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1 EO12866_RIN2070-AJ92_Formaldehyde-Imp_NPRM_IRFA_2013-04-11_MARKUP.docx 

2 

3 Initial Regulatory Flexibility Analysis for 

4 Formaldehyde Emission Standards for Composite Wood Products 

5 Proposed Rule; RIN 2070-AJ92 

6 

7 

8 U.S. Environmental Protection Agency, Office of Pollution Prevention and Toxics 

9 January 2012

10 April 2013

11 

12 

13 Pursuant to section 603 of the Regulatory Flexibility Act (RFA) (5 U.S.C. § 601 et seq.), EPA has 

14 prepared this initial regulatory flexibility analysis for the “Formaldehyde Emission Standards for 

15 Composite Wood Products” proposed rule. 

16 

17 1. Need For the Rule

18 

19 TSCA section 601(d) directs EPA to promulgate regulations to implement the formaldehyde 

20 standards for composite wood products described in TSCA section 601(b)(2). EPA is issuing a proposed 

21 rule under TSCA Title VI to implement the statutory formaldehyde emission standards for hardwood 

22 plywood, medium-density fiberboard, and particleboard sold, supplied, offered for sale, or manufactured 

23 (including imported) in the United States. As directed by the statute, this proposal includes provisions 

24 relating to, among other things, laminated products, products made with no-added formaldehyde resins, 

25 testing requirements, product labeling, chain of custody documentation and other recordkeeping 

26 requirements, and product inventory sell-through provisions, including a product stockpiling prohibition. 

27 

28 2. Objectives and Legal Basis for the Rule 

29 

30 The legal basis for the rule is TSCA section 601(d), which provides authority for the 

31 Administrator to “promulgate regulations to implement the standards required under subsection (b) in a 

32 manner that ensures compliance with the emission standards described in subsection (b)(2).” Therefore, 

33 the central objective of this proposal is to ensure compliance with the TSCA Title VI formaldehyde 

34 emission standards. 

35 

36 3. Description and Number of Small Entities to Which the Rule Will Apply

37 

38 The proposed rule potentially affects small manufacturers (including importers), fabricators, 

39 distributors, and retailers of composite wood products. These may include, but are not limited to, entities 

40 in the following industries: 

41 

42 • Hardwood Veneer and Plywood Manufacturing (NAICS code 321211); 

43 • Reconstituted Wood Product Manufacturing (NAICS code 321219); 

44 • All Other Miscellaneous Wood Product Manufacturing (NAICS code 321999); 

45 • Furniture and Related Product Manufacturing (NAICS code 337); 

46 • Miscellaneous Manufacturing (NAICS code 339); 

47 • Merchant Wholesalers, Durable Goods (NAICS code 423); 

48 • Merchant Wholesalers, Nondurable Goods (NAICS code 424); and 

49 • Retail Trade (NAICS Sector 44 and 45). 

50 

51 This listing is not intended to be exhaustive, but rather provides a guide for readers regarding entities 

52 likely to be affected by this action. Other types of entities could also be affected. 
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53 

54 For purposes of assessing the impacts of the rule on small entities, small entity is defined as: (1) a 

55 small business as defined by the Small Business Administration’s (SBA) regulations at 13 CFR 121.201; 

56 (2) a small governmental jurisdiction that is a government of a city, county, town, school district or 

57 special district with a population of less than 50,000; and (3) a small organization that is any not-for-profit 

58 enterprise which is independently owned and operated and is not dominant in its field. 

59 

60 EPA estimates that the rule will affect approximately 879,000 small entities. 

61 

62 4. Projected Compliance Requirements, Classes of Small Entities Subject to the Compliance 

63 Requirements, and Professional Skills Needed to Comply

64 

65 A. Projected Compliance Requirements

66 

67 This proposal implements the statutory formaldehyde emission standards for hardwood plywood, 

68 medium-density fiberboard, and particleboard sold, supplied, offered for sale, or manufactured (including 

69 imported) in the United States. As directed by the statute, this proposal includes provisions relating to, 

70 among other things, laminated products, products made with no-added formaldehyde resins or ultra-low 

71 emitting formaldehyde resins, testing requirements, product labeling, chain of custody documentation and 

72 other recordkeeping requirements, and product inventory sell-through provisions, including a product 

73 stockpiling prohibition. This proposal would establish requirements for manufacturers (including 

74 importers), fabricators, distributors, and retailers of composite wood products. The regulatory provisions 

75 in this proposal are designed to ensure compliance with the TSCA Title VI formaldehyde emission 

76 standards while aligning, where practical, with the regulatory requirements under the California Air 

77 Resources Board’s (CARB) Airborne Toxic Control Measure (ATCM) to reduce formaldehyde emissions 

78 from composite wood products. By aligning itself with the existing CARB requirements, EPA seeks to 

79 avoid differing or duplicative regulatory requirements that would result in an increased burden on the 

80 regulated community. 

