95-29748. National Emission Standards for Hazardous Air Pollutants for Shipbuilding and Ship Repair (Surface Coating) Operations  

  • [Federal Register Volume 60, Number 241 (Friday, December 15, 1995)]
    [Rules and Regulations]
    [Pages 64330-64347]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-29748]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Part 63
    
    [AD-FRL-5335-3]
    RIN 2060-AD98
    
    
    National Emission Standards for Hazardous Air Pollutants for 
    Shipbuilding and Ship Repair (Surface Coating) Operations
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Final rule.
    
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    SUMMARY: This action promulgates national emission standards for 
    hazardous air pollutants (NESHAP) under Section 112 of the Clean Air 
    Act as amended in 1990 (CAA) for shipbuilding and ship repair (surface 
    coating) operations. The NESHAP requires existing and new major sources 
    to control emissions using the maximum achievable control technology 
    (MACT) to control hazardous air pollutants (HAP).
        The MACT described herein is based on maximum HAP limits for 
    various categories of marine coatings. Surface coating operations at 
    shipyards are the focus of the NESHAP, and a variety of HAP are used as 
    solvents in marine coatings. The HAP emitted by the facilities covered 
    by this final rule include xylene, toluene, ethylbenzene, methyl ethyl 
    ketone, methyl isobutyl ketone, ethylene glycol, and glycol ethers. All 
    of these pollutants can cause reversible or irreversible toxic effects 
    following exposure. The potential toxic effects include irritation of 
    the eye, nose, throat, and skin and damage to the blood cells, heart, 
    liver, and kidneys. The final rule is estimated to reduce baseline 
    emissions of HAP by 24 percent or 318.5 megagrams per year (Mg/yr) (350 
    tons per year (tpy)).
        The emissions reductions achieved by these standards, combined with 
    the emissions reductions achieved by similar standards, will achieve 
    the primary goal of the CAA, which is to ``enhance the quality of the 
    Nation's air resources so as to promote the public health and welfare 
    and productive capacity of its population''. The intent of this final 
    regulation is to protect the public health by requiring the maximum 
    degree of reduction in emissions of volatile organic hazardous air 
    pollutants (VOHAP) from new and existing sources, taking into 
    consideration the cost of achieving such emission reduction, any nonair 
    quality, health and environmental impacts, and energy requirements.
    
    DATES: The effective date is December 15, 1995. Incorporation by 
    reference of certain publications listed in the regulations is approved 
    by the director of the Federal Register as of December 15, 1995.
    
    ADDRESSES: Background Information Document. The background information 
    document (BID) for the promulgated standards may be obtained from the 
    U.S. Department of Commerce, National Technical Information Service 
    (NTIS), Springfield, Virginia, 22161, telephone number (703) 487-4650. 
    Please refer to ``National Emission Standards for Hazardous Air 
    Pollutants for Shipbuilding and Ship Repair Facilities (Surface 
    Coating)--Background Information Document for Final Standards,'' EPA-
    453/R-95-016b. The BID contains (1) a summary of the changes made to 
    the standards since proposal and (2) a summary of all the public 
    comments made on the proposed standards and the Administrator's 
    response to the comments.
        Electronic versions of the promulgation BID as well as this final 
    rule are available for download from the EPA's Technology Transfer 
    Network (TTN), a network of electronic bulletin boards developed and 
    operated by the Office of Air Quality Planning and Standards. The TTN 
    provides information and technology exchange in various areas of air 
    pollution control. The service is free, except for the cost of a phone 
    call. Dial (919) 541-5742 for data transfer of up to a 14,400 bits per 
    second. If more information on TTN is needed, contact the systems 
    operator at (919) 541-5384.
        Docket. Docket No. A-92-11, containing supporting information used 
    in developing the promulgated standards, is available for public 
    inspection and copying from 8 a.m. to 5:30 p.m., Monday through Friday, 
    at the EPA's Air and Radiation Docket and Information Center, Waterside 
    Mall, Room M-1500, Ground Floor, 401 M Street SW, Washington, DC 20460. 
    A reasonable fee may be charged for copying.
    
    FOR FURTHER INFORMATION CONTACT: Dr. Mohamed Serageldin at (919) 541-
    2379, Emission Standards Division (MD-13), U.S. Environmental 
    Protection Agency, Research Triangle Park, North Carolina 27711.
    
     
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    SUPPLEMENTARY INFORMATION: Under Section 307(b)(1) of the CAA, judicial 
    review of NESHAP is available only by the filing of a petition for 
    review in the U.S. Court of Appeals for the District of Columbia 
    Circuit within 60 days of publication of this rule. Under Section 
    307(b)(2) of the CAA, the requirements that are the subject of this 
    action may not be challenged later in civil or criminal proceedings 
    brought by the EPA to enforce these requirements.
        The information presented in this preamble is organized as follows:
    
    I. Regulatory Background and Purpose
    II. The Standards
    III. Summary of Impacts
    IV. Significant Changes to the Proposed Standards
        A. Public Participation
        B. Comments on the Proposed Standards
        C. Significant Comments/Changes
    V. Control Techniques Guidelines (CTG)
    VI. Administrative Requirements
        A. Docket
        B. Paperwork Reduction Act
        C. Executive Order 12866
        D. Executive Order 12875
        E. Regulatory Flexibility Act
        F. Unfunded Mandates Act of 1995
    
    I. Regulatory Background and Purpose
    
        Section 112 of the CAA requires the EPA to evaluate and control HAP 
    emissions. The control of HAP is to be achieved through promulgation of 
    emission standards under Sections 112(d) and (f), and of work practice 
    standards under Section 112(h) where appropriate, for categories of 
    sources that emit HAP. Pursuant to Section 112(c) of the CAA, the EPA 
    published in the Federal Register the initial list of source categories 
    that emit HAP on July 16, 1992 (57 FR. 31576). This list includes major 
    and area sources of HAP for which the EPA intends to issue regulations 
    between November 1992 and November 2000.
        The CAA was created, in part, ``to protect and enhance the quality 
    of the Nation's air resources so as to promote the public health and 
    welfare and productive capacity of its population'' 42 U.S.C. 
    Sec. 7401(b). This final regulation will protect the public health by 
    reducing emissions of HAP from surface coating operations at 
    shipbuilding and ship repair facilities (shipyards).
        Many shipyards are major sources of HAP emissions, emitting over 23 
    Mg/yr (25 tpy) of organic HAP, including toluene, xylene, ethylbenzene, 
    methanol, methyl ethyl ketone, methyl isobutyl ketone, ethylene glycol 
    and glycol ethers. All of these pollutants can cause reversible or 
    irreversible toxic effects following exposure. The potential toxic 
    effects include irritation of the eyes, nose, throat, and skin, 
    irritation and damage to the blood cells, heart, liver, and kidneys. 
    These adverse health effects are associated with a wide range of 
    ambient concentrations and exposure times and are influenced by source-
    specific characteristics such as emission rates and local 
    meteorological conditions. Health impacts are also dependent on 
    multiple factors that affect human variability, such as genetics, age, 
    health status (e.g., the presence of pre-existing disease), and 
    lifestyle.
        The final standards will reduce VOHAP emissions from shipyard 
    surface coating operations by 318.5 Mg/yr (350 tpy) from a baseline 
    level of 1,362 Mg/yr (1,497 tpy). No significant economic impacts are 
    associated with the final standards. No firms or facilities are at risk 
    of closure as a result of the final standards, and there will not be a 
    significant economic impact on a substantial number of small entities.
    
    II. The Standards
    
        The final rule is applicable to all existing and new shipbuilding 
    and repair facilities that are major sources of HAP or are located at 
    plant sites that are major sources. Major source facilities that are 
    subject to this rule must not apply any marine coating with a VOHAP 
    content in excess of the applicable limit and must implement the work 
    practices required in the rule. Section 112(a) of the CAA defines major 
    source as a source, or group of sources, located within a contiguous 
    area and under common control that emits or has the potential to emit, 
    considering controls, 9.1 Mg/yr (10 tpy) or more of any individual HAP 
    or 22.7 Mg/yr (25 tpy) or more of any combination of HAP. Area sources 
    are stationary sources that do not qualify as ``major.'' The term 
    ``affected source'' as used in this rule means the total of all HAP 
    emission points at each shipbuilding and ship repair facility that is 
    subject to the rule. ``Potential to emit'' is defined in the Section 
    112 General Provisions (40 CFR 63.2) as ``the maximum capacity of a 
    stationary source to emit a pollutant under its physical or operational 
    design.''
        To determine the applicability of this rule to facilities that are 
    within a contiguous area of other HAP-emitting emission sources that 
    are not part of the source category covered by this rule, the owner or 
    operator must determine whether the plant site as a whole is a major 
    source. A formal HAP emissions inventory must be used to determine if 
    total HAP emissions from all HAP emission sources at the plant site 
    meets the definition of a major source. The actual emissions of HAP 
    from most shipyards are substantially less than the major source cutoff 
    limits [i.e., 9.1 Mg/yr (10 tpy) of any single HAP, or 22.8 Mg/yr (25 
    tpy) of all HAP combined]. If the source becomes a synthetic minor 
    source through accepting enforceable restrictions that ensure potential 
    and actual HAP emissions will be below the major source cutoffs, the 
    NESHAP does not apply. See promulgation BID Section 2.4 for additional 
    details and the associated recordkeeping provisions (see ADDRESSES 
    section of this preamble).
        Existing major sources may switch to area source status by 
    obtaining and complying with a federally enforceable limit on their 
    potential to emit prior to the ``compliance date'' of the regulation. 
    The ``compliance date'' for this regulation is defined as December 16, 
    1996. New major sources are required to comply with the NESHAP 
    requirements upon start up or the promulgation date, whichever is 
    later. Existing major sources may switch to area source status by 
    obtaining and complying with a federally enforceable limit on their 
    potential to emit that makes the facility an area source prior to the 
    ``compliance date'' of the regulation. The compliance date for this 
    regulation is December 16, 1996. A facility that has not obtained 
    federally enforceable limits on its potential to emit by the compliance 
    date, and that has not complied with the NESHAP requirements, will be 
    in violation of the NESHAP. New major sources are required to comply 
    with the NESHAP requirements upon start-up or the promulgation date, 
    whichever is later. All sources that are major sources for HAP on the 
    compliance date are required to comply permanently with the NESHAP to 
    ensure that the maximum achievable reductions in toxic emissions are 
    achieved and maintained. All major sources for HAP on the ``compliance 
    date'' are required to comply permanently with the NESHAP to ensure 
    that the maximum achievable reductions in toxic emissions are achieved 
    and maintained.
        The final standards impose limits on the VOHAP content of 23 types 
    of coatings used at shipyards. Compliance with the VOHAP limits must be 
    demonstrated on a monthly basis. The promulgated standards include four 
    compliance options to allow owners or operators flexibility in 
    demonstrating compliance with the VOHAP limits. The final standards 
    also allow for an alternative means of compliance other than using 
    compliant coatings, if approved by the Administrator. The Administrator 
    shall approve the alternative means of limiting emissions if, in the 
    Administrator's judgment, 
    
    [[Page 64332]]
    (after control) emissions of VOHAP per volume solids applied will be no 
    greater than those from the use of coatings that comply with the 
    applicable VOHAP limits.
        The final standards also require that all handling and transfer of 
    VOHAP containing materials to and from containers, tanks, vats, 
    vessels, and piping systems be conducted in a manner that minimizes 
    spills and other factors leading to emissions. (This requirement 
    includes hand- or brush-application of coatings.) In addition, 
    containers of thinning solvent or waste that hold any VOHAP must be 
    normally closed (to minimize evaporation) unless materials are being 
    added to or removed from them.
        Owners or operators of existing shipbuilding and ship repair 
    (surface coating) operations subject to the requirements promulgated 
    under Section 112(d) of the CAA are required to comply with the 
    standards within 1 year from December 15, 1995. Owners or operators of 
    new shipbuilding and ship repair (surface coating) operations with 
    initial startup before or after December 15, 1996 are required to 
    comply with all requirements of the standards upon startup. The first 
    requirement is the initial notification due 6 months before start up.
    
