[Federal Register Volume 90, Number 95 (Monday, May 19, 2025)]
[Rules and Regulations]
[Pages 21225-21228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-08688]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 2, 98, and 99
[EPA-HQ-OAR-2023-0434; FRL-12723-01-OAR]
RIN 2060-AW54
Congressional Review Act Revocation of Waste Emissions Charge for
Petroleum and Natural Gas Systems: Procedures for Facilitating
Compliance, Including Netting and Exemptions
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule; CRA revocation.
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SUMMARY: Congress has passed and the President has signed a joint
resolution of disapproval under the Congressional Review Act (CRA) of
the Environmental Protection Agency's (EPA) final rule titled, ``Waste
Emissions Charge for Petroleum and Natural Gas Systems: Procedures for
Facilitating Compliance, Including Netting and Exemptions'' (2024 WEC
Final Rule). The 2024 WEC Final Rule implemented and facilitated
compliance with the requirements of the Waste Emissions Charge in the
Clean Air Act's (CAA) Methane Emissions Reduction Program. Under the
joint resolution and by operation of the CRA, the 2024 WEC Final Rule
now has no legal force or effect. Because the rule has been nullified,
the EPA is removing it from the Code of Federal Regulations (CFR). This
action is exempt from notice-and-comment rulemaking because it is
ministerial in nature.
DATES: This final rule is effective May 19, 2025.
ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-HQ-OAR-2023-0434. Publicly available docket materials are
available either electronically at https://www.regulations.gov or in
hard copy at Air and Radiation Docket and Information Center, EPA
Docket Center, EPA/DC, EPA WJC West Building, 1301 Constitution Ave.
NW, Room 3334, Washington, DC.
FOR FURTHER INFORMATION CONTACT: Claudia Menasche, Climate Change
Division, Office of Atmospheric Protection (MC-6207A), Environmental
Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460;
telephone number: (202) 564-3391; email address: [email protected].
SUPPLEMENTARY INFORMATION:
I. Does this action apply to me?
This action may be relevant to you if you are an owner or operator
of a facility in certain segments of the petroleum and natural gas
systems industry that reports--or will report--more than 25,000 metric
tons (mt) of carbon dioxide equivalent (CO2e) pursuant to
the requirements codified at 40 CFR part 98 and report emissions under
subpart W (Petroleum and Natural Gas Systems) (hereafter referred to as
``part 98, subpart W''). The industry segments, as they are defined
under part 98, subpart W, to which the 2024 WEC Final Rule may have
applied are offshore petroleum and natural gas production, onshore
petroleum and natural gas production, onshore natural gas processing,
onshore gas transmission compression, underground natural gas storage,
liquefied natural gas
[[Page 21226]]
storage, liquefied natural gas import and export equipment, onshore
petroleum and natural gas gathering and boosting, and onshore natural
gas transmission pipeline. Revisions to part 98, subpart A, also
contained in the 2024 WEC Final Rule, may have applied to all of the
aforementioned segments and natural gas distribution, as defined in
part 98, subpart W. These categories and entities include, but are not
limited to, those listed in table 1 of this preamble:
Table 1--Examples of Affected Entities by Category
------------------------------------------------------------------------
North American
Industry Examples of affected
Category Classification facilities
System (NAICS)
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Petroleum and Natural Gas 486210 Pipeline
Systems. transportation of
natural gas.
221210 Natural gas
processing and
transmission
compression.
211120 Crude petroleum
extraction.
211130 Natural gas
extraction.
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Table 1 of this preamble is not intended to be exhaustive but
rather provides a guide for readers regarding facilities that may have
been affected by the 2024 WEC Final Rule. If you have questions
regarding the applicability of this action to a particular facility,
consult the person listed in the FOR FURTHER INFORMATION CONTACT
section.
II. Background and Rationale for This Final Action
On January 26, 2024, the EPA published in the Federal Register (FR)
a notice of proposed rulemaking to facilitate implementation of the
provisions of the WEC, following the requirements of CAA section
136(c)-(g) (89 FR 5318). The EPA published the 2024 WEC Final Rule in
the FR on November 18, 2024 (89 FR 91094) and codified associated
regulations at 40 CFR parts 2, 98 (subpart A), and 99.
The United States House of Representatives passed a joint
resolution (H.J. Res. 35) on February 26, 2025, disapproving the 2024
WEC Final Rule under the CRA (5 U.S.C. 801 et seq.). The United States
Senate passed H.J. Res. 35 on February 27, 2025. President Donald J.
