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ENVIRONMENTAL PROTECTION AGENCY

Veterans Affairs Department

CFR Citation: 40 CFR Part 63

RIN ID: RIN 2060-AG96

OAR ID: [OAR-2003-0005-FRL-7546-8]

NOTICE: Part II

DOCUMENT ACTION: Final rule.

SUBJECT CATEGORY: National Emission Standards for Hazardous Air Pollutants: Surface Coating of Metal Cans

DATES: This rule is effective November 13, 2003. The incorporation by reference of certain publications listed in today's final rule is approved by the Director of the Federal Register as of November 13, 2003.

DOCUMENT SUMMARY: This action promulgates national emission standards for hazardous air pollutants (NESHAP) for metal can surface coating operations located at major sources of hazardous air pollutants (HAP). The final standards implement section 112(d) of the Clean Air Act (CAA) by requiring these operations to meet HAP emission standards reflecting the application of the maximum achievable control technology (MACT). The final rule will protect air quality and promote public health by reducing emissions of HAP from facilities in the metal can surface coating source category. The HAP emitted by these facilities include ethylene glycol monobutyl ether (EGBE) and other glycol ethers, xylenes, hexane, methyl isobutyl ketone (MIBK), and methyl ethyl ketone (MEK). These HAP are associated with a variety of adverse health effects which include chronic health disorders (e.g., birth defects and effects on the central nervous system, liver, and heart) and acute health disorders (e.g., irritation of the lung, skin, and mucous membranes, and effects on the central nervous system), and possibly cancer. In general, these findings have only been shown with concentrations higher than those typically found in the ambient air. The final standards are expected to reduce nationwide HAP emissions from major sources in this source category by approximately 6,160 megagrams per year (Mg/yr) (6,800 tons per year (tpy)) or 70 percent from the baseline organic HAP emissions of 8,700 Mg/yr (9,600 tpy).

SUMMARY: Environmental Protection Agency,

SUPPLEMENTAL INFORMATION

Regulated Entities. The source category definition includes facilities that apply coatings during any stage of the can manufacturing process to metal cans or ends (including decorative tins) or to metal crowns or closures for any type of can body. In general, facilities that coat metal cans are covered under the North American Industrial Classification System (NAICS) codes listed in Table 1 of this preamble. However, facilities classified under other NAICS codes may be subject to the final standards if they meet the applicability criteria. Not all facilities classified under the NAICS codes in the following table will be subject to the standards because some of the classifications cover products outside the scope of the NESHAP for the surface coating of metal cans.
Table 1.Categories and Entities Potentially Regulated by the Final Standards
Examples of Subcategory NAICS potentially regulated entities One and twopiece draw and 332431.............. Twopiece beverage iron (D&I) can body can facility. coatings.
Sheetcoatings............... 332431, 332115, Threepiece food can 332116, 332812, facility, twopiece 332999. D&I facility, one piece aerosol can facility, etc. Threepiece can assembly 332431.............. Can assembly coatings. facility. End coatings................ 332431, 332812...... End manufacturing facilities.

This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be regulated by this action. To determine whether your coating operation is regulated by this action, you should examine the applicability criteria in Sec. 63.3481 of the final rule.

Docket. The EPA has established an official public docket for this action under Docket ID No. OAR20030005 (formerly Docket No. A9841). The official public docket consists of the documents specifically referenced in this action, any public comments received, and other information related to this action. Although a part of the official docket, the public docket does not include confidential business information or other information whose disclosure is restricted by statute. The official public docket is the collection of materials that is available for public viewing at the EPA Docket Center, EPA West, Room B102, 1301 Constitution Avenue, NW., Washington, DC 20460. The Docket Center is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 5661744, and the telephone number for the Docket Center is (202) 5661742. A reasonable fee may be charged for copying docket materials.

Electronic Docket Access. You may access this Federal Register document electronically through the EPA Internet under the Federal Register listings at http://www.epa.gov/fedrgstr/.

An electronic version of the public docket is available through EPA's electronic public docket and comment system, EPA Dockets. You may use EPA Dockets at http://www.epa.gov/edocket/ to view public comments, access the index listing of the contents of the official public docket, and to access those documents in the public docket
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that are available electronically. Although not all docket materials may be available electronically, you may still access any of the publicly available docket materials through the docket facility identified above. Once in the system, select ``search,'' then key in the appropriate docket identification number.

WorldWide Web (WWW). In addition to being available in the docket, an electronic copy of the final rule will also be available on the http://WWW. Following the Administrator's signature, a copy of the final rule will be posted at http://www.epa.gov/ttn/oarpg on EPA's Technology Transfer Network (TTN) policy and guidance page for newly proposed or promulgated rules. The TTN provides information and technology exchange in various areas of air pollution control. If more information regarding the TTN is needed, call the TTN HELP line at (919) 5415384.

Judicial Review. Under section 307(b)(1) of the CAA, judicial review of the final rule is available only by filing a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit by January 12, 2004. Under section 307(d)(7)(B) of the CAA, only an objection to the rule that was raised with reasonable specificity during the period for public comment can be raised during judicial review. Under section 307(b)(2) of the CAA, the requirements that are the subject of today's final rule may not be challenged later in civil or criminal proceedings brought by EPA to enforce the requirements.

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

I. Background

A. What Is the Source of Authority for Development of NESHAP?

B. What Criteria Are Used in the Development of NESHAP?

C. What Are the Primary Sources of Emissions and What Are the Emissions?

D. What Are the Health Effects Associated With HAP Emissions From the Surface Coating of Metal Cans?

II. Summary of the Final Rule

A. What Source Categories and Subcategories Are Affected by the Final Rule?

B. What Is the Affected Source?

C. What Are the Emission Limits, Operating Limits, and Other Standards?

D. What Are the Testing and Initial Compliance Requirements?

E. What Are the Continuous Compliance Provisions?

F. What Are the Notification, Recordkeeping, and Reporting Requirements?
III. What Are the Significant Comments and Changes Since Proposal?

