No. 41824 (Amendment): Rule R307-343. Emissions Standards for Wood Furniture Manufacturing Operations

(Amendment)

DAR File No.: 41824
Filed: 06/14/2017 04:31:18 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The amendments to this rule strengthen the area source coating rules. These amendments will help further reduce Volatile Organic Compound (VOC) emissions and will be part of the upcoming Serious PM2.5 State Implementation Plan (SIP).

Summary of the rule or change:

The applicability threshold is reduced from 2.7 tons per year (tpy) potential to emit to the use of a combined 20 gallons or more of coating products and solvents combined. The definition of a coating is removed from the rule and added to the definitions in Rule R307-101, General Requirements. The coating categories are updated to current types of coatings used in the industry. The agency is also separating out the types of polyurethanes that currently fall under the topcoat or sealer category. The VOC limits for the two component polyurethanes are being slightly elevated from 0.9 to 1.0 lb VOC/lb solids. Canned aerosol coating products that are less than 22 fl. oz. and used exclusively for touch-up or repair are now exempt. (Editor's Note: The proposed amendment to Section R307-101-2 is under Filing No. 41814 in this issue, July 1, 2017, of the Bulletin.)

Statutory or constitutional authorization for this rule:

• Section 19-2-104

Anticipated cost or savings to:

the state budget:

There will be no impact on the state budget because the only substantive change to the rule that could result in costs for the regulated party is the change in the applicability threshold. The state would likely have already fallen under the prior rule applicability threshold. Therefore, there are no added costs.

local governments:

There will be no impact on local governments because the only substantive change to the rule that could result in costs for the regulated party is the change in the applicability threshold. The local governments would likely have already fallen under the prior rule applicability threshold. Therefore, there are no added costs.

small businesses:

There will be an impact on small businesses because the new rule applicability threshold will cause several small businesses to be regulated by the rule that were not regulated previously. The cost to these businesses will depend on how much material is used. These businesses will pay an estimated $2,616 per ton of VOC emissions removed from the air. The Division of Air Quality (DAQ) has considered methods of reducing the negative fiscal impact of the rule on small businesses in accordance with Subsection 63G-3-301(6) but cannot establish less stringent requirements, schedules, or deadlines; simplify compliance or reporting requirements; replace design standards with performance standards; or exempt small businesses from the proposed rule. This is because the rule is required by federal law to satisfy the Clean Air Act requirement to implement Best Available Control Measures in the manner prescribed by the PM2.5 Implementation Rule, See 42 U.S.C. 7513a (b)(1) and 40 CFR 51.1010(a)(1) through (5). The rule also helps prevent future violations of federal air quality standards. Although the rule is required to help prevent future air quality violations and comply with federal law, DAQ has taken steps to reduce the negative fiscal impact the rule may have on small businesses. The rule provides regulated sources with flexibility and potential cost saving alternatives in regard to compliance. This includes a vapor pressure limit, instead of a density-based limit, for solvents. The vapor pressure limit gives businesses greater flexibility as to the types of solvents they may use. The rule also includes the option to use an add-on control device that can be used as an alternative to meeting the content limits in the rule. These provisions give businesses flexibility to comply with the rule in the way that makes the most sense for them.

persons other than small businesses, businesses, or local governmental entities:

Persons other than small businesses, businesses, or local government entities will not be impacted by this rule because the rule applicability threshold is set at a level that excludes hobbyists and other people that are not businesses or governments.

Compliance costs for affected persons:

The compliance cost for people who are affected by the rule will be about $2,616 per ton of VOC removed from the air.

Comments by the department head on the fiscal impact the rule may have on businesses:

