attaching a wood veneer to a NAF platform using a NAF 1969 resin from the definition; exempt laminated products made by attaching a wood veneer to a 1970 compliant and certified platform using a NAF resin from the definition; and the proposed option 1971 to exempt laminated products made by attachin g a wood veneer to a compliant and certified 1972 platform using a NAF resin from the defin ition combined with reduced recordkeeping 1973 requirements for firms that do not qualify as manufacturers under TSCA (i.e ., certain distributors 1974 and retailers), and with no requirement for firm s to inform their suppliers that the products 1975 supplied must comply with TSCA Title VI. 1976
1977 Option Description Option SE All laminated products are exempt from the definition of hardwood plywood. Option SI All laminated products are in cluded in the definition of hardwood plywood. Option SP All laminated products are exempt from the definition of hardwood plywood except architectural panels and custom plywood. Option SN Laminated products made usi ng NAF resins to attach veneer to platforms certified as NAF are ex empt from the definition of hardwood plywood.*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 89 of 153 [RIN 2070–AJ92] Option Description Option SC Laminated products made usi ng NAF resins to attach veneer to compliant and certified platforms ar e 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 a re exempt from the definition of hardwood plywood; reduced recordkeeping requirements for firms that do not qualify as manufacturers under TSCA; no requirement to inform suppliers th at the products supplied must comply with TSCA Title VI. 1978 1979 3. Benefits . Reductions of formaldehyde emi ssions from composite wood products 1980 benefits individuals who reside, work, or othe rwise spend a substantia l amount of time where 1981 new composite wood products are introduced to an indoor space. The Economic Analysis (Ref. 1982 39) estimates the benefits of the options ove r a 30 year period for lowering formaldehyde 1983 emissions from composite wood products. 1984 This benefits analysis uses an age-de pendent exposure analysis that includes 1985 formaldehyde exposure from homes, daycare, sc hools, workplace, vehicles, and outdoors. For 1986 each option, there are 3,300 different exposure s cenarios derived from 22 different composite 1987 wood product age/source combinations, 5 structur e types, 5 climate zones, and 6 individual 1988 age/employment status combinations. Changes in exposure are estimated by changing the two 1989 broad categories where a s ubstantial amount of new composite wood products might be 1990 introduced: new home construction and major re novations that include kitchen remodeling. 1991 Changes in the risk of the adve rse health outcomes associated with the changes in exposure are 1992 estimated for nasopharyngeal cancer and three n on-cancer health effect s: sensory irritation, 1993 asthma incidence, and female reproductive toxicity ( i.e. , reduced fertility). 1994 The total annualized benefits of the pr oposed option are between $184 million and $278 1995 million per year (in 2010 dollars) using a 3% discount rate, and between $91 million and $137 1996*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 90 of 153 [RIN 2070–AJ92] million per year using a 7% discount rate. Usin g a 3% discount rate, about 85% of the total 1997 benefits are attributable to reduc tions in asthma risk and about 14% are attributable to reductions 1998 in cancer risk. Only about 2% of the total benefi ts are attributable to avoiding eye irritation and 1999 reduced fertility. The benefits under the proposed option (Option SCR) are less than 4% lower 2000 those of the most protective option (Option SN). The most protective option (Option SN) has 2001 benefits that are less than 20% larger than the benefits of the le ast protective option (Option SE). 2002 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 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. 2003 Formaldehyde is classified as a known human carcinogen by the National Toxicology 2004 Program, based on evidence in humans and animals (Ref. 4). This analysis uses the EPA’s 1991 2005 IRIS Inhalation Unit Risk factor of 1.3×10 -5 cancer cases per μ g/m 3 of formaldehyde. In June 2006 2010, EPA released a draft IRIS Toxicological Review of Formaldehyde that recommended a 2007 different unit risk factor and recommended the use of age-dependent adjustment factors 2008*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 91 of 153 [RIN 2070–AJ92] (ADAFs) to account for age-specific suscep tibility. This draft assessment underwent 2009 independent scientific peer re view by the National Academy of Sciences (NAS). However, 2010 given that EPA is currently in the process of revising the IRIS asse ssment based on the NAS 2011 review and public comments, the 1991 IRIS valu e is used to analy ze this proposed rule. 2012 The benefits of a reduction in cancer risk are based on the value of a reduction in the risk 2013 an individual will ultimately die from the cancer (re ferred to as fatal cancer), and a reduction in 2014 the risk an individual will ultimat ely die from something other th an the cancer (referred to as 2015 non-fatal cancer). These two categories reflec t the two possible outcomes for nasopharyngeal 2016 cancer and do not reflect differe nt types of cancer. The number of excess cancer cases was 2017 estimated and then divided into these two categ ories: 44.7% of the cancer risk reductions are 2018 assumed to be reductions in non-fatal cancer risk and 55.3% of the reductions are assumed to be 2019 reductions in fatal cancer (mortality) risk. Th e value of reduced mortality risk is $8.01 per 2020 mortality micro-risk reduction – that is, a redu ction of 1/1,000,000 in the risk of mortality. Non2021 fatal cases of nasopharyngeal cancer were valued using a cost-of-il lness approach. The value of 2022 an avoided case of non-fatal na sopharyngeal cancer was estimated to be the present discounted 2023 value of the stream of expected medical expendit ures and opportunity cost s associated with the 2024 illness from the year of diagnosis, taking into account that the individual ma y die of other causes. 2025 Costs include the cost of diagnos is, initial treatment costs, an d “maintenance” costs in each 2026 subsequent year. The stream of annual costs de pends on the stage of the cancer at diagnosis, the 2027 individual’s age at diagnosis, and the individual’s employment st atus each year after diagnosis, 2028 resulting in a value of $0.09 to $0.14 per micro-risk reduction. 2029 The benefits associated with avoiding non-can cer health impacts are described in an EPA 2030 report titled “Approach to Assessing Non-cancer Health Effects from Formaldehyde and 2031*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 92 of 153 [RIN 2070–AJ92] Benefits from Reducing Non-cancer Health Eff ects as a Result of Implementing Formaldehyde 2032 Emission Limits for Composite Wood Products” (Ref. 10). The 2010 draft IRIS assessment 2033 identified seven categories of non-cancer health effects and proposed RfCs based on four effects: 2034 sensory irritation, pulmonary function effects, as thma and allergic sens itization (atopy), and 2035 reproductive toxicity. The NAS su pported the derivation of candida te reference concentrations 2036 (RfCs) for each of these four endpoints based on human epidemiologic data (Ref. 9), but EPA 2037 determined there was sufficient information for quantitative concentration-response modeling for 2038 use in EPA’s economic analysis for only three categories of effects: ey e irritation, asthma, and 2039 female reproductive toxicity. In the 2011 non-cancer approach document, EPA derived 2040 concentration-response functions from pref erred studies for these three endpoints and 2041 recommended accompanying unit values for use in the benefits assessment. The available data 2042 on pulmonary function effects could not be advanced because it was not possible to link specific 2043 decrements in pulmonary function with specific ec onomic costs and any associated benefits were 2044 not monetized. Likewise, benefits from the redu ction of the other non-ca ncer effects for which 2045 candidate RfCs were not deri ved were also not monetized. 2046 Information from two studies reporting se nsory irritation in humans from chronic 2047 formaldehyde inhalation exposures in a residential environment were combined to create the 2048 concentration-response function for eye irritation. The function was based on a power model fit 2049 to the odds ratio of the prevalence of burni ng eyes reported in Figure 1 of Hanrahan et al . (Ref. 2050 40). This function was then used with a willingn ess to pay to avoid ey e irritation of $26 to 2051 calculate the monetized benefits of reducedsensory irritation for all individuals. 2052 The concentration-response function for asthma incidence was developed based on a 2053 meta-analysis of formaldehyde-associated childhood asthma conducted by McGwin et al . (Ref. 2054*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 93 of 153 [RIN 2070–AJ92] 41). This meta-analysis was based on seven peer-reviewed studies providing quantitative 2055 information on the association between formalde hyde exposure and asthma in children, with 2056 mean ages in the studies from 2 to 14 years with a range from 6 months to 17 years. The NAS 2057 report (2011) noted that, while Rumchev and coauthors (2002) interpreted the health outcome in 2058 their study as a diagnosis of asthma, study partic ipants of such young ages are now thought to 2059 have been more likely to have actually had lo wer respiratory illnesse s with wheezing of an 2060 infectious etiology, a diagnosis which could of ten have been mislabeled as asthma. The 2061 remaining six studies were used to develop a pooled random effects odds ratio. The willingness 2062 to pay to avoid chronic asthma was calculated as the net present value of the stream of annual 2063 willingness to pay values to avoid the disease over a lifetime. A range of $35,443 to $66,064 2064 was used to calculate the benef it of avoiding one statistical case of chronic asthma. Combining 2065 the concentration-response information with the unit cost, incidence rates, and other relevant 2066 terms, the analysis estimates the monetized benef its of avoiding the development of asthma. The 2067 analysis calculates a lower benefits estimate ba sed on avoiding asthma in children ages 6 through 2068 17, and a higher benefits estimate based on avoiding asthma in children ages 2 through 17 . 2069 The concentration-response relationship fo r female reproductive toxicity is based on a 2070 retrospective cohort study by Taskinen et al . (Ref. 42). Estimates of mean daily exposure to 2071 formaldehyde were based on measurements taken at factories in Finland during the early 1990s. 2072 The concentration-response function was estimated by fitting a linear regression to formaldehyde 2073 concentrations and the corresponding fraction of female factory workers aged 20 to 40 who took 2074 longer than 12 months to conceive. The value of avoided infertility used in the benefits analysis 2075 is estimated using a weighted cost of illness approach based on the costs of treating infertility, 2076 either through medication to stim ulate ovulation, artificial insemination, or in vitro fertilization. 2077*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 94 of 153 [RIN 2070–AJ92] This was used to estimate the monetized benef its of reduced reproducti ve toxicity for women 2078 between the ages of 20 and 40, resulting in anestimate of $1,969 to $5,336 to avoid reduced 2079 fertility. 2080 There are three reasons w hy the total economic benefits reported above may be 2081 underestimated. First, there are a number of potential heal th effects that are notincluded in this 2082 analysis. In addition to cancer , the 2010 draft IRIS assessment enumerated potential health 2083 outcomes from formaldehyde exposure including sensory irritation, upper respiratory tract 2084 pathology, pulmonary function effects, asthmaand allergic sensiti zation, immune function 2085 effects, neurological and behavi oral toxicity, and developmenta l and reproductive toxicity. 2086 However, monetization of any health endpoint requires an estimated concentration-response 2087 function that can be appropriatelylinked for use in the economic analyses. At this time, only 2088 three non-cancer health effects – sensory irritation, asthma, and female reproductive toxicity – 2089 have sufficient data for such quantitative con centration-response modeling. Second, while the 2090 cancer benefits were evaluated using the unit risk as a reasonable upper bound on the central 2091 estimate of risk, the non-cancer benefits were evaluated using centr al estimates of the 2092 concentration-response functions rather than upper (or lo wer) bounds which could also 2093 underestimate any associated economic benefits. Third, the valuation of some of these endpoints 2094 relies on cost-of-illness estimates rather than willingness to pay. In general, cost of illness 2095 estimates only capture mitigating and indirect costs, omitting averting expenditures and lost 2096 utility associated with pain and suffering, and are, therefore, considered to be underestimates of 2097 economic benefits. 2098
4. Costs . The Economic Analysis estimates the in cremental cost to firms located in the 2099 U.S. of complying with the requirements of the pr oposal compared to the ac tivities that firms are 2100*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 95 of 153 [RIN 2070–AJ92] already undertaking, often in response to the CARB ATCM. Depending on their baseline 2101 compliance with the CARB ATCM, panel producers may incur costs for thir d-party certification, 2102 testing, and changes to raw ma terials and production processes where necessary to meet the 2103 emissions standards. Panel producers and othe r regulated firms may incur costs for labeling, 2104 recordkeeping and rule familiarization. 2105 Stock panel producers are estimated to incur a total annualized cost of $2 million per year 2106 under either a 3% or 7% discountrate. Laminated product produ cers incur a tota l annualized 2107 cost of $18 million to $32 million per year us ing a 3% discount rate and $18 million to $33 2108 million per year using a 7% rate. Of this, $3 milli on per year is incurred by firms that convert to 2109 NAF resins in order to qualify for the exemption from the definition of hardwood plywood, $8 2110 million to $16 million per year is spent on testing and certification by firms that continue to use 2111 formaldehyde-based resins and thus do not qualify for the exemption, and the balance is spent on 2112 rule familiarization, labeling, and recordkeepi ng. The remaining fabricators incur a total 2113 annualized cost of $21 million to $26 million per year using a 3% discount rate and $21 million 2114 to $27 million per year using a 7% discount rate. Wholesalers in cur total annualized costs of $16 2115 million per year under a discount rate and $17 m illion per year using a 7% discount rate. 2116 Retailers are estimated to incur total annualized co sts of $10 million per year using a 3% 2117 discount rate and $16 million per ye ar using a 7% discount rate. The proposal is estimated to 2118 result in a total cost of $435 million to $447 million in the first year. Annualized costs of the 2119 proposal are $72 million to $81 million per year usi ng a 3% discount rate and $81 million to $89 2120 million per year using a 7% discount rate. 2121 Given the formaldehyde emissions standards th at are set in Title VI of TSCA, annualized 2122 costs for the other options for laminated products ranged from $100 million to $293 million per 2123*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 96 of 153 [RIN 2070–AJ92] year using a 3% discount rate, and $112 milli on to $311 million per year using a 7% discount 2124

