(1) All applicable State, county and local laws; and(2) All operating instructions provided by the manufacturer.

SHARI T. WILSON Secretary of the Environment



### Subtitle 11 AIR QUALITY **26.11.35 Volatile Organic Compounds from Adhesives and Sealants** 

Authority: Environment Article, §§1-101, 1-404, 2-101 — 2-103, 2-301 — 2-303, 10-102, and 10-203, Annotated Code of Maryland

Notice of Proposed Action

[09-094-P] The Secretary of the Environment proposes to amend Regulation .01 under COMAR 26.11.35 Volatile Organic Compounds from Adhesives and Sealants

. Statement of Purpose The purpose of this action is to exempt single-ply roof membrane installation and repair adhesives, single-ply roof membrane sealants, and single-ply roof membrane adhesiveprimers from the standards for VOC content during nonozone season for the years 2009, 2010, and 2011. In 2012,the standards for VOC content for these materials are applicable throughout the year. The proposed action affects manufacturers, suppliers, installers, and users of single-ply roofing materials.

The proposed action will be submitted to the U.S. Environmental Protection Agency (EPA) for approval as a revision to Maryland’s State Implementation Plan (SIP).

Background. Maryland’s Adhesives and Sealants Standards.

Maryland’s current requirements are based on the 2006Ozone Transport Commission (OTC) model rule for adhesives and sealants. The OTC rule follows the reasonablyavailable control technology (RACT) and best available retrofit control technology (BARCT) determination by the California Air Resources Board (CARB) developed in 1998. Adhesives, sealants, adhesive primers, and sealant primersare used in manufacturing, packaging, construction, and installation of disparate materials such as metal, wood, rubber, plastic, ceramics, fiberglass, and composites. An adhesive is any material used to bond two surfaces. A sealant is a material with adhesive properties that is used primarily to fill and durably seal, openings between two surfaces.

The regulations affect a large number of sources and materials and provide significant reductions of VOCs. Due to the large scale impact of the regulations, the Departmentadopted the standards after an extensive analysis and outreach effort in 2007. The purpose was to give affectedsources and manufacturers sufficient time to test new materials and make process changes to meet the new standards.

In January 2008, the EPDM Roofing Association raised concerns about the VOC limitations for roofing adhesives when applied at lower temperatures. EPDM recommended a seasonal phase-in to the VOC regulation, requiring the use of VOC-compliant adhesives during the warmer ‘‘ozoneseason’’ months while continuing to allow higher VOC adhesives during the colder months for a period of time necessary to develop a new low-VOC technology that could be effective on a year-round basis. The Department requested the OTC to review these concerns with the intention of reaching consensus among states as to how to address thisissue. The OTC did not make changes to the model rule after its review, but rather left it up to the states to decidehow to respond to the request. A number of states have decided to give a non-ozone season exemption in the initialyears of implementation. The Department met with manufacturers, installers, and association representatives regarding additional time in the non-ozone season period tobetter train and modify practices for the use of new materials at lower temperatures. As a result of discussions and in order to provide more time for training, the Departmentagreed to provide a limited exemption for the non-ozone period in the initial phase of implementing the regulation.

Affected Sources:

These proposed amendments affect manufacturers, suppliers, installers, and users of single-ply roofing materials.

Regulation Amendment Requirements.

The proposed action limits the applicability of VOC standards for single-ply roof membrane installation and repairadhesives, single-ply roof membrane sealants, and singleply roof membrane adhesive primers according to the following schedule: (1) For the year 2009, from May 15 through September 15; (2) For the years 2010 and 2011, from May 1 through September 30; and (3) On and after January 1, 2012. Impact on Ambient Air Quality.

The maximum benefit of COMAR 26.11.35 will continue to be provided during the ozone season.

The proposed amendments are designed to provide additional time for training and adaption to the use of new roofing adhesive materials. Roofing operations are performed at a lower rate during the non-ozone season. The release of VOCs during the non-ozone season has less of an impact upon the environment.

Comparison to Federal StandardsThere is no corresponding federal standard to this proposed action.

Estimate of Economic Impact

I. Summary of Economic Impact. The proposed action will provide a meaningful benefit to the rubber roofing industry. By phasing in the compliance dates for single-ply roofing adhesives,the rubber roofing industry will be able to continue to install lowslope roofs during the winter months while being given sufficient time to develop an effective, compliant product and train installers on their use. Since VOC emissions have significantly less impact during the winter months there will be little environmental impact from the amendments.

