Document ID: EPA-HQ-OAR-2009-0923-3618
Agency: epa
Document Type: Rule
Title: Mandatory Reporting of Greenhouse Gases: Petroleum and Natural Gas Systems; Final Rule; Grant of Reconsideration
Posted Date: 2011-04-25T04:00Z

[Federal Register Volume 76, Number 79 (Monday, April 25, 2011)]
[Rules and Regulations]
[Pages 22825-22827]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10026]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 98

[EPA-HQ-OAR-2009-0923; FRL-9299-1]

Mandatory Reporting of Greenhouse Gases: Petroleum and Natural 
Gas Systems

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; Grant of reconsideration.

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SUMMARY: On November 30, 2010 EPA promulgated Subpart W: Petroleum and 
Natural Gas Systems of the Greenhouse Gas Reporting Rule. As part of 
the provisions outlined in this rule, the EPA stated that the Agency 
would allow certain owners or operators to use best available 
monitoring methods (BAMM) in lieu of specified parameters outlined for 
calculating greenhouse gas emissions for the petroleum and natural gas 
systems source category of the greenhouse gas reporting rule. EPA is 
giving notice that the Agency has initiated the reconsideration process 
in response to requests for reconsideration of certain provisions in 
the regulations. First, EPA has been asked to reconsider the 
requirement to submit requests to use best available monitoring methods 
during the 2011 calendar year by April 30, 2011 and pursuant to its 
authority under CAA section 307(d)(7)(B) consequently is extending the 
deadline contained in those provisions until July 31, 2011. Second, EPA 
has also been asked to reconsider the time period during which owners 
and operators of certain specific sources could automatically use BAMM 
without having to request approval by the Administrator. As a result of 
this second request, pursuant to its authority under CAA section 
307(d)(7)(B) EPA is also extending the date by which owners and 
operators of certain specific sources would not be required to request 
approval by the Administrator for the use of BAMM from June 30, 2011 
until September 30, 2011.

DATES: This rule is effective on April 30, 2011.

FOR FURTHER INFORMATION CONTACT: Ms. Carole Cook, Climate Change 
Division, Office of Atmospheric Programs (MC-6207J), Environmental 
Protection Agency, 1200 Pennsylvania Avenue, NW, Washington, DC 20460; 
telephone number (202) 343-9236; fax (202) 343-2342; e-mail address: 
GHGReportingRule@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Background Information

