[Federal Register Volume 82, Number 99 (Wednesday, May 24, 2017)]
[Rules and Regulations]
[Pages 23735-23739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10548]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 770

[EPA-HQ-OPPT-2017-0244; FRL-9962-86]
RIN 2070-AK35


Compliance Date Extension; Formaldehyde Emission Standards for 
Composite Wood Products

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on a revision to the 
formaldehyde emission standards for composite wood products final rule, 
published in the Federal Register on December 12, 2016. EPA is 
publishing this direct final action to extend the Toxic Substances 
Control Act (TSCA) Title VI final rule compliance dates including: 
Extending the December 12, 2017 date for emission standards, 
recordkeeping, and labeling provisions until March 22, 2018; extending 
the December 12, 2018 date for import certification provisions until 
March 22, 2019; and extending the December 12, 2023 date for provisions 
applicable to producers of laminated products until March 22, 2024. 
Additionally, this direct final action will extend the transitional 
period during which the California Air Resources Board (CARB) Third 
Party Certifiers (TPC) may certify composite wood products under TSCA 
Title VI without an accreditation issued by an EPA TSCA Title VI 
Accreditation Body so long as the TPC remains approved by CARB, is 
recognized by EPA, and complies with all aspects of the December 12, 
2016 final rule. Extension of these compliance dates and the 
transitional period for CARB TPCs adds regulatory flexibility for 
regulated entities, reduces compliance burdens, and helps to prevent 
disruptions to supply chains.

DATES: This final rule is effective on July 10, 2017 without further 
notice, unless EPA receives adverse comment by June 8, 2017. If EPA 
receives adverse comment, the Agency will publish a timely withdrawal 
in the Federal Register informing the public that this rule will not 
take effect.

ADDRESSES: The docket for this action, identified by docket 
identification (ID) number EPA-HQ-OPPT-2017-0244, is 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

[[Page 23736]]

Prevention and Toxics, Environmental Protection Agency, 1200 
Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number: 
(202) 564-6450; email address: [email protected].
    For general information contact: The TSCA-Hotline, ABVI-Goodwill, 
422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 
554-1404; email address: [email protected].

SUPPLEMENTARY INFORMATION:

I. Does this action apply to me?

    You may be affected by this direct final rule if you manufacture 
(including import), sell, supply, offer for sale, test, or work with 
the certification of 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.

