97-22363. Consumer and Commercial Products: Wood Furniture, Aerospace, and Shipbuilding and Ship Repair Coatings: Control Techniques Guidelines in Lieu of Regulations  

  • [Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
    [Notices]
    [Pages 44672-44684]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-22363]
    
    
    =======================================================================
    -----------------------------------------------------------------------
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    [FRL-5878-9]
    
    
    Consumer and Commercial Products: Wood Furniture, Aerospace, and 
    Shipbuilding and Ship Repair Coatings: Control Techniques Guidelines in 
    Lieu of Regulations
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Notice of proposed determination.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The EPA is proposing its determination that control techniques 
    guidelines (CTG) are substantially as effective as national regulations 
    under section 183(e) of the Clean Air Act (CAA), as amended in 1990, in 
    reducing volatile organic compounds (VOC) emissions in ozone 
    nonattainment areas from wood furniture manufacturing,
    
    [[Page 44673]]
    
    aerospace, and shipbuilding and ship repair coatings and that, 
    therefore, the EPA may issue a CTG in lieu of a national regulation for 
    each of these specific categories. The CAA requires the EPA to control 
    VOC emissions from certain categories of consumer and commercial 
    products through either issuance of national rules or CTG. The proposed 
    action implements this requirement by determining that CTG are 
    substantially as effective as regulations for wood furniture 
    manufacturing, aerospace, and shipbuilding and ship repair coatings 
    and, therefore, may be issued in lieu of regulations.
        The EPA determined that VOC emissions from consumer and commercial 
    products can contribute to the formation of ozone and ozone levels that 
    violate the national ambient air quality standards (NAAQS) for ozone. 
    Ozone, which is a major component of smog, causes negative health and 
    environmental impacts when present in high concentrations at ground 
    level. As of April 1996, there were 73 geographic areas which exceeded 
    the NAAQS for ozone. These ozone nonattainment areas have a combined 
    population of 114 million people.
        A public hearing will be held, if requested, to provide interested 
    persons an opportunity for oral presentation of data, views, or 
    arguments concerning the EPA's determination that CTG may be issued in 
    lieu of national regulations for wood furniture, aerospace, and 
    shipbuilding and ship repair coatings.
    
    DATES:
    
        Comments. Comments must be received on or before October 21, 1997.
        Public Hearing. A public hearing will be held, if requested, to 
    provide interested persons an opportunity for oral presentation of 
    data, views, or arguments concerning the proposed determination that 
    CTG are substantially as effective as national regulations for wood 
    furniture, aerospace, and shipbuilding and ship repair coatings and, 
    therefore, CTG may be issued in lieu of regulations. If anyone contacts 
    the EPA requesting to speak at a public hearing by September 8, 1997, a 
    public hearing will be held on September 25, 1997, beginning at 9:30 
    a.m. Persons interested in attending the hearing should contact Ms. Kim 
    Teal at (919) 541-5580 to verify whether a hearing will occur and the 
    location of the hearing.
        Request to Speak at Hearing. Persons wishing to present oral 
    testimony must contact the EPA by September 17, 1997, by contacting Ms. 
    Kim Teal, Coatings and Consumer Products Group (MD-13), U.S. 
    Environmental Protection Agency, Research Triangle Park, North Carolina 
    27711, telephone number (919) 541-5580.
    
    ADDRESSES:
    
        Comments. Comments should be submitted (in duplicate, if possible) 
    to: Air and Radiation Docket and Information Center (6102), Attention: 
    Docket No. A-96-23, U.S. Environmental Protection Agency, 401 M Street, 
    SW, Washington, DC 20460.
        Docket. Docket No. A-96-23, containing supporting information for 
    the proposed determination of the effectiveness of a CTG for the wood 
    furniture, aerospace, and shipbuilding and ship repair coatings under 
    section 183(e), is available for public inspection and copying between 
    8:30 a.m. and 5:00 p.m., Monday through Friday, at the EPA's Air and 
    Radiation Docket and Information Center, Waterside Mall, Room M-1500, 
    1st Floor, 401 M Street, SW, Washington, DC 20460. Telephone (202) 260-
    7548, FAX (202) 260-4400. A reasonable fee may be charged for copying.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Daniel Brown, (919) 541-5305, 
    Coatings and Consumer Products Group, Emission Standards Division (MD-
    13), U.S. Environmental Protection Agency, Research Triangle Park, 
    North Carolina 27711.
    
    SUPPLEMENTARY INFORMATION:
    
    Electronic Access and Filing Addresses
    
        Comments and data may also be submitted electronically by sending 
    electronic mail (e-mail) to: a-and-r-docket@epamail.epa.gov. Electronic 
    comments must be submitted as an ASCII file avoiding the use of special 
    characters and any form of encryption. Comments and data will also be 
    accepted on disk in WordPerfect 6.1 file format or ASCII file format. 
    All comments and data in electronic form must be identified by the 
    docket number A-96-23. No Confidential Business Information should be 
    submitted through e-mail. Electronic comments on this proposed 
    determination may be filed online at many Federal Depository Libraries.
        An electronic version of this proposed determination is 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 14,400 bits per second. If 
    more information on TTN is needed, contact the systems operator at 
    (919) 541-5384.
    
    Potentially Affected Entities
    
        Entities potentially affected by this action are those wood 
    furniture manufacturing operations, aerospace manufacturing and rework 
    operations, or shipbuilding and ship repair (surface coating) 
    operations which are (or have the potential to become) ``major'' 
    sources of VOC emissions and are located in nonattainment areas of 
    ozone. Potentially affected entities are included in the following 
    table:
    
    ------------------------------------------------------------------------
                                           Examples of potentially affected 
                  Category                             entities             
    ------------------------------------------------------------------------
    Industry...........................  Wood furniture or wood furniture   
                                          component(s) manufacturing.       
                                         Any manufacturing, reworking, or   
                                          repairing of aircraft such as     
                                          airplanes, helicopters, missiles, 
                                          rockets, and space vehicles.      
                                         Any building or repairing,         
                                          repainting, converting, or        
                                          alteration of ships. The term ship
                                          means any marine or fresh-water   
                                          vessel, including self-propelled  
                                          by other craft (barges), and      
                                          navigational aids (buoys). Note:  
                                          Offshore oil and gas drilling     
                                          platforms and vessels used by     
                                          individuals for noncommercial,    
                                          nonmilitary, and recreational     
                                          purposes that are less than 20    
                                          meters in length are not          
                                          considered ships.                 
    Federal Government.................  Federal agencies which undertake   
                                          aerospace manufacturing or rework 
                                          operations (see above) such as the
                                          Air Force, Navy, Army, and Coast  
                                          Guard.                            
                                         Federal agencies which undertake   
                                          shipbuilding or ship repair       
                                          operations (see above) such as the
                                          Navy and Coast Guard.             
    ------------------------------------------------------------------------
    
    
    [[Page 44674]]
    
        This table is not intended to be exhaustive, but rather provides a 
    guide for readers regarding entities which are the focus of this 
    action. This table lists the types of entities that the EPA is now 
    aware could potentially be affected by this action. Other types of 
    entities not listed in the table could also be affected. If you have 
    questions regarding the focus or applicability of this action to a 
    particular entity, consult the person listed in the preceding FOR 
    FURTHER INFORMATION CONTACT section of this notice.
        The information presented in this notice is organized as follows:
    
    I. Background
    II. Wood Furniture Manufacturing Coatings
        A. Factors to Consider Regarding the Effectiveness of CTG 
    Compared to a National Regulation
        B. Overview of Existing Wood Furniture CTG and Expected 
    Emissions Reductions
        C. Estimate of BAC for Wood Furniture Coatings
        D. Comparison of Effectiveness of Wood Furniture CTG with 
    National Regulation Based on BAC in Reducing VOC Emissions
    III. Aerospace Coatings
        A. Factors to Consider Regarding the Effectiveness of CTG 
    Compared to a National Regulation
        B. Overview of Recently Proposed Aerospace CTG and Expected 
    Emissions Reductions
        C. Estimate of BAC for Aerospace Coatings
        D. Comparison of Effectiveness of Aerospace CTG with National 
    Regulation Based on BAC in Reducing VOC Emissions
    IV. Shipbuilding and Ship Repair Coatings
        A. Factors to Consider Regarding the Effectiveness of CTG 
    Compared to a National Regulation
        B. Overview of Shipbuilding and Ship Repair CTG and Expected 
    Emissions Reductions
        C. Estimate of BAC for Shipbuilding and Ship Repair Coatings
        D. Comparison of Effectiveness of Shipbuilding and Ship Repair 
    CTG with National Regulation Based on BAC in Reducing VOC Emissions
    V. Proposed Determination
    VI. Cost-Effectiveness
    VII. Solicitation of Comments
    VIII. Administrative Requirements
        A. Public Hearing
        B. Docket
        C. Paperwork Reduction Act
        D. Administrative Designation and Regulatory Analysis
        E. Regulatory Flexibility
        F. Unfunded Mandates Act
    
