October 15, 1993







MEMORANDUM

SUBJECT:  Guidance for State Rules for Optional Federally-
          Enforceable Emissions Limits Based on Volatile
          Organic Compound (VOC) Use

FROM:     D. Kent Berry, Acting Director
          Air Quality Management Division, OAQPS  (MD-15)

TO:       Air Division Director, Regions I-X


     The 1990 Amendments to the Clean Air Act (Act), including
the title V operating permits program, have made source status as
a "major" stationary source of considerably greater relevance to
air quality programs.  The lower major source thresholds now
included in the Act have made an unprecedented number of sources
"major."  Many of these sources are actually emitting air
pollutants in amounts less than the major thresholds but are
major on the basis of their potential to emit.  Certain
categories of these sources are comprised of sources that are in
fact rather small and, in some cases, are not addressed in detail
by State air quality programs.  Examples include auto body shops,
dry cleaners, printers, and surface coaters.

     Many of these sources will seek federally-enforceable limits
in their potential to emit so as to avoid the obligation to
obtain a title V operating permit.  The Environmental Protection
Agency (EPA), State air agencies, and industry are all interested
in creating these emissions limits in the most efficient manner
consistent with having reasonable assurance that these are in
fact enforceable and being complied with.  There are a variety of
approaches available for creating federally-enforceable emissions
limits.  While the creation of federally-enforceable emissions
limits generally requires a source-specific evaluation created
through an approved State permitting program, EPA recognizes
that, for certain types of sources or emissions, the limits can
be created through more streamlined processes that do not involve
detailed review or public process for each individual source.
                                     2

     Probably the greatest need for such limits involves those
sources, such as auto body shops and surface coaters, that would
be major on the basis of use of raw materials containing VOC's.  
To aid States in developing generic enforceable emissions limits
for such sources, we have developed technical guidance materials
that States can use in creating such requirements.  States
seeking to use these approaches may submit appropriate
regulations as State implementation plan revisions or, in the
case of toxics, as section 112(l) plan provisions.  The technical
guidance materials, along with draft forms that States may use in
implementing this process are attached to this memorandum. 
States may, of course, opt to develop their own approaches for
creating such documents.  The attached language and forms are
provided as technical support to States and to provide an
indication of what sorts of practices EPA considers approvable. 
Alternate approaches will be considered on their individual
merits.

     For further information about this guidance, please contact
Kirt Cox at (919) 541-5399 or Eric Noble at (919) 541-5362.  To
discuss individual State regulatory provisions and issues, please
contact your Regional Office title V permits program contact. 
Any questions on practical enforceability should be brought
to the attention of Sally Mitoff at (703) 308-8692 or Clara
Poffenburger at (703) 308-8709.  The EPA is considering further
options for use of these streamlined procedures with other
pollutants and is interested in working with States in developing
such approaches.  Suggestions are invited and may by made by
calling Mr. Cox or Mr. Noble.

Attachments

cc:  Air Branch Chief, Regions I-X
     Operating Permits Program Contact, Regions I-X
     Regional Counsel, Regions I-X
     Division Directors, OAQPS
     A. Schwartz, OGC
     E. Hoerath, OE

bcc: T. Helms, AQMD
     K. Berry
     E. Lillis
     K. Cox
     E. Noble
     A. High

OAQPS:AQMD:PPB:OPPS:K.Cox/C.Bradsher(541-5399/MU)10/15/93.
File = A:\VOCRULE.3
Attachment 1 [EAN 2, b:VOCrule.8A, 10/18/93]


                      CRITERIA FOR A DRAFT MODEL RULE
                  FOR VOLATILE ORGANIC COMPOUNDS (VOC'S)
                 AND HAZARDOUS AIR POLLUTANT (HAP) SOURCES


PURPOSE:  To provide a federally-enforceable mechanism by which
certain sources emitting VOC's may certify that they are not
major sources of those pollutants in a manner that can be
recognized as federally enforceable.  For the purpose of this
guidance, "VOC" also encompasses HAP's as defined pursuant to
section 112 of the Clean Air Act (Act) that are VOC's (including
those that are not photochemically reactive).

APPLICABILITY:  This approach is available to sources which opt
to assume limitations on the quantities of materials used in
their production processes which contain VOC's.  It does not
apply to VOC's that are produced as part of the manufacturing
processes.  That is, this approach applies limits on emissions
resulting from the use of VOC-containing materials.  To that end,
all the VOC's and HAP's present in the source materials, such as
paints and solvents, are assumed to be emitted to the atmosphere
(VOC in equals VOC out).  Because this rule relies on simple
calculation procedures based on recordkeeping, sources seeking
recognition of emissions limits based on the use of emissions
control devices, which require more complex determinations, would
not be able to take advantage of this approach.  This approach
would not be available to sources which are subject to title V
requirements for other reasons (e.g., that have the potential to
emit other pollutants in major amounts).

     To be approvable, a State rule must require that the source
owner or operator specifically apply for coverage.  Such
applications could take the form of a relatively simple
certification of compliance with the applicability criteria and
the requirements of the rule.  An example of such a certification
that EPA would find acceptable is attached as Attachment 2.