II. Types of Economic Impact. Revenue (R+/R

) Expenditure (E+/E

) Magnitude
A. On issuing agency: NONE B. On other State agencies: NONE C. On local governments: NONE

Benefit (+)

Cost (

) Magnitude
D. On regulated industries or trade groups: (+) Unquantifiable **PROPOSED ACTION ON REGULATIONS 362** 

**MARYLAND REGISTER, VOL. 36, ISSUE 4 FRIDAY, FEBRUARY 13, 2009**E. On other industries or trade groups: NONE

F. Direct and indirect effects on public: (

) Unquantifiable

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

D. There are thousands of small businesses in Maryland that use these roofing adhesives. The extent of the positive impact fromthe limited additional time allowed for compliance is unquantifiable.

F. Since VOC emissions have significantly less impact during the winter months, little environmental impact is expected as a result of these amendments.

Economic Impact on Small Businesses The proposed action has a meaningful economic impact onsmall businesses. An analysis of this economic impact follows.

The proposed action will provide a meaningful benefit to the rubber roofing industry. By phasing in the compliancedates for single-ply roofing adhesives, the rubber roofing industry will be able to continue to install low-slope roofs during the winter months while being given sufficient time to develop an effective, compliant product and train installers on their use.

Impact on Individuals with Disabilities The proposed action has an impact on individuals with disabilities as follows:

Since VOC emissions have significantly less impact during the winter months, little impact is expected as a result of these amendments.

Opportunity for Public Comment The Department of the Environment will hold a public hearing on the proposed action on March 18, 2009 at 10 a.m. at the Department of the Environment, 1800 Washington Boulevard, 1st Floor Aqua Conference Room, Baltimore,Maryland 21230-1720. Interested persons are invited to attend and express their views. Comments may be sent to Deborah Rabin, Regulations Coordinator, Air and RadiationManagement Administration, Department of the Environment, 1800 Washington Boulevard, Suite 730, Baltimore, Maryland 21230-1720, or emailed to drabin@mde. state.md.us. Comments must be received not later than March 18, 2009, or be submitted at the hearing. For more information, call Deborah Rabin at (410) 537-3240.

Copies of the proposed action and supporting documents are available for review at the following locations: The Air and Radiation Management Administration; regional offices of the Department in Cumberland and Salisbury; all local air quality control offices; and local health departments inthose counties not having separate air quality control offices.

Anyone needing special accommodations at the publichearing should contact the Department’s Fair Practices Office at (410) 537-3964. TTY users may contact the Department through the Maryland Relay Service at 1-800-735- 2258. .01 Applicability and Exemptions.

A. — H. (text unchanged) I. The VOC limitations in Regulation .04 of this chapter shall be applicable to single-ply roof membrane installation and repair adhesives, single-ply roof membrane sealants, and single-ply roof membrane adhesive primers according to the following schedule: (1) For the year 2009, from May 15 through September 15; (2) For the years 2010 and 2011, from May 1 through September 30; and (3) On and after January 1, 2012.

SHARI T. WILSON Secretary of the Environment



# Title 31 MARYLAND INSURANCE ADMINISTRATION

**Subtitle 03 INSURANCE PRODUCERS AND OTHER INSURANCE PROFESSIONALS**  **31.03.14 Notice of Payment Options When Premium Financing is Offered** 

Authority: Insurance Article, §§2-109(a)(1), 10-104(c), and 10-126(a)(5) and (6), Annotated Code of Maryland

Notice of Proposed Action

[09-099-P] The Insurance Commissioner proposes to adopt new Regulations .01 — .05 under a new chapter, COMAR 31.03.14 Notice of Payment Options When Premium Financing is Offered

. Statement of PurposeThe purpose of this action is to protect consumers by requiring producers to inform consumers of additional financing options when consumers are purchasing a property and casualty insurance policy. Under current Maryland law, the offering of premium installment plans may be limited basedon the producer used. Currently, the producer selling the insurance product generally has the option to offer premium financing to the consumer without disclosing other payment options. Where an insurer has an installment plan and aproducer is permitted to steer a consumer into premium financing without disclosing the insurer’s installment plan, the consumer is not getting the benefit of the best rate thatis charged by the insurer. Additionally, while some producers may be disclosing the installment plans that an insurer may offer, others may not. The new chapter would create an industry standard with regard to disclosure by producers ofinsurer installment plans and premium financing agreements to consumers.

Comparison to Federal StandardsThere is no corresponding federal standard to this proposed action.

Estimate of Economic Impact

I. Summary of Economic Impact. This chapter will have aminimal economic impact on insurers, the Maryland Insurance Administration, and consumers in Maryland. However, it may impact premium financing companies as consumers may elect to use an insurer’s installment plan which is less expensive than entering into a premium financing agreement. **PROPOSED ACTION ON REGULATIONS 363**

**MARYLAND REGISTER, VOL. 36, ISSUE 4 FRIDAY, FEBRUARY 13, 2009**