[Federal Register Volume 82, Number 106 (Monday, June 5, 2017)]
[Rules and Regulations]
[Pages 25730-25734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11457]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 60
[EPA-HQ-OAR-2010-0505; FRL-9963-40-OAR]
RIN 2060-AT63
Oil and Natural Gas Sector: Emission Standards for New,
Reconstructed, and Modified Sources; Grant of Reconsideration and
Partial Stay
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of reconsideration and partial stay.
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SUMMARY: By a letter dated April 18, 2017, the Administrator announced
the convening of a proceeding for reconsideration of the fugitive
emission requirements at well sites and compressor station sites in the
final rule, ``Oil and Natural Gas Sector: Emission Standards for New,
Reconstructed, and Modified Sources,'' published in the Federal
Register on June 3, 2016. In this action, the Environmental Protection
Agency (EPA) is granting reconsideration of additional
[[Page 25731]]
requirements in that rule, specifically the well site pneumatic pumps
standards and the requirements for certification by professional
engineer. In addition, the EPA is staying for three months these rule
requirements pending reconsideration.
DATES: This final rule is effective June 2, 2017. The action granting
reconsideration is effective June 2, 2017. The stay of Sec. Sec.
60.5393a(b) through (c), 60.5397a, 60.5410a(e)(2) through (5) and (j),
60.5411a(d), 60.5415a(h), 60.5420a(b)(7), (8), and (12), and (c)(15)
through (17) is effective from June 2, 2017, until August 31, 2017.
FOR FURTHER INFORMATION CONTACT: Mr. Peter Tsirigotis, Sector Policies
and Programs Division (D205-01), Office of Air Quality Planning and
Standards, Environmental Protection Agency, Research Triangle Park,
North Carolina 27711; telephone number: (888) 627-7764; email address:
[email protected].
Electronic copies of this document are available on EPA's Web site
at https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry. Copies of this document are also available at https://www.regulations.gov, at Docket ID No. EPA-HQ-OAR-2010-0505.
SUPPLEMENTARY INFORMATION:
I. Background
On June 3, 2016, the EPA published a final rule titled ``Oil and
Natural Gas Sector: Emission Standards for New, Reconstructed, and
Modified Sources; Final Rule,'' 81 FR 35824 (June 3, 2016) (``2016
Rule''). The 2016 Rule establishes new source performance standards
(NSPS) for greenhouse gas emissions and volatile organic compound (VOC)
emissions from the oil and natural gas sector. This rule addresses,
among other things, fugitive emissions at well sites and compressor
station sites (``fugitive emissions requirements''), and emissions from
pneumatic pumps. In addition, for a number of affected facilities
(i.e., centrifugal compressors, reciprocating compressors, pneumatic
pumps, and storage vessels), the rule requires certification by a
professional engineer of the closed vent system design and capacity, as
well as any technical infeasibility determination relative to
controlling pneumatic pumps at well sites. For further information on
the 2016 Rule, see 81 FR 35824 (June 3, 2016).
On August 2, 2016, a number of interested parties submitted
administrative petitions to the EPA seeking reconsideration of various
aspects of the 2016 Rule pursuant to section 307(d)(7)(B) of the Clean
Air Act (CAA) (42 U.S.C. 7607(d)(7)(B)).\1\ Those petitions include
numerous objections relative to the fugitive emissions requirements,
well site pneumatic pump standards, and the requirements for
certification by professional engineer. Under section 307(d)(7)(B) of
the CAA, the Administrator shall convene a reconsideration proceeding
if, in the Administrator's judgment, the petitioner raises an objection
to a rule that was impracticable to raise during the comment period or
if the grounds for the objection arose after the comment period but
within the period for judicial review. In either case, the
Administrator must also conclude that the objection is of central
relevance to the outcome of the rule. The Administrator may stay the
effectiveness of the rule for up to three months during such
reconsideration.
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\1\ Copies of these petitions are included in the docket for the
2016 Rule, Docket ID No. EPA-HQ-OAR-2010-0505.
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In a letter dated April 18, 2017, based on the criteria in CAA
section 307(d)(7)(B), the Administrator convened a proceeding for
reconsideration of the following objections relative to the fugitive
emissions requirements: (1) The applicability of the fugitive emissions
requirements to low production well sites, and (2) the process and
criteria for requesting and receiving approval for the use of an
alternative means of emission limitations (AMEL) for purposes of
compliance with the fugitive emissions requirements in the 2016 Rule.