    III. Summary of Impacts
    
        These standards will reduce nationwide emissions of HAP from 
    shipbuilding and ship repair (surface coating) operations by 
    approximately 318.5 Mg (350 tons) in 1997 compared to the emissions 
    that would result in the absence of the standards. These standards will 
    also reduce volatile organic compounds (VOC) emissions from those same 
    shipbuilding and ship repair (surface coating) operations by 
    approximately 837 Mg (920 tons) in 1997 compared to the emissions that 
    would result in the absence of the standards. No significant adverse 
    secondary air, water, solid waste, or energy impacts are anticipated 
    from the promulgation of these standards.
        Implementation of this regulation is expected to result in 
    nationwide annualized costs for existing shipyards of about $2 million 
    beyond baseline. This estimation is based on an analysis of the 
    application of VOHAP limits on marine coatings at all existing major 
    source facilities not currently controlled to the level of the 
    standards.
        The economic impact analysis conducted prior to proposal showed 
    that the economic impacts from the proposed standard would be 
    insignificant. An update of the economic impact analysis (due to 
    revisions to the final rule) indicates that the original conclusion 
    still holds true. Implementation of the rule is not expected to cause 
    significant economic impacts for the 35 major source facilities in this 
    industry.
    
    IV. Significant Changes to the Proposed Standards
    
    A. Public Participation
    
        The standards were proposed and the preamble was published in the 
    Federal Register on December 6, 1994 (59 FR 62681). The preamble to the 
    proposed standards discussed the availability of the regulatory text 
    and proposal BID, which described the regulatory alternatives 
    considered and the impacts of those alternatives. Public comments were 
    solicited at the time of proposal, and copies of the regulatory text 
    and BID were distributed to interested parties. Electronic versions of 
    the preamble, regulation, and BID were made available to interested 
    parties via the TTN (see SUPPLEMENTARY INFORMATION section of this 
    preamble).
        To provide interested persons the opportunity for oral presentation 
    of data, views, or arguments concerning the proposed standards, a 
    public hearing was held on January 18, 1995 in Research Triangle Park, 
    North Carolina. The public comment period was from December 6, 1994 to 
    February 17, 1995. In all, 22 comment letters were received (including 
    one duplicate). The comments have been carefully considered, and 
    changes have been made to the proposed standards when determined by the 
    Administrator to be appropriate.
    
    B. Comments on the Proposed Standards
    
        Comments on the proposed standards were received from 22 
    commenters; the commenters were comprised mainly of States, shipyard 
    owners or operators, marine coating manufacturers, environmental 
    groups, and trade associations. A detailed discussion of these comments 
    and responses can be found in the promulgation BID, which is referred 
    to in the ADDRESSES section of this preamble. The summary of comments 
    and responses in the BID serve as the basis for the revisions that have 
    been made to the standards between proposal and promulgation. (Some 
    additional changes have been made to clarify the standards and improve 
    their organization.) Most of the comment letters contained multiple 
    comments. For summary purposes, the comments were grouped into several 
    topic areas.
    
    C. Significant Comments/Changes
    
        Several changes have been made since the proposal of these 
    standards. The majority of the changes have been made to clarify 
    portions of the rule that were unclear to the commenters. A summary of 
    the major comments and changes is presented below.
    (1) Applicability to Coating Manufacturers
        Several commenters asked the EPA to regulate the manufacture and 
    sale of marine coatings rather than the end users (shipyards). While 
    this approach has some obvious advantages, the EPA does not have 
    authority to regulate (with this NESHAP) the manufacture and sale of 
    coatings under Section 112(d). The EPA plans to address requirements 
    for coating manufacturers under Section 183(e) of the CAA by March 1997 
    through either a national rule or a control techniques guidelines 
    (CTG).
    (2) Number of Major Sources/MACT Floor
        Some commenters thought the EPA underestimated the number of major 
    source shipyards, and thereby erred in the MACT floor determination. 
    Although the EPA based the proposed number of major sources on the best 
    available information at the time, there has been recent additional 
    information provided by the Louisiana Department of Environmental 
    Quality (Louisiana having more shipyards than any other State) showing 
    there are four other shipyards with HAP emissions greater than the 
    major source cutoffs. At the same time, however, the same additional 
    information indicated that one of the shipyards identified in the 
    original list of 25 has HAP emissions well below the major source 
    cutoffs (based on recent operating permit data).
        This information along with other State permit data on annual paint 
    usage and VOC/VOHAP emissions indicates that there are 35 major 
    sources, instead of the estimated 25 discussed in the proposal 
    preamble. Even though 10 additional major sources have been identified, 
    the MACT floor would not change. At proposal, the EPA based the MACT 
    floor on the control achieved by the best-performing 5 sources, as 
    required by Section 112 (d)(3) of the CAA when there are less than 30 
    sources in the category. If there are 35 sources in the category, the 
    MACT floor would be based on the best-performing 4.2 sources (12 
    percent of the 35) as required by Section 112 (d)(3). Under both 
    situations, the MACT floor is the same.
        Another point to be considered is that even if there are 45 major 
    source 
    
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    shipyards, the best 12 percent is still represented by the best 0.12 
    x  45 = 5.4 or best 5 yards. Both the MACT floor and the associated 
    marine coating VOHAP limits would be identical. Since the NESHAP 
    proposal date, the Navy has adopted VOC limits identical to (or more 
    stringent than) the 1992 California limits for all Naval shipyards and 
    Navy-related work. Since at least two of the Naval shipyards qualify as 
    major sources, if the MACT floor were to be recalculated today, the 
    limits would be identical to the proposed (and promulgated) limits, 
    regardless of the approach used to determine the mean or median level 
    of control. The Louisiana limits, which are less stringent for the 
    major use categories of coatings, would not enter into any of the floor 
    calculations.
        Recent indications from the Navy and other industry representatives 
    reveal that fewer affected sources exist today because of base closings 
    and consolidation efforts. The original estimation of 25 major source 
    shipyards was based on annual paint and solvent usage, type of work 
    conducted (new construction versus repair), number of employees, and 
    type (size) of vessels serviced. The (weighted) average HAP 
    concentration of all marine coatings is an integral part of emissions 
    estimates and determining if a shipyard qualifies as a major source 
    facility. Other HAP-emitting processes at most shipyards such as 
    welding, metal forming/cutting, and abrasive blasting exist, but the 
    vast majority of HAP emissions come from organic solvents used in 
    marine paints and solvents used for thinning and cleaning.
    (3) Elimination of Compliance Option 1
        Proposed compliance option 1 required that each and every container 
    of coating be tested or certified prior to application. Based on 
    comments pertaining to its impracticality and the unrealistic costs 
    associated with testing/certifying every container of coating, 
    compliance option 1 was eliminated from the final rule. The flow 
    diagram (included as Figure 1 in the regulation) summarizing the 
    various compliance options was similarly revised and simplified.
    (4) Training Requirements
        In the proposed rule, the EPA required training and certification 
    for all personnel involved with paints and/or solvents. There were 
    several comments regarding the inappropriate amount and level of detail 
    involved with the training and annual personnel certifications. Some 
    commenters indicated that there was a high turnover rate involving 
    personnel, and the proposed training requirements would impose a 
    significant impact for very little reduction in HAP emissions. The EPA 
    has determined that it is appropriate to leave the details of training 
    to the individual shipyards who can best define the real needs of their 
    specific locations and applications. Affected sources are responsible 
    for complying with the standards, and it is in their own best interest 
    to ensure that workers are aware of the associated requirements. 
    Therefore, all training requirements related to painting/thinning, 
    handling/transfer of VOHAP-containing materials, and certification of 
    all personnel involved with surface coating operations have been 
    eliminated from the final rule.
    (5) Definition of Pleasure Craft
        A definition of pleasure craft has been added to ensure that the 
    standards apply only to those coatings (and solvents) used on 
    commercial and military vessels. Some commenters were concerned that, 
    as proposed, the rule could be interpreted to regulate coatings used on 
    pleasure crafts. Other commenters suggested that pleasure crafts should 
    be included. The EPA did not intend to include coatings used on 
    pleasure crafts in these standards. Such coatings (applications) will 
    be considered under the development of the Boat Manufacturing NESHAP.
    (6) Definition of Affected Source
        The definition of affected source was modified to ensure that the 
    requirements of the standards apply only to those sources (major source 
    shipyards) with a minimum annual marine coating usage of 1,000 L (264.2 
    gal). The primary focus of this NESHAP is surface coating operations 
    and this clarification will minimize/eliminate the impact on shipyards 
    with minimal surface coating emissions.
    (7) Reporting and Notification Changes
        Changes have also been made to the notification and reporting 
    schedules. The initial notification deadline has been extended from 120 
    to 180 days. The frequency of reporting has also been reduced from the 
    proposed quarterly requirement to semiannual. This change was made to 
    allow shipyards to be consistent with current/upcoming Title V permit 
    requirements. The first compliance certification report is due 6 months 
    after the compliance date.
    (8) Exemptions
        Several commenters recommended that the EPA adopt some of the 
    exemptions provided in various State regulations. Since the MACT floor 
    was based on three shipyards located in California and those yards have 
    exemptions similar to those requested, the EPA determined there would 
    be no significant impact and adopted the following exemptions:
        a. Any individual coating with annual usage less than 200 liters 
    (52.8 gallons) is exempt from the requirements of the standards (i.e., 
    the applicable VOHAP limit). The total amount of all coatings exempted 
    in any given year cannot exceed 1,000 liters (264.2 gallons); and
        b. Any coating applied via nonrefillable hand-held aerosol cans is 
    exempt from the requirements of the standards.
    (9) Revision of Equations
        The equations used with compliance options 2 and 3 (proposed 
    options 3 and 4) have been changed so that calculations are based on 
    volume solids. The revised equations require the VOHAP limits based on 
    volume solids be used in place of the VOHAP limits based on volume of 
    coating less water and non-HAP exempt solvents. This change was made to 
    provide a uniform basis for calculating emission reductions (i.e., 
    associated with thinning additions or add-on control devices).
    (10) Weather-related VOHAP limits
        The proposal preamble requested comments on how to handle thinning 
    issues for various climatic conditions. The EPA reviewed the comments 
    and collected additional information on both cold-and hot/humid-weather 
    thinning practices. As a result of this information, cold-weather VOHAP 
    limits are included as part of the final rule. If the temperature is 
    below 4.5 deg.C (40 deg.F) at the time the coating is applied and the 
    source needs to thin that coating beyond the applicable VOHAP limit, 
    the date, time, and temperature (including units) must be documented, 
    and the applicable cold-weather VOHAP limit may be used. The cold-
    weather VOHAP limits on a solids basis were increased equivalently, but 
    the actual values vary for each coating category. The cold-weather 
    VOHAP limits are applicable only to as-supplied coatings that are 
    greater than 40 percent solids by volume.
        With regards to hot/humid weather conditions, the data and 
    responses to Section 114 information requests sent by EPA to nine 
    shipyards and other information received did not provide a basis for 
    including a humid weather thinning allowance. Respondents identified 
    meteorological conditions under which coatings must be thinned 
    
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    or not applied at all. Only one shipyard, which uses large quantities 
    of water-based preconstruction primer, maintained that a humid weather 
    thinning allowance should be adopted. However, the shipyard did not 
    explain how hydrocarbon-based thinners would relate to its water-based 
    operation.
        Hot and humid weather conditions appear to inhibit coating 
    operations work less frequently than does cold weather. The different 
    responses can best be understood as they relate to the specifications 
    for thinning under different climatic conditions, which are dependent 
    on paint type and manufacturer. Some coating formulations lose at high 
    temperature more organic solvent than others which could lead to 
    thickening (increase in viscosity) of the paint. This occurs where the 
    rate of application is low and paint containers remain uncovered. 
    Nevertheless, beginning in September 1994, shipyards performing work 
    for the Navy in humid climates such as Louisiana, Florida, and Virginia 
    are required by the Navy to use paints with VOHAP contents levels that 
    are in compliance with the limits in the NESHAP, without provision for 
    additional thinning. There is no reason that VOHAP limits that are 
    achievable for paints used by the Navy cannot also be achieved for 
    paints used by commercial shipyards located in humid climates and that, 
    therefore, a thinning allowance for hot/humid weather conditions is not 
    necessary. If conditions necessitate application of small amount of 
    noncompliant coatings, the regulation provides a low usage exemption of 
    1,000 liters of coating per year.
    
