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                                                       Calendar No. 352
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-169

======================================================================



 
         FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS ACT

                                _______
                                

                 April 19, 2010.--Ordered to be printed

                                _______
                                

Mr. Reid (for Mrs. Boxer), from the Committee on Environment and Public 
                     Works, submitted the following

                              R E P O R T

                         [To accompany S. 1660]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1660) to amend the Toxic Substances Control 
Act to reduce emissions of formaldehyde from composite wood 
products, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill, as amended, do pass.

                       Introduction and Purposes

    The Formaldehyde Standards for Composite Wood Products Act 
was introduced by Senators Klobuchar and Crapo on September 10, 
2009, and referred to the Committee on Environment and Public 
Works. The bill was considered at a business meeting held by 
the Committee on December 10, 2009. At the meeting, Senators 
Klobuchar and Crapo offered a substitute amendment which was 
agreed to by voice vote and the bill was ordered favorably 
reported, as amended.
    The Act's primary purpose is to amend the Toxic Substances 
Control Act to establish national emissions standards for 
formaldehyde in domestic and imported composite wood products.

                  Background and Need for Legislation

    Formaldehyde (chemical formula CH2O) is the most 
reactive of the aldehyde family of chemicals. It exists at room 
temperature as a colorless gas with a strong, pungent smell. 
Formaldehyde is commonly used in the U.S in the production of 
urea-formaldehyde resins used in the manufacturing of composite 
wood products.\1\ The highest levels of airborne formaldehyde 
have been detected in indoor air, where it is released from 
various composite wood consumer products, such as cabinetry and 
household furnishings. One survey reported formaldehyde levels 
ranging from 0.10 to 3.68 parts per million (ppm) in homes, and 
found higher levels in new manufactured housing than in older 
conventional homes.\2\ Higher concentrations of formaldehyde 
generally occur in residences that have relatively stagnant 
air, higher temperatures, and higher humidity.
---------------------------------------------------------------------------
    \1\U.S. Department of Health and Human Services Public Health 
Service, Agency for Toxic Substances and Disease Registry (ATSDR), 
``Toxicological Profile for Formaldehyde'' (Draft), Atlanta, GA. 1997.
    \2\U.S. Environmental Protection Agency (EPA), ``Health and 
Environmental Effects Profile for Formaldehyde'' (EPA/600/x-85/362) 
(1988); J.D. Spengler, J.F. McCarthy, J.M. Samet, ``Indoor Air Quality 
Handbook,'' McGraw-Hill Professional, New York, (2000).
---------------------------------------------------------------------------
    The major toxic effects caused by acute formaldehyde 
exposure via inhalation are nose, and throat irritation and 
effects on the nasal cavity, and acute exposure to formaldehyde 
vapors causes eye irritation.\3\ Other effects seen from 
exposure to high levels of formaldehyde in humans are coughing, 
wheezing, chest pains, and bronchitis.\4\ Animal tests using 
rats and rabbits shows that formaldehyde has high acute 
toxicity from inhalation, oral, and dermal exposure.\5\ Chronic 
exposure to formaldehyde by inhalation in humans has been 
associated with adverse respiratory symptoms and eye, nose, and 
throat irritation.\6\
---------------------------------------------------------------------------
    \3\EPA, ``Health and Environmental Effects Profile for 
Formaldehyde'' (EPA/600/x-85/362) (1988); World Health Organization 
(WHO), ``Environmental Health Criteria for Formaldehyde,'' Volume 89 
(1989).
    \4\EPA, ``Health and Environmental Effects Profile for 
Formaldehyde'' (EPA/600/x-85/362) (1988); World Health Organization 
(WHO), ``Environmental Health Criteria for Formaldehyde,'' Volume 89 
(1989).
    \5\U.S. Department of Health and Human Services, ``National 
Toxicology Information Program Registry of Toxic Effects of Chemical 
Substances'' (RTECS, online database), National Library of Medicine, 
Bethesda, MD (1993).
    \6\E.J. Calabrese and E.M. Kenyon, ``Air Toxics and Risk 
Assessment'', Lewis Publishers, Chelsea, MI (1991).
---------------------------------------------------------------------------
    Formaldehyde gas was listed by U.S. Department of Health 
and Human Services, National Institute of Environmental Health 
Sciences (NIEHS), National Toxicology Program (NTP), in the 
Eleventh Report on Carcinogens (RoC) as ``reasonably 
anticipated to be a human carcinogen.''\7\ Recently, NIEHS 
nominated formaldehyde for possible reconsideration as a 
``known carcinogen'' based on the 2004 International Agency For 
Research On Cancer (IARC) review, which concluded that there 
was sufficient evidence for IARC to determine that formaldehyde 
is known to cause cancer in humans.\8\
