
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Rules and Regulations]
[Pages 89674-89743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27987]



[[Page 89673]]

Vol. 81

Monday,

No. 238

December 12, 2016

Part III





Environmental Protection Agency





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40 CFR Part 770





Formaldehyde Emission Standards for Composite Wood Products; Final Rule

  Federal Register / Vol. 81 , No. 238 / Monday, December 12, 2016 / 
Rules and Regulations  

[[Page 89674]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 770

[EPA-HQ-OPPT-2016-0461; FRL-9949-90]
RIN 2070-AJ44


Formaldehyde Emission Standards for Composite Wood Products

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is issuing a final rule to implement the Formaldehyde 
Standards for Composite Wood Products Act, which added Title VI to the 
Toxic Substances Control Act (TSCA). The purpose of TSCA Title VI is to 
reduce formaldehyde emissions from composite wood products, which will 
reduce exposures to formaldehyde and result in benefits from avoided 
adverse health effects. This final rule includes formaldehyde emission 
standards applicable to hardwood plywood, medium-density fiberboard, 
and particleboard, and finished goods containing these products, that 
are sold, supplied, offered for sale, or manufactured (including 
imported) in the United States. This final rule includes provisions 
relating to, among other things, laminated products, products made with 
no-added formaldehyde resins or ultra low-emitting formaldehyde resins, 
testing requirements, product labeling, chain of custody documentation 
and other recordkeeping requirements, enforcement, import 
certification, and product inventory sell-through provisions, including 
a product stockpiling prohibition. This final rule also establishes a 
third-party certification program for hardwood plywood, medium-density 
fiberboard, and particleboard and includes procedures for the 
accreditation of third-party certifiers and general requirements for 
accreditation bodies and third-party certifiers.

DATES: This final rule is effective February 10, 2017. The 
incorporation by reference of certain publications listed in the 
regulations is approved by the Director of the Federal Register as of 
February 10, 2017.

ADDRESSES: The dockets for this action, identified by docket 
identification (ID) numbers EPA-HQ-OPPT-2011-0380, EPA-HQ-OPPT-2012-
0018, and EPA-HQ-OPPT-2016-0461 are available at http://www.regulations.gov or at the Office of Pollution Prevention and Toxics 
Docket (OPPT Docket), Environmental Protection Agency Docket Center 
(EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301 
Constitution Ave. NW., Washington, DC. The Public Reading Room is open 
from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal 
holidays. The telephone number for the Public Reading Room is (202) 
566-1744, and the telephone number for the OPPT Docket is (202) 566-
0280. Please review the visitor instructions and additional information 
about the docket available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: 
    For technical information contact: Erik Winchester, National 
Program Chemicals Division, Office of Pollution Prevention and Toxics, 
Environmental Protection Agency, 1200 Pennsylvania Ave. NW., 
Washington, DC 20460-0001; telephone number: (202) 564-6450; email 
address: winchester.erik@epa.gov.
    For general information contact: The TSCA-Hotline, ABVI-Goodwill, 
422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 
554-1404; email address: TSCA-Hotline@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Executive Summary

A. Does this action apply to me?

    You may be potentially affected by this action if you manufacture 
(including import), sell, supply, or offer for sale hardwood plywood, 
medium-density fiberboard, particleboard, and/or products containing 
these composite wood materials in the United States. The following list 
of North American Industrial Classification System (NAICS) codes is not 
intended to be exhaustive, but rather provides a guide to help readers 
determine whether this document applies to them. Potentially affected 
entities may include:
     Veneer, plywood, and engineered wood product manufacturing 
(NAICS code 3212).
     Manufactured home (mobile home) manufacturing (NAICS code 
321991).
     Prefabricated wood building manufacturing (NAICS code 
321992).
     Furniture and related product manufacturing (NAICS code 
337).
     Furniture merchant wholesalers (NAICS code 42321).
     Lumber, plywood, millwork, and wood panel merchant 
wholesalers (NAICS code 42331).
     Other construction material merchant wholesalers (NAICS 
code 423390), e.g., merchant wholesale distributors of manufactured 
homes (i.e., mobile homes) and/or prefabricated buildings.
     Furniture stores (NAICS code 4421).
     Building material and supplies dealers (NAICS code 4441).
     Manufactured (mobile) home dealers (NAICS code 45393).
     Motor home manufacturing (NAICS code 336213).
     Travel trailer and camper manufacturing (NAICS code 
336214).
     Recreational vehicle (RV) dealers (NAICS code 441210).
     Recreational vehicle merchant wholesalers (NAICS code 
423110).
     Engineering services (NAICS code 541330).
     Testing laboratories (NAICS code 541380).
     Administrative management and general management 
consulting services (NAICS code 541611).
     All other professional, scientific, and technical services 
(NAICS code 541990).
     All other support services (NAICS code 561990).
     Business associations (NAICS code 813910).
     Professional organizations (NAICS code 813920).
    If you have any questions regarding the applicability of this 
action, please consult the technical person listed under FOR FURTHER 
INFORMATION CONTACT.

B. What is the Agency's authority for taking this action?

    This final rule is being issued under the authority of section 601 
of TSCA, 15 U.S.C. 2697. EPA has also been mindful of environmental, 
economic, and social impacts consistent with section 2(c) of TSCA, 15 
U.S.C. 2601.

C. What action is the agency taking?

    EPA is issuing a final rule that implements TSCA Title VI. The 
final rule includes provisions on labeling; chain of custody 
requirements; sell-through provisions; ultra low-emitting formaldehyde 
resins (ULEF); no-added formaldehyde-based resins (NAF); finished 
goods; third-party testing and certification; auditing and reporting of 
third-party certifiers (TPCs); recordkeeping; enforcement; laminated 
products; and exceptions from regulatory requirements for products and 
components containing de minimis amounts of composite wood products. 
The final rule incorporates the emission standards established by TSCA 
Title VI for hardwood plywood, medium-density fiberboard (MDF) and 
particleboard, and products containing these composite wood materials, 
that are sold, supplied, offered for sale, or manufactured (defined by 
statute to include import) in the United States.
    The emission standards established by TSCA Title VI are not altered 
in this

[[Page 89675]]

final rule. The requirements in this final rule are consistent, to the 
extent EPA deemed appropriate and practical considering TSCA Title VI, 
with the requirements currently in effect in California under the 
California Air Resources Board's (CARB) Air Toxics Control Measure to 
Reduce Formaldehyde Emissions from Composite Wood Products (ATCM) (Ref. 
1).
    Under this final rule, the definition of hardwood plywood exempts 
laminated products made by attaching a wood or woody grass veneer to a 
compliant core or platform with a phenol-formaldehyde resin or a resin 
formulated with no added formaldehyde as part of the resin cross-
linking structure. To be eligible for the exemption, laminated product 
producers must maintain records demonstrating eligibility for the 
exemption.
    This final rule establishes the manufactured-by date for composite 
wood products at December 12, 2017. After this date, hardwood plywood 
made with either a combination core or a veneer core, particleboard, 
and MDF must be manufactured (including imported) in compliance with 
the provisions of this final rule. This final rule establishes the 
manufactured-by date for laminated products at December 12, 2023. 
Before that date, laminated product producers must use compliant 
composite wood product platforms and comply with the recordkeeping and 
labeling requirements for fabricators. After that date, laminated 
products that are exempt from the definition of hardwood plywood must 
also keep, as a condition of the exemption, records demonstrating 
eligibility for the exemption. Other laminated products will have to be 
made in compliance with the testing and TPC certification requirements 
for hardwood plywood.
    Table 1 is a summary of the regulatory requirements by regulated 
entity. This is not meant to be an exhaustive list of requirements, nor 
is it intended to replace the provisions of the regulatory text. For 
specific information on any of these requirements, interested persons 
should consult the referenced regulatory provisions. Entities who fit 
into more than one category must comply with the requirements for all 
applicable categories. For example, an importer of composite wood 
product panels who also fabricates finished goods must comply with the 
requirements for importers and the requirements for fabricators.

                     Table 1--Summary of Provisions
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                Requirement                        Compliance date
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                    Composite Wood Product Producers
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Products must comply with emission
 standards:
    Hardwood plywood (made with a veneer     December 12, 2017.
     core or a composite core) = 0.05 ppm.
    Particleboard = 0.09 ppm
    MDF = 0.11 ppm
    Thin MDF = 0.13 ppm
    (40 CFR 770.10)
Products must be certified by an EPA TSCA    December 12, 2017.
 Title VI TPC unless they are eligible for
 a limited exemption for products made with
 NAF-based or ULEF resins.
    (40 CFR 770.15, 770. 17, 770.18)
Products must undergo quarterly testing and  December 12, 2017.
 routine quality control testing using
 specified methods.
    (40 CFR 770.20)
Panels must be labeled with the producer's   December 12, 2017.
 name (or other identification), lot
 number, TPC number, and a statement of
 compliance with TSCA Title VI.
    (40 CFR 770.45)
Records, including testing, production,      December 12, 2017.
 purchaser, transporter, and non-complying
 lot information, must be kept for 3 years.
Records demonstrating initial eligibility
 for reduced testing or a limited third-
 party certification exemption for products
 made with NAF-based or ULEF resins must be
 kept for as long as exemption eligibility
 is claimed.
    (40 CFR 770.40)
------------------------------------------------------------------------
 Producers of Laminated Products That Are Not Exempt From the Definition
                           of Hardwood Plywood
------------------------------------------------------------------------
Bills of lading, invoices, or comparable     December 12, 2017.
 documents must be obtained and maintained
 for 3 years.
    (40 CFR 770.30, 770.40)
Finished goods must be labeled with the      December 12, 2017.
 producer's name, the date the good was
 produced, and a statement of TSCA Title VI
 compliance.
    (40 CFR 770.45)
Laminated products must comply with the      December 12, 2023.
 hardwood plywood emission standard of 0.05
 ppm, and the testing, certification, and
 recordkeeping requirements for composite
 wood products.
    (40 CFR 770.10, 770.15, 770.20, 770.40)
------------------------------------------------------------------------
 Producers of Laminated Products That Are Exempt From the Definition of
                            Hardwood Plywood
------------------------------------------------------------------------
Records demonstrating purchase/use of        December 12, 2023.
 compliant platforms and NAF or PF resins
 and bills of lading, invoices, or
 comparable documents must be obtained and
 maintained for 3 years.
    (40 CFR 770.40)
Bills of lading, invoices, or comparable     December 12, 2017.
 documents must be obtained and maintained
 for 3 years.
    (40 CFR 770.30, 770.40)
Finished goods must be labeled with the      December 12, 2017.
 producer's name, the date the good was
 produced, and a statement of TSCA Title VI
 compliance.
    (40 CFR 770.45)
------------------------------------------------------------------------
          Fabricators (Other Than Laminated Product Producers)
------------------------------------------------------------------------
Bills of lading, invoices, or comparable     December 12, 2017
 documents must be obtained and maintained
 for 3 years..

[[Page 89676]]

 
    (40 CFR 770.30, 770.40)
Finished goods must be labeled with the      December 12, 2017.
 producer's name, the date the good was
 produced, and a statement of TSCA Title VI
 compliance.
    (40 CFR 770.45)
------------------------------------------------------------------------
                                Importers
------------------------------------------------------------------------
Bills of lading, invoices, or comparable     December 12, 2017.
 documents bearing a statement of TSCA
 Title VI compliance must be obtained and
 maintained for 3 years. In addition, must
 have the ability to make records
 identifying the panel producer, the date
 the products were produced, the supplier
 (if different) and the date the products
 were purchased available to EPA within 30
 calendar days of request.
    (40 CFR 770.30, 770.40)
Import certification under TSCA section 13   December 12, 2018.
 is required.
    (40 CFR 770.30, 770.40)
------------------------------------------------------------------------
                       Distributors and Retailers
------------------------------------------------------------------------
Bills of lading, invoices, or comparable     December 12, 2017
 documents must be obtained and maintained
 for 3 years..
    (40 CFR 770.30, 770.40)
------------------------------------------------------------------------

    This final rule also establishes an EPA TSCA Title VI Third-Party 
Certification Program to ensure that composite wood panel producers 
comply with the statutory formaldehyde emission limits. Under the EPA 
TSCA Title VI Third-Party Certification Program, TPCs will regularly 
inspect composite wood panel producers, and conduct, oversee, and 
verify formaldehyde emissions tests. TPCs who wish to participate in 
the EPA TSCA Title VI Third-Party Certification Program must apply to 
EPA for approval and receive recognition from EPA before certifying 
products under this rule. The requirements for TPCs to receive EPA 
recognition include being accredited by EPA-recognized accreditation 
bodies (ABs) to specific voluntary consensus standards and to the 
regulatory requirements in this rule. In addition, TPCs approved by 
CARB are eligible for EPA TSCA Title VI recognition through 
reciprocity, provided that they meet all applicable requirements. 
Existing CARB TPCs and TPCs approved by CARB during the two-year 
transition period that are recognized by EPA may certify composite wood 
products under TSCA Title VI until December 12, 2018. After that time, 
EPA will only recognize TPCs, including CARB-approved TPCs, who are 
accredited by EPA-recognized ABs.
    Under this final rule, composite wood products must be certified by 
an EPA TSCA Title VI TPC. To obtain and maintain certification, panel 
producers must establish quality assurance/quality control programs, 
conduct regular quality control testing of product emissions, and have 
an EPA-recognized TPC conduct or oversee quarterly formaldehyde 
emissions testing. Composite wood products made with NAF-based or ULEF 
resins may be eligible for reduced testing and/or a limited exemption 
from TPC oversight after an initial testing period of three months, for 
NAF, or six months, for ULEF.
    This action includes labeling requirements for composite wood 
products and finished goods as well as ``chain of custody'' and 
recordkeeping requirements with a three year record retention period. 
Products that contain de minimis amounts of composite wood products, 
defined as products containing 144 square inches or less of regulated 
composite wood products, are exempt from the labeling requirements, but 
not the recordkeeping requirements or other provisions. TSCA section 13 
import certification for composite wood products that are articles is 
also required.
    Notable changes from EPA's proposed regulations include the 
clarification of certain terms under TSCA Title VI to exclude 
renovation and construction activities, applicability of the hardwood 
plywood emission standard limited to hardwood plywood made with either 
a composite or a veneer core, an expanded exemption for laminated 
products to products laminated with phenol-formaldehyde resins in 
addition to those laminated with resins formulated with no added 
formaldehyde as part of the resin cross-linking structure, a 
manufactured-by date for non-exempt laminated products that is seven 
years after publication of this final rule, the addition of a petition 
process through which any person can petition the Agency to expand the 
exemption for laminated products from the definition of the term 
``hardwood plywood'', elimination of the requirement to hold lots 
selected for testing until test results are received, specific 
notification requirements for non-complying lots, reduced recordkeeping 
for non-laminating fabricators, and allowing two years after date of 
final publication of the rule, instead of one year, for importers to 
certify that imports are in compliance with TSCA Title VI pursuant to 
TSCA section 13.

D. Why is the Agency taking this action?

    EPA is promulgating this final rule to reduce formaldehyde 
emissions from composite wood products, and thereby reduce exposures to 
formaldehyde and avoid adverse health effects. TSCA Title VI directs 
EPA to promulgate regulations that include provisions on labeling; 
chain of custody requirements; sell-through provisions; ULEF and NAF 
resins; finished goods; third-party testing and certification; auditing 
and reporting of TPCs; recordkeeping; enforcement; laminated products; 
and exceptions from regulatory requirements for products and components 
containing de minimis amounts of composite wood products.

E. What are the estimated impacts of this action?

    EPA's analysis of the potential costs, benefits, and impacts 
associated with this rulemaking is summarized in Table 2, and 
additional detail is provided in Unit VI.A. The quantified costs of the 
rule may exceed the quantified benefits under certain conditions. There 
are additional unquantified benefits due to other avoided health 
effects. There is not sufficient information at this time on the 
relationship between

[[Page 89677]]

formaldehyde exposure and myeloid leukemia, respiratory related 
effects, or reduced fertility to include a valuation estimate in the 
overall benefits analysis. Although uncertainty remains regarding how 
best to quantify the effect of formaldehyde exposure on these health 
endpoints, reducing these effects is an important non-monetized impact 
that contributes to the overall benefits of the rule.
    After assessing both the costs and the benefits of the rule, 
including the unquantified benefits, EPA has made a reasoned 
determination that the benefits of the rule justify its costs.

                                 Table 2--Summary of Costs and Benefits of Rule
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                             Category                                               Description
----------------------------------------------------------------------------------------------------------------
Benefits.........................................................  This rule will reduce exposures to
                                                                    formaldehyde, resulting in benefits from
                                                                    avoided adverse health effects. For the
                                                                    subset of health effects where the results
                                                                    were quantified, the estimated annualized
                                                                    benefits (due to avoided incidence of eye
                                                                    irritation and nasopharyngeal cancer) are
                                                                    $64 million to $186 million per year using a
                                                                    3% discount rate, and $26 million to $79
                                                                    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 rule are
                                                                    estimated at $38 million to $83 million per
                                                                    year using a 3% discount rate, and $43
                                                                    million to $78 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 accredit TPCs,
                                                                    certify panel producers, or 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 approximately 922,000
                                                                    small businesses: almost 910,000 have costs
                                                                    impacts less than 1% of revenues, over 6,000
                                                                    have impacts between 1% and 3%, and over
                                                                    5,000 have impacts greater than 3% of
                                                                    revenues. Approximately 99% of firms with
                                                                    impacts over 1% have annualized costs of
                                                                    less than $250 per year.
Environmental Justice and Protection of Children.................  This rule increases the level of
                                                                    environmental protection for all affected
                                                                    populations without having any
                                                                    disproportionately high and adverse human
                                                                    health or environmental effects on any
                                                                    population, including any minority or low-
                                                                    income population or children.
----------------------------------------------------------------------------------------------------------------

F. Children's Environmental Health

    Consistent with the Agency's Policy on Evaluating Health Risks to 
Children (Ref. 2), EPA has evaluated the environmental health effects 
of formaldehyde emissions from composite wood products on children. The 
results of this evaluation are described in Chapter 7.7 of the economic 
analysis (Ref. 3). The economic analysis only monetizes the potential 
benefits associated with avoided cases of nasopharyngeal cancer and eye 
irritation, some of which clearly would accrue to children. However, 
some studies have reported associations between elevated levels of 
formaldehyde and other health endpoints, such as respiratory symptoms. 
The World Health Organization (WHO) (Ref. 4) and the Agency for Toxic 
Substances and Disease Registry (ATSDR) (Ref. 5) have raised questions 
about the potential role of formaldehyde in increasing risk of asthma 
or allergic conditions, particularly among children. In addition to a 
study observing an association with increased chronic respiratory 
symptoms and decreased pulmonary function among children (Ref. 6), 96% 
of whom lived in households with formaldehyde levels below 0.075 
milligrams per cubic meter (mg/m\3\), more recent studies since the WHO 
and ATSDR reviews observed increased risks of allergic conditions among 
adults and children, and increased severity of asthma symptoms among 
children with ``wheeze'' in the previous year (Refs. 7-10). To the 
extent that the reductions reported in this rule would lead to reduced 
respiratory symptoms in children, the monetized estimate for cancer and 
eye irritation alone is likely an underestimate. The analysis shows 
that children aged zero through one represent three percent of the 
individuals affected by the rule and are estimated to accrue 2% to 10% 
of the rule's total quantified benefits. Children aged two through 
fifteen represent twenty percent of the individuals affected by the 
rule and are estimated to accrue 15% to 21% of the rule's total 
quantified benefits. Exposure to formaldehyde may cause 
disproportionate effects on children compared to adults. The emission 
standards and other requirements of this rule will reduce emissions of 
formaldehyde from composite wood products for individuals of all ages 
that are exposed and children may accrue higher benefits from the 
exposure reductions compared to adults.

II. Background

A. Formaldehyde Sources and Health Effects

    Formaldehyde is a colorless, flammable gas at room temperature and 
has a strong odor. It is found in certain resins used in the 
manufacture of composite wood products (i.e., hardwood plywood, 
particleboard and MDF). It is also found in certain household products 
such as glues, permanent press fabrics, carpets, antiseptics, 
medicines, cosmetics, dishwashing liquids, fabric softeners, shoe care 
agents, lacquers, plastics and paper product coatings. It is a by-
product of combustion and certain other natural processes. Examples of 
sources of formaldehyde gas inside homes include cigarette smoke, 
unvented, fuel-burning appliances (e.g., gas stoves, kerosene space 
heaters), and composite wood products made using formaldehyde-based 
resins (Ref. 5). In addition, formaldehyde is a by-product of human 
metabolism, and thus endogenous levels are present in the body.
    Formaldehyde is an irritant and the National Toxicology Program 
(NTP) and the International Agency for Research on Cancer (IARC) have 
classified it as a known human carcinogen based on sufficient evidence 
in humans that formaldehyde causes nasopharyngeal cancer and leukemia 
(Refs. 11-12), a classification supported by the National Research 
Council of the National Academy of Sciences (NRC) in their 2014 review 
of the NTP assessment (Ref. 13). Depending on concentration, 
formaldehyde can cause eye, nose, and throat irritation, even when 
exposure is of relatively short duration. In the indoor environment, 
sensory reactions and various symptoms as a result of mucous membrane 
irritation are

[[Page 89678]]

potential effects, including respiratory symptoms as previously 
discussed. Formaldehyde is also listed under section 112(b)(1) of the 
Clean Air Act as a hazardous air pollutant (Ref. 14).
    In 1991, EPA classified formaldehyde as a probable human 
carcinogen, ``based on limited evidence in humans, and sufficient 
evidence in animals,'' and derived an inhalation unit risk factor for 
assessing formaldehyde cancer risk. The risk factor and supporting 
documentation is included in EPA's Integrated Risk Information System 
(IRIS) database (http://www.epa.gov/iris/) (Ref. 15). The IRIS program 
in EPA's Office of Research and Development (ORD) completed a draft 
assessment of the potential cancer and non-cancer health effects that 
may result from chronic exposure to formaldehyde by inhalation (Ref. 
16). This draft IRIS assessment was peer reviewed by the NRC in 2011. 
The draft formaldehyde IRIS assessment is being revised in response to 
the NRC peer review and public comments, and the final assessment will 
be posted on the IRIS database. In the interim, this final rule 
estimates benefits using the 1991 IRIS inhalation unit risk value of 
1.3 x 10-\5\ per [micro]g/m\3\ (Ref. 15).
    In addition, EPA used concentration-response functions to estimate 
the impact of exposure to formaldehyde on eye irritation for use in the 
non-cancer benefits assessment to support this rule, as discussed in 
the proposal. The derivation of these concentration-response functions, 
uncertainties, and EPA's proposed approach for using the concentration-
response functions in the benefits assessment were externally peer 
reviewed (Ref. 17). While the economic analysis of cancer benefits is 
based on the unit risk, which is a reasonable upper bound on the 
central estimate of risk, the non-cancer benefits were evaluated using 
the estimated concentration-response functions which reflect the 
central effect estimates rather than upper bounds.

B. History of This Rulemaking

    1. The CARB ATCM. In 2007, CARB issued an ATCM to reduce 
formaldehyde emissions from hardwood plywood with a composite or veneer 
core, MDF, and particleboard, products referred to collectively as 
composite wood products. The CARB ATCM was approved on April 18, 2008, 
by the California Office of Administrative Law and the first emission 
standards took effect on January 1, 2009 (Ref. 1). Additional emission 
standards followed through 2012. The CARB ATCM requires manufacturers 
to meet formaldehyde emission standards for the regulated composite 
wood products that are sold, offered for sale, supplied, imported or 
manufactured for use in California. The CARB ATCM also requires that 
compliant composite wood products be used in finished goods sold, 
offered for sale, supplied, imported or manufactured for sale in 
California. The CARB ATCM does not apply to hardwood plywood and 
particleboard materials when installed in manufactured homes subject to 
regulations promulgated by the United States Department of Housing and 
Urban Development (HUD).
    On March 24, 2008, 25 organizations and approximately 5,000 
individuals petitioned EPA under section 21 of TSCA to use its 
authority under section 6 of TSCA to adopt the CARB ATCM nationally. On 
June 27, 2008, EPA denied the petitioners' request to immediately 
pursue a TSCA section 6 rulemaking, stating that the available 
information at the time was insufficient to support an evaluation of 
whether formaldehyde emitted from hardwood plywood, particleboard, and 
medium-density fiberboard presents or will present an unreasonable risk 
to human health (including cancer and non-cancer endpoints) under TSCA 
section 6 (Ref. 18). On December 3, 2008, EPA issued an Advance Notice 
of Proposed Rulemaking (ANPR) that announced EPA's intention to 
investigate whether and what regulatory or other action might be 
appropriate to protect against risks posed by formaldehyde emitted from 
the products covered by the CARB ATCM as well as other pressed wood 
products. (Ref. 19)
    2. The Formaldehyde Standards for Composite Wood Products Act. The 
Formaldehyde Standards for Composite Wood Products Act, or Title VI of 
TSCA, 15 U.S.C. 2697, was enacted on July 7, 2010 (Ref. 20). The 
statute establishes formaldehyde emission standards that are identical 
to the CARB ATCM Phase 2 standards for hardwood plywood with a 
composite or veneer core, MDF, and particleboard sold, supplied, 
offered for sale, or manufactured in the United States. Pursuant to 
TSCA section 3(7), the definition of the term ``manufacture'' includes 
import. The statute directs EPA to issue final implementing regulations 
by January 1, 2013. The Act specifically covers composite wood products 
used in manufactured housing and directs HUD to update its regulation 
to ensure that it reflects the emission standards in the Act. TSCA 
Title VI does not give EPA the authority to raise or lower the 
established emission standards, and EPA must generally promulgate the 
implementing regulations in a manner that ensures compliance with the 
standards. Congress directed EPA to consider a number of elements for 
inclusion in the implementing regulations, many of which are aspects of 
the CARB program.
    3. EPA's proposed rules. On June 10, 2013, EPA issued two Notices 
of Proposed Rulemaking (NPRMs) containing proposed requirements to 
implement TSCA Title VI. The first NPRM (the TPC proposal) included a 
proposed framework for a TSCA Title VI TPC Program (Ref. 21), while the 
second NPRM included the remainder of the proposed implementing 
regulations for TSCA Title VI (Ref. 22).
    The initial comment period on the TPC proposal was scheduled to end 
on August 9, 2013, but was extended twice, ultimately closing on 
September 25, 2013. Information pertaining specifically to the TPC 
proposal, including the comments received, can be found at http://www.regulations.gov under docket number EPA-HQ-OPPT-2011-0380.
    The initial comment period on the implementation proposal was 
scheduled to end on August 9, 2013, but was also extended twice, 
ultimately closing on October 9, 2013. The comment period was 
specifically reopened for additional comments on the laminated products 
issue from April 8, 2014 to May 26, 2014, including one extension. EPA 
also held a public meeting on laminated products on April 28, 2014. 
Information pertaining specifically to the implementation proposal, 
including the comments received during both comment periods, can be 
found at http://www.regulations.gov under docket number EPA-HQ-OPPT-
2012-0018.
    EPA is finalizing both proposed rules in a single final rule under 
RIN 2070-AJ44. Although this final rule document and supporting 
information will appear in docket EPA-HQ-OPPT-2016-0461, both dockets 
for the proposed rules (EPA-HQ-OPPT-2011-0380 and EPA-HQ-OPPT-2012-
0018) contain supporting information with respect to this rule and 
should be considered merged for the purpose of this final rule.

III. Provisions of This Final Rule

A. Scope and Applicability

    1. Composite wood product. The final rule defines the term 
``composite wood product'' as including only those products subject to 
a formaldehyde emission standard, i.e., hardwood plywood with a 
composite or veneer core, MDF, and particleboard. EPA has also 
clarified throughout the regulatory text whether particular provisions 
apply

[[Page 89679]]

to panels, component parts, or finished goods, or all three.
    2. Finished good. EPA's proposed rule included a definition of the 
term ``finished good'' that was virtually identical to the definition 
in TSCA Title VI. Although EPA did not receive any comments directly 
addressing the proposed definition, other comments on the scope and 
applicability of the regulation have caused EPA to clarify what is 
meant by the term ``finished good.'' Specifically, EPA has determined 
that Congressional intent with respect to the regulation of finished 
goods under TSCA Title VI was to regulate goods that move freely 
through commerce and that are produced through a manufacturing process 
at a manufacturing facility, not objects like buildings or other 
structures that are constructed on site and become a permanent addition 
to real property Thus, the production of manufactured housing or 
prefabricated buildings at a factory is covered by this final rule, 
while the construction of housing or other real property on site, or 
the assembly and placement of prefabricated buildings or manufactured 
housing at a site, is not. The NAICS, used by Federal statistical 
agencies to classify business establishments for data analysis 
purposes, recognizes the significant differences between these 
activities by including the production of manufactured housing or 
prefabricated buildings in the Manufacturing economic sector rather 
than the Construction economic sector. More specifically, the 
production of both manufactured housing and prefabricated buildings is 
included in the Wood Product Manufacturing subsector, along with the 
production of composite wood product panels. Therefore, to ensure that 
this distinction is clear, the definition of ``finished good'' 
incorporated into this final rule specifically excludes buildings and 
similar structures that are constructed on-site.
    3. Hardwood plywood. a. General definition. As proposed, EPA is 
incorporating the basic statutory definition of hardwood plywood and 
the statutory exclusions into the regulation with the addition of 
veneer core to the list of cores in the statutory definition. As TSCA 
section 601(b)(2)(A) establishes a formaldehyde emission standard for 
hardwood plywood with a veneer core, EPA is including the phrase 
``veneer core'' in the regulatory definition of hardwood plywood to 
avoid any potential confusion over whether hardwood plywood made with a 
veneer core is covered by the regulations. In addition, as discussed in 
the next section, the regulatory definition specifically includes 
laminated products, except for those laminated products made by 
attaching a wood or woody grass veneer with a phenol-formaldehyde resin 
or a resin formulated with no added formaldehyde as part of the resin 
cross-linking structure to a compliant core or platform. The Agency has 
also included a petition process through which any person can petition 
the Agency to expand the exemption for laminated products from the 
definition of the term ``hardwood plywood.''
    The statutory definition of hardwood plywood only includes products 
that are panels and that are intended for interior use. As part of this 
rulemaking, EPA convened a Small Business Advocacy Review (SBAR) Panel 
(Ref. 23). More information on the Panel process can be found in the 
preamble to the proposed rule (Ref. 22). Among the recommendations made 
by the SBAR Panel was a recommendation that EPA, to reduce uncertainty 
in the regulated community as to which products are covered, include 
definitions of the term ``panel'' and the phrase ``intended for 
interior use'' (Ref. 23). Accordingly, EPA is defining the term 
``panel'' as a thin (usually less than two inches thick), flat, usually 
rectangular piece of particleboard, medium density fiberboard or 
hardwood plywood. Embossing or imparting of an irregular surface on the 
composite wood products by the original panel producer during pressing 
does not remove the product from this definition. EPA has determined, 
based on the comments received, this definition is consistent with both 
the CARB ATCM and common industry usage. EPA has added the 
parenthetical indicating that panels are usually less than two inches 
thick to provide some additional guidance on panel thinness (Ref. 24). 
The definition of panel also includes a sentence added because EPA 
agrees with those commenters who stated that the purpose of the CARB 
ATCM and of TSCA Title VI is to regulate composite wood products as 
they come out of the press. Finally, EPA also added a sentence to 
clarify the term ``panel'' does not include items made for the purpose 
of research and development.
    EPA is also promulgating a definition of the phrase ``intended for 
interior use.'' Recognizing that the primary purpose of TSCA Title VI 
is to reduce formaldehyde emissions from composite wood products inside 
buildings and similar living areas in recreational vehicles, EPA's 
definition includes products intended for use or storage inside a 
building or recreational vehicle, or constructed in such a way that 
they are not suitable for long term use in a location exposed to the 
elements. EPA received very few comments on this definition, and is 
finalizing the definition as proposed. The purpose of this definition 
is to help explain coverage of miscellaneous finished goods, such as 
sporting goods, that are made of at least some hardwood plywood and 
that may be used indoors or outdoors. This definition does not exclude 
windows and exterior doors, including garage doors, which are clearly 
intended to be covered by TSCA Title VI. The statute contains specific 
exemptions for windows that contain less than five percent by volume of 
composite wood products, exterior doors and garage doors that contain 
less than three percent by volume of composite wood products, and 
exterior and garage doors that are made with NAF-based or ULEF resins.
    TSCA Title VI also directs EPA to determine whether the definition 
of hardwood plywood should exempt engineered veneer. Engineered veneer 
is a type of veneer that is created by dyeing and gluing together 
veneer leaves in a mold to produce a block. The block is then sliced 
into leaves of veneer with a designed appearance that is highly 
repeatable. EPA did not propose to exempt any engineered veneer because 
EPA did not have any information to support such an exemption. One 
commenter, the Hardwood Plywood and Veneer Association (HPVA), 
clarified that it did not consider the production of engineered veneer, 
or the resulting engineered veneer product, to be hardwood plywood 
(Ref. 25). HPVA noted that engineered veneer, once manufactured, could 
be used as a component in the production of hardwood plywood. EPA 
agrees that engineered veneer, by itself, is not hardwood plywood 
because it is not an assembly of veneer plies joined by adhesive to a 
core. EPA interprets TSCA Title VI and its implementing regulations to 
apply to hardwood plywood that incorporates engineered veneer, but not 
to the production of engineered veneer itself.
    b. Laminated products. As discussed in more detail in this Unit, 
the definition of ``hardwood plywood'' exempts laminated products made 
by attaching a wood or woody grass veneer to a compliant core or 
platform with either a phenol-formaldehyde resin or a resin formulated 
with no added formaldehyde as part of the resin cross-linking 
structure. Additionally, the Agency has included a petition process 
through which any person can petition

[[Page 89680]]

the Agency to expand the exemption for laminated products from the 
definition of the term ``hardwood plywood''. Further, this final rule 
establishes the manufactured-by date for laminated products as December 
12, 2023. After that date, producers of laminated products that are 
exempt from the definition of ``hardwood plywood'' must maintain 
records that demonstrate eligibility for the exemption in order to 
claim the exemption. Also after that date, other laminated products 
will have to be produced in compliance with the testing and 
certification requirements applicable to hardwood plywood. EPA is also 
promulgating a definition of laminated product that limits 
applicability of the term to products made with composite wood product 
platforms. As is the case with any component part, composite wood 
products used to make laminated products must be either certified 
pursuant to this regulation or compliant with the provisions for 
composite wood products made with NAF-based or ULEF resins. Also, as 
discussed in this Unit, the term ``laminated product'' is further 
limited to those products that are produced by fabricators of the 
component parts or finished goods in which the laminated products are 
incorporated. Regardless of whether laminated product producers are 
producing exempt or non-exempt laminated products, they are fabricators 
and must also comply with the fabricator recordkeeping requirements as 
of the manufactured-by date for composite wood products, which is 
December 12, 2017.
    i. Background. TSCA Title VI defines laminated product as a product 
made by affixing a wood veneer to a particleboard, MDF, or veneer-core 
platform. The statutory definition further provides that laminated 
products are component parts used in the construction or assembly of a 
finished good, and that a laminated product is produced by the 
manufacturer or fabricator of the finished good in which the product is 
incorporated. Congress granted EPA the authority to promulgate a 
modified definition of laminated product through rulemaking. The 
statute also directs EPA to conduct a rulemaking process pursuant to 
TSCA section 601(d) that uses all available and relevant information 
from State authorities, industry, and other available sources of such 
information, and analyzes that information to determine, at the 
discretion of the Administrator, whether the definition of the term 
``hardwood plywood'' should exempt any laminated product. Section 
601(d) of TSCA states, among other things, that EPA must promulgate 
implementing regulations in a manner that ensures compliance with the 
statutory emission standards.
    The CARB ATCM defines laminated product as a finished good or 
component part of a finished good made by a fabricator in which a 
laminate or laminates are affixed to a platform. Under this definition, 
if the platform consists of a composite wood product, the platform must 
comply with the applicable emission standards. The CARB ATCM defines 
fabricator as any person who uses composite wood products to make 
finished goods, including producers of laminated products. Laminate is 
defined under the CARB ATCM as a veneer or other material affixed as a 
decorative surface to a platform. Under the CARB ATCM, fabricators or 
laminated product manufacturers have different requirements compared 
with requirements for manufacturers of composite wood products. In 
particular, fabricators do not need to conduct formaldehyde emissions 
testing or comply with third-party certification requirements; instead, 
fabricators need to ensure that they are using compliant composite wood 
products and they have recordkeeping and labeling obligations.
    CARB is currently considering changes to its ATCM. At a workshop in 
March 2014, CARB presented a discussion draft of a proposal to set a 
formaldehyde emission standard of 0.13 parts per million (ppm) for 
unfinished laminated products made with wood veneers, but not require 
testing or certification. If the platform is a composite wood product, 
the platform would have to be certified (Ref. 26).
    Given the importance of the laminated products issue to so many 
commenters, the potential impacts on the large number of laminated 
product producers, and the fact that CARB was presenting new ideas 
regarding laminated products, EPA decided to reopen the comment period 
on this issue and specifically solicit public comment on the approach 
in the March 2014 CARB proposal, as well as suggestions in the comments 
received during EPA's 2013 public comment period on the TSCA Title VI 
formaldehyde regulations.
    ii. Final rule provisions. As directed by Congress, EPA has 
evaluated available and relevant information from State authorities, 
industry, and other sources to determine whether the definition of the 
term ``hardwood plywood'' should exempt engineered veneer or any 
laminated product. For the reasons described in this Unit, EPA has 
decided to exempt those laminated products made by attaching a wood or 
woody grass veneer to a core or platform consisting of compliant MDF, 
compliant particleboard, or compliant veneer, with either a phenol-
formaldehyde resin or a resin formulated with no added formaldehyde as 
part of the resin cross-linking structure. EPA considers these 
provisions for laminated products made with phenol-formaldehyde resins 
and laminated products made with resins formulated with no added 
formaldehyde as part of the resin cross-linking structure to be 
mutually complementary but independent provisions, such that either one 
could be implemented even in the absence of the other. Additionally, 
the Agency has included a petition process through which any person can 
petition the Agency to expand the exemption for laminated products from 
the definition of the term ``hardwood plywood''.
    1. Information reviewed by EPA. EPA reviewed a wide variety of 
available information on resins, the chemistry of formaldehyde-based 
resins, and formaldehyde emissions from composite wood products. Urea-
formaldehyde resins have been around since the 1920s and they have been 
the most common resins used in the manufacture of hardwood plywood, 
particleboard, and MDF. Urea-formaldehyde resins have several 
advantages, including low cost, a rapid cure rate, and a light color. 
These resins are generally used for interior applications because they 
are not water-resistant. As described by CARB, ``[t]he reactions that 
occur during UF resin synthesis are reversible. During the forward 
reaction, water is eliminated. However, if moisture interacts with the 
UF resin, depolymerization may occur, leading to hydrolysis or the 
release of formaldehyde'' (Ref. 27). This characteristic of 
reversibility, in addition to the presence of small amounts of free 
formaldehyde in the resins, leads to continuing formaldehyde emissions 
from composite wood products made with urea-formaldehyde resins, 
sometimes for years, although the emission potential decreases with 
increasing age (Ref. 28).
    The available emissions data from composite wood products made with 
urea-formaldehyde resins bears this out--composite wood products made 
with urea-formaldehyde resins can have high formaldehyde emissions. For 
example, in a study of the formaldehyde emission rates of products 
likely to be found or used in California homes, the results of 19 
samples of unfinished wood products made with urea-formaldehyde resins 
ranged from 8.6 to

[[Page 89681]]

1580 [micro]g/m\2\/h (Ref. 29). Using the conversion used by CARB (Ref. 
30), the highest emissions translate to 1.09 ppm. Although the median 
was 164 [micro]g/m\2\/h, which translates to 0.11 ppm, the study 
results demonstrate that wood products made with urea-formaldehyde 
resins are as likely to have high formaldehyde emissions as not (Refs. 
28-29). Further, the results of a 2003 survey of wood product 
manufacturers conducted by CARB in support of their rulemaking 
indicated that the highest formaldehyde-emitting composite wood 
products were hardwood plywood, particleboard, and medium-density 
fiberboard for interior applications (Ref. 27). CARB further determined 
that the majority of these products are made with urea-formaldehyde 
resins, which emit more formaldehyde than products made with other 
resins (Ref. 27). Finally, the results of CARB's testing of 
particleboard and MDF laminated using urea-formaldehyde resins confirms 
that products laminated with urea-formaldehyde resins can have high 
formaldehyde emissions (Ref. 31). Although the median of the samples 
tested in either a finished or an unfinished state was 0.09 ppm (Ref. 
30), many samples were well above that, two of them were over 1.25 ppm.
    As mentioned by commenters, advancements in resin technology, which 
have accelerated due to the CARB ATCM, have made it possible to make 
composite wood products that have very low formaldehyde emissions, even 
if urea-formaldehyde resins are used (Refs. 32-33). CARB described 
strategies for reducing formaldehyde emissions from composite wood 
products made with urea formaldehyde resins (Ref. 27). These include 
modifications to the resins themselves, such as reductions in the mole 
ratio of formaldehyde to urea or the addition of scavengers such as 
hexamine or melamine, and changes in the production process, such as 
reduced press times or temperatures. Some commenters noted the 
difficulty in meeting the CARB ATCM emission standard for hardwood 
plywood, even with advanced urea formaldehyde resin technology (Refs. 
34-35).
    EPA determined that there are several other formaldehyde-based 
resins that are used in the production of composite wood products. 
Phenol-formaldehyde resins, also developed in the early 20th century, 
have ``outstanding durability and high polymer strength due to good 
adhesion to wood surfaces.'' (Ref. 27). Composite wood products made 
with phenol formaldehyde resins are typically used for exterior 
applications because of their high water resistance (Ref. 27). However, 
phenol formaldehyde resins are dark in color, making them unsuitable 
for some decorative applications, and they require longer press times 
and higher press temperatures (Ref. 27). In contrast to the synthesis 
of urea-formaldehyde resins, the reactions involved in phenol 
formaldehyde resin synthesis are more stable, resulting in composite 
wood products with comparatively low formaldehyde emission potentials 
(Ref. 28). The data reviewed by EPA support this conclusion. In 
particular, the California homes study (Ref. 29), the Riedlinger study 
(Ref. 36), discussed in Unit III.F. of the preamble to the proposed 
Implementation Rule (Ref. 22), and test data from a hardboard 
manufacturer (Ref. 37) provide evidence that products made with phenol-
formaldehyde resins have lower formaldehyde emissions than products 
made with urea-formaldehyde resins. In the California homes study, the 
results from four samples of unfinished wood products made with phenol-
formaldehyde resins ranged from 4.1 to 9.2 [micro]g/m\2\/h or, using 
CARB's conversion, 0.0028 ppm to 0.0063 ppm. These results are markedly 
lower than the results from the urea-formaldehyde products in the same 
study (Ref. 29). As discussed in the proposed rule, the Riedlinger 
study was designed to evaluate the effects of higher temperatures and 
humidities on formaldehyde emissions from wood products made with 
different resin systems (Ref. 36). The study involved testing 
particleboard panels constructed in the laboratory using resin recipes 
that, according to the study designers, are a close approximation to 
recipes used in the particleboard industry. The particleboard panels 
constructed from urea-formaldehyde resins were the highest-emitting 
panels, at 0.063 ppm after 7 days of conditioning when tested at 
standard temperature and humidity for the ASTM D-6007 method. The 
formaldehyde emission rate for the melamine-urea-formaldehyde panels 
with the same conditions was a close second at 0.057 ppm. The 
formaldehyde emission rate for the panels made with phenol-formaldehyde 
resins was much lower, at 0.011 ppm. Finally, a hardboard manufacturer 
submitted test data on hardboard produced with a phenol-formaldehyde 
resin (Ref. 37). As described by the submitter, the test data show 
results well below ``any emission threshold defined in the 
legislation.''
    Melamine-formaldehyde resins are also available. Being resistant to 
moist conditions, they are most commonly used for exterior and semi-
exterior applications, but they are also used for decorative laminates, 
paper treating, and paper coating (Ref. 27). The synthesis of melamine-
formaldehyde resins is similar to that of urea-formaldehyde resins, 
except that melamine is a stronger nucleophile than urea, resulting in 
a faster and more complete reaction between melamine and formaldehyde 
than between urea and formaldehyde (Ref. 27). Melamine-formaldehyde 
resins are lighter in color than phenol-formaldehyde resins, but the 
cost of melamine makes these resins relatively expensive. The cost of 
melamine contributed to the development of melamine-urea-formaldehyde 
resins, which are also water resistant at a lower cost. However, these 
resins may not provide the low formaldehyde emission potential that 
would be expected from a melamine-formaldehyde resin without urea (Ref. 
38), a concern that is supported by the limited results of the 
Riedlinger study (Ref. 36).
    There are limited formaldehyde emissions data available on 
melamine-formaldehyde resins without added urea. CARB described a study 
of formaldehyde emissions from MDF made with melamine-formaldehyde 
resins and a study of particleboard made with two different melamine-
formaldehyde resin formulations (Ref. 27). Formaldehyde emissions from 
these two studies were measured by test methods that are not directly 
comparable to the TSCA Title VI emission standards, which are presented 
in terms of the ASTM E-1333-96 (2002) method (Ref. 39). Using 
comparisons developed by CARB (Ref. 40), it appears that the results 
from both studies are within the range of the formaldehyde emission 
standards established by TSCA Title VI. However, in light of the 
limited amount of data, and the uncertainties involved in comparing 
results from different test methods, EPA is unable to determine that 
this is the case.
    EPA also reviewed the documents available from CARB's rulemaking 
process for the ATCM. In developing the CARB ATCM, CARB did a 
significant amount of research into available resins and their relative 
formaldehyde emissions potentials. CARB commissioned a study on 
formaldehyde and toluene diisocyanate emissions from interior 
residential sources (Ref. 29). In 2003, CARB also surveyed composite 
wood product manufacturers across the U.S., asking them for a variety 
of information including formaldehyde emissions data from products. 
This research led CARB to conclude that formaldehyde emission control

[[Page 89682]]

measures for hardwood plywood, medium-density fiberboard, and 
particleboard were warranted, because these three products were 
primarily being made with urea-formaldehyde resins that ``have the 
highest formaldehyde emission rates.'' (Ref. 27). According to CARB, 
formaldehyde emission rates from other composite wood products, 
products used primarily in exterior applications, such as oriented 
strand board, hardboard, and peg board, were about 90% lower and 
contributed far less to formaldehyde concentrations in California. CARB 
went on to note that the primary composite wood products using phenol-
formaldehyde resins were oriented strand board and softwood, or 
structural plywood, which were mainly used for exterior sidings. Thus, 
many of the products excluded from the CARB ATCM, and later from TSCA 
title VI, such as hardboard, oriented strand board, structural plywood, 
structural panels, and structural composite lumber, were so excluded 
because CARB determined that they were already being made with resins 
with limited formaldehyde emissions potential. Based on the available 
information that EPA has reviewed as part of this rulemaking, EPA 
agrees with CARB's determination that composite wood products made with 
phenol-formaldehyde resins are much less likely to emit formaldehyde 
than products made with urea-formaldehyde resins.
    EPA also observes that, as noted by a commenter (Ref. 25), the 
Leadership in Energy and Environmental Design (LEED) 2009 green 
building certification program allowed a low-emitting materials credit 
for the use of composite wood products made with no added urea-
formaldehyde resins. This credit was available without formaldehyde 
emissions testing. A 2013 interpretation of the requirements allowed 
composite wood products that met the CARB ATCM standard for a ULEF 
exemption to obtain the credit, but only with the CARB-required testing 
to confirm low formaldehyde emissions. This credit has been expanded in 
LEED v4, the most recent LEED standard, to encompass materials that, 
with testing, meet the CARB ATCM standard for either a NAF or ULEF 
exemption.
    EPA carefully considered all of the public comments, as well as 
information that EPA compiled on the wood products industry in order to 
develop this rule and analyze its economic impacts. Based on the 
information provided by commenters on the differences between hardwood 
plywood production and laminated product production, EPA agrees with 
the numerous commenters who asserted that laminated product producers 
are truly different from composite wood product mills. It is EPA's 
understanding that laminated product producers are generally smaller 
businesses that make fewer individual items per product type than mills 
do, although EPA recognizes that this is not universally true. There 
are also many more laminated product producers (an estimated 7,000 to 
14,000) than composite wood product mills (an estimated 90, operated by 
54 firms) (Ref. 3). Laminated product producers are often small custom 
shops who laminate on a per order basis. While each laminated product 
would not have to be tested, as some commenters asserted, the product 
grouping conventions used by TPCs and mills to reduce the number and 
frequency of required tests could still result in significantly more 
tests for a given production volume for a custom shop as compared to a 
hardwood plywood mill. In addition, because composite wood product 
mills typically make many more individual items of each product type 
than most laminated product producers, mills can amortize the fixed 
costs of testing over a larger volume of production, resulting in only 
a small cost increase per unit.
    EPA considered the costs that laminated product producers would 
bear under a variety of options to address formaldehyde emissions from 
laminated products, including options involving an emission standard 
but no testing and reduced testing without certification, as well as 
the option chosen for this final rule. As more fully described in 
Chapter 2 of the economic analysis (Ref. 3), EPA estimated the size of 
the laminated product producer universe, how many of them used urea-
formaldehyde resins, and how much it would cost for testing, 
certification, and switching from a urea-formaldehyde resin to a 
phenol-formaldehyde resin or a resin formulated with no added 
formaldehyde as part of the resin cross-linking structure. EPA assumed 
that laminated product producers would switch from a urea-formaldehyde 
resin to a qualified resin, or purchase already-veneered panels from a 
hardwood plywood panel producer or another laminated product producer, 
if it made economic sense for them to do so. Taking all of this into 
account, EPA estimated that the aggregate annualized costs for 
laminated product producers would be $26 million to $72 million using a 
three percent discount rate, and $26 million to $62 million using a 
seven percent discount rate.
    Also as described in the economic analysis (Ref. 3), EPA estimated 
the human health benefits that would result from reductions in 
formaldehyde exposure attributable to this final rule. Because most 
domestic composite wood product panel producers are producing only CARB 
compliant products, exposure reductions due to this rule are expected 
to come primarily from two sources: Laminated products and imported 
composite wood products. EPA was able to quantify the benefits 
attributable to avoided eye irritation and nasopharyngeal cancer, but 
there are additional unquantified benefits due to other avoided health 
effects. There is not sufficient information at this time on the 
relationship between formaldehyde exposure and myeloid leukemia, 
respiratory related effects, or reduced fertility to include a 
valuation estimate in the overall benefits analysis. The quantified 
benefits attributable to reductions in laminated product emissions are 
$35 million to $104 million using a three percent discount rate, and 
$13 million to $42 million using a seven percent discount rate. These 
benefits represent approximately half of all quantified benefits 
attributable to the final rule.
    2. Rationale for exemption. EPA based its proposed exemption for 
laminated products made with NAF-based resins on a reading of the 
statute that requires any exemption for laminated products to be 
promulgated in accordance with TSCA section 601(d)(1), in a manner that 
ensures compliance with the statutory emission standards. EPA's 
rationale was that, if the platform complied with the applicable 
emission standards for the platform, the addition of a veneer with a 
NAF-based resin was unlikely to cause the resulting laminated product 
to exceed the applicable emission standard for the platform. Although 
some commenters supported the proposed exemption, others thought it 
wasn't broad enough, and still others noted that laminated products 
were covered by TSCA Title VI as hardwood plywood, and should, 
therefore, be required to meet the hardwood plywood emission standard. 
Although EPA referred to the laminated products exemption in the 
proposed rule as a NAF exemption, this terminology likely causes 
confusion between the exemption for laminated products and the limited 
testing and certification exemptions discussed in Unit III.G. that are 
available to panel producers who use NAF-based or ULEF resins. EPA is 
therefore avoiding the use of the term ``NAF-based'' in connection with 
the laminated products exemption in this final rule.
    Upon further reflection, and consideration of public comments, EPA