81 

82 B. Classes of Small Entities Subject to the Compliance Requirements

83 

84 Small entities include small businesses, small organizations, and small governmental 

85 jurisdictions. The small entities that are potentially directly regulated by this rule are small businesses 

86 that are manufacturers (including importers), fabricators, distributors, or retailers of composite wood 

87 products. No small governments or small organizations are expected to be directly regulated by the rule. 

88 

89 C. Professional Skills Needed to Comply

90 

91 Each panel producer must designate a person as quality control manager with adequate 

92 experience and/or training to be responsible for formaldehyde emission quality control. EPA has not 

93 proposed criteria for determining whether an individual’s experience or training are appropriate for this 

94 position, but experience in the wood products industry or a degree in chemistry or a related field might 

95 provide the skills needed to comply with the requirements. 

96 

97 A panel producer must be able to follow sampling and handling procedures for the material that is 

98 to be tested. However, those procedures must be described in the facility’s quality control manual, and 

99 specified skills should not be needed to follow the written procedures. 

100 

101 Each panel producer must also designate a quality control facility for conducting quality control 

102 formaldehyde testing, and the quality control facility must have quality control employees with adequate 

103 experience and/or training to conduct accurate chemical quantitative analytical tests. But instead of 
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104 performing these functions themselves, panel producers have the option of hiring an accredited third party 

105 certifier (TPC) or a contract laboratory to fulfill these requirements. 

106 

107 To obtain product certification, a panel producer must apply to an accredited TPC, and must 

108 provide information and notifications to the TPC. Finally, manufacturers, fabricators, distributors, or 

109 retailers of composite wood products must maintain records, and may need to request information from 

110 their suppliers and provide information to their customers. None of these activities requires any special 

111 skills. 

112 

113 5. Other Federal Rules that may Duplicate, Overlap, or Conflict with the Rule 

114 

115 The U.S. Department of Housing and Urban Development (HUD) has regulations governing 

116 formaldehyde emission levels from plywood and particleboard materials installed in manufactured homes. 

117 (See 24 CFR 3280.308.) However, TSCA Title VI establishes specific formaldehyde emission standards 

118 for hardwood plywood, particleboard, and medium-density fiberboard and does not provide EPA with the 

119 authority to modify these standards. Furthermore, the Formaldehyde Standards for Composite Wood 

120 Products Act, which includes TSCA Title VI, directs HUD to revise their regulations to ensure that they 

121 reflect the emission standards in TSCA Title VI. And the HUD regulations do not deal with the other 

122 elements addressed in these implementing regulations (where EPA does have the authority to make 

123 determinations) such as laminated products, products made with no-added formaldehyde resins or ultra124 low emitting formaldehyde resins, testing requirements, chain of custody documentation, and product 

125 inventory sell-through provisions. Therefore, the regulatory provisions of this proposal for which EPA 

126 has flexibility in implementing the statute do not duplicate, overlap, or conflict with any other Federal 

127 rules. 

128 

129 6. Potential Economic Impacts on Small Entities 

130 

131 Of the nearly 879,000 small firms affected by the rule, approximately 851,000 (about 97 percent) 

132 are expected to have costs impacts that are less than one percent of their revenues, 23,000 firms (about 3 

133 percent) are expected to experience impacts at levels between one and three percent of their revenue, and 

134 4,000 firms (less than 1 percent) are expected to incur costs exceeding three percent of their revenues. 

135 

136 Many of the firms with cost impacts above 1 percent of their revenues are fabricators, 

137 wholesalers, and retailers with annualized costs less than $250 (i.e., they are firms with annual revenues 

138 below $25,000). These firms account for 92 percent of the firms with cost impacts that are between 1 and 

139 3 percent and 42 percent of the firms with cost impacts that exceed 3 percent. 

