[Federal Register Volume 76, Number 123 (Monday, June 27, 2011)]
[Proposed Rules]
[Pages 37300-37307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16010]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 98
[EPA-HQ-OAR-2011-0417; FRL-9323-3]
RIN 2060-AP99
Mandatory Reporting of Greenhouse Gases: Petroleum and Natural
Gas Systems: Revisions to Best Available Monitoring Method Provisions
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: EPA is proposing to amend certain provisions related to best
available monitoring methods in regulations for Petroleum and Natural
Gas Systems of the Greenhouse Gas Reporting Rule. Specifically, EPA is
proposing to extend the time period during which owners and operators
of covered facilities would be permitted to use best available
monitoring methods during 2011 without submitting a request to the
Administrator for approval. In addition, EPA is proposing to expand the
list of types of emissions sources for which owners and operators would
not be required to submit a request to the Administrator to use best
available monitoring methods for 2011 and extend the deadline by which
owners and operators of covered facilities would request use of best
[[Page 37301]]
available monitoring methods for beyond 2011. These proposed amendments
are in response to a request for reconsideration of specific
provisions.
DATES: Comments. Comments must be received on or before July 27, 2011,
unless a public hearing is held, in which case comments must be
received on or before August 11, 2011.
Public Hearing. A public hearing will be held if requested. To
request a hearing, please contact the person listed in the following
FOR FURTHER INFORMATION CONTACT section by July 5, 2011. If requested,
the hearing will be conducted on July 12, 2011, in the Washington, DC
area. EPA will provide further information about the hearing on its
webpage if a hearing is requested.
ADDRESSES: You may submit your comments, identified by docket ID No.
EPA-HQ-OAR-2011-0417 by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments.
E-mail: [email protected]. Include Docket ID No. EPA-HQ-OAR-2011-0417 in the subject
line of the message.
Fax: (202) 566-9744.
Mail: Environmental Protection Agency, EPA Docket Center
(EPA/DC), Mailcode 28221T, Attention Docket ID No. EPA-HQ-OAR-2011-
0147, 1200 Pennsylvania Avenue, NW., Washington, DC 20460.
Hand/Courier Delivery: EPA Docket Center, Public Reading
Room, EPA West Building, Room 3334, Attention Docket ID No. EPA-HQ-OAR-
2011-0147, 1301 Constitution Avenue, NW., Washington, DC 20004. Such
deliveries are only accepted during the docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2011-0417, Mandatory Reporting of Greenhouse Gases: Petroleum and
Natural Gas Systems. EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at http://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed
to be confidential business information (CBI) or other information
whose disclosure is restricted by statute. Do not submit information
that you consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site
is an ``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses.
Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available for viewing at the
EPA Docket Center. Publicly available docket materials are available
either electronically in http://www.regulations.gov or in hard copy at
the EPA Docket Center, EPA/DC, EPA West Building, Room 3334, 1301
Constitution Ave., NW., Washington, DC. This Docket Facility is open
from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal
holidays. The telephone number for the Public Reading Room is (202)
566-1744, and the telephone number for the Air Docket is (202) 566-
1742.
FOR FURTHER INFORMATION CONTACT: Carole Cook, Climate Change Division,
Office of Atmospheric Programs (MC-6207J), Environmental Protection
Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; telephone
number: (202) 343-9263; fax number: (202) 343-2342; e-mail address:
[email protected].
Worldwide Web (WWW). In addition to being available in the docket,
an electronic copy of today's proposal will also be available through
the WWW. Following the Administrator's signature, a copy of this action
will be posted on EPA's greenhouse gas reporting rule Web site at
http://www.epa.gov/climatechange/emissions/ghgrulemaking.html.
Additional information on Submitting Comments. To expedite review
of your comments by Agency staff, you are encouraged to send a separate
copy of your comments, in addition to the copy you submit to the
official docket, to Carole Cook, U.S. EPA, Office of Atmospheric
Programs, Climate Change Division, Mail Code 6207-J, Washington, DC
20460, telephone (202) 343-9263, e-mail address:
[email protected].