---------------------------------------------------------------------------
    \7\U.S. Department of Health and Human Services, Public Health 
Service, National Toxicology Program, ``Report on Carcinogens, Eleventh 
Edition''; online at: http://ntp.niehs.nih.gov/ntp/roc/toc11.html.
    \8\International Agency for Research on Cancer, Press Release: 
``IARC Classifies Formaldehyde as Carcinogenic to Humans'' (June 15, 
2004); online at: http://www.iarc.fr/en/media-centre/pr/2004/
pr153.html. 
---------------------------------------------------------------------------
    In the Clean Air Act Amendments of 1990, Congress 
identified formaldehyde as a hazardous air pollutant (HAP) for 
which the U.S. Environmental Protection Agency (EPA) was 
required to establish emission standards for major and area 
sources under section 112 of the Clean Air Act, 42 U.S.C. 7412. 
The EPA has also initiated a proceeding to investigate whether 
to take regulatory action to control the levels of formaldehyde 
emitted from composite wood products.\9\ U.S. Department of 
Housing and Urban Development (HUD) regulations at 24 C.F.R. 
Part 3280 (49 Fed. Reg. 31996 (Aug. 9, 1984), promulgated under 
the National Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5401-5427), provide standards 
for formaldehyde emissions from plywood and particleboard 
materials installed in manufactured homes. With the exception 
of the HUD regulations regarding manufactured homes, 
formaldehyde emissions from composite wood products are not 
currently regulated by the federal government.
---------------------------------------------------------------------------
    \9\EPA, Advanced Notice of Proposed Rulemaking, ``Formaldehyde 
Emissions from Pressed Wood Products,'' 73 Fed. Reg. 73620 (December 3, 
2008).
---------------------------------------------------------------------------
    In July 1992, after scientific peer review, the California 
Air Resources Board (CARB) and the Office of Environmental 
Health Hazard Assessment issued the Staff Report on 
formaldehyde emissions from composite wood products, finding 
that formaldehyde is a toxic air contaminant (TAC) with no safe 
level of exposure and proposing technology-based emissions 
standards. Because CARB identified formaldehyde as a TAC, CARB 
was required to prepare a report on the need and appropriate 
degree of regulation, if any, to reduce formaldehyde emissions. 
Such regulations are called Airborne Toxic Control Measures 
(ATCM).
    CARB found that exposure to formaldehyde has both non-
cancer (eye, nose, and/or throat irritation) and cancer health 
effects (The International Agency for Research on Cancer 
determined that there is sufficient evidence that formaldehyde 
causes nasopharyngeal cancer in humans). CARB found that 
current annual average concentrations of formaldehyde in 
ambient air range from 3 to 4 micrograms per cubic meter ( g/
m3) across California, with indoor concentrations typically 
many times higher, and that the risk from exposure to annual 
average concentrations of formaldehyde in ambient air is about 
20 to 24 potential excess cancer cases per million. CARB 
estimated that the risk from current total daily formaldehyde 
exposure is estimated to range from 86 to 231 excess cancer 
cases per million over a lifetime, and from 23 to 63 excess 
cancer cases per million due to exposures during childhood. 
CARB determined that the ATCM will reduce emissions to ambient 
air and very significantly reduce total daily exposures to 
formaldehyde, which occur throughout the day in both the 
outdoor and indoor environment and pose a serious health risk 
to the people of California.\10\
---------------------------------------------------------------------------
    \10\California Air Resources Board, ``Staff Report: Initial 
Statement of Reasons For Proposed Rulemaking: Proposed Airborne Toxic 
Control Measure To Reduce Formaldehyde Emissions from Composite Wood 
Products'' (March 9, 2007); online at http://www.arb.ca.gov/regact/
2007/compwood07/isor.pdf. 
---------------------------------------------------------------------------
    After an extensive rulemaking and scientific peer review 
process, the CARB ATCM for formaldehyde emissions from 
composite wood products was finalized in April 2008.\11\ The 
CARB ATCM establishes two phases of formaldehyde emission 
standards, measured by the American Society for Testing and 
Materials (ASTM) test E 1333-96, for certain domestic and 
imported composite wood products.\12\
---------------------------------------------------------------------------
    \11\California Air Resources Board, ``Final Statement of Reasons 
For Rulemaking: Airborne Toxic Control Measure To Reduce Formaldehyde 
Emissions from Composite Wood Products'' (April 26, 2008); online at: 
http://www.arb.ca.gov/regact/2007/compwood07/fro-final.pdf. 
    \12\Table 1 of section 93120.2(a) of title 17, California Code of 
Regulations (July 28, 2009); online at http://www.arb.ca.gov/regact/
2007/compwood07/fro-final.pdf. 
---------------------------------------------------------------------------
    This bill uses currently available technology-based 
emissions control measures to reduce formaldehyde emissions 
from composite wood products. The bill is intended to promote 
commerce through the use of these technology-based standards 
for formaldehyde emissions from composite wood products.

