Draft
                                                EIS
     Automobile  and Light-Duty Truck
       Surface  Coating Operations-
Background  Information for Proposed Standards
            Emission Standards and Engineering Division
              U S. ENVIRONMENTAL PROTECTION AGENCY
               Office of Air, Noise, and Radiation
           Office of Air Quality Planning and Standards
           Research Triangle Park, North Carolina 27711

                         May 1979

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                                                Draft
                                                 EIS
     Automobile  and Light-Duty Truck
       Surface  Coating Operations -
Background  Information for Proposed Standards
            Emission Standards and Engineering Division
              U S. ENVIRONMENTAL PROTECTION AGENCY
               Office of Air, Noise, and Radiation
           Office of Air Quality Planning and Standards
           Research Triangle Park, North Carolina 27711

                        May 1979

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This report has been reviewed by the Emission Standards and
Engineering Division of the Office of Air Quality Planning and
Standards, EPA, and approved for publication.  Mention of trade
names or commercial products is not intended to constitute
endorsement or recommendation for use.   Copies of this report
are available through the Library Services Office (MD-35),
U. S. Environmental Protection Agency,  Research Triangle
Park, N. C. 27711, or from the National Technical Information
Services, 5285 Port Royal Road, Springfield, Virginia 22161.
                 PUBLICATION NO. EPA-450/3-77-020a

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                         Background Information
                                and Draft
                     Environmental Impact Statement
               for Automobile and Light-Duty Truck Surface
                           Coating Operations

                     Type of Action:  Administrative

                             Prepared by:
Don R. Goodwin                                                    (Date)
Director, Emission Standards and Engineering Division
Environmental Protection Agency
Research Triangle Park, N. C.  27711

                              Approved by:
David G. Hawkins                                                  (Date)
Assistant Administrator for Air, Noise and Radiation
Environmental Protection Agency
Washington, D. C. 20460

Draft Statement Submitted to EPA's
Office of Federal Activities for Review on                       	

                                                                  (Date)

This document may be reviewed at:

Central Docket Section
Room 2903B, Waterside Mall
Environmental Protection Agency
401 M Street, S.W.
Washington, D. C. 20460

Additional copies may be obtained at:

Environmental Protection Agency Library (MD-35)
Research Triangle Park, N. C.  27711

National Technical Information Service
5284 Port Royal Road
Springfield, Virginia  22161

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                             TABLE OF CONTENTS


Chapter                                                               Page

   1      SUMMARY	1-1

          1.1    Proposed Standards  	   1-1
          1.2    Environmental, Energy and Economic Impacts  ....   1-2
          1.3    Inflationary Impact	1-8

   2      INTRODUCTION
          2.1    Authority for the Standards	2-1
          2.2    Selection of Categories of Stationary Sources .  .  .   2-6
          2.3    Procedure for Development of Standards of
                 Performance	2-8
          2.4    Consideration of Costs	2-10
          2.5    Consideration of Environmental Impacts  	   2-12
          2.6    Impact on Existing Sources  	   2-13
          2.7    Revision of Standards of Performance  	   2-14

   3      THE AUTOMOTIVE AND LIGHT DUTY TRUCK INDUSTRY 	   3-1

          3.1    General Description 	   3-1
          3.1.1  Automotive Industry 	   3-1
          3.1.2  Truck Industry	3-8
          3.2    Processes or Facilities and Their Emissions ....   3-12
          3.2.1  The Basic Process - Automotive Industry 	   3-12
          3.2.2  The Basic Process - Light-Duty Truck Industry .  .  .   3-29

   4.     EMISSION CONTROL TECHNIQUES  	   4-1

          4.1    General	4-1
          4.2    The Alternative Emission Control Techniques ....   4-2
          4.2.1  Water-Based Coatings	4-2
          4.2.2  Electrodeposition 	   4-4
          4.2.3  Water-Based Spray 	   4-10
          4.2.4  Powder Coating	4-12
          4.2.5  Higher Solids Coatings	4-15
          4.2.6  Carbon Adsorption 	   4-18
          4.2.7  Incineration	4-22
          4.3    Emission Reduction Performance
                 of Control Techniques 	   4-32
          4.3.1  General	4-32
          4.3.2  Electrodeposition of Water-Bases	4-34
          4.3.3  Water-Based Spray 	   4-35
          4.3.4  Powder Coating-Electrostatic Spray  	   4-37
          4.3.5  Higher Solids Coatings  	   4-39
          4.3.6  Carbon Adsorption 	   4-41
          4.3.7  Incineration	4-43

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                      TABLE OF CONTENTS (Continued)


Chapter                                                               Page

   5      MODIFICATIONS AND RECONSTRUCTION 	   5-1

          5.1    Background	5-1
          5.2    Potential  Modifications 	   5-2
          5.3    Reconstruction	5-5

   6      EMISSION CONTROL SYSTEMS 	   6-1

          6.1    General	6-1
          6.2    Base Case	6-2
          6.3    Regulatory Options  	   6-2

   7      ENVIRONMENTAL IMPACT 	   7-1

          7.1    Air Pollution Impact	7-1
          7.1.1  General	7-1
          7.1.2  State Regulations and Controlled Emissions  ....   7-3
          7.1.3  Uncontrolled and Controlled Emissions (Options)  .  .   7-5
          7.1.4  Estimated Hydrocarbon Emission Reduction
                 in Future Years	7-8
          7.2    Water Pollution Impacts 	   7-10
          7.3    Solid Waste Disposal Impact 	   7-21
          7.4    Energy Impact	7-22
          7.5    Other Environmental  Impacts 	   7-31
          7.6    Other Environmental  Concerns  	   7-31
          7.6.1  Irreversible and Inretrieveable Commitment
                 of Resources	7-31
          7.6.2  Environmental Impact of Delayed Standards 	   7-32
          7.6.3  Environmental Impact of No Standards   	   7-32

   8      ECONOMIC IMPACT  	   8-1

          8.1    Industry Economic Profile 	   8-2
          8.1.1  Role of Motor Vehicle Industry
                 in the U.S.  Economy	8-2
          8.1.2  Structure of the Industry	8-3
          8.1.3  Projected Demand  	   8-21
          8.1.4  Determination of Existing Capacity  	   8-22
          8.1.5  Determination of New Sources	8-27
          8.2    Cost Analysis   	8-31
          8.2.1  Introduction	8-31
          8.2.2  Capital Cost of Control Options	8-33
          8.2.3  Annualized Cost of Control Options	8-41
          8.2.4  Cost-effectiveness of the Control  Options 	   8-58
          8.2.5  Control Cost Comparison   	8-71
          8.2.6  Base Cost of the Facility	8-72
          8.3    Other Cost Considerations	8-82
          8.4    Potential  Economic Impact 	   8-83
                                     n

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                       TABLE OF CONTENTS (Continued)
Chapter
Page
          8.4.1  Grass Roots New Lines   	8-83
          8.4.2  Control Costs   	8-83
          8.4.3  Potential Price Effect  	   8-88
          8.4.4  Sensitivity Analysis  	   8-90
          8.5    Potential Socioeconomic and
                 Inflationary Impacts  	   8-91

   9      RATIONALE	9-1

          9.1    Selection of Source and Pollutants	9-1
          9.2    Selection of Affected Facilites   	   9-3
          9.3    Selection of Best System of
                 Emission Reduction  	   9-4
          9.4    Selection of Format for the
                 Proposed Standards  	   9-20
          9.5    Selection of Numerical Emission Limits  	   9-23
          9.6    Selection of Monitoring Requirements  	   9-26
          9.7    Performance Test Methods	9-27
          9.8    Modifications and Reconstructions 	   9-27

APPENDIX  A	A-l

APPENDIX  B	B-l

APPENDIX  E	E-l
                                    m

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                              LIST OF TABLES
Table                                                                 Page

 3-1      Direct Employment in the Production of Automobiles ....  3-2
 3-2      Share of Total U.S.  Production	3-3
 3-3      Automobile Assembly Plant Production Model Year 1977 .  .   .  3-5
 3-4      Automotive Assembly Plants Model Year 1978 	  3-6
 3-5      1975 U.S. Truck and Bus Factory Sales by Body Types
          and Gross Vehicle Weight, Pounds 	  3-9
 3-6      Light-Duty Truck Assembly Plant Model Year 1975  	  3-10
 3-7      Light-Duty Truck Assembly Plant Locations
          Model Year 1978	3-11
 3-8      Estimated Light-Duty Truck Production  	  3-13
 3-9      Base Case Energy Balance for Application of
          Solvent-Based Primer to Automobiles  	  3-19
 3-10     Base Case Material Balance for Application of
          Solvent-Based Primer to Automobiles  	  3-20
 3-11     Base Case Material Balance for Application of
          Solvent-Based Enamel Topcoat to Automobiles  	  3-21
 3-12     Base Case Energy Balance for Application of
          Solvent-Based Enamel topcoat to Automobiles  	  3-23
 3-13     Average Emissions for the Automobile
          Finishing Process  	  3-27
 3-14     Average Solid Waste Generated for
          Automotive Finishing Process 	  3-28
 3-15     Base Case Material Balance for Application
          of Solvent-Based Primer to Light-Duty Trucks 	  3-31
 3-16     Base Case Energy Balance for Application
          of Solvent-Based Primer to Light-Duty Trucks 	  3-32
 3-17     Base Case Material Balance for Application
          of Solvent-Based Enamel Topcoat to Light-Duty Trucks .  .   .  3-33
 3-18     Base Case Material Balance for Application
          of Solvent-Based Enamel Topcoat to Light-Duty Trucks .  .   .  3-34
 3-19     Average Emissions for the Light-Duty Truck
          Finishing Process  	  3-36
 3-20     Average Soid Waste Generated for Light-Duty Truck
          Finishing Process  	 	  3-37
 4-1      Water-Based Coatings 	  4-3
 4-2      Theoretical Emission Reduction Potential Associated
          with Various New Coating Materials for Use as
          Automotive Body Coatings 	  4-36
 4-3      Reduction of Organic Solvent Emissions 	  4-38
 6-1      Automobile and Light-Duty Truck Coating Lines
          Emission Control Options Evaluated 	  6-4
 7-1      Automobiles Base Case - Emissions Projections  	  7-11
 7-2      Automobiles Option 1 - Emissions Projections   	  7-12
 7-3      Automobiles Option 2 - Emissions Projections   	  7-13
 7-4      Automobiles Option 3 - Emissions Projections   	  7-14
 7-5      Light-Duty Trucks Base Case - Emissions Projections  .  .   .  7-15

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                        LIST OF TABLES (Continued)
Table
Page
 7-6      Light-Duty Trucks Option 1 - Emissions Projections ....  7-16
 7-7      Light-Duty Trucks Option 2 - Emissions Projections ....  7-17
 7-8      Light-Duty Trucks Option 3 - Emissions Projections ....  7-18
 7-9      Energy Balance - Base Case Model
          and Process Modification 	  7-23
 7-10     Energy Balance -- Add-On Emission Control Systems  ....  7-24
 7-11     Energy Balance -- Base Case Model
          and Process Modifications  	  7-25
 7-12     Energy Balance -- Add-On Emission Control Systems  ....  7-26
 7-13     Energy Balance — Base Case Model
          and Model Process Modification 	  7-27
 7-14     Energy Balance — Add-On Emission Control Systems  ....  7-28
 7-15     Energy Balance ~ Base Case Model
          and Process Modification 	  7-29
 7-16     Energy Balance -- Add-On Emission Control Systems  ....  7-30
 8-1      North American Automobile Assembly Locations 	  8-7
 8-2      North American Light-Duty Truck Assembly Locations ....  8-9
 8-3      U.S. and Canadian Projected Demand for North American-
          Made Passenger Cars 1978-1983  	  8-23
 8-4      Projected U.S. and Canadian Demand for North American-
          Made Light-Duty Trucks 1978-1983 	  8-24
 8-5      Estimated Passenger Car Production Capacity
          in North America	8-25
 8-6      Estimated Light-Duty Truck Production Capacity
          in North America	8-26
 8-7      Average Solvent-Based Paint Usage for Automobile
          and Light-Duty Truck Bodies  	  8-34
 8-8      Coating Equipment Requirements in a Plant Producing
          55 Vehicles Per Hour	8-35
 8-9      Turn Key Costs of Automobile and Light-Duty Truck
          Coating Equipment Costs  	  8-36
 8-10     Incremental Capital Costs of Water-Based System Versus
          Conventional Solvent-Based Systems, Guidecoat  	  8-38
 8-11     Technical Parameters Used in Developing Costs of
          Incinerators for Control System  	  8-40
 8-12     Delivered Cost of Exhaust Gas Incinerators	8-42
 8-13     Capital Costs of Control Option IB-T for Surface
          Coating of Automobiles 	  8-43
 8-14     Capital Costs of Control Option IB-C for Surface
          Coating of Automobiles 	  8-44
 8-15     Capital Costs of Control Option II-T for Surface
          Coating of Automobiles 	  8-45
 8-16     Capital Costs of Control Option II-C for Surface
          Coating of Automobiles 	  8-46
 8-17     Capital Costs of Control Option IB-T for Surface
          Coating of Light-Duty Trucks 	  8-47

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                        LIST OF TABLES (Continued)


Table                                                                 Page

 8-18     Capital Costs of Control Option IB-C for Surface
          Coating of Light-Duty Trucks 	  8-48
 8-19     Capital Costs of Control Option II-T for Surface
          Coating of Light-Duty Trucks 	  8-49
 8-20     Capital Costs of Control Option II-C for Surface
          Coating of Light-Duty Trucks 	  8-50
 8-21     Cost Factors Used in Computing Annualized Costs
          for Control Options	8-51
 8-22     Comparable Costs of Control Option IA for Surface
          Coating of Automobiles 	  8-56
 8-23     Comparable Costs of Control Option IA for Surface
          Coating of Light-Duty Trucks 	  8-57
 8-24     Comparable Costs of Control Option IB-T for Surface
          Coating of Automobiles 	  8-59
 8-25     Comparable Costs of Control Option IB-C for Surface
          Coating of Automobiles 	  8-60
 8-26     Comparable Costs of Control Option II-T for Surface
          Coating of Automobiles 	  8-61
 8-27     Comparable Costs of Control Option II-C for Surface
          Coating of Automobiles 	  8-62
 8-28     Comparable Costs of Control Option IB-T for Surface
          Coating of Light-Duty Trucks 	  8-63
 8-29     Comparable Costs of Control Option IB-C for Surface
          Coating of Light-Duty Trucks 	  8-64
 8-30     Comparable Costs of Control Option II-T for Surface
          Coating of Light-Duty Trucks .  .	8-65
 8-31     Comparable Costs of Control Option II-C for Surface
          Coating of Light-Duty Trucks 	  8-66
 8-32     Aggregate Lengths of Spray Booths, Flash-Off Tunnels
          and Ovens for Paint Shops Handling 55 Vehicle Per Hour .  .  8-77
 8-33     Base Cost of an Automobile and Light-Duty Truck Paint
          Shop That Uses Solvent-Based Enamel	8-79
 8-34     Base Cost of an Automobile and Light-Duty Truck Paint
          Shop That Uses Solvent-Based Lacquer	8-80
 8-35     Absolute and Relative Incremental Control Costs
          (4th Quarter 1977 Dollars, Passenger Car - 6 M)	8-84
 8-36     Absolute and Relative Incremental Control Costs
          (4th Quarter 1977 Dollars, Light-Duty Trucks - GM) . .  .  .  8-85
 8-37     Absolute and Relative Incremental Control Costs
          (4th Quarter 1977 Dollars, Light-Duty Trucks - Ford) .  .  .  8-86
 8-38     Absolute and Relative Incremental Control Costs
          (4th Quarter 1977 Dollars, Passenger Car - Chrysler) .  .  .  8-87
 8-39     Inflationary Impact Assessment 	  8-93
 9-1      Automobile and Light-Duty Truck Coating Lines -
          Emission Control Options Evaluated 	  9-10
 9-2      Incremental Control Costs
          Compared to the Cost of Lacquer Plant	9-16
                                     VI

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                        LIST OF TABLES (Continued)


Table                                                                 Page

 9-3      Incremental Control Costs
          (Compared to the Cost of Enamel Plant)	  9-17

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                           LIST OF ILLUSTRATIONS
Figure                                                                Page

 3-1      Automobile Production Trends 	   3-7
 3-2      Traditional Coating Operations of An Automobile
          and Light-Duty Truck Assembly Line 	   3-15
 3-3      Flow Diagram - Application of Solvent-Based Primer
          and Topcoat - Automobile and Light-Duty Truck Bodies .  .  .   3-17
 4-1      Typical Electrodeposition System Diagram 5 	   4-5
 4-2      Forced-Draft System Eliminating Solvent Vapors from
          Surface Coating Process  	   4-24
 4-3      Coupled Effects of Temperature and Time on Rate of ....   4-27
 4-4      Schematic Diagram of Catalytic Afterburner Using
          Torch-Type Preheat Burner with Flow of Preheated
          Process Vapors Through a Fan to Promote Mixing 	   4-30
 4-5      Effect of Temperature on Oxidation Conversion of Organic
          Vapors in a Catalytic Incinerator  	   4-33
 4-6      Emission Reduction Potential (Percent) with Use of
          Higher Solids Coatings in Place of 16 Volume Percent
          Lacquers (50 Percent Deposition Efficiency)  	   4-40
 4-7      Emission Reduction Potential (Percent) with Use of
          Higher Solids Coatings in Place of 28 Volume Percent
          Enamels (50 Percent Deposition Efficiency) 	   4-42
 8-1      Available Options for Control of VOC Emissions
          Due to the Painting of Automobile and Light-Duty
          Trucks	8-32
 8-2      Cost Differential - Control Option 1A for Guide
          Coat and Topcoat, Water-Based Enamel Versus Solvent-
          Based Enamel	8-54
 8-3      Cost Differential - Control Option 1A for Guide
          Coat and Topcoat, Water-Based Enamel Versus Solvent-
          Based Lacquer	8-55
 8-4      Cost Effectiveness of Control Options 1A for Guide
          Coat and Topcoat, Water-Based Enamel Versus Solvent-
          Based Lacquer	8-69
 8-5      Cost Effectiveness of Control Options as Applied to
          Different Vehicle Types and Different Types of Solvent-
          Based Coatings	8-70
 8-6      Comparison of Purchase Prices of Catalytic
          Incinerators with Primary Heat Recovery  	   8-73
 8-7      Comparison of Purchase Prices of Thermal
          Incinerators with Primary Heat Recovery  	   8-74
 8-8      Comparison of Purchase Prices of Thermal
          Incinerators with Primary and Secondary Heat
          Recovery	8-75

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                                1.  SUMMARY
1.1  PROPOSED STANDARDS
     Standards of performance for automobile and light-duty truck surface
coating operations are being proposed under Section 111 of the Clean Air
Act.  These proposed standards would limit emissions of volatile organic
compounds (VOC) from new, modified, and reconstructed facilities.  Volatile
organic compounds are organic compounds which are precursors to photo-
chemical oxidant formation and which are measured by proposed Reference
Methods 24 and 25.
     Numerical emission limits for each "affected facility" have been
selected as follows:
          0.3 kilogram of VOC (measured as carbon equivalent) per liter of
          applied coating solids from the prime coating operation
          0.9 kilogram of VOC (measured as carbon equivalent) per liter of
          applied coating solids from the guide coating operation
          0.9 kilogram of VOC (measured as carbon equivalent) per liter of
          applied coating solids from the topcoating operation
These limits are based on the use of water-based coating materials in the
prime coat, guide coat, and topcoat operations.  Usually water-based prime
coat is applied by electrodeposition (EDP).  A transfer efficiency of 40
percent is assumed for spray application of these coatings.  The emission
limits may also be achieved by using add-on control devices, such as thermal
or catalytic incineration, to reduce VOC from solvent-based coatings.
     Reference Method 24, "Determination of Volatile Content (as Carbon) of
Paint, Varnish, Lacquer, or Related Products," is proposed as the method
for analysis of coating materials.  This performance test would be required
                                     1-1

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at all affected facilities to determine potential VOC emissions from the
coating material.   Determinations of emissions at plants which use add-on
control devices would require use of proposed Reference Method 25, "Total
Gaseous Nonmethane Organic Emissions."
1.2  ENVIRONMENTAL, ENERGY, AND ECONOMIC IMPACTS
     The VOC emissions from automobile and light-duty truck coating opera-
tions can be controlled by the use of coatings having a low organic solvent
content, add-on controls, or a combination of the two.  Low organic solvent
coatings consist of water-based enamels, high solids enamels, and powder
coatings.   Add-on controls consist of such techniques as incineration and
carbon adsorption.
New Coatings
     Water-based coating materials are applied either by conventional
spraying or by EDP.  In the EDP process the automobile or truck to be
coated is dipped into a bath containing a dilute water solution of the
coating material.   When charges of opposite polarity are applied to the dip
tank and vehicle,  the coating material deposits on the latter.   As the
coating material deposits on the surface, it acts as an insulator between
the bare metal surface and the EDP tank, thus limiting the film thickness
which can be applied by EDP.  Consequently, EDP is limited to application
of prime coats, and spraying is used for guide coat and topcoat application
of water-based coatings.   Currently, nearly half of domestic automobile
assembly plants use EDP for prime coat application, but only two domestic
plants use water-based coatings for guide coat and topcoat applications.
     High solids coatings, which include coatings of 45 to 60 percent
solids, are being developed by a number of companies.  While high solids
                                     1-2

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coatings have the potential for use in the automobile industry, there are
problems which must be overcome.  These coatings have a high working vis-
cosity which makes them unsuitable for use in many existing application
devices.  There are also some problems with the finish produced by high
solids coatings.  Since the viscosity of the material is very high, it
often produces an "orange peel," or uneven, surface.  High solids coatings
are also limited because metallic finishes cannot be applied.
     Powder coatings are a special class of high solids coatings that
consist of solids only.  They are applied by electrostatic spray and are
being used on a limited basis for topcoating automobiles, both foreign and
domestic.  The use of powder coatings is severely limited, however, because
metallic finishes cannot be applied using powder.  As with other high
solids coatings, research is continuing in the use of powder coatings for
the automobile industry.
Add-on Controls
     Incineration may be either thermal or catalytic.  Thermal incineration
has been used to control emissions from bake ovens in automobile and light-
duty truck assembly plants because of the fairly low volume and high VOC
concentration in the exhaust stream.   These units normally achieve a VOC
emissions reduction of over 90 percent.  Thermal incinerators have not,
however, been used for control of spray booth VOC emissions.  Typically,
the spray booth exhaust stream is a high volume stream (95,000 to 200,000
liters per second) very low in concentration of VOC (about 50 ppm).  Thermal
incineration of this exhaust stream would require a large amount of supple-
mental fuel, either oil or natural gas.  There are, however, no technical
problems with the use of thermal incineration.
                                     1-3

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     Catalytic incineration permits lower incinerator operating temperatures
and, therefore, requires about 50 percent less energy than thermal inciner-
ation.  While catalytic incineration is not currently being employed in the
automobile and light-duty truck industry for control of VOC emissions,
there are no major technical problems which would preclude its use on bake
oven exhaust gases.  However, catalytic incineration requires the use of
natural gas to preheat the exhaust gases since oil firing tends to foul the
catalyst.  With regard to spray booth emission control, the same consider-
ations apply as in the case of thermal incineration (i.e., a high energy
impact and requirement for use of natural gas, whose future availability
for incinerator use is questionable).
     Carbon adsorption has been used successfully to control VOC emissions
in a number of small industrial applications.  However, the ability of
carbon adsorption to control VOC emissions from spray booths and bake ovens
in automobile and light-duty truck surface coating operations is uncertain.
The high volume/low VOC exhaust streams from spray booths would require
carbon adsorption units much larger than any that have ever been built.
Work is continuing, however, on efforts to apply carbon adsorption to the
automotive industry, and it may become a demonstrated technology in the
future.
     Water-based coatings and incineration are two well demonstrated and
feasible techniques for controlling emissions of VOC from automobile and
light-duty truck coating operations.   Based upon the use of these two VOC
emission control techniques, two regulatory options were evaluated.  The two
options are summarized in the following paragraphs.  In both options, the
prime coat is water-based and applied by EDP.
                                     1-4

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     Regulatory Option I includes two alternatives which achieve essen-
tially equivalent control of VOC emissions.   Alternative A is based on the
use of a water-based prime coat, guide coat, and topcoat.   Alternative B is
based on the use of water-based prime coat and a solvent-based guide coat
and topcoat with incineration of the exhaust gas stream from the topcoat
spray booth and bake oven to control emissions.
     Regulatory Option II is based on the use of a water-based prime coat
and a solvent-based guide coat and topcoat.   In this option, the exhaust
gas streams from both the guide coat and topcoat spray booths and bake
ovens are incinerated to control emissions.
Impacts
     The incremental impacts of the proposed standards would be determined
by the final emission limitations adopted by the SIP's.  Standards based on
Option I would lead to a reduction in VOC emissions of about 80 percent,
and standards based on Option II would lead to a reduction in emissions of
about 90 percent compared to VOC emissions from an automobile or light-duty
truck assembly plant using solvent-based coatings with no add-on control
devices.  Growth projections indicate there will be four new automobile
assembly plants constructed by 1983.  Based on this assumption, it is
estimated that by 1983 national emissions of VOC would be reduced by about
4,800 metric tons per year with standards based on Option I, or about 5,400
metric tons per year with standards based on Option II.  Thus, both regula-
tory options would result in a significant reduction in emissions of VOC
from automobile and light-duty truck coating operations.
     With regard to the water pollution impact, standards based on Option
II would have essentially no impact.  Similarly, standards based on Option
I(B) would have no water pollution impact.  Standards based on Option I(A),
                                     1-5

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however, would result in a slight increase in the chemical oxygen demand
(COD) of wastewater being generated from automobile and light-duty truck
assembly plants.   However, the increase in COD under Option I(A) would be
small relative to current COD levels at plants meeting existing SIP's, and
would not result in a significant increase in the water treatment require-
ments.
     The solid waste impact of the proposed standards would be negligible.
The volume of sludge generated from water-based coating operations is
approximately the same as that generated from a solvent-based operations is
operations.   The solid waste generated from solvent-based coatings, however,
is very sticky, and equipment clean-up is more time consuming than for
solvent-based coatings.   Sludge from either type of system can be disposed
of by conventional landfill procedures without leachate problems.
     With regard to the energy impact, standards based on Regulatory
Option I(A) would increase the energy consumption of surface coating opera-
tions at a new automobile or light-duty truck assembly plant by the equivalent
of about 18,000 barrels of fuel oil per year, representing an additional 25
percent over the current annual consumption rate.  Option I(B) would cause
an increase of about 150 to 425 percent in energy consumption, equivalent
to 100,000 to 300,000 barrels of the oil per year.   Standards based on
Regulatory Option II would result in an increase of 300 to 700 percent in
energy consumption, representing an additional 200,000 to 500,000 barrels
of fuel oil  per year.  The relatively high energy impact of standards
based on Regulatory Option 1(8) and Regulatory Option II is due to the
large amount of incineration fuel needed, and the ranges reflect the dif-
ference between catalytic and thermal incineration.
                                     1-6

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     In determining the economic impacts of the proposed standards, costs
were estimated for applying each control option to the four new assembly
lines which are expected to be built by 1983.   Of these four lines, two are
General Motors lines (one passenger car and one light-duty truck), one is a
Ford light-duty truck line, and the other is a Chrysler passenger car line.
In the absence of any air pollution regulations, General Motors plants
would be designed to use solvent-based lacquer coatings in guide coat and
topcoat and Ford, Chrysler, and all other manufacturers, would use solvent-
based enamels in guide coat and topcoat.
     Capital costs for the four new facilities planned by 1983 would be
increased by approximately $19 million as a result of the proposed standards.
This incremental capital cost for control represents about 0.2 percent of
the $10 billion planned for capital expenditures during the same time
period.  The corresponding annualized costs would be increased by approxi-
mately $9 million in 1983.  The price of an automobile or light-duty truck
manufactured at a new plant which complies with the proposed standards of
performance would be increased by much less than one percent.
1.3  INFLATIONARY IMPACT
     The projected economic impacts of each alternative control system are
small, and the costs of the new source performance standards should not
preclude future construction of coating lines.  Effects on production of
automobiles and light-duty trucks and on employment should be insignificant.
     Total investment costs are projected to be approximately $19 million.
The fifth-year annualized costs, including depreciation and interest, are
estimated at approximately $9 million.  The maximum anticipated unit price
increase is much less than one percent.  Therefore, the Agency feels that
an economic impact analysis is not required.
                                     1-7

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                             2.   INTRODUCTION
     Standards of performance are proposed following a detailed investiga-
tion of air pollution control methods available to the affected industry
and the impact of their costs on the industry.  This document summarizes
the information obtained from such a study.  Its purpose is to explain in
detail the background and basis of the proposed standards and to facilitate
analysis of the proposed standards by interested persons, including those
who may not be familiar with the many technical aspects of the industry.
To obtain additional copies of this document or the Federal Register notice
of proposed standards, write to the EPA library (MD-35), Research Triangle
Park, North Carolina  27711, telephone number (919) 541-2777.   Specify
"Surface Coating Operations for Automobile and Light Duty Trucks:   Proposed
Standards," EPA-450/3-77-020a.
2.1  AUTHORITY FOR THE STANDARDS
     Standards of performance for new stationary sources are established
under Section 111 of the Clean Air Act (42 U.S.C.  7411), as amended, here-
after referred to as the Act.  Section 111 directs the Administrator to
establish standards of performance for any category of new stationary
source of air pollution which ". . .  causes or contributes significantly to
air pollution which may reasonably be anticipated to endanger public health
or welfare."
     The Act requires that standards of performance for stationary sources
reflect "... the degree of emission limitation achievable through the
application of the best technological system of continuous emission reduc-
tion ... the Administrator determines has been adequately demonstrated."

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In addition, for stationary sources whose emissions result from fossil fuel
combustion, the standard must also include a percentage reduction in emis-
sions.  The Act also provides that the cost of achieving the necessary
emission reduction, the nonair quality health and environmental impacts,
and the energy requirements all be taken into account in establishing
standards of performance.  The standards apply only to stationary sources,
the construction or modification of which commences after regulations are
proposed by publication in the Federal Register.
     The 1977 amendments to the Act altered or added numerous provisions
which apply to the process of establishing standards of performance.
     1.   EPA is required to list the categories of major stationary sources
          which have not already been listed and regulated under standards
          of performance.  Regulations must be promulgated for these new
          categories on the following schedule:
               25 percent of the listed categories by August 7, 1980
               75 percent of the listed categories by August 7, 1981
               100 percent of the listed categories by August 7, 1982
          A governor of a state may apply to the Administrator to add a
          category which is not on the list or to revise a standard of
          performance.
     2.   EPA is required to review the standards of performance every four
          years, and if appropriate, revise them.
     3.   EPA is authorized to promulgate a design, equipment, work practice,
          or operational standard when an emission standard is not feasible.
     4.   The term "standards of performance" is redefined and a new term
          "technological system of continuous emission reduction" is defined.
                                     2-2

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          The new definitions clarify that the control system must be
          continuous and may include a low-polluting or nonpolluting pro-
          cess or operation.
     5.    The time between the proposal and promulgation of a standard
          under Section 111 of the Act is extended to six months.
     Standards of performance, by themselves, do not guarantee protection
of health or welfare because they are not designed to achieve any specific
air quality levels.   Rather, they are designed to reflect the degree of
emission limitation achievable through application of the best adequately
demonstrated technological system of continuous emission reduction, any
nonair quality health and environmental impact, and energy requirements.
     Congress had several reasons for including these requirements.  First,
standards with a degree of uniformity are needed to avoid situations where
some states may attract industries by relaxing standards relative to other
states.   Second, stringent standard enhance the potential for long-term
growth.   Third, stringent standards may help achieve long-term cost savings
by avoiding the need for more expensive retrofitting when pollution ceilings
may be reduced in the future.  Fourth, certain types of standards for coal
burning sources can adversely affect the coal market by driving up the
price of low-sulfur coal or effectively excluding certain coals from the
reserve base because their untreated pollution potentials are high.  Con-
gress does not intend that new source performance standard contribute to
these problems.  Fifth, the standard-setting process should create incen-
tives for improved technology.
     Promulgation of standards of performance does not prevent state or
local agencies from adopting more stringent emission limitations for the
                                     2-3

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same sources.  States are free under Section 116 of the Act to establish
even more stringent emission limits than those established under Section
111 or those necessary to attain or maintain the national ambient air
quality standards (NAAQS) under Section 110.  Thus, new sources may in some
cases be subject to limitations more stringent than standards of perfor-
mance under Section 111, and prospective owners and operators of new sources
should be aware of this possibility in planning for such facilities.
     A similar situation may arise when a major emitting facility is to be
constructed in a geographic area which falls under the prevention of signi-
ficant deterioration of air quality provisions of Part C of the Act.  These
provisions require, among other things, that major emitting facilities to
be constructed in such areas are to be subject to best available control
technology.  The term "best available control technology" (BACT), as defined
in the Act, means ". . . an emission limitation based on the maximum degree
of reduction of each pollutant subject to regulation under this Act emitted
from or which results from any major emitting facility, which the permitting
authority, on a case-by-case basis, taking into account energy, environ-
mental, and economic impacts and other costs, determines is achievable for
such facility through application of production processes and available
methods, systems, and techniques, including fuel cleaning or treatment or
innovative fuel combustion techniques for control of each such pollutant.
In no event shall application of best available control technology result
in emissions of any pollutants which will exceed the emissions allowed by
any applicable standard established pursuant to Section 111 or 112 of this
Act."
                                     2-4

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     Although standards of performance are normally structured in terms of
numerical emission limits where feasible, alternative approaches are some-
times necessary.   In some cases, physical measurement of emissions from a
new source may be impractical or exorbitantly expensive.  Section lll(h)
provides that the Administrator may promulgate a design or equipment stan-
dard in those cases where it is not feasible to prescribe or enforce a
standard of performance.  For example, emissions of hydrocarbons from
storage vessels for petroleum liquids are greatest during tank filling.
The nature of the emissions, high concentrations for short periods during
filling, and low concentrations for longer periods during storage, and the
configuration of storage tanks make direct emission measurement impractical.
Therefore, a more practical approach to standards of performance for storage
vessels has been equipment specification.
     In addition, Section lll(h) authorizes the Administrator to grant
waivers of compliance to permit a source to use innovative continuous
emission control  technology.  In order to grant the waiver, the Administra-
tor must find:   (1) a substantial likelihood that the technology will
produce greater emission reductions than the standards require, or an
equivalent reduction at lower economic, energy or environmental cost; (2)
the proposed system has not been adequately demonstrated; (3) the techno-
logy will not cause or contribute to an unreasonable risk to public health,
welfare or safety; (4) the governor of the state where the source is located
consents; and that, (5) the waiver will not prevent the attainment or
maintenance of any ambient standard.  A waiver may have conditions attached
to assure the source will not prevent attainment of any NAAQS.  Any such
condition will  have the force of a performance standard.  Finally, waivers
                                     2-5

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have definite end dates and may be terminated earlier if the conditions are
not met or if the system fails to perform as expected.  In such a case, the
source may be given up to three years to meet the standards, with a manda-
tory progress schedule.
2.2  SELECTION OF CATEGORIES OF STATIONARY SOURCES
     Section 111 of the Act directs the Administrator to list categories of
stationary sources which have not been listed before.   The Administrator
"... shall include a category of sources in such a list if in his judg-
ment it causes, or contributes significantly to, air pollution which may
reasonably be anticipated to endanger public health or welfare."  Proposal
and promulgation of standards of performance are to follow while adhering
to the schedule referred to earlier.
     Since passage of the Clean Air Amendments of 1970, considerable atten-
tion has been given to the development of a system for assigning priorities
to various source categories.  The approach specifies areas of interest by
considering the broad strategy of the Agency for implementing the Clean Air
Act.   Often, these "areas" are actually pollutants which are emitted by
stationary sources.   Source categories which emit these pollutants were
then evaluated and ranked by a process involving such factors as:   (1) the
level of emission control (if any) already required by state regulations;
(2) estimated levels of control that might be required from standards of
performance for the source category;  (3) projections of growth and replace-
ment of existing facilities for the source category; and (4) the estimated
incremental amount of air pollution that could be prevented, in a prese-
lected future year,  by standards of performance for the source category.
Sources for which new source performance standards were promulgated, or are
under development during 1977 or earlier, were selected on these criteria.
                                     2-6

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     The Act amendments of August 1977 establish specific criteria to be
used in determining priorities for all source categories not yet listed by
EPA.  These are:
     I.   The quality of air pollutant emissions which each such category
          will emit, or will be designed to emit;
     2.   The extent to which each such pollutant may reasonably be antici-
          pated to endanger public health or welfare; and
     3.   The mobility and competitive nature of each such category of
          sources and the consequent need for nationally applicable new
          source standards of performance.
     In some cases, it may not be feasible to immediately develop a stan-
dard for a source category with a high priority.  Ths might happen when a
program of research is needed to develop control techniques or because
techniques for sampling and measuring emissions may require refinement.  In
the developing of standards, differences in the time required to complete
the necessary investigation for different source categories must also be
considered.  For example, substantially more time may be necessary if
numerous pollutants must be investigated from a single source category.
Further, even late in the development process, the schedule for completion
of a standard may change.  For example, inability to obtain emission data
from well-controlled sources in time to pursue the development process in a
systematic fashion may force a change in scheduling.  Nevertheless, priority
ranking is, and will continue to be, used to establish the order in which
projects are initiated and resources assigned.
     After the source category has been chosen, the types of facilities
within the source category to which the standard will apply must be deter-
                                     2-7

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mined.  A source category may have several facilities that cause air pollu-
tion, and emissions fT'om some of these facilities may be insignificant or
very expensive to control.  Economic studies of the source category and of
applicable control technology may show that air pollution control is better
served by applying standards to the more severe pollution sources.  For
this reason, and because there may be no adequately demonstrated system for
controlling emissions from certain facilities, standards often do not apply
to all facilities at a source.  For the same reasons, the standards may not
apply to all air pollutants emitted.  Thus, although a source category may
be selected to be covered by a standard of performance, not all pollutants
or facilities within that source category may be covered by the standard.
2.3  PROCEDURE FOR DEVELOPMENT OF STANDARDS OF PERFORMANCE
     Standards of performance must:   (1) realistically reflect best demon-
strated control practice; (2) adequately consider the cost, nonair quality
health and environmental impacts, and energy requirements of such control;
(3) be applicable to existing sources that are modified or reconstructed as
well as new installations; and (4) meet these conditions for all variations
of operating conditions being considered anywhere in the country.
     The objective of a program for development of standards is to identify
the best technological system of continuous emission reduction which has
been adequately demonstrated.   The legislative history of Section 111 and
various court decisions make clear that the Administrator's judgment of
what is adequately demonstrated is not limited to systems in actual routine
use.  The search may include a technical assessment of control systems
which have been adequately demonstrated but for which there is limited
operation experience.   In most cases, determination of the ".  .  . degree of
                                     2-8

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emission reduction achievable ..." is based on results of tests of emis-
sions from well-controlled existing sources.  At times, this has required
the investigation and measurement of emissions from control systems found
in other industrialized countries that have developed more effective sys-
tems of control than those available in the United States.
     Since the best demonstrated systems of emission reduction may not be
in widespread use, the data base upon which standards are developed may be
somewhat limited.  Test data on existing well-controlled sources are obvious
starting points in developing emission limits for new sources.  However,
since the control of existing sources generally represents retrofit techno-
logy or was originally designed to meet an existing state or local regula-
tion, new sources may be able to meet more stringent emission standards.
Accordingly, other information must be considered before a judgment can be
made as to the level at which the emission standard should be set.
     A process for the development of a standard has evolved which takes
into account the following considerations:
     1.   Emissions from existing well-controlled sources as measured.
     2.   Emissions data from such sources which are assessed with considera-
          tion of such factors as (a) the representativeness of  the tested
          source in regard to feedstock, operation, size, age, etc.; (b)
          age and maintenance of the control equipment tested; (c) design
         • uncertainties of control equipment being considered; and (d) the
          degree of uncertainty that new sources will be able to achieve
          similar levels of control.
     3.   Information from pilot and prototype installations, guarantees by
          vendors of control equipment, unconstructed but contracted pro-
                                     2-9

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          jects, foreign technology, and published literature are also
          considered during the standard development process.  This is
          especially important for sources for which "emerging" technology
          appears to be a significant alternative.
     4.   Where possible, standards are developed which permit the use of
          more than one control technique or licensed process.
     5.   Where possible, standards are developed to encourage or permit
          the use of process modifications or new processes rather than
          "add-on" systems as methods of air pollution control.
     6.   In appropriate cases, standard are developed to permit the use of
          systems capable of controlling more than one pollutant.   As an
          example, a scrubber can remove both gaseous and particulate emis-
          sions, but an electrostatic precipitator is specific to particu-
          late matter.
     7.   Where appropriate, standards for visible emissions are developed
          in conjunction with concentration/mass emission standards.   The
          opacity standard is established at a level that will require
          proper operation and maintenance of the emission control system
          installed to meet the concentration/mass standard on a day-to-day
          basis.  In some cases, however, it is not possible to develop
          concentration/mass standards, such as with fugitive sources of
          emissions.   In these cases, only opacity standards may be developed
          to limit emissions.
2.4  CONSIDERATION OF COSTS
     Among the requirements of Section 317 of the Act is an economic impact
assessment with respect to any standard of performance established under
                                     2-10

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Section 111 of the Act.  The assessment is required to contain an analysis
of:
     (1)  the costs of compliance with the regulation and standard, including
          the extent to which the cost of compliance varies depending on
          the effective date of the standard or regulation and the develop-
          ment of less expensive or more efficient methods of compliance;
     (2)  the potential inflationary recessionary effects of the standard
          or regulation;
     (3)  the effects on competition of the standard or regulation with
          respect to small business;
     (4)  the effects of the standard or regulation on consumer cost, and,
     (5)  the effects of the standard or regulation on energy use.
     Section 317 requires that the economic impact assessment be as exten-
sive as practicable, taking into account the time and resources available
to EPA.
     The economic impact of a proposed standard upon an industry is usually
addressed both in absolute terms and by comparison with the control costs
that would be incurred as a result of compliance with typical existing
state control regulations.  An incremental approach is taken since both new
and existing plants would be required to comply with state regulations in
the absence of a federal standard of performance.  This approach requires a
detailed analysis of the impact Upon the industry resulting from the cost
differential that exists between a standard of performance and the typical
state standard.
     The costs for control of air pollutants are not the only costs con-
sidered.  Total environmental costs for control of water pollutants as well
as air pollutants are analyzed wherever possible.
                                     2-11

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     A thorough study of the profitability and price-setting mechanisms of


the industry is essential to the analysis so that an accurate estimate of
                                                        V

potential adverse economic impacts can be made.  It is also essential to


know the capital requirements placed on plants in the absence of federal


standards of performance so that the additional capital requirements necessi-


tated by thse standards can be placed in the proper perspective.  Finally,


it is necessary to recognize any constraints on capital availability within


an industry, as this factor also influences the ability of new plants to


generate the capital required for installation of additional control equip-


ment needed to meet the standards of performance.


2.5  CONSIDERATION OF ENVIRONMENTAL IMPACTS


     Section 102(2)(c) of the National Environmental Policy Act (NEPA) of


1969 requires federal agencies to prepare detailed environmental impact


statements on proposals for legislation and other major federal actions


significantly affecting the quality of the human environment.   The objec-


tive of NEPA is to build into the decision-making process of federal agen-


cies a careful consideration of all environmental  aspects of proposed


actions.


     In a number of legal challenges to standards  of performance for various


industries, the federal courts of appeals have held that environmental


impact statements need not be prepared by the Agency for proposed actions


under Section 111 of the Clean Air Act.   Essentially, the federal courts of


appeals have determined that "... the best system of emission reduction,


.  .  .  require(s) the Administrator to take into account counterproductive


environmental effects of a proposed standard, as well as economic costs to


the industry ..."  On this basis, therefore, the courts "... estab-
                                     2-12

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lished a narrow exemption from NEPA for EPA determination under Section
111."
     In addition to these judicial determinations, the Energy Supply and
Environmental Coordination Act (ESECA) of 1974 (PL-93-319) specifically
exempted proposed actions under the Clean Air Act from NEPA requirements.
According to Section 7(c)(l), "no action taken under the Clean Air Act
shall be deemed a major federal action significantly affecting the quality
of the human environment within the meaning of the National Environmental
Policy Act of 1969."
     The Agency has concluded, however, that the preparation of environmen-
tal impact statements could have beneficial effects on certain regulatory
actions.  Consequently, while not legally required to do so by Section
102(2)(c) of NEPA, environmental impact statements will be prepared for
various regulatory actions, including standards of performance developed
under Section 111 of the Act.  This voluntary preparation of environmental
impact statements, however, in no way legally subjects the Agency to NEPA
requirements.
     To implement this policy, a separate section is included in this
document which is devoted solely to an analysis of the potential environ-
mental impacts associated with the proposed standards.  Both adverse and
beneficial impacts in such areas as air and water pollution, increased
solid waste disposal, and increased energy consumption are identified and
discussed.
2.6  IMPACT ON EXISTING SOURCES
     Section 111 of the Act defines a new source as ". .  . any stationary
source, the construction or modification of which is commenced ..." after
                                     2-13

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the proposed standards are published.   An existing source becomes a new
source if the source is modified or reconstructed.  Both modification and
reconstruction are defined in amendments to the general provisions of
Subpart A of 40 CFR Part 60 which were promulgated in the Federal Register
on December 16, 1975 (40 FR 58416).  Any physical or operational change to
an existing facility which results in an increase in the emission rate of
any pollutant for which a standard applies is considered a modification.
Reconstruction, on the other hand, means the replacement of components of
an existing facility to the extent that the fixed capital cost exceeds 50
percent of the cost of constructing a comparable entirely new source and
that it be technically and economically feasible to meet the applicable
standard.  In such cases, reconstruction is equivalent to new construction.
     Promulgation of a standard of performance requires states to establish
standards of performance for existing sources in the same industry under
Section lll(d) of the Act if the standard for new sources limits emissions
of a designated pollutant (i.e., pollutant for which air quality criteria
have not been issued under Section 108 or which has not been listed as a
hazardous pollutant under Section 112).   If a state does not act, EPA must
establish such standards.  General provisions outlining procedures for
control of existing sources under Section lll(d) were promulgated on Novem-
ber 17, 1975, as Subpart B of 40 CFR Part 60 (40 FR 53340).
2.7  REVISION OF STANDARDS OF PERFORMANCE
     Congress was aware that the level of air pollution control achievable
by any industry may improve with technological advances.  Accordingly,
Section 111 of the act provides that the Administrator ". .  .  shall, at
least every four years, review and, if appropriate, revise ..." the
                                     2-14

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standards.   Revisions are made to ensure that the standards continue to
reflect the best systems that become available in the future.   Such revi-
sions will  not be retroactive but will apply to stationary sources con-
structed or modified after the proposal of the revised standards.
                                     2-15

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                3.   THE AUTOMOTIVE AND LIGHT-DUTY TRUCK INDUSTRY


3.1  GENERAL DESCRIPTION


3.1.1  Automotive Industry


     The automotive industry is the largest manufacturing industry in the


United States.   Motor vehicle and allied industries account for one-sixth


of the Gross National Product.1  In 1977, the four major automotive manufac-


turing companies—General Motors Corporation, Ford Motor Company, Chrysler


Corporation, and American Motor Corporation—had combined sales of $111


billion.  Any significant change in the automotive industry affects the


entire United States economy.  According to the U.S.  Department of Commerce,


for every 10 workers producing automobiles, trucks, and parts, 15 addi-


tional people are employed in industries that provide the materials and


manufactured components for these industries.*  Employment figures for the


automotive industry are given in Table 3.1.