rate. 2125 Costs of Proposed Option by Industry Type (millions 2010$) Industry Type First Year Annualized (3%) Annualized (7%) Low High Low High Low High Stock panel producers $3 $3 $2 $2 $2 $2 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 $435 $447 $72 $81 $81 $89 Low and high end scenarios reflect the estimated number of laminators and the number of product lines certi fied per firm, not the low and high costs for each category of entities. 2126 Total Costs by Option (millions 2010$) 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 $194 $293 $208 $311 Option SP $600 $600 $104 $104 $115 $115 Option SN $654 $689 $143 $185 $154 $195 Option SC $609 $621 $112 $121 $123 $132 Proposed Option – Option SCR $435 $447 $72 $81 $81 $89 2127
5. Net benefits . Net benefits are the difference betwee n benefits and costs. The proposal 2128 is estimated to result in net benefits of $103 million to $206 million per year using a 3% discount 2129 rate, and $2 million to $57 million per year using a 7% discount rate. Net benefits for the other 2130 options for regulating laminated products based on the formaldehyde emissions standards that 2131 are set in Title VI of TSCA range from - $109 million to $166 million per year using a 3% 2132 discount rate and -$220 million to $14 million per year. 2133 Annualized Net Benefits by Option (millions 2010$, 3% discount rate)*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 97 of 153 [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 $245 $62 $145 Option SI $194 $293 $184 $278 -$109 $84 Option SP $104 $104 Not estimated Not estimated Not estimated Not estimated Option SN $143 $185 $192 $289 $7 $146 Option SC $112 $121 $184 $278 $63 $166 Proposed Option – Option SCR $72 $81 $184 $278 $103 $206 2134 Annualized Net Benefits by Option (millions 2010$, 7% discount rate)
Option Costs Benefits Net Benefits Low Estimate High Estimate Lower Estimate Higher Estimate Lower Net Estimate Higher Net Estimate Option SE $112 $112 $80 $121 -$31 $9 Option SI $208 $311 $91 $137 -$220 -$71 Option SP $115 $115 Not estimated Not estimated Not estimated Not estimated Option SN $154 $195 $95 $143 -$99 -$11 Option SC $123 $132 $91 $137 -$41 $14 Proposed Option – Option SCR $81 $89 $91 $137 $2 $57 2135 To further improve the analysis for the fi nal rule, the Agency is also specifically 2136 interested in supporting information on the following questions related to the data, estimates, and 2137 assumptions used in the Agency’s analysis: 2138

. 1. What, if any, differences are there in actual formaldehyde emissions levels between 2139 products made domestically and those imported into the U.S.? Are data available characterizing 2140 the differences in emissions between products that are certified unde r the CARB ATCM and 2141 those that are not certified b ecause they are sold in the U.S. outside of California? 2142

2. 2. Is there evidence that products that do not comply with the CARB ATCM are being 2143 sold in California? If so, are there diffe rences in compliance between products made 2144*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 98 of 153 [RIN 2070–AJ92] domestically and those imported into the U.S.? Is there information available to indicate how the 2145 level of compliance with the TSCA Title VI rule can be expected to differ from compliance with 2146 the CARB ATCM? 2147 3. For each industry that uses veneer to manufacture products, how many firms make 2148 laminated products sold in the U.S. that could potentially be included in the definition of 2149 hardwood plywood under TSCA Title VI because they m eet all of the following criteria: (a) they 2150 affix a wood or woody grass veneer to the face an d/or back of a purchased platform to produce a 2151 component part used in the cons truction or assembly of a fini shed good; (b) they are applying 2152 veneer to a particleboard, MDF, or veneer-core platform; (c) they are making a product that 2153 qualifies as a panel under the propo sed rule, where a panel is de fined as a flat or raised 2154 rectangular piece of composite wood product; and (d) they are making a product that does not 2155 qualify for one of the statutory exemptions in TSCA Title VI (such as the exemptions for 2156 products intended for use in a new vehicle such as a rail car, boat, or aircraft, or the exemption 2157 for products intended for exterior use)? 2158 4. To what extent are the laminated produc ts described above currently made using an 2159 added formaldehyde resin to affix the veneer to th e platform? To what extent will these products 2160 continue to use added formaldehyde resins after the TSCA Title VI rule is implemented? What 2161 if any process or performance issues will f ace laminated product producers that switch to NAF 2162 resins? 2163 5. To what extent were firms’ customary recordkeeping practices generally sufficient to 2164 meet the chain of custody requirements in the CA RB ATCM? For firms that had to modify their 2165 recordkeeping systems or practices to complywith the CARB ATCM, how much additional 2166 effort or cost was required, on a one-time or ongoing basis? How do those costs depend on firm 2167*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 99 of 153 [RIN 2070–AJ92] type (panel producer, fabricator, distributor, or retailer), firm size, complexity of the supply 2168 chain, or other factors? 2169 6. What costs did fabricators incur to label their products due to the CARB ATCM? 2170 What factors, such as production volume or the number or complexity of the products, 2171 determined the magnitude of those costs? To whatextent do distributors or retailers apply labels 2172 under the CARB ATCM, either because they are repackaging goods th at were originally labeled 2173 on the packaging instead of on th e individual items, or because they are replacing an original 2174 label applied by the panel producer or fabricator with a label listi ng a different company name? 2175 7. What data are available on the types and quantities of goods containing composite 2176 wood products used within a typical residence? How do these quantities differ by the type of 2177 dwelling (single family attached housing, single family detached housing, multi-family housing, 2178 manufactured housing, etc.)? Are there differences in the typical quantities of composite wood 2179 products used associated with the ra ce or income of the residents? 2180 8. In the absence of a requirement that panel producers hold lots selected for testing until 2181 the test results are received, how likely is it that panels would be shipped before the test results 2182 are available? Given the lower frequency of quality control tes ting for hardwood plywood 2183 producers (including laminators produced pane ls defined as hardwood plywood), how would 2184 such a requirement affect their decision about whether to perform quality control testing for 2185 formaldehyde emissions in-house or to send th e panels to a third party for testing? 2186 9. What data are available on the amount of work or leisure time patients typically miss 2187 as a result of treatment for nasopharyngeal cancer, including the time recovering from 2188 chemotherapy or radiation? 2189 B. Paperwork Reduction Act (PRA) 2190*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 100 of 153 [RIN 2070–AJ92] The information collection requirements in this proposed rule have been submitted to 2191 OMB for review and approval under the PRA, 44 U.S.C. 3501 et seq . The Information 2192 Collection Request (ICR) document prepared by EPA has been assigned EPA ICR number 2193 2446.01, and the OMB Control No. 2070-[new] (Ref. 43). 2194 The new information collection activities containe d in this rule are de signed to assist the 2195 Agency in meeting the requirement in Sect ion 601(d) of TSCA that EPA promulgate 2196 implementing regulations in a manner that ensures compliance with the TSCA Title VI emission 2197 standards. The new information collection requirem ents affect firms that sell, supply, offer for 2198 sale, or manufacture (including import) hardw ood plywood, particleboard, MDF, or finished 2199 goods containing these materials in the United States. Although firms have the option of 2200 choosing to engage in the cove red activities, once a firm chooses to do so, the information 2201 collection activities contained in this rule become mandatory for that firm. 2202 The ICR document provides a detailed presentation of the estimated burden and costs for 2203 3 years of the program. Burden is defined at 5 CFR 1320.3(b). Since the ru le applies to products 2204 imported into the U.S., the certification, testing, recordkeeping, and reporti ng requirements also 2205 apply to entities outside the U.S. Therefore, the ICR document considers the burden and cost to 2206 both foreign and domestic entities. This is in c ontrast to the Economic Analysis for the proposed 2207 rule (Ref. 39), where the cost analysis is limite d to domestic entities. The ICR document also 2208 accounts for the burdens of baseline reporting and recordkeeping activities in two ways. One 2209 estimates the incremental burden and cost excludi ng all the activities performed to comply with 2210 the CARB ATCM in the baseline, which is consis tent with the cost estimates in the Economic 2211 Analysis. The other estimates the burden and costof future activities even if those activities 2212 would be performed in the absence of the TSCA Title VI rule ( i.e. , to comply with the CARB 2213*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 101 of 153 [RIN 2070–AJ92] ATCM), which yields higher co st estimates than those inthe Economic Analysis. 2214 The ICR document estimates that more th an 990,000 firms are subj ect to the rule’s 2215 reporting and recordkeeping requirements. Of these, nearly 925,000 ar e domestic firms and 2216 approximately 66,000 are foreign firms. Over th e three year period covered by the ICR, the 2217 incremental burden of the rule (excluding burden for ac tivities performed in the baseline) is 2218 estimated to average 5.9 million hours per year. The total annual burden (including burden for 2219 required activities performed in the baseline) is estimated to average 8.0 million hours per year. 2220 The total burden reflects nearly 1.7 million respons es per year over the three years of the ICR, 2221 where the number of responses includes both res ponses that are submitted to EPA or a third party 2222 as well as recordkeeping activit ies conducted by firms that only ma intain records. The total 2223 annual burden equates to an aver age of 5 hours per response. 2224 An agency may not conduct or sponsor, and a person is not required to respond to an 2225 information collection request unl ess it displays a currently vali d OMB control number, or is 2226 otherwise required to submit the specific inform ation by a statute. The OMB control numbers for 2227 EPA’s regulations codified in Title 40 of the C ode of Federal Regulations, after appearing in the 2228 preamble of the final rule, are further displayed either by publication in the Federal Registeror 2229 by other appropriate means, such as on the relate d collection instrument or form, if applicable. 2230 The display of OMB control numbers for certain EPA regulations is consolidated in a list at 40 2231
CFR 9.1. 2232 To comment on the Agency's need for this information, the accuracy of the provided 2233 burden estimates, and any suggested methods for minimizing respondent burden, EPA has 2234 established a public docket for this rule, whic h includes the ICR, under Docket ID number EPA2235 HQ-OPPT-2011-0380. Submit any comments related to the ICR to EPA and OMB. See 2236*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 102 of 153 [RIN 2070–AJ92] ADDRESSES section at the beginning of this notice for where to submit comments to EPA. 2237 Send comments to OMB at the Office of Info rmation and Regulatory Affairs, Office of 2238 Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office 2239 for EPA. Since OMB is required to make a d ecision concerning the ICR between 30 and 60 days 2240 after [Insert date of publication in the Federal Register ], a comment to OMB is best assured of 2241 having its full effect if OMB receives it by [I nsert date 30 days after publication in the Federal 2242 Register ]. The final rule will respond to any OMB or public comments on the information 2243 collection requirements contai ned in this proposal. 2244 C. Regulatory Flexibility Act (RFA) 2245 The RFA, 5 U.S.C. 601 et seq. , generally requires an agen cy to prepare a regulatory 2246 flexibility analysis of any rule subject to notice and comment rulemaking requirements under the 2247 Administrative Procedure Act or any other statute unless the agencycertifies that the rule will 2248 not have a significant economic impact on a substantial number of small entities. Small entities 2249 include small businesses, small organizati ons, and small governmental jurisdictions. 2250 For purposes of assessing the impacts of t oday's proposed rule on small entities, small 2251 entity is defined as: (1) a small business as defined by the Small Bu siness Administration’s 2252 (SBA) regulations at 13 CFR 121.201; (2) a small governmental jurisd iction that is a government 2253 of a city, county, town, school district or spec ial district with a popul ation of less than 50,000; 2254 and (3) a small organization that is any not-for-p rofit enterprise which is independently owned 2255 and operated and is not do minant in its field. 2256 Pursuant to section 603 of the RFA, EPA pr epared an initial re gulatory flexibility 2257 analysis (IRFA) that examines the impact of the proposed rule on small entities along with 2258 regulatory alternatives that could reduce that imp act (Ref. 44). The IRFA is available for review 2259*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 103 of 153 [RIN 2070–AJ92] in the docket and is summarized below. 2260 1. Need for the rule . TSCA section 601(d) directs EP A to promulgate regulations to 2261 implement the formaldehyde standards for compos ite wood products described in TSCA section 2262 601(b)(2). EPA is issuing a proposed rule unde r TSCA Title VI to implement the statutory 2263 formaldehyde emission standards for hardw ood plywood, medium-density fiberboard, and 2264 particleboard sold, supplied, offered for sale, or manufactured (including imported) in the United 2265 States. As directed by the st atute, this proposal includes pr ovisions relatin g to, among other 2266 things, laminated products, products made with no-added formaldehyde resins, testing 2267 requirements, product labeling, chain of custody documentati on and other recordkeeping 2268 requirements, and product inventory sell-through provisions, including a product stockpiling 2269 prohibition. 2270 2. Objectives and legal basis for the rule . The legal basis for the rule is TSCA section 2271 601(d), which provides authority for the Administrator to “promulgate regulations to implement 2272 the standards required under s ubsection (b) in a manner that ensures compliance with the 2273 emission standards described in subsection (b)(2) .” Therefore, the central objective of the 2274 regulatory provisions of this proposal is to ensure compliance with the TSCA Title VI 2275 formaldehyde emission standards. 2276 3. Description and number of small entities to which the rule will apply . The small 2277 entities potentially affected by the rule are manufacturers (including importers), fabricators, 2278 distributors, and retailer s of composite wood products. For purposes of assessing the impacts of 2279 the rule on small entities, small entity is defined as: (1) a small business as defined by the Small 2280 Business Administration’s (SBA) regulations at 13 CFR 121.201; (2) a small governmental 2281 jurisdiction that is a government of a city, county, town, school distri ct or special district with a 2282*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 104 of 153 [RIN 2070–AJ92] population of less than 50,000; and (3) a small organization that is any not-for-profit enterprise 2283 which is independently owned and operated and is not dominant in its field. EPA estimates that 2284 the rule will affect appr oximately 879,000 small entities. 2285
4
. Projected compliance requirements . This proposal implements the statutory 2286 formaldehyde emission standards for hardw ood plywood, medium-density fiberboard, and 2287 particleboard sold, supplied, offered for sale, or manufactured (including imported) in the United 2288 States. As directed by the st atute, this proposal includes pr ovisions relatin g to, among other 2289 things, laminated products, products made with no-added formaldehyde resins, testing 2290 requirements, product labeling, chain of custody documentati on and other recordkeeping 2291 requirements, and product inventory sell-through provisions, including a product stockpiling 2292 prohibition. This proposal would establish requirements for manuf acturers (including 2293 importers), fabricators, distributors, and reta ilers of composite wood products. The regulatory 2294 provisions in this proposal are designed to ensure compliance with the TSCA Title VI 2295 formaldehyde emission standards while alig ning, where practical, with the regulatory 2296 requirements under the California Air Resource s Board’s (CARB) Airborne Toxic Control 2297 Measure (ATCM). By aligning its elf with the existing CARB requirements, EPA seeks to avoid 2298 differing or duplicative regulatory requirements that would result in an increased burden on the 2299 regulated community. 2300 5. Classes of small entities s ubject to the compliance requirements . Small entities 2301 include small businesses, small organizations, an d small governmental jurisdictions. The small 2302 entities that are potenti ally directly regulated by this ru le are small businesses that are 2303 manufacturers (including importers ), fabricators, dist ributors, or retailer s of composite wood 2304 products. No small governments or small organizati ons are expected to be directly regulated by 2305*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 105 of 153 [RIN 2070–AJ92] the rule. 2306 6. Professional skills needed to comply . Each panel producer must designate a person as 2307 quality control manager with adequate experi ence and/or training to be responsible for 2308 formaldehyde emission quality control. EPA has not proposed criteria for determining whether 2309 an individual’s experience or tr aining are appropriate for this position, but experience in the 2310 wood products industry or a degree in chemistry or a related field might provide the skills need 2311 to comply with the requirements. 2312 A panel producer must be able to follo w sampling and handling procedures for the 2313 material that is to be tested. However, those procedures must be described in the panel 2314 producer’s quality control manual, and specified sk ills should not be needed to follow the written 2315 procedures. 2316 Each panel producer must also designate a qua lity control facility for conducting quality 2317 control formaldehyde testing, and the quality control facility must have quality control 2318 employees with adequate experience and/or tr aining to conduct accurate chemical quantitative 2319 analytical tests. But instead of performing th ese functions themselves, panel producers have the 2320 option of hiring an accredited third party certifier (TPC) or a contract laboratory to fulfill these 2321 requirements. 2322 To obtain product certification, a panel producer must apply to an accredited TPC, and 2323 must provide information and notifications to the TPC. Finally, manufacturers, fabricators, 2324 distributors, or retailer s of composite wood products must ma intain records. None of these 2325 activities requires any special skills. 2326
7. Relevant Federal rules . The U.S. Department of Housing and Urban Development 2327 (HUD) has regulations governing formaldehyde em ission levels from plywood and particleboard 2328*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 106 of 153 [RIN 2070–AJ92] materials installed in manufactured homes. (See 24 CFR 3280.308.) However, TSCA Title VI 2329 establishes specific formaldehyde emission stan dards for hardwood plywood, particleboard, and 2330 medium-density fiberboard and does not provide EPA with the authority to modify these 2331 standards. Furthermore, the Formaldehyde St andards for Composite Wood Products Act, which 2332 includes TSCA Title VI, directs HUD to revise their regulations to ensure that they reflect the 2333 emission standards in TSCA Title VI. And th e HUD regulations do not deal with the other 2334 elements addressed in these implementing regulat ions (where EPA does ha ve the authority to 2335 make determinations) such as laminated produ cts, products made with no-added formaldehyde 2336 resins, testing requirements, chain of cust ody documentation, and product inventory sell-through 2337 provisions. Therefore, the regulat ory provisions of this proposal for which EPA has flexibility in 2338 implementing the statute do not dupl icate, overlap, or conflict with any other Federal rules. 2339 8. Potential economic impacts on small entities . Of the 879,000 small firms affected by 2340 the proposal, over 851,000 (about 97%) ar e expected to have costs imp acts that are less than 1% 2341 of their revenues, over 23,000 firm s (about 3 percent) are expect ed to experience impacts at 2342 levels between 1 and 3% percent of their re venue, and over 4,000 firms (less than 1%) are 2343 expected to incur costs exceed ing 3% of their revenues. 2344 Many of the firms with cost impacts above 1% of their revenues are fabricators, 2345 wholesalers, and retailers with annualized costs less than $250 ( i.e. , they are firms with annual 2346 revenues below $25,000). These firms account for 92% of the firms with cost impacts that are 2347 between 1% and 3% and 42% of the firm s with cost impacts that exceed 3%. 2348 9. Small Business Advocacy Review Panel . As required here by section 609(b) of the 2349 RFA, as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA), EPA 2350 also conducted outreach to small entities and convened a Small Business Advocacy Review 2351*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 107 of 153 [RIN 2070–AJ92] Panel on February 3, 2011 to obtai n advice and recommendations of representatives of the small 2352 entities that potentially would be subject to the proposed rule's requirements. The Panel solicited 2353 input on all aspects of these proposed regulations and on the framework for the third-party 2354 certification program under TSCATitle VI. Seventeen potentially-impacted small entities 2355 served as small-entity represen tatives (SERs) to the Panel, re presenting a broad range of small 2356 entities from diverse geographic locations, and five trade associations. The Panel concluded its 2357 deliberations on April 4, 2011. 2358 Consistent with the RFA/SBREFA requireme nts, the Panel evaluated the assembled 2359 materials and small-entity comments on issues rela ted to elements of the IRFA. A copy of the 2360 Panel report is included in the docket for this propos ed rule (Ref. 15). It is important to note that 2361 the Panel’s findings and discussion were based on the information av ailable at the time the final 2362 report was prepared. EPA has continued to conduc t analyses relevant to the proposed rule, and 2363 additional information may be developed from public comment on the proposed rule. 2364 The Panel’s recommendations on the TPC framework were discussed in the TPC 2365 Proposal (Ref. 1). The Panel’s most significan t findings and recommendations on other aspects 2366 of the TSCA Title VI implementing regulations are summarized below. 2367

