The Environmental Protection Agency, the Sierra Club, and various trade organizations, including the National Association of Home Builders, reached an agreement on Tuesday about how to implement the EPA’s formaldehyde emissions rule. The agreement has been approved by the U.S. District Court for the Northern District of California.

The agreement stems from the extension of the EPA’s composite wood industry compliance deadline for the formaldehyde emissions rule from December 2017 to December 2018. The Sierra Club had filed suit against the EPA, saying the extension was too long, while the NAHB and other trade associations filed a brief to the court urging them to uphold the extension. The judge filed against the EPA, but gave the EPA and the Sierra Club three weeks to consult with the affected industries.

Under the new agreement, the compliance deadline has been shortened to June 1, 2018. All products manufactured between December 2017 and June 2018 can be sold at market, and products that comply with California’s formaldehyde rule to be considered compliant with the EPA’s rule until March 22, 2019.

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