BOARD MEETING DATE: July 9, 2004
AGENDA NO. 36

Amend Rule 1162 – Polyester Resin Operations

SYNOPSIS:

The proposed amendment changes the final compliance date for requiring the use of nonatomizing spray application of gel coat until July 1, 2005, and revises the definition of nonatomizing spray application of gel coat.

COMMITTEE:

Stationary Source, April 23, 2004, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the CEQA Final Environmental Assessment (EA) for Proposed Amended Rule 1162-Polyester Resin Operations;
    
2. Amending Rule 1162 – Polyester Resin Operations.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 1162 applies to all polyester resin (composite) operations in the South Coast Air Quality Management District (AQMD), which include but are not limited to, the manufacturing of the bathware products, vanity installations, hulls for recreational and commercial watercraft, bodies for recreational vehicles, building panels and appliances, automotive, aerospace and aircraft components, and structural components for chemical process equipment and storage tanks.

Resins and gel coats used in composite manufacturing release a significant portion of the monomer in their formulation, contributing greatly to VOC emissions. Emission rates are the highest when such materials are applied through atomized spraying techniques. Past amendments to Rule 1162 sought to reduce VOC emissions by limiting the allowable monomer content of resins and gel coats and requiring the use of nonatomizing application techniques

The November 9, 2001 amendment to Rule 1162 required composite manufacturers to apply gel coat with nonatomized application techniques on and after July 1, 2003. Prior to the effective date composite manufacturers stated that they experienced difficulties in meeting with the nonatomizing spray application technique definition for the gel coat applications. Staff observed applications in the field including the nonatomizing spraying patterns and have verified the difficulty the applicator has to comply with the definition. As a result, the rule was amended and the effective date for the nonatomized application of gel coat was extended from July 1, 2003, to July 1, 2004. Staff has been working for more than a year with composite manufacturers, resin and gel coat manufacturers and spray equipment manufacturers to develop a more appropriate and enforceable definition using industry-wide operating parameters that will demonstrate compliance with the approved emission factors for gel coat non-atomizing spray application. The testing program to make this determination was scheduled to be completed in March 2004. However, on February 12, 2004, the spray equipment manufacturers unexpectedly withdrew from the program and the testing was suspended. Without the data from the test program, staff could not develop the appropriate definition for nonatomizing spray application technique for gel coat based on the appropriate operating parameter(s) to confirm the non-atomization application of gel coat emission factors used by the industry to demonstrate compliance with Rule 1162.

On March 5, 2004, in amending a comparable rule that also applies to the composite manufacturing industry, Rule 1132 – Further Control of VOC Emissions from High Emitting Spray Booth Facilities, the AQMD Governing Board directed staff to conduct testing of equipment used in the nonatomized spray application of gel coats to establish a better range of operating parameters for the equipment and verify the emission factors. The data collected will provide both industry and AQMD a less costly alternative to individual testing by each operator for verifying compliance with Rule 1162 and 1132.

This testing of the spray equipment and any necessary changes to the rule that may result from the analysis of the testing data can not be completed by the July 1, 2004 compliance date required by Rule 1162. Also, industry will need additional time to purchase and familiarize themselves with the nonatomized spray application equipment to apply gel coat.

Proposal

Proposed Amended Rule (PAR) 1162 will postpone the final compliance date for requiring the use of nonatomizing spray application of gel coat, as required in Rule 1162, from July 1, 2004, to July 1, 2005. Staff also proposes to add a modified U.S. EPA definition of nonatomizing application technique for gel coats as found in the National Emission Standard for Hazardous Air Pollutants (NESHAP) for Reinforced Plastic Composites Production (40CFR63, Subpart WWWW) that utilizes the verified emission factors for gel coats. This additional time is required to complete a testing program to correlate spray gun operating pressures and VOC emissions and allow for the purchase and installation of the compliant equipment by industry. The data collected will provide both industry and AQMD a less costly alternative to individual testing by each operator for verifying compliance with Rule 1162.

The current proposed amendment will delay a VOC emission reduction of 0.43 tons per day for one year.

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.

CEQA & Socioeconomic Analysis

The objective of PAR 1162 is to delay the implementation of the nonatomizing gel coat application technique requirement from July 1, 2004, to July 1, 2005. A Final Environmental Assessment (Final EA, SCAQMD No. 030506JK, dated June 25, 2003) was previously prepared pursuant to the California Environmental Quality Act (CEQA), where "air quality" was identified as the only environmental topic that might be adversely affected by the previously proposed project, delay of the nonatomizing gel coat application technique requirement from July 1, 2003 to July 1, 2004 (now the existing rule). Alternative B of the same Final EA proposed postponing the final compliance date for the nonatomizing gel coat application technique requirement from July 1, 2003 to July 1, 2005. Since the currently proposed project was analyzed, as an alternative in the previous Final EA that was circulated for public review and comment, and subsequently certified (SCAQMD No. 030506JK, dated July 25, 2003); the SCAQMD relied on that previously certified Final EA as the CEQA document for the currently proposed project pursuant to CEQA Guidelines §15153, because the circumstances of the projects are essentially the same. The Notice to Rely on a Previously Certified Environmental Assessment for Proposed Amended Rule 1162 - Polyester Resin Operations, was released for a 45-day public review and comment period from March 23, 2004 to May 6, 2004. No comment letters were received from the public.

Since the release of the Notice to Rely on a Previously Certified Environmental Assessment for Proposed Amended Rule 1162 - Polyester Resin Operations, two changes were made to the proposed amended rule: a new definition for atomizing application technique of gel coat, and the Table of Standards was amended to delete outdated limits and effective dates. None of the modifications alter any conclusions reached in the previously certified environmental assessment, nor provide new information of substantial importance relative to the draft document that would require recirculation of the previously certified environmental assessment pursuant to CEQA Guidelines §15088.5.

There will be no socioeconomic analysis associated with the amendment because there is no additional cost for the composite industry.

Implementation Plan

The proposed rule will affect all composite facilities in the AQMD. Staff will continue to work with the affected facilities and their trade association during implementation.

Resource Impacts

While no fiscal impacts are anticipated from the implementation of the proposed amendment, the testing and analysis of nonatomizing application of gel coats may result in minor fiscal impacts.

Attachments

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

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