     Among the four automotive manufacturers, General Motors accounts for


the largest portion, 57 percent, of the total market.  Table 3.2 shows


domestic production by manufacturer.


     The automotive assembly plants are located in 19 states and 43 cities,^


as shown in Table 3.3.  Over 32 percent of all automobiles produced in the


U.S. are manufactured in Michigan.  Table 3.4 summarizes the automobile
*
 The terms "automobile," "passenger car," and "car" are used interchangeably
 throughout this report.

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TABLE 3.1  DIRECT EMPLOYMENT IN THE PRODUCTION
           OF AUTOMOBILES
         1967                   341,000

         1971                   382,000

         1972                   412,000

         1973                   450,000

         1974                   350,000

         1975                   380,000

         1976 (Est.)            390,000
                    3-2

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        TABLE 3.2  SHARE OF TOTAL U.S.  PRODUCTION

Make
American Motors
Chrysler Corp.
Ford Motor Co.
General Motors
Miscellaneous
12-Month Total
New Car Registration
by Company in U.S.
1967 1972
237,785 301,973
1,341,392 1,466,141 1
1,851,440 2,549,296 2
4,139,037 4,635,656 4
787,767 5,326
8,357,421 8,958,392 8

19_77_
181,433
,181,140
,431,126
,985,150
5,316
,784,165
                             Production Summary:
                    1974 Total U.S. Production = 7,324,504
                    1975 Total U.S. Production = 6,716,951
                    1976 Total U.S. Production = 8,497,893
                    1977 Total U.S. Production = 8,784,165
Sources:  MVMA Motor Vehicle Facts & Figures '77 and '78.  Wards
          Automotive Yearbook.   1978.
                             3-3

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assembly plants by manufacturer, location, and make of automobile.  On the
average, automobile assembly plants operate approximately 4000 hours per
year at production rates averaging over 45 vehicles per hour for mid-sized
passenger cars.
     In 1973, production of automobiles was 9.7 million, a 10 percent
increase over 1972.  Production of cars decreased considerably to 7.3
million in 1974 and 6.7 million in 1975.  The major factor that brought
about the decline in production was the serious shortage of gasoline and
diesel fuel which developed at the end of 1973.  Consequently, the con-
sumers began seeking small economical models, which were not yet available
in the domestic market.  Many American assembly plants producing large cars
were converted to production of compact and subcompact models.  As a result,
plants had to close down, production fell sharply, and at one time there
were nearly 150,000 auto workers out of work.
     In 1976, however, production showed an upward trend, reaching the
level of 8.6 million cars.  This increase can be attributed first to the
economic recovery during 1976 which allowed higher automotive sales.
Secondly, a wide range of sizes, such as subcompacts, compacts, inter-
mediate, and full-sized automobiles, were available.   Demand for domestic
new cars is expected to be nearly constant over the next four years, with
1980 sales projected at 10,400,000 units, as shown in Figure 3.I.3  All
producers have announced their product mix plans through 1980, and there is
evidence of down-sizing with each car size category.
     Sales of imported cars, which reached a peak of 18.4 percent of the
U.S. market in 1975, have held fairly steadily over the last several years
with minor fluctuations.  Several foreign car manufacturers plan to produce
                                  3-4

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               TABLE 3.3  AUTOMOBILE ASSEMBLY PLANT PRODUCTION
                              MODEL YEAR 1977
Location
CALIFORNIA
Fremont
Los Angles
San Jose
South Gate
Van Nuys
DELAWARE
Newark
Wilmington
FLORIDA
Sebring
GEORGIA
Atlanta
Doraville
Lakewood
ILLINOIS
Belvidere
Chicago
KANSAS
Fairfax
KENTUCKY
Louisville
MARYLAND
Baltimore
MASSACHUSETTS
Framingham
MICHIGAN
Dearborn
Detroit
Flint
Hamtramack
Kalamazoo
Units
740,492
164,216
128*143
59,744
131,233
257,156
363,202
226,435
136,767
™
595,926
186,130
241,423
168,373
409,062
173,178
235,884
267,110
267,110
101,057
101,057
241,171
241,171
135,776
135,776
2,948,759
131,016
587,342
416,459
379,562
Percent
8.1
1.8
1.4
0.7
1.4
2.8
4.0
2.5
1.5

6.6
2.0
2.7
1.9
4.5
1.9
2.6
2.9
2.9
1.1
1.1
2.7
2.7
1.5
1.5
32.3
1.4
6.4
4.6
4.2
Location
MICHIGAN (Contini
Lansing
Pontiac
Wayne
Willow Run
Wi xom
MINNESOTA
Twin Cities
MISSOURI
Kansas City
Leeds
St. Louis
NEW JERSEY
Linden
Mahwah
Metuchen
NEW YORK
Tarry town
OHIO
Avon Lake
Lorain
Lordstown
Norwood
TEXAS
Arlington
WISCONSIN
Janes vi lie
• Kenosha
U.S. TOTAL
Units
ed)
404,000
326,231
273,150
255,078
175,921
115,464
115,464
1,010,786
93,946
252,119
664,721
596,791
243,455
260,560
92,776
230,894
230,894
660,101
36,136
241,017
162,029
220,919
230,371
230,371
457,581
275,576
182,005
9,104,543
Percent
4.4
3.6
3.0
2.8
1.9
1.3
1.3
11.1
1.0
2.8
7.3
6.6
2.7
2.9
1.0
2.5
2.5
7.3
0.4
2.7
1.8
2.4
2.5
2.5
5.0
.3.0
2.0.
100.0
MVMA  Motor Vehicle Facts & Figures '78, p.  15.
                            3-5

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             TABLE 3.4  AUTOMOTIVE ASSEMBLY  PLANTS

                             Model  Year  1978
 Manufacturer
       Location
       Make of Automobile
American Motors
Kenosha, Wisconsin
Hornet, Gremlin, Pacer, Matador
Chrysler Corp.
Belvidere, Illinois
Hamtramck, Michigan
Jefferson Av., Detroit
Lynch Rd., Detroit
Newark, Delaware
St. Louis, Missouri
Wyoming, Michigan
Gran Fury, Royal Monaco, Chrysler
Volare, Aspen
Chrysler
Monaco, Fury
Volare, Aspen
Diplomat, LeBaron
Voyager, Sportsman Volare,  Aspen
Export
Ford Motor Co.
Atlanta, Georgia
Avon Lake, Ohio
Chicago, Illinois
Dearborn, Michigan
Kansas City, Missouri
Lorain, Ohio
Los Angeles, Calif.
Louisville, Kentucky
Mahwah, New Jersey
Metuchen, New Jersey
St. Louis, Missouri
San Jose, California
Twin Cities, Minnesota
Wayne, Michigan
Wixom, Michigan
LTD II, Cougar/XR7
Club Wagon
Thunder-bird
Mustang II
Maverick, Comet
Cougar, LTD II
LTD, Thunderbird
LTD
Granada, Monarch
Pinto, Bobcat
Mercury
Pinto, Mustang II, Bobcat
LTD
Granada, Monarch,  Versailles
Lincoln, Mark V
General Motors
Arlington, Texas
Baltimore, Maryland
Detroit, Michigan
Doraville, Georgia
Fairfax, Kansas
Flint, Michgian
Framingham, Mass.
Fremont, California
Janesvilie, Wisconsin
Lakewood, Georgia
Lansing, Michigan
Leeds, Missouri
Linden, New Jersey
Lordstown, Ohio
Norwood, Ohio
Pontiac, Michigan
St. Louis, Missouri
South Gate, Calif.
Tarrytown, New York
Van Nuys, California
Willow Run, Michigan
Wilmington, Delaware
Chevelle, Monte Carlo.  Cutlass
Monte Carlo, Chevelle,  Century,  LeMans
Cadillac, Eldorado, Seville
Monte Carlo, Cutlass, Chevelle
Pontiac,.01dsmobilie 88,  Le  Sabre
Buick, Century, Riviera
Century, Cutlass
Monte Carlo, Century, Chevelle
Chevrolet
Grand Prix,  LeMans
Oldsmobile,  Cutlass, Toronado
Monte Carlo, Nova,  Skylark,  Chevelle
Cadillac, Oldsmobile, Buick
Sportvan, Sunbird,  Monza, Vega,  Astre
Camaro, Firebird
Pontiac, LeMans, Grand  Prix
Chevrolet, Corvette
Chevrolet, Le Sabre, Oldsmobile  88
Nova, Skylark, Ventura
Camaro, Firebird
Nova, Omega, Ventura, Skylark
Chevette, Acadian
Checker Motors
Kalamazoo, Michigan
Checker
Sebring-Vanguard     Sebring, Florida
                          dtlCar
Volkswagon
New Stanton, Pa.
Rabbit
                                     3-6

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Millions of
Automobiles
10.5 ^


10.0


 9.5


 9.0


 8.5


 8.0


 7.5


 7.0


 6.5


 6.0
                      1974
                                                     I
                1975
                                          1976
                                    1977

                                  Years
1978
1979
1980
                         Figure 3.1  Automobile  production trends.
                                            3-7

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cars in the United States.  Volkswagen is. already producing cars for sale
in America at its new plant in New Stanton, Pennsylvania.
3.1.2  Truck Industry
     The truck industry manufactures a wide range of vehicles designed for
personal and commercial applications.  Different models of vehicles are
classified by gross vehicle weight (GVW) and body type, as summarized in
Table 3.5.
     Almost 39 percent of the total production is comprised of vehicles
with GVW of under 6,000 pounds, and about 75 percent of the total production
by trucks with less than 8,500 pounds GVW.   The term "light-duty truck" as
used in this study indicates all vehicles with ratings of 8,500 pounds or
less GVW.  Thirty-five percent of all light-duty trucks are produced in
Michigan.  The remaining 65 percent are made in other states.
     Table 3.6 shows light-duty truck assembly locations in cities and
states.  Table 3.7 summarizes the light-duty truck assembly plants by
manufacturer and location.
     As in the automobile industry, the truck industry has been affected by
recession in recent years.  After .the record production of 3,007,495 units
in 1973, production slackened in 1974 and 1975.   In 1976, however, pro-
duction of trucks reached almost the same level  as in 1973 (3,015,000
units).  Production in 1977 was 3,433,569 units.   The major factors contri-
buting to this growth were the overall economic growth, the new popularity
of light-duty trucks and vans for personal  use,  and the improved availability
of gasoline.
     Assuming that another petroleum embargo does not occur and the improve-
ment in the general economy continues as forecast, the annual growth rate
                                  3-8

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                           TABLE  3.5.   1975 U.S.  TRUCK AND BUS  FACTORY SALES BY BODY
                                        TYPES AND  GROSS VEHICLE  WEIGHT,. POUNDS.
OJ

UD
Body Type
Pickup
General Utility
Van
lulti-Stop
Station Wagon (on
truck chassis)
Buses (including
school bus chassis)
Other body types
TOTAL *
6.000
and Less
1.036.438
100.797
185.610
-
6
.
2.855
1.325.706
6,001- 10.001- 14.001-
10,000 14.000 16,000
901 .278
193,836
341,002 , -
36,326. 18,014 1,221
139,897 - i -
...
110,722 2,274
1.723.061 20.288 1.221
16,001- 19,501- 26,001-
19.500 26,000 33,000
.
.
.
697
i - - *
126 29,173 545
7,065 145.083 30,057
7,888 174,256 30,602
Over T t ,
33.000 lolal
1,937.716
294.633
526,612
56,258
139,903
1,429 31,273
155,884 453,940
157,313 3,440,335
            Source:

              HVMA  Motor Vehicle Facts & Figures '78 p. 12

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                 TABLE 3.6.'  LIGHT-DUTY TRUCK ASSEMBLY PLANTS

                               Model Year  1375
Location of Plant
CALIFORNIA
Frejnont
San Josa
GEORGIA
Atlanta
Lakewoo'd
KENTUCKY
Louisville
MARYLAND
Baltimore
MICHIGAN
Detroit
Flint
Warren
Wayna
MISSOURI
Kansas City
St. Louis
NEW JERSEY
Mahwah
OHIO
Avon Lake
Lordstcwn,
Toledo
VIRGINIA
Norfolk
WISCONSIN
Jonesville
TOTAL
Units
130,829
53,000
77;829
61,925
13,228
48,697
153,404
153,404
72,175
72,175
601,456
10,543
250,050
.212,033
128,830
181,377
67,946
113,431
42,925
42,925
357,502
143,895
102,763
110,844
54,777
54,777
62,153
62,153
1,718,523
Percent
8
3
5
4
1
3 -
9
9
4
4
35
1
14
12
8
10
4
6
3
3
20
9
6
3
3
3
4
4
100 .
Sources:  Ward's 1976 Automotive Yearbook; Automotive News, 1975 Almanac;
          and DeBell & Richardson's estimated breakdown  .
                                3-10

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TABLE 3.7.  LIGHT-DUTY  TRUCK ASSEMBLY PLANT LOCATIONS

            Model Year 1978
 Manufacturer
        Location
 Chrysler Corporation
 Ford Motor Conpany
 General Motors
 Jeep

 International
Warren, Michigan
St. Louis, Missouri

Atlanta, Georgia
Kansas City, Missouri
Lorain, Ohio
Louisville, Kentucky
Mahwah, New Jersey
Wayne, Michigan
Norfolk, Virginia
San Jose, California
Twin Cities, Minnesota

Baltimore, Maryland
Detroit, Michigan
Flint, Michigan
Fremont, California
Janesville, Wisconsin
Lakewood, Georgia
Lordstown, Ohio
Pontiac, Michigan
St. Louis, Missouri

Toledo, Ohio

Fort Wayne, Indiana
 Source:   Auto News,  1975 Almanac
                           3-11

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is expected to be four percent per annum to 1980.  A modest growth of one
percent per annum is projected for 1980 to 1985.3  However, as with the
automobile industry, the demand for light-duty trucks will be influenced by
monetary policy, fiscal policy, and other economic development.
     As in the automotive market, General Motors as a total entity domi-
nated the light-duty truck market with 45 percent of the total production
in 1975.  Light-duty truck production by model is shown in Table 3.8.
3.2  PROCESSES OR FACILITIES AND THEIR EMISSIONS
3.2.1  The Basic Process - Automotive Industry
3.2.1.1  General
     The finishing process of an automobile body is a multistep operation
carried out on a conveyor system known as the assembly line.  Such a line
operates at a speed of 9 to 25 feet per minute and produces 30 to 70 units
per hour.  The plant may operate up to three 8-hour shifts per day.  Usual-
ly the third shift is used for cleanup and maintenance.  Plants usually
stop production for several weeks during the summer season for inventory
and model changeover.
     Although finishing processes vary from plant to plant, they have some
common characteristics.  Major successive steps of such processes are given
below:
     •    Solvent wipe*
     •    Phosphating treatment
     •    Application of primer coat
     •    Curing of the primer coat
*
 The term "solvent" in this document means organic solvent.
                                  3-12

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TABLE  3.8.  ESTIMATED LIGHT-DUTY TRUCK PRODUCTION
Make
Chevrolet
Dodge
Ford
General Motors
International
Jeep
TOTAL
1974
724,052
309,810
687,788
138,625
77,411
114, '132
2,051,818
1975
624,061
270,926
493,182
128,954
32,772
106,704
1,656,599
 Sources:  Auto News;   1975 and 1976 Almanac
           issues.   DeBell & Richardson esti-
           mated breakdown
                        3-13

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     •    Application of surfacer
     •    Curing of surfacer
     •    Application of the topcoat(s)
     •    Curing of the topcoat(s)
     •    Paint touch-up operations
     A process diagram of these consecutive steps of the automobile finish-
ing process is presented in Figure 3.2.  These steps are explained in more
detail in Sections 3.2.1.2 through 3.2.1.4 of this document.  Minimal
sanding operations may occur at various points of the operation, depending
on the manufacturer.   Application of sealants generally occurs after the
primer application; sealants are usually cured together with the primer in
the primer coat oven.
     Touch-up coating operations are conducted at various stages of the
application of the topcoat(s) to yield a uniform appearance of the coated
area.   High bake touch-up coating is performed prior to attachment of heat
sensitive materials and is cured in a high temperature oven.  Final, or low
bake,  repair generally uses a highly catalyzed air-drying coating.  Air-
drying coatings are required for the last touch-up, since at this stage
heat-sensitive plastics and rubber automotive parts have been built into
the automobile.
3.2.1.2  Preparation of Metal Prior to Coating
     The automobile body is assembled from a number of welded metal sections.
Parts  such as hoods and front fenders may or may not be coated.   However,
the body and the parts that are coated all pass through the same metal
preparation process.
                                  3-14

-------
                      Body welded and
                      solder applied
                      and ground down
                     Sealants applied
                           I
                           I
   Solvent wipe
  (Kerosene wipe)
   Primer coat
  applied (spray
    or dip)
              7-Stage phosphatlng
                Cooling with
                 water spray
CO


en
                      Primer coat
                      (and sealant)
                     •cured In oven
                      (Sanding)
                     Topcoat cured
                        1n oven
                     Finished body
Second topcoat and
 touchup sprayed
    In booth
   Paint touchup
   cured In low
    bake oven or
     air dried
                                            Surfacer
                                             sprayed
                                            In booth
                Second topcoat
                  cured In
                high bake oven
 Final
touchup
Assembly
     Figure 3-2.   Traditional  coating  operations of an  automobile and light  duty truck assembly line.
     aSolvent-based primers are applied by spraying  in  booth;  water-based primers are applied in a  dip tank.

      Solvent-based primers are applied on an  oven-dried body; water-based  primers are applied on a wet body.

-------
     First, surfaces are wiped with solvent to eliminate traces of oil and
grease.  Second, a phosphating process prepares surfaces for the primer
application.  Since iron and steel rust readily, phosphate treatment is
necessary to prevent such rusting.  Phosphating also improves the adhesion
of the coating to the metal.  The phosphating process occurs in a multi-
stage washer in the following sequence:
     1.   Alkaline cleaner wash - 20 to 120 seconds
     2.   First hot water rinse - 60°C (140°F) - 5 to 30 seconds
     3.   Second hot water rinse - 60°C (140°F) - 5 to 30 seconds
     4.   Phosphating with zinc or iron acid phosphate - 15 seconds
     5.   Water rinse, ambient - 5 to 30 seconds
     6.   Dilute chromic acid rinse - 5 to 30 seconds
     7.   Deionized water rinse - 5 to 60 seconds
The parts and bodies pass through a water spray cooling process and, if
solvent-based primer is to be applied, they are then oven dried.
3.2.1.3  Primer Coating
     A primer is applied prior to the topcoat to protect the metal surface
from corrosion and to ensure good adhesion of the topcoat.   Figure 3.3, a
flow diagram, shows process steps of both solvent-based primer and topcoat
applications.  Approximately half of all finishing processes use solvent-
based primers.   The rest use water-based primers.
     Water-based primer is most often applied in an electrodeposition (EDP)
bath.  The composition of the bath is about 10 percent solids, 4 percent
solvent, with the remaining portion being water.  The solvents used are
typically organic compounds of higher molecular weight, such as ethylene
glycol monobutyl ether.  When EDP is used, a surfacer (also called a primer
                                  3-16

-------
GJ
I
Stack
(Over-Spray
(Solvents)
Co
Th
Co
Th
Finished Body •

Body
at Ing
and 	
Inner

Primer
spray booth


* Over-Spray loss
(Solids)
Stack
(Evaporation
(Solvents)
Surfacer oven
(If any)


Stack
1 Over-Spray
(Solvents)

atttig
and 	
Inner

Topcoat/Touch-
up Spray
Booth


* Over-Spray
(Solids)
Stack
* Evaporation
(Solvents)
Low Temper-
ature Cure
Oven


Stack ,
(Evaporation
(Solvent
Emissions)
Flash-off
of
Solvents


Stack
i Evaporation
f (Solvent
I Emissions)
Flash-off
of
Solvents


Stack
(Evaporation
(Solvent
Emissions)
Flash-off
of
Solvents


Stack
(Evaporation
(Solvent
Emissions)
Flash-off
nf
OT
Solvents


Stack
(Evaporation
(Solvents)
Primer
cure oven


Stack
tOver-SprajV
(Solvents) .
Surfacer Spray
Booth (If any)



Stack
i Evaporation
* (Solvents)
Topcoat
Cure Oven
-»~To fir
Stack
. Over-Spray
i (Solvents)
Final
Repair


al assembly
               * Stacks may be used for specific single operations or several  operations  may be combined and
                   exhausted through a single stack.

               Note:  The only emission controlled areas of the process are the spray booths and cure ovens.


                      Figure 3-3.  Flow Diagram - Application of solvent-based primer and
                                     topcoat - automobile and light duty truck bodies.

-------
surfacer or guidecoat) is applied between the primer and the topcoat.  This
surfacer can be either solvent-based or water-based.  EDP and surfacer are
described in more detail in Chapter 4, Emission Control Techniques.
     Solvent-based primer is applied by a combination of manual and automa-
tic spraying.  Solvent emissions for solvent-based primer application were
derived from information collected from automobile manufacturers.   Average
solvent emission was calculated to be 1.51 gallons per vehicle for the
primer application.   Assuming that a car production line operates at a
production rate of 55 cars per hour and two (8-hour) shifts per day, 880
cars are produced daily.  Approximately 9,300 pounds of solvent (basis:
density of 7 pounds per gallon) are therefore discharged daily from the
primer application process.
     Yearly energy requirements for solvent-based primer application on a
car production line are tabulated in Table 3.9.  Similarly, a material
balance is shown in Table 3.10, which includes the discharge of emission at
different steps in the process.  This is the base case used in Chapters 6
and 7.   Discharge of solvents to the atmosphere in the primer application
are estimated as follows: 88 percent loss during application and 12 percent
loss during oven drying of the coating.
3.2.1.4  Solvent-based Topcoat
     The solvent-based topcoat is generally applied by a combination of
manual  and automatic sprays.  Average percent solids content in the paint
is in the range of 24 to 33 volume percent for solvent-based topcoat enamel
type automotive finish, and 12 to 18 percent volume for solvent-based top-
coat lacquer type automotive finish.   A material balance for solvent-based
topcoat application is shown in Table 3.11.   This is the base case used in
Chapters 6 and 7.
                                  3-18

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    TABLE 3.9.   BASE CASE ENERGY  BALANCE  FOR
      APPLICATION OF SOLVENT-BASED PRIMER
              TO AUTOMOBILES
Operation Steps
Application
Cure
Total
106Btu/Yr a
5,177
73,656
78,833
Annual energy consumption calculations were based
on 211,200 cars produced per year, working from the
following:  (1)  Production rate - 55 cars/hr.
(2)  Time - 2 shifts (8 hr/shift)/day; 240 days/
year; 3840 hr/year; or, 55 cars/hr x 3840 hr/yr =
211,200 cars/yr.
                           3-19

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         TABLE 3.10.  BASE CASE MATERIAL BALANCE FOR
             APPLICATION OF SOLVENT-BASED PRIMER
                       TO AUTOMOBILES
Item
1. Coating applied (24% solids by volume)
Coating (40% solids by volume as bought)
Thinner
2. Material loss in the application
Solid
Solvent discharge
3. Total coating on body
4. Oven evaporation loss
Solvent discharge
5> Net dry solids on body
Liters Per
211,200 Cars a
952,533
635,022
1,587,555
215,368
1,063,144
1,278,512
309,043
143,398
165,645
211,200 cars is the annual  production figure based on the
following:  (1)  Production rate - 55 cars/hr.  (2) Time-
2 shifts (8 hr/shift)/day;  240 days/year; 3840 hr/year.
(55 cars/hr x 3840 hr/yr =  211,200 cars/yr.
                             3-20

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             TABLE 3.11.  BASE CASE MATERIAL BALANCE  FOR
             APPLICATION OF SOLVENT-BASED ENAMEL TOPCOAT
                           TO AUTOMOBILES
                 Item
  Liters Per
211,200 Cars
1.  Coating applied (25% solids by volume)

      Paint (.31% solids by volume as bought)
      Thinner
   1,881,053
     451,451
   2,332,504
2.  Material loss in the application step

      Solid
      Solvent discharge
     328,327
   1.545,718
   1,874,045
3.  Total coating on body
     458,459
4.  Oven evaporation loss

      Solvent discharge
     203,660
5.  Net dry solids
     254,799
 211,200 cars is the annual production fiqure based on the
 following:  (1)  Production rate - 55 cars/hr.   (2) Time -
 2 shifts (8 hr/shift)/day; 240 days/year; 3840  hr/year.
 (55 cars/hr x 3840 hr/yr = 211,200 cars/yr.)
                              3-21

-------
     Because of the time that the body is in the spray booth, 85 to 90
percent of the solvent evaporates in the booth and its flash-off area.4
Solvent emissions vary with each automotive plant, depending mainly on the
number of units produced daily, the surface area of each unit, and the
amount of solvent in the paint.  The process steps of solvent-based topcoat
application is shown in Figure 3.3.
     The loss of paint from overspray varies between 20 to 60 percent for
solvent-based topcoats.  Most automotive companies use waterwall-type spray
booths.  The used water from the spray booths goes to sludge tanks where
solids are removed, and the water is recirculated.  The sludge tanks are
cleaned yearly.5
     Topcoat application is make in one or more steps (as many as three) to
ensured sufficient coating thickness.   An oven bake may follow each topcoat
application or the paint may be applied wet.  The energy balance for solvent
-based topcoat application is shown in Table 3.12.
     Following the application of the topcoat, the painted body goes to the
trim operation area where vehicle assembly is completed.   The final step of
the finishing operation is generally the final repair process in which
damaged paint is repared in a spray booth and air-dried or baked in a low
bake oven to protect the heat-sensitive plastic and rubber parts that were
added in the trim operation area.
3.2.1.5  Equipment Characteristics
     Automotive finishing process equipment from which VOC emissions emanate
consists of spray booths, dip tanks, and bake ovens.   Other equipment
includes specialized conveyors for moving the bodies and parts to be finished
through the process.
                                  3-22

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      TABLE 3.12.  BASE CASE ENERGY BALANCE FOR
      APPLICATION OF SOLVENT-BASED ENAMEL TOPCOAT
                     TO AUTOMOBILES
Operation Steps
Application
Cure
Total
106 Btu/Yr a
13,316
189,422
202,738
Annual energy consumption calculations based on 211,200
cars produced per year, derived as follows:  (1) Produc-
tion rate - 55 cars/hr.  (2)  Time - 2 shifts (8 hr/shi.ft)/
day; 240 days/year.  (55 cars/hr x 3840 hr/y5 = 211,200
cars/yr.)


This amount is highly dependent on climate since outside
air must be heated to comfortable temperatures.  The amount
of heat required for this can be twice that required for
curing.
                          3-23

-------
     Solvent-based primer and topcoat are applied by a combination of
manual and automatic spraying techniques.  Spray booth lengths vary from
100 to 200 feet.  Because the bodies and parts are in the spray booth for a
relatively long time, the majority of solvents are emitted in the spraying
area.   High air flows through the booths dilute the vapors to such an
extent that exiting concentrations of solvent vapor are very low.
     To comply with Office of Safety and Health Administration (OSHA)
regulations, a minimum air velocity within the booth is usually specified.
As a result, organic vapors are in the vicinity of 50 to 150 ppm in the
spray area.*  However, even though the solvent concentration is low, the
volume of exhaust is high and the total amount of solvent emitted can
easily exceed the limit of 3000 pounds per day required by many state
regulations.  Temperature in the spray booths range from 15°C (60°F) to
35°C (95°F).
     Waterwall-type spray booths are the type most used in automobile
production facilities.  In a typical booth design, the overspray paint
particles are removed by a curtain of water flowing down the side surfaces
of the booth enclosure.  Waterfall systems in several booths are connected
to one or more large sludge tanks.  The floating sludge is skimmed off the
surface of the water.  The water is then filtered and recirculated to the
booths.  Bake ovens for the primer and topcoats usually have four or more
heat zones.  Oven temperatures range from 93°C (200°F) to 232°C (450°F),
depending on the type of coating and the zone.  A bake oven can safely
 Threshold limit for toluene or xylene: 100 parts/million (ppm).
 American Conference of Governmental Industrial Hygienists, 1973.
                                  3-24

-------
operate at 25 percent of the lower explosive limit (LEL), and in many
industries such concentrations are maintained.   In the automotive industry,
however, concentrations are much lower.   One reason is that ovens are very
long with large openings; hence, large amounts of air are pulled into them.
Another reason is that ovens are designed to provide a bake environment
that is not saturated with solvent, as air pressures in the oven tend to
force available solvent vapors into the panel insulation.6 The two major
automobile and light-duty truck manufacturers report solvent concentrations
at five percent of the LEL.7'8  According to another source, solvent concen-
tration in the oven may reach a maximum of about 10 percent of the LEL.9
3.2.1.6  Emission Characteristics
     The three types of solvent-based coatings used in the automotive
industry are paints, enamels, and lacquers.  Paints represent a small
fraction of the total quantity of the coatings used in automotive coating
operations.  Paints are highly pigmented drying oils diluted with a low
solvency power solvent known as thinner.  Applied paints dry and cure in
the oven by evaporation of the thinner and by oxidation during which the
drying oil polymerizes to form a resinous film.   Enamels are similar to
paints in that they cure by polymerization.  Many automotive coatings
contain no drying oils but cure by chemical reaction when exposed to heat.
Applied lacquers are dried by evaporation of the solvent to form the coat-
ing film.
     The amount of solvent and thinners used in surface coating composi-
tions varies, depending upon the plant in which they are used.  The solvents
used in enamels, lacquers, and varnishes are aromatic hydrocarbons, alcohols,
ketones, ethers, and esters.  The thinners used in paints, enamels, and
                                  3-25

-------
varnishes are aliphatic hydrocarbons, mineral spirits, naphtha, and turpen-
tine.
     As mentioned previously, solvent emissions occur at the application
and cure steps of the coating operation.  Calculation of solvent emissions
from representative plants resulted in the emission factors for the primer
and topcoat operations given in Table 3.13.  Assuming that the production
rate of a finishing line is 880 cars per day (55 cars per hour, two 8-hour
shifts per day), 22,800 pounds of solvents (basis: density of 7 pounds per
gallon) are discharged daily from the finishing operation.
     Solid waste generated by the automotive finishing process was also
determined based on data collected from the industry.  Table 3.14 shows
solid waste factors for the automotive finishing process.
     The spray booths' water effluent contains contaminants from overspray
of coatings.  This effluent is discharged into sludge tanks, where solids
are removed, and the water is recirculated.  The sludge tanks are cleaned
yearly when solvent-based coatings are used and four times  per year for
water-based coatings.5
3.2.1.7  Factors Affecting Emissions
     Several factors affect emissions discharged by the automotive industry.
Naturally, the greater the quantity of solvent in the coating composition
the greater will be the air emissions.  Lacquers having 15  to 17 volume
percent solids are higher in solvents than enamels having 24 to 35 volume
percent solids.
     Production affects the amount of discharge of solvent  emissions—the
higher the production rate, the greater the emissions.  This rate can also
be influenced by the area of the parts being coated.
                                  3-26

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TABLE 3.13.  AVERAGE EMISSIONS FOR THE
     AUTOMOBILE FINISHING PROCESS

            Liters Per Car
Coating
Primer -
Solvent-based spray
Topcoat -
Solvent-based spray
TOTAL
Applica-
tion

5.03

7.32
12.35
Cure

0.68

0.96
1.64
Total

5.71

8.28
13.99
               3-27

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TABLE 3.14.  AVERAGE SOLID WASTE GENERATED FOR
          AUTOMOTIVE FINISHING PROCESS
       Coating
Average Transfer Loss
of Solids in Coatings,
   Liters/Vehicles
Primer -

  Solvent-based spray
        1.02
Topcoat -

  Solvent-based spray



TOTAL
        1.55
        2.57
                     3-28

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     Emissions are also influenced by the thickness of the coating and
technique used.   There are no transfer problems when electrodeposition is
used; essentially all the paint solids are transferred to the part.  There
can be dripping associated with dragout, but this material is normally
recovered in the rinse water and returned to the dip tank.  VOC emissions
from EDP are, therefore, very low.
     In the case of spray coating, the transfer efficiency varies, depen-
ding on the type of spraying technique used.*  Transfer efficiency for
nonelectrostatic spraying ranges from 30 to 60 percent; with electrostatic
spraying the range is from 68 to 87 percent.10
     State or intrastate regulations also influence emissions.   Many states
have statewide or district regulations for the control of hydrocarbon
emissions from stationary sources.
3.2.2  The Basic Process - Light-Duty Truck Industry
3.2.2.1  General
     With little exception, the finishing process of a light-duty truck
body is the same as for an automobile body.  The production rate is usually
slower than for automobiles, 35 to 38 units per hour versus 30 to 70 units
per hour for automobiles.  The process diagram in Figure 3.2 shows the
consecutive steps of the light-duty truck finishing process.  Unless other-
wise noted, it may be assumed that what was stated for automobiles generally
holds true for light-duty trucks.
 Transfer efficiency is the percentage of the total coating solids used that is
 deposited on the surface of the object being coated.
                                  3-29

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3.2.2.2  Primer Coating
     Solvent emission data for solvent-based primer were derived from
information collected from light-duty truck manufacturers.   The average
solvent emission of plants using solvent-based primer was calculated to be
1.40 gallons per vehicle for the primer application.   Assuming that a
light-duty truck production line operates at a production rate of 38 light-
duty trucks per hour and two (8-hour) shifts per day, 608 light-duty trucks
are produced daily.  This means that approximately 6,000 pounds of solvent
(basis: density of 7 pounds per gallon) are discharged daily from the
primer application process.  A material balance showing the discharge of
emissions at different steps in the solvent-based primer application pro-
cess is presented in Table 3.15.  This is the base case used in Chapters 6
and 7.   Discharge of solvents to the atmosphere during primer application
occurs as follows: 88 percent loss during application and 12 percent loss
during oven drying of the coating.  Energy requirements for the solvent-
based primer application in a light-duty truck production line are tabulated
in Table 3.16.
3.2.2.3  Solvent-based Topcoat
     Table 3.17 presents the base case material balance for solvent-based
topcoat application.  The base case energy balance is shown in Table 3.18.
The process steps of the solvent-based topcoat operation is given in
Figure 3.3.
     Average percent solids content for solvent-based topcoat is 31 volume
percent for light-duty trucks.   The amount of overspray ranges from 35 to
60 percent for solvent-based topcoating.
                                  3-30

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           TABLE  3.15.   BASE  CASE  MATERIAL BALANCE  FOR
               APPLICATION  OF SOLVENT-BASED  PRIMER
                     TO LIGHT-DUTY TRUCKS
                 Item
    Liters Per
145,920 Vehicles
1.  Coating applied (30% solids by volume)

      Coating (40% solids by volume as
      bought)

      Thinner
    829,555

    276.518
  1,106,073
2.  Material loss in the application step

      Solid
      Solvent discharge
    189,140
    681.340
    870.480
3.  Total coating on body
    235,593
4.  Oven evaporation loss

      Solvent discharge
     92,907
5.  Net dry solids on body
    142,686
145,920 vehicles is the annual production figure based on the
following:  (1) Production rate - 38 vehicles/hour.  (2) Time
2 shifts (8 hours/shift) per day; 240 days/year; 3840 hours/
year.  (38 vehicles/hr x 3840 hr/yr = 145,920 vehicles/yr.)
                             3-31

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       TABLE 3.16.  BASE CASE ENERGY BALANCE FOR
           APPLICATION OF SOLVENT-BASED PRIMER
                  TO LIGHT-DUTY TRUCKS
Operation Steps
Application
Cure
TOTAL
TO6 Btu/Year a
4,233
37,517
41,750
Annual energy consumption calculations were based on the
figure 145,920 vehicles, as follows:  (1) Production rate -
38 vehicles/hour.  (2} Time:  2 shifts (8 hours/shift)  per
day; 240 days/year; 3840 hours/year.  (38 vehicles/hr x
3840 hr/yr » 145,920 vehicles/yr.)


This amount is highly dependent on climate since outside air
must be heated to comfortable temperatures.  The amount of
heat required for this can be twice that required for
curing.
                          3-32

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           TABLE  3.17.   BASE  CASE MATERIAL BALANCE  FOR
           APPLICATION  OF  SOLVENT-BASED  ENAMEL TOPCOAT
                       TO  LIGHT-DUTY TRUCKS
                      Item
   Liters Per
145,920 Vehicles
1.  Coating applied (28% solids by volume)

      Coating (31% solids by volume

      Thinner
   1,603,807

     171.835
   1,775,642
2.  Material  loss in the application step

      Solid
      Solvent discharge
     281,701
   1.127,657
   1,409,358
3.  Total coating on body
     366,284
    Oven evaporation loss
      Solvent discharge
     150,805
5.  Net dry solids on body
     215,479
145,920 vehicles is the annual  production  figure based on  the
following:  (1) Production rate - 38 vehicles/hour.   (2)   Time-
2 shifts (8 hours/shift)/day; 240 days/year;  3840 hours/year.
C38 vehicles/hr x 3840 hr/yr = 145,920 vehicles/yr.)
                              3-33

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         TABLE 3.18.   BASE CASE MATERIAL BALANCE FOR
         APPLICATION  OF SOLVENT-BASED ENAMEL  TOPCOAT
                     TO LIGHT-DUTY  TRUCKS
Operation Steps
Application
Cure
TOTAL
TO6 Btu/Year a
10,852
96,322
107,174
a Annual energy consumption calculations were based on the yearly
  production figure of 145,920 vehicles, as follows:  (1)  Produc-
  tion rate - 38 vehicles/hour.  (2)  Time - 2 shifts (8 hours/
  shift)/day; 240 days/year; 3840 hours/year.  (38 vehicles/hr x
  3840 hr/yr = 145,920 vehicles/yr.)
  This amount is highly dependent on climate since outside air
  must be heated to comfortable temperatures.   The amount of
  heat required for this can be twice that required for curing.
                            3-34

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3.2.2.4  Emission Characteristics
     The types of solvent-based coatings solvents and thinners used in the
light-duty truck industry are essentially identical to those used for
automobiles and described in paragraph 3.2.1.6, except that lacquers are
seldom used for light-duty trucks.
     As mentioned previously, solvent emissions occur at the application
and cure steps of the coating operation.  Calculation of solvent emissions
from plants visited resulted in the emission factors for the primer and
topcoat operations given in Table 3.19.   Assuming that the production rate
of a finishing line is 608 light-duty trucks per day (38 vehicles per hour,
two 8-hour shifts per day), 15,800 pounds of solvent (basis: density of 7
pounds per gallon) will be discharged daily from the finishing operation.
     Solid waste generated by the light-duty truck finishing process was
also determined based on data collected from the industry.  Table 3.20
shows solid waste factors for the light-duty truck finishing process.
                                  3-35

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TABLE 3.19.  AVERAGE EMISSIONS FOR THE
      LIGHT-DUTY TRUCK FINISHING
               PROCESS
         Liters Per Truck
Coating
Primer -
Solvent-based spray
Topcoat -
Solvent-based spray
TOTAL
Applica-
tion
4.67
7.73
12.40
Cure
0.64
1.03
1.67
Total
5.31
8.76
14.07
             3-36

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  TABLE 3.20.   AVERAGE  SOLID WASTE  GENERATED  FOR
            LIGHT-DUTY  TRUCK FINISHING
                     PROCESS
        Coating
Average Transfer Loss
of Solids in Coatings,
   Liters/Vehicle
Primer -

  Solvent-based spray
        1.30
Topcoat -

  Solvent-based spray


TOTAL
        1.93
        3.23
                     3-37

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3.3  REFERENCES



     1.   Larson, C.J.  Transportation and Capital Equipment



          Division, U.S. Industrial Outlook 1975.  U.S.  Depart-



          ment of Commerce,  p.  133.



     2.   Ward's 1976 Automotive Yearbook.  Ward's, Communica-



          tions, Inc. 1976.  p 90-91.



     3.   Wark, D. Automotive Study.  DeBell & Richardson,  Enfield,



          Connecticut.   1977.  pp.  24-27.



     '4.   Air Pollution Engineering Manual.  U.S. Department of



          Health, Education,  and Welfare; Cincinnati,  Ohio.  1967



          p. 711.



     5.   Telephone conversation, Tibor Gabris of DeBell &  Richard-



          son with spokesman of  General Motors Assembly  Division,



          General Motors Corporation, Van Nuys Plant.  October 29,



          1976.



     6.   Johnson, W.R. General  Motors Corporation, Warren, Michi-



          gan.  Letter to J.A. McCarthy of EPA.  August  13, 1976.



     7.   Letter of V.H. Sussman, Ford Motor Company,  One Park-



          lane Blvd., Dearborn,  Michigan, to Radian Corporation,



          commenting on report "Evaluation of a Carbon Adsorption/



          Incineration  Control System for Auto Assembly  Plants."



          March 15, 1976.



     8.   Comments of General Motors Corporation on EPA  "Guide-



          lines for Control of Volatile Organic Emissions from



          Existing Stationary Sources".  W.R. Johnson  to J.A.-



          McCarthy of EPA.  August 13, 1976.
                              3-38

-------
9.   Conversation, J.A. McCarthy of EPA with Fred Porter of



     Ford Motor Company, Dearborn,  Michigan.  September 23,



     1976.



10.  Waste Disposal from Paint Systems Discussed at Detroit,



     Michigan.  American Paint & Coating Journal.  February  23,



     1945.  pp. 35-36.
                         3-39

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                      4.  EMISSION CONTROL TECHNIQUES

4.1    GENERAL
       This chapter and Chapter 6 both analyze the available emission
control technology for the automobile and light-duty truck  industry.  The
purpose of this chapter is to define the emission reduction performance  of
specific control techniques, while Chapter 6 evaluates complete emission
control systems that combine finishing processes with one or more  emission
reduction techniques.
       The purpose of the control techniques as discussed in this  chapter
is to minimize emissions of volatile organic compounds to the  air.  These
compounds - ketones, alcohols, esters, saturated and unsaturated
hydrocarbons, and ethers - make up the major portion of the solvents used
for coatings, thinners, and cleaning materials associated with  industrial
finishing processes.
       There are several types of control techniques presently in  use
within the automobile and light-duty truck industry.  These methods can  be
broadly categorized  as either add-ons or new coating systems.   Add-ons are
used to reduce emissions by either recovering or destroying the solvents
before they are emitted into the air.  Such techniques include thermal and
catalytic incinerators and carbon adsorbers.  New coatings  refers  to
application methods  that use coatings that contain relatively  low  levels
of solvents.  Such methods include electrodeposition or air spray

                                      4-1

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of water-borne coatings and electrostatic spray of water-borne and powder
coatings.  Because of the lower solvent content of the new coatings, these
application methods are inherently less polluting than processes that use
conventional solvent-borne coatings.
       The following discussion characterizes the control techniques and
defines the emission reduction associated with each technique in the auto
and light-duty truck industry.