Trump signed the joint resolution of disapproval into law as Public Law
(Pub. L.) 119-2 on March 14, 2025. Under the joint resolution and by
operation of the CRA, the 2024 WEC Final Rule has no legal force or
effect.
III. Final Action
This final action revises the CFR to remove the now null amendments
that were codified under the 2024 WEC Final Rule. This action removes
40 CFR part 99 (Waste Emissions Charge) and reverts to the text in
effect immediately prior to the effective date of the 2024 WEC Final
Rule for the amended paragraphs of 40 CFR part 2, subpart B (Public
Information--Confidentiality of Business Information) and 40 CFR part
98, subpart A (Mandatory Greenhouse Gas Reporting--General Provisions).
The amendments to 40 CFR part 2, subpart B included revisions to 40 CFR
2.301(d) to include references to part 99. The amendments to 40 CFR
part 98, subpart A included the addition of 40 CFR 98.3(c)(14), which
required additional reporting for facilities subject to part 98,
subpart W; the addition of 40 CFR 98.4(o), which specified alternative
provisions for responsibility for part 98 report submissions and
revisions related to changes in owners and operators for facilities
that report under subpart W; revisions to 40 CFR 98.4(g) and (h) to
include cross-references to paragraph 98.4(o); and revisions to 40 CFR
98.4(n)(2) to clarify responsibilities following certain types of
facility acquisitions.
The EPA is taking this action as a final rule without providing an
opportunity for public comment or a public hearing because the EPA
finds that the Administrative Procedure Act (APA) ``good cause''
exemption applies. The EPA has determined that there is good cause here
because the correction of the CFR is a ministerial act to effectuate
H.J. Res. 35 and the operation of the CRA. The CRA joint resolution was
signed on March 14, 2025, at which point the 2024 WEC Final Rule ceased
to have any legal force or effect. As such, public notice and comment
is unnecessary and would serve no useful purpose.
For these reasons, the EPA finds good cause to issue a final
rulemaking without undergoing public notice and comment, in conformance
with 5 U.S.C. 553(b)(B).
IV. Statutory and Executive Order Review
Additional information about these statutes and Executive Orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Executive Order 14192: Unleashing Prosperity Through Deregulation
This action is considered an Executive Order 14192 deregulatory
action that results in $7,540,709 in cost savings associated with
information collection and EPA implementation. Details on the estimated
cost savings of this final rule can be found in the Information
Collection Request (ICR) as part of the final WEC rule (89 FR 91094).
C. Paperwork Reduction Act (PRA)
This action does not impose an information collection burden under
the PRA. This final action is ministerial in nature and does not
contain any information collection activities.
D. Regulatory Flexibility Act (RFA)
This action is not subject to the RFA. The RFA applies only to
rules subject to notice and comment rulemaking requirements under the
Administrative Procedure Act (APA), 5 U.S.C. 553, or any other statute.
This rule is not subject to notice and comment requirements because the
Agency has invoked the APA ``good cause'' exemption under 5 U.S.C.
553(b)(B).
E. Unfunded Mandates Reform Act (UMRA)
This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538 and does not significantly or uniquely affect
small governments. The action imposes no enforceable duty on any State,
local, or Tribal governments.
[[Page 21227]]
F. 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.
G. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have Tribal implications as specified in
Executive Order 13175. This action is ministerial in nature. Thus,
Executive Order 13175 does not apply to this action.
H. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that the EPA has reason to believe may disproportionately affect
children, per the definition of ``covered regulatory action'' in
section 2-202 of the Executive Order.
Therefore, this action is not subject to Executive Order 13045
because it does not concern an environmental health risk or safety
risk. Since this action does not concern human health, EPA's Policy on
Children's Health also does not apply.
I. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This action is not subject to Executive Order 13211 because it is
not a significant regulatory action under E.O. 12866.
J. National Technology Transfer and Advancement Act
This rulemaking does not involve technical standards.
K. Congressional Review Act
As discussed above, this action reflects the effect of the joint
resolution to disapprove the 2024 WEC Final Rule under the CRA.
L. Judicial Review
Under CAA section 307(b)(1), any petition for review of this final
rule must be filed in the U.S. Court of Appeals for the District of
Columbia Circuit by July 18, 2025.
List of Subjects
40 CFR Part 2
Environmental protection, Administrative practice and procedure,
Confidential business information, Courts, Freedom of information,
Government employees.
