Four RV manufacturers were put on the spot this month in D.C. The House Oversight Committee subpoenaed CEO's from Gulf Stream, Forest River, Keystone, and Pilgrim to explain questionable performance in supplying emergency housing to Katrina victims. At the core of the questioning was formaldehyde — a chemical that can cause serious health problems to humans. Congressman Henry Waxman's committee wanted to know why dangerous levels of the chemical were found in thousands of RVs delivered to FEMA.

As we watched the proceedings live on the government website, we were intrigued that, by far, the majority of the questioning was directed at Jim Shea, Chairman of Gulf Stream Coach. Only a small percentage of the questions were directed to Pete Liegl of Forest River, and virtually none to the heads of Keystone and Pilgrim International.

After reading the analysis of the data supplied to the committee prior to the hearing, it became apparent why Mr. Shea was more heavily questioned. Not only was Gulf Stream directly solicited by FEMA, but they supplied the largest number of trailers of any of the manufacturers. Some of their trailers also tested highest for indoor formaldehyde levels — as much as 590 parts per billion — well above any level considered "safe" by any of the testing agencies. Here are a few highlights from the documented evidence:

1) Gulf Stream units tested by FEMA and the CDC had the highest formaldehyde levels of any manufacturer's product. CDC results for July, 2008 showed that 56% of their trailers tested over 100 parts per billion. From the accumulated advice of experts, the air inside these trailers presented a health hazard to the occupants.The CDC also deemed it likely that levels would have been even higher when the trailers were first occupied and during warm weather.

2) Gulf Stream's own testing revealed considerably higher levels — up to 590 parts per billion — in some unoccupied trailers scheduled for delivery than in already-occupied units which also tested high.

3) Gulf Stream did not share their facts and figures with FEMA concerning the specific unoccupied trailers with high formaldehyde levels, although they did make an offer to perform mutual investigation into the matter in partnership with FEMA — an offer that was so carefully worded that it required six weeks to draft. The letter was subsequently ignored by the federal agency.

4) Former employees of Gulf Stream interviewed by the committee stated that some of the wood products used in the construction of the FEMA trailers had an odor that was "just overwhelming", were of low quality and "very sticky." One employee stated that after 5 or 10 minutes in one of the newly-built trailers, "your eyes were watering and your nose was burning."

5) Earnings of the two co-presidents of Gulf Stream more than doubled in 2006 as a result of the FEMA requisition.

6) Gulf Stream's production line worked under sweatshop conditions to build 25,000 trailers for FEMA.

We found it extremely interesting that CEO Jim Shea of Gulf Stream testified that they received an "urgent" order from FEMA for 25,000 trailers two days before Katrina struck the Gulf Coast. (This is a mystery that we haven't yet solved.) At the same time Forest River's CEO, Pete Liegl, testified that FEMA asked Forest River for 35,000 trailers, but they could only produce 5,000 that met their own workmanship standards in the time allotted.

Although all the manufacturers present tried to avert responsibility by referring to the lack of agreement among investigating agencies as to what is a "safe" level of formaldehyde inside a trailer, some questions surfaced. Examples of questions left unresolved were:

1) Where did the offending wood products come from? Asia? Or from the state of New York, as Shea asserted on behalf of Gulf Stream? What about the other manufacturers?

2) Why didn't Gulf Stream share the results of their "informal" air quality screening of both occupied and unoccupied trailers with FEMA? When asked this question, Shea simply stated it was irrelevant. Was the danger to current and future residents of Gulf Stream's Katrina trailers irrelevant?

3) And, what is the status of the thousands of trailers that were never used? Are they destined for scrap, or will some of those that tested high for formaldehyde and were unreported by Gulf Stream be sold to unsuspecting buyers? These questions, and others, languished at the hearing and will probably languish until all is forgotten.

In the end, we were disappointed that the hearing produced no firm plan or time line for setting a Federal formaldehyde standard, although it was agreed that something needs to be done. The proceedings resulted in no more than a slap on the hand to the manufacturers. We were left stunned that, when all was said and done, nothing was genuinely resolved.

Nevertheless, Gulf Stream, Forest River, Keystone, Pilgrim, and a few other manufacturers will soon be facing lawsuits filed by Katrina victims who claim formaldehyde fumes in their trailers caused chronic illness.


Editor's Note: Undoubtedly, the formaldehyde scandal has hurt trailer manufacturers, who have already been badly scarred by high gas prices and the general economic downturn. Gulf Stream claims its products now adhere to the CARB standards for indoor air quality. By the end of 2008, all RVIA members must follow suit. Pilgrim is experimenting with new building materials that contains no formaldehyde. After years of denial in the ultra-conservative RV industry, innovation is finally in the wind. Can they turn things around? Let's hope so.