CR 20-088 Rule Text

The proposed changes to ch. NR 422 are expected to apply to between seven and 32 sources, depending on the classification of ozone nonattainment areas at the time the rules are finalized. Seven sources are related to the re-incorporation of the three counties into the Miscellaneous metal parts and products – Part I rule and up to 25 sources (depending on ozone nonattainment area classification and the magnitude of the sources’ VOC emissions) are related to incorporation of the three new Part II rules. Based on engagement with industry, it is expected that many sources are already meeting some or all of the requirements contained in the proposed rule. The department’s recent experience working with several sources that would be affected by this rule is that no changes in operations or controls at these sources were necessary, as they were already meeting the VOC content limits of the applicable CTG.

6.

Summary of, and Comparison with, Existing or Proposed Federal Statutes and Regulations: The proposed revisions to the plastic parts coating, miscellaneous metal parts coating and adhesive coating VOC RACT regulations are based directly on the latest EPA CTGs. The rules regulate VOC emissions from individual coating lines with emissions above specified thresholds, as well as regulating VOC cleaning solvent work practices.

7.

Summary of Any Public Comments and Feedback on the Statement of Scope of the Proposed Rule Received at Any Preliminary Public Hearing and Comment Period. Include How and to What Extent the Agency Took Those Comments and Feedback into Account in Drafting the Proposed Rule: A preliminary public hearing was held pursuant to s. 227.136, Stats., on March 8, 2019. Written comments were also accepted until March 18, 2019. No comments were received from the preliminary public hearing and comment period on the statement of scope of the proposed rule.

8.

Comparison with Similar Rules in Adjacent States: Illinois and Indiana have similar administrative rules that reflect the latest federal CTGs. Indiana was included in this analysis because portions of Wisconsin, Illinois, and Indiana comprise a tri-state nonattainment area for the 2008 and the 2015 ozone NAAQS. Minnesota, Iowa, and Michigan do not have any nonattainment areas subject to this requirement and therefore are not required to have updated VOC RACT regulations.

9.

Summary of Factual Data and Analytical Methodologies Used and How Any Related Findings Support the Regulatory Approach Chosen: The revised plastic parts coating rule, adhesive use rule, and the miscellaneous metal parts and products coating rule are based on CTGs issued by EPA in 2008 for these categories. All the recommended control measures in these CTGs are incorporated into the new rules. The current VOC RACT rules for these source categories will continue to apply in other areas of the state.

10.

Analysis and Supporting Documents Used to Determine the Effect on Small Business or in Preparation of an Economic Impact Report: Analysis conducted by the department indicates that the proposed control requirements may impact one small business. The number of potentially affected facilities was estimated from state emission reporting and inventory estimates. Estimated cost per facility to comply with these CTGs was provided by EPA in its CTG documents and has been adjusted by the department using a national inflation calculator to 2020 dollars.

The work practices for coating-related activities and cleaning materials are considered standard industrial practice. Most, if not all, facilities already implement solvent cleaning work practices that would meet the requirements of the rule changes. The proposed rule establishes those standard work practices as requirements.

11.

Effect on Small Business (initial regulatory flexibility analysis): The DNR anticipates that the total cost to the single small business as a result of this rule will be approximately $13,440. More specific cost estimates are provided below.

Miscellaneous metal and plastic parts coating (ss. NR 422.151 and 422.084, Wis. Adm. Code)

The DNR estimates that one small business may be impacted by the proposed miscellaneous metal and plastic parts coating rules in ss. NR 422.151 and 422.084, Wis. Adm. Code. DNR estimates that 23 facilities in Wisconsin’s ozone nonattainment areas conduct activities related to miscellaneous metal and plastic parts coating; however, only a small percentage of facilities will have emissions above the applicability threshold for VOC RACT in any given year. Of these 23 facilities, only one facility that is considered a small business, based on the definition in s. 227.114 (1), Stats., is known to the department to emit VOCs related to miscellaneous metal and plastic parts coating in excess of the threshold.

In its 2008 CTG, EPA estimated the national average cost of this RACT control is an annualized cost of

$10,500/facility in 2007 dollars. Updated for 2020, the cost for RACT control is an annualized cost of

$13,440/facility. This gives a total estimated annualized cost to implement RACT control for small businesses using the updated CTG limits for miscellaneous metal and plastic parts coating processes of

$13,440.

Miscellaneous industrial adhesives (s. NR 422.128, Wis. Adm. Code)

The DNR does not anticipate small businesses to be impacted by the proposed adhesive use rule in s. NR 422.128, Wis. Adm. Code. DNR estimates that nine facilities in Wisconsin’s ozone nonattainment areas currently conduct activities involving miscellaneous industrial adhesives applications; however, in the past five years, none of the facilities have had emissions above the applicability threshold for VOC RACT in any given year.

Given that no facilities considered small businesses are known to the department to currently be emitting VOCs related to adhesive use in excess of the threshold, the total estimated annualized cost to implement RACT control for small businesses using the updated CTG limits for miscellaneous industrial adhesives applications is $0.

12.

Agency Contact Person: Olivia Salmon, Department of Natural Resources, P.O. Box 7921, Madison, WI 53707-7921; [e-mail]; [phone]

13.

Place where comments are to be submitted and deadline for submission: A public hearing was held on January 25, 2021. Written comments were accepted through February 1, 2021.

(See PDF for image)

RULE TEXT

SECTION 1.   NR 400.02 (intro.) is created to read:

NR 400.02 Definitions. Except when another definition is specifically made applicable, in chs. NR 401 to 499:

SECTION 2.   NR 419.02 (intro.) is amended to read:

NR 419.02 Definitions. The Except when another definition is specifically made

applicable, the definitions contained in ch. NR 400 apply to the terms used in this chapter. In

addition, the following definitions apply to the terms except when another definition is

(See PDF for image)(See PDF for image)specifically made applicable, in this chapter and in chs. NR 420 to 425.:

SECTION 3.   NR 421.02 (intro.) is amended to read:

NR 421.02 Definitions. The Except when another definition is specifically made

applicable, the definitions contained in chs. NR 400, 419, and 420 apply to the terms used in this

chapter. In addition, the following definitions apply to the terms used except when another

definition is specifically made applicable, in this chapter and in chs. NR 422 to 425:

SECTION 4.   NR 422.01 (3), (4), and (Note) are created to read:

NR 422.01 (3) For a source located in an area that was ever designated nonattainment for ozone that had VOC emissions exceeding the applicability emission thresholds and became subject to the requirements of this chapter, the requirements of this chapter remain applicable

notwithstanding any subsequent decrease in VOC emissions to a level below the applicability emission thresholds.

(4)

The department may exempt a source from the requirements of this chapter if the source has an approved federally enforceable permit or state implementation plan revision that permanently restricts maximum theoretical emissions to below the applicability emission thresholds listed under this chapter and meets all applicable federal VOC RACT exemption requirements.

Note: “Maximum theoretical emissions” referred to in this chapter is defined under s. NR 419.02 (11).

SECTION 5. NR 422.02 (intro.) is amended to read:

NR 422.02 The Except when another definition is specifically made applicable, the

(See PDF for image)definitions contained in chs. NR 400, 419, and 421 apply to the terms used in this chapter. In