State of California AIR RESOURCES BOARD Pacific Ballroom Holiday Inn - Embarcadero 1355 No. Harbor Drive San Diego, CA July 26, 1978 10:00 a.m. AGENDA Page 78-13-1 Approval of Minutes of June 28, 1978 Board Meeting I 78-13-2 Public Hearing to Consider the Adoption of a Schedule 001 of Fees for Source Testing and Other Special Testing 78-13-3 Consideration of Model Rule for the Control of Volatile 055 Organic Emissions from Can and Coil Coating Operations 78-13-4 Status Report on Memorandum of Understanding Between 152 the Department of Transportation and the Air Resources Board Regarding Air Quality Planning and Transportation Planning 78-13-5 Other Business - a. Executive Session - Personnel and Litigation b. Research Proposals ITEM NO.: 78-13-2 Public Hearing to Consider Adoption of a Schedule of Fees for Source Testing and Other Special Testing RECOMMENDATION Adopt Resolution 78-42 thereby adding a schedule of fees for source testing and other special testing by the Board staff, together with procedures applying thereto, into Title 17, California Administrative Code and directing the Executive Officer to recommend that local districts with source testing and other special testing capabilities also adopt a schedule of fees for such testing. SUMMARY Source testing and other special tests are necessary techniques for determining whether emission sources are operating in compliance with applicable emission and other limitations, especially those governing non-visible emissions, and for verifying the accuracy of in-stack monitors operated by emission sources. Source testing is also valuable as a means of evaluating the performance of emission control equipment and techniques. Section 41510 of the Health and Safety Code authorizes the Executive Officer of the Board to secure samples of emissions from air pollution emission sources. Section 41512 of the Health and Safety Code gives the Board the discretion to establish a schedule of fees not exceeding its costs associated with securing such samples. To date, the staff has been funding its source testing and other special testing operations from monies included in the annual budget allotments to the Board. The costs of these operations have included a basic source test cost of 1,270 dollars per test, plus additional, pollutant- specific test costs ranging from 25 dollars per sample to 335 dollars per sample, and approximately 1,220 dollars for each day of continuous source testing. In addition, costs for special testing such as Reid vapor pressure testing of petroleum distillates, ambient air monitoring for vinyl chloride, visible emission evaluations, etc., range from one dollar and 25 cents to 1,935 dollars. The adoption of a schedule of fees for source testing and other special testing by the Board would shift the costs of its source testing and other special testing from general tax revenues to the air pollution emission source. APPENDICES: Appendix A - Health and Safety Code Sections Appendix B - Air Resources Board Calculation of Recoverable Costs for Source Testing Services and Other Special Testing Appendix C - Proposed Amendments to Title 17 ITEM NO.: 78-13-3 Consideration of a Proposed Model Rule for the Control of Volatile Organic Compounds from Can and Coil Coating Operations. RECOMMENDATION Approve the model rule and direct the staff to transmit it to the South Coast Air Quality Management District, the Bay Area Air Pollution Control District, the San Diego County Air Pollution Control District, and air pollution control districts in the Sacramento and San Joaquin Valley Air Basins. SUMMARY The staff of the Air Resources Board has identified the need to reduce organic emissions from sources in a number of air basins, where the ambient air quality standard for oxidant has been exceeded on numerous occasions. Can and coil coatings are those coatings applied to the internal and external surfaces of containers, pails, drums, collapsible tubes, and other containers; and to flat stock and coiled metal for metal protection and to enhance the esthetics. The major portion of can and coil coating facilities are located in the State's urban areas, in particular in the five air pollution control districts mentioned. The application of can and coil coatings generates organic compounc emissions of 34.2 tons per day. The proposed model rule would control emissions largely through the use of waterborne coatings. At least one can coating facility in California is using waterborne coatings exclusively, and a substantial portion of others have either committed a production line or are experimenting with the commercial application of waterborne systems. Waterborne coatings replacing the solvent-borne coatings in the can coating categories responsible for the major portion of the emissions are either commercially availabe or are in the final stages laboratory evaluation. Not only do waterborne coatings reduce emissions, but in complying with the proposed model rule permit the shutdown of afterburners resulting in a considerable savings in natural gas. The staff estimates overall energy savings from the application of the proposed model rule to be equivalent to 500,000 barrels of fuel oil per year. Other methods for