A. End CoatingsRepair Spray Coatings

B. Affected Source Clarification

C. Monitoring, Recordkeeping, and Reporting Costs

D. Performance Test Costs

E. Calculation of Organic HAP Emission Reduction IV. Summary of Environmental, Energy, and Economic Impacts

A. What Are the Air Impacts?

B. What Are the Cost Impacts?

C. What Are the Economic Impacts?

D. What Are the Nonair Health, Environmental, and Energy Impacts?

E. Potential Changes to the Impacts

V. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

B. Paperwork Reduction Act

C. Regulatory Flexibility Act

D. Unfunded Mandates Reform Act

E. Executive Order 13132: Federalism

F. Executive Order 13175: Consultation and Coordination with Indian Tribal Governments

G. Executive Order 13045: Protection of Children from Environmental Health & Safety Risks

H. Executive Order 13211: Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use

I. National Technology Transfer and Advancement Act

J. Congressional Review Act
I. Background
A. What Is the Source of Authority for Development of NESHAP?

Section 112 of the CAA requires us to list categories and subcategories of major sources and area sources of HAP and to establish NESHAP for the listed source categories and subcategories. The metal can (surface coating) category of major sources was listed on July 16, 1992 (57 FR 31576) under the Surface Coating Processes industry group. Major sources of HAP are those that emit or have the potential to emit considering controls equal to or greater than 9.1 Mg/yr (10 tpy) of any one HAP or 22.7 Mg/yr (25 tpy) of any combination of HAP.

B. What Criteria Are Used in the Development of NESHAP?

Section 112(c)(2) of the CAA requires that we establish NESHAP for the control of HAP from both new and existing major sources, based on the criteria set out in section 112(d). The CAA requires the NESHAP to reflect the maximum degree of reduction in emissions of HAP that is achievable, taking into consideration the cost of achieving the emission reduction, any nonair quality health and environmental impacts, and energy requirements. This level of control is commonly referred to as the MACT.

The MACT floor is the minimum control level allowed for NESHAP and is defined under section 112(d)(3) of the CAA. In essence, the MACT floor ensures that the standards are set at a level that ensures that all major sources achieve the level of control at least as stringent as that already achieved by the bettercontrolled and loweremitting sources in each source category or subcategory. For new sources, the MACT floor cannot be less stringent than the emission control that is achieved in practice by the bestcontrolled similar source. The MACT standards for existing sources can be less stringent than standards for new sources, but they cannot be less stringent than the average emission limitation achieved by the bestperforming 12 percent of existing sources in the category or subcategory (or the bestperforming five sources for categories or subcategories with fewer than 30 sources).

In developing the final NESHAP, we considered control options that are more stringent than the floor, taking into consideration the cost of achieving the emission reduction, any nonair quality health and environmental impacts, and energy requirements. In the final rule, EPA is promulgating standards for both existing and new sources consistent with these statutory requirements.
C. What Are the Primary Sources of Emissions and What Are the Emissions?

The primary emission sources in metal can surface coating operations are coating application lines, drying and curing ovens, mixing and thinning areas, and equipment cleaning. Coating application lines and drying and curing ovens are the largest sources of HAP emissions. Recent reformulation efforts involving the primary coatings used in metal can surface coating operations are likely to continue as a result of the final rule and will serve to reduce HAP emissions from these sources. Mixing and thinning areas and equipment cleaning are smaller HAP emission sources, and work practice standards are used to limit the HAP emissions from these sources.

Available emission data collected during the development of the NESHAP show that the primary organic HAP emitted from metal can coating operations include EGBE and other glycol ethers, xylenes, hexane, MEK, and MIBK. Other significant organic HAP identified include isophorone, ethyl benzene, toluene, cumene, napthalene, and formaldehyde. Organic HAP emissions are regulated by the final metal can surface coating rule.
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D. What Are the Health Effects Associated With HAP Emissions From the Surface Coating of Metal Cans?

Ethylene glycol monobutyl ether and other glycol ethers, xylenes, hexane, MEK, and MIBK account for 95 percent of the nationwide HAP emissions from this source category. These HAP are associated with a variety of adverse health effects which include chronic health disorders (e.g., birth defects and effects on the central nervous system, liver, and heart) and acute health disorders (e.g., irritation of the lung, skin, and mucous membranes, and effects on the central nervous system), and possibly cancer.

We do not have current detailed data on each of the facilities covered by these emission standards for this source category or on the people living around the facilities that would be necessary to conduct an analysis to determine the actual population exposures to the HAP emitted from these facilities and potential for resultant health effects. Therefore, we do not know the extent to which the adverse health effects described above occur in the populations surrounding these facilities. However, to the extent that adverse effects do occur, the final rule will reduce emissions and subsequent exposures. II. Summary of the Final Rule
A. What Source Categories and Subcategories Are Affected by the Final Rule?

The final rule applies to you if you own or operate a metal can surface coating operation that uses at least 5,700 liters (1,500 gallons (gal)) of coatings per year and is a major source, is located at a major source, or is part of a major source of HAP emissions, whether or not you manufacture the metal can substrate. The surface coating operations themselves are not required to be major sources of HAP emissions in order for the surface coating operations at a major source facility to be covered by the final rule.

A metal can surface coating facility is any facility that coats metal cans or ends (including decorative tins) or metal crowns or closures for any type of can during any stage of the can manufacturing process. It includes the coating of metal sheets for subsequent processing into cans or can parts, but not the coating of metal coils for cans or can parts. (Coil coating for cans and can parts is included in the NESHAP for the surface coating of metal coil; 40 CFR part 63, subpart SSSS). The source category does not include the coating of pails and drums, which is covered in the NESHAP for the surface coating of miscellaneous metal parts and products (40 CFR part 63, subpart MMMM).

We have established four subcategories in the metal can surface coating category, including: one and twopiece D&I can body coating, sheetcoating, threepiece can body assembly coating, and end coating. Some metal can surface coating facilities include coating operations in more than one subcategory. In those cases, the facilities are subject to more than one emission limit.