The EPA had proposed to exempt low production well sites from the
fugitive emissions requirements, believing the lower production
associated with these wells would generally result in lower fugitive
emissions. 80 FR 56639. However, the final rule differs significantly
from what was proposed in that it requires these well sites to comply
with the fugitive emissions requirements based on information and
rationale not presented for public comment during the proposal stage.
See 81 FR 35856 (``. . . well site fugitive emissions are not
correlated with levels of production, but rather based on the number of
pieces of equipment and components''). It was therefore impracticable
to object to this new rationale during the public comment period.
The AMEL process and criteria were included in the 2016 Rule
without having been proposed for notice and comment. The EPA added the
AMEL provisions in the final rule with the intent of, among other
goals, reducing compliance burdens for those sources that may already
be reducing fugitive emissions in accordance with a state requirement
or other program that is achieving reductions equivalent to those
required by the 2016 Rule. These AMEL provisions were also added to
encourage the development and use of innovative technology, in
particular for fugitive emissions monitoring. 81 FR 35861. However,
issues and questions raised in the administrative petitions for
reconsideration (e.g., who can apply for and who can use an approved
AMEL) suggest that sources may have difficulty understanding and
applying for AMEL.
Both issues described above, which relate directly to whether
certain sources must implement the fugitive emissions requirements, are
of central relevance to the outcome of the 2016 Rule for the reasons
stated below. Fugitive emissions are a significant source of emissions
for many industries, and the EPA has promulgated numerous NSPS
specifically for reducing fugitive emissions, including 40 CFR part 60,
subpart KKK (addressing VOC leaks from on-shore natural gas processing
plants), as standalone rules. The fact that the EPA chose here to
promulgate the well site and compressor station fugitive emissions
requirements along with other standards in the 2016 Rule does not make
these requirements any less important than the other fugitive emissions
standards; rather, because of their importance, they are a significant
component of the 2016 Rule. The issues described above are important as
they determine the universe of affected facilities that must implement
the fugitive emission requirements; as such, they are of central
relevance to the outcome of the 2016 Rule. As stated in the April 18,
2017, letter, the EPA has convened an administrative proceeding for the
reconsideration of the fugitive emissions requirements in response to
these two objections.
II. Grant of Reconsideration of Additional Issues
Since issuing the April 18, 2017, letter, the EPA has identified
objections to two other aspects of the 2016 Rule that meet the criteria
for reconsideration under section 307(d)(7)(B) of the CAA. These
objections relate to (1) the requirements for certification of closed
vent system by professional engineer, and (2) the well site pneumatic
pump standards.
A. Requirements for Certification of Closed Vent System by Professional
Engineer
For closed vent systems used to comply with the emission standards
for
[[Page 25732]]
various equipment used in the oil and natural gas sector, the 2016 Rule
requires certification by a professional engineer (PE) that a closed
vent system design and capacity assessment was conducted under his or
her direction or supervision and that the assessment and resulting
report were conducted pursuant to the requirements of the 2016 Rule
(``PE certification requirement''). Several petitioners for
administrative reconsideration assert that the PE certification
requirement was not proposed for notice and comment.\2\ One petitioner
notes that no costs associated with obtaining such certification were
considered or provided for review during the proposal process.\3\ The
petitioner claims that there is no quantifiable benefit to the
environment from this additional compliance demonstration requirement,
while there is significant expense involved.\4\
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\2\ See Docket ID No. EPA-HQ-OAR-2010-0505-7682 and Docket ID
No. EPA-HQ-OAR-2010-0505-7686.
\3\ See Docket ID No. EPA-HQ-OAR-2010-0505-7682.
\4\ Id.
