### BOARD MEETING DATE: July 13, 2007 AGENDA NO. 28

PROPOSAL: Amend Rule 1113 - Architectural Coatings

SYNOPSIS: The proposed amendments to Rule 1113 - Architectura l Coatings

amend the definition of metallic pigmented coatings to remove reference to mica to be consistent with the federal architectural coating rule, update the test method used to determ ine the weight percent of elemental metal in metallic coatings to reflect current practice, and delete obsolete language.

COMMITTEE: Stationary Source, February 23, 2007, Ma rch 23, 2007 and May 25,

2007, Reviewed

RECOMMENDED ACTION: Adopt the attached resolution: 1. Certifying the Notice of Exemption for Proposed Ame nded Rule 1113 – Architectural Coatings; and 2. Amending Rule 1113 – Architectural Coatings.

Barry R. Wallerstein, D.Env. Executive Officer

EC:LT:LB



### Background Rule 1113 – Architectural Coatings was first adopte d in 1977 and has been amended numerous times. It is applicable to manufacturers, distributors, and end-users of architectural coatings. In November 1996, the Boar d amended Rule 1113 to include an averaging compliance provision as a flexibility option providing a more costeffective and flexible approach for manufacturers t o transition compliant product lines into the marketplace. To use the Averaging Complia nce Option (ACO) successfully, a manufacturer must be able to distribute sufficien t volumes of products with VOC

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content below applicable limits in order to offset the excess emissions from products with VOC content above the limits. One limitation of the ACO is that a manufacturer is required to have a broad array of commercial pro ducts, with sufficient volume of sales of products that are below the applicable VOC limit.

One manufacturer, affected by the limitation of the ACO described above, recently requested that the Stationary Source Committee, a s ubcommittee of the Board, direct staff to prepare amendments to Rule 1113 to remove the specialty primer category from the ACO provision because they were at a compe titive disadvantage. The Stationary Source Committee, as a result of these d iscussions, directed staff to propose an amendment to Rule 1113 – Architectural Coatings to remove specialty primers from the ACO provision. After staff commenced rule making and subsequent to the Stationary Source Committee’s direction to staff, t he manufacturer withdrew its request. The Stationary Source Committee then dire cted staff to not include the original request as a part of the proposed amendmen ts.
However, in unrelated matters, during implementatio n of recent amendments to the rule, it became apparent that by adding mica to the definition of metallic pigmented coatings it is improperly less restrictive than the federal definition and a correction to delete mica from the definition is therefore necess ary. Staff also became aware that the test method in the rule used to determine the m etal content of metallic pigmented coatings was outdated. In addition, during the pub lic outreach it was pointed out that a sentence in the Appendix to the Rule is obsolete and therefore it is proposed to be deleted.

The proposed amendments do not affect air quality o r emissions and have no cost impact.

Proposal Staff is proposing the following amendments to clar ify issues related to rule implementation.

− Amend the definition of metallic pigmented coatings to make it consistent with the federal Architectural and Industrial Maintenanc e (AIM) Coatings rule.

− Update the test method used to determine the weight percent of elemental metal in metallic coatings, to reflect current practice.

− Delete obsolete sentence from Appendix A, Section A of the rule.

Emission Inventory and Emission Reduction There is no change in emission inventory or emissio n reduction associated with the proposed amendments.

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Cost-Effectiveness There will be no additional compliance cost associa ted with the proposed changes; therefore, a cost-effectiveness and an incremental cost-effectiveness analysis are not applicable.

CEQA The AQMD has reviewed the proposed project pursuant to State CEQA Guidelines §15002 (k)(1). Since the proposed amendments to Ru le 1113 only address clarity and enforceability and it can be seen with certainty th at there is no possibility that the activity in question may have a significant effect on the en vironment, the project is exempt from the requirements of CEQA, pursuant to state CEQA Gu idelines §15061(b)(3). A Notice of Exemption has been prepared in accordance with s tate CEQA Guidelines §15062 for the proposed project and will be filed with the cou nty clerks immediately following the adoption of the proposed amendments to the rule. A copy of that notice has been included as Attachment G of this letter.

Socioeconomic Analysis The proposed amendments do not affect air quality o r emissions limitations. Therefore, a socioeconomic assessment is not necessary or requir ed.