    I. Background
    
        Exposure to ground-level ozone is associated with a wide variety of 
    human health effects, agricultural crop loss, and damage to forests and 
    ecosystems. The most thoroughly studied health effects of exposure to 
    ozone at elevated levels during periods of moderate to strenuous 
    exercise are the impairment of normal functioning of the lungs, 
    symptomatic effects, and reduction in the ability to engage in 
    activities that require various levels of physical exertion. Typical 
    symptoms associated with acute (one to three hour) exposure to ozone at 
    levels of 0.12 parts per million (ppm) or higher under heavy exercise 
    or 0.16 ppm or higher under moderate exercise include cough, chest 
    pain, nausea, shortness of breath, and throat irritation.
        Ground-level ozone, which is a major component of ``smog,'' is 
    formed in the atmosphere by reactions of VOC and oxides of nitrogen 
    (NOX) in the presence of sunlight. In order to reduce ground-level 
    ozone concentrations, emissions of VOC and NOX must be reduced.
        Section 183(e) of the CAA addresses the reduction of VOC emissions 
    from consumer and commercial products. It requires the EPA to study VOC 
    emissions from consumer and commercial products, to report to Congress 
    the results of the study, and to list for regulation products 
    accounting for at least 80 percent of VOC emissions resulting from use 
    of such products in ozone nonattainment areas. Accordingly, on March 
    23, 1995 (60 FR 15264), the EPA announced the availability of the 
    ``Consumer and Commercial Products Report to Congress'' (EPA-453/R-94-
    066-A), and published the consumer and commercial products category 
    list and schedule for regulation. As stated in that notice, the list 
    and schedule could be amended as further information becomes available. 
    Group I, which identifies product categories scheduled for regulation 
    by 1997, includes wood furniture, aerospace, and shipbuilding and ship 
    repair coatings. Therefore, the EPA is required to regulate these three 
    categories by 1997. In this action, the EPA seeks comment on the 
    listing and the schedule for regulation with respect to these three 
    categories.
        Regulations developed under section 183(e) must be based on best 
    available controls (BAC). Section 183(e)(1)(A) defines BAC as follows:
    
        The degree of emission reduction that the Administrator 
    determines, on the basis of technological and economic feasibility, 
    health, environmental, and energy impacts, is achievable through the 
    application of the most effective equipment, measures, processes, 
    methods, systems, or techniques, including chemical reformulation, 
    product or feedstock substitution, repackaging, and directions for 
    use, consumption, storage, or disposal.
    
        Although section 183(e) requires the EPA to issue regulations, 
    section 183(e)(3)(C) provides that the EPA may issue CTG in lieu of a 
    national regulation where the EPA determines that the CTG will be 
    ``substantially as effective as regulations'' in reducing emissions of 
    VOC in ozone nonattainment areas.
        Although not specifically defined in the CAA, a CTG is a guidance 
    document issued by the EPA which, under section 182(b)(2), triggers a 
    responsibility for States to submit reasonably available control 
    technology (RACT) rules for stationary sources of VOC that are covered 
    by the CTG as part of their State implementation plans. The EPA defines 
    RACT as ``the lowest emission limit that a particular source is capable 
    of meeting by the application of control technology that is reasonably 
    available considering technological and economic feasibility'' (44 FR 
    53761, September 17, 1979). Each CTG includes a ``presumptive norm'' or 
    ``presumptive RACT'' that the EPA believes satisfies the definition of 
    RACT. If a State submits a RACT rule that is consistent with the 
    presumptive RACT, the State does not need to submit additional support 
    to demonstrate that the rule meets the CAA's RACT requirement. However, 
    if the State determines to submit an alternative emission limit or 
    level of control for a source or source category for which there is a 
    presumptive RACT, the State must submit independent documentation as to 
    why the rule meets the statutory RACT requirement.
        Although section 183(e) authorizes issuance of a CTG in lieu of a 
    regulation for categories of consumer and commercial products for which 
    a CTG would be substantially as effective in ozone nonattainment areas 
    as a regulation would be, the statute does not explicitly identify the 
    appropriate standard, or level of control, for the CTG. As discussed 
    above, a CTG generally triggers the responsibility of a State to 
    develop regulations based on RACT. Congress did not provide a distinct 
    standard to be considered when determining whether a CTG would be 
    substantially as effective as a regulation pursuant to section 183(e), 
    and legislative history does not address this issue. Because the only 
    statutory requirement triggered by a CTG is establishment of RACT, the 
    EPA believes that Congress intended the more generally applied RACT 
    standard to be the basis for determining whether a CTG could be issued 
    in lieu of regulation for consumer and commercial products.
        In some situations, the EPA may examine an existing CTG, or one 
    that is under development pursuant to other requirements of the CAA, to 
    determine
    
    [[Page 44675]]
    
    if such CTG is substantially as effective as a regulation under section 
    183(e). The EPA believes that such comparisons would fulfill the 
    requirements of section 183(e) when such CTG are based on RACT or 
    standards determined to be equivalent to RACT.
        Sections 183(b)(3) and (4) require the EPA to establish CTG based 
    on ``best available control measures'' (BACM) to reduce emissions from 
    aerospace coatings and solvents and shipbuilding and ship repair 
    coating operations. As discussed later in this notice, the EPA 
    determined that for the CTG based on BACM required under sections 
    183(b)(3) and (4) for aerospace coatings and shipbuilding and ship 
    repair coating operations, RACT would in fact be equivalent to BACM. 
    Therefore, it is appropriate for the EPA to consider whether these CTG, 
    which would meet both BACM and RACT, would be substantially as 
    effective as a BAC-based regulation issued under section 183(e).
        In exercising its discretion to consider a CTG as a regulatory 
    alternative under section 183(e) of the CAA, the EPA recognizes that 
    because its specific purpose is to reduce emissions of VOC in ozone 
    nonattainment areas, in some cases a CTG can be substantially as 
    effective as a national regulation, particularly for some of the 
    commercial products scheduled for regulation under section 183(e). In 
    fact, in some instances, a CTG may be more effective because it can be 
    directed at a broader scope of regulated entities. Section 183(e) 
    defines regulated entities as follows:
    
        (i) * * * manufacturers, processors, wholesale distributors, or 
    importers of consumer or commercial products for sale or 
    distribution in interstate commerce in the United States; or (ii) 
    manufacturers, processors, wholesale distributors, or importers that 
    supply the entities listed under clause (i) with such products for 
    sale or distribution in interstate commerce in the United States.
    