a. In general . The Panel recommended that EPA adoptregulatory requirements that are 2368 consistent with the CARB ATCM wherever possi ble. EPA agrees withthis recommendation and 2369 has tried throughout this proposal to remain consistent with CARB wh ere it is practical to do so. 2370 b. Manufactured-by dates and stockpiling . The Panel generally agreed with those SERs 2371 that recommended that EPA propose to establish the manufactured-by date at 180 days after 2372 promulgation of the final rule and make the re ference period for determining whether stockpiling 2373*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 108 of 153 [RIN 2070–AJ92] has occurred the 12 month period prior to prom ulgation of the final rule. The Panel also 2374 recommended that EPA request comments and dataon alternative dates and reference periods. 2375 EPA is proposing to establish the manufactured -by date at 1 year after promulgation of 2376 the final rule. This is primarily to allow fo r development of the third-party certification 2377 infrastructure and to give panel producers who are not already complying with the CARB ATCM 2378 adequate time before the manufactured-by date to select an accredited third-party certifier, 2379 develop a quality control manual, and complete the initial testing to qualify for product 2380 certification. 2381 EPA is proposing to establish the stockpili ng reference period, or base period, as the 2382 calendar year 2009 because, under TSCA Title VI, the base period must end before the statute 2383 was enacted. EPA requests comments and data on both the proposed manufactured-by date and 2384 the proposed base period for determining whether stockpiling has occurred. 2385

c. Quality control and compliance testing . The Panel recommended that EPA consider 2386 CARB’s method of establishing equivalency and car efully evaluate any al ternative test method 2387 permitted. After considering the options, EP A is proposing to use CARB’s method of 2388 establishing equivalency between test methods and EPA is also proposing to recognize those 2389 alternative test methods that CARB has approved. 2390 The Panel further recommended that EP A provide clear direction on product 2391 decertification and recertification procedures and the recall of noncompliant products. In 2392 response to these recommendations, EPA has propos ed specific provisions on what actions are 2393 required and allowed in the event of a failed test result. EPA has also proposed to require panel 2394 producers to hold lots selected for testi ng until the test results are received. 2395*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 109 of 153 [RIN 2070–AJ92] d. Labeling and recordkeeping. The Panel generally r ecommended that labeling and 2396 record keeping provisions should be closely harmonized with CA RB’s requirements, including 2397 allowing panels to be labeled by bundle, rather than individuall y. The Panel did recognize that 2398 subtle differences between the TSCA Title VI implementing regulations and the CARB ATCM 2399 may make identical labels impossible. EPA is proposing labeling requireme nts that are virtually 2400 identical to CARB’s, except that the labels mu st say that the products are TSCA Title VI 2401 compliant instead of CARB compliant. For enti ties that are manufacturers under TSCA (i.e., 2402 they manufacture, produce, or import composite wood panels, component parts, or finished 2403 goods), EPA’s proposed recordkeeping and chai n-of custody documentation requirements are 2404 also virtually identical to CARB ’s. For distributors and retail ers that are not manufacturers 2405 under TSCA, EPA is proposing that the only records they be required to k eep are invoices and 2406 bills of lading. 2407

