The updated remediation guidance is based on studies just completed by the National Institute of Standards and Technology (NIST) on potential long term corrosion effects of problem drywall on select gas components (pdf), fire sprinkler heads (pdf) and smoke alarms (pdf).

CPSC and HUD staffs believe these final studies that resulted in an update of the remediation guidance, along with previously-issued identification guidance (pdf), will enable homeowners to comprehensively remediate those homes containing problem drywall with potentially lower costs than by following the previous remediation guidance.

Key Findings

The key finding is that none of the studies performed at NIST on smoke alarms, fire sprinkler heads, or gas service piping found corrosion associated with problem drywall that provided evidence of a substantial product safety hazard, as defined by the Consumer Product Safety Act. Corrosion of gas service piping was uniform and minimal compared to the thickness of pipes. Some smoke alarms and fire sprinkler heads showed small changes in performance due to accelerated corrosion, but these changes were generally within accepted industry standards.

As a result, CPSC and HUD no longer recommend the removal of gas service piping in homes with problem drywall. This change may reduce the cost of remediation for many homes. In addition, the agencies no longer recommend that glass bulb fire sprinkler heads be replaced in homes. However, the agencies recommend that both glass bulb sprinkler heads and gas distribution piping in affected homes be inspected and tested as part of the remediation to make sure they are working properly; any test failures should be corrected according to all applicable building codes.

The agencies do recommend the replacement of all fusible-type fire sprinkler heads, because one fusible-type sprinkler head sample that had been exposed to accelerated corrosion did not activate when tested. The agencies note that this type of sprinkler head is generally found in commercial, rather than residential, applications and that the sole failure could not be causally linked to the problem drywall.

In addition, CPSC staff continues to recommend that homeowners replace smoke alarms and carbon monoxide alarms as part of remediation.

Exhaustive Investigation

CPSC’s investigation into problem drywall to help affected homeowners began in early 2009 and involved significant agency resources. CPSC’s investigation of problem drywall has been driven by sound science and has involved HUD, the U.S. Centers for Disease Control and Prevention (CDC) and the U.S. Environmental Protection Agency (EPA) as members of the Federal Interagency Task Force on Problem Drywall.

CPSC and HUD met with deeply-impacted homeowners, responded to correspondence, and kept members of Congress informed about our progress during this time period.

CPSC developed contracts to research and test problem drywall, visited Chinese mines and manufacturers, hosted a public website to keep the public informed about new developments, and devoted thousands of staff hours and millions of dollars to these activities.

As part of the effort to determine if there were any health or safety effects associated with problem drywall, the agency contracted with several highly-respected technical organizations, including Lawrence Berkeley National Laboratory (LBNL), Environmental Health & Engineering Inc. (EH&E), Sandia National Laboratories (SNL), NIST, and the U.S. Geological Survey (USGS).

LBNL used specially-built chambers to measure chemical emissions from drywall samples. In the second phase of its work, which is being released today, LBNL (pdf) evaluated the effects of different temperature and humidity conditions, as well as the effects of time and coatings of paint or plaster, on the emissions. A prior LBNL (pdf) study found considerably higher hydrogen sulfide emission rates from some, but not all, Chinese drywall samples compared to North American samples. The current LBNL study found that increases in temperature and humidity corresponded with increased emission rates of the most reactive sulfur gases, that emissions were significantly reduced over time (compared with its prior testing), and that coating the problem drywall samples did not result in differences in emissions compared to uncoated samples.

EH&E conducted CPSC’s 51-home study (pdf) on emissions and corrosion in problem drywall homes. The studies identified elevated levels of hydrogen sulfide in problem drywall homes. The studies also showed a strong association between the presence of hydrogen sulfide and metal corrosion in the problem drywall homes.

SNL exposed smoke alarms, electrical components, gas piping, and sprinkler heads to concentrated levels of gases representative of problem drywall emissions, to simulate decades of exposure. SNL analyzed the effects of corrosion on the electrical components and found no degradation in performance and no acute safety events during testing.

NIST analyzed the type and depth of corrosion resulting from the simulated aging, as well as other samples taken from homes with problem drywall, and evaluated whether the corrosion would impact the proper functioning of smoke alarms, gas distribution piping, and fire sprinklers.

Another study being released today, that was conducted by the USGS (pdf), found no evidence of microbiological activity or a microbiological source of sulfur-gas emissions from gypsum rock or problem drywall, including samples taken from affected homes.

As part of the investigation, CPSC requested that CDC consider undertaking a comprehensive study of any possible long-term health effects. In February 2011, CDC indicated that the best scientific evidence available at that time did not support undertaking a long-term health study.

