[Federal Register Volume 60, Number 241 (Friday, December 15, 1995)]
[Rules and Regulations]
[Pages 64330-64347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29748]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 63

[AD-FRL-5335-3]
RIN 2060-AD98


National Emission Standards for Hazardous Air Pollutants for 
Shipbuilding and Ship Repair (Surface Coating) Operations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This action promulgates national emission standards for 
hazardous air pollutants (NESHAP) under Section 112 of the Clean Air 
Act as amended in 1990 (CAA) for shipbuilding and ship repair (surface 
coating) operations. The NESHAP requires existing and new major sources 
to control emissions using the maximum achievable control technology 
(MACT) to control hazardous air pollutants (HAP).
    The MACT described herein is based on maximum HAP limits for 
various categories of marine coatings. Surface coating operations at 
shipyards are the focus of the NESHAP, and a variety of HAP are used as 
solvents in marine coatings. The HAP emitted by the facilities covered 
by this final rule include xylene, toluene, ethylbenzene, methyl ethyl 
ketone, methyl isobutyl ketone, ethylene glycol, and glycol ethers. All 
of these pollutants can cause reversible or irreversible toxic effects 
following exposure. The potential toxic effects include irritation of 
the eye, nose, throat, and skin and damage to the blood cells, heart, 
liver, and kidneys. The final rule is estimated to reduce baseline 
emissions of HAP by 24 percent or 318.5 megagrams per year (Mg/yr) (350 
tons per year (tpy)).
    The emissions reductions achieved by these standards, combined with 
the emissions reductions achieved by similar standards, will achieve 
the primary goal of the CAA, which is to ``enhance the quality of the 
Nation's air resources so as to promote the public health and welfare 
and productive capacity of its population''. The intent of this final 
regulation is to protect the public health by requiring the maximum 
degree of reduction in emissions of volatile organic hazardous air 
pollutants (VOHAP) from new and existing sources, taking into 
consideration the cost of achieving such emission reduction, any nonair 
quality, health and environmental impacts, and energy requirements.

DATES: The effective date is December 15, 1995. Incorporation by 
reference of certain publications listed in the regulations is approved 
by the director of the Federal Register as of December 15, 1995.

ADDRESSES: Background Information Document. The background information 
document (BID) for the promulgated standards may be obtained from the 
U.S. Department of Commerce, National Technical Information Service 
(NTIS), Springfield, Virginia, 22161, telephone number (703) 487-4650. 
Please refer to ``National Emission Standards for Hazardous Air 
Pollutants for Shipbuilding and Ship Repair Facilities (Surface 
Coating)--Background Information Document for Final Standards,'' EPA-
453/R-95-016b. The BID contains (1) a summary of the changes made to 
the standards since proposal and (2) a summary of all the public 
comments made on the proposed standards and the Administrator's 
response to the comments.
    Electronic versions of the promulgation BID as well as this final 
rule are available for download from the EPA's Technology Transfer 
Network (TTN), a network of electronic bulletin boards developed and 
operated by the Office of Air Quality Planning and Standards. The TTN 
provides information and technology exchange in various areas of air 
pollution control. The service is free, except for the cost of a phone 
call. Dial (919) 541-5742 for data transfer of up to a 14,400 bits per 
second. If more information on TTN is needed, contact the systems 
operator at (919) 541-5384.
    Docket. Docket No. A-92-11, containing supporting information used 
in developing the promulgated standards, is available for public 
inspection and copying from 8 a.m. to 5:30 p.m., Monday through Friday, 
at the EPA's Air and Radiation Docket and Information Center, Waterside 
Mall, Room M-1500, Ground Floor, 401 M Street SW, Washington, DC 20460. 
A reasonable fee may be charged for copying.

FOR FURTHER INFORMATION CONTACT: Dr. Mohamed Serageldin at (919) 541-
2379, Emission Standards Division (MD-13), U.S. Environmental 
Protection Agency, Research Triangle Park, North Carolina 27711.

 
[[Page 64331]]

SUPPLEMENTARY INFORMATION: Under Section 307(b)(1) of the CAA, judicial 
review of NESHAP is available only by the filing of a petition for 
review in the U.S. Court of Appeals for the District of Columbia 
Circuit within 60 days of publication of this rule. Under Section 
307(b)(2) of the CAA, the requirements that are the subject of this 
action may not be challenged later in civil or criminal proceedings 
brought by the EPA to enforce these requirements.
    The information presented in this preamble is organized as follows:

I. Regulatory Background and Purpose
II. The Standards
III. Summary of Impacts
IV. Significant Changes to the Proposed Standards
    A. Public Participation
    B. Comments on the Proposed Standards
    C. Significant Comments/Changes
V. Control Techniques Guidelines (CTG)
VI. Administrative Requirements
    A. Docket
    B. Paperwork Reduction Act
    C. Executive Order 12866
    D. Executive Order 12875
    E. Regulatory Flexibility Act
    F. Unfunded Mandates Act of 1995

I. Regulatory Background and Purpose

    Section 112 of the CAA requires the EPA to evaluate and control HAP 
emissions. The control of HAP is to be achieved through promulgation of 
emission standards under Sections 112(d) and (f), and of work practice 
standards under Section 112(h) where appropriate, for categories of 
sources that emit HAP. Pursuant to Section 112(c) of the CAA, the EPA 
published in the Federal Register the initial list of source categories 
that emit HAP on July 16, 1992 (57 FR. 31576). This list includes major 
and area sources of HAP for which the EPA intends to issue regulations 
between November 1992 and November 2000.
    The CAA was created, in part, ``to protect and enhance the quality 
of the Nation's air resources so as to promote the public health and 
welfare and productive capacity of its population'' 42 U.S.C. 
Sec. 7401(b). This final regulation will protect the public health by 
reducing emissions of HAP from surface coating operations at 
shipbuilding and ship repair facilities (shipyards).
    Many shipyards are major sources of HAP emissions, emitting over 23 
Mg/yr (25 tpy) of organic HAP, including toluene, xylene, ethylbenzene, 
methanol, methyl ethyl ketone, methyl isobutyl ketone, ethylene glycol 
and glycol ethers. All of these pollutants can cause reversible or 
irreversible toxic effects following exposure. The potential toxic 
effects include irritation of the eyes, nose, throat, and skin, 
irritation and damage to the blood cells, heart, liver, and kidneys. 
These adverse health effects are associated with a wide range of 
ambient concentrations and exposure times and are influenced by source-
specific characteristics such as emission rates and local 
meteorological conditions. Health impacts are also dependent on 
multiple factors that affect human variability, such as genetics, age, 
health status (e.g., the presence of pre-existing disease), and 
lifestyle.
    The final standards will reduce VOHAP emissions from shipyard 
surface coating operations by 318.5 Mg/yr (350 tpy) from a baseline 
level of 1,362 Mg/yr (1,497 tpy). No significant economic impacts are 
associated with the final standards. No firms or facilities are at risk 
of closure as a result of the final standards, and there will not be a 
significant economic impact on a substantial number of small entities.

II. The Standards

    The final rule is applicable to all existing and new shipbuilding 
and repair facilities that are major sources of HAP or are located at 
plant sites that are major sources. Major source facilities that are 
subject to this rule must not apply any marine coating with a VOHAP 
content in excess of the applicable limit and must implement the work 
practices required in the rule. Section 112(a) of the CAA defines major 
source as a source, or group of sources, located within a contiguous 
area and under common control that emits or has the potential to emit, 
considering controls, 9.1 Mg/yr (10 tpy) or more of any individual HAP 
or 22.7 Mg/yr (25 tpy) or more of any combination of HAP. Area sources 
are stationary sources that do not qualify as ``major.'' The term 
``affected source'' as used in this rule means the total of all HAP 
emission points at each shipbuilding and ship repair facility that is 
subject to the rule. ``Potential to emit'' is defined in the Section 
112 General Provisions (40 CFR 63.2) as ``the maximum capacity of a 
stationary source to emit a pollutant under its physical or operational 
design.''
    To determine the applicability of this rule to facilities that are 
within a contiguous area of other HAP-emitting emission sources that 
are not part of the source category covered by this rule, the owner or 
operator must determine whether the plant site as a whole is a major 
source. A formal HAP emissions inventory must be used to determine if 
total HAP emissions from all HAP emission sources at the plant site 
meets the definition of a major source. The actual emissions of HAP 
from most shipyards are substantially less than the major source cutoff 
limits [i.e., 9.1 Mg/yr (10 tpy) of any single HAP, or 22.8 Mg/yr (25 
tpy) of all HAP combined]. If the source becomes a synthetic minor 
source through accepting enforceable restrictions that ensure potential 
and actual HAP emissions will be below the major source cutoffs, the 
NESHAP does not apply. See promulgation BID Section 2.4 for additional 
details and the associated recordkeeping provisions (see ADDRESSES 
section of this preamble).
    Existing major sources may switch to area source status by 
obtaining and complying with a federally enforceable limit on their 
potential to emit prior to the ``compliance date'' of the regulation. 
The ``compliance date'' for this regulation is defined as December 16, 
1996. New major sources are required to comply with the NESHAP 
requirements upon start up or the promulgation date, whichever is 
later. Existing major sources may switch to area source status by 
obtaining and complying with a federally enforceable limit on their 
potential to emit that makes the facility an area source prior to the 
``compliance date'' of the regulation. The compliance date for this 
regulation is December 16, 1996. A facility that has not obtained 
federally enforceable limits on its potential to emit by the compliance 
date, and that has not complied with the NESHAP requirements, will be 
in violation of the NESHAP. New major sources are required to comply 
with the NESHAP requirements upon start-up or the promulgation date, 
whichever is later. All sources that are major sources for HAP on the 
compliance date are required to comply permanently with the NESHAP to 
ensure that the maximum achievable reductions in toxic emissions are 
achieved and maintained. All major sources for HAP on the ``compliance 
date'' are required to comply permanently with the NESHAP to ensure 
that the maximum achievable reductions in toxic emissions are achieved 
and maintained.
    The final standards impose limits on the VOHAP content of 23 types 
of coatings used at shipyards. Compliance with the VOHAP limits must be 
demonstrated on a monthly basis. The promulgated standards include four 
compliance options to allow owners or operators flexibility in 
demonstrating compliance with the VOHAP limits. The final standards 
also allow for an alternative means of compliance other than using 
compliant coatings, if approved by the Administrator. The Administrator 
shall approve the alternative means of limiting emissions if, in the 
Administrator's judgment, 

[[Page 64332]]
(after control) emissions of VOHAP per volume solids applied will be no 
greater than those from the use of coatings that comply with the 
applicable VOHAP limits.
    The final standards also require that all handling and transfer of 
VOHAP containing materials to and from containers, tanks, vats, 
vessels, and piping systems be conducted in a manner that minimizes 
spills and other factors leading to emissions. (This requirement 
includes hand- or brush-application of coatings.) In addition, 
containers of thinning solvent or waste that hold any VOHAP must be 
normally closed (to minimize evaporation) unless materials are being 
added to or removed from them.
    Owners or operators of existing shipbuilding and ship repair 
(surface coating) operations subject to the requirements promulgated 
under Section 112(d) of the CAA are required to comply with the 
standards within 1 year from December 15, 1995. Owners or operators of 
new shipbuilding and ship repair (surface coating) operations with 
initial startup before or after December 15, 1996 are required to 
comply with all requirements of the standards upon startup. The first 
requirement is the initial notification due 6 months before start up.

