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ENVIRONMENTAL PROTECTION AGENCY

Treasury Department

CFR Citation: 40 CFR Part 63

RIN ID: RIN 2060-AG56

OAR ID: [OAR-2003-0116-FRL-7549-7]

NOTICE: Part II

DOCUMENT ACTION: Final rule.

SUBJECT CATEGORY: National Emission Standards for Hazardous Air Pollutants: Surface Coating of Miscellaneous Metal Parts and Products

DOCUMENT SUMMARY: This action promulgates national emission standards for hazardous air pollutants (NESHAP) for miscellaneous metal parts and products surface coating operations located at major sources of hazardous air pollutants (HAP). The final rule implements 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 the public health by reducing emissions of HAP from facilities in the miscellaneous metal parts and products surface coating source category. The organic HAP emitted by these operations include xylenes, toluene, methyl ethyl ketone (MEK), phenol, cresols/ cresylic acid, glycol ethers (including ethylene glycol monobutyl ether (EGBE)), styrene, methyl isobutyl ketone (MIBK), and ethyl benzene. Exposure to these substances has been demonstrated to cause adverse health effects such as irritation of the lung, skin, and mucous membranes, and effects on the central nervous system, liver, and heart. In general, these findings have only been shown with concentrations higher than those typically in the ambient air. The final standards are expected to reduce nationwide organic HAP emissions from major sources in this source category by approximately 48 percent.

SUMMARY: Environmental Protection Agency,

SUPPLEMENTAL INFORMATION

Regulated Entities. The source category definition includes facilities that apply coatings to miscellaneous metal parts and products. In general, facilities that coat miscellaneous metal parts and products are covered under the North American Industrial Classification System (NAICS) codes listed in Table 1. 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 final standards because some of the classifications cover products outside the scope of the NESHAP for miscellaneous metal parts and products.
Table 1.Categories and Entities Potentially Regulated by the Final Rule Examples of potentially regulated Category NAICS entities Automobile Parts...................... 335312, 336111, 336211, 336312, Engine parts, vehicle parts and 33632, 33633, 33634, 33637, 336399. accessories, brakes, axles, etc. Extruded Aluminum..................... 331316, 331524, 332321, 332323..... Extruded aluminum, architectural components, rod, and tubes. Heavy Equipment....................... 33312, 333611, 333618.............. Tractors, earth moving machinery. Job Shops............................. 332312, 332722, 332813, 332991, Any of the products from the 332999, 334119, 336413, 339999. miscellaneous metal parts and products segments. Large Trucks and Buses................ 33612, 336211...................... Large trucks and buses. Magnet Wire........................... 331319, 331422, 335929............. Magnet wire. Metal Buildings....................... 332311............................. Prefabricated metal: buildings, carports, docks, dwellings, greenhouses, panels for buildings. Metal Containers...................... 33242, 81131, 322214, 326199, Drums, kegs, pails, shipping 331513, 332439. containers. Metal Pipe and Foundry................ 331111, 331513, 33121, 331221, Plate, tube, rods, nails, spikes, 331511. etc. Rail Transportation................... 33651, 336611, 482111.............. Brakes, engines, freight cars, locomotives. Recreational Vehicles................. 3369, 331316, 336991, 336211, Motorcycles, motor homes, 336112, 336213, 336214, 336399. semitrailers, truck trailers. RubbertoMetal Products.............. 326291, 326299..................... Engine mounts, rubberized tank tread, harmonic balancers. Structural Steel...................... 332311, 332312..................... Joists, railway bridge sections, highway bridge sections. Other Transportation Equipment........ 336212, 336999, 33635, 56121, 8111, Miscellaneous transportation 56211. related equipment and parts.

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. 63.3881 of the final rule.

Docket. The EPA has established an official public docket for this action under Docket ID No. OAR20030116 (formerly docket A9734). 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
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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 EPA Docket Center Public Reading Room 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 Air Docket 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 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 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 the filing of a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit by March 2, 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 established by the final rule may not be challenged separately in any civil or criminal proceedings brought by EPA to enforce these requirements.

Outline: The following outline is provided to aid in reading the preamble to the final rule:

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 organic HAP emissions from the surface coating of metal parts and products? II. Summary of the Final Rule

A. What source categories and subcategories are affected by the final rule?

B. What is the relationship to other rules?

C. What is the affected source?

D. What are the emission limits, operating limits, and other standards?

E. What are the testing and initial compliance requirements?

F. What are the continuous compliance provisions?

G. What are the notification, recordkeeping, and reporting requirements?
III. What are the significant differences from proposal?

A. Applicability

B. Scope of Category

C. Emission Limits

D. Method for Determining HAP Content

E. Deviations From Operating Parameters

F. New Alternatives to Facilitate Compliance with Multiple Coating NESHAP and Multiple Emission Limits

G. Initial and Continuous Compliance Demonstrations for Magnet Wire Sources
IV. What are the responses to significant comments?