AQMP and Legal Mandates The proposed amendment to the definition of metalli c pigmented coatings to make it no less stringent than the federal rule for architectu ral and industrial maintenance coatings is necessary for Rule 1113 to be approvable by U.S. EP A for inclusion into the SIP. Moreover, California State law requires AQMD to enf orce federal standards.

Implementations and Resources Existing AQMD resources will be sufficient to imple ment the proposed changes to this rule with minimal impact on the budget.

Attachments A. Summary of Proposed Amendments B. Rule Development Process Flow Chart C. Key Contacts D. Resolution E. Rule Language F. Staff Report G. CEQA – Notice of Exemption

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### - ATTACHMENT A

Summary of Proposed Amendments to Rule 1113 – Archi tectural Coatings

Staff proposes amending Rule 1113 as follows:

• Amend the definition of metallic pigmented coatings to make it consistent with the federal AIM rule by removing the words “mica partic les or any combination of metallic pigments and mica particles.”

• Update the Test Method used to determine the weight percent of elemental metal in metallic coatings, to reflect current practice.

• Delete the following obsolete sentence from Appendi x A, Section A of the rule: “Manufacturers that submitted an annual exemption r eport in 2002 for quick-dry primers, sealers and undercoaters and included thos e coatings in their most recent approved ACO Program, may continue to average those coatings until July 1, 2006, so long as these coatings do not exceed 450 g rams of VOC per liter of coating less water and less exempt compounds, in li eu of the otherwise applicable VOC limit of 350 grams per liter.”

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### - April 17, 2007 Zinsser withdraws request to eliminate specialty primers from averaging provision. February 23, 2007 Stationary Source Committee (SSC) Meeting Staff directed to review Rule 1113 Averaging Compliance Option (ACO) provision with Zinsser

to determine feasibility.

March 23, 2007 SSC Meeting Staff directed to amend Rule 1113 to remove specialty primers from averaging provision. March 23, 2007 Initial rule development to remove primers from ACO to provide relief, as well as other clarifications February and March Staff works with Zinsser, averaging provision deemed a partial resolution only

April 19, 2007 Public Workshop: Public Notice in Newspapers

May 25, 2007 SSC Meeting Staff directed not to remove primers from ACO. Precede with rule clarification amendments.

June 1, 2007 Set Hearing

June 6, 2007 Public Hearing Notice Published and Mailed for Public Hearing. July 13, 2007 Public Hearing California Environmental Quality Act (CEQA) Notice of Exemption Will Be Filed with the County Clerks ATTACHMENT B

RULE DEVELOPMENT PROCESS

PROPOSED AMENDED RULE 1113 - Architectural Coatings

### ATTACHMENT C

KEY CONTACTS

Mike Butler Behr Ron Widner Benjamin Moore Lisa King BonaKemi Andy Rogerson Caltrans Barbara Fry CARB Jim Nyarady CARB Robert Wendoll Dunn-Edwards Paints Howard Berman Dutko Worldwide Joseph Tashjian Ellis Paint Company Fred Anwari Frazee Paint Jeff Margulies Fulbright & Jaworski Jim Kantola ICI Dulux Sinclair Katy Wolf IRTA Dave Sibbrel Life Paint Dan Pourreau Lyondell Chemical Carol Kaufman Metropolitan Water District John Wallace Metropolitan Water District Dave Darling National Paint & Coatings Association Jim Sell National Paint & Coatings Association Madelyn Harding Sherwin-Williams Company Tony Hobbs Tnemec Company Sona Chilingaryan U.S. EPA Dave Salman U.S. EPA Andy Steckel U.S. EPA Stanley Tong U.S. EPA John Long Vista Paint Corporation Mike Jurist Zinsser Tim O’Reilly ZinsserA T T A C H M E N T D

RESOLUTION FOR
PROPOSED AMENDED RULE 1113 - ARCHITECTURAL COATINGSRESOLUTION NO. 2007 - _______

A Resolution of the Governing Board of the South Co ast Air Quality Management District certifying that the proposed am endments to Rule 1113 – Architectural Coatings are exempt from the requirem ents of the California Environmental Quality Act (CEQA).