    D. Minor Changes
    
        This section contains a list of several of the minor changes to the 
    final rule. A discussion of these changes can be found in the 
    promulgation BID. (See ADDRESSES section of this preamble.)
        (1) Revisions to definitions and phrasing have been made to clarify 
    the regulation.
        (2) Based on comments received and on changes to the notification 
    and recordkeeping and reporting requirements, those sections of the 
    standard have been reorganized and overlapping requirements clarified 
    or eliminated.
        (3) Table 2, which contains the VOHAP limits for the various 
    coating categories, has been simplified to contain only one set of 
    units (metric). The conversion factor for English units is included as 
    a footnote to the table.
    
    V. Control Techniques Guidelines (CTG)
    
        Section 183(b)(4) of the CAA requires the Administrator to issue a 
    CTG document for limiting VOC and particulate matter emissions from 
    coatings (paints) and solvents used in the shipbuilding and ship repair 
    industry. Since VOHAP emissions from this industry are generally a 
    subset of VOC emissions, the control techniques evaluated for the MACT 
    standard are also applicable to VOC emissions. Therefore, the EPA has 
    developed the CTG concurrently with the NESHAP and will be issuing 
    final guidance under a separate notice. As explained in the proposal 
    notice (AD-FR-    ), no CTG is being issued for particulate matter 
    emissions.
    
    VI. Administrative Requirements
    
    A. Docket
    
        The Docket is an organized and complete file of all the information 
    considered by the EPA in the development of this rulemaking. The Docket 
    is a dynamic file, since material is added throughout the rulemaking 
    development. The docketing system is intended to allow members of the 
    public and industries involved to readily identify and locate documents 
    so that they can effectively participate in the rulemaking process. 
    Along with the statement of basis and purpose of the proposed and 
    promulgated standards and the EPA responses to significant comments, 
    the contents of the Docket will serve as the record in case of judicial 
    review [see 42 U.S.C. 7607(d)(7)(A)].
    
    B. Paperwork Reduction Act
    
        The Office of Management and Budget (OMB) is currently reviewing 
    the information collection request (ICR) requirements contained in this 
    rule under the provisions of the Paperwork Reduction Act, 44 U.S.C. 
    3501 et seq. and has assigned OMB control number 2060-0330 and EPA ICR 
    number 1712.2.
        The information required to be collected by this rule is needed as 
    part of the overall compliance and enforcement program. It is necessary 
    to identify the regulated entities who are subject to the rule and to 
    ensure their compliance with the rule. The recordkeeping and reporting 
    requirements are mandatory and are being established under authority of 
    Section 114 of the Act. All information submitted to the EPA for which 
    a claim of confidentiality is made will be safeguarded according to the 
    EPA policies set forth in Title 40, Chapter 1, Part 2, Subpart B--
    Confidentiality of Information (see 40 CFR part 2; 41 FR 36902, 
    September 1, 1976; amended by 43 FR 39999, September 8, 1978; 43 FR 
    42251, September 28, 1978; 44 FR 17674, March 23, 1979).
        The total annual reporting and recordkeeping burden for this 
    collection averaged over the first 3 years is estimated to be $26,218 
    per year. The average burden, per respondent, is 772 hours per year. 
    This estimate includes the time needed to review instructions; develop, 
    acquire, install, and utilize technology and systems for the purposes 
    of collecting, validating, and verifying information, processing and 
    maintaining information, and disclosing and providing information; 
    adjust the existing ways to comply with any previously applicable 
    instructions and requirements; train personnel to be able to respond to 
    a collection of information; search data sources; complete and review 
    the collection of information; and transmit or otherwise disclose the 
    information. The total time, effort, or financial resources expended by 
    persons to generate, maintain, retain, or disclose or provide 
    information to or for a Federal agency. This includes the time needed 
    to review instructions; develop, acquire, install, and utilize 
    technology and systems for the purposes of collecting, validating, and 
    verifying information, processing and maintaining information, and 
    disclosing and providing information; adjust the existing ways to 
    comply with any previously applicable instructions and requirements; 
    train personnel to be able to respond to a collection of information; 
    search data sources; complete and review the collection of information; 
    and transmit or otherwise disclose the information. The rule requires 
    an initial one-time notification from each respondent and subsequent 
    notification every 6 months to indicate their compliance status. At the 
    time of the initial notification each respondent would also be required 
    to submit an implementation plan that describes compliance procedures. 
    A respondent would also be required to keep necessary records of data 
    to determine compliance with the standards in the regulation. The data 
    would be recorded monthly. A report would need to be submitted semi-
    annually by each respondent. There would be an estimated 35 respondents 
    to the proposed collection requirements.
        Send comments on the EPA's need for this information, the accuracy 
    of the provided burden estimates, and any suggested methods for 
    minimizing respondent burden, including through the use of automated 
    collection techniques to the Director, OPPE 
    
    [[Page 64335]]
    Regulatory Information Division; U. S. Environmental Protection Agency 
    (2136); 401 M Street SW.; Washington, DC 20460; and to the Office of 
    Information and Regulatory Affairs, Office of Management and Budget, 
    725 17th Street NW.; Washington, DC 20503; marked ``Attention: Desk 
    Officer for EPA.'' Include the OMB number and the EPA ICR number in any 
    correspondence.
    
    C. Executive Order 12866: Administrative Designation and Regulatory 
    Analysis
    
        Under Executive Order 12866 [58 FR 51735 (October 4, 1993)], the 
    EPA is required to judge whether a regulation is ``significant'' and 
    therefore subject to OMB review and the requirements of this Executive 
    Order to prepare a regulatory impact analysis (RIA). The Order defines 
    ``significant regulatory action'' as one that is likely to result in a 
    rule that may (1) have an annual effect on the economy of $100 million 
    or more or adversely affect in a material way the economy, a sector of 
    the economy, productivity, competition, jobs, the environment, public 
    health or safety, or State, local, or tribal governments or 
    communities; (2) create a serious inconsistency or otherwise interfere 
    with an action taken or planned by another agency; (3) materially alter 
    the budgetary impact of entitlements, grants, user fees, or loan 
    programs, or the rights and obligation of recipients thereof; or (4) 
    raise novel legal or policy issues arising out of legal mandates, the 
    President's priorities, or the principles set forth in the Executive 
    Order.
        Pursuant to the terms of Executive Order 12866, it has been 
    determined that this rule is not a ``significant regulatory action'' 
    and is therefore not subject to OMB review.
    
    D. Executive Order 12875
    
        To reduce the burden of federal regulations on States and small 
    governments, the President issued Executive Order 12875 on October 26, 
    1993, entitled Enhancing the Intergovernmental Partnership. In 
    particular, this executive order is designed to require agencies to 
    assess the effects of regulations that are not required by statute and 
    that create mandates upon State, local, or tribal governments. Two 
    methods exist for complying with the requirements of the executive 
    order: (1) Assure that funds necessary to pay direct costs of 
    compliance with a regulation are provided, or (2) provide OMB a 
    description of the communications and consultations with State/local/
    tribal governments, the nature of their concerns, any written 
    submission from them, and the EPA's position supporting the need to 
    issue the regulation.
        The EPA has always been concerned about the effect of the cost of 
    regulations on small entities; the EPA has consulted with and sought 
    input from public entities to explain costs and burdens they may incur.
        The EPA advised interested parties on July 16, 1992 (57 FR 21592), 
    of the categories considered as major and area sources of HAP, and 
    shipbuilding and ship repair (surface coating) industry was listed as a 
    category of both major and area sources. The EPA made significant 
    effort to hear from all levels of interest and all segments of the 
    shipbuilding and ship repair industry. To facilitate comments and 
    input, the EPA conducted comprehensive mailouts of draft and proposal 
    package materials in 1993 and 1994 to shipyards, Department of the Navy 
    (Naval Sea Systems Command), marine coating manufacturers, and State 
    and local government officials. All were given opportunity to comment 
    on the presented regulatory development activities of the standard. 
    Throughout the regulatory development process and more specifically in 
    consultation meetings, industry representatives from commercial/private 
    shipyards, the U.S. Navy, and various trade associations were given an 
    opportunity to comment on the proposed regulatory approach and the MACT 
    alternatives being developed. The major topic areas resulting from 
    these discussions included the need for cold-weather thinning limits, 
    flexibility in compliance approaches, and the need for additional data 
    regarding certain coating categories (i.e., inorganic zincs). Some of 
    these meetings were held at EPA, while others were conducted at 
    shipyard locations. In addition, individual consultations were 
    conducted with three local (air quality management) districts in 
    California regarding the use of the mass of VOHAP/volume of solids for 
    determining compliance when the coating is thinned.
        The EPA addressed many of the suggestions and comments received 
    from State and local agencies during the public comment period, many of 
    which will reduce the impact to small businesses. Some of these 
    suggestions resulted in changes to the rule, including modification of 
    the definition of pleasure craft to clarify that the standards apply 
    only to coatings (and solvents) used on commercial and military vessels 
    and not to boats in non-military shipyards less than 20 meters in 
    length; modification of the definition of affected source to ensure 
    that the requirements of the standards apply only to those sources 
    (major source shipyards) with a minimum annual marine coating usage of 
    1,000 Liters (264.2 gallons); exemption of any individual coating with 
    annual usage less than 200 liters (52.8 gallons) (i.e., the applicable 
    VOHAP limit); exemption of any coating applied via nonrefillable hand-
    held aerosol cans; making the equations used to determine thinning 
    allowance the same for all options to provide a uniform basis for 
    calculating emission reductions (i.e., associated with thinning 
    additions or add-on control devices); extension of the initial 
    notification deadline from 120 to 180 days and reduction of the 
    frequency of reporting from the proposed quarterly requirement to 
    semiannual, which allows shipyards to be consistent with current/
    upcoming Title V permit requirements; reorganization and clarification 
    of the notification and recordkeeping and reporting requirement, 
    including revision of the definitions and phrasing to ensure that the 
    terminology is understandable; and the addition of 10 major sources 
    based on data provided by Louisiana and Texas State agencies.
        Some of the other major concerns that were noted in the State and/
    or local agency comments and that were considered by the EPA in 
    developing the proposed and final rule involved realistic work practice 
    standards, multiple compliance options to provide flexibility for 
    shipyard owners/operators and State regulators, and streamlining (or 
    eliminating) any overlapping recordkeeping and reporting requirements. 
    Documentation of all meetings and public comments can be found in 
    Docket A-92-11.
        The EPA has considered the purpose and intent of Executive Order 
    12875 and has determined that shipbuilding and ship repair facility 
    NESHAP are needed. The rule is generally required by statute under 
    Section 112 of the CAA because shipbuilding and ship repair facilities 
    emit significant quantities of air pollutants. Through meetings and 
    consultations during project development and proposal, efforts were 
    made to inform entities of the costs required to comply with the 
    regulation; in addition, modifications were made to reduce the burden 
    to small entities.
    
