Streamlining and Aligning Formaldehyde Emission Control Standards for Certain Wood Products in Manufactured Home Construction With Title VI of the Toxic Substance Control Act, 5562-5567 [2020-01474]

Download as PDF 5562 Federal Register / Vol. 85, No. 21 / Friday, January 31, 2020 / Rules and Regulations Paperwork Reduction Act of 1995 This action does not impose a new collection of information requirement under the Paperwork Reduction Act of 1995. 44 U.S.C. 3501–3521. This action would not impose recordkeeping or reporting requirements on State or local governments, individuals, businesses, or organizations. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. Congressional Review Act This rule is not a major rule as defined by the Congressional Review Act (CRA), 5 U.S.C. 804. This rule will not result in: An annual effect on the economy of $100,000,000 or more; a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of U.S.-based companies to compete with foreign-based companies in domestic and export markets. However, pursuant to the CRA, DEA has submitted a copy of this interim final rule to both Houses of Congress and to the Comptroller General. List of Subjects in 21 CFR Part 1308 Administrative practice and procedure, Drug traffic control, Reporting and recordkeeping requirements. For the reasons set out above, DEA amends 21 CFR part 1308 as follows: PART 1308—SCHEDULES OF CONTROLLED SUBSTANCES 1. The authority citation for 21 CFR part 1308 continues to read as follows: ■ Authority: 21 U.S.C. 811, 812, 871(b), unless otherwise noted. 2. Amend § 1308.15 by: a. Redesignating paragraph (e)(4) as (e)(5); ■ b. Adding new paragraph (e)(4). The addition reads as follows: ■ ■ § 1308.15 * Schedule V. * * (e) * * * * * (4) Lasmiditan [2,4,6-trifluoro-N-(6-(1-methylpiperidine-4-carbonyl)pyridine-2-yl-benzamide] ............................................................ * * * * * Dated: January 28, 2020. Uttam Dhillon, Acting Administrator. [FR Doc. 2020–01957 Filed 1–30–20; 8:45 am] BILLING CODE 4410–09–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 3280 and 3282 [Docket No. FR 6018–F–02] RIN 2502–AJ42 Streamlining and Aligning Formaldehyde Emission Control Standards for Certain Wood Products in Manufactured Home Construction With Title VI of the Toxic Substance Control Act Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Final rule. AGENCY: HUD is issuing a final rule to implement the Formaldehyde Standards for Composite Wood Products Act of 2010, which added Title VI to the Toxic Substances Control Act (TSCA). The purpose of TSCA Title VI is to reduce exposures to formaldehyde emissions from composite wood products, thereby resulting in benefits from avoided adverse health effects. In addition, HUD is removing certain aspects of the current manufactured housing formaldehyde standards requirements that are not addressed by TSCA. This final rule follows publication of a March 22, 2019, proposed rule and takes into consideration the public comments jbell on DSKJLSW7X2PROD with RULES SUMMARY: VerDate Sep<11>2014 15:45 Jan 30, 2020 Jkt 250001 received on the proposed rule. This final rule also incorporates by reference, ASTM D6007–14 and ASTM E1333–14, the current standard requirements for formaldehyde concentration and emissions rate air chamber testing. DATES: This final rule is effective March 2, 2020. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of March 2, 2020. FOR FURTHER INFORMATION CONTACT: Teresa B. Payne, Acting Administrator, Office of Manufactured Housing Programs, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; telephone 202– 402–5365 (this is not a toll-free number). Persons with hearing or speech impairments may access this number via TTY by calling the Federal Relay Service at 800–877–8389 (toll-free number). SUPPLEMENTARY INFORMATION: I. Background—HUD’s March 22, 2019 Proposed Rule The Formaldehyde Standards for Composite Wood Products Act of 2010, which added TSCA Title VI (Pub. L. 111–199, enacted on July 7, 2010) (‘‘Formaldehyde Act of 2010’’), established new formaldehyde emissions standards for all hardwood plywood, medium-density fiberboard, and particleboard, including when incorporated into finished goods, that are sold, supplied, offered for sale, or manufactured (including imported) in the United States. TSCA Title VI directs HUD to update its regulation addressing formaldehyde emission standards to ensure consistency with the standards in TSCA not later than 180 days after PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 2790 the Environmental Protection Agency (EPA) promulgates regulations. EPA’s final rule implementing the new requirements became effective May 22, 2017. See 81 FR 89674. On March 22, 2019, HUD published a proposed rule in the Federal Register, at 84 FR 10738, to streamline and align formaldehyde emission control standards requirements for certain wood products in manufactured homes with Title VI of the Toxic Substance Control Act. The rule proposed revising HUD’s current formaldehyde emission standards for composite wood products used in manufactured housing at 24 CFR parts 3280 and 3282 to ensure consistency with the requirements established by section 601 of TSCA and EPA requirements, including the scope of products tested and processes for testing. In addition, HUD proposed to remove certain aspects of HUD’s manufactured housing formaldehyde standards requirements that are not addressed by TSCA, including provisions for a health notice to be posted in every manufactured home, testing of panels treated after certification, and testing of certain plywood materials. Lastly, HUD’s proposed rule also added the EPA required provision for labeling finished goods by requiring labeling of each manufactured home as being ‘‘TSCA Title VI compliant’’ to the data plate of each manufactured home in 24 CFR 3280.5,1 as recommended by the 1 On October 25–27, 2016, HUD held a meeting with the Manufactured Housing Consensus Committee (MHCC). See 81 FR 66288. The Committee voted to accept a working draft of the proposed rule which cross-referenced EPA’s requirements in HUD’s regulations and removed the health hazard warning requirement in 24 CFR 3280.309. See Minutes MHCC Meeting October 25– E:\FR\FM\31JAR1.SGM 31JAR1 Federal Register / Vol. 85, No. 21 / Friday, January 31, 2020 / Rules and Regulations Manufactured Housing Consensus Committee.2 For additional information about HUD’s proposed rule, see 84 FR 10738. II. Changes and Clarifications Made in This Final Rule In response to public comments on the proposed rule, a discussion of which is presented in the following section of this preamble, this final rule incorporates the following changes described below and minor technical changes. A. Samples for Testing HUD’s new § 3280.406(c) incorporated the testing of composite wood product samples under 40 CFR 770.24. As drafted, the language of this provision was limited to samples not produced in the United States, but imported and transported across the country for testing. Recognizing that the provision was meant to permit samples to be sent for testing without automatically triggering a violation for both American producers as well as importers, HUD amends the language in the final rule to apply to all samples for testing. B. Quality Control Testing HUD’s new § 3280.407(b) incorporated the composite wood product quality control test methods from 40 CFR 770.20(d). The language in the proposed rule provided that panels being tested with an equivalence, correlation, or ‘‘alternative method’’ must be in compliance with the requirements of 40 CFR 770.20(d). However, a commenter noted that almost all testing is done with reference to a correlation value, regardless of the testing method. The term ‘‘alternative method’’ is eliminated from the final rule for clarity. C. Technical Changes jbell on DSKJLSW7X2PROD with RULES HUD amends for clarity the language on the data plate from ‘‘TSCA Title VI compliant’’ to compliant with Title VI, Toxic Substances Control Act. In addition, HUD makes minor changes to the language in § 3280.406 to clarify certification testing and quarterly testing. 27, 2016, https://portal.hud.gov/hudportal/ documents/huddoc?id=mhcc-oct2016-meet minsfinal.pdf. 2 The Manufactured Housing Improvement Act of 2000 (Title VI of Pub. L. 106–569) created the Manufactured MHCC to develop proposed revisions to the Federal manufactured home construction and safety standards. VerDate Sep<11>2014 15:45 Jan 30, 2020 Jkt 250001 III. Discussion of Public Comments Received on March 22, 2019, Proposed Rule The public comment period for the proposed rule closed on April 22, 2019. HUD received five public comments in response to the proposed rule. These comments were submitted by a private citizen, industry associations, and manufactured housing associations. Four commenters generally supported HUD’s proposed rule. One commenter supported the removal of the provisions that were inconsistent with TSCA, and another commenter noted that the streamlining will avoid the need for duplicative testing. Commenters were generally supportive of the proposed rule, but, as provided in the following section of this Preamble, they also recommended changes or clarifications, two of which are discussed above. Comments: Most commenters agreed that the removal of the health notice was appropriate and necessary. The commenters noted that requiring such a notice for manufactured homes, but not site-built homes is inconsistent and doing so created a stigma. One commenter wrote that the notice should not be removed because the change to ventilation standards may still have no effect on decreasing the risks derived from the formaldehyde emissions. HUD Response: HUD believes the significant decrease in formaldehyde emissions required by EPA’s rule and referenced by HUD’s