III. Summary of Impacts

    These standards will reduce nationwide emissions of HAP from 
shipbuilding and ship repair (surface coating) operations by 
approximately 318.5 Mg (350 tons) in 1997 compared to the emissions 
that would result in the absence of the standards. These standards will 
also reduce volatile organic compounds (VOC) emissions from those same 
shipbuilding and ship repair (surface coating) operations by 
approximately 837 Mg (920 tons) in 1997 compared to the emissions that 
would result in the absence of the standards. No significant adverse 
secondary air, water, solid waste, or energy impacts are anticipated 
from the promulgation of these standards.
    Implementation of this regulation is expected to result in 
nationwide annualized costs for existing shipyards of about $2 million 
beyond baseline. This estimation is based on an analysis of the 
application of VOHAP limits on marine coatings at all existing major 
source facilities not currently controlled to the level of the 
standards.
    The economic impact analysis conducted prior to proposal showed 
that the economic impacts from the proposed standard would be 
insignificant. An update of the economic impact analysis (due to 
revisions to the final rule) indicates that the original conclusion 
still holds true. Implementation of the rule is not expected to cause 
significant economic impacts for the 35 major source facilities in this 
industry.

IV. Significant Changes to the Proposed Standards

A. Public Participation

    The standards were proposed and the preamble was published in the 
Federal Register on December 6, 1994 (59 FR 62681). The preamble to the 
proposed standards discussed the availability of the regulatory text 
and proposal BID, which described the regulatory alternatives 
considered and the impacts of those alternatives. Public comments were 
solicited at the time of proposal, and copies of the regulatory text 
and BID were distributed to interested parties. Electronic versions of 
the preamble, regulation, and BID were made available to interested 
parties via the TTN (see SUPPLEMENTARY INFORMATION section of this 
preamble).
    To provide interested persons the opportunity for oral presentation 
of data, views, or arguments concerning the proposed standards, a 
public hearing was held on January 18, 1995 in Research Triangle Park, 
North Carolina. The public comment period was from December 6, 1994 to 
February 17, 1995. In all, 22 comment letters were received (including 
one duplicate). The comments have been carefully considered, and 
changes have been made to the proposed standards when determined by the 
Administrator to be appropriate.

B. Comments on the Proposed Standards

    Comments on the proposed standards were received from 22 
commenters; the commenters were comprised mainly of States, shipyard 
owners or operators, marine coating manufacturers, environmental 
groups, and trade associations. A detailed discussion of these comments 
and responses can be found in the promulgation BID, which is referred 
to in the ADDRESSES section of this preamble. The summary of comments 
and responses in the BID serve as the basis for the revisions that have 
been made to the standards between proposal and promulgation. (Some 
additional changes have been made to clarify the standards and improve 
their organization.) Most of the comment letters contained multiple 
comments. For summary purposes, the comments were grouped into several 
topic areas.

C. Significant Comments/Changes

    Several changes have been made since the proposal of these 
standards. The majority of the changes have been made to clarify 
portions of the rule that were unclear to the commenters. A summary of 
the major comments and changes is presented below.
(1) Applicability to Coating Manufacturers
    Several commenters asked the EPA to regulate the manufacture and 
sale of marine coatings rather than the end users (shipyards). While 
this approach has some obvious advantages, the EPA does not have 
authority to regulate (with this NESHAP) the manufacture and sale of 
coatings under Section 112(d). The EPA plans to address requirements 
for coating manufacturers under Section 183(e) of the CAA by March 1997 
through either a national rule or a control techniques guidelines 
(CTG).
(2) Number of Major Sources/MACT Floor
    Some commenters thought the EPA underestimated the number of major 
source shipyards, and thereby erred in the MACT floor determination. 
Although the EPA based the proposed number of major sources on the best 
available information at the time, there has been recent additional 
information provided by the Louisiana Department of Environmental 
Quality (Louisiana having more shipyards than any other State) showing 
there are four other shipyards with HAP emissions greater than the 
major source cutoffs. At the same time, however, the same additional 
information indicated that one of the shipyards identified in the 
original list of 25 has HAP emissions well below the major source 
cutoffs (based on recent operating permit data).
    This information along with other State permit data on annual paint 
usage and VOC/VOHAP emissions indicates that there are 35 major 
sources, instead of the estimated 25 discussed in the proposal 
preamble. Even though 10 additional major sources have been identified, 
the MACT floor would not change. At proposal, the EPA based the MACT 
floor on the control achieved by the best-performing 5 sources, as 
required by Section 112 (d)(3) of the CAA when there are less than 30 
sources in the category. If there are 35 sources in the category, the 
MACT floor would be based on the best-performing 4.2 sources (12 
percent of the 35) as required by Section 112 (d)(3). Under both 
situations, the MACT floor is the same.
    Another point to be considered is that even if there are 45 major 
source 

[[Page 64333]]
shipyards, the best 12 percent is still represented by the best 0.12 
x  45 = 5.4 or best 5 yards. Both the MACT floor and the associated 
marine coating VOHAP limits would be identical. Since the NESHAP 
proposal date, the Navy has adopted VOC limits identical to (or more 
stringent than) the 1992 California limits for all Naval shipyards and 
Navy-related work. Since at least two of the Naval shipyards qualify as 
major sources, if the MACT floor were to be recalculated today, the 
limits would be identical to the proposed (and promulgated) limits, 
regardless of the approach used to determine the mean or median level 
of control. The Louisiana limits, which are less stringent for the 
major use categories of coatings, would not enter into any of the floor 
calculations.
    Recent indications from the Navy and other industry representatives 
reveal that fewer affected sources exist today because of base closings 
and consolidation efforts. The original estimation of 25 major source 
shipyards was based on annual paint and solvent usage, type of work 
conducted (new construction versus repair), number of employees, and 
type (size) of vessels serviced. The (weighted) average HAP 
concentration of all marine coatings is an integral part of emissions 
estimates and determining if a shipyard qualifies as a major source 
facility. Other HAP-emitting processes at most shipyards such as 
welding, metal forming/cutting, and abrasive blasting exist, but the 
vast majority of HAP emissions come from organic solvents used in 
marine paints and solvents used for thinning and cleaning.
(3) Elimination of Compliance Option 1
    Proposed compliance option 1 required that each and every container 
of coating be tested or certified prior to application. Based on 
comments pertaining to its impracticality and the unrealistic costs 
associated with testing/certifying every container of coating, 
compliance option 1 was eliminated from the final rule. The flow 
diagram (included as Figure 1 in the regulation) summarizing the 
various compliance options was similarly revised and simplified.
(4) Training Requirements
    In the proposed rule, the EPA required training and certification 
for all personnel involved with paints and/or solvents. There were 
several comments regarding the inappropriate amount and level of detail 
involved with the training and annual personnel certifications. Some 
commenters indicated that there was a high turnover rate involving 
personnel, and the proposed training requirements would impose a 
significant impact for very little reduction in HAP emissions. The EPA 
has determined that it is appropriate to leave the details of training 
to the individual shipyards who can best define the real needs of their 
specific locations and applications. Affected sources are responsible 
for complying with the standards, and it is in their own best interest 
to ensure that workers are aware of the associated requirements. 
Therefore, all training requirements related to painting/thinning, 
handling/transfer of VOHAP-containing materials, and certification of 
all personnel involved with surface coating operations have been 
eliminated from the final rule.
(5) Definition of Pleasure Craft
    A definition of pleasure craft has been added to ensure that the 
standards apply only to those coatings (and solvents) used on 
commercial and military vessels. Some commenters were concerned that, 
as proposed, the rule could be interpreted to regulate coatings used on 
pleasure crafts. Other commenters suggested that pleasure crafts should 
be included. The EPA did not intend to include coatings used on 
pleasure crafts in these standards. Such coatings (applications) will 
be considered under the development of the Boat Manufacturing NESHAP.
(6) Definition of Affected Source
    The definition of affected source was modified to ensure that the 
requirements of the standards apply only to those sources (major source 
shipyards) with a minimum annual marine coating usage of 1,000 L (264.2 
gal). The primary focus of this NESHAP is surface coating operations 
and this clarification will minimize/eliminate the impact on shipyards 
with minimal surface coating emissions.
(7) Reporting and Notification Changes
    Changes have also been made to the notification and reporting 
schedules. The initial notification deadline has been extended from 120 
to 180 days. The frequency of reporting has also been reduced from the 
proposed quarterly requirement to semiannual. This change was made to 
allow shipyards to be consistent with current/upcoming Title V permit 
requirements. The first compliance certification report is due 6 months 
after the compliance date.
(8) Exemptions
    Several commenters recommended that the EPA adopt some of the 
exemptions provided in various State regulations. Since the MACT floor 
was based on three shipyards located in California and those yards have 
exemptions similar to those requested, the EPA determined there would 
be no significant impact and adopted the following exemptions:
    a. Any individual coating with annual usage less than 200 liters 
(52.8 gallons) is exempt from the requirements of the standards (i.e., 
the applicable VOHAP limit). The total amount of all coatings exempted 
in any given year cannot exceed 1,000 liters (264.2 gallons); and
    b. Any coating applied via nonrefillable hand-held aerosol cans is 
exempt from the requirements of the standards.
(9) Revision of Equations
    The equations used with compliance options 2 and 3 (proposed 
options 3 and 4) have been changed so that calculations are based on 
volume solids. The revised equations require the VOHAP limits based on 
volume solids be used in place of the VOHAP limits based on volume of 
coating less water and non-HAP exempt solvents. This change was made to 
provide a uniform basis for calculating emission reductions (i.e., 
associated with thinning additions or add-on control devices).
(10) Weather-related VOHAP limits
    The proposal preamble requested comments on how to handle thinning 
issues for various climatic conditions. The EPA reviewed the comments 
and collected additional information on both cold-and hot/humid-weather 
thinning practices. As a result of this information, cold-weather VOHAP 
limits are included as part of the final rule. If the temperature is 
below 4.5 deg.C (40 deg.F) at the time the coating is applied and the 
source needs to thin that coating beyond the applicable VOHAP limit, 
the date, time, and temperature (including units) must be documented, 
and the applicable cold-weather VOHAP limit may be used. The cold-
weather VOHAP limits on a solids basis were increased equivalently, but 
the actual values vary for each coating category. The cold-weather 
VOHAP limits are applicable only to as-supplied coatings that are 
greater than 40 percent solids by volume.
    With regards to hot/humid weather conditions, the data and 
responses to Section 114 information requests sent by EPA to nine 
shipyards and other information received did not provide a basis for 
including a humid weather thinning allowance. Respondents identified 
meteorological conditions under which coatings must be thinned 

