1. RCMA GOVERNMENT AFFAIRS COMMITTEE
Working Group Session: VOC Activities
VOC Regulations: Federal and State
EPA Test Method 24
California Advocacy Considerations
Monday, October 12, 2015

2. VOC Regulations: Federal and State
National Ozone Standard
SCAQMD and CARB 2007 SCM (SMAQMD and San Diego)
OTC Phase II (Maryland)

3. EPA National Ozone Standard
November 26, 2014: EPA announced a proposal to lower the NAAQS from the previous level of 75 parts per billion (ppb)
February 27, 2015: RCMA met with EPA
March 16, 2015: RCMA submitted comment letter
October 1, 2015: Final rule at 70 ppb
Picture via EPA

4. RCMA Government Affairs Strategy
Regulatory and Congressional Outreach
Met with EPA
RCMA fly-in on Capitol Hill to meet with House & Senate offices and committee staff.
RCMA Member, Henry Company, testified at House Committee Energy & Commerce on corporate effects from the National Ozone Standard.
Congressional Roundtable with RCMA Member Sherwin Williams to engage in dialogue with Congressional Representatives.

5. RCMA Government Affairs Strategy
Congressional Bills
Clean Air, Strong Economies (CASE) Act
Worked with Legislative Directors in the offices of Senator Thune (R-SD) and Representative Olson (R-TX) to support bill and gain co-sponsorship.
FY2016 EPA Appropriations Bill
Asked members to vote against any amendment stripping the ozone language from the EPA-Interior spending bill.
Early Action Compact (EAC) Ozone Bill
Working with Offices of Senators Hatch (R-UT) and McCaskill (D-MO). On September 24, introduced a bipartisan bill that will implement an EPA program to have state and local districts develop EAC plans.

6. Working Group Questions

7. Discussion Questions – EPA NAAQS
As the EPA moves forward with implementation, many on the Hill and around the country are unsettled. EPA claims only 358 counties across the country will be in nonattainment at 70ppb, yet this number considers the areas EPA is currently monitoring. Not the additional 1,500 counties without monitors that are at risk of not meeting the new standard. Some have discussed the possibility of a lawsuit, or including funding provisions to block implementation. The problem, however, is that the ozone debate remains divided and an overhaul will require both sides to work together.
As an industry, what are some next steps for RCMA? How can we remain active in the debate? And, how could we further bridge the education gap of the unintended consequences?

8. South Coast Air Quality Management District (SCAQMD)

9. SCAQMD Overview—Rule 1113 Significant proposed changes include:
Amendments to be adopted in Dec 2015, implemented 2018/2019
Proposed AIM Fee Restructuring: reduce the fee for products less than 25 g/l, and increase the fee for products over 25 g/l, especially over 275 g/l
Small Container Exemption (SCE):Flats, Non-flats and Rust Preventatives – 8 ounces and touch-up only
TBAC exempt for industrial maintenance – 1 liter, touch-up only and not for retail sale
Working to add Method 313 with compound exclusion pathway, and ASTM D6886 to Rule 1113

10. SCAQMD Overview—Rule 314 (AIM Fee Rule)
Fee to cover cost of AIM regulatory program (separate from annual Quantity and Emissions Report)
Current fee - $0.04 per gallon and $ per ton VOC
As an alternative for 25 g/l for Flats, Non-flats and PSU, District proposed:
$0.01 fee for <10 g/L VOC material,
$0.04 for all other compliant coatings, and
$0.40 for those that exceed the VOC Substantially increase fees for products that do not meet the VOC limits (small container exemption)
Revenue neutral

11. SCAQMD Rule 1113 Next Steps October 16: Stationary Source Meeting
December 4: Public Hearing to adopt
Picture via Citizendium.com

12. Working Group Questions

13. Discussion Question - SCAQMD
In October 2014, RCMA sent a letter to the SCAQMD asking for the Institute for Research and Technical Assistance (Katy Wolf) to be subjected to the same level of scrutiny and regulatory oversight as industry organizations, such as RCMA.
In the letter, RCMA communicated that we could not find any evidence of peer review or independent scientific review of her information. Now that a year has passed and Ms. Wolf’s influence appears to be growing within the SCAQMD, what should RCMA do next?