e. Laminated products and engineered veneer. The Panel recommended that EPA 2408 continue to seek available information, and exempt those laminated products that can be 2409 exempted consistent with the direction given in TSCA Title VI. The Panel further recommended 2410 that EPA work with small businesses, especiallythose laminating on a ma de-to-order basis, to 2411 design a testing scheme that is practical for thos e businesses, and at the same time, is calculated 2412 to ensure compliance with the emissions standards. The Panel also recommended that EPA 2413 consider basing the number and frequency of required quality control tests on production 2414 volume, thereby requiring fewer tests for smaller producers. EPA has incorporated all of these 2415 recommendations into this propos al, by proposing to exempt laminated products that are made 2416 with certified platforms and NAF resins, and by proposing to allow for quality control testing 2417 frequency based on production volume for hardwood plywood producers. 2418*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 110 of 153 [RIN 2070–AJ92] f. Definitions . The Panel recommended that EPA develop a definition of “hardboard” 2419 that takes the revised ANSI standard into ac count while ensuring that similar products are 2420 similarly regulated under TSCA Title VI. While a revised ANSI standard for “hardboard” has 2421 yet to be finalized, EPA believes that its propo sed definition takes into account both widespread 2422 industry usage of the term and the intent of the statute. 2423 Recognizing that TSCA Title VI was not intended to apply to structural plywood, the 2424 Panel also recommended that EPA develop a clear definition for “interior use” in order to 2425 eliminate confusion in the regulated community. According to the Panel, the definition should 2426 be based on the intent of the st atute and consider how the hardw ood plywood is likely to be used 2427 and stored once incorporated into a finished good. EPA has proposed a definition of “intended 2428 for interior use” that includes these considerations and requests comments on the appropriateness 2429 of this definition. 2430 While the SERs differed in their advice on th e definition of the term “panel,” the SBAR 2431 Panel recommended that EPA reduce uncertainty inthe regulated community by including in its 2432 regulation a clear definition of “p anel” that is based on the intent of the statute, and considers 2433 trade usage and the limitations of current test methods. Again, EPA is proposing a definition that 2434 takes these factors into account, and EPA reque sts comment on all aspects of the proposed 2435 definition. 2436
10. Alternatives considered . EPA’s Economic Analysis fo r the proposed rule (Ref. 39) 2437 examined a number of alterna tive analytical options . Among the alternatives based on the 2438 formaldehyde emissions standards set in Title VI of TSCA, EPA analyzed different options for 2439 how laminated products might be included in the definition of hardwood plywood, and for the 2440 rule’s chain of custody and recordkeeping requirem ents. These alternatives would have applied 2441*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 111 of 153 [RIN 2070–AJ92] to both small and large entities, but given the numb er of small entities in the affected industries, 2442 these alternatives would largely affect small entities. 2443 EPA is proposing the option with the lowest total cost among these options. This will 2444 minimize any significant economic impact on small entities. The Economic Analysis included 2445 two options for the definition of hardwood plywood that had higher total costs than the proposed 2446 rule (because they did not include the proposed rule’s reduced recordkeeping requirements for 2447 firms that are not manufacturers under TSCA) but that were less burdensome to certain 2448 laminated product producers. Specifically, one of the alternative options would have excluded 2449 all laminated products from the definition of hardwood plywood, and the second would have 2450 excluded all laminated products other than arch itectural panels and cu stom plywood from the 2451 definition of hardwood plywood. Both alternative op tions would apply regard less of the types of 2452 resins used in making the laminated products exempted from the definition of hardwood 2453 plywood. 2454 Because eligibility for the exemptions for laminated products in the alternative options 2455 was not based on the type of resins used to attach a wood veneer to a platform, currently 2456 available information indicates that these opti ons would have allowed laminated products that 2457 exceed the formaldehyde emission standards to be exempted from the definition of hardwood 2458 plywood. Therefore, EPA has concluded that suchalternative options ar e not consistent with 2459 TSCA Title VI’s statutory mandate that EPA pr omulgate regulations in a manner that ensures 2460 compliance with the emission standards in TSCA section 601(b)(2). 2461 EPA invites comments on all aspects of the proposal and its impacts on small entities. 2462 D. Unfunded Mandates Reform Act (UMRA) 2463 Title II of UMRA, 2 U.S.C. 1531-1538, establis hes requirements for Federal agencies to 2464*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 112 of 153 [RIN 2070–AJ92] assess the effects of their regulatory actions on State, local, and trib al governments and the 2465 private sector. This rule contains a Federal mandate that may result in expenditures exceeding 2466 the inflation-adjusted UMRA threshold of $100 million or more for State, local, and tribal 2467 governments, in the aggregate, or the private sector in any one year . Accordingly, EPA has 2468 prepared under section 202 of the UMRA a written statement which is summarized below (Ref. 2469 45). 2470
1. Authorizing legislation. This proposed rule is issued under the authority of Section 601 2471 of TSCA, 15 U.S.C. 2697. 2472
2. Cost-benefit analysis. EPA has prepared an analysis of the costs and benefits 2473 associated with this rulemaking, a copy of which is available in the docket for this rulemaking 2474 (Ref. 39). The Economic Analysis presents the cost s of the rule as well as various regulatory 2475 options and is summarized in Unit V.A. of this preamble. EPA has estimated that this proposal 2476 will result in a total cost of $435 million to $447 million in the first year. The cost is estimated 2477 to drop to $57 million to $66 million in the seco nd year. The total annualized cost of this 2478 proposal is $72 million to $81 million per year whenusing a 3% discount ra te and $81 million to 2479 $89 million per year using a 7% discount rate. When adjusted for inflation, the $100 million 2480 UMRA threshold is equivalent to approximately$143 million in 2010 dollars. Thus, the cost of 2481 the rule to the private sector and State, local , and Tribal governments in the aggregate exceeds 2482 the inflation-adjusted UMRA threshold in the first year. 2483 This proposed rule will redu ce exposures to formaldehyde, re sulting in benefits from 2484 avoided adverse health effects. For the subset of health effects where the results were quantified, 2485 the estimated annualized benefits (due to avoided incidence of asthma, eye irritation, 2486 nasopharyngeal cancer, and reduced female fertility) are $184 million to $278 million per year 2487*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 113 of 153 [RIN 2070–AJ92] using a 3% discount rate, and $91 million to $137 million per year using a 7% discount rate. 2488 There are additional unquantified benefits due to other avoided health effects (upper respiratory 2489 tract pathology, pulmonary functi on, allergic sensitizati on, immune function effects, neurological 2490 and behavioral toxicity, a nd developmental toxicity). 2491 Net benefits are the difference between benef its and costs. The pr oposal is estimated to 2492 result in net benefits of $103 million to $206 million per year us ing a 3% discount rate, and $2 2493 million to $57 million per year using a 7% discount rate. 2494
3. State, local, and Tribal government input. Consistent with the intergovernmental 2495 consultation provisions of sec tion 204 of the UMRA EPA has initiated consultations with 2496 governmental entities affected by this rule. EPA has met with officials from the state of 2497 California on numerous occasions to di scuss aspects of the CARB ATCM and its 2498 implementation. With the assistance of the National C onference of State Le gislatures, EPA has 2499 also initiated consultations with state e nvironmental health directors. 2500
4. Least burdensome option. Consistent with section 205, EPA has identified and 2501 considered a reasonable number of regulatory alte rnatives. TSCA Title VI establishes specific 2502 formaldehyde emission standards for hardwood plywood, particleboard, and medium-density 2503 fiberboard and does not provide EPA with the aut hority to modify these st andards. The statute 2504 further directs EPA to promulgate implementing regulations that address elements such as 2505 laminated products, products made with no-adde d formaldehyde resins, testing requirements, 2506 product labeling, chain of custody documentation and other recordkeeping requirements, and 2507 product inventory sell-through provi sions. Section 601(d) of TSCA requires EPA to promulgate 2508 implementing regulations in a manner that ensures compliance with the TSCA Title VI emission 2509 standards. Within those constraints, EPA has c onsidered a number of re gulatory alternatives for 2510*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 114 of 153 [RIN 2070–AJ92] regulating laminated products, as de scribed in Unit III and elsewhere in this Unit, as well as in 2511 the Economic Analysis (Ref. 39). EPA has dete rmined that the proposed rule is the least 2512 burdensome option that is consistent with TSCA Title VI’s statutory mandate that EPA 2513 promulgate regulations in a manner that ensures compliance with the emission standards in 2514 TSCA section 601(b)(2). 2515 This rule does not contain a significant Fe deral intergovernmental mandate as described 2516 by § 203 of UMRA, because it neither imposes en forceable duties on State, local, or tribal 2517 governments nor reduces an authorized amount of Fe deral financial assistance provided to State, 2518 local, or tribal governments. And this proposed rule contains no regul atory requirements that 2519 might significantly or uniquely affect small governments. The proposed rule would regulate 2520 entities that manufacture (inc luding import), fabricate, distribute, or sell composite wood 2521 products. Governments do not typically engage inthese activities, so gov ernment entities are not 2522 expected to be subject to the rule’s requirements. 2523
E. Executive Order 13132: Federalism 2524 This action does not have federalism impli cations because it will not have substantial 2525 direct effects on the States, on the relationship between the national government and the States, 2526 or on the distribution of power and responsibilities among the vari ous levels of government, as 2527 specified in Executive Order 13132 (64 FR 4325 5, August 10, 1999). The proposed rule would 2528 not regulate governments directl y, it would regulate entit ies that manufacture (including import), 2529 fabricate, distribute, or sell composite wood pr oducts. Governments do not typically engage in 2530 these activities. Thus, Executive Order 13132 does not apply to this action. 2531 In the spirit of Executive Or der 13132, and consistent with EPA policy to promote 2532 communications between EPA and State and local governments, EPA has met with officials 2533*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 115 of 153 [RIN 2070–AJ92] from the state of California on numerous occasio ns to discuss aspects of the CARB ATCM and 2534 its implementation. With the assistance of the National Conference of St ate Legislatures, EPA 2535 has also initiated consultations with state environmental healthdirectors. EPA specifically 2536 solicits comment on this proposed acti on from State and local officials. 2537
F. Executive Order 13175: Consultation and Coor dination with Indian Tribal Governments 2538 This action does not have tribal implicati ons, as specified in Executive Order 13175 (65 2539 FR 67249, November 9, 2000). The proposed rule would not regulate tribal governments 2540 directly, it would regulate entitie s that manufacture (including import), fabricate, distribute, or 2541 sell composite wood products. Tribal governments do not typically engage in these activities. 2542 Thus, Executive Order 13175 does not apply to this action. 2543 EPA specifically solicits additi onal comment on this proposed ac tion from tribal officials. 2544 G. Executive Order 13045: Protection of Children from Environmental Health Risks and Safety 2545
Risks 2546 This action is subject to Executive Or der 13045 (62 FR 19885, April 23, 1997) because it 2547 is an economically significan t regulatory action as defined by Executive Order 12866, and EPA 2548 believes that the environmental health or safety risk addressed by this action has a 2549 disproportionate effect on child ren. Accordingly, EPA has eval uated the environmental health 2550 effects of formaldehyde emissions from composite wood products on childre n. The results of this 2551 evaluation are described in the Economic Analysis (Ref. 39). The analys is shows that children 2552 aged two through fifteen represent 19 percent of the individuals affected by the rule and are 2553 estimated to accrue about 75 percent of the propos ed rule’s total benefits. These results are 2554 driven by the benefits associated with avoiding asthma incidence. Given these results, EPA has 2555 determined that this proposed rule will not ha ve disproportionally high and adverse human health 2556*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 116 of 153 [RIN 2070–AJ92] or environmental effects on children. These pr oposed standards would reduce emissions of 2557 formaldehyde from composite wood products for i ndividuals of all ages that are exposed and 2558 children are likely to accrue higher benefits fr om the exposure reductions compared to adults. 2559 The public is invited to submit comments or identify peer-reviewed studies and data that 2560 assess effects of early life exposure to formaldehyde. 2561 H. Executive Order 13211: Actions Concerning Regul ations That Significantly Affect Energy 2562 Supply, Distribution, or Use 2563 This proposed rule is not a ”significant energy action” as defined in Executive Order 2564 13211 (66 FR 28355, May 22, 2001), because it is not lik ely to have any adverse effect on the 2565 supply, distribution, or use of energy. 2566 I. National Technology Transfe r and Advancement Act (NTTAA) 2567 Section 12(d) of NTTAA, 15 U.S.C. 272 note, directs EPA to use voluntary consensus 2568 standards in its regulatory activities unless to do so would be inconsistent with applicable law or 2569 otherwise impractical. Voluntary consensu s standards are technical standards ( e.g. , materials 2570 specifications, test methods, sampling procedures , and business practices) that are developed or 2571 adopted by voluntary consensus st andards bodies. NTTAA direct s EPA to provide Congress, 2572 through OMB, explanations when the Agency de cides not to use avai lable and applicable 2573 voluntary consensus standards. 2574 This proposed rulemaking involves numerous te chnical standards, many of which EPA is 2575 directed to use by TSCA Title VI. Technical standards identified in the statute include the two 2576 quarterly test methods, ASTM E-1333-96 and ASTM D-6007-02, a quality control test method, 2577 ASTM D-5582-00, and various standa rds that define specific composite wood products, such as 2578 ASTM D-5456-06 (Structural Composite Lumber Products), ASTM D-5055-05 (Prefabricated 2579*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 117 of 153 [RIN 2070–AJ92] Wood I-Joists), ANSI A190.1 (Structural Glue d Laminated Timber), ANSI/HPVA HP–1–2009 2580 (Hardwood and Decorative Plywood), ANSI A208.2–2 2009 (Medium Density Fiberboard), 2581 ANSI A208.1–2009 (Particleboard), PS-1-07 (Structural Plywood), and PS-2-04 (Wood-Based 2582 Structural-Use Panels). 2583 In addition, EPA has identified other vol untary consensus standards that EPA is 2584 proposing to incorporate into this regulation. These include the revise d quarterly test method, 2585 ASTM E-1333-10, and standards that define hardboard, ANSI A135.4, ANSI A135.5, and ANSI 2586 A135.6. EPA is also proposing to allow three al ternative quality control test methods that are 2587 incorporated in voluntary consensus standards, EN 717-2 (gas analysis), EN 120 (perforator), 2588 and JIS A 1460 (24-hour desiccator). 2589 EPA is proposing the use of voluntary consen sus standards issued by the International 2590 Organization for Standardization, ASTM Intern ational, the AmericanNational Standards 2591 Institute, the National Institute of Standards and Technology, the European Committee for 2592 Standardization, Georgia Pacifi c Chemicals LLC, and the Japanese Standards Association. 2593 Copies of the standards referenced in th e proposed regulatory te xt at 40 CFR 770.1, 770.3, 2594 770.10, 770.15, 770.17, 770.20, and 770.60 have been placed in the docket for this proposed 2595 rule. You may also obtain copies of these standards from: 2596 (1) International Organizati on for Standardization, Case postale 56, CH·1211, Geneve 20, 2597 Switzerland, telephone +41–22–749–01–11, http://www.iso.org

. 2598 (2) ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, 2599 PA, 19428-2959 USA, telephone (877) 909-ASTM, http://www.astm.org

. 2600 (3) ANSI, American National Standards Institute, 1899 L Street, NW, 11 thFloor, 2601 Washington, DC 200036, telephone (202) 293-9287, http://ansi.org/

. 2602*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 118 of 153 [RIN 2070–AJ92] (4) National Institute of Standards and Technology, Technology Administration, U.S. 2603 Department of Commerce, 100 Bureau Drive, MS 2150, Gaithersburg, MD 20899-2150; 2604 http://ts.nist.gov/docvps

. 2605 (5) CEN, European Committee for Standardization, CEN-CENELEC Management 2606 Centre, 4 thFloor, Avenue Marnix 17, B-1000 Brussels, telephone +32-3-550-08-11, 2607 http://www.cen.eu/cen/pages/default.aspx

. 2608 (6) Georgia-Pacific Chemicals LLC, 133 P eachtree Street, Atlanta, GA 30303, telephone 2609 (877) 377-2737, http://www.gp-dmc.com/default.aspx

. 2610 (7) Japanese Standards Association, Japanese Industrial Standards, 1-24, Akasaka 4, 2611 Minatoku, Tokyo 107-8440, Japan, telephone +81-3-3583-8000, http://www.jsa.or.jp/