[[Page 64334]]
or not applied at all. Only one shipyard, which uses large quantities 
of water-based preconstruction primer, maintained that a humid weather 
thinning allowance should be adopted. However, the shipyard did not 
explain how hydrocarbon-based thinners would relate to its water-based 
operation.
    Hot and humid weather conditions appear to inhibit coating 
operations work less frequently than does cold weather. The different 
responses can best be understood as they relate to the specifications 
for thinning under different climatic conditions, which are dependent 
on paint type and manufacturer. Some coating formulations lose at high 
temperature more organic solvent than others which could lead to 
thickening (increase in viscosity) of the paint. This occurs where the 
rate of application is low and paint containers remain uncovered. 
Nevertheless, beginning in September 1994, shipyards performing work 
for the Navy in humid climates such as Louisiana, Florida, and Virginia 
are required by the Navy to use paints with VOHAP contents levels that 
are in compliance with the limits in the NESHAP, without provision for 
additional thinning. There is no reason that VOHAP limits that are 
achievable for paints used by the Navy cannot also be achieved for 
paints used by commercial shipyards located in humid climates and that, 
therefore, a thinning allowance for hot/humid weather conditions is not 
necessary. If conditions necessitate application of small amount of 
noncompliant coatings, the regulation provides a low usage exemption of 
1,000 liters of coating per year.

D. Minor Changes

    This section contains a list of several of the minor changes to the 
final rule. A discussion of these changes can be found in the 
promulgation BID. (See ADDRESSES section of this preamble.)
    (1) Revisions to definitions and phrasing have been made to clarify 
the regulation.
    (2) Based on comments received and on changes to the notification 
and recordkeeping and reporting requirements, those sections of the 
standard have been reorganized and overlapping requirements clarified 
or eliminated.
    (3) Table 2, which contains the VOHAP limits for the various 
coating categories, has been simplified to contain only one set of 
units (metric). The conversion factor for English units is included as 
a footnote to the table.

V. Control Techniques Guidelines (CTG)

    Section 183(b)(4) of the CAA requires the Administrator to issue a 
CTG document for limiting VOC and particulate matter emissions from 
coatings (paints) and solvents used in the shipbuilding and ship repair 
industry. Since VOHAP emissions from this industry are generally a 
subset of VOC emissions, the control techniques evaluated for the MACT 
standard are also applicable to VOC emissions. Therefore, the EPA has 
developed the CTG concurrently with the NESHAP and will be issuing 
final guidance under a separate notice. As explained in the proposal 
notice (AD-FR-    ), no CTG is being issued for particulate matter 
emissions.

VI. Administrative Requirements

A. Docket

    The Docket is an organized and complete file of all the information 
considered by the EPA in the development of this rulemaking. The Docket 
is a dynamic file, since material is added throughout the rulemaking 
development. The docketing system is intended to allow members of the 
public and industries involved to readily identify and locate documents 
so that they can effectively participate in the rulemaking process. 
Along with the statement of basis and purpose of the proposed and 
promulgated standards and the EPA responses to significant comments, 
the contents of the Docket will serve as the record in case of judicial 
review [see 42 U.S.C. 7607(d)(7)(A)].

B. Paperwork Reduction Act

    The Office of Management and Budget (OMB) is currently reviewing 
the information collection request (ICR) requirements contained in this 
rule under the provisions of the Paperwork Reduction Act, 44 U.S.C. 
3501 et seq. and has assigned OMB control number 2060-0330 and EPA ICR 
number 1712.2.
    The information required to be collected by this rule is needed as 
part of the overall compliance and enforcement program. It is necessary 
to identify the regulated entities who are subject to the rule and to 
ensure their compliance with the rule. The recordkeeping and reporting 
requirements are mandatory and are being established under authority of 
Section 114 of the Act. All information submitted to the EPA for which 
a claim of confidentiality is made will be safeguarded according to the 
EPA policies set forth in Title 40, Chapter 1, Part 2, Subpart B--
Confidentiality of Information (see 40 CFR part 2; 41 FR 36902, 
September 1, 1976; amended by 43 FR 39999, September 8, 1978; 43 FR 
42251, September 28, 1978; 44 FR 17674, March 23, 1979).
    The total annual reporting and recordkeeping burden for this 
collection averaged over the first 3 years is estimated to be $26,218 
per year. The average burden, per respondent, is 772 hours per year. 
This estimate includes the time needed to review instructions; develop, 
acquire, install, and utilize technology and systems for the purposes 
of collecting, validating, and verifying information, processing and 
maintaining information, and disclosing and providing information; 
adjust the existing ways to comply with any previously applicable 
instructions and requirements; train personnel to be able to respond to 
a collection of information; search data sources; complete and review 
the collection of information; and transmit or otherwise disclose the 
information. The total time, effort, or financial resources expended by 
persons to generate, maintain, retain, or disclose or provide 
information to or for a Federal agency. This includes the time needed 
to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information. The rule requires 
an initial one-time notification from each respondent and subsequent 
notification every 6 months to indicate their compliance status. At the 
time of the initial notification each respondent would also be required 
to submit an implementation plan that describes compliance procedures. 
A respondent would also be required to keep necessary records of data 
to determine compliance with the standards in the regulation. The data 
would be recorded monthly. A report would need to be submitted semi-
annually by each respondent. There would be an estimated 35 respondents 
to the proposed collection requirements.
    Send comments on the EPA's need for this information, the accuracy 
of the provided burden estimates, and any suggested methods for 
minimizing respondent burden, including through the use of automated 
collection techniques to the Director, OPPE 

[[Page 64335]]
Regulatory Information Division; U. S. Environmental Protection Agency 
(2136); 401 M Street SW.; Washington, DC 20460; and to the Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
725 17th Street NW.; Washington, DC 20503; marked ``Attention: Desk 
Officer for EPA.'' Include the OMB number and the EPA ICR number in any 
correspondence.

C. Executive Order 12866: Administrative Designation and Regulatory 
Analysis

    Under Executive Order 12866 [58 FR 51735 (October 4, 1993)], the 
EPA is required to judge whether a regulation is ``significant'' and 
therefore subject to OMB review and the requirements of this Executive 
Order to prepare a regulatory impact analysis (RIA). The Order defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may (1) have an annual effect on the economy of $100 million 
or more or adversely affect in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; (2) create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (3) materially alter 
the budgetary impact of entitlements, grants, user fees, or loan 
programs, or the rights and obligation of recipients thereof; or (4) 
raise novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the Executive 
Order.
    Pursuant to the terms of Executive Order 12866, it has been 
determined that this rule is not a ``significant regulatory action'' 
and is therefore not subject to OMB review.

D. Executive Order 12875

    To reduce the burden of federal regulations on States and small 
governments, the President issued Executive Order 12875 on October 26, 
1993, entitled Enhancing the Intergovernmental Partnership. In 
particular, this executive order is designed to require agencies to 
assess the effects of regulations that are not required by statute and 
that create mandates upon State, local, or tribal governments. Two 
methods exist for complying with the requirements of the executive 
order: (1) Assure that funds necessary to pay direct costs of 
compliance with a regulation are provided, or (2) provide OMB a 
description of the communications and consultations with State/local/
tribal governments, the nature of their concerns, any written 
submission from them, and the EPA's position supporting the need to 
issue the regulation.
    The EPA has always been concerned about the effect of the cost of 
regulations on small entities; the EPA has consulted with and sought 
input from public entities to explain costs and burdens they may incur.
    The EPA advised interested parties on July 16, 1992 (57 FR 21592), 
of the categories considered as major and area sources of HAP, and 
shipbuilding and ship repair (surface coating) industry was listed as a 
category of both major and area sources. The EPA made significant 
effort to hear from all levels of interest and all segments of the 
shipbuilding and ship repair industry. To facilitate comments and 
input, the EPA conducted comprehensive mailouts of draft and proposal 
package materials in 1993 and 1994 to shipyards, Department of the Navy 
(Naval Sea Systems Command), marine coating manufacturers, and State 
and local government officials. All were given opportunity to comment 
on the presented regulatory development activities of the standard. 
Throughout the regulatory development process and more specifically in 
consultation meetings, industry representatives from commercial/private 
shipyards, the U.S. Navy, and various trade associations were given an 
opportunity to comment on the proposed regulatory approach and the MACT 
alternatives being developed. The major topic areas resulting from 
these discussions included the need for cold-weather thinning limits, 
flexibility in compliance approaches, and the need for additional data 
regarding certain coating categories (i.e., inorganic zincs). Some of 
these meetings were held at EPA, while others were conducted at 
shipyard locations. In addition, individual consultations were 
conducted with three local (air quality management) districts in 
California regarding the use of the mass of VOHAP/volume of solids for 
determining compliance when the coating is thinned.
    The EPA addressed many of the suggestions and comments received 
from State and local agencies during the public comment period, many of 
which will reduce the impact to small businesses. Some of these 
suggestions resulted in changes to the rule, including modification of 
the definition of pleasure craft to clarify that the standards apply 
only to coatings (and solvents) used on commercial and military vessels 
and not to boats in non-military shipyards less than 20 meters in 
length; modification of the definition of affected source to ensure 
that the requirements of the standards apply only to those sources 
(major source shipyards) with a minimum annual marine coating usage of 
1,000 Liters (264.2 gallons); exemption of any individual coating with 
annual usage less than 200 liters (52.8 gallons) (i.e., the applicable 
VOHAP limit); exemption of any coating applied via nonrefillable hand-
held aerosol cans; making the equations used to determine thinning 
allowance the same for all options to provide a uniform basis for 
calculating emission reductions (i.e., associated with thinning 
additions or add-on control devices); extension of the initial 
notification deadline from 120 to 180 days and reduction of the 
frequency of reporting from the proposed quarterly requirement to 
semiannual, which allows shipyards to be consistent with current/
upcoming Title V permit requirements; reorganization and clarification 
of the notification and recordkeeping and reporting requirement, 
including revision of the definitions and phrasing to ensure that the 
terminology is understandable; and the addition of 10 major sources 
based on data provided by Louisiana and Texas State agencies.
    Some of the other major concerns that were noted in the State and/
or local agency comments and that were considered by the EPA in 
developing the proposed and final rule involved realistic work practice 
standards, multiple compliance options to provide flexibility for 
shipyard owners/operators and State regulators, and streamlining (or 
eliminating) any overlapping recordkeeping and reporting requirements. 
Documentation of all meetings and public comments can be found in 
Docket A-92-11.
    The EPA has considered the purpose and intent of Executive Order 
12875 and has determined that shipbuilding and ship repair facility 
NESHAP are needed. The rule is generally required by statute under 
Section 112 of the CAA because shipbuilding and ship repair facilities 
emit significant quantities of air pollutants. Through meetings and 
consultations during project development and proposal, efforts were 
made to inform entities of the costs required to comply with the 
regulation; in addition, modifications were made to reduce the burden 
to small entities.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the 
EPA to consider potential impacts of proposed regulations on small 
business ``entities.'' If a preliminary analysis indicates that a 
proposed regulation would have a 

[[Page 64336]]
significant economic impact on 20 percent or more of small entities, 
then a regulatory flexibility analysis must be prepared. The EPA's 
analysis of these impacts was provided in the preamble to the proposed 
rule (59 FR 62681) and no negative impacts for small businesses will 
result from the changes incorporated into the final rule.
    Pursuant to the provisions of 5 U.S.C. 605(b), I hereby certify 
that this rule will not have a significant economic impact on a 
substantial number of small business entities.