        Based on this definition, a regulation issued under section 183(e) 
    for consumer or commercial products would focus only on the 
    manufacturers or importers of the solvents and products supplied to the 
    consumer or industry, rather than on the consumer or end-users of the 
    products within an industry. Focusing on manufacturers and importers is 
    an effective approach for reducing emissions from consumer and 
    commercial products, especially those which are easily transportable 
    and widely distributed to consumers and contractors for use in 
    unlimited locations. For these types of products, a CTG may not be as 
    effective as a national regulation. The transportability of the 
    products tend to decrease rule effectiveness due to the likelihood of 
    unregulated or ``higher VOC'' products being bought in attainment areas 
    and used in nonattainment areas. In addition, since the end-users 
    include homeowners and other widely varied consumers, effective 
    enforcement on these types of users would be limited. Therefore, for 
    these types of products, the main benefit of a CTG may not be achieved; 
    namely, the ability to ensure that the product used meets the 
    requirements after any thinner or other VOC components are added. In 
    such instances where the end user is at a specified manufacturing 
    setting, a CTG may be as, or more, effective than a regulation because 
    a CTG can be reasonably focused on the end-user, and thus, directly 
    target the coating as-applied, rather than as-supplied, at the 
    facilities. The ``as-applied'' coating would include the VOC in the 
    manufactured commercial coating itself plus any VOC solvent added to 
    the product by the end-user. The application of a CTG to these 
    industries may be particularly effective because, in contrast to 
    consumer products, these industries have well-defined end-users which 
    consistently apply large volumes of coatings at specific and easily 
    identifiable locations. At the point of application, a CTG can prohibit 
    an end-user from thinning products beyond VOC requirements. In 
    addition, a CTG could achieve added VOC reductions in industrial 
    settings where these coatings are applied by requiring particular 
    application equipment or work practices. These types of requirements 
    would not be practical for widely distributed consumer products since 
    enforcement personnel would not be aware of locations where the 
    products may be used on any given day.
        In the case of wood furniture manufacturing, aerospace, and 
    shipbuilding and ship repair facilities, large volumes of coatings may 
    be applied in a manner where the specific application process requires 
    the addition of VOC solvent and other adjuncts to achieve and maintain 
    ideal coating properties; these additions by the end-user may increase 
    emissions of VOC which may not be adequately addressed by a regulation 
    aimed at regulated entities (i.e., the coating manufacturers). Because 
    a CTG is directed toward the end-user, requirements could directly 
    target the coating as applied at the facility. The ``as-applied'' 
    coating would include any VOC solvent added to the commercial products 
    (i.e., the coatings as supplied by the coating manufacturers) by the 
    end-user. In addition, a CTG could target application equipment and 
    work practice standards to achieve further VOC reductions. In these 
    cases, a CTG may be a more effective means to reduce VOC emissions than 
    a national regulation.
        Considering these factors, the EPA estimated and compared the 
    likely VOC reductions in ozone nonattainment areas to be achieved by a 
    CTG versus a national regulation based on BAC for each of these 
    categories. In conducting the comparison of whether a CTG based on RACT 
    would be substantially as effective as a national regulation based on 
    BAC, the EPA estimated what RACT and BAC would be in order to estimate 
    emission reductions. Although the EPA considered likely estimates of 
    RACT and BAC for this comparative purpose, at this time, specific RACT 
    and BAC limits are not being proposed and the EPA only seeks comments 
    on the proposed case-by-case determination that a CTG would be as 
    effective as a national regulation for these three industries. If the 
    EPA determines, based on comments received, that a CTG would not be 
    substantially as effective as a national regulation, the EPA will 
    proceed with development of a BAC-based national regulation. As today's 
    proposal relies only on estimates of BAC, it is possible that a BAC-
    based regulation may differ from the estimates relied on today.
        Based on the comparisons discussed below, the EPA is proposing that 
    a CTG for wood furniture, aerospace, and shipbuilding and ship repair 
    industries would be substantially as effective as a national regulation 
    developed under section 183(e) in reducing VOC emissions from 
    facilities located in ozone nonattainment areas. In determining whether 
    to develop a CTG or a regulation, the EPA may take into account a 
    variety of different factors related to implementation and enforcement, 
    such as the most effective entity to target for regulation, the need 
    for flexibility, the distribution and site of use for the products, 
    consistency with other control strategies, and cost-effectiveness. As 
    described below on a case-by-case basis, some of these factors can 
    affect the effectiveness of a CTG in controlling VOC emissions from 
    commercial products. The EPA requests comment on these determinations.
    
    [[Page 44676]]
    
    II. Wood Furniture Manufacturing Coatings
    
    A. Factors To Consider Regarding the Effectiveness of CTG Compared to a 
    National Regulation
    
        In evaluating control strategies for VOC emissions from wood 
    furniture manufacturing coatings, it is necessary to know how those 
    coatings are used by the wood furniture industry. The wood furniture 
    industry is commonly grouped into household/residential furniture, 
    office/business furniture, and kitchen cabinet furniture. Each group 
    consists of different grades and styles of wood furniture products and 
    uses a variety of raw materials and manufacturing methods. Differences 
    in the products would be apparent in finish application methods, 
    finishing sequences, types of wood or wood product used, and types of 
    finish coatings used.
        The coatings used in the wood furniture industry penetrate the wood 
    and become an integral part of the final product. The coatings are very 
    complex in that they react differently with the various types of wood, 
    fiberboard, and particleboard used by the industry, as well as each 
    subsequent coating applied in the finishing process. Therefore, each 
    type of coating used for a particular step in a finishing sequence is 
    unique and must be formulated as part of a complimentary finishing 
    system to ensure compatibility. In addition, the VOC content and 
    composition of a coating is sometimes adjusted to account for changes 
    in the drying time and the overall ease of application in relation to 
    ambient temperature and the humidity. Solvents used to adjust the 
    coatings are also used for cleaning application equipment and work 
    spaces and to strip finished pieces (referred to as washoff) that do 
    not meet specifications.
        The related VOC emissions from the wood furniture industry, 
    therefore, are from the use of the coatings and the use of solvent in 
    cleaning and washoff operations. Because VOC emissions in this industry 
    are due to a variety of different sources in the manufacturing process, 
    including the coatings as applied, a national regulation under section 
    183(e) of the CAA may be of limited effectiveness in reducing VOC 
    emissions from wood furniture coatings. This is primarily due to the 
    fact that the EPA's authority under section 183(e), as previously 
    discussed, does not authorize the regulation of end-users. Thus, 
    regulations could apply only to the wood furniture coatings as 
    ``supplied'' to the wood furniture industry, not to the users who apply 
    the coatings. Since the wood furniture manufacturers often alter a 
    supplied coating prior to its application by adding VOC solvents, the 
    ``as-applied'' VOC content of the coating ends up being greater than 
    the ``as-supplied'' VOC content. For this reason, a CTG could be as 
    effective, if not more effective, than a national regulation. For the 
    wood furniture industry, consisting of facilities which could be 
    inspected for compliance with State RACT rules, a CTG could provide 
    limits for the coatings as applied and also achieve VOC emission 
    reductions from the implementation of work practice standards for the 
    associated cleaning and washoff operations.
    
    B. Overview of Existing Wood Furniture CTG and Expected Emissions 
    Reductions
    
        Under a separate Federal Register notice, the EPA recently released 
    a final CTG for the wood furniture manufacturing industry (61 FR 25223, 
    May 20, 1996) pursuant to section 183(a) of the CAA. The EPA is not 
    seeking comment on the content, or issuance, of that wood furniture CTG 
    as it was issued independently of any requirements of section 183(e). 
    However, for the purpose of determining whether a CTG would be 
    substantially as effective as a regulation as required under section 
    183(e), the following discussion refers to that CTG as an estimate of 
    the potential emission reductions obtainable with a CTG for the wood 
    furniture industry. As the CTG issued pursuant to section 183(a) was 
    based on RACT, and a CTG to be issued pursuant to section 183(e) would 
    also be based on RACT, the already existing CTG provides an appropriate 
    estimate for these purposes.
        The wood furniture CTG applies to wood furniture manufacturing 
    facilities located in ozone nonattainment areas that emit more than 25 
    tons per year (tpy) of VOC (10 tpy for sources located in extreme ozone 
    nonattainment areas). The CTG includes emission limits for the finish 
    coatings used by the wood furniture industry and work practice 
    standards that will reduce emissions from finishing, cleaning, and 
    washoff operations by reducing finish coating and solvent usage.
        The CTG emission limits were established through a regulatory 
    negotiation process consisting of stakeholders from industry, 
    environmental and public health groups, States, and the EPA. For over 
    two years the stakeholders evaluated several control technique options 
    in consideration of advancing technology, compatibility, and 
    feasibility. At the conclusion of the evaluation, it was determined 
    that of the various coatings used in the finishing process, 
    conventional topcoats and sealers could technically and feasibly be 
    replaced with waterborne and/or high solids coatings. The waterborne 
    technology, however, is limited to topcoats since waterborne sealer 
    technology has been slower to advance and is limited in availability to 
    a few segments of the industry where both waterborne sealers and 
    topcoats can be used to meet product quality requirements. The high 
    solids technology is further advanced and both high-solids topcoats and 
    sealers are, or will be, available to the industry.
        The emission limits corresponding to these two reference control 
    technologies are presented in table 1. A wood furniture manufacturing 
    facility may reformulate all of its topcoats so that it meets the 
    waterborne reference technology limit of 0.8 kilogram (kg) VOC/kg 
    solids, in which case it could use any sealer with no restriction on 
    its VOC content; or it may reformulate both the sealers and topcoats to 
    meet the high solids reference technology limits of 1.9 and 1.8 kg VOC/
    kg solids, respectively (2.3 and 2.0 for vinyl sealers and conversion 
    varnish topcoats). The 0.8 kg VOC/kg solids limit for the waterborne 
    topcoats may also be achieved with other types of topcoats such as 
    ultraviolet-cured topcoats which also meet this limit.
        Facilities must also comply with the work practice standards. These 
    include a limit on the types of application equipment that may be used 
    to apply finishing materials and a requirement that facilities develop 
    and implement an operator training program, a cleaning and washoff 
    solvent accounting system, and a leak detection and repair program. 
    Facilities must also keep all containers used to store finishing 
    materials and solvents closed when not in use. Table 2 summarizes the 
    work practice standards included in the CTG.
        In the previously issued CTG, the EPA estimated that more than 950 
    wood furniture manufacturing facilities will be subject to State 
    regulations based on the CTG. The emission limits and work practice 
    standards are expected to reduce VOC emissions from these facilities by 
    18,500 megagrams per year (Mg/yr) (20,400 tpy) in ozone nonattainment 
    areas.
    