You are not subject to the final rule if your coating operation is located at an area source. An area source of HAP is any facility that has the potential to emit HAP but is not a major source. You may establish area source status by limiting the source's potential to emit HAP through appropriate mechanisms available through the permitting authority.

The outcome of two delisting petitions that have been submitted to EPA could significantly affect which sources will be subject to the final rule. These petitions are the petition to delist EGBE from the HAP list and the petition to delist the twopiece beverage can segment from the source category list. Both petitions are being reviewed by EPA. If granted, the delisting of either EGBE or the twopiece beverage can segment could significantly decrease the number of sources affected by the final rule. Once decisions on the petitions are made, we will expeditiously determine whether changes to the final rule are warranted.

B. What Is the Affected Source?

We define an affected source as a stationary source, group of stationary sources, or part of a stationary source to which a specific emission standard applies. The final rule for metal can surface coating defines the affected source as the collection of all surface coating operations within a facility associated with metal cans and ends (including decorative tins) or metal crowns or closures. Those operations involve the following: preparation of a coating for application (e.g., mixing with thinners); process equipment involving storage, transfer, and handling; process equipment involving the application of coatings, thinners, and cleaning materials; handling of waste materials generated by a coating operation; and associated curing and drying equipment.

The affected source does not include research or laboratory equipment or janitorial, building, or facility maintenance operations. C. What Are the Emission Limits, Operating Limits, and Other Standards?

Emission Limits. The final rule limits organic HAP emissions from each new or reconstructed affected source using the emission limits in Table 2 of this preamble. The final emission limits for each existing affected source are given in Table 3 of this preamble. You can choose from several compliance options in the final rule to achieve the emission limit that applies to your affected source. You can comply by applying materials (coatings and thinners) that meet the emission limit, either individually or collectively. You can also use a capture system and addon control equipment to meet the emission limit, or you can comply by using a combination of both approaches. If you use a capture system and addon control equipment, there are alternative control efficiency or outlet concentration limits that you may use to simplify and reduce your recordkeeping and reporting requirements. The alternative emission limits for affected sources using the control efficiency/outlet concentration compliance option are provided in Table 4 of this preamble.
Table 2.Emission Limits for New or Reconstructed Affected Sources Then, you must meet the following

If you apply surface organic HAP emission coatings to metal cans or For all coatings of limit in kilograms metal can parts in this this type . . . (kg) HAP/liter subcategory. . . solids (lb HAP/gal solids): \1,2\ 1. One and twopiece D&I a. Twopiece 0.04 (0.31). can body coating. beverage cansall
coatings.
b. Twopiece food 0.06 (0.50). cansall coatings.
c. Onepiece aerosol 0.08 (0.65). cansall coatings.
2. Sheetcoating............. Sheetcoating........ 0.02 (0.17). 3. Threepiece can assembly. a. Inside spray..... 0.12 (1.03). b. Aseptic side seam 1.48 (12.37). stripes on food
cans.
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c. Nonaseptic side 0.72 (5.96). seam stripes on
food cans.
d. Side seam stripes 1.18 (9.84). on general line
nonfood cans.
e. Side seam stripes 1.46 (12.14). on aerosol cans.
4. End coating.............. a. Aseptic end seal 0.06 (0.54). compounds.
b. Nonaseptic end 0.00 (0.00). seal compounds.
c. Repair sprays.... 0.64 (5.34). \1\ If you apply surface coatings of more than one type within any one subcategory, you may calculate an overall subcategory emission limit according to 40 CFR 63.3531(i).
\2\ Rounding differences in specific emission limits are attributable to unit conversions.
Table 3.Emission Limits for Existing Affected Sources Then, you must meet

If you apply surface the following coatings to metal cans or For all coatings of organic HAP emission metal can parts in this this type . . . limit in kg HAP/ subcategory . . . liter solids (lb HAP/ gal solids): \1,\\2\ 1. One and twopiece D&I a. Twopiece 0.07 (0.59). can body coating. beverage cansall
coatings.
b. Twopiece food 0.06 (0.51). cansall coatings.
c. Onepiece aerosol 0.12 (0.99). cansall coatings.
2. Sheetcoating............. Sheetcoating........ 0.03 (0.26). 3. Threepiece can assembly. a. Inside spray..... 0.29 (2.43). b. Aseptic side seam 1.94 (16.16). stripes on food
cans.
c. Nonaseptic side 0.79 (6.57). seam stripes on
food cans.
d. Side seam stripes 1.18 (9.84). on general line
nonfood cans.
e. Side seam stripes 1.46 (12.14). on aerosol cans.
4. End coating.............. a. Aseptic end seal 0.06 (0.54). compounds.
b. Nonaseptic end 0.00 (0.00). seal compounds.
c. Repair sprays.... 2.06 (17.17). \1\ If you apply surface coatings of more than one type within any one subcategory, you may calculate an overall subcategory emission limit according to 40 CFR 63.3531(i).
\2\ Rounding differences in specific emission limits are attributable to unit conversions.

Table 4.Emission Limits for Affected Sources Using the Control Efficiency/Outlet Concentration Compliance Option If you use the control efficiency/ Then you must comply with one outlet concentration option to comply of the following by using an with the emission limitations for any emissions control system to . . coating operation(s) . . . .
1. In a new or reconstructed affected a. Reduce emissions of total source. HAP, measured as total hydrocarbons (THC) (as carbon),\1\ by 97 percent; or b. Limit emissions of total HAP, measured as THC (as carbon) \1\ to 20 parts per million by volume, dry (ppmvd) at the control device outlet and use a permanent total enclosure.
2. In an existing affected source...... a. Reduce emissions of total HAP, measured as THC (as carbon),\1\ by 95 percent; or b. Limit emissions of total HAP, measured as THC (as carbon) \1\ to 20 ppmvd at the control device outlet and use a permanent total enclosure. \1\ You may choose to subtract methane from THC as carbon measurements.