    The EPA published Subpart W: Petroleum and Natural Gas Systems of 
the Greenhouse Gas Reporting Rule on November 30, 2011, 40 CFR Part 98, 
Subpart W (75 FR 74458)(Subpart W). Included in the final rule were new 
provisions allowing owners or operators the option of using best 
available monitoring methods for specified parameters in 40 CFR 98.233. 
Subpart W provides that owners or operators wishing to use BAMM during 
2011 for emissions sources listed in 40 CFR 98.234(f)(4)or 
98.234(f)(5)(iv) must submit BAMM applications by April 30, 2011. In 
addition, subpart W provides that owners or operators with emissions 
sources listed in 40 CFR 98.234(f)(2) or 40 CFR 98.234(f)(3) have the 
option of using BAMM from January 1, 2011 to June 30, 2011 without 
submitting a request to the Administrator for approval to use BAMM; 
however to extend use of BAMM beyond June 30, 2011, those owners or 
operators must submit a request to the Administrator by April 30, 2011.
    Following the publication of Subpart W in the Federal Register, 
several industry groups sought reconsideration of several provisions in 
the final rule, including the provisions requiring submittal of BAMM 
requests for use or extension of BAMM in calendar year 2011 by April 
30, 2011, and the time period for which owners or operators of sources 
in 40 CFR 98.234(f)(2) or 40 CFR 98.234(f)(3) would not be required to 
submit a BAMM request to the Administrator for approval, i.e., January 
1 through June 30, 2011.
    By letter dated January 31, 2011, the American Petroleum Institute 
(API) stated that ``[a]ggressive deadlines for BAMM are problematic for 
reporters who are attempting to monitor GHG emissions for the first 
time. In particular, the April 30, 2011 deadline for BAMM requests does 
not provide reporters sufficient time to identify the sources for which 
BAMM should be requested and gather the data that EPA requires be 
submitted with a BAMM request.'' API, along with the Gas Processors 
Association (GPA), Interstate Natural Gas Association of America 
(INGAA), Chesapeake Energy Corporation (CEC)/American Exploration & 
Production Council (AXPC), stated that they would not be able to 
complete an initial assessment of their facilities to determine whether 
they would need BAMM by the deadline of April 30, 2011. Further, a 
subset of these petitioners further noted that the time period for 
which owners and operators were granted the optional use of BAMM 
without being required to submit a request to the Administrator for 
approval was insufficient for them to make the necessary assessment of 
their facilities to determine compliance with the rule.
    EPA believes that pursuant to CAA section 307(d)(7)(B) it is 
appropriate to extend the deadlines in 40 CFR 98.234(f)(5)(iii)(A), 
98.234(f)(5)(iv)(A), 98.234(f)(6)(i), and 98.234(f)(7)(i) by three 
months, to allow owners and operators additional time to assess which 
of their facilities would need to take advantage of the BAMM provisions 
of Subpart W for calendar year 2011. EPA also believes that pursuant to 
CAA section 307(d)(7)(B) it is appropriate to extend the deadlines, by 
three months, by which owners and operators of emission sources listed 
in 40 CFR 98.234(f)(2) or 40 CFR 98.234(f)(3), would have the option to 
use BAMM without submitting a request for approval from the 
Administrator to allow additional time to asses applicability of the 
rule provisions to their facilities. EPA is taking no action at this 
time on other issues raised by petitioners in their respective 
Petitions for Reconsideration and reserves the right to further 
consider those issues at a later time.
    Pursuant to Clean Air Act (CAA) section 307(d)(7)(B), EPA is 
extending the deadlines in 40 CFR 98.234(f)(5)(iii)(A), 
98.234(f)(5)(iv)(A), 98.234(f)(6)(i), and 98.234(f)(7)(i) for three 
months, i.e., until July 31, 2011.
    Further, pursuant to CAA section 307(d)(7)(B) EPA is also extending 
the deadlines contained in 40 CFR 98.234(f)(2), 40 CFR 98.234(f)(3), 40 
CFR 98.234(f)(5)(i), 40 CFR 98.234(f)(5)(ii), 40 CFR 98.234(f)(6), 40 
CFR 98.234(f)(6)(ii)(D), 40 CFR 98.234(f)(6)(iii), 40 CFR 98.234(f)(7), 
and 40 CFR 98.234(f)(7)(iii) for three months, i.e., until September 
30, 2011.
    Section 553 of the Administrative Procedure Act, 5 U.S.C. 
553(b)(B), provides that, when an agency for good

[[Page 22826]]

cause finds that notice and public procedure are impracticable, 
unnecessary or contrary to the public interest, the agency may issue a 
rule without providing notice and an opportunity for public comment. 
EPA has determined that there is good cause for making today's rule 
final without prior proposal and opportunity for comment. We are acting 
pursuant to CAA section 307(d)(7)(B) to extend these deadlines in part 
because both the affected universe of facilities subject to the rule 
and the substantive requirements associated with the BAMM provisions in 
the rule could change as a result of this reconsideration process. In 
addition, we are extending these provisions to allow owners and 
operators of affected facilities additional time to appropriately 
assess their facilities to determine if it will be necessary for them 
to apply for BAMM during calendar year 2011. Because we cannot predict 
the resulting outcome of the reconsideration process with respect to 
BAMM, we think a limited extension during the duration of the 
administrative reconsideration process is appropriate so that owners 
and operators of affected facilities would not incur additional costs 
associated with applying for BAMM in advance of our final decision on 
this issue. It would be impracticable to go through notice and comment 
rulemaking to extend an imminent deadline and it is also unnecessary 
because section 307(d)(7)(B) does not require notice and comment for a 
three-month extension pending reconsideration. Thus, notice and public 
procedure are impracticable and unnecessary. EPA finds that this 
constitutes good cause under 5 U.S.C. 553(b)(B).

