President Obama signed a new law this month that limits the amount of formaldehyde, a chemical linked to cancer and respiratory problems, thats allowed in wood products.

The law will likely result in more eco-friendly homes but more expensive furniture and cabinetry, reports USA TODAY colleague Jayne ODonnell.

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Its also likely, she says, to increase consumer awareness of a little-known chemical thats widely used in building materials such as the government-provided trailers for victims of Hurricane Katrina. The trailers were banned because of breathing problems caused by formaldehyde in the walls, ceilings and cabinets.

"Were hearing from suppliers of particle board that the costs will increase, and thats likely to be passed along," Andy Counts, CEO of the American Home Furnishings Alliance, tells USA TODAY. His groups members make about half the furniture sold in the U.S. The story adds:

Some Chinese plywood, also used in low-priced furniture, also can contain high levels of formaldehyde to compensate for excessive moisture during production. Domestic hardwood plywood, considered to be among the highest-quality materials available to make furniture and cabinets, is dried using costlier techniques that eliminate the need for glue containing formaldehyde to bond the plies.

The new federal law is based on Californias standard limiting the formaldehyde in wood, and follows years of debate about the risks associated with formaldehyde and the ability of industry to reduce its reliance on it.

Furniture industry officials have been bracing for the new law and were relieved the levels required matched the California law....

Counts says hes heard estimates that prices for plywood and particle board could increase from 3% to 15%, but notes that this wood is only a small part of the total cost for a piece of finished furniture.