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BOARD MEETING DATE: December 6, 2002 AGENDA NO. 40




PROPOSAL: 

Amend Rule 1113 - Architectural Coatings

SYNOPSIS: 

Rule 1113 - Architectural Coatings, which was amended on May 14, 1999, achieves approximately 21.8 tons per day of VOC emission reductions. That amendment has been determined by the appellate court to have been improperly adopted. To ensure that VOC reductions are still timely achieved, staff is proposing to re-adopt the May 14, 1999 amendments with proposed changes to various compliance dates and other clarifying changes, while vacating the specific amendments adopted on May 14, 1999.

COMMITTEE: 

Stationary Source, September 27, 2002; October 25, 2002, November 22, 2002, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

  1. Certifying the Final Subsequent Environmental Assessment (SEA) for proposed Amended Rule 1113 – Architectural Coatings, and

  2. Adopting proposed amendments to Rule 1113 – Architectural Coatings and vacating the May 14, 1999 Rule 1113 amendmentsamendments to Rule 1113 – Architectural Coatings.

Barry R. Wallerstein, D. Env.
Executive Officer


Background

Rule 1113 is applicable to manufacturers, distributors, and end-users of architectural and industrial maintenance (AIM) coatings. It was first adopted in 1977, and has undergone numerous amendments. The purpose of the rule is to reduce VOC emissions from the use of AIM coatings, primarily by placing VOC limits on various coating categories.

The 1997 Air Quality Management Plan contained specific short term measures for architectural coatings - #97CTS-07 - Further Reductions from Architectural Coatings - Rule 1113. On May 14, 1999, Phase II of Control Measure #97CTS07 was implemented by amending Rule 1113 - Architectural Coatings to establish lower interim and final VOC limits for new and existing coating categories. These included Chemical Storage Tank; Essential Public Service; Floor; Industrial Maintenance; Non-flat; Primers, Sealers, and Undercoaters; Quick-Dry Enamels; Quick-Dry Primers, Roof; Sealers, and Undercoaters; Recycled; Rust Preventative, and Specialty Primers.

Subsequent to the May 14, 1999 amendments to Rule 1113, three lawsuits were filed against the South Coast Air Quality Management District (AQMD) that were subsequently consolidated as one matter by the court. Although the AQMD prevailed in the trial court, on June 24, 2002, the Court of Appeal of the State of California Fourth Appellate District, Division Three, issued a ruling finding that the May 14, 1999 amendments to Rule 1113 were not properly adopted. The appellate court has directed the trial court to issue a writ of mandate to order the AQMD to vacate those rule amendments, based on changes made to the rule within the last 30 days of the rulemaking process. Subsequently, the AQMD filed a petition for review to the California Supreme Court to review that appellate decision. On October 1, 2002, the Supreme Court denied review of the AQMD's petition. As a result, AQMD expects the trial court to issue a writ of mandate ordering the AQMD to vacate the May 14, 1999 amendments.

Also, following the May 14, 1999 amendments to Rule 1113, CARB developed a suggested control measure (SCM) for architectural coatings that was largely based on the interim VOC limits and the averaging provision of Rule 1113 as adopted in May 1999. The SCM, which has January 1, 2003 as the main compliance date for most coating categories and January 1, 2004 for Industrial Maintenance Coatings, has been adopted by 17 of the 35 local air districts in California that have an architectural coating rule.

Proposal

Staff is proposing to vacate the May 14, 1999 amendments. In addition, staff proposes to readopt most of the May 14, 1999 VOC limits with new proposed compliance dates of January 1, 2003 and January 1, 2004 for the interim rule limits (as in the SCM), clarifications to reflect the original intent of the adopted rule, and other changes in response to public, CARB and EPA comments received since the May 1999 amendments. These proposed amendments and clarifications are in direct response to industry comments and concerns received since 1999, and are designed to respond to recent court findings of inadequacies during the adoption process.

The proposed amendments to Rule 1113 include additions and deletions to the definitions, and modifications to the VOC limits, with some new coating categories added to the Table of Standards. Interim VOC limits for most coating categories become effective beginning January 1, 2003 with final VOC limits effective July 1, 2006. Additionally, amendments include significant restructuring of the Averaging Program and expansion of coating categories allowed to participate in averaging, revisions to container labeling requirements, and additional categories added to the Technology Assessments. Benefits of the proposed amendments include achieving emission reductions of 21.8 tons per day on an Annual Average Basis by lowering the VOC limits for many categories. Since the issuance of the proposed rule on November 5, 2002, staff has decided to revise the definition of floor coatings to be limited to opaque coatings for the reasons discussed below.

