BOARD MEETING DATE: March 6, 2009
AGENDA NO. 33

PROPOSAL:

Adopt Rule 1143 – Consumer Paint Thinners and Multi-Purpose Solvents

SYNOPSIS:

The proposed rule will reduce VOC emissions by establishing VOC limits and other requirements for consumer paint thinners and multi-purpose solvents in the AQMD.

COMMITTEE:

Stationary Source, November 21, 2008, January 23, 2009, Reviewed

RECOMMENDED ACTIONS:

Adopt the attached resolution:

1. Certifying the CEQA Final Environmental Assessment for Proposed Rule 1143 – Consumer Paint Thinners and Multi-Purpose Solvents; and

2. Adopting Proposed Rule 1143 - Consumer Paint Thinners and Multi-Purpose Solvents
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Consumer Products are the largest source of VOC emissions in the South Coast Air Basin (Basin). CARB estimates that consumer products in the state of California account for approximately 245 tons per day (tpd) of VOC emissions. Approximately forty-five percent (45%) of that estimate or 110.3 tpd of VOC emissions can be attributed to the Basin.

The 2007 AQMP highlights the growing impact of VOC emissions from consumer products. Taking into account population growth and planned VOC reductions by CARB, the AQMP estimates that the annual average VOC emissions for the consumer product category will be 107 tpd by the year 2014, and will likely increase to 112.1 tpd by the year 2020.

Control Measure CTS-04 – as implemented through PR 1143 – relies on carryover technology from Rule 1171 - Solvent Cleaning Operations by transferring readily available low– and zero–VOC technology currently in use by stationary sources to the consumer market. Rule 1171 restricts most cleaning solvents to 25 g/L or less VOC at permitted facilities, as well as some non-permitted facilities. As part of the Rule 1171 implementation, the AQMD developed the Clean Air Solvent (CAS) program to highlight ultra-low VOC technology, as well as to provide a marketing tool for the manufacturers of these ultra-low VOC products.

Many of the solvent technologies certified under the CAS program have utility as consumer paint thinners and multi-purpose solvents. The most common and effective cleaners that meet this criteria are water-based or aqueous cleaners that contain little or no VOCs, although other options such as VOC exempt compounds are also available to the user. Of the 171 certified CAS products listed, staff found 102 products that could be used in the consumer market as multi-purpose solvents and paint thinners.

Paint thinners and multi-purpose solvents are available at a variety of retail outlets, including mass merchants like Lowe’s and Home Depot, as well as smaller hardware stores. Based on the latest CARB survey, it is estimated that 1,212,931 gallons of these high-VOC containing solvents are sold in the AQMD jurisdiction each year. Although CARB regulates numerous categories of consumer products, consumer paint thinners and multi-purpose solvents are currently an unregulated category. The AQMD therefore has the authority to regulate this category of consumer products. See Cal. Health & Safety Code § 41712(f). Indeed, Control Measure CTS-04 – Emission Reductions from the Reduction of VOC Content of Consumer Products Not Regulated by the State Board specifically calls for further emission reductions from consumer paint thinners and multi-purpose solvents not regulated by CARB. The AQMD initiated rulemaking to address emissions from this very important source category.
 

Affected Facilities

The facilities subject to the proposed rule include suppliers, distributors and retailers of consumer paint thinners and multi-purpose solvents and anyone who uses or solicits the use of any consumer paint thinner or multi-purpose solvent within the District.
 

Public Process

During the rulemaking process, staff made multiple site visits to retail outlets and met numerous times with industry and members of the community. A public workshop and two public consultation meetings were held on November 5, 2008, December 9, 2008, and February 5, 2009, respectively.
 

Proposal

The proposed rule will reduce VOC emissions from solvent materials that are commonly used in thinning of coatings and the clean-up of coating application equipment and any other solvent cleaning operation. The proposed rule will apply to any person who supplies, sells, offers for sale, or manufactures any consumer paint thinners and multi-purpose solvents for use in the District.

The proposed rule:

• Establishes an interim material VOC limit of 300 g/l, effective January 1, 2010, and a material VOC limit of 25 g/l effective January 1, 2011, for all consumer paint thinners and multi-purpose solvents and establishes labeling requirements.
• Prohibits the sale of non-compliant products.
• Requires manufacturers to provide a list of distributors and to submit annual quantity emission reports.
• Provides a sell-through period of one year for products manufactured prior to the effective date.
• Provides exemptions for solvents used to clean-up equipment provided they are labeled and designated for polyaspartic and polyurea coatings, and thinners labeled and designated for the thinning of specific industrial maintenance coatings.
• Prohibits consumer paint thinners and multi-purpose solvents that contain an excess of 0.1% of Group II exempt compounds as listed in Rule 102 except cyclic, branched, or linear, completely methylated siloxanes.
   

Emissions Reductions and Cost Effectiveness Determination

As proposed, the rule would reduce emissions by 5.94 tons per day, effective January 1, 2010 and then by an additional 3.81 tons per day for the final limit, effective January 1, 2011. The total emission reductions are estimated to be 9.75 tpd, with an estimated annualized cost of approximately $12 million dollars. The overall cost-effectiveness of the proposed rule is estimated to be $3,384 per ton of VOC emissions reduced.