                      Section-by-Section Analysis


Section 1. Short title

            Summary
    This section provides that the Act may be cited as ``The 
Formaldehyde Standards for Composite Wood Products Act.''

Section 2. Formaldehyde standards for composite wood products

Subsection (a)--Amendment

            Summary
    This section amends the Toxic Substances Control Act (15 
U.S.C. 2601, et seq.), by adding a new section 601, which 
establishes national emissions standards for formaldehyde in 
domestic and imported composite wood products, as follows:
            Sec. 601. Formaldehyde Standards
            Subsection (a)--Definitions
    This subsection defines the following terms:
    (1) ``Finished Good'' is generally any product (other than 
a panel) containing hardwood plywood, particle board, or medium 
density plywood. Excluded from this definition are any 
component part or other part used in the assembly of a finished 
good, or any finished good previously sold or supplied to an 
individual or entity that purchased or acquired it in good 
faith for purposes other than resale, such as antique or 
secondhand furniture.
    (2) ``Hardboard'' is a composite panel composed of 
cellulosic fibers manufactured with a wet process using no 
resins or resins that have no added formaldehyde.
    (3) ``Hardwood Plywood' is generally a hardwood or 
decorative panel that is (i) intended for interior use; and 
(ii) composed of (as determined under the standard numbered 
ANSI/HPVA HP-1-2004 (or a successor standard)) an assembly of 
layers or plies of veneer, joined by an adhesive with a lumber 
core, particleboard core, medium-density fiberboard core, 
hardboard core, or any other special core or special back 
material. Excluded from this definition are any military-
specified plywood, curved plywood, or any other product 
specified in two voluntary industry standards for structural 
plywood and structural panels.
    ``Laminated Product'' is a product in which a wood veneer 
is affixed to a particleboard platform, a medium-density 
fiberboard platform, or a veneer-core platform, and that is a 
component part used in the construction or assembly of a 
finished good, and produced by the manufacturer or fabricator 
of the finished good in which the product is incorporated. The 
Administrator of the EPA is required to conduct a rulemaking 
pursuant to subsection (d) that uses all relevant information 
from State authorities (including the California Air Resources 
Board), industry, and other available sources to determine, at 
the discretion of the Administrator, whether the definition of 
``hardwood plywood'' should exempt any ``laminated product.'' 
The Administrator may also modify the definition of ``laminated 
product,'' before including it in the regulations.
    (4) ``Medium-Density Fiberboard'' is a panel composed of 
cellulosic fibers made by dry forming and pressing a resinated 
fiber mat (as determined under the standard numbered ANSI 
A208.2-2009 (or a successor standard)).
    (5) ``No-Added Formaldehyde-Based Resin'' is generally a 
resin formulated with no added formaldehyde as part of the 
resin cross-linking structure that meets the performance 
standard contained in section 93120.3(c) of title 17, 
California Code of Regulations (as in effect on July 28, 2009). 
A ``no-added formaldehyde-based resin'' may include any such 
resin made from soy, polyvinyl acetate, or methylene 
diisocyanate.
    (6) ``Particleboard'' is generally 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 the standard numbered 
ANSI A208.1-2009 (or a successor standard)). Excluded from this 
definition is any product specified in the standard entitled 
`Voluntary Product Standard-Performance Standard for Wood-Based 
Structural-Use Panels' and numbered PS 2-04 (or a successor 
standard).
    (7) ``Ultra Low-Emitting Formaldehyde Resin'' is generally 
a resin formulated using a process the average formaldehyde 
emissions of which are consistently below the phase 2 emission 
standards contained in the airborne toxic control measure for 
composite wood products described in section 93120.3(d) of 
title 17, California Code of Regulations (as in effect on July 
28, 2009). An ``ultra low-emitting formaldehyde resin'' may 
include melamine-urea-formaldehyde resin, phenol formaldehyde 
resin, and resorcinol formaldehyde resin.
            Discussion
    As introduced, S. 1660 specifically included any 
``laminated product'' in the definition of ``hardwood 
plywood.'' The substitute amendment instead requires that EPA 
conduct a rulemaking to address the issue of whether laminated 
products should be included. The California Air Resources Board 
(CARB) is continuing to assess whether to regulate laminated 
products. As part of the rulemaking process, S. 1660 requires 
that EPA use all relevant information from State authorities 
(including CARB), industry, and other available sources to 
determine, at the discretion of the Administrator, whether the 
definition of ``hardwood plywood'' should exempt any 
``laminated product'' from having to comply with the bill's 
technology-based emissions control requirements. In addition, 
EPA is specifically given discretion to modify the definition 
of ``laminated product'' in the regulations.
    The legislation provides an exemption for qualifying 
``laminated products.'' These are component parts of finished 
goods on which wood veneers have been affixed. There is a 
further requirement that the component part must be produced by 
the manufacturer or fabricator of the finished good in which it 
is incorporated. It is the intent of this provision that 
entities that are a parent and wholly owned subsidiary or 
sister companies wholly owned by another entity would satisfy 
this requirement. For instance, if the laminated product were 
made by one company and then incorporated into a finished good 
by a sister company, both of which were wholly owned by a 
parent company, it would qualify for the exemption. This would 
also apply to second or further tier subsidiaries so long as 
there were wholly owned relationships through the chain. The 
