1 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 --ooo-- 2 CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY 3 4 5 AIR RESOURCES BOARD 6 EXECUTIVE OFFICER HEARING 7 PUBLIC MEETING 8 WEDNESDAY, DECEMBER 3, 2003 9 --ooo-- 10 11 12 13 14 15 16 17 18 California Environmental Protection Agency 19 Coastal Hearing Room, Second Floor 20 1001 I Street 21 Sacramento, CA 95814 22 23 REPORTED BY: E. BRUIHL, CSR NO. 3077 A REGISTERED PROFESSIONAL REPORTER 24 25 STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 --ooo-- 2 A P P E A R A N C E S 3 4 MONITOR: 5 BART CROES, P.E., CHIEF, RESEARCH DIVISION 6 7 ALSO APPEARING: 8 DONGMIN LUO, PH.D., P.E. [STAFF PRESENTATION] 9 ATMOSPHERIC PROCESS RESEARCH SECTION 10 RICHARD COREY, CHIEF 11 RESEARCH AND ECONOMIC STUDIES BRANCH 12 EILEEN MC CAULEY, PH.D. 13 MANAGER, ATMOSPHERIC PROCESSES RESEARCH SECTION 14 CARLA TAKEMOTO, MANAGER 15 TECHNICAL EVALUATION SECTION 16 ROBERT JENNE, J.D., SENIOR STAFF COUNSEL 17 OFFICE OF LEGAL AFFAIRS 18 19 IN ATTENDANCE: 20 ARTAVIA EDWARDS, MANAGER 21 STACEY DORAIS, CLERK OF THE BOARD 22 ALEXA MALIK, REGULATIONS COORDINATOR 23 AMY J. WHITING, REGULATIONS COORDINATOR 24 25 STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 --ooo-- 2 P R O C E E D I N G S 3 WEDNESDAY, DECEMBER 3, 2003 9:30 A.M. 4 MR. CROES: Will the hearing please come 5 to order? 6 My name is Bart Croes. I'm the Research Division 7 Chief of the California Air Resources board. 8 ARB's Executive Officer, Catherine Witherspoon 9 has delegated to me the authority to conduct today's 10 hearing. 11 The purpose of the hearing is to consider 12 proposed regulatory amendments to the Tables of Maximum 13 Incremental Reactivity or "MIR" values. 14 As you may know, in June 2000 the Board approved 15 amendments to the regulation for reducing the ozone formed 16 from aerosol coating products and proposed tables of MIR 17 values. 18 The amendments established reactivity limits for 19 thirty-six aerosol coating categories, based on the MIR 20 scale. 21 The amendments became legally effective on July 22 18th, 2001. 23 In Resolution 00-22, which approved the 24 amendments, the Board directed the Executive Officer to 25 review the MIR values eighteen months after the effective STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 date of amendments and every eighteen months thereafter to 2 determine if modifications to the MIR values were 3 warranted. 4 This is because the chemical information to 5 calculate the MIR values is evolving and improving as new 6 information becomes available. 7 Updating the MIR values will ensure that our 8 regulations are based on up-to-date atmospheric science. 9 Since any changes to the MIR values would be 10 technical in nature, in Resolution 00-22 the Board 11 delegated to the Executive Officer the authority to adopt 12 regulatory amendments to the tables of MIR values and to 13 conduct public hearings and other appropriate actions to 14 make such amendments. 15 This delegation of authority allows the Executive 16 Officer to conduct these activities on behalf of the 17 Board. 18 As I mentioned previously, the ARB Executive 19 Officer has, in turn, delegated to me the authority to act 20 as Hearing Officer for this item. 21 After today's hearing is over, I will make a 22 recommendation to the Executive Officer who is empowered 23 to make the final decision. 24 Before we begin the staff presentation, I would 25 like to thank Dr. Carter from the University of California STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 Riverside for his technical support on this work and I'd 2 also like to introduce our Chairman, Dr. Lloyd, who is an 3 Atmospheric Chemist and who has been very interested in 4 this topic as well. 5 With that, I'd like to turn the microphone over 6 to Dr. Dongmin Luo who will make the staff presentation. 7 DR. LUO: Good morning, Mr. Croes. 8 Today, we are proposing for your consideration 9 amendment to the Tables of Maximum Incremental Reactivity 10 Values. 11 Today's presentation will follow this agenda. 12 First, I will provide the background of this proposal and 13 describe its recommended process. 14 Then I will be discussing the proposed amendment 15 to the Tables of MIR Values and the impacts on the 16 environment and the economy. I will close with a summary 17 and a recommendation. 18 Before I describe the staff's proposal, I will 19 discuss the background of the current aerosol coating 20 regulation and the steps left to the proposal before you 21 today. 22 At its June 22nd, 2000, public hearing, the Air 23 Resources Board approved proposed amendments to the 24 regulation for reducing ozone formed from aerosol coating 25 products. STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 At the meeting, the Board also approved a new 2 Subchapter 8.6 which contains Tables of Maximum 3 Incremental Reactivity Values. 4 The regulation was approved by the Office of 5 Administrative Law on June 18, 2001, and it became legally 6 effective July 18, 2001. 7 The main component of the rule-making was to 8 establish reactivity limits for thirty-six coating 9 categories based on the MIR scale. 10 Reactivity is a term used for the quantification 11 of how much different VOCs contribute to the formation of 12 tropospheric ozone. 