SUPPLEMENTARY INFORMATION:
Organization of this document. The information presented in this
preamble is organized as follows:
I. General Information
A. Does this action apply to me?
B. Acronyms and Abbreviations
II. Background
III. Proposed Amendments to 40 CFR part 98
IV. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
H. Executive Order 13211: Actions That Significantly Affect
Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
I. General Information
A. Does this action apply to me?
These are proposed amendments to optional methods under an existing
regulation. If finalized, these amended regulations could affect owners
or operators of petroleum and natural gas systems. Regulated categories
and entities include those listed in Table 1 of this preamble:
Table 1--Examples of Affected Entities by Category
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Examples of affected
Source category NAICS facilities
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Petroleum and Natural Gas Systems... 486210 Pipeline transportation
of natural gas.
[[Page 37302]]
221210 Natural gas
distribution
facilities.
211 Extractors of crude
petroleum and natural
gas.
211112 Natural gas liquid
extraction facilities.
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Table 1 of this preamble is not intended to be exhaustive, but
rather provides a guide for readers regarding facilities likely to be
affected by this action. Although Table 1 of this preamble lists the
types of facilities of which EPA is aware that could be potentially
affected by this action, other types of facilities not listed in the
table could also be affected. To determine whether you are affected by
this action, you should carefully examine the applicability criteria
found in 40 CFR part 98, subpart W or the relevant criteria in the
sections related to petroleum and natural gas systems. If you have
questions regarding the applicability of this action to a particular
facility, consult the person listed in the preceding FOR FURTHER
INFORMATION CONTACT section.
B. Acronyms and Abbreviations
The following acronyms and abbreviations are used in this document.
API American Petroleum Institute
AXPC American Exploration & Production Council
BAMM best available monitoring methods
CAA Clean Air Act
CBI confidential business information
CEC Chesapeake Energy Corporation
CFR Code of Federal Regulations
EO Executive Order
EPA U.S. Environmental Protection Agency
FR Federal Register
GHG greenhouse gas
IBR incorporation by reference
ICR information collection request
ISO International Organization for Standardization
MRR mandatory GHG reporting rule
OMB Office of Management and Budget
RFA Regulatory Flexibility Act
RIA Regulatory Impact Analysis
SBA Small Business Administration
SBREFA Small Business Regulatory Enforcement and Fairness Act
U.S. United States
UMRA Unfunded Mandates Reform Act of 1995
USC United States Code
II. Background
The EPA published Subpart W: Petroleum and Natural Gas Systems of
the Greenhouse Gas Reporting Rule on November 30, 2010, 40 CFR part 98,
subpart W (75 FR 74458) (subpart W). Included in the final rule were
new provisions that were added in response to comments on the proposal
allowing owners or operators the option of using best available
monitoring methods (BAMM) for specified parameters in 40 CFR 98.233.
As stated in the preamble to the 2009 final rule (74 FR 56260), CAA
section 114 provides EPA broad authority to require the information
required to be gathered under subpart W. As discussed in the preamble
to the initial proposed rule (74 FR 16448, April 10, 2009), CAA section
114(a)(1) authorizes the Administrator to require emissions sources,
persons subject to the CAA, manufacturers of control or process
equipment, or persons whom the Administrator believes may have
necessary information to monitor and report emissions and provide such
other information the Administrator requests for the purposes of
carrying out any provision of the CAA. For further information about
EPA's legal authority, see the preamble to the April 2009 (74 FR 16448)
proposal and October 2010 (74 FR 56260) final rules for the Mandatory
Reporting of Greenhouse Gases.
Following the publication of subpart W in the Federal Register,
several industry groups requested reconsideration of several provisions
in the final rule, including the provisions for BAMM. In a follow up
action, EPA granted reconsideration and extended specific BAMM
deadlines in a rule that was promulgated on April 25, 2011 (76 FR
22825).
In further response to that request for reconsideration of specific
BAMM provisions, EPA is seeking comment on several proposed amendments
to the BAMM provisions in this proposal, including extension of the
time period during which owners and operators of covered facilities
with emissions sources listed in 40 CFR 98.234(f)(2), (f)(3), (f)(4),
and (f)(5)(iv) would be permitted to use BAMM during calendar year 2011
without having to request approval from the Administrator.