    C. Estimate of BAC for Wood Furniture Coatings
    
        As discussed in the background section of this notice, the EPA may 
    determine that a CTG would be substantially as effective as a 
    regulation issued under section 183(e). To make
    
    [[Page 44677]]
    
    such a determination, the EPA estimated and compared the likely VOC 
    reductions in nonattainment areas to be achieved by a CTG versus a 
    regulation. Regulations issued pursuant to section 183(e) must be based 
    on BAC. Thus, for comparative purposes, the EPA identified potential 
    limits which would be likely to represent BAC. Although the EPA 
    conducted such an analysis, the EPA is not proposing this estimate as a 
    BAC limit at this time. The BAC estimate discussed in this proposal 
    represents a likely limit that could represent BAC in a national 
    regulation. However, if the EPA were to proceed with the development of 
    a national BAC regulation, it is possible that the BAC-based regulation 
    may differ from the estimates relied on today for comparison purposes.
        In estimating BAC for wood furniture coatings, the EPA evaluated 
    the information and data used to establish the VOC emission controls in 
    the wood furniture CTG. As previously discussed, the limits recommended 
    in the CTG resulted from over two years of evaluating control options 
    in consideration of advancing technology and feasibility. Although that 
    CTG was based on RACT, as discussed below, the EPA believes that the 
    standard in the CTG reflects the most advanced control technologies 
    available for use by the industry and is, thus, representative of BAC.
        In evaluating the topcoat and sealer coatings used by the wood 
    furniture manufacturing industry, the EPA considered conventional 
    coatings with lower VOC content as well as the more advanced waterborne 
    coatings and high solids coatings during the CTG development process. 
    For the purpose of the following discussion, it is helpful to think of 
    the different coating types (e.g., conventional, waterborne, high 
    solids) as distinct technologies comprising separate coating systems. 
    To maintain the diversity of wood furniture products and the various 
    levels of product quality that customers demand, the EPA believes a 
    variety of coating systems should remain available. Therefore, in 
    establishing the RACT limits in the CTG, the EPA included separate 
    limits for waterborne and high solids coating technologies. However, 
    rather than estimating limits for each coating technology in 
    establishing BAC, the EPA estimated a single set of coating limits 
    representing the lowest achievable VOC content which would not preclude 
    the manufacture of the required coatings for each technology. Again, 
    this is because a regulation under section 183(e) would not apply to 
    the end-user of the product (e.g., the wood furniture manufacturing 
    industry), but rather the manufacturer or importer of the product 
    (e.g., the manufacturer of the wood furniture coating).
        In evaluating BAC, waterborne technology and UV-curable coatings 
    offered topcoats and sealers with the lowest VOC contents among all of 
    the coating technologies considered. However, as described previously, 
    only waterborne topcoats were determined to be RACT with the limit in 
    the CTG set at 0.8 kg VOC/kg solid. In estimating BAC, the EPA 
    considered strengthening the RACT limit for waterborne technology by 
    establishing a VOC limit for waterborne sealers (which the CTG did not 
    include) and lowering the RACT VOC limit for topcoats. However, if the 
    EPA established BAC limits for topcoats and sealers based on waterborne 
    technology with the lowest VOC content, it would effectively eliminate 
    the availability of other coating technologies (e.g., high solids 
    coatings). Although a limit representing BAC would not necessarily need 
    to allow the manufacture and availability of other coating 
    technologies, some segments of the industry maintain that without these 
    coating technologies they cannot provide the product quality in demand. 
    For purposes of this analysis, the EPA believes that establishing a BAC 
    limit based on waterborne technology may have adverse economic impacts 
    on these industry segments, particularly those which have already 
    invested time and resources in converting their facilities to use the 
    high solids coating technology. Since this option may present 
    technological limits and potentially significant economic impacts, for 
    the purpose of this analysis, the EPA believes that BAC would not be 
    based on the use of waterborne coatings.
        The EPA further evaluated potential BAC limits in consideration of 
    high solids coating technology. High solids coating technology is 
    widely available throughout most segments of the wood furniture 
    industry and both high solids topcoats and sealers were determined to 
    be RACT with a VOC limit of 1.8 kg VOC/kg solids and 1.9 kg VOC/kg 
    solids respectively. For high solids conversion varnish topcoats and 
    vinyl sealers, the RACT limits are 2.0 and 2.3 kg VOC/kg solids 
    respectively. In estimating BAC, the EPA considered lowering the CTG 
    RACT limits for high solids technology coatings by adopting lower VOC 
    limits adopted in a similar State/local agency rule. However, in 
    evaluating these local VOC limits, it was discovered that the sources 
    being regulated typically did not include the diversity of facilities 
    and operating conditions that must be considered in establishing 
    national limits. Furthermore, since the adopted limits in the local 
    rule have not gone into effect, compliance with the limits has not been 
    demonstrated.
        The EPA, therefore, believes that the limits established as RACT 
    are representative of BAC with the possible exception of conversion 
    varnish topcoats. For high solids conversion varnish topcoats, the EPA 
    believes the BAC limit could be 1.8 kg VOC/kg solids as compared to the 
    RACT limit of 2.0 kg VOC/kg solids.
        The EPA believes that setting a BAC limit for topcoats equal to 1.8 
    kg VOC/kg solids is technically feasible. Although this limit would 
    effectively eliminate conventional topcoats, both the waterborne and 
    high solids coatings could be manufactured to meet this limit and would 
    allow the wood furniture manufacturing industry to produce the 
    diversity and quality of products demanded. In establishing a BAC limit 
    for sealers, the EPA believes that the high solids technology would not 
    be used as a basis. Setting the BAC limit for sealers at 1.9 kg VOC/kg 
    solids would effectively require facilities which converted to 
    waterborne topcoats to use high solid sealers since waterborne sealers 
    are not available for all applications. This may pose a problem for the 
    industry because the waterborne and high solids technologies are not 
    necessarily compatible and many segments of the industry may not be 
    able to meet their product quality requirements with a combination of 
    waterborne topcoats and high solids sealers. The industry maintains 
    that when using waterborne topcoats, it is necessary in some 
    applications to use conventional sealers to maintain product quality. 
    Therefore, to estimate a BAC limit for sealers, the EPA relied upon an 
    analysis of conventional sealers. Based on this analysis, the EPA 
    determined that a reasonable estimate of BAC for sealers is 3.9 kg VOC/
    kg solids.
        In summary, for purposes of this analysis, the EPA believes that 
    the following limits would be likely to represent BAC for wood 
    furniture coatings:
        Sealers--3.9 kg VOC/kg solids; and
        Topcoats--1.8 kg VOC/kg solids.
        The EPA requests comments on the determination that these limits 
    are representative of BAC. At this point, the EPA is not proposing 
    these limits as BAC for a national regulation; rather, the EPA is using 
    these estimated limits to compare the effectiveness of a wood furniture 
    CTG to a national regulation aimed at reducing VOC emissions in 
    nonattainment areas for the purpose of determining whether a CTG for 
    this
    
    [[Page 44678]]
    
    category is substantially as effective as a national regulation.
    
    D. Comparison of Effectiveness of Wood Furniture CTG With National 
    Regulation Based on BAC in Reducing VOC Emissions
    
