# San Joaquin Valley AIR POLLUTION CONTROL DlSTRlCT

GOVERNING BOARD
Chris Vierra, Chair Councilmember. City of Ceres DATE: September 17,2009 Tony Barba. Vice Chair TO: SJVUAPCD Governing Board Supervisor, Kings County
David 6. Ayers Councllmember. C~ty of Hanford FROM: Seyed Sadredin, Executive ~irect-orlk~0 Project Coordinator: George Heinen Judith G. Case Supervisor, Fresno County RE: ADOPT PROPOSED AMENDMENTS TO RULE 4602 Ronn Oominici {MOTOR VEHICLE ASSEMBLY COATINGS), RULE4603 Superv~sor, Madera County [SURFACE COATING OF METAL PARTS AND HenryJay Forman, ~h.0. PRODUCTS). RULE 4653 (ADHESIVES),AND RULE Appo~nted byGovernor 4684 (POLYESTER RESIN OPERATIONS)
JesusJ. Gamboa Councilmember. City of Visalia
Ann Johnston RECOMMENDATION: Mayor, City of Stockton 1. Adopt proposed amendments to Rule 4602 (Motor Vehicle Randy Miller Councilmember. City of Taft Assernbly Coatings), Rule4603 (Surface Coating of Metal Parts and Products), Rule 4653 (Adhesives), and Rule 4684 (Polyester MichaelC. Nelson Resin Operations). Supervisor, MercedCounty William ~'~rien 2. Authorize the Chair to sign the attached Resolution. Supervisor, Stanislaus County Leroy Ornellas Supervisor, SanJoaquin County BACKGROUND:
John G. Telles, M.D. Appointed byGovernor The Clean Air Act (MA)provides that state implementation plans (SIPS) Raymond A. Watson for nonattainment areas must include "reasonably available control Supervisor, Kern County meas~~res", including "reasonably available control technology" (RACT),
J. StevenWorthley for sources of emissions. The CAA further provides that for certain Supervisor, Tulare County nonattainment areas, States must revisetheir SIPSto include RACT for each category of volatile organic compound (VOC) sources covered by a SeyedSadredin Control Techniques Guidelines (CTG) document issued between Executive Director Air Pollution Control Officer November 15, 1990 and the date of attainment. CTGs identify emission limits achievable by the applicationof RACT. NorthernRegion Office 4800 EnterpriseWay Modesto, CA 95356-8718 In September 2008, the United States Environmental Protection Agency (2091 5576400 FAX (209) 557-6475 (EPA) promulgated four new CTGs: A~tomobile and Light-Duty Truck

Central Region Office Assembly Coatings; Miscellaneous Metal and Plastic Parts Coatings;
1990East Gettysburg Avenue Miscellaneous IndustrialAdhesives; and Fiberglass Boat Manufacturing Fresno. CA 93726-0244 15591 230.6000 FAX (5591230-6061 Materials. Implementationof these C--Gs is not expected to have significant VOC emission reduction bezauseValley facilities are already Southern RegionOffice using materials that are close to the C iGVOC limits. Nonetheless, CAA 34946 Flyover Court Bakersfield, CA 93308-9725 (6611392.5500 FAX (6611392-5585SJVUAPCD Governing Board ADOPT PROPOSEDAMENDMENTS TO RULE 4602, RULE 4603, RULE 4653 AND RULE 4684 September 17,2009 section 182(b)(2) requires that each CTG include the date by which states must submit SIP revisions in responseto the CTG. EPA is providing a one-year period for the required submittal.