[[Page 89683]]

has concluded that the better reading of the statute is that EPA need 
not make a finding that exempt laminated products will meet the 
statutory emission standards, whether for hardwood plywood or for the 
underlying platform. Rather, EPA must make a reasoned determination, 
based upon a review of all of the available and relevant information, 
that some or all laminated products should be exempt. This provides EPA 
with the discretion to consider a wide variety of factors, including 
formaldehyde emission potential, business demographics, and resin 
chemistry, as well as costs and benefits. EPA views the formaldehyde 
emission potential and the benefits of reductions in emissions as the 
most important considerations. The purpose of TSCA Title VI is to 
reduce formaldehyde emissions from composite wood products in order to 
protect human health. The central feature of Title VI is the range of 
formaldehyde emissions that Congress established considering all of the 
factors then known. And Congress chose to include laminated products 
within the definition of hardwood plywood unless EPA exempts them. 
Consequently, although EPA has concluded that Title VI does not require 
strict compliance with the standards as the test for EPA's exemption 
decision, EPA continues to believe that consideration of the 
formaldehyde emission potential of laminated products and the estimated 
health benefits from reductions in such emissions are the most 
important considerations, and the statutory emission standards provide 
the best baseline for evaluating these considerations.
    That having been said, Congress most likely treated laminated 
products differently from other covered products because of the real 
differences between laminated product producers and composite wood 
product mills (see earlier discussion). Notably, laminated product 
producers are generally of a smaller size and more numerous as compared 
to mills. Thus, EPA has carefully considered the costs and benefits in 
deciding whether to exempt laminated products, including the costs and 
benefits of testing and certification and of allowing time for the 
demonstration and development of lower-emitting resin substitutions. In 
this regard, an integral part of this determination is the decision to 
establish the manufactured-by date for laminated products at December 
12, 2023, as discussed later in this Unit. EPA's decision to retain 
coverage of laminated products other than products made by using, 
during the lamination step, either a phenol-formaldehyde resin or a 
resin formulated with no added formaldehyde as part of the resin cross-
linking structure hinges in part upon laminated product producers 
having the ability to fully evaluate options for compliance.
    Congress also clearly modeled portions of TSCA Title VI on the CARB 
ATCM. For laminated products, Congress expressly included information 
from State authorities among the things that EPA must consider in 
deciding whether to exempt any laminated products. At that time, CARB's 
regulations did not regulate laminated products as hardwood plywood. 
However, Congress clearly did not direct EPA to mimic CARB exactly. EPA 
therefore has considered not only what CARB's regulations were at that 
time but also the current concerns and direction of their program.
    Some commenters supported an exemption for laminated products that 
are made without urea-formaldehyde resins. In fact, one observed that 
CARB, in a presentation at an August 2013 stakeholder meeting on the 
differences between the ATCM and the EPA proposal, suggested an 
alternative approach to laminated products that would not require 
testing or certification unless the producer uses urea-formaldehyde 
resins (Ref. 41). As previously discussed, EPA knows of two other 
formaldehyde-based resins that would fit within the suggested category 
of no-added urea-formaldehyde resins, i.e., phenol-formaldehyde resin 
and melamine-formaldehyde resin. At the present time, EPA has 
determined that the available data supports an exemption for laminated 
products made with phenol-formaldehyde resins, but not an exemption for 
products made with melamine-formaldehyde resins.
    Many more commenters supported other options, such as an exemption 
for all laminated products or the CARB discussion proposal of March 
2014. EPA is not promulgating an exemption for all laminated products 
because the available information indicates that laminated products 
made with urea-formaldehyde resins can have high formaldehyde emissions 
and laminated product producers have several alternatives to choose 
from in determining how best to comply with this final rule. Many 
laminated product producers are already using resins formulated with 
no-added formaldehyde as part of the resin cross-linking structure 
(Ref. 3) and more are likely to switch to that type of resin or a 
phenol-formaldehyde resin in order to avoid having to comply with the 
testing and certification requirements. Laminated product producers can 
choose to purchase already-veneered panels if that is more cost-
effective. Laminated product producers can also choose to consult with 
an EPA TSC Title VI TPC to design a workable testing and certification 
program.
    With respect to the CARB discussion proposal, it is a significant 
improvement over a complete exemption. However, EPA is concerned that, 
without either a requirement to use phenol-formaldehyde resins or 
resins formulated with no-added formaldehyde as part of the resin 
cross-linking structure or a requirement for some testing, there is no 
assurance that the products will meet CARB's suggested emission 
standard of 0.13 ppm. The record, especially the CARB/AHFA data set, 
demonstrates that some laminated products have high formaldehyde 
emissions, so a requirement that the platform be compliant does not 
ensure that the laminated product will also be compliant, particularly 
if urea-formaldehyde resins are used.
    This final rule also does not include an exemption for laminated 
products made with compliant platforms and ULEF resins that contain 
urea-formaldehyde. The resins eligible for this exemption can be 
defined by their composition. For the purpose of this exemption, 
because specific resin formulation information was not available for 
the formaldehyde emissions data that EPA reviewed on phenol-
formaldehyde resins, EPA has defined phenol-formaldehyde resin to be a 
resin that is primarily composed of phenol and formaldehyde, with no 
added urea. Similarly, the other resins eligible for the laminated 
products exemption do not contain added formaldehyde as part of the 
resin cross-linking structure by definition. However, the available 
information reviewed by EPA in this rulemaking indicates that the only 
way to determine whether urea-formaldehyde resins are also ULEF resins 
is through emissions testing. Indeed, in responding to another 
commenter's suggestion that EPA approve resin systems that demonstrate 
consistent compliance with emission limits when properly used, one 
commenter stated that ULEF is not a resin type (Ref. 42). According to 
this commenter, the term describes an emission result when measured in 
a variety of different tests over different time frames and a resin 
that meets the ULEF limits in one product setting and application may 
not in another. This commenter noted that application rates, laminate 
and substrate porosity and

[[Page 89684]]

other factors affect emissions from products made with ULEF resins. EPA 
agrees that there are a number of factors that affect the formaldehyde 
emission rates of products made with ULEF resins and that, in order to 
exempt laminated products made with ULEF resins, EPA would have to 
require upfront testing to demonstrate that product emissions are in 
the range of the statutory emission limits. There would be no 
meaningful difference between the testing EPA would require of 
laminated product producers to demonstrate low emissions and the 
testing that will be required of mills who are applying for the limited 
exemption from testing and TPC oversight for products made with ULEF 
resins. Laminated product producers are free to take advantage of the 
third-party certification exemption or reduced testing provisions under 
Sec.  770.18.
    In deciding on the scope and structure of the laminated products 
exemption, EPA was mindful of the scope of the CARB regulations and the 
consideration being given by CARB to amendment of those regulations, 
and EPA consulted extensively with CARB. It would not be appropriate 
for EPA to mirror the current CARB regulations and simply exempt 
laminated products, for the reasons stated above, and also because CARB 
is considering amendment to its regulations to cover laminated 
products. EPA cannot speculate whether or how CARB will amend its 
regulations, but the approach taken in today's rule is consistent 
overall with the concept of CARB's March 2014 discussion proposal, in 
that it uses the upper bound of the Title VI emission standards as the 
most important guide in determining whether laminated products should 
be exempted. While CARB's proposal would not have required testing and 
certification, for the reasons stated above, EPA is concerned that a 
program without testing or certification would not be effective in 
achieving the objective to keep emissions below the target level. Thus, 
EPA has determined today's rule properly accounts both for CARB's 
regulatory direction and for the numerous additional considerations 
appropriate under Title VI, as discussed herein.
    3. Manufactured-by date for laminated products. EPA has determined 
that testing and certification is necessary for laminated products 
unless they are made by attaching a wood or woody grass veneer to a 
compliant platform with either a phenol-formaldehyde resin or a resin 
formulated with no-added formaldehyde as part of the resin cross-
linking structure. However, EPA agrees with the numerous commenters who 
argued that EPA could not realistically expect those laminated product 
producers that are currently regulated under CARB only as fabricators 
to attain compliance with this rule's testing and certification 
requirements within a year. As a result of EPA's consideration of the 
public comments and EPA's review of the available and relevant 
information on laminated products as directed by the statute, EPA is 
establishing the manufactured-by date for laminated products at 
December 12, 2023. After the manufactured-by date for composite wood 
products, which is December 12, 2017, all laminated product producers 
must comply with the general requirements for fabricators, i.e., they 
must use compliant cores or platforms, they must keep fabricator 
records, and they must follow the labeling requirements for 
fabricators. After the manufactured-by date for laminated products, 
laminated product producers making exempt laminated products also must, 
as a condition of the exemption, maintain records demonstrating that 
exempt products made after the manufactured-by date for laminated 
products are eligible for the exemption. Also after the manufactured-by 
date for laminated products, producers of non-exempt laminated products 
must comply with the testing, certification, and recordkeeping 
requirements for hardwood plywood in addition to the requirements for 
fabricators.
    EPA recognizes the significant challenges described by many 
commenters in switching from urea-formaldehyde resins to other resin 
technologies and EPA realizes that it will take considerable time in 
some instances to successfully do so. Not only must fabricators find a 
way to make their products with new resin technology, they must also 
have time to observe how these products perform in use. Several 
commenters mentioned the difficulty of evaluating new resin 
technologies for products that have 25-year warranties. In addition, 
because the formaldehyde emission standard for hardwood plywood is 
lower than the standards for particleboard and MDF, even those 
laminated product producers that choose not to switch to an exemption-
eligible resin technology may have to change resin formulations or 
purchase lower-emitting platforms in order to meet the hardwood plywood 
emission standard. These laminated product producers will also need 
time to evaluate strategies for compliance that may involve different 
production processes and different supply chains.
    Another consideration is TPC capacity. EPA shares the concerns of 
those commenters who thought that the addition of large numbers of 
laminated product producers to the pool of businesses needing testing 
and TPC certification services might overwhelm available TPC capacity, 
at least at first. Although there is some uncertainty as to exactly how 
many laminated product producers will be able to switch to either 
phenol-formaldehyde resins or resins formulated with no-added 
formaldehyde as part of the resin cross-linking structure and thereby 
avoid testing and certification requirements, EPA anticipates that a 
significant number of them will do so. Currently, there are about 40 
CARB-approved TPCs, with 11 of them located in the United States and 
EPA expects them to participate in the TSCA Title VI program. It would 
not take many of the estimated 7,000 to 14,000 laminated product 
producers, currently not regulated by CARB as hardwood plywood 
producers, to overwhelm this capacity.
    Some commenters asked for additional time to conduct studies in 
order to demonstrate that other laminated products should be exempt 
from the testing and certification requirements. These commenters cited 
products with thicker veneers as an example of laminated products that 
would likely be able to demonstrate consistently low emissions. EPA 
agrees that this approach has merit, in that it could potentially 
enable EPA to make a finding that exemptions for other laminated 
products are also warranted. For example, although the limited data 
available meant that EPA was unable to determine that an exemption for 
laminated products made with melamine-formaldehyde resins was 
warranted, it is entirely possible that additional data would confirm 
that products made with melamine-formaldehyde resins have consistently 
low formaldehyde emissions. It is also possible that studies could 
demonstrate that certain combinations of resin formulation and 
manufacturing processes consistently result in products with low 
formaldehyde emissions, as suggested by another commenter. In order for 
EPA to base findings for additional exemptions on product studies, such 
studies should be performed in accordance with accepted scientific 
principles. Studies offered in support of a potential exemption that 
include, for example, a representative sampling of products belonging 
to the product category suggested for exemption, especially with

[[Page 89685]]

formaldehyde emission results from testing performed in accordance with 
ASTM E1333-10 or ASTM D6007-02 (Refs. 43-44), are likely to facilitate 
a preliminary EPA determination on the merits of the suggested 
exemption. However, other types of studies could also be used to 
support an exemption. In general, EPA intends to evaluate any data 
submitted in support of an exemption using the factors outlined in the 
July 2003 document entitled ``A Summary of General Assessment Factors 
for Evaluating the Quality of Scientific and Technical Information'' 
(Ref. 45). Persons interested in demonstrating that additional 
exemptions are warranted are encouraged to contact the technical person 
listed under FOR FURTHER INFORMATON CONTACT. The process from study 
initiation to final EPA rulemaking, if warranted, would be a multi-year 
effort. It is likely that designing and conducting a robust study in 
support of an exemption for other laminated products would take a 
couple of years. Upon study completion, it would take EPA some time to 
review the study and determine whether to undertake rulemaking to 
exempt additional laminated products. Once a decision to undertake 
rulemaking had been made, EPA's rulemaking process would take several 
more years.
    There may also be other opportunities to reduce the burdens 
associated with the testing and certification requirements for 
laminated product producers. For example, there may be other test 
methods or testing protocols that, when applied to laminated product 
production, may ensure that laminated product emissions are 
consistently within the range of emissions permitted for laminated 
product platforms. EPA encourages laminated product producers to think 
creatively about how to approach the problem of demonstrating 
consistently low formaldehyde emissions, whether by the type of resin 
used or the manufacturing process, or by using alternatives to existing 
test methods and testing protocols. Some commenters suggested 
alternative testing protocols for laminated products, such as testing a 
worst-case scenario for that producer once a quarter. There may also be 
alternative methods for testing laminated products that would be less 
burdensome than either using ASTM E1333-10 or ASTM D6007-02 or a 
correlated quality control method. In order for EPA to incorporate any 
such alternatives, EPA would have to have data upon which to determine 
that the alternative does in fact provide accurate and repeatable 
results that demonstrate consistently low formaldehyde emissions.
    To this end and consistent with 5 U.S.C. 553(e), EPA has 
established a process at Sec.  770.4 through which any person may 
petition the Agency to initiate a rulemaking to expand the exemption 
for laminated products from the definition of the term ``hardwood 
plywood''. EPA considers establishment of the petition process at Sec.  
770.4 to be a rule of Agency procedure, and it is therefore not subject 
to prior notice and comment. Petitioners should include with their 
petitions all available and relevant data to support the requested 
exemption(s) and enable EPA to make a reasoned determination that the 
petition should be granted. This provides EPA with the discretion to 
consider a wide variety of factors, including formaldehyde emission 
potential, business demographics, and resin chemistry, as well as costs 
and benefits. EPA views the formaldehyde emission potential and the 
benefits of reductions in emissions as the most important 
considerations.
    EPA's goal will be to promptly review the petition and supporting 
data. The Agency's review will be hastened to the extent that the 
petition fully addresses the factors EPA would take into account. EPA 
will acknowledge receipt of the petition within 15 calendar days by 
sending a letter to the petitioner and subsequently communicate in 
another letter to the petitioner the Agency's decision to initiate 
rulemaking or deny the petition. The petition and any accompanying 
data, together with the letters acknowledging EPA's receipt of the 
petition and communicating EPA's subsequent decision in response to the 
petition will be placed in a public docket.
    Following a decision to initiate rulemaking based on a petition, 
EPA will publish in the Federal Register a proposed rule that would 
expand the laminated products exemption based on the petition, and 
provide a 30-day public comment period. Based on the petition and any 
public comments, EPA would take final action on the proposal. If EPA 
expands the exemption for laminated products to include additional 
resin formulations, laminated product producers using those additional 
resin formulations will be subject to the same recordkeeping 
requirements as those laminated product producers who use NAF and 
phenol-formaldehyde resins; that is, they must maintain records 
demonstrating eligibility for the exemption.
    EPA agrees with the commenters who suggested that additional time 
should be given to laminated product producers before they are required 
to comply with the testing and certification provisions of this final 
rule. In fact, considering in part all of the comments advocating for a 
permanent exemption, EPA has determined that the three years suggested 
by several commenters is not likely to be sufficient for some laminated 
product producers to fully evaluate different resin technologies to 
determine whether they can qualify for the exemption and to either 
successfully implement an alternative resin in their production process 
or turn to evaluating strategies for achieving compliance with the 
hardwood plywood emission standard and the testing and certification 
provisions. Neither would it be sufficient to design and conduct 
studies and allow EPA to conduct rulemaking to provide additional 
exemptions if warranted.
    In EPA's view, seven years is a more realistic timeframe for acting 
on any additional warranted exemptions, and should also provide 
sufficient time for laminated product producers to either switch to a 
resin that renders them eligible for the exemption or figure out how to 
implement a testing and certification program for their laminated 
products. EPA based the seven year timeframe on the Agency's best 
professional judgment of the estimated time it likely takes to conduct 
product testing, especially to prove that a particular technology 
sufficiently reduces emissions in a broad array of applications and for 
EPA to evaluate and act upon a petition to expand the exemption for 
laminated products from the definition of the term ``hardwood 
plywood.'' EPA assumed that it would take at least a year to design a 
study that would result in the generation of data to support an 
exemption for a category of products, and another year to acquire the 
products and actually perform the product testing. The amount of time 
needed for EPA's review of the data could vary substantially, depending 
on the amount, robustness, and sufficiency of provided supporting 
information. Finally, EPA wanted to ensure that there would be enough 
time for laminated product producers to develop data to support any 
petitions and submit them to EPA for evaluation before the testing and 
certification requirements take effect for laminated products without 
feeling compelled to expend resources for the otherwise-required 
testing and certification to avoid potential noncompliance.
    EPA considered establishing a shorter sell-through period, which 
would have

[[Page 89686]]

required producers of laminated products to incur the cost of complying 
with the testing and certification requirements while also making 
financial investments in determining whether they are able to switch to 
a qualified resin or conducting a robust study to justify a subsequent 
exemption. However, EPA does not think this approach is justified for 
several reasons, and as indicated above, EPA's decision not to exempt 
laminated products other than products made by using, during the 
lamination step, either a phenol-formaldehyde resin or a resin 
formulated with no added formaldehyde as part of the resin cross-
linking structures is premised in part of the decision to establish the 
seven-year sell-through period. Even aside from efforts to develop 
alternatives to compliance with today's standards, laminated product 
producers could not realistically be expected to be in full compliance 
with this regulation in one year in view of the considerations 
discussed herein (such as TPC capacity and process changes the 
producers may need to make). In addition, because of the large number 
of laminated product producers that are subject to this rule, the fact 
that many of them are very small businesses that laminate on a per-
order basis, and the significant upfront costs involved in designing 
and implementing a testing and certification program, it does not make 
sense, in EPA's view, to require producers to simultaneously incur 
compliance costs while investigating whether they are able to switch to 
a qualified resin or while conducting a robust study to justify a 
subsequent exemption or the effectiveness of alternative test methods 
or protocols. EPA wants to encourage these investigations, which may 
well reveal approaches that are as or more reliable in ensuring low 
emissions at a lower cost, and EPA is concerned that requiring the 
investment and process changes needed to comply with the rule 
certification and testing requirements on a shorter timeframe might 
reduce the incentive for the development of alternative approaches. EPA 
also does not think it makes sense to stimulate a large expansion of 
TPC capacity in the short term that may be unnecessary and/or may 
result in excess capacity over time.
    Overall, EPA has exercised its discretion in making its 
determination so as to fulfill the primary purpose of TSCA Title VI 
without impeding unduly or creating unnecessary economic barriers to 
technological innovation. See 15 U.S.C. 2601(b)(3). In fact, EPA 
encourages laminated product producers and the wood products industry 
to explore all avenues for reducing formaldehyde emissions from 
composite wood products. In addition to established resins, such as 
soy-based resins or phenol formaldehyde resins, new resin technologies 
may be developed that provide adequate performance while contributing 
minimal formaldehyde emissions. Similarly, while there are established 
alternatives to regulated composite wood products, e.g., lumber or 
solid wood, it is likely that new alternatives will be developed. For 
example, in 2014, EPA awarded a grant through EPA's Small Business 
Innovation Research program competition to Ecovative Design, LLC. 
Ecovative makes packaging, building materials (furniture and panels) 
and automotive products by growing them from agricultural byproducts 
and mycelium, a fungal network of threadlike cells that are like the 
roots of mushrooms. These materials are not hardwood plywood, 
particleboard, or MDF, and thus are not subject to this final 
regulation. EPA encourages laminated product producers to consider all 
aspects of their production processes when deciding how best to lower 
formaldehyde emissions from laminated products and achieve compliance 
with this regulation.
    4. Definitions associated with laminated products. EPA is 
promulgating the definitions associated with laminated products 
essentially as proposed, except that the term ``laminated product'' is 
limited to those products that are produced either by the fabricator of 
the finished good in which the product is incorporated or by a 
fabricator who uses the laminated product in the further construction 
or assembly of a component part. EPA's proposed definition did not 
include any provisions restricting applicability of the term to certain 
entities because of concerns over potentially inequitable results. EPA 
did not intend for the term ``laminated product'' to be expanded to the 
extent that virtually all hardwood plywood panels could be considered 
laminated products. Rather, EPA's intention was to allow fabricators of 
component parts, e.g., cabinet door fabricators, to be afforded similar 
treatment under the TSCA Title VI regulations as fabricators of 
finished goods, e.g., entire cabinets. The laminated product definition 
in this final rule addresses EPA's concerns without being overly broad.
    EPA's proposed definition of laminated product also expanded upon 
the statutory definition to include products made by attaching woody-
grass veneers to particleboard, MDF, or veneer-core platforms. In 
addition, EPA proposed related definitions for the terms ``veneer'' and 
``woody-grass.'' While some commenters objected to the expansion of the 
definition of laminated products to include woody-grass veneers, CARB 
and another commenter supported including woody-grass veneers, and the 
February 2014 draft amendments to the CARB ATCM include woody grass in 
the definition of veneer. Therefore, for the reasons stated in the 
proposal, that woody-grass veneers can be porous and therefore not 
effective barriers to formaldehyde emissions, that woody grass veneers 
can be affixed to cores and platforms using urea-formaldehyde resins, 
and that including woody grass veneers is consistent with the 
definition of hardwood plywood in the ANSI/HPVA HP-1 standard (Ref. 
46), the definition of laminated product in the final rule includes 
woody grass as well as wood veneers. EPA notes that the term 
``laminated product'' does not include those products made by attaching 
something other than a wood or woody grass veneer (e.g., plastic, 
vinyl, or film) to a core or platform.
    In addition, because the term ``core'' and the term ``platform'' 
can both be used to describe the wood product to which a wood or woody 
grass veneer is affixed, the final rule's laminated product definition 
includes both terms.
    EPA is promulgating the definition of the term ``veneer'' as 
proposed, with the addition of a maximum thickness limit of 6.4 
millimeters (\1/4\ inch, the thickest veneer allowed under the ANSI/
HPVA HP-1 standard) to distinguish it from lumber or sawn veneer, a 
specialty product typically used in the restoration of antique 
furniture.
    EPA also proposed to define component part as a part that contains 
one or more composite wood products and is used in the assembly of 
finished goods. EPA is promulgating the definition of component part as 
proposed, except that EPA has added the unintentionally-omitted phrase 
``construction or'' to the definition, as well as a clarification 
regarding parts sold individually to end users. Such items are not 
component parts but are more properly classified as finished goods 
because their commercial assembly process is complete. This 
clarification is consistent with CARB's proposal to modify their 
definition of the term ``finished good'' so that it means any good or 
product, other than a panel, containing hardwood plywood, 
particleboard, or MDF.
    4. Particleboard and medium-density fiberboard. As proposed, EPA is

[[Page 89687]]

incorporating the statutory definitions of the terms ``particleboard'' 
and ``medium-density fiberboard'' into the regulations without change. 
In addition, EPA is finalizing the proposed definition for the term 
``thin medium-density fiberboard'' that incorporates a maximum 
thickness of 8 millimeters or 0.315 inches and is consistent with both 
CARB and the voluntary consensus standard for medium-density fiberboard 
(Ref. 47). EPA is aware that some products are marketed as ``high-
density fiberboard.'' If these products meet the definition of medium-
density fiberboard, they are regulated as medium-density fiberboard. If 
they meet the definition of ``hardboard'' they are exempt as hardboard.
    5. Exemptions. a. Statutory exemptions. TSCA section 601(c) exempts 
a number of products from the formaldehyde emission standards for 
composite wood products. These exemptions include, but are not limited 
to: Hardboard, structural plywood, structural panels, oriented 
strandboard, glued laminated lumber, prefabricated wood I-joists, 
finger-jointed lumber, wood packaging, composite wood products used 
inside new vehicles other than recreational vehicles, windows that 
contain less than five percent by volume of composite wood products, 
exterior doors and garage doors that contain less than three percent by 
volume of composite wood products, and exterior and garage doors that 
are made with NAF-based or ULEF resins. EPA is incorporating these 
exemptions into the implementing regulations. Composite wood products, 
component parts, and finished goods that qualify for these exemptions 
are exempt from all of the provisions of the implementing regulations. 
However, component parts and finished goods made of a mixture of exempt 
products and regulated products are not exempt. For example, a cabinet 
made up of structural plywood and hardwood plywood would be subject to 
the labeling and recordkeeping requirements of this final rule. The 
hardwood plywood in the cabinet would also be subject to the emission 
standard for hardwood plywood as well as the testing and certification 
provisions of this rule.
    The statute exempts any finished good that has previously been sold 
or supplied to an individual or entity that purchased or acquired the 
finished good in good faith for purposes other than resale. The statute 
provides two examples: Antiques and secondhand furniture. Thus, dealers 
in secondhand furniture do not have any obligations under this 
regulation solely due to the fact that some of the furniture may 
contain composite wood products. Similarly, refurbishment of antique 
furniture and in-house repairs of previously sold finished goods, such 
as cabinetry and furniture, are not covered by this regulation. 
However, there is no exemption for panel producers, importers, and 
fabricators of composite wood products and component parts that are 
intended to be used in repairs. Unless another exemption is applicable, 
these entities may only make compliant products available in the market 
place, including to end users and other parties that intend to use 
these products in repairs.
    With respect to exterior and garage doors made with NAF-based or 
ULEF resins, these resin types are defined elsewhere in the statute, 
with reference to both the composition of the resin and the 
formaldehyde emissions of composite wood products made with the resin. 
EPA is promulgating these exemptions as proposed and will interpret the 
statutory language to mean that, in order to be eligible for this 
exemption, the composite wood products used to make exterior and garage 
doors must comply with the emission standards contained in the 
statutory definitions of NAF-based resins and ULEF resins, as measured 
by the testing described in the statutory definitions of these resin 
types. However, manufacturers, fabricators, distributors, or retailers 
of these doors are not required to comply with the third-party 
certification, recordkeeping, or labeling provisions of this final 
rule.
    b. Hardboard. TSCA Title VI exempts hardboard, but directs EPA to 
define it. EPA proposed to define hardboard with reference to, and 
consistent with, three relevant ANSI standards: ANSI A135.4 (Basic 
Hardboard), ANSI A135.5 (Prefinished Hardboard Paneling), or ANSI 
A135.6 (Hardboard Siding) (Refs. 48-50). EPA is concerned that, because 
hardboard and thin MDF share similar appearances and end uses, a broad 
definition of hardboard could lead to thin MDF being erroneously 
categorized as hardboard and exempted from the emission standards. 
Subsequent to EPA's proposal, CARB issued proposed amendments to its 
ATCM that would limit the hardboard exemption to hardboard that emits 
less than 0.06 ppm formaldehyde (Ref. 51).
    The definition of hardboard in the final rule references the latest 
ANSI standards, as suggested in comments from the Composite Panel 
Association, the accredited developer for these standards. As noted in 
the standard itself, the name of the standard pertaining to siding was 
changed from ``Hardboard Siding'' to ``Engineered Wood Siding'' in 
order to more accurately describe the product (Ref. 52). The definition 
in the final rule also references the standard for engineered wood trim 
because the Composite Panel Association indicated that products 
conforming to this standard were also considered hardboard (Ref. 53). 
Although specific ANSI standards are referenced in the definition, 
minor unintentional deviations from the cited ANSI standards do not 
necessarily mean that a product is medium-density fiberboard and not 
hardboard. EPA has also added a rebuttable presumption that products 
emitting more than 0.06 ppm formaldehyde are not hardboard. Based on 
assertions from CARB and the Composite Panel Association, EPA has 
determined that products made according to the ANSI standards for 
hardboard are not likely to emit above 0.06 ppm formaldehyde (Ref. 54). 
This presumption is designed to ensure that MDF is not sold as 
hardboard. Some commenters suggested that EPA address this concern by 
excluding ``dry process'' hardboard from the definition of hardboard 
and treating it as MDF, while others thought this was unnecessary, 
because ``dry process'' hardboard is typically made with a small amount 
of phenol formaldehyde resins and has low formaldehyde emissions. The 
0.06 ppm presumption is more enforceable than a process-based 
exclusion, and is in keeping with industry expectations of hardboard.
    c. Other requested exemptions. Several commenters suggested that 
EPA adopt other, non-statutory, exemptions. As a general matter, EPA 
has determined that it can best ensure compliance with the emission 
standards by applying the regulatory requirements uniformly to all 
composite wood products sold, supplied, offered for sale, or 
manufactured in the United States. If EPA were to promulgate exemptions 
at the manufacturing level, exempt composite wood products could later 
be incorporated into finished goods, possibly with non-exempt composite 
wood products. This could make it difficult for downstream purchasers, 
EPA, and end consumers to assess whether finished goods are made from 
compliant composite wood products. It would also complicate the 
labeling and recordkeeping requirements, because without records passed 
down through the supply chain, it would be difficult to ascertain 
whether finished goods were made from compliant panels, exempt panels, 
regulated panels that were manufactured in violation of the 
regulations, or some combination thereof. Exemptions tied to the 
ultimate

[[Page 89688]]

end use of the product, if applied at the manufacturing level, would 
make it difficult to ensure that none of the composite wood products 
are diverted to other end uses, either intentionally or accidentally. 
Such exemptions would require labeling, recordkeeping, and chain-of-
custody systems specific to the ultimate uses of the products. EPA 
notes, however, that military-specified plywood is excluded from the 
definition of the term ``hardwood plywood'' and thus military-specified 
plywood to be used in new vehicles, rail cars, boats, aerospace craft, 
and aircraft is not subject to these regulations.
    Commenters suggested that EPA promulgate exemptions for products 
made by educational institutions, for products manufactured for export, 
and for products intended for exempt uses (e.g., inside new vehicles). 
Because the statute provides that the emission standards apply to 
composite wood products sold, supplied, offered for sale, or 
manufactured in the United States, EPA does not believe it is 
appropriate to provide such exemptions, except to the extent an entity 
can demonstrate they meet the criteria for the exemption at TSCA 
section 12(a)(1). With respect to composite wood products and finished 
goods produced and labeled solely for export, an entity would bear the 
burden of demonstrating the applicability of TSCA section 12(a)(1). EPA 
further notes the regulations allow for the transportation and 
importation of panels for testing purposes, provided they are 
appropriately marked. In response to requests for a research and 
development exemption, EPA notes that the final definition of the term 
``panel'' does not include items produced for the purpose of research 
and development, provided those items are not sold, supplied or offered 
for sale. Thus, those items are not subject to the panel certification 
requirements.
    6. Other definitions. EPA is defining a number of other terms to 
ensure that the meaning and applicability of the regulatory 
requirements are clear. EPA is using the term ``panel producer'' to 
refer to those facilities that actually make composite wood products, 
including laminated products that are not exempt from the definition of 
hardwood plywood, but excluding importers that do not also make the 
products. As discussed in the preamble of the proposed rule, because 
TSCA section 3 defines the term ``manufacture'' to include import, EPA 
is using another term to clarify the regulation by referring to 
facilities that actually make the products regulated under TSCA Title 
VI for the purposes of the testing, certification, and recordkeeping 
requirements. The term ``panel producer'' applies separately to each 
specific facility because facilities under a common entity often 
operate under separate quality management systems and procedures and 
therefore have their own quality control program specific to their 
staff and operational capabilities. Other terms associated with the 
testing requirements are discussed in Unit III.E., while terms 
associated with the third-party certification program are discussed in 
Unit III.B.
    Other terms for which EPA proposed definitions include 
``importer,'' ``fabricator,'' ``retailer,'' ``distributor,'' and 
``purchaser.'' EPA is finalizing the term ``importer'' as proposed 
because it is consistent with the definition of the term 
``manufacturer'' in TSCA section 3 and the definition of the term 
``importer'' in 40 CFR 710.3. An importer is an entity that imports 
composite wood products, component parts, or finished goods into the 
customs territory of the United States and the term includes the entity 
primarily liable for the payment of any duties on the products, or an 
authorized agent acting on the entity's behalf.
    EPA proposed to define the term ``fabricator'' as an entity that 
incorporates composite wood products into component parts or into 
finished goods and ``retailer'' as an entity that generally sells 
smaller quantities of composite wood products directly to consumers. In 
considering comments received from the renovation industry on whether 
renovators should be considered fabricators or retailers, EPA reviewed 
the language of TSCA Title VI as well as the guidance available on 
CARB's Web site. EPA has determined that the activities of renovators 
are not the kinds of activities that Congress intended to regulate 
under TSCA Title VI. Renovators are neither fabricating finished goods 
to be sold in the marketplace nor are they actually retailing finished 
goods. Renovators perform their work on real property on behalf of, and 
at the direction of, the building owner or lessee and, as such, are 
neither selling nor supplying composite wood products to the building 
owner or lessee. EPA has added an express exception for renovators to 
both the definition of the term ``fabricator'' and the term 
``retailer,'' to ensure that it is clear that they are not intended to 
be covered by the definitions.
    The renovator exception from the term ``retailer'' does not 
encompass retailers who sell building materials and finished goods such 
as cabinets, and also offer installation services to consumers. For 
these retailers, the sale of composite wood products to consumers as 
part of a contract to perform renovation services would be covered by 
these regulations and the retailer would be required to maintain 
records of the transaction. The activities of the subcontractor who 
installs the composite wood products under contract to the retailer 
would not be covered.
    EPA did not receive any other comments specifically on the language 
of the proposed definition of ``fabricator.'' EPA is adding the phrase 
``or entity'' to the definitions of distributor, fabricator, importer, 
and retailer to ensure that it is clear that both natural persons and 
corporate entities have obligations under these regulations. EPA is 
also adding the term ``component part'' to the definition of retailer 
to make it clear that persons who sell parts that contain composite 
wood products directly to consumers are retailers because these parts 
have completed their commercial assembly and are more appropriately 
classified as finished goods. Finally, in response to those commenters 
who thought that the proposed definition was unclear, EPA is 
promulgating a definition of the term ``purchaser'' that clearly states 
that panel producers, importers, fabricators, distributors, and 
retailers are included, while excluding the end user.
    EPA proposed to define the term ``panel'' as ``a flat or raised 
piece of composite wood product.'' In the final regulation EPA is 
defining the term panel as ``a thin (usually less than two inches 
thick), flat, usually rectangular piece of particleboard, medium-
density fiberboard or hardwood plywood. Embossing or imparting of an 
irregular surface on the composite wood products by the original panel 
producer during pressing does not remove the product from this 
definition. Cutting a panel into smaller pieces, without additional 
fabrication, does not make the panel into a component part or finished 
good. This does not include items made for the purpose of research and 
development, provided such items are not sold, supplied, or offered for 
sale.'' In this definition, EPA is clarifying that items produced 
solely for the purpose of research and development are not ``panels'' 
within the intended meaning of TSCA Title VI and do not require 
certification unless they are sold, supplied, or offered for sale.

B. EPA TSCA Title VI Third-Party Certification Program

    1. Overview. The basic framework of EPA's TPC proposal was that ABs 
interested in participating in the EPA TSCA Title VI Third-Party 
Certification

[[Page 89689]]

Program would apply to EPA, and if deemed qualified, would enter into a 
recognition agreement with EPA. After being recognized by EPA, ABs 
would accredit TPCs based on the TPC requirements established in Sec.  
770.7 of the proposed rule. The EPA-recognized ABs would then approve 
or deny TPC applications for acceptance into the EPA TSCA Title VI 
Third-Party Certification Program. Under the proposal, TSCA Title VI 
TPCs would certify panel producers' composite wood products as meeting 
all necessary requirements under TSCA Title VI.
    EPA received several comments, discussed in more detail in Unit 
III.B.2.f., expressing concern over the proposed requirement that EPA-
recognized ABs review and approve or deny TPC applications to 
participate in the EPA TSCA Title VI Third-Party Certification Program. 
Based on these comments, this final rule requires candidate TPCs to 
seek approval and recognition directly from EPA after being accredited 
by EPA-recognized ABs to the necessary standards developed by the 
International Organization for Standards (ISO) and the International 
Electrochemical Commission (IEC) and the TSCA Title VI regulatory 
requirements in 40 CFR part 770. In addition, TPCs approved by CARB 
under the formaldehyde ATCM will also be eligible for recognition under 
the EPA TSCA Title VI Third-Party Certification Program through 
reciprocity with CARB assuming they meet all applicable requirements of 
this final rule. The requirements for a TPC to obtain EPA recognition 
through reciprocity are discussed in Unit III.B.5.b.
    In this final rule, EPA is retaining the proposed requirement that 
ABs interested in participating in the EPA TSCA Title VI Third-Party 
Certification Program must apply to EPA and enter into a recognition 
agreement with the Agency to become an EPA TSCA Title VI AB. Following 
the two-year transitional period for CARB TPCs discussed in Unit 
III.B.5.a., EPA will only recognize TPCs, including CARB-approved TPCs, 
who are accredited by EPA-recognized ABs. The Agency will, as proposed, 
require that TPCs under TSCA Title VI certify a composite wood panel 
producer's products by verifying the accuracy of formaldehyde emissions 
testing of composite wood products by the panel producer, monitoring 
panel producer quality assurance programs for composite wood products, 
and by conducting inspections of panel producers' activities and 
products, discussed in more detail in Unit III.B.3.c. Illustration 1 
shown below provides an overview of the EPA TSCA Title VI Third-Party 
Certification Program.
    EPA aligned, to the extent practicable, the EPA TSCA Title VI TPC 
requirements with those in the CARB ATCM to avoid placing differing or 
duplicative regulatory requirements on the regulated community.
BILLING CODE 6560-50-P

[[Page 89690]]

[GRAPHIC] [TIFF OMITTED] TR12DE16.000

     
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    \1\ TSCA Title VI Third-Party Certification Program formerly 
called the TSCA Title VI Proposed Third-Party Certification 
Framework in the proposed rule.
    \2\ ABs recognized by EPA pursuant to 40 CFR part 770 are termed 
EPA TSCA Title VI ABs in this final rule.
    \3\ The International Organization for Standardization (ISO) and 
the International Electrotechnical Commission (IEC) develop and 
publish consensus-based International Standards utilized by 
accreditation organizations IAF and ILAC.
    \4\ ISO/IEC 17011--General requirements for accreditation bodies 
accrediting conformity assessment bodies.
    \5\ MLA--IAF's Multilateral Recognition Arrangement requires AB 
signatories to demonstrate they are capable of accrediting product 
certification bodies to ISO/IEC 17065--Requirements for bodies 
certifying products, processes or services.
    \6\ MRA--ILAC's Mutual Recognition Arrangement requires AB 
signatories to demonstrate they are capable of accrediting testing 
laboratories to ISO/IEC 17025--General requirements for the 
competence of testing and calibration laboratories and ISO/IEC 
17020--General criteria for the operation of various types of bodies 
performing inspection.
    \7\ TPCs recognized by EPA pursuant to 40 CFR part 770 are 
termed ``EPA TSCA Title VI TPCs'' in this final rule.
    \8\ TPCs may include contracted independent testing labs and 
inspection bodies that are accredited by EPA TSCA Title VI ABs.
---------------------------------------------------------------------------

BILLING CODE 6560-50-C
    a. Terminology. EPA is finalizing most of the definitions 
associated with the TPC program as proposed. However, as a result of 
public comment, and in some cases to improve clarity or to be 
consistent with terms used in the referenced international consensus 
standards, in this final rule EPA has made some minor changes to 
terminology used in the proposed rule. Based on the comments received 
on a number of the AB and TPC provisions, EPA realizes that, where the 
proposal used the term ``accreditation,'' the term ``recognition'' 
would have been a more accurate description of the activities EPA 
intends to take with respect to ABs and TPCs. In this final rule, the 
term ``recognition'' is used instead of the term ``accreditation'' to 
refer to EPA's recognition of ABs or TPCs, including when discussing 
EPA's proposal. The term ``accreditation'' is retained in the final 
rule to refer to an activity that ABs perform as part of evaluating the 
competency of TPCs. Additionally, in this final rule, ABs recognized by 
EPA under the EPA TSCA Title VI Third-Party Certification Program are 
more specifically termed EPA TSCA Title VI Product ABs or EPA TSCA 
Title VI

[[Page 89691]]

Laboratory ABs (both are also referred to as EPA-recognized ABs). TPCs 
approved to certify products under the EPA TSCA Title VI Third-Party 
Certification Program are termed EPA TSCA Title VI TPCs (also referred 
to as EPA-recognized TPCs). A TPC laboratory means a laboratory or 
contract laboratory of an EPA TSCA Title VI TPC that is accredited by 
an EPA TSCA Title VI Laboratory AB.
    EPA proposed that EPA-recognized Product and Laboratory ABs perform 
in-depth system audits on each candidate TPC as part of the 
accreditation process. This requirement is still maintained; however, 
in this final rule the term ``on-site assessment'' is used instead of 
the term ``in-depth systems audit.'' The standard ISO/IEC 
17011:2004(E), entitled ``Conformity assessment--General requirements 
for accreditation bodies accrediting conformity assessment bodies,'' 
uses the terms ``assessment,'' ``reassessment,'' and ``surveillance on-
site assessment'' (Ref. 55). EPA uses these terms to describe the 
activities EPA-recognized ABs are required to perform to evaluate the 
competency of TPCs to conduct the TSCA Title VI implementing 
regulations. The terms ``assessment,'' ``reassessment,'' and 
``surveillance on-site assessment'' are defined in Sec.  770.3. EPA has 
also incorporated comments on the proposed regulation related to ISO/
IEC 17020:2012(E), entitled ``Conformity assessment--Requirements for 
the operation of various bodies performing inspection,'' so that the 
term ``audit'' is replaced with the term ``inspection'' as it relates 
to a TPC's evaluation of a panel producer in this final rule (Ref. 56).
    EPA is finalizing as proposed that EPA-recognized ABs may suspend, 
modify or revoke a TPC's accreditation, as necessary. However, in this 
final rule, the terms ``modify'' and ``revoke'' have been replaced by 
the terms ``reduce'' and ``withdraw'' to make the terminology 
consistent with the terms used in ISO/IEC 17011:2004(E). The terms 
``reduce'' and ``withdraw'' are more familiar to the ABs that will be 
performing TPC accreditation activities under the rule. However, this 
final rule continues to use the terms ``suspend,'' ``modify,'' and 
``revoke'' to describe potential EPA actions with respect to EPA 
recognition of ABs and TPCs under TSCA Title VI because they more 
accurately describe the types of actions that EPA may need to take 
under this final rule.
    b. ISO/IEC Standard Revisions. Since publication of the proposed 
rule, two of the ISO/IEC standards have been updated and this final 
rule incorporates the most current versions of those standards. EPA 
agrees with those commenters that thought that the final rule should 
incorporate the updated version of the standards because ABs will not 
be able to accredit to the previous versions once the transition period 
expires.
    EPA proposed that TPCs be accredited to ISO/IEC Guide 65:1996(E) 
(Ref. 57), which was subsequently revised to be ISO/IEC 17065:2012(E), 
entitled ``Conformity assessment--Requirements for bodies certifying 
products, processes or services'' (Ref. 58). In this final rule, EPA is 
incorporating by reference ISO/IEC 17065:2012(E). This requirement 
reflects the change required by International Accreditation Forum (IAF) 
that Multilateral Recognition Arrangement (MLA) signatories transition 
their accreditation of TPCs to ISO/IEC 17065:2012(E) no later than 
September 14, 2015. In this final rule, EPA is also incorporating by 
reference ISO/IEC 17020:2012(E), which is an updated version of ISO/IEC 
17020:1998(E) referenced in the proposed rule (Ref. 59).
    2. Requirements for Accreditation Bodies. There are two primary 
types of ABs that will be involved in the implementation of the EPA 
TSCA Title VI Third-Party Certification Program: Product ABs and 
Laboratory ABs. EPA recognizes it is also possible that a single AB may 
be qualified to perform the roles of both types of ABs, and accredit a 
TPC for both its product certification capabilities and formaldehyde 
emissions laboratory testing capabilities. This scenario is shown as 
``AB Type #3'' in Illustration 1 (see Unit III.B.1.). In such a case, 
only a single AB would need to be involved in implementing the two AB 
roles under the EPA TSCA Title VI Third-Party Certification Program.
    a. Necessary qualifications of Product ABs. EPA proposed that to be 
an EPA-recognized Product AB, among other requirements, Product ABs 
must be signatories to the IAF MLA, or a member of an equivalent 
oversight body. As noted by commenters, in the proposal, EPA 
incorrectly stated that the IAF MLA level three endorsement ensures 
that the AB has demonstrated basic competence to perform accreditation 
activities for ISO/IEC17020:1998(E). The endorsement to accredit TPCs 
to ISO/IEC 17020:1998(E), now ISO/IEC 17020:2012(E), instead falls 
under the International Laboratory Accreditation Cooperation (ILAC) 
Mutual Recognition Arrangement (MRA), which is discussed later in this 
final rule. The requirements in this final rule pertaining to ISO/IEC 
17020:2012(E) are discussed in Unit III.B.3.a.i.
    In this final rule, EPA retains the requirement that Product ABs be 
signatories to the IAF MLA and be endorsed by IAF through level three, 
the ``main scope'' of the IAF MLA, which ensures that the AB has 
policies and procedures in place in its operations and management plans 
to accredit a TPC for product certification to ISO/IEC 17065:2012(E). 
EPA will also recognize members of IAF regional bodies, as suggested by 
public comments. The four regional cooperations that are currently 
recognized by both IAF and ILAC as equivalent are the Asia Pacific 
Laboratory Accreditation Cooperation (APLAC), the European 
Accreditation Cooperation (EA), the Inter-American Accreditation 
Cooperation (IAAC), and the Pacific Accreditation Cooperation (PAC). 
However, EPA disagrees with a comment to remove the phrase ``or 
equivalent oversight body'' and, as proposed, EPA will still consider 
accepting into the program ABs that are members of organizations that 
EPA has determined to be equivalent. If any other oversight bodies 
exist in the future, ABs that are members of those oversight bodies 
should have the opportunity to be recognized under the EPA program, if 
EPA determines that membership in the new oversight body is equivalent 
to being an ILAC or IAF signatory.
    b. Required qualifications of Laboratory ABs. A Laboratory AB is 
responsible for accrediting the TPC formaldehyde emissions testing 
laboratory. EPA proposed that Laboratory ABs be signatories to the ILAC 
MRA or a member of an equivalent organization.
    As discussed for Product ABs in Unit III.B.2.a., EPA received 
similar comments that Laboratory ABs who are members of ILAC-recognized 
Regional Cooperations provide accreditation services that are 
equivalent to those provided by ILAC MRA signatories. EPA agrees and, 
as for Product ABs, in this final rule EPA will consider a Laboratory 
AB's membership in a regional ILAC cooperation as being equivalent to 
being a signatory to the ILAC MRA for the purposes of eligibility in 
the EPA TSCA Title VI Third-Party Certification Program. The four 
regional cooperations that are currently recognized by both IAF and 
ILAC as equivalent are the APLAC, the EA, the IAAC, and the PAC. EPA 
will also consider accepting into the program Laboratory ABs that are 
members of organizations equivalent to ILAC, as determined by EPA.