A. Applicability and Scope of Source Category

B. Need for Separate Source Category for Department of Defense Coatings

C. Overlap with Activities Subject to Other Surface Coating NESHAP

D. Complying with the Rule Representing the Majority of the Substrate (Plastic or Metal) on Preassembled Parts

E. Complying with the Most Stringent NESHAP

F. Assembled Onroad Vehicle Coating

G. The MACT Floor Approach and Database

H. Compliance Options for Meeting the Emission Limits

I. Methods for Expressing Organic HAP Content of Coatings

J. High Performance Coatings

K. Compliance Requirements for Sources with Addon Controls

L. Compliance Requirements for Magnet Wire Sources V. 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?

VI. 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 Risks and 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 Miscellaneous Metal Parts and Products (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 megagrams per year (Mg/yr) (10 tons per year (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 upon 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 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 standard is set at a level that assures 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 [[Page 132]]
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 MACT floor, taking into account consideration of the cost of achieving the emission reduction, any non air 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 final NESHAP regulate emissions of organic HAP. Available emission data collected during the development of the final NESHAP show that the primary organic HAP emitted from the surface coating of miscellaneous metal parts and products include xylenes, toluene, MEK, phenol, cresols/cresylic acid, glycol ethers (including EGBE), styrene, MIBK, and ethyl benzene. These compounds account for approximately 90 percent of this category's nationwide organic HAP emissions.

The majority of organic HAP emissions from a facility engaged in miscellaneous metal parts and products surface coating operations can be attributed to the application, drying, and curing of coatings. The remaining emissions are primarily from cleaning operations. In most cases, organic HAP emissions from mixing, storage, and waste handling are relatively small. The organic HAP emissions associated with coatings (the term ``coatings'' includes protective and decorative coatings as well as adhesives) occur at several points. Coatings are most often applied either by using a spray gun in a spray booth or by dipping the substrate in a tank containing the coating. In a spray booth, volatile components evaporate from the coating as it is applied to the part and from the overspray. The coated part then passes through an open (flashoff) area where additional volatiles evaporate from the coating. Finally, the coated part passes through a drying/curing oven, or is allowed to air dry, where the remaining volatiles are evaporated.

Organic HAP emissions also occur from the activities undertaken during cleaning operations, including paint stripping, where solvent is used to remove coating residue or other unwanted materials. Cleaning in this industry includes cleaning of spray guns and transfer lines (e.g., tubing or piping), tanks, and the interior of spray booths. Cleaning also includes applying solvents to manufactured parts prior to coating application and to equipment (e.g., cleaning rollers, pumps, conveyors, etc.).

Mixing and storage are other sources of emissions. Organic HAP emissions can occur from displacement of organic vaporladen air in containers used to store HAP solvents or to mix coatings containing HAP solvents. The displacement of vaporladen air can occur during the filling of containers and can be caused by changes in temperature or barometric pressure, or by agitation during mixing.
D. What Are the Health Effects Associated With Organic HAP Emissions From the Surface Coating of Metal Parts and Products?

The HAP to be controlled with the final rule are associated with a variety of adverse health effects. These adverse health effects include chronic health disorders (e.g., irritation of the lung, eyes, and mucous membranes and effects on the central nervous system) and acute health disorders (e.g., lung irritation and congestion, alimentary effects such as nausea and vomiting, and effects on the central nervous system).

We do not have the type of current detailed data on each of the facilities covered by these emission standards for this source category, and the people living around the facilities, that would be necessary to conduct an analysis to determine the actual population exposures to the organic 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 the 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 miscellaneous metal parts and products surface coating facility that is a major source, or is located at a major source, or is part of a major source of HAP emissions. We define a miscellaneous metal parts and products surface coating facility as any facility engaged in the surface coating of any miscellaneous metal part or product. If application of coating to a substrate occurs, then surface coating also includes associated activities, such as surface preparation, cleaning, mixing, and storage. However, these associated activities do not comprise surface coating if the application of coating does not occur. Coating application with handheld, nonrefillable aerosol containers, touchup markers, marking pens, or the application of paper film or plastic film which may be precoated with an adhesive by the manufacturer is not a coating operation for the purposes of the final rule.

You will not be subject to the final rule if your miscellaneous metal parts and products surface coating facility 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 your permitting authority.

