DAR File No. 41827

Environmental Quality, Air Quality

Rule R307-354

Automotive Refinishing Coatings

Notice of Proposed Rule

(Amendment)

DAR File No.: 41827
Filed: 06/14/2017 04:52:51 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The amendments to this rule strengthen the area source coating rules. These amendments will help further reduce Volatile Organic Compound (VOC) emissions and will be part of the upcoming Serious PM2.5 State Implementation Plan (SIP).

Summary of the rule or change:

The applicability section is being amended from "potential to emit 2.7 tons per year or more of VOC" emissions to an application-based threshold of "a combined 20 gallons or more of coating products and associated solvents per year." Other changes included added definitions and a new recordkeeping section.

Statutory or constitutional authorization for this rule:

• Section 19-2-104

Anticipated cost or savings to:

the state budget:

There will be no impact on the state budget because the only substantive change to the rule that could result in costs for the regulated party is the change in the applicability threshold. This change does not impact the state. Therefore, there is no cost or savings for the state.

local governments:

There will be no impact on local government because the only substantive change to the rule that could result in costs for the regulated party is the change in the applicability threshold. This change does not impact local government. Therefore, there is no cost or savings for local governments.

small businesses:

There will be an impact on small businesses because the new rule applicability threshold will cause several small businesses to be regulated by the rule that were not regulated previously. The cost to these businesses will depend on how much material is used. These businesses will pay an estimated $2,864 per ton of VOC emissions removed from the air. The Division of Air Quality (DAQ) has considered methods of reducing the negative fiscal impact of the rule on small businesses in accordance with Subsection 63G-3-301(6) but cannot establish less stringent requirements, schedules, or deadlines; simplify compliance or reporting requirements; replace design standards with performance standards; or exempt small businesses from the proposed rule. This is because the rule is required by federal law to satisfy the Clean Air Act requirement to implement Best Available Control Measures in the manner prescribed by the PM2.5 Implementation Rule, See 42 U.S.C. 7513a (b)(1) and 40 CFR 51.1010(a)(1) through (5). The rule also helps prevent future violations of federal air quality standards. Although the rule is required to help prevent future air quality violations and comply with federal law, DAQ has taken steps to reduce the negative fiscal impact the rule may have on small businesses. The rule provides regulated sources with flexibility and potential cost saving alternatives in regard to compliance. This includes a vapor pressure limit, instead of a density-based limit, for solvents. The vapor pressure limit gives businesses greater flexibility as to the types of solvents they may use. The rule also includes the option to use an add-on control device that can be used as an alternative to meeting the content limits in the rule. These provisions give businesses flexibility to comply with the rule in the way that makes the most sense for them.

persons other than small businesses, businesses, or local governmental entities:

Persons other than small businesses, businesses, or local government entities will not be impacted by this rule because the rule applicability threshold is set at a level that excludes hobbyists and other people that are not businesses or governments.

Compliance costs for affected persons:

The compliance cost for people who are affected by the rule will be about $2,864 per ton of VOC removed from the air.

Comments by the department head on the fiscal impact the rule may have on businesses:

