Ann Johnston, Vice Chair

Mayor, City of Stockton Tony Barba Supervisor, Kings County DATE: June 16, 2011 TO: SJVUAPCD Governing Board 

# HEALTHY AIR 

# LIVING' 

# San Joaquin Valley AIR POLLUTION CONTROL DISTRICT

GOVERNING BOARD

J. Steven Worth ley, Chair Supervisor, Tulare County

1. Judith G. Case Supervisor, Fresno County
Roan Dominici Supervisor, Madera County Henry Jay Forman, Ph.D. Appointed by Governor Randy Miller Mayor, City of Taft
William O'Brien Supervisor, Stanislaus County Leroy Ornellas Supervisor, San Joaquin County
Chris Vierra Mayor, City of Ceres
Hub Walsh Supervisor, Merced County Raymond A. Watson Supervisor, Kern County
Vacant Small City Representative, Kings County
Vacant Large City Representative, Tulare County
Vacant Appointed by Governor

Seyed Sadredin Executive Director Air Pollution Control Officer
Northern Region Office 4800 Enterprise Way Modesto, CA 95356-8718 1209) 557-6400 • FAX 1209) 557-6475
Central Region Office 1990 East Gettysburg Avenue Fresno, CA 93726-0244 1559) 230-6000 • FAX 1559) 230-6061
Southern Region Office 34946 Flyover Court Bakersfield, CA 93308-9725 1661) 392-5500 • FAX 1661) 392-5585 FROM: Seyed Sadredin, Executive Dire

- ctor/APCO Project Coordinator: Errol Villegas ADOPT PROPOSED AMENDMENTS TO RULE 4605 (AEROSPACE ASSEMBLY AND COMPONENT COATING OPERATIONS)

RECOMMENDATION: Adopt Proposed Amendments to Rule 4605 (Aerospace Assembly and Component Coating Operations).
2. Authorize the Chair to sign the attached Resolution.

BACKGROUND: Rule 4605 (Aerospace Assembly and Component Coating Operations) was originally adopted December 1991 and was last amended in September 2007. This rule includes stringent emissions limitations that control VOC emissions from various aerospace coating operations. There are currently 14 facilities that are subject to the requirements of this rule with total aerospace coating emissions of only 0.02 tons per day of VOCs. On July 17, 2009, EPA evaluated Rule 4605 for meeting Reasonably Available Control Technology (RACT) requirements. EPA determined that Rule 4605 satisfied RACT requirements for aerospace assembly and component coating operations. However, EPA also determined that additional review was required to ensure RACT was satisfied based on an EPA Control Techniques Guideline (CTG) Document for this source category (EPA-4531R-97-004) that includes additional limitation for coatings that have limited applicability to Valley sources. EPA suggested consideration of additional requirements through a Technical Support Document (TSD). Today's recommendations will revise rule language in accordance with EPA's TSD and end the 18- month sanction clock associated with their action. RE:

www.valleyairorgSJVUAPCD Governing Board

ADOPT PROPOSED AMENDMENTS TO RULE 4605 (AEROSPACE ASSEMBLY AND COMPONENT COATING OPERATIONS) June 16, 2011



### DISCUSSION: On January 26, 2010, EPA published in the Federal Register a limited approval and limited disapproval Rule 4605. Because of the limited disapproval, sanctions will be imposed on the District unless EPA approves subsequent SIP revisions within 18 months of the effective date of this action. The District is proposing to incorporate EPA's recommended changes, and stop the associated18-month sanction clock. Summary of Proposed Amendments to Rule 4605 

### District staff is proposing 17 new coating categories to be added to Table 1 "VOC Content Limits" and lowering two existing VOC limits. Additionally, definitions will be added to Section 3.0 of the rule to clarify new coating types. To allow for rule dissemination, sell-through of stock, and ensure operator compliance, District staff proposes an effective date for the new and revised VOC content limits of January 1, 2013. District staff is also proposing to include an exemption to some of the new VOC content limits for Department of Defense (DoD) classified coatings and aerospace vehicle coatings based on guidance provided in the CTG. Administrative changes to show updates to test methods and practices are also proposed to add rule clarity. Emission Reduction Analysis 