Additionally, EPA is seeking comment on the proposed amendment to the
BAMM provisions beyond 2011 outlined in this proposal which includes an
initial submission of a notice of intent to request use of BAMM beyond
2011 followed by a submission of a BAMM request consistent with 40 CFR
98.234(f)(8)(ii) to the Administrator for approval to use BAMM beyond
2011.
III. Proposed Amendments to 40 CFR Part 98
Subpart W of the GHG reporting rule includes provisions allowing
owners and operators of covered facilities to use BAMM in lieu of
specified data input requirements for determining greenhouse gas
emissions in certain circumstances for specified emissions sources.
Methods that constitute BAMM are: Supplier data; monitoring methods
currently used by the facility that do not meet the specifications of a
relevant subpart; engineering calculations; and/or other company
records. When using BAMM, the owner or operator must use the equations
and calculation methods set forth in 40 CFR 98.233, but may use BAMM to
estimate the parameters in the equations as specified in the rule.
EPA carefully evaluated each emissions source outlined in subpart
W, and the required calculation methodologies for determining
greenhouse gas emissions from that emissions source. Based on this
evaluation, EPA has identified the specific emission sources for which
the use of BAMM would be appropriate. Those emission sources are
categorized into the following four groups.
Well-related emissions. This group of emissions sources includes
those well-related data that cannot reasonably be measured according to
the monitoring and QA/QC requirements of subpart W such as well
testing, venting, and flaring, for example.
Specified activity data. This group includes those activity data
that cannot reasonably be obtained according to the monitoring and QA/
QC requirements specified in subpart W such as cumulative hours of
venting, days, or times of operation, for example.
Leak Detection and Measurement. This group includes those sources
of emissions that require leak detection and/or measurement such as the
measurement of equipment leaks from valves and connectors.
Unique or Unusual Circumstances. These circumstances include
emission sources not covered under the previous three categories for
which the owner or operator of a covered facility is facing unique or
unusual circumstances, such as data collection methods that do not meet
safety regulations, technical
[[Page 37303]]
infeasibility such as a compressor never having maintenance during the
calendar year rendering the installation of a port or meter difficult,
or legal issues rendering them unable to meet the requirements of
subpart W.
EPA is proposing the following amendments to subpart W:
Best available monitoring methods for well-related
emissions. EPA is proposing to extend the time period for use of
BAMM without EPA approval, by three months, such that owners and
operators of facilities with emissions sources listed in 40 CFR
98.234(f)(2) would not be required to request approval by the
Administrator to use BAMM between January 1, 2011 and December 31,
2011.
Best available monitoring methods for specified
activity data. EPA is proposing to extend the time period for use of
BAMM without EPA approval, by three months, such that owners and
operators of facilities with emissions sources listed in 40 CFR
98.234(f)(3) would not be required to request approval by the
Administrator to use BAMM between January 1, 2011 and December 31,
2011.
Best available monitoring methods for leak detection
and measurement. EPA is proposing to allow owners and operators of
facilities with emissions sources listed in 40 CFR 98.234(f)(4) to
use BAMM between January 1, 2011 and December 31, 2011 without
having to request approval from the Administrator.
Best available monitoring methods for unique or unusual
circumstances. EPA is proposing to allow owners and operators of
facilities with emissions sources listed in 40 CFR 98.234(f)(5)(iv)
to use BAMM between January 1, 2011 and December 31, 2011 without
having to request approval from the Administrator.
Best available monitoring methods for use beyond
December 31, 2011. EPA is proposing to revise the introductory
sentence in 40 CFR 98.234(f)(8) by removing reference to extreme
circumstances. In addition, EPA is proposing to amend 40 CFR
98.234(f)(8)(i) such that owners and operators of facilities with
emissions sources listed in 40 CFR 98.234(f)(8) may submit a notice
of intent to submit a request for BAMM beyond 2011 to EPA by
December 31, 2011. Facilities that submit a BAMM request consistent
with 40 CFR 98.234(f)(8)(ii) by March 30, 2012 who have also
submitted a notice of intent by December 31, 2011 would
automatically be granted BAMM through June 30, 2012. Facilities
which submit such a notice of intent but do not follow up with a
BAMM request by March 30, 2012 would not be allowed to use BAMM
after December 31, 2011.
