(Adopted June 6, 2008)(Amended January 9, 2009)(Amended May 7, 2010) 

(Amended May 6, 2011) 

RULE 314. FEES FOR ARCHITECTURAL COATINGS 

(a) Purpose 

The purpose of this rule is to recover the District’s cost of implementing the architectural 

coatings program and programs related to architectural coatings, and the revenues shall 

only be used for such purposes. California Health and Safety Code Section 40522.5 

provides authority for the District to adopt a fee schedule on areawide or indirect sources 

of emissions which are regulated, but for which permits are not issued by the District, to 

recover the costs of programs related to these sources. 

(b) Applicability 

This rule applies to architectural coatings manufacturers that distribute or sell their 

manufactured architectural coatings into or within the District for use in the District and 

are subject to Rule 1113 - Architectural Coatings. This rule also applies to big box 

retailers that distribute or sell architectural coatings into or within the District for use in 

the District and are subject to Rule 1113 – Architectural Coatings. This includes 

products sold through big box retailers with distribution centers located within or outside 

the District. This rule does not apply to architectural coatings sold in this District for 

shipment and application outside of this District or to aerosol coating products. 

(c) Definitions 

For the purpose of this rule, the following definitions shall apply: 

(1) AEROSOL COATING PRODUCT means a pressurized coating product 

containing pigments or resins that dispenses product ingredients by means of a 

propellant, and is packaged in a disposable can for hand-held application, or for 

use in specialized equipment for ground marking and traffic marking applications. 

(2) ANNUAL QUANTITY AND EMISSIONS REPORT includes the quantity of 

each architectural coating distributed or sold into or within the District for use in 

the District during each calendar year, reported as gallons and their associated 

VOC content, as supplied, reported in grams per liter, for each product in all 

container sizes. 

(3) APPURTENANCES are accessories to a stationary structure, including, but not 

limited to: hand railings, cabinets, bathroom and kitchen fixtures, fences, rain314 – 1 
Rule 314 (cont.) (Amended May 6, 2011) 

gutters and down-spouts, window screens, lamp-posts, heating and air 

conditioning equipment, other mechanical equipment, large fixed stationary tools, 

signs, motion picture and television production sets, and concrete forms. 

(4) ARCHITECTURAL COATINGS are any coatings applied to stationary structures 

and their appurtenances, to mobile homes, to pavements, or to curbs. 

(5) ARCHITECTURAL COATINGS MANUFACTURER is any company or person 

that imports, manufactures, produces, packages, or repackages architectural 

coatings for sale or distribution for use in the District. 

(6) BIG BOX RETAILER is a physically large-chain retail outlet that is classified by 

the U.S. Department of Labor under Standard Industrial Classification code 5211: 

Lumber and Other Building Materials Dealers, and listed by the Executive Officer 

as such prior to end of each calendar year. 

(7) COATING is a material which is applied to a surface in order to beautify, protect, 

or provide a barrier to such surface. 

(8) EXEMPT COMPOUNDS are as defined in Rule 102 - Definition of Terms. 

(9) FORMULATION DATA is the actual product recipe which itemizes all the 

ingredients contained in a product including VOCs and the quantities thereof used 

by the manufacturer to create the product. Material Safety Data Sheets (MSDS) 

are not considered formulation data. 

(10) GRAMS OF VOC PER LITER OF COATING, LESS WATER AND LESS 

EXEMPT COMPOUNDS, is the weight of VOC per combined volume of VOC 

and coating solids and can be calculated by the following equation: 

Grams of VOC per Liter of Coating, Less 

Water and Less Exempt Compounds = Ws - Ww - Wes 

Vm - Vw - Ves 

Where: Ws = weight of volatile compounds in grams 

Ww = weight of water in grams 

Wes = weight of exempt compounds in grams 

Vm = volume of material in liters 

Vw = volume of water in liters 

Ves = volume of exempt compounds in liters 

For coatings that contain reactive diluents, the Grams of VOC per Liter of 

Coating, Less Water and Less Exempt Compounds, shall be calculated by the 

following equation: 

