Proposal:

Amend Rule 1113 - Architectural Coatings

Synopsis:

The proposed amendment will clarify rule requirements, decrease VOC limits for clear and pigmented lacquers, flat coatings, traffic coatings, and multi-color coatings, and increase VOC limits for fire-proofing exterior coatings, japans/faux finishing coatings, and magnesite cement coatings to reflect current technology. The amendments will also implement a portion of the AQMP Control Measure for architectural coatings. establish interim VOC limits, achieving a 45% VOC emission reduction compared to current limits. 1998, except topcoats for furniture/cabinets must comply by January 1997; and topcoats, primers, sealers, and undercoats for general wood products must comply by the current July 1996 dateChoices are provided for facilities to use waterborne topcoats or topcoats and sealers formulated with exempt compounds such as acetone. The final limits are proposed to be delayed until 2005 to allow time for low-VOC coating technology improvement and for wood coaters to adjust to low-VOC coatingsare proposed for topcoats, sealers, primers, and undercoats for wood product categories whose final limits will be moved to July 1998. Amendments also include compliance flexibility.

Committee:

Stationary Source

Recommended Action:

1. Certify the Final Subsequent Environmental Assessment for Proposed Amended Rule 1113 - Architectural Coatings; and

2. Amend
Rule 1113 - Architectural Coatings.

James M. Lents, Ph.D.
Executive Officer

Background

Rule 1113 is applicable to manufacturers, distributors, and end-users of architectural and industrial maintenance (AIM) coatings. It was first adopted in 1977, and has un-dergone numerous amendments. The purpose of the rule is to reduce VOC emissions from the use of AIM coatings, primarily by placing VOC limits on various coating categories.

On August 21, 1990, the Superior Court of Los Angeles County entered a judgment against AQMD in the case Dunn-Edwards Corporation, et al. vs. SCAQMD, et al. The judgment denied in part, and granted in part, the petition for writ of mandate seeking to overturn certain amendments made in February, 1990. As a result, the AQMD was prevented from enforcing the lower VOC limits for aerosol coatings, industrial maintenance coatings, lacquers, quick-dry enamels, and quick-dry primers, sealers and undercoaters. This judgment impacted approximately 4.5 tons per day (tpd) of VOC emissions. The AQMD has contracted Eastern Michigan University to further study the impacted coating categories, with the exception of lacquers. Other amendments adopted in February 1990 and prior rule provisions remained in effect. The proposed amendments will formally reinstate the limits as existing prior to February 1990, except for lacquers, which is again proposed to be lowered.

The proposed amendments will lower the VOC limits for some coating categories not impacted by the court judgment, with the exception of lacquers. The proposed lower VOC limits are all based on the concept of reformulation of existing coatings, either with water, acetone, or resin technology. The proposed amendments will increase the VOC limit for coating categories that have been under variance for the past three years, and address issues raised since the September 6, 1991 amendments. These include addition of and modification to some definitions, synchronizing final compliance dates for coating categories, and updating the analytical test methods.

As a part of this rulemaking effort, a complete technology and environmental assessment was conducted for all coatings, including lacquers, to comply with the court judgment. In addition, as part of the rulemaking activities for Rule 1136 - Wood Products Coatings, this coating category was extensively studied and received support from industry for the proposed VOC limits in a manufacturing setting. Staff conducted a survey which showed that industry uses the same types of lacquers in the field as in a manufacturing setting.

Proposal

The following VOC limits are proposed to be lowered:

Flat Coatings

Lower the VOC limit for flats from 250 g/l to 100 g/l, effective July 1, 2001 and further reduce from 100 g/l to 50 g/l, effective July 1, 2008. Conduct a technology assessment for feasibility by July 1, 2000 for the 100 g/l limit and by July 1, 2007 for the 50 g/l limit. Include an averaging provision to allow manufacturers to average the VOC content of their flat coatings, on a sales weighted basis upon plan submittal and approval. Appendix A of Proposed Amended Rule (PAR) 1113 contains sections on the averaging, operational plan and reconciliation plan content requirements, modification or cancellation of the plan, and plan approval timeframes.