Operating Limits. If you reduce emissions by using a capture system and addon control device (other than a solvent recovery system for which you conduct a liquidliquid material balance), the operating limits apply to you. These limits are sitespecific parameter limits you determine during the initial performance test of the system. For capture systems that are not permanent total enclosures (PTE), you must establish average volumetric flow rates or duct static pressure limits for each capture device (or enclosure) in each capture system. For capture systems that are PTE, you must establish limits on average facial velocity or pressure drop across openings in the enclosure.

For thermal oxidizers, you must monitor the combustion temperature. For catalytic oxidizers, you must monitor the temperature immediately before and after the catalyst bed or you must monitor the temperature at the inlet to the catalyst bed and implement a sitespecific inspection and maintenance plan for the catalytic oxidizer. For carbon adsorbers for which you do not conduct a liquidliquid material balance, you must monitor the carbon bed temperature and the amount of steam or nitrogen used to desorb the bed. For condensers, you must monitor the outlet gas temperature from the condenser. For concentrators, you must monitor the temperature of the desorption concentrate stream and the
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pressure drop of the dilute stream across the concentrator.

All sitespecific parameter limits that you establish must reflect operation of the capture system and control devices during a performance test that demonstrates achievement of the emission limits during representative operating conditions.

Work Practice Standards. In lieu of emission standards, section 112(h) of the CAA allows work practice standards or other requirements to be established when a pollutant cannot be emitted through a conveyance or capture system or when measurement is not practicable because of technological and economic limitations. Many metal can surface coating facilities use work practice measures to reduce HAP emissions from mixing, cleaning, storage, and waste handling areas as part of their standard operating procedures. They use those measures to decrease solvent usage and minimize exposure to workers. However, we do not have data to accurately quantify the emissions reductions achievable by the work practice measures, and it is not feasible to measure emissions or enforce a numerical standard for emissions from those operations.

Based on information received from the metal can industry during the development of the NESHAP and information available from several similar coating industries for which NESHAP have already been promulgated, we identified a variety of work practice measures for cleaning, storage, mixing, and waste handling. If you use a capture system and addon control device to reduce emissions, you are required to develop and implement a work practice plan that specifies practices and procedures to ensure that, at a minimum, all organicHAPcontaining liquids and waste materials are stored in closed containers; spills of all organicHAPcontaining materials are minimized; closed containers or pipes are used to transport all organicHAPcontaining materials; mixing vessels for organicHAPcontaining materials are kept closed except when adding to, removing, or mixing the contents; and organic HAP emissions are minimized during all cleaning operations.

If your affected source has an existing, documented plan that incorporates steps taken to minimize emissions from the aforementioned sources, then your existing plan may be used to satisfy the requirement for a work practice plan.

Operations during Startup, Shutdown, or Malfunction. If you use a capture system and addon control device for compliance, you are required to develop and operate according to a startup, shutdown, and malfunction plan (SSMP) during periods of startup, shutdown, or malfunction (SSM) of the capture system and addon control device.

The NESHAP General Provisions at 40 CFR part 63, subpart A, codify certain procedures and criteria for all 40 CFR part 63 NESHAP and apply to you as indicated in the final rule. The General Provisions contain administrative procedures, preconstruction review procedures for new sources, and procedures for conducting compliancerelated activities, such as notifications, recordkeeping and reporting, performance testing, and monitoring. The final rule refers to individual sections of the General Provisions to emphasize key sections that are relevant. However, unless specifically overridden in the final rule, all of the applicable General Provisions requirements apply to you.
D. What Are the Testing and Initial Compliance Requirements?

Existing affected sources must be in compliance with the final rule no later than November 13, 2006. New and reconstructed affected sources must be in compliance upon initial startup of the affected source or by November 13, 2003, whichever is later. However, affected sources are not required to demonstrate compliance until the end of the initial compliance period when they will have accumulated the necessary records to document the rolling 12month organic HAP emission rate.

Compliance with the emission limits is based on a rolling 12month organic HAP emission rate determined each month. Each 12month period is a compliance period. The initial compliance period, therefore, is the 12month period beginning on the compliance date. If the compliance date occurs on any day other than the first day of a month, then the initial compliance period begins on the compliance date and extends through the end of that month plus the following 12 months. In other words, the initial compliance period could be almost 13 months long, but all subsequent compliance periods will be 12 months long. We have defined ``month'' as a calendar month or a prespecified period of 28 to 35 days to allow for flexibility at sources where data are based on a business accounting period.

Being ``in compliance'' means that the owner or operator of the affected source meets the requirements to achieve the final emission limitations during the initial compliance period. However, the owner or operator will not have accumulated the records for the rolling 12month organic HAP emission rate until the end of the initial compliance period. At the end of the initial compliance period, the owner or operator uses the data and records generated to determine whether or not the affected source is in compliance with the organic HAP emission limit and other applicable requirements for that period. If the affected source does not meet the applicable limit and other requirements, it is out of compliance for the entire compliance period.

Emission Limits. There are four options for complying with the emission limits, and the testing and initial compliance requirements vary accordingly.

Option 1: Compliance Based on the Compliant Material Option. If you demonstrate compliance based on the compliant material option, you must determine the mass of organic HAP in all coatings and thinners used each month during the initial compliance period and the volume fraction of coating solids in all coatings used each month during the initial compliance period. To determine the mass of organic HAP in coatings and thinners and the volume fraction of coating solids, you may use either manufacturer's data or test results using the test methods listed below. You may use alternative test methods provided that you get EPA approval in accordance with 40 CFR 63.7(f). However, if there is any inconsistency between the test method results (either EPA's or an approved alternative) and manufacturer's data, the test method results will prevail for compliance and enforcement purposes unless, after consultation, you can demonstrate to the satisfaction of the enforcement agency that the formulation data are correct.
[sbull] For organic HAP content, use Method 311 of 40 CFR part 63, appendix A.
[sbull] The final rule allows you to use nonaqueous volatile matter as a surrogate for organic HAP. If you choose that option, then use Method 24 of 40 CFR part 60, appendix A, to determine nonaqueous volatile matter.
[sbull] For volume fraction of coating solids, use either information from the supplier or manufacturer of the material, American Society of Testing and Materials (ASTM) Method D269786(1998), or ASTM Method D609397.