committee also recognizes the need for EPA to consider options 
to help reduce the administrative costs of complying with new 
standards for suppliers of veneered hardwood plywood component 
pieces used to make finished goods such as kitchen cabinets and 
furniture.
    As introduced, S. 1660 specifically included ``manufactured 
housing'' and ``recreational vehicles'' in the definition of a 
``finished product.'' U.S. Department of Housing and Urban 
Development (HUD) regulations at 24 C.F.R. Part 3280 (49 Fed. 
Reg. 31996 (Aug. 9, 1984), promulgated under the National 
Manufactured Housing Construction and Safety Standards Act of 
1974 (42 U.S.C. 5401-5427), provide standards for formaldehyde 
emissions from plywood and particleboard materials installed in 
manufactured homes. In order to avoid overlapping regulations, 
the substitute amendment removed the inclusion of manufactured 
homes from the definition of a ``finished product,'' and 
instead requires that HUD update its regulation at 24 C.F.R. 
Sec. 3280.308, to ensure that the regulation reflects the 
standards established by section 601 of TSCA. Although the 
substitute amendment removed ``recreational vehicles'' from the 
definition of ``finished good,'' recreational vehicles are 
covered by the bill because they are specifically excepted from 
the exemption from the formaldehyde emission standard in 
section 601(c)(10) for composite wood products used inside new 
vehicles.
    The bill's treatment of ``No-Added Formaldehyde-Based 
Resin'' is an important aspect of the technology-based approach 
adopted by this bill. While the bill includes the best 
currently available technological controls for covered 
emissions, technological advances such as ``No-Added 
Formaldehyde-Based Resin'' may, in some circumstances, play a 
valuable role by reducing or eliminating the need for 
additional technology-based controls. The Committee expects 
that the EPA and market forces will provide a range of 
technology-based solutions to reduce or, in some cases, 
eliminate formaldehyde emissions.
            Subsection (b)--Requirement
            Summary
    This subsection provides that, except as provided in the 
applicable sell-through regulation promulgated pursuant to 
subsection (d), effective 180 days after the date of 
promulgation of regulations by EPA, the CARB ATCM standard for 
formaldehyde emissions from composite wood products, as in 
effect on July 28, 2009, shall apply to hardwood plywood, 
medium-density fiberboard, and particleboard sold, supplied, 
offered for sale, or manufactured in the United States. The 
formaldehyde emission standard shall apply regardless of 
whether an applicable hardwood plywood, medium-density 
fiberboard, or particleboard is in the form of an unfinished 
panel, or incorporated into a finished good.
            Discussion
    As introduced, S. 1660 would have made the formaldehyde 
emission standard for composite wood products effective within 
180 days of enactment. The substitute amendment provides that 
the standard will become effective 180 days after EPA 
promulgates the regulations required under subsection (d). This 
change in the effective date will allow sufficient time for 
industry to comply with the requirements and sufficient 
flexibility for EPA to promulgate and implement the 
regulations. This is intended to help industries that have a 
uniquely long period of time between the date of manufacture 
and the date of sale.
            Subsection (c)--Exemptions
            Summary
    This subsection provides exemptions from the formaldehyde 
emission standard for hardboard, structural plywood, structural 
panels, structural composite lumber, orient strand board, glue 
laminated lumber, prefabricated wood I-joists, finger-jointed 
lumber, wood packaging (including pallets, crates, spools, and 
dunnage), or composite wood products used inside new vehicles 
(as defined in section 430 of the California Vehicle Code) 
(excluding recreational vehicles), rail cars, boats, aerospace 
craft, or aircraft. Most of the products exempted in subsection 
(c) are defined by reference to applicable industry standards.
            Discussion
    This legislation covers three products--particleboard, 
medium density fiberboard (``MDF''), and hardwood plywood, both 
in their panel form and when incorporated into finished 
products. For clarity, the legislation specifically exempts 
certain other products such as softwood plywood, hardboard, 
oriented strand board and others. These products are distinct 
from the three covered products, but are identified and 
specifically exempted to avoid any confusion.
            Subsection (d)--Regulations
            Summary
    This subsection requires EPA to promulgate regulations by 
January 1, 2012, to implement the formaldehyde emission 
standard in a manner that ensures that compliance with this 
bill's technology-based emissions control measures is 
equivalent to compliance with the CARB ATCM standard. The 
regulations must include provisions relating to labeling, chain 
of custody requirements, sell-through provisions, ultra low-
emitting formaldehyde resins, no-added formaldehyde-based 
resins, finished goods, third-party testing and certification, 
auditing and reporting of third-party certifiers, 
recordkeeping, enforcement, and laminated products.
    Subsection (d) also requires that by July 1, 2012, EPA, in 
coordination with the U.S. Department of Homeland Security, 
Customs and Border Protection, and other appropriate Federal 
departments and agencies, revise regulations promulgated 
pursuant to section 13 of TSCA, relating to import regulations.
    Subsection (d) further provides that EPA may modify, by 
regulation, any reference to an industry standard contained in 
section 601 of TSCA if the standard is subsequently updated.
            Subsection (e)--Prohibited acts
            Summary
    This subsection provides that a violation of any 
requirement under Section 601 of TSCA, including regulation 
promulgated under subsection (d), constitutes a prohibited act 
under section 15 of TSCA.