4.2    THE ALTERNATIVE EMISSION CONTROL TECHNIQUES
4.2.1  Water-borne Coatings
       Water-borne coatings are the most common of the control techniques
in current use in the automobile and light-duty truck industry.  Most
water-borne coatings are applied by electrodeposition as primers.
Water-borne spray topcoats and surfacers are used considerably less often
than water-borne primers.
       The terminology for water-borne coatings tends to be confusing—the
names of the various coating types are often misused or used
synonymously.  The term water-borne, as discussed here, refers to any
coating that uses water primarily as the carrier and is meant to
distinguish such coatings from solvent-borne coatings.
       There are three types of water-borne coating materials:   latex or
emulsion coatings, partially solubilized dispersions, and water-soluble
coatings.  Table 4.1 lists the significant characteristics of these three
types of water-borne coatings.  These  indicated properties are not meant
to be absolute, since individual coatings vary.
                                      4-2

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                        TABLE 4.1.  WATER-BORNE COATINGS
Properties
Resin particle
size
Molecular
weight
Latex or
Emulsion Coatings
0.1 micron
1 million
Partially
Solubilized
Dispersions
Utlrafine
50,000 - 200,000
Water-Soluble
Coatings
20,000 - 50,000
Viscosity
Viscosity control
Gloss


Chemical Resis-
tance

Exterior durabil-
ity

Impact resistance

Stain resistance

Color retention
on oven bake

Reducer


Washup
Low - not depen-
dent on molecu-
lar weight

Requires thick-
eners
Solids at appli-    High
cation
Low


Excellent


Excellent


Excellent

Excellent

Excellent


Water


Difficult
Somewhat dependent
on molecular wt.
Thickened by addi-
tion of cosolvent
                   Intermediate
Low to medium-
high
Excellent


Excellent

Good

Excellent to good


Water
Moderately
difficult
Very dependent on
on molecular
weight

Governed by mo-
lecular weight
and solvent per-
cent

Low
Low to highest
Good to excellent    Fair to good
Very good


Good to excel,

Fair to good

Good to fair
Water or water/
solvent mix

Easy
Source:   Industrial Finishing  (July  1973)  p.  13.
                                       4-3

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4.2.2  Electrodeposition
       Only water-borne coatings can be applied by the electrodeposition
(EDP) process.  Currently, electrodeposition  (also called electrocoating)
is used in more than half of the existing assembly plants for  application
of automotive primers to bodies and associated parts, such as  fenders  and
hoods.  Such systems have been described in detail.1»2»3
       In applying electrodeposition coatings, the parts are immersed  in a
bath of low-solid water-borne coating solution; the tank or grids on the
periphery of the tank are negatively charged  while the parts are grounded;
and negatively charged polymer is attracted to the metal item  and is
deposited as a highly uniform coating.**  The  process  is analogous to
electroplating.  Systems of the opposite polarity can also be  used.
     Cathodic EDP, in which the part is negatively charged, is a new
technology which is expanding rapidly in the  automotive industry.  In-
creased corrosion resistance and lower cure temperatures are two of
the main reasons for this change from anodic  to cathodic systems.
Cathodic systems are also capable of applying better coverage  on deep
recesses of parts.  Since cathodic EDP has these advantages, and in-
dustry is presently converting to cathodic, it will be used as the
base EDP system in this document.   Figure 4.1 shows a typical  closed-
loop EDP process.
       The solubilized resins used in automobile and  light-duty truck
primers are generally based on malenized oils or malenized polyester.
These resins are combined with pigments, such as carbon black  and iron
oxide, and are dissolved in water/solvent ratios ranging from  98/2 to
90/10 percent.  The solvents used are typically higher molecular weight
                                      4-4

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t
en
                                                                       Colonized  Water
                   Elcctrocleposition

                       Dip Tank
                      Coating Supply
                     Ultrafiltration
                                      Coating Return
Ultraflltrnte
                                                             Holding Tank
                                                                          r-tJ
                                                                                                    Drain
                                Figure 4.1.   Typical  Electrodepos1t1on System  Diagram 5.

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organic compounds, such as ethylene glycol monobutyl ether (butyl
cellosolve™).6
       After electrodeposition, the coatings are baked and the amine,
solvent, and water evaporate to leave a cured film that closely resembles
a solvent-borne finish.^
       In a typical EDP operation, bodies or parts are loaded on a
conveyor that carries them first through a pretreatment section.  The
treated and washed bodies or parts are  automatically lowered  into the  EDP
tank containing the water-borne coating, a 6 to 12 percent dispersion  of a
                  389
collodial polymer. '  '   The body or part becomes the cathode of the
electrical system while the tank or grids mounted in the tank-become the
anode.  To avoid has marking the coating, direct current electrical
power  is not applied until the part is  totally submerged.  Current flow
through the bath causes the coating particles to be attracted to the metal
surface, where they deposit as a uniform film.  The polymer film that
builds up tends to insulate the part and prevent futher deposition.  Dwell
time in the tank is typically 1-1/2 to  2 minutes.3'8'10'11
       The current is then shut off, and the parts are raised out of the
bath,  allowed to drain, rinsed to remove dragout, and then baked.  Solids
from the dragout are collected in the rinse water and are usually returned
to the EDP tank.  This recovery can result  in coating savings from 17  to
30 percent.12'13  Excess water is removed from the coating bath using  an
ultrafilter.
       The conveyors, pretreatment section, and bake oven used for EDP are
conventional items; the critical components of the system include the
following:14'15
                                       4-6

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Dip Tank.  The dip tank is a large rectangular container
generally with a capacity of 121,120 to 321,725 liters  (32,000
to 85,000 gallons), depending on part size.*6  Larger tanks
are used for priming bodies, while the smaller units are used
for coating associated parts, such as fenders and hoods.  The
tanks are coated internally with a dielectric material, such as
epoxy, and are electrically grounded for safety.^'^
Shielded anodes are submerged and usually run along both sides of  the
tank.
Power Supply.  Direct current electrical power is supplied by a
rectifier with a capacity of approximately 250 to 500 volts and
300 to 2,500 amperes, depending on the number of square feet
per minute to be finished.
Heat Exchangers.  Coating drawn from the dip tank is passed
through a heat exchanger to dissipate heat that is developed
during the coating operation.  The temperature is normally
maintained at 20 to 24°c + 1°C (68 to 75°F + 2°F).3'9'10
Filters.  An in-line filter is also placed in the recirculating
system to remove dirt and polymer agglomerates from the coating.
Pumps.  Recirculating pumps are used to keep the coating
solution stirred.
Ultrafiltration Unit.  Excess water is removed from the coating
in this unit.  The concentrate, the coating, is returned to the
dip tank.  A portion of the permeate, the excess water, is used
as rinse water, while the remainder is sewered.
                           4-7

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       •   Coating Mixing Tank.  Coating mixing tanks are used to premix
           and store coating solids for addition to the dip tank as needed.
       •   Control Panel.  The electrodeposition process is generally
           controlled from a central control console.  This panel contains
           all start-stop switches plus instruments for monitoring
           voltage, amperage, coating temperature, and pH.
       Proper pretreatment can be critical to coating performance -
particularly if the substrate has grease or oil on the surface.
Solvent-borne coatings generally will dislodge an occasional oil spot, but
water-bornes will not.17  Cleaners developed for solvent-borne coating
systems are generally adequate for EDP.
       Coating in the dip tank is affected by voltage, current density,
temperature, dwell time, pH, and solids content. ^
       By increasing the voltage or the temperature in the bath, the film
thickness can be increased.  Excessively high voltage will cause holes in
the films because of gassing, however.  Too high a temperature is also
undesirable; some coatings will flocculate at temperatures approaching
90°C.  Refrigeration of the bath is necessary to maintain temperatures
below this point.
       At high pH, there is a reduction in the deposition; if the pH drops
below the isoelectric point, the total coating in the bath can coagulate.
       If the solids content in the coating is too high, the voltage.
cannot wring the moisture from the deposited film; if the bath is too
dilute, then the film will be thin.  Film build up is usually about 0.7
mil.
                                      4-8

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       For successful operation of an EDP system it  is necessary to
monitor on a regular basis:  voltage, amperage, pH,  temperature, and
solids.  For satisfactory appearance of the final finish,  it  is important
to rinse the parts thoroughly after painting; the final rinse should  be
with deionized water.
       Parts coated by EDP are normally baked from 15 to 30 minutes at 163
to 190°C (300 to 400°F), with the higher temperatures being used for
automobile primers.1,3,15,19,20
       Solvent emissions are related to both coating composition and
production rate.  The greater the quantity of solvent in the  water-borne
coating, the greater the air emissions.  Solvents used in  water-borne
coatings are high molecular weight organic compounds, added to aid  in
fusing the coating particles into a continuous film.
       Production in terms of square meters per hour has an influence on
emissions:  the higher the rate, the greater the emissions.   This  rate
depends on the area of the parts, their spacing on the conveyor, and  the
conveyor speed.
       Emissions also are  influenced by coating thickness:  thicker
coatings will carry a greater amount of solvent.  The thickness depends on
the voltage and amperage applied across the electrodes.  Normally  there
are no transfer efficiency problems with electrodeposition; nearly all the
coating solids are transferred to the part.  There can be  dripping
associated with dragout, but this material  is recovered  in the rinse  water
and returned to the dip tank.
       The emission reduction capacity of EDP is related to the solvent
content of the coating and the percent solids of the coating  as the part
emerges from the bath, both of which influence the weight  of  solvent
                                       4-9

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associated with applying a given weight of dry coating solids.  Similarly,
the percent emission reduction is related to the emission level of the
solvent-borne primer being replaced, which varies with the percent solvent
in the coating and the transfer efficiency.
       EDP is not used alone, however, for most automobile and light-duty
truck primers.  Most employ a primer surfacer, also called surfacer or
guidecoat, to build film thickness and permit sanding between the primer
and topcoat.  These primer surfacers are applied by spraying and can be
either solvent or water-borne.  Because of the solvent content, they can
have a significant effect on the overall solvent emissions for primer
operations (see Chapter 6 - Emmission Control Systems).
4.2.3  Water-borne Spray
       Since the application of water-bornes by EDP is limited to one-coat
priming, auto manufacturers have chosen spray coating for applying
water-borne surfacers and topcoats.21,22,23  TwQ Qenera] Motors plants
                                                         pi pp
are in production with water-borne surfacer and topcoats, A»" and there
is one Ford Motor Company experimental line in Canada.23  General
Motors' automobile plant currently under construction in Oklahoma City,
Oklahoma and light-duty truck plant being planned for Shreveport,
Louisiana will both use water-borne surfacer and topcoats.
       The topcoat materials used are thermosetting acrylics with 23 to 25
volume percent solids,4'24'23'25 and water/solvent ratios of 82/18 to
88/12, respectively, in the volatile portion of the coating.  These
compositions correspond to solvent to solids ratios in the range of 0.36
to 0.60 by volume.
                                      4-10

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       The general finishing processes for both General Motors plants
using water-borne surfacer and topcoats are similar.   »22  The finishing
process at the General Motors South Gate, California plant has been
described in detail;25 the steps are as follows:
       1.  A conventional cleaning and phosphating with no dry-off.
       2.  An electrodeposition primer application followed  by baking.
       3.  Application of sealers.
       4.  Coating with  an epoxy ester-based water-borne  spray primer
           surfacer  (guidecoat) using automatic and manual air spray.
       5.  Flash-off for 5 to 8 minutes in a 77 to 93°C (170 to  200°F)
           tunnel.
       6.  A partial bake.
       7.  Application of interior coating plus additional sealant.  The
           coating used  here  is a water-borne  acrylic  enamel.
       8.  Final  baking  of the primer.
       9.  Wet-sanding and masking of the interior.
      10.  Application of a water-borne acrylic enamel  topcoat  in two
           separate  booths with a flash-off and set-up  bake  after each
           application.
      11.  Coating of the trunk with a water-borne emulsion  coating.
      12.  Touch-up  and  accent color application  in  a  third  booth.
      13.  A final bake  at 163°C  (325°F) for 30 minutes.
       In addition to automobile  topcoats, water-borne  coatings  are  also
being used to finish components,  such as wheels and  engines.26'27'2**
       As with  any coating, emissions of volatile organics from
water-borne topcoats into the  air  is dependent on the  percent solids and
                                       4-11

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solvent in the coating and the thickness of the coating that  is applied.
In addition, emissions are'influenced by the number of units  produced per
hour and the surface area of each unit.
       One critical factor in any spray operation, a factor that can have
serious effect not only on emissions but on cost  and secondary pollutants,
is transfer efficiency - that percentage of the coating that  actually
deposits on the part.  With conventional spray transfer efficiencies are
usually in the range of 30 to 60 percent.  Electrostatic spray increases
                                         29
transfer efficiences to 70 to 90 percent.

4.2.4  Powder Coating
       Powder coating, although considered here as a new coating method,
has been in use since the 1950's.31  Fluidized-bed coating began in the
early 1950's, and electrostatic spray was introduced in the early 1960's.
Powder coating, regardless of process, involves the application of 100
percent solid materials in dry powder form; no solvents are used, although
traces of organics can be driven off from the resins during curing.
       Powder coating materials are available as  both thermoplastic and
thermosets, but the thermosets are the only materials of interest here for
thin, high-performance finishes for automobiles and light-duty trucks.
       Powder coating is being used throughout the industrial finishing
industry for such diverse painting applications as metal furniture, wire
goods (baskets, racks, and shelves), piping, and  tubing, fencing and
posts,32 garden tractors and lawn equipment,33 and bicycles.
       In the automotive industry in the United States, powder coating has
been used on two pilot lines for applying topcoats - one at a General
Motors Corporation automobile assembly plant in Framingham,

                                      4-12

-------
Massachusetts,35 and one at a Ford Motor Company automobile assembly
plant in Metuchen, New Jersey.36  Powder coatings are also being applied
to under-the-hood parts, such as oil filters and air cleaners3''™ as
well as bumpers, trailer hitches, and emergency brake cable
guides.39'40'41
       In Japan, Honda is reported to be topcoating cars with powder  at
the rate of 55 units per hour, while Nissan Motor Company began applying
powder topcoats to trucks sometime during 1977.42  Nissan is
constructing a new plant at Kanda, North Kyushu, where the powder topcoats
will be applied to light-duty trucks at the rate of 2,100 per month.
Trucks will be finished in one of eight colors; all applied from a single
spray booth.43
       At the present time the most significant use of powder for
automobile finishing is a large pilot line being used by the Ford Motor
Company at Metuchen, New Jersey, for applying  topcoats.  This line has
been successfully finishing Pintos in solid colors since 1973.°  The
powder coating operation has been placed adjacent the main assembly  line.
Prior to the powder finish, cars are pretreated and primed in an  identical
manner to cars receiving conventional finishes.  Cars to be powder coated
are moved from the main assembly line and  are  painted by electrostatic
spray in one of two booths.  The bulk of the coating  is applied with
automatic powder  guns.  Inaccessible areas  are hand sprayed.  For good
flowout, a 6.3 to 7.6 x 10"2 millimeter  (2.5 to 3.0 mil) coating  is
applied, which  is equivalent to  approximately  2.9 kilograms  (6.5  pounds)
                   •3C
of  coating per car.
                                       4-13

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       To fuse and cure the coating, the cars are baked at 177° c
(350°F) for 30 minutes.  Following finishing and baking, the cars  are
moved back into the main assembly line.
       The cars are finished in one of eight solid colors.  Overspray  is
approximately 35 percent,36 most of which  is recovered.
       Ford has not successfully demonstrated the application of powder
metallic coatings.  In applying solvent-borne coating, the viscosity is
low enough for the metallic flakes to turn and orient parallel to  the
surface as the coating dries.  With powder, however, the molten polymer is
viscous and the flake keeps a random orientation, making the appearance
less aesthetically pleasing.  This is of great importance, since metallic
coated vehicles account for over 50 percent of sales.
       On a typical automobile or light-duty truck assembly line,  the
color of the topcoat to be applied is determined by  individual orders,
which come completely at random.  This requires a color change after each
vehicle.  The time allowed for the change  is dictated by the line  speed,
which permits approximately 13 seconds between vehicles.
       Color changes are normally difficult and time-consuming, requiring
removal of essentially all powder from the booth, lines, and guns.44
Color contamination cannot be tolerated or the finished coating will
contain particles of dissimilar color, giving a salt-and-pepper look.
       Through modification of their equipment, Ford has been able to
achieve the desired 13-second color change.  Metallic powder coatings  are
not, however, currently available and this fact precludes their
consideration as a control option.
                                      4-14

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4.2.5  Higher Solids Coatings
       Higher solids coatings hold the potential of being able to apply
the same weight of paint solids with reduced emissions of volatile
organics.  Such coatings fall in the general categories of radiation
curable systems, higher solids nonaqueous dispersion coatings, high-solids
coatings, and powder coatings.  Powder coatings have already been
discussed (paragraph 4.2.4).  Radiation-cured coating involves the
photocuring of mixtures of  low molecular weight polymers or oligomers
dissolved in low molecular  weight acrylic monomers.  These formulations
contain no solvent carriers and can be cured using either electron beam or
ultra-violet light sources  to essentially 100-percent solids
coatings.45,46,47  These coatings have generated little interest in the
auto industry, presumably because of the health hazard associated with the
spray application of these  relatively toxic monomer mixtures and the
difficulties involved in obtaining adequate cure of the paint when applied
to irregularly shaped substrates.
       Medium-solids nonaqueous dispersion  (NAD) coatings are being used
in the auto industry.  Nonaqueous dispersion coating vehicles are polymer
dispersions of particles in the size range  of 0.01 to 30 microns in
diluents that are nonsolvents or, at least, very poor solvents.  The
diluents are liquids other  than water and are usually limited to the more
common hydrocarbons, i.e.,  alcohols, esters, etc.  At nonvolatile contents
potentially as high  as 40 to 60 volume percent, NAD products form easily
pourable liquids of  relatively low viscosity; the  viscosity being
essentially independent of  the molecular weight of the polymer. °
                                      4-15

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       During the early 1970's, NAD coatings began to generate interest as
spray topcoats for automobiles, both domestic and foreign.  As a result,
several companies are now using NAD coatings of less than 50 percent solids
on automobile and truck assembly lines for the application of both lacquer
                    49 50
and enamel topcoats.  '
       At the present time in the industry, topcoats are being applied
either from lacquers - both nonaqueous dispersion and solution - or from
nonaqueous dispersion enamels.  A small percentage of the autos produced
are still being finished with solution enamel paints.
       Most of the autos produced at General Motors, representing about
half of the domestic production, are finished with lacquers.  These
lacquers range from approximately 12 to 18 volume percent solids applied,
depending on whether the lacquer is a nonaqueous dispersion or a solution.
       Most of the vehicles manufactured by Ford, Chrysler, and American
Motors are being topcoated with NAD enamels.  General Motors uses these
coatings for their trucks.  These enamels vary in their degreee of
dispersion; in fact, some come very close to being solutions.  Solid color
NAD enamels, which are relatively low in dispersion, are supplied at a
solids content generally in the range of 39 to 42 volume percent.
Metallic NAD enamels tend to be higher in dispersion than the solid colors
and are normally supplied at 33 to 37 volume percent solids:49'50 these
enamels are then diluted with solvent for application.
       NAD enamels used in the industry have essentially the same solvent
contents as their solution enamel counterparts.  Although higher solids
contents are technically feasible, these have not been realized because of
application and appearance problems.  The present NAD enamels, therefore,
are inherently no less polluting than solution enamels.

                                      4-16

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       Most of the impetus behind the switch to NAD coatings was due to
the ability of the dispersion coating to build sufficient film rapidly
without the sagging and solvent popping usually associated with solution
enamels and lacquers.  Use of NAD lacquer also allowed spray application
at almost double the usual solids for solution lacquers, thereby cutting
the number of coats required by 40 to 50 percent.  These improved
application performances made it possible to increase line speeds by 50 to
60 percent without capital investment in equipment of facilities.
       High-solids coatings are a relatively new family of materials that
is currently being developed and investigated in the automotive, can,
coil, and appliance industries.  The attraction of such coatings seem
based on a low solvent content, the promise of application with
conventional finishing equipment, and the promise of energy savings
through the use of more reactive systems.  Although the traditional
definition of high solids as specified in "Rule 66" indicates no less than
80 volume percent solids,51 most of the people in industry are
considering everything from 60 to 100 percent as high solids.
       There will very likely be no radically new resin binders associated
with high-solids coatings; most are modifications of their low-solids
counterparts.  The coatings can be categorized as either two-component/
ambient-curing or single-component/heat-converted materials.
       The coatings that  are of the most immediate interest are the
two-component/ambient-cure materials; they offer not only a reduced
solvent content but also  a tremendous energy savings since they require
little, if any, baking.   Resin systems being investigated include
epoxy-amine, acrylic-urethane, and urethane.52'53'54'55
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       The heat-converted, high-solids coatings being developed include
epoxy, acylic, polyester, and alkyd.56  Most contain reactive hydroxyls
or carboxyles, which allow cross linking with ami no compounds such as
hexamethoxy methylmelamine.  These coatings are baked at temperatures
similar to their low-solids counterparts - nominally 150 to 175°C (300
to 350°F).
       The most significant problem with high-solids coatings is the high
working viscosity of the solution (i.e., 60 to 80 volume percent).54
The viscosity can be controlled to some degree by reducing the molecular
weight of the base polymer or by using reactive diluents, but these
techniques can result in a greatly altered product with inferior
properties.  A more effective means of reducing viscosity is to heat the
coating during the application. ^
       Heated high solids can be applied as airless, air, or
electrostatically sprayed finishes from heated equipment,55 and can be
roll-coated.  While it is generally agreed that high-solids coatings hold
a great deal of promise, they are still an emerging technology and must be
considered to be still in their infancy.56  Of the approximately 1514
million liters (400 million gallons) of industrial finishes consumed in
1975, less than 1 percent were high solids.57
       Major uses for high-solids coatings are in coil and can
coating.57  High-solids coatings are not used in the automotive industry
at this time.
4.2.6  Carbon Adsorption
       Carbon Adsorption as a technique for solvent recovery has been in
use commercially for several decades.  Applications include recovery of
solvent from dry cleaning, metal degreasing, printing operations, and
                                      4-18

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rayon manufacture58 - as well as industrial finishing.59'60'61  While
the recovery of coating solvents from industrial finishing operations
using adsorption is not without some technical problems, the process is
essentially no different from any other being used for solvent recovery.
       In the automobile and light-duty truck industry, the emissions  of
greatest concern come from two general areas:  spray booths for
solvent-borne primers, guide coats (primer surfacer, used over EDP
primer), and topcoats, and their respective bake ovens.
       Automotive spray booths present unique adsorber design
considerations because of the very high air flow rates that are employed.
Flow rates as high as 94 to 188 cubic meters per second (200,000 to
400,000 cfm) are required for operator safety in manned booths and for
prevention of cross contamination of adjacent car and light-duty truck
bodies from overspray.62'63  According to one report, three adsorbers
6.1 meters (20 feet) in diameter would be sufficient to handle air flows
                  CO
of this magnitude.oc  While no such units are presently in use in the
auto industry, systems of this size have been constructed.64  Lacquers
may require even larger systems.
       One consequence of this high air flow is that the solvent vapors
are diluted to a very low level, normally 50 to 200 ppm, which is
equivalent to or less than 2 percent of the lower explosive limit (LEL).
This low concentration lowers the adsorption capacity of the carbon
thereby necessitating a larger adsorber unit to remove the same quantity
of solvent than from a more concentrated air stream with lower air flow.
Reduction in air flow with increased vapor concentration is technically
feasible, however.  DuPont conducted a study to reduce air flow and  their
results were summarized as follows:65

                                      4-19

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       "By maximizing use of automatic painting, reducing booth length,
       avoiding longitudinal mixing between manual and automatic painting
       zones, and staging of solvent-laden air exhausted from manual zones
       through automatic zones, it has been demonstrated on a commercial
       automotive production line that only close to 10 percent of the
       currently discharged air needs to be treated to meet this 3,000
       Ib/day limitation per source."
       Adsorption systems for spray booth emissions also must be designed
to handle air with a high water vapor content.  This high humidity results
from the use of water curtains on both sides of the spray booths to
capture overspray.  Although carbon preferentially adsorbs organics, water
will compete for available sites on the carbon surface.  Generally the
relative humidity should be kept below 80 percent to minimize this
problem.66
       The exhaust from the spray booths, particularly during periods of
cool ambient temperatures, can reach saturation with moisture.6^  One
solution to this problem would be to preheat the moisture-laden air to
lower the relative humidity to below 80 percent; a 4 to 5°c (7 to 9°F)
heating would be sufficient.68
       Prior to adsorption, particulates from oversprayed coating should
be removed from the air streams, since this material coats the carbon
and/or plugs the interstices between carbon particles.  Such plugging
reduces adsorption efficiency and increases pressure drop through the
bed.  Such particulates can be removed by using either a fabric filter66
or the combination of a centrifugal wet separator plus prefilter and bag
filter.65
                                      4-20

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       Another variable that should be considered in designing  an adsorber
for this application is the potential variability of the solvent systems
between different grades or types of coatings.  Although all automotive
spray coatings contain the same families of solvents (i.e., glycol ethers,
esters, Cg and Cg aliphatics, etc.), the various coatings used  can
differ widely with regard to specific compounds and relative proportions.
Solvent systems therefore differ in their adsorptive characteristics  and,
as a result, their ability to be removed by the adsorber.  On lines where
different coatings are periodically used, adsorbers will probably have to
be overdesigned in adsorptive capacity.
       Ovens are the second major source of solvent emissions.
Approximately 10 to 15 percent of the volatiles from solvent-based
coatings are emitted in ovens.67  The remaining 85 to 90 percent
volatilizes in the spray booth and flash-off  area.
       Individual solvents in a spray booth evaporate at different rates.
The 90 percent of the solvent that is emitted in the spray booth and
flash-off area comprises a large percentage of low boilers, such as
acetone, butanol, toluene, etc.  The 10 percent that remains in the film
as it enters the oven contains, primarily, less volatile solvents.
Therefore, adsorbers for ovens will have to be designed to handle a
different solvent mix than is found with spray booths and flash-off
areas.  High-boiling solvents may not be consistently and completely
stripped during activated carbon regeneration, thus more frequent
replacement of the carbon would be likely.  In any case, hot gas or
superheated steam regeneration would probably be required.69
       In the oven, high temperatures and flame contact can cause
polymerization of the volatiles into high molecular weight resinous

                                      4-21

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materials that can deposit on and foul the carbon bed.  Various high
molecular weight volatiles in the coatings, such as oligomers, curing
agents, or plasticizers, can cause a similar problem.  Filtration  and/or
condensation of the oven exhaust air would be necessary prior to
adsorption in order to remove these materials.
       In order to get satisfactory performance, it will  also be necessary
to cool the oven exhaust to a temperature no greater than 38°C.  Without
cooling, many of the more volatile organics will not adsorb but will pass
through the adsorber. ^»^1
     Carbon adsorption can't be considered as a viable control option at
this time because design of this auxiliary equipment has not been  demon-
strated.

4.2.7   Incineration
4.2.7.1    General
        Incineration is the most universally applicable technique for
reducing the emission of volatile organics from  industrial processes.   In
the  industrial finishing industry these  volatile organic  emissions consist
mostly of solvents made up of carbon,  hydrogen,  and oxygen.   Such  solvents
can  be burned or oxidized in specially constructed  incinerators  into
carbon dioxide and water vapor.
        Industrial incinerators or afterburners are either noncatalytic
(commonly called thermal or direct fired) or catalytic.7^  There are
sufficient differences between these two control methods  to warrant a
separate discussion for each.
                                      4-22

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4.2.7.2    Thermal Incinerators
       Direct-fired units operate by heating the solvent-laden air to near
its combustion temperature and then bringing it in direct contact with a
flame.  A typical unit is shown schematically in Figure 4.2.  In general,
high temperature and organic concentration favor combustion; a temperature
of 760°c (1400°F) is generally sufficient for nearly complete
combustion.
       To prevent a fire hazard, industrial finishing ovens are seldom
operated with a concentration of solvent vapor in the air greater than 25
percent LEL (Lower Explosive Limit).  Ovens in the automobile and
light-duty truck industry achieve concentrations of only 5 to 10 percent
LEL.  These low concentrations are the result of high air flows necessary
to prevent escape of oven gas from oven openings and to prevent
condensation of high-boiling organics on the inner surfaces of the
oven.73
       Although there  is potential for more concentrated air streams from
spray booths (see paragraph 4.2.6), most currently operate at no more than
2 percent of LEL.  Because of the low concentrations from both ovens and
spray booths, auxiliary heating is required to burn the vapors.  Natural
gas combustion usually provides the heat and direct flame contact in
thermal incinerators,  but propane and fuel oil are also used.7^'76
       The quantity of heat to be supplied is dependent on the concentration
of the organics  in the air stream; the higher the concentration the  lower the
auxiliary heat requirement because of the fuel value of the organic.
       For most  solvents the fuel value  is equivalent to 4.45 gram-
kilocalories per cubic meter (0.5 Btu/scf), which translates into a
temperature rise of approximately 15.3°c  (27.5°F) for every percentage

                                      4-23

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                                                         Cooled
                                                         Clean
                                                           Gas
  Process
  Vapors
Gombustor
                    Fan
                   Hot Clean
                     Gas
                                     i
 t
                                        Single-Pass

                                        Heat Exchanger
Stack
      Preheated Process Vapors
 Figure 4-2.   Forced-Draft System eliminating solvent vapors
              from surface coating process 74.
                             4-24

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point of LEL that is incinerated.  For an air stream with a solvent
content of 25 percent of LEL, the contribution from the heat of combustion
of the solvent would be approximately 115 gram-kilocalories per cubic
meter (13 Btu/scf),77 equivalent to a temperature rise of 345°C
(620°F) at 90-percent combustion efficiency.
       If the desired exhaust temperature is 816°C (1500°F), then the
inlet air stream would have to be heated to only 471°C (880°F).  On
the other hand, if the process air contains only 10 percent LEL, as  is  the
case with the exhaust from automobile bake ovens, then the solvent would
contribute only 138°C (280°F) and the air entering the incinerator
would have to be preheated to 679°c (1220°F) in order to  attain the
same final temperature, 817°c (1500°F).
       To make thermal incineration less expensive, heat  transfer devices
are often used to recover some of this heat of combustion.  Primary  heat
recovery is often in the form of a recuperative heat exchanger, either
tube or plate type, which is used to preheat the incoming process vapors
as illustrated in Figure 4.2.78  Units of this type are capable of
recovering 50 to 70 percent of the heat from the original fuel
input.78'79
       A more satisfactory type  of heat recovery device and one that finds
wide use in vapor incineration equipment is the regenerative heat
exchanger, both refractory and rotary plate types.78  Units of  these
types are capable of heat recoveries of 75 to 90 percent.80,81,82   In
some cases secondary recovery is also used to convert additional exhaust
                                                             7ft
heat into process steam or to warm make-up air for the plant.'0
                                       4-25

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       There are several operating parameters that affect the emission
reduction potential of thermal incinerators.  The following are the most
significant ones:
       •   For efficient combustion of the hydrocarbons in the air stream,
           it is necessary to have sufficient temperature and residence
           time in the incinerator.  Figure 4.3 shows the combined effect
           of these two parameters.  Insufficient temperature and/or
           residence time results in incomplete combustion and the
           generation of carbon monoxide.  From the table it can be seen
           that for typical residence times of 0.3 to 1 second
           temperatures on the order of 700°C (1290°F) are ncessary
           for complete combustion to occur.
       t   If the air stream to the incinerator contains sulfur-,
           nitrogen-, or halogen-containing organics there will be a
           secondary pollution problem.  Incineration of these materials
           will produce sulfur and nitrous oxides and acids, such as
           hydrochloric and hydrobromic.  Fortunately, none of the
           solvents used for automotive finishing contain these elements.
       t   Solvent type also can influence incinerator performance.  While
           593 to 677°C (1100 to 1250°F) is adequate to combust most
           solvent vapors, certain organics require temperatures of 760 to
           816°C (1400 to 1500°F) for nearly complete oxidation.72
       In the automobile and light-duty truck industry, the two potential
areas for the use of incinerators are on the spray booths and on the ovens
used for applying and baking body primers, surfacers, and topcoats.
       The use of incinerators on bake ovens presents no significant
problem.  Such add-ons are in place on ovens in several assembly plants,

                                      4-26

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  100
0)
u
o
3
   20
    (316)
(427)
(538)
(649)         (760)

Temperature, 9C(°F)
(871)
(983)
(1094)
         Figure  4-3.  Coupled effects of  temperature and  time on  rate of

-------
particularly in California.83,84,63  Typical emission reduction with
such units is over 90 percent.  Since the air existing the ovens is
generally at a temperature of 120 to 1500C (250 to 300°F), the air
preheating requirements are less than they would be for the exhaust air
from spray booths.
       Incinerators on bake ovens would control approximately 10 percent
of the solvent emissions.  The remaining 90 percent of the volatiles are
emitted in the spray booth.
       Although incineration of the air from spray booths is possible,
there has been no application in the automobile and light-duty truck
industry.  Because of the large air flow in the spray booths, as much  as
94 to 188 cubic meters per second (200,000 to 400,000 cfm), and the
resulting low solvent content of the air, 2 percent LEL or less, large
quantitities of natural gas or equivalent fuel would be required to heat
the vapor-laden air from near ambient to the 700 to 760°C (1300 to
1400op) necessary to effect near complete combustion.
       Reduction of the air flow with a resulting increase in vapor
concentration is technically feasible as was discussed previously in
paragraph 4.2.6.  However, this has not been technically demonstrated  in
the industry.
       To handle the volume of air flow, several large incinerators would
probably be required.  This could present problems of excessive weight and
lack of available space - particularly in cases where an existing source
is being retrofitted.
       There is a potential legal conflict with incineration of spray
booth exhaust air.  NFPA No. 33-1973, Section 4.2, (also OSHA regulation
Part 1910.107 FR, which is similar) specifically prohibits open flames in
                                      4-28

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any spraying area; and Section 1.2 defines a spraying area as:   "(b) The
interior of ducts exhausting from spray processes."  However, Section
4.2.1 states:  "Equipment to process air exhausted from spray operation-
for removal of contaminants shall be approved by the authority having
jurisdiction."  Section 4.2.1 would allow the use of incineration for
spray booth exhaust air so long as the local authority approved.
4.2.7.3  Catalytic Incineration
       This add-on control method makes use of  a metal catalyst  to  promote
or speed combustion of volatile organics.  Oxidation takes place at the
surface of the catalyst to convert organics into carbon dioxide  and
water.  No flame  is required.72
       A schematic of a typical catalytic afterburner is  shown in Figure  4.4.
The catalysts, usually noble metals such as platinum and  palladium, are
supported  in the  hot gas stream so that a large surface area is  presented
to the waste organics.  A variety of designs are available for the
catalyst,  but most units use a noble metal electrodeposited on a high-area
support, such as  ceramic rods or honeycombed alumina pellets.72,85
       As  with thermal incinerators, the performance of the catalytic  unit
is dependent on the temperature of the gas passing across the catalyst and
the residence time.  In addition, the efficiency of the afterburners
varies with the type of organic being oxidized.85  These  effects of
temperature and organic type are shown in Figure 4.5.  While high
temperatures are  desirable for good emission reduction, temperatures  in
excess of  593 to  649°C  (1100 to 1200°F) can cause  serious erosion  of
                                  7? RR
the catalyst through vaporization./d»o;>
                                       4-29

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   Catalyst
   Elements
                                               Process Vapors
                                               Preheater
Figure 4-4.   Schematic Diagram of Catalytic Afterburner using
             torch-type preheat burner with flow of preheated
             process vapors through a fan to promote mixing 77.
                              4-30

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       The use of a catalyst permits lower operating temperatures than are
used in direct-fired units.  Temperatures are normally in the range of 260
to 316°C (500 to 600°F) for the incoming air stream and 399 to 538°C
(750 to 1000°F) for the exhaust.  The exit temperature from the catalyst
depends on the inlet temperature, the concentration of organic, and the
percent combustion.  The increase in temperature results from the heat of
combustion of the organics being oxidized.
       As with thermal incinerators, primary and secondary heat recovery
can be used to minimize auxiliary heating requirements for the inlet  air
stream and to reduce the overall energy needs for the plant (see paragraph
4.2.7.2).  Although catalysts are not consumed during chemical reaction,
they do tend to deteriorate, causing a gradual loss of effectiveness  in
oxidizing the organics.  This deterioration is caused by poisoning with
chemicals, such as phosphorous  and  arsenic, which react with the catalyst;
by coating the catalyst with particulates or condensates; and by high
operating temperatures, which tend  to vaporize the noble metal.  In most
cases, catalysts are guaranteed for 1 year by the equipment supplier,87
but with proper filtration cleaning and attention to moderate operating
temperatures the catalyst  should have a useful life to 2 to 3
       Catalytic  incinerators  have  the  potential  for  reducing  volatile
                                                           on
organic emissions  and  are  used  in the automotive  industry.03
       While catalytic incinerators  can probably  be adapted to baking
ovens with relatively  little difficulty,  the  use  of these  add-ons  for
controlling spray  booth  and flash-off area  emissions  will  present
                                       4-31

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       the same design considerations that were discussed for thermal
       incinerators.  These factors include high air flow, low vapor
       concentration, and the need to incorporate a highly efficient heat
       recovery system in order to minimize the need for  auxiliary heating
       of inlet air.

4.3  EMISSION REDUCTION PERFORMANCE OF CONTROL TECHNIQUES
4.3.1  General
       Emissions can be controlled either through the use of new coatings
or add-on control devices.  The emission reduction associated with add-ons
is related to the ability of the technique to either capture or destroy
the solvent emissions.
       The emission reduction potential for new coatings, however, is
related to the quantity of volatile organic material in the coating before
application and cure.  The relative emissions of any coating can be
expressed quantitatively in terms of the amount of solvent or other
volatile organic compound emitted per unit of dry coating resin applied  to
the substrate.  This can be derived from the weight percent solids of the
coating materials as the ratio of solvent to solids.  Thus relative
solvent emissions are not only dependent on the solids content of the
coating but rise exponentially as the solids content is lowered.^
       An improvement on this method, used here, considers also the
transfer efficiency.  The Relative Solvent Emissions (RSE) of any coating
application method  is also related to the transfer efficiency; i.e., the
percentage of the paint used that actually deposits on the substrate.  For
spray  application,  transfer efficiencies of 30 to 60 percent are normal
                                      4-32

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   100
    80

-------
when using air spray, while electrostatic spray will permit depositions of
60 to 90 percent.  The RSE then can be expressed as:
        RSE = ((% Solvent)(100))/((X Solids)(%Transfer Efficiency))
       In the paragraphs that follow, the following techniques are
discussed:  electrodeposition of water-borne coatings, water-borne spray
coating, powder coating, higher solids coatings, carbon adsorption, and
incineration.  Powder coating and carbon adsorption are included for
information only since they are not considered as currently viable control
options.  Powder coating has not been demonstrated for metallic coatings,
and the technology of carbon adsorption for use in this industry has not
been demonstrated.
4.3.2  Electrodeposition of Water-Bornes
       The electrodeposition process (EDP), as described in paragraph
4.2.2, has four potential sources of solvent emissions:  the coated
substrate as it is baked, evaporation from the surface of the coating  in
the EDP tank, evaporation from the cascading rinse water, and evaporation
from the ultrafilter permeate sent to the drain.
       The coatings on the substrates are approximately 95 percent solids
as they emerge from the bath.  The remaining 5 percent is predominantly
water with only 3 to 5 percent of the volatiles as solvent.9^
Therefore, solvent emissions from this source are quite minimal.
       A likelier source of fugitive emissions is evaporation of solvent
from the rinse water.  During operation, a portion of the coating from the
EDP tank is pumped through an ultrafilter.  The permeate is used for
rinsing, while the coating concentrate is returned to the EDP tank.  Since
ultrafiltration removes nothing smaller than a molecular weight of
                                      4-34

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500,91»92 a significant portion of water-miscible solvents, such as
alcohols and glycol ethers,90 which have molecular weights under 150,
end up in the permeate.
       The permeate is then used for spray rinsing where the high  surface
area of the spray  is conducive to evaporation.  Depending on the water
requirements for the closed-loop system, some of the permeate  is sent to
the drain.  It is  possible that some of the solvent may be lost from the
process and, subsequently, emitted to the atmosphere in this manner.
       Since the quantities of solvent involved with EDP are quite small
by comparison with solvent-borne finishes, there has been no known effort
to quantify these  fugitive emissions.
       Since the discussions have been limited in this chapter to  emission
control techniques rather than overall systems, the impact of  guidecoat or
primer surfacer on the emissions from a typical primer operation have not
been included (see Chapter 6 - Emission Control Systems).
       The RSE, regardless of the source of the emissions, can be  related
to the solvent content of the coating.  Most EDP coatings are  supplied
with an sol vent-to-sol ids ratio of 0.06 to 0.12 by weight.  Since  transfer
efficiency is essentially 100 percent, the RSE is also 0.06 to 0.12.
These RSE translate into percent emission reductions of 97.7 to 99.4
percent when compared against conventional enamels and lacquers (Table 4.2)
4.3.3  Water-borne Spray
       In considering emission reduction for water-borne spray coatings,
it  is necessary to assess the effect of solvent content and solids content
of  the paint as well as transfer efficiency for not only the water-borne
but also the solvent-borne coating that it is replacing.
                                       4-35

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                      TABLE  4.2.  THEORETICAL  EMISSION REDUCTION POTENTIAL
                                   ASSOCIATED WITH VARIOUS NEW COATING  MATERIALS
                                   FOR  USE AS AUTOMOTIVE BODY  COATINGS
                                                                                Percent Emission Reduction
Coating Type and
Percent Solids
By Volume
Solvent-borne
enamel, 28 v/oa
Solvent-borne
lacquer, 16 v/o
Powder coating,
97 to 98 v/o
- Water-borne
i
co
OT Water-borneb, 25 v/o
Water-bornec, 25 v/o
High-solids, 60 v/o
High-solids, 70 v/o
High-solids. 80 v/o
Application
Method
Air spray
Air spray
Electrostatic
spray
Electro-
deposition
A1r spray
Electrostatic
spray
Air spray
Air spray
Air spray
Transfer
Efficiency,
Percent
50
50
98
100
50
65-80
50
50
50
RSE,
Sol vent /Dry
Solids
5.14
10.50
0.021-0.032
0.06-0.12
1.44
up to
0.96
1.33
0.86
0.50
When
Lacquer,
16 v/o
solids
51.0
-
99.7-99.8
98.9-99.4
86.3
up to
90.6
87.3
91.8
95.2
Compared Against:
Enamel,
28 v/o
solids
-
-
99.4-99.6
97.7-98.8
72.0
up to
81.3
74.1
83.3
90.3
a v/o = volume percent
b Assumed 82/18 water/organic solvent ratio by volume
c Assumed 88/12 water/organic solvent ratio by volume

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       Table 4.3 presents four representative comparisons.  If a 25 volume
percent solids water-borne coating with an 82/18 water/organic solvent
ratio by volume, applied by air spray, were used to replace a 28 volume
percent solids solvent-borne enamel, also applied by air  spray; there
would be a potential emission reduction of only 72 percent.  On the other
hand, if a 25 volume percent solids water-borne coating with an 88/12
water/solvent ratio by volume, applied by electrostatic spray, were used
to replace a 16 volume percent solvent-borne lacquer, applied by air
spray; there would be an emission reduction of over 90 percent.
       General Motors estimates that when using an acrylic lacquer
topcoat, its two plants at Van Nuys and South Gate emitted a total of 5.31
million Kg (11.70 million pounds) of solvent per model year2^ from
topcoat alone.  When these plants converted to water-borne topcoats, the
emissions for the topcoating operations were reduced to 1.30 million Kg
(2.86 million pounds)  .  This represents an emission reduction of
approximately 75 percent.
       One coating supplier estimates  that  an emission reduction in the
range of 72 to 84 percent will result  from  substituting water-bornes for
solvent-borne enamels in spray applications.  See Table 4.3.
4.3.4  Powder Coating - Electrostatic  Spray
       There is a tremendous emission  reduction potential  associated with
the use of powder coatings that are nearly  100 percent solids.
       Although powder coatings contain a small amount of volatile organic
material, the quantity does not usually exceed one-half of 1 percent,94
which is equivalent to an RSE of  approximately 0.005.  The volatile
organic emissions can be as high  as 2  to 3  percent from baked polyvinyl
                                      4-37

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               TABLE 4.3.   REDUCTION OF ORGANIC SOLVENT EMISSIONS

                  92,400 Square Meters (1,000,000 Square Feet)
                        Sprayed at 65 Percent Efficiency
                     Approximately 30 Percent Volume Solids

                                          Liters (Gallons) of
        Coating Type                       Organic Solvent        Percenta
                                               Emitted            Reduction

    Conventional enamel                       10,931 (2,888)

    Water-borne, 33 percent                   2,861 (  756)           72
    organic solvent

    Water-borne, 18 percent                   1,560 (  412)           84
    organic solvent

    Source:  SME Technical Paper FC74-639, 1974.  Page 3.

a Further reductions of emissions are possible through the use of
  incineration.  Refer to Chapter 6, page 6-2.
                                      4-38

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chloride and epoxy coatings because of the partial evaporation of
plasticizers and co-reactants, respectively.^5  These percentage losses
translate into RSE of from 0.020 to 0.031.
       With electrostatic spray of powder coatings, the powder that does
not deposit on the part is contained mostly in the spray booth.  With
properly designed equipment, if the over-sprayed powder can be recovered,
overall transfer efficiencies can be as great as 98 percent.  This level
is difficult to reach for automobile or light-duty truck coatings because
of the many colors and the difficulty of segregation.  The RSE when
adjusted for transfer efficiency becomes 0.021 to 0.032.  When compared
against conventional solvent-borne lacquers and enamels, there is a
potential emission reduction of greater than 99 percent (Table 4.2).
4.3.5  Higher Solids Coatings
       To determine the emission reduction potential associated with
higher solids coatings, the RSE of various solids content paints in the
range of 30 to 80 volume percent were compared against the RSE of both
lacquer and solution enamel topcoats (Figures 4.6 and 4.7).   In preparing
these estimates, the transfer efficiency was also taken into
consideration.  Application by air spray (50 percent transfer efficiency)
and electrostatic spray (80 percent transfer efficiency) was  compared
against application of conventional solvent-borne paints with air spray.
       Figure 4.6 shows that if a 16 volume percent solvent-borne lacquer
were replaced by a 35 volume percent solids NAD or solution enamel  (both
applied by electrostatic spray), there would be a potential emission
reduction of nearly 80 percent.
                                      4-39

-------
                 100-
                  80-
               u
               3

               "S
               DC

              . C
                                /I
-t*
OJ
u

Ol
Q.
                  40-
                     20
                   30           40          50           60

                          Volume Percent Solids Content of Coatings
70
00
                        Figure 4-6.  Emission reduction potential  (percent) with use of higher sol Ids
                                    coatings 1n place of 16 volume percent lacquers (50 percent
                                    deposition efficiency).