The final rule does not apply to surface coating or a coating operation that meets any of the criteria listed below:
[sbull] A coating operation conducted at a source where the source uses only coatings, thinners and/or other additives, and cleaning materials that contain no organic HAP, as determined according to the procedures in the final rule.
[sbull] Surface coating that occurs at research or laboratory facilities, or is part of janitorial, building, and facility maintenance operations, or that occurs at hobby shops operated for noncommercial purposes.
[sbull] Coatings used in volumes of less than 189 liters (50 gallons (gal)) per year, provided that the total volume of coatings exempt does not exceed 946 liters (250 gal) per year at the facility. [sbull] Surface coating of metal parts and products performed on site at installations owned or operated by the Armed Forces of the United States (including the Coast Guard and the National Guard of any such State) or the National Aeronautics and Space Administration (NASA), or the surface coating of military munitions manufactured by or for the Armed Forces of the United States (including the Coast Guard and the National Guard of any such State).
[sbull] Surface coating where plastic is extruded onto metal wire or cable or metal parts or products to form a coating.
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[sbull] Surface coating of metal components of wood furniture that meet the applicability criteria for wood furniture manufacturing (40 CFR part 63, subpart JJ).
[sbull] Surface coating of metal components of large appliances that meet the applicability criteria for large appliance surface coating (40 CFR part 63, subpart NNNN).
[sbull] Surface coating of metal components of metal furniture that meet the applicability criteria for metal furniture surface coating (40 CFR part 63, subpart RRRR; 68 FR 28606, May 23, 2003).
[sbull] Surface coating of metal components of wood building products that meet the applicability criteria for wood building products surface coating (40 CFR part 63, subpart QQQQ; 68 FR 31746, May 28, 2003).
[sbull] Surface coating of metal components of aerospace vehicles that meet the applicability criteria for aerospace manufacturing and rework (40 CFR part 63, subpart GG).
[sbull] The application of specialty coatings defined in appendix A to 40 CFR part 63, subpart GG to a metal aerospace vehicle or component.
[sbull] Surface coating of metal components of ships that meet the applicability criteria for shipbuilding and ship repair (40 CFR part 63, subpart II).
[sbull] Surface coating of metal using a web coating process that meets the applicability criteria for paper and other web coating (40 CFR part 63, subpart JJJJ).
[sbull] Surface coating of metal using a coil coating process that meets the applicability criteria for metal coil coating (40 CFR part 63, subpart SSSS).
[sbull] Surface coating of boats or metal parts of boats (including, but not limited to, the use of assembly adhesives) where the facility meets the applicability criteria for boat manufacturing facilities in the NESHAP for boat manufacturing (40 CFR part 63, subpart VVVV), except where the surface coating of the boat is a metal coating operation performed on personal watercraft or parts of personal watercraft.
[sbull] Surface coating of assembled onroad vehicles that meet the applicability criteria for the assembled onroad vehicle subcategory in the NESHAP for the surface coating of plastic parts and products (40 CFR part 63, subpart PPPP).
[sbull] Surface coating of metal components of automobiles and lightduty trucks that meet the applicability criteria for automobiles and lightduty trucks surface coating (40 CFR part 63, subpart IIII (scheduled for promulgation in February 2004).

If you perform surface coating of metal parts or products that meet the applicability criteria for both the Automobiles and LightDuty Trucks NESHAP (40 CFR part 63, subpart IIII (scheduled for promulgation in February 2004) and these NESHAP, then you may comply with the requirements of the automobiles and lightduty trucks NESHAP for the surface coating of all your metal parts used in automobile or light duty truck manufacturing in lieu of complying with each subpart separately.

The final rule contains five subcategories: General use coating, high performance coating, magnet wire coating, rubbertometal coating, and extreme performance fluoropolymer coating. The general use subcategory includes all surface coating operations in the miscellaneous metal parts and products source category that are not included in the other four subcategories. This includes operations that coat a wide variety of substrates, surfaces, and types of miscellaneous metal parts and products. It also includes asphalt/coal tar application to metal pipes. High performance coating is any coating that meets the definition of ``high performance architectural coating'' or ``high temperature coating.'' Magnet wire coatings, commonly referred to as magnet wire enamels, are applied to a continuous strand of wire which will be used to make turns (windings) in electrical devices such as coils, transformers, or motors. Magnet wire coatings provide high dielectric strength and turntoturn conductor insulation. This allows the turns of an electrical device to be placed in close proximity to one another which leads to increased coil effectiveness and electrical efficiency. Rubbertometal coating is any coating that contains heat activated polymer systems in either solvent or water that, when applied to metal substrates, dries to a nontacky surface and reacts chemically with the rubber and metal during a vulcanization process. Extreme performance fluoropolymer coating is a coating based on fluoropolymer resins that typically meets one or more performance criteria that include a nonstick lowenergy surface, dry film lubrication, high resistance to chemical attack, extremely wide operating temperature, high electrical insulating properties, or that complies with government or third party specifications for health, safety, reliability, or performance. Each subcategory consists of all coating operations, including associated surface preparation, equipment cleaning, mixing, storage, and waste handling.