Lacquers

Establish the VOC limit for lacquer at 680 g/l, then lower it to 550 g/l, effective January 1, 1998, and to 275 g/l, effective January 1, 2005. Conduct a technology assessment for feasibility of the 275 g/l limit by January 1, 2004. Include an exemption for lacquers to add up to 10% retarder during cool, humid days.

Multi-Color Coatings

Lower the VOC limit for multi-color coatings from 420 g/l to 250 g/l, effective January 1, 1998.

Traffic Coatings

Lower the VOC limit for traffic coatings from 250 g/l to 150 g/l, effective January 1, 1998.

Staff recommends deletion, consolidation, and addition of definitions, as well as reinstatement of VOC limits and definitions pursuant to the Superior Court judgment. These include industrial maintenance primers and topcoats at 420 g/l, quick-dry enamels at 400 g/l, and a definition and exemption for quick-dry primers, sealers, and undercoaters. The exemption for quick-dry primers, sealers and undercoaters will continue as a result of the Superior Court judgment, provided the manufacturer continues to submit to the Executive Officer annual reports of those coatings sold in the AQMD.

Staff recommends to increase the VOC limits for certain specialty coating categories that are currently under variance because they cannot comply with the current VOC limits. These include exterior fire-proofing coatings, magnesite cement coatings, and japans/faux finishing coatings.

In addition, staff has reorganized the Table of Standards coating categories into alphabetical order, eliminated coating categories that have been at the default 250 g/l limit of paragraph (c)(1) for at least three years, and consolidated similar categories with the same VOC limit.

Lowering the VOC limits for flats, traffic, multi-color, and lacquers will achieve an emission reduction of 10.5 tpd. Partially offsetting these reductions will be an increase of 0.14 tpd for japans, magnesite, and fire-proofing coatings; however, these coatings have been under variances for the past several years, therefore actual emissions will not increase.

Policy Issues

Industry members, mainly manufacturers and contractors, provided several suggestions and introduced issues that they claimed need additional research. The Environmental Legislative & Regulatory Advocacy Program (EL RAP) has seven main issues, which include: more thickness, more thinning, more priming, more topcoats, more touch-ups and repair work, more frequent recoating, and more reactivity. Due to these seven issues, some manufacturers claim that coatings with higher VOC content will be substituted for the proposed lower VOC content coatings resulting in an increase in VOC emissions. They also claim a larger amount of low-VOC coatings will be used, resulting in an actual increase in VOC emissions. Additionally, a few manufacturers expressed concern regard-ing the fire hazards associated with acetone-based nitrocellulose lacquers. Lastly, manu-facturers expressed concern regarding the lack of sufficient time necessary for research and development of the reformulated coatings.

The seven issues focus on two main points. The first six issues all state that the new formulations, either solvent-based or waterborne, result in more coating use and an overall increase in VOC emissions over a period of time. The seventh issue involves the reactivity of solvents used in waterborne coatings. EL RAP contends that these result in more ozone formation as compared to solvents in solvent-based formulations.

In response to these concerns, the staff analyzed each of the specific issues raised by EL RAP and either addressed them through analysis in the attached Final Subsequent Environmental Assessment (SEA) or through proposed rule amendments.

With regards to additional thinning, the focus of the proposed amendments is limited to coatings that are strictly waterborne formulations or based on acetone as a substitute solvent, thereby eliminating any concerns of thinning the coating, as supplied, with VOC.

To examine the issues of thickness, priming, topcoats, touch-up and repair, and frequent recoating, staff used coating coverage estimates, typical dry mil thickness, recommended priming, and estimated life of coating, listed on container labels and technical data sheets or provided by manufacturers during personal interviews and phone surveys. A thorough analysis comparing emissions from the proposed lower-VOC content coatings with emissions from potential substitute coatings clearly shows an overall VOC emission reduction as a result of the proposed amendments. An extensive discussion regarding the feasibility of reactivity-based ozone control policy development is included in the attached staff report to address the seventh issue.