I. WHETHER A FISCAL IMPACT TO BUSINESS IS EXPECTED AS A RESULT OF THE PROPOSED RULE AND, IF SO, A DESCRIPTION OF WHY: The proposed rule may result in a fiscal impact to some businesses because the rule amendment changes the applicability threshold. The threshold is being changed from the "potential to emit 2.7 tons or more of VOC" to the "use of a combined 20 gallons or more" of product. This new threshold is meant to ensure that all businesses that use automotive refinishing coatings are regulated by Rule R307-354. Businesses that already have the potential to emit 2.7 tons or more of VOC are not impacted by the rule amendment. Therefore, the businesses most likely impacted by this amendment are small businesses that did not previously meet the applicability threshold of the rule. II. AN ESTIMATE OF THE TOTAL NUMBER OF BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: The number of businesses that are impacted by this rule amendment is difficult to predict because there is no data on the quantity of regulated product used by each business in the relevant areas. The rule generally covers businesses that have the following NAICS Code: 811121, Automotive Body, Paint, and Interior Repair and Maintenance. The Division used data from Utah's FirmFind database to determine that there are 324 total businesses and 324 small businesses that have these codes. Of those businesses, 268 may be impacted by the rule amendment. III. AN ESTIMATE OF THE SMALL BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: The amendments to this rule will likely only have a fiscal impact on small businesses. There are 268 small businesses that have been identified by DAQ as businesses that may be fiscally impacted by this rule amendment. IV. A DESCRIPTION OF THE SOURCES OF COST OR SAVINGS AS WELL AS THE EXPECTED NET SAVINGS OR COST TO BUSINESS ESTABLISHMENTS AND SMALL BUSINESS ESTABLISHMENTS AS A RESULT OF THE PROPOSED RULE OVER A ONE-YEAR PERIOD, IDENTIFYING ONE-TIME AND ONGOING COSTS: The rule amendment potentially impacts businesses that apply between 20 and approximately 1,688 gallons of regulated product annually. After speaking with industry experts, DAQ has determined that the source of the cost is an average $5 per gallon difference between compliant and non-compliant products. This means that businesses impacted by the rule will spend between $100 and $8,440 dollars to comply with the rule. Most of the businesses impacted by the rule will be closer to the $100 amount on the spectrum. This is because most of the businesses that are impacted by the amendment are small businesses with between 1 and 10 employees. They do not use large quantities of product. It is important to note that many of the larger businesses that are closer to the 1,688 gallon threshold will likely not be impacted by the rule. This is because they may already be required to comply with the rule based on the fact that they have the potential to emit over 2.7 tons of VOC emissions. Some of the small businesses may also already be using compliant coatings and will not have any additional costs as a result of the rule amendment. Based on the 268 potentially impacted businesses identified by DAQ from the FirmFind database, the aggregate annual fiscal impact of the rule on all businesses in Utah will range between $26,800 and $2,261,920. Once again, the total cost will fall toward the lower end of the spectrum ($26,800) because of the size of the businesses and the likelihood that larger businesses are already complying with the rule. These figures represent the continuing annual costs to businesses. There are no one-time costs associated with the rule amendment. V. DEPARTMENT HEAD?S COMMENTS ON THE ANALYSIS: The above analysis represents DAQ's best estimate as to the fiscal impact this rule amendment will have on businesses. If a company uses a greater quantity of product, then the rule amendment will cause a more significant fiscal impact. EPA has estimated the total cost of this type of regulation to be $2,864 per ton of VOC emissions removed from the atmosphere. The EPA considers this cost to be reasonable in the context of implementing Best Available Control Measures (BACM), as required by the Clean Air Act for Serious nonattainment areas.

Alan Matheson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Environmental Quality
Air QualityRoom Fourth Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3085

Direct questions regarding this rule to:

• Ryan Stephens at the above address, by phone at 801-536-4419, by FAX at 801-536-0085, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/15/2017

Interested persons may attend a public hearing regarding this rule:

• 07/27/2017 01:00 PM, DEQ Bldg, 195 N 1950 W, DEQ Board Room, Salt Lake City, UT

This rule may become effective on:

08/22/2017

Authorized by:

Bryce Bird, Director

R307. Environmental Quality, Air Quality.

R307-354. Automotive Refinishing Coatings.

R307-354-1. Purpose.

The purpose of R307-354 is to limit volatile organic compound emissions (VOC) from automotive refinishing sources.

 

R307-354-2. Applicability.

[(1) ]R307-354 applies to [sources]automotive refinishing operations and related cleaning activities that use a combined 20 gallons or more of coating products and associated solvents per year and are located in Box Elder, Cache, Davis, Salt Lake, Tooele, Utah [and]or Weber counties[that have the potential to emit 2.7 tons per year or more of VOC, including related cleaning activities].

 

R307-354-3. Exemptions.

[(2) ]The requirements of R307-354 shall not apply to any canned aerosol coating products.

 

R307-354-[3]4. Definitions.

The following additional definitions apply to R307-354:

"Adhesion promoter" means a coating which is labeled and formulated to be applied to uncoated plastic surfaces to facilitate bonding of subsequent coatings, and on which, a subsequent coating is applied.

"As applied" means the volatile organic compound and solids content of the finishing material that is actually used for coating the substrate. It includes the contribution of materials used for in-house dilution of the finishing material.

"Automotive" means passenger cars, vans, motorcycles, trucks, buses, golf carts and all other mobile equipment.

"Automotive refinishing" means the process of coating automobiles, after-market automobiles, motorcycles, light and medium-duty trucks and vans that are performed in auto body shops, auto repair shops, production paint shops, new car dealer repair and paint shops, fleet operation repair and paint shops, and any other facility which coats vehicles under the Standard Industrial Classification Code 7532 (Top, Body and Upholstery Repair Shops and Paint Shops). This includes dealer repair of vehicles damaged in transit. It does not include refinishing operations for other types of mobile equipment, such as farm machinery and construction equipment or their parts, including partial body collision repairs, that is subsequent to the original coating applied at an automobile original equipment manufacturing plant.

"Clear coating" means any coating that contains no pigments and is labeled and formulated for application over a color coating or clear coating.

