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PROPOSAL:

Adopt Proposed Amended Rule 1106.1 – Pleasure Craft Coating Operations

SYNOPSIS:

The AQMD is amending Rule 1106.1 to address issues raised by the filing of several product and group variances associated with the use and application of compliant pleasure craft coatings. Proposed Amended Rule 1106.1 will temporarily raise the VOC limits for Extreme High Gloss Topcoats and Finish Primers, increase the VOC limits for Antifoulants, and remove the requirement that coatings be applied using HVLP spray equipment. Rule 1106.1 amendments are being proposed to provide compliance relief to the affected sources, allow the rule to reflect current coating technologies, while encouraging manufacturers to continue their development of low VOC coatings.

COMMITTEE:

Stationary Source, December 18, 1998, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Final Supplemental Environmental Assessment for Proposed Amended Rule 1106.1 – Pleasure Craft Coating Operations, and
2. Amending Proposed Rule 1106.1 - Pleasure Craft Coating Operations.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 1106.1 – Pleasure Craft Coating Operations establishes the VOC limit for marine coatings used to manufacture, refinish, repair, and maintain pleasure craft. Pleasure craft include yachts, sailboats, powerboats, sport fishing boats, and any other recreational watercraft. In addition to specifying the VOC limits for pleasure craft coating operations, Rule 1106.1 requires that coatings be applied either by hand or High Volume Low Pressure (HVLP) spray application equipment.

Rule 1106.1 was adopted on May 1, 1992 and contains VOC limits for a variety of pleasure craft coating operations. A decrease in the Rule 1106.1 VOC limits for Extreme High Gloss Topcoats, Finish Primers, and Antifoulants took effect on July 1, 1994. The VOC limits were decreased from 650 g/l to 490 g/l for Extreme High Gloss Topcoats, 600 g/l to 420 g/l for Finish Primers, and 400 g/l to 150 g/l for Antifoulants. At the time of rule adoption, the July 1, 1994 VOC limits were considered technology forcing. Coatings meeting the July 1, 1994 VOC limits were either in development or undergoing initial introduction into the pleasure craft coating industry.

Compliant coatings that meet the VOC limits are currently available; however, use of these products has produced poor or inconsistent results. In addition, the requirement that sprayed coatings be applied using High Volume Low Pressure (HVLP) spray equipment has caused severe application problems as well. Use of these coatings and HVLP spray equipment lead to coating failures and subsequent re-applications, thereby reducing the effectiveness of the rule. Performance problems associated with the use of Extreme High Gloss Topcoat Primer Systems and Antifoulants prompted manufacturers to petition for product variances in the spring of 1995 and fall of 1997, respectively. Both variances have been granted and are still in effect.

During the Rule 1106.1 adoption process, the AQMD made a commitment to monitor the technology development and field performance of water-based Antifoulants. The product variance for Antifoulant coatings initiated this review process. Based on the results of this review, the AQMD committed to revisit the rule if necessary and propose changes to reflect the current state of coating technologies.

Proposal

In an effort to address issues raised through the variances, provide relief to affected sources, provide more competitive business conditions between adjacent air districts, and allow the rule to reflect current technology, the AQMD staff is proposing to amend Rule 1106.1 as follows: (1) temporarily raise the VOC limits for Extreme High Gloss Topcoats and Finish Primers; (2) increase the VOC limit for Antifoulants; (3) remove the requirement that sprayed coatings be applied using HVLP or some other equivalent method; and (4) propose editorial amendments. Estimates of the emission reductions forgone due to the proposed interim VOC limits do not exceed 86 lbs/day. After January 1, 2001 when the final VOC limits become effective, this estimate reduces to 40.5 lbs/day.

Extreme High Gloss Topcoats and Finish Primers

Proposed Amended Rule 1106.1 will temporarily raise the VOC limits for Extreme High Gloss Topcoats and Finish Primers to 650 g/l and 600 g/l, respectively. Effective January 1, 2001, the VOC limit for Extreme High Gloss Topcoats and Finish Primers will be 490 g/l and 420 g/l, respectively. Temporarily raising the VOC limit will allow additional time for the compliant coatings to undergo field testing and improvements in coating performance as well as allow the applicators to acquire the training and practice necessary to successfully apply the low VOC products.