To demonstrate initial compliance based on the compliant materials option, you are required to demonstrate that the organic HAP content of each coating meets the applicable emission
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limits and that you use no organicHAPcontaining thinners.

Option 2: Compliance Based on the Emission Rate without Addon Controls Option. If you demonstrate compliance based on the emission rate without addon controls option, you must determine the mass of organic HAP in all coatings and thinners used in each coating type segment each month during the initial compliance period, and the volume fraction of coating solids in all coatings in each coating type segment used each month during the initial compliance period.

To determine the mass of organic HAP in coatings and thinners and the volume fraction of coating solids, you may use either
manufacturer's data or test results using the test methods listed below. You may use alternative test methods provided that you get EPA approval in accordance with 40 CFR 63.7(f). However, if there is any inconsistency between the test method results (either EPA's or an approved alternative) and manufacturer's data, the test method results will prevail for compliance and enforcement purposes unless, after consultation, you can demonstrate to the satisfaction of the enforcement agency that the formulation data are correct.
[sbull] For organic HAP content, use Method 311 in 40 CFR part 63, appendix A.
[sbull] The final rule allows you to use nonaqueous volatile matter as a surrogate for organic HAP. If you choose that option, use Method 24 in 40 CFR part 60, appendix A to determine nonaqueous volatile matter.
[sbull] For volume fraction of coating solids, use either information from the supplier or manufacturer of the material, ASTM Method D269786 (Reapproved 1998), or ASTM Method D609397.

To demonstrate initial compliance based on the emission rate without addon controls option, you are required to demonstrate that the total mass of organic HAP in all coatings and thinners in each coating type segment divided by the total volume of coating solids in that coating type segment meets the applicable emission limit. For the emission rate without addon controls option, you are required to perform the following:
[sbull] Determine the quantity of each coating and thinner used in each coating type segment.
[sbull] Determine the mass of organic HAP in each coating and thinner in each coating type segment.
[sbull] Determine the volume fraction of coating solids for each coating in each coating type segment.
[sbull] Calculate the total mass of organic HAP in all materials in each coating type segment and total volume of coating solids in each coating type segment for each month of the initial compliance period. You may subtract from the total mass of organic HAP the amount contained in waste materials you send to a hazardous waste treatment, storage, and disposal facility regulated under 40 CFR part 262, 264, 265, or 266.
[sbull] Calculate the ratio of the total mass of organic HAP for the materials used in each coating type segment to the total volume of coating solids used in the segment.
[sbull] Record the calculations and results and include them in your Notification of Compliance Status.

Alternatively, if you apply coatings in more than one coating type segment within a subcategory, you may calculate an overall HAP emission limit for the subcategory and demonstrate compliance by including all coatings and thinners in all coating type segments in the subcategory in calculating the ratio of total mass of organic HAP to total volume of coating solids. If you use this approach, you must use the subcategory limit throughout the 12month initial compliance period and may not switch between compliance with limits for individual coating type segments and an overall limit. Also, if you follow this approach, you may not include coatings in different subcategories in determining your overall HAP limit.

Option 3: Compliance Based on the Emission Rate with Addon Controls Option. If you use a capture system and addon control device other than a solvent recovery system for which you conduct a liquid liquid material balance, your testing and initial compliance requirements are as follows:
[sbull] Conduct an initial performance test to determine the capture and control efficiencies of the equipment and to establish operating limits to be achieved on a continuous basis.
[sbull] Determine the mass of organic HAP in each material and the volume fraction of coating solids for each coating used each month of the initial compliance period.
[sbull] Calculate the organic HAP emissions from the controlled coating operations using the capture and control efficiencies determined during the performance test and the total mass of organic HAP in materials used in controlled coating operations.
[sbull] Calculate the ratio of the total mass of organic HAP emissions to the total volume of coating solids used each month of the initial compliance period.
[sbull] Record the calculations and results and include them in the Notification of Compliance Status.

If you use a capture system and addon control device other than a solvent recovery system for which you conduct liquidliquid material balances, you must determine both the efficiency of the capture system and the emissions reduction efficiency of the control device. To determine the capture efficiency, you must either verify the presence of a PTE using EPA Method 204 of 40 CFR part 51, appendix M, or use one of the protocols in Sec. 63.3544 of the final rule to measure capture efficiency. If you have a PTE, apply and dry all the materials within the PTE, and route all exhaust gases from the PTE to a control device, then you may assume 100 percent capture.

To determine the emissions reduction efficiency of the control device, you must conduct measurements of the inlet and outlet gas streams. The test must consist of three runs, each run lasting at least 1 hour, using the following EPA Methods in 40 CFR part 60, appendix A: [sbull] Method 1 or 1A for selection of the sampling sites. [sbull] Method 2, 2A, 2C, 2D, 2F, or 2G to determine the gas volumetric flow rate.
[sbull] Method 3, 3A, or 3B for gas analysis to determine dry molecular weight. You may also use as an alternative to Method 3B, the manual method for measuring the oxygen, carbon dioxide, and carbon monoxide content of exhaust gas in ANSI/ASME PTC 19.101981. [sbull] Method 4 to determine stack moisture.
[sbull] Method 25 or 25A to determine organic volatile matter concentration.

Alternatively, any other test method or data that have been validated according to the applicable procedures in Method 301 of 40 CFR part 63, appendix A, and approved by the Administrator could be used.

If you use a solvent recovery system, you may determine the overall control efficiency using a liquidliquid material balance instead of conducting an initial performance test. If you use the material balance alternative, you are required to measure the amount of all materials used in the affected source during each month of the initial compliance period and determine the volatile matter contained in these materials. You must also measure the amount of volatile matter recovered by the solvent recovery system each month of the compliance period. Then, you must compare the amount recovered to the amount used to determine the overall control efficiency and apply this efficiency to the ratio of organic HAP to coating solids for the materials used. You must record the
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calculations and results and include them in your Notification of Compliance Status.

