VOC TASK FORCE UPDATE

Greg Johnson, Sherwin-Williams

Kelly Franklin, RCMA Industry Affairs Manager

RCMA VOC Task Force

• RCMA has a dedicated VOC Task Force for handling

VOC-related issues.

• Key activities include:

• Monitoring & reporting on rule developments

• Making recommendations to RCMA Board of Directors

• Drafting stakeholder comments during rule developments

• Identifying opportunities for new RCMA initiatives in VOC

arena

AIM COATINGS

RULE ADOPTION UPDATES- National Rule Adoptions Overview

- State Adoption Updates

- California Air District Adoption Updates

- South Coast Updates

National AIM Coatings Rule Adoptions

OTC Phase II Model Rule AdoptionUtah

- Adopted the OTC Phase II Model Rule in the Salt Lake City control area before

any OTC States

- New VOC Limits go in place 1/1/2015

New York

New York will likely will be first OTC state to adopt updated AIM Coatings Rule

based on the OTC Phase II

2013 Activities:

• Draft rule released in early 2013 and called for a January 1, 2014 effective date

• RCMA submitted comments requesting this effective date be pushed back.

2014 Activities:

• New York is working internally to begin holding smaller stakeholder groups

to discuss the draft; proposed rule still not formally introduced to public

• No significant progress towards adoption as of 1Q 2014

OTC Phase II Model Rule Adoption

Delaware- Had tentatively planned to start rule making procedure before

year-end 2013. Plan to mirror OTC Phase II rule closely.

New Jersey- Looking to adopt Phase II but not currently pursuing due to conflicting

priorities. Full process would take 2 or more years – adoption not likely

sooner than 2015-16.

Connecticut- Adoption of OTC Phase II is currently in internal review.

- Their office expects it will be 12 to 18 months until it is promulgated.

New Hampshire- Current rule Env-A 4200 is set to expire in 2014 and they plan to

consider updating to Phase II sometime this year.

Current California AIM Coatings Regulations

• El Dorado

• Sacramento

• Santa Barbara

• San Diego

Working to Adopt CARB 2007 SCM Rule

CARB 2007 SCM Adoption Progress

- Antelope Valley adopted revisions to their Rule 1113 to update to CARB

2007 SCM in June 2013. Lower VOC limits take effect June 18, 2014.

- Santa Barbara will be having a public workshop on their revised

Rule 323.1 based on the CARB 2007 SCM on March 11, 2014

- San Diego held a comment period on their updated AIM rule through

November 29 and are still responding to comments. Once adopted, the 2007

SCM-based rule will likely have a compliance date 1 year following adoption.

- El Dorado updating AIM rule 215 to CARB 2007 SCM per their SIP. Would

replace current rule which does not follow a CARB SCM or other well-known

model. Draft expected in Spring 2014.

- Sacramento is hoping to have a draft available for public workshop

in 2Q 2014

South Coast Rule 1113

Reminder: New Compliance Requirements

January 1, 2014

• New Labeling Requirements

• Reduced VOC limits for several categories

• Reduced Default VOC Limit from 250 g/L to

50 g/L

• VOC limits on colorants added at the point of

sale

ADHESIVES & SEALANTS

RULE ADOPTIONS- National Overview

- State Adoption Updates

- California Overview

- South Coast Rule 1168

National Adhesive & Sealants Rule Adoptions

OTC Adhesive & Sealant Model Rule Adoption

Massachusetts• Draft rule 310 CMR 7.18 has been out since October 2011 but

continues to be internally stalled.