BASIS FOR THE CRITERIA:  This approach applies to sources which
agree to limit their annual emissions.  The basis for determining
compliance is the maintenance of records with respect to the use
of VOC-containing materials and the periodic submittal of this
information to the permitting authority.  States may elect to
streamline this process further by reducing the frequency and
level of detail of this reporting for those sources accepting
limits on emissions that are very substantially below the
threshold for major source status.  As described below, EPA
suggests three different levels of reporting requirements for
sources, depending on the degree of limitation that the source
opts to take.  Individual State rules developed pursuant to this
approach should, of course, replace the threshold percentages

                                     2


listed herein with actual quantities in tons per year appropriate
to the areas subject to those rules.  For example, the threshold
for major source status for VOC's in ozone nonattainment areas
designated as "serious" is 50 tons per year.  

     1.  Sources which commit only to limiting their VOC
emissions to less than the major source threshold.

     These sources would be required to do more comprehensive
recordkeeping and reporting than those smaller sources that
accept more limited emissions caps.  The EPA suggests that these
requirements include:

     a.  Preparation of monthly consumption records of all
materials used containing VOC's.  Sources would make a separate
record for each such material.  These records would include the
VOC and/or individual HAP content of each such material on the
same form.  Table 2 of Attachment 3 provides an example of such a
form that States might find useful.

     b.  Summation of VOC and individual HAP emissions on a
monthly or more frequent basis.  Table 1 of Attachment 3 is
offered as an example form.  Such reports would be submitted to
the State agency on a monthly basis.

     c.  Submittal of an annual inventory to the reviewing agency
listing monthly VOC totals and total VOC emissions for the
previous year.

     d.  Maintenance of purchase orders and invoices of VOC-
containing materials which must be made available to the State
agency upon request for use in confirming the general accuracy of
the reports submitted pursuant to item b, above, regarding
materials usage.

     e.  Retention of purchase orders and invoices for a period
sufficient to support enforcement efforts.  

     f.  Reporting of any exceedance of a requirement of this
rule within 1 week of occurrence.

     g.  Certification of all submittals as to the truth
completeness, and accuracy of all information recorded and
reported.
                                     3


     2.  Sources which commit to limiting their VOC emissions to
25 percent of the major source threshold.

     These sources would also be required to meet all the above
requirements, except that annual reports would need to be
submitted annually, rather than monthly, for compliance with
item b.

     3.  Truly small sources which commit to limiting their VOC
emissions to 5 percent of the major source threshold.

     These sources could dramatically limit their recordkeeping
and reporting obligations.  Such sources need only report total
gallons of paints or solvents used on an annual basis.  Table 3
of Attachment 3 could serve as a standard means for sources to
maintain this tabulation and could be submitted to satisfy the
annual reporting requirement of item c above.  Such sources would
be required to meet the same general obligations regarding
purchase records and general compliance reporting obligations as
sources in the other categories (items d-g).

ADDITIONAL CRITERIA:

    A source cannot rely on these emissions caps to justify
     violation of rate-based emissions limits or other applicable
     requirements of the Act.

    A State may require additional restrictions, e.g.,
     limitations on monthly VOC use in the peak ozone formation
     season.

    The State must make a list of the sources which are subject
     to these requirements publicly available.

    All records shall be maintained at the site and available
     for inspection on demand.

    A violation of these requirements is a violation of the SIP
     or of the State's section 112 program, or both, depending on
     the particular EPA approval mechanism used.  A violation
     also subjects the source to enforcement action for failure
     to meet requirements applicable to a major stationary
     source.

     There are, of course, a variety of ways in which States may
elect to implement this concept based on their particular air
quality program needs and policy inclinations.  The above is
offered as one suggestion that states might find useful.  States
wishing to develop alternative approaches should contact their
EPA Regional Office to discuss their approvability.
Attachment 2

                            OPERATING AGREEMENT
                                   FOR A
                         SURFACE COATING OPERATION

Source Name:                                                     
Address:                                                         
Source Description:                                              
                                                                 
Emission Units:  [e.g., Paint Spray Booths]                      
Number [e.g., 3]  

Material Used Over Past 12 Months:
                  Product                   Actual Usage
                                #VOC/gal*
    Maker     Type     Number    (MSDS) gal/day gal/mo   gal/year
1)                                                               
2)                                                               
3)                                                               
4)                                                               
5)                                                               
6)                                                               

Maximum Annual Material Usage in Future:
                  Product              Maximum Predicted Usage
                                #VOC/gal*
    Maker     Type     Number    (MSDS) gal/day gal/mo   gal/year
1)                                                               
2)                                                               
3)                                                               
4)                                                               
5)                                                               
6)                                                               

  *  Sources may require this input to be in #VOC/gallon solids
     (paint or solvent less water).


CERTIFICATION:

I certify that this source will not emit volatile organic
compounds or volatile hazardous air pollutants (as defined
pursuant to section 112 of the Clean Air Act) in excess of the
amounts specified in [indicate which of the 3 size classes].  I
further certify that all information submitted pursuant to this
agreement is true, accurate, and complete.



Plant Owner/Operator                                             

                              Name (print)    Signature     Date