B. What Is the Relationship to Other Rules?

Affected sources that meet the applicability criteria in the final miscellaneous metal parts and products rule may also meet the applicability criteria of other coating NESHAP. For example, some facilities that coat plastic and metal parts using the same or different coatings, coating application processes, and conveyance equipment, either simultaneously or at alternative times could be subject to both the Miscellaneous Metal Parts and Products Surface Coating NESHAP and the Plastic Parts and Products Surface Coating NESHAP (40 CFR part 63, subpart PPPP).

In the final rule, we have minimized the burden of complying with multiple surface coating emission limits by offering two alternatives to complying separately with each applicable emission limit. The first alternative allows a facility to have all applicable surface coating operations comply with the emission limit that represents the predominant type of coating activity at that facility. Predominant activity means the coating activity that represents 90 percent or more of the surface coating activities at a facility. For example, if a facility is subject to both the Plastic Parts and Miscellaneous Metal Parts NESHAP and the activities subject to the Miscellaneous Metal Parts NESHAP account for 90 percent or more of the surface coating activity at the facility, then the facility may comply with the emission limitations for miscellaneous metal parts and products for both types of surface coating operations.

The predominant activity alternative may be applied if 90 percent or more of the surface coating is in the general use or magnet wire coating subcategory; however, this alternative is not available where high performance, rubbertometal, or extreme performance fluoropolymer coating represents the predominant activity. The emission limits for those three subcategories reflect specialized performance requirements and the need for higher HAPcontaining materials. It would not be appropriate to apply emission limits specifically developed for unique performance characteristics to other types of coatings.

You must include all surface coating activities that meet the applicability criteria of a subcategory in a surface coating NESHAP and constitute more than 1 percent of total coating activities. Coating activities that meet the applicability criteria of a subcategory in a surface coating NESHAP but comprise
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less than 1 percent of total coating activities need not be included in the determination of predominant activity but they must be included in the compliance calculations.

The second alternative allows a facility to calculate and comply with a facilityspecific emission limit for each 12month rolling average compliance period. The facility would use the relative amount of coating activity subject to each emission limit in each NESHAP to calculate a weighted, or composite, emission limit for that facility. Compliance with that facilityspecific emission limit for all surface coating activities included in the facilityspecific emission limit constitutes compliance with the emission limits in the Miscellaneous Metal Parts NESHAP, as well as other applicable NESHAP. As with the predominant activity alternative, you must include all surface coating activities that meet the applicability criteria of a subcategory in a surface coating NESHAP and constitute more than 1 percent of total coating activities. Coating activities that meet the applicability criteria of a subcategory in a surface coating NESHAP but comprise less than 1 percent of total coating activities need not be included in the facilityspecific emission limit calculation but they must be included in the compliance calculations.

C. What Is the Affected Source?

We define an affected source as a stationary source, a group of stationary sources, or part of a stationary source to which a specific emission standard applies. The final rule defines the affected source as the collection of all operations associated with the surface coating of miscellaneous metal parts and products within each of the five subcategories (general use, high performance, magnet wire, rubberto metal, and extreme performance fluoropolymer). If application to a substrate occurs, these operations include preparation of a coating for application (e.g., mixing with thinners); surface preparation of the miscellaneous metal parts and products (including paint stripping and the use of a cleaning material to remove dried coating); coating application and flashoff; drying and/or curing of applied coatings; cleaning of equipment used in surface coating; storage of coatings, thinners and/or other additives, and cleaning materials; and handling and conveyance of waste materials from the surface coating operations. The coating operation does not include the application of coatings using handheld nonrefillable aerosol containers, touchup markers, marking pens, or the application of paper film or plastic film that may be precoated with an adhesive by the manufacturer.
D. What Are the Emission Limits, Operating Limits, and Other Standards?

Emission Limits. We are limiting organic HAP emissions from each existing affected source using the emission limits in Table 2 of this preamble. For each new or reconstructed affected source, the final emission limits are given in Table 3 of this preamble. For each of the subcategories, the emission limit is expressed as the mass of organic HAP emissions per volume of coating solids used during each 12month compliance period.
Table 2.Emission Limits for Existing Affected Sources Emission limit Emission limit (lbs Coating type (kilograms HAP/liter HAP/gal of coating of coating solids) solids) General use subcategory..... 0.31 2.6 High performance subcategory 3.3 27.5 Magnet wire subcategory..... 0.12 1.0 Rubbertometal subcategory. 4.5 37.7 Extreme performance 1.5 12.4 fluoropolymer subcategory..
Table 3.Emission Limits for New and Reconstructed Affected Sources Emission limit Emission limit (lbs Coating type (kilograms HAP/liter HAP/gal of coating of coating solids) solids) General use subcategory........................................... 0.23 1.9 High performance subcategory...................................... 3.3 27.5 Magnet wire subcategory........................................... 0.050 0.44 Rubbertometal subcategory....................................... 0.81 6.8 Extreme performance fluoropolymer subcategory..................... 1.5 12.4

You may choose from several compliance options in the final rule to achieve the emission limits. You could comply by applying materials (coatings, thinners and/or other additives, and cleaning materials) that meet the emission limits, either individually or collectively, during each compliance period. You could also use a capture system and addon control device to meet the emission limits. You could also comply by using a combination of both approaches.