Subsection (b)--Conforming amendment

    This subsection of S. 1660 amends the table of contents of 
TSCA to include section 601.

Section 3. Reports to Congress

    This section requires EPA to provide a report to Congress 
by December 31, 2010, and annually thereafter through December 
31, 2014, describing the status of measures taken or planned to 
be carried out pursuant to section 601 of TSCA and the extent 
of industry compliance with the requirements of section 601.

Section 4. Modification of regulations

            Summary
    This section requires that, within 180 days of enactment, 
the U.S. Department of Housing and Urban Development (HUD) must 
update its regulation at 24 C.F.R. Sec. 3280.308, relating to 
formaldehyde emission standards for plywood and particleboard 
materials installed in manufactured homes, to ensure that the 
HUD regulation reflects the standards established pursuant to 
section 601 of TSCA.

                          Legislative History

    S. 1660 was introduced by Senators Klobuchar and Crapo on 
September 10, 2009. The bill was read twice and referred to the 
Senate Committee on Environment and Public Works. On December 
2, 2009, the Full Committee and Subcommittee on Superfund, 
Toxics and Environmental Health held a joint hearing entitled, 
``Oversight Hearing on the Federal Toxic Substances Control 
Act.'' At the hearing, Senator Klobuchar posed questions to EPA 
Administrator Jackson about federal regulations for 
formaldehyde in composite wood products. On December 10, 2009, 
the full Committee on Environment and Public Works considered 
S. 1660 and ordered favorably reported a substitute amendment.

                                Hearings

    The Committee did not hold a legislative hearing on S. 
1660.

                             Rollcall Votes

    There were no rollcall votes. The Committee on Environment 
and Public Works met to consider S. 1660 on December 10, 2009. 
A quorum of the Committee being present, S. 1660 was reported 
favorably as amended by a voice vote.

                      Regulatory Impact Statement

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee states that there 
are not expected to be significant costs to private entities 
under this legislation.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the Committee finds that S. 1660 would 
impose no Federal intergovernmental unfunded mandates on State, 
local, or tribal governments.

               Congressional Budget Office Cost Estimate

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:


                                                   January 7, 2010.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1660, the 
Formaldehyde Standards for Composite Wood Products Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1660--Formaldehyde Standards for Composite Wood Products Act