A Resolution of the AQMD Governing Board adopting A mended Rule 1113 - Architectural Coatings.

WHEREAS, the South Coast Air Quality Management District Go verning Board finds and determines that Proposed Amended Rule 111 3 – Architectural Coatings, is considered a "project" pursuant to the CEQA; howeve r, South Coast Air Quality Management District staff reviewed the proposed pro ject and determined with certainty that the proposed amendments to Rule 1113 – Archite ctural Coatings are exempt from the requirements of CEQA pursuant to CEQA Guideline s §15061(b)(3); and

WHEREAS , the staff report, the CEQA Notice Of Exemption, t his July 13, 2007 Board letter, and other supporting documentation wa s presented to the AQMD Governing Board and that the Board has reviewed and considere d the entirety of this information prior to approving the project; and

WHEREAS , the AQMD Governing Board obtains its authority to adopt, amend, or repeal rules and regulations from Sections 39002 , 40000, 40001, 40440, 40441, 40702, and 41508 of the California Health and Safety Code; and

WHEREAS , the AQMD Governing Board has determined that a ne ed exists to amend Rule 1113 - Architectural Coatings to achieve United States Environmental Protection Agency approval for inclusion in the Cal ifornia State Implementation Plan; and

WHEREAS , the AQMD Governing Board has determined that Rule 1113 - Architectural Coatings, as proposed to be amended, is written and displayed so that its meaning can be easily understood by persons directl y affected by them; and

WHEREAS , the AQMD Governing Board has determined that Rule 1113 - Architectural Coatings, as proposed to be amended, is in harmony with, and not in conflict with, or contradictory to, existing statut es, court decisions, or state or federal regulations; and

WHEREAS , the AQMD Governing Board has determined that Rule 1113 - Architectural Coatings, as proposed to be amended, does not impose the same requirements as any existing state or federal regul ation, and the proposed amended rule is necessary and proper to execute the powers and duti es granted to, and imposed upon, the AQMD; and2 WHEREAS , the AQMD Governing Board in amending the regulati on, references the following statutes which the AQMD hereby implem ents, interprets or makes specific: Health and Safety Code Sections 40001(a) (air quali ty standards and enforcement of federal standards), 40440(a) (rules to carry out pl an), 40702 (adopt regulation to execute duties), and Federal Clean Air Act Sections 116 (st ate standards at least as stringent as federal standards) and 172 (c)(1) (RACT); and

WHEREAS , the AQMD Governing Board determines that there is a problem that Proposed Amended Rule 1113 - Architectural Coatings will alleviate, the proposed amendment will address the concerns of the United S tates Environmental Protection Agency for approval for inclusion in the California State Implementation Plan; and

WHEREAS , the AQMD Governing Board has determined that the Socioeconomic Impact Assessment is not necessary be cause this amendment has no significant impact on air quality, emissions limita tions or costs to manufacturers; and

WHEREAS , a public hearing has been properly noticed in acc ordance with all provisions of Health and Safety Code, Section 40725 ; and

WHEREAS , the AQMD Governing Board has held a public hearin g in accordance with all provisions of law; and

WHEREAS , the AQMD specifies the manager of Rule 1113 as th e custodian of the documents or other materials which constitute t he record of proceedings upon which the adoption of this proposed amendment is based, w hich are located at the South Coast Air Quality Management District, 21865 Copley Drive , Diamond Bar, California.

NOW, THEREFORE, BE IT RESOLVED, that the South Coast Air Quality Management District Board does hereby certify the N otice of Exemption for Rule 1113 – Architectural Coatings, as proposed to be amended, completed in compliance with CEQA Guidelines §15002(k)(1) - Three Step Process and §1 5061(b)(3) – Review for Exemption (General Rule Exemption). This information was pre sented to the Governing Board, whose members reviewed, considered, and approved th e information therein prior to acting on Proposed Amended Rule 1113; and

BE IT FURTHER RESOLVED , that the AQMD Governing Board does hereby amend, pursuant to the authority granted by law, Ru le 1113 - Architectural Coatings, as set forth in the attached, and incorporated herein by this reference.