At the October 31, 2002 Public Consultation Meeting, the Sherwin Williams Company raised a comment which staff interpreted as suggesting that clear floor coatings should also be covered under the definition of floor coatings. In response to that comment, staff revised the definition of floor coatings to remove the limitation that they be 'opaque', so as to include both opaque and clear floor coatings. However, the Sherwin Williams Company later informed staff that it did not advocate this change. In addition, other manufacturers of clear floor coatings have also expressed concern about this change.

Therefore, staff has re-revised the definition of floor coatings so they are limited to opaque coatings as it had been published at the October 31, 2002 public consultation meeting. This limitation was also part of the May 14, 1999 amendments, as well as the CARB SCM. In light of the appellate decision overturning the May 14, 1999 amendments, District Counsel has reviewed this change and determined that because this proposal was specifically available for public comment, it would not trigger the same concern that the appellate court had raised in its opinion.

CEQA

Pursuant to the CEQA and AQMD Rule 110, AQMD has prepared a Subsequent Environmental Assessment for the proposed amendments to Rule 1113. The Draft SEA was circulated for a 45-day public review and comment period from August 6, 2002 to September 4, 2002. Four comment letters were received on the Draft SEA and responses to the comment letters have been incorporated into the Final SEA for the proposed project.

Socioeconomic Analysis

The socioeconomic analysis for the May 14, 1999 amendments proposed to be readopted, was conducted by staff prior to their adoption. The socioeconomic impacts for reducing the VOC limits for High Temperature Industrial Maintenance Coatings, Pre-Treatment Wash Primers, and Swimming Pool Repair which were part of the May 14, 1999 amendments were subsequently conducted by the socioeconomic analysis for the CARB SCM. The two coating categories Chemical Storage Tank Coatings and Essential Public Service Coatings proposed to be deleted were analyzed under the Industrial Maintenance Coating category in the 1999 Socio-economic impact assessment. Based on the thorough cost-effectiveness and socioeconomic impact assessment conducted for the proposed amendments, staff has concluded that the proposed amendments are within the costs identified in the AQMP. Staff will continue to evaluate the cost-effectiveness and socioeconomic impact for the proposed final VOC limits. The final Socioeconomic Impact Report included in the May 14, 1999 Staff Report is available through the internet at the AQMD website.

AQMP and Legal Mandates

The 1997 AQMP estimates increased AIM emissions for the Summer-day average (due to population growth) at 68.2 tpd in 1997, growing to 79.4 tpd by the year 2010, due to population growth, without additional AIM regulations. If left unchecked, AIM coating emissions alone would account for more than a fifth of the total VOC emissions in the AQMD. Therefore, the 1997 AQMP has a specific control measure (CTS-07) to reduce AIM VOC emissions by 50% in two phases by the year 2010, as well as a long-term measure requiring an additional 25% reduction in VOCs. This cumulative 59.5 tpd emission reduction based on the Summer Planning Inventory is the largest of all short- and long-term control measures.

These proposed Rule 1113 amendments will implement Phase II of the control measure. The current proposal emphasizes reformulation of existing coatings, primarily by using currently-available, technologically-innovative resins, as well as utilizing the growing list of exempt solvents.

Implementations and Resources

Existing AQMD resources will be sufficient to implement the proposed changes to this rule with minimal impact on the budget.

Attachments (41,361 KB)

  1. Summary of Proposed Amendment
  2. Rule Development Flow Chart
  3. Key Contacts
  4. Key Issues and Responses
  5. Resolution
  6. Rule Language
  7. Staff Report
  8. CEQA

ATTACHMENT A

Summary Of Proposed Amendments to Rule 1113 – Architectural Coatings

Readopt the May 14, 1999 VOC limits and the Averaging Compliance Option with the following differences:

·                    Establish lower interim and final VOC limits for new and existing coating categories which will match or be more stringent than those in the CARB SCM for:

-        High Temperature Industrial Maintenance (IM) Coatings,

-        Zinc-Rich IM Primer,

-        Pre-Treatment Wash Primers,

-        Bituminous Roof Primers; and

-        Swimming Pool Repair Coatings.

·                    Change the interim compliance dates in the May 14, 1999 amendments, effective July 1, 2002 to January 1, 2003 for most categories and to January 1, 2004 for Industrial Maintenance Coatings.

·                    Delete the Essential Public Services and Chemical Storage Tank definitions to conform to the CARB SCM.