13 In approving the amendments, the Board directed 14 the Executive Officer to review the MIR values eighteen 15 months after the effective date of the amendments and, 16 every eighteen months thereafter, to determine if 17 modifications to the MIR values are warranted and this is 18 because the chemical mechanism used to calculate the MIR 19 values is evolving and improving as new chemical 20 information becomes available. 21 Since any changes to the MIR values must be 22 technical in nature, the Board also delegated to the 23 Executive Officer the authority to conduct public hearings 24 and take other appropriate actions to make such 25 amendments. STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 Although we are proposing changes to the Tables 2 of MIR Values, the existing MIR values must continue to be 3 used to calculate product with MIR of aerosol coating 4 until June 1st, 2007. This existing information is 5 designed to ensure needed stability for coating 6 formulations. 7 However, any new compounds added to the existing 8 tables can be used in aerosol coatings immediately after 9 the proposed amendments become legally effective. 10 The current tables of MIR values are largely 11 based on the research of Dr. Carter at the University of 12 California Riverside, and are contained in two sections of 13 Title 17 of the California Code of Regulations. 14 Section 94700 contains the MIR values for six 15 hundred eighty-five individual VOCs of mixtures. 16 Whereas, Section 94701 contains the MIR values 17 for twenty-four different classes of hydrocarbon solvents. 18 Why we are proposing to amend the Tables of MIR 19 Values? 20 In addition to the Board of Directors, our 21 initial assessment indicates some of the MIR values in the 22 Tables have changed non-negligibly. 23 Over one hundred VOCs have been added to the 24 SAPRC mechanism as well as to the MIR calculation. 25 Moreover, amending MIR values would ensure STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 continuous use of the best science in our regulations. 2 Therefore, the staff determined that the Board's proposal 3 is appropriate. 4 I will next discuss how we developed this 5 proposal. To determine whether or not the update is 6 appropriate, at the request of ARB staff Dr. Carter 7 submitted his review of MIR values in October 2002. 8 Today's proposal will first discuss the 9 reactivity research at the last committee meeting on 10 December 4th, 2002. 11 Members supported this proposal since it provides 12 more flexibility to aerosol coating manufacturers. 13 A revised report was submitted by Dr. Carter in 14 February 2003 after discussions with stakeholders and ARB 15 staff. 16 A public workshop was held on April 23rd, 2003, 17 to further discuss the proposed amendment to the Tables of 18 MIR Values. 19 ARB's Reactivity Scientific Advisory Committee 20 was requested to review the scientific proportion of this 21 proposal. 22 In addition, several meetings were held with 23 individual state quotas such as the National Paint & 24 Coatings Association and the American Chemical Council to 25 discuss the proposed amendment. STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 Dr. Carter reviewed all of the MIR values at the 2 request of ARB staff and concluded that there have been no 3 significant changes to the SAPRC '99 mechanisms and the 4 reactivity calculations in areas of procedures. 5 The difference is a view to correction and 6 improvements to some specific negligence emissions 7 assignments and to some of the files and software 8 programs. 9 Dr. Carter provided a list of more than one 10 hundred new compounds with their respective MIR values 11 that are not currently contained in Section 94700. 12 According to Dr. Carter's review of the six 13 hundred eighty-five compounds listed in Section 94700, the 14 MIR values have changed by more than five percent for 15 twenty-three compounds, by more than one percent for above 16 -- for over three hundred compounds, and by less than one 17 percent for the remaining compounds. 18 An experimental scientific peer review is 19 required by Health & Safety Code Section 57004 for the 20 scientific proportion of the proposed amendment that is 21 updated MIR values. 22 To comply with the requirement, the Reactivity 23 Scientific Advisory Committee, that is, RSAC was requested 24 to review the scientific basis provided by Dr. Carter. 25 After their review, the RSAC concluded that the STAR REPORTING SERVICE, INC. (415) 348-0050 110 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 proposed amendments do not substantially change the nature 2 of the MIR values and find that the updated values were 3 arrived at in an appropriate scientifical manner. 4 Now, I will describe the proposed amendment. 5 Staff is proposing to add one hundred two new compounds 6 which there are associated MIR values to Section 94700. 7 Three compounds in Dr. Carter's list are species 8 which are properly addressed by using the hydrocarbon 9 solvent Bins in Section 94701. So, they were removed from 10 the addition. 11 One of the compounds were listed due to a 12 spelling error. So, it was also removed from the 13 addition. 14 This new compound can be used in coating the 15 formulation immediately after the proposed amendment 16 becomes effective. 