. 2612 In the final rule, EPA intends to seek approval fro m the Director of the Federal Register for the 2613 incorporation by reference of the standards refe renced in the final rule in accordance with 5 2614 U.S.C. 552(a) and 1 CFR part 51. 2615 EPA welcomes comments on this aspect of the proposed rulemaking and specifically 2616 invites the public to identify a dditional potentially-a pplicable voluntary consensus standards and 2617 to explain why such standards shoul d be used in this regulation. 2618
J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority 2619 Populations and Low-Income Populations 2620 Executive Order 12898 (59 FR 7629, February 16, 1994) establishes federal executive 2621 policy on environmental justice. Its main provi sion directs federal agencies, to the greatest 2622 extent practicable and permitted by law, to make environmental justice part of their mission by 2623 identifying and addressing, as appropriate, disp roportionately high and adverse human health or 2624 environmental effects of their programs, policie s, and activities on minority populations and low- 2625*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 119 of 153 [RIN 2070–AJ92] income populations in the United States. 2626 EPA has determined that this proposed ru le will not have disproportionally high and 2627 adverse human health or environmental effect s on any population, including any minority or 2628 low-income population. These proposed standard s would reduce emissions of formaldehyde 2629 from composite wood products for all populations that are exposed, with sli ghtly larger benefits 2630 for individuals from minority or low-income affected populations. 2631 This proposed rule establishes standards that reduce emissions of formaldehyde from 2632 composite wood products. Formaldehyde exposure may cause a range of health effects including 2633 nasopharyngeal cancer, sensory irritation, asthma, and female reproductive toxicity. 2634 The Economic Analysis (Ref. 39), described in Unit V.A, monetizes the benefits from 2635 reducing each of these four identified health impacts, and esti mates total benefits as the sum of 2636 these four categories. Benef its valuation is done for formaldehyde exposure in five climate 2637 zones from nine different housing types (five ty pes of new housing and four types of renovated 2638 housing), allowing for off-gassing of up to ten years, as well as occupationa l, school, and outside 2639 formaldehyde exposure. The population in thes e climate zones and housing types is broken 2640 down into broad age and employmentcategories to assess exposure. 2641 The Economic Analysis (Ref. 39) includes an environmental justice analysis that expands 2642 on the primary benefits analysis by analyzing the monetized impacts specifically for minority 2643 and low-income populations. Resu lts indicate that disaggregati on of total benefits by population 2644 groups leads to variation in th e range of individual benefits, by minority population. Benefits 2645 estimates are reported in 2010 dollars, annualized at a 3% rate. The population of all individuals 2646 affected by the rule shows the same estimates repo rted in the total benefits analysis; annualized 2647 benefits ranging from $184 million to $278 million fo r the options with emissions standards that 2648*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 120 of 153 [RIN 2070–AJ92] are consistent with the statut e, and $1.74 to $2.62 per individual. The affected Non-Hispanic 2649 White population account for 65% of the total affected populat ion, accrue 54% of the total 2650 annualized benefits, and experience average annualized benefits ranging from $1.43 to $2.16 per 2651 individual. In comparison, bene fits for minority populations are higher. Minority populations 2652 represent about 35% of the individuals affected by the rule and are es timated to accrue about 2653 45% of the proposed rule’s total benefits. Th e affected Non-Hispanic Black population account 2654 for 12% of the total affected population, accrue 15% to 16% of the total annua lized benefits, and 2655 experience average annualized benefits ranging from $2.32 to $3.35 per individual. The affected 2656 Hispanic population account for 15% of the total affected population, accr ue 22% of the total 2657 annualized benefits, and experience average annualized benefits ranging from $2.47 to $3.78 per 2658 individual. The affected Non-Hispanic Nativ e American or Alaskan Indian population account 2659 for 0.6% of the total affected population, accrue 0.7% of the to tal annualized benefits, and 2660 experience average annualized benefits ranging from $1.92 to $2.80 per individual. The affected 2661 low-income population account for 12% of the to tal affected population, accr ue 18% of the total 2662 annualized benefits, and experience average annualized benefits ranging from $2.49 to $3.82 per 2663 individual. 2664 To further improve the analysis for the final rule, the public is invited to submit 2665 comments or identify peer-reviewe d studies and data that assess the exposures of minority or 2666 low-income populations to formaldehyde emi ssions from composite wood products, and the 2667 health effects of those exposures. 2668 List of Subjects in 40 CFR Part 770 2669 Environmental protection, Formaldehyde, Re porting and recordkeeping requirements, 2670 Toxic substances, Wood. 2671*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 121 of 153 [RIN 2070–AJ92] 2672 Dated: ____________________ 2673
2674