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 that you determine during the initial performance test of the system. For capture systems that are not permanent total enclosures, you 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 permanent total enclosures, you establish limits on average facial velocity or pressure drop across openings in the enclosure.

For thermal oxidizers, you monitor the combustion temperature. For catalytic oxidizers, you monitor the temperature immediately before and after the catalyst bed, or you monitor the temperature before or after the catalyst bed and implement a sitespecific inspection and maintenance plan for the catalytic oxidizer. For regenerative [[Page 135]]
carbon adsorbers for which you do not conduct a liquidliquid material balance, you monitor the carbon bed temperature and the amount of steam or nitrogen used to desorb the bed. For condensers, you monitor the outlet gas temperature from the condenser. For concentrators, you monitor the temperature of the desorption gas stream and the pressure drop across the concentrator.

The 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. If you use an emission capture system and control device for compliance, you must develop and implement a work practice plan to minimize organic HAP emissions from mixing operations; storage tanks and other containers; and handling operations for coatings, thinners and/or other additives, cleaning materials, and waste materials. If your affected source has an existing documented plan that incorporates steps taken to minimize emissions from the aforementioned sources, you may be able to use your existing plan to satisfy the requirement for a work practice plan.

If you use a capture system and 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 of the capture system and control device.

The NESHAP General Provisions (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, reporting and recordkeeping, 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.
E. What Are the Testing and Initial Compliance Requirements?

Existing affected sources must be in compliance with the final rule no later than January 2, 2007. New and reconstructed sources must be in compliance upon initial startup of the affected source or by January 2, 2004, 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, they 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 three options for complying with the final emission limits, and the testing and initial compliance requirements vary accordingly. You may choose to use one compliance option for the entire affected source, or you may use different compliance options for different coating operations within the affected source. You may also use different compliance options for the same coating operation at different times, different compliance options when different coatings are applied to the same part, or when the same coating is applied to different parts. However, you may not use different compliance options at the same time on the same coating operation.

Option 1: Compliant materials. This option is a pollution prevention option that allows you to easily demonstrate compliance by using lowHAP or nonHAP coatings and other materials. If you use coatings that, based on their organic HAP content, individually meet the kilogram (kg) (lb) organic HAP emitted per liter (gal) coating solids used levels in the applicable emission limits and you use non HAP thinners and other additives and cleaning materials, this compliance option is available to you. For this option, we have minimized recordkeeping and reporting requirements. You may demonstrate compliance by using manufacturer's formulation data and readily available purchase records to determine the organic HAP content of each coating or other material and the amount of each material used. You do not need to perform any detailed emission rate calculations.

If you demonstrate compliance based on the coatings and other materials used, you demonstrate that the organic HAP content of each coating meets the emission limits for the appropriate subcategory as shown in Tables 2 and 3 of this preamble, and that you used no organic HAPcontaining thinners and/or other additives, or cleaning materials. For example, if you are using the compliant materials option and your existing source has magnet wire, rubbertometal, extreme performance fluoropolymer, and general use coating operations, you demonstrate that: (1) Each coating used in the magnet wire coating operation has an organic HAP content no greater than 0.12 kg organic HAP/liter coating solids (1.0 lb organic HAP/gal coating solids) used; (2) each coating used in the rubbertometal coating operation has an organic HAP content no greater than 4.5 kg organic HAP/liter coating solids (37.7 lbs organic HAP/gal coating solids) used; (3) each coating used in the extreme performance fluoropolymer coating operation has an organic HAP content no greater than 1.5 kg organic HAP/liter coating solids (12.4 lbs HAP/gal coating solids) used; (4) each general use coating has an organic HAP content no greater than 0.31 kg organic HAP/liter coating solids (2.6 lbs HAP/gal coating solids) used; and (5) that you used no organic HAPcontaining thinners and/or other additives, or cleaning materials. Note that ``no organic HAP'' is not intended to mean absolute zero. Materials that contain ``no organic HAP'' means materials that contain organic HAP levels below the levels specified in Sec. 63.3941(a) of the final rule, which are typical Occupational [[Page 136]]
Safety and Health Administration (OSHA) reporting levels for material safety data sheets. These typical reporting levels only count organic HAP that are present at 0.1 percent or more by mass for OSHAdefined carcinogens and at 1.0 percent or more by mass for other compounds.

To determine the mass of organic HAP in coatings, thinners and/or other additives, and cleaning materials and the volume fraction of coating solids, you may rely on manufacturer's formulation data. You are not required to perform tests or analysis of the material if formulation data are available. Alternatively, you could use results from the test methods listed below. You may also use alternative test methods provided you get EPA approval in accordance with the NESHAP General Provisions, 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 prevail for compliance and enforcement purposes, unless, after consultation you demonstrate to the satisfaction of the enforcement agency that the formulation data are correct.

