Utah Air Quality Plan Rule Approvals
Summary
The Environmental Protection Agency (EPA) is approving State Implementation Plan (SIP) revisions submitted by the State of Utah on April 19, 2018; May 21, 2020; and July 21, 2020. These SIP submissions include revisions to air quality rules within Utah Administrative Code (UAC) title R307. EPA is taking this action pursuant to the Clean Air Act (CAA or the Act).
Market Impacts
Approval of vehicle inspection and maintenance (I/M) programs for Davis and Weber Counties, excluding diesel inspection procedures and test procedures in appendices D and F. This establishes federally enforceable requirements for vehicle emissions testing in these counties.; Approval of R307-208 Outdoor Wood Boilers rule, establishing emission standards and requirements for outdoor wood-fired boilers sold and operated in Utah; Approval of R307-230 NOx Emission Limits for Natural Gas-Fired Water Heaters, establishing nitrogen oxide emission standards for water heaters; Approval of R307-304 Solvent Cleaning and R307-335 Degreasing rules, establishing emission control requirements for solvent cleaning and degreasing operations; Approval of multiple coating and manufacturing emission standards including wood furniture (R307-343), various coatings (R307-344 to R307-354), and aerospace manufacturing (R307-355) emissions control requirements; Creation of new market opportunities for environmental technology providers, emission control equipment manufacturers, and compliance consulting services due to multiple new emission control requirements
Validated Company Impacts
Axalta Coating Systems Ltd.
Axalta Coating Systems is a global manufacturer of coatings and paint products, which directly aligns with the rule's approval of multiple coating emission standards (R307-343 to R307-355) that establish emission control requirements for wood furniture, various coatings, and manufacturing operations. As a coatings manufacturer operating in Utah and subject to these new federally enforceable requirements, the company would be significantly affected by compliance obligations. The rule focuses on air quality compliance requirements for specific industries and equipment, while the company's environmental remediation risk is generic and not specifically tied to air emissions or the regulated activities mentioned. The company's regulatory compliance risks appear broader and not directly aligned with the emission control requirements of this Utah-specific air quality rule.
PPG INDUSTRIES INC
PPG Industries operates directly in multiple markets targeted by this rule, including coating and paint manufacturing (R307-344 to R307-354), solvent manufacturing (R307-304 and R307-335), and potentially aerospace manufacturing coatings (R307-355). As a major global supplier of paints, coatings, and specialty materials, the company would be significantly affected by the emission control requirements and compliance standards established for these manufacturing operations in Utah. The federal rule focuses entirely on environmental compliance and emission control requirements, while the company's disclosed risk profile consists exclusively of financial and market risks related to currency fluctuations, interest rates, and derivatives. There is no overlap between the rule's environmental regulatory impacts and the company's financial/market risk exposures.
TMC the metals Co Inc.
TMC operates exclusively in deep-sea mineral exploration and processing in international waters, which has no connection to the Utah-specific air quality regulations governing vehicle emissions, wood boilers, water heaters, solvent cleaning, or manufacturing coatings. The company's business model involves underwater resource extraction rather than any activities regulated by terrestrial air pollution controls. The rule's emission control requirements for manufacturing operations, equipment standards, and compliance obligations directly align with the company's identified regulatory risks regarding emissions regulations and increased operational costs. The company's climate change and public policy risks related to net zero commitments also show strong overlap with the rule's environmental focus.