    S. 1660 would apply the California formaldehyde emission 
standard to hardwood plywood, medium-density fiberboard, and 
particle board that is sold, supplied, offered for sale, or 
manufactured in the United States. The bill would prescribe 
several exemptions. Under this legislation, the Environmental 
Protection Agency (EPA) would be required to issue regulations 
to implement that standard no later than January 1, 2012, and 
revise regulations relating to the importation of products 
covered under this legislation no later than July 1, 2011. EPA 
also would be required to provide annual reports to the 
Congress through 2014 on the status of implementing the 
standard. Finally, within 180 days of enactment, the Secretary 
of Housing and Urban Development would be required to update 
regulations relating to formaldehyde emission levels of 
products installed in manufactured homes.
    CBO estimates that implementing this legislation would cost 
about $3 million over the 2010-2011 period, assuming 
availability of appropriated funds, to issue regulations and 
prepare reports. Enacting the bill would not affect direct 
spending or revenues.
    S. 1660 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments.
    Requiring manufacturers, sellers, suppliers and importers 
of composite wood products to meet a national standard for 
formaldehyde emissions would constitute a private-sector 
mandate as defined in UMRA. Because of uncertainty about the 
extent to which entities would already be in compliance with 
the requirements in the bill, CBO cannot determine whether the 
cost of the mandate would exceed the annual threshold 
established in UMRA for private-sector mandates ($141 million 
in 2010, adjusted annually for inflation).
    The national standard would be based on the standard 
established by the California Air Resources Board (CARB) which 
is currently being phased in by the state of California. CARB 
estimated that the cost of complying with the state standard 
would exceed $100 million. According to information from the 
industry, the cost to comply with a national standard would 
significantly exceed the cost of the CARB standard. At the same 
time, industry sources indicate that a significant portion of 
the industry nationwide already complies with the standard for 
formaldehyde emissions established by CARB.
    The CBO staff contacts for this estimate are Susanne S. 
Mehlman (for Federal costs) and Amy Petz (for the impact on the 
private-sector).
    This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

           *       *       *       *       *       *       *


TOXIC SUBSTANCES CONTROL ACT

           *       *       *       *       *       *       *



               TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

SEC. 501. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.

  (a) In General.--The Administrator, in consultation with the 
Secretary of Education, may provide grants to States for use 
in--
          (1)* * *

           *       *       *       *       *       *       *


      TITLE VI--FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS

SEC. 601. FORMALDEHYDE STANDARDS.