Other Revisions and Clarifications

·                    Extend administrative requirements for labeling of rust preventative coatings and specialty primers to January 1, 2003 .

·                    ·                    Align the exemption expiration date for architectural coatings recommended by the
            manufacturer for use solely as quick-dry primers, sealers and undercoaters, and
            annually reported, to January 1, 2003 .

·                    Clarify Applicability to include “field” application.

·                    Clarify the definition for Floor Coatings, Industrial Maintenance Coatings, Metallic Pigmented Coatings, and Sealers.

·                    Clarify that Specialty Primers are included in the Averaging Compliance Option.

·                    Correct the exemptions for small coatings manufacturers to clarify that “lacquers and flat coatings” were not intended to be exempt from the VOC limits.

·                    Identify specific records that can be used to track sales and emissions and clarify that the sell-through provision of the rule also applies to coatings included under the Averaging Compliance Option Program.

·

·                    Change compliance dates for VOC limits to meet the CARB SCM, and make the following additional administrative changes: clarify definition of specialty primers; clarify who is responsible for the improper use of a coating by an applicator; and exempt coatings applied to test specimens for research and development purposes of those coatings.

 

·                    Incorporate certain changes at the request of USEPA

·                    Add language to allow a Rust Preventative Coating to be used for industrial use, as long as it meets the VOC limit specified in the Table of Standards for Industrial Maintenance Coatings.

·                    Clarify the three year sell through provision.

·                    Allow the labels of specialty primers to display one or more of four possible descriptions.

·                    Clarify that the manufacturer, distributor, or seller of a coating is not liable for the improper use of a coating by the applicator.

·                    Clarify that coatings are exempt from the VOC limits when applied to test specimens for the purpose of research and development of those coatings.

·                     

 

ATTACHMENT B

Rule 1113 Development Process - Architectural Coatings graphic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT C
 

KEY CONTACTS LIST

Bert Adams

Glaze N Seal

Ron Adams

Hill Brothers Chemical Company

Heidi Alderman

Air Products & Chemicals Inc.

Don Ames

CARB

Robert Avery

Eastman Chemical Company

Barry Barman

KTA-TATOR, Inc.

Paul Beemer

Henry Company

Chuck Benesch

D’Angelos

Vance Benietz

Zynolyte/ICI Paints

Howard Berman

Environmental Mediation, Inc.

Larry Breeding

Walt Disney Company

Bob Briody

Masconq

Mike Butler

BEHR Process Corporation

Larry Cerenzie

FSC Coatings

Curtis Coleman

Law Offices of Curtis L. Coleman

Gerrold Coleman

Paramount Pictures

Tim Conkin

LADWP

Stan Cowen

Ventura County APCD

James Dabbs

Spectra-Tone Paint Corporation

Peter Davy

Mirachem Corporation

Mike De La Vega

Life Paint Company

Lee Doyle

S. G. Pinney & Associates Inc.

Phil Drooks

MWD

Mark Dyer

ICI Dulux Sinclair

Andrew Elliott

Highland-International

Mehrdad Emami

Eastman Chemical Company

Bob Floriani

ICI Dulux Sinclair

Yvonne Fong

USEPA

Chris Foster

Smiland & Kachigian

Barbara Fry

CARB

Preeti Ghuman

LACSD

Anil Goel

Poly-Carb, Inc.

Robert Gross

PPG Industries, Inc.

Lloyd Haanstra

DEFT

Dean Habegger

Devoe Coatings

Madelyn Harding

Sherwin-Williams Company

Richard Hart

Hart Polymers

Brian Heath

Valspar Corporation

Robert Henderson

Environmental Engineering & Coatings

Jeff Hill

McBride Hill

Tony Hobbs

Tnemec Corporation

Christian Hurley

CARB

Steve Izuwara

Walt Disney Imagineering

Mike Jaczola

CARB

Barry Jenkin

Benjamin Moore Paints

Jason Jones

Sherwin-Williams

Jim Kantola

ICI Dulux Sinclair

Carol Yip Kaufman

MWD

Tim Kennelly

DWR

Ned Kisner

Triangle Coatings

Aiping (Allison) Kuang

Chevron

Mike La Quay

Sierra Performance Coatings

Martin  Ledwitz

SCE

Gene Lee

Rohm & Haas Company

John Long

Vista Paint Corporation

Dave Lunzer

Dow Chemical

Pat Lutz

Dunn-Edwards Paints

Todd Maiden

Seyfarth, Shaw

Tom Marsden

Disneyland Resort

John Means

Universal Studios

Debra Mendelsohn

County of Los Angeles

Clayton Miller

CIAQC

Norm Mowrer

Ameron Protective Coatings Systems

Jerry Mulnix

Cal Western Paints, Inc.

