[Federal Register Volume 78, Number 84 (Wednesday, May 1, 2013)]
[Rules and Regulations]
[Pages 25392-25396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-10184]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 98

[EPA-HQ-OAR-2011-0417; FRL-9806-7]
RIN 2060-AR74


Greenhouse Gas Reporting Rule: Revision to Best Available 
Monitoring Method Request Submission Deadline for Petroleum and Natural 
Gas Systems Source Category

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The EPA is revising the deadline by which owners or operators 
of facilities subject to the petroleum and natural gas systems source 
category of the Greenhouse Gas Reporting Rule must submit requests for 
use of best available monitoring methods to the Administrator. This 
revision does not change any other requirements for owners or operators 
as outlined in the best available monitoring method rule provisions.

DATES: This final rule is effective on May 31, 2013.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2011-0417. 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, is not placed on the Internet 
and is publicly available only in hard copy. Publicly available docket 
materials are available either electronically in http://www.regulations.gov or in hard copy at the Air Docket, 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; email address: 
[email protected]. For technical information and implementation 
materials, please go to the Greenhouse Gas Reporting Rule Program Web 
site at http://www.epa.gov/ghgreporting/index.html. To submit a 
question, select Help Center.
    Worldwide Web (WWW). In addition to being available in the docket, 
an electronic copy of this final rule will also be available through 
the WWW. Following the Administrator's signature, a copy of this action 
will be posted on the EPA's Greenhouse Gas Reporting Program Web site 
at http://www.epa.gov/ghgreporting/reporters/notices/index.html.

SUPPLEMENTARY INFORMATION:
    Regulated Entities. The Administrator 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''). This final 
rule affects owners or operators of petroleum and natural gas systems. 
Regulated categories and affected entities may include those listed in 
Table 1 of this preamble:

                               Table 1--Examples of Affected Entities by Category
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           Category                  NAICS                       Examples of affected facilities
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Petroleum and Natural Gas               486210  Pipeline transportation of natural gas.
 Systems.                               221210  Natural gas distribution facilities.
                                           211  Extractors of crude petroleum and natural gas.
                                        211112  Natural gas liquid extraction facilities.
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    Table 1 of this preamble is not intended to be exhaustive, but 
rather lists the types of facilities that the EPA is now aware could be 
potentially affected by the reporting requirements. 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

[[Page 25393]]

examine the applicability criteria found in 40 CFR part 98, subpart A 
or the relevant criteria in the sections related to direct emitters of 
GHGs. 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.
    Judicial Review. Under section 307(b)(1) of the CAA, judicial 
review of this final rule is available only by filing a petition for 
review in the U.S. Court of Appeals for the District of Columbia 
Circuit (the Court) by July 1, 2013. Under CAA section 307(d)(7)(B), 
only an objection to this final rule that was raised with reasonable 
specificity during the period for public comment can be raised during 
judicial review. Section 307(d)(7)(B) of the CAA also provides a 
mechanism for the EPA to convene a proceeding for reconsideration, 
``[i]f the person raising an objection can demonstrate to EPA that it 
was impracticable to raise such objection within [the period for public 
comment] or if the grounds for such objection arose after the period 
for public comment (but within the time specified for judicial review) 
and if such objection is of central relevance to the outcome of the 
rule.'' Any person seeking to make such a demonstration to us should 
submit a Petition for Reconsideration to the Office of the 
Administrator, Environmental Protection Agency, Room 3000, Ariel Rios 
Building, 1200 Pennsylvania Ave. NW., Washington, DC 20460, with a copy 
to the person listed in the preceding FOR FURTHER INFORMATION CONTACT 
section, and the Associate General Counsel for the Air and Radiation 
Law Office, Office of General Counsel (Mail Code 2344A), Environmental 
Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20004. 
Note, under CAA section 307(b)(2), the requirements established by this 
final rule may not be challenged separately in any civil or criminal 
proceedings brought by the EPA to enforce these requirements.
    Acronyms and Abbreviations. The following acronyms and 
abbreviations are used in this document.

CAA Clean Air Act
CBI confidential business information
CFR Code of Federal Regulations
EPA U.S. Environmental Protection Agency
FR Federal Register
GHG greenhouse gas
GHGRP Greenhouse Gas Reporting Program
CO2e carbon dioxide equivalent
NAICS North American Industry Classification System
NTTAA National Technology Transfer and Advancement Act
OMB Office of Management and Budget
QA/QC quality assurance/quality control
RFA Regulatory Flexibility Act
U.S. United States
UMRA Unfunded Mandates Reform Act of 1995
WWW World Wide Web

    Organization of This Preamble. The following outline is provided to 
aid in locating information in this preamble.

