[Federal Register Volume 89, Number 87 (Friday, May 3, 2024)]
[Rules and Regulations]
[Pages 36679-36681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09309]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2024-0175; FRL-11888-02-R9]


Determination To Defer Sanctions; California; California Air 
Resources Board and Local California Air Districts

AGENCY: Environmental Protection Agency (EPA).

ACTION: Interim final determination.

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SUMMARY: The Environmental Protection Agency (EPA) is making an interim 
final determination that the California Air Resources Board (CARB) has 
submitted a revised rule and has also submitted revised rules on behalf 
of the San Joaquin Valley Unified Air Pollution Control District 
(SJVUAPCD), Ventura County Air Pollution Control District (VCAPCD), and 
South Coast Air Quality Management District (SCAQMD) that correct 
deficiencies in its Clean Air Act (CAA or Act) state implementation 
plan (SIP) provisions concerning ozone nonattainment requirements for 
controlling volatile organic compounds (VOCs) at crude oil and natural 
gas facilities. This determination is based on a proposed approval and 
conditional approval, published elsewhere in this Federal Register, of 
a California statewide rule, six California air districts rules, and 
associated reasonably available control technology (RACT) 
determinations for that source category. The effect of this interim 
final determination is to defer the imposition of sanctions that was 
triggered by EPA's previous disapproval. If the EPA finalizes its 
proposed approval of CARB's submission, relief from these sanctions 
will become permanent.

DATES: This rule is effective on May 3, 2024. However, comments will be 
accepted on or before June 3, 2024.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2024-0175 at https://www.regulations.gov. For comments submitted at 
Regulations.gov, follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or removed from 
Regulations.gov. The EPA may publish any comment received to its public 
docket. Do not submit electronically any information you consider to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Multimedia submissions (audio, 
video, etc.) must be accompanied by a written comment. The written 
comment is considered the official comment and should include 
discussion of all points you wish to make. The EPA will generally not 
consider comments or comment contents located outside of the primary 
submission (i.e., on the web, cloud, or other file sharing system). For 
additional submission methods, please contact the person identified in 
the FOR FURTHER INFORMATION CONTACT section. For the full EPA public 
comment policy, information about CBI or multimedia submissions, and 
general guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets. If you need assistance in a 
language other than English or if you are a person with disabilities 
who needs a reasonable accommodation at no cost to you, please contact 
the person identified in the FOR FURTHER INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Nicole Law, EPA Region IX, 75 
Hawthorne St., San Francisco, CA 94105. By phone: (415) 947-4126 or by 
email at [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us,'' 
and ``our'' refer to the EPA.

Table of Contents

I. Background
II. The EPA's Evaluation and Action
III. Statutory and Executive Order Reviews

I. Background

    On September 30, 2022 (87 FR 59314), the EPA issued a limited 
approval and limited disapproval for the California Code of 
Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 Climate 
Change, Article 4 Subarticle 13: Greenhouse Gas Emission Standards for 
Crude Oil and Natural Gas Facilities (``CARB Oil and Gas Methane 
Rule'') that had been submitted by CARB to the