Concluding Our Investigation

To date, CPSC has received 3,905 reports from residents of 42 states and the District of Columbia, American Samoa, and Puerto Rico, who believe their health symptoms or the corrosion of certain metal components in their homes are related to problem drywall. CPSC believes there may be as many as 6,300 U.S. homes with problem drywall.

CPSC has been focused on providing answers and guidance for homeowners based on its scientific work, and other federal agencies have worked to provide relief to homeowners. For example, based on information provided by CPSC, the IRS allows certain impacted taxpayers whose homes meet the CPSC’s problem drywall identification criteria to treat damages from corrosive drywall as a casualty loss, and provides a “safe harbor” formula for determining the amount of the loss. In addition, HUD advised its Federal Housing Administration-approved mortgage lenders that they may offer forbearance for borrowers confronted with the sudden effects of damaging drywall in their homes.

Going forward, CPSC staff continues to work with voluntary standards organizations to develop improved standards for drywall to prevent this type of problem from reemerging. The standard setting body ASTM International Inc. is also moving to require that all drywall sheets are marked with the manufacturer’s name or a unique identification code, the manufacture date, and the source materials.

As the federal investigation into problem drywall concludes, CPSC staff believes that the extensive research and testing have been successful in defining the scope of the problem drywall issue, in producing identification and remediation protocols, and in providing homeowners with all the assistance possible within the agency’s jurisdiction and appropriated funds authority. The agency will continue to provide information to and work with members of Congress and agency partners to support policy options that may be beneficial to impacted homeowners.

For additional findings from the Interagency Drywall Task Force’s investigation, visit www.DrywallResponse.gov

Based on this study, CPSC and HUD staff, representing the Interagency Task Force on Problem Drywall, are no longer recommending the removal of all electrical wiring in homes with problem drywall. This change in the government’s protocol may reduce the cost of remediation for many homes.

After simulating more than 40 years of corrosive conditions that could exist in problem drywall homes, Sandia staff did not observe any acute or long-term electrical safety events, such as smoking or fire. Corrosion and blackening of the exposed electrical components did occur and was observed to be consistent with the characteristic corrosion reported to CPSC by thousands of consumers. Based on this study, it is the belief of the staffs of CPSC, HUD and Sandia that long-term exposure of wiring and other electrical components to hydrogen sulfide gases does not indicate a safety hazard to a home’s electrical systems.

With these changes, the remediation guidance for homes with problem drywall calls for the replacement of all:

• problem drywall;
• fire safety alarm devices, including smoke and carbon monoxide alarms;
• electrical distribution components, including receptacles, switches and circuit breakers; and
• gas service piping and fire suppression sprinkler systems.

CPSC and HUD staffs are also issuing an updated identification guidance (pdf), which broadens the range of installation years of affected homes to include homes where drywall was installed as late as 2009. Importantly, the drywall installed in 2009 had been previously imported during the years 2006-2007 and does not represent any new importation of problem drywall.

The staffs of CPSC and HUD believe that following the updated identification and remediation protocols (pdf) will enable homeowners to correctly identify homes containing problem drywall and comprehensively remediate those homes to address any potential health and safety issues associated with the problem drywall.

CPSC is in the final stages of completing its scientific investigation into problem drywall. For additional findings from the Interagency Drywall Task Force’s investigation, visit www.DrywallResponse.gov

Studies conducted by the nationally recognized firm Environmental Health and Engineering, Inc. (EH&E), under contract with CPSC, looked at the drywall to see if it met the criteria established by CPSC and other federal agencies for identifying “problem” drywall. EH&E also studied the indoor environment and the heating, ventilating, and air-conditioning system to determine if possible environmental factors may have contributed to the infant deaths.

The EH&E report presents data from samples taken from two homes at Ft. Bragg where three infants died.

All chemical and physical testing and evaluation established that the drywall in the two homes studied did not contain the factors that identify problem drywall other than the time period of construction.

EH&E’s environmental testing included nearly 400 different tests conducted for fungi, metals, pesticides, PCB’s, organic compounds, aldehydes, and volatile organic compounds in the water, air, and dust. From all this testing, only the levels of two pesticides, permetherin and cypermetherin, were found to be in the high, normal range. All other pesticides were either not detectable or in the low range.

CPSC recommended to Ft. Bragg that additional pesticide testing be conducted of dust samples previously collected, to better estimate the concentrations of pesticides that could have been present in the homes at the time of the deaths. Ft. Bragg is currently working with EH&E on detailed testing of these pesticides.