Following promulgation of subpart W on November 30, 2010, industry
groups sought reconsideration of several provisions in the final rule,
including the provisions allowing owners and operators of facilities
with emissions sources listed in 40 CFR 98.234(f)(2), (f)(3),(f)(4),
and (f)(5)(iv) to use BAMM.
By letter dated January 31, 2011, Chesapeake Energy Corporation
(CEC) and the American Exploration & Production Council (AXPC) stated
that ``BAMM should be allowed without EPA approval for entities
reporting under subpart W for the entire first reporting year 2011 and
for all data necessary to conduct the calculations required under the
rule.'' Also, by letter dated January 31, 2011, the American Petroleum
Institute (API) stated that ``[u]pon reconsideration, API requests that
EPA provide pre-approval for (1) leak detection and measurement * * *''
and also ``[u]pon reconsideration, API requests that EPA allow BAMM to
be used for the onshore production sector and activity data categories
through December 31, 2011.''
EPA met with several trade associations and companies that own or
operate facilities subject to subpart W. During those meetings, several
companies requested an extension of the BAMM provisions in order to
complete initial equipment inventories and to secure internal resources
to report data to EPA in accordance with the rule requirements. In
particular, companies stated that a large number of data points that
are necessary to determine greenhouse gas emissions using the
calculation methodologies outlined in subpart W are not currently
tracked by internal company data systems and may not be managed by the
company in such a way that would enable those data to be readily
reported to EPA in a timely manner.
By letter dated May 3, 2011 API submitted information to EPA
regarding the number of sources for which information must be
collected. The letter states that ``[g]iven the extraordinary scope of
Subpart W--both the hundreds of thousands of discrete sites and sources
whose emissions must be quantified and reported and their broad
geographic dispersion--compliance with the monitoring and reporting
deadlines and the deadlines to apply for approval to extend the use of
BAMM are not only unrealistic but infeasible.'' The letter further
states that ``[t]he Onshore Petroleum and Natural Gas Production
segment of the Petroleum and Natural Gas Systems source category
(Onshore Production) alone covers hundreds of thousands [emphasis in
original] of well sites along with tens of thousands of sites
``associated with a well pad'' (which is not defined or discussed in
the rule). These sites are widely dispersed across hundreds of
thousands of square miles in all of the oil and gas producing basins
across the United States. The seven additional industry segments
subject to subpart W extend this coverage to tens of thousands of
additional offshore platforms, onshore sites and facilities, and
natural gas distribution sites. Within each of these industry segments,
subpart W mandates that reporters monitor and determine emissions from
multiple source types; for example, the Onshore Production portion of
the rule covers 22 distinct source types. Each of these source types
requires the collection of a broad variety of information, data points,
analyses, models, and/or measurements to determine emissions and submit
emission reports.''
The letter also states that ``[t]he problems created by the large
number of facilities that are subject to the rule are exacerbated by
their wide geographic distribution. Unlike a chemical plant or a
refinery, oil and natural gas operations are spread out over huge
geographic areas and are typically not staffed at all times. Often
there is no electricity, difficult access, and little existing
infrastructure or communications ability at these disparate locations.
Given this geographic dispersion of oil and natural gas facilities,
installation of any additional equipment, monitors, and/or data
acquisition and transmitting systems will be very challenging. Even
traveling to each of these sites requires significant time and effort.
When this is combined with the specific monitoring methods demanded by
the rule, reporters cannot realistically meet the rule's BAMM extension
application deadlines or have the full suite of required monitoring and
recordkeeping systems in place by September 30.''
For example, companies that own or operate facilities subject to
subpart W, such as API members, and as discussed in API's May 3, 2011
correspondence, the data collection systems that would be necessary to
collect and process the numerous inputs required for subpart W are very
complex. Because of the extensive, inter-related, complex nature of
these data collection systems, many companies described the need for
automatic BAMM for emissions sources that fall under 40 CFR
98.234(f)(5)(iv). For some sources, it would be nearly impossible to
gauge in advance the exact nature of the BAMM that would be needed; for
example, if one specific tank pressure measurement was not available
and an alternate method was required to be used, a company or facility
may not have had advance knowledge of that need and may not have
prepared a specific BAMM request for that alternate measurement by the
BAMM application deadline.