Attachment

DATE:

_____________________________ CLERK OF THE BOARDA T T A C H M E N T D

RESOLUTION FOR
PROPOSED AMENDED RULE 1113 - ARCHITECTURAL COATINGSRESOLUTION NO. 2007 - _______

A Resolution of the Governing Board of the South Co ast Air Quality Management District certifying that the proposed am endments to Rule 1113 – Architectural Coatings are exempt from the requirem ents of the California Environmental Quality Act (CEQA).

A Resolution of the AQMD Governing Board adopting A mended Rule 1113 - Architectural Coatings.

WHEREAS, the South Coast Air Quality Management District Go verning Board finds and determines that Proposed Amended Rule 111 3 – Architectural Coatings, is considered a "project" pursuant to the CEQA; howeve r, South Coast Air Quality Management District staff reviewed the proposed pro ject and determined with certainty that the proposed amendments to Rule 1113 – Archite ctural Coatings are exempt from the requirements of CEQA pursuant to CEQA Guideline s §15061(b)(3); and

WHEREAS , the staff report, the CEQA Notice Of Exemption, t his July 13, 2007 Board letter, and other supporting documentation wa s presented to the AQMD Governing Board and that the Board has reviewed and considere d the entirety of this information prior to approving the project; and

WHEREAS , the AQMD Governing Board obtains its authority to adopt, amend, or repeal rules and regulations from Sections 39002 , 40000, 40001, 40440, 40441, 40702, and 41508 of the California Health and Safety Code; and

WHEREAS , the AQMD Governing Board has determined that a ne ed exists to amend Rule 1113 - Architectural Coatings to achieve United States Environmental Protection Agency approval for inclusion in the Cal ifornia State Implementation Plan; and

WHEREAS , the AQMD Governing Board has determined that Rule 1113 - Architectural Coatings, as proposed to be amended, is written and displayed so that its meaning can be easily understood by persons directl y affected by them; and

WHEREAS , the AQMD Governing Board has determined that Rule 1113 - Architectural Coatings, as proposed to be amended, is in harmony with, and not in conflict with, or contradictory to, existing statut es, court decisions, or state or federal regulations; and

WHEREAS , the AQMD Governing Board has determined that Rule 1113 - Architectural Coatings, as proposed to be amended, does not impose the same requirements as any existing state or federal regul ation, and the proposed amended rule is necessary and proper to execute the powers and duti es granted to, and imposed upon, the AQMD; and2 WHEREAS , the AQMD Governing Board in amending the regulati on, references the following statutes which the AQMD hereby implem ents, interprets or makes specific: Health and Safety Code Sections 40001(a) (air quali ty standards and enforcement of federal standards), 40440(a) (rules to carry out pl an), 40702 (adopt regulation to execute duties), and Federal Clean Air Act Sections 116 (st ate standards at least as stringent as federal standards) and 172 (c)(1) (RACT); and

WHEREAS , the AQMD Governing Board determines that there is a problem that Proposed Amended Rule 1113 - Architectural Coatings will alleviate, the proposed amendment will address the concerns of the United S tates Environmental Protection Agency for approval for inclusion in the California State Implementation Plan; and

WHEREAS , the AQMD Governing Board has determined that the Socioeconomic Impact Assessment is not necessary be cause this amendment has no significant impact on air quality, emissions limita tions or costs to manufacturers; and

WHEREAS , a public hearing has been properly noticed in acc ordance with all provisions of Health and Safety Code, Section 40725 ; and

WHEREAS , the AQMD Governing Board has held a public hearin g in accordance with all provisions of law; and

WHEREAS , the AQMD specifies the manager of Rule 1113 as th e custodian of the documents or other materials which constitute t he record of proceedings upon which the adoption of this proposed amendment is based, w hich are located at the South Coast Air Quality Management District, 21865 Copley Drive , Diamond Bar, California.

NOW, THEREFORE, BE IT RESOLVED, that the South Coast Air Quality Management District Board does hereby certify the N otice of Exemption for Rule 1113 – Architectural Coatings, as proposed to be amended, completed in compliance with CEQA Guidelines §15002(k)(1) - Three Step Process and §1 5061(b)(3) – Review for Exemption (General Rule Exemption). This information was pre sented to the Governing Board, whose members reviewed, considered, and approved th e information therein prior to acting on Proposed Amended Rule 1113; and

BE IT FURTHER RESOLVED , that the AQMD Governing Board does hereby amend, pursuant to the authority granted by law, Ru le 1113 - Architectural Coatings, as set forth in the attached, and incorporated herein by this reference.