II. Background

A. What action is the Agency taking?

    EPA shares the concerns of industry stakeholders regarding the time 
needed to comply with the provisions of the formaldehyde emission 
standards for composite wood products final rule (89 FR 89674), 
promulgated on December 12, 2016, and agrees that regulated entities 
should have at least the same amount of time to comply as initially 
allotted in the final rule. Therefore, EPA is extending the compliance 
dates for the December 12, 2016 final rule including: Extending the 
December 12, 2017 date for emission standards, recordkeeping, and 
labeling provisions, until March 22, 2018; extending the December 12, 
2018 date for import certification provisions until March 22, 2019; and 
extending the December 12, 2023 date for provisions applicable to 
producers of laminated products until March 22, 2024. Additionally, 
this direct final action will extend the CARB TPC transitional period 
under Sec.  770.7(d), which is currently set to end December 12, 2018, 
until March 22, 2019. EPA believes this action is necessary to provide 
adequate time, as explained in the December 12, 2016 final rule, for 
regulated entities to proceed with establishing business relationships 
with TPCs in order to certify composite wood products for use by 
downstream entities and prevent substantial disruption to the supply 
chain.
    In addition, to clarify EPA's original intent regarding the 
compliance dates referenced in the December 12, 2016 final rule, and to 
better align with the final rule's preamble discussion, the Agency 
amended the text preceding the compliance dates from ``after'' to 
``beginning.'' EPA intends regulated entities to begin complying with 
the referenced rule requirements as of the dates listed in the final 
rule.
    EPA is also amending subparagraph Sec.  770.15(e) to clarify that 
TPCs receive recognition after they apply to EPA, not after the 
conclusion of the transitional period as the codified text currently 
reads. EPA considers this an editorial change, and does not believe 
this is a substantive amendment to the codified text.
    1. Direct Final Rule. EPA is publishing this direct final rule to 
allow regulated stakeholders the same amount of time to comply with the 
provisions of the formaldehyde emission standards for composite wood 
products final rule (89 FR 89674), promulgated on December 12, 2016, as 
initially allotted in the final rule. EPA received requests from the 
composite wood industry and support from other stakeholders requesting 
the extension of the compliance dates. These requests came after EPA 
published a delay of the effective date from February 10, 2017 until 
March 21, 2017, in the Federal Register notice on January 26, 2017, 
``Delay of Effective Date for 30 Final Regulations Published by EPA 
between October 28, 2016 and January 17, 2017'' (82 FR 8499). The 
effective date was further delayed until May 22, 2017, in the Federal 
Register notice on March 20, 2017, ``Further Delay of Effective Dates 
for Five Final Regulations Published by EPA between December 12, 2016 
and January 17, 2017'' (82 FR 14324). EPA believes the extension of the 
compliance dates and the transitional period will provide panel 
producers and TPCs with the intended time period to establish their TPC 
programs and ensure there is no interruption of the supply chain of 
certified composite wood products to downstream entities (e.g., 
fabricators, importers, distributors, and retailers).
    2. Proposed Rule. EPA believes that this action is non-
controversial and does not expect to receive any adverse comments. 
However, in addition to this Direct Final Rule, elsewhere in this issue 
of the Federal Register, EPA is promulgating the action as a Notice of 
Proposed Rulemaking. If EPA receives no adverse comment, the Agency 
will not take further action on the proposed rule and the direct final 
rule will become effective as provided in this action. If EPA receives 
relevant adverse comment, the Agency will publish a timely withdrawal 
in the Federal Register informing the public that this direct final 
action will not take effect. EPA would then address all adverse public 
comments in a response to comments document in a subsequent final rule, 
based on the proposed rule.

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

    These regulations are established under authority of Section 601 of 
TSCA, 15 U.S.C. 2697.

[[Page 23737]]

III. 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 not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review under Executive Orders 12866 (58 FR 51735, October 4, 1993) 
and 13563 (76 FR 3821, January 21, 2011).

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the PRA, 44 U.S.C. 3501 et seq., because it does not create any 
new reporting or recordkeeping obligations. OMB has previously approved 
the information collection activities contained in the existing 
regulations and has assigned OMB control number 2070-0185.

C. Regulatory Flexibility Act (RFA)

    The Agency certifies that this action will not have a significant 
economic impact on a substantial number of small entities under the 
RFA, 5 U.S.C. 601 et seq. In making this determination, the impact of 
concern is any significant adverse economic impact on small entities. 
An agency may certify that a rule will not have a significant economic 
impact on a substantial number of small entities if the rule relieves 
regulatory burden, has no net burden or otherwise has a positive 
economic effect on the small entities subject to the rule. This rule 
extends, in response to two delays of the rule effective date, the 
compliance dates and transitional period for CARB TPCs to reflect the 
Agency's intended compliance periods post-effective date. This will 
reduce the burden on TPCs, panel producers, fabricators, importers, 
distributors, and retailers, because shortening of the compliance 
period by even a few months makes it more difficult for some of them to 
establish business relationships, certify product, and distribute 
certified product into commerce to downstream entities before the 
December 12, 2017 compliance date. EPA therefore concludes that this 
action will relieve or have no net regulatory burden for directly 
regulated small entities.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The action imposes no enforceable duty on any state, 
local or tribal governments or the private sector.

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). This final rule 
will not impose substantial direct compliance costs on Indian tribal 
governments. 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 not subject to Executive Order 13045 (62 FR 19885, 
April 23, 1997) because it does not concern an environmental health 
risk or safety risk. This action is not subject to Executive Order 
13045 because it is not economically significant as defined in 
Executive Order 12866, and because EPA does not believe the 
environmental health or safety risks addressed by this action present a 
disproportionate risk to children. As addressed in Unit II.A., this 
action would not materially alter the final rule as published, and will 
allow regulated entities the intended time to establish their supply-
chain and certification programs under the final rule, post effective 
date.