14. California Air Resources Board
2007 SCM Rule Overview

15. CARB 2007 SCM Rule Overview 12 CA Air Districts have adopted 2007 SCM:
Bay Area
Ventura
San Joaquin
Imperial
Kern
Placer
Mojave Desert
Monterey
Antelope Valley
Santa Barbara (adopted June 19, 2014, effective January 1, 2015)
Feather River (adopted August 4, 2014, effective January 1, 2015)
San Diego (adopted June 24, 2015, effective January 1, 2016)
Sacramento (adopted September 24, 2015, effective March 24, 2016)

16. Current California AIM Coatings Regulations

17. Working to Adopt CARB 2007 SCM Rule
El Dorado
Yolo Solano

18. Questions?
Kevin J. Williams, Ph.D. Program Coordinator, Rule Development Sacramento Metropolitan Air Quality Management District

19. Ozone Transport Commission (OTC) Phase II

20. OTC Phase II Model Rule Overview
In 2010, the Ozone Transport Commission adopted the OTC “Phase II” Model Rule, following the 2002 “Phase I”
Key VOC content limit changes in the Phase II Rule:
Bituminous roof coatings lowered from 300 g/L to 270 g/L
Primers, sealers, undercoaters (PSUs) from 200 g/L to 100 g/L
Roof coatings remain 250 g/L
Bituminous roof primers remain 350 g/L
States will need to develop transitional language in order to update rules from Phase I limits to Phase II

21. OTC Phase II Model Rule Adoption
Maryland - COMAR
Adopting the OTC Phase II AIM Model Rule December 2015
Air Quality Control Advisory Council on June 8, 2015
Proposed rule released in September 21, 2015
Public hearing in November 2015
Effective date is January 1, 2017
OTC States Considering Adopting Phase II
New York
Delaware
Connecticut
District of Columbia
New Jersey
New Hampshire

22. Working Group Questions

23. OTC Voluntary Certification Program (SIP)
OTC is brainstorming VOC reduction methods more effective than regulation – recently a voluntary certification program that manufacturers certify compliant products through an independent third-party. The purpose of it is to develop a process whereby States can take credit for reductions with lower VOCs in their area. Manufacturers would have labels that would recognize the products , such as “Earth-friendly”, “Certified Green”, “OTC Compliant,” etc.
While this program has had little interest, it might help stop CARB and OTC from adopting more stringent AIM regulations, streamlining the process so that manufacturers will have fewer new State rules being developed, tracked, and complied with.
As an industry, is this an initiative we would be interested in? While the program has initial concerns (pay to verify compliance, EPA compliance, etc.) would RCMA benefit sitting at the table in the early development stages?

24. EPA Test Method 24

25. EPA Method 24 – Industry Concerns
Members identified inconsistencies such as error determinations and content variations in products at lower-VOC content levels using Method 24.
By switching to more water-based formulations, members observed a difference in the Method 24 VOC content reporting, and the actual VOC formulation contents.
Appears that Method 24 penalizes environmental innovations, such water and encourages exempt solvents in coatings.

26. EPA Method 24—Next Steps
September 21, 2015: RCMA meeting letter request to the EPA*
Early November: RCMA and ACA teleconference meeting with EPA
*Pending response letter

27. California Advocacy Considerations
RCMA
California Advocacy Considerations

28. California Advocacy Project Overview
RCMA is considering a California PAC or Issue Advocacy Fund.
The Board of Directors voted in June – Results showed (11-3) in favor to do something.
Split on PAC or Issue Advocacy Fund (4-5)
To help flesh out the options, RCMA circulated an advocacy fund / PAC management RFP to Washington, DC and California based firms.
RCMA hopes to collect all proposals by October 23, 2015.

29. Further Questions?