-------
       At the present most high-solids coatings are being developed to
achieve 70 percent solids or greater.  If the above solvent-borne lacquer
were replaced by a 50-60 percent high-solids coating applied by air spray,
then a potential emission reduction of over 80 percent could be realized.
       Figure 4.7 shows that if a 28 volume percent NAD coating was
replaced by a higher solids coating of 60 volume percent solids, then an
emission reduction of 74 to 84 percent would be possible depending on the
method of application.
       With the relatively high level of solvent dilution that would be
associated with a 50 to 60 volume percent high-solids coating, it is
conceivable that such coatings could be sprayed without heated equipment
and with relatively little modification of existing equipment.
       Further comparisons have been presented in Table 4.2.  If an 80
volume percent high-solids coating were used to replace a 16 volume
percent solvent-borne lacquer, then an emission reduction as great as 95
percent would be possible.
4.3.6  Carbon Adsorption
       Carbon adsorption is being used successfully in the  paper and
fabric industry for controlling solvent emissions. 6>97,98,99  Although
pilot studies have been conducted,10° no full-scale carbon  adsorption
units are in place in the automotive industry at this time.  While it is
generally acknowledged that an emission reduction of 85 percent or better
is possible in the automotive industry for the control of solvent vapors
from spray booths and ovens,101'102'103 this is not off-the-shelf
technology and would require considerable pilot work prior  to use.
                                       4-41

-------
  100
-pt


ro
o
3
•o

&

c
o
m
•I—

E
Ol
o

OJ
a.
                    30
                                               40           50          60

                                         Volume Percent Solids Content of Coatings
         Figure 4-7.   Emission  reduction potential  (percent) with use of higher sol Ids

                      coatings  1n  place of  28  volume percent  enamels (50 percent
                      deposition efficiency).

-------
4.3.7  Incineration
       Incineration is currently being used to control solvent emissions
in such finishing industries as paper, fabric, wire, can and coil coating,
as well as the automotive finishing industry.104'109'75'83"84  Field
investigations indicate that incineration, both thermal and catalytic, is
capable of removing at least 90 percent of the solvents from exhaust air
streams.106'107'84'80'111'112'113
       Catalytic incinerators are  in routine use in the automotive
                      89
industry at this time,   and several bake ovens in Ford Motor Company
plants in California are equipped  with thermal incinerators.  »°'
Typical units operating at 760°C to 815°C (1400 to 1500°F) have
operating efficiencies of at least 90 percent.114
                                      4-43

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                                    4-44

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                              4-45

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                              4-46

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                              4-48

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                              4-50

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                              4-51

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                              4-52

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                               4-53

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      Portage, Indiana.  DeBell & Richardson, Inc., Enfield,
      Connecticut.  Trip Report 80.  March 3, 1976.
110.  Gabris, T. Trip Report - Litho-Strip Company, South Kilburn,
      Illinois.  DeBell & Richardson, Inc., Enfield, Connecticut.
      Trip Report 35.  January 22, 1976.
111.  Fisher, J.R. Trip Report - Supracote, Inc., Cucamonga,
      California.  DeBell & Richardson, Inc., Enfield, Connecticut.
      Trip Report 31.  January 16, 1976.
112.  Gabris, T. Trip Report - American Can Company, Plant 025,
      Edison, New Jersey.  DeBell & Richardson, Inc.,  Enfield,
      Connecticut.  Trip Report 6.  December 29, 1975.
                               4-54

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113.  Kloppenburg, W.B. Trip Report - Chicago Magnet Wire, Elks Grove
      Village, Illinois.  DeBell & Richardson, Inc., Enfield,
      Connecticut.  Trip Report 124.  April 9, 1976.
114.  Sussman, Victor H. Ford Motor Company.  Dearborn, Michigan.
      Letter to James McCarthy, EPA-CTO, dated March 16, 1976.
115.  Scharfenberger, J.A. "New High Solids Coating Equipment Offers
      Eco logy/Energy Advantages."  Modern Plastics.  53_(2) :52-53,
      February 1976.
116.  Price, M.B. "High Solids Coatings - Where Can They Be Used."
      Preprints, NPCA Chemical Coatings Conference, High Solids
      Session.  37, April 22, 1976.
                               4-55

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                 5.   MODIFICATIONS AND RECONSTRUCTIONS

5.1  BACKGROUND
     This chapter identifies and discusses possible or typical  changes to
automobile and light-duty truck surface coating operations which could be
termed modifications or reconstructions.   Modified or reconstructed existing
facilities must comply with standards of performance for new sources.   A
modification is defined as ".  .  .  any physical change in, or change in the
method of, operation of an existing facility which increases the amount of
any air pollutant (to which a standard applies) emitted into the atmosphere
by that facility or which results in the emission of any air pollutant (to
which a standard applies) into the atmosphere not previously emitted."   An
"existing facility" is defined as one which would be required to conform to
a standard of performance, if it were new, but which was, in fact,  con-
structed or modified before the date of proposal of the standard of per-
formance.
     The regulation on modifications requires the owner or operator of any
source—an automobile and light-duty truck surface coating operation in
this case—classified as an "existing facility" to notify EPA of changes
which could cause an increase in emissions of an air pollutant for which a
                               "o
standard of performance applies.    These changes are not "modifications"
(i.e., the existing facility would not have to meet the standards of perfor-
mance) if the owner or operator demonstrates that no increase in emissions
for which a regulation applied resulted from the alteration.
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     The term "reconstruction" is defined as the ". .  .  replacement of a
substantial majority of the existing facility's components irrespective of
any change of emission rate."   Reconstruction occurs when components of an
existing facility are replaced to such an extent that:
     •  The fixed capital cost of the new components exceeds 50 percent
        of the fixed capital cost that would be required to construct a
        comparable entirely new facility, and
     •  It is technologically and economically feasible to meet the appli-
        cable standards.
The purpose of this provision is to discourage the perpetuation of a fa-
cility which, in the absence of a regulation, would normally have been
         4
replaced.    The owner or operator must notify EPA to provide information
concerning the construction or reconstruction of an existing facility.
5.2  POTENTIAL MODIFICATIONS
     The following potential modifications would apply to both passenger
car and light-duty truck body painting operations, since both operations
are similar.   The only real difference is that automobile body lines generally
run faster than light-duty truck lines.   This difference, however, does not
affect the types of changes that might be made to a coating line, the
reasons for the change, or the nature of its impact on emissions.  Therefore,
for purposes of this chapter, the two operations can be considered similar.
     Certain circumstances exist under which an increase in emissions does
not result in a modification.  If a capital expenditure less than the most
recent annual asset guideline repair allowance published by the Internal
Revenue Service (Publication 534) is made to increase capacity at an exist-
ing facility and also results in an increase in emissions of a regulated
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pollutant to the atmosphere, a modification is not considered to have
occurred.
     The following changes in materials or formulations could increase
solvent emissions but would be considered as a change in raw material and,
therefore, not a modification.   If associated capital expenditures exceed
the minimum for reconstructions, the facility could be considered to have
been reconstructed and thus subject to the proposed regulation.
     •    Lower Solids Coatings.  If a change is made from a higher to a
          lower solids coating (e.g., from an enamel to a lacquer), more
          material, and hence more solvent, will be used to maintain the
          same dry coating thickness.  While a change in the direction of
          lower solids is unlikely, it could occur in any one plant as a
          result of changing paint systems, colors, models, or use of
          metallics.  It is unlikely, however, that any major capital
          expenditures to equipment would be required.
     •    Use of Higher Density Solvent.   Regulations normally restrict the
          number of pounds of solvent that can be emitted.   An increase in
          the density of the solvents used, even if the volumetric amounts
          used were the same, would result in more mass of solvent being
          emitted.  Again, this could be construed as a raw material sub-
          stitution and hence not a modification, as no major capital
          expenditures would be involved.  Such substitutions might come
          about as a result of solvent shortages, attempts to cut paint
          costs, or efforts to incorporate less photoreactive solvents.
     •    Increased Thinning of Coatings.  A change to a higher viscosity
          coating could result in an increased use of solvents for thinning
          the coating to proper application consistency.
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     An increase in working hours (i.e., from one- to two-shift operation
or from 8 hours to 10 hours per shift) does not increase solvent emissions
per hour and, hence, is not considered a modification.
     Other possible changes that could result in increased solvent emissions
include:
     •    Change to Larger Parts.  If body size were increased, more coating
          materials could be used per vehicle, hence, emissions could
          increase even if production rates were maintained constant.
          While the overall trend is toward smaller sized automobiles, any
          one facility could switch from a smaller sized automobile to a
          larger model.  It is felt, however, that such a change would not
          qualify as a modification per se, since automobile or light-duty
          truck assembly lines normally can accept more than one size of
          vehicle.
     t    Increased Film Thickness.   A change to a thicker coating, if
          other factors remain constant, could result in increased solvent
          emissions.  An effort is under way in the automotive industry to
          increase corrosion resistance, which could call for increased
          coverage or thicker coatings in corrosion-prone areas.   If these
          changes are made only for the purpose of improved product relia-
          bility, and no increases in production rate occurs, they will
          will not be considered modifications.
     •    Reduced Deposition Efficiency.  Increased overspray because of a
          process modification, such as a switch from electrostatic spray
          to conventional spray, would result in increased emissions.  For
          economic reasons, however, a switch in such a direction is un-
          likely except possibly as a temporary measure.
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     •    Additional  Coating Stations.   If for any reason additional  coat-
          ing stations were added, emissions could increase.   Such a change
          would likely involve costly alterations or a new facility and, as
          such, would be subject to regulation.
     •    Annual Model Changeovers.   Model changes are normally handled
          with existing equipment and do not require process  changes.
          Slight increases in emissions could occur, however, due to a
          change in configuration of the vehicle.  For example, transfer
          efficiencies are usually lower for coating small vehicles than
          for larger ones.  Therefore,  a switch to production of smaller
          vehicles could cause an increase in emissions.   However, such
          changes, made only for model  changeovers and not intended to
          increase production rate,  will not be considered modifications.
     •    Changes in Coating Specifications.  Changes in coating materials
          to produce new colors or surfaces, increase corrosion resistance,
          or otherwise improve the quality of the surface coating, could be
          associated with an increase in solvent emissions.   When these
          coating changes cause an increase in emissions, they will be
          examined by the Administrator on a case-by-case basis to deter-
          mine if they will be considered a modification of an existing
          facility.
     Of the potential modifications listed above, only those  involving
production increases which require excessive capital expenditures will
normally be considered as modifications.  The installation of additional
coating stations is the only change listed which would usually subject the
source to regulation.
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5.3  RECONSTRUCTION
     Automotive spray booths and bake ovens usually last 20 to 25 years and
are normally not replaced before that time unless process changes require
their replacement.    When spray booth and bake oven replacements are made,
however, the capital expenditures involved are normally sufficient to be
considered reconstructions.
     The trend toward electrodeposition (EDP) of water-based primer coatings
may have an impact on the issue of reconstruction.   Both Ford and General
Motors use this system quite extensively, and Chrysler is now considering
it.   International Harvester uses the system for priming light-duty truck
bodies.   Increased corrosion resistance is an advantage of the EDP coating
system and a principal reason for its use; considerably lower solvent
emissions (even with a guidecoat) are an important secondary effect.
Hence, if a primer paint line were to be replaced,  an EDP system would
likely be installed even without emission regulations.  The fact that 50
percent of U.S. passenger car bodies are already prime-coated by this
method would support such a conclusion.  Installation of an EDP system,
however, could be a potential reconstruction due to the costs involved in
adding the tank, bake oven,  and auxiliary equipment.   But, since electrode-
position of water-based coatings achieves the lowest emissions of any
control system identified in Chapter 4 for prime coat operations, any
existing facility that changes to an EDP system should automatically meet a
standard of performance.
                                   5-6

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                       REFERENCES FOR CHAPTER 5


1.   FEDERAL REGISTER, Volume 40, Number 242, "Standards of Performance for
     New Stationary Sources:  Modification, Notification, and Reconstruction,"
     Subpart A, 40 CFR 60.14, Tuesday, December 16, 1975.

2.   Ibid.. Subpart A, 40 CFR 60.7.

3.   Ibid.. Subpart A, 40 CFR 60.15.

4.   Ibid., Reconstruction.

5.   Ibid.. Subpart A, 40 CFR 60.7.

6.   Gabris, T. DeBell & Richardson, Inc., Enfield, Connecticut. Telephone
     conversation with R. Flaherty, Chrysler Corporation.

7.   Gabris, T. DeBell & Richardson, Inc., Enfield, Connecticut.  Telephone
     conversation with T.B. King, International Harvester Corporation.
     March 2, 1977.
                                   5-7

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                       6.   EMISSION CONTROL SYSTEMS
6.1  GENERAL
     Chapter 4 described and evaluated the performance of the individual
emission control technologies which can be used to reduce VOC emissions
from coating operations in the automotive industry.  This chapter identi-
fies alternative emission control systems for typical automobile and light-
duty truck surface coating operations.  A system can be either a coating
material and application technique, an add-on control device, or a combina-
tion of the two.  The choice of the system depends on the particular coating
operation and the desired level of control.
     This chapter presents a number of alternative emission control systems
to be used in analyzing the range of environmental (Chapter 7) and economic
(Chapter 8) impacts associated with various alternative regulatory options.
Primer, surfacer (when used) and topcoat operations are each considered as
separate emission sources.  Surfacer is considered with the topcoat.
Although there are many alternatives for controlling or reducing primer,
guide coat, and topcoat emissions for both automobile and light-duty truck
surface coating operations, only those shown in Table 6-1 were investi-
gated.  These were chosen because they are representative of the options
available.
     The model plant for automobile bodies produces 55 bodies per hour,
3,840 hours per year (basis: 240 days at two 8-hour shifts).  The model
plant for light-duty truck bodies operates at 38 bodies per hour, 3,840
hours per year.  These model plants produce 211,200 automobiles or 145,920
light-duty trucks annually, and are typical  of automotive assembly plants.
                                     6-1

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6.2  BASE CASE
     The application of a water-based primer by electrodeposition (EDP) is
currently in widespread use in the automobile and light-duty truck industry,
primarily because of the increased corrosion protection it affords.   Thus,
EDP is considered the base case for the prime coat.   At the present time
automobile and light-duty truck coating lines usually spray an additional
coat on the vehicles between the primer and the topcoat.   This additional
coat, the primer surfacer, or guide coat, provides a smoother surface for
the topcoat application.  Most plants currently use solvent-based guide
coat and topcoat, and, in the absence of air pollution regulations,  new
plants would likely continue this practice.  Therefore, the use of organic
solvent-based coatings is properly considered the base case for the guide
coat and topcoat operations.
6.3  REGULATORY OPTIONS
     There are three sources of emissions from the coating of automobiles
and light-duty trucks:
     •    Primer
     •    Guide coat or (surfacer)
     •    Topcoat
     For primer, electrodeposited coating is the best control option and
also the best coating.  Therefore, as explained in Section 6.2, this can be
considered the base case.
     For guide coat and topcoat two control methods are available:
     t    Use of water-based coatings
     •    Use of solvent-based coatings with incineration
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Incinerators have been used by some automobile and light-duty truck plants
for ovens, and, although not currently in use, incineration for spray
booths presents no technical problem.
     The availability of these control methods leads to the three regula-
tory options described below:
     •    OPTION I(A) involves the electrodeposition of water-based primer
          and the air spraying of water-based topcoat.   When water-based
          topcoats are used, the surfacer used over the EDP primer is
          normally a water-based coating and is so assumed in this option.
          This option does not include any add-on controls.
     •    OPTION I(B) adds incineration of the guide coat and topcoat
          emissions from the bake ovens to the base case.  The incinerator
          achieves a 90 percent reduction in the VOC concentration of the
          stream passing through it.
     •    OPTION II adds 90 percent effective incineration of the emissions
          from both the spray booths and ovens on the guide coat and topcoat
          operations to the base case.
     Emissions from these options are summarized and compared to the base
case in Table 6-1.  Options I(A) and I(B) achieve between 75 and 80 percent
reduction from the base case, while Option II achieves almost 90 percent
reduction.
                                     6-3

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                                               Table 6-1.  AUTOMOBILE AND LIGHT-DUTY TRUCK COATING LINES -
                                                           EMISSION CONTROL OPTIONS EVALUATED


Emission Control System


Base Case
1. Primer - water-based coatings applied by EDP
2. Guide coat - solvent-based coatings applied by air spray
3. Topcoat - solvent-based coatings applied by air spray
Option I(A)
1. Primer - water-based coatings applied by EDP
2. Guide coat - water-based coatings applied by. air spray
3. Topcoat - water-based coatings applied by air spray
Option I(B)
1. Primer - water-based coatings applied by EDP
2. Guide coat - solvent-based coatings applied by air spray
3. Topcoat - solvent-based coatings applied by air spray with incineration of spray booth and
oven exhaust1
Option II
1. Primer - water-based coating applied by EDP
2. Guide coat - solvent-based coatings applied by air spray with incineration of spray booth and
oven exhaust1
3. Topcoat - solvent-based coatings applied by air spray with incineration of spray booth and oven
exhaust1
Emissions from Model
Plant
(Metric Tons/Year)
Light-Duty
Automobile Truck


1775



373



435




212




1273



278



301




147


% Reduction
From Base Case

Light-Duty
Automobile Truck


—



79



76




88




—



78



76




88


Emissions based on incineration with  90% efficiency.

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                          7.  ENVIRONMENTAL IMPACT

7.1  AIR POLLUTION IMPACT
7.1.1  General
       Automobile and light-duty truck assembly lines are major point
sources of solvent emissions.  Most of these emissions result from  coating
the automobile and/or light-duty truck body on the assembly  line(s) within
the plant.  For example, an automobile assembly line operating 3,840 hours
per year (two 8-hour shifts, 240 days per year) at 55 cars per hour
creates uncontrolled volatile organic emissions from solvent-borne  primer
of approximately 1,000 tonnes (2,200,000 pounds) per year.   Emissions from
solvent-borne topcoat operations of this line add about 1,500 tonnes
(3,300,000 pounds) per year.  This equals slightly more than 10.4 tonnes
(23,000 pounds) of solvent emissions per work day from the total finishing
process.
       In 1973 (a very high production year), U.S. consumption of solvents
in paints and coatings was about 1,900,000 tonnes or 4,190,000,000
pounds.   Of this, approximately 680,000 tonnes (1,500,000,000 pounds)
were aliphatic, and 400,000 tonnes (882,000,000 pounds) were aromatic;1
thus establishing the following solvent distribution for paints and
coatings:
                                    7-1

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                                     Tonnes
               Category              (x 103)       Percent
         Oxygenated solvents           801             42
         Aliphatic hydrocarbons        680             36
         Aromatic hydrocarbons         400             21
         Other                          17              1
                          Total      -1900            100
       In 1973, excluding maintenance coatings and exports,  1247  million
liters (330 million gallons) of industrial finishes were made  and applied
on a variety of products.  Of this 1247 million  liters  of coatings,
170 million liters (45 million gallons) were used  on  automobiles  and
approximately 75 million liters (20 million gallons)  on other
transportation units.  !t is estimated that the  coating of  light-duty
trucks used some 40 million liters (10.5 million gallons) of these
75 million liters.  Solvents included in these 1247 million  liters
(330 million gallons) of industrial product finishes  are estimated at
about 756 million liters or 200 million gallons.
       The objective of New Source Performance Standards is  to  limit the
emission of pollutants by imposing standards that  reflect the  degree of
emission reduction achievable through the application of the best
system(s) of emission reduction, that is (are) determined by the
Administrator to be adequately demonstrated in achieving such  reduction.
Several alternative solvent emission control systems  (hereinafter referred
to as options) have been identified for automobile and  light-duty truck
finishing.
                                    7-2

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       In assessing the environmental  impact and the degree  of  emission
control achieved by each alternative that could serve  as  the basis  for
standards, these alternatives need to  be compared.  Also,  other facets of
environmental impact — such as potential water pollution  and solid waste
generation — need to be assessed.  Similarly, state regulations and
controlled emissions should be considered.  These are  discussed in  the
following paragraphs.
7.1.2  State Regulations and Controlled Emissions
       In August 1971, Los Angeles County in California adopted Rule 66,
Section C, specifying that effective August 31, 1974,  the  maximum
allowable organic non-photochemically  reactive emissions  per facility was
to be 3,000 pounds per day.  The rule  allowed only 40  pounds per day from
sources using photochemically reactive solvents and 15 pounds per day from
ovens under certain circumstances.  Emissions above this  limit  required
control.  This rule was eventually supplanted by a district  regulation
with similar provisions.
       Very few coatings users other than automobile and/or  light-duty
truck assembly plants (and some heavy-duty truck plants)  consume enough
coating to generate more than 3,000 pounds of total solvent  emissions per
day.  The regulation also provides exemptions for 85 percent emission
control and for water-borne coatings where the volatile content  consisted
of 80 percent water, and the solvent was a nonphotochemically reactive
solvent as defined in the regulation.
       As of 1977, only 13 states had  statewide regulations  dealing with
hydrocarbon emissions.  Approximately  half of these states'  regulations
were the same as or similar to Rule 66 of Los Angeles.  These regulations
carefully limited the amount of photochemically reactive  solvent volatiles

                                    7-3

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that could be emitted within a given time period, from  coating
applications, baking ovens, and curing operations in  an automotive plant.
       There are many difficulties in understanding and interpreting  Rule
66-type regulations.  While many states have Rule 66-type  regulations,
many have variations such as in the maximum limit per day. Even  those
states that have the same regulation seem to interpret  it  differently.
The interpretation of the definition of an affected facility has  great
impact on the stringency of a regulation.  The situation is complicated
even more by the simultaneous activity of rewriting state  regulations.
      The economic, environmental, and energy impacts of the proposed stan-
 dards are difficult to assess.   Normally these impacts are expressed as
 incremental differences between a facility complying with a proposed new
 source performance standard and a typical State Implementation Plan  (SIP)
 emission standard.  In the case of automobile and light duty truck surface
 coatings, all of the existing facilities are located in areas which  are
 considered nonattainment areas for purposes of achieving  the National
 Ambient Air Quality Standard (NAAQS) for ozone.   New facilities are  also
 expected to locate in similar areas.
      The states are in the process of revising their SIP's for these areas
 and are expected to include revisions to their emission limitations  appli-
 cable to automobile and light duty truck surface coatings.  EPA has  issued
 a control techniques guideline document on automobile  and light duty truck
 surface coatings which the states are using as a guideline in revising
 their SIP's.  The recommended control systems provided in the guideline
 document are essentially the same as the systems on which the standards
 proposed herein are based.  The actual incremental  impacts of the proposed
 standards will be determined by the final emission limitations adopted by
 the States.  For the purposes of this rulemaking, however, the environmen-
                                    7-4

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tal, energy, and economic impacts of the proposed standards are  based  on
emission control levels contained in existing SIP's.
7.1.3  Uncontrolled and Controlled Emissions (Options)
7.1.3.1  Automobiles
       The following paragraphs discuss which control methods  on certain
processes would allow substantial reductions in solvent emissions.
       The model automobile assembly line produces 55 automobiles  per  hour
and operates two (8-hour) shifts per day.  This line produces  880
automobiles per day or 211,200 automobiles per year (240 work  days  per
year).  This is representative of the industry.
       The worst case assumes that all coatings are solvent-borne,  and no
add-on controls are used.  Primer is 24 percent solids by volume,  and
topcoat is 19 percent solids by volume.  No surfacer is used with  organic
solvent-borne primer.  These amounts, converted into daily emissions,  add
up as follows for the model assembly line:
       Emissions (Volatile Solvents)                    Tonnes Per  Year
       From solvent-borne primer operation                     1,020
       From solvent-borne topcoat operation                    1,489
                                        Total                  2,509
       The base case replaces the solvent-borne primer with an
electrodeposited water-borne primer on the model line.  Primer emissions
are thereby reduced to 37 tonnes or 81,600 pounds per year.  The use of
the solvent-borne surfacer increases primer emissions to 286 tonnes or
631,000 pounds per year.  The emission value for electrodeposition  is
derived from actual plant visits.  The emissions for surfacer  and  topcoat
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are calculated based on the assumption that  an  enamel  with 24 percent
solids by volume is used for both.
       Emissions for the model assembly  line  under  this  base  case are:
       Emissions (Volatile Solvents)                     Tonnes Per Year
       From electrodeposition of water-borne  primer            37
       From solvent-borne surfacer                             249
       From solvent-borne topcoat                           1,489
                                        Total               1,775
       Option 1 replaces the solvent-borne surfacer and  topcoat with
water-borne surfacer and topcoat.  Emissions  for the model  assembly line
under this option are:
       Emissions (Volatile Solvents)                     Tonnes Per Year
       From electrodeposition of water-borne  primer            37
       From water-borne surfacer                                41
       From water-borne topcoat                                295
                                        Total                  373
       Option 2 is identical to the base case except that  emissions  from
the topcoat are incinerated.  Emissions for the model  assembly line  under
this option are:
       Emissions (Volatile Solvents)                     Tonnes  Per Year
       From electrodeposition of water-borne primer             37
       From solvent-borne surfacer                             249
       From solvent-borne topcoat with incineration            149
                                        Total                  435
       Option 3 is identical to the base case except that emissions  from
the surfacer and topcoat are both incinerated.  Emissions for  the  model
plant under this option are:

                                    7-6

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       Emissions (Volatile Solvents)                    Tonnes  Per  Year
       From electrodeposition of water-borne primer             37
       From solvent-born surfacer with incineration             26
       From solvent-borne topcoat with incineration           149
                                        Total                 212
7.1.3.2  Light-Duty Trucks
       The model light-duty truck assembly line produces 145,920 bodies
per year (in 240 workdays).  As in the automobile base case, the model
being discussed here does not represent a specific line nor is  it intended
to indicate that all light-duty truck finishing lines have these
parameters.  This model, however, is typical or representative  of the
industry.
       The worst case assumes that a model plant uses all solvent-borne
coatings.  Primers are 30 percent solids by volume, and topcoat is  28
percent solids by volume.  Emissions are as follows:
       Emissions (Volatile Solvents)                    Tonnes Per  Year
       From solvent-borne primer operation                    649
       From solvent-borne topcoat operation                 1,080
                                        Total               1,729
       The base case replaces the solvent-borne primer with
electrodeposited water-born primer.  A surfacer is required when using
electrodeposition.  Emissions under this base case are:
       Emissions (Volatile Solvents)                    Tonnes Per  Year
       From electrodeposition of water-borne primer             21
       From solvent-borne surfacer                             172
       From solvent-borne topcoat                            1,080
                                        Total                1,273
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       Option 1 replaces the solvent-borne surfacer  and  topcoat  with
water-borne surfacer and topcoat.  Emissions under this  option  are:
       Emissions (Volatile Solvents)                     Tonnes Per  Year
       From electrodeposition of water-borne primer            21
       From water-borne surfacer                               28
       From water-borne topcoat                               229
                                        Total                 278
       Option 2 assumes the base case with incineration  of the emissions
from the topcoat.  The solvent-borne surfacer is 25  percent solids  by
volume.  Emissions under this option are:
       Emissions (Volatile Solvents)                     Tonnes Per  Year
       From electrodeposition of water-borne primer            21
       From solvent-borne surfacer                            172
       From solvent-borne topcoat with incineration           108
                                        Total                 301
       Option 3 assumes the base case with incineration  of emissions from
both the surfacer and topcoat.   Emissions under this option are:
       Emissions (Volatile Solvents)                     Tonnes Per  Year
       From electrodeposition of water-borne primer            21
       From solvent-borne surfacer with incineration           18
       From solvent-borne topcoat with incineration           108
                                        Total                 147
7.1.4  Estimated Hydrocarbon Emission Reduction in Future Years
7.1.4.1  General
       After a record production of 9,667,118 automobiles in 1973, sales
declined in 1974 and 1975.   In  1976 the auto industry staged a comeback
and production returned to over 8 million automobiles, with further gains

                                    7-8

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in 1977 to 9,200,000.  A recent study estimates U.S. production will  be
                         ?1
11 million units in 1985.
       These figures and the yearly emissions (and emission reductions),
that could occur in the coming years as a result of any  standards  set
(based on the alternatives discussed in this section), are discussed  in
the following paragraphs.
       The truck industry manufactures a wide range of vehicles designed
for personal and commercial application.  Different models of vehicles are
classified by gross vehicle weight and body types.  Trucks with gross
vehicle weights up to and including 8500 pounds are included under
light-duty trucks.  Approximately 75 percent of the total truck production
is accounted for by trucks of less than 8500 pounds gross vehicle
weight. 19-29
       As with, the automobile industry, the truck industry was affected by
the recession.  After the record production of 3,007,495 units in  1973,
production slackened in 1974 and 1975.  However, truck production  in  1976
increased 37 percent over 1975 production and exceeded the record  high of
1973 by about 8000 units.22'24  Short-range (to 1980) expansion rates
                                                   22
are projected at approximately 4 percent per annum.    More modest
growth (1 percent average annual rate) is projected for  1980 to 1985.
Based on these figures, light-duty truck production is estimated to reach
2,580,000 in 1979, 2,600,000 in 1980, and 2,740,000 units in 1985.
7.1.4.2  Automobiles
       The technological merits of the electrodeposition of water-borne
primers have been discussed elsewhere in this report.  All indications are
that the automobile industry will continue to explore these advantages.
The expected result is an annual growth of 4 to 5 percent for this

                                    7-9

-------
technology.  Since this would occur even without air pollution  control
regulations, use of electrodeposition is included in the base case.
       Therefore, it can be assumed that by 1979, 60 percent of automobile
primers will be water-borne; and by 1985 a 90 percent conversion will
occur.  The wider use of water-borne primers alone, however, will barely
offset the emissions from uncontrolled topcoats.  Tables 7.1 through  7.4
show projected emission impacts for the years 1979 and 1985 produced  by
alternative pollution control technologies.  These tables show  the effect
of the phase-in of new technology under each option.  It is assumed that 5
percent of the plants per year will come under the new standards.
7U.4.3  Light-duty Trucks
       As with automobiles, it is assumed that electrodeposition of
water-borne primers will be the preferred technology, even if no controls
are used.  Tables 7.5 through 7.8 show the projected emission impacts for
the years 1979 and 1985 produced by the alternative pollution control
technologies.
7.2    WATER POLLUTION IMPACTS
       Water-borne electrodeposited primers are prepared by neutralizing
highly acidic polymers with an alkali (e.g., amines) so that these
polymers can be dissolved or suspended in water.  Small amounts of
solvents are also added to increase the dispersibility of polymers in
water.
       During electrodeposition the solids coat the automobile  or
Hght-duty truck body, leaving alkali coalescing solvents behind in the
dip tank.  These solvents must be removed.  In modern installations,
ultrafiltration is used to automatically remove water-solubles  and
chemical agents that are left behind during the process (see details  in

                                    7-10

-------
       TABLE 7-1.  AUTOMOBILES BASE CASE — EMISSIONS  PROJECTIONS'


Primer
Uncontrolled Solvent-borne
Electrodeposited Water-borne
Surfaced
Uncontrolled Solvent-borne
Water-borne
Topcoat
Uncontrolled Solvent-borne
Water-borne
Totals
1979
% of
Autos
40
60
60
very
small

100
very
small

Emissions
(tonnes/year)
20,090
1,070
7,190
0

72,200
0
-101,000
1985
% of
Autos
10
90
90
very
small

100
very
small

Emissions
(tonnes/year)
5,410
1,730
11,620
0

77,550
0
-96,200
aAssumes no effect of state or local regulations.
''Used with electrodeposition only.
                                    7-11

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        TABLE 7-2.  AUTOMOBILES OPTION 1 — EMISSIONS PROJECTIONS9


Primer
Uncontrolled Sol vent -borne
Electrodeposited Water-borne
Surfaced
Uncontrolled Sol vent -borne
Water-borne
Topcoat
Uncontrolled Solvent-borne
Water-borne
Totals
1979
% of
Autos
40
60
55
5

95
5

Emissions
(tonnes/year)
20,090
1,070
6,590
100

68,600
710
-97,200

% of
Autos
10
90
55
35

65
35

1985
Emissions
(tonnes /year)
5,410
1,730
7,100
750

50,400
5,380
-70,800
aAssumes no effect of state or local regulations.
bUsed with electrodeposition only.
                                    7-12

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        TABLE 7-3.  AUTOMOBILES OPTION 2 — EMISSIONS PROJECTIONS3


Primer
Uncontrolled Sol vent -borne
Electrodeposited Water-borne
Surfaced
Uncontrolled Solvent-borne
Water-borne
Topcoat
Uncontrolled Sol vent -borne
Incinerated Solvent-borne
Totals
1979
% of
Autos
40
60
60
0

95
5

Emissions
(tonnes/year)
20,090
1,070
7,190
0

68,600
360
-97,300
1985
% of
Autos
10
90
90
0

65
35

Emissions
(tonnes/year)
5,410
1.730
11,620
0

50,400
2,720
-71,900
aAssumes no effect of state or local regulations.
      with electrodeposition only.
                                    7-13

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        TABLE 7-4.  AUTOMOBILES OPTION 3 — EMISSIONS PROJECTIONS3


Primer
Uncontrolled Solvent-borne
Electrodeposited Water-borne
Surfacerb
Uncontrolled Solvent-borne
Incinerated Solvent-borne
Topcoat
Uncontrolled Solvent-borne
Incinerated Solvent-borne
Totals
1979
% of
Autos
40
60
55
5

95
5

Emissions
(tonnes/year)
20,090
1,070
6,590
60

68,600
360
-96,800
1985
% of
Autos
10
90
55
35

65
35

Emissions
(tonnes/year)
5,410
1.730
7,100
450

50,400
2,720
-67,800
aAssumes no effect of state or local regulations.
bused with electrodeposition only.
                                    7-14

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    TABLE 7-5.  LIGHT-DUTY TRUCKS BASE CASE — EMISSIONS PROJECTIONS9


Primer
Uncontrolled Solvent-borne
Electrodeposited Water-borne
Surf acerb
Uncontrolled Solvent-borne
Water-borne
Topcoat
Uncontrolled Solvent-borne
Water-borne
Totals
1979
% of
Autos
40
60
60
very
small

100
very
small

Emissions
(tonnes/year)
3,190
160
1,270
0

13,280
0
-17,900
1985
* of
Autos
10
90
90
very
small

100
very
small

Emissions
(tonnes/year)
1,150
340
2,750
0

19,160
0
-23,400
aAssumes no effect of state or local regulations.
bUsed with electrodeposition only.
                                    7-15

-------
     TABLE 7-6.  LIGHT-DUTY TRUCKS OPTION 1 — EMISSIONS PROJECTIONS3


Primer
Uncontrolled Solvent-borne
Electrodeposited Water-borne
Surf acerb
Uncontrolled Solvent-borne
Water-borne
Topcoat
Uncontrolled Solvent-borne
Water-borne

Totals
1979
X of
Autos
40
60
55
5

95
5


Emissions
(tonnes/year)
3,190
160
1,160
20

12,620
140

-17,300
1985
% of
Autos
10
90
55
35

65
35


Emissions
(tonnes/year)
1,150
340
1,680
180

12,460
1,410
I
-17,200
aAssumes no effect of state or local regulations.
bUsed with electrodeposition only.
                                    7-16

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     TABLE 7-7.  LIGHT-DUTY TRUCKS OPTION 2 - EMISSIONS PROJECTIONS3


Primer
Uncontrolled Solvent-borne
Electrodeposited Water-borne
Surfacerb
Uncontrolled Solvent-borne
Water-borne
Topcoat
Uncontrolled Solvent-borne
Incinerated Solvent-borne
Totals
1979
* of
Autos
40
60
60
0

95
5

Emissions
(tonnes/year)
3,190
160
1,270
0

12,620
70
-17,300
1985
% of
Autos
10
90
90
0

65
35

Emissions
(tonnes/year)
1,150
340
2,750
0

12,460
670
-17,400
aAssumes no effect of state or local regulations.
      with electrodeposition only.
                                    7-17

-------
     TABLE 7-8.  LIGHT-DUTY TRUCKS OPTION 3 ~ EMISSIONS PROJECTIONS3


Primer
Uncontrolled Solvent-borne
Electrodeposited Water-borne
Surfaced
Uncontrolled Solvent-borne
Incinerated Solvent-borne
Topcoat
Uncontrolled Solvent-borne
Incinerated Solvent-borne
Totals
1979
% of
Autos
40
60
55
5

95
5

Emissions
(tonnes/year)
3,190
160
1,160
10

12,620
70
~17,200
1985
X of
Autos
10
90
55
35

65
35

Emissions
(tonnes/year)
1,150
340
1,680
110

12,460
670
-16,400
aAssumes no effect of state or local regulations.
bUsed with electrodeposition only.
                                    7-18

-------
Section 7.3).  Effluent originating from a properly operated
ultrafiltration unit can be adequately handled  in municipal or  in-house
sewage treatment facilities.
       Pollution can result if the electrocoating system  allows  rinse
water and/or coating to drip or be spilled on the floor and the  rinse
and/or clean-up water is not. automatically placed in  a reservoir for
treatment.  Dragout is especially important in  this instance.  At the  end
of the coating operation, the dipped body is covered  with  an  additional
film of adhering paint called dragout.  This film is  more  porous than  the
electrodeposited coating; therefore, it is usually rinsed  off.   Dragout
also occurs as the body leaves the dip tank.  All dragout  is  returned  to
the dip tank or the ultrafiltration system.
       Surfacer and topcoats are both applied by spraying.  Spraying
operations are carried out in spray booths.  With increased attention  to
air pollution, the efficiency of particulate removal  from  spray  booths is
of great importance to the automotive industry.  Consequently, waterfall
type spray booths of advanced design are becoming more and more  prevalent.
       Regarding the amount of overspray in a given automotive finishing
operation, expert opinions and estimates vary over a  very  wide range.  The
reason for this is the high dependency of this  operation on personal
efficiency; a given operator may work with a high or  low overspray
percentage from one occasion to the next.  Estimates  for overspray run
                               9  13
from 20 percent to 50 percent*. '     As an average,  35 percent  is taken
*Chrysler, realizing the contradictory nature of these figures, puts  it  at
 50 percent as a rule of thumb.
                                    7-19

-------
as realistic for overspray, with the understanding  that  water-borne
topcoats tend to yield a higher amount of overspray than do  their
solvent-borne counterparts.
       Waterfall type booths remove overspray coating  particles  by means
of a flow of water passing down the face of  a sheet of steel  located at
the rear and/or sides of the booth — the so-called waterfalls.   These
waterfalls flow between 25 and 50 gallons per minute per foot.     Thus,
a 20-foot section would have a water flow of approximately 600 gallons per
       14
minute.    In actual practice, this means that  a  spray booth  180 feet
long would need between 4,500 and 9,000 gallons of  water per  minute.   A
typical finishing line with four spray booths would need between 18,000
and 36,000 gallons of water per minute.
       Solvent-borne topcoats and their overspray are  composed primarily
of solvents, which separate readily from water.   Water-borne  topcoats,
however, are made with water-miscible solvents  to assure good suspension
of the resin binder into the water phase of  the coating.  These  various
water-miscible solvents (glycols, and certain esters and alcohols)  in
water-borne coatings are extremely miscible  with  water and actually act as
coupling agents between suspended particles  and the water.
       The problem with solvents in water is the  chemical oxygen demand
(COO).  COD Is not, strictly speaking, a pollutant.  It  is a  problem,  and
consequently a pollutant, only if it is discharged  to  a  stream in
sufficient concentration and quantity to deplete  the oxygen in the  stream
and, thereby, affect fish and other aquatic  life.   Almost all assembly
plants discharge spray booth effluent, following  solids  removal,  to
municipal sewers — some of which have restrictions  on COD.   The effluent
                                    7-20

-------
from the two General Motors (California) plants using water-borne  topcoats
is acceptable to sewer authorities.  If necessary,  treatment  can be used
tp lower the COD.
       No water pollution impact is associated with the  other emission
control systems considered as options.
7.3  SOLID WASTE DISPOSAL IMPACT
       Water-borne primer EDP operations can have  impact on solid  waste
disposal.  In older installations the dragout and  rinse  were  discarded,
resulting in a waste disposal problem.  This also  causes coating loss.
Improvements have been made, however,.to reduce coating  loss  by returning
the coating to the dip tank.
       In modern operations, ultrafiltration is used to  automatically
remove the amine(s), solvents, and water-solubles, which are  left  behind
during the electrocoating.  Consequently, it is possible to set up almost
a completely closed system with practically no waste problem.
       Once a year there is a regular cleaning of  the ultrafiltration
system.  Otherwise, cleaning is not needed except  on such  occasions as
when a paper cup or other foreign object is aceidently dropped into the
dip tank.  Such a minor cleaning job, however, does not  involve more than
a few gallons of paint.
       There are no serious solid waste disposal problems  associated with
electrocoating.  Sludge may develop in the dip tank, leading  to a  minor
solid waste disposal problem; however, sludge is generally the result of
improperly controlled chemistry in the tank or poor housekeeping (such as
• »
allowing parts to accumulate in the tank).  In any case, the  amount of
such solid waste is not excessive.
                                    7-21

-------
       Estimates of the exact amounts and compositions of the  sludge  by
various automotive Industry spokesmen vary over a wide spectrum.   This  Is
especially true for water-borne topcoats.
       There are some basic differences between the treatment  of sludge
from solvent-borne coatings and that of water-borne topcoats.  Sludge from
water-borne topcoats, in order to break the suspension system  and  to
remove the particles, is treated with slightly acidic compounds like
calcium acetate at a pH of 3-4.    Ultrafiltration could be used to
remove the colloidal particles, but this method is an expensive solution
to the problem.
       Actually, the solid waste problem associated with the use of
water-borne coatings is minor when compared with the solid waste
considerations of the total automotive plant.  There is little solid  waste
impact associated with alternatives other than water-borne coatings.
7.4  ENERGY IMPACT
       Automobile and light-duty truck coating operations consume
significant amounts of energy.  With the exception of catalytic
incinerators — with primary and secondary heat exchangers used on the
curing oven — all alternative emission control systems require additional
energy.  The chief adverse effect of incinerating spray booth exhaust is
the high energy consumption.
       The energy impacts associated with each of the alternative emission
control systems outlined in Chapter 6 and discussed in this Chapter are
summarized in Tables 7-9 through 7-16.  These tables are a compact
representation and summary of energy balances prepared for the purpose of
comparing the energy required for a base-case finishing model to the
                                    7-22

-------
  TABLE 7-9.   ENERGY BALANCE  — BASE CASE  MODEL  AND  PROCESS MODIFICATION
                             Automobile Body Primer Application
Model Description
Solvent-borne primer spray
Base case —
Electrodeposition of
water-borne primer with
solvent-borne surfacerC
Option to base case —
Electrodeposition of
water-borne primer with
water-borne surfacerC
Energy Requirements/211,200 Cars a
Primer
Application
Electricity
kw-hr
1,516,759
7,339,035
8,052,420
Primer Cure Oven
Electricity
kw-hr
383,827
756,045
997,660
Fuel
106 Btu
72,349
142,350
162,600
Total Energy
Requirements
106 Btu
91,354"
223,300
253,101
a211,200 cars -- the yearly output of a model finishing line
bSample calculation:  (1,516,759  kw-hr x 10,000 Btu/kw-hr) + (383,827 kw-hr x
                    10,000 BtuAw-hr) + 72,349 x Ifl6 Btu = 91,354 x 10* Btu.
cEnergy values include energy associated with the surfacer.
                                          7-23

-------
        TABLE  7-10.   ENERGY  BALANCE -- ADD-ON  EMISSION  CONTROL SYSTEMS

                               Automobile Body Primer Application
Model Description
Incinerator on oven only, 10X LEL
Thermal ~ primary heat exchanger
Thermal — primary and secondary
heat exchanger
Catalytic ~ primary heat
exchanger
Catalytic -- primary and
secondary heat
heat exchanger
Incinerator on spray booths onlyd
Thermal — primary heat recovery
Catalytic — primary heat
recovery
Energy Requirements/211,200 Cars a
Emission Control Equipment
Primer Application
Electricity
kw-hr

—
~
«


2,977,920
3,146.880
Fuel
106 Btu

. —
~
—
—

1,267,200
464,640
Primer Cure Oven
Electricity
kw-hr

69,120
80,640
72,960
84,480

—
~
Fuel
106 Btu

9,600
3,070b
1,536
(2,304)c

—
—
Total Energy
Requirements
106 Btu

10,291
3,876
2,266
(1,459)

1,296.979
496,109
a211,210 cars — the yearly output  of a model finishing line
^Energy credit from secondary heat  recovery is included.
cThe parentheses indicate that the  shown amount of energy is a credit.
      not  include energy for comfort heating of spray booth air
                                             7-24

-------
   TABLE  7-11.   ENERGY BALANCE —  BASE CASE MODEL  AND PROCESS MODIFICATION




                            Automobile Body Topcoat Application
Model Description
Base Case —
Solvent-borne spray topcoat
Option to Base Case —
Waterborne-spray topcoat
Energy Requirements/211,200 Cars *
Topcoat
Application
Electricity
kw-hr
3.901,555
6,506,737
Topcoat Cure Oven
Electricity
kw-hr
990,624
1,662,798
Fuel
106 Btu
186,041
238,130
Total Energy
Requirements
106 Btu
234,963
319,825
a211,200 cars -- the yearly output of a model  finishing line
                                        7-25

-------
        TABLE  7-12.   ENERGY  BALANCE  — ADD-ON  EMISSION  CONTROL SYSTEMS
                                 Automobile Body Topcoat Application
Model Description
Incinerator on oven only, 10X IEL
Thermal ~ primary heat exchanger
Thermal -- primary and secondary
heat exchanger
Catalytic -- primary heat
exchanger
Catalytic -- primary and
secondary heat
heat exchanger
Incinerator on spray booths onlyd
Thermal -- primary heat recovery
Catalytic — primary heat
recovery
Energy Requirements/211,200 Cars a
Emission Control Equipment
Primer Application
Electricity
kw-hr