### DISCUSSION: The following are proposed major amendments to Rules 4602, 4603, 4653, and 4684. Please refer to the Final Draft Staff Reportsfor details of the proposed rule amendments. Proposed Amendments to Rule 4602 (Motor Vehicle Assembly Coatings)
Rule 4602 would be amended to implement RACT requirements as p'resentedin the CTG for Automobile and Light-Duty Truck Assembly Coatings, and motor vehicle materials VOC limits recommended in the CTG for Miscellaneous Metal and Plastic Parts Coatings. Proposed amendments, effective on and after January 1,2011, would make this rule applicable to any personwho applies VOC-containing coatings to new automobiles, light-duty trucks, or heavier vehicles. VOC limits, work practices, and exemptions would be updated to reflect the new rule requirements.
Issues on Rule 4602 and District Staffs Response Requestswere made that provisions that were not included in the CTG be removed. The District response is that the amendments that are not from the CTG are already inplace in other District's prohibitory rules applying to these businesses. These provisions are included to make the rule easier for operators to follow and understand, in that they could look at only one rule to determinewith which requirements they would need to comply. Proposed Amendments to Rule 4603 (Surface Coating of Metal Parts and Products)
Rule 4603 would be amended to implement RACT requirements as presented in the CTG for Miscellaneous Metal and Plastic Parts Coatings promulgated by EPA in September 2008, as required by the CAA. Proposed amendments, effective on and after January 1, 201 I, would be applicable to any facility operator who applies VOCcontaining coatings to miscellaneous metal parts and products, plastic parts and products, 

### automotive/transportationand business machine plastic parts and products, and pleasure crafts coating operations. The amendments would establish VOC limits for several coating categories depending on the type of parts and products being coated, provide exemptions for certain types of coatings, specifywork practice standards, establish a VOC control device capture and control efficiency, and update several definitions of terms used inthe rule, which are consistent with the recommendations by the CTG. The VOC limitswould only apply to operators whose total facility VOC emissions from all coating operations and related cleaning, beforeSJVUA PCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4602, RULE 4603, RULE 4653 AND RULE 4684 September 17,2009 consideration of controls, is at least 2.7 tons of VOC per 12-month rolling period. Operators whose total VOC emissions are below this emission 'threshold are not required to comply with the applicable coatings VOC limits, except for complyingwith certain recordkeeping requirements.
Issues on Rule 4603 and District Stars Response California Air Resources Board (ARB) ARB staff suggested lowering the coatings' limits in Rule 4603 for general onecomponent, general two-component, electric dissipating, and shock-free coatings to meet the same limits as the South Coast AQMD Rule 1145 (Plastic, Rubber, Leather, and Glass Coatings). Also, ARB recommendedthat storage containers should be made "airtight".
District Stars Response: As stated by District staff inthe Final Draft Staff Report, the sole purpose of these proposed Rule 4603 amendments is to incorporate the RACT requirementsestablished by EPA in the 2008 CTG for miscellaneous metal parts and products coatings, plastic parts and products coatings, and pleasure craft coatings. Unlike the CTGVOC limits for pleasure craft coatings which is similar to SCAQMD Rule 1106 (Pleasure Craft Coating Operations),the SCAQMD Rule 1145 VOC limits for plastic parts and products coatings are beyond RACT and are not prescribed in the CTG. District staff will review the SCAQMD Rule 1145 provisions for potential emissions reductions, in the context of future attainment plan control measure. District staff incorporated thework practices standards recommended in the CTG. The CTG requires the storage containers used for VOC-containing materials to be kept closed at all times except when depositingor removing these materials. The CTG does not require airtight containers. National Paint Coating Association (NPCA) NPCA commented that the proposed VOC limits for pleasure craft coatings, especially in the cases of high gloss, extreme gloss, and antifouling coatings are too low. NPCA member companies have made and will continue to make efforts to develop effective lower VOC pleasure craft coatings, but so far have not been able to do so at the CTG limits. District Staff's Response: The proposed pleasure craft coating limits in Rule 4603 are required bythe federal CTG. The CTG pleasure craft coatings VOC content limits are identical to the limits in SCAQMD Rule 11 06.1 (Pleasure Craft Coating Operations). It is important to mention that the SCAQMD Rule 1106.1 limits have been in place since January 1, 2001. In a telephone conversation, SCAQMD staff indicated their sources are able to comply with Rule 1106.1 limits, and that compliant coatings are commercially available. This provision is not expected to impact the single facility in the Valley, as ,the operation is currently in compliancewith the CTG limit.SJVUAPCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4602, RULE 4603, RULE 4653AND RULE 4684 September 17,2009
ProposedAmendments to Rule 4653 (Adhesives)
Rule 4653 would be amended to implement RACT requirements as presented inthe CTG for Miscellaneous industrial Adhesives promulgated by EPA in September of 2008, as required by the CAA. Proposed amendments, effective on and after January 1, 201 1,would include updates to definitions and VOC limits, the addition of new adhesives categories, and new work practices.
Issues on Rule 