["Coating" means a protective, decorative, or functional material applied in a thin layer to a surface. Such materials may include paints, topcoats, varnishes, sealers, stains, washcoats, basecoats, inks, and temporary protective coatings.]

"Color coating" means any pigmented coating, excluding adhesion promoters, primers, and multi-color coatings, that requires a subsequent clear coating and which is applied over a primer, adhesion promoter, or color coating. Color coatings include metallic and iridescent color coatings.

"Enclosed paint gun cleaner" means a cleaner consisting of a closed container with a door or top that can be opened and closed and fitted with cleaning connections. The spray gun is attached to a connection, and solvent is pumped through the gun and onto the exterior of the gun. Cleaning solvent falls back into the cleaner's solvent reservoir for recirculation.

"Metallic/Iridescent color coating" means a coating which contains iridescent particles, composed of either metal as metallic particles or silicon as mica particles, in excess of 0.042 pounds per gallon as applied, where such particles are visible in the dried film.

"Multi-color coating" means a coating which exhibits more than one color when applied, and which is packaged in a single container and applied in a single coat.

"Non-enclosed paint gun cleaner" means cleaner consisting of a basin similar to a sink in which the operator washes the outside of the gun under a solvent stream. The gun cup is filled with recirculated solvent, the gun tip is placed into a canister attached to the basin, and suction draws the solvent from the cup through the gun. The solvent gravitates to the bottom of the basin and drains through a small hole to a reservoir that supplies solvent to the recirculation pump.

"Pretreatment coating" means a coating which contains no more that 16% solids, by weight, and at least 0.5% acid, by weight, is used to provide surface etching, and is applied directly to bare metal surfaces to provide corrosion resistance and promote adhesion for subsequent coatings.

"Primer" means any coating which is labeled and formulated for application to a substrate to provide a bond between the substrate and subsequent coats; corrosion resistance; a smooth substrate surface; or resistance to penetration of subsequent coats, and on which a subsequent coating is applied. Primers may be pigmented.

"Primer sealer" means any coating which is labeled and formulated for application prior to the application of a color coating for the purpose of color uniformity, or to promote the ability of the underlying coating to resist penetration by the color coating.

"Single-stage coating" means any pigmented coating, excluding primers and multi-color coatings, labeled and formulated for application without a subsequent clear coat. Single-stage coatings include single-stage metallic/iridescent coatings.

"Solids" means the part of the coating that remains after the coating is dried or cured; solids content is determined using data from EPA Method 24.

"Temporary protective coating" means any coating which is labeled and formulated for the purpose of temporarily protecting areas form overspray or mechanical damage.

"Topcoat" means any coating or series of coatings applied over a primer or an existing finish for the purpose of protection or beautification.

"Truck bed liner coating" means any coating, excluding clear, color, multi-color, and single-stage coatings, labeled and formulated for application to a truck bed to protect it from surface abrasion.

"Underbody coating" means any coating labeled and formulated for application to wheel wells, the inside of door panels or fenders, the underside of a trunk or hood, or the underside of [the]a motor vehicle.

"Uniform finish coating" means any coating labeled and formulated for application to the area around a spot repair for the purpose of blending a repaired area's color or clear coat to match the appearance of an adjacent area's existing coating.[Prior to May 1, 2013, this coating category may be referred to as uniform finish blenders.

"Uniform finish blender" means a coating designed to blend a repaired topcoat into an existing topcoat.]

 

R307-354-[4]5. VOC Content Limits.

[Each]No owner or operator shall [not ]apply coatings with a VOC content [in excess of]greater than the amounts specified in Table 1 [or shall], unless the owner or operator uses an add-on control device as specified in R307-354-[6]7.

 

TABLE 1

AUTOMOTIVE REFINISHING VOC LIMITS
(values in pounds of VOC per gallon of coating, minus water and
exempt solvent (compounds not defined
as VOC in R307-101-2), as applied)

C[OATING]oating C[ATEGORY]ategory VOC C[ONTENT]ontent L[IMITS]imits          (lb/gal)



Adhesion Promoter                                 4.5



Clear Coating                                     2.1



Color Coating                                     3.5



Multi-color Coating                               5.7



Pretreatment Coating                              5.5



Primer                                            2.1



Primer Sealer                                     2.1



Single-stage Coating                              2.8



Temporary Protective Coating                      0.5



Truck Bed Liner Coating                           2.6



Underbody Coating                                 3.6



Uniform Finish Coating                            4.5



Any Other Coating Type                            2.1

 

R307-354-[5]6. Work Practice[ and Recordkeeping].