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

    This action 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 a significant adverse effect on the supply, distribution 
or use of energy.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards that would 
require the consideration of voluntary consensus standards pursuant to 
NTTAA section 12(d), 15 U.S.C. 272 note.

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). As addressed in Unit II.A., this 
action would not materially alter the final rule as published, and will 
allow regulated entities the intended time to establish their supply-
chain and certification programs under the final rule, post effective 
date.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, 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 not 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: May 17, 2017,
Louise P. Wise,
Acting Assistant Administrator, Office of Chemical Safety and Pollution 
Prevention.

    For the reasons set out in the preamble, title 40, chapter I, of 
the Code of Federal Regulations is amended as follows:

PART 770--FORMALDEHYDE STANDARDS FOR COMPOSITE WOOD PRODUCTS

0
1. The authority citation for Part 770 continues to read as follows:

    Authority: 15 U.S.C. 2697.


0
2. Revise Sec.  770.2 to read as follows:


Sec.  770.2   Effective dates.

    (a) This part is effective as of May 22, 2017.
    (b) Laboratory and Product ABs that wish to accredit TPCs for TSCA 
Title VI purposes may apply to EPA beginning May 22, 2017 to become 
recognized.

[[Page 23738]]

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 May 22, 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 March 
22, 2019 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.  
[thinsp]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) Beginning March 22, 2018, 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) Beginning March 22, 2018, laminated product producers must 
comply with the requirements of this part that are applicable to 
fabricators.
    (2) Beginning March 22, 2024, producers of laminated products must 
comply with the requirements of this part that are applicable to 
hardwood plywood panel producers (in addition to the requirements of 
this part that are applicable to fabricators) except as provided at 
Sec.  [thinsp]770.4.
    (3) Beginning March 22, 2024, producers of laminated products that, 
as provided at Sec.  [thinsp]770.4, are exempt from the definition of 
``hardwood plywood'' must comply with the recordkeeping requirements in 
Sec.  [thinsp]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 March 22, 2018 may be sold, supplied, offered for sale, or used 
to fabricate component parts or finished goods at any time.

0
3. In Sec.  770.3 the term ``laminated product producer'' is revised to 
read as follows:


Sec.  770.3  Definitions.

* * * * *
    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, beginning March 22, 2024, laminated 
product producers are also hardwood plywood panel producers except as 
provided at Sec.  770.4.
* * * * *

0
4. In Sec.  770.7, paragraph (d)(1) introductory text is revised to 
read as follows:


Sec.  770.7  Third-party certification.

* * * * *
    (d) * * *
    (1) During transitional period. The transitional period is defined 
as the period beginning on December 12, 2016 and ending on March 22, 
2019. 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 March 22, 2019 as long as they:
* * * * *

0
5. In Sec.  770.10, paragraph (a) is revised to read as follows:


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) 
beginning March 22, 2018 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.
* * * * *

0
6. In Sec.  770.12, paragraph (a) is revised to read as follows:


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 beginning March 22, 2018.
* * * * *

0
7. In Sec.  770.15, paragraphs (a) and (e) are revised to read as 
follows:


Sec.  770.15   Composite wood product certification.

    (a) Beginning March 22, 2018, 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.
* * * * *
    (e) If a product is certified by a CARB-approved TPC that is also 
recognized by EPA, the product will also be considered certified under 
TSCA Title VI until March 22, 2019 after which the TPC needs to comply 
with all the requirements of this part as an EPA TSCA Title VI TPC 
under Section 770.7(d) in order for the product to remain certified.
* * * * *

0
8. In Sec.  770.30, paragraphs (b) introductory text, (c), and (d) are 
revised to read as follows:


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

* * * * *
    (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 March 22, 
2018 and by ensuring the following records are made available to EPA 
within 30 calendar days of request:
* * * * *
    (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 March 22, 2018.
* * * * *

[[Page 23739]]

    (d) Beginning March 22, 2019, 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.
* * * * *
[FR Doc. 2017-10548 Filed 5-23-17; 8:45 am]
BILLING CODE 6560-50-P