[[Page 89692]]

    c. Recognition agreement between EPA and ABs. EPA proposed that 
Product ABs and Laboratory ABs interested in participating in the EPA 
TSCA Title VI Third-Party Certification Program would be required to 
submit an application to EPA to be formally recognized by EPA. Once EPA 
reviewed the AB's credentials and deemed that the AB was qualified, EPA 
proposed that it would enter into a recognition agreement with each 
Product and Laboratory AB to formally recognize each type of AB (or a 
single AB performing both AB roles) as qualified to implement their 
respective roles under the EPA TSCA Title VI Third-Party Certification 
Program. The proposed recognition agreement was proposed to be a signed 
agreement between EPA and each Product AB or Laboratory AB to abide by 
the proposed regulatory requirements.
    EPA received several comments about the proposed requirement that 
each AB enter into a recognition agreement with EPA. These commenters 
opposed or questioned requiring ABs to enter into a recognition 
agreement with EPA, stating that an AB's status as a signatory to the 
IAF MLA and/or ILAC MRA should be sufficient without any further review 
by EPA.
    Because many ABs and the TPCs that they accredit are not located in 
the United States, it is necessary for ABs to enter into a recognition 
agreement with EPA to establish a closer relationship between EPA and 
the ABs for the proper EPA oversight of its regulatory program. 
Furthermore, this requirement is not without precedent, as there are 
several third-party certification programs where ABs must enter into 
such agreements with government agencies to provide accreditation 
services to third-party certifiers, such as the EPA WaterSense Program 
and the EPA Energy Star Program. EPA also believes that requiring ABs 
through recognition agreements to meet with EPA in person, via 
teleconference, or other virtual methods on some regular or as-needed 
basis to discuss the implementation of the accreditation program 
strengthens the ongoing relationship between EPA and participating ABs, 
which in turn improves the overall implementation of the EPA TSCA Title 
VI Third-Party Certification Program. For these reasons, EPA in this 
final rule is retaining the requirement for ABs to apply to EPA and 
enter into a recognition agreement in order to become an EPA TSCA Title 
VI AB.
    EPA also received comment that EPA should lengthen the recognition 
agreement with ABs from three years as proposed to four years to 
reflect the length of time between normal AB peer evaluations under the 
ILAC and IAF programs. Because the timing of the EPA recognition 
agreement with the ABs is unlikely to match the individual AB peer 
review cycles, matching up the two periods would not have any impact on 
the responsibilities of the ABs under the EPA TSCA Title VI Third-Party 
Certification Program. For these reasons, EPA will retain the provision 
for three-year recognition agreement cycles in the final rule.
    d. Agent for service requirement for EPA TSCA Title VI ABs. In the 
event that legal notices would need to be served to an EPA-recognized 
AB, or should the need for administrative and judicial proceedings 
occur with an EPA-recognized AB, EPA proposed requiring ABs to 
designate an agent for service in the United States in their 
applications. The agent would need to be capable of accepting service 
of notices and processes made in administrative and judicial 
proceedings. Any information provided by EPA to the designated agent 
for service would be equivalent to providing that information directly 
to the EPA-recognized AB. Requiring a designated agent for service in 
the United States will help to facilitate communication between EPA and 
ABs and ensure compliance with the formaldehyde emission standards by 
facilitating the ability of EPA to enforce TSCA Title VI and its 
implementing regulations, which in turn encourages the regulated 
entities to fulfill their obligations under the statute and 
regulations.
    EPA received several comments regarding the agent for service 
requirement for ABs. Some commenters misinterpreted this requirement to 
mean that an AB employee is expected to physically work or have an 
office in the United States, which it does not. Additionally, 
commenters expressed concern that ABs who function as part of foreign 
governments may have difficulty designating an agent for service.
    EPA determined that an agent for service is necessary for legal 
matters, and is available at a relatively low cost from private firms 
that specialize in this role. Therefore, the Agency is retaining this 
requirement in this final rule. In response to public comments, EPA 
clarifies that the requirement permits EPA TSCA Title VI ABs and TPCs 
to share an agent for service. EPA TSCA Title VI ABs that are part of a 
foreign government or act on behalf of a foreign government may 
designate their U.S. embassy or a U.S. consulate as their agent for 
service.
    e. EPA Recognition Agreement Implementation Officer. As discussed 
in the proposal and retained in this final rule, the EPA Recognition 
Agreement Implementation Officer is the EPA point of contact for ABs to 
consult with on the implementation of the recognition agreement with 
EPA and matters pertaining to the EPA-recognized AB's responsibilities 
under the recognition agreement. The EPA-recognized AB will also have 
an Implementation Officer that will serve as the point of contact for 
the EPA TSCA Title VI Third-Party Certification Program. The respective 
EPA and EPA-recognized AB Implementation Officers are identified in 
each recognition agreement between EPA and the EPA-recognized Product 
and/or Laboratory AB.
    f. Requirements for EPA TSCA Title VI ABs. EPA proposed that once 
EPA had entered into a recognition agreement with an AB, that AB would 
become recognized by EPA as an EPA TSCA Title VI Product AB, Laboratory 
AB, or both. This section discusses the proposed EPA-recognized AB 
responsibilities and the public comments, as well as the AB 
responsibilities established in this final rule.
    i. Responsibilities of EPA TSCA Title VI Product ABs in the TPC 
application process. EPA proposed that EPA-recognized Product AB 
responsibilities would include receiving and acting on applications 
from TPCs seeking to participate in the EPA TSCA Title VI Third-Party 
Certification Program. EPA also proposed that the EPA-recognized 
Product ABs send TPC applications and required supporting documentation 
to EPA and assign the TPC a unique number once the TPC became an EPA 
TSCA Title VI Accredited TPC.
    EPA received several comments expressing concern with these 
responsibilities. Some commenters felt that the proposed approach would 
provide an increased burden on EPA-recognized ABs beyond normal 
industry accreditation practice, leading to increased costs passed on 
to TPCs. Based on these comments, EPA will not require Product ABs to 
review and approve or deny TPC applications from candidate TPCs that 
want to participate in the EPA TSCA Title VI Third-Party Certification 
Program. Instead, under this final rule, EPA will approve TPC 
applications directly or will recognize CARB-approved TPCs under the 
EPA TSCA Title VI Third-party Certification Program through the EPA/
CARB memorandum of agreement (see Unit III.B.5.b.).
    ii. Responsibilities of ABs after TPC recognition into the EPA TSCA 
Title VI

[[Page 89693]]

Third-Party Certification Program. Under the proposal, EPA-recognized 
Product ABs, when accrediting a TPC, would be responsible for ensuring 
that the TPC has a process in place to verify the accuracy of the 
formaldehyde quarterly and quality control tests. EPA TSCA Title VI 
Product ABs would also ensure the TPC has a process in place to monitor 
panel producer quality assurance programs, and conduct independent 
audits and inspections of panel producers, their quality control 
testing facilities and their laboratories. EPA also proposed that 
Product ABs keep certain records including checklists and other records 
documenting TPC compliance with the accreditation requirements and 
provide them to EPA within 30 calendar days upon request.
    Several commenters thought the proposed requirement for ABs to make 
available to EPA on request, certain accreditation information such as 
checklists and other records documenting adherence to specific 
requirements under the ISO standards, such as inspections and on-site 
assessments, would present issues with the confidentiality agreements 
between ABs and TPCs and would violate the ISO/IEC17011:2004(E) 
confidentiality requirements (Ref. 55). EPA also was informed that it 
could obtain such information through the TPCs rather than the ABs. 
Based on these comments, in this final rule, EPA is requiring 
information pertaining to assessment results of a TPC from the TPC 
instead of the AB.
    Under this final rule, as proposed, EPA-recognized Product ABs will 
retain the responsibility to accredit TPCs (if the TPC is found to be 
eligible) seeking recognition under the EPA TSCA Title VI Third-Party 
Certification Program by performing an initial assessment of each TPC. 
Once EPA recognizes the accredited TPC, EPA-recognized ABs must perform 
a reassessment or surveillance on-site assessment (as defined in 
section 770.3) of EPA-recognized TPCs in accordance with ISO/IEC 
17011:2004(E) at least every two years.
    Commenters also suggested that EPA require that TPCs have this 
final rule's requirements listed within their scope of accreditation 
for both ISO/IEC 17065:2012(E) and ISO/IEC 17025:2005(E) (Refs. 58, 
60). They indicated that this would help to provide enough specificity 
in the certification scheme to ensure consistent performance by all the 
ABs, TPCs and panel producers in this program.
    Because of this information, EPA is clarifying in this final rule 
that EPA-recognized Product ABs (and Laboratory ABs as discussed later 
in this unit) are required to include, as part of their initial ISO 
accreditation related assessment, reassessment and surveillance on-site 
assessment of a TPC, a review of the TPC's competence to perform its 
responsibilities under this rule pursuant to ISO/IEC 17011:2004(E). 
Additionally, a TPC's certificate of accreditation issued by the EPA-
recognized Product AB must specifically include a written reference 
that the TPC scope of accreditation includes ``40 CFR part 770--
Formaldehyde Standards for Composite Wood Products.''
    EPA proposed that EPA-recognized Laboratory ABs would be 
responsible for verifying initially, and on an ongoing basis, that the 
TPC laboratory is experienced and capable of conducting formaldehyde 
emissions tests according to the requirements of TSCA Title VI and its 
implementing regulations.
    In this final rule, the EPA-recognized Laboratory AB 
responsibilities remain largely unchanged from the proposal. EPA-
recognized Laboratory ABs, like Product ABs, are required as part of 
their initial assessment, reassessment, and surveillance on-site 
assessment of a TPC, to conduct a review of the TPC's competence to 
perform its laboratory related responsibilities under this rule 
pursuant to ISO/IEC 17011:2004(E). The TPC's accreditation certificate 
issued by the EPA-recognized Laboratory AB must specifically include a 
written reference that the TPC's scope of accreditation includes ``40 
CFR part 770--Formaldehyde Standards for Composite Wood Products'' and 
the formaldehyde test methods ASTM E1333-10 and ASTM D6007-02, if used.
    EPA proposed that, upon request, EPA-recognized Laboratory ABs 
would allow EPA representatives to accompany their assessors during on-
site assessments to observe the audit of a TPC. EPA received comments 
from ABs opposing this requirement. In response to these comments in 
this final rule, EPA will instead require that TPCs, upon request by 
EPA, allow EPA to attend their assessment, reassessment or surveillance 
on-site assessments conducted by their EPA-recognized AB.
    g. Revocation of EPA's recognition of an AB. EPA proposed that it 
may suspend, revoke, or modify the recognition of an EPA-recognized AB, 
if the AB is not complying with the requirements promulgated for ABs 
under TSCA Title VI. As proposed, if an EPA-recognized AB is removed or 
withdraws from the EPA TSCA Title VI Third-Party Certification Program, 
that AB would be responsible for promptly notifying EPA and all EPA-
recognized TPCs that receive its accreditation services. EPA proposed 
to allow the TPCs that were accredited by that EPA-recognized AB to 
have 365 calendar days, or 180 calendar days, if less than 365 calendar 
days were left on their three-year recognition period, to be accredited 
and recognized again as an EPA-recognized TPC by another EPA-recognized 
AB. EPA proposed that this grace period would not be afforded to TPCs 
if their EPA recognized-AB is removed or withdraws from the EPA TSCA 
Title VI Third-Party Certification Program for fraud or providing false 
or misleading statements related to a particular EPA-recognized TPC or 
TPCs, or any reason that implicates a particular TPC or TPCs in a 
violation of TSCA Title VI or its implementing regulations. While 
seeking accreditation from an alternate EPA-recognized AB, EPA proposed 
that an EPA-recognized TPC would need to continue to comply with all 
other aspects of TSCA Title VI and its implementing regulations, and 
the TPC could continue to certify composite wood products.
    Based on comments received, under this final rule, EPA is retaining 
the authority to suspend, revoke or modify the recognition of an EPA-
recognized AB, if the AB is not complying with the requirements 
promulgated for ABs under TSCA Title VI. If an EPA-recognized AB is 
removed or voluntarily withdraws from the EPA TSCA Title VI Third-Party 
Certification Program, that AB is responsible for promptly notifying 
all EPA-recognized TPCs that receive its accreditation services and 
EPA, in the case of a withdrawal. The regulations allow the TPCs that 
were accredited by that EPA-recognized AB to have 180 calendar days to 
be accredited by another EPA-recognized AB. This 180 day grace period 
would not be afforded to TPCs if their EPA-recognized AB is removed or 
withdraws from the EPA TSCA Title VI Third-Party Certification Program 
for fraud or providing false or misleading statements related to a 
particular EPA-recognized TPC or TPCs, or any reason that implicates a 
particular TPC or TPCs in a violation of TSCA Title VI or its 
implementing regulations. During the 180-day period TPCs may continue 
to certify products under TSCA Title VI. EPA agrees with those 
commenters who thought that portions of the EPA-recognized TPC's 
previous assessments could be considered by the new EPA-recognized AB 
in its reaccreditation of the TPC and therefore would not require the

[[Page 89694]]

proposed 365 calendar days. In this final rule, as proposed, if an EPA-
recognized AB is removed from the EPA TSCA Title VI Third-Party 
Certification Program due to fraud for providing false or misleading 
statements with respect to a particular TPC, or for any other reason 
that implicates a particular TPC in a violation of TSCA Title VI or 
this final rule, that TPC may not provide any TSCA Title VI 
certification services until it has been accredited by another EPA-
recognized AB. Should this situation occur, EPA will provide 
notifications to the affected EPA-recognized TPCs at the time it 
commences formal action (i.e. an action to suspend, modify or revoke a 
recognition under the procedures established in 40 CFR 770.7(e)) 
against the AB. Also under this final rule, and as proposed, any action 
EPA takes against an AB would not preclude an enforcement action 
against a TPC.
    3. Requirements for third-party certifiers of composite wood 
products. a. Requirements to apply for participation in the EPA TSCA 
Title VI Third-Party Certification Program. EPA proposed that TPCs meet 
several qualifications to demonstrate experience and competency in 
certain areas that EPA believed were important to ensure a TPC's 
ability to conduct audits, inspections, testing, and certification of 
composite wood products. The basic requirements for candidate TPCs to 
qualify to participate in the TSCA Title VI program remain largely the 
same in this final rule except as noted in the following discussions.
    EPA had proposed that the TPC must apply to an EPA-recognized 
Product AB to certify composite wood products pursuant to TSCA Title 
VI. As discussed in Unit III.B.2.f.i., EPA will instead require in this 
final rule that TPCs apply directly to EPA for recognition or for CARB-
approved TPCs to provide EPA with documentation from CARB that 
specifies a TPC's eligibility for reciprocity as discussed in Unit 
III.B.5.b. TPCs must apply for EPA TSCA Title VI recognition 
electronically through the EPA CDX via http://cdx.epa.gov (discussed in 
more detail in Unit III.B.6.) or, if notified by EPA that the CDX 
portal is not available, via an online application on the EPA Web site 
found at: http://www.epa.gov/formaldehyde/.
    i. TPC accreditation requirements. As discussed in Unit 
III.B.2.f.ii., candidate TPCs must be accredited to ISO/IEC 17065:2012 
(E), and the accreditation must include a scope of accreditation to 40 
CFR part 770--Formaldehyde Standards for Composite Wood Products.
    EPA proposed that TPCs have experience in conducting inspections of 
panel producers pursuant to ISO/IEC 17020:1998(E). Some commenters 
noted that the proposal was unclear on whether TPCs needed to be 
accredited to ISO/IEC 17020:1998(E) or be in conformance with ISO/IEC 
17020:1998(E). Other commenters stated that accreditation to ISO/IEC 
17020:2012(E) is duplicative because inspection qualifications and 
responsibilities for TPCs and their sub-contractors are already 
incorporated into the required ISO/IEC 17065:2012(E) accreditation. 
Based on these comments, EPA is requiring in this final rule that EPA 
TSCA Title VI TPCs be in conformance with (but not necessarily 
accredited to) ISO/IEC 17020:2012(E), as is required under ISO/IEC 
17065:2012(E) section 6.2.1. EPA TSCA Title VI TPCs must also be able 
to conduct inspections of panel producers and their products and 
properly train and supervise inspectors to inspect in conformance with 
ISO/IEC 17020:2012(E).
    EPA also proposed that TPCs have experience operating or using 
laboratories that are accredited to ISO/IEC 17025:2005(E). EPA did not 
receive comments on this point and is therefore finalizing this 
requirement as proposed. Also, as previously noted, the TPCs' scope of 
accreditation to ISO/IEC 17025:2005(E) must include 40 CFR part 770--
Formaldehyde Standards for Composite Wood Products and the formaldehyde 
test methods ASTM E1333-10 and ASTM D6007-02, if used.
    ii. TPC recognition periods. EPA proposed that TPCs would be 
required to renew their application to EPA-recognized ABs every three 
years. EPA requested and received comments on the costs and benefits of 
a three-year renewal period for recognition under the TSCA Title VI 
Program as compared to a two-year renewal period (as under the CARB 
ATCM). EPA also requested and received comments on whether the proposed 
requirement for EPA TSCA Title VI ABs to audit TPCs and their 
laboratories every two years should be extended to every three years to 
align with the proposed three-year TPC recognition period.
    Many commenters supported the proposed renewal periods of three 
years for TPCs. Other commenters also stated that the renewal periods 
should be in line with intervals of assessments as required by the ISO 
standards. The two-year renewal period is consistent with the maximum 
amount of time allowed between on-site assessments under ISO/IEC 
17011:2004(E) and is also is consistent with ISO/IEC 17065:2012(E). In 
an effort to harmonize this final rule with the existing CARB 
regulations and better align with the on-site assessment requirements 
of the ISO standards highlighted above, EPA is requiring that all EPA 
TSCA Title VI TPCs submit a renewal application to EPA, or 
documentation to renew their eligibility for reciprocity every two 
years for EPA recognition and to have a reassessment or surveillance 
on-site assessment conducted by their EPA TSCA Title VI AB every two 
years to maintain their accreditation.
    iii. Experience in composite wood products. EPA proposed that TPCs 
must have experience in the composite wood products industry because 
understanding the processes used by panel producers to produce 
composite wood products is crucial for the EPA TSCA Title VI TPC to 
adequately inspect panel producers. EPA requested comment on whether 
EPA should require that a TPC have experience with the specific type of 
composite wood product that it would certify or if experience with one 
type of product is sufficient to certify all types of composite wood 
product.
    Several commenters stated that experience with one product type is 
sufficient to certify all composite wood products because the TPC's 
objectives to certify compliance with emission standards and 
correlation to quality control test methods are independent of product 
type. EPA agrees with the commenters, and will require in this final 
rule that TPCs have experience with at least one type of composite wood 
product. EPA is also requiring each TPC applicant to state its 
experience in the composite wood products industry and include the 
specific type of composite wood product(s) that it intends to certify.
    iv. Agent for service requirement for EPA TSCA Title VI TPCs. In 
order to facilitate communication between EPA and TPCs, EPA proposed to 
require TPCs to designate an agent for service in the United States in 
their applications. EPA received several comments regarding the agent 
for service requirement for TPCs. As discussed in Unit III.B.2.d., for 
EPA-recognized ABs, an agent for service is necessary for legal matters 
and is available at a relatively low cost from private firms that 
specialize in this role. Therefore, the Agency is retaining this 
requirement in this final rule. However, in response to public 
comments, EPA clarifies that the requirement permits EPA TSCA Title VI 
ABs and TPCs to share an agent for service.
    v. Experience in formaldehyde testing. The proposed TPC 
qualification

[[Page 89695]]

requiring TPC laboratories to have experience in performing or 
verifying formaldehyde emissions testing on composite wood products has 
been retained in this final rule. The proposed requirement for TPC 
laboratories to have experience with test method ASTM E1333-10 and 
experience evaluating correlation between test methods has been 
modified in the final rule. Based on public comment, candidate TPCs may 
provide a description of experience with test method ASTM E1333-10 and/
or ASTM D6007-02, if used, and experience evaluating correlation 
between test methods when applying for EPA recognition into the TSCA 
Title VI program. Note, in a situation where a TPC is only providing a 
description of experience with ASTM D6007-02, the TPC must be 
contracting testing with a lab that has a large chamber and experience 
with ASTM E1333-10.
    b. Denied TPC applicants. Under this final rule, if EPA denies a 
TPC's application for recognition in the EPA TSCA Title VI Third-Party 
Certification Program for failure to submit a complete application or 
for being unqualified, EPA will notify the TPC of the legal and factual 
basis for the denial, and actions, if any, which the affected TPC may 
take to receive recognition in the future.
    EPA maintains the authority to deny recognition of CARB-approved 
TPCs who apply to be recognized through reciprocity (as discussed in 
more detail in Unit III.B.5.b.) in the EPA TSCA Title VI Third-Party 
Certification Program if the Agency believes the TPC is not qualified 
according to this rule.
    c. Responsibilities once a TPC is recognized into the EPA TSCA 
Title VI Third-Party Certification Program. EPA proposed that once an 
applicant is recognized as a TPC under the TSCA Title VI Third-Party 
Certification Program, the EPA-recognized TPC would then certify panel 
producers' composite wood products under the requirements of TSCA Title 
VI and its implementing regulations.
    In the proposed rule, EPA also required that EPA-recognized TPCs 
review and approve, when appropriate, applications from panel producers 
for reduced testing or exemption from third-party certification 
requirements for products made with ULEF or NAF-based resins. Under the 
CARB ATCM, CARB, not the TPCs, reviews and approves these applications. 
Several commenters opposed TPCs reviewing and approving applications 
for NAF and ULEF approvals. Their concerns include potential conflicts 
of interest, potential for inconsistency among TPC reviews, and the 
potential for inadvertent misuse of confidential business information. 
One commenter suggested that EPA conduct reviews and issue approvals, 
accept all current CARB approvals, and work with CARB as an alternate 
approval authority going forward. CARB requested reciprocity in its 
comments. Another commenter said that EPA may want to grandfather 
existing resin approvals made by CARB and continue to coordinate 
decisions with CARB.
    To address these concerns, in this final rule, under the terms of 
reciprocity with CARB, EPA will accept CARB's NAF and ULEF approvals, 
as long as CARB's requirements for products made with NAF-based and 
ULEF resins are at least as stringent as EPA's requirements, which EPA 
affirms is currently true. Should EPA determine that CARB's 
requirements are no longer at least as stringent was EPA's 
requirements, then EPA will publish a notice in the Federal Register 
announcing EPA's determination.
    Alternatively, panel producers can apply to an EPA TSCA Title VI 
TPC for NAF and ULEF approvals. EPA also notes that the provisions 
requiring TPC impartiality are applicable to TPCs reviewing and 
approving NAF/ULEF applications (see Unit III.B.7.). EPA believes the 
ability to apply to CARB for NAF and ULEF approvals, the dynamic market 
amongst TPCs, and the impartiality requirements for TPCs, mitigate any 
concerns about potential TPC conflicts of interest. As proposed, EPA is 
also separately requiring EPA TSCA Title VI TPCs to review and approve 
or deny applications from panel producers for reduced quality control 
testing for particleboard and medium-density fiberboard under the 
provisions discussed in Unit G.
    EPA proposed to require that EPA-recognized TPCs inspect and 
provide an on-site audit of panel producers and their records at least 
quarterly and conform to ISO/IEC 17020:1998(E) (subsequently updated to 
ISO/IEC 17020:2012(E)) when conducting their inspections. EPA requested 
comment on whether enhanced testing or inspection requirements should 
be required where a TPC finds that a panel producer has failed quality 
control or quarterly tests at a certain frequency, or upon other 
circumstances. Considering comments received on this issue, in this 
final rule, EPA will not require additional enhanced testing. Instead, 
it would be most appropriate for each EPA TSCA Title VI TPC to 
establish its own process for determining the conditions that warrant 
enhanced testing and/or inspections as needed for panel producers with 
failed quality control or quarterly tests. However, this final rule 
requires that EPA TSCA Title VI TPCs notify panel producers and EPA 
within 72 hours of a failed quarterly test result. An EPA TSCA Title VI 
TPC must also notify EPA within 72 hours of becoming aware that a panel 
producer has exceeded its established quality control limit (QCL) for 
two or more consecutive quality control tests. EPA is not requiring 
TPCs to notify EPA each time a QCL is exceeded because isolated QCL 
exceedances, where potentially non-complying products have not left the 
panel producer, can be addressed by the EPA TSCA Title VI TPC and the 
panel producer without EPA intervention. Additionally, the panel 
producer will have to comply with the non-complying lot provisions of 
40 CFR 770.22 with respect to any lot represented by a sample result 
that exceeds the applicable formaldehyde emission standard or indicates 
that the lot may exceed the applicable standard. Where multiple 
products are grouped in a single product type for testing, this 
includes all products in the group represented by the sample.
    In the proposed rule, an EPA-recognized Product AB would supply the 
TPC with a unique TPC identification number once it has been accredited 
for TSCA Title VI purposes. Under this final rule, EPA TSCA Title VI 
TPCs will be supplied with a TPC identification number by EPA unless 
the TPC is CARB-approved and received EPA TSCA Title VI recognition 
through reciprocity. In this case, CARB-approved TPCs will use their 
CARB-issued TPC identification numbers. EPA TSCA Title VI TPCs must 
provide their identification numbers to panel producers so that the 
panel producers can include the TPC number on the label of their 
certified products and in their records.
    EPA proposed to require EPA-recognized TPCs to maintain various 
records in electronic form for three years. EPA received several 
comments pertaining to the proposed three-year recordkeeping 
requirement. Two commenters contended that EPA should maintain CARB's 
two-year recordkeeping period for TPCs, one commenter supported 
recordkeeping beyond three years, and another commenter was supportive 
of EPA's proposed three-year record retention period for TPCs.
    Under this final rule, EPA is maintaining its requirement that 
records be held in electronic form for three years. EPA has determined 
that certain records will assist EPA in monitoring compliance with the 
emission standards and other provisions. The records required are 
largely the same as proposed, but have been modified to

[[Page 89696]]

better align with the CARB ATCM and are listed in Sec.  
770.7(c)(4)(vii) of this rule.
    EPA proposed to require EPA-recognized TPCs to submit an annual 
report to EPA and the EPA-recognized AB that accredits the TPC. Under 
this final rule, EPA will not require that this report be provided to 
the TPC's AB but will still require the EPA-recognized TPCs to submit 
these reports to EPA through the EPA CDX database. (Ref. 61). If the 
CDX database becomes unavailable for any reason, EPA will provide an 
alternate electronic reporting method and notify the EPA-recognized 
TPCs of how to access the alternate method. In addition, the 
requirements of this report have been, for the most part, modified to 
align with CARB's annual report requirements for consistency between 
the two programs and to respond to public comments. Aligning with 
CARB's annual report requirements expands the number of data elements 
beyond what EPA specifically proposed. However, adding these data 
elements will streamline annual reporting requirements for EPA-
recognized and CARB-approved TPCs by allowing the acceptance of a 
single annual report by both regulatory programs. Under this final 
rule, EPA TSCA Title VI TPCs must electronically submit an annual 
report on or before March 1st of each year for TPC services performed 
during the previous calendar year. The required reporting elements of 
the annual report are listed at Sec.  770.7(c)(4)(viii) of this rule.
    d. TPC Interlaboratory Comparison. EPA proposed to require EPA-
recognized TPCs to participate annually in an EPA-recognized 
interlaboratory comparison program or, if developed, a proficiency 
testing program. EPA requested comment on: Ways it might integrate with 
CARB's interlaboratory comparison program; the frequency of 
interlaboratory comparisons; what criteria should be used to determine 
the adequacy of performance; how and whether participating Laboratory 
ABs could administer an interlaboratory comparison or proficiency 
testing program for the TPCs that it accredits; and the cost of such a 
program.
    Commenters supported either CARB or EPA conducting an 
interlaboratory comparison program for TPCs in both the state and 
federal programs. One commenter also provided suggestions on how to 
strengthen the existing CARB interlaboratory comparison program. In 
addition, EPA received several comments regarding the frequency of 
interlaboratory comparisons and/or proficiency testing. Most commenters 
felt that an annual interlaboratory comparison was sufficient to meet 
EPA and CARB's goal that laboratories regularly demonstrate their 
proficiency at testing formaldehyde emissions of composite wood 
products. Three commenters also supported the use of a standard 
reference material as a possible alternative material for using in 
interlaboratory comparison or similar testing.
    Based on comments received, in this final rule, EPA is requiring 
all EPA TSCA Title VI TPC laboratories, of both CARB TPCs and non-CARB 
TPCs, to participate in the CARB interlaboratory comparison for 
formaldehyde emissions from composite wood products when offered. CARB 
intends to conduct the interlaboratory comparisons no less frequently 
than every two years. EPA has determined that requiring participation 
in the CARB interlaboratory comparison on a regular basis is necessary 
to verify that TPC laboratories under TSCA Title VI are able to 
properly measure formaldehyde emissions from composite wood products. 
EPA's decision to utilize the pre-existing CARB interlaboratory 
comparison program under the EPA TSCA Title VI Third-Party 
Certification Program is supported by public comments and will allow 
for one consolidated interlaboratory comparison program and further 
establish consistency between the CARB and federal regulatory programs. 
EPA will consult on a regular basis with CARB regarding the EPA TSCA 
Title VI TPCs' interlaboratory results, any other testing-related 
information, and the ongoing operation of the CARB interlaboratory 
comparison testing program. EPA will also require TPCs to submit to EPA 
the results compared with the mean of any interlaboratory comparison 
for formaldehyde emissions in which the TPC laboratory participates 
other than the CARB interlaboratory comparison or, if available, the 
TPC laboratory results from an EPA-recognized proficiency testing 
program. EPA retains the authority to make its own independent decision 
on the performance of an EPA TSCA Title VI TPC under the CARB 
interlaboratory comparison or any other future EPA-recognized 
interlaboratory comparison or proficiency testing program. EPA also 
retains the authority to derecognize the CARB interlaboratory 
comparison or any other future EPA-recognized interlaboratory 
comparison or proficiency testing program if it no longer meets the 
needs of the EPA TSCA Title VI Program.
    Currently no reference material for formaldehyde emission is 
available. If a reference material for formaldehyde is developed and 
then approved by EPA, EPA will consider incorporating the use of that 
reference material into an EPA-recognized interlaboratory or 
proficiency testing program. As supported by public comment, if such an 
EPA-recognized interlaboratory or proficiency testing program by means 
of a reference material becomes available, EPA would also consider 
initiating a rulemaking to require any EPA-recognized third-party 
proficiency testing provider to be accredited to ISO/IEC 17043:2010(E).
    e. Removal, reaccreditation and reapplication process for third-
party certifiers. As proposed, if an EPA-recognized TPC loses its 
accreditation or discontinues participation in the EPA TSCA Title VI 
Third-Party Certification Program for any reason, it would be 
responsible for promptly notifying EPA and all panel producers to which 
it provides TSCA Title VI certification services. EPA proposed that 
panel producers that used the TPC to certify their products would need 
to enlist another EPA-recognized TPC to certify their products within 
90 calendar days. This 90 day grace period would not be afforded if 
their EPA-recognized TPC loses its accreditation or discontinues 
participation in the program for fraud or providing false or misleading 
statements, or any reason that implicates a particular panel producer 
in a violation of TSCA Title VI or its implementing regulations.
    EPA requested comment on whether it provided adequate time in the 
proposal for a panel producer to seek an alternate certification should 
their TPC lose its EPA recognition under TSCA Title VI. Based on the 
public comments, this final rule allows panel producers 90 calendar 
days to obtain a new EPA TSCA Title VI TPC in the event that their 
previous TPC loses its accreditation or recognition in the TSCA Title 
VI Program as long as they remain in compliance with all other relevant 
aspects of the rule. Panel producers who are not able to obtain a new 
EPA TSCA Title VI TPC within 90 calendar days may request from EPA a 90 
calendar day extension, for good cause. If the panel producer does not 
obtain a new TPC within 90 calendar days, or if granted an extension by 
EPA, 180 calendar days, composite wood products produced thereafter are 
not certified and may not be sold, supplied or offered for sale.
    4. Enforcement, suspension and revocation. a. Enforcement under 
TSCA sections 15-17. EPA proposed to conduct inspections of 
participating TPCs and ABs and issue subpoenas according to the 
requirements for recognition and/or pursuant to the

[[Page 89697]]

provisions of TSCA section 11 (15 U.S.C. 2610) to ensure compliance 
with TSCA Title VI and the regulations promulgated thereunder. EPA 
proposed to exercise the authority to withdraw from a recognition 
agreement with an EPA-recognized AB and pursue penalties under TSCA 
section 15 (15 U.S.C. 2614) for any violation of TSCA Title VI or the 
regulations promulgated thereunder. In addition to an administrative or 
judicial finding of violation, EPA proposed the grounds for withdrawing 
from a recognition agreement and/or pursuing an enforcement action 
against an EPA-recognized AB would include submitting false information 
to EPA, falsifying records, or failing to comply with program 
requirements. EPA is finalizing these enforcement provisions as 
proposed.
    b. Suspension, revocation and modification of TPC and AB 
recognition. EPA proposed to exercise the authority to suspend, revoke, 
or modify a TPC's TSCA Title VI recognition, with or without the 
participation of the EPA-recognized AB that provided the accreditation, 
if the EPA-recognized TPC fails to comply with TSCA Title VI or the 
regulations promulgated thereunder. EPA proposed that any violation of 
TSCA Title VI or the regulations promulgated thereunder would also be a 
prohibited act under TSCA section 15. Proposed grounds for suspending, 
modifying, or revoking an EPA TSCA Title VI TPC's recognition included 
submitting false information to EPA or an AB, falsifying records, or 
failing to comply with program requirements.
    EPA proposed that should an EPA-recognized AB identify a non-
conformity or discrepancy with the EPA-recognized TPC's implementation 
of one of the ISO standards via an internal audit or other means, that 
TPC must take remedial action within the timeframe specified by the AB 
or the time specified in the TPC's quality management plan. Timely 
remedial action would not preclude enforcement actions by EPA for non-
conformities or discrepancies that constitute violations of TSCA Title 
VI or these implementing regulations. Prior to withdrawal from a 
recognition agreement with an EPA-recognized AB, or the suspension, 
revocation, or modification of an EPA TSCA Title VI TPC's recognition, 
EPA proposed to provide notification to the affected AB or TPC of the 
action.
    EPA proposed that an individual or organization may request a 
hearing prior to the final action. EPA would appoint an impartial 
official of EPA as Presiding Officer to conduct a hearing within 90 
calendar days of the request. The Presiding Officer would consider all 
relevant evidence, explanations, comments, and arguments submitted and 
notify the affected entity in writing within 90 calendar days of 
completion of the hearing of his or her decision and order. EPA 
clarifies that, depending on the circumstances, a hearing need not 
involve real-time exchanges and may be conducted through written 
correspondence, for example.
    EPA proposed that if it determines that the public health, 
interest, or welfare warrants immediate action to suspend the 
recognition of an AB or a TPC prior to the opportunity for a hearing, 
it would notify the affected AB or TPC of its right to request a 
hearing on the immediate suspension within 15 calendar days of the 
suspension taking place and the procedures for the conduct of such a 
hearing.
    EPA proposed that any notice, decision, or order issued by EPA in 
response to a hearing, any transcript or other verbatim record of oral 
testimony, and any documents filed in response to a hearing will be 
available to the public, except as otherwise provided by TSCA section 
14. Any such hearing at which oral testimony is presented will be open 
to the public, except that the Presiding Officer may exclude the public 
to the extent necessary to allow presentation of information which may 
be entitled to confidential treatment under TSCA section 14.
    Commenters pointed out that EPA cannot revoke a TPC's accreditation 
but rather its recognition in the EPA TSCA Title VI Third-Party 
Certification Program. As discussed in Unit III.B.1.a, EPA agrees that 
recognition is the correct term. In this final rule EPA may revoke a 
TPC's recognition in the EPA TSCA Title VI Third-party Certification 
Program for the conditions mentioned previously. EPA is otherwise 
finalizing these provisions for suspension, modification and revocation 
as proposed.
    5. CARB-approved TPC transitional period and reciprocity. EPA 
proposed that CARB-approved TPCs have one year after the promulgation 
of the TSCA Title VI implementing regulations to become accredited by 
an AB that has entered into a recognition agreement with EPA. The 
Agency also proposed that for one year after promulgation of the final 
rule CARB-approved TPCs would be allowed to carry out certification 
activities under TSCA Title VI provided that they were compliant with 
all other aspects of TSCA Title VI and the regulations promulgated 
thereunder. EPA requested comment on ways to better synchronize the 
timing for the TSCA Title VI recognition period for existing CARB-
approved TPCs. EPA also asked whether the TPCs should be required to 
obtain accreditation from an EPA-recognized AB no later than one-year 
after the first EPA-recognized AB enters into a recognition agreement 
with the EPA under the TSCA Title VI.
    EPA agrees with comments received that it could take longer than 
one year for CARB TPCs to align with the EPA requirements including 
being accredited by an AB that has entered into a recognition agreement 
with EPA. EPA will therefore allow for a two-year transition period in 
this final rule.
    a. Transitional Period for CARB-Approved TPCs. Under this final 
rule, a TPC approved by CARB may certify composite wood products under 
TSCA Title VI for a two-year transitional period that begins February 
10, 2017 so long as the TPC remains approved by CARB and complies with 
all aspects of the final rule other than the accreditation requirements 
under this rule.
    Existing CARB TPCs and CARB TPCs approved during the transition 
period must provide panel producers with their TPC number issued by 
CARB. The annual report must be provided to CARB and EPA during the 
two-year transitional period. Notifications to EPA must also be 
provided during the two-year transition period.
    After the two-year transition period, CARB-approved TPCs may 
continue to certify composite wood products under TSCA Title VI 
provided the TPC maintains its CARB approval, follows all the 
requirements under this part (including the accreditation 
requirements), submits to EPA documentation from CARB supporting their 
eligibility for reciprocity and has received EPA recognition as an EPA-
recognized TPC.
    b. Reciprocity for CARB TPCs. EPA received several comments that 
asked EPA to align with the CARB program and accept CARB-approved TPCs 
into the EPA program. CARB suggested that EPA enter into a mutual 
recognition agreement with them to accept CARB TPC approvals through 
reciprocity such that CARB TPC approvals would be accepted by the EPA 
without need for further review.
    EPA has worked closely with CARB to establish a means for 
reciprocity and will enter into a memorandum of agreement that recites 
the requirements in this rule for CARB-approved TPCs to receive EPA 
recognition through reciprocity and the process that EPA and CARB will 
use to implement reciprocity. To be eligible to obtain EPA recognition 
through reciprocity, CARB-

[[Page 89698]]

approved TPCs must meet all of the TPC qualifications discussed in Unit 
III.B.3.a. and provide EPA with documentation from CARB that specifies 
their eligibility for reciprocity via the EPA CDX at http://cdx.epa.gov. In the event that CDX becomes unavailable, EPA will 
provide an alternate electronic submission method and inform TPCs how 
to access the alternate method at http://www.epa.gov/formaldehyde. EPA 
maintains the authority to deny recognition of CARB-approved TPCs who 
apply to be recognized through reciprocity in the EPA TSCA Title VI 
Third-Party Certification Program if the Agency believes the TPC is not 
qualified under this rule. An overview of the EPA TSCA Title VI Third-
Party Certification Program and CARB TPC reciprocity is shown in 
Illustration 2.
BILLING CODE 6560-50-P
[GRAPHIC] [TIFF OMITTED] TR12DE16.001

BILLING CODE 6560-50-C
    6. Electronic reporting. The Government Paperwork Elimination Act 
(GPEA), 44 U.S.C. 3504 note, provides that, when practicable, Federal 
organizations use electronic forms, electronic filings, and electronic 
signatures to conduct official business with the public. EPA's Cross-
Media Electronic Reporting Regulation (CROMERR) (40 CFR part 3) (Ref. 
62), provides that any requirement in title 40 of the Code of Federal 
Regulations (CFR) to submit a report directly to EPA can be satisfied 
with an electronic submission that meets certain conditions once the 
Agency publishes a regulation that an electronic document submission 
process is available for that requirement. In addition, the Paperwork 
Reduction Act (PRA) requires Federal agencies to manage information 
resources to reduce information collection burdens on the public;

[[Page 89699]]

increase program efficiency and effectiveness; and improve the 
integrity, quality, and utility of information to all users within and 
outside an agency, including capabilities for ensuring dissemination of 
public information, public access to Federal Government information, 
and protections for privacy and security (44 U.S.C. 3506). Section 2 of 
TSCA expresses the intent of Congress that EPA carry out TSCA in a 
reasonable and prudent manner, and in consideration of the impacts that 
any action taken under TSCA may have on the environment, the economy, 
and society (15 U.S.C. 2601). Electronic reporting was not available 
when TSCA was enacted nor when several underlying reporting 
requirements were subsequently promulgated by EPA. EPA believes that it 
is now reasonable and prudent to manage and leverage its information 
resources, including information technology (IT), to require the use of 
electronic reporting in the implementation of certain TSCA provisions. 
Electronic reporting can reduce burden and costs for the regulated 
entities by eliminating the costs associated with printing and mailing 
this information to EPA, while at the same time improving EPA's 
efficiency in reviewing submitted information and making decisions.
    EPA proposed requiring that information reported to EPA from TPCs 
and ABs be reported electronically through EPA's CDX. EPA requested 
comment on whether it should require mandatory electronic reporting. 
Most commenters were not opposed to electronic reporting and some 
commenters were amenable to electronic reporting but did not want it 
required. One commenter also contended that, no matter what form of 
reporting is eventually utilized, all proprietary business information 
should be kept confidential by the EPA.
    In this final rule, EPA will require TPCs and ABs to report 
electronically because such a requirement streamlines the reporting 
process and reduces the administrative costs associated with 
information submission and recordkeeping. In light of the limited 
number of reporting entities (TPCs and ABs) participating in the TSCA 
Title VI program, the most cost-effective and efficient solution for 
all concerned is a single database developed by EPA.
    Most of the information requested in the reporting requirements of 
these collections is not of a confidential nature. Nonetheless, the 
application is designed to support acceptance of TSCA confidential 
business information (CBI) by providing a secure environment that meets 
Federal standards.
    While information collected under TSCA may be entitled to 
confidential treatment if it meets the standard for Exemption 4 in the 
Freedom of Information Act (FOIA), 5 U.S.C. 552(b)(4), TSCA section 14 
provides that health and safety studies and data derived from health 
and safety studies, are not entitled to confidential treatment, 
irrespective of the Exemption 4 standard, unless the release of data 
derived from such studies would disclose processes used in the 
manufacturing or processing of a chemical substance or mixture or, in 
the case of a mixture, would disclose the portion of the mixture 
comprised by any of its chemical substances. EPA has determined that 
certain information that is submitted by TPCs in their annual reports 
and notifications is not eligible for treatment as CBI, irrespective of 
the Exemption 4 standard, because that information is health and safety 
studies and data derived from health and safety studies. This includes 
information pertaining to the compliance status of a particular lot, 
batch, or shipment of composite wood. Quarterly test results, the test 
date, the panel producer and product tested, test method and test 
results cannot be claimed CBI. The ``product tested'' can be a general 
product description such as particle board of a certain thickness.
    TPCs and ABs will be able to submit CBI claims on behalf of 
themselves or their clients for the other information reported to EPA. 
CBI claims for information that is generally already publicly available 
(status of a TPC or AB's participation in the EPA TSCA Title VI Third-
Party Certification program, and the basic credentials and contact 
information for those entities) may be substantiated contemporaneously. 
This type of information is expected to typically be publicly available 
(e.g., on an entity's own Web site or marketing material), but in case 
there are exceptions EPA is allowing the opportunity to claim this 
information as CBI with contemporaneous substantiation. EPA notes that 
ABs and TPCs may use a business email and phone number, and write the 
descriptions of their credentials broadly so that it excludes 
information the entity considers to be confidential.
    The Frank R. Lautenberg Chemical Safety for the 21st Century Act 
(Pub. L. 114-182) was signed into law on June 22, 2016, and became 
immediately effective. Section 14(c) now requires a supporting 
statement and certification for confidentiality claims asserted after 
June 22, 2016. The final rule contains one minor change to reflect the 
new statutory requirements for asserting confidentiality claims. EPA is 
requiring a statement and certification consistent with the section 
14(c)(1)(B) statement (and with a related certification requirement in 
section 14(c)(5) of the revised statute) to meet the new statutory 
requirements. While this change was not discussed in the proposed rule, 
EPA finds there is good cause to make this change without notice and 
comment. Notice and comment are unnecessary because the new statement 
is required by statute, and EPA anticipates no significant effect of 
the change on companies reporting under the rule or on the public in 
general.
    To submit information via the CDX, each AB and TPC must designate 
an individual representative (registrant) who will then register with 
the CDX system at http://cdx.epa.gov. The registration process includes 
completing an electronic signature agreement, preparing a data file for 
submission, agreeing to the Terms and Conditions of CDX, providing 
information about the submitter and organization, selecting a user name 
and password, and following the procedures outlined in the guidance 
document for CDX available at: https://cdx.epa.gov/Content/Documents/CDX_Quick_User_Guide.pdf. (Ref. 63). The registrant must select a role 
and complete an electronic signature agreement either through 
electronic validation or through wet ink signature.
    To streamline reporting, CARB may, at a future date, offer their 
approved TPCs the choice of submitting the CARB annual report and other 
ongoing reporting obligations through the CDX electronic reporting 
database.
    7. Impartiality provisions for TPCs and ABs. EPA received comments 
from CARB that EPA should specifically state that a panel producer 
cannot be a TPC under the EPA program. EPA has determined that such a 
prohibition would be a useful clarification of the impartiality 
provisions of the ISO/IEC standards that EPA proposed to incorporate 
and is incorporating into this rule. Therefore, this final rule 
expressly prohibits a panel producer from also being a TPC. 
Additionally, as a result of a review of the impartiality provisions of 
the ISO/IEC standards in response to CARB's comment, EPA is specifying 
other impartiality requirements to highlight key portions of the ISO/
IEC standards that are incorporated by reference in the proposed and 
final regulations. In addition to requiring that a TPC not be a panel 
producer, a TPC is not allowed to be a laminated product producer, 
designer, distributor or retailer of

[[Page 89700]]

composite wood products, or have a financial interest in any of these 
entities. EPA is also requiring that employees and management personnel 
of a TPC involved in the panel producer review and product 
certification decision-making process cannot be involved in advocacy or 
consulting activities on behalf of the composite wood industry. To 
further document impartiality, EPA-recognized TPC and EPA-recognized AB 
management personnel and personnel involved in certifying products are 
required to commit in writing that they will receive no financial 
benefit from the outcome of certification testing. Finally, EPA is 
requiring that an EPA-recognized AB ensure that an accreditation 
decision regarding a TPC is made by persons different from those who 
conducted the assessment of the TPC. All of these points reflect 
provisions in the ISO/IEC standards that EPA believes are worth 
underscoring.

C. Formaldehyde Emission Standards

    TSCA Title VI establishes formaldehyde emission standards for 
composite wood products (hardwood plywood, particleboard, and medium-
density fiberboard) so that when they take effect on December 12, 2017, 
as discussed in Unit III.C., the standards are identical to the CARB 
ATCM Phase 2 emission levels. The emission standards will be 0.05 ppm 
formaldehyde for hardwood plywood, 0.09 ppm formaldehyde for 
particleboard, 0.11 ppm formaldehyde for medium-density fiberboard, and 
0.13 ppm formaldehyde for thin medium-density fiberboard. The statute 
does not give EPA authority to modify these emission standards.
    TSCA Title VI describes two emission standards for hardwood 
plywood, one for that made with a veneer core and the other for that 
made with a composite core. In the preamble to the proposed 
regulations, EPA argued that, because the two standards are the same, 
0.05 ppm formaldehyde, for implementing regulations taking effect after 
July 1, 2012, the 0.05 ppm limit should be applied to all composite 
wood products that meet the definition of hardwood plywood, regardless 
of the core type. Many commenters opposed this interpretation and urged 
EPA to be consistent with the CARB ATCM in this area. The CARB ATCM has 
a similar definition of hardwood plywood. It includes a variety of core 
types, but the CARB ATCM emission standards apply only to hardwood 
plywood made with a veneer core or a composite core. Thus, for example, 
hardwood plywood made with a lumber core or a hardboard core is not 
required to comply with the emission standards or the testing and 
certification requirements of the ATCM. EPA agrees with those 
commenters that recommended consistency with the CARB ATCM. In EPA's 
view, the better reading of TSCA Title VI is that it only imposes the 
hardwood plywood formaldehyde emission standard on hardwood plywood 
made with a veneer or a composite core. Therefore, EPA is promulgating 
a hardwood plywood emission standard that specifically applies only to 
hardwood plywood with either a veneer core or a composite core.

D. Product Certification in General

    Under this final rule, composite wood products that are sold, 
supplied, offered for sale, or manufactured (including imported) within 
the United States must be certified, unless they are specifically 
exempted by TSCA or excluded by this final rule. In general, this means 
that the formaldehyde emission levels from the composite wood products 
would have been demonstrated to be below the emission standards in TSCA 
Title VI. This demonstration would be through a combination of testing 
performed by an accredited TPC laboratory, and repeated on a quarterly 
basis, and more frequent quality control testing performed by the Panel 
Producer of the composite wood product, an accredited TPC laboratory, 
or a contract laboratory. Specific requirements for this testing are 
discussed in Unit III.E.
    EPA is requiring panel producers of composite wood products to 
apply to an EPA TSCA Title VI TPC for product certification, and to 
design and establish a quality control program, including testing, that 
is both approved by the TPC and specific to the panel producer. EPA has 
slightly different requirements for certification, depending on whether 
the panel producer has other product types that are already certified 
under the CARB ATCM or TSCA Title VI. For a panel producer that does 
not have any certifications from a CARB-approved TPC or an EPA TSCA 
Title VI TPC, or that is switching to a new TPC, the panel producer 
must provide to the TPC the panel producer's contact information, a 
copy of its quality control manual, contact information for its quality 
control manager, an identification of the specific products for which 
certification is requested and the resin system used, results from at 
least five quarterly and five quality control tests, a linear 
regression equation and correlation data, and results of an initial, 
on-site inspection by a TPC. For panel producers applying for 
certification of a new product type but that have previous product 
certifications from a CARB-approved TPC or an EPA TSCA Title VI TPC, 
the application must contain the panel producer's contact information, 
an identification of the specific products for which certification is 
requested and the resin system used, at least five quarterly and five 
quality control tests, a linear regression equation and correlation 
data, and a description of any changes in the panel producer's quality 
control manual and a copy of those changes. Regardless of whether panel 
producers are applying for certification of a new product type, the 
test results must demonstrate an adequate correlation between the 
quality control test results and the TPC's quarterly test results as 
described in Unit III.E. Test results must also indicate that the 
formaldehyde emissions of the products are below the emission standards 
established by TSCA Title VI as discussed in greater detail in Unit 
III.C. The initial on-site inspection must demonstrate that the panel 
producer has the required quality control and quality assurance 
procedures in place to ensure that the products will continue to meet 
the emission standards. Multiple products can be grouped into a single 
product type for certification; however, formaldehyde emissions test 
results must demonstrate that grouped products have similar 
formaldehyde emission characteristics and that their emissions fit the 
same correlation curve or linear regression. Uncertified product 
produced after the manufactured-by date cannot be sold, supplied, or 
offered for sale in the United States.
    EPA had proposed to require three months of quality control testing 
prior to certification but received numerous comments stating that this 
requirement was unnecessary, would create an undue delay in bringing 
new products to the market, and is not required by CARB. Commenters 
recommended that EPA's requirements for certification be consistent 
with the requirements in the CARB ATCM. EPA has decided to harmonize 
with the CARB ATCM by requiring correlation data and an initial on-site 
inspection conducted by the TPC, but not the proposed three months of 
testing. This is consistent with how products are being certified under 
the CARB ATCM and is sufficient to demonstrate that the panel producer 
is manufacturing products that meet the emission standard and has 
quality control procedures in place to ensure that the product will 
continue to meet the standards. Under this final rule, products 
currently certified by CARB-approved TPCs will be considered

[[Page 89701]]

certified for purposes of TSCA Title VI. However, as described in Unit 
III.B., EPA is allowing CARB-approved TPCs two years to become 
recognized by EPA under TSCA Title VI. Therefore, a panel producer 
whose TPC does not become recognized under TSCA Title VI in a timely 
manner would have to apply to an EPA-Recognized TPC to continue to make 
certified products after the manufactured-by date.