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EPA on December 11, 2018. That action also finalized a disapproval of 
the reasonably available control technology (RACT) demonstrations for 
the 2008 and 2015 ozone National Ambient Air Quality Standards (NAAQS) 
for sources covered by the EPA's 2016 Control Techniques Guidelines for 
the Oil and Natural Gas Industry (``2016 Oil and Gas CTG'') and 
regulated by SCAQMD, SJVUAPCD, Sacramento Metro Air Quality Management 
District (SMAQMD), VCAPCD, and Yolo-Solano Air Quality Management 
District (YSAQMD). In this 2022 action, we determined that while the 
CARB SIP revision submittal strengthened the SIP, the submittal 
contained various deficiencies related to enforceability and stringency 
that prevented full approval. Pursuant to section 179 of the CAA and 
our regulations at 40 CFR 52.31, the limited disapproval of the CARB 
Oil and Gas Methane Rule and the disapproval of the RACT demonstrations 
for the 2008 and 2015 ozone NAAQS action under title I, part D, started 
a sanctions clock for imposition of mandatory sanctions unless the EPA 
affirmatively determines that the deficiency forming the basis of the 
action has been corrected, the offset sanctions under section 179(b)(2) 
will apply 18 months after the action's effective date of October 31, 
2022, and highway sanctions under section 179(b)(1) will apply 6 months 
after the offset sanction is imposed.
    CARB submitted an amended CARB Oil and Gas Methane Rule on April 2, 
2024, as well as six amended California district rules on various dates 
\1\ that addressed the deficiencies identified in our September 30, 
2022 action. In the Proposed Rules section of this Federal Register, we 
have proposed approval of the amended CARB Oil and Gas Methane Rule and 
the six California district rules into the State's SIP, as well as 
approval of the 2016 Oil and Gas CTG RACT requirement for four 
California districts, and conditional approval of the RACT 
demonstration for one California district.\2\ Based on this proposed 
approval action, we are also making this interim final determination, 
effective upon publication, to defer imposition of the offset sanctions 
and highway sanctions that were triggered by our September 30, 2022 
disapproval, because we believe CARB's 2024 submittal and the amended 
rules correct the deficiencies that triggered such sanctions.
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    \1\ San Joaquin Unified Air Pollution Control District Rule 
4401, 4409, and 4623 were submitted on October 13, 2023. Ventura 
County Air Pollution Control District Rule 71.1 was submitted on 
January 10, 2024. South Coast Air Quality Management District Rules 
463 and 1178 were submitted on October 13, 2024, and February 14, 
2024, respectively.
    \2\ The CARB Oil and Gas Methane Rule exempts sources from 
compliance with portions of the CARB Oil and Gas Methane Rule if 
those sources comply with certain existing California air district 
rules. The CARB Oil and Gas Methane Rule references SCAQMD Rule 
1148.1--Oil and Gas Production Wells (Amended March 5, 2004), which 
contains an enforceability deficiency that is described more fully 
in our proposed rule. This deficiency precludes a full approval of 
the RACT requirement for sources covered by the 2016 Oil and Gas CTG 
in SCAQMD. In a letter included in their submittal on April 2, 2024, 
CARB has committed to submitting, within 12 months of the effective 
date of the EPA's final rulemaking, an amended version of South 
Coast Rule 1148.1 that will address the identified deficiency. 
Consistent with CAA section 110(k)(4), the EPA is proposing to 
conditionally approve the SCAQMD CTG RACT requirement for sources 
covered by the 2016 Oil and Gas CTG, based on this commitment to 
remedy the identified deficiency. The proposed conditional approval 
for the newly-identified deficiency in SCAQMD Rule 1148.1, as 
discussed in the CARB Oil and Gas Methane Rule TSD, is distinct from 
the deficiencies that were the basis of our 2022 disapproval, which 
started CAA sanction clocks. Pursuant to our order of sanction 
regulations, 40 CFR 52.31(d)(2), a proposal to ``fully or 
conditionally approve'' a revised plan that cures the deficiency 
that prompted the finding starting the sanctions, along with an 
interim final determination, shall defer the application of 
sanctions.
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    The EPA is providing the public with an opportunity to comment on 
this deferral of sanctions. If comments are submitted that change our 
assessment described in this interim final determination and the 
proposed full and conditional approval of the CARB Oil and Gas Methane 
Rule, local California air district rules, and associated RACT 
demonstrations, we would take final action to lift this deferral of 
sanctions under 40 CFR 52.31. If no comments are submitted that change 
our assessment, then all sanctions and any sanction clocks triggered by 
our 2022 action would be permanently terminated on the effective date 
of our final approval of the CARB Oil and Gas Methane Rule and 
associated RACT demonstrations.