To date, manufacturers have not provided data to support the claim that the lower VOC coatings could cause an increase in emissions. As a part of the current rulemaking efforts, staff has requested life-cycle studies that may have been conducted over the past seven years, but none were provided.

The Final SEA also analyzes any additional hazards associated with acetone usage. Staff interviewed fire chiefs from various fire departments, and received follow-up letters, which all indicate that explosion or fire hazards associated with acetone use are no greater than hazards associated with solvents currently used in coating formulations, especially nitrocellulose lacquers. In contrast, acetone is significantly less toxic than the solvents found in conventional nitrocellulose lacquers.

Staff has proposed several amendments to Rule 1113 to address concerns raised relative to sufficient time to research, develop, and market compliant coatings. The proposed amendments provide a five-year and a twelve-year time period for future compliance limits for flats and up to an eight-year time period for lacquers, as well as an averaging provision for the flat coatings that would allow manufacturers to offset non-compliant flat coatings with super-compliant flat coatings. The AQMD has also committed to a technology assessment one year prior to the future rule limits for both flats and lacquers.

AQMP and Legal Mandates

The 1994 AQMP estimates increased AIM emissions (due to population growth) at 67.1 tpd in 1994, growing to 72.1 tpd by the year 2000 and 83.0 tpd by the year 2010, without additional AIM regulations. If left unchecked, AIM coating emissions alone would account for 26 % of the allowed VOC emissions in 2010, up from 6% of total VOC emissions in 1994. Therefore, the 1994 AQMP has a specific control measure (CTS-07) to reduce AIM VOC emissions by 75 % by the year 2010. This 62 tpd emission reduction is the largest of all short and intermediate term control measures, larger even than the earlier proposed VOC RECLAIM program.

Installation of air pollution control equipment is not feasible for reducing AIM emissions, thereby leaving coating reformulation as the only possible means to achieve the required reductions. The current proposal emphasizes reformulation of existing coatings, primarily by substituting acetone for other, more toxic and reactive solvents, or by using technologically-innovative resins that require a small amount of solvent for coalescence.

These proposed Rule 1113 amendments are a small portion of the 1994 AQMP because they include lowering the VOC limits for only a few of the coating categories discussed in the control measure. The proposed amendments will only reduce AIM emissions by 17.5%, which is only a small part of the 75% emission reduction that will eventually be required from AIM coatings.

An extensive study is currently being conducted to assess the possibility of further emission reductions. This study may lead to a future rule amendment in 1997.

CEQA

Pursuant to the CEQA and AQMD Rule 110 - Rule Adoption Procedures to Assure Protection and Enhancement of the Environment, AQMD prepared a Draft SEA for the proposed amendments to Rule 1113. The Draft SEA was circulated for a 45-day public review and comment period which ended on August 16, 1996. All comments received on the Draft SEA and responses to comments are incorporated into the Final SEA for the proposed project. No comments required substantive changes to the document.

Socioeconomic Analysis

Staff has thoroughly evaluated the cost of compliance with the proposed amendments, which is included as Appendix H of the final staff report.

Implementation Plan

A notice will be sent to all AIM coating manufacturers.

Resource Impact

Existing AQMD resources will be sufficient to implement the proposed changes to this rule with minimal impact on the budget.

Due to the size of the final Subsequent Environmental Assessment (SEA), it is not available on the AQMD's web site. A copy of the SEA may be obtained from the Public Information Center, located at AQMD headquarters, 21865 East Copley Drive, Diamond Bar, CA, or by contacting Mr. Darren Stroud at 909-396-2526

Attachments
Summary of Proposed Amendment
Rule Development Process
Key Contacts
Key Issues and Responses