Surface Coating Facilities A Guide for Obtaining Air Authorization in Texas

TCEQ REGULATORY GUIDANCE Small Business and Environmental Assistance Division RG-404 ● February 2011

T E XA S C O MMIS SI O N O N EN V I RO N ME N TA L Q UA LI TY • P O BO X 1 3 0 8 7 • A U ST I N, T X 7 8 7 1 1 – 3 0 8 7 T h e T C E Q i s a n e q u a l o p p o r t u n i t y e m p l o y e r . T h e a g e n c y d o e s n o t a l l o w d i s c r i m i n a t i o n o n t h e b a s i s o f r a c e , c o l o r , r e l i g i o n , n a t i o n a l o r i g i n , s e x , d i s a b i l i t y , a g e , s e x u a l o r i e n t a t i o n , o r v e t e r a n s t a t u s . I n c o m p l i a n c e w i t h t h e A m e r i c a n s w i t h D i s a b i l i t i e s A c t , t h i s d o c u m e n t m a y b e r e q u e s t e d i n a l t e r n a t e f o r m a t s b y c o n t a c t i n g t h e T C E Q a t 5 1 2 – 2 3 9 – 0 0 2 8 , f a x 5 1 2 – 2 3 9 – 4 4 8 8 , o r 1 – 8 0 0 – R E L A Y – T X ( T D D ) , o r b y w r i t i n g P O B o x 1 3 0 8 7 , A u s t i n T X 7 8 7 1 1 – 3 0 8 7 . W e a u t h o r i z e y o u t o u s e o r r e p r o d u c e a n y o r i g i n a l m a t e r i a l c o n t a i n e d i n t h i s p u b l i c a t i o n — t h a t i s , a n y m a t e r i a l w e d i d n o t o b t a i n f r o m o t h e r s o u r c e s . P l e a s e a c k n o w l e d g e t h e T C E Q a s y o u r s o u r c e . P r i n t e d o n r e c y c l e d p a p e r .

Surface Coating Facilities A Guide for Obtaining Air Authorization in Texas

Contents Introduction …………………………………………………………………………………………………………………………………… 2

Which Air Authorization Applies to You? ………………………………………………………………………………….. 2 De Minimis ……………………………………………………………………………………………………………………………………… 2 Permit by Rule …………………………………………………………………………………………………………………………………. 3 New Source Review Permit………………………………………………………………………………………………………………… 7 Title V Federal Operating Permit……………………………………………………………………………………………………….. 7

Other Requirements ……………………………………………………………………………………………………………………… 8 General Air Quality Rules (30 TAC 101) …………………………………………………………………………………………….. 8 Nonattainment and Near-Nonattainment Areas (30 TAC 115) ……………………………………………………………….. 9 New Source Performance Standards (40 CFR, Part 60) ………………………………………………………………………. 10 National Emission Standards for Hazardous Air Pollutants (40 CFR, Part 63) ………………………………………. 10

Common Air Violations for Surface Coaters ……………………………………………………………………………. 11

For More Information …………………………………………………………………………………………………………………. 11

Appendix A: Common Permits by Rule for Surface Coating Facilities …………………………………. 12

Appendix B: Surface Coating Permit by Rule (30 TAC 106.433) ………………………………………….. 13

Appendix C: Volatile Organic Compound (VOC) and Exempt Solvent Content per Gallon of Coating ………………………………………………………………………………………………………………………………………….. 16

Appendix D: Calculating Maximum Hourly and Annual Emission Rates …………………………….. 20

Appendix E: Emission Rate Averaged Over a Five-Hour Period …………………………………………… 24

Appendix F: Potential to Emit ……………………………………………………………………………………………………. 25

Appendix G: Calculation of Booth or Work-Area and Filter and Face Velocities ……………….. 26

Appendix H: VOC Content Minus Water and Exempt Solvents …………………………………………….. 30

Appendix I: Calculations for Emissions of Products of Combustion from Heaters and Ovens ………………………………………………………………………………………………………………………………………………………… 33

