Executive Brief - SPI Fluoropolymers Division Coaters Group
Status of Miscellaneous Metal Parts Rulemaking

The Issue

The Environmental Protection Agency's (EPA's) proposed national emission standard for hazardous air pollutants from the surface coating of miscellaneous metal parts and products (MMP NESHAP) threatens the availability of the extreme-performance fluoropolymer (EPFP) coatings used by FPD Coaters. 67 Fed. Reg. 52,779 (August 13, 2002).

The proposed rule classifies EPFP coatings as a "general purpose coating" subject to a hazardous air pollutant (HAP) limit for existing sources of 2.6 lbs. HAP/gal. of coating solids. EPFP coatings are unable to meet this limit through reformulation, and add-on controls are prohibitively expensive. EPFP coatings are uniquely qualified as specialty coatings that, given their mission critical applications, low volume, and correspondingly minor contribution to overall HAP emissions, should be exempt from the rule altogether.

Small Business Impact

The proposed MMP NESHAP unduly regulates SPI members that use these coatings and their customers, which also are predominantly small businesses. This sector consists of approximately 200 companies, most of which are small businesses. The situation is somewhat unique in that the size of the EPFP coatings sector is disproportionate to its impact on the national economy. EPFP coatings are essential components in the manufacture of critical defense applications, such as solid rocket propellant, aircraft air conditioning systems, jet fueling nozzles, and lightweight laser weaponry. Exhibiting no fewer than fifteen unique properties, there are virtually no replacements for these coatings in the aircraft and aerospace applications and in the production and supply of critical parts for the medical and automotive industries.

SPI Actions

April 1, 1999: SPI writes to the EPA to notify the Agency of its interest in the MMP NESHAP rulemaking and its effect on EPFP coatings.

May 1999 - August 2002: SPI monitors the development of the proposed rule and discusses the proposal in telephone conversations with EPA staff.

August 13, 2002: The proposed rule is published.

October 15, 2002: SPI files comments on the proposed rule with the EPA.

December 6, 2002: Upon learning that the MMP NESHAP is on a fast track toward finalization by February 2003, SPI writes a letter expressing concern to Jeffrey Holmstead, the Assistant Administrator for the Office of Air and Radiation, that an accelerated schedule may cause the Agency to overlook the EPFP coatings issue. SPI meets with Bill Wehram, Counsel to the Assistant Administrator, to provide a briefing on the impact this rule will have on small businesses in the plastics industry, and many other industries that touch nearly every area of the U.S. economy. During the meeting, SPI requests an opportunity to meet with and brief the EPA technical staff.

December 13, 2002: SPI is informed that the MMP NESHAP finalization date is moved to August 2003. SPI learns in subsequent conversations with EPA technical staff that the Agency is considering including EPFP coatings in the High Performance Category for purposes of the rule, with a HAP emission limit of 27.54 lbs. HAP/gal. of coating solids.

January 14, 2003: Kevin Bromberg of the Small Business Administration is provided with a copy of SPI's Dec. 6, 2002 letter to Jeffrey Holmstead for the purpose of alerting the SBA concerning the small business impacts of this rulemaking.

January 28, 2003: SPI Coaters and staff will meet with EPA staff in Research Triangle Park to stress the need for an exemption for EPFP coatings from the MMP NESHAP.

September 3, 2003 - EPA MACT ruling reflects SPI input. Click here for the press release.