140 

141 7. Minimization of Economic Impacts on Small Entities Consistent with Statutory Objectives, 

142 and Consideration of Alternatives

143 

144 A. Small Business Advocacy Review Panel 

145 

146 As required by section 609(b) of the RFA, as amended by the Small Business Regulatory 

147 Enforcement Fairness Act (SBREFA), EPA conducted outreach to small entities and convened a Small 

148 Business Advocacy Review Panel on February 3, 2011 to obtain advice and recommendations of 

149 representatives of the small entities that potentially would be subject to the rule's requirements. The Panel 

150 solicited input on all aspects of these proposed regulations and on the framework for the third-party 

151 certification program under TSCA Title VI. Seventeen potentially-impacted small entities served as 

152 small-entity representatives (SERs) to the Panel, representing a broad range of small entities from diverse 

153 geographic locations, and five trade associations. The Panel concluded its deliberations on April 4, 2011. 

154 
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155 Consistent with the RFA/SBREFA requirements, the Panel evaluated the assembled materials and 

156 small-entity comments on issues related to elements of the IRFA. It is important to note that the Panel’s 

157 findings and discussion were based on the information available at the time the final report was prepared. 

158 EPA has continued to conduct analyses relevant to the proposed rule, and additional information may be 

159 developed from public comment on the proposed rule. 

160 

161 The Panel’s most significant findings and recommendations on the TSCA Title VI implementing 

162 regulations are summarized below. 

163 

164 1. In general. The Panel recommended that EPA adopt regulatory requirements that are 

165 consistent with the CARB ATCM wherever possible. EPA agrees with this recommendation and has 

166 tried throughout this proposal to remain consistent with CARB where it is practical to do so. 

167 

168 2. Manufactured-by dates and stockpiling. The Panel generally agreed with those SERs that 

169 recommended that EPA propose to establish the manufactured-by date at 180 days after promulgation of 

170 the final rule and make the reference period for determining whether stockpiling has occurred the 12 

171 month period prior to promulgation of the final rule. 

172 

173 EPA is proposing to establish the manufactured-by date at 1 year after promulgation of the final 

174 rule. This is primarily to allow for development of the third-party certification infrastructure and to give 

175 panel producers who are not already complying with the CARB ATCM adequate time before the 

176 manufactured-by date to select an accredited third-party certifier, develop a quality control manual, and 

177 complete the initial testing to qualify for product certification. 

178 

179 EPA is proposing to establish the stockpiling reference period, or base period, as the calendar 

180 year 2009 because, under TSCA Title VI, the base period must end before the statute was enacted. 

181 

182 3. Quality control and compliance testing. The Panel recommended that EPA consider CARB’s 

183 method of establishing equivalency and carefully evaluate any alternative test method permitted. EPA is 

184 proposing to use CARB’s method of establishing equivalency between test methods and EPA is also 

185 proposing to recognize those alternative test methods that CARB has approved. 

186 

187 The Panel further recommended that EPA provide clear direction on product decertification and 

188 recertification procedures and the recall of noncompliant products. In response to these 

189 recommendations, EPA has proposed specific provisions on what actions are required and allowed in the 

190 event of a failed test result. EPA has also proposed to require panel producers to hold lots selected for 

191 testing until the test results are received. 

192 

193 4. Labeling and recordkeeping. The Panel generally recommended that labeling and record 

194 keeping provisions should be closely harmonized with CARB’s requirements, including allowing panels 

195 to be labeled by bundle, rather than individually. The Panel did recognize that subtle differences between 

196 the TSCA Title VI implementing regulations and the CARB ATCM may make identical labels 

197 impossible. EPA is proposing labeling requirements that are virtually identical to CARB’s, except that 

198 the labels must say that the products are TSCA Title VI compliant instead of CARB compliant. For 

199 entities that are manufacturers under TSCA (i.e., they manufacture, produce, or import composite wood 

200 panels, component parts, or finished goods), EPA’s proposed recordkeeping and chain -of custody 

201 documentation requirements are also virtually identical to CARB’s. For distributors and retailers that are 

202 not manufacturers under TSCA, EPA is proposing that the only records they be required to keep are 

203 invoices and bills of lading. This requirement is less burdensome than recordkeeping and chain of 

204 custody requirements similar to those in the CARB ATCM.