CPSC is in the final stages of completing its scientific investigation into problem drywall. For additional findings from the Interagency Drywall Task Force’s investigation, visit www.DrywallResponse.gov

The CDC review (pdf), which was requested by CPSC, summarizes investigations by state public health authorities of the available medical records of 11 people who died and had previously lived in or visited homes reported to contain problem drywall. State public health authorities concluded that problem drywall was not a factor in the deaths. The CDC review was limited to the 11 deceased individuals.
CPSC is in the final stages of completing its scientific investigation into problem drywall. As part of this process, CPSC has requested that the CDC consider undertaking a comprehensive study of any possible long-term health effects.

For additional findings from the Interagency Drywall Task Force’s investigation, visit www.DrywallResponse.gov

The text from the finding is below:

Summary of State Health Department Reviews of Deaths Reported to and Investigated by the Consumer Product Safety Commission Related to Exposure to Imported Drywall

Division of Environmental Hazards and Health Effects National Center for Environmental Health Centers for Disease Control and Prevention

January 3, 2011

Introduction

In March 2010, the U.S. Consumer Product Safety Commission (CPSC) requested assistance from the Centers for Disease Control and Prevention (CDC) in investigating reports of the deaths of persons who lived in or visited homes containing imported drywall.  In response to this request, CDC has worked through and with appropriate state public health authorities to conduct comprehensive clinical case reviews of the deaths reported to the CPSC.  This report summarizes the findings of the clinical case reviews conducted by state health authorities. It also provides conclusions and recommendations from CDC on the basis of those findings.

Background

The CPSC is the federal agency charged with evaluating the relation between imported drywall and reported health symptoms. The agency is also charged with examining electrical and fire safety issues in the home and with tracing the origin and distribution of drywall.  In December 2008, the agency began receiving complaints from occupants of structures containing imported drywall. The occupants complained that they experienced respiratory health symptoms that they believed were related to emissions from the imported drywall.  In response, the CPSC sent a team to Florida in March 2009 to meet with county health officials and visit impacted homes.  Since then, the CPSC and other government agencies or their contractors have conducted investigations into possible exposures to harmful contaminants associated with imported drywall.  These studies include testing of the chemical composition of drywall samples (1), measurement of drywall emission rates in controlled experiments (2), and indoor air studies of homes with imported drywall (3, 4).  The studies found reactive sulfur compounds, including hydrogen sulfide; however, none of the sulfur compounds found in indoor air were at concentrations historically associated with human health effects, and the concentrations found could not explain the adverse health symptoms reported to the CPSC. The largest study of indoor air, conducted for the CPSC by a consulting firm, Environmental Health & Engineering, Inc, sampled for contaminants in the air of homes where residents had complained of imported drywall (41
homes). The study also sampled ten homes from which there had been no complaints (4).  Although a statistically significant association between the presence of imported drywall in a home and hydrogen sulfide concentrations was found, the mean level of hydrogen sulfide for
these homes was measured at less than one part per billion (0.66 ppb).  Such a low mean level is close to levels detected in background/ambient air and below levels at which most people can detect an odor (5). The results of these environmental studies and evaluations can be found at www.cpsc/info/drywall/investigation.

Among the adverse health impacts reported to the CPSC, several families reported concerns that
the deaths of their family members might have been related to exposure to imported drywall.
The CPSC subsequently requested assistance from CDC in the investigation of those reports
involving deaths. The CPSC asked CDC to provide public health expertise and guidance in order
to further the investigation of the reports of deaths and to provide a better understanding of the
relationship, if any, between the reported deaths and exposure to imported drywall.  This request
was consistent with CDC’s ongoing supportive role of CPSC’s investigations of the potential
health impacts related to exposure to imported drywall.

Methods

In determining a scientifically feasible approach to investigating the reports to the CPSC of
deaths of persons potentially exposed to imported drywall, CDC considered the results of
previous environmental studies. These previous studies failed to document environmental
exposures at levels that could plausibly result in adverse health effects.  In addition, CDC
reviewed the decedents’ files developed from CPSC’s in-depth investigation (IDI).  These files
contain a report narrative and other relevant documentation collected by the CPSC investigators
through a Web site or through telephone and/or in-person interviews with the next of kin of
decedants.  Some of the IDIs included copies of medical records and death certificates provided
by the next of kin or collected by CPSC in instances in which consent was obtained from the
next of kin.  After reviewing the CPSC IDIs and previous environmental studies, CDC
determined that an objective, comprehensive review of the clinical records related to each of the
reported deaths was necessary.

