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BOARD MEETING DATE: June 7, 2002 AGENDA NO. 36




PROPOSAL: 

Amend Rule 1168 – Adhesive and Sealant Applications

SYNOPSIS: 

The proposed amendments to Rule 1168 address the VOC limits and compliance dates for adhesives used in the automotive and marine top and trim industry; the adhesives used for shoe and handbag repairs; plastic pipe cements, and the associated primers. The amendment also addresses the use of methylene chloride and other toxic compounds in adhesives and sealants.

COMMITTEE: 

Stationary Source, March 22 and April 26, 2002, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

  1. Certifying the CEQA Final Environmental Assessment (EA) for Proposed Amended Rule 1168 – Adhesive and Sealant Applications; and

  2. Amending Rule 1168 – Adhesive and Sealant Applications.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

Rule 1168 - Adhesives and Sealants was first adopted on April 7, 1989 and has been amended on numerous occasions since. The rule was last amended on September 15, 2000. One of the amendments was the inclusion of a prohibition of sales for non-compliant adhesives. It allowed a one-year sell through provision for manufacturers, suppliers, and distributors to dispose of and sell existing stock of non-compliant products, provided the VOC content complied with limits in effect prior to September 15, 2000. In the case of contact adhesives the limit is currently 250 g/l of VOC.

Also, the September 15, 2000 amendments eliminated small use exemptions for one gallon per day and 55 gallons per year, which generally affected small owner-operated businesses such as automotive and marine top and trim and shoe repair shops. These shops currently use contact adhesives with VOC contents approximately 2½ times the current allowable limit of 250 grams VOC per liter. The automotive and marine top and trim industry performs after-market upholstery and associated product installation. Shoe repair shops replace worn soles, heels, and the like. Some also repair handbags, briefcases and luggage. Both industries did not adequately prepare for high VOC adhesives replacement with existing low-VOC technology. Furthermore, many of these businesses may lack adequate capital to purchase additional application and drying equipment or presses to allow low-VOC adhesives to bond effectively. Shoe repair shops apply much less adhesive than do top and trim shops, and therefore the associated emissions are much lower. It is for this reason that adhesives used for shoe repair have a more extended compliance date as compared to the top and trim industry.

In response to the comments received subsequent to the rule amendment, from the shoe repair and automotive trim industries, on September 21, 2001, the AQMD Governing Board directed staff to use enforcement discretion with regard to the sale and use of adhesives for these two industries and to assess the need for a rule exemption. At the time, staff had identified only one low-VOC alternative, which contained the toxic compound methylene chloride; however, compliant products that neither contain methylene chloride or potential toxic substitutes are now becoming available for use and should perform satisfactorily. Additional time is required for manufacturers of these compliant adhesives to complete the distribution of these products throughout the top and trim and shoe repair industries and the individual businesses need additional time to integrate these adhesives into their operations.

In addition, previous amendments to Rule 1168 in 1992 and 1997 postponed the final emission limits for adhesives and primers that bond plastic pipe and pipe-fittings together in such applications as potable water conveyance, sewer vent piping, and spa manufacturing. Due to the potential liability to manufacturers of solvent cements, where safe drinking water and pipe connection leakage is concerned, an extension of time is also necessary for the other regulatory agencies affecting this industry to approve newly developed plastic pipe adhesives.

Also during the staff assessment there was evidence that methylene chloride is being used as a substitute for VOC solvents to meet current and future VOC limits. Because alternative chemistries are available that do not contain methylene chloride, or other toxic substitutes such as perchloroethylene, ethylene dichloride, chloroform and trichloroethylene staff proposes to phase out their use in adhesives by January 1, 2004, with a one-year sell-through for products containing methylene chloride. The phase out of these chemicals will further protect public health and is consistent with the Air Toxics Control Plan. The one exception to the availability of acceptable formulations that do not contain methylene chloride is solvent welding formulations used to bond hard acrylic, polycarbonate and polyethylene terephalate glycol plastic. An additional year and subsequent one-year sell-through provision is needed to allow the continued development of acceptable replacements for methylene chloride formulations.

Proposal

The staff proposal is summarized as follows:

Staff expects to see a reduction of approximately 2 tons of Hazardous Air Pollutants (HAPs) per day because of this proposal, coupled with a postponement of VOC emission reductions of 1.25 to 1.44 tons per day, until January 1, 2006.

Technology Assessment Commitment

To ensure the availability of adequately performing adhesives, staff is committing to perform technology assessments by 2004 for top and trim adhesives, by 2008 for shoe repair adhesives, and by 2005 for solvent welding operations that currently use methylene chloride for hard plastic sheet bonding. A working group will be established to facilitate the transition of the shoe repair industry to compliant adhesives.

Policy Issues

While acknowledging the availability of low-VOC contact adhesives, some shoe repairmen believe the cost of converting to low-VOC adhesives is not affordable to them because of the possible need for infrared heat sources and presses. Staff believes there are alternatives in acetone–based formulas that will work, but will take time to adjust to slower assembly times. Furthermore, the inventory of potential alternatives is expected to improve as future VOC limits for various adhesive categories become effective and additional adhesive products enter the market. Staff expects many of these new products may be successfully applied in the shoe repair industry. To facilitate a smooth transition to compliant products and recognizing the financial constraints and limited technical capabilities of the shoe repair industry, staff is proposing an extended compliance schedule through July 1, 2008, with a one-year sell-through period, and the formation of a working group to conduct a technology assessment on the use of current and future low-VOC products.

