Document ID: EPA-R09-OAR-2021-0134-0003
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2021-03-05T05:00Z

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                            REGION IX AIR DIVISION

                          Technical Support Document 
                                      for
                              EPA's Rulemaking
                                    for the
                       Arizona State Implementation Plan
                                       
                   Pinal County Air Quality Control District
Reasonably Available Control Technology State Implementation Plan- Negative Declarations
                                    And   
               Chapter 5, Article 13, Surface Coating Operations

                              
                            Prepared by: Nicole Law
                                       

                                 February 2021

RULE IDENTIFICATION  -  
Agency
Pinal County Air Quality Control District (PCAQCD)

SIP Approved Version
PCAQCD Reasonably Available Control Technology (RACT) Analysis, Negative Declaration and Rules Adoption Public Hearing November 30, 2016
EPA partial disapproval- August 9, 2019

Chapter 5, Article 13, Surface Coating Operations 
    5-13-100 "General" 
    5-13-200 "Definitions" 
    5-13-300 "Standards" 
    5-13-400 "Administrative Requirements"
    5-13-500 "Monitoring and Records" 
Adopted  -  November 30, 2016
EPA limited approval/limited disapproval -- August 9, 2019

Both Submitted  -  February 3, 2017

Subject of this TSD
PCAQCD Reasonably Available Control Technology (RACT) Analysis, Negative Declaration and Rules Adoption Public Hearing August 5, 2020

Chapter 5, Article 13, Surface Coating Operations
    5-13-100 "General" 
    5-13-200 "Definitions" 
    5-13-300 "Standards" 
    5-13-400 "Administrative Requirements"
    5-13-500 "Monitoring and Records" 
Amended  - August 5, 2020

Both Submitted  -  August 20, 2020

Completeness Finding
Determination of Completeness letter: September 14, 2020

BACKGROUND  -  

Pinal County Air Quality Control District regulates a portion of the Phoenix-Mesa ozone nonattainment area that was initially classified as Marginal nonattainment for the 2008 8-hr national ambient air quality standard (NAAQS), but was subsequently reclassified as a Moderate ozone nonattainment area. For ozone nonattainment areas classified as Moderate or above, the Clean Air Act (CAA) requires the State to submit State Implementation Plan (SIP) provisions to require implementation of reasonably available control technology (RACT) (see sections 182(b)(2) and 182(f)). 

The District adopted its RACT SIP demonstration for the 2008 ozone NAAQS on November 30, 2016, and the Arizona Department of Environmental Quality (ADEQ) submitted PCAQCD's 2016 RACT SIP demonstration to the EPA on February 3, 2017. PCAQCD's submittal also included Article 13, Surface Coating Operations, adopted on November 30, 2016, to support its RACT SIP demonstration. 

On March 11, 2019, EPA provided a comment letter to the PCAQCD listing the approvability issues with the 2016 RACT SIP, including Chapter 5, Article 13 ("the rule" or "Article 13"), and included a number of other rule recommendations. Specifically, the comment letter identified the following deficiencies on the PCAQCD RACT Analysis and Negative Declarations:
 The District needed to adopt and submit through the ADEQ negative declarations for major VOC and major NOx sources because there are no facilities in the ozone nonattainment area that have a potential to emit above the 100 tpy threshold for major stationary sources in Moderate ozone nonattainment areas.
 There is a CTG for the source category of cutback asphalt, but there is no SIP approved rule or negative declaration covering this category in the 2016 RACT SIP. 

The comment letter also identified the following deficiencies in Article 13 that precluded full approval of the rule: 
 Section 100.3.II provided an exemption for "Extreme Performance Coatings" which is not consistent with the 2008 Miscellaneous Metal and Plastic Parts (MMPP) CTG.    
 Section 100.3.iv.e provided and exemption for "Tactical Military-Equipment" which is not consistent with the 2008 MMPP CTG.
 Table 1 provided a VOC content limit for "Clear Coats" of 515 g/L.  The 2008 MMPP CTG does not contain a "Clear Coat" category but does have VOC content limit for General One and General Multi Component coatings.  The Clear Coat limit exceeds the CTG's recommended VOC limit for General Coatings.  
 Article 13 was missing definitions and VOC content limits for the following coating categories:
 General One Component
 General Multi Component
 Silicone Release
 Solar-Absorbent
 Article 13 Table 1 contained an incorrect VOC limit for "Drum Coating, New Exterior baked." The VOC limit should be corrected from 0.34 g/L to 340 g/L.
 Article 13 does not contain VOC limits for categories covered under Tables 3 - 6 of the 2008 MMPP CTG.  PCAQCD could amend Article 13 to incorporate the categories in the missing tables or adopt a negative declaration for those tables.
 Section 300.5.i.b and 3005.i.c allowed an Emission Control System combined capture efficiency of 81% which is inconsistent with the 2008 MMPP CTG. 