Appendix J: Examples of Acceptable Stack Designs ……………………………………………………………….. 35

Appendix K: Compliance Worksheet ………………………………………………………………………………………… 36

TCEQ publication RG-404 Surface Coating Facilities: A Guide for Obtaining Air Authorization in Texas

2 Revised March 2011

Introduction This document is tailored to the surface coating industry, excluding auto body shops, and contains general information about air regulations. Surface coaters prepare and coat (paint) items that may be made out of metal, wood, plastic, porcelain, or any of several other materials. Processes associated with cleaning and coating emit air contaminants. As part of its role in protecting public health and the environment, the Texas Commission on Environmental Quality (TCEQ) requires you to get proper air authorization for these emissions. Under the law, you are required to obtain authorization before you build, modify, or begin operations at your facility.

Even if your site is already in operation, you still need an air authorization. You should begin steps to obtain authorization as soon as you become aware that this regulation applies to you. For more information on how to proceed if you find yourself in this situation, call the Small Business and Local Government Assistance (SBLGA) program at 800-447-2827 for confidential assistance. You can also contact the Air Permits Division at 512-239-1250 for technical assistance.

Which Air Authorization Applies to You? The type of authorization you qualify for will depend on the materials and chemicals you use, the processes that you conduct, and the amount of air contaminants your facility creates. In Texas, you have three options for obtaining authorization to emit air contaminants from your surface coating facility. You must either

• qualify for de minimis status, or • obtain authorization through a

 permit by rule (PBR), or  New Source Review (NSR) permit.

In addition, you may be required to obtain coverage under a Title V Federal Operating Permit if your emissions exceed certain levels. Ultimately, you must decide which type of authorization applies to your business and if it needs to meet any other requirements to comply with state and federal laws.

De Minimis

De minimis sites emit very small amounts of air contaminants. If your site qualifies as de minimis, you do not need to register with the TCEQ. However, you do need to keep records to prove that you meet the de minimis requirements. Even if your site is de minimis, you may have to comply with other state and federal regulations—see “Other Requirements,” on page 8. The rules that explain the de minimis criteria appear at 30 Texas Administrative Code (TAC) Chapter 116, Subchapter B, Division 1, Section 116.119.

There are several ways that you can meet the de minimis criteria. To find out whether you can claim de minimis status:

• Check the De Minimis Facilities or Sources List [30 TAC 116.119(a)(1)].

TCEQ publication RG-404 Surface Coating Facilities: A Guide for Obtaining Air Authorization in Texas

Revised March 2011 3

Any facility on the De Minimis Facilities or Sources List is considered de minimis by the TCEQ. This list is available online at <www.tceq.texas.gov/goto/de_minimis>.

• Check the Materials and Usage List [30 TAC 116.119(a)(2)(A–F)]. If the total, site-wide use per year of the following materials is below the thresholds listed, the site is considered de minimis:

• cleaning and stripping solvents, 50 gallons per year • coatings (excluding plating materials), 100 gallons per year • dyes, 1,000 pounds per year • bleaches, 1,000 gallons per year • fragrances (excluding odorants), 250 gallons per year • water-based surfactants and detergents, 2,500 gallons per year.

• Review Your Emission Rates and Check the Effects Screening level (ESL) List or Ask for a Case-by-Case Review. There are two additional ways that you can claim de minimis status. You can review the ESL list and emission rate caps [30 TAC 116.119(a)(3)] or ask for a case-by-case review [30 TAC 116.119(a)(4)]. For more information on these options, contact the Air Permits Division at 512-239-1250.

De minimis sites cannot be in violation of any TCEQ rule, permit, order, or statute. If a business is found to be in violation, it will no longer be considered de minimis and must obtain authorization through a PBR or an NSR permit.

Permit by Rule

Many surface coaters obtain authorization by qualifying for a PBR. PBRs have specific, non-negotiable conditions that your business must meet. PBRs are approved more quickly than NSR permits and less documentation is required for approval. It is important that you keep accurate records and documents to verify that you continually meet the conditions of your PBR.

