AGENDA NO.
Proposal:
Set Public Hearing June 14, 1996 to Amend Rule 1136 - Wood Products Coatings.
Synopsis:
Proposed Rule 1136 amendments will establish interim VOC limits, achieving a 45% VOC emission reduction compared to current limits. Choices are provided for facilities to use waterborne topcoats or topcoats and sealers formulated with exempt compounds such as acetone. The final limits are proposed to be delayed until 2005 to allow time for low-VOC coating technology improvement and for wood coaters to adjust to low-VOC coatings. Amendments also include compliance flexibility.
Committee:
Not Applicable.
Recommended Action:
Set Public Hearing June 14, 1996 to Amend Rule 1136 - Wood Products Coatings.
James M. Lents, Ph.D.
Executive Officer
PL:JPB:MLK:LHM
Background
Rule 1136 - Wood Products Coatings was originally adopted on September 16, 1983, and subsequently amended many times to help implement our AQMP and address issues raised by industry, the USEPA and others. The purpose of the rule is to reduce VOC emissions from the use of coatings and strippers on wood products, including furniture, cabinets, shutters, frames and toys. The rule does not apply to residential non-commercial operations.
The rule was amended in September 1988 to achieve an 83% VOC emission reduction through the introduction of technology-forcing VOC content limits for several coating steps which required the conversion from traditional coatings to lower-VOC coatings. The last three rule amendments of April 1994, August 1994, and September 1995, have allowed the industry more time to make the transition to low-VOC coatings.
At the last Rule 1136 public hearing on September 8, 1995, the Governing Board, because of continued objections by much of the wood industry, delayed the final VOC limits until July 1, 1996, and directed staff to form a working group with industry to address issues involving Rule 1136.
Since that time, staff has:
· Formed a Rule 1136 Working Group that has met five times;
· Met three times with a group of wood coating formulators;
· Conducted site visits to 22 wood coaters and three coating manufacturers;
· Hired a consultant to conduct detailed surveys of a sample of wood coaters and most wood coating manufacturers;
· Evaluated USEPA's proposed control technology guideline (CTG) model rule for wood furniture (commonly referred to as "reg neg");
· Assessed the availability and feasibility of low-VOC wood coatings; and
· Held a Rule 1136 Public Workshop.
Staff's general conclusions and recommendations are as follows:
· The 18% emission reduction from the present Rule 1136 VOC limits in affect prior to July 1, 1996 that the "reg neg" limits would achieve is much less than what is achievable by industry, and falls short of what is required by the AQMP.
· Compliance with all of the current Rule 1136 VOC limits by July 1, 1996, by all of the wood coating industry, would be difficult.
· The majority of the emission reduction to be achieved by the final limits of the current rule can be accomplished by establishing interim VOC limits for some coating categories based on reformulation with acetone.
· The final VOC limits and exemptions should be extended until 2005; and
· More options and flexibility could assist wood coating operations to comply with the limits.
Policy Issues
The local wood product coating industry has requested that Rule 1136 VOC limits be replaced with VOC limits from the USEPA-proposed CTG "reg neg." Representing "Reasonably Available Control Technology" (RACT), "reg neg" would achieve only a 18% VOC emission reduction compared to current VOC limits. Rule 1136 is the last coating rule currently allowing general use of high-VOC coatings. Facilities in the AQMD using low-VOC coatings have reduced their VOC emissions by more than 85% compared to the current VOC limits. The "reg neg" is not adequate because: (a) it does not reflect the emission reductions that are actually achievable; (b) it is not a fair share of the 70% VOC emission reduction required for all stationary sources between 1990 and 2010 (1994 AQMP); and (c) state law requires the AQMD to adopt "Best Available Retrofit Control Technology" (BARCT), a higher standard than RACT. The proposed amended Rule 1136 is BARCT.
Proposal
The proposed amendments to Rule 1136 reflect staff's technical assessment and address issues raised by industry relative to the availability and feasibility of low-VOC coating technology. The proposed amendments include:
· Delaying the final VOC limits until 2005;
· Establishing interim VOC limits achievable with acetone-reformulated coatings;
· Providing alternative VOC limits to accommodate facilities already using, or that could use, a hybrid waterborne topcoat and solvent-borne sealer system.
· Raising the final VOC limits for sealers and high-solids stains;
· Investment Program (AQIP) for stationary sources similar to the one under Rule 2202 - On Road Vehicle Mitigation Options;
· Allowing use of alternate spray application equipment if compliant coatings are used;
· Extending the exemptions for the coating of classic guitars; refinishing, replacement and custom replica furniture; and touch-up and repair;
· Increasing the flexibility of emissions averaging;
· Updating test methods and definitions; and
· Including a new VOC limit format of pounds of VOC per pound of solids, as used by the federal "reg neg."
The proposed amended rule will reduce wood product coating VOC emissions by 5.0 tons per day (45%) by 1997 and 8.9 tons per day (81%) by 2005.
USEPA has approved the September 1995 amendments to Rule 1136 that delayed the final limits to July 1, 1996, as part of the State Implementation Plan. However, USEPA has expressed concerns about further delays in the emission reductions, and emissions averaging in the proposed amendments. Staff is continuing to work with USEPA to resolve their issues.
AQMP and Legal Mandates
On October 14, 1994, the Governing Board adopted a resolution that requires staff to address whether proposed rules being considered for adoption are scheduled such that the most cost-effective proposed rules, as defined in the 1994 AQMP, are submitted to the Board prior to less cost-effective proposals. The proposed amendments are not included in the 1994 AQMP and will not achieve additional emission reductions. Rather, they delay compliance with existing rules and result in a delay of previously approved emission reductions and associated costs.
The delay in the final emission reductions until 2005 will not jeopardize attainment of the ozone standard by 2010. A delay in emission reductions would not interfere with either the near term or long term reasonable further progress (RFP) demonstration. Staff will reassess the Basin-wide RFP as part of the 1997 AQMP, due in July 1996, including the proposed amended Rule 1136.
California Environmental Quality Act (CEQA)
AQMD staff has reviewed the proposed amendments to Rule 1136 - Wood Products Coatings, and has determined that the delay in the final compliance date for the aforementioned wood coatings will result in a delay of future VOC emission reductions. This delay of future emission reduction is considered to be significant under CEQA. A Draft Subsequent Environmental Assessment (EA) was prepared and circulated for a 45-day public review and comment period ending on April 29, 1996.
Socioeconomic Analysis
The proposed amendments would require affected facilities to submit a Progress Report demonstrating their strategy to meet the final, July 1, 2005 compliance limits. The cost of report preparation will be minimal to the affected facilities.
Overall, the proposed amendments would allow more time for the wood coating industry to comply with the final VOC limits, thereby deferring some compliance costs. USEPA estimates that the cost of conversion to a complete waterborne coating system ranges from $1,933 to $2,972 per ton ("Control of VOC Emissions from Wood Furniture Manufacturing Operations," July 1995). The cost-effectiveness of acetone-reformulated coatings is about $1,600 per ton.
Implementation Plan
Staff will be trained on the changes to this rule. A notice will be sent to wood coaters informing them of the rule amendments and contact persons for assistance.
Resource Impact
Existing AQMD resources will be sufficient for implementation of the changes to these rules with no impact on the budget.
Attachments (Down Load self-extracting compressed attachment package for this letter in M.S. Office 4.2.)
(i:\stream\1136\taskforc\rulepack\elecvers\abrdltr.doc)