emission control are the use of high-solids coatings and/or incinerators. Incinerators operating with an efficient volatile emissions capture system can reduce intake emissions by approximately 90 percent. The use of incinerators to control emissions from coil coating lines is substantially more efficient than for can coating lines. In fact, staff estimates that the capture system for coil coating operations is about 85 percent efficient and currently reduces emissions to below the limits established by the proposed model rule. The staff estimates that the can and coil coating industries could reduce emissions by 22 tons per day if the proposed model rule is adopted. The cost-effectiveness of the emission control options ranges from no change in cost to a savings of $0.18 per pound of reduced emissions. Table of Contents Page I. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 II. Conclusions and Recommendations . . . . . . . . . . . . . . . . . . .5 A. Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . .5 B. Recommendations. . . . . . . . . . . . . . . . . . . . . . . . .8 III. Discussion of Model Rule. . . . . . . . . . . . . . . . . . . . . . 14 IV. Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 A. Description of the Can and Coil Regulation Program . . . . . . 15 B. Overview of the Industries . . . . . . . . . . . . . . . . . . 17 1. Can Coaters . . . . . . . . . . . . . . . . . . . . . . . 17 2. Coil Coaters. . . . . . . . . . . . . . . . . . . . . . . 18 3. Processes . . . . . . . . . . . . . . . . . . . . . . . . 19 V. Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 A. Industry Survey. . . . . . . . . . . . . . . . . . . . . . . . 20 1. ARB Survey. . . . . . . . . . . . . . . . . . . . . . . . 20 2. Can Manufacturers Institute Survey. . . . . . . . . . . . 21 3. National Coil Coaters Association Survey. . . . . . . . . 21 B. Emission Estimate. . . . . . . . . . . . . . . . . . . . . . . 22 1. Air Resources Board . . . . . . . . . . . . . . . . . . . 22 2. CMI . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3. Potential Emission Reductions . . . . . . . . . . . . . . 28 VI. Existing Technology in the Coating Industry . . . . . . . . . . . . 31 A. Cans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 B. Coils. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 VII. Emission Reduction Technology . . . . . . . . . . . . . . . . . . . 35 A. Waterborne Coatings. . . . . . . . . . . . . . . . . . . . . . 36 B. High-Solids coatings . . . . . . . . . . . . . . . . . . . . . 38 C. Powder Coatings. . . . . . . . . . . . . . . . . . . . . . . . 39 D. Afterburners . . . . . . . . . . . . . . . . . . . . . . . . . 40 E. Other Methods. . . . . . . . . . . . . . . . . . . . . . . . . 45 VIII. Impacts. . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 A. Economic Impacts . . . . . . . . . . . . . . . . . . . . . . . 46 1. Available Controls and Cost-effectiveness . . . . . . . . 46 a. Waterborne Coatings. . . . . . . . . . . . . . . . . 46 b. High-Solids Coatings . . . . . . . . . . . . . . . . 48 c. Powder Coatings. . . . . . . . . . . . . . . . . . . 49 d. Afterburners . . . . . . . . . . . . . . . . . . . . 50 B. Environmental Impacts. . . . . . . . . . . . . . . . . . . . . 55 1. Energy. . . . . . . . . . . . . . . . . . . . . . . . . . 55 2. Other . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Appendix A - Surveys of Coating Manufacturers and Can and Coil Coaters. Appendix B - Notice of Public Consultation Meeting. Appendix C - General Discussion of Can and Coil Coating Processes. Appendix D - Lists of Can and Coil Manufacturers in California. ITEM NO.: 78-13-4 ARB/Caltrans Memorandum of Understanding Status Report RECOMMENDATIONS None. SUMMARY In May 1978, ARB and Caltrans completed a Memorandum of Understanding (MOU) which defines the means for determining the consistency of transportation plans and projects with air quality plans which is required by federal regulations. The MOU was brought to the attention of the Legislature which asked the agencies to appear before a joint Senate/Assembly Transportation Committee on June 13, 1978, to explain the MOU and some aspects of the Clean Air Act as amended in 1977. The committee requested that the ARB and Caltrans hold public meetings regarding the respective roles of all levels of government and the private sector in implementing the Clean Air Act and specifically keying on the MOU. The requested public meetings were held in Los Angeles on July 10, 1978 and in Oakland on July 11, 1978. In general, concerns were raised about (1) recognizing local and regional roles in developing plans and determining reasonably available transportation control measures, (2) involving local and regional agencies in a consultation process to resolve differences, (3) clarifying project consistency with the State Implementation Plan, and (4) a lack of local and regional involvement in developing the MOU. On August 8, 1978, ARB and Caltrans are to appear again before the joint Senate/Assembly Transportation Committee to report the results of the public meetings. It is proposed to revise the MOU to address the above concerns. This staff report is to inform the Board of the activities concerning the MOU.