        Based on EPA estimates of likely BAC limits incorporated into a 
    national regulation compared to the CTG, the EPA believes that a CTG 
    for wood furniture manufacturing coatings would achieve greater VOC 
    emission reductions in ozone nonattainment areas than a regulation 
    under section 183(e) of the CAA. As previously discussed, the EPA 
    estimates that the wood furniture CTG will reduce VOC emissions from 
    wood furniture manufacturing facilities located in ozone nonattainment 
    areas by 18,500 Mg/yr (20,400 tpy). Of all the wood furniture 
    facilities located in nonattainment areas, there are approximately 950 
    facilities, emitting on average 25 or more tons of VOC per year, which 
    would be affected by the CTG. Alternatively, a national regulation 
    would limit the VOC content of coatings available to all wood furniture 
    manufacturing facilities, including those emitting less than 25 tpy 
    VOC. Although a national regulation would affect the coatings supplied 
    to approximately 4,500 facilities located in ozone nonattainment areas, 
    most of these facilities are very small and do not use significant 
    quantities of finishing coatings materials. Based on the estimated BAC 
    limits and number of affected facilities, the EPA estimates that the 
    implementation of a national regulation would reduce VOC emissions from 
    wood furniture manufacturing facilities located in ozone nonattainment 
    areas by 14,234 Mg/yr (15,689 tpy).
        Although fewer facilities will be impacted by the CTG than by a 
    national regulation, the EPA estimates that the reductions per 
    facility, and, therefore, overall emission reductions, are greater with 
    the CTG than they are with a national regulation due to a variety of 
    factors. One factor, as discussed previously, is that the CTG includes 
    work practice standards which result in emission reductions that are 
    not obtainable with a national regulation. Another factor is that in 
    estimating the emission reductions from a national regulation, the EPA 
    assumed that all facilities would use topcoats and sealers with the 
    estimated BAC limits of 1.8 kg VOC/kg solids and 3.9 kg VOC/kg solids, 
    respectively. As discussed previously, the BAC limits represent the 
    lowest VOC limits that would be enforceable in a national regulation 
    for all of the coating technologies used in wood furniture 
    manufacturing. Arguably, the estimated BAC limits could be 
    subcategorized, as in the CTG, to specify particular coating limits for 
    the coatings supplied within the distinct coating technologies. 
    However, the EPA believes that this approach would not lead to further 
    VOC reductions from wood furniture coatings since, as previously 
    discussed, the supplied coatings are often altered prior to use. 
    However, individual facilities that can use waterborne technology will, 
    in practice, use waterborne topcoats below the BAC limits for all 
    coating technology topcoats. Likewise, facilities that can use high 
    solids technology will use high solid sealers below the BAC limit for 
    all coating technology sealers. Since the CTG RACT limits can be 
    enforced at individual facilities, emission reductions from the CTG 
    could account for the lowest limits in each distinct coating technology 
    used by specific sectors of the industry.
        This demonstrates the advantage of controlling emissions from the 
    coatings as applied with a CTG, versus the coating as supplied by the 
    manufacturer with a national BAC regulation. As discussed previously, 
    the estimated BAC limits are applicable to all the various topcoat and 
    sealer coating technologies supplied to the industry and, therefore, 
    reflect the lowest VOC limits achievable by all the coating 
    technologies. The CTG, however, can establish coating limits for 
    particular application processes that can use a single coating 
    technology and still produce quality products. Since the limits in a 
    CTG are applicable to the coatings as applied, and regulators can 
    inspect wood furniture manufacturing facilities for compliance, the EPA 
    believes that a CTG is the most effective way to control emissions from 
    the wood furniture coatings. Therefore, based on the emission reduction 
    estimates, and the limited applicability of a national BAC regulation 
    versus a CTG, the EPA believes that a CTG will be more effective in 
    reducing VOC emissions from wood furniture manufacturing coatings in 
    ozone nonattainment areas, and that a CTG may be issued in lieu of a 
    national regulation under section 183(e)(3)(C).
    
    III. Aerospace Coatings
    
    A. Factors to Consider Regarding the Effectiveness of CTG Compared to 
    National Regulation
    
        In evaluating control strategies for VOC emissions from aerospace 
    coatings, the EPA identified how these coatings are used by the 
    aerospace industry and sources of significant VOC emissions. The 
    aerospace industry includes all manufacturing facilities that produce 
    aerospace vehicles and/or components thereof and all facilities that 
    rework or repair aerospace vehicles. Aerospace facilities can be 
    divided into four market segments: Commercial original equipment 
    manufacturers (OEM), commercial rework facilities, military OEM, and 
    military rework facilities. The commercial OEM segment of the market 
    includes the manufacture of commercial aircraft as well as the 
    production of business and private aircraft. The military OEM segment 
    of the market includes military installations and defense contractors 
    that manufacture aircraft, missiles, rockets, satellites, and 
    spacecraft. Rework facilities, both commercial and military, may rework 
    many of the above end-products. The most significant VOC emissions from 
    the aerospace manufacturing and rework operations are the coatings 
    themselves as well as cleaning operations.
        Most aerospace coatings are solvent-borne; the most common VOC 
    solvents are toluene, xylene, methyl ethyl ketone, and methyl isobutyl 
    ketone. The VOC content varies for the various coating categories and 
    specific coating requirements. Coatings are applied to the surface of a 
    part to form a decorative or functional solid film. The most widely 
    used coatings fit into the broad categories of nonspecialized primers 
    and topcoats. However, in addition to these two general categories, 
    there are numerous specialty coatings that provide additional 
    performance characteristics such as temperature, fluid, or fire 
    resistance; flexibility; substrate compatibility; antireflection; 
    temporary protection or marking; sealing; adhesively joining 
    substrates; enhanced corrosion protection; or compatibility with a 
    space environment. Each coating is unique due to individual performance 
    standards particular to a specific design. The quality of the coatings 
    is critical to the airworthiness and safety of the final product. 
    Therefore, aerospace coating specifications are dictated by the Federal 
    Aviation Administration, the Department of Defense, and specific 
    customer requirements.
        A wide variety of solvents, including some of those listed above, 
    are also used for cleaning operations in the aerospace industry. 
    Aerospace components are cleaned frequently during manufacturing to 
    remove contaminants such as dirt, grease, and oil, and to prepare the 
    components for the next operation. Application equipment and work 
    spaces are also cleaned with
    
    [[Page 44679]]
    
    solvents resulting in potentially significant emissions.
        The related VOC emissions from the aerospace industry are, 
    therefore, from the use of the coatings and from the use of solvent in 
    cleaning operations. Because VOC emissions in this industry are due to 
    a variety of different sources in the manufacturing process, including 
    the coatings as applied, a national regulation may be of limited 
    effectiveness in reducing VOC emissions from aerospace coatings. This 
    is primarily due to the limit of the EPA's authority under section 
    183(e), as previously discussed, to regulate only the aerospace 
    coatings as supplied to the industry. Since, in practice, the supplied 
    aerospace coatings are often altered prior to application by adding VOC 
    solvents, the ``as-applied'' VOC content of the coating ends up being 
    greater than the ``as-supplied'' VOC content. For this reason, a CTG 
    could be as effective, if not more effective, than a national 
    regulation. For the aerospace industry, consisting of facilities which 
    could be inspected for compliance with State RACT rules, a CTG could 
    provide limits for the coatings as applied and also achieve VOC 
    emission reductions from the implementation of work practice standards 
    for the associated cleaning operations.
    
    B. Overview of Recently Proposed Aerospace CTG and Expected Emissions 
    Reductions
    
        On October 29, 1996 (61 FR 55842), a draft CTG for aerospace 
    manufacturing and rework facilities was issued pursuant to section 
    183(b)(3) for public review along with a supplemental notice to the 
    national emission standard for hazardous air pollutants (NESHAP). The 
    EPA is not seeking comment on the content or issuance of that draft 
    aerospace CTG with this notice. However, the following discussion 
    refers to that CTG as an estimate of the potential emission reductions 
    obtainable with a CTG for the aerospace industry. This discussion 
    serves as the basis for the determination required under section 183(e) 
    as to whether a CTG would be substantially as effective as a 
    regulation.
        The draft aerospace CTG applies to aerospace manufacturing and 
    rework facilities which are considered major VOC sources located in 
    ozone nonattainment areas that emit more than 25 tpy of VOC (10 tpy for 
    sources located in extreme ozone nonattainment areas). The type and 
    level of VOC control identified in the draft CTG is based on BACM. The 
    draft CTG emission limits were established in conjunction with the 
    development of maximum achievable control technology for the NESHAP. 
    This involved extensive data gathering and evaluation to identify the 
    best controls for the industry in consideration of advanced technology 
    and feasibility. The VOC content limits of 350 grams per liter (g/l) 
    (2.9 pounds per gallon (lb/gal)) (less water and exempt solvents) and 
    420 g/l (3.5 lb/gal) (less water and exempt solvents) were established 
    for primers and topcoats respectively. The VOC content limits of 622 g/
    l (5.2 lb/gal) (less water and exempt solvents) and 160 g/l (1.3 lb/
    gal) (less water and exempt solvents) were established for Type I and 
    Type II chemical milling maskants respectively. Additional VOC limits, 
    as presented in table 3, were established for various specialty coating 
    categories. The draft CTG also includes a requirement that facilities 
    use specific types of application equipment (or techniques) for 
    applying primers and topcoats and follow work practice guidelines for 
    solvent cleaning operations, housekeeping measures, hand-wipe cleaning, 
    flush cleaning, and spray gun cleaning.
        The EPA estimates that approximately 64 percent of aerospace 
    facilities, or 1,836 facilities, are located in ozone nonattainment 
    areas and are expected to be subject to the aerospace CTG resulting in 
    VOC emission reductions of 3,889 Mg/yr (4,288 tpy). Of the 3,889 Mg/yr 
    (4,288 tpy), 2,721 Mg/yr (3,000 tpy) are expected to result from the 
    VOC content limits of the applied coatings with the remaining 
    reductions from the equipment and work practice standards.
        As mentioned earlier, a CTG issued pursuant to section 183(e) would 
    be based on RACT. The EPA believes that for aerospace coatings, RACT 
    and BACM are identical. While typically BACM (``best'') implies more 
    stringent control than RACT (``reasonable''), the EPA recognizes that 
    there may be instances when there is such a limited range of controls 
    for a specified industry or industry process that these two levels of 
    control may be identical. The aerospace coating industry is such an 
    instance. Thus, the EPA believes that it is appropriate to rely on 
    these estimated emission reductions, which reflect both BACM and RACT, 
    for the purpose of comparing the effectiveness of a CTG to a regulation 
    under section 183(e).
    