Adhesives for the top and trim industry are currently in use that meet a 540 g/l VOC limit and are required for use in other jurisdictions. Although large shops can comply with a 250 g/l limit through the use of alternate adhesives and new application equipment, smaller shops may not have the necessary capital to do so. There are coatings that will meet a 250 g/l VOC limit that can be used without a change in application equipment. However, they are just now being released into the market. Adhesives that meet an 80 g/l limit and allow the use of current application equipment are not available and are unlikely to be available for the top and trim industry. Staff proposes an immediate interim limit of 540 g/l until January 1, 2004 since those adhesives are available and in use. Effective January 1, 2004 a limit of 250 g/l will apply with a one-year sell-through for adhesives complying with the interim limit manufactured prior to that date. The time is necessary for the lower-VOC coatings to become available in the market place for use by even the smallest top and trim facilities.

Solvent welding of hard acrylic and polycarbonate products without methylene chloride is significantly more expensive than with available VOC compliant two-component replacements on a material basis only. Staff proposes an extended compliance schedule through January 1, 2005 and a one-year sell-through, as requested by the manufacturers, to allow for the development of less expensive compliant technology to replace the methylene chloride solvent welding product line.

In lieu of a complete phase out of methylene chloride, it has been recommended that the use of methylene chloride-based adhesives be limited to those with valid conditional use AQMD permits that reflect compliance with toxic rules. Staff believes that while there are some operators with permits to use methylene chloride, there is a much larger population of users that do not possess air quality permits and would therefore be required to submit applications into the permit system. Most of these companies would not be able to accept conditions limiting them to very small quantities of methylene chloride in order to comply with current toxics regulations. In light of the availability of alternative and adequate performing products, staff believes the proposed phase out of methylene chloride (and other toxic substitutes) through the proposed prohibition of sales and use is more efficient and effective for the regulated public and the AQMD.

AQMP and Legal Mandates

The California Health and Safety Code requires the AQMD to adopt an Air Quality Management Plan (AQMP) to meet state and federal ambient air standards in the Basin. In addition, the California Health and Safety Code requires that the AQMD adopt rules and regulations that carry out the objectives of the AQMP. Control measure CTS-02E in the 1997 AQMP, as amended in 1999, calls for greater use of low-VOC, high-solids, or multi-component adhesives to achieve further reductions in daily VOC emissions to reach the original goals of the September 15, 2000 amendment of Rule 1168. The VOC emissions reduction target for CTS-02E was 1.3 tons per day for the 2010 planning inventory. The September 15, 2000 amendment of Rule 1168 achieved reductions of 8.25 tons per day for 2010 based on the planning inventory. This proposal postpones VOC reductions until January 1, 2004 for top and trim applications, until January 1, 2005 for solvent welding and plastic pipe cements, and until July 1, 2008 for shoe repair shops (allowing for a one-year sell-through and use provisions) beyond the original compliance date of September 1, 2001 for top and trim and shoe repair adhesives due to expiration of low-use exemptions for contact adhesives, and January 1, 2003 for plastic pipe cements and primers.

The State Implementation Plan (SIP) Settlement Agreement requires the Board, in the event there is a relaxation or delay of already adopted technology forcing limits, to make findings that the limit is infeasible to implement. Based on that finding, the Board may delay implementation of that limit by not more than two years. Alternatively, other measures can be adopted and implemented to eliminate the shortfall in reductions within two years after the implementation of the rule. The delay of the technology forcing limits applicable to plastic pipe cements which were adopted prior to the SIP Settlement agreement, is the only affected provision that falls under the terms of the settlement agreement. The delay in the VOC limits is necessitated by the lack of acceptable compliant products. The emission reductions postponed are estimated at 0.85 ton per day for this source category.

The postponement of the VOC limits applicable to top and trim and solvent cements are necessitated by the phase-out of methylene chloride. The health benefits of the methylene chloride phase-out in terms of health risk reduction far outweigh the delay in VOC reductions. Further, the top and trim and shoe repair adhesives industry were not part of the September 15, 2000 baseline inventory. The emission reductions postponed are estimated at 0.4 to 0.6 ton per day for these source categories.

The postponed emission reductions created by plastic pipe cements and primers, as well as adhesives used by the top and trim and shoe repair industries are offset by excess emissions reductions achieved by the September 15, 2000 amendment of Rule 1168.

CEQA and Socioeconomic Analysis

Pursuant to the California Environmental Quality Act (CEQA) and the AQMD’s Certified Regulatory Program (Rule 110), the AQMD prepared a Draft Environmental Assessment (EA) for Proposed Amended Rule 1168 – Adhesive and Sealant Applications, which was released for a 45-day public review period. No Comments on the Draft EA were received. A Final EA has been prepared and is included as part of this Adopt Hearing package.

The socioeconomic report for this proposed amendment is prepared and is attached to the Staff Report. No significant socioeconomic impacts have been identified as a result of the proposed amendments.

Implementation Plan

Staff will continue current inspection and permitting practices to facilities subject to Rule 1168. In addition, staff will perform technology assessments by 2004 for top and trim adhesives, by 2008 for shoe repair adhesives, and by 2005 for solvent-welding operations that currently use methylene chloride for hard plastic sheet bonding. A working group will be established to support the shoe repair industry.

Resource Impacts

Implementation of the proposed amendments will have limited impacts on staff and fiscal resources.

Attachments:

  1. Summary of Proposed Amendments
  2. Rule Development Process
  3. Key Contacts List
  4. Resolution
  5. Rule Language
  6. Final Staff Report
  7. Final Environmental Assessment
  8. Final Socioeconomic Report

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