--
~
—
~

4,060,800
4,273.920
Fuel
106 Btu

—
«
—
--

1,728,000
633,600
Primer Cure Oven
Electricity
kw-hr

99,840
115,200
103,680
122,880

—

Fuel
106 Btu

13,440
3,840^
2,380
(3.380)C

--
—
Total Energy
Requirements
106 Btu

14,438
4,992
3,417
(2,151)

1,768,608
676,339
•211,210 cars — the yearly output  of a model finishing line
^Energy credit from secondary heat  recovery is included.
cThe parentheses indicate that the  shown amount of energy is a credit.
dDoes not include energy for comfort heating of spray booth air
                                                7-26

-------
TABLE 7-13.  ENERGY  BALANCE —  BASE CASE MODEL AND PROCESS  MODIFICATION
                        Light-Duty Truck Body Primer Application
Model Description
Solvent-borne primer spray
Base Case --
Electrodeposition of
Mater-borne primer
water-borne surfaced
Option to Base Case —
Electrodeposition of
water-borne primer
water-borne surf acerb
Energy Requirements/145,920 Trucks3
Primer
Application
Electricity
kw/hr
1,240,258
5,153,750
5,8.12,760
Primer Cure Oven
Electricity
kw/hr
349,253
678,250
818,240
Fuel
106 Btu
36,325
82.000
92,100
Total Energy
Requ i rements
106 Btu
52,221
140,321
158.410
   a!45,920 trucks — the yearly output of a model finishing line
   ^Energy values include energy associated with the surfacer.
                                       7-2i7

-------
       TABLE 7-14.   ENERGY BALANCE  — ADD-ON EMISSION CONTROL SYSTEM
                         Light-Duty Truck Body Primer Application
Model Description
Incinerator on oven only,
10 X LEL
Thermal — primary heat
exchanger
Thermal — primary and
secondary heat
exchanger
Catalytic -- primary heat
exchanger
Catalytic -- primary and
secondary heat
exchanger
Incinerator on spray booths
Thermal — primary heat
recovery
Catalytic — primary heat
recovery
Energy Requirements/145,920 Trucks3
Primer Application
Electricity
kw/hr

«
~
--
—

1,739,904
1,825,152
Fuel
106 Btu

~
—
~
~

748,800
278,784
Primer Cure Oven
Electricity
kw/hr

46,080
53,760
53,760
61,440

_.
—
Fuel
106 Btu

6,720
2,120t>
1,152
(960)C

__
—
Total Energy
Requirements
106 Btu

7,181
2,658
1,690
(346)

766,199
299,035
a!45,920  trucks -- the  yearly output of  a model finishing  line
"Energy credit from secondary heat recovery is included.
     parentheses indicate that the shown amount of energy  is a credit.
      not include energy for comfort heating of spray booth air
                                        7-28

-------
TABLE 7-15.   ENERGY  BALANCE — BASE CASE  MODEL  AND PROCESS MODIFICATION
                       Light-Duty Truck Body Topcoat Application
Model Description
Base Case
Sol vent -borne spray
topcoat
Option to Base Case
Water-borne spray topcoat
Energy Requirements/145, 920 Trucks3
Primer
Application
Electricity
kw/hr
3,179,607
5,314,920
Primer Cure Oven
Electricity
kw/hr
«98,329
1,499,080
Fuel
106 Btu
93,405
96,291
Total Energy
Requirements
106 Btu
134,184
164,431
  a!45,920 trucks — the yearly output of a model  finishing  line
                                       7-29

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      TABLE  7-16.   ENERGY  BALANCE  — ADD-ON  EMISSION  CONTROL  SYSTEMS


                        Light-Duty Truck Body Topcoat Application
tl
Model Description
Incinerator on oven only,
10 1 LEL
Thermal — primary heat
exchanger
Thermal — primary and
secondary heat
exchanger
Catalytic — primary heat
exchanger
Catalytic -- primary and
secondary heat
exchanger
Incinerator on spray booths
Thermal — primary heat >
recovery
Catalytic — primary heat
recovery
Energy Requirements/145,920 Trucks3
Primer Application
Electricity
kw/hr

—
--
—
—

2,977,920
3,134,208
Fuel
106 Btu

T™
—
—
~

1,267,200
464,640
Primer Cure Oven
Electricity
kw/hr

69,120
80.640
72,960
84,480

._
--
Fuel
106 Btu

9,600
3,070°
1,536
(2,304)0

..
—
Total Energy
Requirements
106 Btu

10,291
3,876
2,266
(1,459)

1,296,979
495,982
>145,920  trucks -- the yearly output of a model finishing  line
^Energy credit from secondary heat recovery  is included.
CThe parentheses indicate  that the shown amount of energy  is a credit.
^Does not include energy for comfort heating of spray booth air
                                         7-30

-------
energy required when pollution reduction coatings and/or  add-on  emission
controls are used.
7.5  OTHER ENVIRONMENTAL IMPACTS
       Electrodeposited water-borne coatings contain amines  that are
driven off during the curing step.  Some plants have found  it  necessary to
incinerate the oven exhaust gas to eliminate the visible  emission  and
malodors associated with these amines; whereas, other plants have
                                         e  •)•)
installed scrubbers for the same purpose. '
       No other environmental impacts are likely to arise from standards
of performance for automobile or light-duty truck coating operations,
regardless of which alternative emission control system is  selected as  the
basis for standards.
7.6  OTHER ENVIRONMENTAL CONCERNS
7.6.1  Irreversible and Irretrievable Commitment of Resources
       The alternative control systems will require the installation of
additional equipment, regardless of which alternative emission control
system is selected.  This will require the additional use of steel and
other resources.  This commitment of resources will be small compared to
the national usage of each resource.  A good quantity of  these resources
will ultimately be salvaged and recycled.  There are expected  to be no
significant amounts of space (or land) required for the installation of
control equipment and/or new coating technology, because  all control
systems can be located within little additional space.  Therefore, the
commitment of land on which to locate additional control  devices and/or
application equipment is expected to be minor.
                                    7-11

-------
       As has been noted, the use of primary  and  secondary heat recovery
                                          •
Mould enhance the value of Incineration.  Without heat  recovery,
significant energy would be lost.
7.6.2  Environmental Impact of Delayed Standards
       Delay of standards proposal for the automobile and/or  light-duty
truck industry will have major negative environmental effects  on  emissions
of hydrocarbons to the atmosphere and minor,  or no, positive  impacts  on
water and solid waste.  Furthermore, there does not appear to  be  any
emerging emission control technology on the horizon that could achieve
greater emission reductions or result in lower costs than  that represented
by the emission control alternatives under consideration here.
Consequently, delaying standards to allow further technical developments
appears to present no trade-off of higher solvent emissions in the  near
future for lower emissions in the distant future.
7.6.3  Environmental Impact of No Standards
       Growth projections have been presented in  earlier sections.  It is
obvious that the increased production of automobiles and light-duty trucks
will add to national solvent emissions.
       There are essentially no adverse water and solid waste  disposal
Impacts associated with the alternative emission  control systems  proposed
1n this section.  Therefore, as in the case of delayed  standards, there  is
no trade-off of potentially adverse impacts in these areas against  the
negative result on air quality which would be inherent with not setting
sTandards.
                                    7-32

-------
7.7    REFERENCES
       1.  less, Roy W. "Chemistry and Technology of Solvents; Chapter 44
           1n Applied Polymer Science."  American Chemical Society,
           Organic Coatings and Plastics Division. 1975.
       2.  DeBell and Richardson Trip Report 102.
       3.  DeBell and Richardson Trip Report 110.
       4.  OeBell and Richardson Trip Report 9.
       5.  DeBell and Richardson Trip Report 112.
       6.  Strand, R. C.  "Waterborne Coatings in Metal Packaging."  Paper
           presented at NPCA Chemical Coatings Conference, Cincinnati,
           Ohio (April 23, 1976).
       7.  Prane, J. W. "Waterborne Coating Usage ~ Current and Future."
           Paper presented at NPCA Chemical Coatings Conference,
           Cincinnati, Ohio (April 23, 1976).
       8.  Brown, R. A. "Water as a Compliance Coating — EPA/OSHA/Waste
           Disposal."  Paper presented at NPCA Chemical Coatings
           Conference, Cincinnati, Ohio (April 23, 1976).
       9.  DeBell and Richardson Trip Report 56.
       10. DeBell and Richardson Trip Report 5 (Overprint Varnishing).
       11. EPA Trip Report by V. N. Gallagher (call made with T. Gabris,
           September 26,  1975).
       12. DeBell and Richardson Trip Report 3.
       13. One of the estimated figures given to T. Gabris by Ford Motor
           Company representative.
       14. Gabris, T. Telephone interview with George Koch Sons, Inc.,
           Evansville, Indiana (October 29, 1976).
       15  DeBell and Richardson Trip Report 120.
       16. Gabris, T.  Telephone conversation with one of the California
           General Motors plants (October 29, 1976).
       17. Gervert, Phil.  General Motors Water Pollution Section,
           November 2, 1976.
       18. DeBell & Richardson, Enfield, Connecticut.  Second Interim
           Report to EPA to Contract 68-02-2062.  Air Pollution Control
           Engineering and Cost Study of the Transportation Surface
           Coating Industry.
       19. Auto News.  1975 Almanac Issue (April 23, 1975).  Page 55.
       20. Auto News (June 28, 1976).
       21. DeBell & Richardson, Enfield, Connecticut.  Plastics in the
           Automotive Industry., 1975-1985.
       22. DeBelland Richardson Trip Report 13.
       23. Product Finishing.   June 1976.  Page 166.
       24. Automotive News, Yearbook Issue, 1978.
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                        8.0  ECONOMIC IMPACT

       Chapter 8 contains four sections.  In section one, the role of the
motor vehicle industry in the U.S. economy and the structure of the industry
are described.  Two segments of the motor vehicle industry, passenger cars
and light-duty trucks, are identified and characterized.  Several aspects
of the two segments are discussed:  geographic distribution, concentration
and integration, import/export considerations, demand determinants, price
determination, price leadership, price uniformity, non-price considerations,
price-cost relationships, projected demand, determination of existing capa-
city and of projected capacity needs.
       In the second section, control costs and cost effectiveness for alter-
native VOC control systems are developed.  Included are costs for controls of
three variations of line speed for cars, and for light-duty trucks.
       Section three describes briefly other cost considerations and their
impact on the economic analysis of hydrocarbon emission control systems.
       In the final section, the economic impact of alternative emission
control systems is analyzed.  Included is an assessment of relative control
oust magnitudes and their impact on prices in the industry.
       The major conclusion of Chapter 8, is that the economic impact of
each considered alternative control system is small and that the cost of
NSPS should not preclude construction of new grass roots assembly lines.
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8.1    Industry Economic Profile
8.1.1  Role of Motor Vehicle Industry in the U.S. Economy

       The motor vehicle industry* occupies a key pivotal position in the
U.S. economy.  As a substantial consumer of steel, rubber, iron, aluminum,
copper, zinc, lead, and glass, it determines to a certain extent the economic
viability of these major U.S. manufacturing industries.  In addition, the
marketing and servicing of motor vehicles has created an infra-structure
equally essential to other segments of the domestic economy, such as the
petroleum industry.
       About 2% of the Gross National Product and about 14% of the national
income from durable goods is generated by the motor vehicle industryJ
According to a recent report by a Federal task force, the industry provides
direct employment for 955,000 members of the U.S. labor force.  The magnitude
of indirect employment is even more substantial; an additional 3.4 million
Americans owe their livelihood, at least in part, to the existence of the
motor vehicle.2
       As a result of increased governmental requirements regarding environ-
mental, safety, and fuel economy standards, the motor vehicle industry has
entered a period of unprecedented technological change.  Concommitantly,
strong competition is present from the import sector of the market.  The
ability of the industry to cope with these and other exogenous constraints,
*The term "motor vehicle industry" is used in this section to denote machine
tool, parts and components, and assembly segments of the industry, regardless
of vehicle type; in the following sections of this chapter the vehicle types
considered are only passenger cars and light trucks, and the industry seg-
ments are broadened to include marketing and servicing.
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such as changes in consumer taste, will determine whether the present role
of the motor vehicle industry remains the same or is altered.

8.1.2  Structure of the Industry
8.1.2.1  Coiicentration

       The production of automobiles and light-duty trucks in the United
States represents one of the nation's most concentrated industries. Three
companies, General Motors Corporation, Ford Motor Company, and Chrysler
Corporation, have accounted for most of the industry's production almost
since its inception.  The merger of two independents in 1954 resulted in
the formation of American Motors Company, which subsequently became the
fourth-ranking firm in the industry.  Whether measured by capitalization,
sales, profits, breadth of product line, or number of distribution outlets,
General Motors is the dominant firm in the industry, followed by Ford,
Chrysler, and American Motors, in that order.
       Historically, many other firms have attempted to enter the market
but have not been successful in the long-run.  Checker Motors, Interna-
tional Harvester, and Volkswagen currently participate in the market, but
only on the periphery.
       The automobile and light-duty truck industry is of such magnitude
that it could conceivably accomodate a number of competitive firms in its
structure.  The fact that four firms have consistently comprised almost
the entire industry suggests that they have acquired resources that have
not only permitted them to survive, but have also forestalled the success-
ful entry of other firms into the industry. However, a Canadian task force
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reviewing the North American automotive industry reached the conclusion
that there is no evidence that there has been any attempt to limit compe-
tition despite the fact that it is virtually impossible for a new company
to enter the motor vehicle market because of very high development and
start-up costs.3  Nevertheless, the degree of vertical and horizontal
integration present within the industry reflects the influence of these
resources.

8.1.2.2  Integration
                                                i
       Vertical integration within the industry is obvious and well-defined,
Pre-production integration for some of the firms extends as far as captive
iron and steel foundries, which provide the raw materials for component
parts. Integration at the production level is largely achieved through
captive establishments that supply many of the engines, transmissions,
fabricated parts, and other major components required for body and final
assembly. Post-production integration extends to franchised dealers who
distribute the product and to subsidiary companies that finance consumer
purchases.  Post-market integration exists in the form of franchised repair
and supply facilities.
       Horizontal integration is reflected in the firms' interests in the
manufacture of non-automotive products such as boats and farm equipment.
Revenue from these activities does not constitute a significant portion
of total revenues, however.
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8.1.2.3  The U.S.-Canada Automotive Agreement

       The working relationship between the United States and Canada that
began with implementation of the U.S.-Canada Automotive Products Agreement
in 1965, in essence established a free trade zone between the two countries.
It allowed the then-established U.S. automotive firms freedom of access to
Canadian labor and consumer markets, and, through restrictive clauses in the
Agreement, ensured the perpetuation of the Canadian automotive* industry.  In
effect, only General Motors, Ford, Chrysler, and American Motors are partici-
pants in the Agreement; Canada holds the right to impose tariffs on any other
firms seeking to establish trade in the Canadian sector.  To the extent that
Canada chooses to exercise that right, Volkswagen's entry into the Canadian
sector of the industry is constrained.  The Agreement has no time limit, but
either government may terminate it on 12 months' notice.  The net effect of
the Agreement has been to provide an integrated North American motor vehicle
industry and market.  Consideration of the U.S. domestic motor vehicle indus-
try in this study takes into account available Canadian resources and the
reciprocal drain on U.S. production by Canadian demand.

8.1.2.4  Geographic Distribution

       At the beginning of 1978, passenger cars and light-duty trucks** were
 *The term "automotive industry" as used here includes both automobile and
  truck production.
**The term "light-duty truck" is defined in Chapter 3 of this report as: "all
  vehicles with ratings of 8,500 pounds or less GVW".  Included in this classi-
  fication are pick-up trucks, vans, panel trucks, station wagons built on pick-
  up truck chassis, multi-stop trucks, and off-road vehicles.
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being assembled at 51 and 31 locations, respectively, in the United States
and Canada.  Total reported outputs from these plants in 1977 were 10,095,364
passenger cars and 3,455,504* light-duty trucks.4  A listing of North American
passenger car assembly locations by firm, is shown in Table 8-1 and light-duty
truck locations, by firm, in Table 8-2.
       Traditionally, production facilities have been centered in the Great
Lakes region because of the availability of transportation for component
parts to production facilities, and for finished products from production
facilities.  However, differentials in labor costs and overhead have resulted
in more recently built plants being located in non-traditional areas such as
the southwestern part of the United States.
       Recent industry growth continues to follow this pattern.  Volkswagen.,
a newcomer to the domestic passenger car industry, began operations in New
Stanton, Pennsylvania in March of 1978.  In Oklahoma, General Motors has
begun construction of its first new car assembly plant in 14 years.  This
plant is scheduled to become operational for model-year 1980.  Another
plant being constructed by General Motors in Shrevesport, Louisiana, is
expected to be producing light-duty trucks by 1981.
       Extensive retooling of existing plants by several of the firms in
the industry is planned in response to the need for compliance with energy,
safety, and environmental standards set by the government.
*Lack of specificity in Canadian data required estimation of light-duty
 truck  production.  This figure assumes light-duty truck production to
 be 90% of total truck.production.
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                              Table 8-1

              NORTH AMERICAN AUTOMOBILE ASSEMBLY LOCATIONS

                                1977
Manufacturer

General Motors Corporation
Plant Location

Arlington, Texas
Baltimore, Maryland
Detroit, Michigan
Doravilie, Georgia
Fairfax, Kansas
Flint, Michigan (2)
Framingham, Massachusetts
Fremont, California
Janesvill.e, Wisconsin
Lakewood, Georgia
Lansing, Michigan
Leeds, Missouri
Linden, New Jersey
Lordstown, Ohio
Norwood, Ohio
Pontiac, Michigan
South Gate, California
St. Louis, Missouri
N. Tarrytown, New York
Van Nuys, California
Willow Run, Michigan
Wilmington, Delaware
Oshawa, Ontario
St. Therese, Quebec
Ford Motor Company
Atlanta, Georgia
Chicago, Illinois
Dearborn, Michigan
Kansas City, Missouri
Lorain, Ohio
Los Angeles, California
Louisville, Kentucky
Mahwah, New Jersey
Metuchen, New Jersey
San Jose, California
St. Louis, Missouri
Twin Cities, Minnesota
Wayne, Michigan
Wixom, Michigan
Oakville, Ontario
St. Thomas, Ontario
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                         Table 8-1 (continued)
Manufacturer

Chrysler Corporation
American Motors Company
Checker Motors Company
Plant Location

Belvidere, Illinois
Hamtramck, Michigan
Detroit, Michigan (2)
Newark, Delaware
St. Louis, Missouri
Windsor, Ontario

Kenosha, Wisconsin
Brampton, Ontario

Kalamazoo, Michigan
Source:  Ward's Automotive Yearbook, 1978.
                                      8-8

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                              Table 8-2

          NORTH AMERICAN LIGHT-DUTY TRUCK ASSEMBLY LOCATIONS

                                 1977
General Motors

Arlington, Texas
Baltimore, Maryland
Doraville, Georgia
Fremont, California
Janesville, Wisconsin
Lakewood, Georgia
Leeds, Missouri
Lordstown, Ohio
St. Louis, Missouri
Flint, Michigan
Oshawa, Ontario
Scarborough, Ontario
American Motors

Toledo, Ohio
South Bend, Indiana*
International Harvester

Fort Wayne, Indiana
Ford

Atlanta, Georgia
Avon Lake, Ohio
Kansas City, Missouri
Lorain, Ohio
Louisville, Kentucky
Mahwah, New Jersey
Wayne, Michigan
San Jose, California
Norfolk, Virginia
Ontario Truck, Ontario
Oakville, Ontario
Chrysler

Warren, Michigan
Fenton, Michigan
Pilette Road, Ontario
Tecumseh Road, Ontario

*This plant, operated by A.M. General Corp., a subsidiary of American
Motors, is used for military and postal vehicle production.

Source:  Ward's Automotive Yearbook, 1978, pp. 74, 126.
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8.1.2.5  Import/Export Considerations
8.1.2.5.1  Imports

       Import penetration of the United States new car market began in
earnest with the introduction of the Volkswagen Beetle in the late 1950's.
By 1958, the economic climate resulting from the 1957-1958 recession, and a
lack of small car production on the part of the domestic manufacturers,
combined to make possible the capture of over 10% of the market by foreign
imports.*  This initial success was almost immediately offset, however, by
a series of events that, for.a time at least, returned the competitive edge
to domestic manufacturers.  One of these events was the introduction of com-
petitively designed small cars into the domestic automobile lines. Another
event was the recovery of the U.S. economy from the 1957-1958 recession,
which brought with it an increased demand for larger, more expensive cars.
The third event was the entry into the U.S. market of imports that proved  .
unsatisfactory for American driving habits, and for American standards of
maintenance and service.  This resulted in a severe setback in the American
public's confidence in, and acceptance of, foreign cars in general.
       Throughout the 1960's the trend in consumer purchases was toward large
cars. ' Domestic manufacturers virtually abandoned the small-car concept.  As
a result, the share of the market for imports increased steadily.  Japan's
successful entry into the market in 1965 was a major milestone in import
growth.  Volkswagen sales had peaked by 1970, but Japanese imports continued
*For purposes of this study, the term "foreign imports" is used to denote
 vehicles manufactured outside of North America.
                                 8-10

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to grow.  Despite Detroit's attempts to fight back by introducing subcompacts
such as the Pinto and Vega in 1971, and despite the devaluation of the dollar
relative to Japanese and German currency after 1971, the trend in favor of
imports continued.  Market share for imports peaked at 18.2% in 1975, declined
to 14.8% in 1976, and rose again to 18.5% in 1977.
       Imports have had a lesser impact on the light-duty truck market than
on the new car market.  In five of the last eight years, the import share of
the light-duty truck market has hovered between 8% and 9%, never rising above
11.2%. The inability of foreign manufacturers to penetrate the domestic market
more extensively may be explained to some degree by restrictive tariffs that
have been imposed on the importation of fully assembled light-duty trucks.
       The degree of import penetration in the light-duty truck market becomes
even less pronounced when the behavior of captive imports is considered. These
have been commanding a larger share of the import market for several years.
However, there is some doubt as to whether this trend will continue as the
upcoming fuel economy standards for light-duty trucks raises the question of
whether the required method of computing corporate mileage will include or
exclude captive imports.
       Recently, importers who have done well with light-duty trucks have
begun exploring the possibilty of making, new breakthroughs in the heavy-
duty truck market, based on an anticipated changeover from gas to diesel
power. This poses a new threat to Ford and International Harvester, who
are currently the leaders in heavy-duty truck production, and might well
lead to their more aggressive participation in the light-duty truck market.
       The future of the import influence on the domestic market has two
perspectives.  Some analysts predict that the import share of the market
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will continue to rise because foreign manufacturers, reassured by continued
positive sales performance, will consider establishing manufacturing opera-
tions in the U.S.  This prediction would appear to be supported by the fact
that in September, 1977, Honda Motor Company of Japan revealed plans for the
construction of a motorcycle plant in the United States, with car assembly
the obvious next step.5 The manufacturers of Toyota and Datsun, two leading
Japanese imports, are also studying the possibility of establishing U.S.
assembly facilities.
       Critics of this viewpoint believe that the establishment of new
facilities in the U.S. by foreign manufacturers need not imply further
erosion of domestic market shares.  They contend that the market share
attributable to the new facility may come from the present share held by
the same manufacturer.  Some critics go even further and argue that import
penetration is transient.  The influence of government regulations regarding
emission control, passenger safety, and fuel economy, and the narrowing of
price competition between imports and domestic cars are seen as factors that
will return a portion of the import market share to existing domestic manu-
facturers.  In support of this contention, a review of the North American
auto industry undertaken by the Canadian government in 1977 came to the con-
clusion that the tide of imports in the .North American market "has peaked
and the global industry has reached equilibrium."6

8.1.2.5.2  Exports

       United States exports of finished cars to any country other than
Canada are practically negligible.  Not only have most other countries
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erected and maintained formidable trade barriers in this regard,  but there
is also little evidence that, even without these barriers,  there  would be
any significant market there for United States cars.   Therefore,  U.S. car
manufacturers have so far elected to put little emphasis on exports, per
se, preferring instead to invest directly in car production plants,  located
within the countries themselves, for the production of European-type cars.7.
Exports are only a minor portion of U.S. truck sales,  never having exceeded
100,000 units in any single year.8

8.1.2.6  Demand Determinants

       Demand for new cars and light-duty trucks is a fluctuating pheno-
menon that reflects the influence of several classical determinants of
demand. Consumer personal disposable income, consumer expectations,  price,
the availability of substitute goods, and consumer taste may all  influence
demand.

       Income.  The conclusion of most reseachers has been  that personal
disposal income is the most important demand determinant.9   when  consu-
mers are prosperous, car and light-duty truck sales tend to increase. When
recession, inflation, high unemployment, and general  economic uncertainty
have been present, consumers have hesitated to purchase vehicles.  A rise
in car ownership by household tends to accompany a rise in  real income.
At high income levels, a saturation in the demand for additional  automobiles
is evident, with further income increases producing very little change in
auto ownershipJO
                                  8-13

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       Expectations.  Closely related to income is the consumer's expecta-
tions regarding the behavior of prices in relation to his anticipated income.
Reflected in the increasing volume of car and light-duty truck sales is the
expectation that prices will escalate more rapidly than personal  income.  To
the extent that this is so, consumers tend to replace vehicles before antici-
pated price increases.

       Price.  Price also influences consumer demand for new vehicles.  If
price is increased, the quantity of cars or trucks demanded in the short
run will fall as consumers postpone their purchase or turn to a substitute
goodJ1
       It should be noted that the demand for high-priced cars is less
responsive to increased prices than is the demand for lower-priced carsJ2
The consumer of the high-priced car will, as a general rule, postpone his
purchase, but will not turn to a substitute good.  However, consumers of
lower-priced cars may downgrade their purchase^ or may substitute a used
car or a lower-priced import.  Therefore, price differentials are extremely
important in this area of the new car market.  Price differentials are  also
extremely important in the light-duty truck market, since consumers can
substitute either used or imported vehicles.

       Substitute Goods.  Viable substitutes for passenger cars and light-
duty trucks include imported vehicles, used vehicles, and substitutions
within and among model classes.  Within certain settings, the accessibility
of public transportation is also a factor.  Imports and substitutions within
and among model classes provide perfect substitutes for new vehicles.  Used
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cars provide the consumer with a wide range of close substitutes.  Public
transit systems, taxicabs, rental vehicles, and commercial delivery services
substitute only in metropolitan settings.

       Taste.  As a determinant of demand, consumer taste is the most fickle,
subjective, and non-quantifiable.  Taste is comprised, among other things,
of design, styling, size, brand loyalty, self-image, and status.  Its influ-
ence is demonstrated by the recent trend away from the purchase of family
cars and toward the purchase of vans and other light trucks for recreational
use and leisure activities.  It has been estimated that approximately 500,000
light-duty truck sales represent substitution sales for passenger cars in this
past model year.14

8.1.2.7  Pricing Procedures
8.1.2.7.1  Price Determination

       Pricing practices in the industry appear to substantiate the post-
Keynesian economic theory that "the pricing behavior of oligopolistic firms
in the manufacturing sector of industrialized capitalist economies can be
explained by the demand for funds from internal sources for purposes of
investment expenditures."15  in theory, current actual costs are not
used in pricing, and no attempt is made to maximize the rate of return in
any single year.  Demand is a factor in production rather than pricing,
in that the immediate response to either increased or decreased demand is
accelerated or decelerated production rather than higher or lower price.
Thus, pricing to achieve a target rate of return is concerned with funding
                                   8-15

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requirements for planned investment expenditures rather than current cost
or demand conditions.
       Over the years, General Motors has had the discretionary power to
establish prices for its products that have generated sufficient cash flow
to finance internally much of the investment expenditures it has undertaken.
The pricing method used by General Motors is to project unit costs (direct
labor and materials, plus unit overhead) on the basis of a "standard" volume
(about 80% of capacity) and then add on a profit margin designed to yield
a target rate of return sufficient to support long-range capacity and expan-
sion objectivesJ6
       Ford, Chrysler, and American Motors consider cost plus a reasonable
profit as their base selling price.  Ceiling prices have been set by pricing
as close to the competition as possible.17

8.1.2.7.2  Price Leadership

       The dominance of General Motors in the industry is evident in the
                                                 \
40% to 50% share of the domestic market it has held since 1931.  This strong
market share provides a basis for price leadership in the industry. While the
role of first announcing price appears to be about equally divided between
General Motors, Ford, and Chrysler, it is apparent that Ford and Chrysler
frequently attempt to anticipate and follow the pricing actions of General
Motors, and, when necessary, to back-adjust.
       A clear example of the latter type of movement occurred in September,
1956, when Ford announced a suggested price list for 1957 models that en-
tailed an average 2.9% increase over 1956 models, ranging from $1  to $104
                                   8-16

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per model.  Two weeks later, General  Motors announced an average 6.1%
increase over 1956 prices for its Chevrolet models,  with price increases
ranging from 550 to $166 per model.  Within the week, Ford had revised
its prices upward so that on ten models the price differential with Chev-
rolet was only SI to $2.  A week later, Chrysler announced the price of
Plymouths at approximately $20 higher than Chevrolet, consistent with
Chrysler's traditional pricing patternJS
       More recently, in response to the government's voluntary price decel-
eration program, General Motors announced that it would move away from the
industry's usual practice of raising car prices once a year, and v/ould, in-
stead, raise prices whenever it was deemed appropriated9 In setting this
new pricing trend, General Motors suggested that it  would be able to keep
price rises over the 1978 model year at about 5% to  5.5% compared with the
6% average boosts of the past two years.  While neither Chrysler nor Ford
has made any such commitment, a spokesman for Chrysler stated that "any
pricing action in the future would continue to depend on the competitive
situation and other factors."

8.1.2.7.3  Price Uniformity

       Historically, list price differentials among  different manufacturers'
models in the same model class have tended to be small.  Similarly, price
differentials in the cost of accessories, options, and the hundreds of pos-
sible combinations of models/accessories are slight.  The uniformity in
pricing in these areas reflects the fact that General Motors has nearly
half of the total market and twice the share of its  nearest competitor,
thereby effectively ruling out price competition within the industry.
                                  8-17

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8.1.2.8  Non-Price Competition

       In the North American automobile and light-duty truck market, much of
the demand for vehicles is replacement demand.  Because the purchase of a new
vehicle is a deferrable item, and because perfect and close substitutes are
available, manufacturers have had to develop strategies that ensure the con-
stant stimulation of replacement sales.  With the virtual disappearance of
price differentials as a factor of competition, these strategies take the
form of non-price competition such as frequent design and styling changes,
aggressive and imaginative marketing techniques, and dealer-buyer incentive
programs.
       Major design and styling changes are introduced by manufacturers every
few years, with more modest changes in trim and styling occurring in the inter-
vening years.  To the extent that consumers see their vehicles as symbols of
affluence, as a means of acquiring distinction, or as an expression of person-
ality, these changes move them toward vehicle replacement.
       Aggressive marketing techniques are evident in the public image each
firm has established.  Over the years, General Motors has maintained the
strategy of advertising a "car for every price and purpose", and with its
breadth of product line and range of options and accessories, it has managed
to capture approximately 60% of the full-sized and intermediate-sized car
markets and to capture about 30% of the compact and sub-compact market.
       Ford's marketing strategy has been built on the concept of "basic
transportation".  Although Ford produces competitive models in all model
classes, its greatest successes have been realized in the small car market.
However, in recent years, Ford has elected to maintain a line of full-sized
and luxury cars as competitive alternatives to General Motor's downsizing
                                   8-18

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of all of its models.  Ford's marketing strategy is apparently aimed at
capturing that portion of the consumer market that elects to remain with
a full-sized car or that refuses to pay a full-size price for an inter-
mediate-sized car.  Recently, Ford's share of the full-sized market has
ranged between 25% and 30%.
       Chrysler's traditional marketing stance has been to build its image
on superior engineering.  While its products cover all model classes, Chrys-
ler's historical appeal has been to the luxury and full-sized car market. It
has consistently priced its vehicles higher than those of its competitors,
maintaining that they "are worth more, perform better, and have better engi-
neering".  In recent years, Chrysler's share of the full-sized market has
declined from 15% to about 10%, and this year, for the first time, Chrysler
has moved into the domestic production of subcompacts with the introduction
of the Omni and Horizon models.
       American Motors' historical strategy has been to produce cheap, eco-
nomical, small cars.  In the years in which the firm has departed from this
strategy, sales have declined radically.  Currently, American Motors has
begun to concentrate its efforts in the compact and subcompact areas and
to increase advertising of its Jeep products, which have consistently been
successful.
       Dealer-incentive programs include special sales campaigns that provide
cash bonuses to dealers who exceed their sales quotas, special product promo-
tions in which optional equipment is sold at reduced prices, and merchandise
or trip prizes to outstanding salesmen or sales managers.  Buyer-incentive
programs include cash rebates on new vehicle purchases, special pricing on
optional equipment, expansion of warranty items, and extensions of warranty
periods.

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8.1.2.9  Price-Cost Relationships

       The price-cost margin, or profitability of sales, depends upon factors
such as vehicle mix and the ability of the firm to recover cost increases.
Because the industry is capital-intensive, fixed costs are high.  Therefore,
even a small change in unit volume will cause revenues to vary.  As sales
decline, the profit margin becomes narrower.  Characteristically, the industry
does not respond with a decrease in price in order to stimulate sales.  To
the extent that prices are held constant, increases or decreases in quantity
of the product demanded will widen or narrow the profit margin.
       In the 1972-1973 model year, sales in the industry peaked, and the
profit position of the industry was maximized as the difference between costs
and revenues widened.  The subsequent decline in the market in response to
the energy crisis produced by the Arab oil embargo did not result in a price
decrease to induce greater sales volume.  The industry practice of costing on
a constant input basis, coupled with volume production, causes the implemen-
tation of price changes to take as long as two years.  Therefore, the sales
decline in 1974-1975 did not occasion a cut-back in prices to stimulate sales.
Rather, production was cut back, and the industry waited for the market to
recover.  As a result, that year was characterized by a substantial narrowing
of the profit margin, and reduced profitability.
       It becomes apparent that the wider the profit margin of a manufacturer,
the more flexibility he has in dealing with fluctuations in demand, changes
in the costs of inputs, and in establishing prices.  However, profit margins
become critical for companies that hold smaller shares of the market, such
as American Motors and Chrysler Corporation.  To the extent that prices must
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remain competitive, and because of the cost-revenue relationship, profit-
ability for these companies becomes a matter of achieving a delicate balance.
At the point where costs and revenues converge, or when costs exceed revenues,
the long-run financial position of both companies will need to be such that
long-run target profits can be met or external funds can be generated to
finance capital expenditure demands of the company.

8.1.3  Projected Demand

       Using current market shares and number of U.S. new car and light-
duty truck registrations as the basis, United States demand for new cars
and light-duty trucks was projected through 1983 for each individual firm.
       For passenger cars, an annual industry growth of 3% was accepted as
the "most likely" value from a range of estimated rates encountered in the
course of research for this project.  The upper limits of the range were 3.5
- 4% and the lower limits were 1.8 - 2%.  For trucks, an annual growth rate
of 4.5% was accepted as the "most likely" value in a range of values from 3%
to 6% suggested by authorities from both the public and private sectors of
the economy.
       Historical demand in Canada for new cars and for new light-duty trucks
was examined in relation to historical demand in the United States.  On the
basis of the observed relationship, Canadian demand through 1983 was projected
for the same time period as 10% of the United States demand for new cars,
and 11% of United States demand for light-duty trucks.  Existing shares of
the Canadian market were assumed to remain constant over the next five
years for both cars and light-duty trucks.
                                  8-21

-------
       United States demand and Canadian demand were combined to obtain
total North American projected demand for new passenger cars (see Table
8-3) and for light-duty trucks (see Table 8-4).

8.1.4  Determination of Existing Capacity

       Estimates of existing production capacity for cars and for light-
duty trucks were derived for each of the firms in the industry and are
shown in Tables 8-5 and 8-6.  For both cars and trucks, the basic formula
used to measure production capacity for each firm was:  (optimal line
speed x number of final assembly lines) x (number of shifts x number of
working days per year).

       Optimal line speed is considered to be the optimal rate at which an
automobile or truck assembly line can produce vehicles when the production
rates of components and subassemblies are adjusted to-be totally compatible.
In accordance with the findings described in earlier chapters of this study,
constant line speeds of 55 cars per hour and 38 trucks per hour were entered
into the capacity formula.  It is recognized that not every line in every
company will operate at the accepted line speed; some will operate at a
higher rate ana others at a lower rate.  Endogenous constraints such as the
age of plants and equipment and the type and complexity of vehicle mix on a
line are present.  Also present are exogenous constraints such as the seasonal
and cyclical nature of consumer demand.  The accepted values represent best
estimates of average car and truck optimal line speeds for the industry.
                                   8-22

-------
                                              Table 8-3

                                 U.S. AND CANADIAN PROJECTED DEMAND


oo
1
ro
u>

FOR
NORTH AMERICAN-MADE PASSENGER CARS*
(Thousands of Units)
Manufacturer** 1978 1979 1980
General Motors Corp. 5,576 5,743 5,916 6
Ford Motor Co. 2,731 2,812 2,896 2
Chrysler Corp. 1,428 1,471 1,515 1
American Motors Co. 211 218 225
Totals 9,946 10,244 10,552 10

1978-1983

1981 1982
,093 6,277
,983 3,073
,561 1,608
232 238
,869 11,196


1983
6,464
3,165
1,657
245
11,531
 *Exports by U.S. manufacturers have not been included.

**Checker Motors, which produces for a specialized market, has a projected demand of 5,576
  units in 1983.
  Volkswagen's new car assembly plant in New Stanton, PA, became operative in March, 1978;
  sufficient sales data to project demand for 1983 is not yet available.

-------
00

f\i
-p.
                                                   Table  8-4


                                      PROJECTED U.S. AND  CANADIAN DEMAND
FOR

NORTH AMERICAN-MADE
LIGHT-DUTY TRUCKS

1978-1983

Manufacturer
General Motors Corp.
Ford Motor Co.
Chrysler Corp.
American Motors Co.
Internat'l Harvester Co.*
Totals
(Thousands
1978 1979
1,526 1,598
1,220 1,276
544 568
128 135
34 36
3,453 3,609
of Units)
1980 1981 1982
1,666 1,741 1,819
1,333 1,396 1,455
593 619 648
141 147 154
37 39 41
3,771 3,939 4,117

1983
1,902
1,521
676
160
43
4,302
        ^Estimates  are for U.S. demand only.

-------
                                                    Table 8-5

                                   ESTIMATED PASSENGER CAR PRODUCTION CAPACITY

                                                IN NORTH AMERICA

                                                      1978
        Manufacturer
No. of Final Assembly Lines
     in U.S. and Canada
 Estimated Capacity
(Thousands of Units)
CO
l\3
U1
        General  Motors  Corp.
        Ford  Motor  Co.
        Chrysler  Corp.
        American  Motors  Co.
            29*


            16


             7**


             2**
        6,124


        3,379


        1,478


          422
        Checker  Motors  Corp.
        Volkswagen  of  America,  Inc.
                                                       211


                                                       211
         *A new passenger  car  assembly plant  in  Oklahoma,  presently under construction,  is planned
          for  1980.   Total  capacity is estimated to increase by 211,200 units,  bringing  the total
          to 6,336,000  units.

        **Allowance  has  been made  in this  Table  for the 1978 conversion to light-duty truck assembly
          of one Mne each  for Chrysler and American Motors, and capacity estimates  have been  reduced
          accordingly.

-------
a\
                                              Table 8-6

                           ESTIMATED LIGHT-DUTY TRUCK PRODUCTION CAPACITY

                                          IN NORTH AMERICA

                                                1978


Manufacturer                 No. of Final Assembly Lines                   Estimated Capacity
                                  in U.S. and Canada                      (Thousands of Units)


General Motors Corp.                     11*                                      1,605


Ford Motor Co.                            9                                       1,313


Chrysler Corp.                            5**                                       729


American Motors Co.                       3***                                      437


Internat'l Harverster Co.                 1                                         145
  *A new General Motors plant in Shrevesport, Louisiana has been planned for 1981.  Estimated
   capacity should increase by 145,000 units, bringing the total to 1,750,000 units.

 **Chrysler will cease light-duty truck production in its Tecumseh Road plant in 1979; this
   plant will be used for sub-assembly operations.  The Jefferson Avenue plant will be con-
   verted in 1978 to light-duty truck production.  It is assumed one change will offset the
   other.

***American Motors will retool its Brampton, Ontario plant in 1978 for light-duty truck
   production.  The estimate presented here reflects this change.

-------
       Number of lines per company is proprietary information.  Data used
for this component of the formula were estimated from public .sources such
as Ward's Automotive Yearbook and Automotive News, and the results were
compared with other studies reporting similar information.  Estimated
number of lines per company reflects line usage for both automobile and
light-duty truck production.

       Number of shifts was established as a constant value of 2.  It is
understood that number of shifts may vary in response to consumer demand.
This value was entered into the formula as representative of the industry.

       Number of working days per year was established as a constant value
of 240.  This number is consistent with findings in earlier chapters, of this
study and reflects downtime required for maintenance, inventory, retooling
for model changeover, vacation, and variations in labor skill.
                                                   a
8.1.5  Determination of New Sources

       A company-by-company determination of new source requirements* was
made, and it was concluded that General Motors will require an additional
passenger car line by 1983 and one additional light-duty truck line by
1982; Ford will need one additional light-duty truck line by 1980; and
Chrysler will need one additional passenger car line by 1980.
*"Mew source", as used in this study, is defined as the new grass roots
 capacity necessary to fill the gap between projected demand and existing
 capacity.
                                  8-27

-------
       As demand at each firm exceeds present capacity, the firm may elect
to build a new line.  Alternatively, a firm may increase capacity by modi-
fying or reconstructing an existing line.  For example, Chrysler may choose
to continue its announced program of gutting and refitting existing plants
in order to increase production capacity to meet projected demand.20
       A second alternative for each firm would be to construct the new
line in Canada, where environmental standards are currently somewhat less
stringent.  However, the economic analysis in this study assumes that if
new lines are built, they will be built in the United States and will be
impacted by New Source Performance Standards.
                                  8-28

-------
                              REFERENCES
 1.   Impact of Environmental,  Energy,  and Safety Regulations  and  of Emerging
     Market Factors Upon the United States Sector of the  North  American Auto-
     motive Industry,  Office ofBusiness Research and Analysis, Bureau  of
     Domestic Commerce,  Domestic and International  Business Administration,
     U.S.  Department of  Commerce, Washington,  DC, August  1977,  p.  3-1.

 2.   Review of the North American Automotive Industry,  Automotive  Task  Force,
     Department of Industry, Trade and Commerce, Ottawa,  Canada,  April  1977,
     p.  72.

 3.   Ibid., p. 26.

 4.   Automotive News:   1978 Market Data Book Issue, pp. 37, 42, 43.

 5.   Hard's Automotive Yearbook, 1978, p. 16.

 6.   Department of Industry, Trade and Commerce, Op. Cit., p.  199.

 7.   Impact of Trade Policies on the U.S. Automobile Market,  Charles River
     Associates, October 1976, pp. 33, 34.

 8.   U.S.  Industrial Outlook 1978, Department  of Commerce, p.  159.

 9.   "The  Automobile Industry", Robert F. Lanzillotti,  The Structure of
     American Industry,  4th Edition, Walter Adams,  Editor, The  Macmillan
     Company, New York,  1971,  pp. 276, 277.

10.   Office-of Business  Research and Analysis,  U.S. Department  of Commerce,
     Op. Cit., p. 8-3.

11.   Data  and Analysis for 1981-1984 Passenger Automobile Fuel  Economy
     "STandards:  Document 1, Automobile Demand and  Marketing, Office of
     Automotive Fuel Economy,  U.S. Department  of Transportation,  February
     28, 1977, p. A-l.

12.   Marketing and Mobility:  Report of a Panel  of  the Interagency Task
     Force on Motor Vehicle Goals Beyond 1980,  The Panel  on Marketing
     and Mobility, Office of the Secretary of  Transportation, Washington,
     DC, March 1976, p.  2-196.

13.   Ibid.

14.   U.S.  Industrial Outlook 1978, Department  of Commerce, p.  157.

15.   "Pricing in Post-Keynesian Economics", Peter Kenyon, Challenge,
     July-August 1978, p. 45.
                                 8-29

-------
16.  Office of Automotive Fuel  Economy,  U.S.  Department  of  Transportation,
     Op. Cit., pp.  3-71/3-75.

17.  Ibid., pp. 3-75/3-79.

18.  Robert F. Lanzilloti, Op.  Cit.,  p.  282.

19.  The Wall  Street Journal,  June 27,  1977,  p.  1.

20.  "Chrysler's Downhill Plunge  in Market  Shares",  Fortune,  June  19,  1978,
     p. 58.
                                   8-  30

-------
8.2  COST ANALYSIS



8.2.1  Introduction



     To determine the costs of controlling.emissions.of volatile



organic compounds (VOC) associated with the painting of automo-



biles and light-duty trucks, alternative control systems were



applied to selected typical plant sizes.  Estimated costs were



then plotted on graphs to represent the control option costs for



varying plant capacities.  The costs of the control options rep-



resent those additional expenditures over the base case, in which



electrodeposition (EDP) is used for the prime coat, solvent-borne



coatings are used in the guide-coat and topcoat operations, and



VOC emissions are not controlled.  Figure 8-1 shows the available



control options.  The cost estimates developed herein are study



estimates with an expected range of ± 30 percent.  They are



limited to new coating facilities.