    E. Regulatory Flexibility Act
    
        The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the 
    EPA to consider potential impacts of proposed regulations on small 
    business ``entities.'' If a preliminary analysis indicates that a 
    proposed regulation would have a 
    
    [[Page 64336]]
    significant economic impact on 20 percent or more of small entities, 
    then a regulatory flexibility analysis must be prepared. The EPA's 
    analysis of these impacts was provided in the preamble to the proposed 
    rule (59 FR 62681) and no negative impacts for small businesses will 
    result from the changes incorporated into the final rule.
        Pursuant to the provisions of 5 U.S.C. 605(b), I hereby certify 
    that this rule will not have a significant economic impact on a 
    substantial number of small business entities.
    
    F. Unfunded Mandates Act of 1995
    
        Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
    Law 104-4, establishes requirements for Federal agencies to assess the 
    effects of their regulatory actions on State, local, and tribal 
    governments and the private sector. Under Section 202 of the UMRA, the 
    EPA generally must prepare a written statement including a cost-benefit 
    analysis, for proposed and final rules with ``Federal mandates'' that 
    may result in expenditures to State, local, and tribal governments, in 
    the aggregate, or to the private sector, of $100 million or more in any 
    1 year. Before promulgating an EPA rule for which a written statement 
    is needed, Section 205 of the UMRA generally requires EPA to identify 
    and consider a reasonable number of regulatory alternatives and adopt 
    the least costly, most cost-effective or least burdensome alternative 
    that achieves the objectives of the rule. The provisions of Section 205 
    do not apply when they are inconsistent with applicable law. Moreover, 
    Section 205 allows EPA to adopt an alternative other than the least 
    costly, most cost-effective or least burdensome alternative if the 
    Administrator publishes with the final rule an explanation why that 
    alternative was not adopted. Before EPA establishes any regulatory 
    requirements that may significantly or uniquely affect small 
    governments, including tribal governments, it must have developed under 
    Section 203 of the UMRA a small government agency plan. The plan must 
    provide for notifying potentially affected small governments, enabling 
    officials of affected small governments to have meaningful and timely 
    input in the development of EPA regulatory proposals with significant 
    Federal intergovernmental mandates and informing, educating, and 
    advising small governments on compliance with the regulatory 
    requirements.
        The EPA has determined that the action promulgated today does not 
    include a Federal mandate that may result in estimated costs of $100 
    million or more to either State, local, or tribal governments in the 
    aggregate, or to the private sector. Therefore, the requirements of the 
    Unfunded Mandates Act do not apply to this action.
    
    List of Subjects in 40 CFR Part 63
    
        Environmental protection, Air pollution control, Incorporation by 
    reference, Marine coating limits, Reporting and recordkeeping 
    requirements, Shipbuilding and ship repair standards.
    
        Dated: November 14, 1995.
    Carol M. Browner,
    Administrator.
    
        For the reasons set out in the preamble, title 40, chapter I, part 
    63 of the Code of Federal Regulations is amended as follows:
    
    PART 63--NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS 
    FOR SHIPBUILDING AND SHIP REPAIR (SURFACE COATING)
    
        1. The authority citation for part 63 continues to read as follows:
    
        Authority: Sections 101, 112, 114, 116, and 301 of the Clean Air 
    Act (42 U.S.C. 7401 et seq., as amended by Pub. L. 101-549, 104 
    Stat. 2399).
    
        2. Section 63.14 is amended by adding paragraph (b)(4) through 
    (b)(14) to read as follows:
    
    
    Sec. 63.14  Incorporation by reference.
    
    * * * * *
        (b) * * *
        (4) ASTM D523-89, Standard Test Method for Specular Gloss, IBR 
    approved for Sec. 63.782.
        (5) ASTM D1475-90, Standard Test Method for Density of Paint, 
    Varnish, Lacquer, and Related Products, IBR approved for Sec. 63.788 
    appendix A.
        (6) ASTM D2369-93, Standard Test Method for Volatile Content of 
    Coatings, IBR approved for Sec. 63.788 appendix A.
        (7) ASTM D3912-80, Standard Test Method for Chemical Resistance of 
    Coatings Used in Light-Water Nuclear Power Plants, IBR approved for 
    Sec. 63.782.
        (8) ASTM D4017-90, Standard Test Method for Water and Paints and 
    Paint Materials by Karl Fischer Method, IBR approved for Sec. 63.788 
    appendix A.
        (9) ASTM D4082-89, Standard Test Method for Effects of Gamma 
    Radiation on Coatings for Use in Light-Water Nuclear Power Plants, IBR 
    approved for Sec. 63.782.
        (10) ASTM D4256-89 [reapproved 1994], Standard Test Method for 
    Determination of the Decontaminability of Coatings Used in Light-Water 
    Nuclear Power Plants, IBR approved for Sec. 63.782.
        (11) ASTM D3792-91, Standard Test Method for Water Content of 
    Water-Reducible Paints by Direct Injection into a Gas Chromatograph, 
    IBR approved for Sec. 63.788 appendix A.
        (12) ASTM D3257-93, Standard Test Methods for Aromatics in Mineral 
    Spirits by Gas Chromatography, IBR approved for Sec. 63.786(b).
        (13) ASTM E260-91, Standard Practice for Packed Column Gas 
    Chromatography, IBR approved for Sec. 63.786(b).
        (14) ASTM E180-93, Standard Practice for Determining the Precision 
    of ASTM Methods for Analysis and Testing of Industrial Chemicals, IBR 
    approved for Sec. 63.786(b).
        3. Part 63 is amended by adding subpart II to read as follows:
    
    Subpart II--National Emission Standards for Shipbuilding and Ship 
    Repair (Surface Coating)
    
    Secs.
    63.780  Relationship of subpart II to subpart A of this part.
    63.781  Applicability.
    63.782  Definitions.
    63.783  Standards.
    63.784  Compliance dates.
    63.785  Compliance procedures.
    63.786  Test methods and procedures.
    63.787  Notification requirements.
    63.788  Recordkeeping and reporting requirements.
    
    Table 1 to Subpart II of Part 63--General Provisions of 
    Applicability to Subpart II
    Table 2 to Subpart II of Part 63--Volatile Organic HAP (VOHAP) 
    Limits for Marine Coatings
    Table 3 to Subpart II of Part 63--Summary of Recordkeeping and 
    Reporting Requirements
    Appendix A to Subpart II of Part 63--VOC Data Sheet
    Appendix B to Subpart II of Part 63--Maximum Allowable Thinning 
    Rates As a Function of As Supplied VOC Content and Thinner Density
    
    Subpart II--National Emission Standards for Shipbuilding and Ship 
    Repair (Surface Coating)
    
    
    Sec. 63.780  Relationship of subpart II to subpart A of this part.
    
        Table 1 of this subpart specifies the provisions of subpart A of 
    this part that apply to owners and operators of sources subject to the 
    provisions of this subpart.
    
    
    Sec. 63.781  Applicability.
    
        (a) The provisions of this subpart apply to shipbuilding and ship 
    repair operations at any facility that is a major source.
        (b) The provisions of this subpart do not apply to coatings used in 
    volumes of less than 200 liters (52.8 gallons) per 
    
    [[Page 64337]]
    year, provided the total volume of coating exempt under this paragraph 
    does not exceed 1,000 liters per year (264 gallons per year) at any 
    facility. Coatings exempt under this paragraph shall be clearly labeled 
    as ``low-usage exempt,'' and the volume of each such coating applied 
    shall be maintained in the facility's records.
        (c) The provisions of this subpart do not apply to coatings applied 
    with hand-held, nonrefillable, aerosol containers or to unsaturated 
    polyester resin (i.e., fiberglass lay-up) coatings. Coatings applied to 
    suitably prepared fiberglass surfaces for protective or decorative 
    purposes are subject to this subpart.
        (d) The provisions in subpart A of this part pertaining to 
    startups, shutdowns, and malfunctions and continuous monitoring do not 
    apply to this source category unless an add-on control system is used 
    to comply with this subpart in accordance with Sec. 63.783(c).
    
    
    Sec. 63.782  Definitions.
    