Because EPA did not include specific BAMM provisions in the
proposed rule
[[Page 37304]]
for subpart W (75 FR 18609), companies did not have the opportunity to
comment on BAMM timelines and how those timelines would affect their
facilities. Therefore, after evaluating the information provided, EPA
has concluded that it is appropriate to propose extending the time
period, to December 31, 2011, that owners and operators of covered
facilities would be allowed to use BAMM without having to submit a
request for approval from the Administrator. EPA believes these
proposed amendments to the BAMM provisions are appropriate in order to
provide sufficient time for companies to collect, prepare and submit
data to EPA during the initial year of reporting.
In this action, EPA is proposing to amend 40 CFR part 98 subpart W
to allow facilities with the emissions sources listed in 40 CFR
98.234(f)(2), (f)(3), (f)(4), and (f)(5)(iv) to automatically use BAMM,
without EPA approval, for the entire 2011 reporting year.
We are also proposing to amend 40 CFR 98.234(f)(8) for owners and
operators who want to request to use BAMM beyond 2011. In this
proposal, owners or operators requesting to use BAMM beyond 2011 are
required to electronically notify EPA by December 31, 2011 that they
intend to apply for BAMM for unique or unusual circumstances such as
data collection methods that do not meet safety, technical, or legal
issues rendering them unable to meet the requirements of subpart W.
Owners or operators must submit the full extension request for BAMM by
March 30, 2012. The full extension request must include a list of
specific source categories and parameters at the facility for which the
owner or operator is seeking to use BAMM. The full request must also
include a description of the unique or unusual circumstances, including
data collection methods that do not meet safety regulations, methods
that are technically infeasible, or specific laws or regulations that
conflict with each specific source for which BAMM is being requested.
In addition, the full request must include supporting documentation of
how and when the owner or operator will come into full compliance with
subpart W, including but not limited to acquiring necessary services or
equipment to comply with all of subpart W reporting requirements. The
contents of the full BAMM request for post 2011 remain unchanged from
the 2010 final rule (75 FR 74508) with the exception that we are
clarifying in this proposal that the circumstances under which BAMM may
be requested beyond 2011 are not limited to concerns about safety,
technical infeasibility or instances where meeting monitoring
requirements under subpart W would conflict with specific laws or
regulations. Other unique or unusual circumstances may be appropriate
for requesting BAMM, if properly demonstrated. We are seeking comment
only on these amendments to 40 CFR 98.234(f)(8)(iv) which we have
proposed to change and not other elements of the post 2011 BAMM
process.
Further, we would note that the notice of intent, due December 31,
2011 to request BAMM post 2011 is intended for known issues (e.g., a
monitoring requirement in the rule is counter to another federal, state
or local regulation). EPA does not intend for the proposed amendments
to 40 CFR 98.234(f)(8) to lead to a submission of a notification of
intent and a subsequent BAMM request consistent with 40 CFR
98.234(f)(8)(ii) by a facility to cover that facility in the event that
the facility might need BAMM in a future year (sometimes referred to as
a ``protective filing''). Submission of a BAMM request for these
possible future issues (e.g, newly acquired operations) is covered
under 40 CFR 98.234(f)(1), which states ``EPA reserves the right to
review petitions after the deadline but will only consider and approve
late petitions which demonstrate extreme or unusual circumstances.''