     To represent the varying capacities of the assembly plants,



the following three line speeds were selected from a range of



actual industry production rates for automobiles and light-duty



trucks:
          Vehicle type
          Automobile
          Light-duty truck
Line speed, vehicles/h
                               3-31

-------
                                                 OPTIONS
CO

CO
r>o
VOC EMISSIONS
REDUCTION, %
ENAMEL
LACQUER
PRIME
COAT
GUIDE-COAT
SPRAY BOOTHS
OVENS
TOPCOAT
SPRAY BOOTHS
OVENS
BASE
CASE
0
0
ELECTRO-
DEPOSITION
1
UNCONTROLLED
1
UNCONTROLLED
1
UNCONTROLLED
1
UNCONTROLLED

IAa
81
92
ELECTRO-
DEPOSITION
1
USE OF
WATERBORNE
PAINT
1
USE OF
WATERBORNE
PAINT
1
USE OF
WATERBORNE
PAINT
1
USE OF
WATERBORNE
PAINT


IB-Ta
77
85
ELECTRO-
DEPOSITION
1
UNCONTROLLED
1
UNCONTROLLED
1
THERMAL
INCINERATOR
1
THERMAL
INCINERATOR
IB-Ca
77
as


ELECTRO-
DEPOSITION


UNCONTROLLED


UNCONTROLLED


CATALYTIC
INCINERATOR


CATALYTIC
INCINERATOR

II-T
90
90
ELECTRO-
DEPOSITION
1
THERMAL
INCINERATOR
1
THERMAL
INCINERATOR
1
THERMAL
INCINERATOR
1
THERMAL
INCINERATOR




II-C
90
90
ELECTRO-
DEPOSITION
1
CATALYTIC
INCINERATOR
1
CATALYTIC
INCINERATOR
1
CATALYTIC
INCINERATOR
1
CATALYTIC
INCINERATOR
                       Figure  8-1.   Available options for control of VOC emissions
                       due  to  the painting of automobiles and light-duty trucks.
    Emissions reductionc are  rounded  and vary from automobile to light-duty truck facilities,

-------
     It is assumed that vehicle manufacturers using solvent-borne
lacquers require three topcoat lines, those using solvent-borne
enamels require two topcoat lines, and those using waterborne
paints requires two topcoat lines.  For a given plant it is also
assumed that all the topcoat lines are identical in length.
     Because vehicle size directly affects potential VOC emissions,
emission calculations are based on an average body size and paint
thickness.  Table 8-7 presents average solvent-borne paint usage.
     Uncontrolled VOC emissions during guide-coat and top-coat
application range from approximately 1.26 Gg (1400 tons/yr) (at
an automobile assembly plant using enamel coatings and producing
40 vehicles/h) to more than 6.35 Gg  (7000 tons/yr) (at a plant
using lacquer coatings and producing 85 vehicles/h).
8.2.2  Capital Cost of Control Options
     The five control options incorporate two basic technologies:
a change in coating material (from solvent-borne to waterborne
paint) and incineration of the exhaust gases (by thermal and
catalytic incineration).   All capital costs reflect 4th quarter
1977 prices of equipment and installation.
8.2.2.1  Change to Waterborne Paint—
     Control option IA involves the use of waterborne coatings.
These coatings generally require longer spray booths, flash
tunnels, and ovens than solvent-borne enamels,  hence increased
capital costs.  These increased capital costs are somewhat less
when compared with solvent-borne lacquers, however,  because a
                               8-33

-------
   TABLE  8-7.  AVERAGE SOLVENT-BORNE  PAINT USAGE FOR AUTOMOBILE AND LIGHT-DUTY TRUCK BODIES
Vehicle
Automobile



Light-duty truck



Coating
Enamel guide coat
Enamel topcoat
Lacquer guide coat
Lcicquer topcoat
Enamel guide coat
Enamel topcoat
Lacquer guide coat
Lacquer topcoat
Solvent content,
percent by vol .
69
75
69
87
69
72
69
87
Paint usage per vehicle.
liters
2.0
11.2
2.0
25.3
2.0
12.2
2.0
31.1
gal
0.54
2.95
0.54
6.67
0.54
3.23
0.54
8.22
CO
I
co

-------
third (shroud) coat of lacquer is required.  For  a  given  line

speed, no cost distinction is made between automobiles  and

light-duty trucks.  Any differences that may exist  are  too  small

to consider in a study estimate.  Table 8-8  lists the coating

equipment requirements for the various types of coatings  in a

plant producing 55 vehicles/h.

TABLE 8-8.   COATING EQUIPMENT REQUIREMENTS IN A PLANT PRODUCING
                        55 VEHICLES/HOUR3
      Coating and
    number of lines
 Equipment
Length per
line, m(ft)
Waterborne guide
 coat (1 line)
Solvent-borne guide
 coat (lacquer and enamel)
 (1 line)

Waterborne
 topcoat (2 lines)
Solvent-borne
 enamel topcoat  (2 lines)
Solvent-borne
 lacquer topcoat (3 lines)
Spray booth
Flash-off tunnel
Oven

Spray booth
Flash-off tunnel
Oven

Spray booth
Flash-off tunnel
Oven

Spray booth
Flash-off tunnel
Oven

Spray booth
Flash-off tunnel
Oven
   85   (280)
   85   (280)
  316  (1036)
   67
   51
  316

   94
   85
  128

   30
    9
   76
 (220)
 (168)
(1036)

 (308)
 (280)
 (420)

 (100)
  (30)
 (250)
   68   (224)
   51   (168)
  128   (420)
  Reference 1

     The turnkey costs of booths, tunnels, and ovens are shown

in Table 8-9.   Costs include such items as air handling and

conditioning, lighting, sprinklers, spray equipment, conveyors,

and water-treatment equipment.  In addition to the equipment  .

costs, the land and building costs must be considered.  Each
                               8-35

-------
     TABLE 8-9.
TURNKEY COSTS OF AUTOMOBILE AND LIGHT-DUTY
 TRUCK COATING EQUIPMENT COSTS

  (4th quarter 1977 dollars)
  Equipment
         Estimated cost
                             Cost used in
                              this study
Waterborne paint
 spray booth
Solvent-borne paint
 spray booth

Flash-off tunnels
Ovens
      $36,000 - 39,000/m
     ($11,000 - 12,000/ft)

      $39,000/m  .
     ($12,000/ft)D
                 a,b
 $32,800/m
($10,000/ft)

 $32,800/m
($l,000/ft)a
      $6,600 - 7,800/m  .
     ($2,000 - 3,000/ft)D

      $1,200 - 1,400/m3
     ($35 - 40/ft3)a

      $6,600 - 9,800/m  .
     ($2,000 - 3,000/ft)
                               $3,900/m
                              ($12,000/ft)
 $32,800/m
($10,000/ft)

 $6,600/m
($2,000/ft)
                               $9,800/m
                              ($3,000/ft)
 Reference 3
 ^Reference 4
                               8-36

-------
unit is 6.1 m (20 ft) wide, and for purposes of estimating



costs, it is assumed that a 1.5-m  (5-ft) aisle is required on



each side of the booths, tunnels, and ovens.  Ten percent was



added for space between coating lines.  A building cost of



$29'1.10/m2 ($26.20/ft )  was used to calculate costs.2  The real


                                  2          2
estate is assumed to cost $24.80/m  ($2.30 ft ) .



     Table 8-10 presents the incremental capital costs of a



waterborne system versus conventional solvent-borne systems for



application of guide coat and topcoat at plants of various line



speeds.  The capital costs of comparable systems are assumed to



be directly proportional to line speed because the lengths of



the spray booths, flash-off tunnels, and ovens are a function of



line speed.  A line speed that produces 70 vehicles per hour



travels twice as fast as one which produces only 35 vehicles per



hour.  Thus,  the ovens,  for example, must be twice as long at •



the facility producing 70 vehicles per hour to achieve the same



retention time.



8.2.2.2  Incineration—



     Control options IB-T, IB-C, II-T, and II-C require the use



of thermal and catalytic incinerators.  All exhaust gases are



incinerated at 430°C (800°F)  in the catalytic incinerators and



760°C  (1400°F) in the thermal incinerators.  Incinerators for



oven and flash tunnel exhausts are designed for 35 percent pri-



mary and 55 percent secondary heat recovery.  Only 35 percent



primary heat recovery is considered for the spray booth exhausts.
                               8-37

-------
                TABLE 8-10.  INCREMENTAL CAPITAL COSTS OF WATERBORNE  SYSTEM VERSUS

                   CONVENTIONAL SOLVENT-BORNE SYSTEMS, GUIDE  COAT AND TOPCOAT
     Type of coating
    Solvent-borne enamel
  Solvent-borne lacquer
     Vehicles per hour


     Capital Cost, $10(
 30   38   40   48   55   85


5.65 7.15 7.53 9.05 10.3 16.0
 30   38   40   48   55   85


0.39 0.50 0.52 0.63 0.72 1.11
co

(A)
00

-------
     The units are shop-assembled packages complete with burners,
fan, controls, heat exchanger, and stack.  Maximum unit size is
23.5 Nm /s (50,000 scfm).  If exhaust volumes exceed this rate,
multiple units are used.  Utility requirements consist of elec-
trical power to drive the fans and No. 2 fuel oil for the incin-
erator.  Tanks with capacity for a 15-day fuel supply and ancil-
lary facilities such as dikes for aboveground tanks are included
in the costs.
     Direct capital cost items included in incinerator installa-
tion are foundations, rigging, structural steel, ductwork, damp-
ers, electrical work, piping, temperature monitoring equipment,
and painting.  Indirect costs of system startup, performance
testing, engineering, and the constructor's overhead and profit
were also included.  No allowance is made for stack monitors.
Because VOC emissions are a function of the temperature in the
firing chamber, however, the cost of temperature monitoring
equipment is included.
     Because costs are estimated, on a turnkey basis, cost of
construction money is not specifically considered.  Company
philosphy and accounting methods have an impact on this.  For
purposes of this study, it is assumed that the cost of construc-
tion money is accounted for in the 25 percent allotted for the
constructor's overhead and profit.  The parameters used in
developing the costs for incineration systems are shown in Table
8-11.
                               8-39

-------
       TABLE 8-11.  TECHNICAL PARAMETERS USED IN DEVELOPING
            COSTS OF INCINERATORS FOR CONTROL SYSTEM
       Parameter
   Value
                                                    a
    Temperature, °C (°F)

      Ovens and flash tunnels
      Spray booths

    Volumetric flow rate,
     Nmvs (scfm)  per vehicle/h

      Guide coat spray booth
      Guide coat ovens and flash tunnels
      Topcoat spray booth, enamel
      Topcoat ovens and flash tunnels,
        enamel
      Topcoat spray booth, lacquer
      Topcoat ovens and flash tunnels,
        lacquer

    Hydrocarbon concentration, % LEL

      Spray booths
      Ovens and flash tunnels
4.   Control efficiency, %
   149 (    300)
    21 (     70)
 0.645 (  1,370)
 0.087 (   18.5)
 3.82  (  8,100)

 0.105 (    222)
10.0   ( 21,200)
 0.273 (
 1.0
10.0
90.0
580)
  Reference 5
  LEL = lower explosive limit
                               8-40

-------
     Table 8-12 presents delivered cost of incinerators.  The

estimated costs of dampers, oil storage, electric service,

rigging, structural steel, foundations, ductwork, piping, painting,

startup, and testing are based on engineering judgment.  Installed

costs include allowance of 25 percent for the constructor's

overhead and profit and 12 percent for engineering.  Tables 8-13

through 8-21 show the capital cost of each of the control options

that incorporate exhaust gas incineration.

8.2.3  Annualized Cost of Control Options

    - The total annualized cost is divided into three categories:

direct operating cost, capital charges, and  (when applicable)

credit'for heat recovery.  Operating and maintenance costs fall

into the first category and include the following:

     °    Utilities (including electric power, fuel, and process
          water)

     0    Operating labor

     0    Maintenance and supplies

     0    Solid waste disposal

     Capital charges include depreciation, interest, administra-

tive overhead, property taxes, and insurance.  Depreciation and

interest are computed by use of a capital recovery factor (CRF),

the value of which depends on the operating life of the building

or equipment and the interest rate.  Table 8-21  lists the cost

factors used in computing the annualized costs.
                               8-41

-------
                        TABLE 8-12.  DELIVERED COST OF EXHAUST  GAS  INCINERATORS'

Type of incinerator
Thermal - 35% primary and 55%
secondary heat recovery.
149°C (300°F) inlet
temperature
Catalytic - 35% primary and
55% secondary heat recovery.
149°C (300°F) inlet
temperature
Thermal - 35% primary heat
recovery, 21°C (70°F)
inlet temperature
Catalytic - 35% primary heat
recovery, 21"C (70°F) inlet
temperature

0.24 (500)
$75,500



$56,000



$70,000


$53,000



1.18 (2,500)
$85,000



$68.000



$78,000


$60,000


Nm3
2.36 (5,000)
$105,000



$86,100



$89,000


$70,000


/s (scfm)
4.72 (10,000)
$138.000



$117,500



$106,000


$85,500



14.1 (30,000)
$176,000



S237.000



$142.500


$203.500



23.5 (50,000)
$226,000



$357,000



$170,000


$301.000


CO

4=>
r>o
           Coats are based on those reported in Reference 6 and updated to 4th-quarter 1977  prices.

           Freight is included.

-------
     TABLE 8-13.  CAPITAL COSTS OF CONTROL  OPTION IB-T FOR SURFACE COATING OF AUTOMOBILES
                                       (1000  dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
Topcoat flash tunnels and
ovens
Total capital costs (rounded)
Solvent-borne enamel
40
Unc.
Unc.
3,220
320
3,540
55
Unc.
Unc.
4,280
350
4,630
85
Unc.
Unc.
6,610
395
7,000
Solvent-borne lacquer
40
Unc.
Unc.
8,080
425
8,500
55
Unc.
Unc.
11,300
475
11,800
85
Unc.
Unc.
17,340
585
17,900
CO

*.
OJ
     Unc.- Uncontrolled

-------
       TABLE  8-14. CAPITAL  COSTS OF CONTROL OPTION IB-C FOR SURFACE COATING  OF AUTOMOBILES
                                          (1000 dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
Topcoat flash tunnels and
ovens
Total capital costs (rounded)
Solvent-borne enamel
40
Unc.
Unc.
4,080
276
4,350
55
Unc.
Unc.
5,530
320
5,850
85
Unc.
Unc.
8,550
385
8,940
Solvent-borne lacquer
40
Unc.
Unc.
10,400
440
10,800
55
Unc.
Unc.
14,500
529
15,000
85
Unc.
Unc.
22,300
724
23,000
CO
     Unc. - Uncontrolled

-------
         TABLE «-15.  CAPITAL COSTS OF  CONTROL OPTION II-T FOR SURFACE COATING OF AUTOMOBILES
                                            (1000 dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
Topcoat flash tunnels and
ovens
Total capital costs (rounded)
Solvent-borne enamel
40
745
170
3,220
320
4,460
55
835
180
4,280
350
5,640
85
1,260
190
6,610
395
8,460
Solvent-borne lacquer
40
745
170
8,080
425
9,420
55
835
180
11,300
475
12,800
85
1,260
190
17,300
585
19,300
00
Ol

-------
        TABLE 8-16.   CAPITAL COSTS OF CONTROL OPTION II-C FOR SURFACE COATING OF AUTOMOBILES
                                            (1000 dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
Topcoat flash tunnels and
ovens
Total capital costs (rounded)
Solvent-borne enamel
40
817
142
4,080
276
5,320
55
997
150
5,530
320
7,000
85
1,520
162
8,550
385
10,620
Solvent-borne lacquer
40
817
142
10,400
440
11,800
55
997
150
14,500
529
16,200
85
1,520
162
22,300
724
24,700
CD


k

-------
              TABLE 8-17%  CAPITAL COSTS OF CONTROL OPTION  IB-T FOR SURFACE COATING
                                       OF LIGHT-DUTY  TRUCKS
                                           (1000 dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
Topcoat flash tunnels and
Total capital costs (rounded)
Solvent-borne enamel
30
Unc.
Unc .
2,620
292
2,910
38
Unc .
Unc.
3,610
320
3,930
48
Unc .
Unc.
4,080
345
4,420
Solvent-borne lacquer
30
Unc.
Unc.
7,420
413
7,830
38
Unc.
Unc.
8,740
485
9,220
48
Unc.
Unc.
12,100
562
12,700
00
      Unc.- Uncontrolled

-------
             TABLE  8-18.  CAPITAL COSTS  OF CONTROL OPTION IB-C FOR SURFACE COATING
                                       OF LIGHT-DUTY TRUCKS
                                          (1000  dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
Topcoat flash tunnels and
ovens
Total capital costs (rounded)
Solvent-borne enamel
30
Unc.
Unc.
3,260
254
3,510
38
Unc.
Unc.
4,060
278
4,340
48
Unc.
Unc.
5,140
310
5,450
Solvent-borne lacquer
30
Unc.
Unc.
9,680
420
10,100
38.
Unc.
Unc.
12,200
485
12,700
48
Unc.
Unc.
15,500
628
16,100
00
     Unc.- Uncontrolled

-------
             TABLE  8-19.
CAPITAL COSTS OF  CONTROL OPTION II-T FOR SURFACE  COATING

            OF LIGHT-DUTY TRUCKS

                (1000  dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
i
Topcoat flash tunnels and
ovens
Total capital costs (rounded)
Solvent-borne enamel
30

437
172

2,620

292

3,520
38

730
172

3,610

320

4,830
48

786
172

4,080

345

5,380
Solvent-borne lacquer
30

437
172

7,420

413

8,440
38

730
172

8,740

485

10,100
48

786
172

12,100

562

13,600
ex

-U
1C

-------
               TABLE 8-20.   CAPITAL COSTS OF  CONTROL OPTION II-C FOR SURFACE COATING

                                        OF  LIGHT-DUTY TRUCKS
                                            (1000  dollars)
Type of coating
Vehicles per hour
Emission Source
Guide-coat spray booths
Guide-coat flash tunnels and
ovens
Topcoat spray booths
Topcoat flash tunnels and
ovens
Total capital costs (rounded)
Solvent-borne enamel
30
537
145
3,260
254
4,200
38
790
145
4,060
278
5,270
48
907
145
5,140
310
6,500
Solvent-borne lacquer
30
537
145
9,680
420
10,800
38
790
145
12,200
485
13,600
48
907
145
15,500
620
17,200
00
Ul
o

-------
     TABLE  8-21.
COST FACTORS USED IN COMPUTING ANNUALIZED
  COSTS FOR CONTROL OPTIONS
Operating factor
  Maintenance labor rate
  Operating labor rate
  Supervisory labor rate

Utilities

  Electric power
  Fuel oil

Capital recovery factor

  Air pollution control equipment
  Production equipment
  Buildings

Taxes and insurance

Administrative overhead

Catalyst allowance
                     16 h/day
                     240 days/yr
                     3840 h/yr

                     $12.07/h
                     $10.97/h
                     $12.07/h
                     $0.0242/kWh
                     $0.107/liter ($0.396/gal)
                     16.28% of capital cost
                     13.14% of capital cost
                     11.02% of capital cost

                     2% of capital cost

                     2% of capital cost

                     $2120/yr per Nm3/s
                     ($1.00/yr per scfm)
                                8-51

-------
8.2.3.1  Waterborne Paints—

     Waterborne coating systems reportedly require more  operating

and maintenance labor than solvent-borne coating  systems.

Estimates of additional labor needed for waterborne guide  and

topcoats are as follows:

                            Solvent-borne         Solvent-borne
                               lacquer               enamel

Operating labor                  10                    20

Maintenance labor                 7                      7

Supervision                       1                      2

The cost of maintenance materials and supplies is assumed  to be

equal to the cost of maintenance labor.

     Waterborne painting facilities require considerably more

energy than solvent-borne coating facilities.  Most of this

additional energy is used to evaporate the water and condition

the incoming air to the spray booths.

     Factors used in calculating the annualized costs of water-

borne coating facilities are shown in Table 8-21.

     The cost of controlling water pollution associated with

waterborne coating facilities is estimated to be comparable to

that at solvent-borne coating facilities.  Waterborne paints are

believed to cost more than conventional coatings, but they also

have a higher solids content,  Although a comparison of paint

prices was not available from the paint manufacturers or the

automobile industry, the above would seem to indicate that the

net applied paint cost is comparable for enamel and lacquer
                                8-52

-------
coatings and waterborne coatings.  General Motors uses waterborne
paint at two of its three California plants.  Their response to
an inquiry by the California Air Resources Board  did not mention
any net cost difference between waterborne and solvent-borne
coatings.
     Figures 8-2 and 8-3 show annualized cost differentials of
waterborne coating operations compared with solvent-borne opera-
tions at various line speeds.  Tables 8-22  and 8-23  present
annualized costs and cost-effectiveness of this control option
for automobiles and light-duty trucks.
8.2.3.2  Incineration—
     Cost factors used to compute the annualized costs of con-
trolling VOC emissions from the guide-coat and topcoat operations
are shown in Table 8-21.   Operating labor for each incinerator,
regardless of size [maximum size 23.5 Nm /s (50,000 scfm)],
includes 1.0 man-hour for each startup and shutdown and 0.25
man-hour per shift for monitoring.  Each incineration unit must
be tuned up and the heat exchangers must be cleaned twice
yearly.  These items, together with miscellaneous maintenance,
require an estimated 64 man-hours/year per incinerator.  Operating
and maintenance labor is independent of incinerator size.
     It is estimated that the catalyst in catalytic incinerators
must be replaced yearly at a cost of $2120/Nm  per second ($1.00/
scfm).
                               8-53

-------
 u
 a
 <0

 tr
 I/)
 u

 fl
 F^


 "o
 TJ



 O
                  I
                               I
           30     40     SO     60    70


                   LINE SPEED,  vehicles/h
80
90
Figure 8-2.   Cost differential - control  option IA

for guide  coat and topcoat, waterborne enamel vs.

solvent-borne enamel .
                       8-54

-------
i-
Ł  5
cr
o
•o   2
o
          30     40     50     60     70
                   LINE SPEED, vehicles/h
80     90
Figure  8-3.   Cost differential  - control option  IA
for guide  coat and topcoat, waterborne enamel vs.
solvent-borne lacquer.
                        8-55

-------
                         TABLE 8-22.   COMPARABLE COSTS OF CONTROL OPTION IA

                                        FOR SURFACE  COATING OF AUTOMOBILES

coating with which
option is compared

Enamel



Lacquer


Line speed.
vehiclea/h
40
55
85 '

40
55
85
Uncontrolled
Mg/yr
(tons/yr)
1260
(1390)
1740
(1920)
2700
(2970)

3010
(3310)
4140
(4560)
6390
(7040)

efficiency,
percent
80.7
80.7
80.7

91.9
91.9
91.9
VOC emission
Mg/yr
(tons/yr)
1020
(1120)
1410
(1550)
2170
(2390)

2780
(3060)
3810
(4200)
5880
(6480)
Annual! zed
Direct
operating
1.38
1.89
2.92

1.04
1.42
2.19
cost. $
Capital
charges
1.28
1.75
2.70

0.10
0.13
0.20
10*
Total
2.66
3.64
5.62

1.14
1.55
2.39
Cost-
S/Mg VOC removed
($/ton VOC removed)
2610
(2370)
2580
(2350)
2590
(2350)

410
( 372)
407
( 369)
406
( 370)
00
I
en
eh

-------
                      TABLE 8-23.    COMPARABLE COSTS OF CONTROL OPTION  IA
                                   FOR SURFACE COATING OF LIGHT-DUTY  TRUCKS
oo
Ul
Type of conventional
coating with which
option is compared

Enamel


Lacquer

Line speed ,
vehicles/h
30
38
48
30
38
48
Uncontrolled
VOC emissions,
Mg/yr
(tons/yr)
990
(1090)
1250
(1380)
1580
(1740)
2750
(3030)
3480
(3840)
4400
(4850)
Control
efficiency,
percent
79.4
79.4
79.4
92.6
92.6
92.6
VOC emissions
reduction,
Mg/yr
(tons/yr)
785
( 865)
1000
(1100)
1250
(1380)
2550
(2810)
3230
(3560)
4080
(4500)
Annualized costs, $10
Direct
operating
1.03
1.31
1.65
0.78
0.98
1.24
Capital
charges
0.96
1.21
1.53
0.07
0.09
0.11
Total
1.99
2.52
3.18
0.85
1.07
1.35
Cost-
effectiveness,
$/Mg VOC removed
($/ton VOC removed)
2540
(2300)
2540
(2300)
2540
(2300)
333
( 302)
330
( 300)
330
( 300)

-------
     Because total exhaust rates differ between solvent-borne
lacquer and solvent-borne enamel operations, the annualized
costs also vary; control of emissions from solvent-borne lacquer
is more costly.
     Heat recovered by the primary heat recovery systems with
the incinerators on spray booths is used to preheat the spray
booth exhausts.  The resultant savings is not considered a
credit from a cost standpoint; rather it is accounted for in the
decreased fuel rate.  On the other hand, the heat obtained from
secondary heat recovery can be considered because it is used for
production facilities.  All the incinerators used on flash-off
tunnel and oven exhausts have primary and secondary heat recovery.
The heat recovered in the secondary heat exchanger is credited
at the rate of $2.68/GJ ($2.83/106Btu).
     Tables 8-24  through 8-31  present the annualized costs of .
the control options IB-T, IB-C, II-T, and II-C for automobiles
and light-duty trucks.
8.2.4  Cost-effectiveness of the Control Options
     In this section a comparison of the annualized costs of the
various alternative control options to the quantities of VOC
removed by them, or a cost-effectiveness analysis,  is made on
each of the control options and each of the model coating facili-
ties.
     The purpose of this comparison is to determine 1)  which is
the most practical control option, 2) whether the options differ
in cost-effectiveness, and 3)  whether the expenditure of

                               8-58

-------
                      TABLE  8-24.  COMPARABLE COSTS OF  CONTROL OPTION  IB-T

                                    FOR SURFACE COATING OF AUTOMOBILES
Type of conventional
coating with which
option !• compared

Enamel


Lacquer

Line apeed,
vehlclea/h
40
55
as
40
55
85
Uncontrolled
VOC emissions,
M9/yr
(tons/yr)
1260
(1390)
1740
(1920)
2700
(2970)
3010
(3310)
4140
(4S60)
6390
(7040)
Control
efficiency,
percent
77
77
77
85
85
85
VOC emission
reduction,
Mg/yr
(tona/yr)
970
(1070)
1340
(1480)
2080
(2280)
2560
(2820)
3520
(3880)
5420
(5980)
Annuallxed coat, $10
Direct
operating
3.43
4.84
7.27
8.94
12.30
19.00
Capital
charges
0.73
0.95
1.45
1.75
2.42
3.69
Secondary
heat
recovery
credit
(0.05)
(0.07)
(0.11)
(0.14)
(0.18)
(0.28)
rotai*
4.11
5.62
8.61
10.6
14.5
22.4
Cost-
effectiveness,
f/Mg VOC removed
(*/ton VOC removed)
4240
(3840)
4200
(3800)
4150
(3780)
4140
(3760)
4120
(3740)
4130
(3750)
00
en
UD
       Rounded

-------
                    TABLE  8-25.   COMPARABLE  COSTS OF CONTROL OPTION  IB-C
                                   FOR SURFACE  COATING OF AUTOMOBILES
Type of conventional
coating with which
option !• compared

Enamel


Lacquer

Line speed,
vehicles/h
40
55
85
40
55
85
Uncontrolled
VOC emissions,
Mg/yr
(tons/yr)
1260
(1390)
1740
(1920)
2700
(2970)
1010
(1110)
4140
(4560)
6390
(7040)
Control
efficiency,
percent
77
77
77
85
85
85
VOC emission
reduction,
M9/yr
(tons/yr)
970
(1070)
1340
(1480)
2080
(2300)
2560
(2800)
3520
(3880)
5430
(5980)
Annuallsed cost, |106
Direct
operating
2.18
'3.00
4.61
5.67
7.78
12.0
Capital
charges
0.89
1.19
1.81
2.22
3.05
4.69
Secondary
heat
recovery
credit
(0.03)
(0.04)
(0.06)
(0.07)
(0.10)
(0.16)
total*
3.04
4.15
6.36
7.82
.0.7
16.5
Cost-
effectiveness,
$/Hg VOC removed
($/ton VOC removed)
3130
(2840)
3100
(2800)
3060
(2770)
3060
(2790)
3040
(2760)
3040
(2760)
CO
       Rounded

-------
                     TABLE 8-26.   COMPARABLE COSTS  OF CONTROL OPTION II-T
                                    FOR SURFACE COATING OF AUTOMOBILES


Type of conventional
coating with which
option ia compared


Enamel





Lacquer






Line (peed.
vehicles/h
40

55

85

40

SS

as


Uncontrolled
VOC emissions.
Mg/yr
(tons/yr)
1260
(1390)
1740
(1920)
2700
(2970)
3010
(3310)
4140
(4560)
6390
(7040)


Control
efficiency.
percent
90

90

90

90

90

90


VOC emission
reduction,
Mg/yr
(tona/yr)
1130
(1250)
1570
(1730)
2430
(2670)
2710
(2980)
3730
(4100)
5750
(6340)
Annualised coat, $10


Direct
operating
4.02

5.53

8.49

9.52

13.1

20.2



Capital
charges
0.91

1.16

1.75

1.94

2.62

3.99

Secondary
heat
recovery
credit
(0.06)

(0.08)

(0.12)

(0.14)

(0.19)

(0.30)



M
rotal
4.87

6.61

10.1

11.3

15.5

23.9


Cost-
effectiveness,
$/Mg VOC removed
(S/ton VOC removed)
4310
(3900)
4210
(3830)
4160
(3780)
4170
(3800)
4160
(3780)
4160
(3780)
CO
cr>
        Rounded

-------
                     TABLE  8-27.   COMPARABLE COSTS  OF CONTROL OPTION II-C
                                    FOR SURFACE COATING OF AUTOMOBILES
Type of conventional
coating with which
option la compared

Enamel


Lacquer

Line speed,
vehlclea/h
40
55
85
40
ss
as
Uncontrolled
VOC emissions,
Mg/yr
(tons/yr)
1260
(1390)
1740
(1920)
2700
(2970)
3010
(3310)
4140
(4560)
6390
(7040)
Control
efficiency,
percent
90
90
90
90
90
90
VOC emission
reduction,
Mg/yr
(tons/yr)
1130
(12SO)
1570
(1730)
2430
(2670)
2710
(2980)
3730
(4100)
5750
(6340)
Annuallsed cost, $10
Direct
operating
2.56
3.51
5.39
6.05
8.29
12.8
Capital
charges
1.08
1.42
2.16
2.41
3.28
5.03
Secondary
heat
recovery
credit
(0.03)
(0.04)
(0.07)
(0.08)
(0.10)
(0.16)
rotal*
3.61
4.89
7.48
8.38
1.5
7.7
Cost-
effectiveness.
$/Hg VCX; removed
($/ton VOC removed)
3200
(2900)
3120
(2820)
3080
(2800)
3100
(2810)
3080
(2800)
3080
(2800)
00
at
ro
       Rounded

-------
                   TABLE  .8-2&   COMPARABLE COSTS OF  CONTROL OPTION IB-T
                                FOR SURFACE COATING OF LIGHT-DUTY TRUCKS
Type of conventional
coating with which
option is compared

Enamel


Lacquer

Line speed,
vehiclea/h
30
38
48
30
38
48
Uncontrolled
VOC emissions,
Mg/yr
(tons/yr)
990
(1090)
1250
(1380)
1580
(1740)
2750
(3030)
3480
(3840)
4400
(4850)
Control
efficiency,
percent
78
78
78
85
85
as
VOC emissions
reduction,
M9/yr
(tons/yr)
770
( 850)
975
(1080)
1230
(1360)
2340
(2580)
2960
(3260)
3740
(4120)
Annualized cost, $10
Direct
operating
2.70
3.42
4.34
8.28
10.4
13.2
Capital
charges
O.SO
0.73
0.90
1.62
2.03
2.55
Secondary
heat
recovery
credit
(0.04)
(0.05)
(0.07)
(0.12)
(0.16)
(0.20)
Total*
3.26
4.10
5.17
9.78
12.3
15.6
Coat-
el fectivenesa,
J/Mg VOC removed
($/ton VOC removed)
4220
(3840)
4200
(3810)
4200
(3810)
4180
. (3810)
4160
(3770)
4170
(3780)
CO
CO
     * Rounded

-------
                     TABLE 8-29.  COMPARABLE  COSTS OF CONTROL OPTION IB-C
                                 FOR SURFACE  COATING OF LIGHT-DUTY  TRUCKS
Typ* of conventional
coating with which
option is compared

Enamel


Lacquer

Line spaed,
vehicles/h
30
38
48
30
38
48
Uncontrolled
VOC emissions,
Mg/yr
(tons/yr)
990
(10901
1250
I13BO)
1580
(1740)
2750
(3030)
3480
(3840)
4400
(4850)
Control
efficiency,
percent
78
78
78
85
85
85
VOC emissions
reduction,
Mg/yr
(tons/yr)
770
( 850)
975
(1080)
1230
(1360)
2340
(2580)
2960
(3260)
3740
(4120)
Annuallted cost, $10
Direct
operating
1.72
2.17
2.75
5.25
6.64
8.39
Capital
charges
0.72
0.89
1.11
2.06
2.59
3.29
Secondary
heat
recovery
credit
(0.02)
(0.02)
(0.04)
(0.07)
(0.09)
(0.11)
Total*
2.42
3.04
3.82
7.24
9.14
11.6
Cost-
effectiveness,
J/Mg VOC removed
(S/ton VOC removed)
3140
(2850)
3110
(2820)
3100
(2820)
3100
(2820)
3090
(2800)
3100
(2820)
00
      a Rounded

-------
                    TABLE 8-30.   COMPARABLE COSTS OF CONTROL OPTION II-T

                                 FOR SURFACE COATING OF LIGHT-DUTY TRUCKS


Type of conventional
coating with which
option is compared


Ename 1





Lacquer






Line •peed>
vehicles/h
30

38

48

30

38

48


Uncontrolled
VOC emissions.
Mg/yr
Itons/yr)
990
(1090)
1250
(1380)
1S80
•1740)
2750
(3030)
3480
(3840)
4400
(4850)


Control
efficiency.
percent
90

90

90

90

90

90


VOC emissions
reduction.
Mg/yr
(tons/yr)
890
( 980)
1120
(1240)
1420
(1570)
2480
(2730)
3130
(3460)
3960
(4360)
Annualized cost, $10


Direct
operating
3.15

3.98

5.04

8.72

11.0

13.9



Capital
cherges
0.72

0.91

1.10

1.75

2.21

2.74

Secondary
heat
recovery
credit
(0.04)

(0.06)

(0.07)

(0.13)

(0.16)

(0.20)



total*
3.83

4.83

6.07

10.3

13.1

16.4


Cost-
effectiveness,
l/Hg VOC removed
($/ton VOC removed)
4290
(3900)
4300
(3900)
4280
(3870)
4150
(3770)
4180
(1790)
4140
(3760)
CD
I
a\
in
      * Rounded

-------
                     TABLE  8-31.   COMPARABLE COSTS OF CONTROL OPTION II-C

                                  FOR SURFACE COATING OF LIGHT-DUTY  TRUCKS
Typa of conventional
coating with which
option la compared

Enamel •


Lacquer

Line speed,
vehlclea/h
30
38
48
. 30
31
48
Uncontrolled
VOC emlaalona.
Hg/yr
(tona/yr)
990
11090)
12SO
(1380)
1580
(1740)
2750
(3030)
3480
(3840)
4400
(48SO)
Control
efficiency,
percent
90
90
90
90
90
90
VOC emissions
reduction
Hg/yr
(tons/yr)
890
I 980)
1120
(1240)
1420
(1570)
2480
(2730)
3130
(3460)
3960
(4360)
Annuallsed coat, $10
Direct
operating
2.0
2.53
3.20
5.53
7.0
8.84
Capital
chargea
0.8S
1.08
1.33
2.20
2.78
3.50
Secondary
heat
recovery
credit
(0.03)
(0.03)
(0.04)
(0.07)
(0.09)
(0.11)
rotal*
2.82
3.58
4.49
7.66
9.69
L2.2
Cost-
•ffectiveneaa,
5/Hg VOC removed
($/ton VOC removed)
3170
(2880)
3200
(2890)
3160
(2860)
3090
(2810)
3100
(2800)
3080
(2800)
CO
en
en
        Rounded

-------
additional monies can be justified by the amount of pollutant
controlled.
     Tables 8-22  and 8-23  list these cost-effectiveness quotients
for control option IA.  It is clear from these tables that the
quotients are virtually identical for automobiles and light-duty
trucks when compared with the base case of solvent-borne enamels,
but there is a spread of approximately 20 percent between the
two when compared with the base case of solvent-borne lacquers.
This spread results from the higher lacquer requirements for
truck bodies; when lacquer is used, a light-duty truck requires
about 23 percent more topcoating than an automobile, but when
enamel is used, the difference is only about 5 percent.
     The VOC emitted by coating operations using solvent-borne
lacquers are more than twice those emitted by operations using
solvent-borne enamels.  This results partly from the higher
solvent content of lacquers and partly from the additional paint
required for each vehicle.  On the other hand, lacquers require
greater volumes of exhaust gases.  Although emissions generated
from lacquers cost more to control than those from enamels, more
VOC is removed and the cost-effectiveness remains about the same
for a given control option using incinerators.
     There is a large difference, however, in the cost-effective-
ness of waterborne coatings compared with enamels and waterborne
coatings compared with lacquers because waterborne coatings need
less spray booth, flash-off tunnel, and oven facilities than do
solvent-borne lacquer coatings, whereas they need more of these
                               8-67

-------
facilities than do solvent-borne enamels.  Figures 8-4 and 8-5

compare the cost-effectiveness of each of the control options.

Control option IA, the use of waterborne paint, is the most

cost-effective option in all cases.

     As the cost-effectiveness curves indicate, no economy-of-

scale occurs in controlling the larger facilities because these

facilities require proportionately higher exhaust gas rates and

the maximum sized incinerator is 23.5 Nm /s (50,000 scfm), thus

necessitating more incinerators.  Thus gas incineration costs

are proportional to plant capacity.  Neither does control option

IA (a switch to waterborne paint) exhibit an economy-of-scale

for basically the same reason; more pieces of the same size

equipment are required in larger facilities.  Finally, for all

control options, the operating costs are larger than the capital

charges.  The nature of these costs is such that they are directly

proportional to production rate, which also militates against

economics-of-scale.

     The cost-effectiveness of each of the control options may

be summarized as follows:

          Option              Cost-effectiveness, $/Mg

          IA                   330 - 410 (lacquer-base case)
                              2500 - 2600 (enamel-base case)
          IB-T                4200
          IB-C                3100
          II-T                4200
          II-C                3100
                                8-68

-------
(/> 
-------
   10,000
     5000
     4000
     3000

     2000
O>f—
     1000
ae,
      500
      400

      300

      200
100
                                       1
I
            30     40     50     60     70     80

                        LINE SPEED, vehicles/h
      90
— — — —   CONTROL OPTIONS IB-T AND II-T - AUTOMBILES AND TRUCKS
                                           (LACQUER AND ENAMEL)
             CONTROL OPTIONS IB-C AND II-C - AUTOMOBILES AND TRUCKS
                                           (LACQUER AND ENAMEL)
          Figure  8-5.  Cost-effectiveness of control
          options as applied to different vehicle types
          and different  types of  solvent-borne coatings,
                            8-70

-------
8.2.5  Control Cost Comparison


     It is difficult to compare the estimated cost of waterborne


coating operations with costs reported at actual installations.


For example, cost data presented to the California Air Resources


Board by two of the major automobile manufacturers  cannot be


compared directly with the estimated costs of waterborne opera-


tions presented in this report because the figures are aggregated,


include many items not included in Control Option IA. are based


on a "tear-out/redo" premise, and are considered by the staff of


the Air Resources Board to be on .the high side.  The turnkey


costs of spray booths, flash-off tunnels, .and ovens for waterborne


paint were provided by vendors, however, and the quoted prices


are substantially lower than the estimate given the California


Air Resources Board.  Because no direct cost data could be


extracted from the California report, the vendors'  turnkey


prices were used.


     Much of the increase in annualized coating costs is due to


increased energy consumption when using waterborne paints.  In


this case some comparison can be made with the data that GM


supplied to the California Air Resources Board.  The actual


recorded incremental increase at the Van Nuys plant (which has

                                                             9
a production rate of 60 vehicles/h) was 89.4 TJ/yr (84.8 x 10


Btu/yr).  The study estimate for Control Option IA at a plant


producing 55 vehicles/h includes an incremental increase of 76.5


TJ/yr  (72.4 x 109 Btu/yr) for additional fuel oil and 44.6 TJ/yr


(42.3 x 10 ) for additional electricity.
                              8-71

-------
     Incinerator costs used in this study are based on a 1976



report  and updated to 4th quarter 1977 prices.  These prices



compare reasonably well with older installations as reported in

              g

a 1972 report.   The prices shown in the 1972 report were also



updated to 4th quarter 1977.  Figures 8-6, 8-7, and 8-8 compare


                                                     8 9
costs used in this study with costs in other studies. '



     Installation costs of the incinerators were estimated inde-



pendently.  Installed costs were then compared with the incinera-



tor purchase prices.  The ratio of estimated installed cost to



purchase price ranged from 2.1 to 2.8.  This compares favorably

                                                              g

with previously reported ratios, which ranged from 1.2 to 3.7.



8.2.6  Base Cost of the Facility



     For purposes of comparison, a base cost of solvent-borne



painting facilities has been developed under this study.  This



base cost includes the complete cost of an electrodeposition



(EDP) prime coating facility, a guide-coat facility, a topcoat



facility, and touch-up facilities.  The cost of related support



facilities such as employee parking, material storage, and a



cafeteria is also included.



     Because this is a study estimate, costs are not detailed. It



is assumed that the costs o'f painting facilities for automobiles



and light-duty trucks are basically the same for both.  Total



costs were estimated for a facility that handles 55 vehicles per



hour.  For study purposes, it is assumed that base costs are



proportional to line speed.  The base cost of a paint shop that



uses lacquer is higher than the cost of one that uses enamel.
                                8-72

-------
                400
                300
              C
                                     OCOSTS USED IN THIS STUDY

                                     A COSTS FROM REFERENCE 8


                                     DCOSTS FROM REFERENCE 9
-vj
oo
                200
              t?

              I
                 50
                                                10
CAPACITY. Nm3/s
                      15
20
                           10
20                 30
   CAPACITY. 1000 scfm
                              40
              50
                           Figure 8-6.   Comparison of purchase  prices of  catalytic

                           incinerators with primary  heat  recovery.

-------
             400
             300
                                       O COSTS USED IN THIS STUDY

                                       A COSTS FROM REFERENCE 8
           X

           c
           O
           •o
                                                            A
CD
I
•vl
f
i
             200
                                          A
             100
                                          A
              50
                                             I
                                                                 I
                                            10  CAPACITY. Nn)3/s     15

                                           I	I	
                                                                        20
                        10
                               20                30
                                  CAPACITY. 1000 scfra
40
SO
                         Figure  8-7.   Comparison of purchase  prices of  thermal

                         incinerators  with  primary heat  recovery.

-------
              400
oo

•vj
en
                                      O COSTS USED IN THIS STUDY

                                        COSTS FROM REFERENCE B

                                      Q COSTS FROM REFERENCE 9
                                             10
                                                CAPACITY. Nm3/s
15
                                           20                 30
                                             CAPACITY, 1000 scfm
20
               40
              i

              50
                          Figure  8-8.   Comparison  of pruchase  prices of  thermal

                          incinerators  with  primary and  secondary heat recovery.

-------
     Building space was estimated at 17,500 m2  (188,000 ft  ) for



lacquer facilities and 11,800 m2  (127,000 ft2)  for enamel facil-



ities.  These figures include 3,250 m2  (35,000  ft2) for EDP in



both instances.   In addition, 835 m2  (9,000 ft ) of building



space for employee services  (e.g., cafeteria and dispensary) and



employee parking facilities for 300 vehicles is included in the



base cost estimate.  This figure is based on 500 employees



working two shifts.  The following unit costs were used for real



estate:



          Buildings  -  $291.10/m2  ($26.20/ft2)



          Land       -  $ 24.80/m2  ($100,000/acre)



     Unit costs used for the spray booths, flash-off tunnels,



and ovens are shown in Table 8-9   and the aggregate line lengths



are shown in Table 8-32.



     Electrodeposition facilities include rinse tunnels, an



oven, and an EDP tank with ancillary equipment  such as conveyors,



electrical equipment, ventilation, and hooding.  An industry



representative reported that recent costs of retrofitted EDP



facilities ranged from $11.4 to $14.8 million,  and an average



facility cost $12.6 million.   One vendor's turnkey estimate for



a facility handling 55 vehicles per hour ranged from $6.5 to



$9.5 million.   The following is a breakdown of this estimate:



          EDP tank                 $2.0 to $3.5 million



          Rinse tunnels            $1.5 to $2.0 million



          Oven                     $6.5 to $4.0 million
                               8-76

-------
TABLE  8-32.   AGGREGATE LENGTHS OF SPRAY BOOTHS,
         FLASH-OFF TUNNELS, AND OVENS FOR PAINT SHOPS
                HANDLING 55 VEHICLES PER HOUR
                            [m  (ft)]
Facility
Spray booths
Flash-off tunnels
Ovens
Type of
solvent-borne paints
Lacquer
292 (956)
235 (772)b
735 (2408)
Enamel
147 (484)
100 (238) b
502 (1648)
Based on three topcoat lines for lacquer coatings and  two
topcoat lines for enamel coatings.