Antifoulants

Proposed Amended Rule 1106.1 specifies an interim VOC limit of 400 g/l upon the date of rule amendment and a final VOC limit of 330 g/l effective January 1, 2001. The final VOC limit of 330 g/l is consistent with the limits adopted by the San Diego and Ventura County APCDs. San Diego County APCD’s 330 g/l VOC requirement is currently in effect, and Ventura County APCD’s 330 g/l VOC requirement does not become effective until November 2000.

The AQMD staff believes that increasing the VOC limits and delaying the compliance date to January 1, 2001 is needed to ensure compliance at different times of the year (e.g., summer vs. winter) by all methods of application such as brush and roller. In addition, it will provide boatyards with an adequate selection of compliant products. Boatyard operators have expressed concern that the current compliant products cannot meet the 330 g/l VOC limit after necessary thinning under various application scenarios. As a result, boatyard operators commented that if the 330 g/l VOC limit is effective upon adoption of PAR 1106.1 they will have compliance problems especially during their peak summertime season. AQMD staff has performed an independent lab analysis and field inspections and concurs with the boatyard concerns. The proposed final compliance date of January 1, 2001 provides sufficient time for manufacturers to develop products to meet the proposed 330 g/l VOC limit and receive EPA and CALEPA approval. This also ensures that applicators will have an adequate selection of product lines that are compliant.

The proposed increase in the VOC limit for Antifoulants from 150 g/l to 330 g/l allows the use of solvent-based products with proven performance. Products meeting the VOC limit of 150 g/l use water-based technology. Since the introduction and widespread use of water-based antifoulant coatings throughout 1996, problems specific to the marine industry (e.g., unexpected growth of marine organisms) have occurred. The problems encountered through the use of water-based Antifoulants resulted in the coating manufacturers obtaining a product variance from Rule 1106.1 in January 1998, which is still in effect.

HVLP

The proposed amended rule will remove the requirement that sprayed coatings be applied by HVLP or some other equivalent method due to problems resulting from the use of HVLP spray equipment.

Editorial Amendments

In addition to the proposed amendments discussed above, the AQMD is proposing minor editorial or clean-up changes to the rule language. One of these proposed changes is to delete the inventory depletion provision contained in paragraph (c)(3). The inventory depletion provision has a sunset clause which caused it to expire on July 1, 1996, so it is now extraneous and should be removed. The AQMD is also proposing to remove the definitions for Hand Application Methods and HVLP since they are no longer needed due to the deletion of the requirements for application methods. ARB has commented that paragraph (c)(2) of the proposed amended rule contains a reference to the coating application requirements in the currently effective version of Rule 1106.1 and is being rewritten to remove the specific reference. Subdivision (e) is also being amended to update the AQMD test methods so that they reflect the most currently used test method numbers.

Policy Issues

Public comment has focused primarily on allowing sufficient time before the VOC limit of 330 g/l for Antifoulants becomes effective. Boatyards have argued that a VOC limit of 330 g/l will not provide an adequate selection of antifoulant coatings. AQMD staff has addressed this issue by specifying a final compliance date of January 1, 2001.

AQMP & Legal Mandates

This rule has been approved into the State Implementation Plan. The rule is proposed to be amended because new products have not become available as quickly as originally anticipated.

CEQA & Socioeconomic Analysis

The AQMD has reviewed the proposed project pursuant to California Environmental Quality Act (CEQA) Guidelines Section 21000. The AQMD has determined that the proposed project may generate significant adverse impacts to air quality due to an estimated interim 86 pounds per day of VOC emission reductions forgone. The AQMD released a Draft Supplemental Environmental Assessment addressing the potential environmental impacts associated with the proposed project. The Draft Supplemental Environmental Assessment was circulated for a 45-day public review and comment period. No public comments were received. A Statement of Findings and Overriding Considerations has been prepared for the proposed project.

The AQMD has determined that the proposed amendments would not generate any additional costs on affected sources. As such, the proposed rule will not result in any adverse socioeconomic impacts.

Implementation Plan

Not Applicable

Resource Impacts

The proposed amendments will decrease the resource impacts associated with the group and product variances.

Attachments

A. Rule Development Flow Chart
B. Resolution
C. Rule Language
D. Final Staff Report
E. Final Supplemental Environmental Assessment

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