EPA recognizes that it is not reasonable to predict all potential
future issues and, as such, reserves the right to consider those BAMM
requests in future years, without the reporter's having to notify EPA
by the December 31, 2011 notification of intent deadline described in
40 CFR 98.234(f)(8).
Once the owner or operator has notified EPA, by December 31, 2011,
of their intent to apply for BAMM and has subsequently submitted a full
extension request, by March 30, 2012, they can automatically use BAMM
for the specific parameters identified in their request through June
30, 2012, regardless of the final determination by EPA on approval or
denial of the BAMM request. This automatic extension would be necessary
because under the proposed rule, facilities would have only been
granted automatic BAMM through December 31, 2011. For facilities that
are requesting BAMM for beyond 2011, BAMM must be extended
automatically to provide EPA the time to review thoroughly the BAMM
requests submitted for beyond 2011, while ensuring that the requesting
facilities are not out of compliance with the rule during that review
process. The owners and operators who apply for BAMM beyond 2011 must
follow the requirements as stated in subpart W by July 1, 2012, unless
EPA approves their BAMM extension request (due March 30, 2012). Under
the proposal, facilities that submit a notice of intent but do not
follow up with a BAMM request consistent with 40 CFR 98.234(f)(8)(ii)
by March 30, 2012 cannot use BAMM after December 31, 2011.
EPA is seeking comment on these proposed deadlines for BAMM beyond
2011. EPA recognizes that there may be additional concerns related to
BAMM for post 2011 that were raised in the petitions for
reconsideration. Although EPA is aware of these concerns, we are not
proposing amendments related to these concerns at this time. We are
seeking comments only on the proposal to extend the BAMM deadlines (for
both 2011 and post 2011) and to clarify that BAMM may be sought for
unique or unusual (as opposed to ``extreme'') circumstances, including
data collection methods that do not meet safety regulations, technical
infeasibility and instances where subpart W monitoring requirements
would conflict with regulations.
EPA is also re-numbering several paragraphs that were incorrectly
numbered. 40 CFR 98.234(f)(8)(iii) is re-designated as 40 CFR
98.234(f)(8)(ii)(A). 40 CFR 98.234(f)(8)(iv) is re-designated as 40 CFR
98.234(f)(8)(ii)(B). 40 CFR 98.234(f)(8)(v) is re-designated as 40 CFR
98.234(f)(8)(ii)(C). 40 CFR 98.234(f)(8)(v)(C) is re-designated as 40
CFR 98.234(f)(8)(iii).
The Administrator has determined that this action is subject to the
provisions of Clean Air Act (CAA) section 307(d). See CAA section
307(d)(1)(V)(the provisions of section 307(d) apply to ``such other
actions as the Administrator may determine'').
IV. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a ``significant regulatory action'' under the
terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is
therefore not subject to review under Executive Orders 12866 and 13563
(76 FR 3821, January 21, 2011).
B. Paperwork Reduction Act
This action does not impose any new information collection burden.
These amendments affect provisions in the rule related to best
available monitoring methods, which is an optional provision and is not
mandatory. Furthermore, the proposed amendments would
[[Page 37305]]
significantly reduce the administrative burden on industry by removing
the requirement to make a formal application to use best available
monitoring methods in 2011. However, the Office of Management and
Budget (OMB) has previously approved the information collection
requirements contained in the existing regulations, 40 CFR part 98
subpart W (75 FR 74458), under the provisions of the Paperwork
Reduction Act, 44 U.S.C. 3501 et seq. and has assigned OMB control
number [2060-0651]. The OMB control numbers for EPA's regulations in 40
CFR are listed in 40 CFR part 9. The ICR number for 40 CFR part 98,
subpart W is 2376.03.
C. Regulatory Flexibility Act
The RFA generally requires an agency to prepare a regulatory
flexibility analysis of any rule subject to notice and comment
rulemaking requirements under the Administrative Procedure Act or any
other statute unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Small entities include small businesses, small organizations, and small
governmental jurisdictions.
For purposes of assessing the impacts of this proposed rule on
small entities, small entity is defined as: (1) A small business as
defined by the Small Business Administration's regulations at 13 CFR
121.201; (2) a small governmental jurisdiction that is a government of
a city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
After considering the economic impacts of today's proposed rule on
small entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. In
determining whether a rule has a significant economic impact on a
substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the rule on small entities.'' 5 U.S.C. 603 and 604.
Thus, an agency may certify that a rule will not have a significant
economic impact on a substantial number of small entities if the rule
relieves regulatory burden, or otherwise has a positive economic effect
on all of the small entities subject to the rule.