F. Unfunded Mandates Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under Section 202 of the UMRA, the 
EPA generally must prepare a written statement including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
1 year. Before promulgating an EPA rule for which a written statement 
is needed, Section 205 of the UMRA generally requires EPA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective or least burdensome alternative 
that achieves the objectives of the rule. The provisions of Section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
Section 205 allows EPA to adopt an alternative other than the least 
costly, most cost-effective or least burdensome alternative if the 
Administrator publishes with the final rule an explanation why that 
alternative was not adopted. Before EPA establishes any regulatory 
requirements that may significantly or uniquely affect small 
governments, including tribal governments, it must have developed under 
Section 203 of the UMRA a small government agency plan. The plan must 
provide for notifying potentially affected small governments, enabling 
officials of affected small governments to have meaningful and timely 
input in the development of EPA regulatory proposals with significant 
Federal intergovernmental mandates and informing, educating, and 
advising small governments on compliance with the regulatory 
requirements.
    The EPA has determined that the action promulgated today does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. Therefore, the requirements of the 
Unfunded Mandates Act do not apply to this action.

List of Subjects in 40 CFR Part 63

    Environmental protection, Air pollution control, Incorporation by 
reference, Marine coating limits, Reporting and recordkeeping 
requirements, Shipbuilding and ship repair standards.

    Dated: November 14, 1995.
Carol M. Browner,
Administrator.

    For the reasons set out in the preamble, title 40, chapter I, part 
63 of the Code of Federal Regulations is amended as follows:

PART 63--NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS 
FOR SHIPBUILDING AND SHIP REPAIR (SURFACE COATING)

    1. The authority citation for part 63 continues to read as follows:

    Authority: Sections 101, 112, 114, 116, and 301 of the Clean Air 
Act (42 U.S.C. 7401 et seq., as amended by Pub. L. 101-549, 104 
Stat. 2399).

    2. Section 63.14 is amended by adding paragraph (b)(4) through 
(b)(14) to read as follows:


Sec. 63.14  Incorporation by reference.

* * * * *
    (b) * * *
    (4) ASTM D523-89, Standard Test Method for Specular Gloss, IBR 
approved for Sec. 63.782.
    (5) ASTM D1475-90, Standard Test Method for Density of Paint, 
Varnish, Lacquer, and Related Products, IBR approved for Sec. 63.788 
appendix A.
    (6) ASTM D2369-93, Standard Test Method for Volatile Content of 
Coatings, IBR approved for Sec. 63.788 appendix A.
    (7) ASTM D3912-80, Standard Test Method for Chemical Resistance of 
Coatings Used in Light-Water Nuclear Power Plants, IBR approved for 
Sec. 63.782.
    (8) ASTM D4017-90, Standard Test Method for Water and Paints and 
Paint Materials by Karl Fischer Method, IBR approved for Sec. 63.788 
appendix A.
    (9) ASTM D4082-89, Standard Test Method for Effects of Gamma 
Radiation on Coatings for Use in Light-Water Nuclear Power Plants, IBR 
approved for Sec. 63.782.
    (10) ASTM D4256-89 [reapproved 1994], Standard Test Method for 
Determination of the Decontaminability of Coatings Used in Light-Water 
Nuclear Power Plants, IBR approved for Sec. 63.782.
    (11) ASTM D3792-91, Standard Test Method for Water Content of 
Water-Reducible Paints by Direct Injection into a Gas Chromatograph, 
IBR approved for Sec. 63.788 appendix A.
    (12) ASTM D3257-93, Standard Test Methods for Aromatics in Mineral 
Spirits by Gas Chromatography, IBR approved for Sec. 63.786(b).
    (13) ASTM E260-91, Standard Practice for Packed Column Gas 
Chromatography, IBR approved for Sec. 63.786(b).
    (14) ASTM E180-93, Standard Practice for Determining the Precision 
of ASTM Methods for Analysis and Testing of Industrial Chemicals, IBR 
approved for Sec. 63.786(b).
    3. Part 63 is amended by adding subpart II to read as follows:

Subpart II--National Emission Standards for Shipbuilding and Ship 
Repair (Surface Coating)

Secs.
63.780  Relationship of subpart II to subpart A of this part.
63.781  Applicability.
63.782  Definitions.
63.783  Standards.
63.784  Compliance dates.
63.785  Compliance procedures.
63.786  Test methods and procedures.
63.787  Notification requirements.
63.788  Recordkeeping and reporting requirements.

Table 1 to Subpart II of Part 63--General Provisions of 
Applicability to Subpart II
Table 2 to Subpart II of Part 63--Volatile Organic HAP (VOHAP) 
Limits for Marine Coatings
Table 3 to Subpart II of Part 63--Summary of Recordkeeping and 
Reporting Requirements
Appendix A to Subpart II of Part 63--VOC Data Sheet
Appendix B to Subpart II of Part 63--Maximum Allowable Thinning 
Rates As a Function of As Supplied VOC Content and Thinner Density

Subpart II--National Emission Standards for Shipbuilding and Ship 
Repair (Surface Coating)


Sec. 63.780  Relationship of subpart II to subpart A of this part.

    Table 1 of this subpart specifies the provisions of subpart A of 
this part that apply to owners and operators of sources subject to the 
provisions of this subpart.


Sec. 63.781  Applicability.

    (a) The provisions of this subpart apply to shipbuilding and ship 
repair operations at any facility that is a major source.
    (b) The provisions of this subpart do not apply to coatings used in 
volumes of less than 200 liters (52.8 gallons) per 

[[Page 64337]]
year, provided the total volume of coating exempt under this paragraph 
does not exceed 1,000 liters per year (264 gallons per year) at any 
facility. Coatings exempt under this paragraph shall be clearly labeled 
as ``low-usage exempt,'' and the volume of each such coating applied 
shall be maintained in the facility's records.
    (c) The provisions of this subpart do not apply to coatings applied 
with hand-held, nonrefillable, aerosol containers or to unsaturated 
polyester resin (i.e., fiberglass lay-up) coatings. Coatings applied to 
suitably prepared fiberglass surfaces for protective or decorative 
purposes are subject to this subpart.
    (d) The provisions in subpart A of this part pertaining to 
startups, shutdowns, and malfunctions and continuous monitoring do not 
apply to this source category unless an add-on control system is used 
to comply with this subpart in accordance with Sec. 63.783(c).


Sec. 63.782  Definitions.

    Terms used in this subpart are defined in the Clean Air Act (CAA), 
in subpart A of part 63, or in this section as follows:
    Add-on control system means an air pollution control device such as 
a carbon absorber or incinerator that reduces pollution in an air 
stream by destruction or removal prior to discharge to the atmosphere.
    Affected source means any shipbuilding or ship repair facility 
having surface coating operations with a minimum 1,000 liters (L) (264 
gallons [gal]) annual marine coating usage that is subject to this 
subpart.
    Air flask specialty coating means any special composition coating 
applied to interior surfaces of high pressure breathing air flasks to 
provide corrosion resistance and that is certified safe for use with 
breathing air supplies.
    Antenna specialty coating means any coating applied to equipment 
through which electromagnetic signals must pass for reception or 
transmission.
    Antifoulant specialty coating means any coating that is applied to 
the underwater portion of a vessel to prevent or reduce the attachment 
of biological organisms and that is registered with the EPA as a 
pesticide under the Federal Insecticide, Fungicide, and Rodenticide 
Act.
    As applied means the condition of a coating at the time of 
application to the substrate, including any thinning solvent.
    As supplied means the condition of a coating before any thinning, 
as sold and delivered by the coating manufacturer to the user.
    Batch means the product of an individual production run of a 
coating manufacturer's process. A batch may vary in composition from 
other batches of the same product.
    Bitumens mean black or brown materials that are soluble in carbon 
disulfide and consist mainly of hydrocarbons.
    Bituminous resin coating means any coating that incorporates 
bitumens as a principal component and is formulated primarily to be 
applied to a substrate or surface to resist ultraviolet radiation and/
or water.
    Certify means, in reference to the volatile organic compounds (VOC) 
content or volatile organic hazardous air pollutants (VOHAP) content of 
a coating, to attest to the VOC content as determined through analysis 
by Method 24 of appendix A to 40 CFR part 60 or through use of forms 
and procedures outlined in appendix A of this subpart, or to attest to 
the VOHAP content as determined through an Administrator-approved test 
method. In the case of conflicting results, Method 24 of Appendix A to 
40 CFR part 60 shall take precedence over the forms and procedures 
outlined in appendix A to this subpart for the options in which VOC is 
used as a surrogate for VOHAP.
    Coating means any material that can be applied as a thin layer to a 
substrate and which cures to form a continuous solid film.
    Cold-weather time period means any time during which the ambient 
temperature is below 4.5 deg.C (40 deg.F) and coating is to be applied.
    Container of coating means the container from which the coating is 
applied, including but not limited to a bucket or pot.
    Cure volatiles means reaction products which are emitted during the 
chemical reaction which takes place in some coating films at the cure 
temperature. These emissions are other than those from the solvents in 
the coating and may, in some cases, comprise a significant portion of 
total VOC and/or VOHAP emissions.
    Epoxy means any thermoset coating formed by reaction of an epoxy 
resin (i.e., a resin containing a reactive epoxide with a curing 
agent).
    Exempt compounds means specified organic compounds that are not 
considered VOC due to negligible photochemical reactivity. Exempt 
compounds are specified in 40 CFR 51.100(s).
    Facility means all contiguous or adjoining property that is under 
common ownership or control, including properties that are separated 
only by a road or other public right-of-way.
    General use coating means any coating that is not a specialty 
coating.
    Hazardous air pollutants (HAP) means any air pollutant listed in or 
pursuant to section 112(b) of the CAA.
    Heat resistant specialty coating means any coating that during 
normal use must withstand a temperature of at least 204 deg.C 
(400 deg.F).
    High-gloss specialty coating means any coating that achieves at 
least 85 percent reflectance on a 60 degree meter when tested by ASTM 
Method D523 (incorporation by reference--see Sec. 63.14).
    High-temperature specialty coating means any coating that during 
normal use must withstand a temperature of at least 426 deg.C 
(800 deg.F).
    Inorganic zinc (high-build) specialty coating means a coating that 
contains 960 grams per liter (8 pounds per gallon) or more elemental 
zinc incorporated into an inorganic silicate binder that is applied to 
steel to provide galvanic corrosion resistance. (These coatings are 
typically applied at more than 2 mil dry film thickness.)
    Major source means any source that emits or has the potential to 
emit, in the aggregate, 9.1 megagrams per year (10 tons per year) or 
more of any HAP or 22.7 megagrams per year (25 tons per year) or more 
of any combination of HAP.
    Maximum allowable thinning ratio means the maximum volume of 
thinner that can be added per volume of coating without violating the 
standards of Sec. 63.783(a), as determined using Equation 1 of this 
subpart.
    Military exterior specialty coating or Chemical Agent Resistant 
Coatings (``CARC'') means any exterior topcoat applied to military or 
U.S. Coast Guard vessels that are subject to specific chemical, 
biological, and radiological washdown requirements.
    Mist specialty coating means any low viscosity, thin film, epoxy 
coating applied to an inorganic zinc primer that penetrates the porous 
zinc primer and allows the occluded air to escape through the paint 
film prior to curing.
    Navigational aids specialty coating means any coating applied to 
Coast Guard buoys or other Coast Guard waterway markers when they are 
recoated aboard ship at their usage site and immediately returned to 
the water.
    Nonskid specialty coating means any coating applied to the 
horizontal surfaces of a marine vessel for the specific purpose of 
providing slip resistance for personnel, vehicles, or aircraft. 