Alternatively, if you apply coatings in more than one coating type segment within a subcategory, you may calculate an overall HAP emission limit for the subcategory and demonstrate compliance by including all coatings and thinners in all coating type segments in the subcategory in calculating the ratio of total mass of organic HAP to total volume of coating solids. If you use this approach, you must use the subcategory limit throughout the compliance period and may not switch between compliance with limits for individual coating type segments and an overall limit. Also, if you follow this approach, you may not include coatings in different subcategories in determining your overall HAP limit.

Operating Limits. As mentioned above, you must establish operating limits as part of the initial performance test of an emission capture and control system. The operating limits are the values of certain parameters measured for capture systems and control devices during the most recent performance test that demonstrated compliance with the emission limits. The final rule specifies the parameters to monitor for the types of emission control systems commonly used in the industry. Table 4 to the final rule summarizes the monitoring requirements for each type of control device.

You are required to install, calibrate, maintain, and continuously operate all monitoring equipment according to the manufacturer's specifications and ensure that the continuous parameter monitoring systems (CPMS) meet the requirements in Sec. 63.3547 of the final rule. If you use control devices other than those identified in the final rule, you must submit the operating parameters to be monitored to the Administrator for approval. The authority to approve the parameters to be monitored is retained by EPA and is not delegated to States.

Work Practice Standards. If you use a capture system and control device for compliance, you are required to develop and implement on an ongoing basis a work practice plan for minimizing organic HAP emissions from storage, mixing, material handling, and waste handling operations. That plan must include a description of all steps taken to minimize emissions from those sources (e.g., using closed storage containers, implementing practices to minimize emissions during filling and transfer of contents from containers, using spill minimization techniques, etc.). You must make the plan available for inspection if the Administrator requests to see it.

Operations during Startup, Shutdown, or Malfunction. If you use a capture system and control device for compliance, you are required to develop and operate according to an SSMP during periods of SSM of the capture system and control device.

Option 4: Compliance Based on the Control Efficiency/Outlet Concentration Option. If you use a capture system and addon control device other than a solvent recovery system for which you conduct a liquidliquid material balance, you may meet either of the applicable alternative limits summarized in Table 4 of this preamble instead of the organic HAP emission rate limits summarized in Tables 2 and 3 of this preamble. Prior to the initial performance test, you are required to install control device parameter monitoring equipment to be used to demonstrate compliance with the capture and control efficiencies (or the capture efficiency of the capture system and the oxidizer outlet concentration) and to establish operating limits to be achieved on a continuous basis. During the initial compliance test, you must use the control device parameter monitoring equipment to establish parameter values that represent your operating requirements for the control systems. You must record the initial performance test results and include them in the Notification of Compliance Status.

If you use a capture system and addon control device other than a solvent recovery system for which you conduct liquidliquid material balances, you must verify that the efficiency of the capture system is 100 percent and determine the emissions reduction efficiency of the control device. To verify the capture efficiency, you must either verify the presence of a PTE using EPA Method 204 of 40 CFR part 51, appendix M, or use one of the protocols in Sec. 63.3544 of the final rule to measure capture efficiency. If you have a PTE, apply and dry all the materials within the PTE and route all exhaust gases from the enclosure to a control device, then you may assume 100 percent capture.

To determine the emissions reduction efficiency of the control device, you must conduct measurements of the inlet and outlet gas streams. The test must consist of three runs, each run lasting at least 1 hour, using the following EPA Methods in 40 CFR part 60, appendix A: [sbull] Method 1 or 1A for selection of the sampling sites. [sbull] Method 2, 2A, 2C, 2D, 2F, or 2G to determine the gas volumetric flow rate.
[sbull] Method 3, 3A, or 3B for gas analysis to determine dry molecular weight. You may also use as an alternative to Method 3B, the manual method for measuring the oxygen, carbon dioxide, and carbon monoxide content of exhaust gas in ANSI/ASME PTC 19.101981. [sbull] Method 4 to determine stack moisture.
[sbull] Method 25 or 25A to determine organic volatile matter concentration.
Alternatively, any other test method or data that have been validated according to the applicable procedures in Method 301 of 40 CFR part 63, appendix A, and approved by the Administrator could be used.

If you use a solvent recovery system, you may determine the overall control efficiency using a liquidliquid material balance instead of conducting an initial performance test. If you use the material balance alternative, you are required to measure the amount of all materials used in the affected source during each month of the initial compliance period and determine the volatile matter contained in these materials. You must also measure the amount of volatile matter recovered by the solvent recovery system each month of the initial compliance period. Then, you must compare the amount recovered to the amount used to determine the overall control efficiency and apply this efficiency to the ratio of organic HAP to coating solids for the materials used. You must record the calculations and results and include them in your Notification of Compliance Status.

Operating Limits. As mentioned above, you must establish operating limits as part of the initial performance test of an emission capture and control system. The operating limits are the values of certain parameters measured for capture systems and control devices during the most recent performance test that demonstrated compliance with the emission limits. The final rule specifies the parameters to monitor for the types of emission control systems commonly used in the industry. Table 4 to the final rule summarizes the monitoring requirements for each type of control device.

You are required to install, calibrate, maintain, and continuously operate all monitoring equipment according to the manufacturer's specifications and ensure that the CPMS meet the requirements in Sec. 63.3547 of the final rule. If you use control devices other than those identified in the final rule, you must submit the operating parameters to be monitored to the Administrator for approval. The authority to approve the parameters to
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be monitored is retained by EPA and is not delegated to States.

Work Practice Standards. If you use a capture system and control device for compliance, you are required to develop and implement on an ongoing basis a work practice plan for minimizing organic HAP emissions from storage, mixing, material handling, and waste handling operations. That plan must include a description of all steps taken to minimize emissions from those sources (e.g., using closed storage containers, implementing practices to minimize emissions during filling and transfer of contents from containers, using spill minimization techniques, etc.). You must make the plan available for inspection if the Administrator requests to see it.

Operations during Startup, Shutdown, or Malfunction. You are required to develop and operate your capture system and control device according to an SSMP during periods of SSM of the capture system and control device.