rule combined with HUD’s whole house ventilation requirements mitigate issues identified in the health notice. Further, the substantial similarities in construction methods, materials, and ventilation features between manufactured and sitebuilt housing, without such a notice required for site-built housing, supports the action to eliminate the health notice in manufactured housing. Comments: One commenter suggested that HUD amend § 3280.406(c), which incorporates the testing of samples under 40 CFR 770.24. The commenter noted that HUD limited the sampling language to imported samples in the proposed rule, but the provision was drafted to permit samples to be sent for testing without automatically triggering a violation for both American producers as well as importers. HUD Response: HUD agrees and has made appropriate clarifications within the final language in § 3280.406(c). Comments: One commenter suggested HUD amend § 3280.407(b), which incorporates control testing under 40 CFR 770.20(d). The commenter noted that almost all quality control testing is done with reference to a correlation PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 5563 value, regardless of the test methodology. The commenter wrote that it is unclear what ‘‘alternative method’’ means in this context; ‘‘equivalence and correlation’’ must be determined in accordance with 40 CFR 770.20(d). HUD Response: HUD agrees and has made appropriate clarifications within the final language in § 3280.407(b). Comments: One commenter noted that the proposed rule restricts the merchantability of non-conforming material. Such restrictions on an end user may be unfairly burdensome for a homeowner trying to resell a home that was purchased in good faith and without knowledge of any defect. The commenter suggested that HUD adapt the EPA’s remedy of this problem by providing an exception for ‘‘any finished good that has previously been sold or supplied to an end user, an individual, or entity that purchased or acquired the finished good in good faith for purposes other than resale.’’ The commenter also recommended that HUD go further to protect an end user who acquired a manufactured home in good faith and is now selling it, but is either currently unaware or was only recently made aware that the home is not in compliance. HUD Response: HUD’s regulations are intended for the design and construction of new manufactured homes. HUD does not regulate resale transactions. However, latent defects in manufactured housing are addressable under the Manufactured Home Procedural and Enforcement Regulations. If a manufacturer becomes aware that it has systematically introduced a failure to conform into a manufactured home, it must conduct an investigation and take additional action (notification, correction, or both) as may be required under 24 CFR part 3232, subpart I. Regarding composite wood products, if a home manufacturer acquires knowledge that it has used non-conforming material, the home manufacturer remains responsible and may choose to work with the panel producer and/or supplier to address any required corrections approved by a State Administrative Agency or HUD as part of a Notification and Correction campaign. Comments: One commenter noted that EPA’s rule is discriminatory in its treatment of HUD manufactured housing as a ‘‘finished good’’ at 40 CFR 770.3, but not site-built homes. The commenter suggested that HUD reject this distinction because manufactured housing results in increased compliance costs that mostly fall on lower and E:\FR\FM\31JAR1.SGM 31JAR1 jbell on DSKJLSW7X2PROD with RULES 5564 Federal Register / Vol. 85, No. 21 / Friday, January 31, 2020 / Rules and Regulations moderate-income American families that reside in manufactured housing. HUD Response: HUD is absent authority to interpret or otherwise modify EPA’s rule. However, HUD is streamlining its formaldehyde emissions standards through this rulemaking to ensure home manufacturers are not subject to different regulatory compliance requirements of both EPA and HUD. HUD believes this will reduce regulatory burdens and as such minimize cost impacts to manufacturers and costs passed on to home purchasers. Comments: One commenter recommended that HUD repeal its regulations entirely to eliminate duplication of regulations. The commenter cited the fact that EPA standards are lower, the EPA rule addresses composite-wood products, and the EPA regulations include testing and certification prior to fabrication. The commenter also noted that manufactured homes have, for nearly 30 years, already achieved formaldehyde safety for consumers through compliance with existing HUD regulations that are less costly to meet than the TSCA standards, but nevertheless ensure the safety of manufactured home residents. HUD Response: HUD is completing this rulemaking in accordance with the Toxic Substances Control Act Title VI in order to streamline its formaldehyde emissions standards and eliminate differing standards. Through this rulemaking, HUD will ensure home manufacturers are not subject to different regulatory compliance requirements of multiple federal oversight agencies. HUD believes this will reduce regulatory burdens and as such minimize cost impacts to manufacturers and home purchasers. Comments: Two commenters recommended that HUD delay final rule implementation until EPA provides any clarifications as a result of its proposed rulemaking issued November 1, 2018, entitled ‘‘Technical Issues in the Formaldehyde Emission Standards for Composite Wood Products Regulation.’’ HUD Response: HUD is issuing a final rule that correlates with EPA’s final rule provisions, mostly by reference to EPA’s regulations. HUD will consider future rulemaking, as needed, pursuant to changes EPA may make in future rulemaking if those changes affect any specific provision promulgated by HUD. Comments: One commenter agreed that HUD should move the disclosure statement to the data plate, consistent with the other items on the data plate. Another commenter noted that space on the data plate is limited and suggested that HUD shorten the statement to either VerDate Sep<11>2014 15:45 Jan 30, 2020 Jkt 250001 ‘‘TSCA Title VI compliant’’ or ‘‘This home is TSCA Title VI compliant.’’ Another commenter suggested that HUD forego such a statement and reserve the space for future disclosures or technical information, given that only compliant homes receive a data plate. HUD Response: HUD believes that sufficient space is available within the data plate for the minimal compliance statement required by § 3280.5(i). Further, HUD has decided to change the text of the data plate statement by spelling out the Toxic Substance Control Act. IV. Incorporation by Reference This rule incorporates the following standard test methods for determining formaldehyde concentrations in air and emission rates from wood products, listed below. The standards are readily available electronically or in print and are relatively inexpensive (less than $60 a copy). Copies of these materials may be obtained from the American Society for Testing and Materials (ASTM), 100 Barr Harbor Drive, West Conshohocken, PA 19428, (610) 832–9500, fax number (610) 832–9555, website: http:// www.astm.org. • ASTM D0007–14 Standard Test Method for Determining Formaldehyde Concentrations in Air from Wood Products Using a Small-Scale Chamber (2014). This test method measures the formaldehyde concentrations in air from wood products under defined test conditions of temperature and relative humidity. Results obtained from this small-scale chamber test method are intended to be comparable to results obtained testing larger product samples by the large chamber test method for wood products, Test Method E1333. The results may be correlated to values obtained from ASTM Test Method E1333. ASTM D60007–14 is available for purchase in electronic and hard copy formats at http://www.astm.org/cgi-bin/ resolver.cgi?D6007. General information is available at http://www.astm.org/ Standards/D60007.htm. • ASTM E1333–14 Standard Test Method for Determining Formaldehyde Concentrations in Air and Emission Rates from Wood Products Using a Large Chamber (2014). This test method measures the formaldehyde concentration in air and emission rate from wood products containing formaldehyde by the use of a large chamber under specific test conditions of temperature and relative humidity, or conditions designed to simulate product use. This method employs a single set of environmental conditions but different product loading ratios to assess PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 formaldehyde concentrations in air and emission rates from certain wood products. The conditions controlled in the procedure are the conditioning of specimens prior to testing, exposed surface area of the specimens in the test chamber, test chamber temperature and relative humidity, number of air changes per hour, and air circulation within the chamber. At the end of a specified time period in the test chamber, the air is sampled, and the concentration of formaldehyde in the air and emission rate are determined. ASTM E1333–14 is available for purchase in electronic and hard copy formats at http://www.astm.org/cgi-bin/ resolver.cgi?E1333. General information is available at http://www.astm.org/ Standards/E1333.htm. V. Findings and Certifications Regulatory Review—Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health, and safety effects; distributive impacts; and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. Under Executive Order 12866 (Regulatory Planning and Review), a determination must be made whether a regulatory action is significant and, therefore, subject to review by the Office of Management and Budget (OMB) in accordance with the requirements of the order. This final rule was determined not to be a ‘‘significant regulatory action’’ as defined in section 3(f) of the Executive order, and not an economically significant regulatory action, as provided under section 3(f)(1) of Executive Order 12866. Executive Order 13771 Executive Order 13771, entitled ‘‘Reducing Regulation and Controlling Regulatory Costs,’’ was issued on January 30, 2017. Section 2(a) of Executive Order 13771 requires an agency, unless prohibited by law, to identify at least two existing regulations to be repealed when the agency publicly proposes for notice and comment or otherwise promulgates a new regulation. In furtherance of this requirement, section 2(c) of Executive Order 13771 requires that the new incremental costs associated with new regulations shall, to E:\FR\FM\31JAR1.SGM 31JAR1 Federal Register / Vol. 85, No. 21 / Friday, January 31, 2020 / Rules and Regulations the extent permitted by law, be offset by the elimination of existing costs associated with at least two prior regulations. For the reasons discussed in the Regulatory Impact Analysis, this final rule has been determined to be an Executive Order 13771 deregulatory action. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501– 3520), an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid control number. OMB issued HUD control number 2502–0253 for the information collection requirements under the Manufactured Home Construction and Safety Standards Act Reporting Requirements. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. L. 104–4, approved March 22, 1995), establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments, and on the private sector. This final rule does not impose any Federal mandates on any State, local, or tribal government, or on the private sector, within the meaning of the UMRA. jbell on DSKJLSW7X2PROD with RULES Environmental Review A Finding of No Significant Impact with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant Impact is available for public inspection between the hours of 8 a.m. and 5 p.m. weekdays in the Regulations Division, Office of General Counsel, Room 10276, Department of Housing and Urban Development, 451 Seventh Street SW, Washington, DC 20410–0500. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. This final rule regulates establishments primarily engaged in making manufactured homes (North American Industry Classification System (NAICS) Code 32991). The VerDate Sep<11>2014 15:45 Jan 30, 2020 Jkt 250001 Small Business Administration defines a small manufactured homes manufacturing business as one that does not exceed 1,250 employees. Of the 222 firms included under this NAICS definition, approximately 35 produce manufactured homes subject to HUD’s Manufactured Housing Construction and Safety Standards. Other entities covered by this NAICS code build nonHUD-code prefabricated buildings. Of the 35 manufacturers subject to HUD’s Manufactured Housing Construction and Safety Standards, 31 are considered to be small businesses based on the threshold of 1,250 employees or less. As required by statute, EPA published a final rule that established new formaldehyde emission standards for composite wood products (81 FR 89674). As also required by statute, HUD’s final rule updates HUD’s formaldehyde requirements to align with and reflect those issued by EPA. Despite the new requirements, as discussed in HUD’s regulatory impact analysis, HUD anticipates there will not be any new or additional cost impacts resulting from implementation of this final rule—other than de minimis costs to change the template used to create the data plate. Initially, composite wood products at EPA reduced formaldehyde levels are currently the majority of products available in the marketplace. This circumstance exists because of similar requirements currently in effect in California under the California Air Resources Board (CARB) Airborne Toxic Control Measure (ATCM). CARB ATCM requires composite wood products used in manufactured housing shipped to California to already comply with CARB requirements. As with many industries, rather than procuring special products for different final destinations, manufactured housing producers are likely to procure products that can be used in homes that it can ship anywhere. This impact analysis includes all segments—manufacturers, retailers, and consumers, including small entities. In EPA’s final rule, which affected a much broader number and type of small entities, for example, EPA determined in Table 2 that 99 percent of small business firms with cost impacts of more than 1 percent of revenues will have annualized costs of less than $250 per year. In addition, this final rule will provide cost savings for HUD’s manufactured housing manufacturers covered by this rule by eliminating the burden of placing the health notice (approximately $270,270 a year), testing structural plywood and retesting panels after a finishing is added. Therefore, PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 5565 while the final rule affects a substantial number of small entities, for 31 out of the 35 affected entities (86 percent), HUD believes the de minimis cost of implementing this final rule— specifically the change to the data plate—will be offset by the savings that result from the changes in materials subject to testing and the removal of the health notice. HUD has determined the impact of this final rule on all entities, to include small entities, is not significant. For the reasons stated above, HUD knows of no instance of a manufacturer with fewer than 1,250 employees that will be significantly affected economically by this rule. Therefore, although this final rule affects a substantial number of small entities, HUD has determined that it will not have a significant economic impact on them. Executive Order 13132, Federalism Executive Order 13132 (entitled ‘‘Federalism’’) prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial direct compliance costs on State and local governments or is not required by statute, or the rule preempts State law, unless the agency meets the consultation and funding requirements of section 6 of the Executive order. This final rule does not have federalism implications and does not impose substantial direct compliance costs on State and local governments or preempt State law within the meaning of the Executive order. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance program number for Manufactured Housing Construction and Safety Standards is 14.171. List of Subjects 24 CFR Part 3280 Housing standards, Incorporation by reference, Manufactured homes. 24 CFR Part 3282 Consumer protection, Manufactured homes. Accordingly, for the reasons stated above, HUD amends 24 CFR parts 3280 and 3282 as follows: PART 3280—MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS 1. The authority citation for part 3280 is revised to read as follows: ■ Authority: 15 U.S.C. 2697, 42 U.S.C. 3535(d), 5403, and 5424. E:\FR\FM\31JAR1.SGM 31JAR1 5566 Federal Register / Vol. 85, No. 21 / Friday, January 31, 2020 / Rules and Regulations 2. Amend § 3280.4 as follows: a. Redesignate paragraphs (p)(25) through (33) as paragraphs (p)(26) through (34); ■ b. Add new paragraph (p)(25); and ■ c. Revise newly redesignated paragraph (p)(31). The addition and revision read as follows: ■ ■ § 3280.4 Incorporation by reference. * * * * * (p) * * * (25) ASTM D6007–14, Standard Test Method for Determining Formaldehyde Concentrations in Air from Wood Products Using a Small Air Chamber, approved October 1, 2014; IBR approved for § 3280.406(b). * * * * * (31) ASTM E1333–14, Standard Test Method for Determining Formaldehyde Concentrations in Air and Emission Rates from Wood Products Using a Large Air Chamber, approved October 1, 2014; IBR approved for § 3280.406(b). * * * * * ■ 3. In § 3280.5, add paragraph (i) to read as follows: § 3280.5 Data plate. * * * * * (i) The statement: The manufacturer certifies this home is compliant with the Title VI, Toxic Substances Control Act. ■ 4. Revise § 3280.308 to read as follows: jbell on DSKJLSW7X2PROD with RULES § 3280.308 Formaldehyde emission controls for composite wood products (a) Definitions. For purposes of this section, the definitions found in 40 CFR 770.3 apply. (b) Formaldehyde emission levels. The following maximum formaldehyde emission standards apply whether the composite wood product is in the form of a panel or is incorporated into a component part or finished good: (1) For hardwood plywood made with a veneer core or composite core, the maximum level is 0.05 parts per million (ppm) of formaldehyde; (2) For medium density fiberboard, the maximum level is 0.11 ppm of formaldehyde; (3) For thin medium density fiberboard, the maximum level is 0.13 ppm of formaldehyde; and (4) For particleboard, the maximum level is 0.09 ppm of formaldehyde. (c) Product certification and continuing qualification. Only certified composite wood products whether in the form of panels or incorporated into component parts or finished goods, are permitted to be used in manufactured homes sold, supplied, offered for sale, or manufactured in or imported into the VerDate Sep<11>2014 15:45 Jan 30, 2020 Jkt 250001 United States, consistent with Environmental Protection Agency (EPA) product testing requirements at 40 CFR 770.15. See § 3280.406 for testing requirements for product certification and testing requirements for continuing qualification of formaldehyde emission levels. (d) Panel label. Manufactured homes must use panels or bundles of panels that are labeled by a panel producer consistent with the labeling requirements at 40 CFR 770.45. (e) Finished good certification label. Each manufactured home must be provided with a finished good certification label indicating that the home has been produced with composite wood products, or finished goods that contain composite wood products, that comply with the formaldehyde emission requirements of this part and 40 CFR part 770, consistent with § 3280.5(i). (f) Non-complying lots. Composite wood products from non-complying lots (i.e., lots that exceed the applicable formaldehyde ppm) are not certified composite wood products and may not be used in manufactured homes except in accordance with 40 CFR 770.22. (g) Stockpiling. The use of stockpiled inventory of composite wood products, whether in the form of panels or incorporated into component parts or finished goods, in manufactured homes, is prohibited in accordance with EPA regulations at 40 CFR 770.12(b) through (d). (h) Third party certification. All composite wood products in paragraph (b) of this section must be certified by an agency or organization that has been recognized to participate in the EPA Toxic Substances Control Act (TSCA) Title VI Third Party Certification Program. § 3280.309 [Removed] 5. Remove § 3280.309. 