    C. Estimate of BAC for Aerospace Coatings
    
        As discussed previously, the EPA must determine whether a CTG would 
    be substantially as effective as a regulation based on BAC. In making 
    this determination, the EPA has prepared a likely estimate of the 
    emission reductions that could be achieved with a BAC-based regulation. 
    Although the EPA prepared such an estimate, it is important to note 
    that this is only an estimate of what emission reductions might be 
    achieved with a BAC-based regulation. If the EPA were to proceed with 
    the development of a national BAC regulation, it is possible that the 
    level of VOC reductions resulting from a BAC-based regulation may 
    differ from the estimates calculated today.
        In estimating BAC for aerospace coatings, the EPA evaluated the 
    data and information used to establish the VOC emission controls in the 
    aerospace CTG issued pursuant to section 183(b) which is based on BACM. 
    Although section 183(b) does not specifically define BACM, the VOC 
    limits established under this section for primers and topcoats 
    represent the best performing sources in the industry. Because there is 
    no distinct definition of BACM, the EPA believes that limits based on 
    BACM are similar, if not equivalent, to limits that would be 
    established under BAC as required in section 183(e). Thus, the EPA 
    believes it is reasonable to rely on the limits established under BACM 
    as representative of BAC limits for the purpose of comparing the 
    effectiveness of an aerospace CTG to a national regulation in reducing 
    VOC emissions in ozone nonattainment areas. In this notice, the EPA is 
    not proposing these limits as BAC for the purpose of issuing a national 
    regulation. Rather, the EPA is using these estimated limits to compare 
    the effectiveness of an aerospace CTG to a national regulation aimed at 
    reducing VOC emissions in nonattainment areas for the purpose of 
    determining whether a CTG for this category is substantially as 
    effective as a regulation.
    
    D. Comparison of Effectiveness of Aerospace CTG With National 
    Regulation Based on BAC in Reducing VOC Emissions
    
        As discussed previously, the EPA estimated that the aerospace CTG 
    will reduce VOC emissions from aerospace manufacturing and rework 
    facilities located in ozone nonattainment areas by 3,889 Mg/yr (4,288 
    tpy). Alternatively, the EPA estimates that the implementation of a 
    national regulation, based on the likely BAC limits and the number of 
    affected facilities, would reduce VOC emissions from aerospace 
    manufacturing and rework facilities located in ozone nonattainment 
    areas by 2,721 Mg/yr (3,000 tpy). The number of facilities in ozone 
    nonattainment areas affected by a national regulation is equal to the 
    number of facilities affected by a CTG. However, the emission 
    reductions
    
    [[Page 44680]]
    
    from a CTG are greater due to the inclusion of equipment and work 
    practice standards related to the coating operations, which a 
    regulation under section 183(e) would not include.
        In addition, the EPA believes that a CTG would be more effective 
    because it is applicable to aerospace coatings as applied, whereas a 
    national regulation is limited to coatings as supplied. The EPA 
    believes that for aerospace coatings, supplied coatings are often 
    altered by thinning prior to use. Because the EPA does not have 
    authority under section 183(e) to regulate end-users, a national 
    regulation would not be able to prohibit such activities and the actual 
    emission reductions from a regulation may be considerably less if data 
    were available to adjust for thinning emissions. For the foregoing 
    reasons, the EPA believes that a CTG would be more effective in 
    reducing VOC emissions from aerospace coatings in ozone nonattainment 
    areas, and that a CTG may be issued in lieu of a national regulation 
    under section 183(e)(3)(C).
    
    IV. Shipbuilding and Ship Repair Coatings
    
    A. Factors To Consider Regarding the Effectiveness of CTG Compared to a 
    National Regulation
    
        In evaluating control strategies for VOC emissions from 
    shipbuilding and ship repair coatings, the EPA identified the coatings 
    used by the shipbuilding and ship repair industry and the significant 
    sources of VOC emissions in that industry. The shipbuilding and ship 
    repair industry consists of establishments that build and repair ships, 
    and includes operations such as repainting, conversions, and 
    alterations of ships.
        Marine coatings are vital for protecting the ship from corrosive 
    and biotic attacks from the ship's environment. A typical coating 
    system consists of (1) a thin primer coat that provides initial 
    corrosion (oxidation) protection and promotes adhesion of the 
    subsequent coating, (2) one or more intermediate coats that physically 
    protect(s) the primer and may provide additional or special properties, 
    and (3) a topcoat that provides long-term protection for both the 
    substrate and the underlying coatings.
        Marine coatings are very complex and serve specific functions such 
    as corrosion protection, heat/fire resistance, and antifouling (used to 
    prevent the settlement and growth of marine organisms on the ship's 
    underwater hull). Specific coating selections are based on the intended 
    use of the ship, ship activity, travel routes, desired time between 
    paintings (service life), the aesthetic desires of the ship owner or 
    commanding officer, and fuel costs. Different coatings are used for 
    these purposes, and each may use one or more solvents (or solvent 
    blends) in different concentrations. Ship owners and paint formulators 
    specify the paints and coating thicknesses to be applied at shipyards.
        Solvents are frequently added to coatings by the applicator just 
    prior to application to adjust viscosity. Thinning of coatings is done 
    at most shipyards (regardless of size) even though the paint 
    manufacturers typically state it is usually unnecessary. Weather 
    conditions play a big part in thinning, as do application processes and 
    desired drying times. Solvents are also widely used for equipment 
    cleaning which results in significant VOC emissions. Because VOC 
    emissions in this industry are due to a variety of different sources in 
    the manufacturing process, including the coatings as applied, a 
    national regulation may be of limited effectiveness in reducing VOC 
    emissions from shipbuilding and ship repair coatings. This is primarily 
    due to the limit of the EPA's authority under section 183(e), as 
    previously discussed, to regulate only the shipbuilding and ship repair 
    coatings as supplied to the industry. Because, in practice, the 
    supplied coatings are often thinned prior to application by adding VOC 
    solvents, the ``as-applied'' VOC content of the coating ends up being 
    greater than the ``as-supplied'' VOC content. For this reason a CTG 
    could be as effective, if not more effective, than a national 
    regulation. For the shipbuilding and ship repair industry, consisting 
    of facilities which could be inspected for compliance with State RACT 
    rules, a CTG could provide limits for the coatings as applied and also 
    achieve VOC emission reductions from the implementation of work 
    practice standards for the associated cleaning operations.
    
    B. Overview of Shipbuilding and Ship Repair CTG and Expected Emissions 
    Reductions
    
        Under a separate Federal Register notice, the EPA recently released 
    a final CTG for shipbuilding and ship repair operations (surface 
    coating) (61 FR 44050, August 27, 1996) pursuant to section 183(b)(4) 
    of the CAA. The EPA is not seeking comment on the content, or issuance, 
    of that shipbuilding and ship repair CTG as it was issued independently 
    of any requirements of section 183(e). However, for the purpose of 
    determining whether a CTG would be substantially as effective as a 
    rulemaking as required under section 183(e), the following discussion 
    refers to that CTG as an estimate of the potential emission reductions 
    obtainable with a CTG for the shipbuilding and ship repair industry.
        The shipbuilding and ship repair CTG applies to shipbuilding and 
    ship repair facilities (i.e., shipyards) which are, or have the 
    potential to become, major VOC sources in ozone nonattainment areas. 
    The CTG for shipbuilding and repair operations (surface coating) was 
    developed in parallel with the NESHAP for this same industry. In 
    establishing the level of control for surface coating operations in the 
    shipbuilding and ship repair industry, the EPA relied on BACM as 
    proposed in the Federal Register on December 6, 1994 (59 FR 62681). The 
    type and level of VOC control identified as BACM is based on the marine 
    coating VOC limits being used in California (with some exceptions and 
    modifications). Table 4 presents the various coating categories with 
    the maximum ``as-applied'' VOC content allowed for each. The CTG also 
    includes additional work practice guidelines that apply to solvent 
    cleaning operations and housekeeping measures. The EPA estimates that 
    approximately 100 shipyards will be subject to State regulations based 
    on the CTG. The emission limits and work practice standards are 
    expected to reduce VOC emissions from these shipyards by 1,239 Mg/yr 
    (1,366 tpy). As mentioned earlier, a CTG issued pursuant to section 
    183(e) would be based on RACT. The EPA believes that for shipbuilding 
    and ship repair coatings RACT and BACM are identical. While typically 
    BACM (``best'') implies more stringent control than RACT 
    (``reasonable''), the shipbuilding industry, as in the case of the 
    aerospace industry, presents such a limited range of controls for a 
    specified industry process that these two levels of control may be 
    identical. Thus, the EPA believes that it is appropriate to rely on 
    these already existing estimated emission reductions, which reflect 
    both BACM and RACT, for the purpose of comparing the effectiveness of a 
    CTG to a regulation under section 183(e).
    
