[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)]
[Proposed Rules]
[Pages 16331-16332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06658]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 60
[FRL-9961-09-OAR]
Review of the 2016 Oil and Gas New Source Performance Standards
for New, Reconstructed, and Modified Sources
AGENCY: Environmental Protection Agency (EPA).
ACTION: Announcement of review.
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SUMMARY: The U.S. Environmental Protection Agency (EPA) announces it is
reviewing the 2016 Oil and Gas New Source Performance Standards and, if
appropriate, will initiate reconsideration proceedings to suspend,
revise or rescind this rule.
DATES: April 4, 2017.
FOR FURTHER INFORMATION CONTACT: Mr. Peter Tsirigotis, Sector Policies
and Programs Division (D205-01), U.S. Environmental Protection Agency,
Research Triangle Park, NC 27711; telephone number: (888) 627-7764;
email address: [email protected].
SUPPLEMENTARY INFORMATION: The EPA announces it is reviewing the 2016
Oil and Gas New Source Performance Standards (Rule) 81 FR 35,824 (June
3, 2016), and, if appropriate, will initiate proceedings to suspend,
revise, or rescind it.
I. Background
Section 111 of the Clean Air Act authorizes the EPA to issue
nationally applicable New Source Performance Standards (NSPS) limiting
air pollution from ``new sources'' in source categories that cause or
contribute to air pollution that may reasonably be anticipated to
endanger public health or welfare. 42 U.S.C. 7411(b)(1). Under this
authority,
[[Page 16332]]
the EPA had regulated sulfur dioxide emissions from natural gas
processing and volatile organic chemicals (VOCs) from a number of
equipment and operations at oil and gas facilities. 40 CFR part 60
subpart OOOO. In 2016, the EPA promulgated this Rule, which expanded
the existing NSPS by requiring methane reductions from previously
regulated sources and limiting methane and VOCs from other types of new
oil and gas facilities never before regulated under Section 111.
Several state and industry petitioners challenged this Rule in the
U.S. Court of Appeals for the District of Columbia alleging, inter
alia, that EPA acted arbitrarily and capriciously, and in excess of
statutory authority. See, e.g., West Virginia v. EPA, 16-1264, State
Petitioners' Nonbinding Statement of the Issues to be Raised. These
cases have been consolidated and are pending before the court. Many of
these parties also submitted petitions for reconsideration of this Rule
to EPA. The Agency has not yet acted on these petitions.
II. Initiation of Review of This Rule
On March 28, 2017, President Trump issued an Executive Order
establishing a national policy in favor of energy independence,
economic growth, and the rule of law. The purpose of that Executive
Order is to facilitate the development of U.S. energy resources--
including oil and gas--and to reduce unnecessary regulatory burdens
associated with the development of those resources. The President has
directed agencies to review existing regulations that potentially
burden the development of domestic energy resources, and appropriately
suspend, revise, or rescind regulations that unduly burden the
development of U.S. energy resources beyond what is necessary to
protect the public interest or otherwise comply with the law. The
Executive Order also directs agencies to take appropriate actions, to
the extent permitted by law, to promote clean air and clean water while
also respecting the proper roles of Congress and the States. This
Executive Order specifically directs EPA to review and, if appropriate,
initiate proceedings to suspend, revise or rescind this Rule.
Pursuant to the Executive Order, EPA is initiating its review of
this Rule and providing advanced notice of forthcoming rulemaking
proceedings consistent with the President's policies. If EPA's review
concludes that suspension, revision or rescission of this Rule may be
appropriate, EPA's review will be followed by a rulemaking process that
will be transparent, follow proper administrative procedures, include
appropriate engagement with the public, employ sound science, and be
firmly grounded in the law.
EPA's ability to revisit existing regulations is well-grounded in
the law. Specifically, the agency has inherent authority to reconsider
past decisions and to rescind or revise a decision to the extent
permitted by law when supported by a reasoned explanation. FCC v. Fox
Television Stations, Inc., 556 U.S. 502, 515 (2009) (``Fox''); Motor
Vehicle Manufacturers Ass'n of the United States, Inc., et al., v.
State Farm Mutual Automobile Insurance Co., et al., 463 U.S. 29, 42
(1983) (``State Farm''). Moreover, the Clean Air Act itself authorizes
EPA to reconsider its rulemakings. 42 U.S.C. 7607(b)(1), (d)(7)(B). The
Clean Air Act complements the EPA's inherent authority to reconsider
prior rulemakings by providing the agency with broad authority to
prescribe regulations as necessary. 42 U.S.C. 7601(a). The authority to
reconsider prior decisions exists in part because EPA's interpretations
of statutes it administers ``are not carved in stone'' but must be
evaluated ``on a continuing basis,'' Chevron U.S.A. Inc. v. NRDC, Inc.,
467 U.S. 837, 857-58 (1984). This is true when--as is the case here--
review is undertaken ``in response to . . . a change in
administrations.'' National Cable & Telecommunications Ass'n v. Brand X
Internet Services, 545 U.S. 967, 981 (2005). Importantly, such a
revised decision need not be based upon a change of facts or
circumstances. Rather, a revised rulemaking based ``on a reevaluation
of which policy would be better in light of the facts'' is ``well
within an agency's discretion,'' and ``[a] change in administration
brought about by the people casting their votes is a perfectly
reasonable basis for an executive agency's reappraisal of the costs and
benefits of its programs and regulations.'' National Ass'n of Home
Builders v. EPA, 682 F.3d 1032, 1038 & 1043 (D.C. Cir. 2012) (citing
Fox, 556 U.S. at 514-15; quoting State Farm, 463 U.S. at 59 (Rehnquist,
J., concurring in part and dissenting in part)).
In conducting this review, EPA will follow each of the principles
and policies set forth in the Executive Order, consistent with the
EPA's statutory authority. The Agency will reevaluate whether this Rule
or alternative approaches are appropriately grounded in EPA's statutory
authority and consistent with the rule of law. The EPA will assess
whether this Rule or alternative approaches would appropriately promote
cooperative federalism and respect the authority and powers that are
reserved to the States. EPA will also examine whether this Rule or
alternative approaches effect the Administration's dual goals of
protecting public health and welfare while also supporting economic
growth and job creation. EPA will review whether this Rule or
alternative approaches appropriately maintain the diversity of reliable
energy resources and encourage the production of domestic energy
sources to achieve energy independence and security.
Additionally, EPA will assess this Rule and alternative approaches
to determine whether they will provide benefits that substantially
exceed their costs. In taking any actions subsequent to this review,
EPA will use its appropriated funds and agency resources wisely by
firmly grounding in the statute its actions to protect public health
and welfare.
Dated: March 28, 2017.
E. Scott Pruitt,
Administrator.
[FR Doc. 2017-06658 Filed 4-3-17; 8:45 am]
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