The PCAQCD's 2016 RACT SIP addressed several RACT requirements but left out the elements listed above.  Because the 2016 RACT SIP largely addressed RACT SIP elements and was consistent with relevant CAA requirements, the EPA issued a partial approval for many of the elements and a partial disapproval for the missing negative declarations listed above (August 9, 2019 (84 FR 39196)).  
 
Article 13 strengthened the SIP and was largely consistent with relevant CAA requirements, but contained the aforementioned deficiencies that conflicted with section 110 and part D of the Act, the EPA issued a simultaneous limited approval/limited disapproval with respect to Article 13, Surface Coating Operations (August 9, 2019 (84 FR 39196)). 

The partial disapproval and limited disapproval triggered sanctions clocks under CAA section 179 and 40 CFR 52.31 that will be stopped if the EPA approves SIP revisions that correct the deficiencies within 18 months of the effective date of the final action on the rule, or issues an interim final determination. 

SUBMITTAL SUMMARY  -   

On behalf of PCAQCD, ADEQ submitted  additional negative declarations and a revised version of Article 13 (amended on August 5, 2020) on August 20, 2020, to address deficiencies in the February 2017 submittal and stop the sanctions clock triggered by the EPA's partial disapproval and limited disapproval.

The PCAQCD's submittal included the following documents:
 "Reasonably Available Control Technology (RACT) Analysis, Negative Declaration and Rules Adoption," dated August 5, 2020 [hereinafter "2020 RACT SIP Negative Declarations"].
 PCAQCD's submittal also included adoption of Chapter 5, Article 13, Surface Coating Operations.

2020 RACT SIP Negative Declarations
The District adopted additional negative declarations for the 2008 ozone NAAQS on August 5, 2020 and ADEQ submitted them to the EPA on August 20, 2020. 

The 2020 submittal included the following negative declarations:
Document Number
Source Category
EPA-450/2-77-037
Cutback Asphalt
EPA 453/R-08-003
Miscellaneous Metal Parts Coatings
Tables 3 - 6 Plastic Parts and Products; Automotive/Transportation and Business Machine Plastic Parts; Pleasure Craft Surface Coatings; Motor Vehicle Materials
EPA-453/B-16-001
Control Techniques Guidelines for the Oil and Natural Gas Industry
N/A
Major non CTG VOC sources
N/A
Major NOx sources

This 2020 submittal included the negative declarations that served as the basis for the 2019 partial disapproval of the Pinal County RACT SIP.  
  
Chapter 5, Article 13
Article 13 limits volatile organic compounds (VOC) emissions from surface coating operations. The rule contains: definitions; VOC content limits and work practices to minimize VOC emissions from handling, disposal, and storage of VOC containing materials; requirements for emission control systems; requirements for monitoring and recordkeeping; and requirements for compliance determination including associated test methods to determine compliance.

Changes from the version of Article 13 currently in the SIP include:

 Deleting the exemptions for "Extreme Performance Coatings" (former section 100.3.ii) and "tactical military equipment." (former section 100.3.iv.e)

 Adding definitions for alternative application method, multicomponent coating, one component coating, silicon release coating, and solar absorbent coating. Revising definitions for air dried coating, baked coating, extreme high-gloss coating, extreme-performance coating, and VOC actual. Deleting definition for clear coatings. 

 Revising section 300.1.ii to require that VOC coatings that exceed the VOC limits in Table 1 of the rule need to be clearly labeled so coating operators are informed that an emission control system (ECS) must be used during application of these coatings.

 Adding coating categories and associated VOC limits for general one component coating, general multi component, silicone release, and solar-adsorbent coatings to Table 1.