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Section 111 of the CAA requires that the EPA consider, among other
factors, the cost associated with establishing a new source performance
standard. See 111(a)(1) of the CAA. The statute is thus clear that cost
is an important consideration in determining whether to impose a
requirement. In finalizing the 2016 Rule, the EPA made clear that it
viewed the PE certification requirement to be an important aspect of a
number of performance standards in the that rule. The EPA acknowledges
that it had not analyzed the costs associated with the PE certification
requirement; therefore, it was impracticable for petitioners to provide
meaningful comments during the comment period on whether the improved
environmental performance this requirement may achieve justifies the
associated costs and other compliance burden. This issue is of central
relevance to the outcome of the 2016 Rule because the rule requires
this PE certification for demonstrating compliance for a number of
different standards, including the standards for centrifugal
compressors, reciprocating compressors, pneumatic pumps, and storage
vessels. For the reasons stated above, the EPA is granting
reconsideration of the PE certification requirement.
B. Technical Infeasibility Determination (Well Site Pneumatic Pump
Standards)
In the 2016 Rule, the EPA exempts a pneumatic pump at a well site
from the emission reduction requirement if it is technically infeasible
to route the pneumatic pump to a control device or a process. 81 FR
35850. However, the rule requires that such technical infeasibility be
determined and certified by a ``qualified professional engineer'' as
that term is defined in the final rule. During the proposal stage, the
EPA did not propose or otherwise suggest exempting well site pneumatic
pumps from emission control based on such certification. In fact, the
technical infeasibility exemption itself was added during the final
rule stage. Further, this certification requirement differs
significantly from how the EPA has previously addressed another
``technical infeasibility'' issue encountered by this industry.
Specifically, the oil and gas NSPS subpart OOOO, which was promulgated
in 2012, exempts hydraulically fractured gas well completions from
performing a reduced emission completion (REC) if it is not technically
feasible to do so, and requires documentation and recordkeeping of the
technical infeasibility. See 40 CFR 60.5375. The 2016 Rule extends the
REC requirement and associated technical infeasibility exemption to
hydraulically fractured oil well completions and requires more detailed
documentation of technical infeasibility. Neither subpart OOOO nor the
2016 Rule require that REC technical infeasibility be certified by a
qualified professional engineer, nor was such requirement proposed or
otherwise raised during the public comment period for these rules. In
light of the fact that the EPA had not proposed such certification
requirement for pneumatic pumps, and how this requirement differs from
the EPA's previous treatment of a similar issue as described above, one
could not have anticipated that the 2016 Rule would finalize such
certification requirement for pneumatic pumps in the 2016 Rule.
Further, believing that ``circumstances that could otherwise make
control of a pneumatic pump technically infeasible at an existing
location can be addressed in the site's design and construction,'' the
EPA does not allow such exemption for new developments in the 2016
Rule. 40 CFR 60.5393a(b)(5); see also, 81 FR 35849. The 2016 Rule
refers to such new developments as ``greenfield,'' which is defined as
an ``entirely new construction.'' 40 CFR 60.5430a.
The provisions described above were included in the 2016 Rule
without having been proposed for notice and comment, and numerous
related objections and issues were raised in the reconsideration
petitions. With respect to the requirement that technical infeasibility
be certified by a professional engineer, petitioners raised the same
issues as those for closed vent system certification discussed in
section II.A. In addition, several petitions find the definition of
greenfield unclear. For example, one petitioner questions whether the
term ``new'' as used in this definition is synonymous to how that term
is defined in section 111 of the CAA. Additional questions include
whether a greenfield remains forever a greenfield, considering that
site designs may change by the time that a new control or pump is
installed (which may be years later). Petitioners also object to EPA's
assumption that the technical infeasibility encountered at existing
well sites can be addressed when ``new'' sites are developed. The
issues described above dictate whether one must achieve the emission
reduction required under the well site pneumatic pump standards, which
were a major addition to the existing oil and gas NSPS regulations
through promulgation of the 2016 Rule. Therefore, these issues are of
central relevance to the outcome of the 2016 Rule.
As announced in the April 18, 2017, letter, and as further
announced in this document, the Administrator has convened an
administrative reconsideration proceeding. As part of the proceeding,
the EPA will prepare a notice of proposed rulemaking that will provide
the petitioners and the public an opportunity to comment on the rule
requirements and associated issues identified above, as well as those
for which reconsideration was granted in the April 18, 2017, letter.