    C. Estimate of BAC for Shipbuilding and Ship Repair Coatings
    
        As discussed previously, the EPA must determine whether a CTG would 
    be substantially as effective as a regulation based on BAC. In making 
    this determination, the EPA has prepared a likely estimate of the 
    emission reductions that could be achieved with a BAC-based regulation. 
    Although the EPA prepared such an estimate, it is important to note 
    that this is only an
    
    [[Page 44681]]
    
    estimate of what emission reductions might be achieved with a BAC-based 
    regulation. If the EPA were to proceed with the development of a 
    national BAC regulation, it is possible that the BAC-based regulation 
    may differ from the estimates calculated today.
        The EPA believes the use of lower-VOC coatings is the only 
    technologically and economically feasible level of control for 
    shipbuilding and ship repair coatings that the EPA can establish on a 
    category-wide basis. In estimating BAC for shipbuilding and ship repair 
    coatings, the EPA evaluated the work completed to establish the 
    emission controls in the shipbuilding and ship repair CTG issued 
    pursuant to section 183(b) which is based on BACM. Although section 
    183(b) does not specifically define BACM, the VOC limits for 
    shipbuilding and ship repair coatings established in the CTG and 
    presented in table 4 represent the best performing sources in the 
    industry. Because there is no distinct definition, the EPA believes 
    that limits based on BACM are similar, if not equivalent, to limits 
    that would be established under BAC as required in section 183(e). 
    Thus, the EPA believes it is reasonable to rely on the limits 
    established under BACM as representative of BAC limits for the purpose 
    of comparing the effectiveness of a shipbuilding and ship repair CTG to 
    a national regulation in reducing VOC emissions in ozone nonattainment 
    areas. In this notice, the EPA is not proposing these limits as BAC for 
    the purpose of issuing a national regulation.
    
    D. Comparison of Effectiveness of Shipbuilding and Ship Repair CTG With 
    National Regulation Based on BAC in Reducing VOC Emissions
    
        Based on the CTG issued pursuant to section 183(b), the EPA 
    estimated that the shipbuilding and ship repair CTG will reduce VOC 
    emissions from shipyards located in ozone nonattainment areas by 1,239 
    Mg/yr (1,366 tpy). Of the approximately 187 shipyards located in ozone 
    nonattainment areas, there are approximately 100 facilities which emit 
    25 tpy or more of VOC (10 tpy for facilities in extreme nonattainment 
    areas) and will, therefore, be subject to State regulations based on 
    the CTG. Alternatively, a national regulation would limit the VOC 
    content of coatings available to all 187 shipyards located in ozone 
    nonattainment areas. However, most of these facilities are very small, 
    such as barge yards with less than 15 employees, and do not use 
    significant quantities of marine coatings which result in significant 
    VOC emissions. The EPA estimates that the implementation of a national 
    regulation, based on the estimated BAC limits and the estimated number 
    of affected facilities, would reduce VOC emissions from shipyards 
    located in ozone nonattainment areas by 1,605 Mg/yr (1,770 tpy).
        Although the estimated emission reductions from a national 
    regulation (1,605 Mg/yr (1,770 tpy)) are greater than the estimated 
    emission reductions from a CTG (1,239 Mg/yr (1,366 tpy)), the EPA 
    believes that a CTG would be more effective because it is applicable to 
    shipbuilding and ship repair coatings as applied, whereas a national 
    regulation is limited to coatings as supplied. The EPA believes that 
    many shipyard coaters routinely add thinning solvent to coatings prior 
    to application, increasing the VOC content of the coatings as applied. 
    Because the EPA does not have authority under section 183(e) to 
    regulate end-users, a national regulation would not be able to prohibit 
    such activities and the actual emission reductions estimates from a 
    regulation may be considerably less if data were available to adjust 
    for thinning emissions. A CTG could effectively limit emissions from 
    ``as-applied'' coatings which take into account any thinning solvents 
    added to the supplied coating prior to application. For the foregoing 
    reasons, the EPA believes that a CTG would be substantially as 
    effective in reducing VOC emissions from shipbuilding and ship repair 
    coatings in ozone nonattainment areas, and that a CTG may be issued in 
    lieu of a national regulation under section 183(e)(3)(C).
    
    V. Proposed Determination
    
        Based on the above analyses, the EPA has determined that the 
    recently finalized wood furniture CTG and the draft aerospace CTG being 
    developed will reduce VOC emissions in ozone nonattainment areas by 
    18,500 Mg/yr (20,400 tpy) and 3,889 Mg/yr (4,288 tpy), respectively. 
    These estimated reductions from the CTG are greater than the estimated 
    reductions in ozone nonattainment areas from a national regulation for 
    wood furniture coatings and aerospace coatings, 14,234 Mg/yr (15,689 
    tpy) and 2,721 Mg/yr (3,000 tpy), respectively. Because the CTG for the 
    wood furniture and aerospace industries are likely to be more effective 
    in reducing VOC emissions than national regulations developed under 
    section 183(e), the EPA has determined that a CTG is substantially as 
    effective as a national regulation in reducing VOC emissions and, 
    therefore, may issue CTG in lieu of national regulations for wood 
    furniture and aerospace coatings under section 183(e).
        In the case of shipbuilding and ship repair coatings, the EPA 
    believes that the emission reductions obtainable through a CTG, 
    recommending limits on ``as-applied'' coatings, would be as much as 
    reductions achieved by a national regulation setting limits for ``as-
    supplied'' coatings. Therefore, the EPA has determined that a CTG is 
    substantially as effective as a national regulation and may issue a CTG 
    in lieu of a national regulation for shipbuilding and ship repair 
    coatings under section 183(e).
    
    VI. Cost-Effectiveness
    
        The following information may be of interest to readers of todays 
    notice, and is presented here solely for informational purposes. The 
    cost-effectiveness estimates for the wood furniture, aerospace, and 
    shipbuilding and ship repair CTG were calculated under separate actions 
    during the development of the CTG. The previously issued wood furniture 
    CTG has a cost-effectiveness of $1089/Mg. The cost-effectiveness of the 
    aerospace and shipbuilding and ship repair CTG cannot be precisely 
    calculated because of the interrelationship of costs and emission 
    reductions with the concomitant NESHAP for these standards. The final 
    shipbuilding and ship repair CTG estimated a cost effectiveness of 
    $846/Mg; and the draft aerospace CTG did not quantify the additional 
    costs resulting from the CTG, but concluded that they are negligible.
    
    VII. Solicitation of Comments
    
        The Administrator welcomes comments from interested persons on the 
    proposed determination that RACT-based CTG would be substantially as 
    effective as BAC-based national regulations for the wood furniture 
    manufacturing, aerospace, and shipbuilding and ship repair (coatings) 
    industries. The Administrator is specifically requesting factual 
    information that may support either the approach taken or an 
    alternative approach. To receive proper consideration, documentation or 
    data should be provided to support the comments.
    
    VIII. Administrative Requirements
    
    A. Public Hearing
    
        A public hearing will be held, if requested, to provide opportunity 
    for interested persons to make oral presentations regarding the 
    proposed determinations in accordance with section 307(d)(5) of the 
    CAA. Persons wishing to make an oral presentation on the EPA's proposed 
    determinations that
    
    [[Page 44682]]
    
    CTG's may be issued in lieu of regulations for wood furniture, 
    aerospace, and shipbuilding and ship repair coatings should contact the 
    EPA at the address given in the ADDRESSES section of this preamble. 
    Oral presentations will be limited to 15 minutes each. Any member of 
    the public may file a written statement before, during, or within 30 
    days after the hearing. Written statements should be addressed to the 
    Air and Radiation Docket address given in the ADDRESSES section of this 
    preamble, and should refer to Docket No. A-96-23.
        A verbatim transcript of the hearing and any written statements 
    will be available for public inspection and copying during normal 
    working hours at the EPA's Air and Radiation Docket in Washington, DC 
    (see ADDRESSES section of this preamble).
    
    B. Docket
    
        The docket is an organized and complete file of all the information 
    submitted to or otherwise considered by the EPA in the development of 
    this proposed determination. The principal purposes of the docket are: 
    (1) To allow interested parties to readily identify and locate 
    documents so that they can intelligently and effectively participate in 
    the decision making process, and (2) to serve as the record in case of 
    judicial review (section 307(d)(7)(A) of the CAA).
    
