Comment Log Display

THE LAW OFFICES 
OF
JOHN E. CHAFFIN AND ASSOCIATES
449 SOUTH ESCONDIDO BLVD.
ESCONDIDO, CA 92025
(760)233-3887

April 24, 2007

Dr. Robert Sawyer, Chairman
California Air Resources Board
1001 “I” Street
P. O. Box 2815
Sacramento, CA  95812

Re:  Airborne Toxic Control Measure to Reduce Formaldehyde
Emissions from Composite Wood Products; Release Date: March 9,
2007

Dear Dr. Sawyer,

I appreciate the opportunity to offer comments with regard to the
March 9, 2007, draft of the Airborne Toxic Control Measure to
Reduce Formaldehyde Emissions from Composite Wood Products
(ATCM).

I am a resident of California, represent importers of hardwood
plywood, and an associate member of the International Wood
Products Association (IWPA). I have been involved in the business
of importing hardwood plywood for 17 years. I have reviewed the
subject regulations, staff report and appendices, and have
discussed this matter with several clients in the business. I
respectfully request the board consider the comments provided
herein and delay any action on adopting the regulation at this
time.

1.	The staff report does not adequately address the impact of this
regulation on importers and overseas mill suppliers. Based on data
from the U.S. Department of Agriculture, foreign importers account
for 60% of the hardwood plywood (HWPW) consumed in the United
States each year based on 2002. The staff report of 225 pages
discusses the impact on importers for less than one page at page
210.

2.	IWPA reached out in a comprehensive manner for feedback from
overseas producers in many countries.  The resounding message
heard was that overseas mills are not prepared to meet the
regulations Phase 1 or Phase 2 and will need substantial time to
develop the infrastructure to do so. The majority of the mills
confirmed the formaldehyde levels required could be met but the
third party certification would be a major impediment to meeting
all of the regulations. More time is needed than set out in the
regulations to comply.

3.	There are inadequate third party certifiers available for
overseas mills. In most instances, mills have their own
laboratories to confirm glue formulations or will rely on the
laboratory facilities of the glue supplier. Further, large chamber
testing facilities are extremely rare in other plywood producing
countries such as Malaysia and Indonesia.

4.	The chain of custody documentation requirements is unworkable
for the imported plywood industry. Imported plywood changes hands
several times in the supply chain. Further, the identity of an
importer’s supplier is considered proprietary information. A
significant percentage of the imported plywood is sold to
wholesalers and distributors who consider the identity of their
importer to be proprietary.

The Board should postpone action on these regulations until there
has been further adequate study and reporting of the impacts on
importers and overseas suppliers, the time provided for
implementation by overseas producers has been increased to allow
for the development of third party certifiers or this requirement
eliminated for overseas producers, and changes made to the chain
of custody documentation to take into the unique business model
involved in importing HWPW.

If the Board proceeds to adopt these regulations as proposed,
there will be significant, adverse, unintended consequences. These
regulations represent an unauthorized, non-tariff trade barrier
with regard to foreign suppliers and importers. 

The regulations purport to reduce formaldehyde emissions by about
500 tons per year for the entire state of California. Based on the
data in the staff report, this is a reduction of about 2.5%.
However, the inaccuracy of the measurements of the level of
formaldehyde in ambient air is much greater than + or – 2.5%. In
other words, this regulation will result in adverse impacts on
business and consumers and the possible benefit will not be
measureable.

With all due respect, I urge the Board to delay action until the
full and real impact of this regulation can be determined.

I would welcome the opportunity to discuss this matter and can be
reached at (760) 233-3887 or via e-mail at johnc@chaffin-law.com.

Sincerely,


John E. Chaffin
Attorney at Law 

P. S. I will be at the hearing and would like to be placed on the
list of speakers.