CDC then consulted with and received guidance from the National Association of Medical
Examiners and several state medical examiners. CDC researched a number of options for
obtaining an objective, expert review of the decedants’ clinical histories.  On the basis of these
consultations, CDC determined that the individual case reviews should be conducted by the
public health authorities in the states where the deaths were reported.

CDC developed and implemented a plan to refer the CPSC IDIs to state departments of health
for review and to obtain additional information and medical records from next of kin of the
deceased.  With such additional information and medical records, reviews of the cases would be
more comprehensive.  The case definition for referring a case to a state public health authority
was as follows:  Notification to the CPSC of a deceased person who resided in or visited a home
that met the CPSC criteria for the confirmed presence of imported drywall. The objective of
these case reviews was to determine if any documented, clinical evidence suggested that any of
the deaths reported to the CPSC were related to exposure to drywall.

Originally, the CPSC provided CDC with all IDIs in which a complainant reported imported
drywall as a concern about a family member’s death and in which the complainant consented to
release contact and health information.  At CDC’s request, the CPSC narrowed the scope of IDIs
to include only those in which the presence of imported drywall was confirmed.  The resulting
list of twelve cases consisted of those from Louisiana (six), Florida (five), and Virginia (one) that
met either the CPSC guidelines (http://www.cpsc.gov/info/drywall/index.html) or the Florida
Department of Health case definition
(http://www.doh.state.fl.us/environment/community/indoor-air/casedefinition.html) for
confirmation of the presence of imported drywall.

CDC obtained permission from the CPSC to contact next of kin by telephone.  CDC staff then
contacted each decedent’s next of kin, explained the purpose of the investigation, and requested
the next of kin’s permission to participate.  CDC attempted to obtain verbal consent from the
next of kin for the CPSC to share its investigation files with public health authorities in the state
where the death occurred.  Consent was obtained from five next of kin in Louisiana (one family declined to participate) and five next of kin in Florida.  In the Virginia case, the decedent’s next
of kin had been in contact with public health authorities, and the CPSC case already had been
referred to the Office of the Chief Medical Examiner when CDC began receiving IDIs from the
CPSC.

In each state, the reviews were conducted by physicians who are health officials with the
appropriate authority and relevant expertise and experience to conduct the reviews.  The
reviewers were asked to use their clinical judgment and expertise in accordance with accepted
standards of practice to determine if the deaths were related to exposure to imported drywall.
Each death was reviewed individually.  A determination was made for each decedent by use of
the available clinical evidence regarding the circumstances of the decedent’s death, contributing
factors, underlying illnesses and health status at the time of death, and past medical history.
Additional clinical or pathology data (i.e., autopsy data) were not collected, and environmental
sampling of decedents’ homes was not included as part of the case review.

The states involved have state-specific procedures and authorities for obtaining medical records
and conducting a public health investigation of a death.  CDC worked with each state to develop
a plan for the clinical case reviews in accordance with the state’s specific procedure and
authority.  In Louisiana, the public health authority responsible for reviewing these cases is the
Louisiana Department of Health and Hospital Services (LDHHS).  In instances in which the
CPSC case files did not contain sufficient medical records and other information relevant to the
review, the LDHHS Office of the State Epidemiologist obtained additional hospitalization
records and vital statistics.

Cases referred to the Florida Department of Health (FLDOH), Division of Environmental Health,
were reviewed by a medical toxicologist.  To obtain other relevant health-related information for
these cases, the FLDOH contacted next of kin to obtain consent for release of medical records.
In Virginia, the Virginia Department of Health, Division of Environmental Epidemiology,
referred the single case to the Office of the Chief Medical Examiner.  Under that office’s
authority, the medical examiner obtained additional records necessary for a review the case.

State Summaries

Below is a summary of state public health findings of the medical record reviews.  Because the
state findings provided to CDC contain personal identifiers and other information considered
confidential, CDC is not including identifying information in this summary of findings.

Summary of Louisiana Medical Record Reviews
The LDDHS reviewed five cases from Louisiana.  These cases consisted of four males and one
female, aged 59–78 at time of death.  All five decedents had multiple long-term, severe,
preexisting chronic health conditions before their deaths.  Four of the persons had heart disease
in addition to such other severe illnesses as cancer, diabetes, and systemic lupus erythematosus;
the fifth person had metastatic cancer and vascular-related diseases.  The conclusion of the
LDDHS review of medical records and other relevant information is that imported drywall was
not a contributing factor in the deaths of these persons.

Summary of Virginia Medical Record Reviews
The state medical examiner reviewed medical records of an 82-year-old person who had chronic
heart disease, acute cholecystitis, and pneumonia before death.  The medical examiner reported
that no clinical evidence existed in the record to link the person’s death to “exposure of
construction materials containing strontium sulfide.”