205 
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206 5. Laminated products and engineered veneer. The Panel recommended that EPA continue to 

207 seek available information, and exempt those laminated products that can be exempted consistent with the 

208 direction given in TSCA Title VI. The Panel further recommended that EPA work with small businesses, 

209 especially those laminating on a made-to-order basis, to design a testing scheme that is practical for those 

210 businesses, and at the same time, is calculated to ensure compliance with the emissions standards. The 

211 Panel also recommended that EPA consider basing the number and frequency of required quality control 

212 tests on production volume, thereby requiring fewer tests for smaller producers. EPA has incorporated all 

213 of these recommendations into this proposal, by proposing to exempt laminated products that are made 

214 with certified platforms and NAF resins, and by proposing to allow for quality control testing frequency 

215 based on production volume for hardwood plywood producers. 

216 

217 6. Definitions. The Panel recommended that EPA develop a definition of “hardboard” that takes 

218 the revised ANSI standard into account while ensuring that similar products are similarly regulated under 

219 TSCA Title VI. While a revised ANSI standard for “hardboard” has yet to be finalized, EPA believes that 

220 its proposed definition takes into account both widespread industry usage of the term and the intent of the 

221 statute. 

222 

223 Recognizing that TSCA Title VI was not intended to apply to structural plywood, the Panel also 

224 recommended that EPA develop a clear definition for “interior use” in order to eliminate confusion in the 

225 regulated community. According to the Panel, the definition should be based on the intent of the statute 

226 and consider how the hardwood plywood is likely to be used and stored once incorporated into a finished 

227 good. EPA has proposed a definition of “intended for interior use” that includes these considerations. 

228 

229 While the SERs differed in their advice on the definition of the term “panel,” the SBAR Panel 

230 recommended that EPA reduce uncertainty in the regulated community by including in its regulation a 

231 clear definition of “panel” that is based on the intent of the statute, and considers trade usage and the 

232 limitations of current test methods. Again, EPA is proposing a definition that takes these factors into 

233 account. 

234 

235 B. Alternatives considered 

236 

237 TheOver the course of this rulemaking, EPA considered alternatives for various provisions of the 

238 rule. For example, EPA’s Economic Analysis for the proposed rule examined a number of alternative 

239 analytical options in addition to the proposed rule. Among the alternatives based on the formaldehyde 

240 emissions standards set in Title VI of TSCA, EPA analyzed options with different optionsprovisions for 

241 how laminated products might be included in the definition of hardwood plywood, certification of 

242 ULEF products, and for the rule’s chain of custody and recordkeeping requirements. TheseMost of the

243 alternatives EPA considered would have applied to both small and large entities, but, given the number of 

244 small entities in the affected industries, some of these alternatives would largelycould affect many small 

245 entities. 

246 

247 EPA is proposing made a concerted effort to keep the option costs and burdens associated with 

248 this rule as low as possible while still ensuring compliance with the lowest total cost among these 

249 options. This will minimize any significant economic impact TSCA Title VI emissions standards. 

250 In developing the proposed rule, EPA considered the statutory requirements and the benefits from 

251 protection of human health and the environment, as well as the compliance costs imposed by the rule, 

252 both in general and on small entities. The EPA took a number of steps to reduce the economic impact 

253 that might be imposed by this rule on both small and large entities, where doing so was consistent with 

254 the statutory mandate. Although EPA did not have sufficient information to analyze and quantify the cost 

255 and burden reductions resulting from many of these decisions, these steps still reduce the impacts of the 

256 proposed rule. Some of the steps that EPA took are summarized below.
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257 

258 1. Aligning with the CARB ATCM where practical. This regulatory proposal is designed to ensure 

259 compliance with the TSCA Title VI formaldehyde emission standards while aligning, where practical, 

260 with the regulatory requirements in California in order to avoid differing or duplicative regulatory 

261 requirements that would result in an increased burden on the regulated community. Some of the areas 

262 where EPA has aligned the proposal with the CARB ATCM are described below. Aligning the TSCA 

263 implementing regulations with California’s requirements helps reduce costs for the nearly 100 composite 

264 wood product mills, the 32,000 fabricators, the 32,000 wholesalers, and the 101,000 retailers that are 

265 already complying with the CARB ATCM in the baseline. However, EPA deviated from the CARB 

266 ATCM where doing so would reduce burden while still ensuring compliance with the TSCA Title VI 

267 emissions standards. Based on EPA’s Economic Analysis included two options for the , the proposed 

268 rule costs $19 million to $31 million per year less than an option that is fully consistent with the CARB 

269 ATCM. 

270 

271 2. Defining hardwood plywood and laminated products. TSCA Title VI includes laminated products 