  (a) Definitions.--In this section:
          (1) Finished good.--
                  (A) In general.--The term `finished good' 
                means any good or product (other than a panel) 
                containing--
                          (i) hardwood plywood;
                          (ii) particleboard; or
                          (iii) medium-density fiberboard.
                  (B) Inclusions.--The term `finished good' 
                includes--
                          (i) manufactured housing; and
                          (ii) recreational vehicles.
                  (C) Exclusions.--The term `finished good' 
                does not include--
                          (i) any component part or other part 
                        used in the assembly of a finished 
                        good; or
                          (ii) 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, 
                        such as--
                                  (I) an antique; or
                                  (II) secondhand furniture.
          (2) Hardwood plywood.--
                  (A) In general.--The term `hardwood plywood' 
                means a hardwood or decorative panel that is--
                          (i) intended for interior use; and
                          (ii) composed of (as determined under 
                        the standard numbered ANSI/HPVA HP-1-
                        2004 (or a successor standard)) an 
                        assembly of layers or plies of veneer, 
                        joined by an adhesive with--
                                  (I) lumber core;
                                  (II) particleboard core;
                                  (III) medium-density 
                                fiberboard core;
                                  (IV) hardboard core; or
                                  (V) any other special core or 
                                special back material.
                  (B) Exclusions.--The term `hardwood plywood' 
                does not include--
                          (i) a laminated product;
                          (ii) military-specified plywood;
                          (iii) curved plywood; or
                          (iv) any other product specified in--
                                  (I) the standard entitled 
                                `Voluntary Product Standard-
                                Structural Plywood' and 
                                numbered PS 1-07 (or a 
                                successor standard); or
                                  (II) the standard entitled 
                                `Voluntary Product Standard-
                                Performance Standard for Wood-
                                Based Structural-Use Panels' 
                                and numbered PS 2-04 (or a 
                                successor standard).
          (3) Laminated product.--The term `laminated product' 
        means a product--
                  (A) in which a wood veneer is affixed to--
                          (i) a particleboard platform;
                          (ii) a medium-density fiberboard 
                        platform; or
                          (iii) a veneer-core platform; and
                  (B) that is--
                          (i) a component part;
                          (ii) used in the construction or 
                        assembly of a finished good; and
                          (iii) produced by the manufacturer or 
                        fabricator of the finished good in 
                        which the product is incorporated.
          (4) Medium-density fiberboard.--The term `medium-
        density fiberboard' means a panel composed of 
        cellulosic fibers made by dry forming and pressing a 
        resinated fiber mat (as determined under the standard 
        numbered ANSI A208.2-2009 (or a successor standard)).
          (5) No-added formaldehyde-based resin.--
                  (A) In general.--The term `no-added 
                formaldehyde-based resin' means a resin 
                formulated with no added formaldehyde as part 
                of the resin cross-linking structure that meets 
                the performance standard contained in section 
                93120.3(c) of title 17, California Code of 
                Regulations (as in effect on July 28, 2009).
                  (B) Inclusions.--The term `no-added 
                formaldehyde-based resin' may include any resin 
                made from--
                          (i) soy;
                          (ii) polyvinyl acetate; or
                          (iii) methylene diisocyanate.
          (6) Particleboard.--
                  (A) In general.--The term `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 the standard numbered ANSI 
                A208.1-2009 (or a successor standard)).
                  (B) Exclusions.--The term `particleboard' 
                does not include any product specified in the 
                standard entitled `Voluntary Product Standard-
                Performance Standard for Wood-Based Structural-
                Use Panels' and numbered PS 2-04 (or a 
                successor standard).
          (7) Ultra low-emitting formaldehyde resin.--
                  (A) In general.--The term `ultra low-emitting 
                formaldehyde resin' means a resin formulated 
                using a process the average formaldehyde 
                emissions of which are consistently below the 
                phase 2 emission standards contained in the 
                airborne toxic control measure for composite 
                wood products described in section 93120.3(d) 
                of title 17, California Code of Regulations (as 
                in effect on July 28, 2009).
                  (B) Inclusions.--The term `ultra low-emitting 
                formaldehyde resin' may include--
                          (i) melamine-urea-formaldehyde resin;
                          (ii) phenol formaldehyde resin; and
                          (iii) resorcinol formaldehyde resin.
  (b) Requirement.--
          (1) In general.--Except as provided in subsection 
        (d), effective beginning on the date that is 180 days 
        after the date of enactment of this section, the 
        formaldehyde emission standard contained in table 1 of 
        section 93120.2(a) of title 17, California Code of 
        Regulations (relating to an airborne toxic control 
        measure to reduce formaldehyde emissions from composite 
        wood products) (as in effect on July 28, 2009), shall 
        apply to hardwood plywood, medium-density fiberboard, 
        and particleboard sold, supplied, offered for sale, or 
        manufactured in the United States.
          (2) Applicability.--The formaldehyde emission 
        standard referred to in paragraph (1) shall apply 
        regardless of whether an applicable hardwood plywood, 
        medium-density fiberboard, or particleboard is--
                  (A) in the form of an unfinished panel; or
                  (B) incorporated into a finished good.
  (c) Exemptions.--The formaldehyde emission standard referred 
to in subsection (b)(1) shall not apply to--
          (1) hardboard;
          (2) structural plywood, as specified in the standard 
        entitled `Voluntary Product Standard-Structural 
        Plywood' and numbered PS 1-07 (or a successor 
        standard);
          (3) structural panels, as specified in the standard 
        entitled `Voluntary Product Standard-Performance 
        Standard for Wood-Based Structural-Use Panels' and 
        numbered PS 2-04 (or a successor standard);
          (4) structural composite lumber, as specified in the 
        standard entitled `Standard Specification for 
        Evaluation of Structural Composite Lumber Products' and 
        numbered ASTM D 5456-06 (or a successor standard);
          (5) oriented strand board;
          (6) glued laminated lumber, as specified in the 
        standard entitled `Structural Glued Laminated Timber' 
        and numbered ANSI A190.1-2002 (or a successor 
        standard);
          (7) prefabricated wood I-joists, as specified in the 
        standard entitled `Standard Specification for 
        Establishing and Monitoring Structural Capacities of 
        Prefabricated Wood I-Joists' and numbered ASTM D 5055-
        05 (or a successor standard);
          (8) finger-jointed lumber;
          (9) wood packaging (including pallets, crates, 
        spools, and dunnage); or
          (10) composite wood products used inside new vehicles 
        (as defined in section 430 of the California Vehicle 
        Code) (excluding recreational vehicles), rail cars, 
        boats, aerospace craft, or aircraft.
  (d) Regulations.--
          (1) In general.--Not later than January 1, 2011, the 
        Administrator shall promulgate regulations to implement 
        the formaldehyde emission standard required under 
        subsection (b) in a manner that ensures that compliance 
        with the standard is equivalent to compliance with the 
        standard contained in table 1 of section 93120.2(a) of 
        title 17, California Code of Regulations (as in effect 
        on July 28, 2009).
          (2) Inclusions.--The regulations promulgated pursuant 
        to paragraph (1) shall include provisions relating to--
                  (A) labeling;
                  (B) chain of custody requirements;
                  (C) sell-through provisions;
                  (D) ultra low-emitting formaldehyde resins;
                  (E) no-added formaldehyde-based resins;
                  (F) finished goods;
                  (G) third-party testing and certification;
                  (H) auditing and reporting of third-party 
                certifiers;
                  (I) recordkeeping; and
                  (J) enforcement.
          (3) Import regulations.--Not later than July 1, 2011, 
        the Administrator, in coordination with the 
        Commissioner of Customs and Border Protection and other 
        appropriate Federal departments and agencies, shall 
        revise regulations promulgated pursuant to section 13 
        as the Administrator determines to be necessary to 
        ensure compliance with this section.
          (4) Modification of standards.--The Administrator may 
        modify, by regulation, any reference to an industry 
        standard contained in this subsection if the standard 
        is subsequently updated.
  (e) Prohibited Acts.--An individual or entity that violates 
any requirement under this section (including any regulation 
promulgated pursuant to subsection (d)) shall be considered to 
have committed a prohibited act under section 15.