[[Page 64338]]

    Nonvolatiles (or volume solids) means substances that do not 
evaporate readily. This term refers to the film-forming material of a 
coating.
    Normally closed means a container or piping system is closed unless 
an operator is actively engaged in adding or removing material.
    Nuclear specialty coating means any protective coating used to seal 
porous surfaces such as steel (or concrete) that otherwise would be 
subject to intrusion by radioactive materials. These coatings must be 
resistant to long-term (service life) cumulative radiation exposure 
(ASTM D4082-89 [incorporation by reference--see Sec. 63.14]), 
relatively easy to decontaminate (ASTM D4256-89 [reapproved 1994] 
[incorporation by reference--see Sec. 63.14]), and resistant to various 
chemicals to which the coatings are likely to be exposed (ASTM D3912-80 
[incorporation by reference--see Sec. 63.14]). [For nuclear coatings, 
see the general protective requirements outlined by the U.S. Nuclear 
Regulatory Commission in a report entitled ``U.S. Atomic Energy 
Commission Regulatory Guide 1.54'' dated June 1973, available through 
the Government Printing Office at (202) 512-2249 as document number 
A74062-00001.]
    Operating parameter value means a minimum or maximum value 
established for a control device or process parameter that, if achieved 
by itself or in combination with one or more other operating parameter 
values, determines that an owner or operator has complied with an 
applicable emission limitation or standard.
    Organic zinc specialty coating means any coating derived from zinc 
dust incorporated into an organic binder that contains more than 960 
grams of elemental zinc per liter (8 pounds per gallon) of coating, as 
applied, and that is used for the expressed purpose of corrosion 
protection.
    Pleasure craft means any marine or fresh-water vessel used by 
individuals for noncommercial, nonmilitary, and recreational purposes 
that is less than 20 meters in length. A vessel rented exclusively to 
or chartered by individuals for such purposes shall be considered a 
pleasure craft.
    Pretreatment wash primer specialty coating means any coating that 
contains a minimum of 0.5 percent acid, by mass, and is applied only to 
bare metal to etch the surface and enhance adhesion of subsequent 
coatings.
    Repair and maintenance of thermoplastic coating of commercial 
vessels (specialty coating) means any vinyl, chlorinated rubber, or 
bituminous resin coating that is applied over the same type of existing 
coating to perform the partial recoating of any in-use commercial 
vessel. (This definition does not include coal tar epoxy coatings, 
which are considered ``general use'' coatings.)
    Rubber camouflage specialty coating means any specially formulated 
epoxy coating used as a camouflage topcoat for exterior submarine hulls 
and sonar domes. Sealant for thermal spray aluminum means any epoxy 
coating applied to thermal spray aluminum surfaces at a maximum 
thickness of 1 dry mil.
    Ship means any marine or fresh-water vessel used for military or 
commercial operations, including self-propelled vessels, those 
propelled by other craft (barges), and navigational aids (buoys). This 
definition includes, but is not limited to, all military and Coast 
Guard vessels, commercial cargo and passenger (cruise) ships, ferries, 
barges, tankers, container ships, patrol and pilot boats, and dredges. 
For purposes of this subpart, pleasure crafts and offshore oil and gas 
drilling platforms are not considered ships.
    Shipbuilding and ship repair operations means any building, repair, 
repainting, converting, or alteration of ships.
    Special marking specialty coating means any coating that is used 
for safety or identification applications, such as markings on flight 
decks and ships' numbers.
    Specialty coating means any coating that is manufactured and used 
for one of the specialized applications described within this list of 
definitions.
    Specialty interior coating means any coating used on interior 
surfaces aboard U.S. military vessels pursuant to a coating 
specification that requires the coating to meet specified fire 
retardant and low toxicity requirements, in addition to the other 
applicable military physical and performance requirements.
    Tack specialty coating means any thin film epoxy coating applied at 
a maximum thickness of 2 dry mils to prepare an epoxy coating that has 
dried beyond the time limit specified by the manufacturer for the 
application of the next coat.
    Thinner means a liquid that is used to reduce the viscosity of a 
coating and that evaporates before or during the cure of a film.
    Thinning ratio means the volumetric ratio of thinner to coating, as 
supplied.
    Thinning solvent: see Thinner.
    Undersea weapons systems specialty coating means any coating 
applied to any component of a weapons system intended to be launched or 
fired from under the sea.
    Volatile organic compounds (VOC) is as defined in Sec. 51.100(s) of 
this chapter.
    Volatile organic hazardous air pollutants (VOHAP) means any 
compound listed in or pursuant to section 112(b) of the CAA that 
contains carbon, excluding metallic carbides and carbonates. This 
definition includes VOC listed as HAP and exempt compounds listed as 
HAP.
    Weld-through preconstruction primer (specialty coating) means a 
coating that provides corrosion protection for steel during inventory, 
is typically applied at less than 1 mil dry film thickness, does not 
require removal prior to welding, is temperature resistant (burn back 
from a weld is less than 1.25 centimeters [0.5 inch]), and does not 
normally require removal before applying film-building coatings, 
including inorganic zinc high-build coatings. When constructing new 
vessels, there may be a need to remove areas of weld-through 
preconstruction primer due to surface damage or contamination prior to 
application of film-building coatings.


Sec. 63.783  Standards.

    (a) No owner or operator of any existing or new affected source 
shall cause or allow the application of any coating to a ship with an 
as-applied VOHAP content exceeding the applicable limit given in Table 
2 of this subpart, as determined by the procedures described in 
Sec. 63.785 (c)(1) through (c)(4). For the compliance procedures 
described in Sec. 63.785 (c)(1) through (c)(3), VOC shall be used as a 
surrogate for VOHAP, and Method 24 of Appendix A to 40 CFR part 60 
shall be used as the definitive measure for determining compliance. For 
the compliance procedure described in Sec. 63.785(c)(4), an alternative 
test method capable of measuring independent VOHAP shall be used to 
determine compliance. The method must be submitted to and approved by 
the Administrator.
    (b) Each owner or operator of a new or existing affected source 
shall ensure that:
    (1) All handling and transfer of VOHAP-containing materials to and 
from containers, tanks, vats, drums, and piping systems is conducted in 
a manner that minimizes spills.
    (2) All containers, tanks, vats, drums, and piping systems are free 
of cracks, holes, and other defects and remain closed unless materials 
are being added to or removed from them.
    (c) Approval of alternative means of limiting emissions. (1) The 
owner or operator of an affected source may apply to the Administrator 
for permission to use an alternative means (such as an 

[[Page 64339]]
add-on control system) of limiting emissions from coating operations. 
The application must include:
    (i) An engineering material balance evaluation that provides a 
comparison of the emissions that would be achieved using the 
alternative means to those that would result from using coatings that 
comply with the limits in Table 2 of this subpart, or the results from 
an emission test that accurately measures the capture efficiency and 
control device efficiency achieved by the control system and the 
composition of the associated coatings so that the emissions comparison 
can be made;
    (ii) A proposed monitoring protocol that includes operating 
parameter values to be monitored for compliance and an explanation of 
how the operating parameter values will be established through a 
performance test; and
    (iii) Details of appropriate recordkeeping and reporting 
procedures.
    (2) The Administrator shall approve the alternative means of 
limiting emissions if, in the Administrator's judgment, postcontrol 
emissions of VOHAP per volume applied solids will be no greater than 
those from the use of coatings that comply with the limits in Table 2 
of this subpart.
    (3) The Administrator may condition approval on operation, 
maintenance, and monitoring requirements to ensure that emissions from 
the source are no greater than those that would otherwise result from 
this subpart. Sec. 63.784 Compliance dates.
    (a) Each owner or operator of an existing affected source shall 
comply within 1 year after the effective date of this subpart.
    (b) Each owner or operator of an existing unaffected area source 
that increases its emissions of (or its potential to emit) HAP such 
that the source becomes a major source that is subject to this subpart 
shall comply within 1 year after the date of becoming a major source.
    (c) Each owner or operator of a new or reconstructed source shall 
comply with this subpart according to the schedule in Sec. 63.6(b).


Sec. 63.785  Compliance procedures.