272 within the definition of hardwood plywood that had higher total costs than the proposed rule 

273 (because they did not include the proposed rule’sunless EPA determines, based on all relevant and 

274 available information, that they can be exempted through rulemaking. EPA considered various options 

275 for the definition of hardwood plywood. EPA is proposing to exempt laminated products in which a 

276 wood veneer is attached to a compliant and certified platform using a NAF resin from the definition of 

277 hardwood plywood. Unlike panel producers, fabricators do not need to conduct formaldehyde emissions 

278 testing or comply with TPC certification requirements. Instead, fabricators need to ensure that they are 

279 using compliant composite wood products through recordkeeping and labeling. These laminated product 

280 producers would also be required to maintain records demonstrating that they are using NAF resins. 

281 

282 EPA’s proposed definition of laminated product does not include the provision in the statutory 

283 definition limiting applicability to the manufacturer or fabricator of the finished good in which the 

284 product is incorporated. If EPA had retained the applicability limitation in TSCA Title VI, an entity that 

285 purchases certified particleboard or MDF panels, cuts and otherwise prepares them for future use as 

286 kitchen cabinet doors, attaches a hardwood veneer using a NAF resin, and then sells them to a kitchen 

287 cabinet manufacturer would not be considered a laminated product manufacturer and would not qualify 

288 for the proposed exemption from the definition of hardwood plywood. The door producer would then 

289 have to comply with the third party certification and testing requirements applicable to hardwood 

290 plywood manufacturers. By not differentiating between entities that produce an entire finished good and 

291 those that only produce part of the good, EPA’s proposed definition allows more entities to qualify for the 

292 exemption from the definition of hardwood plywood, which reduces the burden of compliance.

293 

294 Based on EPA’s Economic Analysis for the proposed rule, the proposed definitions of hardwood 

295 plywood and laminated products will result in 98% of laminated product producers being regulated as 

296 fabricators rather than panel producers. As a result, based on EPA’s Economic Analysis, the rule will 

297 cost $92 million to $172 million per year less than if all laminated products were included in the 

298 definition of hardwood plywood. 

299 

300 3. Reducing recordkeeping for non-manufacturers. EPA is proposing that distributors and retailers that 

301 do not import, produce, or manufacture composite wood panels, component parts, or finished goods be 

302 required to maintain invoices and bills of lading, instead of needing to obtain records identifying the panel 

303 producers that produced the composite wood products and the dates that the products were manufactured 

304 and purchased from the panel producers (similar to the chain of custody and recordkeeping requirements 

305 in the CARB ATCM). EPA believes that distributors and retailers usually keep invoices and bills of 

306 lading as part of their general recordkeeping practices, so this requirement does not impose additional 

307 recordkeeping burdens on most distributors and retailers. Based on EPA’s Economic Analysis for the 
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308 proposed rule, these reduced recordkeeping requirements decrease the cost of the rule by over $40 million 

309 per year compared to recordkeeping requirements similar to the CARB ATCM.

310 

311 4. Reducing testing for NAF and ULEF products. EPA proposes to provide producers of panels made 

312 with NAF or ULEF resins, as they are defined in TSCA Title VI, with an exemption from TPC oversight 

313 and formaldehyde emissions testing after an initial testing period of 3 months for each product type made 

314 with NAF resins and 6 months for each product type made with ULEF resins. EPA has not calculated the 

315 savings due to the NAF provisions, but based on EPA’s Economic Analysis for the proposed rule, the 

316 ULEF provisions reduce the total rule costs by $0.5 million per year.

317 

318 5. Not requiring retailers to relabel. EPA is proposing that retailers that divide or repackage regulated 

319 composite wood products would not be required to label each separate bundle or item with the 

320 information on the original label. Exempting retailers from the relabeling requirements decreases costs 

321 for any retailers that may engage in these activities.

322 

323 6. Reducing quality control testing for small hardwood plywood producers. EPA is proposing to base the 

324 frequency of quality control testing for hardwood plywood producers on the amount of product produced. 

