CR 20-088 Rule Text

NR 422.03: Exemptions

NR 422.04: Methods of compliance

NR 423.035: Industrial cleaning operations – part 1. NR 423.037: Industrial cleaning operations – part 2.

NR 425.04: Exceptions and non-ozone season allowances NR 439.04: Recordkeeping

NR 484.10: American Society for Testing and Materials

5.

Plain Language Analysis: Volatile organic compounds (VOCs) react with nitrogen oxides in the presence of sunlight to form ground-level ozone. Concentrations of ozone above the National Ambient Air Quality Standards (NAAQS) are known to adversely impact human health and the environment. The

U.S. Environmental Protection Agency (EPA) has designated several areas in eastern Wisconsin as “nonattainment areas” due to ozone concentrations exceeding the NAAQS. Emissions sources located in nonattainment areas are subject to more stringent controls under the Clean Air Act (CAA).

Section 182(b)(2) of the CAA requires states to implement VOC reasonably available control technology (RACT) regulations in any ozone nonattainment area classified as “moderate” or above. The State’s VOC RACT program must include regulations that reflect the latest Control Techniques Guidelines (CTGs) issued by EPA for specific source categories.

In 2008, EPA released two updated CTGs that provided recommendations for three source categories: miscellaneous plastic parts coating, miscellaneous metal parts coating, and miscellaneous industrial adhesives. The department started rulemaking around 2009 to incorporate these CTGs into rule. At the time, however, it was unclear whether the 2008 CTGs would be challenged in court and possibly modified. After several years, it became clear that the CTGs would not be litigated. They ultimately did not change, and have been in effect since 2008. This rulemaking effort began in 2018, and the scope statement was published in the Administrative Register on February 4, 2019.

Because Wisconsin has had several ozone nonattainment areas subject to this requirement since the CTGs were issued (Sheboygan County and eastern Kenosha County), the department is proposing to update its existing VOC RACT regulations to reflect the latest EPA CTGs. This will ensure the state remains in compliance with CAA Section 182(b)(2) requirements as they apply to moderate and higher ozone nonattainment areas. Wisconsin’s compliance with all CAA requirements, including ensuring compliance with up-to-date RACT rules, will ensure the state has a legally sufficient state implementation plan (SIP) and allow the state to redesignate eligible ozone nonattainment areas to attainment more quickly.

The department is proposing to revise its existing VOC RACT regulations to reflect these EPA CTGs. The current VOC RACT rules (referred to as “Part I” rules) for metal and plastic parts coatings and adhesive use will continue to apply in the state. The updated VOC RACT requirements (“Part II” rules) will apply in the state’s ozone nonattainment areas that have been classified as moderate (or above) for any national ozone standard promulgated in or after 2008. An affected source will either be subject to the Part I rule or the Part II rule for that source category. This will ensure requirements are neither redundant nor conflicting, while still ensuring the state remains in compliance with the CAA’s VOC RACT requirements.

The proposed rule changes are primarily associated with the addition of the Part II rules, which incorporate the CTGs’ VOC content limits for specific types of coatings and adhesives. Additionally, the department is proposing to make several additions, corrections, and clarifications within ch. NR 422 Control of Organic Compound Emissions from Surface Coating, Printing, and Asphalt Surfacing

Operations that affect current rule language for these source categories. The specific proposed rule changes are described below.

Clarification of existing rule language

SECTION 4 clarifies that once a source becomes subject to a VOC RACT rule in ch. NR 422, it remains subject to the rule regardless of future reductions in emissions (“once in, always in”), unless an approved federally enforceable permit or SIP revision permanently restricts the source’s production, capacity utilization, or the hours of operation so that the source’s maximum theoretical emissions, as defined in s. NR 419.02 (11), are below the applicability threshold(s) in ch. NR 422.

This clarification meets the applicable federal VOC RACT exemption requirements identified in EPA’s August 23, 1990 memorandum from G. T. Helms titled, “’Once-in/Always-in’ Requirement for Applicability.” While existing text throughout ch. NR 422 had been interpreted by the department to have this effect, the proposed SECTION 4 language in s. NR 422.01 (3) establishes clear “once in, always in” applicability for all of ch. NR 422. Clarification of the “once in, always in” language is necessary to ensure EPA approval of the proposed rule. SECTIONS 10, 12 through 14, 26, and 27 delete the existing, fragmented occurrences of “once in, always in” language in ss. NR 422.03, 422.05 (1m), 422.06 (1m), 422.08 (1m), 422.14 (1m), and 422.145 (1m).

Definitions

SECTIONS 7 and 9 create 74 definitions to ensure consistency with the CTGs for each unique, currently-undefined coating and adhesive term used in the three proposed Part II rules.

SECTIONS 22 and 32 create definitions within the proposed Miscellaneous metal parts and products

– part II and Plastic parts coating – part II rules for seven terms whose current s. NR 422.02 definition differs from the CTG definition. The proposed definitions for these seven terms ensure consistency with the CTGs and only apply to sources covered by the proposed Part II rules. This was done to meet VOC RACT requirements, but so as not to inadvertently impact other sections of ch. NR 422.

Adoption of CTGs as “Part II” rules

SECTION 22 incorporates the Miscellaneous Metal and Plastic Parts Coatings CTG’s VOC control measures for plastic parts coatings.

SECTION 25 incorporates the Miscellaneous Industrial Adhesives CTG’s VOC control measures for adhesive use.

SECTION 32 incorporates the Miscellaneous Metal and Plastic Parts Coatings CTG’s VOC control measures for miscellaneous metal parts and products coatings.

These proposed Part II rules will apply to sources that meet the applicability threshold in areas of the state that have been classified as moderate (or higher) for any national ozone standard promulgated in or after 2008.

SECTIONS 11 and 33 through 41 update current Methods of compliance (s. NR 422.04), Industrial cleaning operations – part 1 and part II (ss. NR 423.035 and 423.037), Exceptions and non-ozone season allowances (s. NR 425.04), and Recordkeeping (s. NR 439.04) language to include references to the proposed Part II rules.

Corrections

SECTION 10 eliminates conflicts between current language in s. NR 422.03 (7), which establishes exemptions from ch. NR 422 limits for facilities using 55 gallons or less of a coating, and current exemption language in s. NR 422.095. The proposed changes also avoid a conflict with proposed s. NR 422.084 Plastic parts coating – Part II exemption language.

SECTIONS 30 and 31 correct an error made in the AM-44-10 rulemaking, which inadvertently removed the counties of Kewaunee, Manitowoc, and Walworth from the Miscellaneous metal parts and products – Part I rule (s. NR 422.15 (1) (am) 2.).

SECTIONS 17 and 20 remove two notes describing the maximum theoretical emission calculation from the Plastic parts coating – Part I rule (s. NR 422.083 (1)), as notes are not enforceable and the information in the notes are provided elsewhere in ch. NR 422.

SECTIONS 16 and 19 update the types of VOC emissions that should be excluded from a source’s maximum theoretical emissions in s. NR 422.083 Plastic parts coatings – part I. The proposed changes correct errors in past rulemakings, which failed to update references to sections of ch. NR 422.

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)