Vermont• Had hoped to adopt OTC Model Rule for both AIM and

Adhesives & Sealants in 2013, no progress to report

Utah• OTC Model Rule adopted in Salt

Lake City nonattainment area –

9/1/2014 compliance date

California Districts with Adhesive & Sealants RulesRoughly based on current South Coast Rule 1168

SOUTH COAST RULE 1168- Rule Revision Overview

- December 2013 Proposed Amended Rule

- RCMA Comments & Responses

- CEQA Environmental Assessment

- Next Steps

SCAQMD Rule 1168 – Revision Overview

• South Coast announced plans to reopen Rule 1168,

Adhesives & Sealants, in early 2012

• Current Rule 1168 last updated 2005

• South Coast hosted first Working Group call June

25, 2013

• Public Workshop on December 18, 2013 began

official public review process

• Final rule expected to go to SCAQMD Board on

June 6, 2014

SCAQMD Rule 1168 – December 2013 Draft

• Exemption for tert-butyl acetate (tBAC) and dimethyl

carbonate (DMC) as VOCs for “roofing regulated products”

• Annual reporting requirement, due April 1

• Requirement to include date of manufacture on product, no

date code option

• 6-month sell through period; 12-month use through

• Replacement of “nonmembrane roof adhesive” and

“nonmembrane roof sealant” categories with “other roof

adhesive / sealant” categories (i.e. non-single ply)

• Reduced VOC content limits

• Proposed compliance deadline: January 1, 2016

Proposed VOC Content Limits

Product Category Current Limit Proposed Limit

Single-Ply Roof Membrane

Adhesive

250 g/L 100 g/L

Other Roof Adhesive 250 g/L 100 g/L

Single-Ply Roof Membrane

Sealant

450 g/L 100 g/L

Other Roof Sealant 300 g/L 50 g/L

SCAQMD Rule 1168 – December 2013 Draft

SCAQMD Rule 1168 – RCMA Comments

RCMA testified at the December 18 Public

Workshop and submitted comments for the

January 16 deadline on the following:

• Support for DMC / tBAC exemption

• Annual reporting requirement modifications:• Triennial reporting

• September 1 due date

• Date code to be included as an alternative to date of

manufacture

• Sell-through and use through of uniform length,

extended to three years

• Less stringent VOC content limits

SCAQMD Rule 1168 – Comment Responses

Per January 31, 2014 Draft of SCAQMD PAR 1168

Comment Status Notes

Support tBAC / DMC exemption ? Will be determined in CEQA

process; remains in rule currently

Triennial reporting ½ Annual reports due 2014-2016; no

subsequent reporting requirement

September 1 reporting due date � Reports due on September 1

Permit date code alternative � Date code added as an alternative

to date of manufacture

Sell-through and use-through

uniform, 3 years� Sell-through and use-through

extended to 3 years

Higher VOC content limits in

roofing categories? Compliance delayed to 1/1/2017;

“work to do” in roofing categories

SCAQMD Rule 1168 – CEQA Environmental Assessment

• The California Environmental Quality Act (CEQA)

requires that any proposed rule undergo a

thorough environmental assessment (EA) analyzing

the potential effect of the changes

• Findings of the EA will inform the SCAQMD rule

development process

• Main focus area for RCMA will be the DMC / tBAC

exemptions, which will be receiving scrutiny for

potential public health and worker exposure

concerns

SCAQMD Rule 1168 – CEQA Environmental Assessment

• A CEQA Initial Study was released in conjunction with the

December 18 Public Hearing

• RCMA submitted comments ahead of the January 14, 2014

deadline, highlighting the following:

• Exemption will give manufacturers increased flexibility to achieve

the very low VOC limits in PAR 1168

• DMC and tBAC are exempted as VOCs by the EPA and most

everywhere outside of South Coast

• Issues related to human health and worker safety should be

handled by appropriate regulatory agencies, including Cal-OSHA,

OEHHA, and IARC, not air quality regulators

• Potential exposure to public and to workers extremely low in

roofing regulated products

• Insufficient data exists to reach a conclusion on potential human

health issues

SCAQMD Rule 1168 – Next Steps

• Monitor CEQA Environmental Assessment findings; look for

further comment opportunities.

• Draft EA expected in early March

• Continued participation in SCAQMD Working Group

Meetings

• South Coast report to the Stationary Source Committee

• Goal is to discuss at April 18, 2014 SSC Meeting (Good Friday)

• Public Hearing (currently scheduled): June 6, 2014

• Mike Morris from SCAQMD Staff reports that the release of

the CEQA Draft EA “will be a major factor in seeing if the

rule will be delayed.”