Includes 7.3 m (24 ft) of cooling area.
                          8-77

-------
The high side of this range  ($9.5 million)  comports  with the
retrofitted average of $12.6 million and was  used  in preparing
this estimate.  Tables 8-33  and 8-34 present  total base  costs
for various line speeds.
                               8-78

-------
TABLE 8-33.   BASE COST  OF  AN AUTOMOBILE AND LIGHT-DUTY
          TRUCK PAINT SHOP THAT USES SOLVENT-BORNE ENAMEL
Line speed, vehicles/h
Guide, top, and touch-
up coating facilities3
EDP facility3
Ancillary facilities
Totals
6
Installed costs, $10
30
7.2
5.7
0.3
13.2
38
9.1
7.3
0.4
16.8
40
9.6
7.6
0.4
17.6
48
11.5
9.2
0.5
21.2
55
13.2
10.5
0.6
24.3
85
20.4
16.2
0.9
37.5
Includes cost of  land  and  building
                               8-79

-------
TABLE 8-34.   BASE COST OF AN AUTOMOBILE AND LIGHT-DUTY
         TRUCK PAINT SHOP THAT USES SOLVENT-BORNE LACQUER
Line speed, vehicles/h
Guide, top, and touch-
up coating facilities3
EDP facility3
Ancillary facilities3
Totals
Installed costs, $106
30
12.5
5.7
0.3
18.5
38
15.8
7.3
0.4
23.5
40
16.6
7.6
0.4
24.6
48
19.9
9.2
0.5
30.6
55
22.8
10.5
0.6
33.9
85
35.1
16.2
0.9
52.2
Includes cost of land and building
                             8-80

-------
                           REFERENCES
1.   Memorandum from W. Johnson of U.S. EPA, Chemical Application
     Section, Durham, North Carolina, to W. Vatavuk of U.S. EPA,
     Economic Analysis Branch, Durham, North Carolina, April 12,
     1978.

2.   Building Construction Cost Data, 1978.  Robert Snow Means
     Company, Inc., Duxbury, Massachusetts,  p. 267.

3.   Personal communication between A. Knox of PEDCo Environmen-
     tal, Inc., Cincinnati, Ohio, and F. Steinhable of Sinks
     Manufacturing Company, Detroit, Michigan.  June 21, 1978.

4.   Personal communication between D. Henz of PEDCo Environ-
     mental, Inc., Cincinnati, Ohio, and J. Dwyer of George Kock
     & Sons, Evansville, Indiana.  May 25> 1978.

5.   Second Interim Report on Air Pollution Control Engineering
     and Cost Study of the Transportation Surface Coating Indus-
     try.  Springborn Laboratories, Inc., Enfield, Connecticut.
     EPA Contract No. 68-02-2062.  May 6, 1977.

6.   Report of Fuel Requirements, Capital Cost and Operating
     Expense for Catalytic and Thermal Afterburners.  Combustion
     Engineering Air Preheater, Industrial Gas Cleaning Institute.
     Stamford, Connecticut.  EPA-450/3-76-031.  September 1976.

7.   Proposed Model Rule for the Control of Volatile Organic
     Compounds from Automobile Assembly-line Coating Operations.
     Presented to the California Air Resources Board on January
     26, 1978, as Agenda Item 78-2-2.

8.   Rolke, R.W., et al.  Afterburner Systems Study.  Shell
     Development Company.  Emeryville, California.  NTIS Publica-
     tion No. PB-212-560.  August 1972.

9.   Capital and Operating Costs of Selected Air Pollution' Con-
     trol Systems.  GARD, Inc., Niles, Illinois.  EPA Publica-
     tion No. EPA-450/3-76-014.  Pp. 4-18 and 19.  September
     1976.

10.  Personal communication between D. Henz of PEDCo Environ-
     mental, Inc., Cincinnati, Ohio, and D. Twilley of Ford
     Motor Company, Detroit, Michigan.  June 21, 1978.
                              8-81

-------
8.3    Other Cost Considerations

       In addition to NSPS, the automotive industry will be impacted by
other safety, fuel economy, and noise-control regulations.  However,
the imposition of these other regulations probably will not affect the
results of the analysis contained in Section 8.4.
       A comprehensive study to evaluate the combined economic impact of
all government regulations on the automotive industry is presently being
conducted by A. T. Kearney, Inc.  Results are not available at this time.
                                   8-82

-------
8.4    Potential Economic Impact
8.4.1  Grass Roots New Lines

       Projected new source requirements include:  one car and one truck
line for General Motors, one truck line for Ford, one car line for Chrysler,
and no new lines for American Motors, Checker and International Harvester.
The projected economic impact of each considered alternative control option
on the required grass roots new lines is small, and the cost of compliance
with New Source Performance Standards should not, of itself, preclude the
construction of any of these lines.

8.4.2  Control Costs

       The absolute and relative magnitude of the estimated alternative
control costs for grass roots new lines, by firm, are shown in Tables
8-43, 8-44, 8-45, and 8-46.  In all cases, the estimated incremental
control costs are exceedingly small when viewed as a percentage of list
price for each manufacturer's lowest-priced automobile or light-duty
truck.
       The capital investment costs.of the alternative control options
are also exceedingly small in relation to the planned annual capital
expenditures of each firm.
       For General Motors, the annualized costs of a new line are, at
most, $3.70 per passenger car and $9.02 per light-duty truck.*  These
*The methodology used to derive each manufacturer's annualized costs on
 a per-unit basis, in keeping with traditional industry pricing practices,
 assumes that the incremental costs attributable to the New Source Perfor-
 mance Standard will be distributed by the manufacturer over all units sold
 rather than over the production volume of the new line.
                                 8-83

-------
                                                                                Table 8-43

                                                             ABSOLUTE AND RELATIVE  INCREMENTAL CONTROL COSTS
CO
(4th Quarter 1977 Dollars)
(Passenger
Car - General Motors)
Alternatives
Line Speed/Cost Category I
40 Passenger Cars/Hour
Annualized Cost
Annualized Cost/Passenger Carl
Annualized Cost/Passenger Car as a % of suggested
Manufact. Retail Price. April, 1978, $3.074.2
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen- •• *
ditures of $3.400,000,000 in 1983.3
55 Passenger Cars/Hour
Annualized Cost
Annualized Cost/Passenger. Car'
Annualized Cost/Passenger Car as a % of suggested
Manufact. Retail Price, April, 1978, $3,074.2
Investment Cost of Control Alternative •
Investment Cost as a % of Planned Capital Expen-
ditures of $3,400,000,000 in 1983. 3
85 Passenger Cars/Hour
Annualized Cost
Annualized Cost/Passenger Carl
Annualized Cost/Passgener Car as a % of suggested
Manufact. Retail Price, April, 1978, $3.074. 2
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen-
ditures of $3,400,000.000 in 1983. 3
'Total annualized costs were spread over the 1982 production volume
'consistent with the industry's pricing policies.
2The April 1978 published list price, as reported in Automotive News
IA

$1,140.000
$.18

.01%
$ 520,000

.02%

$1,550,000
$.24

.01%
$ 720,000

.02%

$2.390,000
$.37

.01%
$1,110,000

.03%
of 6,464.000

, was deemed
IB-T

$10,600,000
$1.64

.05%
$8,500,000

.25%

$14,500,000
$2.24

.07%
$11,800,000

.35%

$22,400,000
$3.47

.11%
$17.900,000

.53%
passenger cars.

acceptable as a
IB-C

$7,820,000 $11
$1.21

.04%
$10,900,000 $9

.32%

$10.700,000 $15
$1.66

.05%
$15,000,000 $12

.44%

$16,500,000 $23
$2.55

.08%
$23,000,000 $19

.68%
This was judged

base price for
II-T

,000,000
$1.70

.06%
,470,000

.28%

,500,000
$2.40

.08%
,800,000

.38%

.900,000
$3.70

.12%
,300,000

.57%



II-C

$8,380,000
$1.30

.04%
$11,800,000

.35%

$11,500,000
$1.78

.06%
$16,200,000

.48%

$17,700.000
$2.74
•
.09%
$24,700.000

.73%



            comparison purposes.  It was assumed that the additional price of optional equipment would offset any price
            discount by the dealer.

                 figure was an estimate provided by C. Cavalieri of the Bank of America.

-------
                                                                     Table 8-44

                                                  ABSOLUTE AND RELATIVE INCREMENTAL CONTROL COSTS
(4th Quarter 1977 Dollars)
(Light-Duty Trucks - General Motors)
Alternatives
Line Speed/Cost Category
30 Trucks/Hour
Annualized Cost
Annualized Cost/Truck'
Annualized Cost/Truck as a X of suggested
Manufact. Retail Price. April, 1978, $4,233.2
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen-
ditures of $3,400,000,000 in 1982.3
38 Trucks/Hour
Annualized Cost
Annualized Cost/Truck!
Annualized Cost/Truck as a % of suggested
°° Manufact. Retail Price, April, 1978, $4,233.2
Co Investment Cost of Control Alternative
*•" Investment Cost as a % of Planned Capital Expen-
ditures of $3,400,000,000 in 1982. 3
48 Trucks/Hour
Annualized Cost
Annualized Cost/Truck!
Annualized Cost/Truck as a % of suggested
Manufact. Retail Price, April, 1978, $4,233.2
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen-
ditures of $3,400,000,000 in 1982. 3
I IA
$ 850,000
$.47
.01%
• $ ,390,000
.01%
$1,070,000
$.59
.01%
$ 500,000
.02%
$1,350,000
$.74
.02%
$ 630,000
.02%
IB-T
$9,780.000
$5.38
.13%
$7,830,000
.23%
$12.300,000
$6.76
.16%
$9,220,000
.27%
$15,600,000
$8.58
.20%
$12,700,000
.37%
IB-C
$7,240,000
$3.98
.09%
$10,100,000
.30%
$9,140,000
$5.02
.12%
$12,700,000
.37%
$11.600,000
$6.38
.15%
$16,100,000
.47%
II-T
$10,340,000
$5.68
.13%
$8,440,000
.25%
$13.100,000
$7.20
.17%
$10,100,000
.30%
$16,400,000
$9.02
'.21%
$13.600,000
.40%
II-C
$7,660,000
$4.21
.10%
$10,800,000
.32%
$9,690,000
$5.33
.13%
$13.600,000
.40%
$12.230,000
$6.72
.16%
$17,200,000
.51%
'Total annualized costs were spread over the 1982 production volume of 1,819,000 trucks.   This was judged
 consistent with the industry's pricing policies.

2The April 1978 published list price, as reported in Automotive News, was deemed acceptable as a base price for
 comparison purposes.  It was assumed that the additional price of optional equipment would offset any price
 discount by the dealer.
3This figure was an estimate provided by C. Cavalieri of the Bank of America

-------
                                                                     Table 8-45

                                                  ABSOLUTE AND RELATIVE INCREMENTAL CONTROL COSTS
(4th
Quarter 1977 Dollars)
(Light-Duty Trucks -
Ford)



Alternatives
Line Speed/ Cost Category I
30 Trucks/hour
Annualized Cost
Annualized Cost/Truck*
Annualized Cost/Truck as a % of suggested
Manufact. Retail Price, April, 1978, $4,221.2
Investment Cost of Control Alternative
investment Cost as a % of Planned Capital Expen-
ditures of $2,400,000,000 in 1980.3
38 Trucks/Hour
Annualized Cost
Annualized Cost/Truck^
Annualized Cost/Truck as a % of suggested
oo Manufact. Retail Price, April, 1978, $4,221.2
Ł2 Investment Cost of Control Alternative
CTI Investment Cost as a % of Planned Capital Expen-
ditures of $2,400,000,000 in 1980.3
48 Trucks/Hour
Annualized Cost
Annualized Cost/Truck^
Annualized Cost/Truck as a % of suggested
Manufact. Retail Price, April, 1978, $4,221.2
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen-
ditures of $2,400,000.000 in 1980. 3
IA
$1,990.000
$1.49
.04%
$5.650.000
.24%
$2,520.000
$1.89
.04%
$7,150,000
.30%
$3,180,000
$2.39
.06%
$9,050,000
.38%
IB-T
$3,260,000
$2.45
.06%
$2,910,000
.12%
$4,100,000
$3.08
.07%
$3,930,000
. .16%
$5,180,000
$3.89
.09%
$4,420,000
.18%
IB-C
$2,420,000
$1.82
.04%
$3.510,000
.15%
$3,030,000
$2.27
.05%
$4,340,000
.18%
$3,820,000
$2.87
.07%
$5,450,000
.23%
Il-T
$3,830,000
$2.87
.07%
$3,520.000
.15%
$4,830.000
$3.62
.09%
$4,830,000
.20%
$6,070,000
$4.55
.11%
$5,380.000
.22%
1I-C
$2,830,000
$2.12
.05%
$4,200.000
.18%
$3.580.000
$2.69
.06%
$5,270.000
.22%
$4,490,000
$3.37
.08%
$6, SOU, 000
.27%
'Total annualized costs were spread over the 1980 production volume of 1,333,000 trucks.  This was judged
 consistent with the industry's pricing policies.

2The April 1978 published-list price, as reported in Automotive News,  was deemed acceptable as a base price for
 comparison purposes.  It was assumed that the additional price of optional equipment would offset any price
 discount by the dealer.

      figure was an estimate provided by C. Cavalieri of the Bank of America.

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                                                                     Table 8-16

                                                  ABSOLUTE AND RELATIVE  INCREMENTAL CONTROL COSTS
(4th Quarter 1977 Dollars)
(Passenger Car - Chrysler)

Line Speed/Cost Category
10 Passenger Cars/Hour
Annuali zed Cost
Annualized Cost/Passenger Carl
Annualized Cost/Passenger Car as a % of suggested
Manufact. Retail Price, April, 1978, $3,706.2
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen-
ditures of $780,000,000 in 1980.3
55 Passenger Cars/Hour
Co Annualized Cost
• Annualized Cost/Passenger Carl
-5 Annualized Cost/Passenger Car as a % of suggested
Manufact. Retail Price, April, 1978, $3,706.z
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen-
ditures of $780,000,000 in 1980. 3
85 Passenger Cars/Hour
Annualized Cost
Annualized Cost/Passenger Carl
Annualized Cost/Passgener Car as a % of suggested
Manufact. Retail Price, April, 1978, $3,706.2
Investment Cost of Control Alternative
Investment Cost as a % of Planned Capital Expen-
ditures of $780,000,000 in 1980. J

I IA
12,660,000
$1.76
.05%
$7,530,000
1.0*
$3,640,000
.$2.40
.06%
$10,300,000
1.3%
$5,620,000
$3.71
.IX
$16,000,000
2. IX
Alternatives
1B-T
$4,110.000
$2.71
.07*
$3,540,000
.5*
$5,620,000
$3.71
.1%
$4,630,000
.6%
$8,610,000
$5.68
.2%
$7,000,000
.9%
IU-C
$3,040,000
$2.01
.05%
$4,350,000
.6%
$4,150,000
$2.74
.07%
$5,850,000
.8%
$6,360,000
$4.20
.1%
$8,940,000
1.1X
II -T
$4,880,000
$3.22
.09%
$4,460,000
.6%
$6.610,000
$4.36
.12%
$5.640,000
.7%
$10.100,000
$6.67
.2%
$8,460.000
1.1X
ll-C
$3,610.000
$2.38
.06%
$5,314,000
.7%
$4,890,000
$3.23
.09%
$7,000,000
.9%
$7,480,000
$4.94
.1%
$10.620,000
1.4%
'Total annualized costs were spread over the 1980 production volumq of 1,515,000 passenger cars.  This was judged
 consistent with the industry's pricing policies.

^The April 1978 published list price, as reported in Automotive News, was deemed acceptable as a base price for
 comparison purposes.  It was assumed that the additional price of 'optional equipment would offset any price
 discount by the dealer.
^Estimate is based on data appearing in the June, 1978 issue of Fortune.

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annualized costs are, respectively, .1% of General Motors suggested list
price for its lowest-priced passenger car and only .2% of the suggested
list price for its lowest-priced light-duty truck.  The capital invest-
ment required for controlling both lines, assuming that the highest
annualized cost option was adopted by General Motors, is slightly less
than 1% of the firm's planned annual capital expenditures for 1982.
       For Ford, the annualized cost per truck is $4.55 at most.  This
is only .1% of the suggested list price for Ford's lowest-priced light-
duty truck.  The corresponding capital investment requirement, if Ford
selected this control option and line speed, is less than .3% of-Ford's
planned annual capital expenditures for 1980.
       For Chrysler, annualized costs per passenger car would be, at most,
$6.67, which amounts to only a .2% of Chrysler's suggested list price for
its lowest-priced car.  Should Chrysler choose this option, 1.1% of its
planned capital expenditures for 1980 would be needed for this purpose.
       As is evident in Tables 8-43, 8-44, 8-45, and 8-46, control costs
for each manufacturer tend to become higher as line speeds increase.
However, the control of hydrocarbon emissions is only one of many factors
that influence assembly line speed and construction, and, of itself, should
not strongly affect decisions in that area since the costs involved are
relatively insignificant.

8.4.3 • Potential Price Effect

       Several factors must be considered in analyzing potential price
increases attributable to New Source Performance Standards.  For one

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thing, not every manufacturer will incur NSPS-related cost increases in the
same year by reason of new assembly line construction.  Both.Chrysler and
Ford will probably incur such costs earlier than General Motors, and all
firms in the industry, including those not impacted by 1983, will eventually
face NSPS-related cost increases.
       Another point to be considered is that it will probably not be pos-
sible to determine which portion of the firm's price increase in any given
year is reflecting NSPS-related costs since, as a rule, current prices do
not reflect current cost in the automotive industry.
       The ability of Ford and Chrysler to adjust their revenue functions
so as to effect an NSPS-related price change will depend upon the pricing
behavior of General Motors, the industry price leader.  Ford and Chrysler
can adjust their revenue functions only within the constraints imposed
by the degree, timing and nature of price changes announced by General
Motors.
       A consideration of Ford's desired price increase relative to that of
General Motors suggests that there should be no adverse effects on Ford's
profitability function regardless of the size, timing, or nature of the
change.  The effect on Chrysler's revenue function is less predictable.
Critical to Chrysler's ability to adjust its revenue function is the nature
and magnitude of General Motor's desired price change.  If future price
changes by General Motors are not of the nature and magnitude to allow
Chrysler to pass along the entire NSPS increase, then Chrysler's profit-
ability function will in all probability be somewhat adversely affected.
       Recently, General Motors announced a new price increase strategy
that would permit small price increases to take place over a model year,
                                  8-89

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as frequently as the firm deems necessary.  By eliminating the traditional
annual increase in favor of the new system, manufacturers would appear to
be recovering cost increases more quickly.  While General Motors'  pricing
strategy imposes constraints on the ability of other members of the industry
to recover costs, the new pricing strategy may provide some relief in cost
recovery.  It is also possible that the system will "flatten out"  a degree of
the cyclical  nature of sales.  In effect, consumer purchasing patterns may
become more consistent throughout the year and less negatively influenced by
one large annual increase. To the extent that sales volume increase consis-
tently over the year, cost recovery may take place rapidly enough  to permit
lower total annual increases while maintaining target rates of return.
       Annual price increases for new cars have averaged approximately 5%
over the past five years and 4.38% over the past 10 years.  The magnitude
of hydrocarbon emission control cost increases, is, at most, a .1% per car
and .2% per light-duty truck for General Motors.  For Ford, the cost increase
is .1% per light-duty truck and for Chrysler, .2% per car.  Since  these price
changes are based on the lowest-priced vehicle for each manufacturer, the
percentage change should become almost infintesimal when compared  with the
range of vehicle prices for each manufacturer.  It is apparent that the rela-
tive magnitude of these projected NSPS-r.elated cost increases to historical
average price increases is small.  In itself, they should not cause signifi-
cant cost-price increases for cars or light-duty trucks through 1983.

8.4.4  Sensitivity Analysis
       The economic impact that has been projected in this chapter assumes
that market shares of each company will remain constant through 1983.  To
                                   8-90

-------
give recognition to the possibility that these shares could shift, a sensi-
tivity analysis, based on the assumption that each company had regained the
highest market share it had held in the past five years, was conducted.The
test indicated that were these market shares possible, General Motors would
need one additional truck line, Ford would need one car line and one addi-
tional truck line, Chrysler would need two additional car line and a truck
line, and American Motors would need a car line.
       It should be noted in this context that it is obviously impossible
for all companies to achieve their top market shares simultaneously since
the total share would add up to more than 100%.  In any case, the annualized
costs involved would still be minimal with .7% increase for cars and .2%
increase for trucks being the largest single unit price increase.
       The sensitivity test did not indicate any restructuring of relative
positions within the industry.  There were indications, however, that if
market shares for Chrysler and/or American Motors increased appreciably in
the passenger car market, there could be a resultant adverse effect on pro-
fit margins, since these firms would be producing more units with associated
NSPS cost increases and would still be in the position of being constrained
in passing along those costs by whatever pricing action was being taken by
General Motors.  However, the probability that either firm will be able to
recapture a substantially higher market share is remote.

8.5    Potential Socioeconomic and Inflationary Impacts

       The projected economic impact of each considered alternative control
system is small and the costs of NSPS should not, by themselves, preclude
construction of grass roots new lines.  Output and employment effects, if
                                   3-91

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they do occur, should be insignificant.
       Total investment costs to achieve compliance by 1983,  as shown in
Table 8-47, are projected to be approximately $47 million.   The fifth-year
annualized costs, including depreciation and interest, are  estimated at
approximately S57 million.  The maximum anticipated unit price increase
is 1%.
                                   8-92

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                                                         Table 8- 47
                                              INFLATIONARY IMPACT ASSESSMENT
                                         No. of      Fifth-Year        Investment    Number of Vehicles
                                         Lines    Annualized Costs	Costs	Impacted	
Manufacturer
                                                      (ooo's)
                                                           (ooo's)
                                    (ooo's)
              General Motors Corp.
                                       $40,300
                   $32,900
                  8,366
              Ford Motor Co.
                                       $ 6,070
                   $ 5,380
                  1,521
00
10
CO
Chrysler Corp.
$10,100
$ 8,460
1,657
                     Totals
                                       $56,470
                   $46,.740
                 11.544

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                               9.   RATIONALE
9.1  SELECTION OF SOURCE AND POLLUTANTS
     Volatile organic compounds (VOC) are organic compounds, measured by
Reference Methods 24 and 25, which are precursors to photochemical oxidants.
There has been some confusion in the past with the use of the term "hydro-
carbons."  In addition to being used in the most literal sense, the term
"hydrocarbons" has been used to refer collectively to all organic chemicals.
Some organics which are photochemical oxidant precursors are not hydro-
carbons (in the strictest definition) and are not always used as solvents.
For purposes of this discussion, organic compounds include all compounds of
carbon except carbonates, metallic carbides, carbon monoxide, carbon dioxide
and carbonic acid.
     Ozone and other photochemical oxidants result in a variety of adverse
impacts on health and welfare, including impaired respiratory function, eye
irritation, deterioration of materials such as rubber, and necrosis of
plant tissue.  Further information on these effects can be found in the
April, 1978 EPA document "Air Quality Criteria for Ozone and Other Photo-
chemical Oxidants," EPA-600/8-78-004.  This document can be obtained from
the EPA library at the address cited above.
     Industrial coating operations are a major source of air pollution
emissions of VOC. . Most coatings contain organic solvents which evaporate
upon drying of the coating, resulting in the emission of VOC.  Among the
largest individual operations producing VOC emissions in the industrial
coating category are automobile and light-duty truck surface coating opera-
tions.  Automobile and light-duty truck manufacturers employ a variety of
surface coatings, most often enamels and lacquers, to produce the protec-
                                     9-1

-------
tive and decorative finishes of their product.   These coatings normally use
an organic solvent base, which is released upon drying.
     As required by the Clean Air Act Amendments of 1977, a priority list
has been developed for use in developing standards of performance through
1982.  Automobile and light-duty truck surface coating operations rank 27
out of 59 on this list of sources to be controlled for VOC emissions.
     The surface coating operation is an integral part of an automobile or
light-duty truck assembly plant, accounting for about one-quarter to one-third
of the total space occupied by a typical assembly plant.   Surface coatings
are applied in two main steps, prime coat and topcoat.  Prime coats may be
water-based or organic solvent-based.   Water-based coatings use water as
the main carrier for the coating solids, although these coatings normally
contain a small amount of organic solvent.   Solvent-based coatings use
organic solvents as the coating solid carrier.   Currently about half of the
domestic automobile and light-duty truck assembly plants  use water-based
prime coats.
     Where water-based prime coating is used, it is usually applied by
electrodeposition (EDP).  The EDP coat is normally followed by a "guide
coat," which provides a suitable surface for application  of the topcoat.
The guide coat may be water-based or solvent-based.
     Automobile and light-duty truck topcoats presently being used are
almost entirely solvent-based.  One or more.applications  of topcoats are
applied to ensure sufficient coating thickness.   An oven  bake may follow
each topcoat application, or the coating may be applied wet on wet.
     In 1976, nationwide emissions of volatile organic compounds from
automobile and light-duty truck surface coating operations totaled about
                                     9-2

-------
135,000 metric tons.   Prime and guide coat operations accounted for about
50,000 metric tons with the remaining 85,000 metric tons being emitted from
topcoat operations.  This represents almost 15 percent of the volatile
organic emissions from all industrial coating operations.
     Volatile organic compounds comprise the major air pollutant emitted by
automobile and light-duty truck assembly plants.  Technology is available
to reduce VOC emissions and thereby reduce the formation of ozone and other
photochemical oxidants.  Consequently, automobile and light-duty truck
surface coating operations have been selected for the development of stan-
dards of performance.
9.2  SELECTION OF AFFECTED FACILITIES
     The prime coat,  guide coat, and topcoat operations usually account for
more than 80 percent of the VOC emissions from automobile and light-duty
truck assembly plants.  The remaining VOC emissions result from final top-
coat repair, cleanup, and coating of various small component parts.  These
VOC emission sources  are much more difficult to control than the main
surface coating line for several reasons.  First, water-based coatings
cannot be used for final topcoat repair, since the high temperatures
required to cure water-based coatings may damage heat sensitive components
which have been attached to the vehicle by this stage of production.
Second, the use of solvents is required for equipment clean-up procedures.
Third, add-on controls, such as incineration, cannot be used effectively on
these cleanup operations because they are composed of numerous small opera-
tions located throughout the plant.  Since prime coat, guide coat, and
topcoat operations account for the bulk of VOC emissions from automobile
and light-duty truck assembly plants, and control techniques for reducing
                                     9-3

-------
VOC emissions from these operations are demonstrated, they have been selected
for control by standards of performance.
     The "affected facility" to which the proposed standards would apply
could be designated as the entire surface coating line or each individual
surface coating operation.  A major consideration in selecting the affected
facility was the potential effect that the modification and reconstruction
provisions under 40 CFR 60.14 and 60.15, could have on existing assembly
plants.  These regulations apply to all source categories for which a
standard of performance has been promulgated.  A modification is any physical
                                                                 &
or operational change in an existing facility which increases air pollution
from that facility.  A reconstruction is any replacement of components of
an existing facility which is so extensive that-the capital cost of the new
components exceeds 50 percent of the capital cost of a new facility.   For
the standard of performance to apply, EPA must conclude that it is technically
and economically feasible for the reconstructed facility to meet the standards.
     Many automobile and light-duty truck assembly plants that have a spray
prime coat system will be switching to EDP prime coat systems in the future
to reduce VOC emissions to comply with revised SIP's.  The capital cost of
this change could be greater than 50 percent of the capital cost of a new
surface coating line.  If the surface coating line were chosen as the
affected facility, and if this switch to an EDP prime coat system were
considered a reconstruction of the surface coating line, all surface coating
operations on the line would be required to comply with the proposed stan-
dards.  Most plants would be reluctant to install an EDP prime coat system
to reduce VOC emissions if, by doing so, the entire surface coating line
might then be required to comply with standards of performance.  By desig-
nating the prime coat, guide coat, and topcoat operations as separate
                                     9-4

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affected facilities, this potential problem is avoided.  Thus, each surface
coating operation (i.e., prime coat, guide coat, and topcoat) has been
selected as an affected facility in the proposed standards.
9.3  SELECTION OF BEST SYSTEM OF EMISSION REDUCTION
     As discussed in Chapter 4, several techniques, or combinations of
techniques, have the potential for reducing VOC emissions from automobile
and light-duty truck surface coating operations.  This section will present
a summary of each of these control techniques, identify the control tech-
niques which are chosen as candidate "best systems," and, based on a com-
                                                             T
parison of the impacts of each candidate system, will recommend the best
system of emission reduction.
     Potential control techniques can be categorized as either new coating
systems or add-on controls.  The term new coatings refers to application of
coating materials containing relatively low levels of organic solvents.
Such materials include water-based coatings, high solids coatings, and
powder coatings.  Table 4.2 on page 4-38 presents a summary of the theore-
tical emission reduction potential associated with various new coatings.
Add-on controls are used to reduce emissions by either recovering or de-
stroying the solvents before they are emitted into the atmosphere.  Such
techniques include thermal and catalytic incinerators and carbon adsorbers.
9.3.1  NEW COATINGS
     The term "water-based" refers to any coating material which uses water
instead of an organic solvent as the carrier.  Most of the water-based
coating material used in the automobile industry is used as primer and is
applied by electrodeposition (EDP).  Application of coatings by EDP involves
dipping the automobile or truck to be coated into a bath containing a
dilute water solution of the coating material.  When electrical charges of
                                     9-5

-------
opposite polarity are applied to the dip tank and part, the coating material
deposits on the vehicle.  Many EDP systems presently in use are anodic
systems in which the vehicle to be coated is given a positive charge.
Cathodic EDP, in which the vehicle is negatively charged, is a new technology
which is expanding rapidly in the automobile industry.   Cathodic EDP pro-
vides better corrosion resistance and lower cure temperatures than anodic
systems.  Cathodic systems are also capable of applying better coverage in
deep recesses of parts.   It is expected that the automobile industry will
convert to cathodic systems as rapidly as schedules and equipment will
permit.
     The film thickness which can be applied by EDP is limited by the
insulating effect which the deposited layer of coating creates.   Due to the
limitation on film thickness, the EDP coat is usually followed by a spray
application of an intermediate coat (the "primer surfacer" or guide coat)
before topcoat application.  The guide coat is used to build film thickness,
permit sanding, and provide a more suitable surface for the application of
the topcoat.   Even in the case of spray prime, a guide coat is normally
applied over the primer to improve the surface prior to topcoating.
     Use of water-based coatings for guide coat and topcoat is limited to
application by conventional spraying devices.  Electrostatic spray, in
which the coating material is given an electrical charge, is considered
unsafe for large operations using water-based paints.   Presently there are
only two domestic plants which use water-based coatings for the guide coat
and topcoat.
     High solids coatings are a relatively new family of coating materials,
consisting of from 45 to 60 percent solids, that are being investigated in
                                     9-6

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the automotive industry.   The advantages of such coatings are their low
solvent content and, through the use of more reactive solvents, reduced
energy requirements for drying.   One problem preventing the use of higher
solids coatings in the automobile and light-duty truck industry is their
high working viscosity, which makes these materials unsuitable for use in
many existing application devices.  To overcome this problem, techniques
such as heated application and molecular weight reduction are being inves-
tigated, but so far these approaches have not proved technically feasible
for use in automobile and light-duty truck surface coating operations.
There are also some problems with the finish produced by high solids coatings.
Since the viscosity of the material is very high, it often produces  an
uneven, or "orange peel," effect on the surface.  High solids coatings are
also limited because they cannot be used in metallic finishes.  This type
of finish accounts for about 50 percent of the domestic demand.  It is
produced by adding small  metal flakes to the paint.  As the paint dries,
these flakes become oriented parallel to the surface where they reflect
light and add a sparkling effect to the finish.  With high solids coatings,
the viscosity of the paint prevents free movement of the flakes, and they
remain randomly oriented, producing a rough surface.  Although high solids
coatings hold a great deal of promise, they are still an emerging technology
and have not been demonstrated in the automotive industry.
     Powder coatings, are a special class of high solid coatings that
contain no organic solvents.  They are applied by electrostatic spray as
100 percent solid materials in dry powder form.  Currently, powder coatings
are being used on a limited basis for topcoating automobiles, both foreign
and domestic.  Their application is severely limited, however, because they
                                     9-7

-------
cannot be used in "metal!ic" automobile finishes.  At present, therefore,
the most acceptable use of powder coatings is for small component parts
which are not highly visible in the finished vehicle.
9.3.2  ADD-ON CONTROLS
     Incineration is the most universally applied technique for reducing
the emission of volatile organics from industrial processes.  Two types of
incinerators are used, thermal (or direct fired) and catalytic.  Thermal
incineration has been used to control emissions from bake ovens in automo-
bile and light-duty truck assembly plants.  In practice these units normally
achieve VOC emission reductions of over 90 percent.  Thermal incinerators
have not, however, been used for control of spray booth emissions.  Typically,
spray booths exhaust a high volume stream (95,000 to 200,000 cubic liters
per second) with very low VOC concentration (about 50 ppm).  Thermal incineration
of this exhaust stream would require a large amount of supplemental fuel.
Although oil can be used to fire thermal incinerators, natural gas is
normally used when it is available.  This large impact on scarce fuels
precludes thermal incineration as a viable technology for control of spray
booth VOC emissions.  There are, however, no technological problems with
the use of thermal incineration.
     Catalytic incineration makes use of a metal catalyst (such as platinum
or palladium) to promote the oxidation of volatile organies into carbon
dioxide and water without use of a flame.  Catalytic incineration permits
lower incinerator operating temperatures and, therefore, uses less energy
than thermal incineration.  While catalytic incineration is not currently
being employed in the automobile and light-duty truck industry for control
of VOC emissions, there are no major technical problems which would pre-
                                     9-8

-------
elude its use on bake oven exhaust gases.   For spray booth emission control,
however, the same considerations apply as in the case of thermal incineration
(i.e., high air flow, low vapor concentration, and the need to incorporate
an efficient heat recovery system to minimize the need for auxiliary heating
of inlet air).   In addition, natural gas must be used for air pre-heating
since oil firing tends to cause fouling of the catalyst.
     Carbon adsorption has been used successfully to control solvent emis-
sions in a number of industrial applications.  However, the ability of
carbon adsorption to control emissions from spray booths and bake ovens in
automobile and light-duty truck surface coating operations is uncertain.
The high volume/low VOC exhaust streams from spray booths would require
carbon adsorption units much larger than any that have ever been built.
Furthermore, spray booth exhaust contains water vapor, which would severely
impair the efficiency of the carbon bed by competing with the VOC for
available binding sites.  Also, a highly efficient filtering system would
be needed to remove particulate matter from the spray booth exhaust stream
in order to prevent plugging of the carbon bed.
     An additional major impediment to the use of carbon adsorption for
paint bake ovens in automobile and light-duty truck coating operations is
the high temperature (100°C to 200°C) of the oven exhaust stream.  At this
high temperature many volatile organics would not be adsorbed in the carbon
bed.  In order to solve the problem, huge refrigeration units would be
required for cooling this gas stream before it is passed through the carbon
bed.  In addition, the volatile organics in the oven exhaust are a much
higher boiling component than those in the spray booth exhaust, making
regeneration of the carbon bed more difficult.  Futhermore, the high oven
                                     9-9

-------
temperatures result in the polymerization of some VOC into resinous materials
which could foul the carbon bed.  As a result, filtering of the oven exhaust
stream would be required.  Equipment for the cooling and filtering of
automobile and light-duty truck paint bake oven exhaust streams, however,
has not been demonstrated.
     To summarize,use of water-based coatings and thermal or catalytic
incineration are two well demonstrated and feasible techniques for control-
ling emissions of VOC from automobile and light-duty truck coating opera-
tions.  Based upon the use of these two VOC emission control techniques,
two regulatory options can be identified as candidates for the "best tech-
nological system of continuous emission reduction."  Either one of these
could serve as the basis for standards.  These two regulatory options are
summarized in Table 9-1 and are compared against a base case consisting of
water-based prime coat (EDP) and solvent-based guide coat and topcoat.
This base case is representative of VOC emissions from new automobile and
light-duty truck surface coating operations capable of meeting existing
State Implementation Plan (SIP) emission limits.
9.3.3  IMPACTS
     Chapters 7 and 8 of the BID discuss in detail the impacts associated
with the proposed standards.  The economic, environmental, and energy
impacts of proposed standards are normally expressed as incremental dif-
ferences between a facility complying with a proposed new source performance
standard and one meeting a typical State Implementation Plan (SIP) emission
standard.  In the case of automobile and light-duty truck surface coating
operations, most of the existing facilities are located in areas which are
considered nonattainment areas for purposes of achieving the National
                                     9-10

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                                                     Table 9-1.   AUTOMOBILE  AND  LIGHT-DUTY  TRUCK COATING  LINES -
                                                                 EMISSION CONTROL OPTIONS EVALUATED

Emission Control System
Base Case
1. Primer - water-based coatings applied by EDP
2. Guide coat - solvent-based coatings applied by air spray
3. Topcoat - solvent-based coatings applied by air spray
Option I(A)
1. Primer - water-based coatings applied by EDP
2. Guide coat - water-based coatings applied by air spray
3. Topcoat - water-based coatings applied by air spray
Option I(B)
1. Primer - water-based coatings applied by EDP
2. Guide coat - solvent-based coatings applied by air spray
3. Topcoat - solvent-based coatings applied by air spray with incineration of spray booth and
oven exhaust1
Option II
1. Primer - water-based coating applied by EDP
2. Guide coat - solvent-based coatings applied by air spray with incineration of spray booth and
oven exhaust1
3. Topcoat - solvent-based coatings applied by air spray with incineration of spray booth and oven
exhaust1
Emissions from Model
Plant
(Metric Tons/Year)
Light-Duty
Automobile Truck

1775
373
435
212


1273
278
301
147

% Reduction
From Base Case
Light-Duty
Automobile Truck

—
79
76
88


~ •
78
76
88

ID
 I
     'Emissions based on incineration with 90% efficiency.

-------
Ambient Air Quality Standard (NAAQS) for ozone.  Most new facilities are
also expected to locate in similar areas.  The states are in the process of
revising their SIP's for these areas and are expected to include revisions
to their emission limitations applicable to automobile and light-duty truck
surface coating operations.  The actual incremental impacts of the proposed
standards will be determined by the final emission limitations adopted by
the States.  For the purposes of this comparison, however, the environmental,
energy, and economic impacts of the proposed standards are based on existing
SIP's which do not require VOC control for this source category.  As shown
in Table 9-1, standards based on Option I would lead to a reduction in VOC
emissions of about 80 percent, and standards based on Option II would lead
to a reduction in emissions of about 90 percent compared to VOC emissions
from an uncontrolled automobile or light-duty truck assembly plant.  In
1983 national emissions of VOC would be reduced by about 4,800 metric tons
with standards based on Option I, and about 5,400 metric tons with standards
based on Option II.   Thus, both regulatory options would result in a signifi-
cant reduction in VOC emissions from automobile and light-duty truck surface
coating operations.
     With regard to water pollution, standards based on Regulatory Option
II would have essentially no impact.  Similarly, standards based on Regu-
latory Option I(B) would have no water pollution impact.   Standards based
on Option I(A), however, would result in a slight increase in the chemical
oxygen demand (COD) of the wastewater discharged from automobile and light-
duty truck surface coating operations within assembly plants.  This increase
is due to water-miscible solvents in the water-based guide coats and topcoats
which become dissolved in the wastewater.  The increase in COD  of the
                                     9-12

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wastewater, however, would be small relative to current COD levels at
plants using solvent-based surface coatings and meeting existing SIP's.  In
addition, this increase would not require the installation of a larger
wastewater treatment facility than would be built for an assembly plant
which used solvent-based surface coatings.
     The solid waste impact of the proposed standards would be negligible.
The volume of sludge generated from water-based surface coating operations
is approximately the same as that generated from solvent-based surface
coating operations.  The solid waste generated by water-based coatings,
however, is very sticky, and equipment clean-up is more time consuming than
for solvent-based coatings.  Sludge from either type of system can be
disposed of by conventional landfill procedures without leachate problems.
     With regard to energy impact, standards based on Regulatory Option
I(A) would increase the energy consumption of surface coating operations at
a new automobile or light-duty truck assembly plant by about 25 percent.
Option I(B) would cause an increase of about 150 to 425 percent in energy
consumption.  Standards based on Regulatory Option II would result in an
increase of 300 to 700 percent in the energy consumption of surface coating
operations at a new automobile or light-duty truck assembly plant.  The
range in energy consumption for those options which are based on use of
incineration reflects the difference between catalytic and thermal incinera-
tion.
     The relatively high energy impact of standards based on Regulatory
Option I(B) and Regulatory Option II is due to the large amount of incinera-
tion fuel needed.  Standards based on Option II would increase energy
consumption at a new automobile and light-duty truck assembly plant by the
                                     9-13

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equivalent of about 200,000 to 500,000 barrels of fuel oil per year, depending
upon whether catalytic or thermal incineration was used.   Standards based
on Regulatory Option I(B) would increase energy consumption by the equivalent
of about 100,000 to 300,000 barrels of fuel oil per year.
     Standards based on Regulatory Option I(A) would increase the energy
consumption of a new automobile and light-duty truck assembly plant by the
equivalent of about 18,000 barrels of fuel oil per year.   This increase in
energy consumption is due to the use of air conditioning, which is necessary
with the use of water-based coatings, and the increased fuel required in
the bake ovens for curing water-based coatings.
     Growth projections indicate that four new automobile and light-duty
truck assembly lines (two automobile and two truck lines) will be built by
1983.  Based on these projections, standards based on Regulatory Option
I(A) would increase national energy consumption in 1983 by the equivalent
of about 72,000 barrels of fuel oil.  Standards based on Regulatory Option
I(B) would increase national energy consumption in 1983 by the equivalent
of 400,000 to 1,200,000 barrels of fuel oil, depending on whether catalytic
or thermal incineration were used.  Standards based on Regulatory Option II
would increase national energy consumption in 1983 by the equivalent of
800,000 to 2,000,000 barrels of fuel oil, again depending on whether cata-
lytic or thermal incineration were used.
     The economic impacts of standards based on each regulatory option were
estimated using the above mentioned growth projection of four new assembly
lines by 1983.  Incremental control costs were determined by calculating
the difference between the capital and annualized costs of new assembly
plants controlled to meet Regulatory Options I(A), I(B),  and II, respec-
                                     9-14

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tively, with the corresponding costs for new plants designed to comply with
existing SIP's.   Of the four assembly plants projected by 1983, two were
assumed to be General Motors lines, one a Ford line, and the other a Chrysler
line.  In the absence of standards of performance, it was assumed the
General Motors assembly plants would be designed to use solvent-based
lacquer surface coatings, and the Ford and Chrysler assembly plants would
be designed to use solvent-based enamel surface coatings.  There are basic
design differences between these two types of surface coatings which have a
substantial impact on the magnitude of the costs estimated to comply with
standards of performance.  Lacquer surface coating operations, for example,
require much larger spray booths and bake ovens than enamel surface coating
operations.  Water-based systems also require large spray booths and bake
ovens; thus, the incremental capital cost of installing a water-based
system in a plant which would otherwise have used a lacquer system, is
relatively low.   The incremental capital costs differential, however, would
be much larger if the plant would have been designed for an enamel system.
     Tables 9-2 and 9-3 summarize the economic impacts of the proposed
standards on typical size plants.  Table 9-2 presents the incremental costs
of the various control options for a plant which would have used solvent-
based lacquers.   Table 9-3 presents similar costs for plants which would
have been des.igned to use solvent-based enamels.  While these tables present
incremental costs for passenger car plants, light-duty truck plants would
have similar cost differentials.  In all cases, it is assumed the plants
would install a water-based EDP prime system in the absence of standards of
performance.  Therefore, no incremental costs associated with EDP prime
coat operations are included in the costs presented in Tables 9-2 and 9-3.
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                                           Table 9-2.   INCREMENTAL CONTROL COSTS1

                                        (Compared to the Costs of a Lacquer Plant)
UD
Capital Cost of Control
  Alternative

Annualized Cost of Control
  Alternative

Incremental Cost/Vehicle
  Produced at this Facility
                                            KA)
Regulatory Options

       KB)
                       II
Water-Based Coatings      Thermal
                                                                            Catalytic
             Thermal
$  720,000


$1,550,000



   $7.34
                                                               $68.66
$50.66
                             $73.39
                                          Catalytic
                                                            $11,800,000    $15,000,000    $12,800,000    $16,200,000
                                                            $14,500,000    $10,700,000    $15,500,000    $11,500,000
                                                                         $54.45
          Assumes a line speed of 55 vehicles per hour and an annual production of 211,200 vehicles.

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                                     Table 9-3.   INCREMENTAL CONTROL COSTS1

                                  (Compared to the Costs of an Enamel Plant)
Capital Cost of Control
  Alternative

Annualized Cost of Control
  Alternative

Incremental Cost/Vehicle
  Produced at this Facility
                                      KA)
                       Regulatory Options

                              KB)
                                          II
                              Water-Based Coatings      Thermal
                                   Catalytic
                                Thermal
                           Catalytic
$10,300,000
$ 3,640,000
   $17.23
$ 4,630,000    $ 5,850,000    $ 5,640,000    $ 7,000,000
$ 5,620,000    $ 4,150,000    $ 6,610,000    $ 4,890,000
   $26.61
$19.65
$31.30
$23.15
    Assumes a line speed of 55 vehicles per hour and an annual  production of 211,200 vehicles.