E. Formaldehyde Emissions Testing Requirements

    TSCA Title VI requires that composite wood products be measured for 
compliance with the statutory emission standards by quarterly tests 
pursuant to test methods ASTM E1333-96 (2002) or ASTM D6007-02 (Refs. 
39, 64). TSCA Title VI also requires that quality control tests be 
conducted pursuant to ASTM D6007-02, ASTM D-5582 (Ref. 65), or such 
other test methods as may be established by EPA through rulemaking. 
Under the statute, test results conducted using any test method other 
than ASTM E1333-96 (2002) must include a showing of equivalence by 
means that EPA must establish through rulemaking. Under TSCA Title VI, 
EPA must also establish, through rulemaking, the number and frequency 
of tests required to demonstrate compliance with the emission 
standards. This unit of the preamble discusses EPA's rulemaking on each 
of these statutory elements.
    1. General testing requirements. EPA is finalizing the testing 
requirements as proposed with a few minor changes to definitions and 
terms used in the requirements based on public comments.
    EPA received numerous comments on the proposed definitions of the 
terms ``product type,'' ``production line,'' ``lot,'' and the lack of 
definitions for the terms ``production run'' and ``batch.'' Many 
commenters were concerned that as proposed, every single batch or lot 
of product would need to be tested, and commenters stated that under 
the proposed definitions, producers of low volume specialty products 
would need to test more often than large volume producers. Therefore, 
EPA has made some changes to these definitions and to the terms used in 
the testing requirements to clarify that products with similar 
formaldehyde emissions can be grouped for testing purposes (both 
quality control testing and quarterly testing). EPA is adding a 
definition of the term ``resin system''. EPA is changing the definition 
of ``lot'' to be consistent with the definition in the CARB ATCM. In 
addition, EPA is no longer using the term ``batch'' as it was redundant 
with use of the term ``lot'' in the proposed rule and was confusing. 
EPA is modifying the definition of the term ``production line'' 
slightly to be consistent with use of the term not only in the 
particleboard and medium density fiberboard industry, but also the 
hardwood plywood industry. In addition, EPA is no longer using the term 
``production run.''
    EPA is finalizing as proposed the requirement that entities 
conducting formaldehyde testing must use the procedures, such as 
testing conditions and loading ratios, specified in the method being 
used. EPA is also finalizing the requirement that all equipment used in 
formaldehyde testing be calibrated and otherwise maintained and used in 
accordance with the equipment manufacturer's instructions. EPA received 
numerous public comments supporting these requirements. EPA is also 
finalizing the requirement that all panels be tested in an unfinished 
condition, prior to the application of a finishing or topcoat.
    a. Quarterly testing requirements. EPA proposed to require that 
accredited TPCs conduct the quarterly tests required by TSCA Title VI. 
EPA is finalizing this requirement essentially as proposed except to 
clarify that the quarterly testing must be overseen by an EPA TSCA 
Title VI TPC but that the testing can be conducted by an accredited 
laboratory, owned or operated by a TPC or an accredited contract 
laboratory, which this final rule will refer to as a ``TPC 
laboratory.'' The statute requires these tests to be performed using 
ASTM E1333-96 (2002) or, upon a showing of equivalence as discussed in 
this Unit, ASTM D6007-02 (Refs. 39, 64). Under the authority provided 
by TSCA section 601(d)(5), EPA is incorporating ASTM E1333-10 into the 
final rule's testing requirements, rather than the 2002 version (Ref. 
43). EPA is aware that these test methods and several other standards 
referenced in this final rule have been updated and plans to substitute 
successor standards after public notice and opportunity for comment, as 
appropriate.
    Under the final rule, TPC laboratories must test randomly chosen 
samples from a single lot that is ready for shipment by the panel 
producer. Neither the top nor bottom composite wood product of a bundle 
can be selected because the emissions from these products may not be 
representative of the bundle. For particleboard and medium-density 
fiberboard, quarterly tests must be conducted on randomly selected 
samples of each product type (unless they qualify for reduced testing 
based on ULEF or NAF-based resin). For hardwood plywood, in 
consideration of a comment from HPVA that hardwood plywood producers 
may not be producing all of their product types when the TPC selects 
samples for testing, EPA is removing the requirement that samples be 
selected from the hardwood plywood product with the highest potential 
to emit formaldehyde and, instead, is requiring TPCs to randomly select 
samples for testing that are representative of the range of products 
produced by the panel producer.
    As discussed previously, EPA is allowing products to be grouped for 
quarterly and quality control testing. EPA is allowing EPA TSCA Title 
VI TPCs to approve the grouping of products with similar formaldehyde 
emission characteristics, based on correlation data as described in 
Unit III.E.
    EPA is finalizing the quarterly sample handling requirements as 
proposed, except for minor changes in use of the terms ``lot'' and 
``product type,'' and in the requirements for product grouping as 
discussed in this Unit. Samples must be closely stacked or air tight 
wrapped between the time of sample selection and the start of test 
conditioning. Samples will also have to be labeled as such, signed by 
the TPC, protected by cover sheets, and promptly shipped to the 
laboratory testing facility. EPA is finalizing the requirement that 
conditioning begin as soon as possible, but no more than 30 calendar 
days after production.
    b. Quality control test methods. With a showing of adequate 
correlation, EPA is allowing use of the following methods: ASTM D6007-
02, ASTM D5582, EN 717-2 (Gas Analysis Method) (Ref. 66), DMC (Dynamic 
Microchamber) (Refs. 67-68), EN 120 (Perforator Method) (Ref. 69), and 
JIS A 1460 (24-hr Desiccator Method) (Ref. 70). EPA has determined that 
these are appropriate methods for quality control testing based on 
public comments, CARB's evaluation and approval of these methods as 
alternative small scale test methods, and because test results using 
these methods have been demonstrated to have adequate correlations with 
test results using ASTM E1333-10. EPA is establishing these methods 
pursuant to section 601(b)(3)(A)(ii) for quality control testing. EPA 
does not endorse any particular method over others.
    Few comments were received in support of the addition of any other 
method, and the supporting commenters did not provide data or 
information

[[Page 89702]]

demonstrating equivalence or adequate correlation with ASTM E1333 that 
would justify their inclusion with the established methods. However, if 
EPA receives additional information and chooses to pursue adding 
another method, EPA will provide notice in the Federal Register and an 
opportunity for public comment as required by TSCA Title VI. EPA 
received several comments indicating that both the 2012 and 2007 user's 
manuals should be allowed for the Dynamic Microchamber Method; 
therefore, EPA is incorporating by reference both versions of the 
user's manuals.
    For each quality control test method that will be used to perform 
quality control testing for a particular panel producer, the EPA TSCA 
Title VI TPC must establish, in consultation with the panel producer, a 
QCL. The QCL is the quality control test value that is the correlative 
equivalent to the emission standard based on the ASTM E1333-10 method. 
The QCL is established by using a simple linear regression where the 
dependent variables (Y-axis) are the quality control test results and 
the independent variables (X-axis) are the ASTM E1333-10 test results.
    c. Quality control testing frequency for particleboard and medium-
density fiberboard that do not qualify for reduced testing based on 
ULEF or NAF-based resins. EPA is finalizing the quality control testing 
frequency for particleboard and medium-density fiberboard as proposed. 
Quality control tests will be required at least once per shift for each 
production line for each product type. Quality control tests must also 
be conducted whenever a product type production ends, whenever there is 
a significant change to resin formulation or use, when a decrease in 
press time of more than 20 percent occurs, and any time quality control 
employees have reason to believe that the panel being produced may not 
meet the requirements of the applicable standards.
    EPA is finalizing reduced quality control testing requirements as 
proposed for particleboard and medium-density fiberboard when the panel 
producer demonstrates consistent operations and low variability of test 
values. The panel producer must request approval from an EPA TSCA Title 
VI TPC. If approved, quality control testing will still have to occur 
at least once per 48-hour production period. As proposed, a 30 panel 
running average, consisting of the average of the results of the 30 
most recently sampled panels, must be maintained, and depending on 
whether the average remains two or three standard deviations below the 
designated QCL for the previous 60 consecutive days or more, testing 
frequency may be reduced to one test per 24-hour or 48-hour production 
period, respectively. An EPA TSCA Title VI TPC must approve a request 
for reduced quality control testing as long as the data submitted by 
the panel producer demonstrate compliance with the criteria and the TPC 
does not otherwise have reason to believe that the data are inaccurate 
or that the panel producer's production processes are inadequate to 
ensure continued compliance with the emission standards. Based on 
comments received, EPA is clarifying in this final rule that reduced 
testing privileges will continue unless revoked by a TPC as a result of 
an emission test exceedance or if testing indicates the panel producer 
no longer meets the eligibility requirements.
    d. Proposed quality control testing frequency for hardwood plywood 
that does not qualify for reduced testing based on ULEF or NAF-based 
resins. EPA is finalizing the frequency of quality control testing for 
hardwood plywood essentially as proposed. EPA is removing the proposed 
requirement to test per production line based on comments indicating 
that a hardwood plywood panel producer's production line can consist of 
several multiple-opening hot presses and glue spreaders that are often 
used to produce any and all of the panel producer's certified product 
types. EPA's quality control testing frequency requirements for 
hardwood plywood are generally similar to CARB's requirements and are 
likewise based on production volume. Hardwood plywood panel producers 
must generally test each product type weekly, with one to four tests 
being required based on total weekly hardwood plywood production by the 
panel producer. For some small specialty panel producers, even one 
quality control test per week per product type would be excessive. In 
order to address the inequity of requiring small manufacturers to 
conduct many more tests than required of large manufacturers for the 
same production volume, if weekly production of hardwood plywood at the 
panel producer is less than 100,000 square feet, but more than 100,000 
square feet is produced per month, EPA is requiring one quality control 
test per 100,000 square feet of each product type produced. If the 
panel producer produces less than 100,000 square feet of a particular 
product type per month, EPA is requiring only one quality control test 
of that product type per month when the product type is produced. For 
low volume producers, EPA had proposed to require testing per 
production run and per lot; however, numerous commenters pointed out 
that with the proposed definition of lot, this requirement could lead 
to low volume producers testing at a higher frequency than some high 
volume producers. By removing the requirement to test per production 
run and per lot, EPA is ensuring that the testing requirement will not 
be too burdensome for panel producers that manufacture low volumes of 
hardwood plywood. EPA is including the requirement of periodic testing 
to ensure that if a product type is produced several times per year, at 
less than 100,000 square feet, several quality control tests will be 
conducted. EPA is concerned that one test would not be sufficient to 
ensure compliance if there is a gap in production of more than one 
month. In addition, EPA is clarifying that product types not being 
manufactured during a particular week do not need to be manufactured 
just so that they can be tested.
    Based on supporting comments, EPA is also including a requirement 
for hardwood plywood panel producers to conduct quality control testing 
when certain changes are made to resin formulation or use, press time 
is reduced by more than 20%, or quality control employees have reason 
to believe that the panel being produced may not meet the requirements 
of the applicable standard. CARB included these requirements in the 
March 2014 mark-up of the ATCM (Ref. 51).
    EPA is not promulgating a reduced quality control testing provision 
for hardwood plywood similar to the provision for particle board and 
medium-density fiberboard because HPVA's comments indicated that such a 
provision is not necessary and because no commenters suggested criteria 
for qualification.
    2. Means of showing test method equivalence. EPA is finalizing the 
means of showing test method equivalence essentially as proposed. EPA 
proposed to require that equivalence between ASTM E1333-10 and any 
other test method used be demonstrated by the TPC for each laboratory 
used by the TPC or panel producer that is using the alternative method 
at least once each year or whenever there is a significant change in 
equipment, procedures, or the qualifications of testing personnel. In 
this final rule, EPA is clarifying that TPCs are responsible for 
demonstrating equivalence between ASTM E1333-10 and ASTM D6007-02 if 
the TPC laboratory uses ASTM D6007-02 for

[[Page 89703]]

quarterly or verification testing. In this final rule, EPA is allowing 
demonstration of equivalence to be reduced to at least once every two 
years once it has been established every year for three consecutive 
years. EPA is making this change to match CARB amendments to the ATCM 
currently under consideration by CARB (Ref. 51) and because CARB 
recommended this in submitted comments. In EPA's view, after a TPC has 
consistently demonstrated equivalence over a three year period, it is 
not necessary to require the TPC to continue to demonstrate equivalence 
every year.
    Many commenters indicated that EPA used the term ``equivalence'' 
incorrectly in the proposed rule when referring to comparison of ASTM 
E1333-10 and quality control test methods. EPA used the term 
``equivalence'' because it is the term used in TSCA Title VI. However, 
in this final rule, EPA will use the term ``correlation'' for the 
comparison of ASTM E1333-10 and quality control methods to meet the 
TSCA Title VI requirement of demonstrating equivalence. EPA is also 
clarifying in this final rule that the panel producer is responsible 
for ensuring that an adequate correlation has been demonstrated between 
the quality control methods that are used for testing its products 
annually or at least once every two years once it has been established 
for three consecutive years. Panel producers must also establish a new 
correlation whenever there is a significant change in equipment, 
procedures, or the qualifications of testing personnel. EPA is 
requiring that a new correlation needs to be established whenever a 
TPC's quarterly test results compared with the panel producer's quality 
control test results do not fit the previously established correlation. 
In addition, if a panel producer fails two quarterly tests in a row, a 
new correlation curve needs to be established. EPA did not receive any 
adverse comments regarding these requirements. The panel producer may 
use its own laboratory, a TPC laboratory, or any other laboratory for 
testing, but it is the panel producer's responsibility to ensure that 
this requirement is met. The panel producer's TPC (or the TPC's 
laboratory) will evaluate the quality control data and compare it with 
the quarterly test data to establish a linear regression equation and 
determine whether the correlation is adequate as described later in 
this Unit.
    One commenter stated that EPA should clarify that the equivalence 
is specific not only to the test methods, but also the equipment. EPA 
agrees and is therefore clarifying in this final rule that equivalence 
or correlation must be demonstrated for each testing apparatus. Several 
commenters indicated that EPA should not require the equivalence 
protocol when ASTM D6007-02 is used as a quality control method and 
that the equivalence protocol should only be required for TPCs or their 
contract laboratories using ASTM D6007-02 for quarterly testing. 
Therefore, EPA is clarifying in this final rule that when ASTM D6007-02 
is used for quality control testing, only a demonstration of 
correlation between ASTM D6007-02 and ASTM E1333-10 is required.
    EPA is requiring that equivalence be demonstrated in the ranges of 
formaldehyde concentrations that are representative of the emissions of 
the products that the TPC certifies. EPA is requiring a minimum of five 
comparison sample sets. In addition, EPA is allowing for flexibility in 
sampling and not requiring testing of nine specimens representing 
evenly distributed portions of an entire panel for demonstrating 
equivalence between ASTM D6007-02 and ASTM E1333-10 as is required in 
the CARB ATCM. Most commenters support this flexibility. For some types 
of panels, within panel variability is such that fewer specimens can be 
tested, but for other panels, testing of at least nine specimens will 
be needed. TPCs and panel producers are best able to determine the 
sampling and testing needed to account for within panel variability for 
a specific product type, and EPA is therefore allowing for flexibility 
in the distribution and number of specimens to require for the small 
chamber test comparison sample set. If laboratories have difficulty 
meeting the equivalence or correlation requirements, they may need to 
increase the number of samples. Specifics on how the equivalence 
demonstration must be performed can be found in 40 CFR 770.20(d)(1).
    For the purposes of meeting the TSCA Title VI requirement of 
demonstrating equivalence between ASTM E1333-10 and any quality control 
test method used for measuring formaldehyde emissions, EPA is requiring 
a demonstration of correlation. A linear regression with an acceptable 
correlation must be established, as defined by the correlation 
coefficient, or ``r'' value. As discussed in the preamble of the 
proposed rule, although correlation does not show that the test methods 
give equal results, it demonstrates whether a quality control test 
method can be used to adequately estimate the corresponding ASTM E1333-
10 test result. Therefore, if there is an acceptable correlation, the 
quality control test method can be used to estimate whether the product 
meets the emission standards. The correlation will be based on a 
minimum sample size of five data pairs and a simple linear regression 
where the dependent variable (Y-axis) is the quality control test value 
and the independent variable (X-axis) is the ASTM E1333-10 test value. 
EPA is finalizing the minimum acceptable correlation coefficients 
(``r'' values) for the correlation as proposed; they can be found at 
Sec.  770.20(d)(2) of this rule. The number of data pairs is 
represented by the letter ``n'' in the regulatory text. For example, 
correlations based on five data pairs have 3-degrees of freedom, and 
the correlation coefficient needs to be 0.878 or greater. As discussed 
in the proposed rule, because of the low emissions required for 
composite wood products, it may be necessary to include more than five 
data pairs and/or a range of products (with a suitable range in 
emissions, e.g., 0-0.1 ppm) in the testing to achieve acceptable 
correlation coefficients.
    3. Non-complying lots. EPA received many comments on the proposed 
provisions for non-complying lots. Nearly all commenters objected to 
EPA's proposed requirement that a panel producer retain product 
belonging to lots selected for sampling until the panel producer 
receives the test result. Commenters also made suggestions with regard 
to the definition of non-complying lot.
    EPA agrees with the commenter who noted that quality control tests 
are often not directly comparable to the emission standard and has 
modified the proposed definition so that the term ``non-complying lot'' 
means any lot of composite wood product represented by a quarterly test 
value or quality control test result that indicates that the lot 
exceeds the applicable standard for the particular composite wood 
product in Sec.  770.10(b). EPA is also clarifying in the definition 
that a quality control test result that exceeds the QCL is considered a 
test result that indicates that the lot from which the sample was taken 
exceeds the applicable standard. As proposed, the definition in the 
final rule also states that, in the case of a quarterly test value, 
only the particular lot from which the sample was taken would be 
considered a non-complying lot; lots produced after the previous 
quarterly test but before the lot from which the sample was taken would 
still be considered certified product. The final rule definition 
further states that future production of product type(s) represented by 
a failed quarterly test would not be considered certified and would 
have to be treated as a non-complying lot until the product type(s)

[[Page 89704]]

are re-qualified through a successful quarterly test.
    Most commenters did not support EPA's proposed requirement that 
panel producers retain product belonging to lots selected for sampling 
until the test results are received by the panel producer. EPA proposed 
this requirement to ensure that non-complying products do not end up in 
the stream of commerce. However, commenters thought that this would 
disrupt supply chains and be very costly for panel producers, 
particularly in the case of quarterly tests, because of the time 
involved in shipping and testing product. Commenters were concerned 
that panel producers would not have sufficient warehouse capacity to 
store lots associated with quarterly test samples until the test 
results are received. On the other hand, a trade association 
representing fabricators supported EPA's proposed requirement, stating 
that fabricators have been in the position of receiving non-complying 
product from panel producers but not being informed of the product's 
non-complying status until after the product had moved into downstream 
production. In EPA's view, holding lots until test results are received 
is the best way to ensure that non-complying product is not distributed 
in commerce, but EPA is also concerned about the impacts on industry 
supply chains from holding product, particularly product belonging to 
lots selected for quarterly testing. Most commenters supported a 
requirement to notify customers that had received products belonging to 
a non-complying lot. Many automatically assumed that panel producers 
would support their customers and address non-complying product that 
had been distributed before the test results were received, whether by 
recalling the product, by retesting samples retained by the panel 
producer, or by working with the customer to age or otherwise treat the 
product. The panel producer is responsible for non-complying product 
that it has inadvertently distributed, but EPA also understands the 
importance of allowing panel producers flexibility in managing their 
responsibility. Therefore, the final rule requires panel producers to 
notify, within 72 hours of receiving notice of a failing test result, 
any fabricators, distributors, or retailers that received non-complying 
product. The notification must inform the customer of the type of test 
failed and include a description of the composite wood product 
belonging to the non-complying lot, a statement that the non-complying 
product must be isolated from other composite wood products and must 
not be further distributed in commerce, and a description of the steps 
the panel producer intends to take with respect to the product. The 
rule further requires panel producers to either treat, retest, and 
certify the non-complying product while it remains in the possession of 
the customer or recall the non-complying product and dispose of it or 
treat, retest and certify it.
    EPA is generally finalizing the rest of the provisions relating to 
the handling of non-complying lots as proposed, except that several 
commenter suggestions for clarification were incorporated. Under this 
final rule, panel producers must segregate the non-complying lot from 
other product and products in non-complying lots must only be sold, 
supplied, or offered for sale in the United States if a test value that 
meets the applicable standard is obtained after the products are 
treated with scavengers to absorb excess formaldehyde, or treated 
through another process that reduces formaldehyde emissions, e.g. 
aging. Retesting must include at least one test panel selected from 
each of three separate bundles, with the selected panels being 
representative of the entire non-complying lot and not from the top or 
bottom of a bundle. The test panels may be selected from properly 
stored samples set aside by the panel producer for retest in the event 
of a failure. In order to recertify the lot, the average of all of the 
samples must test below the applicable standard. EPA also proposed to 
require panel producers to keep records of the disposition of non-
complying lots, including the specific treatment used and the 
subsequent test results demonstrating compliance. As pointed out by 
commenters, quality control test results are not always directly 
comparable with the emission standards, so the test result language in 
this section clarifies that results of a retest of a failed quarterly 
test must demonstrate compliance with the applicable emission standard, 
while results of a retest of a failed quality control test must be at 
or below the level that indicates that the product is in compliance 
with the emission standards. Finally, in response to commenter 
suggestions, EPA is promulgating a definition of the term ``scavenger'' 
that more precisely describes the role of scavengers in the context of 
this regulation.

F. Quality Assurance and Quality Control Requirements for Composite 
Wood Product Panel Producers

    Panel producers are responsible for ensuring that their products 
meet the emission standards of TSCA Title VI. Quality assurance and 
quality control requirements for panel producers are necessary to 
ensure that all of their products comply with the applicable standards, 
including those that are not actually tested. EPA proposed quality 
assurance and quality control requirements that would be virtually 
identical to the requirements of the CARB ATCM and that would help 
ensure proper handling of test samples, test equipment, and quality 
control testing. EPA is generally finalizing these provisions as 
proposed, with some clarifications and additions suggested by 
commenters that address important aspects of producing and supplying a 
product that meets TSCA Title VI requirements.
    The final rule requires each panel producer to have a written 
quality control manual at each location that produces composite wood 
products. The manual must include a description of the organization of 
the quality control department, sampling procedures and sample 
handling, quality control testing frequency, procedures to identify 
production changes that may result in changes in formaldehyde 
emissions, recordkeeping and labeling procedures, description of 
product type, and resin percentage and press time for each product 
type, and procedures for handling non-complying lots, including a 
description of how the panel producer will ensure compliance with the 
notification requirements. The manual must be reviewed and approved by 
an EPA TSCA Title VI TPC to ensure that the manual is complete and that 
the panel producer's procedures are adequate to ensure that the TSCA 
Title VI emission standards are being met on an ongoing basis. The 
requirement for a quality control manual is consistent with CARB.
    Each panel producer must designate a quality control facility for 
conducting quality control formaldehyde testing of their product. The 
quality control facility must be a laboratory owned and operated by the 
panel producer, a TPC, or a contract laboratory.
    Each panel producer must also designate a person as quality control 
manager with adequate experience and/or training to be responsible for 
formaldehyde emissions quality control. The quality control manager 
must have the authority to take actions necessary to ensure that 
applicable emission standards are being met. The panel producer must 
identify the quality control manager and his or her qualifications in 
writing to the TPC and must notify the TPC in writing within ten 
calendar days of any change in the identity of the quality control 
manager

[[Page 89705]]

and provide the TPC with the new quality control manager's 
qualifications. The quality control manager must review and approve all 
reports of quality control testing conducted on the production of the 
panel producer. The quality control manager is also responsible for 
ensuring that the samples are collected, packaged, and shipped 
according to the procedures specified in the quality control manual. 
The panel producer quality control manager must monitor the testing 
facility's results, and immediately inform the TPC in writing of any 
significant changes in production that could affect formaldehyde 
emission rates.
    Each quality control facility must have quality control employees 
with adequate experience and/or training to conduct accurate and 
precise chemical quantitative analytical tests. The quality control 
manager must identify each person conducting formaldehyde quality 
control testing in the quality control manual.
    EPA requested comment on whether the regulation should include 
minimum qualifications for quality control managers and quality control 
staff, such as education, experience, or training requirements. 
Commenters did not favor minimum qualifications, preferring instead to 
allow panel producers, with TPC input, more flexibility in choosing 
quality control managers and employees that are capable of performing 
the required duties. EPA agrees with these commenters and is not 
incorporating minimum education, experience, or training requirements 
into the regulation.
    Panel producers are required to submit monthly product data reports 
for each panel producer, production line and product type, to their 
TPC. The content requirements for the product data reports are 
virtually identical to the CARB requirements and include a data sheet 
for each specific product type with test and production information, a 
quality control graph containing the established QCL and shipping QCL 
(if applicable) the results of quality control tests, and retest 
values. As discussed in more detail in Unit III.F., these quality 
assurance and quality control requirements do not apply to any product 
type made with a NAF-based resin or ULEF resin for which the panel 
producer is eligible for an exemption from the third-party 
certification requirements, except for the purpose of applying for re-
approval for the exemption.

G. NAF-Based and ULEF Resins

    TSCA Title VI section 601(d)(2)(D) and (E) directs EPA to include, 
in its implementing regulations, provisions related to products made 
with NAF-based and ULEF resins. The statute also defines, under section 
601(a)(7) and (10) respectively, what constitutes NAF-based and ULEF 
resins, in terms of the composition of the resin system and maximum 
formaldehyde emissions for composite wood products made with these 
resin systems. In general, a NAF composite wood product cannot 
incorporate a resin formulated with formaldehyde as part of the 
crosslinking structure. A ULEF composite wood product is one made from 
resins that may contain formaldehyde, but emit it at particularly low 
levels. The statutory maximum emissions for products made with NAF-
based or ULEF resins are identical to those in the CARB ATCM.
    EPA is finalizing NAF and ULEF provisions essentially as proposed. 
If certain emission thresholds are met, EPA is providing producers of 
panels made with NAF-based resins or ULEF resins with an exemption from 
TPC oversight and formaldehyde emissions testing after an initial 
testing period of three months for each product type made with NAF-
based resins or six months for each product type made with ULEF resins. 
These specific initial testing periods are required by the statute and 
are designed to ensure that the products meet the TSCA section 601(a) 
formaldehyde emission standards for products made with NAF-based or 
ULEF resins. Because EPA is only requiring quality control testing when 
products are actually produced and is including provisions for reduced 
testing for hardwood plywood panel producers that manufacture low 
volumes of products, EPA is adding the clarification that the three or 
six months of quality control testing must include at least 5 quality 
control tests for NAF approvals and at least 10 quality control tests 
for ULEF approvals. This requirement is meant to preclude the 
possibility of panel producers manufacturing low volumes or 
infrequently just to qualify for NAF or ULEF reduced testing or 
exemption from certification, and because fewer quality control tests 
would be insufficient to judge whether a product should qualify for 
reduced testing or exemption from certification. EPA chose a minimum of 
five tests for NAF approval because this is the minimum needed for 
demonstrating correlation. EPA is requiring at least 10 quality control 
tests for ULEF approvals because the statutory testing requirements for 
ULEF qualification under TSCA Title VI are double those for NAF 
qualification.
    Whether using a NAF-based or ULEF resin to qualify for the 
exemption from TPC oversight and formaldehyde emissions testing for a 
particular product type, there can be no test result indicating 
emissions higher than 0.05 ppm of formaldehyde for hardwood plywood and 
0.06 ppm for particleboard, medium-density fiberboard, and thin medium-
density fiberboard during the initial testing period. In addition, test 
results for 90 percent of the required quality control testing must 
indicate emissions of no higher than 0.04 ppm of formaldehyde.
    If less stringent emission standards than these are met, producers 
of panels made with ULEF resins may still qualify for reduced 
formaldehyde emissions testing--but not the third-party certification 
exemption or the exemption from emissions testing after the initial six 
months. To qualify for this reduced testing provision for products made 
with ULEF resins, there can be no test result indicating emissions 
higher than 0.05 ppm of formaldehyde for hardwood plywood, 0.08 ppm for 
particleboard, 0.09 ppm for medium-density fiberboard, and 0.11 ppm for 
thin medium-density fiberboard during the initial six month testing 
period. In addition, test results for 90 percent of the required 
quality control testing must indicate emissions of no higher than 0.05 
ppm of formaldehyde for particleboard, 0.06 ppm for medium-density 
fiberboard, and 0.08 ppm for thin medium-density fiberboard. Under this 
reduced testing provision, qualifying panels would only need to be 
quality control tested at least once per week per product type, except 
that hardwood plywood panel producers who qualify for less frequent 
quality control testing may continue to perform the lesser amount of 
testing. For these panels, what would otherwise be quarterly testing by 
an EPA TSCA Title VI TPC would instead only be required every six 
months.
    An EPA TSCA Title VI TPC must oversee the testing during the 
initial testing period, which must include at least one test result for 
the NAF exemption or two test results for either ULEF provision under 
ASTM E1333-10 or, upon a showing of equivalence as discussed in this 
Unit, ASTM D6007-02 (Refs. 43-44). To receive a third-party 
certification exemption or reduced testing under this NAF/ULEF 
provision, the panel producer will be required to apply to an EPA TSCA 
Title VI TPC or CARB for approval for reduced testing or a third-party 
certification exemption based on the regulatory requirements.

[[Page 89706]]

EPA had proposed to have TPCs review all of the applications; however, 
several commenters expressed concern about this. Their concerns include 
potential conflicts of interest, and potential for inconsistency among 
TPC reviews. Therefore, EPA is also allowing CARB to review 
applications for NAF and ULEF under the TSCA Title VI program, as long 
as CARB continues to have requirements that are at least as stringent 
as EPA's requirements, which EPA affirms is currently true. Should EPA 
determine that CARB's requirements are no longer at least as stringent 
was EPA's requirements, then EPA will publish a notice in the Federal 
Register announcing EPA's determination.
    As noted, panel producers can also apply to their EPA TSCA Title VI 
TPC for NAF and ULEF approvals. EPA has determined that allowing TPCs 
to approve applications for NAF/ULEF reduced testing and/or a limited 
exemption from TPC oversight does not inherently present a conflict of 
interest and the provisions of this final rule that require TPC 
impartiality are applicable to TPCs reviewing and approving NAF/ULEF 
applications (see Unit III.B.7.). The specific testing requirements and 
eligibility criteria applicable to NAF/ULEF exemptions will greatly 
reduce the likelihood of inconsistency in TPC reviews.
    To maintain eligibility for a third-party certification exemption, 
at least once every two years after the conclusion of the initial 
testing period, the panel producer must reapply for exemption to an EPA 
TSCA Title VI TPC or CARB. Because the CARB ATCM requires applications 
and reapplications for these third-party certification exemptions to be 
submitted to CARB, EPA will accept CARB approvals and re-approvals for 
as long as CARB's exemption criteria remain at least as stringent as 
EPA's. This will avoid duplicate applications for those panel producers 
that operate in California. Re-applicants to the EPA program must 
include one test result for NAF renewal and two test results for ULEF 
renewal under ASTM E1333-10 or, upon a showing of equivalence as 
discussed in this Unit, ASTM D6007-02, that demonstrate continued 
compliance with the reduced formaldehyde emission standards for each 
product type (Refs. 43-44). The test(s) must be based on products 
randomly selected and tested by a TPC laboratory. In the case of 
approval for ULEF reduced testing, no periodic reapplication to a TPC 
is necessary because the panel producer must have ongoing TPC 
oversight. However, if CARB approves reduced testing for ULEF, CARB may 
require periodic reapplications. The current CARB regulations require 
panel producers eligible for reduced testing to reapply to CARB every 
two years.
    In general, testing records and other records demonstrating 
eligibility for a third-party certification exemption or reduced 
testing, such as records showing the resin used to manufacture the 
eligible products, must be maintained for a minimum of three years from 
the date that the record was created. Commenters generally indicated 
that initial testing records should be kept for as long as a panel 
producer claims exemption or reduced testing. EPA agrees with these 
commenters. In addition, EPA agrees that a review of the initial 
testing period documentation may be useful in the event that a product 
made under a NAF or ULEF exemption is determined to exceed the 
applicable standard. Therefore, the final rule requires records of the 
initial testing period be kept for as long as a panel producer is 
producing composite wood products under an exemption.
    Numerous commenters indicated that EPA should minimize the amount 
of potentially confidential information (e.g., resin formulation) that 
TPCs are required to maintain. To address the comments on CBI concerns, 
EPA is removing the requirement included in the proposal that specific 
resin formulation information be included with applications for NAF and 
ULEF approvals and instead only requiring identification of the resin 
system. The resin system is meant to be a generalized description of 
the type of resin used. This is unlikely to be CBI, but an entity that 
believes the resin system is CBI can have their TPC submit a claim for 
this information on their behalf.
    EPA proposed that any change in the resin formulation, the core 
material, or any other part of the manufacturing process that may 
affect formaldehyde emission rates would render the product ineligible 
for the reduced testing approval or third-party certification exemption 
and requested comment on whether other events, such as failed quarterly 
or routine quality control tests, should invalidate a reduced testing 
approval. Commenters provided suggestions for how EPA should handle 
changes in manufacture or emission test result failures for products 
that have received NAF or ULEF approvals. Taking these comments into 
consideration, EPA is requiring at least one quality control test and 
one quarterly test for NAF products, or five quality control tests and 
one quarterly test for ULEF products, every time there is an 
operational or process change that may affect formaldehyde emissions, 
such as a change in resin formulation, press cycle duration, 
temperature, or amount of resin used per panel. EPA has concluded that 
a change in resin system and addition of products requires a new NAF or 
ULEF application for third-party certification exemption or reduced 
testing since these are major changes, which could require designation 
as a new product type, rather than operational or process changes. In 
addition, EPA is including in this final rule that a failed TPC 
quarterly test or quality control test invalidates an approval for a 
third-party certification exemption or reduced testing, and EPA is 
requiring that a panel producer reapply with a complete new application 
if its approval is invalidated because of a failed test result. A 
failed test is a serious concern and therefore, a panel producer needs 
to be able to demonstrate that its product can meet the NAF or ULEF 
requirements by requalifying with the full testing requirements.
    EPA proposed a ULEF reduced testing provision and requested comment 
on the utility of this option. Very few manufacturers have sought the 
ULEF reduced testing provision under the CARB ATCM in lieu of the total 
exemption from TPC oversight and formaldehyde emissions testing 
requirements after the initial testing period. As such, EPA anticipates 
that the vast majority of ULEF resin-based composite wood product 
manufacturers will apply for the full exemption from TPC oversight and 
formaldehyde emissions testing after the initial testing period. 
However, commenters indicated that they support the reduced testing 
provision; therefore, EPA is including this provision in this final 
rule.
    EPA also requested comments, information, and data on the broader 
question of giving composite wood products made with ULEF resins 
preferential treatment under TSCA. EPA discussed some concerns about 
products made with urea-formaldehyde-based resins. In EPA's view, it is 
more difficult to ensure that formaldehyde emissions from products made 
with these resins remain low over time, irrespective of environmental 
conditions. It is well known that urea-formaldehyde resins can release 
formaldehyde when exposed to heat and humidity because of the chemistry 
of the resin, and EPA discussed some studies in the proposed rule on 
formaldehyde emissions under conditions of high heat and humidity. 
Several commenters expressed concern

[[Page 89707]]

about these studies, indicating that TSCA Title VI cites test methods 
that specify temperature and humidity; these commenters argue that the 
studies are therefore inappropriate and irrelevant.
    EPA specifically requested comment on whether the ULEF provisions 
should be limited to products made with a subset of ULEF resins that do 
not contain urea-formaldehyde polymer--in other words, limited to no-
added urea formaldehyde-based (NAUF) resins. Most commenters were 
opposed to this idea and instead support having both NAF and ULEF 
provisions that are identical to the provisions in the CARB ATCM. In 
contrast, one commenter only supports NAF and NAUF exemptions from TPC 
oversight, not ULEF. This commenter stated that ``UF resin, with its 
propensity to emit formaldehyde continuously upon aging, makes it 
distinct from all other formaldehyde-based resin systems'' (Ref. 71). 
EPA recognizes that the chemistry of urea-formaldehyde resins presents 
challenges for controlling formaldehyde emissions from the resulting 
composite wood products. However, EPA is finalizing the NAF and ULEF 
provisions as proposed. In making this decision, EPA considered the 
fact that TSCA Title VI requires upfront testing to confirm that panels 
made with ULEF resins (as well as panels made with NAF-based resins) 
meet statutory emission limits that are lower than the basic emission 
standards for composite wood products. EPA also considered 
Congressional intent and the interest in harmonization with the CARB 
ATCM.

H. De Minimis Exception

    Section 601(d)(2)(L) of TSCA allows EPA to promulgate, for products 
and components containing de minimis amounts of composite wood 
products, an exception to all of the requirements of the implementing 
regulations other than the formaldehyde emission standards. While EPA 
did not propose an exception from any of the regulatory requirements 
for products containing de minimis amounts of composite wood products, 
commenters overwhelmingly favored a de minimis exception.
    After considering the comments, EPA is promulgating a de minimis 
exception from the labeling requirements for finished goods and 
component parts sold separately to end users that contain no more than 
144 square inches of composite wood products, based on the surface area 
of its largest face. For example, a frame for an eight-inch by ten-inch 
picture is made up of two-inch wide and one-inch thick composite wood 
product strips. The outer dimensions of the frame would be 14 inches by 
12 inches and the inner dimensions would be 10 inches by 8 inches. This 
frame contains 88 square inches of composite wood product and would 
qualify for the de minimis exception ([12 x 14]-[10 x 8]). This de 
minimis level, suggested by a commenter, is appropriate because it 
would eliminate the labeling requirements for very small products. It 
would also eliminate the labeling requirements for finished goods made 
of non-regulated material, such as solid wood, that contain small 
amounts of composite wood, such as hardwood plywood joining biscuits. A 
labeling requirement for such products could create confusion amongst 
consumers as to whether or not the product is solid wood. Finally, in 
this context, EPA has determined that 144 square inches of composite 
wood product in a finished good actually represents a trivial amount of 
composite wood product, as opposed to the much larger thresholds 
suggested by some commenters.
    The exception does not apply to finished goods (and component parts 
sold separately to end users) which are used in combination or in 
multiples in order to create larger surfaces in the final use, such as 
flooring or ceiling tiles. Products that are sold separately to 
consumers and not intended to be used in multiples would be eligible 
for this exception (e.g., a plywood rack designed to be attached to a 
bicycle). Component parts that are sold to fabricators of finished 
goods would not be eligible for this exception.
    EPA notes that this exception is for the labeling requirements 
alone. EPA does not believe it can ensure compliance with the emission 
standards if it finalizes a de minimis exception to the recordkeeping 
requirements. EPA notes that its authority to establish a de minimis 
exception applies only to the regulatory requirements, not the 
statutory emission standards. Thus, even products containing a de 
minimis amount of composite wood must be made from panels that are 
compliant with the regulatory requirements and emission standards. 
Without records, there would be no way for the Agency, or a downstream 
purchaser, to determine whether these products were made from compliant 
composite wood panels.

I. Chain-of-Custody, Recordkeeping, and Labeling Requirements

    Section 601(d)(2) of TSCA Title VI also directs EPA to consider 
chain of custody, recordkeeping, and labeling requirements. EPA 
proposed chain of custody, recordkeeping, and labeling requirements 
that were similar to those under the CARB ATCM, reasoning that these 
requirements also support compliance with TSCA Title VI without undue 
burden. EPA's proposal departed from the CARB ATCM approach by 
including a three-year recordkeeping period, instead of CARB's two 
years, and by reducing recordkeeping for distributors and retailers. 
EPA also proposed to require that panel producers make quarterly and 
quality control testing records available to their customers upon 
request. All of these elements are discussed in more detail in this 
Unit.
    1. Chain of custody and recordkeeping requirements. Most records 
required to be retained under this regulation must be kept for a period 
of three years from the date that they are generated. Many commenters 
supported a two-year recordkeeping requirement, citing consistency with 
the CARB ATCM, while others supported longer periods. The three-year 
recordkeeping period is reasonable, given that EPA must monitor TSCA 
Title VI compliance on the part of hundreds of thousands of entities 
nationwide. In addition, required records would have to be provided to 
EPA upon request to facilitate compliance monitoring activities.
    As proposed, producers of hardwood plywood, particleboard, and 
medium-density fiberboard panels must maintain records of quarterly 
emissions testing and records of quality control testing. These records 
must identify the TPC conducting or overseeing the testing, and must 
include the date, the product type tested, the lot number that the 
tested material represents, and the test results. In addition, panel 
producers must maintain production records, purchaser and transporter 
information, and information on the disposition of non-complying lots.
    After December 12, 2023, laminated product producers whose products 
are exempt from the definition of hardwood plywood will have to 
maintain records demonstrating use of compliant cores or platforms and 
phenol-formaldehyde resins or resins formulated with no added 
formaldehyde as part of the resin cross-linking structure, including 
platform production or purchase records, the resin trade name, resin 
manufacturer contact information, and resin supplier contact 
information, or, if the resin is made in-house, records sufficient to 
demonstrate that the resin qualifies for the exemption.
    In order to assist customers such as fabricators, distributors, 
importers, and retailers in determining whether they are purchasing 
compliant composite wood products, EPA is requiring that

[[Page 89708]]

panel producers make available to their direct customers, upon request, 
the results of quarterly emissions test results for the product types 
purchased. While information collected under TSCA may be entitled to 
confidential treatment if it meets the standard for Exemption 4 in the 
Freedom of Information Act (FOIA), 5 U.S.C. 552(b)(4), TSCA section 14 
provides that health and safety studies and data derived from health 
and safety studies, are not entitled to confidential treatment, 
irrespective of the Exemption 4 standard, unless the release of data 
derived from such studies would disclose confidential processes used in 
the manufacturing or processing of a chemical substance or mixture or, 
in the case of a mixture, disclose the confidential portion of the 
mixture comprised by any of its chemical substances. For the reasons 
discussed in the proposal, EPA has determined that quarterly test 
results are not entitled to treatment as CBI. In order to minimize 
paperwork and preserve the confidentiality of the supply chain, EPA is 
limiting the disclosure requirement to direct purchasers (i.e., those 
purchasing directly from mills). Thus the quarterly test results and 
associated information (date of test, test method, panel producer name 
and produce description) do not need to be carried with the product 
through the supply chain.
    Because of the volume and complexity of quality control test 
results, EPA is not requiring panel producers to release this quality 
control information to direct purchasers. However, EPA considers 
quality control test results and the fact that a mill has had failed 
quality control tests to be health and safety studies and data derived 
from health and safety studies. Also as proposed, producers of hardwood 
plywood, particleboard and medium-density fiberboard panels using NAF-
based resins or ULEF resins who qualify for the reduced testing and/or 
third-party certification exemption discussed in Unit III.G. must 
maintain records demonstrating initial and continued eligibility for 
the reduced testing or third-party certification exemption. In 
addition, the panel producer must keep production records and 
information on resin trade name, resin manufacturer and supplier 
contact information, and resin use.
    Under the proposal, importers, fabricators, distributors, and 
retailers would be required to take steps to ensure that they are 
purchasing composite wood products or component parts that comply with 
the emission standards and to document these steps. As proposed, in 
order to document compliance, the importer or fabricator would have to 
obtain from the supplier records identifying the panel producer(s) that 
produced the composite wood products and the dates that the composite 
wood products were manufactured and purchased from the panel 
producer(s), as well as bills of lading or invoices that include a 
written affirmation from the supplier that the composite wood products, 
whether in the form of panels or incorporated into component parts or 
finished goods, are compliant with this subpart.
    The proposed requirement to take steps to ensure that compliant 
products are being purchased would also have applied to distributors 
and retailers. Rather than include specific required documentation for 
these entities, the proposal requested comment on the documentation 
that should be required. The only specific records the proposal would 
have required distributors and retailers to keep were invoices and 
bills of lading, and compliance statements on these documents would not 
have been mandatory. EPA reasoned in the proposal that this would be 
sufficient because these records would enable EPA to identify the 
producer or importer of composite wood panels, component parts, or 
finished goods being sold by distributors and retailers. EPA also 
stated that, for finished goods, these records would also permit the 
identification of the producer of the composite wood panels that make 
up the finished goods. EPA concluded that, without imposing additional 
recordkeeping burdens on most distributors and retailers, these records 
would allow EPA to effectively monitor compliance with TSCA Title VI.
    EPA received a number of comments on these requirements, some 
specific to importer responsibilities. Commenters argued that, in many 
cases, the importer is two or more steps in the supply chain removed 
from the panel producer and would not be able to obtain this 
information, particularly for imported finished goods. Some commenters 
were concerned about supply chain confidentiality and objected to a 
requirement that distributors disclose their suppliers to their 
customers. EPA understands the concerns expressed by these commenters. 
However, in order to be able to ensure that imported composite wood 
products, component parts, and finished goods were produced in 
compliance with TSCA Title VI, EPA needs to know the mill and the date 
that the composite wood products were produced. For composite wood 
products made by overseas mills, EPA must look to the importer for this 
information. Without mill and production date information, EPA will not 
be able to check with the appropriate TPC to determine whether the 
product was certified. For these reasons, EPA is finalizing a 
requirement that the importer be able to provide these records to EPA 
within 30 calendar days of request. Because of the supplier chain 
issues raised by commenters, EPA is not requiring importers to obtain 
these records directly from suppliers. Importers may arrange, by 
contact or some other means, to have their suppliers provide these 
records directly to EPA within 30 calendar days of request. Importers 
must keep the compliance statements located on invoices, bills of 
lading, or other comparable documents. EPA notes that the recordkeeping 
requirements for imported products will be equivalent to the aggregate 
recordkeeping requirements for domestically produced products. The only 
distinction would be that the responsibility for ensuring pre-
importation supply chain records are maintained would fall on the 
importer instead of being spread out amongst different entities in the 
supply chain.
    For the reason stated in the proposal, that invoices and bills of 
lading will permit EPA to identify the sources of composite wood 
products, component parts, or finished goods for a particular 
distributor or retailer, EPA is also finalizing the recordkeeping 
requirements for distributors and retailers as proposed. In addition, 
because invoices and bills of lading will allow EPA to identify a 
fabricator's sources of composite wood products or component parts, 
just as such records facilitate the identification of distributor's or 
retailer's sources, EPA will only require fabricators to keep invoices 
and bills of lading. Fabricators who are also laminators must keep 
these records as well as the records required for laminated product 
producers.
    EPA specifically asked for comment on whether distributors and 
retailers should be required to obtain and retain bills of lading or 
invoices with a written affirmation from the supplier, and whether 
other recordkeeping requirements would be appropriate. While CARB's 
comments indicated that these statements were required under CARB and 
recommended that EPA require the same, other commenters believed that 
the requirement was unnecessary. EPA has determined that requiring a 
compliance statement is minimally burdensome, that many are already 
complying with the CARB requirement, and that obtaining these 
statements will enlist fabricators, distributors, and retailers in 
helping to

[[Page 89709]]

ensure compliance with TSCA Title VI by requiring them to ask questions 
of their suppliers if they do not see the compliance statement on their 
purchase documentation. The compliance statement refers to the 
compliance of the products as of the date of manufacture. So, for 
example, non-exempt laminated products made after December 12, 2023 
would need to be compliant with the requirements for hardwood plywood 
in order to affirm compliance with TSCA Title VI. Obtaining and 
maintaining these bills of lading and invoices, or comparable 
documents, with a written statement from the supplier are reasonable 
precautions taken to purchase compliant products for fabricators, 
distributors, and retailers.
    Entities that fit within two or more of these recordkeeping 
categories, such as a distributor that buys finished goods from both 
foreign and domestic companies for resale, must keep only the records 
for each product that correspond to the activities the entity undertook 
with respect to that product. For example, a distributor who purchases 
both foreign and domestic finished goods for resale must keep the 
following records:
     For foreign finished goods that the distributor imports, 
records identifying the panel producer(s) that produced the composite 
wood products incorporated into the finished goods and the dates that 
the products were produced or the ability to produce this information 
within 30 days, records identifying the supplier and the date of 
purchase, and bills of lading or invoices that include a written 
statement from the supplier that the composite wood products, whether 
in the form of panels or incorporated into component parts or finished 
goods, are either compliant with this subpart or were manufactured 
before the manufactured-by date.
     For domestic finished goods, only bills of lading or 
invoices would need to be kept.
    In the case of imported finished goods, only the importer would be 
responsible for ensuring that the records identifying the panel 
producer and the date that the composite wood products were 
manufactured are accessible to EPA upon request. For example, if the 
importer sells the goods to a domestic distributor, who then sells them 
to a domestic retailer, only the importer would have to ensure the 
additional records are kept. The domestic distributor and retailer 
would only be required to keep invoices and bills of lading.
    2. Labeling. EPA is finalizing the labeling provisions as proposed, 
with several minor modifications. Panels or bundles of panels that are 
sold, supplied, or offered for sale in the United States must be 
labeled with the name of the panel producer, the lot number, the number 
of the accredited TPC, and markings indicating that the product 
complies with the TSCA Title VI emission standards. Fabricators of 
finished goods containing composite wood products must label every 
finished good they produce, or every box containing finished goods. 
These labels must contain the fabricator's name, the date the finished 
good was produced, and a statement that the finished goods are TSCA 
Title VI compliant. Panels may be shipped into, out of, and around the 
United States for quality control or quarterly tests provided that they 
are labeled ``For TSCA Title VI testing only, not for sale in the 
United States.'' The information required on the labels must be legible 
and in English, but it need not all be on a single label. Also, 
entities are free to combine the TSCA Title VI labels with CARB labels 
so long as all the required information is present, legible, in English 
and accurate. EPA notes that the phrase ``the date the finished good 
was produced'' means the actual date of production in ``Month/Year'' 
format, not the date the product was imported.
    EPA does agree that in certain situations, this information has the 
potential to confuse consumers and may take up additional space on 
labels. For example, where a finished good is composed of multiple 
composite wood products, some of which are not produced under the NAF 
or ULEF provisions, and some of which are, it may be difficult for 
fabricators to design a label that efficiently describes the product. 
Thus, in the final regulations, labeling indicating that the composite 
wood products are NAF or ULEF is voluntary and at the discretion of the 
panel producer or fabricator. For finished goods that are partially 
made with panels produced under the NAF or ULEF exemptions, they may, 
at the discretion of the fabricator, be labeled with phrases such as 
``product contains TSCA Title VI products and NAF/ULEF products,'' 
``product contains TSCA Title VI products and NAF products,'' or 
``product contains TSCA Title VI products and ULEF products,'' if is 
this is accurate. EPA disagrees with those commenters who thought that 
the labeling of products as NAF or ULEF creates an inappropriate market 
bias. TSCA Title VI explicitly allows EPA to provide an exemption from 
third-party certification and testing for these products, so the 
statute itself confers the opportunity for special treatment on these 
products. Far from creating an inappropriate market bias, labeling a 
product as NAF and ULEF provides valuable information to consumers 
(e.g., some panels may not have a TPC because they are exempt from 
third-party certification), and allows consumers to know that these 
products meet the emission standards described in Unit III.C. EPA also 
notes that the CARB ATCM has NAF/ULEF labeling requirements.
    The final rule allows panel producers to use a panel producer 
number or other identifier to protect supply chain confidentiality, as 
long as EPA is ultimately able to use the label information along with 
the records required by this rule to identify the panel producer. The 
expectation is that EPA will be able to trace back through the supply 
chain, using records identifying each entity's supplier, to eventually 
arrive at the panel producer, or an importer for composite wood 
products not produced domestically. For finished goods, EPA is 
requiring either the fabricator's name on the label or the name of a 
responsible downstream entity (e.g., an importer, wholesaler, 
distributor, or retailer). Where a non-fabricator's name appears on the 
label, that entity is responsible for identifying the fabricator, and 
is responsible for the compliance of the labeled products, as if they 
were the fabricator. Fabricators may not put a downstream entity's name 
on the labels unless they have written consent from that entity to do 
so.
    Although EPA proposed to allow labels to be in barcode format, the 
Agency agrees with commenters who thought that a barcode, as the sole 
form of label, would inhibit transparency. Even if the barcode was a 
universal open system, all entities along the supply chain may not have 
access to smartphones or barcode readers. This would create a 
technology barrier to accessing this information, and could prevent 
retailers that wish to check the information on labels to ensure it 
conforms to the information provided to them by their supplier. Thus, 
the final rule prohibits the use of barcodes, or non-text labels, as 
the sole label. Entities that wish to use barcodes or other non-text 
labels may do so but must also have the encoded TSCA Title VI 
information printed on the label in English text.
    The final rule allows composite wood products and finished goods to 
be labeled by bundle or box, as opposed to being labeled individually. 
EPA generally agrees with those commenters who cited cost and 
feasibility concerns with an individual product labeling requirement. 
In addition, as noted by

[[Page 89710]]

some commenters, EPA agrees that an individual labeling requirement 
provides minimal benefit when applied to composite wood products 
supplied to fabricators who then incorporate them into finished goods. 
In lieu of labeling of individual products, EPA is requiring entities 
that divide and repackage bundles of regulated composite wood products 
or purchase these products for resale to have a system sufficient to 
identify the supplier of the panel and link the information on the 
label to the products. This information must be made available to 
potential customers upon request. Similarly, entities importing, 
selling, offering for sale or supplying finished goods that are not 
individually labeled must retain a copy of the label and make it 
available to potential customers upon request.