I. Background
    A. Organization of This Preamble
    B. Background on the Final Rule
    C. Legal Authority
II. Final Amendments and Responses to Public Comments
III. 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 (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    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
    K. Congressional Review Act

I. Background

A. Organization of This Preamble

    This preamble consists of three sections. The first section 
provides background on 40 CFR part 98, subpart W and describes the 
purpose and legal authority for this action. The second section of this 
preamble summarizes the revision made to the specific requirement in 
the petroleum and natural gas systems (subpart W) source category of 40 
CFR part 98 and comments received. The third section of this preamble 
discusses the various statutory and executive order requirements 
applicable to this rulemaking.

B. Background on the Final Rule

    On November 30, 2010 (75 FR 74459) the EPA finalized the Petroleum 
and Natural Gas Systems source category, subpart W, of the Greenhouse 
Gas Reporting Rule. As part of that rule, the EPA finalized detailed 
provisions in 40 CFR 98.234(f), allowing for owners or operators to use 
best available monitoring methods for specified parameters in 40 CFR 
98.233 where additional time is needed to comply with the monitoring 
and quality assurance/quality control (QA/QC) requirements as outlined 
in the rule. In these cases, owners or operators are given the 
flexibility, upon approval, to estimate parameters for equations in 40 
CFR 98.233 by using supplier data, engineering calculations, other 
company records or monitoring methods currently used by the facility 
that do not meet the specifications of subpart W.
    On February 19, 2013, the EPA published a direct final rule (78 FR 
11585) and a parallel proposal (78 FR 11619) to amend the deadline for 
submitting best available monitoring method requests to the 
Administrator from September 30 to June 30 of the year prior to the 
reporting year for which use of BAMM is sought. In those actions, the 
EPA stated that if an adverse comment were received, a timely 
withdrawal notice would be published in the Federal Register informing 
the public that the direct final rule would not take effect and that 
the EPA would address comments in any subsequent final rule based on 
the parallel proposal. On April 2, 2013, the direct final rule was 
withdrawn (78 FR 19605) due to potentially adverse comment received on 
the direct final rule. Based on the comments received, EPA is 
finalizing the amendment as proposed. Responses to comments received 
are addressed below and can be found in the document, ``Response to 
Comments: Greenhouse Gas Reporting Rule: Revision to Best Available 
Monitoring Method Request Submission Deadline for Petroleum and Natural 
Gas Systems Source Category'' (see EPA-HQ-OAR-2011-0417).

C. Legal Authority

    The EPA is promulgating this rule amendment under its existing CAA 
authority, specifically authorities provided in CAA section 114. As 
stated in the preamble to the 2009 final rule (74 FR 56260, October 30, 
2009) and the Response to Comments on the April 10, 2009 initial 
proposed rule,\1\ Volume 9, Legal Issues, CAA section 114 provides the 
EPA broad authority to require the information proposed to be gathered 
by this rule because such data would inform and are relevant to the 
EPA's carrying out a wide variety of CAA provisions. 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

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subject to the CAA, manufacturers of control or process equipment, or 
persons who 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 the EPA's legal authority, 
see the preambles to the 2009 proposed and final rules and EPA's 
Response to Comments, Volume 9.
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    \1\ See http://www.epa.gov/climatechange/emissions/responses.html.
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II. Final Amendments and Responses to Public Comments

    In this action, the EPA is finalizing the amendment to the deadline 
for submitting Subpart W best available monitoring method requests to 
the Administrator from September 30 to June 30 of the year prior to the 
reporting year for which use of BAMM is sought. Specifically, the EPA 
is revising the last sentence in 40 CFR 98.234(f)(8)(i) to replace the 
date ``September 30'' with the date ``June 30'' so that the sentence 
now reads ``For reporting years after 2012, a new request to use best 
available monitoring methods must be submitted by June 30th of the year 
prior to the reporting year for which use of best available monitoring 
methods is sought.'' The EPA is not finalizing any other amendments to 
provisions related to best available monitoring methods or other parts 
of subpart W in this action.
    After evaluation of comments received, the EPA has determined that 
the amendment to the rule should become final as proposed. A brief 
summary of comments received and our responses are provided below. The 
EPA's responses to all comments can be found in the document ``Response 
to Comments: Greenhouse Gas Reporting Rule: Revision to Best Available 
Monitoring Method Request Submission Deadline for Petroleum and Natural 
Gas Systems Source Category'' (see EPA-HQ-OAR-2011-0417).
    One commenter stated that the EPA should not implement the direct 
final action. This commenter did not explicitly state why the action 
should not be implemented, nor did the commenter state any specific 
concerns with the amendment. Without any further information why the 
amendment should not be implemented, the EPA is maintaining its 
position that the amendment to the rule as proposed should become 
final. The EPA continues to conclude that this amendment would have 
minimal adverse impact on owners or operators requesting to use best 
available monitoring methods in future years. As stated in the direct 
final rule and associated co-proposal, the EPA believes that this 
amendment will provide additional certainty to reporters prior to the 
upcoming reporting year for which the use of best available monitoring 
methods are sought. Additionally, finalizing this amendment results in 
a more appropriate time frame for comprehensively reviewing and 
processing submitted requests and allowing the EPA to notify all owners 
and operators of final determinations in a timely manner.
    The EPA also received a comment that is beyond the scope of this 
rulemaking as explained in the Response to Comments document.