    (a) For each batch of coating that is received by an affected 
source, the owner or operator shall (see Figure 1 of this section for a 
flow diagram of the compliance procedures):
    (1) Determine the coating category and the applicable VOHAP limit 
as specified in Sec. 63.783(a).
    (2) Certify the as-supplied VOC content of the batch of coating. 
The owner or operator may use a certification supplied by the 
manufacturer for the batch, although the owner or operator retains 
liability should subsequent testing reveal a violation. If the owner or 
operator performs the certification testing, only one of the containers 
in which the batch of coating was received is required to be tested.
    (b)(1) In lieu of testing each batch of coating, as applied, the 
owner or operator may determine compliance with the VOHAP limits using 
any combination of the procedures described in paragraphs (c)(1), 
(c)(2), (c)(3), and (c)(4) of this section. The procedure used for each 
coating shall be determined and documented prior to application.
    (2) The results of any compliance demonstration conducted by the 
affected source or any regulatory agency using Method 24 shall take 
precedence over the results using the procedures in paragraphs (c)(1), 
(c)(2), or (c)(3) of this section.
    (3) The results of any compliance demonstration conducted by the 
affected source or any regulatory agency using an approved test method 
to determine VOHAP content shall take precedence over the results using 
the procedures in paragraph (c)(4) of this section.
    (c)(1) Coatings to which thinning solvent will not be added. For 
coatings to which thinning solvent (or any other material) will not be 
added under any circumstance or to which only water is added, the owner 
or operator of an affected source shall comply as follows:
    (i) Certify the as-applied VOC content of each batch of coating.
    (ii) Notify the persons responsible for applying the coating that 
no thinning solvent may be added to the coating by affixing a label to 
each container of coating in the batch or through another means 
described in the implementation plan required in Sec. 63.787(b).
    (iii) If the certified as-applied VOC content of each batch of 
coating used during a calendar month is less than or equal to the 
applicable VOHAP limit in Sec. 63.783(a) (either in terms of g/L of 
coating or g/L of solids), then compliance is demonstrated for that 
calendar month, unless a violation is revealed using Method 24 of 
Appendix A to 40 CFR part 60.
    (2) Coatings to which thinning solvent will be added--coating-by-
coating compliance. For a coating to which thinning solvent is 
routinely or sometimes added, the owner or operator shall comply as 
follows:
    (i) Prior to the first application of each batch, designate a 
single thinner for the coating and calculate the maximum allowable 
thinning ratio (or ratios, if the affected source complies with the 
cold-weather limits in addition to the other limits specified in Table 
2 of this subpart) for each batch as follows:


where:

R=Maximum allowable thinning ratio for a given batch (L thinner/L 
coating as supplied);
Vs=Volume fraction of solids in the batch as supplied (L solids/L 
coating as supplied);
VOHAP limit=Maximum allowable as-applied VOHAP content of the coating 
(g VOHAP/L solids);
mVOC=VOC content of the batch as supplied [g VOC (including cure 
volatiles and exempt compounds on the HAP list)/L coating (including 
water and exempt compounds) as supplied];
Dth=Density of the thinner (g/L).

    If Vs is not supplied directly by the coating manufacturer, 
the owner or operator shall determine Vs as follows:


where:

mvolatiles=Total volatiles in the batch, including VOC, water, and 
exempt compounds (g/L coating); and
Davg=Average density of volatiles in the batch (g/L).

    The procedures specified in Sec. 63.786(d) may be used to determine 
the values of variables defined in this paragraph. In addition, the 
owner or operator may choose to construct nomographs, based on Equation 
1 of this subpart, similar or identical to the one provided in appendix 
B of this subpart as a means of easily estimating the maximum allowable 
thinning ratio.
    (ii) Prior to the first application of each batch, notify painters 
and other persons, as necessary, of the designated thinner and maximum 
allowable thinning ratio(s) for each batch of the coating by affixing a 
label to each container of coating or through another means described 
in the implementation plan required in Sec. 63.787(b).
    (iii) By the 15th day of each calendar month, determine the volume 
of each batch of the coating used, as supplied, during the previous 
month.
    (iv) By the 15th day of each calendar month, determine the total 
allowable volume of thinner for the coating used during the previous 
month as follows:

[[Page 64340]]



where:

Vth=Total allowable volume of thinner for the previous month (L 
thinner);
Vb=Volume of each batch, as supplied and before being thinned, 
used during non-cold-weather days of the previous month (L coating as 
supplied);
Rcold=Maximum allowable thinning ratio for each batch used during 
cold-weather days (L thinner/L coating as supplied);
Vb-cold=Volume of each batch, as supplied and before being 
thinned, used during cold-weather days of the previous month (L coating 
as supplied);
i=Each batch of coating; and
n=Total number of batches of the coating.
    (v) By the 15th day of each calendar month, determine the volume of 
thinner actually used with the coating during the previous month.
    (vi) If the volume of thinner actually used with the coating 
[paragraph (c)(3)(v) of this section] is less than or equal to the 
total allowable volume of thinner for the coating [paragraph (c)(3)(iv) 
of this section], then compliance is demonstrated for the coating for 
the previous month, unless a violation is revealed using Method 24 of 
Appendix A to 40 CFR part 60.
    (3) Coatings to which the same thinning solvent will be added--
group compliance. For coatings to which the same thinning solvent (or 
other material) is routinely or sometimes added, the owner or operator 
shall comply as follows:
    (i) Designate a single thinner to be added to each coating during 
the month and ``group'' coatings according to their designated thinner.
    (ii) Prior to the first application of each batch, calculate the 
maximum allowable thinning ratio (or ratios, if the affected source 
complies with the cold-weather limits in addition to the other limits 
specified in Table 2 of this subpart) for each batch of coating in the 
group using the equations in paragraph (c)(2) of this section.
    (iii) Prior to the first application of each ``batch,'' notify 
painters and other persons, as necessary, of the designated thinner and 
maximum allowable thinning ratio(s) for each batch in the group by 
affixing a label to each container of coating or through another means 
described in the implementation plan required in Sec. 63.787(b).
    (iv) By the 15th day of each calendar month, determine the volume 
of each batch of the group used, as supplied, during the previous 
month.
    (v) By the 15th day of each calendar month, determine the total 
allowable volume of thinner for the group for the previous month using 
Equation 3 of this subpart.
    (vi) By the 15th day of each calendar month, determine the volume 
of thinner actually used with the group during the previous month.
    (vii) If the volume of thinner actually used with the group 
[paragraph (c)(3)(vi) of this section] is less than or equal to the 
total allowable volume of thinner for the group [paragraph (c)(3)(v) of 
this section], then compliance is demonstrated for the group for the 
previous month, unless a violation is revealed using Method 24 of 
Appendix A to 40 CFR part 60.
    (4) Demonstration of compliance through an alternative (i.e., other 
than Method 24 of Appendix A to 40 CFR part 60) test method. The owner 
or operator shall comply as follows:
    (i) Certify the as-supplied VOHAP content (g VOHAP/L solids) of 
each batch of coating.
    (ii) If no thinning solvent will be added to the coating, the owner 
or operator of an affected source shall follow the procedure described 
in Sec. 63.785(c)(1), except that VOHAP content shall be used in lieu 
of VOC content.
    (iii) If thinning solvent will be added to the coating, the owner 
or operator of an affected source shall follow the procedure described 
in Sec. 63.785(c)(2) or (3), except that in Equation 1 of this subpart: 
the term ``mVOC'' shall be replaced by the term ``mVOHAP,'' 
defined as the VOHAP content of the coating as supplied (g VOHAP/L 
coating) and the term ``Dth'' shall be replaced by the term 
``Dth(VOHAP)'' defined as the average density of the VOHAP 
thinner(s) (g/L).
    (d) A violation revealed through any approved test method shall 
result in a 1-day violation for enforcement purposes. A violation 
revealed through the recordkeeping procedures described in paragraphs 
(c)(1) through (c)(4) of this section shall result in a 30-day 
violation for enforcement purposes, unless the owner or operator 
provides sufficient data to demonstrate the specific days during which 
noncompliant coatings were applied.

BILLING CODE 6560-50-P

[[Page 64341]]




BILLING CODE 6560-50-C

[[Page 64342]]



Sec. 63.786  Test methods and procedures.

    (a) For the compliance procedures described in Sec. 63.785(c) (1) 
through (c)(3), Method 24 of 40 CFR part 60, appendix A, is the 
definitive method for determining the VOC content of coatings, as 
supplied or as applied. When a coating or thinner contains exempt 
compounds that are volatile HAP or VOHAP, the owner or operator shall 
ensure, when determining the VOC content of a coating, that the mass of 
these exempt compounds is included.
    (b) For the compliance procedure described in Sec. 63.785(c)(4), 
the Administrator must approve the test method for determining the 
VOHAP content of coatings and thinners. As part of the approval, the 
test method must meet the specified accuracy limits indicated below for 
sensitivity, duplicates, repeatability, and reproducibility coefficient 
of variation each determined at the 95 percent confidence limit. Each 
percentage value below is the corresponding coefficient of variation 
multiplied by 2.8 as in the ASTM Method E180-93: Standard Practice for 
Determining the Precision of ASTM Methods for Analysis and Testing of 
Industrial Chemicals (incorporation by reference--see Sec. 63.14).
    (1) Sensitivity. The overall sensitivity must be sufficient to 
identify and calculate at least one mass percent of the compounds of 
interest based on the original sample. The sensitivity is defined as 
ten times the noise level as specified in ASTM Method D3257-93: 
Standard Test Methods for Aromatics in Mineral Spirits by Gas 
Chromatography (incorporation by reference--see Sec. 63.14). In 
determining the sensitivity, the level of sample dilution must be 
factored in.
    (2) Repeatability. First, at the 0.1-5 percent analyte range the 
results would be suspect if duplicates vary by more than 6 percent 
relative and/or day to day variation of mean duplicates by the same 
analyst exceeds 10 percent relative. Second, at greater than 5 percent 
analyte range the results would be suspect if duplicates vary by more 
than 5 percent relative and/or day to day variation of duplicates by 
the same analyst exceeds 5 percent relative.
    (3) Reproducibility. First, at the 0.1-5 percent analyte range the 
results would be suspect if lab to lab variation exceeds 60 percent 
relative. Second, at greater than 5 percent range the results would be 
suspect if lab to lab variation exceeds 20 percent relative.
    (4) Any test method should include information on the apparatus, 
reagents and materials, analytical procedure, procedure for 
identification and confirmation of the volatile species in the mixture 
being analyzed, precision and bias, and other details to be reported. 
The reporting should also include information on quality assurance (QA) 
auditing.
    (5) Multiple and different analytical techniques must be used for 
positive identification if the components in a mixture under analysis 
are not known. In such cases a single column gas chromatograph (GC) may 
not be adequate. A combination of equipment may be needed such as a GC/
mass spectrometer or GC/infrared system. (If a GC method is used, the 
operator must use practices in ASTM Method E260-91: Standard Practice 
for Gas Chromatography [incorporation by reference--see Sec. 63.14].)
    (c) A coating manufacturer or the owner or operator of an affected 
source may use batch formulation data as a test method in lieu of 
Method 24 of Appendix A to 40 CFR part 60 to certify the as-supplied 
VOC content of a coating if the manufacturer or the owner or operator 
has determined that batch formulation data have a consistent and 
quantitatively known relationship to Method 24 results. This 
determination shall consider the role of cure volatiles, which may 
cause emissions to exceed an amount based solely upon coating 
formulation data. Notwithstanding such determination, in the event of 
conflicting results, Method 24 of appendix A of 40 CFR part 60 shall 
take precedence.
    (d) Each owner or operator of an affected source shall use or 
ensure that the manufacturer uses the form and procedures mentioned in 
appendix A of this subpart to determine values for the thinner and 
coating parameters used in Equations 1 and 2 of this subpart. The owner 
or operator shall ensure that the coating/thinner manufacturer (or 
supplier) provides information on the VOC and VOHAP contents of the 
coatings/thinners and the procedure(s) used to determine these values.