During the reconsideration proceeding, the EPA intends to look broadly
at the entire 2016 Rule. For a copy of this letter and the
administrative reconsideration petitions, please see Docket ID No. EPA-
HQ-OAR-2010-0505.
III. Stay of Certain Provisions
By this document, in addition to the grant of reconsideration
discussed in section II above, the EPA is staying the effectiveness of
certain aspects of the 2016 Rule for three months pursuant to section
307(d)(7)(B) of the CAA pending reconsideration of the requirements and
associated issues described above and in the April 18, 2017, letter.
Specifically, the EPA is staying the effectiveness of the fugitive
emissions requirements, the standards for pneumatic pumps at well
sites, and the certification by a professional engineer requirements.
As explained above, the low production well sites and AMEL issues under
reconsideration determine the universe of sources that must implement
the fugitive emissions requirements. The
[[Page 25733]]
2016 Rule requires compliance with the closed vent system requirements,
including certification by a professional engineer, in order to meet
the emissions standards for a wide range of equipment (centrifugal
compressors, reciprocating compressors, pneumatic pumps, and storage
vessels); therefore, the issues relative to closed vent certification
affect the ability of these equipment to comply with the 2016 Rule. The
technical infeasibility exemption and the associated certification by
professional engineer requirement, as well as the ``greenfield'' issues
described above, dictate whether a source must comply with the emission
reduction requirement for well site pneumatic pumps. In light of the
uncertainties these issues generate regarding the application and/or
implementation of the fugitive emissions requirements, the well site
pneumatic pumps standards and the certification by professional
engineers requirements, the EPA believes it is reasonable to stay the
effectiveness of these requirements in the 2016 Rule, pending
reconsideration. Therefore, pursuant to section 307(d)(7)(B) of the
CAA, the EPA hereby stays the effectiveness of these requirements for
three months.
This stay will remain in place until August 31, 2017.
List of Subjects in 40 CFR Part 60
Environmental protection, Administrative practice and procedure,
Air pollution control, Reporting and recordkeeping.
Dated: May 26, 2017.
E. Scott Pruitt,
Administrator.
0
For the reasons cited in the preamble, title 40, chapter I of the Code
of Federal Regulations is amended as follows:
PART 60--STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES
0
1. The authority citation for part 60 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart OOOOa--[Amended]
0
2. Section 60.5393a is amended by:
0
a. Staying paragraphs (b) and (c) from June 2, 2017, until August 31,
2017; and
0
b. Adding paragraph (f).
The addition reads as follows:
Sec. 60.5393a What GHG and VOC standards apply to pneumatic pump
affected facilities?
* * * * *
(f) Pneumatic pumps at a well site are not subject to the
requirements of paragraph (d) and (e) of this section from June 2,
2017, until August 31, 2017.
Sec. 60.5397a [Amended]
0
3. Section 60.5397a is stayed from June 2, 2017, until August 31, 2017.
0
4. Section 60.5410a is amended by:
0
a. Staying paragraphs (e)(2) through (5) from June 2, 2017, until
August 31, 2017;
0
b. Adding paragraph (e)(8); and
0
c. Staying paragraph (j) from June 2, 2017, until August 31, 2017.
The addition reads as follows:
Sec. 60.5410a How do I demonstrate initial compliance with the
standards for my well, centrifugal compressor, reciprocating
compressor, pneumatic controller, pneumatic pump, storage vessel,
collection of fugitive emissions components at a well site, collection
of fugitive emissions components at a compressor station, and equipment
leaks and sweetening unit affected facilities at onshore natural gas
processing plants?
* * * * *
(e) * * *
(8) Pneumatic pump affected facilities at a well are not subject to
the requirements of (e)(6) and (7) of this section from June 2, 2017,
until August 31, 2017.
* * * * *
0
5. Section 60.5411a is amended by:
0
a. Revising the introductory text;
0
b. Staying paragraph (d) from June 2, 2017, until August 31, 2017; and
0
c. Adding paragraph (e).
The revision and addition read as follows:
Sec. 60.5411a What additional requirements must I meet to determine
initial compliance for my covers and closed vent systems routing
emissions from centrifugal compressor wet seal fluid degassing systems,
reciprocating compressors, pneumatic pumps and storage vessels?
