SJVUAPCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4653 (ADHESIVES AND SEALANTS) September 16, 2010



### DISCUSSION:

Rule 4653 was adopted by the District Governing Board on March 17, 1994 and has since been amended six times. In Septernber 2008, the Environmental Protection Agency (EPA) promulgated a Control Techniques Guideline (CTG)for Miscellaneous Industrial Adhesives (EPA-453lR-08-005); to which EPA provided a one-year periodfor the submittal of the SIP revision in response to the CTG. As such, the District Governing Board adopted amendmentsto incorporatethe CTG requirements in September 2009. The 2009 amendments includedVOC content limitsfor certain adhesives products and new work practice requirements. 'The effective date of the most recently adopted VOC content limits is January 1,2011.

Currently,the adhesives source category includes any person who supplies, sells, offers for sale, or applies any adhesive product, or associated solvents, for usewithin the San Joaquin Valley Air Basin (SJVAB). This rule-amending project incorporates the more stringent VOC limits for adhesives currently enforced in several other air districts in California, and adds sealant products to rule requirements. Proposed amendments make this rule more stringent than other adhesives and sealants rules in other air districts in California and satisfies a commitment in the 2007 Ozone Plan. 'The proposed effective date of new VOC content limits and new adhesive and sealant product requirements is January 1, 2012.

Summary of ProposedAmendments to Rule 4653

The following is a summary of proposed amendmentsto Rule 4653:

Section 3.0 

### - Definitions The "Definitions" section would be expanded from 97 definitions to 140definitions. The added definitionswould clarify current rule requirementsas well as provide for the addition of sealant products, and new adhesive product categories to rule language.

Section 4.0 - 

### Exemptions This section would be amended to include sealant products.

Section 5.0 

### - Requirements Adhesive product VOC content limits would be amended to make the limits as stringent

as adhesive VOC limits in other air districts. Additionally, sealant products and new adhesive product categories not previously regulated or previously regulated as another adhesive product with a higher VOC content limit would be added to rule language. Staff is proposing a sell through period be added to rule language similar to that in the District Architectural Coatings Rule (Rule 4601) to provide a sell through period of 12 months after the effective date of new VOC content limits to provide an opportunity for manufacturers and retailersto sell any stock on hand. Additionally, the District would allow the application of any adhesive and sealant productsfor up to 24 months after the effective date of the new VOC content limits to allow users to use any productsS JVUA PCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4653 (ADHESIVES AND SEALANTS) September 16,2010

purchased during the 12-month sell-through period. A labeling requirement would be imposed on products used during the sell through periodfor compliance purposes.

Section 6 

## - Administrative Requirements Administrative requirements would be amended to include sealant products.

Emission ReductionAnalysis

The SIP commitment in the Ozone Plan calls for this rule projectto reduce VOC emissions from this source category by 3% from the baseline inventory, upon rule implementation. Proposed amendments would reduce VOC emissions by an estimated 18%,far exceeding the District's SIP commitment. Details of the emission reduction analysis are presented in Appendix B of the Final Draft Staff Report.

Cost Effectiveness Analysis

The California Health and Safety Code 40920.6(a) requires District staff to conduct a cost effectiveness analysis of available emission control options prior to adopting each Best Available Retrofit Control Technology (BARCT) rule. The analysis serves as a guidelinefor developing the control requirements of the rule. For this project the compliance costs are associated with purchasing new adhesive, adhesive primer, sealant and sealant primer products with complaint VOC content limits. District staff used available cost information obtained from Internet searches, store visits, and staff reports from other Air Districtsto conduct a cost effectiveness analysis of the proposedamendmentsto Rule 4653. Products with proposed adhesive and sealant VOC content limits are readily available at the same price points as adhesives products with current VOC content limits that will become non-compliant upon rule implementation on January 1, 2012. Availability of product, combined with the proposed sell through period of 12 months for existing products and 24 month provision for use of no longer compliant materials has led staff to conclude that there would be no significant adverse impacts onthe profitability of businesses affected by the rule. Details of the cost effectiveness analysis are presented in Appendix C of the Final Draft Staff Report.

SocioeconomicAnalysis

Pursuant to CH&SC 40728.5, "whenever a district intends to proposethe adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency shall, to the extent data is available, perform an assessment of the socioeconomic impacts of the adoption, amendment, or repeal of the rule or regulation." Staff has determined there would be no significant socioeconomic impacts from this rule-amendment project.SJVUAPCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4653 (ADHESIVES AND SEALANTS) September 16,2010

Rule ConsistencyAnalysis

Pursuantto CH&SC 40727.2, District staff has prepared a rule consistency analysis that compares the elements of amendments with the corresponding elements of other District rules, federal regulations and guidelines that apply to the same source category or type of equipment. District staff found that the proposed amendments and requirements of this rule would not conflict with federal rules, regulations,or policies covering similar stationary sources. The rule consistency analysis is presented in Appendix D of the Final Draft Staff Report.

Environmental Impacts

Pursuant to the California Environmental Quality Act (CEQA), staff investigatedthe possible environmental impacts of ,the proposed amendments to Rule 4653. Based on the lack of evidence to the contrary, District staff has concluded that the proposed amendments to the rule will not have any significant adverse effects on the environment. As such, staff recommends filing a Notice of Exemption underthe provisions of Public Resource Code 15061(b)(3).

Rule Development Process

As part of the rule development process, public workshops were held in February and July 2010 to present the draft rule amendments and seek additional comments from the public. Staff incorporated comments received during the rule development process as appropriate.

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 was made available for review on the Districtwebsite. 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 the comments received and District responses are presented inAppendix A of the Final Draft Staff Report.

Issues and Responses

During the rule-amending process, staff received one stakeholder comment. The commenter expressed concern regardingthe feasibility of PVC welding adhesives with the existing 500 gll VOC content limit that would take effect on January I, 201 1. The VOC content limit was lowered from 

### 510 gll to 500 gll in September 2009 in responseto the 2008 EPA Control Techniques Guideline (CTG) for Industrial adhesives.SJVUAPCD Governing Board ADOPT PROPOSED AMENDMENTS TO RULE 4653 (ADHESIVESAND SEALANTS) September 16,2010

In response to the comment, staff further researchedthe availability of PVC welding adhesives with a 500 gll VOC content and the technological feasibility of manufacturing it. Conversations with staff from EPA Region IX indicated that the 500 gll VOC content limit inthe CTG for PVC welding adhesives may have been an oversight and is not tect~nologically feasible at this time. EPA now concurs with the previous VOC content limit of 510 gll and recommends the District adopt this limit.

No emission reductions were claimed from this adhesive category during the 2009 ruleamending project. Becausethe VOC content limit has yet to take effect and no emissions reductions were claimed, there will be no increase in emissions from this rule-amending project. 'The 500 gll VOC limit has not been approved into the District's SIP by EPA, and this proposed action would thus not constitute a SIP relaxation.

FISCAL IMPACTS:

District staff expects no fiscal impact to the District to result from this action.

Attachments: Resolution for Proposed Amendments to Rule 4653 - (5pages) Proposed Amendments to Rule 4653

### - (34 pages) Final Draft Staff Report with Appendices for Proposed Rule 4653 - (54pages)