FOR IMMEDIATE RELEASE
New York State Bill Threatens Supply Chains, Jobs, Affordable Housing, and Worsens Building Material Prices, Warns LBM Industry
Rensselaer NY, Dec. 7, 2023 – The lumber and building materials (LBM) industry in New York State is announcing staunch opposition to Senate Bill 4859-A/Assembly Bill 5682-A, The New York Tropical Deforestation-Free Procurement Act. While the bill’s objective to prevent the state from contributing to tropical deforestation is commendable, industry leaders caution that its unintended consequences could severely impact supply chains, disrupt good-paying jobs, worsen the affordable housing crisis, and further exacerbate the skyrocketing prices of building materials.
The American Forest & Paper Association (AF&PA), the Empire State Forest Products Association (ESFPA), and coalition partners, including the Northeastern Retail Lumber Association (NRLA), have expressed serious concerns over the potential repercussions of the legislation. The $22.9 billion dollar industry, responsible for nearly 100,000 jobs in New York, fears that the bill’s provisions could have far-reaching negative effects.
Impact on Jobs and Affordable Housing
The certification process, if implemented, could lead to a significant burden on businesses, potentially impacting the availability of well-paying jobs within the industry. Moreover, the additional administrative complexities introduced by the bill might result in increased costs, potentially affecting the affordability of construction and housing in New York State.
Worsening Building Material Prices
Dana Schnipper, Chair of the NRLA Legislative Committee, commented on the issue, stating, “As we grapple with the unprecedented surge in building material prices, this bill comes at a time when our industry is already under immense pressure. The additional certification requirements and potential disruptions to the supply chain could further escalate costs for consumers, making housing even less affordable.”
Challenges to Supply Chains
The bill’s certification requirements, which apply to a broad range of products regardless of their tropical origin, threaten to disrupt the intricate supply chains of the LBM industry. Contractors and subcontractors alike would be burdened with ensuring compliance, creating a complex and potentially unmanageable web of certification requirements.
Noble Goal, Poorly Executed System
While the industry acknowledges the noble goal of preventing tropical deforestation, it argues that the bill does not provide a well-thought-out system to achieve these aims. The legislation’s ambiguous terms and definitions, coupled with the lack of recognition for internationally accepted certification programs, raise concerns about practical implementation. “As a stakeholder deeply invested in New York’s economy, I recognize the noble intent of the bill, but we must ensure that the means to achieve these goals are fair, practical, and supportive of our local businesses.” Said Dana Schnipper.
Industry Calls for Reconsideration
The AF&PA, ESFPA, NRLA, and their coalition partners have respectfully urged Governor Kathy Hochul to reconsider and veto S.4859-A/A.5682-A. They emphasize the need for a collaborative approach that addresses environmental concerns while safeguarding the livelihoods of thousands of workers, the affordability of housing for New York residents, and mitigating the impact on building material prices.
For additional information see supporting documents: Letter to Governor from the Industry
For further information, please contact:
Francis Palasieski
Director, Government Affairs
Northeastern Retail Lumber Association
fpalasieski@nrla.org | 518-286-1010