BOARD MEETING DATE: June 13, 1997 AGENDA NO. 39


Proposal:

Amend Rule 102 - Definition of Terms,
Rule 1106.1 - Pleasure Craft Coating Operations,
Rule 1151 - Motor Vehicle and Mobile Equipment
Non-Assembly Line Coating Operations,
Rule 1171 - Solvent Cleaning Operations, and
Rule 1302 - Definitions (New Source Review)

Synopsis:

Proposed amendments add to the "Exempt Compound" definition in Rule 102 tetrachloroethylene (perchloroethylene), 3,3-dichloro-1,1,1,2,2,-pentafluoropropane (HCFC 225ca), 1,3-dichloro-1,1,2,2,3-pentafluoropropane (HCFC 225cb) and 1,1,1,2,3,4,4,5,5,5-decafluoropentane (HFC-43-10mee). Perchloroethylene is proposed to be added as a Group II Exempt Compound. The other three compounds are proposed to be added to the list of Group I Exempt Compounds. The proposed amendments will also allow the use of cyclic branched, or linear, completely methylated siloxanes (VMS) and parachlorobenzotrifluoride (PCBTF), currently listed as Group II Exempt Compounds, and perchloroethylene, in operations regulated pursuant to Rules 1106.1, 1151, and 1171. Other definitions were also removed from Rules 1171 and 1302 and referred to in Rule 102.

Committee:

Stationary Source Committee, May 23, 1997, reviewed.

Recommended Action:

Amend Rule 102 - Definition of Terms,
Rule 1106.1 - Pleasure Craft Coating Operations,
Rule 1151 - Motor Vehicle and Mobile Equipment Non-Assembly Line Coating Operations,
Rule 1171 - Solvent Cleaning Operations, and
Rule 1302 - Definitions (New Source Review).

James M. Lents, Ph.D.
Executive Officer


Background

U. S. EPA has excluded perchloroethylene, HCFC 225ca, HCFC 225cb and HFC-43-10mee from the federal definition of VOC. The exclusion for perchloroethylene was effective March 8, 1996. [ 61 Federal Register 4588 / Vol. 61 No. 26/ Wednesday, February 7, 1996 / Rules and Regulations ] The exclusion for HCFC 225ca, HCFC 225cb and HFC-43-10mee was effective November 7, 1996. [ 61 Federal Register 52847 / Vol. 61. No. 196 / Tuesday, October 8, 1996 / Rules and Regulations] EPA excluded these compounds from the federal VOC definition on the basis that they have negligible photochemical reactivity. EPA’s actions revised the VOC definition for purposes of preparing SIPs to attain and maintain the national ambient air quality standards (NAAQS) for ozone under Title I of the Clean Air Act (Act).

The AQMD accepts EPA’s findings regarding the photochemical reactivity of these compounds. Therefore, AQMD proposes to list the aforementioned compounds as "exempt compounds" relative to the definition of VOC. This action by AQMD does not limit AQMD’s ability to regulate these compounds, as appropriate, under any other rule or regulation. For example, AQMD will continue to regulate perchloroethylene as a carcinogenic air contaminant under Rule 1402 - Control of Toxic Air Contaminants from Existing Sources. EPA has also promulgated NESHAPs for the control of perchloroethylene from dry cleaners and degreasers pursuant to Title III of the Act.

Proposal

The proposed amendments to Rule 102 add perchloroethylene, HCFC 225ca, HCFC 225cb, and HFC 43-10mee to the list of exempt compounds. Perchloroethylene is proposed to be added as a Group II Exempt Compound with an effective date of December 2, 1997. This is the date on which EPA’s NESHAP will start to control perchloroethylene emissions from existing degreasers. The other three compounds are being added as Group I Exempt Compounds effective the date of adoption. Furthermore, two additional definitions are being added to Rule 102: "Clean Air Solvent" and "Ozone Depleting Compounds." These two definitions are being deleted from Rules 1171 and 1302, respectively, and consolidated in Rule 102. The transfer of these definitions is an administrative action and does not change the meaning of these terms.

Cyclic branched, or linear, completely methylated siloxanes (VMS) and parachlorobenzotrifluoride (PCBTF) were incorporated as Group II Exempt Compounds as part of the November 1995 amendments to Rule 102. The placement of these two compounds under Group II restricted their use in operations regulated by Rule 1106.1, 1151, and 1171. The restriction in Rule 1171 was removed as part of the September 1996 amendments to Rule 1171. The proposed amendments would allow the use of VMS and PCBTF in operations regulated by Rules 1106.1 and 1151. Furthermore, the proposed amendments would also allow the use of perchloroethylene in operations regulated by Rules 1106.1, 1151, and 1171.