In addition, more than one PBR may apply to your site. For example, you might sandblast an object and then paint it. You would need to obtain authorization under the PBRs both for dry abrasive cleaning and for surface coating. You can find more on surface preparation at the SBLGA’s website, <www.TexasEnviroHelp.org>.

Review 30 TAC Chapter 106 to find all appropriate PBRs that may be applicable to your site. The most common PBRs for surface coating facilities are listed in Appendix A.

Who Can Register Under a PBR?

General Requirements (30 TAC 106.4)

Facilities that are sources of air contaminants may claim a PBR as long as they can meet the general requirements and emission limits in 30 TAC Chapter 106, Subchapter A, Section 106.4 and meet the specific requirements for the PBR that they are claiming. You will need to calculate your air emissions to determine if you meet the conditions

TCEQ publication RG-404 Surface Coating Facilities: A Guide for Obtaining Air Authorization in Texas

4 Revised March 2011

of a PBR. If you need help with these calculations, review Appendixes C through E. If you use heaters or ovens at your facility, you can reference Appendix I for help determining the emissions from those activities. You can also use the compliance worksheet in Appendix K to help you gather all of the information you will need to get started.

The general air emission limits, explained in 30 TAC Chapter 106, Subchapter A, Section 106.4, are:

• No more than 25 tons per year (sitewide) of: • volatile organic compounds (VOCs), • sulfur dioxide (SO2), • particulate matter (PM10) that is small enough to be inhaled, or • any other air contaminant (including exempt solvents)—except carbon

dioxide, water, nitrogen, methane, ethane, hydrogen, and oxygen. • No more than 250 tons per year (sitewide) of:

• carbon monoxide (CO), or • nitrogen oxides (NOx).

Overview of Requirements for Surface Coating Facilities (30 TAC 106.433)

The PBR for surface coating facilities, found in 30 TAC Chapter 106, Subchapter S, Section 106.433, has more stringent emission limits and requirements than the general requirements in 30 TAC Chapter 106, Subchapter A, Section 106.4. It is important to note that this PBR covers the use of coatings that contain metal pigments, but does not cover the application of molten metals.

The facility must maintain good housekeeping practices, clean up spills promptly, use exhaust fans when in operation, and properly store and dispose of new and used coatings and solvents. If you use ovens to dry or cure paint at your facility, you must either use an electric oven or ensure that the maximum heat input does not exceed 40 million British thermal units per hour. The rule also specifies the appropriate type of fuel that may be used for these ovens.

The specific air emission limits for surface coating operations performed indoors, in a booth, or in an enclosed work area, as explained in 30 TAC 106.433(6), are no more than:

• 6 pounds of VOCs per hour, averaged over a five-hour period (see Appendix E for help with this calculation), and

• 500 pounds of VOCs per week per booth or enclosed work area.

• You must ensure that your VOC emissions do not exceed 13 tons of VOCs per year per booth or enclosed work area. This value comes from the following equation:

500 𝑙𝑏 𝑉𝑂𝐶 𝑤𝑒𝑒𝑘

× 52 𝑤𝑒𝑒𝑘𝑠

𝑦𝑒𝑎𝑟 ×

1 𝑡𝑜𝑛 2,000 𝑙𝑏

= 13 𝑡𝑜𝑛𝑠 𝑉𝑂𝐶

𝑦𝑒𝑎𝑟

In addition to the emission limits, enclosed operations must ensure that:

TCEQ publication RG-404 Surface Coating Facilities: A Guide for Obtaining Air Authorization in Texas

Revised March 2011 5

• all exhaust stacks extend at least 1.5 times the building height above the ground. (See Appendix J for more on stack design.)

• there is a minimum face velocity of 100 feet per minute (ft/min) at the intake opening of each booth or work area,

• the filter velocity does not exceed 250 ft/min. (See Appendix G for face velocity and filter velocity calculation.)

• the emissions of particulate matter from spraying operations are controlled by either a wash-water system or a dry filter system with a 95 percent removal efficiency.

