Senate Committee Considers Formaldehyde Bill. Talks Trade

Just came back from a Senate Environment and Public Works Committee meeting and thought you'd be interested with my "inside the beltway" thoughts.

Most of the work in the House and Senate is done behind-the-scenes, by staffers and industry/ngo lobbyists that all share opinions in advance with elected officials on issues that are crucial to their constituencies. That is one reason why an association's government affairs programs is so critical, to establish relationships way in advance for when they are needed. IWPA staff worked this bill in advance of today’s meeting. We’ve been talking with bill sponsors and committee members to ensure our members’ interests were given due consideration. Most importantly – adequate sell thru time.

So, with the real work done in advance, the committee meeting is procedural or seemingly related to posturing for the press.

In today's case, there were only three substantive comments made on S.1660 (the bill that would establish a national standard on formaldehyde emissions related to composite wood products).

A Republican leader expressed his disappointment that no hearing has occurred on this piece of legislation, potentially limiting input and transparency.

The Democratic sponsor, Sen. Klobuchar, used her opening statement to make trade related comments that domestic wood products meet voluntary standards and imports do not, that this bill will level the playing field and eliminate the harmful products that are entering the U.S. from China, etc...

The only real health-related comment made regarding this bill came from Sen. Boxer, the EPW Committee Chair. She mentioned the bill helps move the industry toward the elimination of all formaldehyde in composite wood products.

While there is a lot of water to still run under the bridge on this issue, with final Senate passage and House action still unclear, a significant step forward occurred today. We very much support the ideals of this legislation. Of course, it would make it significantly easier for everyone to work together if the anti-import rhetoric could be toned down. In this industry we all know that imports meet the same voluntary standards as domestic products. In fact, imports are being used by U.S. producers as they manufacture products that meets these same voluntary standards, so statements to the contrary are certainly misinformed.

As an association, IWPA will continue to work with our elected leaders to assure that high-quality, imported wood products remain available to U.S. manufacturers, distributors and consumers.

Now, here is a quick summary of the bill's details. Full information and bill text to be posted soon at www.iwpawood.org

1) Sets federal standard at CARB emissions limits.

2) Significantly reduces "laminator" exemption (providing it only for companies that make finished goods). All other companies (e.g. custom plywood manufacturers, component manufacturers, etc...) would need to be third-party certified (even if buying certified plywood as their inputs).

3) Gives EPA broad discretionary authority to ultimately do what they want, including changing definitions and scope.

4) Effective date likely 2012 or 2013 with sell-through giving more time after.

We welcome your comments as do all the other trade associations that you support. Active industry input is crucial for all of us as we work to inform our elected leaders and assure this well-intentioned bill meets the objectives without unintentionally and needlessly harming industry.