325 Hardwood plywood producers would have to test at least four times per week per product type and 

326 production line if weekly production is 400,000 square feet or more; at least twice per week if weekly 

327 production is 200,000 square feet or more but less than 400,000 square feet; and at least once per week if 

328 weekly production is 100,000 square feet or more but less than 200,000 square feet. And unlike the 

329 CARB ATCM, EPA is proposing to reduce the frequency of quality control testing for producers making 

330 less than 100,000 square feet of hardwood plywood per week per product type from once per week to 

331 once per 100,000 square feet. If the panel producer never produces 100,000 square feet of a particular 

332 product type at one time, EPA is proposing to require just one quality control test of that product type per 

333 production run or lot produced. Furthermore, EPA is proposing that hardwood plywood producers not be 

334 required to conduct quality control testing when product type production ends, changes are made to the 

335 resin formulation or the amount of resin used, or there is a significant decrease in press time. These 

336 provisions reduce the cost of quality control testing for eligible panel producers, particularly for very 

337 small panel producers.

338 

339 7. Reducing quality control testing for certain panel producers with consistent operations. EPA is 

340 proposing to allow particleboard and medium-density fiberboard producers that demonstrate consistent 

341 operations and low variability of test values to request that their TPC reduce the required frequency of 

342 quality control testing from once per shift (8 or 12 hours) to up to once per 48-hours. This reduces the 

343 cost of quality control testing for eligible panel producers.

344 

345 8. Grouping of products and product types for testing. The proposal allows TPCs to approve the 

346 grouping of products with similar characteristics for quarterly testing. It also allows flexibility in 

347 determining which products constitute a product type for quality control testing purposes, so that products 

348 with similar emissions made with the same resin systems may be considered to be the same product type. 

349 Allowing products and product types to be grouped like this reduces the cost of testing.

350 

351 9. Defining hardboard. EPA is proposing to define hardboard based on the ANSI standards A135.4 

352 (Basic Hardboard), A135.5 (Prefinished Hardboard Paneling), and A135.6 (Hardboard Siding). This 

353 definition will exempt hardboard products (including those made with phenol-formaldehyde resin) from 

354 the statutory emission standards and the testing and certification requirements, so hardboard producers 

355 will not incur costs for those activities. 

356 

357 10. Extending manufactured-by date for sell-through provisions. Although TSCA Title VI allows EPA 

358 to set the manufactured-by date for the sell-through provisions at 180 days after promulgation of the final

359 rule, EPA proposes to set this date at 1 year after publication of the final rule. Extending the compliance 
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360 timetable beyond the statutory minimum decreases the compliance burden on panel producers, by 

361 allowing them extra time to seek certification of their products.

362 

363 11. Allowing alternate test methods. EPA is proposing that in addition to ASTM D-6007-02 and ASTM 

364 D-5582, the following methods would also be allowed for quality control testing (with a showing of 

365 equivalence): EN 717-2 (Gas Analysis Method), DMC (Dynamic Micro Chamber), EN 120 (Perforator 

366 Method), and JIS A 1460 (24-hr Desiccator Method). Allowing this flexibility in test methods decreases 

367 the cost of complying with the rule, particularly for firms that are not manufacturershave already 

368 adopted an alternate test method under TSCA) but that were the CARB ATCM.

369 

370 12. Not requiring recordkeeping for exempt products. EPA is proposing that manufacturers, fabricators, 

371 distributors, and retailers of products exempted from the rule not be required to keep records 

372 demonstrating that they are exempt. For example, windows that contain less than five percent by volume 

373 of composite wood products, exterior doors and garage doors that contain less than three percent by 

374 volume of composite wood products, and exterior and garage doors made with NAF-based or ULEF375 based resins are exempt. Firms selling such windows and doors would not be required to maintain 

376 records showing that the products qualify for an exemption, which reduces the recordkeeping costs for 

377 these firms. 

378 

379 13. Continuing existing certifications. EPA could have prohibited the sale of products certified under the 

380 CARB ATCM until they were recertified by a TPC accredited under the TSCA program, effective with 

381 the publication of the final rule. Instead, EPA’s proposed TPC rule allows TPCs approved by CARB to 

382 certify products under TSCA Title VI until one year after the publication of the final rule, as long as they 

383 remain approved by CARB for that period and comply with all aspects of the TSCA program other than 

384 the accreditation requirements. Under the proposed implementation rule, products currently certified by 

385 these TPCs would be considered certified for purposes of TSCA Title VI during that same period. 

386 Allowing the temporary continuation of existing certifications provision is less burdensome to certain 

387 laminated product producers. Specifically, one of the for mills than preventing any of them from 

388 selling their products until their TPC is accredited by a TSCA Title VI recognized accreditation body or 

389 bodies.