        Terms used in this subpart are defined in the Clean Air Act (CAA), 
    in subpart A of part 63, or in this section as follows:
        Add-on control system means an air pollution control device such as 
    a carbon absorber or incinerator that reduces pollution in an air 
    stream by destruction or removal prior to discharge to the atmosphere.
        Affected source means any shipbuilding or ship repair facility 
    having surface coating operations with a minimum 1,000 liters (L) (264 
    gallons [gal]) annual marine coating usage that is subject to this 
    subpart.
        Air flask specialty coating means any special composition coating 
    applied to interior surfaces of high pressure breathing air flasks to 
    provide corrosion resistance and that is certified safe for use with 
    breathing air supplies.
        Antenna specialty coating means any coating applied to equipment 
    through which electromagnetic signals must pass for reception or 
    transmission.
        Antifoulant specialty coating means any coating that is applied to 
    the underwater portion of a vessel to prevent or reduce the attachment 
    of biological organisms and that is registered with the EPA as a 
    pesticide under the Federal Insecticide, Fungicide, and Rodenticide 
    Act.
        As applied means the condition of a coating at the time of 
    application to the substrate, including any thinning solvent.
        As supplied means the condition of a coating before any thinning, 
    as sold and delivered by the coating manufacturer to the user.
        Batch means the product of an individual production run of a 
    coating manufacturer's process. A batch may vary in composition from 
    other batches of the same product.
        Bitumens mean black or brown materials that are soluble in carbon 
    disulfide and consist mainly of hydrocarbons.
        Bituminous resin coating means any coating that incorporates 
    bitumens as a principal component and is formulated primarily to be 
    applied to a substrate or surface to resist ultraviolet radiation and/
    or water.
        Certify means, in reference to the volatile organic compounds (VOC) 
    content or volatile organic hazardous air pollutants (VOHAP) content of 
    a coating, to attest to the VOC content as determined through analysis 
    by Method 24 of appendix A to 40 CFR part 60 or through use of forms 
    and procedures outlined in appendix A of this subpart, or to attest to 
    the VOHAP content as determined through an Administrator-approved test 
    method. In the case of conflicting results, Method 24 of Appendix A to 
    40 CFR part 60 shall take precedence over the forms and procedures 
    outlined in appendix A to this subpart for the options in which VOC is 
    used as a surrogate for VOHAP.
        Coating means any material that can be applied as a thin layer to a 
    substrate and which cures to form a continuous solid film.
        Cold-weather time period means any time during which the ambient 
    temperature is below 4.5 deg.C (40 deg.F) and coating is to be applied.
        Container of coating means the container from which the coating is 
    applied, including but not limited to a bucket or pot.
        Cure volatiles means reaction products which are emitted during the 
    chemical reaction which takes place in some coating films at the cure 
    temperature. These emissions are other than those from the solvents in 
    the coating and may, in some cases, comprise a significant portion of 
    total VOC and/or VOHAP emissions.
        Epoxy means any thermoset coating formed by reaction of an epoxy 
    resin (i.e., a resin containing a reactive epoxide with a curing 
    agent).
        Exempt compounds means specified organic compounds that are not 
    considered VOC due to negligible photochemical reactivity. Exempt 
    compounds are specified in 40 CFR 51.100(s).
        Facility means all contiguous or adjoining property that is under 
    common ownership or control, including properties that are separated 
    only by a road or other public right-of-way.
        General use coating means any coating that is not a specialty 
    coating.
        Hazardous air pollutants (HAP) means any air pollutant listed in or 
    pursuant to section 112(b) of the CAA.
        Heat resistant specialty coating means any coating that during 
    normal use must withstand a temperature of at least 204 deg.C 
    (400 deg.F).
        High-gloss specialty coating means any coating that achieves at 
    least 85 percent reflectance on a 60 degree meter when tested by ASTM 
    Method D523 (incorporation by reference--see Sec. 63.14).
        High-temperature specialty coating means any coating that during 
    normal use must withstand a temperature of at least 426 deg.C 
    (800 deg.F).
        Inorganic zinc (high-build) specialty coating means a coating that 
    contains 960 grams per liter (8 pounds per gallon) or more elemental 
    zinc incorporated into an inorganic silicate binder that is applied to 
    steel to provide galvanic corrosion resistance. (These coatings are 
    typically applied at more than 2 mil dry film thickness.)
        Major source means any source that emits or has the potential to 
    emit, in the aggregate, 9.1 megagrams per year (10 tons per year) or 
    more of any HAP or 22.7 megagrams per year (25 tons per year) or more 
    of any combination of HAP.
        Maximum allowable thinning ratio means the maximum volume of 
    thinner that can be added per volume of coating without violating the 
    standards of Sec. 63.783(a), as determined using Equation 1 of this 
    subpart.
        Military exterior specialty coating or Chemical Agent Resistant 
    Coatings (``CARC'') means any exterior topcoat applied to military or 
    U.S. Coast Guard vessels that are subject to specific chemical, 
    biological, and radiological washdown requirements.
        Mist specialty coating means any low viscosity, thin film, epoxy 
    coating applied to an inorganic zinc primer that penetrates the porous 
    zinc primer and allows the occluded air to escape through the paint 
    film prior to curing.
        Navigational aids specialty coating means any coating applied to 
    Coast Guard buoys or other Coast Guard waterway markers when they are 
    recoated aboard ship at their usage site and immediately returned to 
    the water.
        Nonskid specialty coating means any coating applied to the 
    horizontal surfaces of a marine vessel for the specific purpose of 
    providing slip resistance for personnel, vehicles, or aircraft. 
    
    [[Page 64338]]
    
        Nonvolatiles (or volume solids) means substances that do not 
    evaporate readily. This term refers to the film-forming material of a 
    coating.
        Normally closed means a container or piping system is closed unless 
    an operator is actively engaged in adding or removing material.
        Nuclear specialty coating means any protective coating used to seal 
    porous surfaces such as steel (or concrete) that otherwise would be 
    subject to intrusion by radioactive materials. These coatings must be 
    resistant to long-term (service life) cumulative radiation exposure 
    (ASTM D4082-89 [incorporation by reference--see Sec. 63.14]), 
    relatively easy to decontaminate (ASTM D4256-89 [reapproved 1994] 
    [incorporation by reference--see Sec. 63.14]), and resistant to various 
    chemicals to which the coatings are likely to be exposed (ASTM D3912-80 
    [incorporation by reference--see Sec. 63.14]). [For nuclear coatings, 
    see the general protective requirements outlined by the U.S. Nuclear 
    Regulatory Commission in a report entitled ``U.S. Atomic Energy 
    Commission Regulatory Guide 1.54'' dated June 1973, available through 
    the Government Printing Office at (202) 512-2249 as document number 
    A74062-00001.]
        Operating parameter value means a minimum or maximum value 
    established for a control device or process parameter that, if achieved 
    by itself or in combination with one or more other operating parameter 
    values, determines that an owner or operator has complied with an 
    applicable emission limitation or standard.
        Organic zinc specialty coating means any coating derived from zinc 
    dust incorporated into an organic binder that contains more than 960 
    grams of elemental zinc per liter (8 pounds per gallon) of coating, as 
    applied, and that is used for the expressed purpose of corrosion 
    protection.
        Pleasure craft means any marine or fresh-water vessel used by 
    individuals for noncommercial, nonmilitary, and recreational purposes 
    that is less than 20 meters in length. A vessel rented exclusively to 
    or chartered by individuals for such purposes shall be considered a 
    pleasure craft.
        Pretreatment wash primer specialty coating means any coating that 
    contains a minimum of 0.5 percent acid, by mass, and is applied only to 
    bare metal to etch the surface and enhance adhesion of subsequent 
    coatings.
        Repair and maintenance of thermoplastic coating of commercial 
    vessels (specialty coating) means any vinyl, chlorinated rubber, or 
    bituminous resin coating that is applied over the same type of existing 
    coating to perform the partial recoating of any in-use commercial 
    vessel. (This definition does not include coal tar epoxy coatings, 
    which are considered ``general use'' coatings.)
        Rubber camouflage specialty coating means any specially formulated 
    epoxy coating used as a camouflage topcoat for exterior submarine hulls 
    and sonar domes. Sealant for thermal spray aluminum means any epoxy 
    coating applied to thermal spray aluminum surfaces at a maximum 
    thickness of 1 dry mil.
        Ship means any marine or fresh-water vessel used for military or 
    commercial operations, including self-propelled vessels, those 
    propelled by other craft (barges), and navigational aids (buoys). This 
    definition includes, but is not limited to, all military and Coast 
    Guard vessels, commercial cargo and passenger (cruise) ships, ferries, 
    barges, tankers, container ships, patrol and pilot boats, and dredges. 
    For purposes of this subpart, pleasure crafts and offshore oil and gas 
    drilling platforms are not considered ships.
        Shipbuilding and ship repair operations means any building, repair, 
    repainting, converting, or alteration of ships.
        Special marking specialty coating means any coating that is used 
    for safety or identification applications, such as markings on flight 
    decks and ships' numbers.
        Specialty coating means any coating that is manufactured and used 
    for one of the specialized applications described within this list of 
    definitions.
        Specialty interior coating means any coating used on interior 
    surfaces aboard U.S. military vessels pursuant to a coating 
    specification that requires the coating to meet specified fire 
    retardant and low toxicity requirements, in addition to the other 
    applicable military physical and performance requirements.
        Tack specialty coating means any thin film epoxy coating applied at 
    a maximum thickness of 2 dry mils to prepare an epoxy coating that has 
    dried beyond the time limit specified by the manufacturer for the 
    application of the next coat.
        Thinner means a liquid that is used to reduce the viscosity of a 
    coating and that evaporates before or during the cure of a film.
        Thinning ratio means the volumetric ratio of thinner to coating, as 
    supplied.
        Thinning solvent: see Thinner.
        Undersea weapons systems specialty coating means any coating 
    applied to any component of a weapons system intended to be launched or 
    fired from under the sea.
        Volatile organic compounds (VOC) is as defined in Sec. 51.100(s) of 
    this chapter.
        Volatile organic hazardous air pollutants (VOHAP) means any 
    compound listed in or pursuant to section 112(b) of the CAA that 
    contains carbon, excluding metallic carbides and carbonates. This 
    definition includes VOC listed as HAP and exempt compounds listed as 
    HAP.
        Weld-through preconstruction primer (specialty coating) means a 
    coating that provides corrosion protection for steel during inventory, 
    is typically applied at less than 1 mil dry film thickness, does not 
    require removal prior to welding, is temperature resistant (burn back 
    from a weld is less than 1.25 centimeters [0.5 inch]), and does not 
    normally require removal before applying film-building coatings, 
    including inorganic zinc high-build coatings. When constructing new 
    vessels, there may be a need to remove areas of weld-through 
    preconstruction primer due to surface damage or contamination prior to 
    application of film-building coatings.
    
    
    Sec. 63.783  Standards.
    
        (a) No owner or operator of any existing or new affected source 
    shall cause or allow the application of any coating to a ship with an 
    as-applied VOHAP content exceeding the applicable limit given in Table 
    2 of this subpart, as determined by the procedures described in 
    Sec. 63.785 (c)(1) through (c)(4). For the compliance procedures 
    described in Sec. 63.785 (c)(1) through (c)(3), VOC shall be used as a 
    surrogate for VOHAP, and Method 24 of Appendix A to 40 CFR part 60 
    shall be used as the definitive measure for determining compliance. For 
    the compliance procedure described in Sec. 63.785(c)(4), an alternative 
    test method capable of measuring independent VOHAP shall be used to 
    determine compliance. The method must be submitted to and approved by 
    the Administrator.
        (b) Each owner or operator of a new or existing affected source 
    shall ensure that:
        (1) All handling and transfer of VOHAP-containing materials to and 
    from containers, tanks, vats, drums, and piping systems is conducted in 
    a manner that minimizes spills.
        (2) All containers, tanks, vats, drums, and piping systems are free 
    of cracks, holes, and other defects and remain closed unless materials 
    are being added to or removed from them.
        (c) Approval of alternative means of limiting emissions. (1) The 
    owner or operator of an affected source may apply to the Administrator 
    for permission to use an alternative means (such as an 
    
    [[Page 64339]]
    add-on control system) of limiting emissions from coating operations. 
    The application must include:
        (i) An engineering material balance evaluation that provides a 
    comparison of the emissions that would be achieved using the 
    alternative means to those that would result from using coatings that 
    comply with the limits in Table 2 of this subpart, or the results from 
    an emission test that accurately measures the capture efficiency and 
    control device efficiency achieved by the control system and the 
    composition of the associated coatings so that the emissions comparison 
    can be made;
        (ii) A proposed monitoring protocol that includes operating 
    parameter values to be monitored for compliance and an explanation of 
    how the operating parameter values will be established through a 
    performance test; and
        (iii) Details of appropriate recordkeeping and reporting 
    procedures.
        (2) The Administrator shall approve the alternative means of 
    limiting emissions if, in the Administrator's judgment, postcontrol 
    emissions of VOHAP per volume applied solids will be no greater than 
    those from the use of coatings that comply with the limits in Table 2 
    of this subpart.
        (3) The Administrator may condition approval on operation, 
    maintenance, and monitoring requirements to ensure that emissions from 
    the source are no greater than those that would otherwise result from 
    this subpart. Sec. 63.784 Compliance dates.
        (a) Each owner or operator of an existing affected source shall 
    comply within 1 year after the effective date of this subpart.
        (b) Each owner or operator of an existing unaffected area source 
    that increases its emissions of (or its potential to emit) HAP such 
    that the source becomes a major source that is subject to this subpart 
    shall comply within 1 year after the date of becoming a major source.
        (c) Each owner or operator of a new or reconstructed source shall 
    comply with this subpart according to the schedule in Sec. 63.6(b).
    