Surface coating operations performed outdoors or in a non-enclosed work area must comply with the same VOC emission limits as enclosed operations (6 lb/hr and 500 lb/week). The VOC limits may be more stringent if the operation sprays coatings with metallic pigments containing chromates, lead, cadmium, selenium, strontium, or cobalt. Review 30 TAC 106.433(7)(B) if this applies to your business. Outdoor spray operations must also ensure that:

• all coating operations are conducted at least 50 feet from the property line and 250 feet from the nearest off-property structure, and that

• the TCEQ has given written site approval before construction.

The site-wide limits from coating and cleanup solvents, explained in 30 TAC 106.433(4), apply to both indoor and outdoor operations. All facilities must ensure that their site-wide emissions are no more than:

• 25 tons per year of VOC and 10 tons per year of exempt solvents, and

• 30 pounds per hour of VOC and 5.0 pounds per hour of exempt solvents.

Exempt solvents, such as acetone and methylene chloride, are defined as those carbon compounds or mixtures of carbon compounds used as solvents that have been excluded from the definition of VOC. The definition of VOC can be found in 40 CFR, Part 51.100.

This is an overview of the rule requirements. You must thoroughly review the PBR, 30 TAC 106.433, to make certain that you understand and comply with all of the emission limits, record-keeping responsibilities, and notification requirements. We have included a copy of the rule in Appendix B for your convenience. If you begin approaching the limits in the PBR, contact the Air Permits Division at 512-239-1250 to discuss your permitting options.

How Do I Obtain Coverage Under a PBR?

Some of the PBRs, including 30 TAC 106.433, require you to register with the TCEQ, while others require no registration. Registration requirements are specified in the rule. If any PBR requires registration, follow these general procedures:

1. Make sure your facility meets the general requirements for claiming the PBRs found in 30 TAC Chapter 106, Subchapter A, Section 106.4. You can complete the PBR Applicability Quick Checklist, Form TCEQ-10150 to help you determine if you

TCEQ publication RG-404 Surface Coating Facilities: A Guide for Obtaining Air Authorization in Texas

6 Revised March 2011

meet the requirements. The appendixes to this publication will help you with the calculations you will need to complete in order to determine compliance.

2. Make sure your facility meets the conditions of any PBR you intend to claim. Be sure to read the PBR(s) in 30 TAC Chapter 106 before you make this determination. If registration checklists are available for the PBRs you are claiming, it is recommended that you use the checklists to demonstrate compliance with the rule. See Appendix A for registration checklist form numbers.

3. Complete Form TCEQ-10228, “Registration for Permits by Rule (PI-7),” or Form TCEQ-20182, “Certification and Registration for Permits by Rule (PI-7-CERT).”

Should I use a PI-7 or a PI-7-CERT?

The PI-7 and PI-7-CERT forms request administrative and technical information needed by the Air Permits Division to evaluate PBR claims. The PI-7-CERT form also establishes federally enforceable emission limits for individual pollutants. Use caution when setting the emission limit, as the facility may not exceed that limit. If changes occur at a site and the emission limit needs to be updated, you must submit Form TCEQ-10489 (APD-CERT).

An example of a beneficial use of the PI-7-CERT form would be when the potential to emit (PTE) at a facility exceeds major-source thresholds, but the actual emissions from the facility are below the major-source thresholds. The emission limit established under a PI-7-CERT form would allow the site to be considered a “synthetic minor” and would not require a Title V federal operating permit. You can find additional information regarding PTE in Appendix F.

4. Submit the following items for review with your registration form:

• Distance information. Include the distance from the facility’s emission release point to the nearest property line and off-property structure.

• A process flow diagram or process description. Include a step-by-step description of what you do with each material that comes into your business and how the final product moves out the door.

• Emissions data and calculations. Include emission rates for each air contaminant and supporting calculations.

• Equipment specifications. Filter efficiencies, spray-gun specifications and literature, and gun-washer and booth specifications.

• Usage rates of coatings and solvents in gallons per hour and gallons per year.

• Operation schedules. Hours of operation.

• Material Safety Data Sheets. Identify the chemicals used specifically at your site and supply MSDS, technical data sheets, environmental sheets, air quality data sheets, or equivalent supporting documents for all mixtures that contain potential air contaminants.