17 For the existing compounds, we propose to 18 amendment only the MIR values that have changed I believe 19 five percent. 20 We believe that MIR values changes of less than 21 five percent are within an uncertainty of the MIR values. 22 However, we intend to continue to evaluate this 23 in the future in consultation with scientifical experts to 24 determine if a different return here is more appropriate. 25 After consideration of grant of conventions, STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 assignments, errors and off-limit estimates, only fourteen 2 compounds are proposed to update. 3 However, it should be noted that the currently 4 specified values for fourteen compounds must continue to 5 be used to calculate the product with MIR of aerosol 6 coatings until June 1st, 2007. 7 This existing provision is designed to ensure 8 needed stability for coating formulations. 9 Although Dr. Carter provided MIR values for two 10 compounds with more than a five percent change, that is, 11 1-(chloro-methyl)-2-chloro propene and 2-amino-2-methyl 12 of propanol, it is his opinion that ARB staff's extended 13 off-limit MIR value should continue to be used due to 14 uncertainty in the widening values for these two 15 compounds. 16 Staff is also proposing to add a new column 17 labeled new MIR effective date in Section 94700 which will 18 allow readers to view in one place that most current 19 up-to-date MIR values for all the compounds, including the 20 one hundred two new compounds. 21 There are fourteen compounds with updated MIR 22 values and all of the currently listed compounds whose MIR 23 values remain unchanged. 24 The MIR values listed in this column would only 25 be used prior to June 1st, 2007, if any reactivity-based STAR REPORTING SERVICE, INC. (415) 348-0050 112 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 rulemakings for other source categories were proposed in 2 the future. 3 Staff reviewed that MIR values for twenty-four 4 classes of hydrocarbon solvents listed in Section 94701 5 and find that no changes to the Bin values for the 6 hydrocarbon solvents are necessary. 7 This is because no new solvents were added to the 8 list and the impacts on the Bin system are negligible. 9 Now, I would like to discuss the environmental 10 and economical impacts of this proposal. 11 At the present time, only aerosol coating 12 products rely on the Tables of Mir Values for regulatory 13 compliance. 14 Therefore, the environmental impact analysis will 15 be specific to this source category and will focus only on 16 new compounds proposed for addition. 17 To find out whether or not any new VOCs would 18 have potential use in aerosol coatings, a comprehensive 19 list of proposed VOCs for addition to the existing Tables 20 of MIR Values was sent to manufacturers for their 21 evaluation and comments. 22 A general comment was that the majority of the 23 new VOCs do not hold much promise for use in aerosol 24 produce. 25 Only a few manufacturers indicated that the six STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 compounds listed on a slide may be appropriate for use in 2 formulating aerosol coatings in the future. 3 As a result of this survey, we do find our 4 environmental impact analysis to focus on this new six 5 compounds proposed for addition to the Tables of MIR 6 Values. 7 The California Environmental Quality Act and ARB 8 policies require an analysis to determine the potential 9 adverse environmental impact of proposed regulations. 10 Overall, the result of our analysis shows that 11 amending the Tables of MIR Values have neutral or slight 12 positive environmental impact. 13 Should manufacturers opt to reformulate with 14 lower reactivity compounds, then in their present 15 formulations we would anticipate a slighter reduction in 16 the proposed ozone concentrations. 17 Potential impacts are particularly mild global 18 warning, strastespheric ozone depletion, water quality and 19 landfill loading and increase the use of air toxics were 20 considered. No significant negative impacts were 21 identified. 22 In developing this regulatory proposal, the ARB 23 staff evaluated the potential economical impacts on state 24 and local agencies and the businesses and found minimal or 25 no impacts on costs or savings to state and local STAR REPORTING SERVICE, INC. (415) 348-0050 114 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 agencies, creating or elimination of jobs, creating of new 2 businesses, elimination or expansion of existing 3 businesses and competitiveness of California's businesses. 4 Amending the Tables of MIR Values would have 5 insignificant impacts on the existing aerosol coating 6 products. 7 This is because the proposed amendment do not 8 impose any requirements that would lead to a change in 9 product formulation. 10 The proposed amendments are not expected to have 11 any significant impact on the California Low Emission 12 Vehicles and Clear Fuel Regulation since it maintains a 13 separate table of MIR values. 14 However, the updated MIR values can potentially 15 be used for its next amendment and future rulemaking for 16 other source categories. 