    
    Sec. 63.785  Compliance procedures.
    
        (a) For each batch of coating that is received by an affected 
    source, the owner or operator shall (see Figure 1 of this section for a 
    flow diagram of the compliance procedures):
        (1) Determine the coating category and the applicable VOHAP limit 
    as specified in Sec. 63.783(a).
        (2) Certify the as-supplied VOC content of the batch of coating. 
    The owner or operator may use a certification supplied by the 
    manufacturer for the batch, although the owner or operator retains 
    liability should subsequent testing reveal a violation. If the owner or 
    operator performs the certification testing, only one of the containers 
    in which the batch of coating was received is required to be tested.
        (b)(1) In lieu of testing each batch of coating, as applied, the 
    owner or operator may determine compliance with the VOHAP limits using 
    any combination of the procedures described in paragraphs (c)(1), 
    (c)(2), (c)(3), and (c)(4) of this section. The procedure used for each 
    coating shall be determined and documented prior to application.
        (2) The results of any compliance demonstration conducted by the 
    affected source or any regulatory agency using Method 24 shall take 
    precedence over the results using the procedures in paragraphs (c)(1), 
    (c)(2), or (c)(3) of this section.
        (3) The results of any compliance demonstration conducted by the 
    affected source or any regulatory agency using an approved test method 
    to determine VOHAP content shall take precedence over the results using 
    the procedures in paragraph (c)(4) of this section.
        (c)(1) Coatings to which thinning solvent will not be added. For 
    coatings to which thinning solvent (or any other material) will not be 
    added under any circumstance or to which only water is added, the owner 
    or operator of an affected source shall comply as follows:
        (i) Certify the as-applied VOC content of each batch of coating.
        (ii) Notify the persons responsible for applying the coating that 
    no thinning solvent may be added to the coating by affixing a label to 
    each container of coating in the batch or through another means 
    described in the implementation plan required in Sec. 63.787(b).
        (iii) If the certified as-applied VOC content of each batch of 
    coating used during a calendar month is less than or equal to the 
    applicable VOHAP limit in Sec. 63.783(a) (either in terms of g/L of 
    coating or g/L of solids), then compliance is demonstrated for that 
    calendar month, unless a violation is revealed using Method 24 of 
    Appendix A to 40 CFR part 60.
        (2) Coatings to which thinning solvent will be added--coating-by-
    coating compliance. For a coating to which thinning solvent is 
    routinely or sometimes added, the owner or operator shall comply as 
    follows:
        (i) Prior to the first application of each batch, designate a 
    single thinner for the coating and calculate the maximum allowable 
    thinning ratio (or ratios, if the affected source complies with the 
    cold-weather limits in addition to the other limits specified in Table 
    2 of this subpart) for each batch as follows:
    
    
    where:
    
    R=Maximum allowable thinning ratio for a given batch (L thinner/L 
    coating as supplied);
    Vs=Volume fraction of solids in the batch as supplied (L solids/L 
    coating as supplied);
    VOHAP limit=Maximum allowable as-applied VOHAP content of the coating 
    (g VOHAP/L solids);
    mVOC=VOC content of the batch as supplied [g VOC (including cure 
    volatiles and exempt compounds on the HAP list)/L coating (including 
    water and exempt compounds) as supplied];
    Dth=Density of the thinner (g/L).
    
        If Vs is not supplied directly by the coating manufacturer, 
    the owner or operator shall determine Vs as follows:
    
    
    where:
    
    mvolatiles=Total volatiles in the batch, including VOC, water, and 
    exempt compounds (g/L coating); and
    Davg=Average density of volatiles in the batch (g/L).
    
        The procedures specified in Sec. 63.786(d) may be used to determine 
    the values of variables defined in this paragraph. In addition, the 
    owner or operator may choose to construct nomographs, based on Equation 
    1 of this subpart, similar or identical to the one provided in appendix 
    B of this subpart as a means of easily estimating the maximum allowable 
    thinning ratio.
        (ii) Prior to the first application of each batch, notify painters 
    and other persons, as necessary, of the designated thinner and maximum 
    allowable thinning ratio(s) for each batch of the coating by affixing a 
    label to each container of coating or through another means described 
    in the implementation plan required in Sec. 63.787(b).
        (iii) By the 15th day of each calendar month, determine the volume 
    of each batch of the coating used, as supplied, during the previous 
    month.
        (iv) By the 15th day of each calendar month, determine the total 
    allowable volume of thinner for the coating used during the previous 
    month as follows:
    
    [[Page 64340]]
    
    
    
    where:
    
    Vth=Total allowable volume of thinner for the previous month (L 
    thinner);
    Vb=Volume of each batch, as supplied and before being thinned, 
    used during non-cold-weather days of the previous month (L coating as 
    supplied);
    Rcold=Maximum allowable thinning ratio for each batch used during 
    cold-weather days (L thinner/L coating as supplied);
    Vb-cold=Volume of each batch, as supplied and before being 
    thinned, used during cold-weather days of the previous month (L coating 
    as supplied);
    i=Each batch of coating; and
    n=Total number of batches of the coating.
        (v) By the 15th day of each calendar month, determine the volume of 
    thinner actually used with the coating during the previous month.
        (vi) If the volume of thinner actually used with the coating 
    [paragraph (c)(3)(v) of this section] is less than or equal to the 
    total allowable volume of thinner for the coating [paragraph (c)(3)(iv) 
    of this section], then compliance is demonstrated for the coating for 
    the previous month, unless a violation is revealed using Method 24 of 
    Appendix A to 40 CFR part 60.
        (3) Coatings to which the same thinning solvent will be added--
    group compliance. For coatings to which the same thinning solvent (or 
    other material) is routinely or sometimes added, the owner or operator 
    shall comply as follows:
        (i) Designate a single thinner to be added to each coating during 
    the month and ``group'' coatings according to their designated thinner.
        (ii) Prior to the first application of each batch, calculate the 
    maximum allowable thinning ratio (or ratios, if the affected source 
    complies with the cold-weather limits in addition to the other limits 
    specified in Table 2 of this subpart) for each batch of coating in the 
    group using the equations in paragraph (c)(2) of this section.
        (iii) Prior to the first application of each ``batch,'' notify 
    painters and other persons, as necessary, of the designated thinner and 
    maximum allowable thinning ratio(s) for each batch in the group by 
    affixing a label to each container of coating or through another means 
    described in the implementation plan required in Sec. 63.787(b).
        (iv) By the 15th day of each calendar month, determine the volume 
    of each batch of the group used, as supplied, during the previous 
    month.
        (v) By the 15th day of each calendar month, determine the total 
    allowable volume of thinner for the group for the previous month using 
    Equation 3 of this subpart.
        (vi) By the 15th day of each calendar month, determine the volume 
    of thinner actually used with the group during the previous month.
        (vii) If the volume of thinner actually used with the group 
    [paragraph (c)(3)(vi) of this section] is less than or equal to the 
    total allowable volume of thinner for the group [paragraph (c)(3)(v) of 
    this section], then compliance is demonstrated for the group for the 
    previous month, unless a violation is revealed using Method 24 of 
    Appendix A to 40 CFR part 60.
        (4) Demonstration of compliance through an alternative (i.e., other 
    than Method 24 of Appendix A to 40 CFR part 60) test method. The owner 
    or operator shall comply as follows:
        (i) Certify the as-supplied VOHAP content (g VOHAP/L solids) of 
    each batch of coating.
        (ii) If no thinning solvent will be added to the coating, the owner 
    or operator of an affected source shall follow the procedure described 
    in Sec. 63.785(c)(1), except that VOHAP content shall be used in lieu 
    of VOC content.
        (iii) If thinning solvent will be added to the coating, the owner 
    or operator of an affected source shall follow the procedure described 
    in Sec. 63.785(c)(2) or (3), except that in Equation 1 of this subpart: 
    the term ``mVOC'' shall be replaced by the term ``mVOHAP,'' 
    defined as the VOHAP content of the coating as supplied (g VOHAP/L 
    coating) and the term ``Dth'' shall be replaced by the term 
    ``Dth(VOHAP)'' defined as the average density of the VOHAP 
    thinner(s) (g/L).
        (d) A violation revealed through any approved test method shall 
    result in a 1-day violation for enforcement purposes. A violation 
    revealed through the recordkeeping procedures described in paragraphs 
    (c)(1) through (c)(4) of this section shall result in a 30-day 
    violation for enforcement purposes, unless the owner or operator 
    provides sufficient data to demonstrate the specific days during which 
    noncompliant coatings were applied.
    
    BILLING CODE 6560-50-P
    
    [[Page 64341]]
    
    
    
    
    BILLING CODE 6560-50-C
    
    [[Page 64342]]
    
    
    
    Sec. 63.786  Test methods and procedures.
    
        (a) For the compliance procedures described in Sec. 63.785(c) (1) 
    through (c)(3), Method 24 of 40 CFR part 60, appendix A, is the 
    definitive method for determining the VOC content of coatings, as 
    supplied or as applied. When a coating or thinner contains exempt 
    compounds that are volatile HAP or VOHAP, the owner or operator shall 
    ensure, when determining the VOC content of a coating, that the mass of 
    these exempt compounds is included.
        (b) For the compliance procedure described in Sec. 63.785(c)(4), 
    the Administrator must approve the test method for determining the 
    VOHAP content of coatings and thinners. As part of the approval, the 
    test method must meet the specified accuracy limits indicated below for 
    sensitivity, duplicates, repeatability, and reproducibility coefficient 
    of variation each determined at the 95 percent confidence limit. Each 
    percentage value below is the corresponding coefficient of variation 
    multiplied by 2.8 as in the ASTM Method E180-93: Standard Practice for 
    Determining the Precision of ASTM Methods for Analysis and Testing of 
    Industrial Chemicals (incorporation by reference--see Sec. 63.14).
        (1) Sensitivity. The overall sensitivity must be sufficient to 
    identify and calculate at least one mass percent of the compounds of 
    interest based on the original sample. The sensitivity is defined as 
    ten times the noise level as specified in ASTM Method D3257-93: 
    Standard Test Methods for Aromatics in Mineral Spirits by Gas 
    Chromatography (incorporation by reference--see Sec. 63.14). In 
    determining the sensitivity, the level of sample dilution must be 
    factored in.
        (2) Repeatability. First, at the 0.1-5 percent analyte range the 
    results would be suspect if duplicates vary by more than 6 percent 
    relative and/or day to day variation of mean duplicates by the same 
    analyst exceeds 10 percent relative. Second, at greater than 5 percent 
    analyte range the results would be suspect if duplicates vary by more 
    than 5 percent relative and/or day to day variation of duplicates by 
    the same analyst exceeds 5 percent relative.
        (3) Reproducibility. First, at the 0.1-5 percent analyte range the 
    results would be suspect if lab to lab variation exceeds 60 percent 
    relative. Second, at greater than 5 percent range the results would be 
    suspect if lab to lab variation exceeds 20 percent relative.
        (4) Any test method should include information on the apparatus, 
    reagents and materials, analytical procedure, procedure for 
    identification and confirmation of the volatile species in the mixture 
    being analyzed, precision and bias, and other details to be reported. 
    The reporting should also include information on quality assurance (QA) 
    auditing.
        (5) Multiple and different analytical techniques must be used for 
    positive identification if the components in a mixture under analysis 
    are not known. In such cases a single column gas chromatograph (GC) may 
    not be adequate. A combination of equipment may be needed such as a GC/
    mass spectrometer or GC/infrared system. (If a GC method is used, the 
    operator must use practices in ASTM Method E260-91: Standard Practice 
    for Gas Chromatography [incorporation by reference--see Sec. 63.14].)
        (c) A coating manufacturer or the owner or operator of an affected 
    source may use batch formulation data as a test method in lieu of 
    Method 24 of Appendix A to 40 CFR part 60 to certify the as-supplied 
    VOC content of a coating if the manufacturer or the owner or operator 
    has determined that batch formulation data have a consistent and 
    quantitatively known relationship to Method 24 results. This 
    determination shall consider the role of cure volatiles, which may 
    cause emissions to exceed an amount based solely upon coating 
    formulation data. Notwithstanding such determination, in the event of 
    conflicting results, Method 24 of appendix A of 40 CFR part 60 shall 
    take precedence.
        (d) Each owner or operator of an affected source shall use or 
    ensure that the manufacturer uses the form and procedures mentioned in 
    appendix A of this subpart to determine values for the thinner and 
    coating parameters used in Equations 1 and 2 of this subpart. The owner 
    or operator shall ensure that the coating/thinner manufacturer (or 
    supplier) provides information on the VOC and VOHAP contents of the 
    coatings/thinners and the procedure(s) used to determine these values.
    
