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### Composite Wood Products Regulation Advisory: 11- 01

EXTENSION OF SELL-THROUGH DATES FOR: DISTRIBUTORS, IMPORTERS, FABRICATORS , AND RETAILERS OF FINISHED GOODS
CONTAINING PHASE 1 HARDWOOD PLYWOOD - VENEER CORE

AND
DISTRIBUTORS OF PHA SE 1 PARTICLEBOARD AND
MEDIUM DENSITY FIBERBOARD PANELS

The California Air Resources Board (ARB) is delay ing the enforcement of tw o sell-through dates that affect distributors, importers, f abricators, and retailers of finis hed goods made with Phase 1 hardwood plywood - veneer core (HWPW-VC ), and distributors of Phase 1 particleboard (PB) and medium density fiberboard (MDF) panels. The extension for distributors, importe rs, fabricators, and retailers of finished goods is through June 30, 2012, and affects businesses that use HWPW-VC panels (i.e., fabricators) to make finish ed goods, as well as businesses that distribute or sell these goods in
California. In addition to the fi nished goods extension, this advisor y also provides an extension for distributors of Phase 1 PB and MDF panels through Dece mber 31, 2011, aligning this date with the sell-through date for panel retaile rs. The extensions will not change the anticipated emissionreduction benefits, because ARB had expected that these panels and finished goods would have already been sold if the economy and turnover of inventories had not slowed. The formaldehyde emission standards affecting newly manufactured co mposite wood products will not be delayed.

ARB recognizes that many busin esses that sell and supply panels and finished goods containing composite wood products have been and continue to be adversely affected by the economic downturn. Therefore, ARB is providing additional time to a llow businesses to deplete their existing
inventories manufactured before t he more stringent Phase 2 emission standards became effective.

Definitions

 “Phase 1 PB and MDF panels” means PB and MDF panels manufactu red before January 1, 2011, that comply wit h the Phase 1 emission standards specified in ARB’s Airborne Toxic Control Measure To Reduce Formaldehy de Emissions From Composite Wood Products (the “Regulation”.)

 “Finished goods” means any good or product, other than a panel, containing HWPW, PB, or MDF. Most of these panels are used to make finished goods, such as furniture, cabinets, shelving, countertops, flooring, and moldings in homes.

 “Phase 1 finished goods containing HWPW-VC” means finished goods that contain
Phase 1 HWPW-VC.

 “Extension” and “delay in enforcement” means that ARB will not enforce the sell-through
dates for: - Finished goods made with Phase 1 HWPW-V C panels until after June 30, 2012; and - Phase 1 PB and MDF panels sold by dist ributors until after December 31, 2011. 

# Regulatory Advisory

Ma y 2011Page 2 of 3 Background

Businesses required to comply with the Regulation are: manufacturers, di stributors, importers, fabricators, and retailers of co mposite wood product panels and finished goods that contain regulated products. The Regulation establ ishes a phased-in approach to formaldehyde emission standards with the most stringent standards going into effect between January 2010 and July 2012.

To comply with the Regulation, panels must meet the formaldehyde emission standards specified in the Regulation and must have been produced by a ma nufacturer that has been certified by an ARB-approved third party certifier. Similarly, panels used to make finished goods must also have been certified as complying with t he emission standards.

The Regulation has provisions that a llow businesses a limited amo unt of time to sell or use non-compliant composite wood products if those pr oducts were manufactured before the effective
date of each emission standard. This is referred to as the se ll-through period. Allowing businesses time to sell or use existing inve ntories is intended to provide a sm oother market transition to each
new emission standard. If a com posite wood product was manufact ured after an applicable effective date, the product must meet the applicable emission standard.

What other issues should distri butors, importers, fabricators, and retailers be aware of?

Finished goods often contain a combination of di fferent composite wood pr oducts. The one-year extension will alleviate confusion caused by the current staggered sell-throug h dates, especially with regard to the labeling require ments in the Regulation.

No extensions have been provided to manufacturers of composite wood product panels. All newly manufactured HWPW-VC, PB, and MDF must be Phase 2 compliant at this point in time. All hardwood plywood with composite core (HWPW-CC) and thin MDF (MDF with a maximum thickness of eight millimeters) currently bei ng manufactured for California must be at least Phase 1 compliant. ARB staff has found that manufacturers currently have the capacity to produc e ample quantities of certified panels to meet the market dem and for both Phase 1 and Phase 2 products.

What are the extended sell-through dates?

As shown in the following table, the sell-through date is extended until June 30, 2012, for distributors, importers, fabricators, and retailers of finished goods containing Phas e 1 HWPW-VC. For distributors of Phase 1 PB and MDF panels, the sell-through dat e is extended until Dece mber 31, 2011.Page 3 of 3 Phase 1 Sell-through Dates for Distributors, Im porters, Fabricators, and Retailers of Finished Goods Containing HWPW-VC Panels, a nd for Distributors of PB and MDF Panels

Dates Specified in Regulation Extended Dates Number of Months
Extended from Original Date Distributors, importers, fabricators, and
retailers of finished goods containing
Phase 1
HWPW-VC June 30, 2011 June 30, 2012 12

Distributors of
Phase 1 PB and MDF panels May 31, 2011 December 31, 2011 7

For more information

The Regulation may be viewed at: http://www.arb.ca.gov/toxics/compwood/compwood.htm

. Appendix 1 of section 93120.12 of t he Regulation sets forth the sell -through provisions. Additional information about complying with the Regulation, including staff contac ts, fact sheets and Frequently Asked Questions, is av ailable on this website.