NATIONAL OZONE

STANDARD

National Ambient Air Quality Standard (NAAQS)

EPA sets National Ambient Air Quality Standards for six

“criteria” pollutants, per the 1970 Clean Air Act:

• Carbon Monoxide

• Lead

• Nitrogen Dioxide

• Ozone• Particulate Pollution

• PM2.5

• PM10

• Sulfur Dioxide

State Implementation Plan (SIP) Requirements with Lowered NAAQS

If a new Ozone Standard were to be announced January 1, 2015….

Timeframe Requirement

< 2017 EPA designates areas as meeting (“attainment areas”) or not

meeting (“nonattainment areas”) the standards

< 2018 All states must submit “state implementation plans” (SIPs) to

show they can meet NAAQS

< ~2019-20 Each nonattainment area SIP must outline the strategies and

emissions control measures that show how the area will meet

the NAAQS

2012 National Ozone Nonattainment AreasBased on 2008 Standard (75 ppb)

CARB

Source: EPA

OTC

LADCO

SCAQMD

Date Ozone

(averaging time)

Effect

Pre-1997 120ppb

(1 hour)

National Ozone one-hour standard was 120 parts per billion

(ppb)

1997 80ppb

(8 hour)

Cities and regions fall out of compliance, including Houston,

Dallas, most of California, parts of I-95 Corridor

Mar.

2008

75ppb

(8 hour)

Additional areas in the country become non-compliant,

including Great Lakes region.

National Ozone Standard

Jan. 2010 Proposed

60ppb – 70ppb

(8 hour)

Could result in new non-compliant regions across the entire

country, inclusive of Great Smoky Mountains National Park

and other non-industrialized areas, as well as….

Source: EPA, “Our Nation's Air - Status and Trends through 2010,” February 2012

2010 Ozone Concentrations

Source: EPA, National Association of Manufacturers (NAM), American Petroleum Institute

Ozone Concentrations – Proposed Rule Comparison

National Ozone Nonattainment Areas –

2008 Standard

National Ozone Nonattainment Areas –

Proposed 60ppb

Process of Reviewing the NAAQS

Planning Includes a science policy workshop and Integrated Review Plan (IRP) that presents the schedule for the entire review, the process for conducting the review, and the key policy-relevant science issues that will guide the review.

Integrated Science Assessment (ISA)

Comprehensive review, synthesis, and evaluation of the most policy-relevant science.

Risk/Exposure Assessment (REA)

Draws upon ISA to develop quantitative characterizations of exposures and associated risks to human health or the environment

Policy Assessment (PA)

Provides a transparent staff analysis of the scientific basis for alternative policy options. The PA is also intended to facilitate the Clean Air Scientific Advisory Committee’s (CASAC’s) advice to the Agency and recommendations to the Administrator.

Rulemaking Taking into consideration the information in the ISA, REA(s), and PA and the advice of CASAC, EPA publishes a notice of proposed rulemaking. A public comment period follows before EPA issues a final rule.

National Ozone Standard – 2010-11 Activities

- January 7th, 2010 EPA announced they had drafted a

proposal to lower the ozone standard, currently 75 parts per

billion (ppb), down to 60 ppb – 70 ppb.

- On September 2, 2011, the Obama administration sent out a

press release withdrawing the draft NAAQS for Ozone.

- EPA released to the public the proposed rule that was

withdrawn, by the White House, which had set 70 ppb.

