National Volatile Organic Compound Emission Standards for Architectural Coatings

ACTION: Final rule.

SUMMARY: This action promulgates national volatile organic compound (VOC) emission standards for architectural coatings pursuant to section 183(e) of the Clean Air Act (Act). This final rule is based on the Administrator's determination that VOC emissions from the use of architectural coatings have the potential to cause or contribute to ozone levels that violate the national ambient air quality standards (NAAQS) for ozone.

Ozone is a major component of smog which causes negative health and environmental impacts when present in high concentrations at ground level. The final rule is estimated to reduce VOC emissions by 103,000 megagrams per year (Mg/yr) (113,500 tons per year [tpy]) by requiring manufacturers and importers to limit the VOC content of architectural coatings.

DATES: The effective date is September 11, 1998.

ADDRESSES: Technical Support Documents. The regulation promulgated today is supported by two background information documents (BID); one specific to the architectural coatings rule, and one that addresses comments on the study and Report to Congress under section 183(e). 

The Architectural Coatings BID contains a summary of the changes made to the standards since proposal, a summary of all the public comments on the standards, and the Administrator's response to the comments and the 183-BID contains a summary of all the public comments made on the section 183(e) study and Report to Congress and the list and schedule for regulation as well as the Administrator's response to the comments.

This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be regulated by this action. This table lists the types of entities that the EPA is now aware could potentially be regulated by this action. Other types of entities not listed in this table could also be regulated. To determine whether your product is regulated by this action, you should carefully examine the applicability criteria in Sec. 59.400 of the final rule.

Judicial review. This section 183(e) rule for architectural coatings was proposed on June 25, 1996 (61 FR 32729). This notice promulgating a rule for architectural coatings constitutes final administrative action concerning that proposal.

Outline. The information presented in this preamble is organized as follows:

I. Background
    A. Purpose of Regulation
    B. Statutory and Regulatory Background

II. Summary of Standards
    A. Applicability
    B. Volatile Organic Compound Content Limits
    C. Exceedance Fee
    D. Tonnage Exemption
    E. Labeling
    F. Recordkeeping
    G. Reporting
    H. Compliance Provisions

III. Summary of Considerations in Developing Standards
    A. Basis of the Regulation
    B. Stakeholder and Public Participation

IV. Summary of Impacts
    A. Environmental Impacts
    B. Energy Impacts
    C. Cost and Economic Impacts

V. Significant Comments and Changes to Proposed Standards
    A. National Rule versus Control Techniques Guidelines
    B. Applicability and Regulated Entities
    C. General Comments on Determination of Best Available Controls
    D. Changes in Proposed Coating Categories
    E. Addition of New Coating Categories
    F. Category Overlap
    G. Low Volume/Tonnage Exemption
    H. Compliance Variance Provisions
    I. Exceedance Fee Option
    J. Labeling, Recordkeeping, and Reporting
    K. Determination of Volatile Organic Compound Content
    L. Compliance Date
    M. Cost/Economic Impacts
    N. Small Business Issues
    O. Cost-Effectiveness
    P. Future Study and Future Limits
    Q. Administrative Provisions

VI. Administrative Requirements
    A. Docket
    B. Paperwork Reduction Act
    C. Executive Order 12866
    D. Executive Order 12875
    E. Regulatory Flexibility Act/Small Business Regulatory

Enforcement Fairness Act of 1996
    F. Unfunded Mandates Reform Act of 1995
    G. Submission to Congress and the General Accounting Office
    H. National Technology Transfer and Advancement Act
    I. Executive Order 13045

I. Background

A. Purpose of Regulation
Ground-level ozone, which is a major component of "smog," is formed in the atmosphere by reactions of VOC and oxides of nitrogen in the presence of sunlight. The formation of ground-level ozone is a complex process that is affected by many variables.   Exposure to ground-level ozone is associated with a wide variety of human health effects, agricultural crop loss, and damage to forests and ecosystems. Acute health effects are induced by short-term exposures to ozone (observed at concentrations as low as 0.12 parts per million [ppm]), generally while individuals are engaged in moderate or heavy exertion, and by prolonged exposures to ozone (observed at concentrations as low as 0.08 ppm), typically while individuals are engaged in moderate exertion. Moderate exertion levels are more frequently experienced by individuals than heavy exertion levels. The acute health effects include respiratory symptoms, effects on exercise performance, increased airway responsiveness, increased susceptibility to respiratory infection, increased hospital admissions and emergency room visits, and pulmonary inflammation. Groups at increased risk of experiencing such effects include active children, outdoor workers, and others who regularly engage in outdoor activities and individuals with preexisting respiratory disease. Available information also suggests that long-term exposures to ozone may cause chronic health effects (e.g., structural damage to lung tissue and accelerated decline in baseline lung function).