### The ARB emissions inventory shows VOC emissions of 0.02 tons of VOC per day for this industry. VOC emissions reductions from the proposed amendments will be insignificant since most affected operators are already in compliance with the proposed amendments or can use readily available coatings compliant with the new categories. Cost Effectiveness Analysis 

### Pursuant to California Health & Safety Code (CH&SC) §40920.6(a), the District is required to analyze the cost effectiveness of new rules or rule amendments that implement Best Available Retrofit Control Technology (BARCT) or all feasible measure. The proposed amendments to Rule 4605 would add federal RACT requirements but not BARCT or all feasible measures, and are therefore not subject to the cost effectiveness analysis mandate.
Socioeconomic Analysis 

### Pursuant to CH&SC §40728.5 (a) an assessment of the socioeconomic impacts is not required for any rule or regulation that only adopts a requirement that 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 Rule 4605
2SJVUAPCD Governing Board

ADOPT PROPOSED AMENDMENTS TO RULE 4605 (AEROSPACE ASSEMBLY AND COMPONENT COATING OPERATIONS) June 16, 2011
implement the CTG standards mandated by the federal Clean Air Act, a socioeconomic impact analysis is not required. The CTG limits are not expected to cause a significant socioeconomic impact as affected sources do not use coatings subject to the new categories, or can use readily available coatings compliant with the new categories. Rule Consistency Analysis As required by CH&SC §40727.2, District staff conducted a rule consistency analysis. That consistency analysis compared the elements of the 2007 version of Rule 4605 with the corresponding elements of other District rules, federal regulations and guidelines that apply to the same source category or type of equipment. Because this rule amendment project only incorporates changes suggested in EPA's TSD, much of the rule consistency analysis from the 2009 RACT SIP is still valid. Updates to the 2009 RACT SIP Rule Consistency Analysis have been incorporated into the analysis which is included in the Draft Staff Report. Based on the updated analysis, District staff found that the proposed amendments to Rule 4605 would not conflict with federal rules, regulations, or policies covering similar stationary sources. Environmental Impacts Pursuant to the California Environmental Quality Act (CEQA), staff investigated the possible environmental impacts of the proposed amendments to Rule 4605. The District finds that the project is exempt per the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment (CCR §15061(b)(3)). For these reasons, staff is proposing to file a Notice of Exemption upon Board adoption of the proposed amendments to Rule 4605. Rule Development Process As guidelines for amending Rule 4605 to incorporate the 19 VOC coating limits, District staff reviewed the CTG for this source category, the 2007 Ozone Plan, rules in other air districts, and Federal and State regulations. Staff also conducted literature and internet research when evaluating the 19 CTG limits for control of VOC emissions from coating operations at aerospace manufacturing and rework operations. Staff developed a survey for sources to inform the District as to the extent that these 19 new CTG limits would affect their business. Over two-thirds of the surveys were returned and most sources marked that they are currently using compliant coatings or that compliant coatings are available for them to use. District staff worked closely with those sources that indicated a potential impact as a result of the new limits. The notice of the public hearing for the proposed rule amendments was published in general circulation newspapers in each of the eight San Joaquin Valley counties, and will be made available for review on the District website. The public notice solicited written comments to be submitted, and identified the name and telephone numbers of the District staff who can answer questions and respond to comments. A summary of
3SJVUAPCD Governing Board

ADOPT PROPOSED AMENDMENTS TO RULE 4605 (AEROSPACE ASSEMBLY AND COMPONENT COATING OPERATIONS) June 16, 2011


### the comments received and District responses are presented in Appendix A of the Final Draft Staff Report. FISCAL IMPACTS: District staff expects no fiscal impact to the District to result from this action.

Attachments: Attachment A: Resolution for Proposed Amendments to Rule 4605 — (5 pages)

Attachment B: Proposed Rule 4605 - (20 pages) Attachment C: Final Draft Staff Report with Appendices for Proposed Rule 4605 —

(106 pages)



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