E. What Are the Continuous Compliance Provisions?

Emission Limits. Option 1: Compliance Based on the Compliant Material Option. If you demonstrate compliance with the final emission limits based on the compliant material option, you will demonstrate continuous compliance if, for each 12month compliance period, the organic HAP content of each coating used does not exceed the applicable emission limit and you use no thinner that contains organic HAP.

Option 2: Compliance Based on the Emission Rate without Addon Controls Option. If you demonstrate compliance with the final emission limits based on the emission rate without addon controls option, you will demonstrate continuous compliance if, for each rolling 12month compliance period, the ratio of organic HAP in all coatings and thinners in each coating type segment to coating solids in that coating type segment is less than or equal to the applicable emission limit. You follow the same procedures for calculating the organic HAP to coating solids ratio that you used for the initial compliance period. If you use an alternative calculated overall HAP emission limit for all coating type segments within a subcategory, you use the same procedures that you used for the initial compliance period. Whichever approach you use must be used consistently throughout each 12month compliance period.

Option 3: Compliance Based on the Emission Rate with Addon Controls Option. For each coating operation on which you use a capture system and control device other than a solvent recovery system for which you conduct a liquidliquid material balance, you must use the continuous parameter monitoring results for the month in determining the mass of organic HAP emissions. If the monitoring results indicate no deviations from the operating limits and there were no bypasses of the control device, you would assume the capture system and control device are achieving the same percent emissions reduction efficiency as they did during the most recent performance test in which compliance was demonstrated. You would then apply that percent reduction to the total mass of organic HAP in materials used in controlled coating operations to determine the monthly emission rate from those operations. If there were any deviations from the operating limits during the month or any bypasses of the control device, you must account for them in the calculation of the monthly emission rate by assuming the capture system and control device were achieving zero emissions reduction during the periods of deviation, unless you have other data indicating the actual efficiency of the emission capture system and addon control device, and the use of these data is approved by the Administrator. Then, you would determine the annual average emission rate by calculating the ratio for the most recent 12month period.

For each coating operation on which you use a solvent recovery system and conduct a liquidliquid material balance each month, you will use the liquidliquid material balance to determine control efficiency. To determine the overall control efficiency, you must measure the amount of all materials used during each month and determine the volatile matter content of these materials. You must also measure the amount of volatile matter recovered by the solvent recovery system during the month, calculate the overall control efficiency, and apply it to the total mass of organic HAP in the materials used to determine total organic HAP emissions. Then, you would determine the annual average emission rate by taking the average of the monthly ratios for the most recent 12month period.

Operating Limits. If you use a capture system and control device, the final rule requires you to achieve on a continuous basis the operating limits you establish during the performance test. If the continuous monitoring shows that the capture system and control device are operating outside the range of values established during the performance test, you have deviated from the established operating limits.

If you operate a capture system and control device that allow emissions to bypass the control device, you must monitor for potential bypass of the control device to demonstrate that organic HAP emissions from each emission point within the affected source are being routed to the control device. You may choose from the following four monitoring procedures:
[sbull] Flow control position indicator to provide a record of whether the exhaust stream is directed to the control device. [sbull] Carseal or lockandkey valve closures to secure the bypass line valve in the closed position when the control device is operating.
[sbull] Valve closure continuous monitoring to ensure that any bypass line valve or damper is closed when the control device is operating.
[sbull] Automatic shutdown system to stop the coating operation when flow is diverted from the control device.

If the bypass monitoring procedures indicate that emissions are not routed to the control device, you have deviated from your monitoring plan.

Work Practice Standards. If you use an emission capture system and control device for compliance, you are required to implement on an ongoing basis the work practice plan you developed during the initial compliance period. If you did not develop a plan for reducing organic HAP emissions or you do not implement the plan, this would be a deviation from the work practice standards.

Operations during Startup, Shutdown, or Malfunction. If you use a capture system and control device for compliance, you are required to develop and operate according to an SSMP during periods of SSM of the capture system and control device.

Option 4: Compliance Based on the Control Efficiency/Outlet Concentration Option. If you use a capture system and addon control device other than a solvent recovery system for which you conduct a liquidliquid material balance, your testing and continuous compliance requirements are the same as those in option 3. For addon control systems, you are required to install control device parameter monitoring equipment to be used to demonstrate compliance with the operating requirements for addon control systems in the final rule. If you operate a CPMS, it has to collect data at least every 15 minutes, and you must have at least three data points per hour to have a valid hour of data. You must operate the CPMS at all times that the surface coating operation and control systems
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are operating. You also must conduct proper maintenance of the CPMS and maintain an inventory of necessary parts for routine repairs of the CPMS. Using the data collected with the CPMS, you must calculate and record the average values of each operating parameter according to the specified averaging times.
F. What Are the Notification, Recordkeeping, and Reporting Requirements?

You are required to comply with the applicable requirements in the NESHAP General Provisions, subpart A of 40 CFR part 63, as described in the final rule. The General Provisions notification requirements include initial notifications, notification of performance test if you are complying using a capture system and control device, notification of compliance status, and additional notifications required for affected sources with continuous monitoring systems. The General Provisions also require certain records and periodic reports.

Initial Notification. If the final standards apply to you as a new or reconstructed affected source, you must send a notification to the EPA Regional Office in the Region where your facility is located and to your State agency within 120 days after the date of initial startup or 120 days after publication of the final rule, whichever is later. Existing affected sources must send the Initial Notification within 1 year after publication of the final rule. The report notifies us and your State agency that you have constructed a new facility, reconstructed an existing facility, or have an existing facility that is subject to the final rule. Thus, it allows you and the permitting authority to plan for compliance activities. You also need to send a notification of planned construction or reconstruction of a source that would be subject to the final rule and apply for approval to construct or reconstruct.

Notification of Performance Test. If you demonstrate compliance by using a capture system and control device for which you do not conduct a liquidliquid material balance, you must conduct a performance test. For a new or reconstructed affected source, the performance test must take place no later than 180 days after initial startup or 180 days after publication of the final rule, whichever is later. For an existing source, you must conduct the performance test no later than the compliance date. You must notify us (or the delegated State or local agency) at least 60 calendar days before the performance test is scheduled to begin, as indicated in the General Provisions for the NESHAP.