I. WHETHER A FISCAL IMPACT TO BUSINESS IS EXPECTED AS A RESULT OF THE PROPOSED RULE AND, IF SO, A DESCRIPTION OF WHY: The proposed rule may result in a fiscal impact to some businesses because the rule amendment changes the applicability threshold. The threshold is being changed from the "potential to emit 2.7 tons or more of VOC" to the "use of a combined 20 gallons or more" of product. This new threshold is meant to ensure that businesses that use coatings for wood furniture are regulated by Rule R307-343. Businesses that already have the potential to emit 2.7 tons or more of VOC are not impacted by the rule amendment. Therefore, the businesses most likely impacted by this amendment are small businesses that did not previously meet the applicability threshold of the rule. II. AN ESTIMATE OF THE TOTAL NUMBER OF BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: The number of businesses that are impacted by this rule amendment is difficult to predict because there is no data on the quantity of regulated product used by each business in the relevant areas. The rule generally covers businesses that have the following NAICS Codes: 337122, Nonupholstered Wood Household Furniture Manufacturing; 337215, Showcase, Partition, Shelving, and Locker Manufacturing; 337121, Upholstered Household Furniture Manufacturing; 321999, All Other Miscellaneous Wood Product Manufacturing; 337211, Wood Office Furniture Manufacturing; 337110, Wood Kitchen Cabinet and Countertop Manufacturing; and 337127, Institutional Furniture Manufacturing. The Division used data from Utah's FirmFind database to determine that there are at least 330 total businesses and 317 small businesses that have these codes. Of those businesses, DAQ has determined that 191 sources may be impacted by the rule amendment. III. AN ESTIMATE OF THE SMALL BUSINESS ESTABLISHMENTS IN UTAH EXPECTED TO BE IMPACTED: The amendments to this rule will likely only have a fiscal impact on small businesses. Big businesses use more product and are already regulated under the current version of the rule. There are 191 small businesses that have been identified by DAQ as businesses that may be fiscally impacted by this rule amendment. IV. A DESCRIPTION OF THE SOURCES OF COST OR SAVINGS AS WELL AS THE EXPECTED NET SAVINGS OR COST TO BUSINESS ESTABLISHMENTS AND SMALL BUSINESS ESTABLISHMENTS AS A RESULT OF THE PROPOSED RULE OVER A ONE-YEAR PERIOD, IDENTIFYING ONE-TIME AND ONGOING COSTS: The rule amendment potentially impacts businesses that apply between 20 and approximately 1,200 gallons of regulated product annually. After speaking with industry experts, DAQ has determined that the source of the cost is an average $5 per gallon difference between compliant and non-compliant products. This means that businesses impacted by the rule will spend between $100 and $6,000 annually to comply with the rule. Most of the businesses impacted by the rule will be closer to the $100 amount on the spectrum. This is because most of the businesses that are impacted by the amendment are small businesses with between 1 and 10 employees. They do not use large quantities of product. It is important to note that many large businesses that are closer to the 1,200 gallon threshold will likely not be impacted by the rule. This is because they may already be required to comply with the rule based on the fact that they have the potential to emit over 2.7 tons of VOC emissions. Some of the small businesses may also already be using compliant coatings and will not have any additional costs as a result of the rule amendment. Based on the 191 businesses identified by, the aggregate annual fiscal impact of the rule on all businesses in Utah will range between $19,100 and $1,146,000. Once again, the total cost will fall toward the lower end of the spectrum ($19,100) because of the size of the businesses and the likelihood that large businesses are already complying with the rule. These figures represent the continuing annual costs to businesses. There are no one-time costs associated with the rule amendment. V. DEPARTMENT HEAD?S COMMENTS ON THE ANALYSIS: The above analysis represents DAQ's best estimate as to the fiscal impact this rule amendment will have on businesses. If a company uses a greater quantity of product, then the rule amendment will cause a more significant fiscal impact. EPA has estimated the total cost of this type of regulation to be $2,616 per ton of VOC emissions removed from the atmosphere. The EPA considers this cost to be reasonable in the context of implementing Best Available Control Measures (BACM), as required by the Clean Air Act for Serious nonattainment areas.

Alan Matheson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Environmental Quality
Air QualityRoom Fourth Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3085

Direct questions regarding this rule to:

• Ryan Stephens at the above address, by phone at 801-536-4419, by FAX at 801-536-0085, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/15/2017

Interested persons may attend a public hearing regarding this rule:

• 07/27/2017 01:00 PM, DEQ Bldg, 195 N 1950 W, DEQ Board Room, Salt Lake City, UT

This rule may become effective on:

08/22/2017

Authorized by:

Bryce Bird, Director

RULE TEXT

R307. Environmental Quality, Air Quality.