This information will help permit reviewers understand how your business operates and will help them verify that the emission calculations are correct and that the applicable rules are met.

TCEQ publication RG-404 Surface Coating Facilities: A Guide for Obtaining Air Authorization in Texas

Revised March 2011 7

5. Pay a registration fee and submit your proof of payment with your registration form. See Form TCEQ-10228 (PI-7) or TCEQ-20182 (PI-7-CERT) to determine the specific fee amount.

Note: You do not need to submit a separate form or pay a separate fee for each PBR. You can apply for multiple PBRs using only one form and paying one fee.

6. Complete Form TCEQ-10400, the TCEQ Core Data Form. If you are a new customer of the TCEQ and have not been issued a regulated-entity number (RN) and customer reference number (CN), you will need to complete this form. If you are an existing customer and have made changes to your customer or site information, you will need to submit an updated form.

Check all applicable PBRs to determine if site approval is required before you begin construction. If no PBR requires site approval from the TCEQ, you may begin construction (or the activity) once the TCEQ has received your application and supporting documentation. However, if any PBR requires written site approval from the TCEQ, do not begin construction until you receive approval in writing. The PBR specific to surface coating, 30 TAC 106.433, requires written site approval from the TCEQ.

New Source Review Permit

If your business cannot qualify for de minimis or a PBR you must obtain an NSR permit. An NSR permit has a more complex application process that is beyond the scope of this document. It is best to contact the Air Permits Division at 512-239-1250 and ask to speak to a coating-permit engineer who can help you determine how to proceed with obtaining proper authorization. Generally, in order to obtain an NSR permit, you will be required to:

• submit the most current version of Form TCEQ-10252 (PI-1), • pay a fee of at least $900 fee, and • submit additional information about your specific facility. You will also have to publish two public notices in a prominent newspaper and post signs (often in more than one language). A public hearing may also be required in order to determine whether you should receive a permit.

Once your application is approved and you have received your permit, you may begin to modify or construct your facility. If you have questions about permitting, or have already started construction without authorization, please call SBLGA at 800-447- 2827.

Title V Federal Operating Permit

Any business classified as a “major source” of air contaminants must obtain a Title V federal operating permit, in addition to a PBR or NSR permit, and comply with additional regulations. A site can be considered major because of the amount of different types of emissions, such as VOCs, NOx, or hazardous air pollutants (HAPs).

In general, sites are considered to be major sources of air contaminants if they have the potential to emit 10 tons per year of a single HAP or 25 tons per year of any

TCEQ publication RG-404 Surface Coating Facilities: A Guide for Obtaining Air Authorization in Texas

8 Revised March 2011

combination of HAPs. EPA maintains an up-to-date list of HAPs at <www.epa.gov/ttn/atw/orig189.html>.

Additionally, facilities that are located in attainment counties and have the potential to emit 100 tons per year or more of any other contaminant (including VOCs) are considered “major sources.”

Facilities that are located in near-nonattainment and nonattainment counties have lower thresholds for certain air contaminants. This information can be found in 30 TAC Chapter 122, Subchapter A, Section 122.10. To determine the attainment status for the county in which you operate, visit <www.tceq.texas.gov/goto/attainment>.

You can find additional information on potential to emit in Appendix F. If you believe that your facility is a major source of air contaminants, you should contact the Air Permits Division at 512-239-1250 to set up a meeting to discuss your permitting options.

Other Requirements

General Air Quality Rules (30 TAC 101)

Nuisance Emissions

No facility in Texas may create “nuisance” emissions “that adversely affect human health or welfare, animal life, vegetation, or the normal use and enjoyment of property” (30 TAC Chapter 101, Subchapter A, Section 101.4). Nuisance conditions often associated with surface coating include odor and paint overspray.

Emissions Inventory

You may have to send the TCEQ an annual air emissions report, called an “emissions inventory,” detailing the actual annual emissions of air pollutants released at your site if:

• your business is a “major source” of air emissions or • it is located in a nonattainment area and emits 10 tons per year or more of VOCs.

These reports help track and plan the state’s progress in reducing air pollution. Emissions Inventory reporting requirements