 Deleting the categories and VOC limits for "clear coat" and "other metal parts and products coating" (including adhesive primer, caulking, and beaded sealants that are air dried or baked) from Table 1.

 Adding language at the end of Table 1 to clarify that coatings that do not meet a specific coating category definition would be considered a general use coating and the VOC limit for "general coating" would apply.

 Revising section 300.2.i.a. to clarify that HVLP Spray-Gun means "High Volume Low Pressure Spray Gun," adding section 300.2.i.e. to allow an alternative application method, and revising section 300.2.ii to allow usage of surface coatings containing less than 240 g/L VOC regulatory.

 Revising section 300.4.v. describing requirements while using VOC solvents for surface coating cleanup.

 Revising section 300.5.i to specify how to calculate overall control and capture efficiency of an ECS and which test methods to use.  Revisions to this section also effectively lowered the overall control and capture efficiency required. 

 Revising section 500.4 update test methods, delete inappropriate modifications and test methods and sub methods, add EPA guidelines, and correct references to other parts of Article 13. 

 Other minor clarifying and conforming changes. 

EVALUATION CRITERIA  -  The following criteria were used to evaluate the submitted rule.  

  :: 	Enforceability - Section 110(a) of the CAA requires enforceable emission limitations and other control measures. Several EPA guidance documents are used to evaluate rule enforceability, including EPA Office of Air Quality Planning and Standards, "Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations," May 25, 1988 ("the Bluebook," revised January 11, 1990), and EPA Region IX, "Guidance Document for Correcting Common VOC & Other Rule Deficiencies," August 21, 2001 ("the Little Bluebook").
   Stringency  -  SIPs must require RACT for each category of sources covered by a CTG document as well as each major source of NOx or VOCs in ozone nonattainment areas classified as Moderate or above (CAA sections 182(b)(2) and 182(f)). The EPA's CTGs titled, "Control of Volatile Organic Emissions from Existing Stationary Sources  -  Volume VI: Surface Coating of Miscellaneous Metal Parts and Products" (EPA-450/2-78-015) and June 1978, "Control Techniques Guidelines for Miscellaneous Metal and Plastic Parts Coatings" (EPA 453/R-08-003), September 2008, and other state and local rules for these categories were used to help evaluate PCAQCD's submitted surface coating operations rule for compliance with the RACT requirements of CAA §182(b)(2). 
   SIP Revisions  -  CAA §110(l) prohibits the EPA from approving any SIP revision that would interfere with any applicable requirement concerning attainment and reasonable further progress (RFP) or any other applicable requirement of the CAA. In addition, CAA §193 prohibits the modification of any SIP-approved control requirement in effect before November 15, 1990, in a nonattainment area, unless the modification ensures equivalent or greater emission reductions of the relevant pollutant(s).

The following additional documents were used to support our review of the submittal. 

  :: "Final Rule to Implement the 8-Hour Ozone National Ambient Air Quality Standard  -  Phase 2" (70 FR 71612; November 29, 2005). 
  :: "Implementation of the 2008 National Ambient Air Quality Standards for Ozone: State Implementation Plan Requirements'' (80 FR 12264; March 6, 2015). 
  :: "State Implementation Plans, General Preamble for the Implementation of Title I of the Clean Air Act Amendments of 1990" (57 FR 13498; April 16, 1992). 
:: 	Memorandum dated May 18, 2006, from William T. Harnett, Director, Air Quality Policy Division, to Regional Air Division Directors, Subject: "RACT Qs & As  -  Reasonably Available Control Technology (RACT): Questions and Answers."
      
EPA EVALUATION  -  A summary of our evaluation follows.

2020 RACT SIP Negative Declarations
PCAQCD adopted negative declarations for the four categories (Cutback Asphalt, Tables 3 - 6 of the Miscellaneous Metal and Plastic Parts CTG, major non-CTG VOC sources, and major NOx sources) that served as the basis for the EPA's partial disapproval of the RACT SIP, and an additional negative declaration for a fifth category (Oil and Natural Gas Industry) identified as an additional recommendation in our Technical Support Document for the RACT SIP action.   