Summary of Florida Medical Records Reviews
The five cases reviewed by the health official in Florida were for three males and two females,
aged 60–86 at time of death.  All five persons had severe preexisting chronic health conditions at
the time of their deaths.  Four of the persons were diagnosed with cancers (two lung, one
bladder, one laryngeal), and two of these also had chronic obstructive pulmonary disease. The
fifth person had a primary diagnosis of Alzheimer’s disease with other chronic illnesses.  The
conclusion of the health official in all five cases was that no plausible evidence existed to link
deaths with exposure to drywall.

Discussion

Based on the  reviews of the records and available information  by the state public health
authorities exposure to imported drywall was not believed to be a contributing factor in these
deaths.

All the decedents had one or more severe health conditions that were unrelated to imported
drywall.  The majority (9 of 11 decedents) had multiple severe illnesses. Most (7 of 11) had
cancer, and 7 of 11 decedents had cardiac conditions.  In addition, several other severe health
conditions, including renal failure and chronic obstructive pulmonary disease (COPD), existed
among decedents.  Without exception, review of each decedent’s medical records indicated that
the cause of death was a result of primary, and often secondary, preexisting chronic health
conditions unrelated to imported drywall exposure.

This investigation has some limitations.  The reviews were limited to the existing available
clinical information, and the information may not have been complete.  In addition, information
on environmental exposures prior to illness or death (such as the results of indoor air testing of a
decedant’s home) was not available.

However this investigation achieved the objectives of a clinical case review.  Because the
findings come from a case review, they are applicable only to these 11 deaths. The findings
cannot be used to draw broad conclusions about the health impact of residing in or visiting
homes with imported drywall.

Conclusion

In summary, in the judgments of the medical authorities who reviewed these cases, exposure to
imported drywall was not believed to be a contributing factor to these 11 deaths.

Recommendation

Although none of the 11 deaths included in this review were determined to be associated with
exposure to imported drywall, the CPSC should continue to monitor health reports indicating
exposure to imported drywall and request CDC assistance when necessary.

References
(1) U.S. Consumer Product Safety Commission.  Statistical Analysis of the Chemical Screening
of a Small Sample of Unused Chinese and non-Chinese Drywall [online]. 2009. [cited 2010
Dec 6]. Available at URL: http://www.cpsc.gov/info/drywall/TabA.pdf.

(2) U.S. Consumer Product Safety Commission.  CPSC Staff Preliminary Evaluation
of Drywall Chamber Test Results [online]. 2010. [cited 2010 Dec 6].  Available at URL:

http://www.cpsc.gov/info/drywall/chamber0310.pdf.

(3) U.S. Consumer Product Safety Commission.  Indoor Air Study [online]. 2009. [cited 2010
Dec 6].  Available at URL:  http://www.cpsc.gov/info/drywall/TabC.pdf.

(4) Environmental Health and Engineering. Final Report on an Indoor Environmental Quality
Assessment of Residences Containing Chinese Drywall [online]. EH&E Report no. 16512.
2010. [cited 2010 Dec 6].  Available at URL:

http://www.cpsc.gov/info/drywall/51homeStudy.pdf.

(5) Agency for Toxic Substances and Disease Registry.  Toxicological Profile for Hydrogen
Sulfide.  2006. Atlanta, GA.  Available at URL:
http://www.atsdr.cdc.gov/ToxProfiles/tp114.pdf [cited 2010 December 9].

Revenue Procedure 2010-36 enables affected taxpayers to treat damages from corrosive drywall as a casualty loss and provides a ”safe harbor” formula for determining the amount of the loss.

In numerous instances, homeowners with certain imported drywall have reported blackening or corrosion of copper electrical wiring and copper components of household appliances, as well as the presence of sulfur gas odors. In November 2009, the Consumer Product Safety Commission (CPSC) reported that an indoor air study of a sample of 51 homes found a strong association between the problem drywall, levels of hydrogen sulfide in those homes and corrosion of metals in those homes.

Revenue Procedure 2010-36 provides the following relief:

• Individuals who pay to repair damage to their personal residences or household appliances resulting from corrosive drywall may treat the amount paid as a casualty loss in the year of payment.
• Taxpayers who have already filed their income tax return for the year of payment generally have three years to file an amended return and claim the deduction.The amount of a loss that may be claimed depends on whether the taxpayer has a pending claim for reimbursement (or intends to pursue reimbursement) of the loss through property insurance, litigation or otherwise.
• In cases where a taxpayer does not have a pending claim for reimbursement, the taxpayer may claim as a loss all unreimbursed amounts paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances resulting from corrosive drywall.
• If a taxpayer does have a pending claim (or intends to pursue reimbursement), a taxpayer may claim a loss for 75 percent of the unreimbursed amount paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances that resulted from corrosive drywall.