AQMP and Legal Matters

PR 1143 will implement Control Measure CTS-04 – Emission Reductions From The Reductions From Consumer Products Not Regulated By The State Board, of the 2007 Air Quality Management Plan (AQMP) by limiting emissions at the point of sale and the point of product application.
 

California Environmental Quality Act (CEQA)

Pursuant to California Environmental Quality Act (CEQA) Guidelines section 15252 and AQMD Rule 110, the AQMD has prepared an Environmental Assessment (EA) for PR 1143. The Draft EA was released for a 30-day public review and comment period beginning November 13 and ending December 12, 2008. Staff received three comment letters as of December 12, 2008, and one late comment.
 

Key Issues

Several key issues have been brought to staff’s attention during the public workshop and public consultation meetings. The key issues are summarized below, along with staff’s response:

ISSUE: District does not have regulatory authority over consumer products.

RESPONSE: District counsel and CARB have determined that since CARB does not currently regulate consumer paint thinners and multi-purpose solvents, the District has the authority to regulate this category of consumer products pursuant to California Health and Safety Code section 41712(f).
 

ISSUE: Dual rulemaking by the District and CARB is unnecessary.

RESPONSE: The AQMD staff recognizes that CARB staff is currently working on an amendment to the CARB consumer products regulation for this category, with a scheduled public hearing date of June 2009. However, draft rule language and implementation dates have not been discussed yet. Additionally, based on CARB’s delay on rulemaking pertaining to other categories in the consumer products regulation, the AQMD staff believes that an expedited rulemaking is necessary to implement CTS-04 in a timely manner. AQMD staff is working closely with CARB and plans to make available all supporting documents to CARB, as they have done for the last two iterations of the Suggested Control Measure for Architectural Coatings.
 

ISSUE: Flammability concerns with the increased use of acetone.

RESPONSE: Staff’s technology assessment shows that acetone is just one of many technologies available to comply with the proposed VOC limits. Staff has extensively studied the flammability issue in the environmental assessments prepared for other rules that potentially increased the use of acetone. These assessments included consultations and testimony before the board from local fire agencies that acetone does not pose a greater risk than other multi-purpose solvents in use today, including lacquer thinners, MEK, xylene, etc. Furthermore, acetone is currently available for sale in several retail outlets including Home Depot, Lowes, and many smaller hardware stores. Staff will continue to monitor activities at CARB and the Office of the State Fire Marshall to determine any changes from the current evaluations.
 

ISSUE: A reactivity-based ozone control strategy should be included.

RESPONSE: Staff is open to developing a reactivity-based alternative control approach for thinners that is enforceable, and would result in equivalent ozone reduction, as well as other environmental and health benefits compared to the traditional mass-based approach, Staff has included a resolution commitment directing staff to work with CARB, USEPA, American Chemistry Council and the public to evaluate the feasibility of such an approach. Furthermore, staff met with CARB and members of industry on February 5, 2009 to form a reactivity study group. The first meeting will be scheduled after board adoption. Nonetheless, it is important to note that such a strategy is difficult to develop and implement.
 

ISSUE: Current emissions inventory may be overestimated.

RESPONSE: Staff acknowledges that the emission inventory derived was based on the most recent CARB survey which is a few years old and may be somewhat outdated. However, staff is using the latest inventory data from the 2007 AQMP but will revise the inventory and reduction estimates when new information becomes available. Staff also believes that the level of control, going from high VOC to low VOC technology, is expected to remain the same and should not impact the overall control factor. Lastly, all levels of feasible VOC control are needed to meet federal clean air standards in southern California.
 

ISSUE: Sell-through period too short.

RESPONSE: The sell-through provision is intended to provide the necessary time for retailers to eliminate the inventory of higher-VOC products with the lower-VOC products and allow manufacturers to phase in the compliant products, effective January 1, 2010. Industry had concerns that since other rules such as Rules 1113, 1168, 1171, and Proposed Rule 1144 were allowed sell-through provisions, solvents should also share the same. Therefore, staff revised Proposed Rule 1143 and increased the six month sell-through provision to one year, which is the same as several other existing AQMD rules. A similar one year sell-through provision is also included in paint regulations in the European Union.
 

Socioeconomic Analysis

PR 1143 would affect approximately 107 manufacturers and 12 distributors of consumer paint thinners and multi-purpose solvents. The manufacturers and distributors belong to the industries of chemical manufacturing and wholesale trade, respectively. All the users of thinners and solvents under PR 1143 are assumed to be the general public.

The average annual cost of PR 1143 is estimated to be $12 million, on average, between 2011 and 2025 in the local economy. Overall, up to 154 jobs could be foregone annually, on average between 2011 and 2025 in the local economy. Overall, up to 154 jobs could be foregone annually, on average between 2011 and 2025 in the local economy.
 

Implementation and Resources

Staff believes that the enforcement and implementation of the rule at the manufacturer and retail levels can be conducted with the existing resources.
 

ATTACHMENTS: (EXE, ~5.4m)

A. Summary of Proposed Rule
B. Rule Development Process
C. Key Contacts List
D. Resolution
E. Rule Language
F. Final Staff Report
G. Final Socioeconomic Report
H. Final Environmental Assessment