R307-343. [ Emissions Standards for ] Wood Furniture Manufacturing Operations.

R307-343-1. Purpose.

The purpose of R307-343 is to limit volatile organic compound (VOC) emissions from wood furniture manufacturing operations.

 

R307-343-2. Applicability.

R307-343 applies to wood furniture manufacturing operations, including related cleaning activities, that [have the potential to emit 2.7 tons or more per year of VOCs and that are]use a combined 20 gallons or more of coating products and associated solvents per year and are located in Box Elder, Cache, Davis, Salt Lake, Utah, Tooele, [and]or Weber counties.

 

R307-343-3. Definitions.

The following additional definitions apply to R307-343:

["Affected source" means a wood furniture manufacturing source that meets the criteria in R307-343-2.]

"As applied" means the volatile organic compound and solids content of the finishing material that is actually used for coating the substrate. It includes the contribution of materials used for in-house dilution of the finishing material.

["Coating" means a protective, decorative, or functional material applied in a thin layer to a surface. Such materials may include paints, topcoats, varnishes, sealers, stains, washcoats, basecoats, inks, and temporary protective coatings.

"Compliant coating" means a finishing material or strippable booth coating that meets the emission limits specified in R307-343-4(1).]

"Control system" means the combination of capture and control devices used to reduce emissions to the atmosphere.

"Conventional Air Spray" means a spray coating method in which the coating is atomized by mixing it with compressed air at an air pressure greater than ten pounds per square inch (gauge) at the point of atomization. Airless, air assisted airless spray technologies, and electrostatic spray technology are not considered conventional air spray.

"Finishing material" means a coating used in the wood furniture industry, including basecoats, stains, washcoats, sealers, and topcoats.

"Finishing Operation" means those activities in which a finishing material is applied to a substrate and is subsequently air-dried, cured in an oven, or cured by radiation.

"Sealer" means a finishing material used to seal the pores of a wood substrate before additional coats of finishing material are applied. A washcoat used to optimize aesthetics is not a sealer.

"Solids" means the part of the coating that remains after the coating is dried or cured; solids content is determined using data from EPA Method 24.

"Stain" means any color coat having a solids content by weight of no more than 8.0% that is applied in single or multiple coats directly to the substrate, including nongrain raising stains, equalizer stains, sap stains, body stains, no-wipe stains, penetrating stains, and toners.

"Topcoat" means the last film-building finishing material applied in a finishing system. Non-permanent final finishes are not topcoats.

"Touch-up and Repair" means the application of finishing materials to cover minor finishing imperfections.

"Washcoat" means a transparent special purpose coating having a solids content by weight of 12.0% or less that is applied over initial stains to protect and control color and to stiffen the wood fibers in order to aid sanding.

"Washoff operations" means those operations in which organic solvent is used to remove coating from a substrate.

"Wood furniture" means any product made of wood[,] that is manufactured under any of the following standard industrial classification codes: 2434, 2511, 2512, 2517, 2519, 2521, 2531, 2541, 2599, or 5712. This includes [a ]wood product s such as rattan or wicker[,or an] and engineered wood product s such as particleboard[that is manufactured under any of the following standard industrial classification codes: 2434, 2511, 2512, 2517, 2519, 2521, 2531, 2541, 2599, or 5712].

"Wood furniture manufacturing operations" means the finishing, cleaning, and washoff operations associated with the production of wood furniture or wood furniture components.

 

R307-343-4. VOC Content Limits.

[(1) Each affected source subject to R307-343 shall limit VOC emissions by:

(a) Using the compliant coating method as described in R307-343-4(1)(a)(i) or using the control system method as described in R307-343-4(1)(a)(ii).

(i) Compliant coating method is the use of the topcoats or topcoat/sealer combinations in Table 1:](1) No owner or operator shall apply coatings with a VOC content in excess of the amounts specified in Table 1, unless the owner or operator uses an add-on control device as specified in R307-343-6.