A taxpayer who has been fully reimbursed before filing a return for the year the loss was sustained may not claim a loss. A taxpayer who has a pending claim for reimbursement (or intends to pursue reimbursement) may have income or an additional deduction in subsequent taxable years depending on the actual amount of reimbursement received.

For purposes of this revenue procedure, the term “corrosive drywall” means drywall that is identified as problem drywall under the two step identification method published by the CPSC and the Department of Housing and Urban Development in their interim guidance dated January 28, 2010.

Further details and limitations can be found in Revenue Procedure 2010-36 on IRS.gov.

Seeger Weiss LLP announces that founding member Christopher A. Seeger, as a part of a negotiating team that included Lead Counsel Arnold Levin of Levin Fishbein Sedran & Berman, and Liaison Counsel Russ M. Herman of Herman, Herman, Katz & Cotlar, LLP, has obtained a breakthrough settlement to remediate homes affected by Chinese drywall. The agreement was reached with several key defendants including Knauf Plasterboard Tianjin (KPT), builders, drywall suppliers and their insurers including Interior/Exterior Building Supply, Banner Supply Co., the Louisiana Homebuilders Indemnity Trust, QBE Insurance Group, Chartis and State Farm Insurance, and other Knauf entities. Knauf in partnership with builders, suppliers and insurers, will fund a demonstration remediation program, which will facilitate the removal of KPT drywall from up to 300 homes in Alabama, Mississippi, Louisiana and Florida. If successful, it is expected that this pilot program will be expanded to remediate thousands of homes with KPT drywall.

Seeger Weiss has served at the forefront of the Chinese Drywall litigation and was Trial Counsel in two bellwether cases this year: Michelle Germano, et al. v. Taishan Gypsum Co., Ltd., f/k/a Shandong Taihe Dongxin, Co., Ltd., et al., which resulted in a verdict of $2.6 million and which was the first of thousands of drywall claims to come to court; and Tatum B. Hernandez, et al. v. Knauf Plasterboard (Tianjin) Co., Ltd., et al., which resulted in a verdict of $164,000, and which followed the first case in less than a month. U.S. District Judge Eldon Fallon in the Eastern District of Louisiana appointed Christopher Seeger to the Plaintiffs’ Steering Committee in the Chinese-Manufactured Drywall Products Liability Litigation (MDL No. 2047) in September 2009. Seeger also chairs the Trial Committee, which oversees trial teams for all pending Chinese drywall actions.

The demonstration program applies to homes which contain all, or substantially all, KPT drywall. The program will provide:

• * removal of the drywall;
• * replacement of all electrical wiring, including switches and receptacles;
• * replacement of fire safety and home security equipment;
• * replacement of fixtures damaged by the problem drywall;
• * restoration of the home to the same construction quality and finishes that existed prior to the start of the remediation work;
• * compensation to the homeowner for alternative living costs during the remediation, moving and storage and personal property damage;
• * the reservation of rights for bodily injury;
• * attorneys fees and expenses to be negotiated by the PSC and KPT and to be paid by KPT.

As outlined in the settlement, KPT will retain and supervise contractors to do the work on a cost-effective basis. The completed homes will be inspected by environmental engineers, who will certify to the homeowner that their home is free of problem drywall odors and contamination.

Chinese gypsum board was used by many builders in recent years as a low-cost alternative to American-made products. Many of the damaged homes are in Florida, Virginia and throughout the Gulf region, where builders used the Chinese wallboard to construct new homes following Hurricane Katrina and other storms, and throughout the housing bubble. In the past several years more than 7,000 U.S. homeowners have filed similar suits alleging that noxious sulfuric fumes from the defective drywall have caused extensive property damage to their homes, including corrosion of plumbing, electrical wiring, and appliances. These outcomes will continue to have a huge impact on drywall litigation pending around the country.

“These initial decisions in Louisiana are hugely important for thousands of homeowners who have been living with the poltergeist effects caused by this defective material in their midst. The high concentrations of sulfur, strontium, and other toxins released by this inferior drywall has permeated their residences, destroyed their property,” said Mr. Seeger.

“This new guidance from the IRS is an important step forward for thousands of American families whose homes have been contaminated with Chinese drywall,” said Senator Webb. “I have heard directly from my constituents about the emotional, physical, and financial hardship they continue to face as they struggle to maintain payments on houses that have been rendered uninhabitable, while also paying for a place to live and often dealing with corresponding health issues. I will continue working to ensure that those affected receive the necessary federal attention.”