    C. Paperwork Reduction Act
    
        This action does not impose an information collection burden under 
    the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501, et seq.
    
    D. Administrative Designation and Regulatory Analysis
    
        Under Executive Order 12866 (58 FR 51735, October 4, 1993), the EPA 
    must determine whether the regulatory action is ``significant'' and 
    therefore subject to Office of Management and Budget (OMB) review and 
    the requirements of the Executive Order. The Order defines 
    ``significant regulatory action'' as one that is likely to result in a 
    regulation 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 obligations of 
    recipients thereof.
        (4) Raise novel legal or policy issues arising out of legal 
    mandates, the Presidents's priorities, or the principles set forth in 
    the Executive Order.
        Pursuant to the terms of the Executive Order, OMB has notified the 
    EPA that it considers this a ``significant regulatory action'' within 
    the meaning of the executive order. The EPA has submitted this action 
    to OMB for review. Changes made in response to OMB suggestions or 
    recommendations are documented in the docket (see ADDRESSES).
    
    E. Regulatory Flexibility
    
        Because today's notice is not a rulemaking, the EPA has not 
    prepared a regulatory flexibility analysis pursuant to the Regulatory 
    Flexibility Act (Public Law 96-354, September 19, 1980).
    
    F. Unfunded Mandates Act
    
        Because today's notice is not a rulemaking, the requirements of the 
    Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) do not apply to 
    this action.
    
                          Table 1.--CTG Emission Limits                     
    ------------------------------------------------------------------------
                                                                   Emission 
                                                                   limit, kg
                    Reference control technology                    VOC/kg  
                                                                    solids  
    ------------------------------------------------------------------------
    Waterborne:                                                             
      --Topcoats................................................         0.8
      --Sealer..................................................   No limit.
    High solids:                                                            
      --Sealer..................................................         1.9
      --Topcoat.................................................         1.8
      --Vinyl sealers...........................................         2.3
      --Conversion varnish topcoats.............................         2.0
    ------------------------------------------------------------------------
    
    
                      Table 2.--CTG Work Practice Standards                 
    ------------------------------------------------------------------------
              Emission source                       Work practice           
    ------------------------------------------------------------------------
                              Finishing operations                          
    ------------------------------------------------------------------------
    Transfer equipment leaks..........  Develop written inspection and      
                                         maintenance plan to address and    
                                         prevent leaks. Minimum inspection  
                                         frequency of 1/month.              
    Storage containers, including       Keep covered when not in use.       
     mixing equipment.                                                      
    Application equipment.............  Discontinue use of conventional air 
                                         spray guns.a                       
    ------------------------------------------------------------------------
                               Cleaning Operations                          
    ------------------------------------------------------------------------
    Gun/line cleaning.................  Collect cleaning solvent into a     
                                         closed container; cover all        
                                         containers when not in use.        
    Spray booth cleaning..............  Limit use of organic solvents.      
    Washoff/general cleaning..........  Keep washoff tank covered when not  
                                         in use;                            
                                        Minimize dripping by tilting and/or 
                                         rotating the part to drain as much 
                                         solvent as possible and allowing   
                                         sufficient dry time;               
                                        Maintain a log of the quantity and  
                                         type of solvent used for washoff   
                                         and cleaning;                      
                                        Maintain a log of the number of     
                                         pieces washed off and the reason   
                                         for the washoff.                   
    ------------------------------------------------------------------------
                                 Miscellaneous                              
    ------------------------------------------------------------------------
    Operator training.................  Train all operators in proper       
                                         application, cleanup, and equipment
                                         use.                               
    Implementation plan...............  Develop a plan to implement work    
                                         practice standards and maintain    
                                         onsite.                            
    ------------------------------------------------------------------------
    a Air guns will be allowed only in the following instances:             
    --When they are used in conjunction with coatings that emit less than   
      1.0 kg VOC per kg of solids used;                                     
    --Touch up and repair under limited conditions;                         
    --When spray is automated;                                              
    --When add-on controls are employed;                                    
    --If the cumulative application is less than five.                      
    
    
    [[Page 44683]]
    
    
        Table 3.--Aerospace Specialty Coatings VOC Content Limits (g/l)*    
    ------------------------------------------------------------------------
                            Coating type                             Limit  
    ------------------------------------------------------------------------
    Ablative Coating............................................         600
    Adhesion Promoter...........................................         890
        Adhesive Bonding Primer:                                            
            Cured at 250 deg.F or below.........................         850
            Cured above 250 deg.F...............................       1,030
        Adhesives:                                                          
            Commercial Interior Adhesive........................         760
            Cyanoacrylate Adhesive..............................       1,020
            Fuel Tank Adhesive..................................         620
            Nonstructural Adhesive..............................         360
            Rocket Motor Bonding Adhesive.......................         890
            Rubber-based Adhesive...............................         850
            Structural Autoclavable Adhesive....................          60
            Structural Nonautoclavable Adhesive.................         850
    Antichafe Coating...........................................         660
    Chemical Agent-Resistant Coating............................         550
    Clear Coating...............................................         720
    Commercial Exterior Aerodynamic Structure Primer............         650
    Compatible Substrate Primer.................................         780
    Corrosion Prevention Compound...............................         710
    Cryogenic Flexible Primer...................................         645
    Cryoprotective Coating......................................         600
    Electric or Radiation-Effect Coating........................         800
    Electrostatic Discharge and Electromagnetic Interference                
     (EMI) Coating..............................................         800
    Elevated Temperature Skydrol Resistant Commercial Primer....         740
    Epoxy Polyamide Topcoat.....................................         660
    Fire-Resistant (interior) Coating...........................         800
    Flexible Primer.............................................         640
        Flight-Test Coating:                                                
            Missile or Single Use Aircraft......................         420
            All Other...........................................         840
    Fuel-Tank Coating...........................................         720
    High-Temperature Coating....................................         850
    Insulation Covering.........................................         740
    Intermediate Release Coating................................         750
    Lacquer.....................................................         830
        Maskants:                                                           
            Bonding Maskant.....................................       1,230
            Critical Use and Line Sealer Maskant................       1,020
    Seal Coat Maskant...........................................       1,230
    Metallized Epoxy Coating....................................         740
    Mold Release................................................         780
    Optical Anti-Reflective Coating.............................         750
    Part Marking Coating........................................         850
    Pretreatment Coating........................................         780
    Rain Erosion-Resistant Coating..............................         850
    Rocket Motor Nozzle Coating.................................         660
    Scale Inhibitor.............................................         880
    Screen Print Ink............................................         840
        Sealant                                                             
            Extrudable/Rollable/Brushable Sealants..............         240
            Sprayable Sealants..................................         600
    Self-priming Topcoat........................................         420
    Silicone Insulation Material................................         850
    Solid Film Lubricant........................................         880
    Specialized Function Coating................................         890
    Temporary Protective Coating................................         320
    Thermal Control Coating.....................................         800
    Wet Fastener Installation Coating...........................         675
    Wing Coating................................................         850
    ------------------------------------------------------------------------
    * Grams per liter VOC (g/l) means a weight of VOC per combined volume of
      VOC and coating solids, less water and exempt compounds.              
    
    
    [[Page 44684]]
    
    
                                        Table 4.--VOC Limits for Marine Coatings                                    
    ----------------------------------------------------------------------------------------------------------------
                                                                                   VOC limits a,b                   
                                                              ------------------------------------------------------
                                                                 Grams/liter            Grams/liter solids c        
                         Coating category                      coating (minus --------------------------------------
                                                                  water and                                         
                                                                   exempt      t4.5 deg.C   t<4.5 deg.c="">d
                                                                 compounds)                                         
    ----------------------------------------------------------------------------------------------------------------
    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
            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 to demonstrate     
      compliance.                                                                                                   
    b 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.                                                                            
    c VOC limits expressed in units of mass of VOC per volume of solids were derived from the VOC limits expressed  
      in units of mass of VOC per volume of coating assuming the coatings contain no water or exempt compounds and  
      that the volumes of all components with a coating are additive.                                               
    d These limits apply during cold-weather time periods (i.e., temperatures below 4.5  deg.C). Cold-weather       
      allowances are not given to coatings in categories that permit less than 40 percent solids (nonvolatiles)     
      content by volume. Such coatings are subject to the same limits regardless of weather.                        
    
        Dated: August 15, 1997.
    Carol M. Browner,
    Administrator.
    [FR Doc. 97-22363 Filed 8-21-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
08/22/1997
Department:
Environmental Protection Agency
Entry Type:
Notice
Action:
Notice of proposed determination.
Document Number:
97-22363
Pages:
44672-44684 (13 pages)
Docket Numbers:
FRL-5878-9
PDF File:
97-22363.pdf