II. Statutory and Executive Order Reviews

A. General Requirements

    This action is not a ''significant regulatory action,'' under the 
terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and, 
therefore, not subject to review under Executive Orders 12866 and 13563 
(76 FR 3821, January 21, 2011). For this reason, this action is also 
not subject to Executive Order 13211, ``Actions Concerning Regulations 
That Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 
28355, May 22, 2001). In addition, because the agency has made a ``good 
cause'' finding that this action is not subject to notice-and-comment 
requirements under the Administrative Procedure Act or any other 
statute (See Section I. Background Information of this preamble) it is 
not subject to sections 202 and 205 of the Unfunded Mandates Reform Act 
of 1995 (UMRA) (Public Law 104-4). In addition, this action does not 
impose any enforceable duty or contain any unfunded mandates as 
described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4), 
or require prior consultation with State officials, as specified by 
Executive Order 12875 (58 FR 58093, October 28, 1993), or involve 
special consideration of environmental justice related issues, as 
required by Executive Order 12898 (59 FR 7629, February 16, 1994). 
Further, because the agency has made a ``good cause'' (See Section I. 
Background Information of this preamble) finding that this action is 
not subject to notice-and-comment requirements under the Administrative 
Procedure Act or any other statute, it is not subject to the regulatory 
flexibility provisions of the Regulatory Flexibility Act (5 U.S.C. 601, 
et seq.). This action also does not have Tribal implications because it 
will not have a substantial direct effect on one or more Indian Tribes, 
on the relationship between the Federal government and Indian Tribes, 
or on the distribution of power and responsibilities between the 
Federal government and Indian Tribes, as specified by Executive Order 
13175 (65 FR 67249, November 9, 2000). This action also does not have 
Federalism implications because it does 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 (64 FR 43255, August 10, 1999). This action 
also is not subject to Executive Order 13045, ``Protection of Children 
from Environmental Health Risks and Safety Risks'' (62 FR 19885, April 
23, 1997). The requirements of section 12(d) of the National Technology 
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. 
This action does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et 
seq.). EPA's compliance with these statutes and Executive Orders for 
the underlying rule is discussed in the November 30, 2010 Federal 
Register document.

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. Section 808 allows the issuing agency to make a rule 
effective sooner than otherwise provided by the CRA if the agency makes 
a good cause finding that notice and public procedure is impracticable, 
unnecessary or contrary to the public interest. This determination must 
be supported by a brief statement. 5 U.S.C. 808(2). As stated 
previously, EPA has made such a good cause finding, including the 
reasons therefore, and established an effective date of April 30, 2011. 
EPA will submit a report containing this rule and other required 
information to the U.S. Senate, the U.S. House of Representatives, and 
the Comptroller General of the United States prior to publication of 
the rule in the Federal Register. This action is not a ``major rule'' 
as defined by 5 U.S.C. 804(2).

III. How Can I Get Copies of This Document and Other Related 
Information?

    This Federal Register notice is available in the docket for the 
final rule titled ``Mandatory Reporting of Greenhouse Gases: Petroleum 
and Natural Gas Systems,'' published on November 30, 2010 at 98 FR 
74458, under Docket ID No. EPA-HQ-OAR-2009-0923.
    All documents in the docket are listed on the http://www.regulations.gov Web site. Although listed in the index, some 
information may not be publicly available, i.e., Confidential Business 
Information or other information whose disclosure is restricted by 
statute. Certain other material, such as copyrighted material, is not 
placed on the Internet and will be publicly available only in hard copy 
form. Publicly available docket materials are available either 
electronically through http://www.regulations.gov or in hard copy at 
the EPA's Docket Center, Docket ID No. EPA-HQ-OAR-2009-0923, Public 
Reading Room, EPA West Building, Room 3334, 1301 Constitution Avenue, 
Northwest, Washington, DC 20004. 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 Center is (202) 566-1741.
    In addition to being available in the docket, an electronic copy of 
this Federal Register notice is also available on the World Wide Web at 
http://www.epa.gov/climatechange/emissions/ghgrulemaking.html.