The following test methods are used to determine HAP content. For organic HAP content, use Method 311 of 40 CFR part 63, appendix A. You may also use nonaqueous volatile matter as a surrogate for organic HAP, which includes all organic HAP plus all other organic compounds, excluding water. If you choose this option, use Method 24 of 40 CFR part 60, appendix A. If you are determining HAP content for reactive adhesives (that is, adhesives in which some of the HAP react to form solids and are not emitted to the atmosphere), you may use the alternative to Method 24 that is included in 40 CFR part 63, subpart PPPP, appendix A. For determining volume fraction of coating solids, use ASTM Method D269786 (Reapproved 1998), ``Standard Test Method for Volume Nonvolatile Matter in Clear or Pigmented Coatings,'' or ASTM Method D609397 (Reapproved 2003), ``Standard Test Method for Percent Volume Nonvolatile Matter in Clear or Pigmented Coatings Using a Helium Gas Pycnometer,'' an approved alternative method, or calculations based on the volume of the volatile fraction.

Option 2: Compliance based on the emission rate without addon controls. This option is a pollution prevention option that allows you to demonstrate compliance based on the organic HAP contained in the mix of coatings, thinners and/or other additives, and cleaning materials you use. This option offers the flexibility to use some individual coatings that do not, by themselves, meet the kg (lb) organic HAP emitted per liter (gal) coating solids used levels in the applicable emission limits if you use other lowHAP or nonHAP coatings such that overall emissions from the affected source over a 12month period meet the emission limits. You must use this option if you use HAPcontaining thinners and/or other additives, and cleaning materials and do not have addon controls. You keep track of the mass of organic HAP in each coating, thinner or other additive, and cleaning material, and the amount of each material you use in your affected source each month of the compliance period. You use this information to determine the total mass of organic HAP in all coatings, thinners and/or other additives, and cleaning materials divided by the total volume of coating solids used during the compliance period. You demonstrate that your emission rate (in kg (lb) organic HAP emitted per liter (gal) coating solids used) meets the applicable emission limit. You may use readily available purchase records and manufacturer's formulation data to determine the amount of each coating or other material you used and the organic HAP in each material. The final rule contains equations that show you how to perform the calculations to demonstrate compliance.

If you demonstrate compliance using Option 2, you are required to: [sbull] Determine the quantity of each coating, thinner and/or other additive, and cleaning material used.
[sbull] Determine the mass of organic HAP in each coating, thinner and other additive, and cleaning material using the same types of data and methods previously described for Option 1, including the alternative methods for reactive coatings. You may rely on manufacturer's formulation data or you may choose to use test results as described under Option 1.
[sbull] Determine the volume fraction of coating solids for each coating using the same types of data or methods described under Option 1. In this option, you may include the solids from powder coatings in the compliance calculations. To determine the volume of solids in powder coatings from their weight, use ASTM Method D596502, ``Standard Test Method for Specific Gravity of Coating Powders.''
[sbull] Calculate the total mass of organic HAP in all materials and total volume of coating solids used each month. 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 total mass of organic HAP emissions and total volume of coating solids used for the initial compliance period by adding together all the monthly values for mass of organic HAP and for volume of coating solids used for the 12 months of the initial compliance period.
[sbull] Calculate the ratio of the total mass of organic HAP emitted for the materials used to the total volume of coating solids used (kg (lb) organic HAP emitted per liter (gal) of coating solids used) for the initial compliance period.
[sbull] Record the calculations and results and include them in your Notification of Compliance Status.

Note that if you choose to use this option for a particular coating operation rather than for all coating operations at the source, you calculate the organic HAP emission rate using just the materials used in that operation. Similarly, if your facility has multiple coating operations using this option (e.g., a high performance coating operation, a magnet wire coating operation, a rubbertometal coating operation, and a general use coating operation), you do a separate calculation for each coating operation to show that each coating operation meets its emission limit. If you are complying with a facilityspecific emission limit, you include all coating operations that are subject to the facilityspecific emission limit in the compliance calculations.

Option 3: Compliance based on using a capture system and addon control device. This option allows sources to use a capture system and an addon pollution control device, such as a combustion device or a recovery device, to meet the emission limits. While we believe that, based on typical emission characteristics, most sources will not use control devices, we are providing this option for sources that use control devices. Fewer than 10 percent of the existing sources for which we have data use control devices. Under this option, testing is required to demonstrate the capture system and control device efficiencies. Alternatively, you may conduct a liquidliquid material balance to demonstrate the amount of organic HAP collected by your recovery device. The final rule provides equations showing you how to use records of materials usage, organic HAP contents of each material, capture and control efficiencies, and coating solids content to calculate your emission rate during the compliance period.