J. Sell-Through Provisions and Stockpiling

    TSCA Title VI directs EPA to establish sell-through provisions for 
composite wood products, and finished goods containing regulated 
composite wood products, based on a designated date of manufacture, or 
``manufactured-by'' date. Under the statute, composite wood products or 
finished goods manufactured before the specified manufactured-by date 
are not subject to statutory emission standards or testing 
requirements. TSCA Title VI requires that the manufactured-by date be 
no earlier than 180 calendar days after promulgation of the final 
implementing regulations.
    TSCA Title VI also directs EPA to prohibit the sale of inventory 
that was stockpiled, which is defined in the statute as manufacturing 
or purchasing composite wood products between the date the statute was 
enacted and the date 180 calendar days following the promulgation of 
these regulations at a rate significantly greater than the rate during 
a particular base period. EPA is directed to define what constitutes 
``a rate significantly greater'' and to establish the base period. 
Under the statute, the base period must end before July 7, 2010, the 
date that the Formaldehyde Standards for Composite Wood Products Act 
was enacted.
    As proposed, EPA is finalizing the manufactured-by date at December 
12, 2017, except that, as discussed in Unit III.A., the manufactured-by 
date for laminated products is December 12, 2023. EPA has determined 
that, for panel producers other than laminated product producers, this 
year will be sufficient to get all of the infrastructure in place.
    The manufactured-by dates apply to regulated composite wood 
products, including laminated products, as well as finished goods 
containing such products. Composite wood products manufactured before 
the applicable manufactured-by date are not subject to the emission 
standards, nor are they required to be labeled or tested for emissions. 
Laminated products manufactured before the manufactured-by date for 
laminated products are not subject to the emission standards, but, 
after the manufactured-by date for composite wood products other than 
laminated products, they must be made with compliant composite wood 
product platforms and must be labeled in accordance with the fabricator 
labeling requirements. Composite wood products and laminated products 
manufactured before the applicable manufactured-by date can be 
incorporated into finished goods at any time. Retailers, fabricators, 
and distributors are permitted to continue to buy and sell these 
composite wood products and laminated products, as well as finished 
goods that incorporate these products, because they would be considered 
compliant with TSCA Title VI and its implementing regulations, assuming 
the absence of stockpiling as discussed later. Under TSCA, the term 
``manufacture'' includes import, so the ``manufactured-by'' date would 
effectively be an ``imported-by'' date for imported goods.
    In order to establish that a regulated composite wood product was 
made before the manufactured-by date, the panel producer or importer 
and any subsequent distributor, retailer or fabricator must document 
when the product was manufactured or that the panel was in their 
inventory on or before the date 180 calendar days after promulgation of 
these regulations. In the case of a finished good, any subsequent 
distributor, retailer or fabricator must document that the composite 
wood products making up the finished good were either manufactured 
before the manufactured-by date or were manufactured in accordance with 
TSCA Title VI. Documentation that the finished goods were in their 
inventory on or before that date 180 calendar days after promulgation 
of these regulations would be sufficient for these purposes. In order 
to reduce consumer confusion, products that are entirely made before 
the manufactured-by date may not be labeled as compliant with TSCA 
Title VI.
    Selling stockpiled regulated composite wood panels and finished 
goods containing regulated composite wood products is prohibited. EPA 
proposed to define stockpiling as manufacturing or purchasing composite 
wood products between July 7, 2010, the date that the Formaldehyde 
Standards for Composite Wood Products Act was signed into law by the 
President, and 180 calendar days after promulgation of these 
regulations, for the purpose of circumventing the TSCA Title VI 
emission standards, at an average annual rate 20 percent greater than 
the amount manufactured or purchased during the 2009 calendar year. EPA 
is finalizing the provisions substantially as proposed, but clarifying 
that the Agency has the burden of showing that an increase in 
production or purchasing was for the purpose of circumventing the 
emission standards. Entities that have a greater than 20 percent 
increase in purchasing or production of regulated composite wood panels 
for some reason other than circumventing the emission standards will 
not be deemed to be stockpiling. Other reasons may include an immediate 
increase in customer demand or sales, or a planned business expansion. 
The stockpiling provisions do not apply to entities that were not in 
existence at the beginning of calendar year 2009 because a pre-TSCA 
Title VI baseline of production does not exist for these companies.

K. Import Certification

    TSCA Title VI directs EPA, in coordination with U.S. Customs and 
Border Protection (CBP) and other appropriate Federal departments and 
agencies, to revise regulations promulgated pursuant to TSCA section 13 
as necessary to ensure compliance. The TSCA section 13 regulations, 
promulgated by CBP, require importers to certify that shipments of 
chemical substances and mixtures are either in compliance with TSCA or 
not subject to TSCA. Most, if not all, products subject to TSCA Title 
VI would be considered articles. Articles, defined in 19 CFR 12.120(a), 
are generally formed to specific shapes or designs during manufacture 
and have end use functions related to their shape or design. Articles 
are generally exempt from the TSCA section 13 certification 
requirements, but the regulations at 19 CFR 12.121(b) recognize that 
EPA has the authority to, by regulation or order, make the requirements 
applicable to articles.
    As proposed, no changes are being made to the regulations 
promulgated pursuant to TSCA section 13, but this final rule requires 
TSCA section 13 import certification for composite wood products that 
are articles. This does not represent a statement on the relative 
toxicity of formaldehyde, or of composite wood products; rather, it is 
a certification of compliance with TSCA.

[[Page 89711]]

Although this requirement is being finalized as proposed, EPA is 
delaying the compliance date for the import certification requirements 
until two years after the date of the publication of this rule to 
provide additional time for the supply chain to become familiar with 
the requirements and make any necessary adjustments to existing 
business processes. The Agency is committed to conducting outreach with 
regulated parties and working with industry associations to help 
educate producers and importers of composite wood products about the 
requirements of this final rule, including the TSCA section 13 import 
certification requirements. Beginning shortly after publication of the 
final rule, EPA will conduct outreach to the importer community which 
will entail providing training on the importer provisions and how to 
comply with the certification requirement. The outreach will include 
webinars, attending industry conferences, and meeting with interested 
groups. In addition, EPA is developing guidance for importers with 
additional information about how to comply with the certification 
requirement. The guidance will be in the form of documents that can be 
downloaded from EPA's Web site at: http://www.epa.gov/formaldehyde.
    To comply with the import certification requirements, importers (or 
their agents) will be required to provide the following certification 
statement with other paperwork accompanying the imported shipment:

    I certify that all chemical substances in this shipment comply 
with all applicable rules or orders under TSCA and that I am not 
offering a chemical substance for entry in violation of TSCA or any 
applicable rule or order thereunder.

The documentation required by this final rule will generally be a 
sufficient basis for the import certification to the extent that such 
documentation demonstrates compliance. TSCA certification statements 
provided in paper have commonly been included on or attached to bills 
of lading, commercial invoices, or comparable documents. In order to 
submit a TSCA certification statement electronically, importers or 
their agents would need to submit it with their Customs entry filings 
for shipments in the Automated Commercial Environment (i.e., CBP's 
primary automated and electronic system for commercial trade 
processing.) or any other CBP-authorized electronic data interchange 
system.

L. Enforcement

    The failure to comply with any provision of TSCA Title VI, or the 
regulations implementing TSCA Title VI, is a prohibited act under TSCA 
section 15. Any person who commits a prohibited act under TSCA section 
15 can be held liable for civil and criminal penalties, as appropriate.

M. HUD's Manufactured Housing Program

    Under the authority of the National Manufactured Housing 
Construction and Safety Standards Act of 1974, 42 U.S.C. 5401 et seq., 
HUD regulates the construction of all manufactured homes built in the 
United States. The HUD standards established pursuant to the 1974 Act 
cover many aspects of manufactured home construction, including body 
and frame requirements, thermal protection, plumbing, electrical, and 
fire safety. (See 24 CFR parts 3280 and 3282). HUD oversees the 
enforcement of the construction standards through third party 
inspection agencies and State governments.
    EPA and HUD are working together to ensure the appropriate 
application and implementation of requirements under the Formaldehyde 
Standards for Composite Wood Products Act of 2010. The HUD standards 
for manufactured housing include specific formaldehyde emission limits 
for plywood and particleboard materials installed in manufactured 
housing. In contrast, TSCA Title VI covers only hardwood plywood, a 
subset of plywood. In addition, TSCA Title VI also covers medium-
density fiberboard, which is not covered by the current HUD standards. 
The HUD emission limits apply to any plywood or particleboard bonded 
with a resin system and to any plywood or particleboard coated with a 
surface finish containing formaldehyde. HUD's current formaldehyde 
emission limits are 0.2 ppm for plywood and 0.3 ppm for particleboard, 
as measured by ASTM E1333-96. These emission limits are higher than 
those established by the 2010 Act, but section 4 of the 2010 Act 
directs HUD to update its regulations to ensure that the regulations 
reflect the standards established by section 601 of TSCA.
    In addition, the 2010 Act established a definition of 
``recreational vehicle'' that is based on the definition established by 
HUD that is in effect at 24 CFR 3282.8 on the date of promulgation of 
regulations pursuant to TSCA Title VI. EPA acknowledges that HUD issued 
a proposed rule (81 FR 6806, February 9, 2016) that would, among other 
things, remove the current definition of ``recreational vehicle'' from 
24 CFR 3282.8 and add an amended version of this definition in a 
proposed new CFR section. EPA and HUD believe that it was the intent of 
Congress that same definition of ``recreational vehicle'' be used in 
both this final rule and HUD's manufactured housing regulations. 
Therefore, EPA and HUD will continue working together to ensure that 
the regulatory definition is appropriately harmonized.
    In the proposal, EPA requested comment on how best to harmonize 
EPA's regulatory program under TSCA Title VI with HUD's manufactured 
homes program. EPA received a handful of comments on this aspect of the 
proposal. Two commenters recommended a general consistency between the 
EPA and HUD regulations, although they did not offer specifics. At the 
suggestion of one of the commenters, EPA has added a sentence to the 
applicability provisions of the final rule to make it clear that the 
requirements apply to composite wood products used in manufactured 
housing.

IV. Incorporation by Reference

    This final rule incorporates a variety of voluntary consensus 
standards by reference. In many cases, the consensus standards are used 
because TSCA Title VI directs that they be used. TSCA Title VI provides 
for quarterly and quality control testing for hardwood plywood, 
particleboard, and MDF using specified methods developed by ASTM 
International. TSCA Title VI also refers freely to voluntary consensus 
standards to assist in defining the composite wood products that are 
subject to the statute, such as hardwood plywood (ANSI/HPVA HP-1-2009), 
particleboard (ANSI A208.1-2009), and medium-density fiberboard (ANSI 
A208.2-2009) (Refs. 26, 47, and 72). Other voluntary consensus 
standards are being incorporated by reference into this final rule to 
provide flexibility to panel producers by permitting them to use 
additional quality control test methods already allowed by CARB under 
their ATCM. Finally, EPA is relying on voluntary consensus standards 
developed by ISO/IEC and already in use in the conformity assessment 
sector to establish a third-party certification program that is as 
robust as possible. Most of the entities that would have to comply with 
one of these standards, or at least have a good understanding of the 
contents of one of these standards, already own a copy. It would be 
difficult to be in business as a hardwood plywood mill, for example, if 
you were not familiar with the industry consensus on what is hardwood 
plywood. The

[[Page 89712]]

standards are all readily available electronically or in print, and are 
relatively inexpensive (less than $150 a copy).
    The voluntary consensus standards being incorporated by reference 
into this final rule are summarized in this unit, along with contact 
information for purchasing a copy of each standard. Each of these 
standards is available for inspection at the OPPT Docket in the EPA 
Docket Center (EPA/DC) at Rm. 3334, EPA, West Bldg., 1301 Constitution 
Ave. NW., Washington, DC. The EPA/DC Public Reading Room hours of 
operation are 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 
legal holidays. The telephone number of the EPA/DC Public Reading room 
is (202) 566-1744, and the telephone number for the OPPT Docket is 
(202) 566-0280.
    (a) AITC, CPA, and HPVA standards. Copies of these standards may be 
obtained from the specific publisher, as noted below, or from the 
American National Standards Institute, 1899 L Street NW., 11th Floor, 
Washington, DC 20036, or by calling (202) 293-8020, or at http://ansi.org/. Note that ANSI/AITC A190.1-2002 is published by the American 
Institute of Timber Construction. ANSI A135.4-2012, ANSI A135.5-2012, 
ANSI A135.6-2012, ANSI A135.7-2012, ANSI A208.1-2009, and ANSI A208.2-
2009 are published by the Composite Panel Association. And ANSI ANSI/
HPVA-HP-1-2009 is published by the Hardwood Plywood Veneer Association.
    1. ANSI A135.4-2012, American National Standard, Basic Hardboard. 
This standard defines hardboard and describes requirements and test 
methods for water absorption, thickness swelling, modulus of rupture, 
tensile strength, surface finish, dimensions, squareness, moisture 
content, and edge straightness of five classes of basic hardboard, 
along with methods of identifying products conforming to the standard.
    2. ANSI A135.5-2012, American National Standard, Prefinished 
Hardboard Paneling. This standard describes requirements and methods of 
testing for the dimensions, squareness, edge straightness, and moisture 
content of prefinished hardboard paneling and for the finish of the 
paneling, along with methods of identifying products conforming to the 
standard.
    3. ANSI A135.6-2012, American National Standard, Engineered Wood 
Siding. This standard describes requirements and methods of testing for 
the dimensions, straightness, squareness, physical properties, and 
surface characteristics of engineered wood siding. This standard also 
defines trade terms used and describes methods of identifying products 
conforming to the standard.
    4. ANSI A135.7-2012, American National Standard, Engineered Wood 
Trim. This standard describes requirements and methods of testing for 
the properties of engineered wood trim intended to be used as 
architectural trim. While primarily for exterior applications, these 
products can also be used indoors. Trim is the woodwork in the finish 
of a building, especially around openings and at corners, that is 
intended to be decorative and/or provide protection for joints covered 
by the product. Typical exterior trim includes corner boards, fascia, 
brick mold and window trim. Because engineered wood trim is not 
intended to be used as a structural material, it has no structural 
load-bearing performance requirements.
    5. ANSI A208.1-2009, American National Standard, Particleboard. 
This standard describes the requirements and test methods for 
dimensional tolerances, physical and mechanical properties and 
formaldehyde emissions for particleboard, along with methods of 
identifying products conforming to the standard.
    6. ANSI A208.2-2009, American National Standard, Medium Density 
Fiberboard (MDF) for Interior Applications. This standard describes the 
requirements and test methods for dimensional tolerances, physical and 
mechanical properties and formaldehyde emissions for MDF, along with 
methods of identifying products conforming to the standard.
    7. ANSI/AITC A190.1-2002, American National Standard for Wood 
Products, Structural Glued Laminated Timber. This standard describes 
minimum requirements for the manufacture and production of structural 
glued laminated timber, including size tolerances, grade combinations, 
lumber, adhesives, and appearance grades.
    8. ANSI/HPVA HP-1-2009, American National Standard for Hardwood and 
Decorative Plywood. This standard details the specific requirements for 
all face, back, and inner ply grades of hardwood plywood as well as 
formaldehyde emission limits, moisture content, tolerances, sanding, 
and grade marking.
    (b) ASTM material. Copies of these materials may be obtained from 
ASTM International, 100 Barr Harbor Dr., P.O. Box C700, West 
Conshohocken, PA 19428-2959, or by calling (877) 909-ASTM, or at http://www.astm.org.
    1. ASTM D5055-05, Standard Specification for Establishing and 
Monitoring Structural Capacities of Prefabricated Wood I-Joists. This 
specification gives procedures for establishing, monitoring, and 
reevaluating structural capacities of prefabricated wood I-joists, such 
as shear, moment, and stiffness. The specification also provides 
procedures for establishing common details and itemizes certain design 
considerations specific to wood I-joists.
    2. ASTM D5456-06, Standard Specification for Evaluation of 
Structural Composite Lumber Products. This specification describes 
initial qualification sampling, mechanical and physical tests, 
analysis, and design value assignments. Requirements for a quality-
control program and cumulative evaluations are included to ensure 
maintenance of allowable design values for the product.
    3. ASTM D5582-00 (Reapproved 2006), Standard Test Method for 
Determining Formaldehyde Levels from Wood Products Using a Desiccator. 
This test method describes a small scale procedure for measuring 
formaldehyde emissions potential from wood products. The formaldehyde 
level is determined by collecting airborne formaldehyde in a small 
distilled water reservoir within a closed desiccator. The quantity of 
formaldehyde is determined by a chromotropic acid test procedure.
    4. ASTM D6007-02, Standard Test Method for Determining Formaldehyde 
Concentrations in Air from Wood Products Using a Small-Scale Chamber. 
This test method measures the formaldehyde concentrations in air from 
wood products under defined test conditions of temperature and relative 
humidity. Results obtained from this small-scale chamber test method 
are intended to be comparable to results obtained testing larger 
product samples by the large chamber test method for wood products, 
Test Method E 1333.
    5. ASTM E1333-10, Standard Test Method for Determining Formaldehyde 
Concentrations in Air and Emission Rates from Wood Products Using a 
Large Chamber. This test method measures the formaldehyde concentration 
in air and emission rate from wood products containing formaldehyde 
under conditions designed to simulate product use. The concentration in 
air and emission rate is determined in a large chamber under specific 
test conditions of temperature and relative humidity. The general 
procedures are also intended for testing product combinations at 
product-loading ratios and at air-exchange rates typical of the indoor 
environment.

[[Page 89713]]

    (c) CEN materials. Copies of these materials are not directly 
available from the European Committee for Standardization, but from one 
of CEN's National Members, Affiliates, or Partner Standardization 
Bodies. To purchase a standard, go to CEN's Web site, http://www.cen.eu, and select ``Products'' for more detailed information.
    1. BS EN 120:1992, Wood based panels. Determination of formaldehyde 
content- Extraction method called the perforator method, English 
Version. This European standard describes an extraction method, known 
as the perforator method, for determining the formaldehyde content of 
unlaminated and uncoated wood-based panels.
    2. BS EN 717-2:1995, Wood-based panels--Determination of 
formaldehyde release--Part 2: Formaldehyde release by the gas analysis 
method, English Version. This European standard describes a procedure 
for determination of accelerated formaldehyde release from wood-based 
panels.
    (d) Georgia Pacific material. Copies of this material may be 
obtained from Georgia-Pacific Chemicals LLC, 133 Peachtree Street, 
Atlanta, GA 30303, or by calling (877) 377-2737, or at http://www.gp-dmc.com/default.aspx.
    1. The GP Dynamic Microchamber computer-integrated formaldehyde 
test system, User Manual. Copyright 2012. The Dynamic Micro Chamber is 
a patented process for testing formaldehyde emissions (U.S. Patent # 
5,286,363). The DMC provides a means of obtaining accurate formaldehyde 
emissions information from pressed panel products. This Manual 
describes the process for using the DMC.
    2. The Dynamic Microchamber computer integrated formaldehyde test 
system, User Manual, Copyright 2007. This is the older version of the 
DMC Manual, which may also be followed when using the DMC to conduct 
formaldehyde emissions testing.
    (e) ISO material. Copies of these materials may be obtained from 
the International Organization for Standardization, 1, ch. de la Voie- 
Creuse, CP 56, CH-1211, Geneve 20, Switzerland, or by calling +41-22-
749-01-11, or at http://www.iso.org.
    1. ISO/IEC 17011:2004(E), Conformity assessments--General 
requirements for accreditation bodies accrediting conformity assessment 
bodies (First edition), September 1, 2004. This standard specifies 
general requirements for accreditation bodies assessing and accrediting 
conformity assessment bodies. For the purposes of this standard, 
conformity assessment bodies are organizations providing the following 
conformity assessment services: Testing, inspection, management system 
certification, personnel certification, product certification and, in 
the context of this standard, calibration.
    2. ISO/IEC 17020:2012(E), General criteria for the operation of 
various types of bodies performing inspections (Second Edition) March 
1, 2012. This standard covers the activities of inspection bodies whose 
work can include the examination of materials, products, installations, 
plants, processes, work procedures or services, and the determination 
of their conformity with requirements and the subsequent reporting of 
results of these activities.
    3. ISO/IEC 17025:2005(E), General requirements for the competence 
of testing and calibration laboratories (Second Edition), May 15, 2005. 
This standard specifies the general requirements for the competence to 
carry out tests or calibrations, including sampling. It covers testing 
and calibration performed using standard methods, non-standard methods, 
and laboratory-developed methods.
    4. ISO/IEC 17065:2012(E), Conformity assessment--Requirements for 
bodies certifying products, processes and services (First Edition), 
September 15, 2012. This standard specifies requirements that are 
intended to ensure that certification bodies operate certification 
schemes in a competent, consistent and impartial manner. This standard 
can be used as a criteria document for accreditation or peer assessment 
or designation by governmental authorities, scheme owners and others.
    (f) Copies of JIS A 1460:2001 Building boards-Determination of 
formaldehyde emission-Desiccator method, English Version, may be 
obtained from Japanese Industrial Standards, 1-24, Akasaka 4, Minatoku, 
Tokyo 107-8440, Japan, or by calling +81-3-3583-8000, or at http://www.jsa.or.jp/. This method describes a method for testing formaldehyde 
emissions from construction boards by measuring the concentration of 
formaldehyde absorbed in distilled or deionized water from samples of a 
specified surface area placed in a glass desiccator for 24 hours.
    (g) NIST material. Copies of these materials may be obtained from 
the National Institute of Standards and Technology (NIST) by calling 
(800) 553-6847 or from the U.S. Government Printing Office (GPO). To 
purchase a NIST publication you must have the order number. Order 
numbers may be obtained from the Public Inquiries Unit at (301) 975-
NIST. Mailing address: Public Inquiries Unit, NIST, 100 Bureau Dr., 
Stop 1070, Gaithersburg, MD 20899-1070. If you have a GPO stock number, 
you can purchase printed copies of NIST publications from GPO. GPO 
orders may be mailed to: U.S. Government Printing Office, P.O. Box 
979050, St. Louis, MO 63197-9000, placed by telephone at (866) 512-1800 
(DC Area only: (202) 512-1800), or faxed to (202) 512-2104. Additional 
information is available online at: http://www.nist.gov.
    1. Voluntary Product Standard PS 1-07 (2007), Structural Plywood. 
This standard describes the principal types and grades of structural 
plywood, covering the wood species, veneer grading, adhesive bonds, 
panel construction and workmanship, dimensions and tolerances, marking, 
moisture content and packaging of structural plywood intended for 
construction and industrial uses. Test methods to determine compliance 
and a glossary of trade terms and definitions are included, as is a 
quality certification program involving inspection, sampling, and 
testing of products identified as complying with this standard by 
qualified testing agencies.
    2. Voluntary Product Standard PS 2-04 (2004), Performance Standard 
for Wood-Based Structural-Use Panels. This standard covers performance 
requirements, adhesive bond performance, panel construction and 
workmanship, dimensions and tolerances, marking, and moisture content 
of structural-use panels, such as plywood, waferboard, oriented strand 
board (OSB), structural particle board, and composite panels. The 
standard includes test methods, a glossary of trade terms and 
definitions, and a quality certification program involving inspection, 
sampling, and testing of products for qualification under the standard.

V. References

    The following is a listing of the documents that are specifically 
referenced in this document. The docket includes these documents and 
other information considered by EPA, including documents that are 
referenced within the documents that are included in the docket, even 
if the referenced document is not physically located in the docket. For 
assistance in locating these other documents, please consult the 
technical person listed under FOR FURTHER INFORMATION CONTACT.

1. California Environmental Protection Agency Air Resources Board 
(CARB). Airborne Toxic Control Measure to Reduce Formaldehyde 
Emissions from Composite Wood Products. Final Regulation Order. 
April 2008. http://

[[Page 89714]]

www.arb.ca.gov/regact/2007/compwood07/compwood07.htm.
2. USEPA. Policy on Evaluating Health Risks to Children. 1995. 
http://www.epa.gov/sites/production/files/2014-5/documents/1995_childrens_health_policy_statement.pdf.
3. USEPA, Office of Chemical Safety and Pollution Prevention 
(OCSPP). Economic Analysis of the Formaldehyde Standards for 
Composite Wood Products Act Final Rule (Economic Analysis). December 
2015.
4. World Health Organization. Concise International Chemical 
Assessment Document 40: Formaldehyde. Published under the joint 
sponsorship of the United Nations Environment Programme, the 
International Labour Organization, and the World Health 
Organization, and produced within the framework of the Inter-
Organization Programme for the Sound Management of Chemicals. 
Geneva. 2002.
5. Agency for Toxic Substances and Disease Registry. Toxicological 
Profile for Formaldehyde and 2010 Addendum to the Profile. Atlanta, 
GA: U.S. Department of Health and Human Services, Public Health 
Service. 1999. http://www.atsdr.cdc.gov/toxprofiles/tp111.html.
6. Krzyzanowski M, Quackenboss JJ, Lebowitz MD. Chronic respiratory 
effects of indoor formaldehyde exposure. Environ Res 52(2):117-125. 
1990.
7. Matsunaga, I, Miyake, Y, et al. Ambient formaldehyde levels and 
allergic disorders among Japanese pregnant women: baseline data from 
the Osaka maternal and child health study. Annals of Epidemiology 
18(1): 78-84. (2008).
8. Annesi-Maesano I, Huilin M, Lavaud F, Raherison C, Kopferschmitt 
C, de Blay F, Andre Charpin D, Denis C. Poor air quality in 
classrooms related to asthma and rhinitis in primary schoolchildren 
in the French 6 Cities Study. Thorax 67:682-688. 2012.
9. Venn AJ, Cooper M, Antoniak M, Laughlin C, Britton, Lewis SA. 
Effects of volatile organic compounds, damp, and other environmental 
exposures in the home on wheezing illness in children. Thorax 
58:955-960. 2003.
10. Dannemiller, KC; Murphy, JS; Dixon, SL; Pennell, KG; Suuberg, 
EM; Jacobs, DE; Sandel, M. Formaldehyde concentrations in household 
air of asthma patients determined using colorimetric detector tubes. 
Indoor Air 23: 285-294. 2013.
11. National Toxicology Program. Report on carcinogens. Thirteenth 
edition. Research Triangle Park, NC: U.S. Department of Health and 
Human Services, Public Health Service. 2014. http://ntp.niehs.nih.gov/pubhealth/roc/roc13/index.html.
12. International Agency for Research on Cancer. Formaldehyde [IARC 
Monograph]. In A review of human carcinogens: Chemical agents and 
related occupations (pp. 401-435). Lyon, France. 2012. http://monographs.iarc.fr/ENG/Monographs/vol100F/index.php.
13. National Research Council (NRC). Review of the Formaldehyde 
Assessment in the National Toxicology Program 12th Report on 
Carcinogens. Washington DC: National Academies Press (US). 2014.
14. USEPA, Office of Air and Radiation. National Emission Standards 
for Hazardous Air Pollutants: Plywood and Composite Wood Products; 
List of Hazardous Air Pollutants, Lesser Quantity Designations, 
Source Category List; Final Rule. Federal Register (71 FR 8341, 
February 16, 2006) (FRL-8028-9). http://www.epa.gov/ttn/atw/plypart/fr16fe06.pdf.
15. USEPA, Office of Research and Development. Formaldehyde. 
Integrated Risk Information System (IRIS). 1991. http://www.epa.gov/iris/subst/0419.htm.
16. USEPA, ORD. IRIS Toxicological Review of Formaldehyde-Inhalation 
Assessment (2010 External Review Draft). http://cfpub.epa.gov/ncea/iris_drafts/recordisplay.cfm?deid=223614.
17. USEPA. Approach to Assessing Non-cancer Health Effects from 
Formaldehyde and Benefits from Reducing Non-cancer Health Effects as 
a Result of Implementing Formaldehyde Emission Limits for Composite 
Wood Products. 2013.
18. USEPA. Formaldehyde Emissions from Composite Wood Products; 
Disposition of TSCA Section 21 Petition; Notice. Federal Register 
(73 FR 36504, June 27, 2008).
19. USEPA. Formaldehyde Emissions from Composite Wood Products; 
Advanced notice of proposed rulemaking and notice of public 
meetings. Federal Register. (73 FR 73620, December 3, 2008) (FRL-
8386-3).
20. Public Law 111-199, Title VI-- Formaldehyde Standards for 
Composite Wood Products Act, enacted July 7, 2010. (TSCA section 
601(d), 15 U.S.C. 2601 et seq.).
21. USEPA. Formaldehyde; Third-Party Certification Framework for the 
Formaldehyde Standards for Composite Wood Products; Formaldehyde 
Emissions Standards for Composite Wood Products; Proposed Rule. 
Federal Register (78 FR 34796, June 10, 2013) (FRL-9342-4).
22. USEPA. Formaldehyde Emissions Standards for Composite Wood 
Products; Proposed Rule. Federal Register (78 FR 34820, June 10, 
2013) (FRL-9342-3).
23. USEPA. Report of the Small Business Advocacy Review Panel on 
EPA's Planned Proposed Rule Implementing the Formaldehyde Standards 
for Composite Wood Products Act (TSCA Title VI). April 4, 2011.
24. Composite Panel Association. 2015 Surface and Panel Buyers 
Guide: A Guide to Sourcing and Specifying Composite Panels and 
Decorative Surfaces. http://www.compositepanel.org/education-resources/buyers-guide.html.
25. HPVA. Comments to EPA on Laminated Products & Formaldehyde 
Regulation. May 23, 2014. EPA-HQ-OPPT-2012-0018-0615.
26. CARB. Staff Proposal: Alternate Regulatory Approach for 
Laminated Products Made with Wood Veneer. March 13, 2014.
27. CARB. Staff Report: Initial Statement of Reasons for Proposed 
Rulemaking. March 9, 2007.
28. Salthammer, T., Mentese, S., Marutzky, R. Formaldehyde in the 
Indoor Environment. Chem. Rev., 110 (4), pp 2536-2572. 2010.
29. Kelly, T.I., D.L. Smith, J. Satola. Emission Rates of 
Formaldehyde from Materials and Consumer Products Found in 
California Homes. Environmental Science & Technology Vol. 33: 81-88. 
1999.
30. CARB. Staff Report: Initial Statement of Reasons for Proposed 
Rulemaking, Appendix D. March 9, 2007.
31. CARB. Summary of ARB Testing of Laminated Products. August 19, 
2013.
32. Comment submitted by Jackson Morrill, Director, and Laura Brust, 
Assistant General Counsel, American Chemistry Council Formaldehyde 
Panel. October 9, 2013. EPA-HQ-OPPT-2012-0018-0581.
33. Comment submitted by Bill Perdue, Vice President, Regulatory 
Affairs, American Home Furnishings Alliance. October 2013. EPA-HQ-
OPPT-2012-0018-0562.
34. Remarks by Kelly Shotbolt, President, Flakeboard. Transcript of 
the April 28, 2014 Public Meeting. EPA-HQ-OPPT-2012-0018-0631, pp. 
47-55.
35. Comment submitted by Gail Overgard, Advisor to the Board, Timber 
Products Company. April 2014. EPA-HQ-OPPT-2012-0018-0601.
36. Riedlinger, D., Martin, P., and Holloway, T. Particleboard 
Formaldehyde Emissions and Decay under Elevated Temperature and 
Humidity Conditions, study conducted for Arclin. March 28, 2012.
37. Georgia Pacific. Letter to Lynn Vendinello. August, 15, 2011.
38. Chimar-Hellas. Update on the Formaldehyde Release from Wood-
Based Panels. Undated.
39. ASTM E1333-96 (Reapproved 2002). Standard Test Method for 
Determining Formaldehyde Concentrations in Air and Emission Rates 
from Wood Products Using a Large Chamber.
40. CARB. Staff Report: Initial Statement of Reasons for Proposed 
Rulemaking, Appendix H. March 9, 2007.
41. Comment submitted by Winslow Sargeant, Ph.D., Chief Counsel for 
Advocacy and David Rostker, Assistant Chief Counsel Office of 
Advocacy, U. S. Small Business Administration's Office of Advocacy. 
May 20, 2014. EPA-HQ-OPPT-2012-0018-0529.
42. Comment submitted by the Federal Wood Industries Coalition. May 
8, 2014. EPA-HQ-OPPT-2012-0018-0623
43. ASTM International. ASTM E-1333-10, Standard Test Method for 
Determining Formaldehyde Concentrations in Air and Emission Rates 
from Wood Products Using a Large Chamber.
44. ASTM International. ASTM D-6007-02 (2008), Standard Test Method 
for Determining Formaldehyde Concentrations in Air from Wood 
Products Using a Small Scale Chamber.

[[Page 89715]]

45. USEPA, Science Policy Council. A Summary of General Assessment 
Factors for Evaluating the Quality of Scientific and Technical 
Information. June 2003. EPA 100/B-03/001. http://www.epa.gov/risk/summary-general-assessment-factors-evaluating-quality-scientific-and-technical-information.
46. American National Standards Institute (ANSI)/Hardwood Plywood 
and Veneer Association (HPVA). American National Standard for 
Hardwood and Decorative Plywood, ANSI/HPVA HP-1-2009.
47. ANSI. American National Standard for Medium Density Fiberboard 
(MDF) for Interior Applications, ANSI A208.2 2009.
48. ANSI. American National Standard, Basic Hardboard, ANSI A135.4 
2004.
49. ANSI. American National Standard, Prefinished Hardboard 
Paneling, ANSI A135.5 2004.
50. ANSI. American National Standard, Hardboard Siding, ANSI A135.6 
2006.
51. CARB. Workshop Discussion Draft, Amended Regulation Order. March 
18, 2014. http://www.arb.ca.gov/toxics/compwood/amended0318.pdf.
52. ANSI. American National Standard, Engineered Wood Siding, ANSI 
A135.6-2012.
53. ANSI. American National Standard, Engineered Wood Trim. ANSI 
A135.7-2012.
54. Comments from the Federal Wood Industries Coalition (``FWIC'') 
on the March 18, 2014 Preliminary Draft Amendments to the Air Toxic 
Control Measure to Reduce Formaldehyde Emissions from Composite Wood 
Products. April 22, 2014.
55. ISO/IEC 17011:2004(E), Conformity assessments--General 
requirements for accreditation bodies accrediting conformity 
assessments bodies (First Edition). 2004.
56. ISO/IEC 17020:2012(E), Conformity assessment--Requirements for 
the operation of various bodies performing inspection (Second 
Edition). 2012.
57. ISO/IEC Guide 65:1996(E), General requirements for bodies 
operating product certification systems (First Edition). 1996.
58. ISO/IEC 17065:2012(E), Conformity assessment--Requirements for 
bodies certifying products, processes and services (First Edition). 
2012.
59. ISO/IEC 17020:1998(E), General criteria for the operation of 
various types of bodies performing inspections (First Edition). 
1998.
60. ISO/IEC 17025:2005(E), General requirements for the competence 
of testing and calibration laboratories (Second Edition). May 15, 
2005.
61. USEPA. Central Data Exchange. https://cdx.epa.gov/.
62. USEPA. Cross-Media Electronic Reporting Regulation (CROMERR) (40 
CFR part 3), Federal Register. October 13, 2005 (70 FR 59848) (FRL-
7977-1).
63. USEPA. Central Data Exchange (CDX). Registration User Guide. 
https://cdx.epa.gov/Content/Documents/CDX_Quick_User_Guide.pdf.
64. ASTM D6007-02 (Reapproved 2008), October 1, 2008. Standard Test 
Method for Determining Formaldehyde Concentrations in Air from Wood 
Products Using a Small-Scale Chamber.
65. ASTM D5582-00 (Reapproved 2006). Standard Test Method for 
Determining Formaldehyde Levels from Wood Products Using a 
Desiccator.
66. EN 717-2:1995, Wood-based panels. Determination of formaldehyde 
release--Formaldehyde release by the gas analysis method.
67. Georgia Pacific. DMC (Dynamic Micro Chamber) Manual, 2012 
Edition.
68. Georgia Pacific. DMC (Dynamic Micro Chamber) Manual, 2007 
Edition.
69. EN 120:1992, Wood based panels. Determination of formaldehyde 
content- Extraction method called the perforator method, English 
Version.
70. JIS A 1460:2001 Building boards Determination of formaldehyde 
emission--Desiccator method, English Version.
71. Comments from Ashland Water Technologies, September 9, 2013. 
EPA-HQ-OPPT-0018-0521.
72. ANSI A208.1-2009, American National Standard, Particleboard.
73. NRC. Review of the Environmental Protection Agency's Draft IRIS 
Assessment of Formaldehyde: National Academies Press (US). 2011.
74. USEPA. Information Collection Request (ICR) for the Formaldehyde 
Emission Standards for Composite Wood Products Act Final 
Regulations. EPA ICR No. 2446.02 and OMB No. 2070-0185.
75. USEPA. Final Regulatory Flexibility Analysis for Formaldehyde 
Emission Standards for Composite Wood Products. December 2015.
76. USEPA. Unfunded Mandates Reform Act Statement. Formaldehyde 
Emission Standards for Composite Wood Products; Final. December 
2015.

VI. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is an economically significant regulatory action that 
was submitted to the Office of Management and Budget (OMB) for review 
under Executive Order 12866 (58 FR 51735, October 4, 1993) and 
Executive Order 13563 (76 FR 3821, January 21, 2011). Any changes made 
in response to OMB recommendations have been documented in the docket. 
EPA prepared an analysis of the potential costs and benefits associated 
with this action. This analysis, ``Economic Analysis of the 
Formaldehyde Standards for Composite Wood Products Act Final Rule'' 
(Economic Analysis, Ref. 3) is available in the docket and is 
summarized here.
    1. Entities subject to the rule. EPA analyzed the effect of this 
rule on accreditation bodies, TPCs, panel producers, fabricators, 
wholesalers (i.e., distributors and importers), and retailers. Due to 
the similarities between this rule and the CARB ATCM, the incremental 
costs and benefits of this rule are determined in part by the degree to 
which firms are already complying with the ATCM. Table 3 summarizes the 
estimated number of entities subject to the TSCA Title VI rule and 
their baseline compliance with the CARB ATCM.

  Table 3--Number of Entities in the United States Subject to the Rule
------------------------------------------------------------------------
                                                     Baseline condition
             Type                 TSCA universe     (CARB ATCM universe)
------------------------------------------------------------------------
Accreditation bodies..........  4 firms..........  All 4 ABs currently
                                                    accredit TPCs
                                                    participating in the
                                                    CARB ATCM program.
Third-party certifiers........  11 firms.........  All 11 TPCs currently
                                                    certify stock panels
                                                    mills under the CARB
                                                    ATCM.
Stock panel producers (i.e.,    90 mills operated  79 mills have been
 manufacturers).                 by 54 firms.       certified by CARB
                                                    for at least one
                                                    product, but 16
                                                    mills make at least
                                                    one product that is
                                                    not CARB certified.
                                                    Depending on the
                                                    product type, 98% to
                                                    100% of U.S.
                                                    production volume is
                                                    CARB certified.
Laminated product producers     7,000 to 14,000    Laminators are
 (i.e., laminators).             firms.             considered
Fabricators...................  .................   fabricators under
                                66,000 to 73,000    the CARB ATCM.
                                 firms.             Nationally, 32,000
                                                    of the combined
                                                    group are subject to
                                                    CARB ATCM
                                                    requirements.

[[Page 89716]]

 
Wholesalers (i.e.,              86,000 firms, of   32,000 are subject to
 distributors).                  which 24,000 are   CARB ATCM
                                 importers.         requirements, of
                                                    which 9,000 are
                                                    importers.
Retailers.....................  759,000 firms....  195,000 are subject
                                                    to CARB ATCM
                                                    requirements.
                               -------------------
    Total.....................  925,000 firms....  .....................
------------------------------------------------------------------------

    2. Options evaluated. Congress directed EPA to consider a number of 
elements for inclusion in the implementing regulations, and EPA 
considered various options for addressing these elements. For many of 
the provisions, such as the product-inventory sell-through provision 
and the stockpiling prohibition, EPA did not have the data needed to 
make quantitative estimates of the effects of different options. EPA 
did have sufficient information to analyze options for how the 
definition of hardwood plywood addresses laminated products, the 
recordkeeping required by the rule, and the frequency of quality 
control testing for small production volumes of hardwood plywood. The 
options EPA analyzed are displayed in Table 4.

           Table 4--Options Analyzed in the Economic Analysis
------------------------------------------------------------------------
            Option                            Description
------------------------------------------------------------------------
Option 1: Laminates included   Laminated products made with resins
 in hardwood plywood (HWPW)     formulated with no-added formaldehyde as
 definition with NAF            part of the resin cross-linking
 exemption.                     structure are exempt from the definition
                                of hardwood plywood. Otherwise,
                                laminated product producers must be
                                certified by a TPC, and have products
                                tested to demonstrate that they meet a
                                0.05 ppm emission standard beginning 1
                                year after promulgation of the final
                                rule. This option is equivalent to EPA's
                                proposed rule from June 2013. Reduced
                                recordkeeping for wholesalers and
                                retailers that do not import. Reduced
                                quality control (QC) testing for small
                                hardwood plywood production.
Option 2 (Final Rule):         Laminated products made with phenol-
 Laminates included in HWPW     formaldehyde (PF) resins or resins
 definition with NAF and PF     formulated with no-added formaldehyde as
 exemption.                     part of the resin cross-linking
                                structure are exempt from the definition
                                of hardwood plywood. Otherwise,
                                laminated product producers have 7 years
                                after promulgation of the rule to be
                                certified by a TPC, and have products
                                tested to demonstrate that they meet a
                                0.05 ppm emission standard. Construction
                                firms are not considered fabricators or
                                retailers. Reduced recordkeeping for
                                fabricators, wholesalers and retailers
                                that do not import. Reduced QC testing
                                for small hardwood plywood production.
Option 3: Platform-specific    Laminated products made with phenol-
 emissions limits for           formaldehyde resins or resins formulated
 laminates with reduced         with no-added formaldehyde as part of
 testing with NAF and PF        the resin cross-linking structure are
 exemption.                     exempt from the definition of hardwood
                                plywood. Otherwise, laminated products
                                must have an annual small chamber test
                                demonstrating that they meet the
                                emission standards of the platform used
                                (0.05, 0.09, 0.11, or 0.13 ppm)
                                beginning 2 years after promulgation,
                                but certification is not required.
                                Reduced recordkeeping for wholesalers
                                and retailers that do not import.
                                Reduced QC testing for small hardwood
                                plywood production.
Option 4: Laminate emissions   Laminated products must meet an emissions
 standard consistent with       standard of 0.13 ppm beginning 3 years
 CARB discussion draft.         after promulgation, but no testing or
                                certification is required for laminated
                                product producers. (The laminated
                                product requirements are consistent with
                                the CARB discussion proposal for
                                laminated products from March 2014.)
                                Reduced recordkeeping for wholesalers
                                and retailers that do not import.
                                Reduced QC testing for small hardwood
                                plywood production. Supplier
                                notification required.
Option 5: All laminates        No emission standards apply to laminated
 exempt from HWPW definition.   products, and there are no testing or
                                certification requirements for laminated
                                product producers. Reduced recordkeeping
                                for wholesalers and retailers that do
                                not import. Reduced QC testing for small
                                hardwood plywood production. Supplier
                                notification required.
Option 6: Fully consistent     No emissions standard and no testing or
 with current CARB ATCM.        certification required for laminated
                                products. This option does not include
                                the reductions in recordkeeping
                                requirements or the reductions in QC
                                testing for small volume hardwood
                                plywood production that are included in
                                the other options. Supplier notification
                                required.
------------------------------------------------------------------------

    3. Benefits. Reductions in formaldehyde emissions from composite 
wood products benefits individuals who reside, work, or otherwise spend 
a substantial amount of time where new composite wood products are 
introduced to an indoor space. The Economic Analysis (Ref. 3) estimates 
the benefits of lowering formaldehyde emissions from composite wood 
products.
    Formaldehyde is classified as a known human carcinogen by the 
National Toxicology Program, based on evidence in humans and animals 
(Ref. 3). EPA's quantified benefits estimates include the avoided cases 
of nasopharyngeal cancer (representing upper respiratory tract cancers 
caused by exposure to formaldehyde). The National Toxicology Program 
(NTP) has identified formaldehyde as causing myeloid leukemia, and the 
NRC review of the formaldehyde assessment in NTP's 12th Report on 
Carcinogens (Ref. 13) concluded that there is a causal association 
between formaldehyde exposure and myeloid leukemia. The International 
Agency for Research on Cancer Monograph 100F concluded that 
formaldehyde causes leukemia with a majority of the Working Group 
viewing the evidence as sufficient. EPA did not

[[Page 89717]]

have sufficient information to derive a concentration-response function 
for myeloid leukemia and thus could not estimate the number of cases 
that would be avoided by reducing formaldehyde exposure.
    In addition to cancer, the 2010 draft IRIS assessment identified 
seven categories of non-cancer health effects from formaldehyde 
exposure (sensory irritation, upper respiratory tract pathology, 
pulmonary function effects, asthma and allergic sensitization, immune 
function effects, neurological and behavioral toxicity, and 
developmental and reproductive toxicity) and it proposed reference 
concentrations (RfCs) based on four effects: sensory irritation, 
pulmonary function effects, asthma and allergic sensitization (atopy), 
and reproductive toxicity. The NRC review of the draft IRIS assessment 
was released in April 2011 (Ref. 73), and EPA is currently revising the 
draft in response.
    Overall, EPA concluded that, at this time, it only has sufficient 
information on the relationship between formaldehyde exposure and 
sensory irritation (i.e., irritation of the eye, nose, and throat) to 
include a valuation estimate in the overall benefits analysis. However, 
the valuation studies that were the basis of EPA's benefits estimate 
only reflected the willingness to pay to avoid eye irritation or 
itching eyes. EPA's quantified benefits calculation may be 
underestimating the benefits of avoided exposures, because individuals 
are likely to have a higher willingness to pay to avoid the additional 
symptoms of nose and throat irritation.
    Formaldehyde exposure is associated with a range of respiratory 
related effects. Effects from repeated exposure in humans include 
irritation of the upper respiratory tract, decrements in pulmonary 
function, and nasal epithelial lesions such as metaplasia and loss of 
cilia. Animal studies suggest that formaldehyde may also cause airway 
inflammation. The potential effects of occupational and residential 
formaldehyde exposure on asthma have been investigated in a number of 
studies. Although findings are mixed, formaldehyde appears to trigger 
asthma attacks or related respiratory symptoms (such as wheezing or 
decreased pulmonary function) in those occupationally exposed and/or 
sensitized. A number of studies have found no association between 
formaldehyde exposure and the prevalence of asthma symptoms at low 
exposure levels; other studies, however, observed increased risks of 
other allergic conditions or increased severity of asthma symptoms 
among children with wheeze in the previous year. There are several 
studies that suggest that formaldehyde may increase the risk of asthma, 
particularly in the young, including a study that provided suggestive 
evidence that children are more sensitive than adults to exposure to 
formaldehyde in relation to chronic respiratory symptoms and pulmonary 
function. Formaldehyde exposure has been associated with immune system 
perturbations, suggesting that potential effects of formaldehyde 
exposure on the immune system may be an important part of biological 
pathways for triggering asthmatic responses or the severity of asthma 
symptoms. EPA does not feel that it has sufficient information at this 
time on the relationship between formaldehyde exposure and respiratory 
outcomes to include a valuation estimate in the overall benefits 
analysis.
    Epidemiologic studies suggest an association between occupational 
exposure to formaldehyde and adverse reproductive outcomes in women, 
including reduced fertility. EPA does not feel that it has sufficient 
information at this time on the relationship between formaldehyde 
exposure and reduced fertility to include a valuation estimate in the 
overall benefits analysis.
    EPA concluded that, at this time, it only has sufficient 
information about the relationship of formaldehyde exposure and the 
number of cases of nasopharyngeal cancer and eye irritation to include 
valuation estimates of the endpoints in the quantified benefits 
analysis. Although uncertainty remains regarding how best to quantify 
formaldehyde exposure's effect on other health outcomes, EPA considers 
these effects to be important unquantified impacts that contribute to 
the overall benefits of this rule, as indicated by the ``+B'' in the 
various tables summarizing benefits.
    Table 5 shows the number of cases avoided for an average year of 
regulation. The avoided cancer cases occur over the lifetimes of the 
individuals with exposure reductions.