II. The EPA's Evaluation and Action

    We are making an interim final determination to defer CAA section 
179 sanctions associated with our limited disapproval on the 2018 
submittal of the CARB Oil and Gas Methane Rule and disapprovals of 
associated RACT determinations. This determination is based on our 
concurrent proposal to approve SIP revisions from CARB that resolve the 
deficiencies that were the basis of our prior disapproval that 
triggered sanctions under section 179 of the CAA. This includes 
proposing approval and conditional approval of CARB's 2024 submittal of 
the CARB Oil and Gas Methane Rule, six amended California air district 
rules, and associated RACT demonstrations.
    Because the EPA has preliminarily determined that the SIP revisions 
addressing the deficiencies are approvable, relief from sanctions 
should be provided as quickly as possible. Therefore, with respect to 
the effective date of this action, the EPA is invoking the good cause 
exception to the 30-day notice requirement of the Administrative 
Procedure Act (APA) because the purpose of this notice is to relieve a 
restriction (5 U.S.C. 553(d)(1)). The EPA believes that notice-and-
comment rulemaking before the effective date of this action is 
impracticable and contrary to the public interest. The EPA has reviewed 
the State's submittal and, through its proposed action, is indicating 
that it is more likely than not that the State has submitted a revision 
to the SIP that corrects deficiencies under part D of the Act that were 
the basis for the action that started the sanctions clocks. Therefore, 
it is not in the public interest to impose sanctions. The EPA believes 
that it is necessary to use the interim final rulemaking process to 
defer sanctions while the EPA completes its rulemaking process on the 
approvability of the State's submittal. For the reasons outlined above, 
the EPA is invoking the good cause exception under the APA in not 
providing an opportunity for comment before this action takes effect (5 
U.S.C. 553(b)(3)). However, by this action, the EPA is still providing 
the public with a chance to comment on the EPA's determination after 
the effective date, and the EPA will consider any comments received in 
determining whether to reverse such action.

III. Statutory and Executive Order Reviews

    This action defers sanctions and imposes no additional 
requirements. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Orders 
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 
2011);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);

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     Does not have federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide the EPA with the discretionary authority 
to address disproportionate human health or environmental effects with 
practical, appropriate, and legally permissible methods under Executive 
Order 12898 (59 FR 7629, February 16, 1994).
     Is not approved to apply on any Indian reservation land or 
in any other area where the EPA or an Indian tribe has demonstrated 
that a tribe has jurisdiction. In those areas of Indian country, the 
rule does not have tribal implications and will not impose substantial 
direct costs on tribal governments or preempt tribal law as specified 
by Executive Order 13175 (65 FR 67249, November 9, 2000).
     Is subject to the Congressional Review Act (CRA), 5 U.S.C. 
801 et seq., and the EPA will submit a rule report to each House of the 
Congress and to the Comptroller General of the United States. The CRA 
allows the issuing agency to make a rule effective sooner than 
otherwise provided by the CRA if the agency makes a good cause finding 
that notice and comment rulemaking procedures are impracticable, 
unnecessary, or contrary to the public interest (5 U.S.C. 808(2)). The 
EPA has made a good cause finding for this rule as discussed in section 
II of this preamble, including the basis for that finding.
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by July 2, 2024. Filing a petition for 
reconsideration by the EPA Administrator of this final rule does not 
affect the finality of this rule for the purpose of judicial review, 
nor does it extend the time within which petition for judicial review 
may be filed, and it shall not postpone the effectiveness of such rule 
or action. This action may not be challenged later in proceedings to 
enforce its requirements (see CAA section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Oxides of nitrogen, Ozone, 
Volatile organic compounds, Reporting and recordkeeping requirements.

    Dated: April 24, 2024.
Martha Guzman Aceves,
Regional Administrator, Region IX.
[FR Doc. 2024-09309 Filed 5-2-24; 8:45 am]
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