Policy Issues

The Halogenated Solvents Industry Alliance, Dow Corning Corporation, and Occidental Chemical Corporation do not support the AQMD’s classification of exempt compounds. In their opinion, the classification of exempt compounds under Group I and Group II is confusing and inconsistent with the California Health and Safety Code finding requirements for clarity, consistency, and non-duplication. Specifically, these chemical manufacturers maintain that AQMD is placing an implicit warning that additional regulatory action is to be taken on Group II compounds. Furthermore, they argue that AQMD’s actions bypass the California Environmental Protection Agency Office of Health Hazard and Environmental Assessment’s scientific assessment process.

The Group II Exempt Compounds category was initially developed to list ozone depleting compounds (ODC). Later this category evolved to include compounds for which a warning of future regulatory action may be warranted. This category was developed as part of the Board’s policy on ODCs and toxic compounds. AQMD staff disagrees that the existing Group II category is inconsistent with California Health and Safety Code requirements, and believes that a simple warning regarding the use of toxic compounds, such as perchloroethylene, or suspected toxic compounds, such as VMS and PCBTF, is appropriate. Furthermore, it should be noted that AQMD staff is proposing to remove all restrictions on their use in Rules 1106.1, 1151, and 1171, which are intended to control VOC emissions pursuant to Title I of the Act. The existing structure of the definition of the term "Exempt Compounds" and the amendments, as proposed, meet the California Health and Safety Code requirements for clarity, consistency, and non-duplication.

The Group II Exempt Compound category was created based on policy established by the AQMD’s Governing Board. Any and all compounds listed in this category are placed there when they are known or suspected to be toxic or potentially toxic compounds. When AQMD proposes to list compounds under this category, that proposal is based on information available from other entities including, the California Environmental Protection Agency Office of Health Hazard and Environmental Assessment. Furthermore, if information is not available on a particular compound, the AQMD may propose to list a compound under the Group II Except Compound category based on the recommendation of the AQMD’s Health Effects Officer. Therefore, the AQMD’s listing of compounds under the Group II Except Compounds category and the warning on potential future regulatory actions does not violate the California Environmental Protection Agency Office of Health Hazard and Environmental Assessment scientific review process.

AQMP & Legal Mandate

The California Health and Safety Code requires the AQMD to adopt an Air Quality Management Plan (AQMP) to meet state and federal ambient air quality standards in the South Coast Air Basin. The California Health and Safety Code also requires that the AQMD adopt rules and regulations that carry out the objectives of the AQMP. This proposal complies with the objectives of the AQMP and does not impact any future emission reductions or implementation of the AQMP.

CEQA & Socioeconomic Analysis

AQMD staff has evaluated the proposed amendments pursuant to CEQA and has prepared an Environmental Assessment (EA). The EA, which did not identify any significant adverse impacts from the project, was circulated for a 30-day public review and comment period. All comments received on the draft EA will be incorporated into the final EA prior to the Public Hearing.

Implementation Plan

The definitions in Rule 102 supersede all exempt compound definitions in other AQMD regulations including, but not limited to, Regulations III - Fees, IV - Prohibitions, XI - Source Specific Standard, and XIII - New Source Review; however, the proposed changes will have no impact on existing emission limits. In fact, this proposal may facilitate compliance with the emissions limitations of Rules 1106.1, 1151, and Rule 1171 through the use of exempt compounds, thus lowering VOC emissions. Staff will work with all affected facilities to implement the proposed revisions, following Board action.

Resource Impacts

AQMD resources are sufficient to implement the proposed amendment and no additional impacts are expected on staff or fiscal resources.

Attachments:

Attachment M

Summary of Proposed Amendments
Rule Development
Key Contact List
Key Issues and Response
Resolution
Rule Language
Staff Report
Environmental Assessment


ATTACHMENT A

SUMMARY OF PROPOSED AMENDMENTS

Rules 102 and 1302

Add perchloroethylene, HCFC 225ca, HCFC 225cb, and HFC-43-10mee to the "Exempt Compounds" definition of Rule 102. Perchloroethylene is proposed to be listed as a Group II Exempt Compound, effective December 2, 1997. HCFC 225ca, HCFC 225cb, and HFC-43-10mee are proposed to be listed as Group I Exempt Compounds, effective the date of adoption. The definition of the terms "Exempt Compounds" and "Ozone Depleting Compounds" were eliminated in Rule 1302 and referred to Rule 102.

Rules 1106.1, 1151, and 1171

Allow the use of VMS, PCBTF, and perchloroethylene in operations regulated under Rules 1106.1 and 1151. Allow the use of perchloroethylene in operations regulated by Rule 1171.