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If you demonstrate compliance based on this option, you demonstrate that your emission rate considering controls (in kg (lb) organic HAP emitted per liter (gal) of coating solids used) is less than the applicable emission limit. For a capture system and addon control device, other than a solvent recovery system for which you conduct a liquidliquid 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. The performance test must be completed no later than the compliance date for existing sources and 180 days after the compliance date for new and reconstructed sources.
[sbull] Determine the mass of organic HAP in each coating and other material, and the volume fraction of coating solids for each coating used during each month of the initial compliance period.
[sbull] Calculate the total mass of organic HAP in all coatings and other materials, and total volume of coating solids used each month in the controlled operation or group of coating operations. 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 organic HAP emissions from the controlled coating operations each month 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 that month.
[sbull] Calculate the total mass of organic HAP emissions and total volume of coating solids used for the initial compliance period by adding together all the monthly values for mass of organic HAP emissions and for volume of coating solids for the 12 months in the initial compliance period.
[sbull] Calculate the ratio of the total mass of organic HAP emissions to the total volume of coating solids used during the initial compliance period.
[sbull] Record the calculations and results and include them in your Notification of Compliance Status.
[sbull] Develop and implement a work practice plan to minimize emissions from storage, mixing, and handling of organic HAPcontaining materials.

Note that if you choose to use this option for a particular coating operation rather than for the entire affected source, you calculate the organic HAP emission rate using just the materials used in that operation. Similarly, if your facility has multiple coating operations using this option (e.g., a high performance coating operation, a rubbertometal coating operation, an extreme performance fluoropolymer coating operation, and a general use coating operation), you do a separate calculation for each coating operation to show that each coating operation meets its emission limit. If you are complying with a facilityspecific emission limit, you would include all coating operations that are subject to the facilityspecific emission limit in the compliance calculations.

If you use a capture system and addon control device, other than a solvent recovery system for which you conduct liquidliquid material balances, you use specified test methods to determine both the efficiency of the capture system and the emission reduction efficiency of the control device. To determine the capture efficiency, you would either verify the presence of a permanent total enclosure using EPA Method 204 of 40 CFR part 51, appendix M (and all materials must be applied and dried within the enclosure); or use one of three protocols in Sec. 63.3965 of the final rule to measure capture efficiency. If you have a permanent total enclosure and all materials are applied and dried within the enclosure and you route all exhaust gases from the enclosure to a control device, you assume 100 percent capture. Magnet wire coating operations may, with approval, conduct representative capture efficiency testing of one magnet wire coating machine out of a group of identical or very similar magnet wire coating machines rather than testing every individual magnet wire coating machine.

To determine the emission reduction efficiency of the control device, you conduct measurements of the inlet and outlet gas streams. The test consists of three runs, each run lasting 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.
[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.

An alternative procedure is provided in appendix A of the final rule for determining the destruction efficiency of oxidizers used to control emissions from magnet wire coating machines. This procedure uses material consumption and material organic volatile content, adjusted to account for any uncaptured emissions, to determine the organic volatile content of the inlet stream to the control device. Magnet wire coating operations may, with approval, conduct representative control device efficiency testing of one magnet wire coating machine out of a group of identical or very similar magnet wire coating machines rather than testing every individual magnet wire coating machine.

If you use a solvent recovery system, you could choose to 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 controlled coating operations served by the solvent recovery system during each month of the initial compliance period, and to determine the total volatile matter contained in these materials. You also measure the amount of volatile matter recovered by the solvent recovery system during each month of the initial compliance period. Then you compare the amount recovered to the amount used to determine the overall control efficiency each month and apply this efficiency to the total mass of organic HAP in the materials used to determine total organic HAP emissions for the month. You total these 12 monthly organic HAP emission values and divide by the total of the 12 monthly values for coating solids used to calculate the emission rate for the 12month initial compliance period. You record the calculations and results and include them in your Notification of Compliance Status.

Operating Limits. As mentioned above, you establish operating limits as part of the initial performance test of a capture system and control device, other than a solvent recovery system for which you conduct liquidliquid material balances. The operating limits are the minimum or maximum (as applicable) values achieved for capture systems and control devices during the most recent performance test, conducted under representative conditions, 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. You are required to install,
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calibrate, maintain, and continuously operate all monitoring equipment according to manufacturer's specifications and ensure that the continuous parameter monitoring systems (CPMS) meet the requirements in Sec. 63.3968 of the final rule. If you use control devices other than those identified in the final rule, you 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.