Grams of VOC per Liter of Coating, Less 

Water and Less Exempt Compounds =

Ws - Ww - Wes

Vm - Vw - Ves

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Rule 314 (cont.) (Amended May 6, 2011) 

Where: Ws = weight of volatile compounds emitted during 

curing, in grams 

Ww = weight of water emitted during curing, in grams 

Wes = weight of exempt compounds emitted during 

curing, in grams 

Vm = volume of the material prior to reaction, in liters

Vw = volume of water emitted during curing, in liters 

Ves = volume of exempt compounds emitted during 

curing, in liters 

(11) GRAMS OF VOC PER LITER OF MATERIAL is the weight of VOC per 

volume of material and can be calculated by the following equation: 

Grams of VOC per Liter of Material = Ws - Ww - Wes

Vm

Where: Ws = weight of volatile compounds in grams 

Ww = weight of water in grams 

Wes = weight of exempt compounds in grams 

Vm = volume of the material in liters 

(12) PRODUCT is an architectural coating which is identified by means of a unique 

product code and product name or product line (if applicable), as written on the 

container label and that is subject to one of the coating category VOC limits 

specified in Rule 1113 paragraphs (c)(1) or (c)(2) Table of Standards. 

(13) PRODUCT LINE is a group of coatings that: 

(A) Belong to the same coating category in Rule 1113 Table of Standards, 

(B) Have the same vehicle technology (solvent or water), 

(C) Are of the same resin type, 

(D) Are recommended for the same use (either interior, exterior or dual use), 

(E) Have the same form (either single - or multiple - component form), 

(F) Do not exceed a coating (regulatory) VOC range of 25 grams per liter 

between the highest and lowest coating in the group, and 

(G) If included in the Averaging Compliance Option Program, meet 

subparagraphs (A) to (G) of this definition and have all grouped products 

either above a limit or below a limit. 

(14) RESPONSIBLE PARTY for a corporation is a corporate officer or an authorized 

representative so delegated by a corporate officer. Delegation of an authorized 

representative must be made in writing to the Executive Officer. A responsible 

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Rule 314 (cont.) (Amended May 6, 2011) 

party for a partnership or sole proprietorship is the general partner or proprietor, 

respectively. 

(15) VOLATILE ORGANIC COMPOUND (VOC) is as defined in Rule 1113 – 

Architectural Coatings. 

(d) Requirement to Obtain a Manufacturer Identification (ID) Number 

(1) An architectural coatings manufacturer subject to this rule at any time during the 

calendar year 2008 shall apply to the District for a manufacturer ID number on or 

before December 31, 2008. An architectural coatings manufacturer that becomes 

subject to this rule in any year subsequent to calendar year 2008 shall apply to the 

District for a manufacturer ID number on or before December 31 of that year. 

(2) Change or Acquisition of an Architectural Coatings Manufacturer 

(A) When there is a change or acquisition of an architectural coatings 

manufacturer with a District issued manufacturer ID number, the 

successor architectural coatings manufacturer shall apply for a 

manufacturer ID number on or before December 31 of the calendar year of 

the change or acquisition, unless the successor architectural coatings 

manufacturer already has a District issued manufacturer ID number. The 

successor manufacturer shall include the previous architectural coatings 

manufacturer ID number in their Annual Quantity and Emissions Report 

for the first year after the change or acquisition. 

(B) Acquisition of an architectural coatings manufacturer shall not be 

considered a change in ownership if the architectural coatings 

manufacturer who is acquired continues to file Annual Quantity and 

Emissions Reports and pay fees under its District issued ID number. 