 

[TABLE 1

Compliant Coating VOC Limitations

(values in pounds VOC per pound of solids, minus water and
exempt solvents (compounds not classified as VOC
as defined in R307-101-2), as applied)

 
 COATING CATEGORY       VOC Content Limitations 
 
                      Effective Through    Effective Beginning 
                      December 31,2014     January 1, 2015 
 
Topcoats                         0.8                     0.4 
Topcoat/Sealer combination 
 
 Topcoat                         1.8                     0.9 
 
 Sealer                          1.9                     0.9 
 
Acid-cured, alkyd amino 
topcoat/sealer combinations 
 
 Acid-cured, alkyd amino topcoat  2.0                    1.0 
 
 Acid-cured, alkyd amino vinyl    2.3                    1.2 
 Sealer]

 

Table 1

WOOD MANUFACTURING COATING LIMITS
(values in pounds VOC per gallon of coating, minus water and
exempt solvents (compounds not classified as VOC
as defined in R307-101-2), as applied)

   
   Coating Category                      VOC Content Limit (lb/gal)   
   
Topcoat                                                   0.4   
   
Single component, non-catalyzed sealer                    0.9   
Single component, non-catalyzed topcoat                   0.9   
   
Acid -- cured single and 2 component sealer               1.2   
Acid -- cured single and 2 component topcoat              1.0   
   
2 component polyurethane topcoat                          1.0   
2 component polyurethane sealer                           1.0   
   
Cobalt peroxide cured polyester sealer/topcoat            1.0   
   
Formaldehyde free acid catalyzed sealer/topcoat           1.0   
   
   Strippable spray booth coatings                           0.8

 

[(ii) Control system method is the use of a VOC control system achieving a 85% or greater emissions reduction.

(b) Using strippable spray booth coatings that contain no greater than 0.8 pounds VOC per pound solids as applied.

(c) Using closed containers for the storing of finishing, gluing, cleaning and washoff materials.]

(2) The limits in Table 1 do not apply to canned aerosol coating products less than 22 fl. oz. (0.66 liter) capacity and used exclusively for touch-up or repair.

 

R307-343-5. Application Equipment Requirements.

(1) All coatings shall be applied using equipment having a minimum 65% transfer efficiency, except as allowed under R307-343-5(3) and operated according to the equipment manufacturer specifications. Equipment meeting the transfer efficiency requirement includes:

(a) Brush, dip, or roll coating;

(b) Electrostatic application; and

(c) High volume, low pressure (HVLP) spray equipment.

(2) Other coating application methods that achieve transfer efficiency equivalent to HVLP or electrostatic spray application methods may be used.

(3) Conventional air spray methods may be used under the following circumstances:

(a) To apply finishing materials that have no greater than 1.0 pound of VOC per pound of solids, as applied;

(b) For touch-up and repair under the following circumstances:

(i) The touch -up and repair occurs after completion of the finishing operation; or

(ii) The touch -up and repair occurs after the application of stain and before the application of any other type of finishing material, and the materials used for touch -up and repair are applied from a container that has a volume of no more than 2.0 gallons;

(c) When the spray gun is aimed and [triggered]operated automatically, not manually;

(d) When the emissions from the finishing application station are directed to a control device as specified in R307-343-6;

(e) When the conventional air gun is used to apply [finishing materials and the cumulative total usage of that finishing material is ]no more than 10% of the total gallons of finishing material used during the calendar year; or

(f) When the conventional air gun is used to apply stain on a part for which it is technically or economically infeasible to use any other spray application technology. The following criteria shall be used, either independently or in combination, to support the affected source's claim of technical or economic infeasibility:

(i) The production speed is too high or the part shape is too complex for one operator to coat the part and the application station is not large enough to accommodate an additional operator; or

(ii) The excessively large vertical spray area of the part makes it difficult to avoid sagging or runs in the stain.

 

R307-343-6. Add-on Controls Systems Operations.

(1) If an add-on control system is used, [T]the owner or operator shall install and maintain [an incinerator, carbon adsorption, or any other]the add-on emission control system[, provided that the emission control system is operated and maintained] in accordance with the manufacturer recommendations [in order to]and maintain [at least ]85% or greater capture and control efficiency. [Determination of]The overall capture and control efficiency shall be determined using EPA approved methods, as follows.

(a) The capture efficiency of a VOC emission control system's VOC collection device shall be determined according to EPA's "Guidelines for Determining Capture Efficiency," January 9, 1995 and 40 CFR Part 51, Appendix M, Methods 204-204F, as applicable.