__________________________________________ 2675 Administrator 2676
2677*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 122 of 153 [RIN 2070–AJ92] Therefore, 40 CFR part 770 as proposed on [i nsert date of TPC proposal] (76 FR ?????), 2678 is amended to read as follows 2679 1. The authority citation for part 7 70 continues to read as follows: 2680 Authority : 15 U.S.C. 2697(d). 2681 2. Section 770.1 is amended by adding paragr aphs (b) through (e) to read as follows. 2682 § 770.1 Scope and applicability. 2683
* * * * * 2684 (b) This subpart applies to any hardwood plywood, particleboard, or medium-density 2685 fiberboard, or finished goods c ontaining these materials, that ar e sold, supplied, offered for sale, 2686 or manufactured (including importe d) in the United States. 2687 (c) This subpart does not apply to the following: 2688 (1) Any finished good that has previously been sold or supplied to an individual or entity 2689 that purchased or acquired the finished good in good faith for purposes other than resale, e.g. , an 2690 antique or secondhand furniture. 2691 (2) Hardboard, unless the hardboard is used as a core for hardwood plywood. 2692 (3) Structural plywood, as specified in PS- 1-07, Voluntary Product Standard—Structural 2693 Plywood. 2694 (4) Structural panels, as specified in PS -2-04, Voluntary Product Standard—Performance 2695 Standard for Wood-Based Structural-Use Panels. 2696 (5) Structural composite lumber, as specifi ed in ASTM D5456-06, Standard Specification 2697 for Evaluation of Structural Composite Lumber Products. 2698 (6) Oriented strand board. 2699*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 123 of 153 [RIN 2070–AJ92] (7) Glued laminated lumber, as specif ied in ANSI A190.1-2002, Structural Glued 2700 Laminated Timber. 2701 (8) Prefabricated wood I-joists, as specifie d in ASTM D5055-05, Standard Specification 2702 for Establishing and Monitoring Structural Capacities of Pref abricated Wood I-Joists. 2703 (9) Finger-jointed lumber. 2704 (10) Wood packaging, including pallet s, crates, spools, and dunnage. 2705 (11) Composite wood products used inside the following: 2706 (i) New vehicles (other than recreational vehi cles) that are constructed entirely from new 2707 parts and that have never been the subject of a re tail sale or registered with the applicable State 2708 or other governmental agency. 2709 (ii) New rail cars. 2710 (iii) New boats. 2711 (iv) New aerospace craft. 2712 (v) New aircraft. 2713 (d) The emission standards in § 770.10 do not apply to windows that contain composite 2714 wood products, if the windows contain less than 5% by volume of hardwood plywood, 2715 particleboard, or medium-density fiberboard, co mbined, in relation to the total volume of the 2716 finished window. 2717 (e) The emission standards in § 770.10 do not apply to exterior doors and garage doors 2718 that contain composite wood products, if: 2719 (1) The doors are made from composite w ood products manufactured with no-added 2720 formaldehyde-based resins or ultra low-emitting formaldehyde resins; or 2721*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 124 of 153 [RIN 2070–AJ92] (2) The doors contain less than 3% by vol ume of hardwood plywood, particleboard, or 2722 medium-density fiberboard, combined, in relation to the total volume of the finished exterior 2723 door or garage door. 2724 3. Section 770.2 is amended by adding paragr aphs (d) and (e) to read as follows: 2725 § 770.2 Effective dates. 2726
* * * * * 2727 (d) After [ date 1 year after publication of the final rule in the Federal Register ], all 2728 hardwood plywood, particleboar d, and medium-density fibe rboard, and finished goods 2729 containing these materials, sold, supplied, offered for sale, or manufactured (including imported) 2730 in the United States must comply with this subpart. Except: Hardwood plywood, particleboard, 2731 and medium-density fiberboard manufact ured (including imported) before [ date 1 year after 2732 publication of the final regulations in the Federal Register ] may be sold, supplied, offered for 2733 sale, or used to fabricate component parts or finished goods at any time. 2734 (e) After [ date 1 year after publication of the final rule in the Federal Register ], all 2735 manufacturers (including importe rs), fabricators, suppliers, di stributors, and retailers of 2736 hardwood plywood, particleboar d, and medium-density fibe rboard, and finished goods 2737 containing these materials, must comply with this subpart. 2738 4. Section 770.3 is amended by revising the definition for “Panel producer” and 2739 alphabetically adding the following definitions to read as follows: 2740 § 770.3 Definitions. 2741
* * * * * 2742
Article means a manufactured item which: 2743 (i) Is formed to a specific sh ape or design during manufacture. 2744*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 125 of 153 [RIN 2070–AJ92] (ii) Has end use functions dependent in whol e or in part upon its shape or design during 2745 the end use. 2746 (iii) Has either no change of chemical co mposition during its end use or only those 2747 changes of composition which have no commercial purpose separate from that of the article and 2748 that may occur as described in 19 CFR 12.120(a)(2); except that fluids and particles are not 2749 considered articles regard less of shape or design. 2750
Bundle means more than one composite wood product panel, component part, or finished 2751 good fastened together for transportation or sale. 2752 Component part means a part that contains one ormore composite wood products and is 2753 used in the assemblyof finished goods. 2754
* * * * * 2755
Distributor means an entity that supplies composite wood products, component parts, or 2756 finished goods to others. 2757
* * * * * 2758
Fabricator means an entity that incorporates composite wood products into component 2759 parts or into finished goods. 2760 Finished good means any good or product, other than a panel, that contains hardwood 2761 plywood, particleboard, or medium-density fiberboard and that is not a component part or other 2762 part used in the assembly of a finished good. 2763
Hardboard means a panel composed of cellulosic fibers made by dry or wet forming and 2764 hot pressing of a fiber mat, either without resins, or with a phenolic resin ( e.g. , a phenol2765 formaldehyde resin), or a resin sy stem in which there is no-added formaldehyde as part of the 2766 resin cross-linking structure, as determined under one of the following ANSI standards: ANSI 2767*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 126 of 153 [RIN 2070–AJ92] A135.4 (Basic Hardboard), ANSI A135.5 (Prefini shed Hardboard Paneling), or ANSI A135.6 2768 (Hardboard Siding). 2769 Hardwood plywood means a hardwood or decorative panel that is intended for interior 2770 use and composed of (as determined under ANS I/HPVA HP–1–2009) an asse mbly of layers or 2771 plies of veneer, joined by an a dhesive with a lumber core, a particleboard core, a medium-density 2772 fiberboard core, a hardboard core, a veneer core , or any other special core or special back 2773 material. Hardwood plywood does not include m ilitary-specified plywood, curved plywood, or 2774 any plywood specified in PS-1-07, Voluntary Product Standard – Structural Plywood, or PS-2- 2775 04, Voluntary Product Standard – Performance Standard for Wood-Based Stru ctural-Use Panels. 2776 In addition, hardwood plywood does not include lami nated products that are made by attaching a 2777 wood or woody grass veneer with a no-added formal dehyde-based resin to a core that has been 2778 manufactured in compliance with this subpart and that is either cer tified in accordance with 2779 § 770.60 or manufactured with no-added formaldehyde-based resins under § 770.17. 2780 Importer means an entity that imports compos ite wood products, component parts that 2781 contain composite wood products, or finished goods that contai n composite wood products into 2782 the customs territory of the United States (as de fined in general note 2 of the Harmonized Tariff 2783 Schedules of the United Stat es). Importer includes: 2784 (1) The entity primarily liab le for the payment of any duties on the products, or 2785 (2) An authorized agent acti ng on the entity’s behalf. 2786 Intended for interior use means intended for use or storage inside a building or 2787 recreational vehicle, or constructed in such a way that it is not suitable for long term use in a 2788 location exposed to the elements. 2789
2790*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 127 of 153 [RIN 2070–AJ92] * * * * * 2791 Laminated product means a product in which a wood or woody grass veneer is affixed to 2792 a particleboard platform, a medium-density fiber board platform, or a veneer core platform. A 2793 laminated product is a component part used in the construction or assembly of a finished good. 2794 Laminated product producer means a manufacturing plant or other facility that 2795 manufactures (excluding imports) lami nated products on the premises. 2796
Lot means the particular batch of a product type made during a si ngle production run. 2797 Medium-density fiberboard means a panel composed of cellulosic fibers made by dry 2798 forming and pressing a resinated fibe r mat (as determined under ANSI A208.2–2009). 2799 No-added formaldehyde-based resin means a resin formulated with no added 2800 formaldehyde as part of the re sin cross-linking structure in a composite wood product that meets 2801 the emission standards in § 770.17(c). 2802 Non-complying lot means any lot or batch of composite wood product represented by a 2803 quarterly or quality control test value that ex ceeds the applicable standard for the particular 2804 composite wood product. In the case of a quarterlytest value, only the particular lot or batch 2805 from which the sample was taken would be cons idered a non-complying lot. However, future 2806 production of the product type(s) represented by a failed quarterly testare not considered 2807 certified and must be treated as a non-comply ing lot until the product type(s) are re-qualified 2808 through a successful quarterly test. 2809
Panelmeans a flat or raised pi ece of composite wood product. 2810 Panel producer means a manufacturing plant or other facility that manufactures 2811 (excluding imports) composite wood products on the premises. This includes laminated products 2812 not excluded from the defi nition of hardwood plywood. 2813*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 128 of 153 [RIN 2070–AJ92] Particleboard means a panel composed of cellulosic material in the form of discrete 2814 particles (as distinguished from fibers, flakes, or strands) that are pressed together with resin (as 2815 determined under ANSI A208.1–2009). Particleboard does not include any product specified in 2816 PS-2-04, Performance Standard for Wood- Based Structural-Use Panels. 2817
* * * * * 2818 Product type means a type of composite wood product that differs from another, made by 2819 the same panel producer, based on wood type, composition, thickness, number of plies (if 2820 hardwood plywood), or resin used. Products with similar emissions made with the same resin 2821 system may be considered to be the same produc t type. Factors to consider in determining 2822 whether products belong to th e same product type include those factors likel y to affect 2823 emissions, such as wood type, resin type, core type, veneer type, and press time. 2824
Production line means a set of operations and phy sical industrial or mechanical 2825 equipment used to produce a composite wood product. 2826
Purchaser means an entity that acquires composite wood products in exchange for money 2827 or its equivalent. 2828 Quality control limit means the quality control method te st formaldehyde value that is the 2829 correlative equivalent to the applicable emission standard ba sed on the ASTM E1333-10 method. 2830
Recreational vehicle means a vehicle which is: 2831 (1) Built on a single chassis. 2832 (2) Four hundred square feet or less when measured at the largest horizontal projections. 2833 (3) Self-propelled or permanentlytowable by a light duty truck. 2834 (4) Designed primarily not for use as a pe rmanent dwelling but as temporary living 2835 quarters for recreational, campi ng, travel, or seasonal use. 2836*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 129 of 153 [RIN 2070–AJ92] Retailer means an entity that generally sell s smaller quantities of composite wood 2837 products directly to consumers. 2838 Scavenger means a chemical or chemicals that ca n be applied to resins or composite 2839 wood products to reduce the amount of formalde hyde that can be emitted from composite wood 2840 products. 2841 Stockpiling means manufacturing or purchasing composite wood products, whether in the 2842 form of panels or incorporated into finished goods, between July 7, 2010 and [ date 180 days 2843 after publication of the final rule in the Federal Register ] at an average rate at least 10% greater 2844 than the average rate of manu facture or purchase during the 2 009 calendar year for the purpose 2845 of circumventing the emission standards and other requirements of this subpart. 2846 Thin medium-density fiberboard means medium-density fiberboard that has a thickness 2847 less than or equal to 8 m illimeters or 0.315 inches. 2848
* * * * * 2849
Veneer means a thin sheet of wood or woody grass that is rotary cut, sliced, or sawed 2850 from a log, bolt, flitch, block, or culm. 2851 Woody grass means a plant of the family Poaceae (formerly Gramineae ) with hard 2852 lignified tissues or woody parts. 2853 5. Subpart C is added to read as follows: 2854 Subpart C--Composite Wood Products 2855 Sec. 2856 770.10 Formaldehyde emission standards. 2857 2858 770.12 Stockpiling. 2859 770.15 Composite wood product certification. 2860 770.17 No-added formaldehyde-based resins. 2861*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 130 of 153 [RIN 2070–AJ92] 770.20 Testing requirements. 2862 770.22 Non-complying lots. 2863 770.24 Samples for testing. 2864 770.30 Importers, fabricators, laminated produ ct producers, distribut ors, and retailers. 2865 770.40 Reporting and recordkeeping. 2866 770.45 Labeling. 2867 770.55 Prohibited acts. 2868 Subpart C--Composite Wood Products 2869 § 770.10 Formaldehyde emission standards. 2870 (a) Except as provided in §§ 770.1 and in 770.17, th e emission standards in this section 2871 apply to composite wood products sold, supplied, offered for sa le, or manufactured (including 2872 imported) in the United States. These emissi on standards apply regardless of whether the 2873 composite wood product is in the form of a pane l, a component part, or incorporated into a 2874 finished good. 2875 (b) The emission standards are based on test method ASTM E1333-10, and are as 2876 follows: 2877 (1) For hardwood plywood, 0.05 parts pe r million (ppm) of formaldehyde. 2878 (2) For medium-density fiber board, 0.11 ppm of formaldehyde. 2879 (3) For thin medium-density fibe rboard, 0.13 ppm of formaldehyde. 2880 (4) For particleboard, 0. 09 ppm of formaldehyde. 2881 § 770.12 Stockpiling. 2882 (a) The sale of stockpiled i nventory of composite wood produc ts, whether in the form of 2883 panels or incorporated into fini shed goods, is prohibited after [ date 1 year after publication of the 2884 final rule in the Federal Register ]. 2885*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 131 of 153 [RIN 2070–AJ92] (b) To determine whether stockpiling has occurred, the rate of manufacture or purchase is 2886 measured as follows: 2887 (1) For composite wood products in the form of panels, the rate is measured in terms of 2888 square footage of panels produced. 2889 (2) For composite wood products incorporated into component parts or finished goods, 2890 the rate is measured in terms of the square footage of compos ite wood product panels purchased 2891 for the purpose of incorporating them into component parts or finished goods. 2892 (c) Manufacturers or purchasers who can demons trate that they have a greater than 10% 2893 increase in manufacturing or purchasing composite wood products for some reason other than 2894 circumventing the emissions standards would not be in violation of this section. Such reasons 2895 may include, but are not limited to: 2896 (1) A quantifiable immediate increase in customer demand or sales. 2897 (2) A documented and planned business expansion. 2898 (3) The manufacturer or purchaser was not inbusiness at the beginning of calendar year 2899
2009. 2900 (4) An increase in production to meet in creased demand resulting from an emergency 2901 event or natural disaster. 2902 § 770.15 Composite wood product certification. 2903 (a) Only certified composite wood products , whether in the form of panels or 2904 incorporated into component parts or finished goods, are permitted to be sold, supplied, offered 2905 for sale, or manufactured (inc luding imported) in the United States, unless the product is 2906 specifically exempted by this subpart. 2907*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 132 of 153 [RIN 2070–AJ92] (b) Certified composite wood products are those that are produced or fabricated in 2908 accordance with all of the provi sions of this subpart. 2909 (c) To obtain product certification, a panel producer must apply to a TSCA Title VI 2910 Accredited TPC. The applicati on must contain the following: 2911 (1) The panel producer’s name, address, telephone number, and other contact 2912 information. 2913 (2) A copy of the panel producer’s quality control manual as required by § 770.20(e)(1). 2914 (3) Name and contact information for the panel producer’s quality control manager. 2915 (4) An identification of the specific products for which certification is requested, and the 2916 chemical formulation of the resi ns, including base resi ns, catalysts, and other additives used in 2917 panel production. 2918 (5) At least one test conducted in accordance with § 770.20(c). 2919 (6) Three months of routine quality c ontrol tests conducted in accordance with 2920 § 770.20(b). 2921 (d) The TSCA Title VI Accredited TPC must act on a panel producer’s complete 2922 application within 90 days of receipt. 2923 (1) If the application demonstrates that the candidate product achieves the applicable 2924 emission standards described in § 770.10, the TSCATitle VI Accredited TPC will approve the 2925 application. 2926 (2) If the applicati on does not demonstrate that th e candidate product achieves the 2927 applicable emission standards described in § 770.10, the TSCA Title VI Accredited TPC will 2928 disapprove the application. A ne w application may be submitted for the candidate product at any 2929 time. 2930*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 133 of 153 [RIN 2070–AJ92] (e) If a panel producer fails a quarterl y test, certification for any product types 2931 represented by the sample is suspended until a co mpliant quarterly test result is obtained. 2932 § 770.17 No-added formaldehyde-based resins. 2933 (a) Producers of composite wood product panels made with no-added formaldehyde2934 based resins may apply to a TSCA Title VI A ccredited TPC for a 2-year exemption from the 2935 testing and certification requirements in § 770.20. A copy of the application must be sent to 2936 EPA. The application must contain the following: 2937 (1) The panel producer’s name, address, telephone number, and other contact 2938 information. 2939 (2) An identification of the specific product and the chemical formulation of the resins, 2940 including base resins, cata lysts, and other additives as used in manufacturing. 2941 (3) At least one test conducted under the supe rvision of a TSCA Title VI Accredited TPC 2942 pursuant to test method ASTM E1333-10 or AS TM D6007-02. Test results obtained by ASTM 2943 D6007-02 must include a showi ng of equivalence in accordance with § 770.20(d)(1). 2944 (4) Three months of routine quality control tests under § 770.20, including a showing of 2945 equivalence in accordance with § 770.20(d)(2). 2946 (b) The TSCA Title VI Accredited TPC will approve a panel pr oducer’s application 2947 within 90 days of receipt if th e application is complete and de monstrates that the candidate 2948 product achieves the emission standards descri bed in paragraph (c) of this section. 2949 (c) As measured according to paragraphs (a)( 3) and (a)(4) of this section, the emission 2950 standards for composite wood products made withno-added formaldehyde-based resins are as 2951 follows: 2952*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 134 of 153 [RIN 2070–AJ92] (1) No test result higher than 0.05 parts pe r million (ppm) of formaldehyde for hardwood 2953 plywood and 0.06 ppm for particlebo ard, medium-density fiberboar d, and thin medium-density 2954 fiberboard. 2955 (2) No higher than 0.04 ppm of formaldehyde fo r 90% of the 3 months of routine quality 2956 control testing data required under paragraph (a)(4) of this section. 2957 (d) After the initial 2-year period, and every 2 years thereafter, in or der to continue to 2958 qualify for the exemption from the testing and certification requirements, the panel producer 2959 must reapply to a TSCA Title VI Accredited TP C and obtain at least one test result in accordance 2960 with paragraph (a)(3) of this section that complies with the emission standards in paragraph 2961 (c)(1) of this section. 2962 (e) Any change in the resin formulation, the core material, or any other part of the 2963 manufacturing process that may affect formal dehyde emission rates invalidates the exemption 2964 for any product produced after such a change. 2965 § 770.20 Testing requirements. 2966 (a) General requirements --(1) All panels must be tested in an unfinished condition, prior 2967 to the application of a finishing or topcoat. 2968 (2) Facilities that conduct the formaldehyde testing required by this section must follow 2969 the procedures and specifications , such as testing conditions a nd loading ratios, of the test 2970 method being used. 2971 (3) All equipment used in the formaldehyde testing required by this section must be 2972 calibrated and otherwise maintained and used inaccordance with the equipment manufacturer’s 2973 instructions. 2974*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 135 of 153 [RIN 2070–AJ92] (b) Quality control testing-- (1) Allowable methods. Quality control testing may be 2975 performed using any of the following methods, with a showing of equi valence for each method 2976 pursuant to paragraph (d ) of this section: 2977 (i) ASTM D6007-02. 2978 (ii) ASTM D5582. 2979 (iii) EN 717-2 (Gas Analysis Method). 2980 (iv) DMC (Dynamic Micro Chamber). 2981 (v) EN 120 (Perforator Method). 2982 (vi) JIS A 1460 (24-hr Dessicator Method). 2983 (2) Frequency of testing-- (i) Particleboard and medium-dens ity fiberboard must be tested 2984 at least once per shift (8 or 12 hours, plus or minus 1 hour of production) for each production line 2985 for each product type. Quality control tests must also be conducted whenever: 2986 (A) A product type production ends, even if 8 hours of production has not been reached. 2987 (B) The resin formulation is changed so that the formaldehyde to urea ratio is increased. 2988 (C) There is an increase by more than 10% in the amount of formaldehyde resin used, by 2989 square foot or by panel. 2990 (D) There is a decrease in the design ated press time by more than 20%. 2991 (E) The quality control manager or quality control employee has reason to believe that 2992 the panel being produced may not meet the requi rements of the appli cable standards. 2993 (ii) Particleboard and medium-density fiber board panel producers are eligible for reduced 2994 quality control testing if they de monstrate consistent operations and low variability of test values. 2995 To qualify, panel producers must: 2996 (A) Apply in writing to a TS CA Title VI Accredited TPC. 2997*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 136 of 153 [RIN 2070–AJ92] (B) Maintain a 30 panel running average. 2998 (C) If the 30 panel running average remains 2 standard de viations below the designated 2999 quality control limit for 60 days or more, the TSCA Title VI Accredit ed TPC may approve a 3000 reduction to 1 quality control testper 24-hour production period. 3001 (D) If the 30 panel running average remains 3 standard de viations below the designated 3002 quality control limit for 60 days or more, the TSCA Title VI Accredit ed TPC may approve a 3003 reduction to 1 quality control te st per 48-hour production period. 3004 (E) The TSCA Title VI Accredited TPC w ill approve a request for reduced quality 3005 control testing as long as the data submitted by the panel producer demonstrates compliance with 3006 the criteria and the TSCA Title VI Accredited TPC does not otherwise have reason to believe 3007 that the data are inaccurate or the panel producer’s production pro cesses are inadequate to ensure 3008 continued compliance with the emi ssion standards. 3009 (iii) Hardwood plywood must be tested as follows: 3010 (A) At least one test per week per product type and pr oduction line if the weekly 3011 hardwood plywood production at the panel produ cer is more than 100,000 but less than 200,000 3012 square feet. 3013 (B) At least two tests per week per produc t type and production line if the weekly 3014 hardwood plywood production at the panel producer is 200,000 square feet or more, but less than 3015 400,000 square feet. 3016 (C) At least four times pe r week per product type and production line if the weekly 3017 hardwood plywood production at the panel produ cer is 400,000 square feet or more. 3018 (D) If weekly production of hardwood plyw ood at the panel producer is 100,000 square 3019 feet or less, at least one test per 100,000 square feet for each product type produced; or, if less 3020*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 137 of 153 [RIN 2070–AJ92] than 100,000 square feet of a particular product type in a singl e production run is produced, one 3021 quality control test of that product type per production run or lot produced. 3022 (3) Lots selected for sampling . All lots from which samples are selected for quality 3023 control testing must be retained at the panel pr oducer’s facility until the quality control test 3024 results are received by th e panel producer. 3025 (i) Lots represented by passing quality control test results may be shipped as soon as the 3026 test results are receive d by the panel producer. 3027 (ii) Lots represented by failing quality c ontrol test results must be handled as non3028 complying lots in accordance with § 770.22 3029 (4) Results . Any sample that exceeds the quality control limit established pursuant to 3030 this section must be reported to the TSCA Title VI Accredited TPC in writing within 24 hours. 3031 Any lot or batch represented by a quality contro l sample that exceeds th e quality control limit 3032 must be handled in accordance with § 770.22. 3033 (c) Quarterly testing. Quarterly testing must be supervised by TSCA Title VI Accredited 3034 TPCs and performed by laboratories accredited under § 770.60. 3035 (1) Allowable methods . Quarterly testing must be performed using ASTM E1333-10 or, 3036 with a showing of equivalence pursuant to paragraph (d) of this section, ASTM D6007-02. 3037 (2) Sample selection-- (i) Samples must be randomly chosen by a TSCA Title VI 3038 Accredited TPC from a single lo t or group of lots that is re ady for shipment by the panel 3039 producer. 3040 (ii) Lots may be grouped for quarterly tes ting purposes. For hardwood plywood samples, 3041 the samples must be randomly selected from products that have the highest potential to emit 3042 formaldehyde. 3043*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 138 of 153 [RIN 2070–AJ92] (iii) Samples must not include the top or the bottom composite wood pr oduct of a bundle. 3044 (iv) All lots from which samples are selected for quarterly testing must be retained at the 3045 panel producer’s facility until the quarterly test results are received by the panel producer. This 3046 includes lots that are grouped for pur poses of quarterly testing. 3047 (A) Lots represented by passing quarterly test results may be shipped as soon as the test 3048 results are received by the panel producer. 3049 (B) Lots represented by failing quarterly te st results must be disposed of as non3050 complying lots in accordance with § 770.22 3051 (3) Sample handling. Samples must be dead-stacked or air-tight wrapped between the 3052 time of sample selection and the start of test conditioning. Samples must be labeled as such, 3053 signed by the TSCA Title VI Accredited TPC, bundled air-tight, wrapped in polyethylene, 3054 protected by cover sheets, and promptly shipped to the laboratory testing facility. Conditioning 3055 must begin as soon as possible, but no later th an 30 days after the samp les were produced. 3056 (4) Results . Any sample that exceeds the applicab le formaldehyde emission standard in 3057 § 770.10 must be reported by the TSCA Title VI Accredited TPC to the panel producer and to 3058 EPA in writing within 24 hours. Any lot or batc h represented by a sample result that exceeds the 3059 applicable formaldehyde emission standard must be disposed of in accordance with § 770.22. 3060 Where lots are grouped for testing, th is includes all lots in the group re presented by the sample. 3061 (d) Equivalence. Equivalence between ASTM E1333-10 and any other test method used 3062 for quality control or quarterly testing must be demonstrated by TSCA Title VI Accredited TPCs 3063 at least once each year or whenever there is a sign ificant change in equipment, procedure, or the 3064 qualifications of testing personnel. 3065*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 139 of 153 [RIN 2070–AJ92] (1) Equivalence between ASTM E1333-10 and ASTM D6007-02 . Equivalence must be 3066 demonstrated for at least five comparison samp le sets, which compare the results of the two 3067 methods. 3068 (i) Samples-- (A) For the ASTM E1333-10 method, each comparison sample must consist 3069 of the result of simultaneously testing panels, using the applicable loading ratios specified in the 3070 ASTM E1333-10 method, from the same batch of panels tested by the ASTM D6007-02 method. 3071 (B) For the ASTM D6007-02 method, each comp arison sample shall consist of testing 3072 specimens representing portions of panels test ed in the ASTM E1333-10 method and matched to 3073 their respective ASTM E1333-10 method comparison sample result. 3074 (C) The five comparison sample sets must c onsist of testing a minimum of five sample 3075 sets as measured by the ASTM E1333-10 method. 3076 (ii) Average and standard deviation . The arithmetic mean, x  ̄ , and standard deviation, S , 3077 of the difference of all comparison sets must be calculated as follows: 3078