Based on these proposed amendments, certain companies would be
granted additional time to use BAMM during 2011 without being required
to submit an application for approval to the Administrator. In
addition, these proposed amendments increase the scope of the types of
companies who would be granted the option to use BAMM in 2011 without
being required to submit an application for approval to the
Administrator. Finally, companies who choose to request BAMM for 2012
and beyond would be given additional time by which they would be
required to submit their application to the EPA Administrator for
approval. We have therefore concluded that these proposed amendments
will relieve regulatory burden for all affected small entities. We
continue to be interested in the potential impacts of the proposed rule
on small entities and welcome comments on issues related to such
impacts.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2
U.S.C. 1531-1538, requires Federal agencies, unless otherwise
prohibited by law, to assess the effects of their regulatory actions on
State, local, and Tribal governments and the private sector. Federal
agencies must also develop a plan to provide notice to small
governments that might be significantly or uniquely affected by any
regulatory requirements. The plan must enable officials of affected
small governments to have meaningful and timely input in the
development of EPA regulatory proposals with significant Federal
intergovernmental mandates and must inform, educate, and advise small
governments on compliance with the regulatory requirements.
The proposed rule amendments do not contain a Federal mandate that
may result in expenditures of $100 million or more for State, local,
and tribal governments, in the aggregate, or the private sector in any
one year. Thus, the proposed rule amendments are not subject to the
requirements of section 202 and 205 of the UMRA. This rule is also not
subject to the requirements of section 203 of UMRA because it contains
no regulatory requirements that might significantly or uniquely affect
small governments.
The proposed amendments will not impose any new requirements that
are not currently required for 40 CFR part 98, and the rule amendments
would not unfairly apply to small governments. Therefore, this action
is not subject to the requirements of section 203 of the UMRA.
E. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132.
These amendments apply to an optional provision in the final rule
for subpart W, which applies to petroleum and natural gas facilities
that emit greenhouse gases. Few, if any, State or local government
facilities would be affected. This regulation also does not limit the
power of States or localities to collect GHG data and/or regulate GHG
emissions. Thus, Executive Order 13132 does not apply to this action.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have tribal implications, as specified in
Executive Order 13175 (65 FR 67249, November 9, 2000). The proposed
rule amendments would not result in any changes to the current
requirements of 40 CFR part 98 subpart W. The amendments proposed in
this rule only apply to optional provisions in 40 CFR part 98 subpart
W. Thus, Executive Order 13175 does not apply to this action.
Although Executive Order 13175 does not apply to this action, EPA
sought opportunities to provide information to Tribal governments and
representatives during the development of the rule for subpart W
promulgated on November 30, 2010. A summary of the EPA's consultations
with Tribal officials is provided in Sections VIII.D and VIII.F of the
preamble to the 2009 final rule and Section IV.F of the preamble to the
2010 final rule for subpart W (75 FR 74485).
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997)
as applying only to those regulatory actions that concern health or
safety risks, such that the analysis required under section 5-501 of
the Executive Order has the potential to influence the regulation. This
action is not subject to Executive Order 13045 because it does not
establish an environmental standard intended to mitigate health or
safety risks.
[[Page 37306]]
H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This action is not subject to Executive Order 13211 (66 FR 28355,
May 22, 2001), because it is not a significant regulatory action under
Executive Order 12866.
I. National Technology Transfer and Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. NTTAA directs EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards.
This proposed rulemaking does not involve technical standards.
Therefore, EPA is not considering the use of any voluntary consensus
standards.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
Executive Order 12898 (59 FR 7629, February 16, 1994) establishes
Federal executive policy on environmental justice. Its main provision
directs Federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
EPA has determined that this proposed rule will not have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it does not
affect the level of protection provided to human health or the
environment because it is a rule addressing information collection and
reporting procedures.
List of Subjects in 40 CFR Part 98
Environmental protection, Administrative practice and procedures,
Greenhouse gases, Air pollution control, Monitoring, Reporting and
recordkeeping requirements.
Dated: June 20, 2011.
Lisa P. Jackson,
Administrator.
For the reasons discussed in the preamble, EPA proposes to amend 40
CFR part 98 as follows:
PART 98--[AMENDED]
1. The authority citation for part 98 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
Subpart W [Amended]
2. Section 98.234 is amended as follows:
a. By revising paragraph (f)(2) introductory text.
b. By revising paragraph (f)(3) introductory text.
c. By revising paragraph (f)(4) introductory text.
d. By revising paragraph (f)(5).
e. By removing and reserving paragraph (f)(6).
f. By removing and reserving paragraph (f)(7).
g. By revising paragraph (f)(8).
