RCMA GOVERNMENT AFFAIRS COMMITTEE

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1 RCMA GOVERNMENT AFFAIRS COMMITTEE

2 RCMA Government Affairs Committee RCMA Government Affairs Committee Chair: Greg Johnson, Sherwin Williams Federal Legislative and Regulatory Issues State Legislative and Regulatory Issues GHS / HazCom Task Force VOC Task Force VOC Education Working Group

3 FEDERAL GOVERNMENT AFFAIRS

4 NATIONAL OZONE STANDARD

5 EPA National Ozone Standard Proposal On November 26, 2014, the EPA announced a proposal to lower the National Ozone Standard from the current level of 75 parts per billion (ppb) to a level of 65-70ppb. EPA is accepting comments to reduce the standard to a level as low as 60ppb, or to maintain the existing 75ppb standard. Public hearings held in late January 2015 Comment deadline is March 17, 2015 Rulemaking anticipated by October 1, 2015

6 State Implementation Plan (SIP) Requirements with Lowered NAAQS If the new ozone standard were to be approved on October 1, 2015 Timeframe Requirement < Oct EPAdesignates areas as meeting ( attainment areas ) or not meeting ( nonattainment areas ) the standards < Oct All states must submit state implementationplans (SIPs) to show they can meet NAAQS ~ Each nonattainment area SIP must outline the strategies and emissions control measures that show how the area will meet the NAAQS

7 Process of Reviewing the NAAQS Planning Complete, 2012 Integrated Science Assessment (ISA) Complete, 2013 Risk/Exposure Assessment (REA) Complete, 2014 Policy Assessment (PA) Complete, 2014 Rulemaking In progress Includes a science policy workshop and Integrated Review Plan (IRP) that presents the schedule for the entire review, the process for conducting the review, and the key policy-relevant science issues that will guide the review. Comprehensive review, synthesis, and evaluation of the most policy-relevant science. Draws upon ISA to develop quantitative characterizations of exposures and associated risks to human health or the environment Provides a transparent staff analysis of the scientific basis for alternative policy options. The PA is also intended to facilitate the Clean Air Scientific Advisory Committee s (CASAC s) advice to the Agency and recommendations to the Administrator. Taking into consideration the information in the ISA, REA(s), and PA and the advice of CASAC, EPA publishes a notice of proposed rulemaking. A public comment period follows before EPA issues a final rule.

8 Ozone Concentrations Proposed Rule Comparison National Ozone Nonattainment Areas 2008 Standard National Ozone Nonattainment Areas Proposed 65ppb Source: American Petroleum Institute Monitored CBSAs and rural counties that would be violating a 65ppb standard Unmonitored areas that are anticipated to violate a 65 ppb standard based on spatial interpolation Based on a 3-year period, Source: EPA, National Association of Manufacturers (NAM), American Petroleum Institute

9 Nonattainment Consequences Loss of industry and economic development in and around the Area National Ozone Nonattainment Areas Proposed 65ppb Loss of federal highway and transit funding New emissions in the Area must be offset, or the unit cannot be built Additional restrictive permitting requirements that are not applied in attainment areas Greater EPA involvement and oversight in permit decisions Continuing oversight by EPA even after the Monitored CBSAs and rural counties that would be violating a 65ppb standard Unmonitored areas that are anticipated to violate a 65 ppb standard based spatial interpolation nonattainment Based a 3-year period, area meets the standard

10 National Ozone Standard RCMA Advocacy Submitting Public Comments RCMA Comments RCMA Member Comments Attending Public Hearings Meeting with EPA Identification of Key Members of Congress Holding Congressional Meetings Participation with Relevant Coalitions

11 National Ozone Standard How to Help Contact your Congressional Representatives Submit Stakeholder Comments The more manufacturers who submit comments and express their severe concerns with this proposed regulation, the stronger our case will be. Raise Issue with Other Industry Trade Associations While VOC regulations are of specific concern to RCMA, ozone nonattainment ramifications will be felt throughout a wide variety of industries and for all manufacturers.

12 GHS / HAZCOMTASK FORCE

13 Compliance deadlines: GHS / HazComTask Force Source:

14 GHS / HazComTask Force Deadline Relief In November 2014, Durability and Designannounced compliance deadline relief for the OSHA Hazard Communication Standard OSHA "will exercise its enforcement discretion" in cases where a company has "performed their due diligence and made a good-faith effort to obtain the necessary information to comply" with the 2015 deadline, "but is unable to do so. Members who will not meet the June 2015 labeling and SDS deadline are encouraged to clearly document the steps taken to achieve compliance.

15 VOC TASK FORCE

16 RCMA VOC Task Force Overview Advocacy and Monitoring of: Architectural and Industrial Maintenance (AIM) Coatings Rules Adhesives & Sealants Rules National Ozone Standard Focus Areas: South Coast Air Quality Management District (SCAQMD) California Air Resources Board (CARB) Ozone Transport Commission (OTC) Lake Michigan Air Directors Consortium (LADCO) Environmental Protection Agency (EPA)

17 AIM COATINGS RULES - National Rule Adoptions Overview - OTC Phase II Review - State Adoption Updates - California Air District Adoption Updates - South Coast Rule 1113

18 National AIM Coatings Rule Adoptions

19 OTC Phase II Model Rule Review 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 New limits only applicable once adopted on a state-by-state level States will need to develop transitional language in order to update rules from Phase I limits to Phase II