3079 Where x  ̄ = arithmetic mean; 3080
S = standard deviation; 3081

n = number of sets; 3082
Di = difference between the ASTM E1333-10 and ASTM D6007-02 method values for the i th 3083 set; and 3084
i ranges from 1 to n . 3085 (iii) Equivalence determination. The ASTM D6007-02 method is considered equivalent 3086 to the ASTM E1333-10 method if th e following condition is met: 3087*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 140 of 153 [RIN 2070–AJ92] 3088 where C is equal to 0.026. 3089 (2) Equivalence between ASTM E1333-10 and any quality control test method other than 3090 ASTM D6007-02 . Equivalence must be demonstrated by establishing an acceptable correlation 3091 coefficient (“r” value). 3092 (i) Correlation. The correlation must be based on a minimum sample size of five data 3093 pairs and a simple linear regression where the depe ndent variable (Y-axis) is the quality control 3094 test value and the independent variable (X-axi s) is the ASTM E1333-10 test value. Either 3095 composite wood products or formaldehyde emission re ference materials can be used to establish 3096 the correlation. 3097 (ii) Minimum acceptable correlation coefficients (“r” values) . The minimum acceptable 3098 correlation coefficients for equivalency correlatio ns are as follows, where “n” is equal to the 3099 number of data pairs, and “r” is the correlation coefficient: 3100

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

Page 141 of 153 [RIN 2070–AJ92] 10 or more 0.576
3101 (iii) Variation from previous results . If data from a TSCA Title VI Accredited TPC's 3102 quarterly test results and a panel producer's quality control test results do not fit the previously 3103 established correlation, the TSCA Title VI Accr edited TPC must establish a new correlation, and 3104 new quality control limits. 3105 (iv) Failed quarterly tests. If a panel producer fails two quarterly tests in a row for the 3106 same product type, the TSCA Title VI Accredite d TPC must establish a new correlation curve. 3107 (e) Quality assurance and qua lity control requirements for panel producers. Panel 3108 producers are responsible for produc t compliance with the applicable emission standards. 3109 (1) Quality control manual-- (i) Each panel producer must have a written quality control 3110 manual containing, at a minimum, the following: 3111 (A) A description of the organizational stru cture of the quality control department, 3112 including the names of the quality control manager and quality control employees. 3113 (B) A description of the sampli ng procedures to be followed. 3114 (C) A description of the me thod of handling samples. 3115 (D) A description of the frequenc y of quality control testing. 3116 (E) A description of the procedures used to identify changes in formaldehyde emissions 3117 resulting from production changes ( e.g. , increase in the percentage of resin, increase in 3118 formaldehyde/urea molar ratio in the resin, or decrease in press time). 3119 (F) A description of provisions for additional testing. 3120 (G) A description of recordkeeping procedures. 3121 (H) The average percentage of resin and press time for each product type. 3122*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 142 of 153 [RIN 2070–AJ92] (I) A description of product grouping, if applicable. 3123 (J) Procedures for reduced qualitycontrol testing, if applicable. 3124 (ii) The quality control manual must be a pproved by a TSCA Title VI Accredited TPC. 3125 (2) Quality control facilities. Each panel producer must de signate a quali ty control 3126 facility for conducting quality c ontrol formaldehyde testing. 3127 (i) The quality control facility must be a laboratory owned and operated by the panel 3128 producer, a TSCA Title VI Accredited TP C, or a contract laboratory. 3129 (ii) Each quality control fac ility must have quality control employees with adequate 3130 experience and/or training to conduct accurate chemi cal quantitative analytical tests. The quality 3131 control manager must identify each person conduc ting formaldehyde quality control testing to 3132 the TSCA Title VI Accredited TPC. 3133 (3) Quality control manager. Each panel producer must designate a person as quality 3134 control manager with adequate experience and/or training to be responsible for formaldehyde 3135 emission quality control. The quality control manager must: 3136 (i) Have the authority to take actions necessa ry to ensure that applicable formaldehyde 3137 emission standards are being met on an ongoing basis. 3138 (ii) Be identified to the TSCA Title VI A ccredited TPC that will be overseeing the quality 3139 control testing. The panel producer must notif y the TSCA Title VI Accredited TPC in writing 3140 within 10 days of any change in the identity of the quality control manager and provide the 3141 TSCA Title VI Accredited TPC with the new quality control manager’s qualifications. 3142 (iii) Review and approve all reports of quality control testing conducted on the 3143 production of the panel producer. 3144*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 143 of 153 [RIN 2070–AJ92] (iv) Ensure that the samples are collec ted, packaged, and shipped according to the 3145 procedures specified in the quality control manual. 3146 (v) Immediately inform the TSCA Title VI Ac credited TPC in writing of any significant 3147 changes in production that could affect formaldehyde emissions. 3148 § 770.22 Non-complying lots. 3149 (a) Non-complying lots are not certified composite wood pr oducts and they may not be 3150 sold, supplied or offered for sale in the United St ates except in accordance with this section. 3151 (b) Non-complying lots must be isolated from certified lots. 3152 (c) Non-complying lots may be retested using the same te st method if each panel is 3153 treated with a scavenger or handl ed by other means of reducing formaldehyde emissions, such as 3154 aging. Tests must be performed as follows: 3155 (1) At least three test panels must be selected from three separate bund les. They must be 3156 selected so that they are represen tative of the entire lot. Test samples must not be selected from 3157 the top or bottom panels of a bundle. 3158 (2) The average of all samples must test at or below the applicable emission standards in 3159 § 770.10. 3160 (d) Information on the disposition of non-co mplying lots, including product type and 3161 amount of composite wood products affected, lot or batch numbers, mitigation measures used, 3162 results of retesting, and final di sposition, must be provided to th e TSCA Title VI Accredited TPC 3163 within 7 days of final disposition. 3164 § 770.24 Samples for testing. 3165 (a) Composite wood product panels may be shipped into and transported across the 3166 United States for quality control or quarterly tests. 3167*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 144 of 153 [RIN 2070–AJ92] (1) Such panels may not be sold, offered for sale or supplied to a ny entity other than a 3168 TSCA Title VI Accredited TPC laboratory or a contract laboratory before testing in accordance 3169 with § 770.20. 3170 (2) If test results for such panels demonstr ate compliance with the emissions standards in 3171 this subpart, the panels may be relabeled in accordance with § 770.50 and sold, offered for sale, 3172 or supplied. 3173 § 770.30 Importers, fabricators, laminated pro duct producers, distributors, and retailers. 3174 (a) Importers, fabricators, laminated product producers whose products are exempt from 3175 the definition of hardwood plywood, distributors, and retailers must take reasonable precautions 3176 to ensure that they are purc hasing composite wood products, whet her in the form of panels, 3177 component parts, or finished goods, that co mply with the emission standards and other 3178 requirements of this subpart. 3179 (b) For importers, fabricators, and lami nated product producers, taking reasonable 3180 precautions means specifying TSCA Title VI comp liant products when ordering or purchasing 3181 from suppliers and obtaining the following records: 3182 (1) Records identifying the panel producer and the date the composite wood products 3183 were produced. 3184 (2) Records identifying the date the composite wood products were purchased. 3185 (3) Bills of lading or invoices that include a written affirmation from the supplier that the 3186 composite wood products are compliant with this subpart. 3187 (c) Importers of articles that are composite wood products, or arti cles that contain 3188 composite wood products, must comply with the import certification regulations for “Chemical 3189 Substances in Bulk and As Part of Mixtur es and Articles,” as found at 19 CFR 12.118 through 3190*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 145 of 153 [RIN 2070–AJ92] 12.127 or as later promulgated. 3191 (d) Records required by this section must be maintained in accordance with § 770.40(d). 3192 § 770.40 Reporting and recordkeeping. 3193 (a) Panel producers must maintain the followi ng records for a period of 5 years. The 3194 following records must also be made available to the panel producers’ TSCA Title VI Accredited 3195 TPCs. Records described in para graph (a)(1) of this section must also be made available to 3196 purchasers of their composite wood products. 3197 (1) Records of all quarterly emission test ing and all ongoing quali ty control testing. 3198 These records must identify the TSCA Title VI Accredited TPC conducting or overseeing the 3199 testing and the laboratory or qua lity control facilityactually performing the testing. These 3200 records must also include the date , the product type tested, the lot or batch number that the tested 3201 material represents, the test method used, and the test results. 3202 (2) Production records, including a descripti on of the composite wood product(s), the 3203 date of manufacture, lot or ba tch numbers, and tracking inform ation allowing each product to be 3204 traced to a specific lot number or batch produced. 3205 (3) Records of changes in pr oduction, including changes of more than 10% in the resin 3206 use percentage, changes in resin composition that result in a higher ratio of formaldehyde to 3207 other resin components, and change s in the process, such as changes in press time by more than 3208 20%. 3209 (4) Records demonstrating in itial and continued eligibil ity for the reduced testing 3210 provisions in § 770.17, if applicable. These records must include: 3211 (i) Approval for reduced testing from a TSCA Title VI Accredited TPC. 3212 (ii) Amount of resin use re ported by volume and weight. 3213*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 146 of 153 [RIN 2070–AJ92] (iii) Production volume reported as square feet per product type. 3214 (iv) Resin trade name, resin manufacturer c ontact information, and resin supplier contact 3215 information. 3216 (v) Any changes in the form ulation of the resin. 3217 (5) Purchaser information for each composite wood product, if applicable, including the 3218 name, contact person, address, te lephone number, e-mail address if available, purchase order or 3219 invoice number, and amount purchased. 3220 (6) Transporter information for each compos ite wood product, if applicable, including 3221 name, contact person, address, telephone number, e-mail address if av ailable, and shipping 3222 invoice number. 3223 (7) Information on the disposition of non-co mplying lots, including product type and 3224 amount of composite wood products affected, lot or batch numbers, mitigation measures used, 3225 results of retesting, and final disposition. 3226 (8) Copies of labels used. 3227 (b) Panel producers must provide their TSCATitle VI Accredited TPC with monthly 3228 product data reports for each production facility, production line, and product type, maintain 3229 copies of the reports for a minimum of 5 years from the date that theyare produced. Monthly 3230 product data reports must contain a data sheet for each specific product type with test and 3231 production information, and a quality control graph containing the following: 3232 (1) Quality Control Limit (QCL). 3233 (2) Shipping QCL (if applicable). 3234 (3) Results of quality control tests. 3235 (4) Retest values. 3236*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 147 of 153 [RIN 2070–AJ92] (c) Laminated product producers whose products are exempt from the definition of 3237 hardwood plywood must keep reco rds demonstrating eligibility for the exemption. These 3238 records include: 3239 (1) Resin trade name, resin manufacturer co ntact information, resi n supplier contact 3240 information, and resin purchase records. 3241 (2) Panel producer contact information and panel purchase records. 3242 (3) For panels produced in-house, records de monstrating that the panels have been 3243 certified by an accredited TPC. 3244 (4) For resins produced in-house, records dem onstrating the production of NAF resins. 3245 (d) Importers, fabricators, and laminated product producers whose products are exempt 3246 from the definition of hardwood plywood must ma intain the records described in § 770.30 and 3247 copies of labels used. These records must be ma intained for a minimum of 5 years from the date 3248 that they are produced. 3249 (e) Distributors and retailers must retain invo ices and bills of lading and copies of labels 3250 used. These records must be maintained for a mi nimum of 5 years from the date that they are 3251 produced. 3252 § 770.45 Labeling. 3253 (a) Panels or bundles of panels that are sol d, supplied, or offered for sale in the United 3254 States must be labeled with the panel producer’s name, the lot or batch number, the number of 3255 the TSCA Title VI Accredited TPC, and a stat ement that the products are TSCA Title VI 3256 certified. 3257 (1) A panel producer number may be used inst ead of a name to prot ect identity, so long 3258 as the identity of the panel producer can be determined at the request of EPA. 3259*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 148 of 153 [RIN 2070–AJ92] (2) Panels or bundles of panels manufactured in accordance with § 770.17 must also be 3260 labeled that they were made with no-added form aldehyde-based resins in addition to the other 3261 information required by this section. 3262 (b) Panels imported into or transported acro ss the United States for quarterly or quality 3263 control testing purposes in accordance with § 770.20 must be labeled “For TSCA Title VI testing 3264 only, not for sale in the United Stat es.” The panels may be re-label ed if test results are below the 3265 applicable emissions standa rds in this subpart. 3266 (c) Fabricators of finished goods containi ng composite wood products must label every 3267 finished good they produce, or ev ery box containing fi nished goods. 3268 (1) The label may be applied as a stamp, tag, sticker, or bar code. 3269 (2) The label must include, at a minimum, th e fabricator’s name, the date the finished 3270 good was produced, and a statement that the finished goods are TSCA Title VI compliant. 3271 (d) Distributors, wholesalers, and retailers who receive labeled bundles of regulated 3272 composite wood products and then divide and rep ackage them, whether in bundles or separately, 3273 must label each separate bundle or item with the same informati on as required on the original 3274 label. Labels on bundles that are not so repack aged must be kept intact by distributors, 3275 wholesalers, and retailers. 3276 § 770.55 Prohibited acts. 3277 (a) The following are prohibit ed acts under TSCA section 15: 3278 (1) Manufacturing (includi ng import) non-certified compos ite wood products unless the 3279 products are specifically exempted by this subpart. 3280 (2) Manufacturing (including import) composite wood products without complying with 3281 the testing provisions in § 770.20, unl ess the products are specifically exempted by this subpart. 3282*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 149 of 153 [RIN 2070–AJ92] (3) Selling, offering for sale, or supplyi ng non-certified composite wood products unless 3283 the products are specificallyexempted by this subpart. 3284 (4) Selling, offering for sale, or supply ing composite wood products belonging to non3285 complying lots without first complyi ng with the provisions of § 770.22. 3286 (5) Selling, offering for sale, or supplying certified composite wood products that are not 3287 labeled in accordance with § 770.45. 3288 (6) Selling, offering for sale, or supplyi ng composite wood products that exceed the 3289 applicable emission standards of § 770.10. 3290 (7) Failing to comply with the r ecordkeeping requirements of § 770.40. 3291 6. Section 770.99 is revised to read as follows: 3292 § 770.99 Incorporation by reference. 3293 The materials listed in this section are incorp orated by reference into this part with the 3294 approval of the Director of th e Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To 3295 enforce any edition other than that specified in this section, a document must be published in the 3296 Federal Registerand the material must be available to the public. All approved materials are 3297 available for inspection at the OPPT Docket in the EPA Docket Center (EPA/DC) at Rm. 3334, 3298 EPA, West Bldg., 1301 Constitution Ave., NW., Wash ington, DC. The EPA/DC Public Reading 3299 Room hours of operation are 8:30 a.m. to 4: 30 p.m., Monday through Friday, excluding legal 3300 holidays. The telephone number of the EPA/DC Public Reading room is (202) 566-1744, and the 3301 telephone number for the OPPT Docket is (202) 566-0280. In addition, thes e materials are also 3302 available for inspection at the National Arch ives and Records Admi nistration (NARA). For 3303 information on the availability of this material at NARA, call (202) 741-6030 or go to 3304 http://www.archives.gov/federal_regi ster/code_of_fede ral_regulations/ 3305*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 150 of 153 [RIN 2070–AJ92] ibr_locations.html. These materials may also be obtained fr om the sources listed in this section. 3306 (a) ANSI material . Copies of these materials may be obtained from the American 3307 National Standards Institute, 1899 L Street, NW., 11 thFloor, Washington, DC 20036, or by 3308 calling (202) 293-8020, or at http://ansi.org/