                       Table 5--Number of Cases Avoided for an Average Year of Regulation
----------------------------------------------------------------------------------------------------------------
                                                                       Cancer                Eye irritation
                                                             ---------------------------------------------------
                           Option                                Lower        Higher       Lower        Higher
                                                                estimate     estimate     estimate     estimate
----------------------------------------------------------------------------------------------------------------
Option 1: Laminates Included in HWPW Definition with NAF               30           74      101,840      686,754
 Exemption..................................................
Option 2: Final Rule--Laminates Included in HWPW Definition            26           65       92,218      604,155
 after 7 Years with NAF and PF Exemption....................
Option 3: Platform-Specific Emissions Limits for Laminates             28           69       98,279      642,120
 with Reduced Testing.......................................
Option 4: Laminate Emissions Standard Consistent with CARB             19           64       79,190      600,072
 Discussion Draft...........................................
Option 5: Exempt All Laminates from HWPW Definition.........           11           27       53,730      273,758
Option 6: Fully Consistent with Current CARB ATCM...........           11           27       53,730      273,758
----------------------------------------------------------------------------------------------------------------

    Table 6 displays the benefits for the options. The total quantified 
benefits of the rule are between $64 million and $186 million per year 
(in 2013 dollars) using a 3% discount rate for annualization, and 
between $26 million and $79 million per year using a 7% discount rate. 
The majority of the quantified benefits are attributable to reductions 
in cancer risk.

[[Page 89718]]



                                        Table 6--Benefits of the Options
                                                [Millions 2013$]
----------------------------------------------------------------------------------------------------------------
                                             3% Discount rate                        7% Discount rate
             Option              -------------------------------------------------------------------------------
                                    Lower estimate      Higher estimate     Lower estimate      Higher estimate
----------------------------------------------------------------------------------------------------------------
Option 1: Laminates included in   $77 + B             $226 + B            $34 + B             $105 + B
 HWPW Definition with NAF
 Exemption.
Option 2: Final Rule--Laminates   64 + B              186 + B             26 + B              79 + B
 included in HWPW definition
 after 7 Years with NAF and PF
 Exemption.
Option 3: Platform-Specific       71 + B              207 + B             30 + B              95 + B
 Emissions Limits for Laminates
 with Reduced Testing.
Option 4: Laminate Emissions      48 + B              189 + B             21 + B              86 + B
 Standard Consistent with CARB
 Discussion Draft.
Option 5: All Laminates Exempt    29 + B              82 + B              13 + B              37 + B
 from HWPW Definition.
Option 6: Fully Consistent with   29 + B              82 + B              13 + B              37 + B
 Current CARB ATCM.
----------------------------------------------------------------------------------------------------------------
``B'' represents the unquantified health benefits

    There are various reasons why the total quantified benefits may be 
underestimated. For example, there are a number of potential health 
effects that are not included in this analysis, which are represented 
in the table using the indicator ``+B''. Monetization of any health 
endpoint identified requires an estimated concentration-response 
function that can be appropriately linked for use in the economic 
analyses. At this time, EPA only has sufficient data to quantify the 
benefits of avoided cases of cancer and sensory irritation, and the 
benefits estimates for these two endpoints are incomplete. The 
estimated cancer benefits do not include avoided cases of myeloid 
leukemia. The estimated benefits for sensory irritation are only based 
on eye irritation, and do not reflect the benefits of avoiding nose and 
throat irritation.
    4. Costs. The Economic Analysis estimates the incremental cost to 
firms located in the U.S. of complying with the requirements of the 
rule compared to the activities that firms are already undertaking, 
often in response to the CARB ATCM. The total costs by option are 
displayed in Table 7. Annualized costs of the rule are $38 million to 
$83 million per year using a 3% discount rate and $43 million to $78 
million per year using a 7% discount rate. Annualized costs for the 
other options ranged from $87 million to $297 million per year using a 
3% discount rate, and $105 million to $301 million per year using a 7% 
discount rate.

                                         Table 7--Total Costs by Option
                                                [Millions 2013$]
----------------------------------------------------------------------------------------------------------------
                                                                  Annualized  (3%)          Annualized  (7%)
                           Option                            ---------------------------------------------------
                                                                  Low          High         Low          High
----------------------------------------------------------------------------------------------------------------
Option 1: Laminates included in hardwood plywood (HWPW)              $155         $297         $167         $301
 definition with NAF exemption..............................
Option 2: Final Rule--Laminates included in HWPW definition            38           83           43           78
 with NAF and PF exemption..................................
Option 3: Platform-specific emissions limits for laminates             97          102          114          119
 with reduced testing.......................................
Option 4: Laminate emissions standard consistent with CARB             88           88          105          105
 discussion draft...........................................
Option 5: All laminates exempt from HWPW definition.........           87           87          105          105
Option 6: Fully consistent with current CARB ATCM...........          124          124          142          142
----------------------------------------------------------------------------------------------------------------

    Table 8 indicates the cost of the final rule (Option 2) by industry 
type.

                                  Table 8--Costs of Final Rule by Industry Type
                                                [Millions 2013$]
----------------------------------------------------------------------------------------------------------------
                                                                  Annualized  (3%)          Annualized  (7%)
                        Industry type                        ---------------------------------------------------
                                                                  Low          High         Low          High
----------------------------------------------------------------------------------------------------------------
Accreditation Bodies........................................        $0.01        $0.01        $0.01        $0.01
Third-Party Certifiers......................................         0.01         0.01         0.01         0.01
Stock panel producers.......................................            2            2            2            2
Laminators..................................................           26           72           26           62
Fabricators (excluding laminators)..........................            6            5            9            8
Wholesalers.................................................            1            1            2            2
Retailers...................................................            3            3            5            5
                                                             ---------------------------------------------------
    Total...................................................           38           83           43           78
----------------------------------------------------------------------------------------------------------------


[[Page 89719]]

    The cost estimates for Options 1 and 2 may be overestimates, in 
that they underestimate the savings that may accrue to laminated 
product producers that switch to phenol-formaldehyde resins or resins 
formulated with no-added formaldehyde as part of the resin cross-
linking structure in order to avoid the costs of TPC certification and 
product testing. EPA's calculations assumed that producers switching to 
qualified resins may incur capital costs for new equipment in order to 
use qualified resins, and ongoing costs (such as decreases in 
productivity, or increases in resin costs and product rejection rates) 
such that the total cost of switching resins would be equivalent to the 
cost of certification and testing. In reality, EPA believes that Option 
1's NAF exemption and Option 2's NAF and PF exemption would result in 
significant cost savings for some producers. However, EPA lacked 
sufficient information to estimate the magnitude of such cost savings.
    Furthermore, EPA may be overestimating the cost for Option 2 
because the analysis does not account for potential long-term savings 
that may accrue as a result of setting the manufactured-by date for 
laminated products 7 years from the promulgation of the rule. EPA 
believes that the 7 year period will reduce costs because laminated 
product producers will be able to more efficiently evaluate different 
resin technologies and, where they choose to switch to a phenol-
formaldehyde resin or a resin formulated with no-added formaldehyde as 
part of the resin cross-linking structure, to successfully implement a 
new resin in their production process. There may also be technological 
innovation during this 7 year period that will reduce the cost or 
remove some of the technical barriers to using qualified resins in some 
applications. However, EPA did not have sufficient information to 
estimate the savings to due efficiencies or innovation. Furthermore, 
the industry may be able to develop and conduct studies that support 
additional exemptions or changes to the rule during this 7 year period, 
or after that period, and apply to the Agency for an exemption of their 
laminated product from the definition of hardwood plywood. Again, EPA 
was unable to predict the cost savings that may result from such 
activities.
    5. Net benefits. Net benefits are the difference between benefits 
and costs. The net benefits for the options are displayed in Table 9. 
The rule is estimated to result in quantified net benefits of -$19 
million to $148 million per year using a 3% discount rate, and -$53 
million to $36 million per year using a 7% discount rate. Quantified 
net benefits for the other options range from -$220 million to $109 
million per year using a 3% discount rate and -$268 million to -$20 
million per year using a 7% discount rate. There are additional 
unquantified benefits due to other avoided health effects. EPA 
considers health benefits from avoided health effects to be potentially 
important non-monetized impacts that contribute to the overall net 
benefits of this rule, and has represented their inclusion in Table 9 
using the letter ``B''.

                                      Table 9--Net Benefits of the Options
                                                [Millions 2013$]
----------------------------------------------------------------------------------------------------------------
                                             3% Discount rate                        7% Discount rate
             Option              -------------------------------------------------------------------------------
                                    Lower  estimate    Higher  estimate     Lower  estimate    Higher  estimate
----------------------------------------------------------------------------------------------------------------
Option 1: Laminates included in   ($220) + B          $71 + B             ($268) + B          ($62) + B
 HWPW Definition with NAF
 Exemption.
Option 2: Final Rule--Laminates   ($19) + B           $148 + B            ($53) + B           $36 + B
 included in HWPW definition
 after 7 Years with NAF and PF
 Exemption.
Option 3: Platform-Specific       ($31) + B           $109 + B            ($88) + B           ($20) + B
 Emissions Limits for Laminates
 with Reduced Testing.
Option 4: Laminate Emissions      ($40) + B           $101 + B            ($85) + B           ($20) + B
 Standard Consistent with CARB
 Discussion Draft.
Option 5: All Laminates Exempt    ($58) + B           ($6) + B            ($92) + B           ($67) + B
 from HWPW Definition.
Option 6: Fully Consistent with   ($95) + B           ($43) + B           ($130) + B          ($105) + B
 Current CARB ATCM.
----------------------------------------------------------------------------------------------------------------
``B'' represents the unquantified health benefits.

    The final rule (Option 2) has higher estimated net benefits than 
the other options. The lower estimate of quantified net benefits for 
the final rule are negative, but EPA believes these quantified 
estimates overstate costs and significantly undercount the benefits. 
After assessing both the costs and the benefits of the rule, and 
considering the unquantified cost savings and benefits, EPA has made a 
reasoned determination that the benefits of the rule justify its costs.

B. Paperwork Reduction Act (PRA)

    The information collection requirements in this rule have been 
submitted to OMB for review and approval under the PRA, 44 U.S.C. 3501 
et seq. The Information Collection Request (ICR) document prepared by 
EPA has been assigned EPA ICR number 2446.02, and the OMB Control No. 
2070-0185 (Ref. 74). You can find a copy of the ICR in the docket for 
this rule, and it is briefly summarized here. The information 
collection requirements are not enforceable until OMB approves them.
    The new information collection activities contained in this rule 
are designed to assist the Agency in meeting the requirement in section 
601(d) of TSCA that EPA promulgate implementing regulations in a manner 
that ensures compliance with the TSCA Title VI emission standards. The 
new information collection requirements affect firms that sell, supply, 
offer for sale, or manufacture (including import) hardwood plywood, 
particleboard, MDF, or finished goods containing these materials in the 
United States, as well as firms that provide testing and third-party 
certification or oversight services. Although firms have the option of 
choosing to engage in the covered activities, once a firm chooses to do 
so, the information collection activities contained in this rule become 
mandatory for that firm.
    Respondents/affected entities: Panel producers, fabricators, 
distributors, retailers, TPCs, and ABs.
    Respondent's obligation to respond: Mandatory (15 U.S.C. 2697 et 
seq.).
    Estimated number of respondents: 990,000 firms, including 66,000 
foreign firms.
    Frequency of response: On occasion.
    Total estimated burden: 1.5 million hours per year when excluding 
burden for activities performed in the baseline; 1.7 million hours per 
year when including burden for activities

[[Page 89720]]

performed in the baseline. Burden is defined at 5 CFR 1320.3(b).
    Total estimated cost: $105 million per year when excluding cost for 
activities performed in the baseline; $138 million per year when 
including cost for activities performed in the baseline; with no 
annualized capital or operation & maintenance costs. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a currently valid OMB 
control number. The OMB control numbers for EPA's regulations in 40 CFR 
are listed in 40 CFR part 9. When OMB approves this ICR, the Agency 
will announce that approval in the Federal Register and publish a 
technical amendment to 40 CFR part 9 to display the OMB control number 
for the approved information collection activities contained in this 
final rule.

C. Regulatory Flexibility Act (RFA)

    Pursuant to sections 603 and 609(b) of the RFA, 5 U.S.C. 601 et 
seq., EPA prepared an initial regulatory flexibility analysis (IRFA) 
for the proposed rule and convened a Small Business Advocacy Review 
(SBAR) Panel to obtain advice and recommendations from small entity 
representatives that potentially would be subject to the rule's 
requirements. Summaries of the IRFA and Panel recommendations are 
presented in the proposed rule at 78 FR 34820.
    As required by section 604 of the RFA, the EPA prepared a final 
regulatory flexibility analysis (FRFA) for this action (Ref. 75). The 
complete FRFA is available in the docket and is summarized here.
    1. Need For and Objectives of the Rule. TSCA section 601(d) directs 
EPA to promulgate regulations to implement the formaldehyde standards 
for composite wood products described in TSCA section 601(b)(2). EPA is 
issuing this rule under TSCA Title VI to implement the statutory 
formaldehyde emission standards for hardwood plywood, medium-density 
fiberboard, and particleboard sold, supplied, offered for sale, or 
manufactured (including imported) in the United States. As directed by 
the statute, this rule includes provisions relating to, among other 
things, laminated products, products made with ultra-low emitting 
formaldehyde or no-added formaldehyde resins, third-party testing and 
certification requirements, product labeling, chain of custody 
documentation and other recordkeeping requirements, and product 
inventory sell-through provisions, including a product stockpiling 
prohibition.
    The legal basis for the rule is TSCA section 601(d), which provides 
authority for the Administrator to ``promulgate regulations to 
implement the standards required under subsection (b) in a manner that 
ensures compliance with the emission standards described in subsection 
(b)(2).'' Therefore, the central objective of this rule is to ensure 
compliance with the TSCA Title VI formaldehyde emission standards.
    2. Description and Number of Small Entities to Which the Rule Will 
Apply. The rule potentially affects small ABs and TPCs, as well as 
manufacturers (including importers), fabricators, distributors, and 
retailers of composite wood products. For purposes of assessing the 
impacts of the rule on small entities, small entity is defined as: (1) 
A small business as defined by the Small Business Administration's 
(SBA) regulations at 13 CFR 121.201; (2) a small governmental 
jurisdiction that is a government of a city, county, town, school 
district or special district with a population of less than 50,000; and 
(3) a small organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field. EPA 
estimates that the rule will affect approximately 922,000 small 
entities.
    3. Projected Compliance Requirements. As directed by the statute, 
this rule includes provisions relating to, among other things, 
laminated products, products made with no-added formaldehyde resins or 
ultra-low emitting formaldehyde resins, third-party testing and 
certification requirements, product labeling, chain of custody 
documentation and other recordkeeping requirements, and product 
inventory sell-through provisions, including a product stockpiling 
prohibition. This rule establishes requirements for ABs, TPCs, 
manufacturers (including importers), fabricators, distributors, and 
retailers of composite wood products.
    The regulatory provisions in this rule are designed to ensure 
compliance with the TSCA Title VI formaldehyde emission standards while 
aligning, where practical, with the regulatory requirements under the 
CARB ATCM to reduce formaldehyde emissions from composite wood 
products. By aligning itself with the existing CARB requirements where 
practical, EPA seeks to avoid differing or duplicative regulatory 
requirements that would result in an increased burden on the regulated 
community. However, EPA deviated from the CARB ATCM where doing so 
would reduce burden while still ensuring compliance with the TSCA Title 
VI emission standards. The rule has annualized costs that are $41 
million to $99 million per year less than an alternative that is fully 
consistent with the CARB ATCM, and benefits that are $13 million to 
$104 million per year higher.
    4. Classes of Small Entities Subject to the Compliance 
Requirements. Small entities include small businesses, small 
organizations, and small governmental jurisdictions. The small 
businesses that are potentially directly regulated by this rule are 
ABs, TPCs, manufacturers (including importers), fabricators, 
distributors, or retailers of composite wood products. The small 
organizations that are potentially directly regulated by the rule are 
small ABs and TPCs. No small governments are expected to be directly 
regulated by the rule.
    5. Professional Skills Needed to Comply. ABs must assess TPCs to 
determine whether they are eligible for accreditation. Product ABs are 
responsible for ensuring that a TPC has a process in place to verify 
the accuracy of the formaldehyde quarterly and quality control tests, 
and that the TPC has a process in place to monitor panel producer 
quality assurance programs, and conduct independent inspections of 
panel producers, their quality control testing facilities and their 
laboratories. Laboratory ABs are responsible for verifying that the TPC 
laboratory is experienced and capable of conducting formaldehyde 
emissions tests. These activities are the part of the basic function of 
ABs, so qualified ABs should already have the skills needed to conduct 
them. ABs must also submit an application to EPA and enter into a 
recognition agreement, keep records, and submit notifications and an 
annual report, but these activities do not require any special skills.
    TPCs must conduct inspections of composite wood products and 
properly train and supervise inspectors to inspect composite wood 
products, and have demonstrated experience in performing or verifying 
formaldehyde emissions testing on composite wood products. TPCs must 
also verify that each panel producer has adequate quality assurance and 
quality control procedures and inspect each panel producer, its 
products, and its records at least quarterly. These activities are the 
part of the basic function of TPCs, so qualified TPCs should already 
have the skills needed to conduct them. TPCs must also submit an 
application to EPA, keep records, and submit notifications and an 
annual report, but these activities do not require any special skills.
    Each panel producer must designate a person as quality control 
manager with adequate experience and/or training to

[[Page 89721]]

be responsible for formaldehyde emission quality control. EPA has not 
incorporated minimum education, experience, or training requirements 
for this position, but experience in the wood products industry or a 
degree in chemistry or a related field might provide the skills needed 
to comply with the requirements.
    A panel producer must be able to follow sampling and handling 
procedures for the material that is to be tested. However, those 
procedures must be described in the facility's quality control manual, 
and specified skills should not be needed to follow the written 
procedures.
    Each panel producer must also designate a quality control facility 
for conducting quality control formaldehyde testing, and the quality 
control facility must have quality control employees with adequate 
experience and/or training to conduct accurate chemical quantitative 
analytical tests. But instead of performing these functions themselves, 
panel producers have the option of hiring an accredited TPC or a 
contract laboratory to fulfill these requirements.
    To obtain product certification, a panel producer must apply to an 
accredited TPC, and must provide information and notifications to the 
TPC. Finally, manufacturers, fabricators, distributors, or retailers of 
composite wood products must maintain records. None of these activities 
requires any special skills.
    6. Other Federal Rules that may Duplicate, Overlap, or Conflict 
with the Rule. HUD has regulations governing formaldehyde emission 
levels from plywood and particleboard materials installed in 
manufactured homes. (See 24 CFR 3280.308.) However, TSCA Title VI 
establishes specific formaldehyde emission standards for hardwood 
plywood, particleboard, and medium-density fiberboard and does not 
provide EPA with the authority to modify these standards. Furthermore, 
the Formaldehyde Standards for Composite Wood Products Act, which 
includes TSCA Title VI, directs HUD to revise their regulations to 
ensure that they reflect the emission standards in TSCA Title VI. And 
the HUD regulations do not deal with the other elements addressed in 
these implementing regulations (where EPA does have the authority to 
make determinations) such as laminated products, products made with no-
added formaldehyde resins or ultra-low emitting formaldehyde resins, 
testing requirements, chain of custody documentation, and product 
inventory sell-through provisions. Therefore, the regulatory provisions 
for which EPA has flexibility in implementing the statute do not 
duplicate, overlap, or conflict with any other Federal rules.
    7. Potential Economic Impacts on Small Entities. Of the 
approximately 922,000 small entities affected by the rule, almost 
910,000 (about 99 percent) are expected to have costs impacts that are 
less than one percent of their revenues, nearly 7,000 entities (less 
than 1 percent) are expected to experience impacts at levels between 
one and three percent of their revenue, and 5,000 entities (less than 1 
percent) are expected to incur costs exceeding three percent of their 
revenues.
    Many of the entities with cost impacts above 1 percent of their 
revenues are fabricators, wholesalers, and retailers with annualized 
costs less than $250 (i.e., they are firms with annual revenues below 
$25,000). These entities account for 98 percent of those with cost 
impacts that are between 1 and 3 percent and 100 percent of those with 
cost impacts that exceed 3 percent.
    8. Small Business Advocacy Review Panel. As required by section 
609(b) of the RFA, as amended by the Small Business Regulatory 
Enforcement Fairness Act (SBREFA), EPA conducted outreach to small 
entities and convened a Small Business Advocacy Review Panel to obtain 
advice and recommendations of representatives of the small entities 
that potentially would be subject to the rule's requirements. The Panel 
solicited input on all aspects of the rule. Consistent with the RFA/
SBREFA requirements, the Panel evaluated the assembled materials and 
small-entity comments on issues related to elements of the FRFA. It is 
important to note that the Panel's findings and discussion were based 
on the information available at the time the final report was prepared 
(Ref. 23). EPA has continued to conduct analyses relevant to the rule. 
The Panel's most significant findings and recommendations on the TSCA 
Title VI implementing regulations are discussed in the preamble to the 
proposed rule and in the FRFA for this action.
    9. Alternatives incorporated into the rule. Over the course of this 
rulemaking, EPA considered alternatives for various provisions of the 
rule. EPA made a concerted effort to keep the costs and burdens 
associated with this rule as low as possible while still ensuring 
compliance with the TSCA Title VI emission standards. In developing the 
rule, EPA considered the statutory requirements and the benefits from 
protection of human health and the environment, as well as the 
compliance costs imposed by the rule, both in general and on small 
entities. EPA took a number of steps to reduce the economic impact that 
might be imposed by this rule, on both small and large entities, where 
doing so was consistent with the statutory mandate. For example, EPA 
established a different compliance schedule for laminated product 
producers by setting the manufactured-by date for laminated products at 
7 years after promulgation. As another example, EPA has simplified 
compliance requirements by allowing laminated product producers, 
wholesalers, and retailers that do not import products to use invoices, 
bills of lading, or comparable documents to fulfil their recordkeeping 
and chain-of-custody obligations. The emission standards are 
performance standards rather than design standards. And the rule does 
not regulate construction firms that are renovating, remodeling, or 
selling buildings from the definitions of fabricator and retailer. 
These provisions are not limited to small entities but, given the 
number of small entities in the affected industries, they will benefit 
many small entities.
    EPA's Economic Analysis analyzed options with different provisions 
for the definition of hardwood plywood; the emission standards for 
laminated products; the testing and certification requirements for 
laminated products; the implementation dates for laminated product 
emissions, testing and certification requirements; and the chain of 
custody and recordkeeping requirements. Although EPA did not have 
sufficient information to analyze and quantify the cost and burden 
reductions resulting from many of the provisions it adopted, they still 
reduce the impacts of the rule. Some of the steps that EPA took include 
the following, which are described in more detail in the FRFA for this 
action. These steps include:
     Aligning with the CARB ATCM where practical.
     Defining hardwood plywood to exempt laminated products 
made with phenol-formaldehyde resins or resins formulated with no-added 
formaldehyde as part of the resin cross-linking structure and compliant 
platforms, and allowing laminated products made into component parts to 
take advantage of the exemption.
     Establishing the manufactured-by date for laminated 
products at 7 years after promulgation.
     Reducing recordkeeping for non-manufacturers.
     Reducing testing for NAF and ULEF products.
     Not requiring retailers to relabel products that they 
divide or repackage.

[[Page 89722]]

     Reducing quality control testing for small hardwood 
plywood production.  Reducing quality control testing for 
certain panel producers with consistent operations.
     Allowing grouping of products and product types for 
testing.
     Defining hardboard based on industry standards.
     Extending the manufactured-by date for the sell-through 
provisions.
     Allowing alternate test methods for quality control 
testing.
     Not requiring recordkeeping for most exempt products.
     Allowing TPCs approved by CARB to certify products under 
TSCA Title VI for two years after the publication of the final rule.
     Allowing reciprocity for CARB-approved TPCs.
     Allowing representative emission levels to be used to 
demonstrate test method equivalence.
     Creating a de minimis exception.
     Not requiring retention of tested lots while awaiting the 
test results.
    10. Alternatives considered but not incorporated into the rule. EPA 
also considered and rejected several alternatives for the regulation of 
laminated products, which could have reduced the economic impacts of 
the rule on small entities. For the reasons described below, these 
alternatives are not consistent with the statutory objectives and thus 
are not incorporated in the final rule. Additional information on the 
alternatives that EPA considered is presented elsewhere in this notice.
    a. Complete exemption of laminated products from the definition of 
hardwood plywood. This alternative is consistent with the current CARB 
ATCM. However, the rulemaking record contains ample evidence that some 
laminated products can have high formaldehyde emissions. CARB provided 
data on laminated product testing conducted in cooperation with the 
American Home Furnishings Alliance (AHFA). CARB tested 16 different 
sets of samples, each consisting of the same type of MDF or 
particleboard panel in three different states: Raw; with a veneer 
attached with a urea-formaldehyde resin; and with a stain or finish 
applied to the veneer. In most cases, the laminated products emitted 
more formaldehyde than was emitted by the platforms, likely due to the 
resin used to affix the veneer. In several cases, the formaldehyde 
emissions from the laminated product were considerably higher than the 
emissions from the platform.
    Considering the laminated products in the CARB/AHFA data set 
without stain or finish (which is how the TSCA Title VI emission 
standards are applied), only one of the 16 samples had emissions below 
0.05 ppm, the standard for hardwood plywood. For 13 of 16 samples, the 
emissions from the veneered product were higher than from the 
corresponding raw platform, with increases ranging from 0.04 ppm to 
1.17 ppm. Laminated product often had emissions that were an order of 
magnitude higher than the particleboard or MDF platforms that they were 
made from. Eleven of the 16 samples had emissions above the standard 
for their platform type. Five of the eight samples made with MDF 
exceeded the 0.11 ppm Phase II standard for MDF, with emissions ranging 
from 0.17 ppm to 1.35 ppm. Six of the eight samples made with 
particleboard exceeded the 0.09 ppm Phase II standard for 
particleboard, with emissions ranging from 0.13 to 1.29 ppm.
    EPA reads TSCA Title VI to include laminated products as hardwood 
plywood unless EPA can make the case, based on available and relevant 
information, that they should be excluded. EPA finds that the CARB/AHFA 
data set provides ample evidence that the process of lamination with 
urea-formaldehyde resins generally increases formaldehyde emissions 
from composite wood products. Therefore, completely exempting laminated 
products from the definition of hardwood plywood would not be 
consistent with the statutory objectives.
    b. Emission standard of 0.13 ppm for laminated products with no 
testing or certification. This alternative is consistent with CARB's 
March 2014 discussion draft. The record, especially the CARB/AHFA data 
set, demonstrates that some laminated products have high formaldehyde 
emissions, so a requirement that the platform be compliant does not 
ensure that a laminated product made with urea-formaldehyde resin will 
also be compliant with a 0.13 ppm standard. While thirteen of the raw 
platforms in the CARB/AHFA data set complied with the relevant Phase II 
emissions standard, only 5 of the 16 veneered samples without stain or 
finish met the 0.13 ppm level. Nine of the 16 samples had emissions 
ranging from 0.17 to 1.35 ppm. For 13 of 16 samples, the emissions from 
the veneered product were higher than from the raw platform. These 
increases ranged from 0.04 ppm to 1.17 ppm, and represented an increase 
of 57 percent to 2,533 percent compared to the platform emissions.
    Given the CARB/AHFA data set, with formaldehyde emissions from most 
veneered samples exceeding 0.13 ppm, EPA is unable to find that this 
approach is consistent with the statutory objectives. To the contrary, 
this data set provides evidence that without some sort of active effort 
to control formaldehyde emissions, whether through the use of phenol-
formaldehyde resins or resins formulated with no-added formaldehyde as 
part of the resin cross-linking structure or some emissions testing, it 
is likely that many laminated products will exceed a 0.13 ppm emission 
standard. Therefore, a 0.13 ppm emission standard for laminated 
products with no testing or certification would not be consistent with 
the statutory objectives.
    c. Platform-specific emission standards, annual testing, no 
certification. Under this alternative, unfinished laminated products 
would have to meet the emissions limit for the type of platform they 
are made with (0.05 ppm for veneer core, 0.09 ppm for particleboard, 
0.11 ppm for MDF, and 0.13 ppm for thin MDF). An annual emissions test 
would be required, but TPC certification would not be required.
    The record, especially the CARB/AHFA data set, demonstrates that 
some laminated products have high formaldehyde emissions, so a 
requirement that the platform be compliant does not, by itself, ensure 
that a laminated product made with urea-formaldehyde resin will also be 
compliant with the platform emission standard. While 13 of the 16 
platforms met the Phase II emission standards, only 5 of 16 of the 
veneered products without stain or finish met the emission standard for 
their platform.
    Furthermore, an annual emission test may not be sufficient to 
ensure compliance for products, particularly those made with urea-
formaldehyde resin. Several public commenters were concerned about the 
effect of reduced testing requirements for laminated products. One 
questioned whether an annual test could account for variation in 
production processes and seasonal variations. Another claimed that it 
is inconceivable that an effective and reliable enforcement scheme 
could be developed that hinged on a single yearly test. Yet another 
stated that annual testing could be misleading, because the testing may 
not be accurate or representative of average emissions. EPA agrees that 
more than one test per year is important to ensure that laminated 
products that are not made with phenol-formaldehyde resins or resins 
formulated with no-added formaldehyde as part of the resin cross-
linking structure comply with the emission standard.
    EPA also believes that TPCs have an important role to play in 
ensuring

[[Page 89723]]

compliance. Various factors (such as resin system, core type, core 
resin type, veneer type, and number of plies) could influence 
formaldehyde emissions from hardwood plywood, including laminated 
products. EPA is allowing TPCs to approve the grouping of products with 
similar formaldehyde emission characteristics for quarterly and quality 
control testing. EPA believes that the TPC, working in conjunction with 
the platform producer, is in the best position to select the product(s) 
to be tested in order to determine whether production at the facility 
is in compliance with the emission standards.
    Therefore, a platform-specific emission standard for laminated 
products with annual testing but no certification would not be 
consistent with the statutory objectives.
    d. Conclusion. On the basis of information currently available to 
the Agency, EPA has concluded that these alternative options are not 
consistent with TSCA Title VI's statutory objective to reduce 
formaldehyde emissions from composite wood products.
    In addition, EPA is preparing a Small Entity Compliance Guide to 
help small entities comply with this rule. The guide or guides will 
have information to assist small TPCs, ABs, fabricators, panel 
producers, importers, distributors, and retailers. After the date that 
this rule's requirements take effect the guide or guides will be 
available on EPA's Web site http://www.epa.gov/formaldehyde.

D. Unfunded Mandates Reform Act (UMRA)

    This action contains a Federal mandate under UMRA, 2 U.S.C. 1531-
1538, that may result in expenditures of $100 million or more for 
State, local, and tribal governments, in the aggregate, or the private 
sector in any one year. Accordingly, EPA has prepared a written 
statement required under section 202 of UMRA (Ref. 76). The statement 
is included in the docket for this action and briefly summarized here.
    1. Authorizing legislation. This rule is issued under the authority 
of section 601 of TSCA, 15 U.S.C. 2697.
    2. Cost-benefit analysis. The Economic Analysis (Ref. 3) presents 
the costs of the rule as well as various regulatory options and is 
summarized in Unit VI.A. The rule is calculated to result in a total 
cost of $253 million to $359 million in the first year, although this 
is likely an overestimate. (The rule allows laminators 7 years before 
they must begin using NAF or PF resins and compliant platforms, or have 
their products tested and certified. EPA's analysis assumes that 
laminated product producers that decide to switch to qualified resins 
would incur all the transition costs in the first year, while in 
reality those costs are likely to be spread over the 6 year period.) 
The subsequent year costs are lower, so that the total annualized cost 
of this rule is $38 million to $83 million per year when using a 3 
percent discount rate and $43 million to $78 million per year using a 7 
percent discount rate. When adjusted for inflation, the $100 million 
UMRA threshold is equivalent to approximately $153 million in 2013 
dollars. Thus, the first cost of the rule to the private sector and 
State, local, and Tribal governments in the aggregate may exceed the 
inflation-adjusted UMRA threshold.
    This rule will reduce exposures to formaldehyde, resulting in 
benefits from avoided adverse health effects. For the subset of health 
effects where the results were quantified, the estimated annualized 
benefits (due to avoided incidence of nasopharyngeal cancer and eye 
irritation) are $64 million to $186 million per year using a 3% 
discount rate, and $26 million to $79 million per year using a 7% 
discount rate. There are additional unquantified benefits due to other 
avoided health effects.
    Net benefits are the difference between benefits and costs. The 
rule is estimated to result in quantified net benefits of -$19 million 
to $148 million per year using a 3% discount rate, and -$53 million to 
$36 million per year using a 7% discount rate. EPA considers 
unquantified cost savings for laminated product producers (from the NAF 
and PF exemption and the 7 year period to meet the emission standards) 
as well as the additional unquantified health benefits to be 
potentially important non-monetized impacts that contribute to the 
overall net benefits of this rule.
    3. State, local, and Tribal government input. Consistent with the 
intergovernmental consultation provisions of section 204 of the UMRA 
EPA has consulted with governmental entities affected by this rule. 
With the assistance of the National Conference of State Legislatures, 
EPA consulted with state environmental health directors, who were 
generally supportive of EPA's efforts. And EPA has met with officials 
from the state of California on numerous occasions to discuss aspects 
of the CARB ATCM and its implementation. California is very supportive 
of EPA's efforts to promulgate regulations to implement national 
composite wood product formaldehyde emission standards that are modeled 
on the CARB ATCM.
    4. Least burdensome option. Consistent with section 205, EPA has 
identified and considered a reasonable number of regulatory 
alternatives. TSCA Title VI establishes specific formaldehyde emission 
standards for hardwood plywood, particleboard, and medium-density 
fiberboard and does not provide EPA with the authority to modify these 
standards. The statute further directs EPA to promulgate implementing 
regulations that address elements such as laminated products, products 
made with ultra low-emitting formaldehyde resins, products made with 
no-added formaldehyde resins, testing requirements, product labeling, 
chain of custody documentation and other recordkeeping requirements, 
and product inventory sell-through provisions. EPA has considered a 
number of regulatory alternatives for regulating laminated products, as 
described in Unit III and elsewhere in this Unit, as well as in the 
Economic Analysis (Ref. 3). The final rule has the lowest cost of the 
alternatives that EPA considered. Furthermore, the available 
information indicates that laminated products made with urea-
formaldehyde resins can have high formaldehyde emissions. Therefore, on 
the basis of information currently available to the Agency, EPA has 
concluded that the alternative options for laminated products would not 
be consistent with the statutory objective to reduce formaldehyde 
emissions from composite wood products. After assessing both the costs 
and the benefits of the rule (both quantified and unquantified), EPA 
has determined that the rule is the least burdensome option that is 
consistent with TSCA Title VI's objective.
    This action is not subject to the requirements of section 203 of 
UMRA because it contains no regulatory requirements that might 
significantly or uniquely affect small governments.

E. Executive Order 13132: Federalism

    This action does not have federalism implications, as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999). It will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000). The rule would 
not regulate tribal governments directly, it would regulate

[[Page 89724]]

entities that accredit TPCs, certify panel producers, or manufacture 
(including import), fabricate, distribute, or sell composite wood 
products. Governments do not typically engage in these activities. 
Tribal governments do not typically engage in these activities. Thus, 
Executive Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    This action is subject to Executive Order 13045 because it is an 
economically significant regulatory action as defined by Executive 
Order 12866, and the EPA believes that the environmental health or 
safety risk addressed by this action may have a disproportionate effect 
on children. Accordingly, we have evaluated the environmental health or 
safety effects on children. This action's health and risk assessments 
are described in Units I.F. and II.A. and contained in the economic 
analysis (Ref. 3). As described therein, exposure to formaldehyde may 
cause disproportionate effects on children compared to adults both in 
terms of cancer risk, and respiratory effects. The rule itself will not 
have disproportionally high and adverse effects on children. Rather, 
these standards would reduce emissions of formaldehyde from composite 
wood products for individuals of all ages that are exposed and children 
may accrue higher benefits from the exposure reductions compared to 
adults.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This rule is not a ``significant energy action'' as defined in 
Executive Order 13211 (66 FR 28355, May 22, 2001), because it is not 
likely to have any adverse effect on the supply, distribution, or use 
of energy. Further, this rule is not likely to have any adverse energy 
effects because it regulates formaldehyde emissions from composite wood 
products and does not require any action related to the supply, 
distribution, or use of energy.

I. National Technology Transfer and Advancement Act (NTTAA)

    This action involves technical standards, many of which EPA is 
directed to use by TSCA Title VI. Technical standards identified in the 
statute include the two quarterly test methods, ASTM E1333-96 and ASTM 
D6007-02, a quality control test method, ASTM D5582-00, and various 
standards that define specific composite wood products, such as ASTM D-
5456-06 (Structural Composite Lumber Products), ASTM D-5055-05 
(Prefabricated Wood I-Joists), ANSI/AITC A190.1 (Structural Glued 
Laminated Timber), ANSI/HPVA HP-1-2009 (Hardwood and Decorative 
Plywood), ANSI A208.2-2009 (Medium Density Fiberboard), ANSI A208.1-
2009 (Particleboard), PS 1-07 (Structural Plywood), and PS 2-04 (Wood-
Based Structural-Use Panels).
    In addition, EPA has identified other voluntary consensus standards 
and incorporated them into this action. These include standards for 
accreditation and certification (ISO/IEC 17011, ISO/IEC 17020, ISO/IEC 
17025, and ISO/IEC 17065), as well as the revised quarterly test 
method, ASTM E1333-10, and standards that define hardboard, ANSI 
A135.4, ANSI A135.5, ANSI A135.6, and ANSI 135.7. EPA is allowing 
certain alternative quality control test methods that are incorporated 
in voluntary consensus standards, EN 717-2 (gas analysis), EN 120 
(perforator), and JIS A 1460 (24-hour desiccator).
    EPA is using voluntary consensus standards issued by the 
International Organization for Standardization, ASTM International, the 
American National Standards Institute, the National Institute of 
Standards and Technology, the European Committee for Standardization, 
Georgia Pacific Chemicals LLC, and the Japanese Standards Association. 
Copies of the standards referenced in the regulatory text have been 
placed in the docket for this rule. See Unit IV for information on how 
to obtain copies of these standards from other sources.

J. Executive Order 12898: Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations

    EPA has determined that the human health or environmental risk 
addressed by this action will not have potential disproportionately 
high and adverse human health or environmental effects on minority, 
low-income or indigenous populations, as specified in Executive Order 
12898 (59 FR 7629, February 16, 1994). The results of this evaluation 
are contained in the Economic Analysis (Ref. 3).
    The Economic Analysis, described in Unit VI.A, monetizes the 
benefits from reducing the number of cases of nasopharyngeal cancer and 
sensory irritation and includes an environmental justice analysis that 
expands on the primary benefits analysis by analyzing the monetized 
impacts specifically for minority and low-income populations. Results 
indicate that disaggregation of total benefits by population groups 
leads to variation in the range of individual benefits, by minority 
population. The affected Non-Hispanic White population accounts for 63% 
of the total affected population, and accrues 59% of the quantified 
benefits. In comparison, for minority populations the quantified 
benefits equal or exceed their share of the total population. Minority 
populations represent about 37% of the individuals affected by the rule 
and are estimated to accrue about 41% of the rule's quantified 
benefits. The affected Non-Hispanic Black population account for 11% of 
the total affected population, accrue 12% of the quantified benefits. 
The affected Hispanic population account for 17% of the total affected 
population, and accrue 19% of the quantified benefits. The affected 
Non-Hispanic American Indian or Alaska Native population account for 
0.7% of the total affected population, accrue 0.7% of the quantified 
benefits. The affected low-income population account for 15% of the 
total affected population and accrue 18% of the quantified benefits.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, 5 U.S.C. 801 et seq., and EPA 
will submit a rule report to each House of the Congress and to the 
Comptroller General of the United States. This action is a ``major 
rule'' as defined by 5 U.S.C. 804(2).

List of Subjects in 40 CFR Part 770

    Environmental protection, Formaldehyde, Incorporation by reference, 
Reporting and recordkeeping requirements, Third-party certification, 
Toxic substances, Wood.

    Dated: July 27, 2016.
Gina McCarthy,
Administrator.
    Therefore, 40 CFR chapter I, subchapter R, is amended by adding 
part 770 to read as follows:

PART 770--FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS

Subpart A--General Provisions
Sec.
770.1 Scope and applicability.
770.2 Effective dates.
770.3 Definitions.
770.4 Exemption from the hardwood plywood definition for certain 
laminated products.
770.5 Prohibited acts.

[[Page 89725]]

Subpart B--EPA TSCA Title VI Third-Party Certification Program
770.7 Third-party certification.
770.8 Applications, notifications, and reports.
Subpart C--Composite Wood Products
770.10 Formaldehyde emission standards.
770.12 Stockpiling.
770.15 Composite wood product certification.
770.17 No-added formaldehyde-based resins.
770.18 Ultra low-emitting formaldehyde resins.
770.20 Testing requirements.
770.21 Quality control manual, facilities, and personnel.
770.22 Non-complying lots.
770.24 Samples for testing.
770.30 Importers, fabricators, distributors, and retailers.
770.40 Reporting and recordkeeping.
770.45 Labeling.
Subpart D--Incorporation by Reference
770.99 Incorporation by reference.


    Authority:  15 U.S.C. 2697(d).

Subpart A--General Provisions


Sec.  770.1   Scope and applicability.

    (a) This part contains formaldehyde emission standards, testing and 
certification provisions, and other requirements for the manufacture 
(including import), distribution, and sale of composite wood products, 
component parts that contain composite wood products, and finished 
goods that contain composite wood products.
    (b) This part applies to:
    (1) Laboratory Accreditation Bodies (ABs) and Product ABs that are 
accrediting third-party certifiers (TPCs) for TSCA Title VI (15 U.S.C. 
2697(d)) purposes and those that wish to commence accrediting TPCs for 
TSCA Title VI purposes.
    (2) TPCs that are certifying composite wood products for TSCA Title 
VI compliance and those that wish to commence certifying composite wood 
products for TSCA Title VI compliance.
    (3) Any composite wood products, and component parts or finished 
goods containing these materials, that are sold, supplied, offered for 
sale, or manufactured (including imported) in the United States, 
including composite wood products used or installed in manufactured 
housing.
    (c) Subparts B, C, and D of this part do not apply to the 
following:
    (1) Any finished good that has previously been sold or supplied to 
an end user, an individual or entity that purchased or acquired the 
finished good in good faith for purposes other than resale. For 
example, subparts B, C, and D of this part do not apply to antiques or 
secondhand furniture.
    (2) Hardboard.
    (3) Structural plywood, as specified in PS 1-07, Voluntary Product 
Standard--Structural Plywood (incorporated by reference, see Sec.  
770.99).
    (4) Structural panels, as specified in PS 2-04, Voluntary Product 
Standard--Performance Standard for Wood-Based Structural-Use Panels 
(incorporated by reference, see Sec.  770.99).
    (5) Structural composite lumber, as specified in ASTM D5456-06, 
Standard Specification for Evaluation of Structural Composite Lumber 
Products (incorporated by reference, see Sec.  770.99).
    (6) Oriented strand board.
    (7) Glued laminated lumber, as specified in ANSI/AITC A190.1-2002, 
Structural Glued Laminated Timber (incorporated by reference, see Sec.  
770.99).
    (8) Prefabricated wood I-joists, as specified in ASTM D5055-05, 
Standard Specification for Establishing and Monitoring Structural 
Capacities of Prefabricated Wood I-Joists (incorporated by reference, 
see Sec.  770.99).
    (9) Finger-jointed lumber.
    (10) Wood packaging, including pallets, crates, spools, and 
dunnage.
    (11) Composite wood products used inside the following:
    (i) New vehicles (other than recreational vehicles) that are 
constructed entirely from new parts and that have never been the 
subject of a retail sale or registered with the applicable State or 
other governmental agency.
    (ii) New rail cars.
    (iii) New boats.
    (iv) New aerospace craft.
    (v) New aircraft.
    (d) The emission standards in Sec.  770.10 do not apply to windows 
that contain composite wood products, if the windows contain less than 
five percent by volume of composite wood products, combined, in 
relation to the total volume of the finished window.
    (e) The emission standards in Sec.  770.10 do not apply to exterior 
doors and garage doors that contain composite wood products, if:
    (1) The doors are made from composite wood products manufactured 
with no-added formaldehyde-based resins or ultra low-emitting 
formaldehyde resins; or
    (2) The doors contain less than three percent by volume of 
composite wood products, combined, in relation to the total volume of 
the finished exterior door or garage door.


Sec.  770.2   Effective dates.

    (a) This rule is effective February 10, 2017.
    (b) Laboratory and Product ABs that wish to accredit TPCs for TSCA 
Title VI purposes may apply to EPA beginning February 10, 2017 to 
become recognized. Laboratory and Product ABs must be recognized by EPA 
before they begin to provide and at all times while providing TSCA 
Title VI accreditation services.
    (c) TPCs that are not approved by the California Air Resources 
Board (CARB) that wish to provide TSCA Title VI certification services 
may apply to EPA beginning February 10, 2017 to become recognized. TPCs 
must be recognized by EPA and comply with all of the applicable 
requirements of this part before they begin to provide and at all times 
while providing TSCA Title VI certification services.
    (d) Notwithstanding any other provision of this part, TPCs that are 
approved by CARB to certify composite wood products have until December 
12, 2018 to become accredited by an EPA TSCA Title VI AB(s) pursuant to 
the requirements of this part. During this two-year transition period, 
existing CARB-approved TPCs and CARB TPCs approved during this 
transition period may carry out certification activities under TSCA 
Title VI, provided that they remain approved by CARB and comply with 
all aspects of this part other than the requirements of Sec.  
770.7(c)(1)(i) and (ii) and (c)(2)(iii) and (iv). After the two-year 
transition period, CARB-approved TPCs may continue to certify composite 
wood products under TSCA Title VI provided the TPC maintains its CARB 
approval, follows the requirements under this part, submits to EPA 
documentation from CARB supporting their eligibility for reciprocity 
and has received EPA recognition as an EPA TSCA Title VI TPC. All TPCs 
that are certifying products as compliant with TSCA Title VI, both 
during and after the transition period, are subject to enforcement 
actions for any violations of TSCA Title VI or these regulations.
    (e) After December 12, 2017, all manufacturers (including 
importers), fabricators, suppliers, distributors, and retailers of 
composite wood products, and component parts or finished goods 
containing these materials, must comply with this part, subject to the 
following:
    (1) After December 12, 2017, laminated product producers must 
comply with the requirements of this part that are applicable to 
fabricators.
    (2) After December 12, 2023, producers of laminated products must 
comply with the requirements of this part that are applicable to 
hardwood

[[Page 89726]]

plywood panel producers (in addition to the requirements of this part 
that are applicable to fabricators) except as provided at Sec.  770.4.
    (3) After December 12, 2023, producers of laminated products that, 
as provided at Sec.  770.4, are exempt from the definition of 
``hardwood plywood'' must comply with the recordkeeping requirements in 
Sec.  770.40(c) and (d) (in addition to the requirements of this part 
that are applicable to fabricators).
    (4) Composite wood products manufactured (including imported) 
before December 12, 2017 may be sold, supplied, offered for sale, or 
used to fabricate component parts or finished goods at any time.


Sec.  770.3   Definitions.