Sec. 63.787  Notification requirements.

    (a) Each owner or operator of an affected source shall comply with 
all applicable notification requirements in Sec. 63.9(a) through (d) 
and (i) through (j), with the exception that the deadline specified in 
Sec. 63.9(b) (2) and (3) shall be extended from 120 days to 180 days. 
Any owner or operator that receives approval pursuant to Sec. 63.783(c) 
to use an add-on control system to control coating emissions shall 
comply with the applicable requirements of Sec. 63.9(e) through (h).
    (b) Implementation plan. The provisions of Sec. 63.9(a) apply to 
the requirements of this paragraph.
    (1) Each owner or operator of an affected source shall:
    (i) Prepare a written implementation plan that addresses each of 
the subject areas specified in paragraph (b)(3) of this section; and
    (ii) Not later than 180 days after the effective date of this 
subpart, submit the implementation plan to the Administrator for 
approval along with the notification required by Sec. 63.9(b) (2) or 
(5), as applicable.
    (2) The Administrator may require revisions to the initial plan 
where the Administrator finds that the plan does not adequately address 
each subject area listed in paragraph (b)(3) of this section or that 
the requirements in the plan are unclear.
    (3) Implementation plan contents. Each implementation plan shall 
address the following subject areas:
    (i) Coating compliance procedures. The implementation plan shall 
include the compliance procedure(s) under Sec. 63.785(c) that the 
source intends to use.
    (ii) Recordkeeping procedures. The implementation plan shall 
include the procedures for maintaining the records required under 
Sec. 63.788, including the procedures for gathering the necessary data 
and making the necessary calculations.
    (iii) Transfer, handling, and storage procedures. The 
implementation plan shall include the procedures for ensuring 
compliance with Sec. 63.783(b).
    (4) Major sources that intend to become area sources by the 
compliance date. Existing major sources that intend to become area 
sources by the compliance date December 16, 1996 may choose to submit, 
in lieu of the implementation plan required under paragraph (b)(1) of 
this section, a statement that, by the compliance date, the major 
source intends to obtain and comply with federally enforceable limits 
on their potential to emit which make the facility an area source. 
Sec. 63.788 Recordkeeping and reporting requirements.
    (a) Each owner or operator of an affected source shall comply with 
the applicable recordkeeping and reporting requirements in Sec. 63.10 
(a), (b), (d), and (f). Any owner that receives approval pursuant to 
Sec. 63.783(c) to use an add-on control system to control coating 
emissions shall also comply with the applicable requirements of 
Sec. 63.10 (c) and (e). A summary of recordkeeping and reporting 
requirements is provided in Table 3 of this subpart.

[[Page 64343]]

    (b) Recordkeeping requirements. (1) Each owner or operator of an 
unaffected major source, as described in Sec. 63.781(b), shall record 
the total volume of coating applied at the source to ships. Such 
records shall be compiled monthly and maintained for a minimum of 5 
years.
    (2) Each owner or operator of an affected source shall compile 
records on a monthly basis and maintain those records for a minimum of 
5 years. At a minimum, these records shall include:
    (i) All documentation supporting initial notification;
    (ii) A copy of the affected source's approved implementation plan;
    (iii) The volume of each low-usage-exempt coating applied;
    (iv) Identification of the coatings used, their appropriate coating 
categories, and the applicable VOHAP limit;
    (v) Certification of the as-supplied VOC content of each batch of 
coating;
    (vi) A determination of whether containers meet the standards as 
described in Sec. 63.783(b)(2); and
    (vii) The results of any Method 24 of appendix A to 40 CFR part 60 
or approved VOHAP measurement test conducted on individual containers 
of coating, as applied.
    (3) The records required by paragraph (b)(2) of this section shall 
include additional information, as determined by the compliance 
procedure(s) described in Sec. 63.785(c) that each affected source 
followed:
    (i) Coatings to which thinning solvent will not be added. The 
records maintained by facilities demonstrating compliance using the 
procedure described in Sec. 63.785(c)(1) shall contain the following 
information:
    (A) Certification of the as-applied VOC content of each batch of 
coating; and
    (B) The volume of each coating applied.
    (ii) Coatings to which thinning solvent will be added--coating-by-
coating compliance. The records maintained by facilities demonstrating 
compliance using the procedure described in Sec. 63.785(c)(2) shall 
contain the following information:
    (A) The density and mass fraction of water and exempt compounds of 
each thinner and the volume fraction of solids (nonvolatiles) in each 
batch, including any calculations;
    (B) The maximum allowable thinning ratio (or ratios, if the 
affected source complies with the cold-weather limits in addition to 
the other limits specified in Table 2 of this subpart for each batch of 
coating, including calculations;
    (C) If an affected source chooses to comply with the cold-weather 
limits, the dates and times during which the ambient temperature at the 
affected source was below 4.5 deg.C (40 deg.F) at the time the coating 
was applied and the volume used of each batch of the coating, as 
supplied, during these dates;
    (D) The volume used of each batch of the coating, as supplied;
    (E) The total allowable volume of thinner for each coating, 
including calculations; and
    (F) The actual volume of thinner used for each coating.
    (iii) Coatings to which the same thinning solvent will be added--
group compliance. The records maintained by facilities demonstrating 
compliance using the procedure described in Sec. 63.785(c)(3) shall 
contain the following information:
    (A) The density and mass fraction of water and exempt compounds of 
each thinner and the volume fraction of solids in each batch, including 
any calculations;
    (B) The maximum allowable thinning ratio (or ratios, if the 
affected source complies with the cold-weather limits in addition to 
the other limits specified in Table 2 of this subpart) for each batch 
of coating, including calculations;
    (C) If an affected source chooses to comply with the cold-weather 
limits, the dates and times during which the ambient temperature at the 
affected source was below 4.5 deg.C (40 deg.F) at the time the coating 
was applied and the volume used of each batch in the group, as 
supplied, during these dates;
    (D) Identification of each group of coatings and their designated 
thinners;
    (E) The volume used of each batch of coating in the group, as 
supplied;
    (F) The total allowable volume of thinner for the group, including 
calculations; and
    (G) The actual volume of thinner used for the group.
    (iv) Demonstration of compliance through an alternative (i.e., non-
Method 24 in appendix A to 40 CFR part 60) test method. The records 
maintained by facilities demonstrating compliance using the procedure 
described in Sec. 63.785(c)(4) shall contain the following information:
    (A) Identification of the Administrator-approved VOHAP test method 
or certification procedure;
    (B) For coatings to which the affected source does not add thinning 
solvents, the source shall record the certification of the as-supplied 
and as-applied VOHAP content of each batch and the volume of each 
coating applied;
    (C) For coatings to which the affected source adds thinning solvent 
on a coating-by-coating basis, the source shall record all of the 
information required to be recorded by paragraph (b)(3)(ii) of this 
section; and
    (D) For coatings to which the affected source adds thinning solvent 
on a group basis, the source shall record all of the information 
required to be recorded by paragraph (b)(3)(iii) of this section.
    (4) If the owner or operator of an affected source detects a 
violation of the standards specified in Sec. 63.783, the owner or 
operator shall, for the remainder of the reporting period during which 
the violation(s) occurred, include the following information in his or 
her records:
    (i) A summary of the number and duration of deviations during the 
reporting period, classified by reason, including known causes for 
which a Federally-approved or promulgated exemption from an emission 
limitation or standard may apply.
    (ii) Identification of the data availability achieved during the 
reporting period, including a summary of the number and total duration 
of incidents that the monitoring protocol failed to perform in 
accordance with the design of the protocol or produced data that did 
not meet minimum data accuracy and precision requirements, classified 
by reason.
    (iii) Identification of the compliance status as of the last day of 
the reporting period and whether compliance was continuous or 
intermittent during the reporting period.
    (iv) If, pursuant to paragraph (b)(4)(iii) of this section, the 
owner or operator identifies any deviation as resulting from a known 
cause for which no Federally-approved or promulgated exemption from an 
emission limitation or standard applies, the monitoring report shall 
also include all records that the source is required to maintain that 
pertain to the periods during which such deviation occurred and:
    (A) The magnitude of each deviation;
    (B) The reason for each deviation;
    (C) A description of the corrective action taken for each 
deviation, including action taken to minimize each deviation and action 
taken to prevent recurrence; and
    (D) All quality assurance activities performed on any element of 
the monitoring protocol.
    (c) Reporting requirements. Before the 60th day following 
completion of each 6-month period after the compliance date specified 
in Sec. 63.784, each owner or operator of an affected source shall 
submit a report to the Administrator for each of the previous 6 months. 
The report shall include all of the information that must be retained 
pursuant to paragraphs (b) (2) through (3) of this section, except for 
that 

[[Page 64344]]
information specified in paragraphs (b)(2) (i) through (ii), (b)(2)(v), 
(b)(3)(i)(A), (b)(3)(ii)(A), and (b)(3)(iii)(A). If a violation at an 
affected source is detected, the source shall also report the 
information specified in paragraph (b)(4) of this section for the 
reporting period during which the violation(s) occurred. To the extent 
possible, the report shall be organized according to the compliance 
procedure(s) followed each month by the affected source.