The new IRS guidance is available online here: http://www.irs.gov/newsroom/article/0,,id=228402,00.html

Since 2005, more than 550 million pounds of drywall have been imported to the United States from China. In the last 25 months, more than 3,500 cases in 38 states, as well as the District of Columbia and Puerto Rico, have reported noxious fumes and excessive corrosion emanating from this tainted drywall. The wall board also is suspected of causing serious metal corrosion in air conditioning units, copper pipes and electrical wiring, creating further dangerous outcomes. In addition, a number of homeowners have reported health issues that appear to be related to the drywall, including bloody noses, headaches, insomnia and skin irritation. Many of these homeowners are seeing their property values decline, and some have even moved out of their homes and now are force to pay two housing bills.

Today’s announcement follows months of efforts by Senator Webb on behalf of those affected by the tainted Chinese drywall. Since April 2009, Senator Webb has pushed constituent casework for individual reports, contacted seven federal agencies requesting disaster declarations, casualty loss tax deductions, expedited tests and evaluations, and mortgage assistance, and requested that President Obama raise the issue with President Hu Jintao during his visit to the People’s Republic of China. In addition, Senator Webb’s regional offices have worked to collect and provide information to the Consumer Product Safety Commission CPSC and have worked with local financial institutions to provide relief for Virginia’s drywall victims.

The company, WCI Communities, was so concerned that it started planning to tear out the material and rebuild the houses. But it never disclosed the problem to the bulk of its customers or to government authorities.

Read full article via Tainted Chinese Drywall – ProPublica.

“During my visit to Newport News, I saw firsthand the situation facing these homeowners and listened to them about the issues they are dealing with,” said Secretary Cheng. “As a result of an idea put forward by the impacted citizens, I have been working with relevant state agencies since that time and this task force is an extension of our efforts so that we have an opportunity to formulate a state response to the federal government.”

“While we are not certain of an outcome from the federal government, it is important that we seek ways to best inform the citizens impacted and to hear from all interested stakeholders on the defective dry wall issue,” said Secretary Cheng.

“Ever since the day I first became involved with the residents who have lost their homes to this dry wall disaster, I have been amazed that no one has brought them any relief or given them a voice to bring attention to the plight.” said Delegate Glen Oder. “The speed of the Office of the Secretary of Commerce and Trade to set up this Task Force gives me great hope that this Task Force will move quickly to help these citizens find relief for their dire circumstances.”

“Homeowners with Chinese dry wall were pursing the American dream and ended up with a nightmare. I asked Secretary Cheng to include them and I’m pleased the Task Force will have homeowners who have been so tragically affected,” said Senator John Miller. “I look forward to working to bring needed relief to these innocent victims and making sure it does not happen to any more homeowners in Virginia.”

Members of the state taskforce include:

• Jim Cheng, Secretary of Commerce and Trade – Chairman
• Senator John Miller
• Delegate Glenn Oder
• Delegate Bob Purkey
• Terrie Suit, Assistant to the Governor for Commonwealth Preparedness
• Bill Shelton, Director, Virginia Housing and Community Development
• Susan Dewey, Virginia Housing Development Authority
• Michael Cline, Director, Virginia Department of Emergency Management
• Dr. Karen Remley, Commissioner, Department of Health
• Dr. Diane Helentjaris, Deputy State Epidemiologist, Department of Health
• Dr. Dwight Flamia, State Toxicologist, Department of Health
• Dave Irvin, Attorney General’s Office
• Mary Bannister, Deputy Commissioner, Bureau of Insurance, State Corporation Commission
• Three Citizens homeowners affected by defective drywall

The taskforce will hold meetings and set up workgroups to address the various components of concern to the homeowners that will include input from all interested parties. Members of Virginia’s congressional delegation with affected constituents will be invited and encouraged to participate. All meetings will be open to the public.

In Virginia, a number of agencies have been following this issue and monitoring federal action. Several actions have already been initiated. The Department of Health has been providing information on potential health concerns and has posted a frequently asked questions notice to its website. The Department of Housing and Community Development has issued guidance to local building officials on how the issue can be handled through the Uniform Statewide Building Code. T

via Governor Robert F. McDonnell: News.