    For the purposes of this part, the following definitions apply:
    Accreditation Body or AB means an organization that provides an 
impartial verification of the competency of conformity assessment 
bodies or TPCs.
    Agent for Service means an entity designated by a TPC or AB to 
receive legal documents on their behalf.
    Article means a manufactured item which:
    (1) Is formed to a specific shape or design during manufacture;
    (2) Has end use functions dependent in whole or in part upon its 
shape or design during the end use; and
    (3) Has either no change of chemical composition during its end use 
or only those changes of composition which have no commercial purpose 
separate from that of the article and that may occur as described in 19 
CFR 12.120(a)(2), except that fluids and particles are not considered 
articles regardless of shape or design.
    Assessment means a process to include an on-site review undertaken 
by an AB to assess the competence of all operations of a conformity 
assessment body and TPC, based on particular standard(s) and/or other 
normative documents for a defined scope of accreditation, as defined in 
ISO/IEC 17011:2004(E) (incorporated by reference, see Sec.  770.99).
    Bundle means more than one composite wood product, component part, 
or finished good fastened together for transportation or sale.
    Combination core means a platform for making hardwood plywood or 
laminated products that consists of a combination of layers of veneer 
and particleboard or medium density fiberboard.
    Component part means an object other than a panel that contains one 
or more composite wood products and is used in the construction or 
assembly of finished goods. Component parts that are sold directly to 
consumers are considered finished goods.
    Composite core means a platform for making hardwood plywood or 
laminated products that consists of particleboard and/or medium density 
fiberboard, or combination core.
    Composite wood product means hardwood plywood made with a veneer or 
composite core, medium-density fiberboard, and particleboard.
    Distributor means any person or entity to whom a composite wood 
product, component part, or finished good is sold or supplied for the 
purposes of resale or distribution in commerce, except that 
manufacturers and retailers are not distributors.
    Engineered veneer means a type of veneer that is created by dyeing 
and gluing together leaves of veneer in a mold to produce a block. The 
block is then sliced into leaves of veneer with a designed appearance 
that is highly repeatable.
    EPA TSCA Title VI Laboratory Accreditation Body or EPA TSCA Title 
VI Laboratory AB means an AB that has a recognition agreement with EPA 
under the EPA TSCA Title VI Third-Party Certification Program, 
accredits a TPC's testing laboratory or contract testing laboratory to 
ISO/IEC 17025:2005(E) (incorporated by reference, see Sec.  770.99) 
with a scope of accreditation to include this part and the formaldehyde 
test methods used to comply with this part, and assesses the testing 
laboratory's conformance to ISO/IEC 17020:2012(E) (incorporated by 
reference, see Sec.  770.99) in order to perform laboratory testing 
services.
    EPA TSCA Title VI Product Accreditation Body or EPA TSCA Title VI 
Product AB means an AB that has a recognition agreement with EPA under 
the EPA TSCA Title VI Third-Party Certification Program, accredits a 
TPC to ISO/IEC 17065:2012(E) (incorporated by reference, see Sec.  
770.99) with a scope of accreditation to include composite wood 
products and this part, and assesses the TPC's conformance to ISO/IEC 
17020:1998(E) (incorporated by reference, see Sec.  770.99) in order to 
perform product certification.
    EPA TSCA Title VI Third-Party Certifier or EPA TSCA Title VI TPC 
means a conformity assessment body that provides both product 
certification services and laboratory testing services (either directly 
or through contracted services), is accredited by an EPA TSCA Title VI 
Product AB and an EPA TSCA Title VI Laboratory AB (unless the 
laboratory testing services are contracted to a laboratory accredited 
by an EPA TSCA Title VI Laboratory AB), and is recognized by EPA 
pursuant to Sec.  770.7(c).
    Fabricator means a person or entity who incorporates composite wood 
products into component parts or into finished goods. This includes 
laminated product producers, but persons or entities in the 
construction trades are not fabricators by renovating or remodeling 
buildings.
    Finished good means any good or product, other than a panel, that 
contains hardwood plywood (with a veneer or composite core), 
particleboard, or medium-density fiberboard and that is not a component 
part or other part used in the assembly of a finished good. Site-built 
buildings or other site-built real property improvements are not 
considered finished goods.
    Hardboard means a composite panel composed of cellulosic fibers, 
consolidated under heat and pressure in a hot press by: A wet process; 
or a dry process that uses a phenolic resin, or a resin system in which 
there is no formaldehyde as part of the resin cross-linking structure; 
or a wet formed/dry pressed process; and that is commonly or 
commercially known, or sold, as hardboard, including any product 
conforming to one of the following ANSI standards: Basic Hardboard 
(ANSI A135.4-2012) (incorporated by reference, see Sec.  770.99), 
Prefinished Hardboard Paneling (ANSI A135.5-2012) (incorporated by 
reference, see Sec.  770.99), Engineered Wood Siding (ANSI A135.6-2012) 
(incorporated by reference, see Sec.  770.99), or Engineered Wood Trim 
(ANSI A135.7-2012) (incorporated by reference, see Sec.  770.99). There 
is a rebuttable presumption that products emitting more than 0.06 ppm 
formaldehyde as measured by ASTM E1333-10 (incorporated by reference, 
see Sec.  770.99) or ASTM D6007-02 (incorporated by reference, see 
Sec.  770.99) are not hardboard.
    Hardwood plywood means a hardwood or decorative panel that is 
intended for interior use and composed of (as determined under ANSI/
HPVA HP-1-2009 (incorporated by reference, see Sec.  770.99)) an 
assembly of layers or plies of veneer, joined by an adhesive with a 
lumber core, a particleboard core, a medium-density fiberboard core, a 
hardboard core, a veneer core, or any other special core or special 
back material. Hardwood plywood does not include military-specified 
plywood, curved plywood, or any plywood specified in PS 1-07, Voluntary 
Product Standard--Structural Plywood (incorporated by reference, see 
Sec.  770.99), or PS 2-04, Voluntary Product

[[Page 89727]]

Standard--Performance Standard for Wood-Based Structural-Use Panels 
(incorporated by reference, see Sec.  770.99). In addition, hardwood 
plywood includes laminated products except as provided at Sec.  770.4.
    Importer means any person or entity who imports composite wood 
products, component parts, or finished goods into the customs territory 
of the United States (as defined in general note 2 of the Harmonized 
Tariff Schedules of the United States pursuant to 15 U.S.C. 
2612(a)(1)). Importer includes:
    (1) The entity primarily liable for the payment of any duties on 
the products; or
    (2) An authorized agent acting on the entity's behalf.
    Intended for interior use means intended for use or storage inside 
a building or recreational vehicle, or constructed in such a way that 
it is not suitable for long-term use in a location exposed to the 
elements. Windows, doors, and garage doors with at least one interior-
facing side are intended for interior use.
    Laboratory Accreditation Body or Laboratory AB means an AB that 
accredits conformity assessment body testing laboratories.
    Laminated product means a product in which a wood or woody grass 
veneer is affixed to a particleboard core or platform, a medium-density 
fiberboard core or platform, or a veneer core or platform. A laminated 
product is a component part used in the construction or assembly of a 
finished good. In addition, a laminated product is produced by either 
the fabricator of the finished good in which the product is 
incorporated or a fabricator who uses the laminated product in the 
further construction or assembly of a component part.
    Laminated product producer means a manufacturing plant or other 
facility that manufactures (excluding facilities that solely import 
products) laminated products on the premises. Laminated product 
producers are fabricators and, after December 12, 2023, laminated 
product producers are also hardwood plywood panel producers except as 
provided at Sec.  770.4.
    Lot means the panels produced from the beginning of production of a 
product type until the first quality control test; between one quality 
control test and the next; or from the last quality control test to the 
end of production for a particular product type.
    Medium-density fiberboard means a panel composed of cellulosic 
fibers made by dry forming and pressing a resinated fiber mat (as 
determined under ANSI A208.2-2009 (incorporated by reference, see Sec.  
770.99)).
    No-added formaldehyde-based resin means a resin formulated with no 
added formaldehyde as part of the resin crosslinking structure in a 
composite wood product that meets the emission standards in Sec.  
770.17(c).
    Non-complying lot means any lot of composite wood product 
represented by a quarterly test value or quality control test result 
that indicates that the lot exceeds the applicable standard for the 
particular composite wood product in Sec.  770.10(b). A quality control 
test result that exceeds the QCL is considered a test result that 
indicates that the lot exceeds the applicable standard. Future 
production of the product type(s) represented by a failed quarterly 
test are not considered certified and must be treated as a non-
complying lot until the product type(s) are re-qualified through a 
successful quarterly test.
    Panel means a thin (usually less than two inches thick), flat, 
usually rectangular piece of particleboard, medium-density fiberboard 
or hardwood plywood. Embossing or imparting of an irregular surface on 
the composite wood products by the original panel producer during 
pressing does not remove the product from this definition. Cutting a 
panel into smaller pieces, without additional fabrication, does not 
make the panel into a component part or finished good. This does not 
include items made for the purpose of research and development, 
provided such items are not sold, supplied, or offered for sale.
    Panel producer means a manufacturing plant or other facility that 
manufactures (excluding facilities that solely import products) 
composite wood products on the premises.
    Phenol-formaldehyde resin means a resin that consists primarily of 
phenol and formaldehyde and does not contain urea-formaldehyde.
    Particleboard means a panel composed of cellulosic material in the 
form of discrete particles (as distinguished from fibers, flakes, or 
strands) that are pressed together with resin (as determined under ANSI 
A208.1-2009 (incorporated by reference, see Sec.  770.99)). 
Particleboard does not include any product specified in PS 2-04, 
Performance Standard for Wood-Based Structural-Use Panels (incorporated 
by reference, see Sec.  770.99).
    Product Accreditation Body or Product AB means an AB that accredits 
conformity assessment bodies who perform product certification.
    Product type means a type of composite wood product, or group of 
composite wood products, made by the same panel producer with the same 
resin system that differs from another product type based on panel 
composition and formaldehyde emission characteristics. Grouped products 
must have similar formaldehyde emission characteristics and their 
emissions must fit the same correlation curve or linear regression.
    Production line means a set of operations and physical industrial 
or mechanical equipment used to produce a composite wood product in one 
facility utilizing the same or similar equipment and quality assurance 
and quality control procedures.
    Purchaser means any panel producer, importer, fabricator, 
distributor, or retailer that acquires composite wood products, 
component parts, or finished goods for purposes of resale in exchange 
for money or its equivalent.
    Quality control limit or QCL means the value from the quality 
control method test that is the correlative equivalent to the 
applicable emission standard based on the ASTM E1333-10 method 
(incorporated by reference, see Sec.  770.99).
    Reassessment means an assessment, as described in sections 7.5 to 
7.11 of ISO/IEC 17011:2004(E) (incorporated by reference, see Sec.  
770.99), except that experience gained during previous assessments 
shall be taken into account.
    Recreational vehicle means a vehicle which is:
    (1) Built on a single chassis;
    (2) Four hundred square feet or less when measured at the largest 
horizontal projections;
    (3) Self-propelled or permanently towable by a light duty truck; 
and
    (4) Designed primarily not for use as a permanent dwelling but as 
temporary living quarters for recreational, camping, travel, or 
seasonal use.
    Retailer means any person or entity that sells, offers for sale, or 
supplies directly to consumers composite wood products, component parts 
or finished goods that contain composite wood products, except that 
persons or entities in the construction trades are not considered 
retailers by selling, renovating, or remodeling buildings.
    Resin system means type of resin used, including but not limited to 
urea-formaldehyde, soy, phenol-formaldehyde, or melamine-urea-
formaldehyde.
    Scavenger means a chemical or chemicals that can be applied to 
resins or composite wood products either during or after manufacture 
and that react with residual or excess formaldehyde to reduce the 
amount of

[[Page 89728]]

formaldehyde that can be emitted from composite wood products.
    Shipping quality control limit means a quality control limit that 
is developed in conjunction with an EPA TSCA Title VI TPC that is based 
on panels prior to shipment rather than immediately after 
manufacturing.
    Stockpiling means manufacturing or purchasing composite wood 
products, whether in the form of panels or incorporated into component 
parts or finished goods, between July 7, 2010 and June 12, 2017 at an 
average rate at least 20% greater than the average rate of manufacture 
or purchase during the 2009 calendar year for the purpose of 
circumventing the emission standards and other requirements of this 
subpart.
    Thin medium-density fiberboard means medium-density fiberboard that 
has a thickness less than or equal to 8 millimeters or 0.315 inches.
    Third-party certifier or TPC means a conformity assessment body 
that provides both product certification services and laboratory 
testing services (either directly or through contracted services).
    TPC laboratory means a laboratory or contract laboratory of an EPA 
TSCA Title VI TPC that is accredited by an EPA TSCA Title VI Laboratory 
AB to ISO/IEC 17025:2005(E) (incorporated by reference, see Sec.  
770.99), and whose inspection activities are in conformance with ISO/
IEC 17020:1998(E) (incorporated by reference, see Sec.  770.99).
    Surveillance On-Site Assessment means a set of on-site activities 
that are less comprehensive than reassessment, to monitor the continued 
fulfilment by accredited conformance assessment bodies of requirements 
for accreditation, as described in sections 7.5 to 7.11 of ISO/IEC 
17011:2004(E) (incorporated by reference, see Sec.  770.99).
    Ultra low-emitting formaldehyde resin means a resin in a composite 
wood product that meets the emission standards in Sec.  770.18(c).
    Veneer means a sheet of wood or woody grass with a maximum 
thickness of 6.4 millimeters (\1/4\ inch) that is rotary cut, sliced, 
or sawed from a log, bolt, flitch, block, or culm; including engineered 
veneer.
    Veneer core means a platform for making hardwood plywood or 
laminated products that consists of veneer.
    Woody grass means a plant of the family Poaceae (formerly 
Gramineae) with hard lignified tissues or woody parts.


Sec.  770.4   Exemption from the hardwood plywood definition for 
certain laminated products.

    (a) Current exemptions. The definition of the term ``hardwood 
plywood'' in Sec.  770.3 does not include:
    (1) Laminated products made by attaching a wood or woody grass 
veneer with a phenol-formaldehyde resin to a platform that has been 
manufactured in compliance with this part (including either certified 
in accordance with Sec.  770.15, manufactured with no-added 
formaldehyde-based resins under Sec.  770.17, or manufactured with 
ultra low-emitting formaldehyde-based resins under Sec.  770.18).
    (2) Laminated products made by attaching a wood or woody grass 
veneer with a resin formulated with no-added formaldehyde as part of 
the resin cross-linking structure to a platform that has been 
manufactured in compliance with this part (including either certified 
in accordance with Sec.  770.15, manufactured with no-added 
formaldehyde-based resins under Sec.  770.17, or manufactured with 
ultra low-emitting formaldehyde-based resins under Sec.  770.18).
    (b) Rulemaking petitions for exemption. (1) Any person may petition 
the Agency to initiate a rulemaking for additional exemptions for 
laminated products from the definition of the term ``hardwood 
plywood,'' pursuant to 15 U.S.C. 2697(a)(3)(C)(i)(I).
    (2) Each petition should provide all available and relevant 
information, including studies conducted and formaldehyde emissions 
data, and should be submitted to: Director, National Program Chemicals 
Division, Office of Pollution Prevention and Toxics (MC 7404T), U.S. 
Environmental Protection Agency, 1200 Pennsylvania Ave NW., Washington, 
DC 20460-001.
    (3) EPA will promptly review each submitted petition and, where 
appropriate, publish a proposed rule in the Federal Register based on 
the petition and provide a public comment period of generally 30 days 
before taking a final action.


Sec.  770.5   Prohibited acts.

    (a) Failure or refusal to comply with any requirement of TSCA 
section 601 (15 U.S.C. 2697) or this part is a violation of TSCA 
section 15 (15 U.S.C. 2614).
    (b) Failure or refusal to establish and maintain records or to make 
available or permit access to or copying of records, as required by 
this part, is a violation of TSCA section 15 (15 U.S.C. 2614).
    (c) Making false or misleading statements in any statement, 
certification, or record required by this part is a violation of TSCA 
section 15 (15 U.S.C. 2614).
    (d) Violators may be subject to civil and criminal sanctions 
pursuant to TSCA section 16 (15 U.S.C. 2615) for each violation.

Subpart B--EPA TSCA Title VI Third-Party Certification Program


Sec.  770.7   Third-party certification.

    (a) EPA TSCA Title VI Product ABs. To participate in the EPA TSCA 
Title VI Third-Party Certification Program as an EPA TSCA Title VI 
Product AB, a Product AB must have the qualifications described in this 
section, submit an application and enter into a recognition agreement 
with EPA as described in this section, and, upon recognition from EPA, 
impartially perform the responsibilities described in this section.
    (1) Qualifications. To qualify for recognition by EPA in the EPA 
TSCA Title VI Third-Party Certification Program as an EPA TSCA Title VI 
Product AB, an applicant Product AB must:
    (i) Be a signatory to the International Accreditation Forum, Inc.'s 
(IAF) Multilateral Recognition Arrangement (MLA) through level three, 
or have membership in one of the IAF recognized regional accreditation 
cooperations, or an equivalent organization as determined by EPA;
    (ii) Be in conformance with ISO/IEC 17011:2004(E) (incorporated by 
reference, see Sec.  770.99); and
    (iii) Be competent to perform accreditation activities for product 
certification according to ISO/IEC 17065:2012(E) (incorporated by 
reference, see Sec.  770.99).
    (2) Application. To be recognized by EPA under the EPA TSCA Title 
VI Third-Party Certification Program, a Product AB must submit an 
application to EPA in accordance with Sec.  770.8 that contains the 
following:
    (i) Name, address, telephone number, and email address of the 
organization or primary contact;
    (ii) Documentation of IAF MLA signatory status, membership in one 
of the IAF recognized regional accreditation cooperations, or an 
equivalent organization as determined by EPA;
    (iii) Description of any other qualifications related to the 
Product AB's experience in performing product accreditation of TPCs for 
manufactured products including an affirmation that assessors will be 
technically competent to assess a TPC's ability to perform their 
activities under paragraph (c)(4) of this section; and

[[Page 89729]]

    (iv) If not a domestic entity, name and address of an agent for 
service located in the United States. Service on this agent constitutes 
service on the AB or any of its officers or employees for any action by 
EPA or otherwise by the United States related to the requirements of 
this part. ABs may share an agent for service.
    (3) Recognition agreement. To be recognized by EPA under the EPA 
TSCA Title VI Third-Party Certification Program, a Product AB must 
enter into a recognition agreement with EPA that describes the EPA TSCA 
Title VI Product AB's responsibilities under this subpart.
    (i) Each recognition agreement will be valid for three years.
    (ii) Each recognition agreement will identify an EPA Recognition 
Agreement Implementation Officer and an EPA TSCA Title VI Product AB 
Implementation Officer that will serve as the point of contact for the 
EPA TSCA Title VI Third-Party Certification Program.
    (iii) To renew a recognition agreement for an additional three-year 
period, the EPA TSCA Title VI Product AB must submit an application for 
renewal in accordance with Sec.  770.8 before the three-year period of 
the recognition agreement lapses. The application must indicate any 
changes from the EPA TSCA Title VI Product AB's initial application or 
most recent renewal application.
    (iv) If an EPA TSCA Title VI Product AB fails to submit an 
application for renewal prior to the expiration of the previous 
recognition agreement, its recognition will lapse and the EPA TSCA 
Title VI Product AB may not provide accreditation services under TSCA 
Title VI.
    (v) If an EPA TSCA Title VI Product AB does submit an application 
for renewal prior to the expiration of the previous recognition 
agreement, it may continue to provide TSCA Title VI accreditation 
services under the terms of its previous recognition agreement until 
EPA has taken action on its application for renewal of the recognition 
agreement.
    (4) Impartiality. EPA TSCA Title VI Product ABs must act 
impartially when performing activities under the EPA TSCA Title VI 
Third-Party Certification Program. To demonstrate impartiality, Product 
ABs must:
    (i) Ensure that an accreditation decision regarding a TPC is made 
by persons different from those who conducted the assessment of the 
TPC; and
    (ii) Ensure that the AB's personnel who assess TPCs or make 
decisions regarding accreditation do not receive financial benefit from 
the outcome of an accreditation decision.
    (5) Responsibilities. Each EPA TSCA Title VI Product AB has the 
following responsibilities under the EPA TSCA Title VI Third-Party 
Certification Program:
    (i) Accreditation. EPA TSCA Title VI Product ABs must determine the 
accreditation eligibility, and accredit if appropriate, each TPC 
seeking recognition under the EPA TSCA Title VI Third-Party 
Certification Program by performing an assessment of each TPC as 
described in this section. The assessment must include all of the 
following components:
    (A) An on-site assessment by the EPA TSCA Title VI Product AB to 
determine whether the TPC meets the requirements of ISO/IEC 
17065:2012(E), is in conformance with ISO/IEC 17020:1998(E) as required 
under ISO/IEC 17065:2012(E) section 6.2.1 (incorporated by reference, 
see Sec.  770.99) and the EPA TSCA Title VI TPC requirements under this 
part. In performing the on-site assessment, the EPA TSCA Title VI 
Product AB must:
    (1) Develop a checklist of the EPA TSCA Title VI TPC requirements 
under paragraph (c)(4) of this section and the key accreditation 
elements of ISO/IEC 17065:2012(E) (incorporated by reference, see Sec.  
770.99); and
    (2) Use the checklist for each on-site assessment.
    (B) A review of the approach that the TPC will use to verify the 
accuracy of the formaldehyde emissions tests conducted by the TPC 
laboratory and the formaldehyde quality control tests conducted by or 
for the panel producers producing composite wood products that are 
subject to the requirements of TSCA Title VI.
    (C) A review of the approach that the TPC will use for evaluating a 
panel producer's quality assurance and quality control processes, the 
proficiency of the panel producer's quality assurance and quality 
control personnel, the required elements of a panel producer's quality 
assurance and quality control manual, and sufficiency of on-site 
testing facilities as applicable.
    (D) A review of the approach that the TPC laboratory will use for 
establishing correlation or equivalence between ASTM E1333-10 and ASTM 
D6007-02, if used, (incorporated by reference, see Sec.  770.99) or 
allowable formaldehyde test methods listed under Sec.  770.20.
    (E) A review of the approach that the TPC will use for evaluating 
the process for sample selection, handling, and shipping procedures 
that the panel producer will use for quality control testing as 
applicable.
    (F) A review of the accreditation credentials of the TPC 
laboratory, including a verification that the laboratory has been 
accredited to ISO/IEC 17025:2005(E) (incorporated by reference, see 
Sec.  770.99) with a scope of accreditation to include this part--
Formaldehyde Standards for Composite Wood Products and the formaldehyde 
test methods ASTM E1333-10 and ASTM D6007-02, if used, by an EPA TSCA 
Title VI Laboratory AB (incorporated by reference, see Sec.  770.99).
    (ii) Reassessment. Each EPA TSCA Title VI Product AB must, in 
accordance with ISO/IEC 17011:2004(E) section 7.11 (incorporated by 
reference, see Sec.  770.99), conduct an on-site reassessment or 
surveillance on-site assessment at least every two years of each EPA 
TSCA Title VI TPC that the AB has accredited.
    (iii) Suspension, reduction, withdrawal. Each EPA TSCA Title VI 
Product AB must suspend, reduce, or withdraw the accreditation of an 
EPA TSCA Title VI TPC that the AB has accredited when circumstances 
warrant.
    (iv) Notifications. Each EPA TSCA Title VI Product AB must provide, 
in accordance with Sec.  770.8, the following notifications to EPA, as 
applicable:
    (A) Notification of the loss of its status as a signatory to the 
IAF MLA, or loss of membership in one of the IAF recognized regional 
accreditation cooperations, or an equivalent organization as determined 
by EPA must be provided within five calendar days of the date that the 
body receives notification of the loss of its signatory or membership 
status.
    (B) Notification that an EPA TSCA Title VI TPC has failed to comply 
with any provision of this part must be provided within 72 hours of the 
time the Product AB identifies the deficiency. The notice must include 
a description of the steps taken to address the deficiency.
    (C) Notification of suspension, reduction or withdrawal of an EPA 
TSCA Title VI TPC's accreditation must be provided within 72 hours of 
the time that the suspension, reduction or withdrawal takes effect.
    (D) Notification of a change in a non-domestic Product AB's agent 
for service must be provided within five calendar days.
    (v) Records. Each EPA TSCA Title VI Product AB must maintain, in 
electronic form, the checklists and other records documenting 
compliance with the requirements for assessment, reassessment, and 
surveillance on-site

[[Page 89730]]

assessments of EPA TSCA Title VI TPCs for three years.
    (vi) Annual report. Each EPA TSCA Title VI Product AB must provide, 
in accordance with Sec.  770.8, an annual report on or before March 1st 
of each year for the AB services performed during the previous calendar 
year including the number and locations of assessment, reassessment, 
and surveillance on-site assessments performed for each EPA TSCA Title 
VI TPC.
    (vii) EPA meetings. Each EPA TSCA Title VI Product AB must meet 
with EPA at least once every two years in person, via teleconference, 
or through other virtual methods to discuss the implementation of the 
EPA TSCA Title VI Third-Party Certification Program.
    (viii) Inspections. Each EPA TSCA Title VI Product AB must allow 
inspections of the AB's facilities by EPA, at reasonable times, within 
reasonable limits, and in a reasonable manner, upon the presentation of 
appropriate credentials and a written notification to the AB.
    (b) EPA TSCA Title VI Laboratory ABs. To participate in the EPA 
TSCA Title VI Third-Party Certification Program as an EPA TSCA Title VI 
Laboratory AB, a Laboratory AB must have the qualifications described 
in this section, submit an application and enter into a recognition 
agreement with EPA as described in this section, and, upon recognition 
from EPA, impartially perform the responsibilities described in this 
section.
    (1) Qualifications. To qualify for recognition by EPA under the EPA 
TSCA Title VI Third-Party Certification Program as an EPA TSCA Title VI 
Laboratory AB, an applicant Laboratory AB must:
    (i) Be a signatory to the International Laboratory Accreditation 
Cooperation (ILAC) Mutual Recognition Arrangement (MRA), or have 
membership in one of the ILAC recognized regional accreditation 
cooperations, or an equivalent organization as determined by EPA;
    (ii) Be in conformance with ISO/IEC 17011:2004(E) (incorporated by 
reference, see Sec.  770.99);
    (iii) Be competent to perform accreditation activities for 
laboratory accreditation according to ISO/IEC 17025:2005(E) 
(incorporated by reference, see Sec.  770.99); and
    (iv) Be competent to ensure EPA TSCA Title VI TPC inspection 
activities are in conformance with ISO/IEC 17020:1998(E) (incorporated 
by reference, see Sec.  770.99).
    (2) Application. To be recognized by EPA under the EPA TSCA Title 
VI Third-Party Certification Program, a Laboratory AB must submit an 
application to EPA, which may be submitted in conjunction with a 
Product AB application. For recognition, a Laboratory AB must submit an 
application in accordance with Sec.  770.8 that contains the following:
    (i) Name, address, telephone number, and email address of the 
organization or primary contact;
    (ii) Documentation of ILAC MRA signatory status, membership in one 
of the ILAC recognized regional accreditation cooperations, or an 
equivalent organization as determined by EPA;
    (iii) Description of any other qualifications related to the 
Laboratory AB's experience in performing laboratory accreditation and 
inspection certification of TPCs including an affirmation that 
assessors will be technically competent to assess TPCs ability to 
perform their activities under paragraph (c)(4) of this section; and
    (iv) If not a domestic entity, name and address of an agent for 
service located in the United States. Service on this agent constitutes 
service on the AB or any of its officers or employees for any action by 
EPA or otherwise by the United States related to the requirements of 
this part. ABs may share an agent for service.
    (3) Recognition agreement. To be recognized by EPA under the EPA 
TSCA Title VI Third-Party Certification Program, a Laboratory AB must 
enter into a recognition agreement with EPA that describes the EPA TSCA 
Title VI Laboratory AB's responsibilities under this subpart.
    (i) Each recognition agreement will be valid for three years.
    (ii) Each recognition agreement will identify an EPA Recognition 
Agreement Implementation Officer and an EPA TSCA Title VI Laboratory AB 
Implementation Officer that will serve as the point of contact for the 
EPA TSCA Title VI Third-Party Certification Program.
    (iii) To renew a recognition agreement for an additional three-year 
period, the EPA TSCA Title VI Laboratory AB must submit an application 
for renewal in accordance with Sec.  770.8 before the three-year period 
of the recognition agreement lapses. The application must indicate any 
changes from the EPA TSCA Title VI Laboratory AB's initial application 
or most recent renewal application.
    (iv) If an EPA TSCA Title VI Laboratory AB fails to submit an 
application for renewal prior to the expiration of the previous 
recognition agreement, its recognition will lapse and the EPA TSCA 
Title VI Laboratory AB may not provide accreditation services under 
TSCA Title VI.
    (v) If an EPA TSCA Title VI Laboratory AB does submit an 
application for renewal prior to the expiration of the previous 
recognition agreement, it may continue to provide TSCA Title VI 
accreditation services under the terms of its previous recognition 
agreement until EPA has taken action on its application for renewal of 
the recognition agreement.
    (4) Impartiality. EPA TSCA Title VI Laboratory ABs must act 
impartially when performing activities under the EPA TSCA Title VI 
Third-Party Certification Program. To demonstrate impartiality, 
Laboratory ABs must:
    (i) Ensure that an accreditation decision regarding a TPC is made 
by persons different from those who conducted the assessment of the 
TPC; and
    (ii) Ensure that the AB's personnel who assess TPCs or make 
decisions regarding accreditation do not receive financial benefit from 
the outcome of an accreditation decision.
    (5) Responsibilities. Each EPA TSCA Title VI Laboratory AB has the 
following responsibilities under the EPA TSCA Title VI Third-Party 
Certification Program:
    (i) Accreditation. EPA TSCA Title VI Laboratory ABs must determine 
the accreditation eligibility, and accredit if appropriate, each TPC 
seeking recognition under the EPA TSCA Title VI Third-Party 
Certification Program by performing an assessment of each TPC. The 
assessment must include an on-site assessment by the EPA TSCA Title VI 
Laboratory AB to determine whether the laboratory meets the 
requirements of ISO/IEC 17025:2005(E) (incorporated by reference, see 
Sec.  770.99), is in conformance with ISO/IEC 17020:1998(E) 
(incorporated by reference, see Sec.  770.99) and the EPA TSCA Title VI 
TPC requirements under this part including the formaldehyde test 
methods ASTM E1333-10 and ASTM D6007-02 (incorporated by reference, see 
Sec.  770.99), if used. In performing the on-site assessment, the EPA 
TSCA Title VI Laboratory AB must:
    (A) Develop a checklist of the TPC requirements under paragraph 
(c)(4) of this section and the key conformity elements of ISO/IEC 
17025:2005(E) (incorporated by reference, see Sec.  770.99); and
    (B) Use the checklist for each on-site assessment.
    (ii) Reassessment. Each EPA TSCA Title VI Laboratory AB must, in 
accordance with ISO/IEC 17011:2004(E) section 7.11 (incorporated by 
reference,

[[Page 89731]]

see Sec.  770.99), conduct a follow-up reassessment or surveillance on-
site assessment of each TPC laboratory that the AB has accredited.
    (iii) Proficiency. Each EPA TSCA Title VI Laboratory AB must verify 
the accuracy of the formaldehyde emissions tests conducted by the TPC 
laboratory by ensuring the TPC laboratory participates in the CARB 
interlaboratory comparison for formaldehyde emissions when offered. In 
lieu of participation in the CARB interlaboratory comparison ensure 
that the TPC laboratory participates in an EPA-recognized proficiency 
testing program, if available.
    (iv) Suspension, reduction, withdrawal. Each EPA TSCA Title VI 
Laboratory AB must suspend, reduce, or withdraw the accreditation of a 
TPC laboratory that the AB has accredited when circumstances warrant.
    (v) Notifications. Each EPA TSCA Title VI Laboratory AB must 
provide, in accordance with Sec.  770.8, the following notifications to 
EPA as applicable:
    (A) Notification of the loss of its status as a signatory to the 
ILAC MRA, or loss of membership in one of the ILAC recognized regional 
accreditation cooperations, or an equivalent organization as determined 
by EPA, within five calendar days of the date that the body receives 
notice of the loss of its signatory or membership status.
    (B) Notification that a TPC laboratory has failed to comply with 
any provision of this part within 72 hours of the time the Laboratory 
AB identifies the deficiency. The notice must include a description of 
the steps taken to address the deficiency.
    (C) Notification of suspension, reduction or withdrawal of a TPC 
laboratory's accreditation within 72 hours of the time that the 
suspension, reduction or withdrawal takes effect.
    (D) Notification of a change in a non-domestic Laboratory AB's 
agent for service within five calendar days.
    (vi) Records. Each EPA TSCA Title VI Laboratory AB must maintain, 
in electronic form, the checklists and other records documenting 
compliance with the requirements for assessment, reassessment, and 
surveillance on-site assessments of TPC laboratories for three years.
    (vii) Annual report. Each EPA TSCA Title VI Laboratory AB must 
provide, in accordance with Sec.  770.8, an annual report to EPA on or 
before March 1st of each year for AB services performed during the 
previous calendar year including the number and locations of 
assessment, reassessment, and surveillance on-site assessments 
performed for each TPC laboratory.
    (viii) EPA meetings. Each EPA TSCA Title VI Laboratory AB must meet 
with EPA at least once every two years in person, via teleconference, 
or through other virtual methods to discuss the implementation of the 
EPA TSCA Title VI Third-Party Certification Program.
    (ix) Inspections. Each EPA TSCA Title VI Laboratory AB must allow 
inspections of the AB's facilities by EPA, at reasonable times, within 
reasonable limits, and in a reasonable manner, upon the presentation of 
appropriate credentials and a written notification to the AB.
    (c) EPA TSCA Title VI Third-Party Certifiers. To participate in the 
EPA TSCA Title VI Third-Party Certification Program as an EPA TSCA 
Title VI TPC, a TPC must be accredited by an EPA TSCA Title VI Product 
AB, use a laboratory that is accredited by an EPA TSCA Title VI 
Laboratory AB, have the other qualifications described in this 
subsection, submit an application and be recognized by EPA, and, upon 
recognition from EPA, impartially perform the responsibilities 
described in this section. Alternatively, CARB-approved TPCs must meet 
the criteria for reciprocity in paragraph (d) of this section and 
comply with the requirements of this part in order to be recognized by 
EPA as an EPA TSCA Title VI TPC.
    (1) Qualifications. To qualify for recognition by EPA in the EPA 
TSCA Title VI Third-Party Certification Program as an EPA TSCA Title VI 
TPC, an applicant TPC must:
    (i) Be accredited by an EPA TSCA Title VI Product AB to ISO/IEC 
17065:2012(E) (incorporated by reference, see Sec.  770.99), with a 
scope of accreditation that includes include composite wood products 
and this part--Formaldehyde Standards for Composite Wood Products;
    (ii) Be, or have a contract with a laboratory that is, accredited 
by an EPA TSCA Title VI Laboratory AB to ISO/IEC 17025:2005(E) 
(incorporated by reference, see Sec.  770.99) with a scope of 
accreditation to include this part--Formaldehyde Standards for 
Composite Wood Products and the formaldehyde test methods ASTM E1333-10 
and ASTM D6007-02, if used (incorporated by reference, see Sec.  
770.99);
    (iii) Have the ability to conduct inspections of composite wood 
products and properly train and supervise inspectors to inspect 
composite wood products in conformance with ISO/IEC 17020:1998(E) as 
required under ISO/IEC 17065:2012(E) section 6.2.1 (incorporated by 
reference, see Sec.  770.99);
    (iv) Have demonstrated experience in the composite wood product 
industry with at least one type of composite wood product and indicated 
the specific product(s) the applicant intends to certify; and
    (v) Have demonstrated experience in performing or verifying 
formaldehyde emissions testing on composite wood products, including 
experience with test method ASTM E1333-10 and ASTM D6007-02, if used, 
(incorporated by reference, see Sec.  770.99), and experience 
evaluating correlation between test methods. Applicant TPCs that have 
demonstrated experience with test method ASTM D6007-02 only, must be 
contracting testing with a laboratory that has a large chamber and 
demonstrate its experience with ASTM E1333-10.
    (2) Application. Before certifying any products under this part, a 
TPC must be recognized by EPA under the EPA TSCA Title VI Third-Party 
Certification Program. To be recognized by EPA, a TPC must submit an 
application in accordance with Sec.  770.8 and renew that application 
every two years. The application must contain the following:
    (i) Email address of the organization or primary contact, 
organization name, organization telephone number, and organization 
address;
    (ii) Type of composite wood products that the applicant intends to 
certify;
    (iii) A copy of the TPC's certificate of accreditation from an EPA 
TSCA Title VI Product AB to ISO/IEC 17065:2012(E) (incorporated by 
reference, see Sec.  770.99) with a scope of accreditation that 
includes composite wood products and this part--Formaldehyde Standards 
for Composite Wood Products;
    (iv) A copy of the TPC laboratory's certificate of accreditation 
from an EPA TSCA Title VI Laboratory AB to ISO/IEC 17025:2005(E) 
(incorporated by reference, see Sec.  770.99) with a scope of 
accreditation to include this part--Formaldehyde Standards for 
Composite Wood Products and the formaldehyde test methods ASTM E1333-10 
and ASTM D6007-02 (incorporated by reference, see Sec.  770.99), if 
used;
    (v) An affirmation of the TPC's ability to conduct inspections of 
composite wood products and properly train and supervise inspectors to 
inspect composite wood products in conformance with ISO/IEC 
17020:1998(E) as required under ISO/IEC 17065:2012(E) section 6.2.1 
(incorporated by reference, see Sec.  770.99);
    (vi) A description of the TPC's experience in the composite wood 
product industry with at least one type of composite wood product and 
indicate

[[Page 89732]]

the specific product(s) the applicant intends to certify;
    (vii) A description of the TPC's experience in performing or 
verifying formaldehyde emissions testing on composite wood products;
    (viii) A description of the TPC's experience with test method ASTM 
E1333-10 and/or ASTM D6007-02, if used, (incorporated by reference, see 
Sec.  770.99), and experience evaluating correlation between test 
methods. Applicant TPCs that have experience with test method ASTM 
D6007-02 only, must be contracting testing with a laboratory that has a 
large chamber and describe its experience with ASTM E1333-10; and
    (ix) If not a domestic entity, the name and address of an agent for 
service located in the United States. Service on this agent constitutes 
service on the TPC or any of its officers or employees for any action 
by EPA or otherwise by the United States related to the requirements of 
this part. TPCs may share an agent for service.
    (3) Impartiality. EPA TSCA Title VI TPCs must act impartially in 
accordance with their accreditation when performing activities under 
the EPA TSCA Title VI Third-Party Certification Program. To demonstrate 
impartiality, TPCs must:
    (i) Not also be, or have a financial interest in a panel producer, 
fabricator, laminated product producer, importer, designer, distributor 
or retailer of composite wood products;
    (ii) Ensure that TPC management personnel and TPC personnel 
involved in the review and certification decision-making process for 
composite wood products are not involved in activities within the same 
or separate legal entity that may compromise the impartiality of its 
certification decision-making process, such as advocacy or consulting 
activities;
    (iii) Ensure that TPC management personnel and TPC personnel of the 
same or separate legal entity involved in activities such as advocacy 
or consulting are not involved in the management of the certification 
body, the review, or the certification decisions; and
    (iv) Ensure that TPC management personnel and TPC personnel 
certifying composite wood products sign a conflict of interest 
statement attesting that they will receive no financial benefit from 
the outcome of certification.
    (4) Responsibilities. Each EPA TSCA Title VI TPC has the following 
responsibilities under the EPA TSCA Title VI Third-Party Certification 
Program:
    (i) Certification. EPA TSCA Title VI TPCs certify composite wood 
products that are produced in accordance with this part and that comply 
with the emission standards of TSCA Title VI and this part, in 
accordance with ISO/IEC 17065:2012(E) (incorporated by reference, see 
Sec.  770.99). For each panel producer making composite wood products 
certified by the TPC, the EPA TSCA Title VI TPC must:
    (A) Verify that each panel producer has adequate quality assurance 
and quality control procedures and is complying with the applicable 
quality assurance and quality control requirements of this part;
    (B) Verify each panel producer's quality control test results 
compared with test results from ASTM E1333-10 and ASTM D6007-02, if 
used, (incorporated by reference, see Sec.  770.99) by having the TPC 
laboratory conduct quarterly tests and evaluate test method equivalence 
and correlation as required under Sec.  770.20;
    (C) In consultation with the panel producer, establish quality 
control limits (QCLs) for formaldehyde emissions, and, if applicable, 
shipping quality control limits or other formaldehyde emission limits, 
for each panel producer and product type;
    (D) Establish, for each panel producer, the process that will be 
used to determine if products are exceeding the applicable QCL;
    (E) Provide its CARB or EPA TPC number to each panel producer for 
labeling and recordkeeping; and
    (F) Inspect each panel producer, its products, and its records at 
least quarterly in conformance with ISO/IEC 17020:1998(E) as required 
under ISO/IEC 17065:2012(E) section 6.2.1 (incorporated by reference, 
see Sec.  770.99).
    (ii) Laboratories. For quarterly testing, each EPA TSCA Title VI 
TPC must use only laboratories that have been accredited by an EPA TSCA 
Title VI Laboratory AB and that either participate in the CARB 
interlaboratory comparison for formaldehyde emissions when offered or 
in an EPA-recognized proficiency or interlaboratory program, if 
available.
    (iii) NAF and ULEF. For panel producers that do not receive 
approval for NAF or ULEF third-party certification exemptions or ULEF 
reduced testing from CARB, EPA TSCA Title VI TPCs must review 
applications for NAF or ULEF third-party certification exemptions or 
ULEF reduced testing. Each EPA TSCA Title VI TPC must approve these 
applications within 90 calendar days of receipt if the panel producer 
demonstrates that the requirements for third-party certification 
exemption under Sec.  770.17 or Sec.  770.18 or reduced testing under 
Sec.  770.18 are met.
    (iv) Reduced testing for medium-density fiberboard or fiberboard. 
EPA TSCA Title VI TPCs must review applications from panel producers to 
reduce the number of quality control tests for particleboard and 
medium-density fiberboard, and approve these applications within 90 
calendar days of receipt if the panel producer demonstrates that the 
requirements for reduced testing under Sec.  770.20(b)(2)(ii) are met.
    (v) Notifications to EPA. Each EPA TSCA Title VI TPC must provide, 
in accordance with Sec.  770.8, the following notifications to EPA, as 
applicable:
    (A) Notification of an approved or rejected application, including 
a renewal application, for a NAF or ULEF third-party certification 
exemption or ULEF reduced testing within five calendar days of the 
approval or rejection with copies of all approved applications 
forwarded to EPA within 30 calendar days of approval.
    (B) Notification of an approved or rejected application, including 
a renewal application, for reduced testing for medium-density 
fiberboard or particleboard within five calendar days of the approval 
or rejection with copies of all approved applications forwarded to EPA 
within 30 calendar days of approval.
    (C) Notification of a panel producer exceeding its established QCL 
for more than two consecutive quality control tests within 72 hours of 
the time that the TPC becomes aware of the second exceedance. The 
notice must include the product type, dates of the quality control 
tests that exceeded the QCL, quality control test results, ASTM E1333-
10 (incorporated by reference, see Sec.  770.99) correlative equivalent 
values, the established QCL value(s) and the quality control method 
used.
    (D) Notification of each failed quarterly test, that is any sample 
that exceeds the applicable formaldehyde emission standard in Sec.  
770.10, within 72 hours. Information in this notification is not 
eligible for treatment as confidential business information.
    (E) Notification of a change in a non-domestic TPC's agent for 
service within five calendar days.
    (F) Notification of a loss of accreditation or notification that 
the TPC has discontinued its participation in the EPA TSCA Title VI 
Third-Party Certification Program must be provided within 72 hours.

[[Page 89733]]

    (vi) Other notifications. Each EPA TSCA Title VI TPC must provide 
the following notifications, if applicable:
    (A) Notification of each failed quarterly test, that is any sample 
that exceeds the applicable formaldehyde emission standard in Sec.  
770.10, to the panel producer in writing within 72 hours. Information 
in this notification is not eligible for treatment as confidential 
business information.
    (B) Notification of a loss of accreditation or notification that 
the TPC has discontinued its participation in the EPA TSCA Title VI 
Third-Party Certification Program within 72 hours to all panel 
producers for which it provides EPA TSCA Title VI certification 
services.
    (C) Notification of any changes in personnel qualifications, 
procedures, or laboratories used, to the TPC's EPA TSCA Title VI ABs 
within 30 calendar days.
    (vii) Records. Each EPA TSCA Title VI TPC must maintain, in 
electronic form, the following records for three years from the date 
the record is created, and provide them to EPA within 30 calendar days 
of a request from EPA:
    (A) A list of panel producers and their respective products and 
product types, including type of resin systems used, that the EPA TSCA 
Title VI TPC has certified;
    (B) Results of inspections and formaldehyde emissions tests 
conducted for and linked to each panel producer and product type;
    (C) A list of laboratories used by the EPA TSCA Title VI TPC, as 
well as all test methods used, including test conditions and 
conditioning time, and quarterly test results;
    (D) Methods and results for establishing test method correlations 
and equivalence;
    (E) Documentation for NAF or ULEF third-party certification 
exemptions or ULEF reduced testing approvals, including the name of the 
panel producer, facility, products approved, type of resin systems used 
and dates of approval;
    (F) Documentation of reduced testing approval for panel producers 
of medium-density fiberboard or particleboard, including the name of 
the panel producer, products approved and dates of approval; and
    (G) A copy of the most recent assessment, reassessment, and/or 
surveillance on-site assessment report provided by its EPA TSCA Title 
VI ABs.
    (viii) Annual report. Each EPA TSCA Title VI TPC must provide, in 
accordance with Sec.  770.8, an annual report on or before March 1st of 
each year for the TPC services performed during the previous calendar 
year. Quarterly test results, the test method, date of test, and 
product tested (including the product name or description and panel 
producer name) are not eligible for treatment as confidential business 
information. The report must contain all of the following elements, as 
applicable:
    (A) The following information for each panel producer making 
composite wood products certified by the TPC, the EPA TSCA Title VI 
TPC:
    (1) Composite wood products that the EPA TSCA Title VI TPC has 
certified during the previous calendar year;
    (2) Types of resin systems used for the composite wood products 
certified;
    (3) Dates of quarterly inspections;
    (4) For each quarterly test, the date, result, test method, and 
whether a contract laboratory was used;
    (5) For each failed quarterly test, the product type, the volume of 
product affected, the results of recertification testing, and a 
description of the final disposition of the affected product, including 
how the non-complying lot was addressed;
    (6) For each non-complying lot resulting from a failed quality 
control test, the test date, method, product type, volume of product 
affected, lot numbers, the results of retesting, and a description of 
the final disposition of the affected product, including how the non-
complying lot was addressed; and
    (7) Any corrective actions that resulted from quarterly tests and 
inspections.
    (B) A list of laboratories and test methods used by the TPC, number 
and volume (cubic meters) of large and small chambers, date of 
equivalence determination and equivalence data.
    (C) Any non-conformities identified by its EPA TSCA Title VI AB(s) 
and how they were addressed.
    (D) The results compared with the mean of the interlaboratory 
comparison for all formaldehyde emissions interlaboratory comparison 
tests other than the CARB interlaboratory comparison or, if available, 
the results of an EPA-recognized proficiency testing program.
    (ix) Assessments and inspections. Upon request, each EPA TSCA Title 
VI TPC must allow EPA representatives to:
    (A) Accompany the TPC's staff during an assessment, reassessment or 
surveillance on-site assessment of the TPC by its AB(s); and
    (B) Inspect the TPC's facilities, at reasonable times, within 
reasonable limits, and in a reasonable manner, upon the presentation of 
appropriate credentials and a written notification to the TPC.
    (d) Reciprocity for third-party certifiers approved by the 
California Air Resources Board (CARB)--(1) During transitional period. 
The transitional period is defined as the two-year period beginning on 
December 12, 2016 and ending on December 12, 2018. TPCs already 
approved by CARB and TPCs subsequently approved by CARB during the 
transition period must apply for EPA recognition in accordance with 
Sec.  770.8 before they can certify any products under this part. Once 
recognized by EPA, CARB-approved TPCs become EPA TSCA Title VI TPCs and 
may certify composite wood products under TSCA Title VI until December 
12, 2018 as long as they:
    (i) Remain approved by CARB; and
    (ii) Comply with all aspects of this part other than the 
requirements of paragraphs (c)(1)(i) and (ii) and (c)(2)(iii) and (iv) 
of this section. This includes:
    (A) Provide panel producers with the TPC number issued by CARB; and
    (B) Provide the annual report required by paragraph (c)(4)(viii) of 
this section to CARB and EPA during the two-year transitional period.
    (C) Provide notifications required by paragraph (c)(4)(v) to EPA.
    (2) After transition period. (i) TPCs approved by CARB may continue 
to certify composite wood products under TSCA Title VI after the two-
year transitional period if the TPC:
    (A) Maintains its CARB approval;
    (B) Complies with the requirements of this part;
    (C) Submits to EPA, in accordance with Sec.  770.8:
    (1) Documentation from CARB that specifies eligibility for 
reciprocity; and
    (2) A copy of the application submitted to CARB to be recognized as 
a TPC under the CARB ATCM.
    (D) Receives EPA recognition as an EPA TSCA Title VI TPC.
    (ii) EPA retains the authority to deny recognition of CARB-approved 
TPCs who seek recognition through reciprocity in the EPA TSCA Title VI 
Third-Party Certification Program if EPA has information indicating 
that the TPC is not qualified.
    (e) Suspension, revocation or modification of recognition--(1) 
Third-party certifiers. EPA may suspend, revoke or modify the 
recognition of a TPC, if the TPC:
    (i) Fails to comply with any requirement of TSCA Title VI or this 
part;
    (ii) Makes any false or misleading statements on its application, 
records, or reports; or
    (iii) Makes substantial changes to personnel qualifications, 
procedures, or laboratories that make the TPC or TPC

[[Page 89734]]

laboratory unable to comply with any applicable requirements of this 
part.
    (2) ABs. EPA may suspend, revoke or modify the recognition of an AB 
if the AB:
    (i) No longer maintains signatory status to the IAF MLA or ILAC 
MRA, membership in one of the IAF/ILAC recognized regional 
accreditation cooperations, or an equivalent organization as determined 
by EPA;
    (ii) Fails to comply with any requirement of TSCA Title VI or this 
part;
    (iii) Makes any false or misleading statements on its application, 
records, or reports; or
    (iv) Makes substantial changes to personnel qualifications or 
procedures that make the AB, TPC and/or TPC laboratory unable to comply 
with any applicable requirements of this part.
    (3) Process for suspending, revoking or modifying recognition. (i) 
Prior to taking action to suspend, revoke or modify recognition, EPA 
will notify the participant AB or the participant TPC in writing of the 
following:
    (A) The legal and factual basis for the proposed suspension, 
revocation or modification;
    (B) The anticipated commencement date and duration of the 
suspension, revocation or modification;
    (C) Actions, if any, which the affected AB or TPC may take to avoid 
suspension, revocation or modification, or to receive recognition in 
the future; and
    (D) The opportunity and method for requesting a hearing with EPA 
prior to final suspension, revocation or modification.
    (ii) If the affected AB or TPC requests a hearing in writing to EPA 
within 30 calendar days of receipt of the notification, EPA will:
    (A) Provide the affected AB or TPC an opportunity to offer written 
statements in response to EPA's assertions of the legal and factual 
basis for the proposed action; and
    (B) Appoint an impartial EPA official as Presiding Officer to 
conduct the hearing. The Presiding Officer will:
    (1) Conduct a fair, orderly, and impartial hearing within 90 
calendar days of the request for a hearing;
    (2) Consider all relevant evidence, explanations, comments, and 
arguments submitted; and
    (3) Notify the affected AB or TPC in writing within calendar 90 
days of completion of the hearing of his or her decision and order. 
Such an order is a final EPA action which may be subject to judicial 
review. The order must contain the basis, commencement date, and 
duration of the suspension, revocation or modification.
    (iii) If EPA determines that the public health, interest, or 
welfare warrants immediate action to revoke the recognition of an AB or 
TPC prior to the opportunity for a hearing, it will notify the affected 
AB or TPC of its right to request a hearing on the immediate revocation 
within 15 calendar days of the revocation taking place and the 
procedures for the conduct of such a hearing.
    (iv) Any notification, decision, or order issued by EPA under this 
section, any transcript or other verbatim record of oral testimony, and 
any documents filed by a certified individual or firm in a hearing 
under this section will be available to the public, except as otherwise 
provided by TSCA section 14. Any such hearing at which oral testimony 
is presented will be open to the public, except that the Presiding 
Officer may exclude the public to the extent necessary to allow 
presentation of information which may be entitled to confidential 
treatment under TSCA section 14.
    (v) EPA will maintain a publicly available list of ABs on its Web 
site whose recognition has been suspended, revoked or modified, or 
reinstated and a publicly available list of TPCs whose recognition has 
been suspended, revoked, modified, or reinstated.
    (vi) Unless the decision and order issued under paragraph (e)(3) of 
this section specify otherwise, an AB or a TPC whose recognition has 
been revoked must reapply for recognition in order to become recognized 
under this part again.
    (vii) Unless the decision and order issued under paragraph (e)(3) 
of this section specify otherwise, an AB whose recognition has been 
revoked or a TPC whose recognition has been revoked, must immediately 
notify all TPCs or panel producers to which it provides TSCA Title VI 
accreditation or certification services of the revocation.
    (f) Effect of the loss of recognition or accreditation. (1) If an 
AB is removed or withdraws from the EPA TSCA Title VI Third-Party 
Certification Program:
    (i) For reasons other than fraud or providing false or misleading 
statements, and other than a reason that implicates a particular TPC in 
a violation of TSCA Title VI, TPCs accredited by that AB can continue 
to certify products under TSCA Title VI for 180 calendar days, after 
which the TPCs must be accredited again by another EPA TSCA Title VI AB 
and re-recognized by EPA.
    (ii) Due to fraud or providing false or misleading statements with 
respect to a particular TPC, or for any other reason that implicates a 
particular TPC in a violation of TSCA Title VI, that TPC may not 
provide any TSCA Title VI certification services until it has been 
accredited again by another EPA TSCA Title VI AB and re-recognized by 
EPA.
    (2) If a TPC loses its accreditation, or if TPC is removed or 
withdraws from the EPA TSCA Title VI Third-Party Certification Program:
    (i) For reasons other than fraud or providing false or misleading 
statements, and other than a reason that implicates a particular panel 
producer in a violation of TSCA Title VI, the panel producers that used 
the TPC to certify their products must enlist another EPA TSCA Title VI 
TPC to certify their products within 90 calendar days. If the panel 
producer is not able to obtain the services of another EPA TSCA Title 
VI TPC within 90 days, the panel producer may request from EPA a 90 
calendar day extension. During the time a panel producer is seeking a 
new TPC, it must continue to comply with all other requirements of TSCA 
Title VI, including quality control testing.
    (ii) Due to fraud or providing false or misleading statements with 
respect to a particular panel producer, or for any other reason that 
implicates a particular panel producer in a violation of TSCA Title VI, 
that panel producer may not sell, supply, offer for sale, or 
manufacture composite wood products for sale in the United States until 
its composite wood products have been recertified by another EPA TSCA 
Title VI TPC.
    (g) Process for denying EPA TSCA Title VI recognition. (1) Upon EPA 
denying a request for recognition of an AB or TPC, EPA will notify the 
AB or TPC in writing of the following:
    (i) The legal and factual basis for the denial; and
    (ii) Actions, if any, which the affected AB or TPC may take to 
receive recognition in the future.
    (2) [Reserved]


Sec.  770.8   Applications, notifications, and reports.