17 The ARB is committed to evaluating community 18 impacts, including environmental justice concerns of 19 proposed amendments because the proposed amendments to the 20 Tables of MIR Values do not impose any requirements 21 leading up to a physical of change in the environment. We 22 expect no adverse impact. 23 In summary, staff is proposing to amend the 24 Tables of MIR Values contained in Section 94700. 25 This proposal would help ARB ensure that ARB's STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 reactivity based regulations are based on the most 2 up-to-date science where providing more flexibility to the 3 aerosol coating manufacturers. 4 We recommend that the Executive Officer adopt the 5 staff's proposal that amends the Tables of MIR Values. 6 This concludes my presentation. At this time, I 7 will be happy to answer any questions you may have. Thank 8 you. 9 DR. CROES: Thank you, Dongmin. 10 We have one witness who signed up to speak on 11 this item. Could Stefan George please come forward to the 12 podium? 13 MS. GEORGE: Good morning. 14 I'm Sandy George, actually, with Stefan George 15 Associates and I represent the National Paint & Coatings 16 Association and the California Paint Council. 17 NPCA and CPC believe that the Table of MIR Values 18 that have presented here today are an important compliance 19 tool and should be maintained in a responsible fashion as 20 has been done with this latest release. 21 The process that the ARB staff used in this 22 effort was very effective and industry truly appreciated 23 their efforts to reach out to them, specifically, and make 24 sure that they were aware of upcoming proposed changes and 25 were comfortable with them. We really appreciate that. STAR REPORTING SERVICE, INC. (415) 348-0050 116 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 I also want to note that since other product 2 categories like architectural coatings may be subject to 3 reactivity standards soon, that the Table is gaining in 4 importance from more and more industries. 5 A letter from NPCA confirming these statements 6 has been sent to you. It may already be at your desks 7 hopefully soon, if not, and we really appreciate the 8 process that was used to come up with this. Thank you. 9 DR. CROES: Okay, Sandy. Thank you for your 10 statements and support. 11 Well, that concludes the public testimony. Mr. 12 Corey, does the staff have any further comments on this 13 matter? 14 MR. COREY: Mr. Croes, two additions. 15 One, we received two letters of support for the 16 staff recommendations, one from Doug Raymond, Director of 17 Regulatory Affairs for Sherman Williams; and the second 18 letter from Heidi McAuliffe from the National Paint and 19 Coatings Association just mentioned in the comments. 20 Outside of that, the comment we offer is just to 21 restate the staff recommendations for adoption of the 22 amendments to the Tables of MIR Values. 23 DR. CROES: Okay, thank you. 24 Since all testimony, written submissions and 25 staff comments for this item have been entered into the STAR REPORTING SERVICE, INC. (415) 348-0050 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 record and no extension of the comment period has been 2 granted, I'm officially closing the record on Agenda Item 3 03-1-1. 4 Written or oral comments received after the 5 comment period has been closed, will not be accepted as 6 part of the official record on this agenda item. 7 As I mentioned previously, after this hearing has 8 concluded, I will make a recommendation to the ARB 9 Executive Officer who will make the final decision on this 10 item. 11 After considering the administrative record for 12 this item, including the staff report testimony, the two 13 written submissions and staff comments, I intend to 14 recommend to our Executive Officer that she adopt the 15 amendments to the Tables of MIR Values as proposed by 16 staff. 17 Before adjourning, I'd like to thank staff, 18 especially Dr. Dongmin Luo and Nicholas Berger for putting 19 the report together, Dr. Carter again for his technical 20 work and to the Reactivity Research Advisory Committee and 21 others that have participated in the process. Your input 22 has been invaluable. 23 With that, the December 3rd, 2003, public hearing 24 is now adjourned. Thank you for participating. 25 (CONCLUDED 9:55 A.M.) STAR REPORTING SERVICE, INC. (415) 348-0050 118 EXECUTIVE OFFICERS MEETING - DECEMBER 3, 2003 1 -- 000 - 2 CERTIFICATE 3 STATE OF CALIFORNIA ) 4 CITY AND COUNTY OF SAN FRANCISCO ) ss. 5 I, EASTELLER BRUIHL, being a licensed and 6 certified shorthand reporter in and for the State of 7 California, do hereby certify that the matters set forth 8 in the within transcript are true and correct; that the 9 matter was taken down in machine shorthand by me at the 10 time and place set forth and thereafter reduced to 11 typewriting under my direction; and that the foregoing 12 pages through to and including comprise a true, 13 complete, and correct transcription of the proceedings. 14 I further certify that I am not a relative or 15 employee or attorney or counsel of any of the parties 16 hereto, nor a relative or employee of such attorney or 17 counsel; nor do I have any interest in the outcome or 18 events of the action. 19 DATED: FRIDAY, DECEMBER 5, 2003 20 21 22 Easteller Bruihl, CSR No. 3077 23 24 25 STAR REPORTING SERVICE, INC. (415) 348-0050