BILL ANALYSIS �
SB 1127
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2011-2012 Regular Session
BILL NO: SB 1127
AUTHOR: Vargas
AMENDED: As Introduced
FISCAL: Yes HEARING DATE: April 16, 2012
URGENCY: No CONSULTANT: Peter Cowan
SUBJECT : VOLATILE ORGANIC COMPOUNDS
SUMMARY :
Existing law :
1) Under the federal Clean Air Act states must develop State
Implementation Plans (SIPs) outlining how each state will
control air pollution.
2) Requires the California Air Resources Board (ARB) to adopt
regulations to achieve the maximum feasible reduction in
volatile organic compounds (VOCs) emitted by consumer
products. "Consumer product" is defined as a chemically
formulated product used by household and institutional
consumers, including, but not limited to, detergents;
cleaning compounds; polishes; floor finishes; cosmetics;
personal care products; home, lawn, and garden products;
disinfectants; sanitizers; aerosol paints; and automotive
specialty products; but does not include other paint
products, furniture coatings, or architectural coatings.
(Health and Safety Code �41712).
3) Provides that air pollution control districts (APCDs) and
air quality management districts (AQMDs) have primary
responsibility for controlling air pollution from all
sources, other than emissions from mobile sources, and
establishes certain powers, duties, and requirements for
those districts. (�40000 et seq.).
4) Creates certain AQMDs, with related authority, including
the South Coast Air Quality Management District (SCAQMD)
under the Lewis-Presley Air Quality Management Act. SCAQMD
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covers portions of Los Angeles, Orange, Riverside, and San
Bernardino counties within the South Coast Air Basin.
Under this authority SCAQMD adopted Rule 1144 to reduce VOC
emissions from industrial sources. (�40400 et seq.).
5) Requires SCAQMD to develop an air quality management plan
and adopt rules and regulations that carry out the plan and
are not in conflict with state law and federal laws and
rules and regulations. (��40460 and 40440).
6) Prohibits APCDs and AQMDs from adopting regulations
pertaining to a consumer product that is different than any
regulation adopted by the state board for that purpose.
(�41712 ).
This bill requires SCAQMD to amend SCAQMD Rule 1144 to exempt
consumer products regulated by ARB (pursuant to #2 above) from
the rule.
COMMENTS :
1) Purpose of Bill . According to the author "SB 1127 seeks to
eliminate regulatory overlap �SCAQMD] of specific consumer
products that are already 100 percent regulated by the
California Air Resources Board to 'maximum, feasible'
amount. There is confusion with regulatory language
between the two authorities and this bill offers
clarification of authority."
2) SCAQMD Rule 1144 . The purpose of SCAQMD Rule 1144 is to
reduce VOC emissions from industrial sources, it was
adopted by SCAQMD in March 2009 (and amended July 2010).
Reactions between oxides of nitrogen and VOCs are the
primary contributor to ozone pollution. The industrial use
rule limits the maximum amount of VOC allowed in
metalworking fluids and direct contact lubricants used at
industrial facilities. The industrial use rule also
applies to VOC containing fluids used for metal protection,
such as rust inhibitors. The rule does not apply to repair,
maintenance or research uses. The rule implements a
specified control measure in SCAQMD's 2007 air quality
management plan and is estimated to result in 3.6 tons per
day of VOC emissions reductions.
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SCAQMD Rule 1144 prohibits the sale of non-compliant fluids
and lubricants, makes various recordkeeping requirements
and establishes a new test method, developed in
collaboration with industry groups, for determining VOC
content.
Consumer products subject to ARB consumer product
regulation are exempt from the sales prohibition and were
exempt from VOC limits until 2011 after which industrial
users may only use compliant fluids and lubricants.
3) ARB Consumer Products vs Industrial Use Regulation . Under
ARB regulation consumer products (as defined in Existing
Law #2 above) must reduce VOC content to specified levels,
determined product category. Multi-purpose lubricants must
reduce VOCs to 50%, 25% and 10% by January 1, 2003,
December 31, 2013 and December 31, 2015 respectively.