6. Revise § 3280.406 to read as follows: ■ ■ § 3280.406 Air chamber test methods for certification and continuing qualification of formaldehyde emission levels. (a) Definitions. For purposes of this section, the definitions found in 40 CFR 770.3 apply. (b) Testing requirements. Testing of composite wood products must be performed pursuant to the general requirements of 40 CFR 770.20(a) and (b). Certification testing must be performed pursuant to one of the air chamber test methods specified in 40 CFR 770.15 (ASTM E1333–14, or ASTM D6007–14, both incorporated by reference, see § 3280.4). Quarterly PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 testing must be performed pursuant to one of the air chamber test methods specified in 40 CFR 770.20(c) (ASTM E1333–14 or ASTM D6007–14). (c) Samples for testing. Samples for testing shall comply with 40 CFR 770.24. ■ 7. Add § 3280.407 to read as follows: § 3280.407 Quality control testing, manuals, facilities, and personnel. (a) Definitions. For purposes of this section, the definitions found in 40 CFR 770.3 apply. (b) Quality control testing. Quality control testing is required for hardwood plywood made with a veneer core or composite core, medium density fiberboard, thin medium density fiberboard, and particleboard and must be performed in accordance with the general requirements in 40 CFR 770.20(a) and by one of the test methods and at the frequency specified in 40 CFR 770.20(b). Panels being tested with an equivalence and correlation must be determined in accordance with 40 CFR 770.20(d). (c) Quality control manuals, facilities, and personnel. A panel producer must have a written quality control manual, must designate a quality control facility for conducting quality control formaldehyde testing under this section, and must designate a person as quality control manager with adequate experience and/or training to be responsible for formaldehyde emissions quality control consistent with 40 CFR 770.21. A panel producer means a manufacturing plant or other facility that manufactures (excluding facilities that solely import products) composite wood products (hardwood plywood made with a veneer or composite core, medium-density fiberboard, and particleboard) on the premises. PART 3282—MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS 8. The authority citation for part 3282 is revised to read as follows: ■ Authority: 15 U.S.C. 2697, 42 U.S.C. 3535(d), 5403, and 5424. 9. In § 3282.7, add paragraph (o) to read as follows: ■ § 3282.7 Definitions. * * * * * (o) Finished good has the meaning provided in 40 CFR 770.3. * * * * * ■ 10. Add § 3282.212 to read as follows: E:\FR\FM\31JAR1.SGM 31JAR1 Federal Register / Vol. 85, No. 21 / Friday, January 31, 2020 / Rules and Regulations § 3282.212 Toxic Substances Control Act (TSCA) Title VI requirements. Manufacturers must maintain bills of lading, invoices, or comparable documents that include a written statement from the supplier that the component or finished goods are TSCA Title VI compliant for a minimum of 3 years from the date of import, purchase, or shipment, consistent with 40 CFR 770.30(c) and 770.40. ■ 11. Add § 3282.257 to read as follows: § 3282.257 TSCA Title VI requirements. Retailers and distributors must maintain bills of lading, invoices, or comparable documents that include a written statement from the supplier that the component or finished goods are TSCA Title VI compliant for a minimum of 3 years from the date of import, purchase, or shipment, consistent with 40 CFR 770.30(c) and 770.40. Dated: January 23, 2020. Brian D. Montgomery, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. 2020–01474 Filed 1–30–20; 8:45 am] BILLING CODE 4210–67–P 29 CFR Part 9 RIN 1235–AA02; 1235–AA33 Nondisplacement of Qualified Workers Under Service Contracts; Rescission of Regulations Wage and Hour Division, Department of Labor. ACTION: Final rule; rescission of regulations. AGENCY: On October 31, 2019, President Trump issued an Executive order on improving Federal contractor operations, which revoked an Executive order concerning nondisplacement of qualified workers under Federal service contracts, and directed the Secretary of Labor to promptly rescind the regulations and policies implementing the revoked Executive order. The directive also ordered the termination of all investigations or compliance actions based on the revoked Executive order. In accordance with this directive, the Department of Labor is issuing a final rule to rescind the regulations on nondisplacement of qualified workers under service contracts, which were promulgated pursuant to the authority provided by the revoked Executive order. DATES: This rule is effective January 31, 2020. jbell on DSKJLSW7X2PROD with RULES SUMMARY: 15:45 Jan 30, 2020 Amy DeBisschop, Director of Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S– 3502, 200 Constitution Avenue NW, Washington, DC 20210, telephone: (202) 693–0406 (this is not a toll-free number). SUPPLEMENTARY INFORMATION: I. Executive Summary On October 31, 2019, President Trump issued Executive Order 13897— Improving Federal Contractor Operations by Revoking Executive Order 13495 (84 FR 59709, November 5, 2019). Executive Order 13897 directs the Secretary of Labor to promptly rescind regulations and other materials implementing or enforcing Executive Order 13495. Accordingly, the Department issues this final rule rescinding 29 CFR part 9, Nondisplacement of Qualified Workers Under Service Contracts, as these regulations implement Executive Order 13495. II. Background DEPARTMENT OF LABOR VerDate Sep<11>2014 FOR FURTHER INFORMATION CONTACT: Jkt 250001 Executive Order 13495 of January 30, 2009—Nondisplacement of Qualified Workers Under Service Contracts— provided that workers on a service contract be given the right of first refusal for employment with a successor contractor if they would otherwise lose their jobs as a result of expiration of the contract. The implementing regulations, 29 CFR part 9, were promulgated in accordance with the terms of Executive Order 13495 and were published in the Federal Register on August 29, 2011 (76 FR 53720). On October 31, 2019, President Trump issued Executive Order 13897—Improving Federal Contractor Operations by Revoking Executive Order 13495 (84 FR 59709, November 5, 2019). Executive Order 13897 directs the Secretary of Labor to terminate any investigations or compliance actions based on Executive Order 13495, and to ‘‘promptly move to rescind any orders, rules, regulations, guidelines, programs, or policies implementing or enforcing Executive Order 13495.’’ Since the authority for these regulations no longer exists, the Department for good cause hereby finds that it is unnecessary and impracticable to afford notice and comment procedures on the rescission of the regulations at 29 CFR part 9, and that such rescission should be effective upon publication. As provided in Executive Order 13897, the revocation of Executive Order 13495 and the rescission of these regulations extend to PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 5567 all investigations or compliance actions based on Executive Order 13495. III. Paperwork Reduction Act The information collection requirements contained in the regulations at 29 CFR part 9 were previously approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1980 (Pub. L. 96–511) and assigned OMB Control Number 1235–0025. In light of the rescission of these regulations, the Department has submitted a request to OMB to discontinue the information collection under OMB control number 1235–0025. List of Subjects in 29 CFR Part 9 Employment, Federal buildings and facilities, Government contracts, Law enforcement. PART 9—[REMOVED AND RESERVED] Accordingly, and under the authority of Executive Order 13897, 84 FR 59709, part 9 of title 29 of the Code of Federal Regulations is hereby removed and reserved. ■ Dated: January 15, 2020. Cheryl M. Stanton, Administrator, Wage and Hour Division. [FR Doc. 2020–00948 Filed 1–30–20; 8:45 am] BILLING CODE 4510–27–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Parts 100 and 165 [Docket No. USCG–2018–0532] RIN 1625–ZA38 Navigation and Navigable Waters, and Shipping; Technical, Organizational, and Conforming Amendments for U.S. Coast Guard Field District 1 Coast Guard, DHS. Final rule. AGENCY: ACTION: The Coast Guard is issuing non-substantive technical, organizational, and conforming amendments to existing regulations for District 1. These changes reflect the current status of the identified regulated navigation areas, special local regulations, safety zones and security zones within the district. This rule removes safety zones and special local regulations where the enforcement period has expired or the event is no longer held. This rule also removes special local regulations where the SUMMARY: E:\FR\FM\31JAR1.SGM 31JAR1