    (a) All applications, notifications, and reports that are required 
to be submitted to EPA under this subpart must be submitted via the EPA 
Central Data Exchange (CDX) found at https://cdx.epa.gov.
    (b) If the EPA CDX is unavailable, EPA will so inform EPA TSCA 
Title VI ABs and TPCs and will make electronic applications and 
reporting forms available online at http://www.epa.gov/formaldehyde.
    (c)(1) Persons submitting a notice under this rule are subject to 
EPA confidentiality regulations at 40 CFR part 2, subpart B, except 
that the

[[Page 89735]]

certification in paragraph (c)(2) of this section must also be provided 
when asserting a claim of confidentiality.
    (2) In submitting a claim of confidentiality, a person must certify 
the truth of the following four statements concerning all information 
which is claimed as confidential:
    (i) My company has taken measures to protect the confidentiality of 
the information.
    (ii) I have determined that the information is not required to be 
disclosed or otherwise made available to the public under any other 
Federal law.
    (iii) I have a reasonable basis to conclude that disclosure of the 
information is likely to cause substantial harm to the competitive 
position of the person.
    (iv) I have a reasonable basis to believe that the information is 
not readily discoverable through reverse engineering.

Subpart C--Composite Wood Products


Sec.  770.10   Formaldehyde emission standards.

    (a) Except as otherwise provided in this part, the emission 
standards in this section apply to composite wood products sold, 
supplied, offered for sale, or manufactured (including imported) on or 
after December 12, 2017 in the United States. These emission standards 
apply regardless of whether the composite wood product is in the form 
of a panel, a component part, or incorporated into a finished good.
    (b) The emission standards are based on test method ASTM E1333-10 
(incorporated by reference, see Sec.  770.99), and are as follows:
    (1) For hardwood plywood made with a veneer core or a composite 
core, 0.05 parts per million (ppm) of formaldehyde.
    (2) For medium-density fiberboard, 0.11 ppm of formaldehyde.
    (3) For thin medium-density fiberboard, 0.13 ppm of formaldehyde.
    (4) For particleboard, 0.09 ppm of formaldehyde.


Sec.  770.12   Stockpiling.

    (a) The sale of stockpiled inventory of composite wood products, 
whether in the form of panels or incorporated into component parts or 
finished goods, is prohibited after December 12, 2017.
    (b) To determine whether stockpiling has occurred, the rate of 
manufacture or purchase is measured as follows:
    (1) For composite wood products in the form of panels, the rate is 
measured in terms of square footage of panels produced.
    (2) For composite wood products incorporated into component parts 
or finished goods, the rate is measured in terms of the square footage 
of composite wood product panels purchased for the purpose of 
incorporating them into component parts or finished goods.
    (c) Manufacturers or purchasers who have, in an annual year, a 
greater than 20% increase in manufacturing or purchasing composite wood 
products relative to annual year 2009 for some reason other than 
circumventing the emission standards would not be in violation of this 
section. Such reasons may include, but are not limited to:
    (1) A quantifiable immediate increase in customer demand or sales.
    (2) A documented and planned business expansion.
    (3) The manufacturer or purchaser was not in business at the 
beginning of calendar year 2009.
    (4) An increase in production to meet increased demand resulting 
from an emergency event or natural disaster.
    (d) In order to be found to be stockpiling an entity must be 
increasing the rate of manufacturing or purchasing for the purpose of 
circumventing the emission standards.


Sec.  770.15   Composite wood product certification.

    (a) After December 12, 2017, only certified composite wood 
products, whether in the form of panels or incorporated into component 
parts or finished goods, are permitted to be sold, supplied, offered 
for sale, or manufactured (including imported) in the United States, 
unless the product is specifically exempted by this part.
    (b) Certified composite wood products are those that are produced 
or fabricated in accordance with all of the provisions of this part.
    (c) To obtain product certification, a panel producer must apply to 
an EPA TSCA Title VI TPC.
    (1) For panel producers that do not have any previous product 
certifications from a CARB-approved TPC or an EPA TSCA Title VI TPC, 
the application must contain the following:
    (i) The panel producer's name, address, telephone number, and other 
contact information;
    (ii) A copy of the panel producer's quality control manual as 
required by Sec.  770.21(a);
    (iii) Name and contact information for the panel producer's quality 
control manager;
    (iv) An identification of the specific products for which 
certification is requested, and the resin system used in panel 
production;
    (v) At least five tests conducted under the supervision of an EPA 
TSCA Title VI TPC pursuant to test method ASTM E1333-10 or ASTM D6007-
02 (incorporated by reference, see Sec.  770.99). Test results obtained 
by ASTM D6007-02 must include a showing of equivalence in accordance 
with Sec.  770.20(d)(1);
    (vi) At least five quality control tests conducted in accordance 
with Sec.  770.20(b)(1);
    (vii) Linear regression equation and correlation data; and
    (viii) Results of an initial, on-site inspection by the TPC of the 
panel producer.
    (2) For panel producers applying for certification of a new product 
type but that have previous product certifications from a CARB-approved 
TPC or an EPA TSCA Title VI TPC, the application must contain the 
following:
    (i) The panel producer's name, address, and telephone number;
    (ii) An identification of the specific products for which 
certification is requested, and the resin system used in panel 
production;
    (iii) At least five tests conducted under the supervision of an EPA 
TSCA Title VI TPC pursuant to test method ASTM E1333-10 or ASTM D6007-
02 (incorporated by reference, see Sec.  770.99). Test results obtained 
by ASTM D6007- 02 must include a showing of equivalence in accordance 
with Sec.  770.20(d)(1);
    (iv) At least five quality control tests conducted in accordance 
with Sec.  770.20(b)(1);
    (v) Linear regression equation and correlation data; and
    (vi) Description of any changes in the panel producer's quality 
control manual and a copy of those changes.
    (d) The EPA TSCA Title VI TPC must act on a panel producer's 
complete application within 90 calendar days of receipt by reviewing 
all of the components of the application.
    (1) If the application indicates that the candidate product 
achieves the applicable emission standards described in Sec.  770.10, 
adequate correlation as described in Sec.  770.20(d)(2), and that the 
panel producer is meeting the requirements in Sec.  770.21, the EPA 
TSCA Title VI TPC will approve the application.
    (2) If the application is from a panel producer that did not 
previously have products certified by a CARB-approved TPC or an EPA 
TSCA Title VI TPC, the EPA TSCA Title VI TPC will review the quality 
control manual and results of the on-site initial inspection and 
approve or disapprove the quality control manual.
    (3) If the application does not demonstrate that the candidate 
product achieves the applicable emission

[[Page 89736]]

standards described in Sec.  770.10, the EPA TSCA Title VI TPC will 
disapprove the application. A new application may be submitted for the 
candidate product at any time.
    (e) If a product is certified by a CARB-approved TPC, it will also 
be considered certified under TSCA Title VI until December 12, 2018 
after which the TPC needs to receive recognition as an EPA TSCA Title 
VI TPC under Sec.  770.7(d) in order for the product to remain 
certified.
    (f) To maintain certification, the panel producer making the 
certified product must get inspected by its EPA TSCA Title VI TPC 
quarterly as well as meet the testing requirements under Sec.  770.20.
    (g) If the certified product fails a quarterly test, certification 
for any product types represented by the sample is suspended until a 
compliant quarterly test result is obtained in accordance with Sec.  
770.22.


Sec.  770.17   No-added formaldehyde-based resins.

    (a) Producers of composite wood product panels made with no-added 
formaldehyde-based resins may apply to an EPA TSCA Title VI TPC or to 
CARB for a two-year exemption from the testing requirements in Sec.  
770.20 and certification requirements in Sec. Sec.  770.15 and 
770.40(b). The application must contain the following:
    (1) The panel producer's name, address, and telephone number;
    (2) An identification of the specific product and the resin system;
    (3) At least one test conducted under the supervision of an EPA 
TSCA Title VI TPC pursuant to test method ASTM E1333-10 or ASTM D6007-
02 (incorporated by reference, see Sec.  770.99). Test results obtained 
by ASTM D6007-02 must include a showing of equivalence in accordance 
with Sec.  770.20(d)(1); and
    (4) Three months of routine quality control tests under Sec.  
770.20, including a showing of correlation in accordance with Sec.  
770.20(d)(2), totaling not less than five quality control tests.
    (b) The EPA TSCA Title VI TPC will approve a panel producer's 
application within 90 calendar days of receipt if the application is 
complete and demonstrates that the candidate product achieves the 
emission standards described in paragraph (c) of this section.
    (c) As measured according to paragraphs (a)(3) and (4) of this 
section, the emission standards for composite wood products made with 
no-added formaldehyde-based resins are as follows:
    (1) No test result higher than 0.05 parts per million (ppm) of 
formaldehyde for hardwood plywood and 0.06 ppm for particleboard, 
medium-density fiberboard, and thin medium-density fiberboard.
    (2) No higher than 0.04 ppm of formaldehyde for 90% of the three 
months of routine quality control testing data required under paragraph 
(a)(4) of this section.
    (d) Products that meet the requirements specified under Sec.  
770.17(c)(1) and (2) and have obtained exemption from the California 
Air Resources Board will also be exempt from the requirements in 
Sec. Sec.  770.15, 770.20, and 770.40(b), as long as the requirements 
of the California Air Resources Board remain as stringent as EPA's 
requirements.
    (e) After the two-year period of the initial exemption, and every 
two years thereafter, in order to continue to qualify for the exemption 
from the testing and certification requirements, the panel producer 
must reapply to an EPA TSCA Title VI TPC or to CARB and obtain at least 
one test result in accordance with paragraph (a)(3) of this section 
that complies with the emission standards in paragraph (c)(1) of this 
section.
    (f) Any time there is an operational or process change that is 
likely to affect formaldehyde emissions, such as a change in resin 
formulation, press cycle duration, temperature, or amount of resin used 
per panel, at least one quality control test under Sec.  770.20 and at 
least one test result in accordance with paragraph (a)(3) of this 
section that indicate compliance with the emission standards in 
paragraph (c)(1) of this section are required.
    (g) A change in the resin system invalidates the exemption for any 
product produced with the different resin after such a change.


Sec.  770.18   Ultra low-emitting formaldehyde resins.

    (a) Producers of composite wood product panels made with ultra low-
emitting formaldehyde resins may apply to an EPA TSCA Title VI TPC or 
CARB for approval either to conduct less frequent testing than is 
specified in Sec.  770.20 or approval for a two-year exemption from the 
testing requirements in Sec.  770.20 and certification requirements in 
Sec. Sec.  770.15 and 770.40(b). The application must contain the 
following:
    (1) The panel producer's name, address, and telephone number;
    (2) An identification of the specific product type, including resin 
system;
    (3) At least two tests conducted under the supervision of an EPA 
TSCA Title VI TPC pursuant to test method ASTM E1333-10 or ASTM D6007-
02 (incorporated by reference, see Sec.  770.99). Test results obtained 
by ASTM D6007-02 must include a showing of equivalence in accordance 
with Sec.  770.20(d)(1); and
    (4) Six months of routine quality control tests under Sec.  770.20, 
including a showing of correlation in accordance with Sec.  
770.20(d)(2), totaling not less than ten quality control tests.
    (b) The EPA TSCA Title VI TPC will approve a panel producer's 
application within 90 calendar days of receipt if the application is 
complete and demonstrates that the candidate product achieves the 
emission standards required for reduced testing as described in 
paragraph (c) of this section or the emission standards required for a 
two-year exemption as described in paragraph (d) of this section.
    (c) As measured according to paragraphs (a)(3) and (4) of this 
section, the emission standards for reduced testing for composite wood 
products made with ultra low-emitting formaldehyde resins are as 
follows:
    (1) No test result higher than 0.05 parts per million (ppm) of 
formaldehyde for hardwood plywood, 0.08 ppm for particleboard, 0.09 ppm 
for medium-density fiberboard, and 0.11 ppm for thin medium-density 
fiberboard.
    (2) For 90% of the six months of routine quality control testing 
data required under paragraph (a)(4) of this section, no higher than 
0.05 ppm of formaldehyde for particleboard, no higher than 0.06 ppm of 
formaldehyde for medium-density fiberboard, and no higher than 0.08 ppm 
of formaldehyde for thin medium-density fiberboard.
    (d) As measured according to paragraphs (a)(3) and (4) of this 
section, the emission standards for an exemption from the testing and 
certification requirements of Sec.  770.20 for composite wood products 
made with ultra low-emitting formaldehyde resins are as follows:
    (1) No test result higher than 0.05 ppm of formaldehyde for 
hardwood plywood or 0.06 ppm of formaldehyde for particleboard, medium-
density fiberboard, and thin medium-density fiberboard.
    (2) For 90% of the six months of routine quality control testing 
data required under paragraph (a)(4) of this section, no higher than 
0.04 parts per million of formaldehyde.
    (e) Products that have obtained an exemption from the California 
Air Resources Board will also be exempt from the requirements in 
Sec. Sec.  770.15, 770.20, and 770.40(b) if they meet the requirements 
under Sec.  770.18(d) and the

[[Page 89737]]

requirements of the California Air Resources Board remain as stringent 
as EPA's requirements. Products that have obtained approval for reduced 
testing from the California Air Resources Board will be granted 
approval to conduct less frequent testing than is specified in Sec.  
770.20 if they meet the requirements under Sec.  770.18(c) and the 
requirements of the California Air Resources Board remain as stringent 
as EPA's requirements.
    (f) Products that are represented by a quarterly test result that 
exceeds the applicable emission standard in this section or a quality 
control test that indicates that the product exceeds the applicable 
emission standard in this section lose their reduced testing approval 
and must reapply as specified under Sec.  770.18(a).
    (g) After the two-year period of the initial exemption, and every 
two years thereafter, in order to continue to qualify for the exemption 
from the testing and certification requirements, the panel producer 
must reapply to an EPA TSCA Title VI TPC or CARB and obtain at least 
two test results in accordance with paragraph (a)(3) of this section 
that comply with the emission standards in paragraph (d)(1) of this 
section.
    (h) Any time there is an operational or process change such as a 
change in resin formulation, press cycle duration, temperature, or 
amount of resin used per panel, at least five quality control tests 
under Sec.  770.20 and at least one test result in accordance with 
paragraph (a)(3) of this section that indicate compliance with the 
emission standards in paragraph (d)(1) of this section are required.
    (i) A change in the resin system invalidates the exemption or 
reduced testing approval for any product type produced after such a 
change.


Sec.  770.20   Testing requirements.

    (a) General requirements. (1) All panels must be tested in an 
unfinished condition, prior to the application of a finishing or 
topcoat, as soon as possible after their production but no later than 
30 calendar days after production.
    (2) Facilities that conduct the formaldehyde testing required by 
this section must follow the procedures and specifications, such as 
testing conditions and loading ratios, of the test method being used.
    (3) All equipment used in the formaldehyde testing required by this 
section must be calibrated and otherwise maintained and used in 
accordance with the equipment manufacturer's instructions.
    (b) Quality control testing--(1) Allowable methods. Quality control 
testing must be performed using any of the following methods, with a 
showing of correlation for each method pursuant to paragraph (d) of 
this section:
    (i) ASTM D6007-02 (incorporated by reference, see Sec.  770.99).
    (ii) ASTM D5582-00 (incorporated by reference, see Sec.  770.99).
    (iii) BS EN 717-2:1995 (Gas Analysis Method) (incorporated by 
reference, see Sec.  770.99).
    (iv) DMC 2007 User's Manual (incorporated by reference, see Sec.  
770.99).
    (v) DMC 2012 GP User's Manual (incorporated by reference, see Sec.  
770.99).
    (vi) BS EN 120:1992 (Perforator Method) (incorporated by reference, 
see Sec.  770.99).
    (vii) JIS A 1460:2001(E) (24-hr Desiccator Method) (incorporated by 
reference, see Sec.  770.99).
    (2) Frequency of testing. (i) Particleboard and medium-density 
fiberboard must be tested at least once per shift (eight or twelve 
hours, plus or minus one hour of production) for each production line 
for each product type. Quality control tests must also be conducted 
whenever:
    (A) A product type production ends, even if eight hours of 
production has not been reached;
    (B) The resin formulation is changed so that the formaldehyde to 
urea ratio is increased;
    (C) There is an increase by more than ten percent in the amount of 
formaldehyde resin used, by square foot or by panel;
    (D) There is a decrease in the designated press time by more than 
20%; or
    (E) The quality control manager or quality control employee has 
reason to believe that the panel being produced may not meet the 
requirements of the applicable standards.
    (ii) Particleboard and medium-density fiberboard panel producers 
are eligible for reduced quality control testing if they demonstrate 
consistent operations and low variability of test values.
    (A) To qualify, panel producers must:
    (1) Apply in writing to an EPA TSCA Title VI TPC; and
    (2) Maintain a 30 panel running average.
    (B) With respect to reduced quality control testing, EPA TSCA Title 
VI TPCs:
    (1) May approve a reduction to one quality control test per 24-hour 
production period if the 30 panel running average remains two standard 
deviations below the designated QCL for the previous 60 consecutive 
calendar days or more;
    (2) May approve a reduction to one quality control test per 48-hour 
production period if the 30 panel running average remains three 
standard deviations below the designated QCL for the previous 60 
consecutive calendar days or more;
    (3) Will approve a request for reduced quality control testing as 
long as the data submitted by the panel producer demonstrate compliance 
with the criteria and the EPA TSCA Title VI TPC does not otherwise have 
reason to believe that the data are inaccurate or the panel producer's 
production processes are inadequate to ensure continued compliance with 
the emission standards; and
    (4) Will revoke approval for reduced quality control testing if 
testing or inspections indicate a panel producer no longer demonstrates 
consistent operations and low variability of test values.
    (iii) Hardwood plywood must be tested as follows:
    (A) At least one test per week per product type if the weekly 
hardwood plywood production at the panel producer is more than 100,000 
but less than 200,000 square feet.
    (B) At least two tests per week per product type if the weekly 
hardwood plywood production at the panel producer is 200,000 square 
feet or more, but less than 400,000 square feet.
    (C) At least four tests per week per product type if the weekly 
hardwood plywood production at the panel producer is 400,000 square 
feet or more.
    (D) If weekly production of hardwood plywood at the panel producer 
is 100,000 square feet or less, at least one test per 100,000 square 
feet for each product type produced; or, if less than 100,000 square 
feet of a particular product type is produced, one quality control test 
of that product type every month that it is produced.
    (E) Quality control tests must also be conducted whenever:
    (1) The resin formulation is changed so that the formaldehyde to 
urea ratio is increased;
    (2) There is an increase by more than ten percent in the amount of 
formaldehyde resin used, by square foot or by panel;
    (3) There is an increase by more than 20% in the adhesive 
application rate;
    (4) There is a decrease in the designated press time by more than 
20%; or
    (5) The quality control manager or quality control employee has 
reason to believe that the panel being produced

[[Page 89738]]

may not meet the requirements of the applicable standard.
    (iv) Composite wood products that have been approved by an EPA TSCA 
Title VI TPC or CARB for reduced testing under Sec.  770.18(b) through 
(c) must be tested at least once per week per product type and, for 
particle board and medium-density fiberboard, per production line, for 
products produced that week, except that hardwood plywood panel 
producers who qualify for less frequent testing under paragraph 
(b)(2)(iii)(D) of this section may continue to perform quality control 
testing under that provision.
    (3) Results. Any test result that exceeds the QCL established 
pursuant to Sec.  770.7(c)(4)(i)(C) must be reported to the EPA TSCA 
Title VI TPC in writing within 72 hours. The panel producer must comply 
with Sec.  770.22 with respect to any lot represented by a quality 
control sample that exceeds the QCL. Where multiple products are 
grouped in a single product type for testing, this includes all 
products in the group represented by the sample.
    (c) Quarterly testing. Quarterly testing must be supervised by EPA 
TSCA Title VI TPCs and performed by TPC laboratories.
    (1) Allowable methods. Quarterly testing must be performed using 
ASTM E1333-10 (incorporated by reference, see Sec.  770.99) or, with a 
showing of equivalence pursuant to paragraph (d) of this section, ASTM 
D6007-02 (incorporated by reference, see Sec.  770.99).
    (2) Sample selection. (i) Samples must be randomly chosen by an EPA 
TSCA Title VI TPC.
    (ii) Samples must be selected from each certified product type for 
quarterly testing purposes. For hardwood plywood samples, the samples 
must be randomly selected from products that represent the range of 
formaldehyde emissions of products produced by the panel producer.
    (iii) Samples must not include the top or the bottom composite wood 
product of a bundle.
    (3) Sample handling. Samples must be closely stacked or air-tight 
wrapped between the time of sample selection and the start of test 
conditioning. Samples must be labeled as such, signed by the EPA TSCA 
Title VI TPC, bundled air-tight, wrapped in polyethylene, protected by 
cover sheets, and promptly shipped to the TPC laboratory. Conditioning 
must begin as soon as possible, but no later than 30 calendar days 
after the samples were produced.
    (4) Results. Any sample that exceeds the applicable formaldehyde 
emission standard in Sec.  770.10 must be reported by the EPA TSCA 
Title VI TPC to the panel producer in writing and to EPA, in accordance 
with Sec.  770.8, within 72 hours. The panel producer must comply with 
Sec.  770.22 with respect to any lot represented by a sample result 
that exceeds the applicable formaldehyde emission standard. Where 
multiple products are grouped in a single product type for testing, 
this includes all products in the group represented by the sample.
    (5) Reduced testing frequency. Composite wood products that have 
been approved by an EPA TSCA Title VI TPC or CARB for reduced testing 
under Sec.  770.18(c) need only undergo quarterly testing every six 
months.
    (d) Equivalence or correlation. Equivalence or correlation between 
ASTM E1333-10 (incorporated by reference, see Sec.  770.99) and any 
other test method used for quarterly or quality control testing must be 
demonstrated by EPA TSCA Title VI TPCs or panel producers, 
respectively, at least once each year for each testing apparatus or 
whenever there is a significant change in equipment, procedure, or the 
qualifications of testing personnel. Once equivalence or correlation 
have been established for three consecutive years, equivalence or 
correlation must be demonstrated every two years or whenever there is a 
significant change in equipment, procedure, or the qualifications of 
testing personnel.
    (1) Equivalence between ASTM E1333-10 and ASTM D6007-02 when used 
by the TPC for quarterly testing. Equivalence must be demonstrated for 
at least five comparison sample sets, which compare the results of the 
two methods. Equivalence must be demonstrated for each small chamber 
used and for the ranges of emissions of composite wood products tested 
by the TPC.
    (i) Samples. (A) For the ASTM E1333-10 method (incorporated by 
reference, see Sec.  770.99), each comparison sample must consist of 
the result of testing panels, using the applicable loading ratios 
specified in the ASTM E1333-10 method (incorporated by reference, see 
Sec.  770.99), from similar panels of the same product type tested by 
the ASTM D6007-02 method (incorporated by reference, see Sec.  770.99).
    (B) For the ASTM D6007-02 method (incorporated by reference, see 
Sec.  770.99), each comparison sample shall consist of testing 
specimens representing portions of panels similar to the panels tested 
in the ASTM E1333-10 method (incorporated by reference, see Sec.  
770.99) and matched to their respective ASTM E1333-10 method 
(incorporated by reference, see Sec.  770.99) comparison sample result. 
The ratio of air flow to sample surface area specified in ASTM D6007-02 
(incorporated by reference, see Sec.  770.99) must be used.
    (C) The five comparison sample--must consist of testing a minimum 
of five sample sets as measured by the ASTM E1333-10 method 
(incorporated by reference, see Sec.  770.99).
    (ii) Average and standard deviation. The arithmetic mean, x, and 
standard deviation, S, of the difference of all comparison sets must be 
calculated as follows:
[GRAPHIC] [TIFF OMITTED] TR12DE16.002

    Where x = arithmetic mean; S = standard deviation; n = number of 
sets; Di = difference between the ASTM E1333-10 and ASTM 
D6007-02 method (incorporated by reference, see Sec.  770.99) values 
for the ith set; and i ranges from 1 to n.
    (iii) Equivalence determination. The ASTM D6007-02 method 
(incorporated by reference, see Sec.  770.99) is considered equivalent 
to the ASTM E1333-10 method (incorporated by reference, see Sec.  
770.99) if the following condition is met:
[GRAPHIC] [TIFF OMITTED] TR12DE16.003

    Where C is equal to 0.026.
    (2) Correlation between ASTM E1333-10 and any quality control test 
method. Correlation must be demonstrated by

[[Page 89739]]

establishing an acceptable correlation coefficient (``r'' value).
    (i) Correlation. The correlation must be based on a minimum sample 
size of five data pairs and a simple linear regression where the 
dependent variable (Y-axis) is the quality control test value and the 
independent variable (X-axis) is the ASTM E1333-10 (incorporated by 
reference, see Sec.  770.99) test value. Either composite wood products 
or formaldehyde emissions reference materials can be used to establish 
the correlation.
    (ii) Minimum acceptable correlation coefficients (``r'' values). 
The minimum acceptable correlation coefficients are as follows, where 
``n'' is equal to the number of data pairs, and ``r'' is the 
correlation coefficient:

------------------------------------------------------------------------
                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
------------------------------------------------------------------------

    (iii) Variation from previous results. If data from an EPA TSCA 
Title VI TPC's quarterly test results and a panel producer's quality 
control test results do not fit the previously established correlation, 
the panel producer must have its TPC establish a new correlation and 
new QCLs.
    (iv) Failed quarterly tests. If a panel producer fails two 
quarterly tests in a row for the same product type, the panel producer 
must have its TPC establish a new correlation curve.
    (e) Quality assurance and quality control requirements for panel 
producers. Panel producers are responsible for product compliance with 
the applicable emission standards.


Sec.  770.21   Quality control manual, facilities, and personnel.

    (a) Quality control manual. (1) Each panel producer must have a 
written quality control manual. The manual must contain, at a minimum, 
the following:
    (i) A description of the organizational structure of the quality 
control department, including the names of the quality control manager 
and quality control employees;
    (ii) A description of the sampling procedures to be followed;
    (iii) A description of the method of handling samples, including a 
specific maximum time period for analyzing quality control samples;
    (iv) A description of the frequency of quality control testing;
    (v) A description of the procedures used to identify changes in 
formaldehyde emissions resulting from production changes (e.g., 
increase in the percentage of resin, increase in formaldehyde/urea 
molar ratio in the resin, or decrease in press time);
    (vi) A description of provisions for additional testing;
    (vii) A description of recordkeeping procedures;
    (viii) A description of labeling procedures;
    (ix) The average percentage of resin and press time for each 
product type;
    (x) A description of product types, and if applicable, a 
description of product variables covered under each product type;
    (xi) Procedures for reduced quality control testing, if applicable; 
and
    (xii) Procedures for handling non-complying lots, including a 
description of how the panel producer will ensure compliance with the 
notification requirements of Sec.  770.22(d)(1).
    (2) The quality control manual must be approved by an EPA TSCA 
Title VI TPC.
    (b) Quality control facilities. Each panel producer must designate 
a quality control facility for conducting quality control formaldehyde 
testing.
    (1) The quality control facility must be an EPA TSCA Title VI TPC, 
a contract laboratory, or a laboratory owned and operated by the panel 
producer.
    (2) Each quality control facility must have quality control 
employees with adequate experience and/or training to conduct accurate 
chemical quantitative analytical tests. The quality control manager 
must identify each person conducting formaldehyde quality control 
testing to the EPA TSCA Title VI TPC.
    (c) Quality control manager. Each panel producer must designate a 
person as quality control manager with adequate experience and/or 
training to be responsible for formaldehyde emissions quality control. 
The quality control manager must:
    (1) Have the authority to take actions necessary to ensure that 
applicable formaldehyde emission standards are being met on an ongoing 
basis;
    (2) Be identified to the EPA TSCA Title VI TPC that will be 
overseeing the quality control testing. The panel producer must notify 
the EPA TSCA Title VI TPC in writing within ten calendar days of any 
change in the identity of the quality control manager and provide the 
EPA TSCA Title VI TPC with the new quality control manager's 
qualifications;
    (3) Review and approve all reports of quality control testing 
conducted on the production of the panel producer;
    (4) Ensure that the samples are collected, packaged, and shipped 
according to the procedures specified in the quality control manual; 
and
    (5) Inform the EPA TSCA Title VI TPC in writing of any significant 
changes in production that could affect formaldehyde emissions within 
72 hours of making those changes.


Sec.  770.22   Non-complying lots.

    (a) Non-complying lots are not certified composite wood products 
and they may not be sold, supplied or offered for sale in the United 
States except in accordance with this section.
    (b) Non-complying lots must be isolated from certified lots.
    (c) Non-complying lots must either be disposed of or retested and 
certified using the same test method, if each panel is treated with a 
scavenger or handled by other means of reducing formaldehyde emissions, 
such as aging. Tests must be performed as follows:
    (1) Quality control tests. (i) At least one test panel must be 
selected from each of three separate bundles. The panels must be 
selected so that they are representative of the entire non-complying 
lot and they are not the top or bottom panel of a bundle. The panels 
may be selected from properly stored samples set aside by the panel 
producer for retest in the event of a failure.
    (ii) All samples must test at or below the level that indicates 
that the product is in compliance with the applicable emission 
standards in Sec.  770.10.
    (2) Quarterly tests. (i) At least one test panel must be randomly 
selected so that it is representative of the entire non-complying lot 
and is not the top or bottom panel of a bundle. The panel may be 
selected from properly stored samples set aside by the panel producer 
for retest in the event of a failure.
    (ii) The sample must test at or below the applicable emission 
standards in Sec.  770.10.
    (d) If composite wood products belonging to a non-complying lot 
have been shipped to a fabricator, importer, distributor, or retailer 
before the test results are received, the panel producer must:
    (1) Ensure that the composite wood products are not distributed 
further by notifying, within 72 hours of the time that the panel 
producer is made aware of the failing test result, the fabricators, 
importers, distributors, and retailers that received the composite wood 
products.

[[Page 89740]]

The notification must include the following:
    (i) Panel producer name, contact information, and date of notice;
    (ii) A description of the composite wood products that belong to 
the non-complying lot that is sufficient to allow the fabricator, 
importer, distributor, or retailer to identify the products;
    (iii) Whether the failed test result was of a quarterly test, a 
quality control test, or a retest of composite wood products belonging 
to a non-complying lot;
    (iv) A statement that composite wood products belonging to the non-
complying lot must be isolated from other composite wood products and 
cannot be further distributed in commerce; and
    (v) A description of the steps the panel producer intends to take 
to either recall the composite wood products belonging to the non-
complying lot or to treat and retest the products and certify the lot.
    (2) Do one of the following:
    (i) Recall the composite wood products belonging to the non-
complying lot and either treat and retest products belonging to the 
non-complying lot or dispose of them; or
    (ii) Treat and retest composite wood products belonging to the non-
complying lot while they remain in possession of a fabricator, 
importer, distributor, or retailer.
    (e) Information on the disposition of non-complying lots, including 
product type and amount of composite wood products affected, lot 
numbers, mitigation measures used, results of retesting, and final 
disposition, must be provided to the EPA TSCA Title VI TPC within seven 
calendar days of final disposition.
    (f) Fabricators, importers, distributors, or retailers who are 
notified that they have received composite wood products belonging to a 
non-complying lot and who have further distributed the composite wood 
products are responsible for notifying the purchasers of the composite 
wood products in accordance with paragraph (d)(1) of this section.


Sec.  770.24   Samples for testing.

    (a) Composite wood products may be shipped into and transported 
across the United States for quality control or quarterly tests. TPCs 
that ship composite panels into or across the United States solely for 
quality control or quarterly tests are not considered importers or 
distributors or importers for the purposes of Sec.  770.7(c)(3)(i).
    (1) Such panels must not be sold, offered for sale or supplied to 
any entity other than a TPC laboratory before testing in accordance 
with Sec.  770.17, Sec.  770.18, or Sec.  770.20.
    (2) If test results for such products demonstrate compliance with 
the emission standards in this subpart, the panels may be relabeled in 
accordance with Sec.  770.45 and sold, offered for sale, or supplied.
    (b) [Reserved]


Sec.  770.30   Importers, fabricators, distributors, and retailers.

    (a) Importers, fabricators, distributors, and retailers must take 
reasonable precautions to ensure that the composite wood products they 
sell, supply, offer for sale, or hold for sale, whether in the form of 
panels, component parts, or finished goods, comply with the emission 
standards and other requirements of this subpart.
    (b) Importers must demonstrate that they have taken reasonable 
precautions by maintaining, for three years, bills of lading, invoices, 
or comparable documents that include a written statement from the 
supplier that the composite wood products, component parts, or finished 
goods are TSCA Title VI compliant or were produced before December 12, 
2017 and by ensuring the following records are made available to EPA 
within 30 calendar days of request:
    (1) Records identifying the panel producer and the date the 
composite wood products were produced; and
    (2) Records identifying the supplier, if different, and the date 
the composite wood products, component parts, or finished goods were 
purchased.
    (c) Fabricators, distributors, and retailers must demonstrate that 
they have taken reasonable precautions by obtaining bills of lading, 
invoices, or comparable documents that include a written statement from 
the supplier that the composite wood products, component parts, or 
finished goods are TSCA Title VI compliant or that the composite wood 
products were produced before December 12, 2017.
    (d) On and after December 12, 2018, importers of articles that are 
regulated composite wood products, or articles that contain regulated 
composite wood products, must comply with the import certification 
regulations for ``Chemical Substances in Bulk and As Part of Mixtures 
and Articles,'' as found at 19 CFR 12.118 through 12.127.
    (e) Records required by this section must be maintained in 
accordance with Sec.  770.40(d).


Sec.  770.40   Reporting and recordkeeping.

    (a) Panel producers must maintain the following records for a 
period of three years, except that records demonstrating initial 
eligibility for reduced testing or third-party certification exemption 
under Sec.  770.17 or Sec.  770.18 must be kept for as long as the 
panel producer is producing composite wood products with reduced 
testing or under a third-party certification exemption. The following 
records must also be made available to the panel producers' EPA TSCA 
Title VI TPCs. Panel producers must make the records described in 
paragraph (a)(1) of this section available to direct purchasers of 
their composite wood products. This information may not be withheld 
from direct purchasers as confidential business information.
    (1) Records of all quarterly emissions testing. These records must 
identify the EPA TSCA Title VI TPC conducting or overseeing the 
testing. These records must also include the date, the product type 
tested, the lot number that the tested material represents, the test 
method used, and the test results.
    (2) Records of all ongoing quality control testing. These records 
must identify the EPA TSCA Title VI TPC conducting or overseeing the 
testing and the facility actually performing the testing. These records 
must also include the date, the product type tested, the lot number 
that the tested material represents, the test method used, and the test 
results.
    (3) Production records, including a description of the composite 
wood product(s), the date of manufacture, lot numbers, and tracking 
information allowing each product to be traced to a specific lot 
produced.
    (4) Records of changes in production, including changes of more 
than ten percent in the resin use percentage, changes in resin 
composition that result in a higher ratio of formaldehyde to other 
resin components, and changes in the process, such as changes in press 
time by more than 20%.
    (5) Records demonstrating initial and continued eligibility for the 
reduced testing provisions in Sec. Sec.  770.17 and 770.18, if 
applicable. These records must include:
    (i) Approval for reduced testing from an EPA TSCA Title VI TPC or 
CARB;
    (ii) Amount of resin use reported by volume and weight;
    (iii) Production volume reported as square feet per product type;
    (iv) Resin trade name, resin manufacturer contact information 
(name, address, phone number, and email), and resin supplier contact 
information (name, address, phone number, and email); and
    (v) Any changes in the formulation of the resin.
    (6) Purchaser information for each composite wood product, if 
applicable, including the name, contact person if

[[Page 89741]]

available, address, telephone number, email address if available, 
purchase order or invoice number, and amount purchased.
    (7) Transporter information for each composite wood product, if 
applicable, including name, contact person, address, telephone number, 
email address if available, and shipping invoice number.
    (8) Information on the disposition of non-complying lots, including 
product type and amount of composite wood products affected, lot 
numbers, purchasers who received product belonging to non-complying 
lots (if any), copies of purchaser notifications used (if any), 
mitigation measures used, results of retesting, and final disposition.
    (9) Representative copies of labels used.
    (b) Panel producers must provide their EPA TSCA Title VI TPC with 
monthly product data reports for each production facility, production 
line, and product type, maintain copies of the reports for a minimum of 
three years from the date that they are produced. Monthly product data 
reports must contain a data sheet for each specific product type with 
test and production information, and a quality control graph containing 
the following:
    (1) QCL;
    (2) Shipping QCL (if applicable);
    (3) Results of quality control tests; and
    (4) Retest values.
    (c) Laminated product producers whose products are exempt from the 
definition of hardwood plywood must keep records demonstrating 
eligibility for the exemption. These records must be kept for a minimum 
of three years from the date they are produced and must include:
    (1) Resin trade name, resin manufacturer contact information (name, 
address, phone number, and email), resin supplier contact information 
(name, address, phone number, and email), and resin purchase records;
    (2) Panel producer contact information and panel purchase records;
    (3) For panels produced in-house, records demonstrating that the 
panels have been certified by an EPA TSCA Title VI TPC; and
    (4) For resins produced in-house, records demonstrating the 
production of phenol-formaldehyde resins or resins formulated with no 
added formaldehyde as part of the resin cross-linking structure.
    (d) Importers, fabricators, distributors, and retailers must 
maintain the records described in Sec.  770.30 for a minimum of three 
years from the import date or the date of the purchases or shipments 
described therein.


Sec.  770.45   Labeling.

    (a) Panels or bundles of panels that are sold, supplied, or offered 
for sale in the United States must be labeled with the panel producer's 
name, the lot number, the number of the EPA TSCA Title VI TPC, and a 
statement that the products are TSCA Title VI certified. If a composite 
wood panel is not individually labeled, the panel producer, importer, 
distributor, fabricator, or retailer must have a method (e.g., color-
coded edge marking) sufficient to identify the supplier of the panel 
and linking the information on the label to the products. This 
information must be made available to potential customers upon request. 
The label may be applied as a stamp, tag, or sticker.
    (1) A panel producer number may be used instead of a name to 
protect identity, so long as the identity of the panel producer can be 
determined at the request of EPA.
    (2) Only panels or bundles of panels manufactured in accordance 
with Sec.  770.17 may also be labeled that they were made with no-added 
formaldehyde-based resins in addition to the other information required 
by this section.
    (3) Only panels or bundles of panels manufactured in accordance 
with Sec.  770.18 may also be labeled that they were made with ultra 
low-emitting formaldehyde resins in addition to the other information 
required by this section.
    (b) Panels imported into or transported across the United States 
for quarterly or quality control testing purposes in accordance with 
Sec.  770.20 must be labeled ``For TSCA Title VI testing only, not for 
sale in the United States.'' The panels may be re-labeled if test 
results are below the applicable emission standards in this subpart.
    (c) Fabricators of finished goods containing composite wood 
products must label every finished good they produce or every box or 
bundle containing finished goods. If a finished good (including 
component parts sold separately to end users) is not individually 
labeled, the importer, distributor, or retailer must retain a copy of 
the label, be able to identify the products associated with that label, 
and make the label information available to potential customers upon 
request.
    (1) The label may be applied as a stamp, tag, or sticker.
    (2) The label must include, at a minimum, in legible English text, 
the fabricator's name, the date the finished good was produced (in 
month/year format), and a statement that the finished goods are TSCA 
Title VI compliant.
    (3) Finished goods made from panels manufactured in accordance with 
Sec.  770.17 and/or Sec.  770.18 may also be labeled that they were 
made with no-added formaldehyde-based resins, or ultra low-emitting 
formaldehyde resins in addition to the other information required by 
this section. They may be labeled as being made with a combination of 
compliant composite wood, no-added formaldehyde-based resins, and ultra 
low-emitting formaldehyde resins, if this is accurate.
    (4) Fabricators may substitute the name of a responsible downstream 
fabricator, importer, distributor, or retailer for their name on the 
label if they obtain and maintain written consent from the downstream 
entity.
    (d) Importers, distributors, and retailers must leave intact labels 
on finished goods, including component parts sold separately to end 
users.
    (e) Finished goods, including component parts sold separately to 
end users, containing only a de minimis amount of regulated composite 
wood product are excepted from the labeling requirements. A finished 
good, including component parts sold directly to consumers, contains a 
de minimis amount of regulated composite wood product if its regulated 
composite wood product content does not exceed 144 square inches, based 
on the surface area of its largest face. The exception does not apply 
to finished goods or component parts that are designed to be used in 
combination or in multiples to create larger surfaces, finished goods, 
or component parts.
    (f) Composite wood products and finished goods made entirely of 
composite wood products manufactured before the manufactured-by date 
must not be labeled as TSCA Title VI compliant.

Subpart D--Incorporation by Reference


Sec.  770.99   Incorporation by reference.

    The materials listed in this section are incorporated by reference 
into this part with the approval of the Director of the Federal 
Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any 
edition other than that specified in this section, a document must be 
published in the Federal Register and the material must be available to 
the public. All approved materials are available for inspection at the 
OPPT Docket in the Environmental Protection Agency Docket Center (EPA/
DC), West William

[[Page 89742]]

Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW., 
Washington, DC. The EPA/DC Public Reading Room hours of operation are 
8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal 
holidays. The telephone number of the EPA/DC Public Reading room is 
(202) 566-1744, and the telephone number for the OPPT Docket is (202) 
566-0280. In addition, these materials are also available for 
inspection at the National Archives and Records Administration (NARA). 
For information on the availability of this material at NARA, call 
(202) 741-6030 or go to http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html. These materials may 
also be obtained from the sources listed in this section.
    (a) CPA, AITC, and HPVA material. Copies of these materials may be 
obtained from the specific publisher, as noted below, or from the 
American National Standards Institute, 1899 L Street NW., 11th Floor, 
Washington, DC 20036, or by calling (202) 293-8020, or at http://ansi.org/. Note that ANSI/AITC A190.1-2002 is published by the American 
Institute of Timber Construction; ANSI A135.4-2012, ANSI A135.5-2012, 
ANSI A135.6-2012, ANSI A135.7-2012, ANSI A208.1-2009, and ANSI A208.2-
2009 are published by the Composite Panel Association; and ANSI ANSI/
HPVA-HP-1-2009 is published by the Hardwood Plywood Veneer Association.
    (1) ANSI A135.4-2012, Basic Hardboard, Approved June 8, 2012, IBR 
approved for Sec.  770.3.
    (2) ANSI A135.5-2012, Prefinished Hardboard Paneling, Approved 
March 29, 2012, IBR approved for Sec.  770.3.
    (3) ANSI A135.6-2012, Engineered Wood Siding, Approved June 5, 
2012, IBR approved for Sec.  770.3.
    (4) ANSI A135.7-2012, Engineered Wood Trim, Approved July 17, 2012, 
IBR approved for Sec.  770.3.
    (5) ANSI A208.1-2009, Particleboard, Approved February 2, 2009, IBR 
approved for Sec.  770.3.
    (6) ANSI A208.2-2009, Medium Density Fiberboard (MDF) for Interior 
Applications, Approved February 2, 2009, IBR approved for Sec.  770.3.
    (7) ANSI/AITC A190.1-2002, American National Standard for Wood 
Products--Structural Glued Laminated Timber, Approved October 10, 2002, 
IBR approved for Sec.  770.1(c).
    (8) ANSI/HPVA HP-1-2009, American National Standard for Hardwood 
and Decorative Plywood, Approved January 26, 2010, IBR approved for 
Sec.  770.3.
    (b) ASTM material. Copies of these materials may be obtained from 
ASTM International, 100 Barr Harbor Dr., P.O. Box C700, West 
Conshohocken, PA 19428-2959, or by calling (877) 909-ASTM, or at http://www.astm.org.
    (1) ASTM D5055-05, Standard Specification for Establishing and 
Monitoring Structural Capacities of Prefabricated Wood I-Joists, 
Approved October 1, 2005, IBR approved for Sec.  770.1(c).
    (2) ASTM D5456-06, Standard Specification for Evaluation of 
Structural Composite Lumber Products, Approved March 1, 2006, IBR 
approved for Sec.  770.1(c).
    (3) ASTM D5582-00 (Reapproved 2006), Standard Test Method for 
Determining Formaldehyde Levels from Wood Products Using a Desiccator, 
October 1, 2006, IBR approved for Sec.  770.20(b).
    (4) ASTM D6007-02, Standard Test Method for Determining 
Formaldehyde Concentrations in Air from Wood Products Using a Small 
Scale Chamber, Approved April 10, 2002, IBR approved for Sec. Sec.  
770.3, 770.7(a) through (c), 770.15(c), 770.17(a), 770.18(a) and 
770.20(b) through (d).
    (5) ASTM E1333-10, Standard Test Method for Determining 
Formaldehyde Concentrations in Air and Emission Rates from Wood 
Products Using a Large Chamber, Approved May 1, 2010, IBR approved for 
Sec. Sec.  770.3, 770.7(a) through (c), 770.10(b), 770.15(c), 
770.17(a), 770.18(a) and 770.20(c) through (d).
    (c) CEN materials. Copies of these materials are not directly 
available from the European Committee for Standardization, but from one 
of CEN's National Members, Affiliates, or Partner Standardization 
Bodies. To purchase a standard, go to CEN's Web site, http://www.cen.eu, and select ``Products'' for more detailed information.
    (1) BS EN 120:1992, Wood based panels--Determination of 
formaldehyde content--Extraction method called the perforator method, 
incorporating Amendment No. 1, English Version, copyright BSI 1997, IBR 
approved for Sec.  770.20(b).
    (2) BS EN 717-2:1995, Wood-based panels--Determination of 
formaldehyde release--Part 2: Formaldehyde release by the gas analysis 
method, incorporating Corrigendum No. 1, English Version, copyright BSI 
9 December 2002, IBR approved for Sec.  770.20(b).
    (d) Georgia Pacific material. Copies of this material may be 
obtained from Georgia-Pacific Chemicals LLC, 133 Peachtree Street, 
Atlanta, GA 30303, or by calling (877) 377-2737, or at http://www.gp-dmc.com/default.aspx.
    (1) The Dynamic Microchamber computer integrated formaldehyde test 
system, User Manual, revised March 2007 (DMC 2007 User's Manual) IBR 
approved for Sec.  770.20(b).
    (2) The GP Dynamic Microchamber Computer-integrated formaldehyde 
test system, User Manual, copyright 2012 (DMC 2012 GP User's Manual), 
IBR approved for Sec.  770.20(b).
    (e) ISO material. Copies of these materials may be obtained from 
the International Organization for Standardization, 1, ch. de la Voie- 
Creuse, CP 56, CH-1211, Geneve 20, Switzerland, or by calling +41-22-
749-01-11, or at http://www.iso.org.
    (1) ISO/IEC 17011:2004(E), Conformity assessments--General 
requirements for accreditation bodies accrediting conformity 
assessments bodies, First edition, Corrected version, 2005-02-15, IBR 
approved for Sec. Sec.  770.3 and 770.7(a) through (b).
    (2) ISO/IEC 17020:2012(E), Conformity assessment-Requirements for 
the operation of various bodies performing inspection, Second edition, 
2012-03-01 IBR approved for Sec. Sec.  770.3 and 770.7(a) through (c).
    (3) ISO/IEC 17025:2005(E), General requirements for the competence 
of testing and calibration laboratories, Second edition, 2005-05-15, 
IBR approved for Sec. Sec.  770.3 and 770.7(a) through (c).
    (4) ISO/IEC 17065:2012(E), Conformity assessment--Requirements for 
bodies certifying products, processes and services, First edition, 
2012-09-15, IBR approved for Sec. Sec.  770.3 and 770.7(a) and (c).
    (f) Japanese Standards Association. Copies of this material may be 
obtained from Japanese Industrial Standards, 1-24, Akasaka 4, Minatoku, 
Tokyo 107- 8440, Japan, or by calling +81-3-3583-8000, or at http://www.jsa.or.jp/.
    (1) JIS A 1460:2001(E), Building boards Determination of 
formaldehyde emission--Desiccator method, First English edition, 
published 2003-07 IBR approved for Sec.  770.20(b).
    (2) [Reserved]
    (g) NIST material. Copies of these materials may be obtained from 
the National Institute of Standards and Technology (NIST) by calling 
(800) 553-6847 or from the U.S. Government Printing Office (GPO). To 
purchase a NIST publication you must have the order number. Order 
numbers may be obtained from the Public Inquiries Unit at (301) 975-
NIST. Mailing address: Public Inquiries Unit, NIST, 100 Bureau Dr., 
Stop 1070, Gaithersburg, MD 20899-1070. If you have a GPO stock number, 
you can purchase printed copies of NIST publications from GPO.

[[Page 89743]]

GPO orders may be mailed to: U.S. Government Printing Office, P.O. Box 
979050, St. Louis, MO 63197-9000, placed by telephone at (866) 512-1800 
(DC Area only: (202) 512-1800), or faxed to (202) 512-2104. Additional 
information is available online at: http://www.nist.gov.
    (1) PS 1-07, Structural Plywood, May 2007, IBR approved for 
Sec. Sec.  770.1(c) and 770.3.
    (2) PS 2-04, Performance Standard for Wood-Based Structural-Use 
Panels, December 2004, IBR approved for Sec. Sec.  770.1(c) and 770.3.

    Editorial note: This document was received for publication by 
the Office of the Federal Register on November 16, 2016.

[FR Doc. 2016-27987 Filed 12-9-16; 8:45 am]
 BILLING CODE 6560-50-P