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A nominal production rate of 55 passenger cars per hour was assumed for
both plants.  Tables 9-2 and 9-3 show incremental costs per vehicle produced
at each new facility.  The manufacturers would probably distribute these
incremental costs over their entire annual production to arrive at purchase
prices for the automobiles and light-duty trucks.
     Incremental capital costs for using incineration to reduce VOC emissions
from solvent-based lacquer plants to levels comparable to water-based
plants are much larger than they are for using incineration on a solvent-
based enamel plant.   This large difference in costs occurs because lacquer
plants have larger spray booth and bake oven areas than enamel plants and,
therefore, a larger volume of exhaust gases.   Since larger incineration
units are required,  the incremental capital costs of using incineration to
control VOC emissions from a solvent-based lacquer plant are about 15 to 25
times greater than they are for using water-based coatings.  Similarly,
energy consumption is much greater; hence, the annualized costs of using
incineration are about ten times greater than they are for using water-based
coatings.
     On the other hand, the incremental capital costs of controlling VOC
emissions from new solvent-based enamel plants by the use of incineration
are only about one-half the incremental capital costs between a new solvent-
based enamel plant and a new water-based plant. Due to the energy consumption
associated with incinerators, however, the incremental annualized costs of
using incineration with solvent-based enamel  coatings could vary from as
little as 15 percent more to as much as 90 percent more than the annualized
costs of using water-based coatings.
                                     9-18

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     While the incremental capital costs of building a plant to use water-
based coatings can be larger or smaller than the costs of using incineration,
depending upon whether a solvent-based lacquer plant or a solvent-based
enamel plant is used as the starting point, the annualized costs of using
water-based coatings are always less than they are for using incineration.
This is due to the large energy consumption of incineration units compared
to the energy consumption of water-based coatings.
     Since the incremental annualized costs are less with Option I(A) than
with Option I(B), it is assumed in this analysis that Option I(A) would be
incorporated at any new, modified, or reconstructed facility to comply with
standards based on Regulatory Option I.  As noted, four new assembly plants
are expected to be built by 1983.  The incremental capital cost to the
industry for these plants to comply with standards based on Regulatory
Option I would be approximately $19 million.  The corresponding incremental
annualized costs would be about $9 million in 1983.  If standards are based
on Regulatory Option II, it is expected that industry would choose catalytic
incineration because its annualized costs are lower than thermal incineration.
Based on this assumption, the incremental capital costs for the industry
under Regulatory Option II would be approximately $42 million, and the
incremental annualized costs by 1983 would be about $30 million.  For
standards based on either Regulatory Option I or Regulatory Option II, the
increase in the price of an automobile or light-duty truck that is manu-
factured at one of the new plants would be less than one percent of the
base price of the vehicle.
9.3.4  BEST SYSTEM OF EMISSION REDUCTION
     Both Regulatory Options I and II achieve a significant reduction in
VOC emissions compared to automobile and light-duty truck assembly plants
                                     9-19

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controlled to comply with existing SIP's, and neither option creates a
significant adverse impact on other environmental media.   Standards based
on Regulatory Option II, however, would have as much as 10 to 25 times the
adverse impact on energy consumption as standards based on Regulatory
Option I, while only achieving 10 to 15 percent more reductions in VOC
emissions.  Thus, Regulatory Option I was selected as the best system of
continuous emission reduction, considering costs and nonair quality health,
environmental, and energy impacts.
9.4  SELECTION OF FORMAT FOR THE PROPOSED STANDARDS
     A number of different formats could be selected to limit VOC emissions
from automobile and light-duty truck surface coating operations.  The
format ultimately selected must be compatible with any of the three different
control systems that could be used to comply with the proposed standards.
One control system is the use of water-based coating materials in the prime
coat, guide coat, and topcoat operations.  Another control system is the
use of solvent-based coating materials and add-on VOC emission control
devices such as incineration.  The third control system consists of the use
of high solids coatings applied at high transfer efficiencies.   Although
these coatings are not demonstrated at this time, research is continuing
toward their development; hence, they may be used in the future.
     The formats considered were emission limits expressed in terms of:
(1) concentration of emissions in the exhaust gases discharged to the
atmosphere; (2) mass emissions per unit of production; or (3) mass emis-
sions per volume of coating solids applied.
     The major advantage of the concentration format is its simplicity of
enforcement.  Direct emission measurements could be made using Reference
                                     9-20

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Method 25.  There are, however, two significant drawbacks to the use of
this format.  Regardless of the control approach chosen, emission testing
would be required for each stack exhausting gases from the surface coating
operations (unless the owner or operator could demonstrate to the Admini-
strator's satisfaction that testing of representative stacks would give the
same results as testing all the stacks).   This testing would be time consuming
and costly because of the large number of stacks associated with automobile
and light-duty truck surface coating operations.  Another potential problem
with this format is the ease of circumventing the standards by the addition
of dilution air.  It would be extremely difficult to determine whether
dilution air were being added intentionally to reduce the concentration of
VOC emissions in the gases discharged to the atmosphere, or whether the air
was being added to the application or drying operation to optimize perfor-
mance and maintain a safe working space.
     A format of mass of VOC emissions per unit of production relates emis-
sions to individual plant production on a direct basis.  Where water-based
coatings are used, the average VOC content of the coating materials could
be determined by using Reference Method 24.  The volume of coating materials
used could be determined from purchase records.  VOC emissions could then
be calculated by multiplying the VOC content of the coating materials by
the volume of coating materials used in a given time period, and dividing
the result by the number of vehicles produced in that time period.  This
would provide a VOC emission rate per unit of production.  Consequently,
procedures to determine compliance would be straightforward, although very
time consuming.  This procedure would also require data collection over an
excessively long period of time.
                                     9-21

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     Where solvent-based coatings were used with add-on emission control
devices, stack emission tests could be performed to determine VOC emissions.
Dividing VOC emissions by the number of vehicles produced would again yield
VOC emissions per unit of production.   This format, however, would not
account for differences in surface coating requirements for different
vehicles due to size and configuration.  In addition, manufacturers of
larger vehicles would be required to reduce VOC emissions further than
manufacturers of smaller vehicles.
     A format of mass of VOC emissions per volume of coating solids applied
also has the advantage of not requiring stack emission testing unless
add-on emission control devices are used to comply with the standards
rather than water-based coatings.  The introduction of dilution air into
the exhaust stream would not present a problem with this format.   The
problem of varying vehicle sizes and configurations would be eliminated
since the format is in terms of volume of applied solids regardless of the
surface area or number of vehicles coated.   This format would also allow
flexibility in selection of control systems, for it is usable with any of
the control methods.  Since this format overcomes the varying dilution air
and vehicle size problems inherent with the other formats, it has been
selected as the format for the proposed standards.   Equations have been
developed to use this format with water-based coating materials as well as
with solvent-based coating materials in combination with high transfer
efficiencies and/or add-on emission controls devices.  These equations are
included in the proposed standards.
                                     9-22

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9.5  SELECTION OF NUMERICAL EMISSION LIMITS,
     The numerical emission limits selected for the proposed standard are
as follows:
     0    0.3 kilograms of volatile organic compounds per liter of applied
          coating solids from prime coat operations
     •    0.9 kilograms of volatile organic compounds per liter of applied
          coating solids from guide coat operations
     •    0.9 kilograms of volatile organic compounds per liter of applied
          coating solids from topcoat operations
In all three limits the mass of VOC is expressed as carbon equivalent in
accordance with Reference Methods 24 and 25.   These emission limits are
based on the use of water-based coating materials in the prime coat, guide
coat, and topcoat operations.  The Control Techniques Guideline (CTG)
document developed by EPA on automobile and light-duty truck surface coating
operations recommends the use of this same technology.  The limits in the
CTG are expressed in pounds of VOC per gallon of coating (minus water) used
in the EDP system or the spray device.  The limits in this proposed standard,
however, are referenced to the amount of coating solids which adhere to the
vehicle body.  Therefore to compare the limits in the CTG to those proposed
here, it is necessary to account for the efficiency of applying the guide
coat and t.opcoat to the vehicle body.  The emission limit for guide coat
operations is based on a transfer of technology from topcoat operations.
The guide coat is essentially a topcoat material, without pigmentation, and
water-based topcoats are available which can comply with the proposed
limits.   Hence, the same emission limit is proposed for the guide coat
operation as for the topcoat operation.
                                     9-23

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     Because of the elevated temperatures present in the prime, guide, and
topcoat bake ovens, there may be additional amounts of "cure volatile" VOC
emitted.  These "cure volatile" VOC emissions are present only at high
temperatures and are not measured in the analysis which is used to deter-
mine the VOC content of coating materials.  Cure volatile VOC, however, are
believed to constitute only a small percentage of total VOC emissions.
Consequently, due to the complexity of measuring and controlling cure
volatile VOC emissions, they would not be considered in determining com-
pliance with the proposed standards.
     A large number of coating materials are used in topcoat operations,
and each may have a different VOC content.  Hence, an average VOC content
of all the coatings used in this operation would be computed to determine
compliance with the proposed standards.  Either of two averaging techniques
could be used for computing this average.  Weighted averages provide very
accurate results but would require keeping records of the total volume of
each different coating used.   Arithmetic averages are not always as accurate;
however, they are much simpler to calculate.  In the case of topcoat opera-
tions, normally 16 to 18 different coatings are used, and the VOC content
for most of these coatings is in the same general range.   Therefore, an
arithmetic average would closely approximate the values obtained from a
weighted average.   An arithmetic average would be calculated by summing the
VOC content of each surface coating material used in a surface coating
operation (i.e., guide coat or topcoat), and dividing the sum by the number
of different coating materials used.  Arithmetic averages are also consistent
with the approach being incorporated into most revised State Implementation
Plans.
                                     9-24

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     For the EDP process, however, an arithmetic average VOC content is not
appropriate to determine compliance with the proposed standards.   In an EDP
system, the coating material applied to an automobile or light-duty truck
body is replaced by adding fresh coating materials to maintain a constant
fluid level in the EDP coating tank.  Three different types of materials
are usually added in separate streams—clear resin, pigment paste,  and
solvent.
     The clear resin and pigment paste are very low in VOC content (i.e.,
10 percent or less), while the solvent is very high in VOC content (i.e.,
90 percent or more).  The solvent additive stream is only about 2 percent
of the total volume added.  Consequently, an arithmetic average of the
three streams seriously misrepresents the actual amount of VOC added to the
EDP coating tank.  Weighted averages, therefore, were selected for deter-
mining the average VOC content of coating materials applied by EDP.
     If an automobile or light-duty truck manufacturer chooses to use a
control technique other than water-based coatings, the transfer efficiency
of the application devices used becomes very important.  As transfer effi-
ciency decreases, more coating material is used, and VOC emissions increase.
Therefore, when add-on controls or high solids coatings are used to comply,
tranfer efficiency must be taken into account to determine equivalency to
water-based coatings.
     Electrostatic spraying, which applies surface coatings at high transfer
efficiencies, is not considered safe for use with water-based surface
coatings in large operations because of the potential employee shock hazard.
Consequently, water-based surface coatings are applied by air-atomized
spray systems at a transfer efficiency of about 40 percent.  The numerical
                                     9-25

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emission limits included in the proposed standards were developed based on
the use of water-based surface coatings applied at a 40 percent transfer
efficiency.  Therefore, if surface coatings are applied at greater than 40
percent transfer efficiency, surface coatings with higher VOC contents may
be used with no increase in VOC emissions to the atmosphere.  Transfer
efficiencies for various means of applying surface coatings have been
estimated, based on information obtained from industries and vendors, as
follows:
          Application Method            .     Transfer Efficiency
          Air Atomized Spray                      40 percent
          Manual Electrostatic Spray              75 percent
          Automatic Electrostatic Spray           95 percent
          Electrodeposition (EDP)                100 percent

     Frequently, more than one application method is used within a single
surface coating operation.   In these cases a weighted average transfer
efficiency, based on the relative volume of coating sprayed by each method,
will be estimated.  These situations are likely to vary among the different
manufacturers and the estimates, therefore, will be subject to approval by
the Administrator on a case-by-case basis.
9.6  SELECTION OF MONITORING REQUIREMENTS
     To provide a means for enforcement personnel to ensure that emission
control measures adopted by a facility to comply with standards of perfor-
mance are properly operated and maintained, monitoring requirements are
generally included in standards of performance.   Surface coating operations
which have achieved compliance with the proposed standards without the use
                                     9-26

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of add-on VOC emission control devices would be required to monitor the
average VOC content (weighted averages for EDP and arithmetic averages for
guide coat and topcoat) of the coating materials used in each surface
coating operation.  Generally, increases in the VOC content of the coating
materials would cause VOC emissions to increase.  These increases could be
caused by the use of new coatings or by changes in the composition of
existing coatings.  Therefore, following the initial performance test,
increases in the average VOC content of the coating materials used in each
surface coating operation would have to be reported as excess emissions on
a quarterly basis.
     Where add-on control devices, such as incinerators, were used to
comply with the proposed standards, combustion temperatures would be monitored.
Following the initial performance test, decreases in the incinerator combus-
tion temperature would be reported as excess emissions on a quarterly
basis.
9.7  PERFORMANCE TEST METHODS
     Reference Method 24, "Determination of Volatile Organic Compound
Content of Paint, Varnish, Lacquer, or Related Products," is proposed as
the test method to determine VOC emissions from the coating materials used
in each surface coating operation.  Reference Method 25, "Determination of
Total Gaseous Nonmethane Volatile Organic Compound Emissions," is proposed
as the test method to determine the percentage reduction of VOC emissions
in add-on emission control devices.
9.8  MODIFICATIONS AND RECONSTRUCTIONS
     During the development of the standards, the automobile industry
expressed concern that changes to assembly plants made only for the purpose
                                     9-27

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of annual model changeovers would be considered a modification or reconstruc-
tion as defined in 40 CFR 60.14 and 60.15.  A modification is any physical
or operational change in an existing facility which increases air pollution
from that facility.  A reconstruction is any replacement of components of
an existing facility which is so extensive that the capital cost of the new
components exceeds 50 percent of the capital cost of a new facility.  In
general, modified and reconstructed facilities must comply with standards
of performance.  According the available information, changes to coating
lines for annual model changeovers do not cause emissions to increase
                                                               ?
significantly.  Further, these changes would normally not require a capital
expenditure that exceeds the 50 percent criterion for reconstruction.
Hence, it is very unlikely that these annual facility changes would be
considered either a modification or a reconstruction.  Industry, however,
continued to express concern, stating that the intent of this standard
could be misinterpreted unless an exemption for annual model changeovers
was explicitly included in the standard.  To avoid any possibility for such
a misinterpretation, the proposed standard states that changes to surface
coating operations made only to accomodate annual model changeovers are not
a modification or reconstruction.
                                     9-28

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                                APPENDIX A
                      EVOLUTION OF PROPOSED STANDARDS
     This study to develop proposed standards of performance for new surface
coating operations within the automotive industry began in 1973 under the
direction of Richard B.  Atherton (OAQPS/ESED/ISB), Lead Engineer.  In June
1975, EPA authorized DeBell and Richardson to continue the study, contract
number 68-02-2062, under the direction of Dave Patrick (OAQPS/ESED/CPB).
On March 30, 1976, James Berry (OAQPS/ESED/CPB) replaced Dave Patrick as
lead engineer.  Table A-l lists the major events that occurred between
project initiation and October 1978 when Acurex Corporation was retained by
EPA to complete the study under contract number 68-02-3064 with Sims L. Roy
(OAQPS/ESED/SDB), as the lead engineer.
     The overall objective of this study was to compile and analyze data in
sufficient detail to substantiate standards of performance.  To accomplish
this objective, the investigators first acquired the necessary technical
information on: (1) coating operations and processes; (2) the release of
organic emissions into the atmosphere by this source and their controlla-
bility; and (3) the costs of demonstrated control techniques.  A literature
search was conducted and data obtained from the following:
          •    U.S. Department of Commerce
          t    Federal Trade Commission Quarterly Reports
          •    Society of Manufacturing Engineers
          •    U.S. Government Printing Office
          •    National  Technical Information Service
          •    Various Trade Journals
                                  A-l

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              Table A-l.   MAJOR EVENTS, YEAR 1974 - MID 1978
Equipment Manufacturers Telephone Survey
Equipment Suppliers Telephone Survey
Surface Coating Equipment Manufacturers
OMB Approval of Questionnaire
Industry Completion of Questionnaires
Meeting to Discuss Economic Impacts
Draft Document, "Study to Support NSPS
  for Automobile and Light-Duty Trucks," Published by EPA
EPA Memo Suggesting Standards of Performance Sent to Industry
NAPCTAC Meeting
Working Group Meeting
JACA Corporation Retained by EPA to Study Economic Impacts
PEDCo Retained by EPA to Prepare an Economic Impact Analysis
Centec Consultants, Inc. Retained by EPA to Revise Draft
  Document
Meetings with Various Equipment Manufacturers, Suppliers
  and Auto Makers and State Agencies (See Tables A-2, A-3, A-4,
  8/11/75
  8/15/75
  8/20/75
  9/26/75
12/75 - 5/76
   2/1/76

   6/1/77
     8/77
  9/27/77
  10/6/77
    11/77
  4/26/78
   7/1/78
A-5)
                                  A-2

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Through an extensive telephone survey, data were obtained from the suppliers
and manufacturers listed in Table A-2 on control equipment and coating
materials used within the surface coating industry.   Contacts with trade
associations, regional EPA offices, and state air pollution authorities
(Table A-3) provided additional technical information.   An EPA question-
naire (industry survey) was approved by OMB and distributed throughout the
automotive industry to obtain information on plant size, control techniques,
production capacities and emissions data.  Direct contacts were supplemented
by plant tours (Table A-4) of various surface coating operations to gain
first-hand information on control techniques and emissions data.
     The second major step in this study was to determine the environmental
and economic impacts of various alternative regulatory options.   The
environmental impacts of the various alternative regulatory options were
determined by comparing the projected emissions under each option with
those for the base case.  The economic analysis was  supported by examining
various automotive plants, contacting the Department of Commerce, and
reviewing Wards Automotive yearbooks and various trade journals.
     On June 1, 1977, EPA published a draft document, "Study to Support an
NSPS for Automobile and Light-Duty Trucks."  A memo  suggesting standards of
performance was distributed throughout the automotive industry in August
1977.  DeBell and Richardson presented the draft study to the NAPCTAC
meeting held in Alexandria, Virginia, on September 27 and 28, 1977.  On
October 6, 1977, a working group meeting was held to discuss industry
comments raised at the NAPCTAC meeting.
     Upon receipt of this project in October 1978, Acurex began to review
and revise the previous documents in light of the comments made by the
                                  A-3

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             Table A-2.  SUPPLIERS AND MANUFACTURERS CONTACTED
ADSOX
AER Corporation
Binks
Calgon Activated Carbon Division
Combustion Equipment Associates
DeVilbiss Company
Dow Corning Corporation
DuPont
George Koch & Sons, Inc.
High Voltage Engineering Corporation
Hoyt Solvent Recovery Systems
Interrad
Jensen, Inc.
Lilly Industrial Coatings, Inc.
Matthey Bishop, Inc.
Moller Engineering
Polychrome
PPG Industries
Programmed Coating
Ransburg Corporation
RaySolv Incorporated
Reeco Regenerative Environmental Equipment Co., Inc.
Sealectro Corporation
Sherwin Williams
Troy Chemical Corporation
Vulcan
W. R. Grace and Company
W.S. Rockwell
                                  A-4

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                    Table A-3.  STATE AGENCIES CONTACTED
Southern California Air Resources Board
Sacramento, CA

Bay Area Air Pollution Control District
San Francisco, CA

Air Pollution Control District
Louisville, KY

State of Maryland
Department of Health and Mental Hygiene
Baltimore, MD

Department of Environmental Protection
Hartford, CT

Massachusetts Division of Environmental
  Quality Enginnering
Boston, MA

State of New Jersey
Department of Environmental Protection
Trenton, NJ

Commonwealth of Virginia
State Air Pollution Control Board
Virginia Beach, VA
                                  A-5

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                 Table A-4.   SURFACE COATING OPERATIONS VISITED DURING
                          PREPARATION OF THE SUPPORT DOCUMENT

COMPANY/LOCATION
Ford Motor
Wayne, MI
General Motors
Detroit, MI
Chrysler Corp.
Detroit, MI
Ford Motor
Pico Rivera, CA
General Motors
Southgate/Van Nuys, CA
General Motors
DATE(S)
3/27/73
3/28/73
3/29/73
7/11/73
7/12/73
9/29/74
TECHNOLOGY OBSERVED AND/OR
PURPOSE OF TRIP
Gather general information on
Ford's truck plant and the Wayne
auto assembly plant.
Fleetwood plant; gather general
information.
Observe the sources of emissions
and gather general information.
Observe bake ovens.
Observe bake ovens.
Familiarize EPA personnel with
Norwood, OH
Ford Motor
Atlanta, GA
Ford Motor
Metuchen, NJ

General Motors
Framingham, MA

Ford Motor
Norfolk, VA
General Motors
Southgate/Van Nuys, CA
Mack Trucks
Allentown/Macunigie, PA
            the surface coating operations
            within the automotive industry.

  2/18/75   Familiarize EPA personnel with the
            surface coating operations within
            automotive industry.

  5/14/75   Powder and conventional coating
            operations.

  9/9/75    Observe water-based primer process
            (EDP) and to discuss powder coatings.

  9/12/75   Pick-up trucks are assembled at
            this location.  Gather general
            information.

10/7-8/75   Southgate and Van Nuys plants are
            the only full scale automotive
            assembly plants in the U.S.
            employing water-based paints.

 10/10/75   Gather general information.
                                  A-6

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                              Table A-4 (continued)
   COMPANY/LOCATION
 DATE(S)
TECHNOLOGY OBSERVED AND/OR
      PURPOSE OF TRIP
Chrysler Corp.
Newark, DE

White Motor Corp.
Exton, PA

General Motors
Baltimore, MD

General Motors
Wilmington, DE
Checker Motors Corp.
Kalamazoo, MI
Ford Motor
Wayne, MI

American Can Co.
Hillside, NJ

American Can Co.
Edison, NJ
General Dynamics Co.
Corvair Division
San Diego, CA

Chrysler Co.
Detroit, MI
Chrysler Co.
Detroit, MI

General Motors
Detroit, MI
10/14/75   Epoxy prime coat and acrylic enamel
           topcoat operations.

10/15/75   Gather general information.
10/16/75   Enamel is used for prime coat and
           lacquer for topcoat.

10/17/75   Chevettes are assembled at this
           location.  The Chevette requires
           considerable inside painting.

11/11/75   Checker Motors manufactures taxi-
           cabs.   Checker Motors has had con-
           tracts with one or more of the
           other auto makers to paint cars
           and produce body parts.

11/13/75   Observe conventional  coating
           operations.

12/2/75    Gather general information.
12/2/75    This location produces two piece
           cans which are coated with solvent-
           based materials.   The plant is
           equipped with incinerators.

12/7/75    One of three U.S. aircraft indus-
           tries employing new technology,
           water-based technology.

12/8/75    Longest automobile assembly line in
           the world.  Considered a good can-
           didate for general information pur-
           poses.

12/8/75    Autophoretic coating is employed at
           this plant.

12/9/75    Fleetwood plant;  this coating
           operation produces GM's highest
           quality paint job.
                                  A-7

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                                Table A-4 (continued)
    COMPANY/LOCATION
 DATE(S)
TECHNOLOGY OBSERVED AND/OR
      PURPOSE OF TRIP
General Motors                    12/10/75
Pontiac, MI
Douglas Aircraft Co.              12/10/75
Long Beach, CA

Virco Manufacturing
Gardena, CA

Rockwell International            12/11/75
Saberline Division
El Segundo, CA

General Motors                    12/12/75
Pontiac, MI

California Finished Metals, Inc.   12/12/75
Cucamonga, CA

Supracote Inc.                    12/12/75
Cucamonga, CA

International Harvester Co.       12/15/75
Rock Island, IL

International Harvester Co.       12/15/75
East Moline, IL
Deere Co.                         12/17/75
Waterloo, IA
Republic Steel Co.                12/17/75
Youngstown, OH
           Two identical  production lines are
           housed at this location.  LDL
           (solvent-based low dispersion lac-
           quer) was employed at this site
           with the 1976  models.

           To view application of conventional
           solvent solution coatings.

           Observe Virco's powder coating line
           which is fitted with an incinerator.

           Conventional  coating of aircrafts
           with solvent-based materials.
           Modern truck assembly plant, to
           gather general information.

           Obtain data on afterburners.
           Obtain data on afterburners.
           Observation of the manual
           electrostatic spray operations.

           Application of one coat modified
           AKYD sol vent-based paints with
           electrostatic spray was observed.

           Undercoating of all tractor parts,
           except chasis, is applied with
           water-based paint by using the
           EDP process.

           Observe conventional coil coating
           operations.
Armco Steel Corp.
Middletown, Ohio
12/18/75   Observe conventional coil coating
           operations.
                                  A-8

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                            Table A-4  (continued)
    COMPANY/LOCATION
 DATE(S)
TECHNOLOGY OBSERVED AND/OR
       PURPOSE OF TRIP
Winnebago Industries
Forest City, IA
All is Chalmers Corp.
La Porte, IN

The Boeing Co.
Everett, WA

Hackney & Sons (East
Washington, NC
Modern Materials Corp.
Detroit, MI

Litho-Strip Co.
Glenview, IL
Signode Corp.
Bridgeview, IL
Chrysler Corp.
Detroit, MI

Ford Motor
Wayne, MI
Simmons Co.
Munster, IN

Food Machinery Co.
Tupello, MS

Ford Motor
Metuchen, NJ

Lau Industries
Dayton, OH
12/18/75   Molding and trim on all Winnebago
           mobile homes are electrostatically
           sprayed with powder.   Cabs are
           electrostatically coated with
           liquid paints.

12/19/75   Farm machinery is coated with
           water-based paints.

12/21/75   Observe application of water-based
           coatings.

12/22/75   Beverage trucks are topcoated with
           acrylic enamels which are metallic
           and nonmetallic.

 1/7/76    Coil coating using water-based
           materials.

 1/8/76    Solvent-based coating materials
           are employed on their coil coating
           lines.

 1/8/76    Company manufactures steel strap-
           pings which are coated with epoxy-
           based materials.

 1/9/76    Trucks are topcoated with solvent-
           based coatings at this site.

 1/9/76    Truck plant, solvent-based primer
           coating operation.  Small parts
           are powder coated with an acrylic.

 1/14/76   Metal drawers are coated with
           high solids.

 1/14/76   Conveyor parts are powder coated.
 1/15/76   Observe powder coating operations.
 1/15/76   Blower and fan components are
           coated with water reducible
           alkyd paint.
                                  A-9

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                            Table A-4  (continued)
    COMPANY/LOCATION
DATE(S)
TECHNOLOGY OBSERVED AND/OR
       PURPOSE OF TRIP
American Can Co.                   1/16/76
Baltimore, MD
          Solvent-based inner lacquer is
          employed.   The base coat is a
          high solids solvent-base material
Continental Can Co.
Sparrows Point, MD
1/16/76   Obtain information in UV curing.
H.K. Porter Co., Inc.              1/16/76
Lynchburg, VA

Teledyne Rodney Metals             1/23/76
New Bedford, MA
Bilco, Inc.                        1/28/76
West Haven, CT

Levolor Lorenthen, Inc.            1/29/76
Hoboken, NJ

Sun Shipbuilding & Dry Dock        1/30/76
Chester, PA

Lyon Metal Products, Inc.          2/3/76
Aurora, IL

Steel case Co.                       2/4/76
Grand Rapids,  MI

Ford Motor                         2/5/76
Oakville
Ontario, Canada

Roll Coater, Inc.   -               2/9/76
Kingsbury, IN

International  Harvester            2/10/76
Fort Wayne, IN
Norfolk Shipbuilding & Dry Dock    2/11/76
Norfolk, VA

Newport News Shipbuilding          2/12/76
Newport News, VA
          Observe coating operations of
          transformer parts.

          Observe and discuss the coil coating
          operation of the company.   No primer
          is applied, only a single solvent-
          based topcoat.

          Observe the coating operation of
          metal doors.

          Observation of the coil coating
          operation.

          Coating materials are solvent-based.
          Metal furniture is coated with
          solvent-based materials.

          Metal furniture is powder coated
          at this plant.

          Plant has two assembly lines, one
          truck and one automobile line.
          Water-based coatings are employed.

          Gather information on incinerators
          and observe coil coating operations.

          Truck plant, observe surface
          coating operations of Scouts
          (light-duty trucks).

          The most commonly used coating
          materials are solvent-based.

          Practically all coating materials
          are solvent-based.
                                  A-10

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                             Table A-4 (continued)
     COMPANY/LOCATION
DATE(S)
TECHNOLOGY OBSERVED AND/OR
      PURPOSE OF TRIP
General Products
Mayfield, VA
Keller Industries
Mil ford, VA
General Products
Fredericksburg, VA

Keller Industries
Mil ford, VA
Crown Cork and Seal Co., Inc.
Philadelphia, PA
Central Chevrolet Co.
West Springfield, MA
Endure a Lifetime
Miami, FL
Connecticut Auto Body
Bloomfield, CT

Houser Auto Body
Springfield, MA

Raybestos Manhattan, Inc.
Mayheim, PA
Viking Wire
Danbury, CT

Steiber Cycle Corp.
Medford, NY
2/12/76   Steel exterior entrance doors are
          topcoated with acrylic which is
          electrostatically sprayed.

2/12/76   Aluminum patio doors and windows
          are coated with a modified polyes-
          ter water-based material.

2/12/76   Observe electrostatic spray and
          miscellaneous spray booths.

2/12/76   Aluminum patio doors and windows
          are coated with a modified polyes-
          ter water-based material.

2/13/76   Steel sheets for cans, the bulk
          of the coating and decorating
          materials are solvent-based.
          Water-based inner coating materials
          are also used.

2/16/76   Auto body repair ship which uses
          solvent-based materials.  Lacquer
          is employed for touch-ups and
          enamel for whole paint jobs.

2/16/76   Laminated doors are touched up with
          an air dry enamel which is applied
          with a manual spray.

2/17/76   Acrylic lacquer is used for re-
          finishing doors and fenders.

2/17/76   Observe a typical plant spraying
          operation.

2/17/76   To view add-on equipment which is
          used to reduce hydrocarbon emis-
          sions.

2/19/76   Plant uses a catalytic adsorber
          and incineration.

2/24/76   Observe powder coating of bicycle
          frames.
                                  A-11

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                             Table A-4 (continued)
    COMPANY/LOCATION
DATE(S)
TECHNOLOGY OBSERVED AND/OR
      PURPOSE OF TRIP
Continental Can Co.
Portage, IN

Continental Can Co.
Weirton, WV

Earl Scheib Auto Body Shops
Providence, RI

Goodman Bros.  Mfg. Co.
Philadelphia,  PA

Burting Co.
Philadelphia,  PA

Joy Manufacturing Co.
Michigan City, IN

Earl Scheib Auto Body Shops
West Haven, CT

Nordson Corp.
Amherst, OH

American Can Co.
Lemoyne, PA
Essex International
Fort Wayne, IN

H.D. Hudson Co.
Hastings, MN

Peachtree Door
St. Joseph, MO

REA Magnet Wire
Fort Wayne, IN

General Motors
Southgate, CA

General Motors
Van Nuys, CA
2/24/76   Discuss and observe the use of
          incinerators.

2/25/76   UV curing technology employed at
          this plant.

2/25/76   Observe a typical auto refinishing
          operation.

2/25/76   Metal hospital beds are powder
          coating at this plant.

2/25/76   Observation of powder coating
          outdoor metal  furniture.

2/25/76   Observe spray painting of
          compressor parts.

2/26/76   Observation of an auto refinishing
          operation.

2/26/76   Pump components for spray equipment
          is powder coated at this plant.

2/27/76   Observe and discuss the use of a
          carbon adsorber for solvent
          recovery.

3/4/76    Observe wire coating operations.
3/3/76    Insecticide spray equipment is
          powder coated at this plant.

3/3/76  .  Observation of two finishing lines,
          EDP and electrostatic spray

 3/4/76   Magnet wire coating operation was
          observed.

3/10/76   Water-based coating operations are
          employed at GM plant.

3/11/76   Water-based topcoating operations
          are employed at this site.
                                  A-12

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                             Table A-4 (concluded)
    COMPANY/LOCATION
 DATE(S)
TECHNOLOGY OBSERVED AND/OR
      PURPOSE OF TRIP
Ford Motor
Milpitas, CA
American Motors Corp.
Mishawaka, IN
General Electrical Corp.
Louisville, KY
Hazen Paper Co.
Hoiyoke, MA

Brown-Bridge Mills
Troy, Ohio

Scott Graphics
South Hadley, MA
Fasson Co.
Painesville, OH

Chrysler Corp.
Belvidere, IL

General Motors
Ypsilanti, MI
Ford Motor
Dearborn, MI
Sebring-Vanguard Corp.
Sebring, FL
 3/12/76   Observation of typical coating
           operations, incinerators are
           housed at this site,   (auto
           and truck plant).

 3/15/76   Bus manufacturing, observe coating
           operations and gather general
           information.

 5/4/76    Large appliances are powder coated
           at this site.   Observe EDP coating
           facilities.

 5/19/76   Sol vent-based coating line equipped
           with an incinerator.

           To view the paper coating operation
           and carbon adsorption system.

 7/1/76    Discuss solvent recovery process
           and observe the carbon adsorption
           system and paper coating operation.

 7/14/76   To view the paper coating operation
           and carbon adsorption system.

10/12/76   Plant represents the typical adhe-
           sives (solvent-based) operation.

10/10/76   Compact sized cars manufactured
           at this site.   Plant employs the
           operation of typical  adhesives.

11/11/76   Sporty compact cars manufactured
           at this site.   Typical adhesives
           are used at this location.

 3/1/77    Largest producer of electric cars
           in the world.   Determine the
           ability of small automobile or
           light-duty truck producers to
           meet an NSPS that might be promul-
           gated for the auto industry.
                                  A-13

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Working Group and NAPCTAC, and the information received from industry since
the preparation and public presentation of the first draft.
     Additional data were obtained from Ransburg Corporation on transfer
efficiencies and from General Motors on paint content.  The existing document
was extensively revised from December 1978 to March 1979.   The complete
Background Information Document (BID) and the Federal Register notice of
the proposed regulation were prepared and submitted to the EPA Steering
Committee on May 18, 1979.  Table A-5 lists the major reviews and decision-
related communications which occurred from October 1978 to the date of
proposal.
                                  A-14

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                              Table A-5.  MAJOR REVIEWS AND DECISION-RELATED COMMUNICATIONS
      DATE
COMMUNICATION
PURPOSE
CONCLUSIONS/REDIRECTIONS
    12/7/78    EPA,  Acurex, Ransburg Corp.
              Meeting; report prepared by
              Acurex  (   ).
                     To discuss whether regulation
                     should be set in terms of mass
                     VOC, and whether to measure
                     transfer efficiency (TE) or
                     develop a list of TE for dif-
                     ferent types of coating sys-
                     tems.
                   The Emission Measurement Branch was to
                   develop a reference method for determining
                   TC, Reference Method 24.  TE  list would be
                   developed.
en
       Draft  Example   of   Format
         (to   be   completed   later)

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                                                     APPENDIX B
      Agency Guideline for Preparing Regulatory Action
       Environmental Impact Statements (39 FR 37419)
Location Within the Background
 Information Document
03
I
      1.  Background and Description of the Proposed
          Action.

          - Describe the recommended or proposed
            action and its purpose.
      2.  Alternatives to the Proposed Action.

          - Describe and objectively weigh reasonable
            alternatives to the proposed action, to
            the extent such alternatives are permitted
            by the law .  .  .   For use as a reference
            point to which other actions can be com-
            pared, the analysis of alternatives should
            include the alternative of taking no action,
            or of postponing action.  In addition, the
            analysis should include alternatives having
            different environmental impacts, including
            proposing standards, criteria, procedures,
            or actions of varying degrees of stringency.
            When appropriate, actions with similar envi-
            ronmental impacts but based on different
            technical approaches should be discussed.
            This analysis shall evaluate alternatives in
            such a manner that reviewers can judge their
            relative desirability.
The proposed regulations are summarized in
Chapter 1 and Chapter 9.  The statutory ba-
sis for the proposed regulatons (Section 111
of the Clean Air Act, as amended) is dis-
cussed in Chapter 9.
The Clean Air Act amendments of 1977 require
EPA to revise existing regulations under
Section 111 of the Act.   Alternative control
systems are discussed in Chapter 4.   The
environmental impact of different levels of
control are discussed in Chapter 7.   The
economic impact of alternative control levels
and systems are discussed in Chapter 8.
Alternative formats for the proposed regula-
tions are discussed in Chapter 9.

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                                                   APPENDIX  B  (CONTINUED)
          Agency  Guideline  for Preparing Regulatory  Action
           Environmental  Impact Statements  (39 FR 37419)
Location Within the Background
 Information Document
CD
I
INS
                -  The  analysis  should be sufficiently de-
                  tailed  to  reveal  the Agency's  comparative
                  evaluation of the beneficial and adverse
                  environmental,  health, social,  and eco-
                  nomic effects of  the proposed  action and
                  and  each reasonable alternative.
                  Where  the  authorizing legislation  limits
                  the  Agency from taking certain factors
                  into account in its  decision making,  the
                  comparative evaluation should discuss all
                  relevant factors,  but clearly identify
                  those  factors which  the authorizing
                  legislation requires to be  the basis  of
                  the  decision making.

                  In addition,  the reasons why the proposed
                  action is  believed by the Agency to be the
                  best course of action shall  be explained.
The environmental and energy impacts of the
proposed regulations are discussed in Chapter 1,
Chapter 7, Chapter 8, and Chapter 9.  Eco-
nomic impacts are discussed in Chapter 1 and
Chapter 8.  The inflationary impact is dis-
cussed in Chapter 1 and Chapter 8.  The socio-
economic impact is discussed in Chapter 8.

Section 111 of the Clean Air Act does not re-
quire EPA to directly consider health effects
in establishing the level of new source per-
formance standards.

The legislative history of new source per-
formance standards is presented in Chapter 2.
The proposed regulations are required by the
Clean Air Act amendments of 1977, as discussed
in Chapter 9.
The rationale for the proposed regulations is
presented in Chapter 9.

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                                                 APPENDIX B (CONTINUED)
        Agency Guideline for Preparing Regulatory Action
         Environmental  Impact Statements (39 FR 37419)
                                                     Location Within the Background
                                                      Information Document
00
I
oo
    Describe the extent to which the proposed
    action curtails the diversity and range of
    beneficial uses of the environment.   For
    example, irreversible damage can result if
    a standard is not sufficiently stringent.

D.   A discussion of problems and objections
    raised by other Federal, State, and local
    agencies and by other persons in this re-
    view process.  Final statements (and
    draft statements if appropriate) shall
    summarize the significant comments and
    suggestions made by reviewig organi-
    zations and individuals and shall describe
    the disposition of issues surfaced (i.e.,
    revisions to the proposed action to mitigate
    anticipated impacts of objections).   In
    particular, they shall address in detail the
    major issues raised when the Agency position
    is a variance with recommendations and objec-
    tions (e.g., reasons why specific comments and
    suggestions could not be adopted, and factors
    of overriding importance prohibiting the in-
    corporation of suggestions).  Reviewer's state-
    ments should be set forth in a "comment" and
    discussed in a "response."
All comments received during the public
comment period which follows proposal of
the regulations will be responded to in
a separate document.

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                                               APPENDIX B (CONTINUED)
      Agency Guideline for Preparing Regulatory Action
       Environmental Impact Statements (39 FR 37419)
                                                         Location Within the Background
                                                          Information Document
00
I
3.  Environmental Impact of the Proposed Action.

    A.   Primary impact

    - Primary impacts are those that can be
      attributed directly to the action,
      such as reduced levels of specific pol-
      lutants brought about by a new standard
      and the physical changes that occur in
      the various media with this reduction.

    B.  Secondary impact

    - Secondary impacts are indirect or induced
      impacts.   For example, mandatory reduction
      of specific pollutants brought about by a
      new standard could result in the adoption
      of control technology that exacerbates
      another pollution problem and would be a
      secondary impact.

4.   Other Considerations.

    A.   Adverse impacts which cannot be avoided
        should the proposal be implemented.
        Describe the kinds and magnitudes of
        adverse impacts which cannot be reduced
                                                               The primary environmental impacts on mass
                                                               emissions and ambient air quality are dis-
                                                               cussed in Chapter 7, and Chapter 9.
                                                               Secondary impacts on air and water quality,
                                                               solid waste disposal, noise, and energy con-
                                                               servation are discussed in Chapter 1, Chapter 7
                                                               and Chapter 8.
                                                               No potential adverse side effects are expected.
                                                               A more detailed discussion is presented in
                                                               Chapter 9.  Potential adverse economic impacts
                                                               are discussed in Chapter 8.

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                                                 APPENDIX B (CONTINUED)
        Agency Guideline for Preparing Regulatory Action
         Environmental Impact Statements (39 FR 37419)
                                                 Location Within the Background
                                                  Information Document
co
i
en
in severity to an acceptable level or
which can be reduced to an acceptable
level but not eliminated.  These may in-
clude air or water pollution, damage to
ecological systems, reduction in economic
activities, threats to health, or undesir-
able land use patterns.  Remedial, pro-
tective, and mitigative measures which will
be taken as part of the proposed action
shall be identified.

Relationship between local short-term uses
of man's environment and the maintenance
and enhancement of long-term productivity.
Describe the extent to which the proposed
action involves trade-offs between short-
term environmental gains at the expense of
long-term losses or vice versa and the ex-
tent to which the proposed action forecloses
future options.  Special attention shall be
given to effects which pose long-term risks
to health or safety.  In addition, the tim-
ing of the proposed action shall be ex-
plained and justified.

Irreversible and irretrievable commitments
of resources which would be involved in the
proposed action should it be implemented.
                                                                 No trade-offs are expected.  This subject is
                                                                 discussed in more detail in Chapter 9.
                                                                 There would be no irreversible and irretrievable
                                                                 commitments of resources as a result of the pro-
                                                                 proposed regulations.  See Chapter 7.

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                                APPENDIX E
                           ENFORCEMENT ASPECTS
E.1  ENFORCEMENT
     The rules and regulations for determining if a source will be subject
to new source performance standards by reason that the source is new,
modified, or reconstructed, are given in Subpart A, Part 60, Subchapter C,
Chapter 1, Title 40, Code of Federal Regulations.  It is suggested that
interpretation of the foregoing rules and regulations be reviewed through
the U.S. Environmental Protection Agency Regional Office Enforcement Divi-
sion for the region where a source will be located.
     The locations and addresses of these regional offices are as follows:
     Region I - Connecticut, Maine, Massachusetts, New Hampshire
                Rhode Island, Vermont
     John F. Kennedy Federal Building
     Boston, MA  02203
     Telephone:  617-223-7210
     Region II - New Jersey, New York, Puerto Rico, Virgin Islands
     26 Federal Plaza
     New York, NY  10007
     Telephone:  212-264-2525
     Region III - Delaware, District of Columbia, Maryland,
                  Pennsylvania, Virginia, West Virginia
     Curtis Building
     6th and Walnut Streets
     Philadelphia, PA  19106
     Telephone:  215-597-9814
     Region IV - Alabama, Florida, Georgia, Mississippi,
                 Kentucky, North Carolina, South Carolina,
                 West Virginia
     345 Court!and, N.E.
     Atlanta, GA  30308
     Telephone:  404-881-4727
     Region V - Illinois, Indiana, Michigan, Minnesota,
                Ohio, Wisconsin
     230 South Dearborn
     Chicago, IL  60604
     Telephone:  312-353-2000
                                  E-l

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     Region VI - Arkansas, Louisiana, New Mexico, Oklahoma, Texas
     First International Building
     1201 Elm Street
     Dallas, Texas  75270
     Telephone:  214-767-2000
     Region VII - Iowa, Kansas, Missouri, Nebraska
     1735 Baltimore Street
     Kansas City, MO  64108
     Telephone:  816-374-5493
     Region VIII - Colorado, Montana, North Dakota,
                   South Dakota, Utah, Wyoming
     1860 Lincoln Street
     Denver, CO  80295
     Telephone:  303-837-3895
     Region IX - Arizona, California, Hawaii, Nevada, Guam,
                 American Samoa
     215 Fremont Street
     San Francisco, CA  94051
     Telephone:  415-556-2320
     Region X - Washington, Oregon, Idaho, Alaska
     1200 Sixth Avenue
     Seattle, WA  98101
     Telephone:  206-442-1220
E. 2  COMPLIANCE
     General procedures for compliance testing and emission monitoring are
specified in Subpart A, Part 60, Subchapter C, Chapter 1, Title 40, Code of
Federal Regulations.   Compliance with the proposed emission limits would be
determined by the following steps:
     1.   Determine the average VOC content per liter of coating solids of
          the prime coat, guide coat, and topcoat materials being used.
          This would require analyzing all coating materials used in each
          coating operation using the proposed Reference Method 24 and
                                  E-2

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     calculating an average VOC content for each surface coating
     operation.
2.   Select the appropriate transfer efficiency for each surface
     coating operation from the table included in the standards.
3.   Calculate the mass of VOC emissions per volume of applied solids
     for each surface coating operation by dividing the appropriate
     average VOC content of the coatings (Step 1) by the transfer
     efficiency of the surface coating operation (Step 2).   If the
     value obtained is lower than the emission limit included in the
     standards, the surface coating operation would be in compliance.
     If the value obtained is higher than the emission limit, add-on
     VOC emission control would be required to comply with the stan-
     dards.
4.   If add-on emission control is required, calculate the emission
     reduction efficiency in VOC emissions which is required using the
     equations included in the standards.
5.   In cases where all exhaust gases are not vented to an emission
     control device, the percentage of total VOC emissions which enter
     the add-on emission control device would have to be determined by
     sampling all the stacks and using the equations included in the
     standards.  Representative sampling,  however, could be approved
     by the Administrator, on a case-by-case basis, rather than requiring
     sampling of all stacks for this determination.
6.   The actual efficiency of the control  device would be calculated
     by determining VOC emissions before and after the device using
     the proposed Reference Method 25.
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     7.   The VOC emission reduction efficiency achieved would be calculated
          by multiplying the percentage of VOC emissions which enter the
          add-on VOC emission control device (Step 5) by the add-on control
          device efficiency (Step 6).  If the resulting value of the emis-
          sion reduction efficiency achieved were greater than that required
          (Step 4), then the surface coating operation would be in compliance.
     Facilities which have achieved compliance without the use of add-on
control devices would be monitored by analyzing the coating materials.
Increases in the solvent content of coating materials will cause the VOC
emissions to increase.   Therefore, after the initial compliance determina-
tions have been made, increases in the arithmetic average of the solvent
content of all the paints used by a plant would have to be.reported to EPA
by the plant on a quarterly basis.
     Combustion temperatures would be monitored in incineration units which
were used to comply with the standard.   The initial temperature measurements
would be made during compliance testing.   Decreases in the combustion
temperature in the incinerator would be reported to EPA on a quarterly
basis.
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