(e) Requirement to Submit an Annual Quantity and Emissions Report 

(1) For each calendar year (January 1 through December 31) beginning with 2008 

and continuing with each subsequent calendar year, an architectural coatings 

manufacturer shall, in a format determined by the Executive Officer, submit to the 

District by April 1 of the following calendar year (the official reporting due date) 

an Annual Quantity and Emissions Report signed by a responsible party 

certifying that all information submitted (including electronic submittal) is true 

and correct. Information included in the Annual Quantity and Emission Report 

that was obtained from a company not owned or controlled by the reporting 

architectural coatings manufacturer shall be certified as true and correct to the 

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Rule 314 (cont.) (Amended May 6, 2011) 

best knowledge of the responsible party signing the certification. The Annual 

Quantity and Emissions Report shall include, but not be limited to, the following: 

(A) Manufacturer information including the manufacturer ID number issued 

by the District; 

(B) Each architectural coating product code and product name or product line 

(if applicable); 

(C) Whether the coatings are waterborne or solventborne; 

(D) Whether the coatings are for interior, exterior, or dual use; 

(E) The applicable coating category listed in the Table of Standards in Rule 

1113 – Architectural Coatings; 

(F) The grams of VOC per liter of coating, less water and less exempt 

compounds for each product as supplied for use by the manufacturer; 

(G) The grams of VOC per liter of material for each product as supplied or for 

multi-component coatings as recommended for use by the manufacturer. 

Additionally, for solvent-based coatings, grams of VOC per liter of 

material with maximum thinning allowed with a VOC, as listed in the 

Technical Data Sheet, shall also be included. 

(H) Total annual quantity of each product distributed or sold into or within the 

District for use in the District, as supplied, and reported in gallons for all 

container sizes. The annual quantity of each product shall include 

products sold through big box retailers with distribution centers located 

within or outside the District. Architectural coatings manufacturers shall 

use the list of big box retailers maintained by the Executive Officer as of 

the end of the calendar year for purposes of reporting quantities of 

products distributed or sold in the District through big box retailers; and 

(I) For any product with VOC content higher than the applicable limit in Rule 

1113, an indication whether the product has been sold under any of the 

following provisions of Rule 1113 – Architectural Coatings: 

(i) Sell-through provisions 

(ii) Averaging Compliance Option 

(iii) Small container exemption 

(iv) Other (with explanation). 

(2) An architectural coatings manufacturer that acquires another architectural 

coatings manufacturer shall provide the information specified in subparagraph 

(e)(1)(A) through (e)(1)(I) for the acquired architectural coatings manufacturer 

for the entire calendar year. 

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Rule 314 (cont.) (Amended May 6, 2011) 

(3) By January 30, 2009, and every year thereafter, a big box retailer shall report to 

the architectural coatings manufacturer of that product the total annual quantity of 

each coating product distributed through its distribution centers for sale or sold in 

the District for the previous calendar year (January 1 through December 31), as 

supplied, in a format determined by the Executive Officer. Big box retailers shall 

use the list maintained by the Executive Officer as of the end of the calendar year 

of big box retailers for purposes of reporting to the appropriate architectural 

coatings manufacturer the quantities of products distributed or sold in the District. 

The report submitted to each architectural coatings manufacturer shall be signed 

by a responsible party certifying that all information reported is true and correct. 

The report shall also be submitted to each architectural coatings manufacturer in 

an electronic spreadsheet format. 

(f) Recordkeeping 

Architectural Coatings Manufacturers shall: 

(1) Maintain a copy of the signed application form submitted to the District to obtain 

the manufacturers ID number, and the written response from the District issuing a 

manufacturer ID number. The copies shall be maintained for five (5) years 

beyond the date on each document, and made available upon request by the 

Executive Officer. 