Stephen Murphy

Murphy Industrial Coatings

Dinkar Naik

Pacific Polymers

Bob Nelson

National Paint & Coatings Association

Wayne Nelson

Spectra-Tone Paint Corporation

Marcy Nichol

TruValue Manufacturing

Brian Niemy

DuPont Engineering Services

Amanda Noble

EMWD

Jim Nyarady

CARB

Herb Pigram

Rohm & Haas Company

Hamid Pourshirazi

Vista Paint

Stanley Pruskowski, Jr.

Rohm & Haas Company

Bob Reeves

Benjamin Moore Paints

Ellen Reinhardt

The Better Paint Tray LLC

Mark Robson

Golden State PDCA

Andy Rogerson

Caltrans

Raymond Russell

Smiland Paint Company

Steve Sanchez

US Can Company

Ken Schlereth

Carboline Coatings

Jim Sell

NPCA

Rodney Sells

Resin Technology Company

William Shoup

SSPC

Mark Simon

MWD

Al Singh

Surface Protection Industries

Bill Smiland

Smiland & Kachigian

Craig Smith

C-F

Christine Stanley

Ameron Protective Coatings Systems

Bob Steel

SICC

Gene Sweeney

Disneyland Resort

Pat Sweeney

KTA-TATOR, Inc.

Ray Szkola

Eastman Chemical Company

Gerald Thompson

BonaKemi USA, Inc.

Jay Umphrey

EPS Inc.

John Wallace

MWD

Herb  Wallenstein

Harco Chemical Coatings Inc.

John Waltman

Cal Western Paints, Inc.

Robert Wendoll

Dunn-Edwards Paints

Ron Widner

Benjamin Moore Paints

Robert Wight

EPS Inc.

Max Wills

Cal Poly State University

Kevin Worrall

Texture Coatings of America, Inc.

 

ATTACHMENT D
 

KEY ISSUES AND RESPONSES Rule 1113

Issue

Response

The Industrial Maintenance Coating category limit of 250 g/l limit should be extended to be consistent with the State SCM and to allow for additional time for testing required by specification standards for new products.

Agree
The AQ MD has proposed an extension of the implementation date for the industrial maintenance coating category, currently at 420 g/l VOC, from the proposed May 1999 rule date of July 1, 2002 to January 1, 2004 .  This will allow facilities that must meet stricter specification standards such as Essential Public Services to maintain the current VOC limit of 420 g/l essentially giving those facilities an additional 18 months to comply with the 250 g/l limit in rule. This proposed date aligns the requirements for industrial maintenance coatings with the SCM, allowing even more time for the manufacturers to prepare and for the users to test compliant coatings.  Averaging is also available to obtain specific coatings beyond the January 1, 2004 effective date.

The Specialty Primer category does not include stain blocking or extractive bleeding.

Agree
The AQ MD does not believe that extractive bleeding or blocking stains should be considered part of this higher-VOC limit for Specialty Primers.  While the National Technical Systems Study showed that the solvent-based primers performed better for stain-blocking of tannins from exterior wood substrates, as compared to waterborne primers, these primers were general primers and not specifically formulated for stain-blocking.  In contrast, the KTA TATOR technology assessment showed that specific low-VOC waterborne primers listed for stain-blocking and selected for the evaluation performed to an equivalent or superior level over the solvent-based solvents.  Additionally, the latest MPI approved products list includes numerous stain-blocking primers with a VOC content < than 200 g/l. 

The future final VOC limits are too restrictive and adequate coating replacements are not available that match current performance for any categories.

Disagree
The AQ MD does not believe that future limits will restrict the availability of adequately performing coatings.  In fact, since May 1999, additional evidence included in the staff report further confirms the District’s conclusion on performance and availability of lower-VOC products.  The District’s technology assessment, which included an evaluation of coatings available in 1999 for the specified coating categories, as well as a comprehensive laboratory and field testing evaluation conducted by a third-party contractor, with oversight by the Technical Advisory Committee (TAC), showed availability, commercial acceptance, and high performance associated with the low-VOC coatings.  It is expected that by 2006, even more high-performing industrial maintenance coatings will be available.  In addition, manufacturers may continue to make higher VOC coatings available under the averaging provisions of the rule and even under the final limits.  Furthermore, the additional information shows an increase in commercially available coatings compliant with the final VOC limits.  A list of these new products is included in the Staff Report, Appendix C.

