BOARD MEETING DATE: October 3, 2003
AGENDA NO. 32

Amend Rule 1168 – Adhesive and Sealant Applications

SYNOPSIS:

The proposed amendments to Rule 1168 extend the compliance date from January 1, 2004 to January 1, 2005 for automotive and marine top and trim adhesives and correct a SIP deficiency regarding an exemption for light curable adhesives and sealants.

COMMITTEE:

Stationary Source, August 22, 2003, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the CEQA Subsequent 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

The current Rule 1168 – Adhesive and Sealant Applications establishes a final VOC limit for adhesives used in the automotive and marine top and trim industry of 250 grams per liter on January 1, 2004. This future limit was based on limited use of waterborne, exempt compound borne, and hot melt adhesives across the broad range of material substrates including metal, plastics, cloth, leather, and paper board. Because most top and trim shops are owner-operated small businesses, and rely on single multipurpose adhesive, staff established an interim VOC limit of 540 grams per liter to accommodate them, and based the reduction in VOC content on performance testing of an acetone diluent neoprene adhesive that had been developed by a leading manufacturer. The performance of this adhesive would be closely watched during a "beta testing" program to establish its long term performance in the field. As a backstop and upon the June 7, 2002 amendment to this rule, the Board directed staff by resolution to conduct a technology assessment to determine the feasibility of using automotive and marine top and trim adhesives with a VOC content of no more than 250 grams per liter.

Due to the experimental nature of this adhesive, and uncertainty concerning its future availability in the marketplace, coupled with application and performance difficulties of waterborne neoprene top and trim adhesives, staff is recommending an additional year for full implementation.

In addition, on April 26, 2002, the U.S. EPA finalized in the Federal Register (FR) a limited approval and limited disapproval of the September 15, 2000 amendments to Rule 1168 (67 FR 20645) contained in the California State Implementation Plan (SIP). The U.S. EPA cites Rule 1168 as largely consistent with the relevant Clean Air Act (CAA) requirements. However, the exemption for light curable adhesives and sealants was cited as inconsistent with the CAA and therefore full SIP approval of Rule 1168 was not granted. U.S. EPA recommends that a VOC limit should be established under which exemption for light curable adhesives and sealants could apply and that recordkeeping under Rule 109 should be required.

Proposal

The staff proposal is summarized as follows:

• Top and Trim Adhesives:
  Extend the compliance date for top and trim adhesives with a maximum VOC content of 540 grams per liter to January 1, 2005 from the current effective date of January 1, 2004. This will allow manufacturers more time to further validate the workability and performance of low-VOC adhesives and bring them to the marketplace.
   
• Light Curable Adhesives and Sealants
  Limit the exemption for light curable adhesives and sealants to those having a VOC content of a maximum of 50 grams per liter less water and less exempt compounds, provided records of use are maintained pursuant to Rule 109 – Recordkeeping for Volatile Organic Compound Emissions.

The proposed changes to Rule 1168 postpone 0.2 ton of VOC of emission reductions per day, which will be recaptured by January 1, 2005. U.S. EPA Region IX staff has advised AQMD staff that this proposal adequately addresses the SIP deficiency without posing new approvability issues.

Technology Assessment Commitment

To ensure the availability of adequately performing adhesives, staff is committing to perform another technology assessment by 2005 for top and trim adhesives.

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, 2005.

The postponement of the VOC limits applicable to top and trim adhesives are necessitated to allow more time to assess the performance of experimental adhesives that meet the 250 grams of VOC per liter limit and bring them to the marketplace. The emission reductions postponed are estimated at 0.2 ton per day for this source category.

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 Subsequent Draft Environmental Assessment (SEA) 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 SEA has been prepared and is included as part of this Adoption Hearing package.

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 an additional technical assessment by 2005 for top and trim adhesives that meet a VOC limit of 250 grams per liter. The establishment of a working group may be necessary for better communications between adhesive manufacturers, users and AQMD staff.

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 Subsequent Environmental Assessment
8. Statement of Findings and Statement of Overriding Considerations

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