(b) The control efficiency of a VOC emission control system's VOC control device shall be determined using test methods in Appendices A-1, A-6, and A-7 to 40 CFR Part 60, for measuring flow rates, total gaseous organic concentrations, or emissions of exempt compounds, as applicable.

(c) An alternative test method may be substituted for the preceding test methods after review and approval by the EPA Administrator.

[(2) The owner or operator of a control system shall provide documentation that the emission control system will attain the requirements of R307-343-6(1).

(3) The owner or operator shall maintain records of key system parameters necessary to ensure compliance with R307-343-6. Key system parameters may include, but are not limited to, temperature, pressure and flow rates. Operator inspection schedule, monitoring, recordkeeping, and key parameters shall be in accordance with the manufacturer's recommendations, and as required to demonstrate operations are providing continuous emission reduction from the source during all periods that the operations cause emissions from the source.

(4) The owner or operator shall maintain for a minimum of two years records of operating and maintenance sufficient to demonstrate that the equipment is being operated and maintained in accordance with the manufacturer recommendations.]

 

R307-343-7. Work Practices[ and Recordkeeping ] .

(1) Control techniques and work practices for coatings shall be implemented at all times to reduce VOC emissions[ from fugitive type sources]. Control techniques and work practices shall include:

(a) Storing all VOC-containing coatings, thinners, and coating-related waste materials in closed containers;

(b) Ensuring that mixing and storage containers used for VOC-containing coatings, thinners, and coating-related waste material are kept closed at all times except when depositing or removing these materials;

(c) Minimizing spills of VOC-containing coatings, thinners, and coating-related waste materials; and

(d) Conveying VOC-containing coatings, thinners, and coating-related waste materials from one location to another in closed containers or pipes.

(2) The work practices for cleaning materials shall be implemented at all times to reduce VOC emissions[ from fugitive type sources]. The work practices shall include:

(a) Storing all VOC-containing cleaning materials and used shop towels in closed containers;

(b) Ensuring that storage containers used for VOC-containing cleaning materials are kept closed at all times except when depositing or removing these materials;

(c) Minimizing spills of VOC-containing cleaning materials;

(d) Conveying VOC-containing cleaning materials from one location to another in closed containers or pipes; and

(e) Minimizing VOC emissions from cleaning of application, storage, mixing, and conveying equipment by ensuring that equipment cleaning is performed without atomizing the cleaning solvent and all spent solvent is captured in closed containers.

[(3) All persons shall perform solvent cleaning operations with cleaning material having VOC content (excluding compounds not classified as VOC) of 0.21 pounds per gallon or less.

(4) For each calendar year, all sources subject to R307-343 shall maintain records demonstrating compliance with R307-343-4, R307-343-5 and R307-343-7.

(a) Records shall include, but shall not be limited to, inventory and product data sheets for all coatings and solvents subject to R307-343.

(b) These records shall be made available to the director upon request.]

(3) Solvent cleaning operations shall be performed using cleaning materials having a VOC composite vapor pressure no greater than 1 mm Hg or less at 20 degrees Celsius, unless an add-on control device is used as specified in R307-343-6.

 

R307-343-8. Recordkeeping.

(1) The owner or operator shall maintain records of the following:

(a) Records that demonstrate compliance with R307-343. Records must include, but are not limited to, inventory and product data sheets of all coatings and solvents subject to R307-343.

(b) If an add-on control device is used, records of key system parameters necessary to ensure compliance with R307-343-6.

(i) Key system parameters shall include, but are not limited to, temperature, pressure, flow rates, and an inspection schedule.

(ii) Key inspection parameters shall be in accordance with the manufacturer's recommendations, and as required to demonstrate operations are providing continuous emission reduction from the source during all periods that the operations cause emissions from the source.

(2) All records shall be maintained for a minimum of 2 years.

(3) Records shall be made available to the director upon request.

 

KEY: air pollution, wood furniture, coatings

Date of Enactment or Last Substantive Amendment: [December 1, 2014]2017

Notice of Continuation: January 27, 2017

Authorizing, and Implemented or Interpreted Law: 19-2-104(1)(a); 19-2-104(3)(e)

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