You must meet the applicable requirements of this section for each
cover and closed vent system used to comply with the emission standards
for your centrifugal compressor wet seal degassing systems,
reciprocating compressors, pneumatic pumps and storage vessels except
as provided in paragraph (e) of this section.
* * * * *
(e) Pneumatic pump affected facilities at a well site are not
subject to the requirements of paragraph (a) of this section from June
2, 2017, until August 31, 2017.
0
6. Section 60.5415a is amended by:
0
a. Revising paragraph (b) introductory text and adding paragraph
(b)(4); and
0
b. Staying paragraph (h) from June 2, 2017, until August 31, 2017.
The revision and addition read as follows:
Sec. 60.5415a How do I demonstrate continuous compliance with the
standards for my well, centrifugal compressor, reciprocating
compressor, pneumatic controller, pneumatic pump, storage vessel,
collection of fugitive emissions components at a well site, and
collection of fugitive emissions components at a compressor station
affected facilities, and affected facilities at onshore natural gas
processing plants?
* * * * *
(b) For each centrifugal compressor affected facility and each
pneumatic pump affected facility, you must demonstrate continuous
compliance according to paragraph (b)(3) of this section except as
provided in paragraph (b)(4) of this section. For each centrifugal
compressor affected facility, you also must demonstrate continuous
compliance according to paragraphs (b)(1) and (2) of this section.
* * * * *
(4) Pneumatic pump affected facilities at a well site are not
subject to the requirements of paragraphs (b)(3) of this section from
June 2, 2017, until August 31, 2017.
* * * * *
0
7. Section 60.5416a is amended by revising the introductory text and
adding paragraph (d) to read as follows:
Sec. 60.5416a What are the initial and continuous cover and closed
vent system inspection and monitoring requirements for my centrifugal
compressor, reciprocating compressor, pneumatic pump, and storage
vessel affected facilities?
For each closed vent system or cover at your storage vessel,
centrifugal compressor, reciprocating compressor and pneumatic pump
affected facilities, you must comply with the applicable requirements
of paragraphs (a) through (c) of this section, except as provided in
paragraph (d) of this section.
* * * * *
(d) Pneumatic pump affected facilities at a well site are not
subject to the requirements of paragraphs (a) and (b) of this section
from June 2, 2017, until August 31, 2017.
0
8. Section 60.5420a is amended by:
0
a. Revising paragraph (b) introductory text;
0
b. Staying paragraphs (b)(7), (8), and (12) from June 2, 2017, until
August 31, 2017;
0
c. Adding paragraph (b)(13); and
0
d. Staying paragraphs (c)(15) through (17) from June 2, 2017, until
August 31, 2017.
The revision and addition read as follows:
[[Page 25734]]
Sec. 60.5420a What are my notification, reporting, and recordkeeping
requirements?
* * * * *
(b) Reporting requirements. You must submit annual reports
containing the information specified in paragraphs (b)(1) through (8)
and (12) of this section and performance test reports as specified in
paragraph (b)(9) or (10) of this section, if applicable, except as
provided in paragraph (b)(13) of this section. You must submit annual
reports following the procedure specified in paragraph (b)(11) of this
section. The initial annual report is due no later than 90 days after
the end of the initial compliance period as determined according to
Sec. 60.5410a. Subsequent annual reports are due no later than same
date each year as the initial annual report. If you own or operate more
than one affected facility, you may submit one report for multiple
affected facilities provided the report contains all of the information
required as specified in paragraphs (b)(1) through (8) of this section,
except as provided in paragraph (b)(13) of this section. Annual reports
may coincide with title V reports as long as all the required elements
of the annual report are included. You may arrange with the
Administrator a common schedule on which reports required by this part
may be submitted as long as the schedule does not extend the reporting
period.
* * * * *
(13) The collection of fugitive emissions components at a well site
(as defined in Sec. 60.5430a), the collection of fugitive emissions
components at a compressor station (as defined in Sec. 60.5430a), and
pneumatic pump affected facilities at a well site (as defined in Sec.
60.5365a(h)(2)) are not subject to the requirements of paragraph (b)(1)
of this section from June 2, 2017, until August 31, 2017.
* * * * *
[FR Doc. 2017-11457 Filed 6-2-17; 8:45 am]
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