(1) Control techniques and work practices are to be implemented at all times to reduce VOC emissions. Control techniques and work practices include:

[(a) Tight fitting covers for open tanks;]

([b]a) [Covered]Closed containers shall be used for the disposal of solvent wiping cloths;

[(c) Collection hoods for areas where solvent is used for cleanup;]

([d]b) Minimizing spills of VOC-containing cleaning materials;

([e]c) Conveying VOC-containing materials from one location to another in closed containers or pipes; and

([f]d) Cleaning spray guns in enclosed systems or in a non-enclosed paint gun cleaning process may be used if the vapor pressure of the cleaning solvent (excluding water and solvents exempt from the definition of [volatile organic compounds found in R307-101-2]VOCs) is less than 100 mm Hg at 68 degrees Fahrenheit and the solvent is directed towards a drain that leads directly to an enclosed remote reservoir. Automotive spray gun solvent clean[ers]ing materials that are defined as a "consumer product" under R307-357 are exempt from the vapor pressure requirement and are regulated under the requirements in R307-357.

(2) Application equipment requirements:

(a) A person shall not apply any coating to an automotive part or component unless the coating application method achieves a [demonstrated]minimum 65% transfer efficiency.

[(b) ]The following coating application methods have been demonstrated to achieve a minimum of 65% transfer efficiency:

(i) Brush, dip or roll coating operated in accordance with the manufacturers specifications;

(ii) Electrostatic application equipment operated in accordance with the manufacturers specifications; and

(iii) High Volume, Low Pressure spray equipment operated in accordance with the manufacturers specifications.

([c]3) Other coating application methods may be used that have been demonstrated to be capable of achieving at least 65% transfer efficiency, as certified by the manufacturer.

[(3) All sources subject to R307-354 shall maintain records demonstrating compliance with R307-354-4 and R307-354-5.

(a) Records shall include, but not be limited to, inventory and product data sheets of all coatings and solvents subject to R307-354.

(b) These records shall be available to the director upon request.]

 

R307-354-[6]7. Add-On Controls Systems Operations.

(1) If an add-on control system is used, [T]the owner or operator shall install and maintain [an incinerator, carbon adsorption, or any other]the add-on emission control system[, provided that the emission control system is operated and maintained] in accordance with the manufacturer recommendations [in order to]and maintain [at least ]90% or greater capture and control efficiency. [Determination of]The overall capture and control efficiency shall be determined using EPA approved methods, as follows.

(a) The capture efficiency of a VOC emission control system's VOC collection device shall be determined according to EPA's "Guidelines for Determining Capture Efficiency," January 9, 1995 and 40 CFR Part 51, Appendix M, Methods 204-204F, as applicable.

(b) The control efficiency of a VOC emission control system's VOC control device shall be determined using test methods in Appendices A-1, A-6, and A-7 to 40 CFR Part 60, for measuring flow rates, total gaseous organic concentrations, or emissions of exempt compounds, as applicable.

(c) An alternative test method may be substituted for the preceding test methods after review and approval by the EPA Administrator.

[(2) The owner or operator of a control system shall provide documentation that the emission control system will attain the requirements of R307-354-6(1).

(3) The owner or operator shall maintain records of key system parameters necessary to ensure compliance with R307-354-6. Key system parameters may include, but are not limited to, temperature, pressure and flow rates. Operator inspection schedule, monitoring, recordkeeping, and key parameters shall be in accordance with the manufacturer's recommendations, and as required to demonstrate operations are providing continuous emission reduction from the source during all periods that the operations cause emissions from the source.

(4) The owner or operator shall maintain for a minimum of two years records of operating and maintenance sufficient to demonstrate that the equipment is being operated and maintained in accordance with the manufacturer recommendations.]

 

R307-354-8. Recordkeeping.

(1) The owner or operator shall maintain records of the following:

(a) Records that demonstrate compliance with R307-354. Records shall include, but are not limited to, inventory and product data sheets of all coatings and solvents subject to R307-354.

(b) If an add-on control device is used, records of key system parameters necessary to ensure compliance with R307-354-7.

(i) Key system parameters shall include, but are not limited to, temperature, pressure, flow rates, and an inspection schedule.

(ii) Key inspection parameters shall be in accordance with the manufacturer's recommendations, and as required to demonstrate operations are providing continuous emission reduction from the source during all periods that the operations cause emissions from the source.

(2) All records must be maintained for a minimum of 2 years.

(3) Records must be made available to the director upon request.

 

KEY: air pollution, automotive refinishing, VOC, coatings

Date of Enactment or Last Substantive Amendment: [December 1, 2014]2017

Authorizing, and Implemented or Interpreted Law: 19-2-104(1)(a)