. 3309 (1) ANSI A135.4- 2004, American National St andard, Basic Har dboard, IBR approved 3310 for § 770.3. 3311 (2) ANSI A135.5-2004, American National Stan dard, Prefinished Hardboard Paneling, 3312 IBR approved for § 770.3. 3313 (3) ANSI A135.6-2006, American National Stan dard, Hardboard Siding, IBR approved 3314 for § 770.3. 3315 (4) ANSI A190.1-2002, American National Stan dard for Wood Products, Structural 3316 Glued Laminated Timber, IBR approved for § 770.1. 3317 (5) ANSI A208.1-2009, American National St andard, Particleboard, IBR approved for 3318 § 770.3. 3319 (6) ANSI A208.2–2-2009, American National St andard, Medium Density Fiberboard 3320 (MDF) for Interior Applications, IBR approved for § 770.3. 3321 (7) ANSI/HPVA HP–1–2009, American Na tional Standard for Hardwood and 3322 Decorative Plywood, IBR approved for § 770.3. 3323 (b) ASTM material . Copies of these materials may be obtained from ASTM International, 3324 100 Barr Harbor Dr., P.O. Box C700, West Conshohocken, PA, 19428-2959, or by calling (877) 3325 909-ASTM, or at http://www.astm.org. 3326 (1) ASTM D5055-05 (2005), Standard Specifi cation for Establishing and Monitoring 3327 Structural Capacities of Prefabricate d Wood I-Joists, IBR approved for § 770.1. 3328*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 151 of 153 [RIN 2070–AJ92] (2) ASTM D5456-06 (2006), Standard Specifi cation for Evaluation of Structural 3329 Composite Lumber Products, IBR approved for § 770.1. 3330 (3) ASTM D5582-00 (Reapproved 2006), Octo ber 1, 2006, Standard Test Method for 3331 Determining Formaldehyde Levels from Wood Produc ts Using a Desiccator, IBR approved for 3332 §§ 770.7(a) through (c) and 770.20. 3333 (4) ASTM D6007-02 (Reapproved 2008), Octo ber 1, 2008, Standard Test Method for 3334 Determining Formaldehyde Concentrations in Air from Wood Products Using a Small-Scale 3335 Chamber, IBR approved for §§ 770.7(a) through (c), 770.15, 770.17, and 770.20. 3336 (5) ASTM E1333-10 (Approved 2010), Standard Test Method for Determining 3337 Formaldehyde Concentrations in Air and Emi ssion Rates from Wood Products Using a Large 3338 Chamber, IBR approved for §§ 770.7(a) through (c), 770.10, 770.15, 770.17, and 770.20. 3339 (c) CEN materials. Copies of these materials are not directly available from the 3340 European Committee for Standardization, but from one of CEN’s National Members, Affiliates, 3341 or Partner Standadisation Bodies. To pur chase a standard, go to CEN’s website, 3342 http://www.cen.eu , and select “Products” for more detailed information. 3343 (1) EN 120:1992, Wood based panels. Dete rmination of formaldehyde content3344 Extraction method called the perforator method, English Version, IBR approved for § 770.20. 3345 (2) EN 717-2:1995, Wood-based panels. Dete rmination of formaldehyde release3346 Formaldehyde release by the gas analysis me thod, English Version, IBR approved for § 770.20. 3347 (d) Georgia Pacific material . Copies of this material may be obtained from Georgia3348 Pacific Chemicals LLC, 133 Peachtree Street , Atlanta, GA 30303, or by calling (877) 377-2737, 3349

or at http://www.gp-dmc.com/default.aspx. 3350
3351*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 152 of 153 [RIN 2070–AJ92] (1) GP DMC (Dynamic Micro Chamber) Manual, 2011 Edition, IBR approved for 3352 § 770.20. 3353 (2) [Reserved] 3354 (e) ISO material. Copies of these materials may be obtained from the International 3355 Organization for Standardization, 1, ch. de la Voie-Creuse, CP 56, CH-1211, Geneve 20, 3356 Switzerland, or by calling +41-22-749-01-11, or at http://www.iso.org

. 3357 (1) ISO/IEC 17011:2004(E), Conformity A ssessments--General Requirements for 3358 Accreditation Bodies Accrediting Conformity A ssessments Bodies (First Edition), IBR approved 3359 for §§ 770.7(a) through (c) and 770.60. 3360 (2) ISO/IEC 17020:1998(E), General Criteria fo r the Operation of Various Types of 3361 Bodies Performing Inspections (First Editi on), IBR approved for §§ 770.7(a) through (c) and 3362
770.60. 3363 (3) ISO/IEC 17025:2005(E), General Requirements for the Competence of Testing 3364 and Calibration Laboratories (Second Edition), May 15, 2005, IBR approved for 3365 §§ 770.7(a) through (c) and 770.60. 3366 (4) ISO/IEC Guide 65:1996(E), General Requ irements for Bodies Operating Product 3367 3368 Certification Systems (First Edition), 1996, IBR approved for §§ 770.7(a) through (c) and 3369 770.60. 3370 3371 (f) Japanese Standards Association. Copies of this material may be obtained from 3372 Japanese Industrial Standards, 1-24, Akasak a 4, Minatoku, Tokyo 107-8440, Japan, or by calling 3373 +81-3-3583-8000, or at http://www.jsa.or.jp/. 3374 (1) JIS A 1460:2001 Building boards Determination of formaldehyde emission3375 Desiccator method, English Vers ion, IBR approved for § 770.20. 3376 (2) [Reserved] 3377*** EO12866/13563 Review Draft – Do Not Cite, Quote or Release During the Review ***

Page 153 of 153 [RIN 2070–AJ92] (g) NIST material . Copies of these materials may be obtained from the National Institute 3378 of Standards and Technology (NIST) by calling (800) 553-6847 or from the U.S. Government 3379 Printing Office (GPO). To purchase a NIST public ation you must have the order number. Order 3380 numbers may be obtained from the Public Inqui ries Unit at (301) 975-NIST. Mailing address: 3381 Public Inquiries Unit, NIST, 100 Bureau Dr., Stop 1070, Gaithersburg, MD 20899-1070. If you 3382 have a GPO stock number, you can purchase printed copies of NIST publications from GPO. 3383 GPO orders may be mailed to: U.S. Government Printing Office, P.O. Box 979050, St. Louis, 3384 MO 63197-9000, placed by telephone at (866) 51 2-1800 (DC Area only: (202) 512-1800), or 3385 faxed to (202) 512-2104. Additional in formation is available online at: http://www.nist.gov

. 3386 (1) Voluntary Product Standard PS-1-07 ( 2007), Structural Plywood, IBR approved for 3387 §§ 770.1 and 770.3. 3388 (2) Voluntary Product Standard PS-2-04 (2004) , Performance Standard for Wood-Based 3389 Structural-Use Panels, IBR approved for §§ 770.1 and 770.3. 3390
## 3391