20 Utah OTC Phase II Model Rule Adoption - Adopted the OTC Phase II Model Rule in the Salt Lake City control area. - New VOC Limits went into effect 1/1/2015 lowest limits outside of California OTC States Considering Adopting Phase II - New York - Delaware - Connecticut - District of Columbia Maryland - New Jersey - New Hampshire

21 Current California AIM Coatings Regulations

22 Working to Adopt CARB 2007 SCM Rule El Dorado Sacramento San Diego

23 CARB 2007 SCM Adoption Progress - Antelope Valley adopted revisions to their Rule 1113 to update to CARB 2007 SCM in June Lower VOC limits took effect June 18, Feather Riveradopted the CARB 2007 SCM. The lower limits took effect on August 4, Santa Barbaraadopted revisions to the Rule on June 19. CARB 2007 SCM limits took effect January 1, San Diego is working toward a revised rule, expected adoption in early Anticipated compliance date of January 1, El Dorado isupdating AIM rule 215 to CARB 2007 SCM per their SIP, with a rule expected in early Current rule does not align with a CARB SCM. - Sacramento is hoping to have a draft available for public workshop in early 2015.

24 SOUTH COAST RULE 1113

25 SCAQMD Rule 1113 Revision Overview Per the 2012 SCAQMD Air Quality Management Plan, a further reduction of 2-4 tons per day (TPD) isbeing sought from the AIM Coatings Rule 1113 Stakeholder discussions began in June 2014 Primary emission reduction areas being targeted: Primers, sealers, undercoaters reduced to 25 g/l Elimination of small container exemption Increased spray-gun efficiency Potential transition from regulatory to actual VOC

26 SCAQMD Rule 1113 Timeline Public process will begin with release of draft PAR 1113 language, 1Q-2Q 2015 Formal Review Process: Release of proposed amended rule (PAR) language Public Workshop Report to Stationary Source Committee Report to SCAQMD Board SCAQMD hopes for rule completion in 2015, likely 1/1/2018 compliance deadline

27 ADHESIVES & SEALANTS - National Overview - California Overview - South Coast Rule 1168 RULES

28 National Adhesive & Sealants Rule Adoptions Utah: 9/1/2014 Compliance Date Massachusetts: 1/1/2015 Compliance Date Atlanta Control Area: 1/1/2015 Compliance Date

29 California Districts with Adhesive & Sealants Rules Roughly based on current South Coast Rule 1168

30 SOUTH COAST RULE 1168

31 SCAQMD Rule 1168 Revision Overview Current Rule 1168 last updated 2005 South Coast hosted first Working Group June 2013 Public Workshop on December 18, 2013 began official public review process On July 10, 2014 the report to the Stationary Source Committee was postponed indefinitely Rulemaking has been halted, pending the outcome of the SCAQMD exempt solvents discussions

32 SCAQMD Rule 1168 May 2014 Draft Significant proposed changes had included: Exemption for dimethyl carbonate (DMC) as VOCs for roofing regulated products (tertiary-butyl acetate [TBAC] exemption removed earlier in rulemaking process) 3-year sell-through and use-through period Annual reports due by September 1 of first three years of updated rule; no subsequent reporting Replacement of nonmembraneroof adhesive and nonmembraneroof sealant categories with other roof adhesive / sealant categories (i.e. non-single ply) Reduced VOC content limits

33 SCAQMD Rule 1168 May 2014 Draft Proposed VOC Content Limits ProductCategory CurrentLimit Proposed Limit May 2014 PAR Single-PlyRoof Membrane Adhesive 250 g/l 100 g/l Other Roof Adhesive 250 g/l 100 g/l Single-Ply RoofMembrane Sealant 450 g/l 100 g/l Other Roof Sealant 300 g/l 100 g/l

34 SOUTH COAST EXEMPT SOLVENTS SYMPOSIUM

35 SCAQMD Exempt Solvents Symposium SCAQMD heldaone-day symposium on exempt solvents on Wednesday, October 29, 2014 in Diamond Bar, CA: Assessment: What risks are associated with the exemption of certain solvents? Management: What levels of risk are acceptable when implementing a rule, as compared to the potential environmental benefits that come from their use? Mitigation: What steps can be taken to mitigate these risks both to workers as well as to the general public? Results of symposium currently unknown feedback from majority of panelists was opposition to granting additional solvent exemptions

36 CARB ARCHITECTURAL COATINGS SURVEY

37 CARB AIM Coatings Survey California Air Resources Board (CARB) will be conducting a mandatory survey of 2013 sales data for AIM Coatings sold into the state Deadline May 1, 2015 (per RCMA extension request) CARB will be requiring submission of labels on all products, despite GHS / HazCom concerns raised by industry. Reporting will be 100% digital in a Microsoft Access program Solvents exempted by the EPA but not exempt in all areas of California (DMC, TBAC) are required to be reported as VOCs for the purpose of the survey.

38 RCMA VOC EDUCATION WORKING GROUP

39 RCMA VOC Education Working Group Formed at RCMA 2014 Fall Meeting Initiatives include: Drafting a regulator outreach document outlining potential upsides and unintended consequences of regulating coatings Developing educational materials for RCMA member companies and their employees Updating and reformatting the RCMA VOC regulation spreadsheets Working with the RCMA Codes and Standards Task Force to refine product category definitions Additional volunteers needed!

40 QUESTIONS?