### 4653 and District Staff's Responses CaliforniaAir Resources Board (ARB) ARB has issued comments requesting the District add requirementsfor sealants and sealant primers to rule language. ARB has also requestedthe District reduceVOC limitsfor adhesives categoriesto match those of South Coast AQMD and Ventura CountyAPCD.
DistrictStaffs Response: The sole purpose of this project is to implement standards presented in the EPA CTG inorder to comply with CAA requirements. However, the District2007 Ozone Plan committed to amend Rule4653 in the third quarter of 201 0. Therefore, staff intendsto re-open Rule 4653 to evaluate the technological and economic feasibility of the addition of sealants and sealant primers to rule language as well as explore the feasibility of loweringVOC limits for certain adhesive categories to make this rule better align with other districts' adhesives rules. Proposed Amendments to Rule 4684 (Polyester Resin Operations)
Rule 4684 would be amendedto implement RACT requirements as presented inthe CTG for Fiberglass Boat manufacturing Materials promulgated by EPA in September 2008. Proposed amendments, effective on and after January 1,2011, would be applicable to any boat manufacturing facilities that manufacture hulls or decks of boats from fiberglass, or build molds to makefiberglass boat hulls or decks using an open molding process. The amendments would establishVOC limits for resins and gel coats used in manufacturing of fiberglass boat hulls and decks, provide an exemption for certain production resin for use in military vessels or to meet specific U.S. Coast Guard requirements,specify work practice standards, establish a VOC control device capture and control efficiency, and update several definitions of terms used inthe rule, which are consistent with the recommendations by the CTG. The new VOC limits would only apply to operators whose total facility VOC emissions from all fiberglass boat manufacturingoperations and related cleaning is at least 2.7 tons of VOC per 12-month rolling period. Operators whose total VOC emissions are below this emission threshold are not required to comply with the applicable coatingsVOC limits, except for complying with certain recordkeeping requirements.SJVUAPCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4602, RULE 4603, RULE 4653 AND RULE 4684 September 17, 2009 Issues on Rule 4684 and District Staffs Responses
United States Environmental Protection Agency (EPA) EPA commented that the existingVOC limits, emission control system efficiency, and application methods in Rule 4684 for non-fiberglassboat manufacturing facilities are less stringent than other air districts' r~~les, and therefore constitute RACT deficiencies as cited in EPA's Technical Support Documentfor proposed limited approval/disapproval of Rule4684 that EPA published in 74 FR 34704. District Staff's Response: As stated inthe District's RACT SIP Demonstration that was submitted to EPA inApril 2009, although Rule 4684 limits are not identicalto those contained within other districts' rules, those are considered beyond RACT. The VOC limits and emission control requirementsof Rule 4684 are consistent with the standards specified inARB's "Determination of ReasonablyAvailable and BestAvailable Retrofit ControlTechnology for Polyester Resin Operations",which EPA should consider as the basis for RACT since there is no CTG for this source category. District staff researched ozone nonattainment areas in other states that are also required by CAA to have RACT rules, and found that they have no specific regulationson polyester resin operations even though they have sources intheir jurisdictions. Staff believesthat inthe absence of a CTG for this source category, RACT is defined by the standards inARB's RACT determination document,which was the basis of Rule4684. District staff will review the benefits and costs of strengtheningthe rule beyond RACT inthe context of an attainment plan control measure. California Air Resources Board (ARB) Rule 4684 does not meet the requirementsof the state Health and Safety Code which requires districts with serious air pollution to require BARCT and all feasible measures. Other air districts rules have more stringent requirements for low-use operations, polyester resin monomer contents, and higher capture and control efficiency than Rule 4684. It is critical for that the District take this opportunity to amend the rule to incorporate these more stringent requirements, maximizing the emissions reductions from the rule and ensuring Rule 4684 conforms to state law.
District Staffs Response: As stated by District staff in the Final Draft Staff Report, the sole purpose of these proposed Rule 4684 amendments is to incorporate the RACT requirements established by EPA in the 2008 CTG for fiberglass boat manufacturing materials. The District understands that state law requires ozone nonattainment areas to implement BARCT and allfeasible measures. During the developn~ent of the Ozone Plan, the District did not recommendthis source category as a control measure because no significant VOC reductions could be achieved by lowering the existing monomer VOC limits and increasing the capture and control efficiency. District staff will review the other air districts' rule provisionsfor potential emissions reductions, and schedule rulemaking as part of the District's2010 mid-course review of the Ozone Plan.SJVUAPCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4602, RULE 4603, RULE 4653 AND RULE 4684 September 17,2009

