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Court Issues



                                                                                  Decision on


                                                                                  Formaldehyde



                                                                                  Rule







             After years of starts, stops and even litigation,       The Sierra Club filed suit against EPA, arguing
            the path forward on the Environmental Protection        that the extension was too long. NAHB joined
            Agency’s formaldehyde emissions rule is finally         with other trade associations to file a brief in the
            clear.                                                  case, urging the court to uphold the extension
             Today, an agreement on how the formaldehyde            and to consider the consequences the composite
            rule will be implemented was reached by EPA,            wood industries — along with the industries that
            the Sierra Club, and industry trade associations        rely on these products — would experience if EPA’s
            including NAHB. It was then approved by the U.S.        extension were removed.
            District Court for the Northern District of California.  NAHB Remodelers member Robert Criner
             NAHB had played a key role in clarifying the rule      prepared a statement explaining how removing
            in 2016, ensuring that remodelers were not treated      the extension would make it difficult for
            as “fabricators” and forced to comply with              remodelers to provide accurate production
            product testing and tracking requirements.              schedules for their trades or meet agreed-upon
             However, a number of NAHB members, such                deadlines and pricing contracts with their clients.
            as manufactured housing providers, are directly          “While I do not know the specific pathway
            regulated by the rule.                                  this disruption may take, I can describe what
             Moreover, all NAHB members would have been             would happen to my business if any of these
            impacted if the supply chain for cabinets, flooring     disruptions occur,” Criner wrote. “I use the prices
            and other composite wood products had been              for building materials that are available to me at
            disrupted. Any disruptions to the supply chain for      the time the contract is signed to calculate the
            these products would have increased prices and          fixed fee.”
            reduced availability.                                    Forcing producers to change their
             EPA’s formaldehyde rule originally gave the            manufacturing processes on such short
            composite wood industry until December 2017             notice would likely increase these prices, hurt
            to comply with the emissions, labeling and              his business and hurt his employees, he said.
            recordkeeping requirements. But the rule was            “Without a steady stream of income from
            delayed for five months because of the transition       customers whose projects are in various stages
            between presidential administrations. That delay        of completion, I cannot pay my employees, my
            prevented EPA from properly implementing the            trade contractors or myself. Multiple people
            rule, so it extended the deadline by one year to        could lose their jobs until compliant inventory
            December 2018.                                          becomes available,” he said.


       20                               APRIL 2018  |  GREATER SAN ANTONIO BUILDERS ASSOCIATION
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