The fact of the matter is the regulatory bodies that most impact our industry, primarily the Environmental Protection Agency (EPA) and California Air Resources Board (CARB), are not currently very active regarding issues that impact our markets.

 

While some might question why I would include CARB in a discussion of national issues, California is huge market and can’t be ignored. Beyond their huge market presence they lead other states’ agencies to adopted similar regulations.

 

CARB has actually moved out the compliance dates for Phase I and II compliance (see Regulation Advisory 11-01 dated May 2011). These regulations govern formaldehyde emission limits in MDF, particleboard and hardwood plywood. Under those regulations any product entering the California market must be compliant, independent of where that product was manufactured.

 

Government regulatory changes currently are more stable than trade related limitations governing indoor air quality, sustainability and recyclable content. Architects and owners are increasingly specifying compliance with organizations such as the U.S. Green Building Council and their Leadership in Energy and Environmental Design (LEED) program.

 

LEED compliance at some level is no longer an isolated requirement. All federal GSA projects are now specified as Gold — up from the previous Silver level requirements. More and more states are implementing their own compliance requirements based on LEED standards.

 

This is not limited to only government projects. Few major projects for large corporate clients do not contain LEED, FSC and no-added-formaldehyde requirements. Companies that are concerned with their public image are adopting these standards as their normal practice.

 

This growing focus on green has gone far beyond the financial houses of Wall Street. It is becoming increasingly common to see these requirements in everything from the most chic retail outlets to fast food stores. The Kitchen Cabinet Manufacturers Association (KCMA) has adopted its own Environmental Stewardship Program (ESP). It is no longer a question of justifying the cost of compliance with these programs; the question now is can you afford not to be compliant

 

In some cases compliance is as simple as knowing the requirements and using the compliant materials; in others it is more complex. Forest Stewardship Council (FSC) compliance may require not only using the proper materials; you may need a chain-of-custody certification from FSC. That is not something you get overnight.

 

The biggest issue for many will be in coatings. If you are not currently using coating systems that are compliant with these specifications, you need to understand the requirements and start working toward being able to come into compliance with them.

 

These changes are market driven, isolated from the changing winds of politics. The result of ignoring compliance with these specifications will be an ever-diminishing market for your products.