(2) Maintain records to verify data used to prepare the Annual Quantity and 

Emissions Report from architectural coatings distributed or sold into or within the 

District for use in the District and compliance with applicable rules and 

regulations. The records shall be maintained for five (5) years and made available 

upon request by the Executive Officer. Such records shall include but not be 

limited to: 

(A) Product formulation records (including both grams of VOC per liter of 

coating and grams of VOC per liter of material): 

(i) Laboratory reports [including percent weight of non-volatiles, 

water, and exempts (if applicable); density of the coating; and raw 

laboratory data] of test methods conducted as specified in 

paragraph (m)(1) or 

(ii) Product formulation data or physical properties analyses, as 

applicable, with a VOC calculation demonstration; and 

(B) Production records including, if applicable, batch tickets with the date of 

manufacture, batch weight and volume; and 

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Rule 314 (cont.) (Amended May 6, 2011) 

(C) Distribution records: 

(i) Customer lists or store distribution lists or both (as applicable) and 

(ii) Shipping manifests or bills of lading or both (as applicable); and 

(D) Sales records consisting of point of sale receipts or invoices to distributors 

or both, as applicable. 

(g) Fees 

(1) Manufacturer ID Number Fee 

An architectural coatings manufacturer applying for a manufacturer ID number 

with the District as specified in paragraphs (d)(1) and (d)(2) shall pay a nonrefundable application fee of $174.57 at the time of submitting the application. 

(2) Annual Quantity and Emissions Fees 

(A) An architectural coatings manufacturer shall begin paying fees at the rates 

specified below, on or before April 1, 2009 and each subsequent April 1 

(the official due date). Fees are based on the annual quantity and 

emissions of architectural coatings distributed or sold into or within the 

District for use in the District for the previous calendar year. 

Phased-in Fee Rate 

(i) April 1, 2009 pay an annual quantity fee of $0.018 per gallon of 

paint and an annual emission fee of $123 per ton of VOC 

emissions. 

(ii) April 1, 2010 pay an annual quantity fee of $0.027 per gallon of 

paint and an annual emission fee of $185 per ton of VOC 

emissions. 

(iii) April 1, 2011 and each subsequent April 1, pay an annual quantity 

fee of $0.037 per gallon of paint and an annual emission fee of 

$249.44 per ton of VOC emissions. 

(B) If an architectural coatings manufacturer submits the Annual Quantity and 

Emissions Report in such a manner that District staff has to manually 

enter the data into the District database, then the architectural coatings 

manufacturer shall pay at the time of submittal a non-refundable fee of 

$285.95 for the first two hours of District time. The architectural coatings 

manufacturer shall be assessed additional fees at the rate of $142.99 per 

hour for any additional time beyond the first two hours. 

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Rule 314 (cont.) (Amended May 6, 2011) 

(h) Request to Amend the Annual Quantity and Emissions Report and Refund Request of 

Emission Fees 

(1) An architectural coatings manufacturer shall submit a written request (referred to 

as an “Amendment Request”) for any proposed revisions to previously submitted 

Annual Quantity and Emissions Reports. Amendment requests submitted after 

one (1) year from the official due date of the subject Annual Quantity and 

Emissions Report shall include a non-refundable standard evaluation fee of 

$285.95. In addition, evaluation time beyond two hours shall be assessed at the 

rate of $142.99 per hour not to exceed 10 hours. Amendment requests received 

within one year (1) from the official due date of a previously submitted Annual 

Quantity and Emissions Report shall not incur any such evaluation fees. The 

Amendment Request shall include all supporting documentation and revised 

applicable reports. 

(2) An architectural coatings manufacturer shall submit a written request (referred to 

as a “Refund Request”) to correct the previously submitted Annual Quantity and 

Emissions Report and request a refund of overpaid fees. Refund Requests must 

be submitted within one (1) year from the official due date of the subject Annual 

Quantity and Emissions Report to be considered valid. The Refund Request shall 

include a revised Annual Quantity and Emissions Report and all applicable 

supporting documentation. If the Refund Request submitted results in a refund, 

then the architectural coatings manufacturer shall incur no evaluation fee. If the 

refund request results in no refund, then the architectural coatings manufacturer 

shall pay the standard evaluation fee and the hourly evaluation fees, as 

appropriate, specified in paragraph (h)(1). 