Agencies

[Federal Register Volume 85, Number 21 (Friday, January 31, 2020)]
[Rules and Regulations]
[Pages 5562-5567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01474]


=======================================================================
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 3280 and 3282

[Docket No. FR 6018-F-02]
RIN 2502-AJ42


Streamlining and Aligning Formaldehyde Emission Control Standards 
for Certain Wood Products in Manufactured Home Construction With Title 
VI of the Toxic Substance Control Act

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: HUD is issuing a final rule to implement the Formaldehyde 
Standards for Composite Wood Products Act of 2010, which added Title VI 
to the Toxic Substances Control Act (TSCA). The purpose of TSCA Title 
VI is to reduce exposures to formaldehyde emissions from composite wood 
products, thereby resulting in benefits from avoided adverse health 
effects. In addition, HUD is removing certain aspects of the current 
manufactured housing formaldehyde standards requirements that are not 
addressed by TSCA. This final rule follows publication of a March 22, 
2019, proposed rule and takes into consideration the public comments 
received on the proposed rule. This final rule also incorporates by 
reference, ASTM D6007-14 and ASTM E1333-14, the current standard 
requirements for formaldehyde concentration and emissions rate air 
chamber testing.

DATES: This final rule is effective March 2, 2020. The incorporation by 
reference of certain publications listed in the rule is approved by the 
Director of the Federal Register as of March 2, 2020.

FOR FURTHER INFORMATION CONTACT: Teresa B. Payne, Acting Administrator, 
Office of Manufactured Housing Programs, Office of Housing, Department 
of Housing and Urban Development, 451 7th Street SW, Washington, DC 
20410; telephone 202-402-5365 (this is not a toll-free number). Persons 
with hearing or speech impairments may access this number via TTY by 
calling the Federal Relay Service at 800-877-8389 (toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Background--HUD's March 22, 2019 Proposed Rule

    The Formaldehyde Standards for Composite Wood Products Act of 2010, 
which added TSCA Title VI (Pub. L. 111-199, enacted on July 7, 2010) 
(``Formaldehyde Act of 2010''), established new formaldehyde emissions 
standards for all hardwood plywood, medium-density fiberboard, and 
particleboard, including when incorporated into finished goods, that 
are sold, supplied, offered for sale, or manufactured (including 
imported) in the United States. TSCA Title VI directs HUD to update its 
regulation addressing formaldehyde emission standards to ensure 
consistency with the standards in TSCA not later than 180 days after 
the Environmental Protection Agency (EPA) promulgates regulations. 
EPA's final rule implementing the new requirements became effective May 
22, 2017. See 81 FR 89674.
    On March 22, 2019, HUD published a proposed rule in the Federal 
Register, at 84 FR 10738, to streamline and align formaldehyde emission 
control standards requirements for certain wood products in 
manufactured homes with Title VI of the Toxic Substance Control Act. 
The rule proposed revising HUD's current formaldehyde emission 
standards for composite wood products used in manufactured housing at 
24 CFR parts 3280 and 3282 to ensure consistency with the requirements 
established by section 601 of TSCA and EPA requirements, including the 
scope of products tested and processes for testing.
    In addition, HUD proposed to remove certain aspects of HUD's 
manufactured housing formaldehyde standards requirements that are not 
addressed by TSCA, including provisions for a health notice to be 
posted in every manufactured home, testing of panels treated after 
certification, and testing of certain plywood materials. Lastly, HUD's 
proposed rule also added the EPA required provision for labeling 
finished goods by requiring labeling of each manufactured home as being 
``TSCA Title VI compliant'' to the data plate of each manufactured home 
in 24 CFR 3280.5,\1\ as recommended by the

[[Page 5563]]

Manufactured Housing Consensus Committee.\2\ For additional information 
about HUD's proposed rule, see 84 FR 10738.
---------------------------------------------------------------------------

    \1\ On October 25-27, 2016, HUD held a meeting with the 
Manufactured Housing Consensus Committee (MHCC). See 81 FR 66288. 
The Committee voted to accept a working draft of the proposed rule 
which cross-referenced EPA's requirements in HUD's regulations and 
removed the health hazard warning requirement in 24 CFR 3280.309. 
See Minutes MHCC Meeting October 25-27, 2016, https://portal.hud.gov/hudportal/documents/huddoc?id=mhcc-oct2016-meetminsfinal.pdf.
    \2\ The Manufactured Housing Improvement Act of 2000 (Title VI 
of Pub. L. 106-569) created the Manufactured MHCC to develop 
proposed revisions to the Federal manufactured home construction and 
safety standards.
---------------------------------------------------------------------------

II. Changes and Clarifications Made in This Final Rule

    In response to public comments on the proposed rule, a discussion 
of which is presented in the following section of this preamble, this 
final rule incorporates the following changes described below and minor 
technical changes.