    
    Sec. 63.787  Notification requirements.
    
        (a) Each owner or operator of an affected source shall comply with 
    all applicable notification requirements in Sec. 63.9(a) through (d) 
    and (i) through (j), with the exception that the deadline specified in 
    Sec. 63.9(b) (2) and (3) shall be extended from 120 days to 180 days. 
    Any owner or operator that receives approval pursuant to Sec. 63.783(c) 
    to use an add-on control system to control coating emissions shall 
    comply with the applicable requirements of Sec. 63.9(e) through (h).
        (b) Implementation plan. The provisions of Sec. 63.9(a) apply to 
    the requirements of this paragraph.
        (1) Each owner or operator of an affected source shall:
        (i) Prepare a written implementation plan that addresses each of 
    the subject areas specified in paragraph (b)(3) of this section; and
        (ii) Not later than 180 days after the effective date of this 
    subpart, submit the implementation plan to the Administrator for 
    approval along with the notification required by Sec. 63.9(b) (2) or 
    (5), as applicable.
        (2) The Administrator may require revisions to the initial plan 
    where the Administrator finds that the plan does not adequately address 
    each subject area listed in paragraph (b)(3) of this section or that 
    the requirements in the plan are unclear.
        (3) Implementation plan contents. Each implementation plan shall 
    address the following subject areas:
        (i) Coating compliance procedures. The implementation plan shall 
    include the compliance procedure(s) under Sec. 63.785(c) that the 
    source intends to use.
        (ii) Recordkeeping procedures. The implementation plan shall 
    include the procedures for maintaining the records required under 
    Sec. 63.788, including the procedures for gathering the necessary data 
    and making the necessary calculations.
        (iii) Transfer, handling, and storage procedures. The 
    implementation plan shall include the procedures for ensuring 
    compliance with Sec. 63.783(b).
        (4) Major sources that intend to become area sources by the 
    compliance date. Existing major sources that intend to become area 
    sources by the compliance date December 16, 1996 may choose to submit, 
    in lieu of the implementation plan required under paragraph (b)(1) of 
    this section, a statement that, by the compliance date, the major 
    source intends to obtain and comply with federally enforceable limits 
    on their potential to emit which make the facility an area source. 
    Sec. 63.788 Recordkeeping and reporting requirements.
        (a) Each owner or operator of an affected source shall comply with 
    the applicable recordkeeping and reporting requirements in Sec. 63.10 
    (a), (b), (d), and (f). Any owner that receives approval pursuant to 
    Sec. 63.783(c) to use an add-on control system to control coating 
    emissions shall also comply with the applicable requirements of 
    Sec. 63.10 (c) and (e). A summary of recordkeeping and reporting 
    requirements is provided in Table 3 of this subpart.
    
    [[Page 64343]]
    
        (b) Recordkeeping requirements. (1) Each owner or operator of an 
    unaffected major source, as described in Sec. 63.781(b), shall record 
    the total volume of coating applied at the source to ships. Such 
    records shall be compiled monthly and maintained for a minimum of 5 
    years.
        (2) Each owner or operator of an affected source shall compile 
    records on a monthly basis and maintain those records for a minimum of 
    5 years. At a minimum, these records shall include:
        (i) All documentation supporting initial notification;
        (ii) A copy of the affected source's approved implementation plan;
        (iii) The volume of each low-usage-exempt coating applied;
        (iv) Identification of the coatings used, their appropriate coating 
    categories, and the applicable VOHAP limit;
        (v) Certification of the as-supplied VOC content of each batch of 
    coating;
        (vi) A determination of whether containers meet the standards as 
    described in Sec. 63.783(b)(2); and
        (vii) The results of any Method 24 of appendix A to 40 CFR part 60 
    or approved VOHAP measurement test conducted on individual containers 
    of coating, as applied.
        (3) The records required by paragraph (b)(2) of this section shall 
    include additional information, as determined by the compliance 
    procedure(s) described in Sec. 63.785(c) that each affected source 
    followed:
        (i) Coatings to which thinning solvent will not be added. The 
    records maintained by facilities demonstrating compliance using the 
    procedure described in Sec. 63.785(c)(1) shall contain the following 
    information:
        (A) Certification of the as-applied VOC content of each batch of 
    coating; and
        (B) The volume of each coating applied.
        (ii) Coatings to which thinning solvent will be added--coating-by-
    coating compliance. The records maintained by facilities demonstrating 
    compliance using the procedure described in Sec. 63.785(c)(2) shall 
    contain the following information:
        (A) The density and mass fraction of water and exempt compounds of 
    each thinner and the volume fraction of solids (nonvolatiles) in each 
    batch, including any calculations;
        (B) The maximum allowable thinning ratio (or ratios, if the 
    affected source complies with the cold-weather limits in addition to 
    the other limits specified in Table 2 of this subpart for each batch of 
    coating, including calculations;
        (C) If an affected source chooses to comply with the cold-weather 
    limits, the dates and times during which the ambient temperature at the 
    affected source was below 4.5 deg.C (40 deg.F) at the time the coating 
    was applied and the volume used of each batch of the coating, as 
    supplied, during these dates;
        (D) The volume used of each batch of the coating, as supplied;
        (E) The total allowable volume of thinner for each coating, 
    including calculations; and
        (F) The actual volume of thinner used for each coating.
        (iii) Coatings to which the same thinning solvent will be added--
    group compliance. The records maintained by facilities demonstrating 
    compliance using the procedure described in Sec. 63.785(c)(3) shall 
    contain the following information:
        (A) The density and mass fraction of water and exempt compounds of 
    each thinner and the volume fraction of solids in each batch, including 
    any calculations;
        (B) The maximum allowable thinning ratio (or ratios, if the 
    affected source complies with the cold-weather limits in addition to 
    the other limits specified in Table 2 of this subpart) for each batch 
    of coating, including calculations;
        (C) If an affected source chooses to comply with the cold-weather 
    limits, the dates and times during which the ambient temperature at the 
    affected source was below 4.5 deg.C (40 deg.F) at the time the coating 
    was applied and the volume used of each batch in the group, as 
    supplied, during these dates;
        (D) Identification of each group of coatings and their designated 
    thinners;
        (E) The volume used of each batch of coating in the group, as 
    supplied;
        (F) The total allowable volume of thinner for the group, including 
    calculations; and
        (G) The actual volume of thinner used for the group.
        (iv) Demonstration of compliance through an alternative (i.e., non-
    Method 24 in appendix A to 40 CFR part 60) test method. The records 
    maintained by facilities demonstrating compliance using the procedure 
    described in Sec. 63.785(c)(4) shall contain the following information:
        (A) Identification of the Administrator-approved VOHAP test method 
    or certification procedure;
        (B) For coatings to which the affected source does not add thinning 
    solvents, the source shall record the certification of the as-supplied 
    and as-applied VOHAP content of each batch and the volume of each 
    coating applied;
        (C) For coatings to which the affected source adds thinning solvent 
    on a coating-by-coating basis, the source shall record all of the 
    information required to be recorded by paragraph (b)(3)(ii) of this 
    section; and
        (D) For coatings to which the affected source adds thinning solvent 
    on a group basis, the source shall record all of the information 
    required to be recorded by paragraph (b)(3)(iii) of this section.
        (4) If the owner or operator of an affected source detects a 
    violation of the standards specified in Sec. 63.783, the owner or 
    operator shall, for the remainder of the reporting period during which 
    the violation(s) occurred, include the following information in his or 
    her records:
        (i) A summary of the number and duration of deviations during the 
    reporting period, classified by reason, including known causes for 
    which a Federally-approved or promulgated exemption from an emission 
    limitation or standard may apply.
        (ii) Identification of the data availability achieved during the 
    reporting period, including a summary of the number and total duration 
    of incidents that the monitoring protocol failed to perform in 
    accordance with the design of the protocol or produced data that did 
    not meet minimum data accuracy and precision requirements, classified 
    by reason.
        (iii) Identification of the compliance status as of the last day of 
    the reporting period and whether compliance was continuous or 
    intermittent during the reporting period.
        (iv) If, pursuant to paragraph (b)(4)(iii) of this section, the 
    owner or operator identifies any deviation as resulting from a known 
    cause for which no Federally-approved or promulgated exemption from an 
    emission limitation or standard applies, the monitoring report shall 
    also include all records that the source is required to maintain that 
    pertain to the periods during which such deviation occurred and:
        (A) The magnitude of each deviation;
        (B) The reason for each deviation;
        (C) A description of the corrective action taken for each 
    deviation, including action taken to minimize each deviation and action 
    taken to prevent recurrence; and
        (D) All quality assurance activities performed on any element of 
    the monitoring protocol.
        (c) Reporting requirements. Before the 60th day following 
    completion of each 6-month period after the compliance date specified 
    in Sec. 63.784, each owner or operator of an affected source shall 
    submit a report to the Administrator for each of the previous 6 months. 
    The report shall include all of the information that must be retained 
    pursuant to paragraphs (b) (2) through (3) of this section, except for 
    that 
    
    [[Page 64344]]
    information specified in paragraphs (b)(2) (i) through (ii), (b)(2)(v), 
    (b)(3)(i)(A), (b)(3)(ii)(A), and (b)(3)(iii)(A). If a violation at an 
    affected source is detected, the source shall also report the 
    information specified in paragraph (b)(4) of this section for the 
    reporting period during which the violation(s) occurred. To the extent 
    possible, the report shall be organized according to the compliance 
    procedure(s) followed each month by the affected source.
    
