Shares Of Lumber Liquidators Spike Higher
12:05 p.m. Editor's note: The stock movement from Wednesday morning may be attributed to traders passing around a potentially old EPA post. Benzinga is awaiting confirmation from the EPA on the date of this posting.
Shares of Lumber Liquidators Holdings Inc (NYSE: LL) on Wednesday morning were trading higher by more than 4 percent after the U.S. Environmental Protection Agency detailed proposed rules to govern formaldehyde emission standards.
Shares traded recently at $31.87, up 3.5 percent.
The EPA noted that there are currently no national standards in place for formaldehyde in composite wood products, but the agency is in the process of finalizing rules that will set limits on formaldehyde emissions from composite wood products that are supplied, offered for sale, manufactured or imported in to the U.S.
Related Link: Exclusive: The First Lawsuit Against Lumber Liquidators
According to the agency, the following two proposed regulations were presented in June 2013:
- "The first proposal would establish a framework for a third-party certification program to ensure that composite wood panel producers comply with the formaldehyde emission limits established under TSCA Title VI. We refer to this proposed regulation as the Third-Party Certification Program Framework Rule.
- "The second proposal would implement formaldehyde emission standards under Title VI of TSCA and would apply to hardwood plywood, medium-density fiberboard, particleboard, and finished goods containing these products that are sold, supplied, offered for sale, or manufactured (including imported) in the United States. We refer to this regulation as the Implementation Rule.
- "In an ongoing effort to reach out to potentially affected stakeholders, EPA met and continues to meet with companies and trade associations that represent, among other members, producers of laminated products," the EPA wrote. "As part of this effort, EPA specifically requested data on formaldehyde emissions from laminated products, as well as comments and information on the proposed definition of laminated products. The comment period for these proposed rules is now closed and EPA anticipates publishing a combined final rule by the end of 2015."
The agency said that the rule would establish a third-party certification program. These third party certifiers would audit composite wood panel producers to verify its compliance levels. By receiving a certification, a company would need to fall within the acceptable limit of formaldehyde that may be released from composite wood products.
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