A. Samples for Testing

    HUD's new Sec.  3280.406(c) incorporated the testing of composite 
wood product samples under 40 CFR 770.24. As drafted, the language of 
this provision was limited to samples not produced in the United 
States, but imported and transported across the country for testing. 
Recognizing that the provision was meant to permit samples to be sent 
for testing without automatically triggering a violation for both 
American producers as well as importers, HUD amends the language in the 
final rule to apply to all samples for testing.

B. Quality Control Testing

    HUD's new Sec.  3280.407(b) incorporated the composite wood product 
quality control test methods from 40 CFR 770.20(d). The language in the 
proposed rule provided that panels being tested with an equivalence, 
correlation, or ``alternative method'' must be in compliance with the 
requirements of 40 CFR 770.20(d). However, a commenter noted that 
almost all testing is done with reference to a correlation value, 
regardless of the testing method. The term ``alternative method'' is 
eliminated from the final rule for clarity.

C. Technical Changes

    HUD amends for clarity the language on the data plate from ``TSCA 
Title VI compliant'' to compliant with Title VI, Toxic Substances 
Control Act. In addition, HUD makes minor changes to the language in 
Sec.  3280.406 to clarify certification testing and quarterly testing.

III. Discussion of Public Comments Received on March 22, 2019, Proposed 
Rule

    The public comment period for the proposed rule closed on April 22, 
2019. HUD received five public comments in response to the proposed 
rule. These comments were submitted by a private citizen, industry 
associations, and manufactured housing associations.
    Four commenters generally supported HUD's proposed rule. One 
commenter supported the removal of the provisions that were 
inconsistent with TSCA, and another commenter noted that the 
streamlining will avoid the need for duplicative testing. Commenters 
were generally supportive of the proposed rule, but, as provided in the 
following section of this Preamble, they also recommended changes or 
clarifications, two of which are discussed above.
    Comments: Most commenters agreed that the removal of the health 
notice was appropriate and necessary. The commenters noted that 
requiring such a notice for manufactured homes, but not site-built 
homes is inconsistent and doing so created a stigma. One commenter 
wrote that the notice should not be removed because the change to 
ventilation standards may still have no effect on decreasing the risks 
derived from the formaldehyde emissions.
    HUD Response: HUD believes the significant decrease in formaldehyde 
emissions required by EPA's rule and referenced by HUD's rule combined 
with HUD's whole house ventilation requirements mitigate issues 
identified in the health notice. Further, the substantial similarities 
in construction methods, materials, and ventilation features between 
manufactured and site-built housing, without such a notice required for 
site-built housing, supports the action to eliminate the health notice 
in manufactured housing.
    Comments: One commenter suggested that HUD amend Sec.  3280.406(c), 
which incorporates the testing of samples under 40 CFR 770.24. The 
commenter noted that HUD limited the sampling language to imported 
samples in the proposed rule, but the provision was drafted to permit 
samples to be sent for testing without automatically triggering a 
violation for both American producers as well as importers.
    HUD Response: HUD agrees and has made appropriate clarifications 
within the final language in Sec.  3280.406(c).
    Comments: One commenter suggested HUD amend Sec.  3280.407(b), 
which incorporates control testing under 40 CFR 770.20(d). The 
commenter noted that almost all quality control testing is done with 
reference to a correlation value, regardless of the test methodology. 
The commenter wrote that it is unclear what ``alternative method'' 
means in this context; ``equivalence and correlation'' must be 
determined in accordance with 40 CFR 770.20(d).
    HUD Response: HUD agrees and has made appropriate clarifications 
within the final language in Sec.  3280.407(b).
    Comments: One commenter noted that the proposed rule restricts the 
merchantability of non-conforming material. Such restrictions on an end 
user may be unfairly burdensome for a homeowner trying to resell a home 
that was purchased in good faith and without knowledge of any defect. 
The commenter suggested that HUD adapt the EPA's remedy of this problem 
by providing an exception for ``any finished good that has previously 
been sold or supplied to an end user, an individual, or entity that 
purchased or acquired the finished good in good faith for purposes 
other than resale.'' The commenter also recommended that HUD go further 
to protect an end user who acquired a manufactured home in good faith 
and is now selling it, but is either currently unaware or was only 
recently made aware that the home is not in compliance.
    HUD Response: HUD's regulations are intended for the design and 
construction of new manufactured homes. HUD does not regulate resale 
transactions. However, latent defects in manufactured housing are 
addressable under the Manufactured Home Procedural and Enforcement 
Regulations. If a manufacturer becomes aware that it has systematically 
introduced a failure to conform into a manufactured home, it must 
conduct an investigation and take additional action (notification, 
correction, or both) as may be required under 24 CFR part 3232, subpart 
I. Regarding composite wood products, if a home manufacturer acquires 
knowledge that it has used non-conforming material, the home 
manufacturer remains responsible and may choose to work with the panel 
producer and/or supplier to address any required corrections approved 
by a State Administrative Agency or HUD as part of a Notification and 
Correction campaign.
    Comments: One commenter noted that EPA's rule is discriminatory in 
its treatment of HUD manufactured housing as a ``finished good'' at 40 
CFR 770.3, but not site-built homes. The commenter suggested that HUD 
reject this distinction because manufactured housing results in 
increased compliance costs that mostly fall on lower and

[[Page 5564]]

moderate-income American families that reside in manufactured housing.
    HUD Response: HUD is absent authority to interpret or otherwise 
modify EPA's rule. However, HUD is streamlining its formaldehyde 
emissions standards through this rulemaking to ensure home 
manufacturers are not subject to different regulatory compliance 
requirements of both EPA and HUD. HUD believes this will reduce 
regulatory burdens and as such minimize cost impacts to manufacturers 
and costs passed on to home purchasers.
    Comments: One commenter recommended that HUD repeal its regulations 
entirely to eliminate duplication of regulations. The commenter cited 
the fact that EPA standards are lower, the EPA rule addresses 
composite-wood products, and the EPA regulations include testing and 
certification prior to fabrication. The commenter also noted that 
manufactured homes have, for nearly 30 years, already achieved 
formaldehyde safety for consumers through compliance with existing HUD 
regulations that are less costly to meet than the TSCA standards, but 
nevertheless ensure the safety of manufactured home residents.
    HUD Response: HUD is completing this rulemaking in accordance with 
the Toxic Substances Control Act Title VI in order to streamline its 
formaldehyde emissions standards and eliminate differing standards. 
Through this rulemaking, HUD will ensure home manufacturers are not 
subject to different regulatory compliance requirements of multiple 
federal oversight agencies. HUD believes this will reduce regulatory 
burdens and as such minimize cost impacts to manufacturers and home 
purchasers.
    Comments: Two commenters recommended that HUD delay final rule 
implementation until EPA provides any clarifications as a result of its 
proposed rulemaking issued November 1, 2018, entitled ``Technical 
Issues in the Formaldehyde Emission Standards for Composite Wood 
Products Regulation.''
    HUD Response: HUD is issuing a final rule that correlates with 
EPA's final rule provisions, mostly by reference to EPA's regulations. 
HUD will consider future rulemaking, as needed, pursuant to changes EPA 
may make in future rulemaking if those changes affect any specific 
provision promulgated by HUD.
    Comments: One commenter agreed that HUD should move the disclosure 
statement to the data plate, consistent with the other items on the 
data plate. Another commenter noted that space on the data plate is 
limited and suggested that HUD shorten the statement to either ``TSCA 
Title VI compliant'' or ``This home is TSCA Title VI compliant.'' 
Another commenter suggested that HUD forego such a statement and 
reserve the space for future disclosures or technical information, 
given that only compliant homes receive a data plate.
    HUD Response: HUD believes that sufficient space is available 
within the data plate for the minimal compliance statement required by 
Sec.  3280.5(i). Further, HUD has decided to change the text of the 
data plate statement by spelling out the Toxic Substance Control Act.