Cost Effectiveness and Socioeconomic Analysis
Pursuantto California Health & Safety Code Section40920.6(a), the District is requiredto analyze the cost effectivenessof new rules or rule amendmentsthat implement Best Available Retrofit Control Technology (BARCT) or planning requirementsto incorporateall feasible measures. The draft amendmentsto Rl~les 4602, 4603,4653 and 4684 would only addfederal RACT requirements, and are therefore not subject to the cost effectiveness analysis mandate. Pursuant to California Health & Safety Code Section40728.5 (a) an assessment of the socioeconomic impacts is not required for any rule or regulationthat only adopts a requirementthat is substantially similar to, or is required by state or federal statute, regulation, or applicable formal guidance, such as a federal CTG. Since the proposed amendments to Rules 4602, 4603,4653 and 4684 would implement the CTG standards mandated by the federal Clean Air Act, a socioeconomic impact analysis is not required.

Rule Consistency Analysis
As required by California Health & Safety Code Section 40727.2, District staff will prepare a rule consistency analysis later in the rule development process that compares the elements of amendments with the corresponding elements of other District rules, federal regulationsand guidelinesthat apply to the same source category or type of equipment. The analysis has indicated that none of the proposed requirements of these rules would conflictwith federal r~~les, regulations, or policies covering similar stationary sources. The rule consistency analyses for the proposed amendments to the rules are presented inAppendix B of the respective Final Draft Staff Reports.

Environmental Impacts
Pursuant to the California Environmental Quality Act (CEQA), staff investigatedthe possible environmental impactsof the proposedamendments to Rules 4602,4603, 4653 and 4684. Based on the lack of evidence to the contrary, District staff has concluded that the proposedamendmentsto the ruleswill not have any significant adverse effects on the environment. Staff recommends filing a Notice of Exemption underthe provisionsof Public ResourceCode 1 5061 (b)(3).

Rule Development Process In June 2009, as part of the rule development process, District staff mailed copies of the proposed amendments to Rules 4602,4603, 4653 and 4684 to affected sources, interested parties, the public, EPA andARB to solicit their comments. In addition, the notice of the proposed amendmentsto the ruleswas also published in a generalSJVUAPCD GoverningBoard ADOPT PROPOSED AMENDMENTS TO RULE 4602, RULE 4603, RULE 4653AND RULE 4684 September 17,2009 circulation newspaper in each of the eight San Joaquin Valley counties. The commenting deadline ended on July 20, 2009. Comments received during the rule development processwere incorporated into the rule amendments as appropriate. Comments received and District staffs responsesare discussed in Appendix A of the Final Draft Staff Reports.
The notice of the public hearing for the proposed rules will be published in a general circulation newspaper in each of the eight San JoaquinValley counties and was mailed to affected sources, interested parties, the public, EPA and ARB. The public notice will solicit written comments to be submitted by mail, and it also identified the name and telephone number of the District staff who can answer questions and respondto comments. The Receiveand Filefor these proposed rule amendments occurred on August 20, 2009. The public hearingto consider the proposed actions by the District Governing Board is scheduled for September 17, 2009.

FISCAL IMPACT: District staff expects no fiscal impactto result from this action.

Attachments: Resolution for Proposed Amendments to Rules 4602, 4603, 4653 and 4684 (5pages) Proposed Amendments to Rule 4602 (30pages) ProposedAmendments to Rule 4603 (32 pages) ProposedAmendments to Rule 4653 (28 pages) Proposed Amendments to Rule 4684 (22pages) Final Draft StaffRepolf with Appendices for Proposed Amendments to Rule 4602 (34 pages) Final Draft StaffReport with Appendices for Proposed Amendments to Rule 4653 (28 pages) Final Draft Staff Repolf withAppendices for Proposed Amendments to Rule 4603 and Rule 4684 (42pages)