The revisions read as follows:
Sec. 98.234 Monitoring and QA/QC Requirements
* * * * *
(f) * * *
(2) Best available monitoring methods for well-related emissions.
During January 1, 2011 through December 31, 2011, owners and operators
may use best available monitoring methods for any well-related data
that cannot reasonably be measured according to the monitoring and QA/
QC requirements of this subpart. These well-related sources are:
* * * * *
(3) Best available monitoring methods for specified activity data.
During January 1, 2011 through December 31, 2011, owners or operators
may use best available monitoring methods for activity data as listed
below that cannot reasonably be obtained according to the monitoring
and QA/QC requirements of this subpart. These sources are:
* * * * *
(4) Best available monitoring methods for leak detection and
measurement. During January 1, 2011 through December 31, 2011, owners
or operators may use best available monitoring methods for sources
requiring leak detection and/or measurement. These sources include:
* * * * *
(5) Requests for the use of best available monitoring methods. (i)
No request or approval by the Administrator is necessary to use best
available monitoring methods between January 1, 2011 and December 31,
2011 for the sources specified in paragraph (f)(2) of this section.
(ii) No request or approval by the Administrator is necessary to
use best available monitoring methods between January 1, 2011 and
December 31, 2011 for sources specified in paragraph (f)(3) of this
section.
(iii) No request or approval by the Administrator is necessary to
use best available monitoring methods between January 1, 2011 and
December 31, 2011 for sources specified in paragraph (f)(4) of this
section.
(iv) No request or approval by the Administrator is necessary to
use best available monitoring methods between January 1, 2011 and
December 31, 2011 for sources not listed in paragraph (f)(2), (f)(3),
and (f)(4) of this section.
(6) [Reserved]
(7) [Reserved]
(8) Requests for extension of the use of best available monitoring
methods beyond 2011 for sources listed in paragraphs (f)(2), (f)(3),
(f)(4), and (f)(5)(iv) of this section. The owner or operator must
first provide the Administrator an initial electronic notification of
intent to submit an extension request for use of best available
monitoring methods beyond December 31, 2011 for unique or unusual
circumstances which include data collection methods that do not meet
safety regulations, a requirement being technically infeasible, or
counter to other local, State, or Federal regulations. The owner or
operator must follow-up this initial notification with an extension
request containing the information specified in 98.234(f)(8)(ii).
Facilities that submit both a timely notice of intent and extension
request consistent with 98.234(f)(8)(ii) can automatically use BAMM
through June 30, 2012, for the specific parameters identified in their
notification of intent and BAMM request regardless of whether the BAMM
request is ultimately approved. Facilities that submit a notice of
intent but do not follow up with a BAMM request by March 30, 2012
cannot automatically use BAMM after December 31, 2011.
(i) Timing of Request. The initial electronic notice of intent to
request BAMM must be submitted by December 31, 2011. The completed
extension request must be submitted to the Administrator no later than
March 30, 2012.
(ii) Content of request. Requests must contain the following
information:
[[Page 37307]]
(A) A list of specific source categories and parameters for which
the owner or operator is seeking use of best available monitoring
methods.
(B) A description of the unique or unusual circumstances, such as
data collection methods that do not meet safety regulations, technical
infeasibility, or specific laws or regulations that conflict with each
specific source for which an owner or operator is requesting use of
best available monitoring methodologies.
(C) A detailed explanation and supporting documentation of how and
when the owner or operator will receive the services or equipment to
comply with all of this subpart W reporting requirements.
(iii) Approval criteria. To obtain approval to use BAMM after June
30, 2012, the owner or operator must demonstrate to the Administrator's
satisfaction that the owner or operator faces unique or unusual
circumstances such as data collection methods that do not meet safety
regulations, technical infeasibility, or legal issues rendering them
unable to meet the requirements of this subpart.
[FR Doc. 2011-16010 Filed 6-24-11; 8:45 am]
BILLING CODE 6560-50-P