[Federal Register Volume 76, Number 123 (Monday, June 27, 2011)]
[Proposed Rules]
[Pages 37300-37307]
From the Federal Register Online via the Government Printing 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: GHG_Reporting_Rule_Oil_And_Natural_Gas@epa.gov. 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: 
GHGReportingRule@epa.gov.
    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: 
GHGReportingRule@epa.gov.

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.
------------------------------------------------------------------------

    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