BOARD MEETING DATE: March 5, 2004
AGENDA NO. 35

Amend Rule 1132 – Further Control of VOC Emissions from High-Emitting Spray Booth Facilities

SYNOPSIS:

Proposed Amended Rule 1132 corrects a SIP deficiency regarding Executive Officer discretion in the Alternative Compliance Plan section of the rule and clarifies and improves compliance determination.

COMMITTEE:

Stationary Source, January 23, 2004, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the CEQA Notice of Exemption (NOE) for the proposed amendments.
2. Amending Rule 1132 – Further Control of VOC Emissions from High-Emitting Spray Booth Facilities.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On January 19, 2001, the Board adopted Rule 1132 – Further Control of VOC Emissions from High-Emitting Spray Booth Facilities to reduce emissions of volatile organic compounds (VOC) from facilities that operate spray booths, and have either reported or will report an emissions inventory of more than 20 tons per year beginning in 1999 or thereafter. The current rule requires independent spray booth VOC emissions to be reduced through the use of add-on control systems by at least 65 percent, or to reduce coating VOC contents by at least 65 percent as compared to other applicable source specific standards in place as of January 19, 2001, or to use a combination of add-on control and coating reformulation to reduce emissions by at least 65 percent.

Three alternative compliance options to the above are also offered. The first option directs composite manufacturing facilities to demonstrate a 65 percent emission reduction in VOCs, compared to Rule 1162 requirements in effect as of January 19, 2001, through the use of higher transfer efficiency equipment, lower monomer content and other undefined pollution prevention techniques of paragraph (d)(1). The second option to alternative compliance allows 6 months additional time to reduce emissions, coating VOC content, or a combination of the two, but requires 85 percent control per spray booth (paragraph (d)(2)). Lastly, the rule allows the implementation of facility-wide emission reduction measures as an alternative compliance option, provided such measures result in a 71.5 percent emissions reduction (paragraph (d)(3)).

On March 8, 2002, the U.S. EPA proposed a limited approval and disapproval of Rule 1132 in the SIP because paragraphs (d)(1) and (d)(3) do not conform to section 110, part D of the Clean Air Act. This action was finalized on September 13, 2002. Specifically, U.S. EPA cites that the Executive Officer’s discretion to approve alternative compliance lacks specificity. The AQMD has 18 months from the effective date of U.S. EPA’s action to correct these SIP deficiencies to avoid sanctions. In this case, the effective date is October 15, 2002 and the final SIP correction date is April 15, 2004.

To address EPA’ s concerns, staff is recommending that paragraph (d)(3) be rewritten to allow a facility to submit an alternative proposal that obtains equivalent reductions to the AQMD, CARB and EPA for approval. The 10 percent additional reduction language would be removed. Thus, each plan would be evaluated on a cases-by-case basis. During the evaluation, it would be determined whether the proposal is subject to EPA’s EIP and whether an additional 10 percent environmental benefit reduction must be applied. Since the SIP submitted to EPA did not include VOC reductions for the required additional 10 percent of paragraph (d)(3), this revised rule language does not result in a loss of emissions and therefore is not a rule relaxation.

Staff is also recommending the use of approved emission factors for open molding of composites, in combination with usage factors, to correct the SIP deficiency for composite manufacturing facility alternative compliance. The use of these factors is recommended with the exception of the factor for gelcoat non-atomizing application, because there is uncertainty in the operating parameters that must be used to assure that the non-atomized gecoat application equipment will achieve the emission factor. Staff is recommending the allowance of the specific emission factors associated with the non-atomized application of gelcoat, only if an approved source test is conducted that demonstrates compliance with the table values. Under the current rule language, the AQMD can require appropriate source testing, thus, the addition of this provision does not significantly affect the meaning of the rule. With these two alternative compliance corrections, CARB and U.S. EPA will reconsider the limited disapproval of Rule 1132. However, the U.S. EPA must approve this SIP correction by April 15, 2004, for the AQMD to avoid sanctions authorized by the Federal Clean Air Act.

Other Issue

Rule 1136 – Wood Products Coatings establishes VOC content limits both in terms of pounds of VOC per pound of solids and grams per liter of coating, less water and less exempt compounds. Rule 1132 requires a 65 percent reduction in VOC content. To clarify the 65 percent reduction required for wood finishes is based upon a pound of VOC per pound of solids basis but may be expressed in equivalent grams of VOC per liter of coating, less water and less exempt compounds, Appendix A of the staff report shows the values in both units of measurements.

Legislative Authority

The California legislature created the AQMD in 1977 (The Lewis-Presley Air Quality Management Act, Health and Safety Code Section 40400 et seq.) as the agency responsible for developing and enforcing air pollution control rules and regulations in the South Coast Basin (Basin). By statute, the AQMD is required to adopt an AQMP demonstrating compliance with all state and federal ambient air quality standards for the Basin [California Health and Safety Code Section 40460(a)]. Furthermore, the AQMD must adopt rules and regulations that carry out the AQMP [California Health and Safety Code Section 40440(a)].

Proposal

In order to correct the SIP deficiency, staff is recommending revising the alternative compliance plan option under paragraph (d)(3), to offer alternative compliance measures to industry that result in equivalent emission reductions. These measures need approval by AQMD, CARB and EPA. Staff is also recommending the use of approved emission factors for open molding of composites, in combination with usage factors, to correct for lack of specificity of paragraph (d)(1) regarding subject composite manufacturing facility demonstrations of VOC emission reductions of at least 65 percent below Rule 1162 requirement in effect as of January 19, 2001. However, the use of factors for gelcoat non-atomizing applications are subject to verification by approved source tests.

California Environmental Quality Act (CEQA) Analysis

Pursuant to CEQA and the AQMD’s Certified Regulatory Program (Rule 110), staff has prepared a Notice of Exemption (NOE) for Proposed Amended Rule 1132 – Further Control of VOC Emissions from High-Emitting Spray Booth Facilities. The NOE concluded that the proposed amendments to Rule 1132 could not have any significant adverse effect on the environment. The NOE is included as part of the attached package for the public hearing on the proposed amendments.

Socioeconomic Assessment

The proposed amendment to Rule 1132 will not result in increased costs to the affected industries and, therefore, will have no socioeconomic impact. Accordingly, a socioeconomic analysis is not included with this proposal.

AQMP and Legal Mandates

The California Health and Safety Code requires the AQMD to adopt an AQMP to meet state and federal ambient air quality 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. Rule 1132 originally implemented Phase I of Control Measure CTS-09 that is part of the 1999 Amendments to the 1997 Ozone State Implementation Plan for the South Coast Air Basin. The proposed amendment to Rule 1132 does not have a significant impact on air quality or emissions limitations and, therefore, has no affect on emission reductions obtained by this rule upon its adoption, and consequently does not affect the ozone attainment strategy outlined in the AQMP.

Implementation Plan

Current implementation programs are adequate to implement the proposed amendments.

Resource Impact

Adoption of Proposed Amended Rule 1132 will have no budgetary impacts.

Attachments

1. Summary of Proposal
2. Resolutions
3. Key Contacts
4. Proposed Rule Language
5. Notice of Exemption

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