ARB regulation defines "industrial use" as "use for or in a
manufacturing, mining, or chemical process or use in the
operation of factories, processing plants, and similar
sites." (Title 17, California Code of Regulations �94507
et seq.).
According to an ARB advisory (number 307, 2002) it is the
specific use of a product that determines whether it is
considered a consumer product, and thus regulated by ARB,
or an industrial use, and thus not regulated by ARB as a
consumer product. Sales of a product for manufacturing uses
are not required to be reported to ARB, with limited
exceptions. However, all sales for consumer or
institutional use, for example the sale of window cleaner
to a school, must comply with specified ARB VOC limits.
However, the sale of another glass cleaner to a window
factory that is used only to clean windows as part of the
assembly or manufacturing process is not subject to ARB
consumer product limits, even if it bears the same name or
branding as a product sold to consumers.
4) State Implementation Plan . Under the federal Clean Air
Act, the Environmental Protection Agency (EPA) establishes
national ambient air quality standards for certain air
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pollutants, including setting limits on how much can be in
the air anywhere in the United States. SIPs are a
collection of the regulations, programs and policies that a
state will use to reduce pollution. SIPs also include
special control strategies for areas not meeting national
ambient air quality standards.
SCAQMD Rule 1144 inclusion in the California SIP was
approved July 2010 (amended November 2011). It is unclear
what impact SB 1127 would have on the SIP. Currently SCAQMD
and industry agree that products also sold as consumer
products make up a small proportion of the industrial
market. However, if SB 1127 becomes law, it is possible
that exempted products could see more widespread use. Or
conversely suppliers that currently operate entirely in the
industrial market could attempt to have their products
classified as consumer products allowing them to have
higher VOC content and reducing the effectiveness of SCAQMD
Rule 1144 and potential SIP compliance.
5) Support : Supporters note that "WD-40 has consistently met,
or exceeded, the ARB's VOC goals." They also contend that
"statewide regulation of consumer products achieves
uniformity �and] consistency?"
According to supporters "?Rule 1144 was intended to cover
large, industrial bulk vats, tanks and drums of product
?�and] violates the spirit of the law that prevents a
product from being regulated by both the state and an
individual district? two sets of regulation for one brand
in one market are unworkable?"
Supporters are concerned SCAQMD "Rule 1144 created
confusion over the acceptable uses of WD-40 ? leaving
businesses potentially liable if WD-40 is used
'incorrectly.'" Supporters "are satisfied that WD-40 is
fully regulated by �ARB] and SCAQMD has created a dual
regulation on the use of WD-40?"
According to WD-40 "It is our opinion that WD-40 was an
unintended consequence of Rule 1144. All evidence
indicates that emissions from WD-40 were not included in
SCAQMD's emission inventory for the �SIP] which includes
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emissions reductions reported to the Federal Government.
Therefore, if WD-40 is exempted from Rule 1144 SCAQMD will
not have to amend their SIP or reduce emissions elsewhere."
6) Opposition : According to opponents, SB 1127 "? would
frustrate the �Rule 1144's] air quality goals and could
create severe competitive inequities for suppliers of these
fluids in the South Coast Basin, who already have taken
significant steps at some expense to comply?".
According to SCAQMD "Rule 1144, and its resulting emissions
reductions, were included in the California State
Implementation Plan (SIP)? The rule's inclusion in the SIP
was approved by �ARB] and the U.S. EPA. Undoing this
industry supported rule would likely result in litigation
both from environmental groups ?and from business groups to
stop unfair treatment being given to one company over all
others."
According to industry representatives, their compliance
with SCAQMD Rule 1144 had been "achieved by hundreds of
hours and many thousands of dollars invested in laboratory
testing, reformulating and field testing." They express
concern that "If WD-40 were to receive a full exemption for
its products under Rule 1144, then the company would have
unfettered ability to sell its non-compliant products for
use in parts manufacturing and assembly in the South Coast
Basin."
SOURCE : WD-40 Company
SUPPORT : California Chamber of Commerce, National
Federation of Independent Business, Shield
Packaging of California
OPPOSITION : California Air Pollution Control Officers
Association, Independent Lubricant
Manufacturers Association, South Coast Air
Quality Management District, W.S. Dodge Oil
Company
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