(i) Fee Payments and Late Surcharge 

(1) Fee payments are the responsibility of the architectural coatings manufacturer. 

(2) If both the fee payments and the Annual Quantity and Emissions Report for the 

previous calendar year are not received by May 30, they shall be considered late; 

and a surcharge for late payment shall be imposed for fees past due as set forth in 

paragraph (i)(3). Architectural coatings manufacturers subject to paragraph (d)(2) 

on or after July 1 of the reporting year shall have an additional 6 months, or any 

additional time approved by the Executive Officer, to submit the fee payments 

and the Annual Quantity and Emissions Report for the acquired architectural 

coatings manufacturer. For the purpose of this paragraph, the fee payments and 

the Annual Quantity and Emissions Report shall be considered to be timely 

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Rule 314 (cont.) (Amended May 6, 2011) 

received by the District if it is postmarked on or before May 30. If May 30 falls 

on a Saturday, Sunday, or a state holiday, the fee payments and Annual Quantity 

and Emissions Report may be postmarked on the next business day following the 

Saturday, Sunday, or the state holiday with the same effect as if they had been 

postmarked on May 30. 

(3) If fee payments for the Annual Quantity and Emissions Report (including any 

unreported quantity and emissions) are not received within the time prescribed by 

paragraph (i)(2), a late payment surcharge shall be assessed on the fees past due 

and added to the fee rate in paragraph (g)(2)(A), according to the following 

schedule: 

Less than 30 days 5% of past due amount 

30 to 90 days 15% of past due amount 

91 days to one year 25% of past due amount 

More than one year 50% of past due amount 

(4) Fee Payment Subject to Validation 

Acceptance of a fee payment does not constitute validation of the emission data. 

(j) Service Charge for Returned Checks 

Any person who submits a check to the District on insufficient funds or on instructions to 

stop payment, absent an overcharge or other legal entitlement to withhold payment, shall 

be subject to a $25.00 service charge. 

(k) Confidentiality of Information 

Subject to the provisions of the California Public Records Act (Govt. Code § 6250-

6276.48) information submitted to the Executive Officer may be designated as 

confidential. The designation must be clearly indicated on the reporting form, identifying 

exactly which information is deemed confidential. District guidelines require a detailed 

and complete basis for such claim in the event of a public records request. 

(l) Violation 

It shall be a violation of this rule for any architectural coatings manufacturer to distribute 

or sell their manufactured architectural coatings into or within the District for use in the 

District, without having a manufacturer ID number issued by the District, within the time 

specified in subdivision (d). 

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Rule 314 (cont.) (Amended May 6, 2011) 

314-10 

(m) Test Methods 

For the purpose of this rule, test methods are as specified in Rule 1113. 

(n) Severability 

If any provision of this rule is held by judicial order to be invalid, or invalid or 

inapplicable to any person or circumstance, such order shall not affect the validity of the 

remainder of this rule, or the validity or applicability of such provision to other persons 

or circumstances. In the event any of the exceptions to this rule are held by judicial order 

to be invalid, the persons or circumstances covered by the exception shall instead be 

required to comply with the remainder of this rule. 

(o) Distributor(s) List 

On or before January 1, 2009, and each subsequent January 1, all architectural coatings 

manufacturers subject to this rule shall provide to the District a list of all U.S. distributors 

to whom they supply architectural coatings, including but not limited to private label 

coatings and toll manufactured coatings. The list shall be in a format determined by the 

Executive Officer and shall include the distributors name, address, contact person and 

phone number. 

(p) Exemption 

(1) Notwithstanding the provisions of subparagraph (g)(2), fees shall not be assessed 

on coatings with 5 or less grams of VOC per liter of material. 

(2) Fees shall not be assessed on recycled coatings distributed or sold into or within 

the District by a certified recycled paint manufacturer. Recycled Coating is as 

defined in Rule 1113, and certified recycled paint manufacturer shall be as 

certified pursuant to Rule 1113.