- EPA estimated that the compliance costs of this proposal

could have reached $90 billion / year

National Ozone Standard – 2013 Activities

- Clean Air Act mandates EPA assess National Ozone Standard

every 5 years, and was last evaluated in 2008

- Sierra Club sues the EPA over inaction on evaluating the

NAAQS for Ozone

- “Integrated Science Assessment for Ozone and Related

Photochemical Oxidants” (Final Report) released in February

2013 (i.e. step 2 of 4 preceding rulemaking)

- Industry coalition spearheaded by the National Association of

Manufacturers (NAM) filed to intervene in the litigation;

courts later denied the motion

National Ozone Standard – 2014 Activities

- Sierra Club files an intent to sue the EPA over not enforcing

regulations in 57 areas that are in nonattainment for the

2008 NAAQS

- “Health Risk and Exposure Assessment for Ozone & Welfare

Risk” and “Exposure Assessment for Ozone”, Second Drafts,

released late January 2014 (step 3 of 4 ahead of rulemaking)

- “Policy Assessment,” Second Draft, released late January

2014 (step 4 of 4 ahead of rulemaking)

- NAM expects a new NAAQS for Ozone to be released

after the midterm elections, as early as December 2014

National Ozone Standard – Potential Effect

- Any reduction in the ozone standard will result in new

nonattainment areas and, in turn, widespread new

VOC regulations.

- Per NAM’s 2010 economic review, revising the NAAQS

for ozone to 60 ppb could have these results:- Annual attainment cost estimated at $1.013 trillion between

2020 and 2030 (in 2010 dollars).

- GDP would be reduced by $676.8 billion in 2020.

- Together, annual attainment costs and reduced GDP in 2020

total $1.7 trillion.

- Total U.S. job losses attributable to a 60 ppb ozone standard

estimated to rise to 7.3 million by 2020, a figure that is equal

to 4.3 percent of the projected 2020 labor force.

Source: Manufacturers Alliance for Productivity and Innovation, “Economic Implications of EPA’s Proposed Ozone Standard,” September 2010

OZONE TRANSPORT REGION

EXPANSION

Ozone Transport Region Background

- Ozone Transport Commission (OTC) was formed

under the Clean Air Act to govern the “Ozone

Transport Region,” which has been designated a

nonattainment region by the EPA

- All states in the Ozone Transport Region have

specific additional air quality requirements and must

submit air quality SIPs regardless of whether the

state is in attainment

OTC Petition to Expand Ozone Transport Region

- On December 9, 2013, eight OTC states filed a petition with

the EPA to expand the OTR to include 9 “upwind” states:

- Illinois

- Indiana

- Kentucky

- Michigan

- North Carolina

- Ohio

- Tennessee

- Virginia

- West Virginia

- If petition is successful, these nine states will become

subject to the same requirements as other OTR states

and become part of the OTC

- EPA is required to respond within 18 months

(i.e. June 2015)

OTR Expansion – Potential Effects

- Expansion of OTC will like result in OTC VOC Model Rules

spreading to new regions outside of current OTC / LADCO

- Potential for decreased regulatory action out of current OTC

states if “upwind” air pollutants are addressed

Potential new

Ozone Transport

Region

CALIFORNIA ASSEMBLY BILL

(CA AB) 1330

California Assembly Bill 1330

• If enacted, California Assembly Bill 1330 would create

new funding sources to be spent on projects in

environmental justice communities

• Bill is currently stalled, has been listed on the “inactive

file” in the California Legislature since September 2013.

• South Coast Air Quality Management District has

expressed interest in adding amendments to the bill

once it is no longer inactive, seeking to increase the

scope of their department’s authority and powers

California Assembly Bill 1330

• California Chamber of Commerce is managing a

broad-based coalition of associations and

organizations in opposition to CA AB 1330 and

additional amendments such as those proposed by

SCAQMD

• RCMA has been added to the distribution list for the

coalition

• Issue will continue to be monitored

VOC TASK FORCE ACTIVITIES

- Key 2014 Activities

- Regulatory Monitoring

Key 2014 Initiatives

• SCAQMD Rule 1168

• National Ozone Standard

• Ozone Transport Region Expansion

• Monitor CA AB 1330

Regulatory Monitoring

• VOC Task Force identified the following issues

as areas to continue monitoring:

• OTC AIM Phase II state-level adoptions

• EPA / National AIM Rule update

• CARB updated SCM for AIM Coatings or SCM

for Adhesives & Sealants

• OTC AIM Phase III development

• Local / county-wide AIM and Adhesive &

Sealants regulations

QUESTIONS?