IV. Incorporation by Reference

    This rule incorporates the following standard test methods for 
determining formaldehyde concentrations in air and emission rates from 
wood products, listed below. The standards are readily available 
electronically or in print and are relatively inexpensive (less than 
$60 a copy). Copies of these materials may be obtained from the 
American Society for Testing and Materials (ASTM), 100 Barr Harbor 
Drive, West Conshohocken, PA 19428, (610) 832-9500, fax number (610) 
832-9555, website: http://www.astm.org.
     ASTM D0007-14 Standard Test Method for Determining 
Formaldehyde Concentrations in Air from Wood Products Using a Small-
Scale Chamber (2014). This test method measures the formaldehyde 
concentrations in air from wood products under defined test conditions 
of temperature and relative humidity. Results obtained from this small-
scale chamber test method are intended to be comparable to results 
obtained testing larger product samples by the large chamber test 
method for wood products, Test Method E1333. The results may be 
correlated to values obtained from ASTM Test Method E1333.
    ASTM D60007-14 is available for purchase in electronic and hard 
copy formats at http://www.astm.org/cgi-bin/resolver.cgi?D6007. General 
information is available at http://www.astm.org/Standards/D60007.htm.
     ASTM E1333-14 Standard Test Method for Determining 
Formaldehyde Concentrations in Air and Emission Rates from Wood 
Products Using a Large Chamber (2014). This test method measures the 
formaldehyde concentration in air and emission rate from wood products 
containing formaldehyde by the use of a large chamber under specific 
test conditions of temperature and relative humidity, or conditions 
designed to simulate product use. This method employs a single set of 
environmental conditions but different product loading ratios to assess 
formaldehyde concentrations in air and emission rates from certain wood 
products. The conditions controlled in the procedure are the 
conditioning of specimens prior to testing, exposed surface area of the 
specimens in the test chamber, test chamber temperature and relative 
humidity, number of air changes per hour, and air circulation within 
the chamber. At the end of a specified time period in the test chamber, 
the air is sampled, and the concentration of formaldehyde in the air 
and emission rate are determined.
    ASTM E1333-14 is available for purchase in electronic and hard copy 
formats at http://www.astm.org/cgi-bin/resolver.cgi?E1333. General 
information is available at http://www.astm.org/Standards/E1333.htm.

V. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health, and safety effects; distributive impacts; and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility.
    Under Executive Order 12866 (Regulatory Planning and Review), a 
determination must be made whether a regulatory action is significant 
and, therefore, subject to review by the Office of Management and 
Budget (OMB) in accordance with the requirements of the order. This 
final rule was determined not to be a ``significant regulatory action'' 
as defined in section 3(f) of the Executive order, and not an 
economically significant regulatory action, as provided under section 
3(f)(1) of Executive Order 12866.

Executive Order 13771

    Executive Order 13771, entitled ``Reducing Regulation and 
Controlling Regulatory Costs,'' was issued on January 30, 2017. Section 
2(a) of Executive Order 13771 requires an agency, unless prohibited by 
law, to identify at least two existing regulations to be repealed when 
the agency publicly proposes for notice and comment or otherwise 
promulgates a new regulation. In furtherance of this requirement, 
section 2(c) of Executive Order 13771 requires that the new incremental 
costs associated with new regulations shall, to

[[Page 5565]]

the extent permitted by law, be offset by the elimination of existing 
costs associated with at least two prior regulations.
    For the reasons discussed in the Regulatory Impact Analysis, this 
final rule has been determined to be an Executive Order 13771 
deregulatory action.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520), an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless the 
collection displays a valid control number. OMB issued HUD control 
number 2502-0253 for the information collection requirements under the 
Manufactured Home Construction and Safety Standards Act Reporting 
Requirements.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. 
L. 104-4, approved March 22, 1995), establishes requirements for 
Federal agencies to assess the effects of their regulatory actions on 
State, local, and tribal governments, and on the private sector. This 
final rule does not impose any Federal mandates on any State, local, or 
tribal government, or on the private sector, within the meaning of the 
UMRA.

Environmental Review

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
which implement section 102(2)(C) of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant 
Impact is available for public inspection between the hours of 8 a.m. 
and 5 p.m. weekdays in the Regulations Division, Office of General 
Counsel, Room 10276, Department of Housing and Urban Development, 451 
Seventh Street SW, Washington, DC 20410-0500.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. This final rule 
regulates establishments primarily engaged in making manufactured homes 
(North American Industry Classification System (NAICS) Code 32991). The 
Small Business Administration defines a small manufactured homes 
manufacturing business as one that does not exceed 1,250 employees. Of 
the 222 firms included under this NAICS definition, approximately 35 
produce manufactured homes subject to HUD's Manufactured Housing 
Construction and Safety Standards. Other entities covered by this NAICS 
code build non-HUD-code prefabricated buildings. Of the 35 
manufacturers subject to HUD's Manufactured Housing Construction and 
Safety Standards, 31 are considered to be small businesses based on the 
threshold of 1,250 employees or less.
    As required by statute, EPA published a final rule that established 
new formaldehyde emission standards for composite wood products (81 FR 
89674). As also required by statute, HUD's final rule updates HUD's 
formaldehyde requirements to align with and reflect those issued by 
EPA. Despite the new requirements, as discussed in HUD's regulatory 
impact analysis, HUD anticipates there will not be any new or 
additional cost impacts resulting from implementation of this final 
rule--other than de minimis costs to change the template used to create 
the data plate. Initially, composite wood products at EPA reduced 
formaldehyde levels are currently the majority of products available in 
the marketplace. This circumstance exists because of similar 
requirements currently in effect in California under the California Air 
Resources Board (CARB) Airborne Toxic Control Measure (ATCM). CARB ATCM 
requires composite wood products used in manufactured housing shipped 
to California to already comply with CARB requirements. As with many 
industries, rather than procuring special products for different final 
destinations, manufactured housing producers are likely to procure 
products that can be used in homes that it can ship anywhere.
    This impact analysis includes all segments--manufacturers, 
retailers, and consumers, including small entities. In EPA's final 
rule, which affected a much broader number and type of small entities, 
for example, EPA determined in Table 2 that 99 percent of small 
business firms with cost impacts of more than 1 percent of revenues 
will have annualized costs of less than $250 per year.
    In addition, this final rule will provide cost savings for HUD's 
manufactured housing manufacturers covered by this rule by eliminating 
the burden of placing the health notice (approximately $270,270 a 
year), testing structural plywood and retesting panels after a 
finishing is added. Therefore, while the final rule affects a 
substantial number of small entities, for 31 out of the 35 affected 
entities (86 percent), HUD believes the de minimis cost of implementing 
this final rule--specifically the change to the data plate--will be 
offset by the savings that result from the changes in materials subject 
to testing and the removal of the health notice. HUD has determined the 
impact of this final rule on all entities, to include small entities, 
is not significant.
    For the reasons stated above, HUD knows of no instance of a 
manufacturer with fewer than 1,250 employees that will be significantly 
affected economically by this rule. Therefore, although this final rule 
affects a substantial number of small entities, HUD has determined that 
it will not have a significant economic impact on them.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments or is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This final rule does not have 
federalism implications and does not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive order.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance program number for 
Manufactured Housing Construction and Safety Standards is 14.171.