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                            TABLE OF CONTENTS

                  TITLE I--CONTROL OF TOXIC SUBSTANCES

Sec. 1. Short title and table of contents.
Sec. 2. Findings, policy and intent.
Sec. 3. Definitions.
Sec. 4. Testing of chemical substances and mixtures.
Sec. 5. Manufacturing and processing notices.
Sec. 6. Regulation of hazardous chemical substances and mixtures.
Sec. 7. Imminent hazards.
Sec. 8. Reporting and retention of information.
Sec. 9. Relationship to other Federal laws.
Sec. 10. Research, development, collection, dissemination, and 
          utilization of data.
Sec. 11. Inspections and subpoenas.
Sec. 12. Exports.
Sec. 13. Entry into customs territory of the United States.
Sec. 14. Disclosure of data.
Sec. 15. Prohibited acts.
Sec. 16. Penalties.
Sec. 17. Specific enforcement and seizure.
Sec. 18. Preemption.
Sec. 19. Judicial review.
Sec. 20. Citizens' civil actions.
Sec. 21. Citizens' petitions.
Sec. 22. National defense waiver.
Sec. 23. Employee protection.
Sec. 24. Employment effects.
Sec. 25. Studies.
Sec. 26. Administration of the Act.
Sec. 27. Development and evaluation of test methods.
Sec. 28. State programs.
Sec. 29. Authorization for appropriations.
Sec. 30. Annual report.
Sec. 31. Effective date.

              TITLE II--ASBESTOS HAZARD EMERGENCY RESPONSE

Sec. 201. Congressional findings and purpose.
Sec. 202. Definitions.
Sec. 203. EPA Regulations.
Sec. 204. Requirements if EPA fails to promulgate regulations.
Sec. 205. Submission to State Governor.
Sec. 206. Contractor and laboratory accreditation.
Sec. 207. Enforcement.
Sec. 208. Emergency authority.
Sec. 209. State and Federal law.
Sec. 210. Asbestos contractors and local educational agencies.
Sec. 211. Public protection.
Sec. 212. Asbestos ombudsman.
Sec. 213. EPA study of asbestos-containing material in public buildings.
Sec. 214. Transition rules.
Sec. 215. Worker protection.
Sec. 216. Training grants.

                    TITLE III--INDOOR RADON ABATEMENT

Sec. 301. National goal.
Sec. 302. Definitions.
Sec. 303. EPA Citizen's guide.
Sec. 304. Model construction standards and techniques.
Sec. 305. Technical assistance to State for radon programs.
Sec. 306. Grant assistance to States for radon programs.
Sec. 307. Radon in schools.
Sec. 308. Regional radon training centers.
Sec. 309. Study of radon in Federal buildings.
Sec. 310. Regulations.
Sec. 311. Additional authorizations.

                    TITLE IV--LEAD EXPOSURE REDUCTION

Sec. 401. Definitions.
Sec. 402. Lead-based paint activities training and certification.
Sec. 403. Identification of dangerous levels of lead.
Sec. 404. Authorized State programs.
Sec. 405. Lead abatement and measurement.
Sec. 406. Lead hazard information pamphlet.
Sec. 407. Regulations.
Sec. 408. Control of lead-based paint hazards at Federal facilities.
Sec. 409. Prohibited acts.
Sec. 410. Relationship to other Federal law.
Sec. 411. General provisions relating to administrative proceedings.
Sec. 412. Authorization of appropriations.

                TITLE V--HEALTHY HIGH-PERFORMANCE SCHOOLS

Sec. 501. Grants for healthy school environments.
Sec. 502. Model guidelines for siting of school facilities.
Sec. 503. Public outreach.
Sec. 504. Environmental health program.
Sec. 505. Authorization of appropriations.

      TITLE VI--FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS

Sec. 601. Formaldehyde standards.
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