The negative declarations are based on the district's permit files, emission inventory, business listings, and county planning records. Based on the EPA's evaluation of the submitted 2020 RACT SIP Negative Declarations and Pinal County list of Title V permits issued, we find the 2020 RACT SIP Negative Declarations to be accurate and correct.

Chapter 5, Article 13
PCAQCD made several amendments to Article 13 to address all of the disapprovability issues described in EPA's August 9, 2019 limited disapproval.  

 Enforceability  -  As noted in the summary above, recent amendments to the rule included specifying how to calculate overall control and capture efficiency, referencing updated test methods, and deleting inappropriate methods and sub methods.

We find that Article 13's requirements, as amended, are clear and that the monitoring, recordkeeping, reporting and other provisions sufficiently ensure that affected sources and regulators can consistently evaluate and determine compliance with this rule.  

 Stringency --  Submitted Article 13 has been revised to at least match the stringency of the applicable CTG and has requirements for surface coatings that are generally consistent with other air district rules for this source category. The amendments included removing exemptions, adding additional coating categories and corresponding new VOC emission limits, deleting categories for products not used, and increasing the overall capture and control efficiency for ECSs.
      
      These changes to the rule adequately address the deficiencies in the previous version of the rule that were the basis for our limited disapproval of Article 13, adopted November 30, 2016 (August 9, 2019, 84 FR 39196).

 SIP Revisions  -  We propose to determine that our approval of the submittal would comply with CAA §§110(l) and 193 because (1) the proposed SIP revision would not interfere with any CAA requirements, including requirements for RFP and attainment of the NAAQS, and (2) the emission controls in the submitted rule are more stringent than the existing SIP-approved control requirements that they would replace.

ADDITIONAL RECOMMENDATIONS FOR THE NEXT REVISION  -  The following revision is not currently the basis for rule disapproval but is recommended for the next time the rule is amended. 

 Please correct the typographical error in section 300.1.ii from "...informed than an ECS must be used..." to "...informed that and ECS must be used..." 

EPA ACTION  -  

The submitted 2020 RACT SIP Negative Declarations address the 2016 RACT SIP deficiencies identified in EPA's August 9, 2019 (84 FR 39196) partial disapproval action on the 2016 RACT SIP as submitted on February 3, 2017.  Therefore, EPA staff recommends approval of the 5 negative declarations submitted on August 20, 2020. 

Submitted revisions to Article 13 strengthen the SIP. The rule meets the relevant CAA § 110 and part D requirements. Therefore, EPA staff recommends approval of Article 13 pursuant to CAA §§ 110(k)(3) and 301(a). 

If our proposed approval of the negative declarations and Article 13 is finalized, and the updated rule is incorporated into the SIP, the sanctions and Federal Implementation Plan clocks triggered by the EPA's partial disapproval and limited approval/limited disapproval of the 2016 RACT SIP and Article 13, adopted on November 30, 2016 (August 9, 2019, 84 FR 39196) will be terminated.

REFERENCES  -  

 EPA Office of Air Quality Planning and Standards, "Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations," May 25, 1988 ("the Bluebook," revised January 11, 1990).
 EPA Region IX, "Guidance Document for Correcting Common VOC & Other Rule Deficiencies," August 21, 2001 ("the Little Bluebook").
 EPA-450/2-78-015, Control of Volatile Organic Emissions from Existing Stationary Sources  -  Volume VI: Surface Coating of Miscellaneous Metal Parts and Products
 EPA 453/R-08-003, Control Techniques Guidelines for Miscellaneous Metal and Plastic Parts Coatings.
 Letter dated March 11, 2019, from Doris Lo, Manager, Rules Office, EPA, Region IX, to Michael Sundblom, Director, Pinal County Air Quality Control District, Subject: "RE: EPA Comments on the Pinal County Air Quality Control District Reasonably Available Control Technology (RACT) Analysis, Negative Declaration and Rules Adoption."
 Memorandum dated May 18, 2006, from William T. Harnett, Director, Air Quality Policy Division, to Regional Air Division Directors, Subject: "RACT Qs & As  -  Reasonably Available Control Technology (RACT): Questions and Answers."
 US EPA Region IX, Technical Support Document for EPA's Rulemaking for the Arizona State Implementation Plan, "Pinal County Air Quality Control District Reasonably Available Control Technology Analysis, Negative Declaration and Rules Adoption," March 2019.