Findings
EH&E compared 41 “complaint” homes in five states selected from CPSC’s consumer incident report database, with 10 noncomplaint homes built around the same time in the same area as the complaint homes. Homes were sampled between July and September 2009.
The EH&E findings are that hydrogen sulfide gas is the essential component that causes copper and silver sulfide corrosion found in the complaint homes. Other factors, including air exchange rates, formaldehyde and other air contaminants contribute to the reported problems.
In ways still to be determined, hydrogen sulfide gas is being created in homes built with Chinese drywall. Earlier studies found large amounts of elemental sulfur in the Chinese drywall. CPSC is investigating drywall from other sources that may mimic the problems found with Chinese drywall. CPSC is meeting with drywall manufacturers and others who are studying this issue to take their findings into consideration. EH&E exposed copper and silver test strips, known as coupons, in homes for a period of about two weeks. The coupons showed significantly higher rates of corrosion in complaint homes than in the control homes. The dominant species of corrosion on the
coupons was copper sulfide and silver sulfide, as determined by additional laboratory tests. Visual inspection and evaluation of ground wire corrosion also revealed statistically significant greater ground wire corrosion in complaint homes compared to non-complaint homes. The EH&E study also found that by using hand-held x-ray fluorescence (XRF) and
Fourier Transform Infrared (FTIR) instruments, they were able to detect markers that could identify Chinese-made dry wall at a sheet-by-sheet level.
While drywall-related corrosion is clearly evident, long term safety effects are still under investigation. Like the EH&E study, initial reports available today from SNL and NIST show copper and silver sulfide corrosion on samples of metal taken from homes with problem drywall. These ongoing investigations will help the CPSC identify the nexus of problem drywall and long term safety issues. In addition, the EH&E study found elevated formaldehyde readings in both the control and complaint homes. This is typical for new, more air-tight homes due to items such as cabinets and carpets which emit formaldehyde. Both formaldehyde and hydrogen sulfide are known irritants at sufficiently high levels. The concentrations measured in this study were below those levels. Investigators believe that the additive or synergistic effects of
these and other compounds in the subject homes could cause irritant effects evident in the homes.

Next Steps
First, CPSC continues to search for homes exhibiting the corrosion and health effects under study. In addition to a direct call to consumers, CPSC is contacting governors of all states, all territories and the District of Columbia, to ensure that all homes with these problems have been reported to CPSC. Second, the Interagency Task Force established an Identification and Remediation Protocol Team of scientists and engineers. This Team will use the results of the EH&E study and other information to design a cost-effective screening protocol to identify homes with this problem. Professional air sample testing, and destructive testing of drywall can carry high costs. The Protocol Team will develop quick, cost-efficient evaluation methods to identify homes with these problems. The Protocol Team will also look at remediation protocols, to see what cost-efficiency improvements to current remediation practices, if any, may be available, and what guidance should be issued on doing the work safely. Third, investigations currently underway by Lawrence Berkeley Laboratories, SNL and NIST and others will continue toward identifying additional information on any possible long-term health and safety issues.
The Identification and Remediation Protocol Team will use information from the EH&E study and other information to begin evaluating remediation protocols. Homes that have undergone remediation are expected to yield valuable information that will be helpful for homeowners.
The Interagency Task Force is actively talking to Congressional and White House officials about the best approaches to design and fund both the Identification and Remediation efforts.

Other Ongoing Efforts
The Interagency Task Force, working with U.S. Customs and Border Protection, is monitoring imports of possible Chinese drywall. We believe that no new Chinese drywall has entered the United States in 2009. Owners of known U.S. inventories of Chinese drywall have been notified of this ongoing investigation. They have indicated that the drywall boards will not be sold. Further, CPSC has secured the cooperation of the Chinese Government to help identify the sources and causes of this problem. CPSC is working with an ASTM committee that has just initiated discussions on the formulation of a proposed new standard on inspection of drywall for air quality issues.

Recommendations to Affected Homeowners
To date, CPSC has received more than 2000 reports from 32 states, the District of Columbia and Puerto Rico from consumers and homeowners concerned about problem drywall in their homes. Homeowners who believe they may have problem drywall should immediately report to CPSC by calling 800-638-2772 or logging on to www.CPSC.gov. Hearing- or speech challenged individuals may access the phone number through TTY by calling the toll-free
Federal Relay Service at 800-877-8339. Federal and state health experts suggest these steps to improve indoor air quality and to reduce exposure to substances that can cause health concerns:

• Open windows as much as possible to let in fresh air.
• Keep the temperature inside homes at the lowest comfortable setting.
• Run the air conditioner or dehumidifier.
• Also, spend as much time outdoors in fresh air as possible.
• Do not smoke, and especially do not smoke indoors. Cigarette smoke contains, among other contaminants, formaldehyde.

To read the technical research reports or for more information, log on to
www.DrywallResponse.gov.