If you use a thermal or catalytic oxidizer, you continuously monitor the appropriate temperature and record it at least every 15 minutes. For thermal oxidizers, the temperature monitor is placed in the firebox or in the duct immediately downstream of the firebox before any substantial heat exchange occurs. The operating limit is the average temperature measured during the performance test and for each consecutive 3hour period; the average temperature has to be at or above this limit. For catalytic oxidizers, temperature monitors are placed immediately before and after the catalyst bed. The operating limits are the average temperature just before the catalyst bed and the average temperature difference across the catalyst bed during the performance test. For each 3hour period, the average temperature and the average temperature difference must be at or above these limits. Alternatively, if you develop and implement an inspection and maintenance plan for the catalytic oxidizer, then you are allowed to monitor only the temperature before the catalyst bed and meet only the temperature operating limit before the catalyst bed and are not required to monitor the difference across the bed.

An alternative procedure for monitoring catalytic oxidizers on magnet wire coating machines is provided in appendix A of the final rule. This alternative allows you to develop and implement an inspection and maintenance plan as described in appendix A of the final rule and to measure the temperature either before or after the catalyst bed and compare the measured temperature to the operating limit.

If you use a regenerative carbon adsorber and do not conduct liquidliquid material balances to demonstrate compliance, you monitor the carbon bed temperature after each regeneration and the total amount of steam or nitrogen used to desorb the bed for each regeneration. The operating limits are the carbon bed temperature at the time the carbon bed is returned to service (not to be exceeded) and the amount of steam or nitrogen used for desorption (to be met as a minimum).

If you use a condenser and do not conduct liquidliquid material balances to demonstrate compliance, you monitor the outlet gas temperature to ensure that the air stream is being cooled to a low enough temperature. The operating limit is the average condenser outlet gas temperature measured during the performance test and for each consecutive 3hour period, the average temperature must be at or below this limit.

If you use a concentrator, you monitor the temperature of the desorption concentrate stream and the pressure drop across the concentrator. These values must be recorded at least once every 15 minutes. The operating limits must be the 3hour average temperature (to be met as a minimum) and the 3hour average pressure drop (to be met as a minimum) measured during the performance test.

For each capture system that is not a permanent total enclosure, you establish operating limits for gas volumetric flow rate or duct static pressure for each enclosure or capture device. The operating limit is the average volumetric flow rate or duct static pressure during the performance test, to be met as a minimum. For each capture system that is a permanent total enclosure, the operating limit requires the average facial velocity of air through all natural draft openings to be at least 200 feet per minute or the pressure drop across the enclosure to be at least 0.007 inches water.

An alternative procedure for monitoring capture systems on magnet wire coating machines is provided in appendix A of this rule. This alternative requires you to install an alarm or interlock which will be triggered either when any oven exhaust fan is not operating or the oven is overheating. This alternative also requires you to confirm every 6 months that the oven is operating at negative pressure.

Work Practices. 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. This plan must include a description of all steps taken to minimize emissions from these sources (e.g., using closed storage containers, practices to minimize emissions during filling and transfer of contents from containers, using spill minimization techniques, placing solvent laden cloths in closed containers immediately after use, etc.). You must make the plan available for inspection if the Administrator requests to see it.

If you use a capture system and control device for compliance, you are required to develop and operate according to a SSMP during periods of startup, shutdown, or malfunction of the capture system and control device.

F. What Are the Continuous Compliance Provisions?

Emission Limits. If you use the compliant materials option (Option 1), you demonstrate continuous compliance if each coating meets the applicable emission limit and you use no organic HAPcontaining thinners and/or other additives, or cleaning materials. If you use the emission rate without addon controls option (Option 2), you demonstrate continuous compliance if, for each 12month compliance period, the ratio of kg (lb) organic HAP emitted to liter (gal) coating solids used is less than or equal to the applicable emission limit. You follow the same procedures for calculating the organic HAP emitted to coating solids used ratio that you used for the initial compliance period.

For each coating operation on which you use a capture system and control device (Option 3), other than a solvent recovery system for which you conduct a liquidliquid material balance, you use the continuous parameter monitoring results for the month as part of the determination of 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 assume the capture system and control device are achieving the same percent emission reduction efficiency as they did during the most recent performance test in which compliance was demonstrated. You then apply this percent reduction to the total mass of organic HAP in materials used in the controlled coating operations to determine the emissions from those operations during the month. If there were any deviations from the operating limits during the month or any bypasses of the control device, you account for them in the calculation of the monthly emissions by assuming the capture system and control device were achieving zero emission 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 your permitting authority. Determine the organic HAP emission rate by
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dividing the total mass of organic HAP emissions for the 12month compliance period by the total volume of coating solids used during the 12month compliance period. Every month, you calculate the emission rate for the previous 12month period.

For each coating operation on which you use a solvent recovery system and conduct a liquidliquid material balance each month, you 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 each month. Then you determine the 12month organic HAP emission rate in the same manner described above.

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, y

FOR FURTHER INFORMATION CONTACT Ms. Kim Teal, Coatings and Consumer Products Group, Emission Standards Division (C53903), U.S. EPA, Research Triangle Park, NC 27711; telephone number (919) 5415580; facsimile number (919) 5415689; electronic mail address:
teal.kim@epa.gov.