Notification of Compliance Status. Your compliance procedures depend on which compliance option you choose. For each compliance option, you must send us a Notification of Compliance Status within 30 days of the end of the initial compliance period. In the notification, you must certify whether the affected source has complied with the final standards, identify the option(s) you used to demonstrate initial compliance, summarize the data and calculations supporting the compliance demonstration, and describe how you will determine continuous compliance.

If you elect to comply by using a capture system and control device for which you conduct performance tests, you must provide the results of the tests. Your notification must also include the measured range of each monitored parameter, the operating limits established during the performance test, and information showing whether the affected source complied with its operating limits during the initial compliance period.

Recordkeeping Requirements. You are required to keep for 5 years records of reported information and all other information necessary to document compliance with the final rule. As required under the General Provisions, records for the 2 most recent years must be kept onsite; records for the other 3 years may be kept offsite. Records pertaining to the design and operation of control and monitoring equipment must be kept for the life of the equipment.

Depending on the compliance option that you choose, you must keep records of the following:
[sbull] Organic HAP content, volatile matter content, coating solids content, and quantity of the coatings and other materials applied.
[sbull] All documentation supporting Initial Notifications and Notifications of Compliance Status.

If you demonstrate compliance by using a capture system and control device, you also need to keep records of the following:
[sbull] The occurrence and duration of each SSM of the emission capture system and control device.
[sbull] All maintenance performed on the capture system and control device.
[sbull] Actions taken during SSM that are different from the procedures specified in the affected source's SSMP.
[sbull] All information necessary to demonstrate conformance with the affected source's SSMP when the plan procedures are followed. [sbull] All information necessary to demonstrate conformance with the affected source's plan for minimizing emissions from mixing, storage, and waste handling operations.
[sbull] Each period during which a CPMS is malfunctioning or inoperative (including outofcontrol periods).
[sbull] All required measurements needed to demonstrate compliance with the standards.

[sbull] All results of performance tests.

The final rule requires you to collect and keep records according to your monitoring plan. Failure to collect and keep the specified minimum data is a deviation that is separate from deviations from emission limits, operating limits, or work practice standards.

Deviations, as determined from those records, must be recorded and also reported. A deviation is any instance when any requirement or obligation established by the final rule including, but not limited to, the emission limits, operating limits, and work practice standards, is not met.

If you use a capture system and control device to reduce organic HAP emissions, you must make your SSMP available for inspection if the Administrator requests to see it. The plan must stay in your records for the life of the affected source or until the affected source is no longer subject to the final standards. If you revise the plan, you need to keep the previous superceded versions on record for 5 years following the revision.

Periodic Reports. Each year is divided into two semiannual reporting periods. If no deviations occur during a semiannual reporting period, you must submit a semiannual report stating that the affected source has been in continuous compliance. If deviations occur, you must include them in the report as follows:
[sbull] Report each deviation from the emission limit.
[sbull] If you use an emission capture system and control device, report each deviation from the work practice standards.
[sbull] If you use an emission capture system and control device, report each deviation from an operating limit and report each time a bypass line diverts emissions from the control device to the atmosphere.
[sbull] Report other specific information on the periods of time and details of deviations that occurred.

You must also include an explanation in each semiannual report if a change occurs that might affect the compliance status of the affected source or if you
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change to another option for meeting the applicable emission limit.

Other Reports. You are required to submit reports for periods of SSM of the capture system and control device. If the procedures you follow during any SSM are inconsistent with your plan, you must report those procedures in immediate reports required by the General Provisions in Sec. 63.10(d)(5)(ii) and in your semiannual reports. III. What Are the Significant Comments and Changes Since Proposal?

Refer to the BID (``National Emission Standards for Hazardous Air Pollutants: Surface Coating of Metal Cans Background Information for Final StandardsSummary of Public Comments and Responses,'' August 2003, EPA453/R03009), for EPA's responses to each public comment; available in Docket No. OAR20030005 (formerly Docket No. A9841). A. End CoatingsRepair Spray Coatings

Comment: Two commenters stated that postcoat repair spray for easyopen ends was not covered by the proposed rule. The commenters stated that the proper classification of repair spray under the proposed NESHAP could be complicated by the various ways in which it is regulated under current State standards for reducing volatile organic compounds. The commenters recommended that EPA establish a specific emission limit for this type of coating, which has the potential for more use in the future because of increasing customer demand for easy open ends.

Response: Using the coatings data and information provided by the commenters, we have added a separate emission limit for repair spray coatings under the end coating subcategory (formerly called end lining) in the final rule. As indicated by the name, repair spray coatings are used to cover breaks in the coating that are caused during the formation of the score in easyopen ends or to provide, after the manufacturing process, an additional protective layer for corrosion resistance. The emission limit in the final rule for repair spray coatings is 2.06 kilograms (kg) HAP/liter solids (17.17 lb HAP/gal solids) for existing affected sources and 0.64 kg HAP/liter solids (5.34 lb HAP/gal solids) for new affected sources. We also included a definition for ``repair spray'' in the definitions section of the final rule.

B. Affected Source Clarification

Comment: Some commenters expressed confusion regarding how we defined ``affected source'' and ``new affected source'' in the proposed rule.

Response: In Sec. 63.3482(b) of the final rule, an affected source is defined as the collection of all coating operations used for surface coating of metal cans or ends (including decorative tins) or metal crowns or closures. Section 63.3482(c) also states that an affected source is a new affected source if you commenced its construction after January 15, 2003 (proposal date) and the construction is of a completely new metal can surface coati

FOR FURTHER INFORMATION CONTACT Mr. Paul Almod[oacute]var, Coatings and Consumer Products Group, Emission Standards Division (C53903), U.S. EPA, Research Triangle Park, NC 27711; telephone number (919) 541 0283; facsimile number (919) 5415689; electronic mail address: almodovar.paul@epa.gov.