                    Table 1 To Subpart II of Part 63--General Provisions Applicability to Subpart II                
    ----------------------------------------------------------------------------------------------------------------
                  Reference                 Applies to subpart II                       Comment                     
    ----------------------------------------------------------------------------------------------------------------
    63.1(a)(1)-(3).......................  Yes...................  .................................................
    63.1(a)(4)...........................  Yes...................  Subpart II clarifies the applicability of each   
                                                                    paragraph in subpart A to sources subject to    
                                                                    subpart II.                                     
    63.1(a)(5)-(7).......................  Yes...................                                                   
    63.1(a)(8)...........................  No....................  Discusses State programs.                        
    63.1(a)(9)-(14)......................  Yes...................                                                   
    63.1(b)(1)...........................  Yes...................  Sec.  63.781 specifies applicability in more     
                                                                    detail.                                         
    63.1(b)(2)-(3).......................  Yes...................                                                   
    63.1(c)-(e)..........................  Yes...................                                                   
    63.2.................................  Yes...................  Additional terms are defined in Sec.  63.782;    
                                                                    when overlap between subparts A and II occurs,  
                                                                    subpart II takes precedence.                    
    63.3.................................  Yes...................  Other units used in subpart II are defined in    
                                                                    that subpart.                                   
    63.4.................................  Yes...................                                                   
    63.5(a)-(c)..........................  Yes...................                                                   
    63.5(d)..............................  Yes...................  Except information on control devices and control
                                                                    efficiencies should not be included in the      
                                                                    application unless an add-on control system is  
                                                                    or will be used to comply with subpart II in    
                                                                    accordance with Sec.  63.783(c).                
    63.5(e)-(f)..........................  Yes...................                                                   
    63.6(a)-(b)..........................  Yes...................                                                   
    63.6(c)-(d)..........................  Yes...................  Except Sec.  63.784(a) specifies the compliance  
                                                                    date for existing affected sources.             
    63.6(e)-(f)..........................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c), then these paragraphs do apply.      
    63.6(g)..............................  No....................  Sec.  63.783(c) specifies procedures for         
                                                                    application and approval of alternative means of
                                                                    limiting emissions.                             
    63.6(h)..............................  No....................  Subpart II does not contain any opacity or       
                                                                    visible emission standards.                     
    63.6(i)-(j)..........................  Yes...................                                                   
    63.7.................................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c), then this section does apply.        
    63.8.................................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c), then this section does apply.        
    63.9(a)-(d)..........................  Yes...................  Sec.  63.787(a) extends the initial notification 
                                                                    deadline to 180 days. Sec.  63.787(b) requires  
                                                                    an implementation plan to be submitted with the 
                                                                    initial notification.                           
    63.9(e)..............................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c), then this paragraph does apply.      
    63.9(f)..............................  No....................  Subpart II does not contain any opacity or       
                                                                    visible emission standards                      
    63.9(g)-(h)..........................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c) then these paragraphs do apply.       
    63.9(i)-(j)..........................  Yes...................                                                   
    63.10(a)-(b).........................  Yes...................  Sec.  63.788(b)-(c) list additional recordkeeping
                                                                    and reporting requirements.                     
    63.10(c).............................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c), then this paragraph does apply.      
    63.10(d).............................  Yes...................                                                   
    63.10(e).............................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c), then this paragraph does apply.      
    63.10(f).............................  Yes...................                                                   
    63.11................................  No....................  If an alternative means of limiting emissions    
                                                                    (e.g., an add-on control system) is used to     
                                                                    comply with subpart II in accordance with Sec.  
                                                                    63.783(c), then this section does apply.        
    63.12-63.15..........................  Yes...................                                                   
    ----------------------------------------------------------------------------------------------------------------
    
    
     Table 2 to Subpart II of Part 63.--Volatile Organic HAP (VOHAP) Limits 
                               for Marine Coatings                          
    ------------------------------------------------------------------------
                                                 VOHAP limits a b c         
                                      --------------------------------------
                                       Grams/liter    Grams/liter solids d  
                                         coating   -------------------------
             Coating category             (minus                            
                                        water and    t < 4.5="" exempt="" eq=""> 4.5      deg. C e 
                                        compounds)     deg. C               
    ------------------------------------------------------------------------
    General use......................          340          571          728
    Specialty:                                                              
      Air flask......................          340          571          728
      Antenna........................          530        1,439             
      Antifoulant....................          400          765          971
      Heat resistant.................          420          841        1,069
      High-gloss.....................          420          841        1,069
      High-temperature...............          500        1,237       1,597 
    
    [[Page 64345]]
                                                                            
      Inorganic zinc high-build......          340          571          728
      Military exterior..............          340          571          728
      Mist...........................          610        2,235             
      Navigational aids..............          550        1,597             
      Nonskid........................          340          571          728
      Nuclear........................          420          841        1,069
      Organic zinc...................          360          630          802
      Pretreatment wash primer.......          780       11,095             
      Repair and maint. of                                                  
       thermoplastics................          550        1,597             
      Rubber camouflage..............          340          571          728
      Sealant for thermal spray                                             
       aluminum......................          610        2,235             
      Special marking................          490        1,178             
      Specialty interior.............          340          571          728
      Tack coat......................          610        2,235             
      Undersea weapons systems.......          340          571          728
      Weld-through precon. primer....          650        2,885             
    ------------------------------------------------------------------------
    a The limits are expressed in two sets of equivalent units. Either set  
      of limits may be used for the compliance procedure described in Sec.  
      63.785(c)(1), but only the limits expressed in units of g/L solids    
      (nonvolatiles) shall be used for the compliance procedures described  
      Sec.  63.785(c) (2) through (4).                                      
    b VOC (including exempt compounds listed as HAP) shall be used as a     
      surrogate for VOHAP for those compliance procedures described in Sec. 
      63.785(c) (1) through (3).                                            
    c To convert from g/L to lb/gal, multiply by (3.785 L/gal)(1/453.6 lb/g)
      or 1/120. For compliance purposes, metric units define the standards. 
    d VOHAP limits expressed in units of mass of VOHAP per volume of solids 
      were derived from the VOHAP limits expressed in units of mass of VOHAP
      per volume of coating assuming the coatings contain no water or exempt
      compounds and that the volumes of all components within a coating are 
      additive.                                                             
    e These limits apply during cold-weather time periods, as defined in    
      Sec.  63.782. Cold-weather allowances are not given to coatings in    
      categories that permit over a 40 percent VOHAP content by volume. Such
      coatings are subject to the same limits regardless of weather         
      conditions.                                                           
    
    
    
              Table 3 to Subpart II of Part 63.--Summary of Recordkeeping and Reporting Requirements a b c          
    ----------------------------------------------------------------------------------------------------------------
                                                         All Opts.       Option 1        Option 2        Option 3   
                       Requirement                   ---------------------------------------------------------------
                                                        Rec     Rep     Rec     Rep     Rec     Rep     Rec     Rep 
    ----------------------------------------------------------------------------------------------------------------
    Notification (Sec.  63.9(a)-(d))................      X       X                                                 
    Implementation plan (Sec.  63.787(b)) d.........      X       X                                                 
    Volume of coating applied at unaffected major                                                                   
     sources (Sec.  63.781(b))......................      X                                                         
    Volume of each low-usage-exempt coating applied                                                                 
     at affected sources (Sec.  63.781(c))..........      X       X                                                 
    ID of the coatings used, their appropriate                                                                      
     coating categories, and the applicable VOHAP                                                                   
     limit..........................................      X       X                                                 
    Determination of whether containers meet the                                                                    
     standards described in Sec.  63.783(b)(2)......      X       X                                                 
    Results of M-24 or other approved tests.........      X       X                                                 
    Certification of the as-supplied VOC content of                                                                 
     each batch.....................................      X                                                         
    Certification of the as-applied VOC content of                                                                  
     each batch.....................................                      X                                         
    Volume of each coating applied..................                      X       X                                 
    Density of each thinner and volume fraction of                                                                  
     solids in each batch...........................                                      X       X                 
    Maximum allowable thinning ratio(s) for each                                                                    
     batch..........................................                                      X       X       X       X 
    Volume used of each batch, as supplied..........                                      X       X       X       X 
    Total allowable volume of thinner...............                                      X       X       X       X 
    Actual volume of thinner used...................                                      X       X       X       X 
    Identification of each group of coatings and                                                                    
     designated thinners............................                                                      X       X 
    ----------------------------------------------------------------------------------------------------------------
    a Affected sources that comply with the cold-weather limits must record and report additional information, as   
      specified in Sec.  63.788(b)(3) (ii)(C), (iii)(C), and (iv)(D).                                               
    b Affected sources that detect a violation must record and report additional information, as specified in Sec.  
      63.788(b)(4).                                                                                                 
    c OPTION 4: the recordkeeping and reporting requirements of Option 4 are identical to those of Options 1, 2, or 
      3, depending on whether and how thinners are used. However, when using Option 4, the term ``VOHAP'' shall be  
      used in lieu of the term ``VOC,'' and the owner or operator shall record and report the Administrator-approved
      VOHAP test method or certification procedure.                                                                 
    d Major sources that intend to become area sources by the compliance date may, in lieu of submitting an         
      implementation plan, choose to submit a statement of intent as specified in Sec.  63.787(b)(4).               
    
    
    [[Page 64346]]
    
    
    Appendix A to Subpart II of Part 63--VOC Data Sheet \1\
    
    Properties of the Coating ``As Supplied'' by the Manufacturer \2\
    
    Coating Manufacturer:--------------------------------------------------
    
        * Incorporation by reference--see Sec. 63.14.
        \1\ Adapted from EPA-340/1-86-016 (July 1986), p. II-2.
        \2\ The subscript ``s'' denotes each value is for the coating 
    ``as supplied'' by the manufacturer.
    ---------------------------------------------------------------------------
    
    Coating Identification:------------------------------------------------
    Batch Identification:--------------------------------------------------
    Supplied To:-----------------------------------------------------------
    
        Properties of the coating as supplied \1\ to the customer:
    
    A. Coating Density: (Dc)s ____ g/L
        [  ] ASTM D1475-90 *  [  ] Other \3\
    
        \3\ Explain the other method used under ``Remarks.''
    ---------------------------------------------------------------------------
    
    B. Total Volatiles: (mv)s ____ Mass Percent
        [  ] ASTM D2369-93 * [  ] Other \3\
    C. Water Content: 1. (mw)s ____ Mass Percent
        [  ] ASTM D3792-91 *  [  ] ASTM D4017-90 *  [  ] Other \3\
        2. (vw)s ____ Volume Percent
        [  ] Calculated  [  ] Other \3\
    D. Organic Volatiles: (mo)s ____ Mass Percent
    E. Nonvolatiles: (vn)s ____ Volume Percent
        [  ] Calculated  [  ] Other \3\
    F. VOC Content (VOC)s:
        1. ____ g/L solids (nonvolatiles)
        2. ____ g/L coating (less water and exempt compounds)
    G. Thinner Density: Dth ____ g/L
        ASTM ____ [  ] Other \3\
    
    Remarks: (use reverse side)
    
        Signed: ______________ Date: ____
    
    BILLING CODE 6560-50-P
    
    [[Page 64347]]
    
    
    
    
    [FR Doc. 95-29748 Filed 12-14-95; 8:45 am]
    BILLING CODE 6560-50-C
    
    

Document Information

Effective Date:
12/15/1995
Published:
12/15/1995
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-29748
Dates:
The effective date is December 15, 1995. Incorporation by reference of certain publications listed in the regulations is approved by the director of the Federal Register as of December 15, 1995.
Pages:
64330-64347 (18 pages)
Docket Numbers:
AD-FRL-5335-3
RINs:
2060-AD98: NESHAP: Surface Coating Operations in Shipbuilding and Ship Repair
RIN Links:
https://www.federalregister.gov/regulations/2060-AD98/neshap-surface-coating-operations-in-shipbuilding-and-ship-repair
PDF File:
95-29748.pdf
CFR: (15)
40 CFR 7401(b)
40 CFR 63.9(b)
40 CFR 63.783(c)
40 CFR 63.785(c)
40 CFR 63.10
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