The Averaging Compliance Option in the rule should allow for sell through of products.

Agree
Language has been added to Appendix A of the rule to clarify  that a coating included in an approved Averaging Program will be allowed to be sold, supplied, offered for sale, or applied for up to three years after the end of the compliance period specified in the approved Averaging Program.

Rust preventative coatings meeting the VOC limit for Industrial Maintenance Coatings, should be allowed by the rule to be used in non-residential settings.

Agree
Section (c)(2) of Rule 1113 specifically indicates that Industrial Maintenance Coatings are not for residential use and rust-preventative coatings are not for industrial use.  Furthermore, the definition of industrial maintenance coatings specifically prohibits their use in residential areas, and the definition of rust preventative coatings indicates that they are limited to metal surfaces found in residential and commercial uses.  However, based on oral testimony in public meetings, as well as subsequent letters from industry members, and considering the requirements of the CARB SCM, the proposal has been revised to indicate that rust preventative coatings may be used in industrial environments as long as the VOC content of those rust preventative coatings meet the compliance limit for the industrial maintenance coating VOC limit.

The AQMD should consider zinc-rich primers as metallic pigmented coatings and not Industrial Maintenance coatings, because there are not adequate zinc-rich coatings available that can meet the proposed 250 g/l limit in the rule.

Disagree
The AQMD believes that zinc-rich industrial maintenance primers used specifically for corrosion protection do not belong in the metallic pigmented coatings category used primarily for aesthetics.  However, the proposed rule has been modified to include a new category called zinc-rich industrial maintenance primers, and an interim limit of 340 g/l limit has been proposed effective January 1, 2003 , with a final limit of 100 g/l, effective July 1, 2006 .

 

Low VOC floor coatings are inferior to their high VOC counterparts.

Disagree
The AQMD has empirical data showing that low-VOC floor coatings perform just as well, and in some cases, better than their higher VOC counterparts.  As a part of technology assessment for the May 1999 amendments, staff identified hundreds of floor coatings that comply with both the 100 g/l interim VOC limit, as well as the 50 g/l VOC limit to be implemented in July 2006.  Furthermore, the technology assessment recently completed by KTA TATOR, assessed the performance of both single- and multi-component floor coatings.  This analysis indicated that the best performing floor coating was a zero-VOC, two-component coating, and one of the two single component compliant floor coatings performed better than the higher VOC floor coatings for most characteristics, while the other performed worse.  Additionally, staff has identified numerous additional single- and multi-component floor coatings that meet the interim VOC limit of 100 g/l as well as the final VOC limit of 50 g/l, and are included in Appendix C of the Staff Report.  Based on the District’s technology assessment and KTA Tator’s laboratory assessment, the interim VOC limit of 100 g/l and the final VOC limit of 50 g/l are feasible.

Low VOC high-gloss nonflat coatings are inferior to their high VOC counterparts.

Disagree
The testing conducted by KTA TATOR on each category of coatings was designed to assess the overall performance, and the TAC did not specify that one characteristic was more important than another.  The tables summarizing the results for both interior and exterior high-gloss nonflats indicate that for some characteristics, the low-VOC compliant products performed equivalent to or better than their higher VOC counterparts, as well as worse for some characteristics.  This does not indicate that the coating that performed worse completely failed.  In the KTA TATOR study, as well as the SCM, High Gloss Non-Flats are defined as coatings with a gloss of no less than 70 on a 60 degree meter.  This was the criteria used by the TAC, who had oversight over the coatings selected and used in the assessment.  The TAC relied upon gloss values published in the manufacturer’s data sheets.  The actual measurement for gloss shows that none of the coatings included in the testing, which includes the products with a VOC content less than 150 g/l, as well as more than 150 g/l met the gloss values, including the product manufactured and sold by the commentator’s employer, met the gloss levels indicated in the high-gloss nonflat definition.  The actual gloss values of waterborne coatings have been an issue within the industry for several years, and prompted the Master Painter’s Institute to conduct a special study entitled “New MPI gloss levels study 'spotlights' industry problem”.  This study also concluded that the industry has caused a lot of confusion in their marketing literature by going away from actually reporting gloss levels at both the 60 degree and 85 degree meter.  MPI proposed to adopt standardized gloss reporting methods as a resolution to this on-going issue.  Additionally, the staff report includes lists of approved products by MPI, including nonflat coatings that meet the high gloss criteria of 70 or greater on a 60 degree meter.  This clearly shows that compliant nonflat high gloss coatings are available and meet the MPI standards for performance, including gloss.

 

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