[[Page 22827]]

List of Subjects in 40 CFR Part 98

    Environmental Protection, Administrative practice and procedures, 
Air pollution control, Monitoring, Reporting and recordkeeping.

    Dated: April 20, 2011.
Lisa P. Jackson,
Administrator.

    For the reasons discussed in the preamble, the EPA amends 40 CFR 
parts 98 as follows:

PART 98--[AMENDED]

0
1. The authority citation for part 98 continues to read as follows:

    Authority:  42 U.S.C. 7401-7671q.

0
2. Section 98.234 is amended as follows:
0
a. By revising paragraph (f)(2) introductory text.
0
b. By revising paragraph (f)(3) introductory text.
0
c. By revising paragraphs (f)(5)(i), (f)(5)(ii), (f)(5)(iii)(A), 
(f)(5)(iv)(A).
0
d. By revising paragraphs (f)(6) introductory text, (f)(6)(i), 
(f)(6)(ii)(D), (f)(6)(iii).
0
e. By revising paragraphs (f)(7) introductory text, (f)(7)(i), and 
(f)(7)(iii)
    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 September 30, 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, and only where required measurements 
cannot be duplicated due to technical limitations after September 30, 
2011. These well-related sources are:
* * * * *
    (3) Best available monitoring methods for specified activity data. 
During January 1, 2011 through September 30, 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, specifically for events that 
generate data that can be collected only between January 1, 2011 and 
September 30, 2011 and cannot be duplicated after September 30, 2011. 
These sources are:
* * * * *
    (5) * * *
    (i) No request or approval by the Administrator is necessary to use 
best available monitoring methods between January 1, 2011 and September 
30, 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 
September 30, 2011 for sources specified in paragraph (f)(3) of this 
section.
    (iii) * * *
    (A) Timing of Request. The request to use best available monitoring 
methods for paragraph (f)(4) of this section must be submitted to EPA 
no later than July 31, 2011.
* * * * *
    (iv) * * *
    (A) Timing of Request. The request to use best available monitoring 
methods for sources not listed in paragraph (f)(2), (f)(3), and (f)(4) 
of this section must be submitted to EPA no later than July 31, 2011.
* * * * *
    (6) Requests for extension of the use of best available monitoring 
methods through December 31, 2011 for sources in paragraph (f)(2) of 
this section. The owner or operator may submit a request to the 
Administrator to use one or more best available monitoring methods 
described in paragraph (f)(2) of this section beyond September 30, 
2011.
    (i) Timing of Request. The extension request must be submitted to 
EPA no later than July 31, 2011.
* * * * *
    (ii) * * *
    (D) If the reason for the extension is that the owner or operator 
cannot collect data from a service provider or relevant organization in 
order for the owner or operator to meet requirements of this subpart 
for the 2011 calendar year, the owner or operator must demonstrate a 
good faith effort that it is not possible to obtain the necessary 
information, service or hardware which may include providing 
correspondence from specific service providers or other relevant 
entities to the owner or operator, whereby the service provider states 
that it is unable to provide the necessary data or services requested 
by the owner or operator that would enable the owner or operator to 
comply with subpart W reporting requirements by September 30, 2011.
* * * * *
    (iii) Approval criteria. To obtain approval, the owner or operator 
must demonstrate to the Administrator's satisfaction that it is not 
reasonably feasible to obtain the data necessary to meet the 
requirements of this subpart for the sources specified in paragraph 
(f)(2) of this section by September 30, 2011.
    (7) Requests for extension of the use of best available monitoring 
methods through December 31, 2011 for sources in paragraph (f)(3) of 
this section. The owner or operator may submit a request to the 
Administrator to use one or more best available monitoring methods 
described in paragraph (f)(3) of this section beyond September 30, 
2011.
    (i) Timing of request. The extension request must be submitted to 
EPA no later than July 31, 2011.
* * * * *
    (iii) Approval criteria. To obtain approval, the owner or operator 
must demonstrate to the Administrator's satisfaction that is not 
reasonably feasible to implement the data collection for the sources 
described in paragraph (f)(3) of this section for the methods required 
in this subpart by September 30, 2011.
* * * * *
[FR Doc. 2011-10026 Filed 4-22-11; 8:45 am]
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