390 

391 14. Allowing representative emission levels to be used to demonstrate test method equivalence. The 

392 CARB ATCM requires a demonstration of equivalence between ASTM E-1333-10 and any other 

393 approved test method. This equivalence demonstration is based on ten comparison sample sets consisting 

394 of testing a minimum of five sample sets in each of at least two of three ranges of emissions. Like 

395 CARB, EPA is also allowing test methods other than ASTM E-1333-10 to be used if the results are 

396 shown to be equivalent to ASTM E-1333-10. However, EPA believes that it will be very difficult, if not 

397 impossible, to find products with emissions in the intermediate range (0.07 to less than 0.15 ppm) and the 

398 upper range (0.15 to 0.25 ppm), because the levels in the intermediate range exceed the CARB Phase 2 

399 standards for some products, and the levels in the upper range exceed the CARB Phase 2 standards for all 

400 products. Instead, EPA is proposing that equivalence be demonstrated in a range of formaldehyde 

401 concentrations that is representative of the emissions of the products that the TPC certifies. This will 

402 reduce the burden of showing test method equivalence, as it will not require testing samples at emissions 

403 levels that may not be commercially available.

404 

405 EPA also considered and rejected various alternatives to the rule that could also affect the 

406 economic impacts of the rule on small entities. For the reasons described below, these alternatives are not 

407 consistent with the statutory objectives of the rule and are not included in the proposed rule.

408 

409 1. Exempting additional products from the definition of hardwood plywood. EPA is proposing to exempt 

410 laminated products in which a wood veneer is attached to a compliant and certified platform using a NAF 
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411 resin from the definition of hardwood plywood. EPA considered other alternatives to excluding some or 

412 all laminated products from the definition of hardwood plywood. One alternative options would have 

413 excluded all laminated products from the definition of hardwood plywood, and the second would 

414 haveoption in EPA’s Economic Analysis excluded all laminated products other than architectural panels 

415 and custom plywood from the definition of hardwood plywood. Both Other alternatives in the 

416 Economic Analysis excluded all laminated products from the definition of hardwood plywood (along with 

417 various combinations of other potential rule provisions). All of these alternative options would apply 

418 regardless of the types of resins used in making the laminated products exempted from the definition of 

419 hardwood plywood. 

420 

421 Because eligibility for the exemptions for laminated products in the alternative options was not 

422 based on the type of resins used to attach a wood veneer to a platform, currently available information 

423 indicates that these options would have allowed laminated products that exceed the formaldehyde 

424 emission standards to be exempted from the definition of hardwood plywood. Therefore, on the basis of 

425 information currently available to the Agency, EPA has concluded that such alternative options are not 

426 consistent with TSCA Title VI’s statutory mandate that EPA promulgate regulations in a manner that 

427 ensures compliance with the emission standards in TSCA section 601(b)(2). 

428 

429 2. Providing additional de minimis exceptions. EPA has decided not to propose an exception from any of 

430 the regulatory requirements for products containing small amounts of composite wood products, other 

431 than implementing the statutory exceptions for certain windows and doors. EPA does not have the 

432 authority to promulgate a de minimis exception to the statutory requirements (e.g., emissions standards, 

433 or quarterly testing); rather EPA has the authority to promulgate a de minimis exception for the other 

434 regulatory provisions (e.g., record keeping, chain-of-custody, quality control testing, and labeling). EPA 

435 does not know of any information that suggests that products with a de minimis amount of composite 

436 wood products would necessarily be made from panels that meet the statutory emissions standards, as 

437 required by the statute. Thus, EPA believes it is necessary to make these products subject to the already 

438 reduced regulatory requirements. EPA has concluded that, on the basis of information currently available 

439 to the Agency, excepting such products would not be consistent with TSCA Title VI’s statutory mandate 

440 that EPA promulgate regulations in a manner that ensures compliance with the emission standards in 

441 TSCA section 601(b)(2). 

442 

443 3. Not requiring retention of tested lots. EPA is proposing to require that panel producers retain lots of 

444 composite wood products from which quality control or quarterly samples have been selected until the 

445 samples have been tested and the results received. Without this requirement, panel producers could 

446 inadvertently sell products exceeding the emission standards in TSCA section 601(b)(2). Furthermore, 

447 EPA believes that the proposed approach may be less burdensome overall and offer better protection to 

448 importers, distributors, wholesalers, retailers, and consumers than an approach relying on after-the-fact 

449 enforcement actions and customer notifications. 

450