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Clearing the Air

California’s regulatory arm is reaching across the Pacific to force change in Asian furniture factories through new air-quality rules that are focused on formaldehyde. At the same time, retailers in California will be the focus of those charged with

November 2008 By Jo Fleischer
To hear furniture manufacturers describe it, California’s stringent new formaldehyde standards are the most difficult regulatory challenge for Asian furniture producers in the modern era.

While no one is arguing against the regulation’s public health goals, furniture makers say the effective date—Jan. 1, 2009—hasn’t allowed enough time for composite wood makers in Asia, in particular, to set up the testing labs—including on-site labs at the factories—that are required by California regulators.

In short, officials say, California’s regulatory arm is reaching across the Pacific to require enormous changes by furniture factories in Asia, and around the globe, to meet what the state’s Air Resources Board calls the “Airborne Toxic Control Measure,” or ATCM in industry shorthand. The rules are aimed at answering concerns about the health effects of formaldehyde emitted thorugh composite wood, which is thought to cause cancer and contribute to other illnesses.

At the same time, the ATCM is also changing the way furniture is made for retailers in our nation’s 49 other states, since most observers say it’s unlikely, in the long term, that wood providers will move to produce non-compliant wood for furniture stores outside California.

RETAILERS UNPREPARED Many manufacturers and a California-based retailer organization worry that California’s furniture stores are unprepared for the state’s efforts to curtail formaldehyde with an enforcement strategy that will be initiated inside furniture stores and could have store owners facing severe penalties along with their suppliers.

“I think a lot of the smaller retailers—as much as we’re telling them about this—aren’t realizing what they’re going to have to do” to comply, said Sharron Bradley, executive director of the Western Home Furnishings Association.

The scope of California’s regulatory reach is enormous because ATCM rules don’t just apply to composite board or furniture. They apply to any composite wood in any product offered for sale in the state—including everything from upholstery frames to pencil boxes, lamp bases and picture frames. Penalties are stiff, and a single violation can lead to retroactive fines for furniture a store sold before the initial non-complying item was found by California enforcement agents.

There are three important dates to remember: The California Air Resources Board’s (CARB) formaldehyde regulations take effect Jan. 1, 2009. Manufacturers of composite woods like plywood, particle board and MDF, including those in Asia, have a 90-day “sell-through” period, meaning they’ll be able to draw down inventory until April 1, 2009. Furniture makers have an 18-month sell-through period, setting a milestone date—or full compliance date—of July 1, 2010. “By July 1, 2010, all of a (furniture factory’s) inventory and all of their finished goods will be manufactured using CARB-compliant wood products,” said Bill Perdue, the American Home Furnishings Alliance’s vice president for environmental affairs.
 

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