In accordance with section 183(e) of the Act, the Administrator has determined that VOC emissions from the use of architectural coatings have the potential to contribute to ozone levels that violate the NAAQS for ozone. Under authority of section 183(e), the EPA conducted a study of the VOC emissions from consumer and commercial products to determine their potential to contribute to ozone levels which violate the NAAQS for ozone.

Based on the results of the study, the EPA determined that the architectural coatings category accounts for about 9 percent of the emissions from all consumer and commercial products. It is one of the largest emission sources among the consumer and commercial products categories and in many States represents one of the largest identifiable sources of unregulated VOC emissions.

Consequently, the EPA and many States consider the regulation of architectural coatings to be an important component of the overall approach to reducing those emissions that contribute to ozone nonattainment. The EPA's determination that VOC emissions from the use of architectural coatings have the potential to contribute to nonattainment of the ozone NAAQS and the decision to regulate architectural coatings are discussed in the preamble to the proposed rule, in the "Consumer and Commercial Products Report to Congress", in the Federal Register notice announcing the schedule for regulation and in a separate Federal Register document published today that constitutes final action on the EPA's listing of architectural coatings for regulation.

B. Statutory and Regulatory Background

1. Section 183(e)
In 1990, Congress enacted section 183(e) of the Act, establishing a new regulatory program for controlling VOC emissions from consumer and commercial products. Section 183(e) directs the Administrator to list, and schedule for regulation, categories of consumer and commercial products after completion of a study and report to Congress concerning the products and their potential to contribute to levels of ozone which violate the ozone NAAQS.

2. Regulatory Negotiation
In 1992, the EPA initiated a regulatory negotiation to address architectural coatings. The regulatory negotiation process is an alternative to the traditional approach to rulemaking. The members of the architectural coatings regulatory negotiation committee represented the affected industries, consumers, Federal agencies, State and local air pollution control agencies, environmental groups, and labor organizations. Regulatory negotiation meetings were held from October 1992 to February 1994. Despite negotiation efforts, the committee could not reach consensus on some key regulatory issues for developing the rule, and on September 23, 1994, the regulatory negotiation concluded without consensus. Therefore, the EPA initiated development of the architectural coatings rule through conventional rule development procedures. The EPA utilized data and information obtained from the regulatory negotiation to complement additional information gathered during the rule development. Specifically, the EPA took into consideration information on the volume, VOC content, and hazardous air pollutant (HAP) content of coatings produced in 1990 in the VOC Emissions Inventory Survey conducted by industry.

3. Relationship to State and Local Regulation of Architectural Coatings Emissions from the use of architectural coatings are not currently regulated at the Federal level. Although a few States have had architectural coatings regulations in place for a number of years, many State and local areas are still seeking to obtain VOC reductions from this source category either from a national rule or from additional regulation at the State or local level.

Differing requirements of State and local architectural coating regulations have created administrative, technical, and marketing problems for both large and small companies that market and distribute products in multiple States. Both large and small manufacturers have  noted the additional burden associated with differences in State and local requirements. These industry representatives have noted that a Federal rule would provide some degree of consistency, predictability, and administrative ease for the industry.

States with ozone pollution problems are supportive of the EPA rulemakings that will assist them in their efforts toward achievement of the ozone standard. The National Governors' Association and Environmental Council of States (a group composed of environmental commissioners from each State), the State and Territorial Air Pollution Program Administrators and the Association of Local Air Pollution Control program Administrators, and the 37-State Ozone Transport Assessment Group (OTAG) all have urged the EPA to finalize national rules for architectural coatings.

State representatives have long recommended that the EPA develop a national rule for this product category. In part, this is because a national rule will help reduce compliance problems associated with transportation of noncompliant coatings into nonattainment areas from neighboring areas and neighboring States.