                Table 1 To Subpart II of Part 63--General Provisions Applicability to Subpart II                
----------------------------------------------------------------------------------------------------------------
              Reference                 Applies to subpart II                       Comment                     
----------------------------------------------------------------------------------------------------------------
63.1(a)(1)-(3).......................  Yes...................  .................................................
63.1(a)(4)...........................  Yes...................  Subpart II clarifies the applicability of each   
                                                                paragraph in subpart A to sources subject to    
                                                                subpart II.                                     
63.1(a)(5)-(7).......................  Yes...................                                                   
63.1(a)(8)...........................  No....................  Discusses State programs.                        
63.1(a)(9)-(14)......................  Yes...................                                                   
63.1(b)(1)...........................  Yes...................  Sec.  63.781 specifies applicability in more     
                                                                detail.                                         
63.1(b)(2)-(3).......................  Yes...................                                                   
63.1(c)-(e)..........................  Yes...................                                                   
63.2.................................  Yes...................  Additional terms are defined in Sec.  63.782;    
                                                                when overlap between subparts A and II occurs,  
                                                                subpart II takes precedence.                    
63.3.................................  Yes...................  Other units used in subpart II are defined in    
                                                                that subpart.                                   
63.4.................................  Yes...................                                                   
63.5(a)-(c)..........................  Yes...................                                                   
63.5(d)..............................  Yes...................  Except information on control devices and control
                                                                efficiencies should not be included in the      
                                                                application unless an add-on control system is  
                                                                or will be used to comply with subpart II in    
                                                                accordance with Sec.  63.783(c).                
63.5(e)-(f)..........................  Yes...................                                                   
63.6(a)-(b)..........................  Yes...................                                                   
63.6(c)-(d)..........................  Yes...................  Except Sec.  63.784(a) specifies the compliance  
                                                                date for existing affected sources.             
63.6(e)-(f)..........................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c), then these paragraphs do apply.      
63.6(g)..............................  No....................  Sec.  63.783(c) specifies procedures for         
                                                                application and approval of alternative means of
                                                                limiting emissions.                             
63.6(h)..............................  No....................  Subpart II does not contain any opacity or       
                                                                visible emission standards.                     
63.6(i)-(j)..........................  Yes...................                                                   
63.7.................................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c), then this section does apply.        
63.8.................................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c), then this section does apply.        
63.9(a)-(d)..........................  Yes...................  Sec.  63.787(a) extends the initial notification 
                                                                deadline to 180 days. Sec.  63.787(b) requires  
                                                                an implementation plan to be submitted with the 
                                                                initial notification.                           
63.9(e)..............................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c), then this paragraph does apply.      
63.9(f)..............................  No....................  Subpart II does not contain any opacity or       
                                                                visible emission standards                      
63.9(g)-(h)..........................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c) then these paragraphs do apply.       
63.9(i)-(j)..........................  Yes...................                                                   
63.10(a)-(b).........................  Yes...................  Sec.  63.788(b)-(c) list additional recordkeeping
                                                                and reporting requirements.                     
63.10(c).............................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c), then this paragraph does apply.      
63.10(d).............................  Yes...................                                                   
63.10(e).............................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c), then this paragraph does apply.      
63.10(f).............................  Yes...................                                                   
63.11................................  No....................  If an alternative means of limiting emissions    
                                                                (e.g., an add-on control system) is used to     
                                                                comply with subpart II in accordance with Sec.  
                                                                63.783(c), then this section does apply.        
63.12-63.15..........................  Yes...................                                                   
----------------------------------------------------------------------------------------------------------------


 Table 2 to Subpart II of Part 63.--Volatile Organic HAP (VOHAP) Limits 
                           for Marine Coatings                          
------------------------------------------------------------------------
                                             VOHAP limits a b c         
                                  --------------------------------------
                                   Grams/liter    Grams/liter solids d  
                                     coating   -------------------------
         Coating category             (minus                            
                                    water and    t  4.5      deg. C e 
                                    compounds)     deg. C               
------------------------------------------------------------------------
General use......................          340          571          728
Specialty:                                                              
  Air flask......................          340          571          728
  Antenna........................          530        1,439             
  Antifoulant....................          400          765          971
  Heat resistant.................          420          841        1,069
  High-gloss.....................          420          841        1,069
  High-temperature...............          500        1,237       1,597 

[[Page 64345]]
                                                                        
  Inorganic zinc high-build......          340          571          728
  Military exterior..............          340          571          728
  Mist...........................          610        2,235             
  Navigational aids..............          550        1,597             
  Nonskid........................          340          571          728
  Nuclear........................          420          841        1,069
  Organic zinc...................          360          630          802
  Pretreatment wash primer.......          780       11,095             
  Repair and maint. of                                                  
   thermoplastics................          550        1,597             
  Rubber camouflage..............          340          571          728
  Sealant for thermal spray                                             
   aluminum......................          610        2,235             
  Special marking................          490        1,178             
  Specialty interior.............          340          571          728
  Tack coat......................          610        2,235             
  Undersea weapons systems.......          340          571          728
  Weld-through precon. primer....          650        2,885             
------------------------------------------------------------------------
a The limits are expressed in two sets of equivalent units. Either set  
  of limits may be used for the compliance procedure described in Sec.  
  63.785(c)(1), but only the limits expressed in units of g/L solids    
  (nonvolatiles) shall be used for the compliance procedures described  
  Sec.  63.785(c) (2) through (4).                                      
b VOC (including exempt compounds listed as HAP) shall be used as a     
  surrogate for VOHAP for those compliance procedures described in Sec. 
  63.785(c) (1) through (3).                                            
c To convert from g/L to lb/gal, multiply by (3.785 L/gal)(1/453.6 lb/g)
  or 1/120. For compliance purposes, metric units define the standards. 
d VOHAP limits expressed in units of mass of VOHAP per volume of solids 
  were derived from the VOHAP limits expressed in units of mass of VOHAP
  per volume of coating assuming the coatings contain no water or exempt
  compounds and that the volumes of all components within a coating are 
  additive.                                                             
e These limits apply during cold-weather time periods, as defined in    
  Sec.  63.782. Cold-weather allowances are not given to coatings in    
  categories that permit over a 40 percent VOHAP content by volume. Such
  coatings are subject to the same limits regardless of weather         
  conditions.                                                           



          Table 3 to Subpart II of Part 63.--Summary of Recordkeeping and Reporting Requirements a b c          
----------------------------------------------------------------------------------------------------------------
                                                     All Opts.       Option 1        Option 2        Option 3   
                   Requirement                   ---------------------------------------------------------------
                                                    Rec     Rep     Rec     Rep     Rec     Rep     Rec     Rep 
----------------------------------------------------------------------------------------------------------------
Notification (Sec.  63.9(a)-(d))................      X       X                                                 
Implementation plan (Sec.  63.787(b)) d.........      X       X                                                 
Volume of coating applied at unaffected major                                                                   
 sources (Sec.  63.781(b))......................      X                                                         
Volume of each low-usage-exempt coating applied                                                                 
 at affected sources (Sec.  63.781(c))..........      X       X                                                 
ID of the coatings used, their appropriate                                                                      
 coating categories, and the applicable VOHAP                                                                   
 limit..........................................      X       X                                                 
Determination of whether containers meet the                                                                    
 standards described in Sec.  63.783(b)(2)......      X       X                                                 
Results of M-24 or other approved tests.........      X       X                                                 
Certification of the as-supplied VOC content of                                                                 
 each batch.....................................      X                                                         
Certification of the as-applied VOC content of                                                                  
 each batch.....................................                      X                                         
Volume of each coating applied..................                      X       X                                 
Density of each thinner and volume fraction of                                                                  
 solids in each batch...........................                                      X       X                 
Maximum allowable thinning ratio(s) for each                                                                    
 batch..........................................                                      X       X       X       X 
Volume used of each batch, as supplied..........                                      X       X       X       X 
Total allowable volume of thinner...............                                      X       X       X       X 
Actual volume of thinner used...................                                      X       X       X       X 
Identification of each group of coatings and                                                                    
 designated thinners............................                                                      X       X 
----------------------------------------------------------------------------------------------------------------
a Affected sources that comply with the cold-weather limits must record and report additional information, as   
  specified in Sec.  63.788(b)(3) (ii)(C), (iii)(C), and (iv)(D).                                               
b Affected sources that detect a violation must record and report additional information, as specified in Sec.  
  63.788(b)(4).                                                                                                 
c OPTION 4: the recordkeeping and reporting requirements of Option 4 are identical to those of Options 1, 2, or 
  3, depending on whether and how thinners are used. However, when using Option 4, the term ``VOHAP'' shall be  
  used in lieu of the term ``VOC,'' and the owner or operator shall record and report the Administrator-approved
  VOHAP test method or certification procedure.                                                                 
d Major sources that intend to become area sources by the compliance date may, in lieu of submitting an         
  implementation plan, choose to submit a statement of intent as specified in Sec.  63.787(b)(4).               


[[Page 64346]]


Appendix A to Subpart II of Part 63--VOC Data Sheet \1\

Properties of the Coating ``As Supplied'' by the Manufacturer \2\

Coating Manufacturer:--------------------------------------------------

    * Incorporation by reference--see Sec. 63.14.
    \1\ Adapted from EPA-340/1-86-016 (July 1986), p. II-2.
    \2\ The subscript ``s'' denotes each value is for the coating 
``as supplied'' by the manufacturer.
---------------------------------------------------------------------------

Coating Identification:------------------------------------------------
Batch Identification:--------------------------------------------------
Supplied To:-----------------------------------------------------------

    Properties of the coating as supplied \1\ to the customer:

A. Coating Density: (Dc)s ____ g/L
    [  ] ASTM D1475-90 *  [  ] Other \3\

    \3\ Explain the other method used under ``Remarks.''
---------------------------------------------------------------------------

B. Total Volatiles: (mv)s ____ Mass Percent
    [  ] ASTM D2369-93 * [  ] Other \3\
C. Water Content: 1. (mw)s ____ Mass Percent
    [  ] ASTM D3792-91 *  [  ] ASTM D4017-90 *  [  ] Other \3\
    2. (vw)s ____ Volume Percent
    [  ] Calculated  [  ] Other \3\
D. Organic Volatiles: (mo)s ____ Mass Percent
E. Nonvolatiles: (vn)s ____ Volume Percent
    [  ] Calculated  [  ] Other \3\
F. VOC Content (VOC)s:
    1. ____ g/L solids (nonvolatiles)
    2. ____ g/L coating (less water and exempt compounds)
G. Thinner Density: Dth ____ g/L
    ASTM ____ [  ] Other \3\

Remarks: (use reverse side)

    Signed: ______________ Date: ____

BILLING CODE 6560-50-P

[[Page 64347]]




[FR Doc. 95-29748 Filed 12-14-95; 8:45 am]
BILLING CODE 6560-50-C