List of Subjects

24 CFR Part 3280

    Housing standards, Incorporation by reference, Manufactured homes.

24 CFR Part 3282

    Consumer protection, Manufactured homes.

    Accordingly, for the reasons stated above, HUD amends 24 CFR parts 
3280 and 3282 as follows:

PART 3280--MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS

0
1. The authority citation for part 3280 is revised to read as follows:

    Authority: 15 U.S.C. 2697, 42 U.S.C. 3535(d), 5403, and 5424.


[[Page 5566]]



0
2. Amend Sec.  3280.4 as follows:
0
a. Redesignate paragraphs (p)(25) through (33) as paragraphs (p)(26) 
through (34);
0
b. Add new paragraph (p)(25); and
0
c. Revise newly redesignated paragraph (p)(31).
    The addition and revision read as follows:


Sec.  3280.4  Incorporation by reference.

* * * * *
    (p) * * *
    (25) ASTM D6007-14, Standard Test Method for Determining 
Formaldehyde Concentrations in Air from Wood Products Using a Small Air 
Chamber, approved October 1, 2014; IBR approved for Sec.  3280.406(b).
* * * * *
    (31) ASTM E1333-14, Standard Test Method for Determining 
Formaldehyde Concentrations in Air and Emission Rates from Wood 
Products Using a Large Air Chamber, approved October 1, 2014; IBR 
approved for Sec.  3280.406(b).
* * * * *

0
3. In Sec.  3280.5, add paragraph (i) to read as follows:


Sec.  3280.5  Data plate.

* * * * *
    (i) The statement: The manufacturer certifies this home is 
compliant with the Title VI, Toxic Substances Control Act.

0
4. Revise Sec.  3280.308 to read as follows:


Sec.  3280.308  Formaldehyde emission controls for composite wood 
products

    (a) Definitions. For purposes of this section, the definitions 
found in 40 CFR 770.3 apply.
    (b) Formaldehyde emission levels. The following maximum 
formaldehyde emission standards apply whether the composite wood 
product is in the form of a panel or is incorporated into a component 
part or finished good:
    (1) For hardwood plywood made with a veneer core or composite core, 
the maximum level is 0.05 parts per million (ppm) of formaldehyde;
    (2) For medium density fiberboard, the maximum level is 0.11 ppm of 
formaldehyde;
    (3) For thin medium density fiberboard, the maximum level is 0.13 
ppm of formaldehyde; and
    (4) For particleboard, the maximum level is 0.09 ppm of 
formaldehyde.
    (c) Product certification and continuing qualification. Only 
certified composite wood products whether in the form of panels or 
incorporated into component parts or finished goods, are permitted to 
be used in manufactured homes sold, supplied, offered for sale, or 
manufactured in or imported into the United States, consistent with 
Environmental Protection Agency (EPA) product testing requirements at 
40 CFR 770.15. See Sec.  3280.406 for testing requirements for product 
certification and testing requirements for continuing qualification of 
formaldehyde emission levels.
    (d) Panel label. Manufactured homes must use panels or bundles of 
panels that are labeled by a panel producer consistent with the 
labeling requirements at 40 CFR 770.45.
    (e) Finished good certification label. Each manufactured home must 
be provided with a finished good certification label indicating that 
the home has been produced with composite wood products, or finished 
goods that contain composite wood products, that comply with the 
formaldehyde emission requirements of this part and 40 CFR part 770, 
consistent with Sec.  3280.5(i).
    (f) Non-complying lots. Composite wood products from non-complying 
lots (i.e., lots that exceed the applicable formaldehyde ppm) are not 
certified composite wood products and may not be used in manufactured 
homes except in accordance with 40 CFR 770.22.
    (g) Stockpiling. The use of stockpiled inventory of composite wood 
products, whether in the form of panels or incorporated into component 
parts or finished goods, in manufactured homes, is prohibited in 
accordance with EPA regulations at 40 CFR 770.12(b) through (d).
    (h) Third party certification. All composite wood products in 
paragraph (b) of this section must be certified by an agency or 
organization that has been recognized to participate in the EPA Toxic 
Substances Control Act (TSCA) Title VI Third Party Certification 
Program.


Sec.  3280.309  [Removed]

0
5. Remove Sec.  3280.309.

0
6. Revise Sec.  3280.406 to read as follows:


Sec.  3280.406  Air chamber test methods for certification and 
continuing qualification of formaldehyde emission levels.

    (a) Definitions. For purposes of this section, the definitions 
found in 40 CFR 770.3 apply.
    (b) Testing requirements. Testing of composite wood products must 
be performed pursuant to the general requirements of 40 CFR 770.20(a) 
and (b). Certification testing must be performed pursuant to one of the 
air chamber test methods specified in 40 CFR 770.15 (ASTM E1333-14, or 
ASTM D6007-14, both incorporated by reference, see Sec.  3280.4). 
Quarterly testing must be performed pursuant to one of the air chamber 
test methods specified in 40 CFR 770.20(c) (ASTM E1333-14 or ASTM 
D6007-14).
    (c) Samples for testing. Samples for testing shall comply with 40 
CFR 770.24.

0
7. Add Sec.  3280.407 to read as follows:


Sec.  3280.407  Quality control testing, manuals, facilities, and 
personnel.

    (a) Definitions. For purposes of this section, the definitions 
found in 40 CFR 770.3 apply.
    (b) Quality control testing. Quality control testing is required 
for hardwood plywood made with a veneer core or composite core, medium 
density fiberboard, thin medium density fiberboard, and particleboard 
and must be performed in accordance with the general requirements in 40 
CFR 770.20(a) and by one of the test methods and at the frequency 
specified in 40 CFR 770.20(b). Panels being tested with an equivalence 
and correlation must be determined in accordance with 40 CFR 770.20(d).
    (c) Quality control manuals, facilities, and personnel. A panel 
producer must have a written quality control manual, must designate a 
quality control facility for conducting quality control formaldehyde 
testing under this section, and must designate a person as quality 
control manager with adequate experience and/or training to be 
responsible for formaldehyde emissions quality control consistent with 
40 CFR 770.21. A panel producer means a manufacturing plant or other 
facility that manufactures (excluding facilities that solely import 
products) composite wood products (hardwood plywood made with a veneer 
or composite core, medium-density fiberboard, and particleboard) on the 
premises.

PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS

0
8. The authority citation for part 3282 is revised to read as follows:

    Authority: 15 U.S.C. 2697, 42 U.S.C. 3535(d), 5403, and 5424.


0
9. In Sec.  3282.7, add paragraph (o) to read as follows:


Sec.  3282.7  Definitions.

* * * * *
    (o) Finished good has the meaning provided in 40 CFR 770.3.
* * * * *

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10. Add Sec.  3282.212 to read as follows:

[[Page 5567]]

Sec.  3282.212  Toxic Substances Control Act (TSCA) Title VI 
requirements.

    Manufacturers must maintain bills of lading, invoices, or 
comparable documents that include a written statement from the supplier 
that the component or finished goods are TSCA Title VI compliant for a 
minimum of 3 years from the date of import, purchase, or shipment, 
consistent with 40 CFR 770.30(c) and 770.40.

0
11. Add Sec.  3282.257 to read as follows:


Sec.  3282.257  TSCA Title VI requirements.

    Retailers and distributors must maintain bills of lading, invoices, 
or comparable documents that include a written statement from the 
supplier that the component or finished goods are TSCA Title VI 
compliant for a minimum of 3 years from the date of import, purchase, 
or shipment, consistent with 40 CFR 770.30(c) and 770.40.

    Dated: January 23, 2020.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2020-01474 Filed 1-30-20; 8:45 am]
 BILLING CODE 4210-67-P