Attachment

DATE:

_____________________________ CLERK OF THE BOARDA T T A C H M E N T G

C E Q A N O T I C E O F E X E M P T I O N

# South Coast

Air Quality Management District

21865 Copley Drive, Diamond Bar, CA 91765-4182 (909) 396-2000 • www.aqmd.gov

SUBJECT: NOTICE OF EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

PROJECT TITLE: PROPOSED AMENDED RULE 1113 – ARCHIT ECTURAL COATINGS

Pursuant to the California Environmental Quality Ac t (CEQA) Guidelines, the South Coast Air Quality Management District (SCAQMD) is the Lead Ag ency and will prepare a Notice of Exemption for the project identified above.

The SCAQMD has reviewed the proposed project mentio ned above pursuant to CEQA Guidelines §15002 (k)(1). Since it can be seen wit h certainty that there is no possibility that the activity in question may have a significant effect on the environment, the project is exempt from the requirements of CEQA pursuant to state CEQA Gui delines §15061(b)(3). A Notice of Exemption has been prepared pursuant to CEQA Guidel ines §15062 - Notice of Exemption. The Notice of Exemption will be filed with the county c lerks of Los Angeles, Orange, Riverside and San Bernardino counties immediately following the a doption of the proposed project.

Any questions regarding this Notice of Exemption sh ould be sent to Michael Krause (c/o Planning, Rule Development & Area Sources) at the a bove address. Mr. Krause can also be reached at (909) 396-2706.

Date: June 1, 2007 Signature : Steve Smith, Ph.D. Program Supervisor Planning, Rule Development & Area Sources

Reference: California Code of Regulations, Title 1 4

### NOTICE OF EXEMPTION

To: County Clerks Riverside, Los Angeles, Orange, San Bernardino From: South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, CA 91765 Project Title: Proposed Amended Rule 1113 – Architectural Coatings Project Location: South Coast Air Quality Management District (SCAQMD ) area of jurisdiction consisting of the fourcounty South Coast Air Basin (Orange County and the non-desert portions of Los Angeles, Riverside and San Bernardino counties), and the Riverside Cou nty portions of the Salton Sea Air Basin and the Mojave Desert Air Basin. Description of Nature, Purpose, and Beneficiaries o f Project: Proposed amended Rule (PAR) 1113 will clarify the e xisting definition of metallic pigmented coatings to remove reference to mica to be consistent with t he federal architectural coating rule. In addition , PAR 1113 will update the test method used to determine the weight percent of elemental metal in metallic coatings to reflect current practice and delete obs olete, outdated language. Public Agency Approving Project: South Coast Air Quality Management District Agency Carrying Out Project: South Coast Air Quality Management District
Exempt Status: General Concepts [CEQA Guidelines §15002 (k)(1)]; a nd General Rule Exemption [CEQA Guidelines §15061 (b)( 3)]; Reasons why project is exempt: The SCAQMD has reviewed the proposed project pursua nt to State CEQA Guidelines §15002 (k)(1). Since the proposed amendments to Rule 1113 only add ress clarity and enforceability and it can be seen with certainty that there is no possibility that th e activity in question may have a significant effec t on the environment, the project is exempt from the require ments of CEQA pursuant to state CEQA Guidelines §15061(b)(3) - Review for Exemption.

Certification Date: SCAQMD Governing Board Hearing: July 13, 2007, 9:00 a.m.; SCAQMD Headquarters
CEQA Contact Person:

Mr. Michael Krause Phone Number: (909) 396-2706 Fax Number:

(909) 396-3324 Email:

<mkrause@aqmd.gov>

Rule Contact Person:

Mr. Dan Russell Phone Number: (909) 396-2333 Fax Number:

(909) 396-3324 Email:

<drussell@aqmd.gov>

Date Received for Filing Signature Signed upon certification Steve Smith, Ph.D. Program Supervisor Planning, Rule Development and Area Sources