III. 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. 
This amendment affects a provision in the rule related to the date of 
submission for best available monitoring method requests and does not 
affect what is submitted in those request or any associated burden with 
submitting those requests. 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 the EPA's regulations in 40 CFR are listed in 40 
CFR part 9.

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 final 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 these rule amendments 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 analysis is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impacts of the rule on small entities.'' 5 U.S.C. 603 and 604. 
Thus, an agency may certify that the rule will not have a significant 
economic impact on a substantial number of small entities if the rule 
relives regulatory burden, or otherwise has a positive economic effect 
on all of the small entities subject to the rule. The EPA anticipates 
that this amendment would result in greater certainty to reporters 
choosing to submit best available monitoring method requests to the EPA 
for use in future years.

D. Unfunded Mandates Reform Act

    This action contains no Federal mandates under the provisions of 
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 
1531-1538 for State, local, and tribal governments or the private 
sector. This action imposes no enforceable duty on any State, local or 
tribal governments or the private sector. Thus, the amendments in this 
action are not subject to the requirements of section 202 or 205 of the 
UMRA. This action 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.

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

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levels of government, as specified in Executive Order 13132.
    This action applies to an optional provision in the final rule for 
subpart W, which in turn applies to petroleum and natural gas 
facilities that emit greenhouse gases. Few, if any, State or local 
government facilities would be affected. This action 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). Further, this 
action would not result in any changes to the current requirements of 
40 CFR part 98 subpart W and only applies 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, the 
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.E 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

    The 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.

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 the 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 the EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This action does not involve technical standards. Therefore, the 
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.
    The EPA has determined that this action 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.

K. Congressional Review Act

    The Congressional Review At, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 
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. The EPA will submit a report containing 
this rule and the required information to the U.S. Senate, the U.S. 
House of Representatives, and the Comptroller General of the U.S. A 
major rule cannot take effect until 60 days after it is published in 
the Federal Register. This action is not a ``major rule'' as defined by 
5 U.S.C. 804(2). This rule is effective on May 31, 2013.

List of Subjects in 40 CFR Part 98

    Environmental protection, Administrative practice and procedures, 
Air pollution control, Greenhouse gases, Monitoring, Reporting and 
recordkeeping requirements.

    Dated: April 24, 2013.
Bob Perciasepe,
Acting Administrator.

    For the reasons discussed in the preamble, title 40, chapter I, of 
the Code of Federal Regulations is amended 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.

Subpart--W [Amended]

0
2. Section 98.234 is amended by revising paragraph (f)(8)(i) to read as 
follows:


Sec.  98.234  Monitoring and QA/QC Requirements

* * * * *
    (f) * * *
    (8) * * *
    (i) Timing of request. EPA does not anticipate a need for best 
available monitoring methods beyond 2011, but for all reporting years 
after 2011, best available monitoring methods will be considered for 
unique or unusual circumstances which include data collection methods 
that do not meet safety regulations, technical infeasibility, or 
counter to other local, State, or Federal regulations. For use of best 
available monitoring methods in 2012, an initial notice of intent to 
request best available monitoring methods must be submitted by December 
31, 2011. Any notice of intent submitted prior to the effective date of 
this rule cannot be used to meet this December 31, 2011 deadline; a new 
notice of intent must be signed and submitted by the designated 
representative. In addition to the initial notification of intent, 
owners or operators must also submit an extension request containing 
the information specified in 98.234(f)(8)(ii) by March 30, 2012. Any 
best available monitoring methods request submitted prior to the 
effective date of this rule cannot be used to meet the March 30, 2012 
deadline; a new best available monitoring methods request must be 
signed and submitted by the designated representative. Owners or 
operators that submit both a

[[Page 25396]]

timely notice of intent and extension request consistent with 
98.234(f)(8)(ii) can automatically use best available monitoring method 
through June 30, 2012, for the specific parameters identified in their 
notification of intent and best available monitoring methods request 
regardless of whether the best available monitoring methods request is 
ultimately approved. Owners or operators that submit a notice of intent 
but do not follow up with a best available monitoring methods request 
by March 30, 2012 cannot use best available monitoring methods in 2012. 
For 2012, when an owner or operator has submitted a notice of intent 
and a subsequent best available monitoring method extension request, 
use of best available monitoring methods will be valid, upon approval 
by the Administrator, until the date indicated in the approval or until 
December 31, 2012, whichever is earlier. For reporting years after 
2012, a new request to use best available monitoring methods must be 
submitted by June 30th of the year prior to the reporting year for 
which use of best available monitoring methods is sought.
* * * * *
[FR Doc. 2013-10184 Filed 4-30-13; 8:45 am]
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