40 CFR Part 98
Environmental protection, Greenhouse gases, Incorporation by
reference, Reporting and recordkeeping requirements.
40 CFR Part 99
Environmental protection, Greenhouse gases, Natural gas, Penalties,
Petroleum, Reporting and recordkeeping requirements.
Lee Zeldin,
Administrator.
Under the authority of the Congressional Review Act and Public Law
119-2, 139 Stat. 3, the EPA amends title 40, chapter I, of the Code of
Federal Regulations as follows:
PART 2--PUBLIC INFORMATION
0
1. The authority citation for part 2 continues to read as follows:
Authority: 5 U.S.C. 552, 552a, 553; 28 U.S.C. 509, 510, 534; 31
U.S.C. 3717.
Subpart B--Confidentiality of Business Information
0
2. Amend Sec. 2.301 by reinstating paragraph (d) to read as follows:
Sec. 2.301 Special rules governing certain information obtained under
the Clean Air Act.
* * * * *
(d) Data submitted under 40 CFR part 98. (1) Sections 2.201 through
2.215 do not apply to data submitted under 40 CFR part 98 that EPA has
determined, pursuant to sections 114(c) and 307(d) of the Clean Air
Act, to be either of the following:
(i) Emission data.
(ii) Data not otherwise entitled to confidential treatment pursuant
to section 114(c) of the Clean Air Act.
(2) Except as otherwise provided in paragraphs (d)(2) and (d)(4) of
this section, Sec. Sec. 2.201 through 2.215 do not apply to data
submitted under 40 CFR part 98 data that EPA has determined, pursuant
to sections 114(c) and 307(d) of the Clean Air Act, to be entitled to
confidential treatment. EPA shall treat that information as
confidential in accordance with the provisions of Sec. 2.211, subject
to paragraph (d)(4) of this section and Sec. 2.209.
(3) Upon receiving a request under 5 U.S.C. 552 for data submitted
under 40 CFR part 98 that EPA has determined, pursuant to sections
114(c) and 307(d) of the Clean Air Act, to be entitled to confidential
treatment, the EPA office shall furnish the requestor a notice that the
information has been determined to be entitled to confidential
treatment and that the request is therefore denied. The notice shall
include or cite to the appropriate EPA determination.
(4) Modification of prior confidentiality determination. A
determination made pursuant to sections 114(c) and 307(d) of the Clean
Air Act that information submitted under 40 CFR part 98 is entitled to
confidential treatment shall continue in effect unless, subsequent to
the confidentiality determination, EPA takes one of the following
actions:
(i) EPA determines, pursuant to sections 114(c) and 307(d) of the
Clean Air Act, that the information is emission data or data not
otherwise entitled to confidential treatment under section 114(c) of
the Clean Air Act.
(ii) The Office of General Counsel issues a final determination,
based on the criteria in Sec. 2.208, stating that the information is
no longer entitled to confidential treatment because of change in the
applicable law or newly discovered or changed facts. Prior to making
such final determination, EPA shall afford the business an opportunity
to submit comments on pertinent issues in the manner described by
Sec. Sec. 2.204(e) and 2.205(b). If, after consideration of any timely
comments submitted by the business, the Office of General Counsel makes
a revised final determination that the information is not entitled to
confidential treatment under section 114(c) of the Clean Air Act, EPA
will notify the business in accordance with the procedures described in
Sec. 2.205(f)(2).
* * * * *
PART 98--MANDATORY GREENHOUSE GAS REPORTING
0
3. The authority citation for part 98 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
Subpart A--General Provision
Sec. 98.3 [Amended]
0
4. Amend Sec. 98.3 by removing paragraph (c)(14).
0
5. Amend Sec. 98.4 by reinstating paragraphs (g), (h), and (n)(2) and
removing paragraph (o) to read as follows:
Sec. 98.4 Authorization and responsibilities of the designated
representative.
* * * * *
(g) Changing a designated representative or alternate designated
representative. The designated representative or alternate designated
[[Page 21228]]
representative identified in a complete certificate of representation
under this section for a facility or supplier received by the
Administrator may be changed at any time upon receipt by the
Administrator of another later signed, complete certificate of
representation under this section for the facility or supplier.
Notwithstanding any such change, all representations, actions,
inactions, and submissions by the previous designated representative or
the previous alternate designated representative of the facility or
supplier before the time and date when the Administrator receives such
later signed certificate of representation shall be binding on the new
designated representative and the owners and operators of the facility
or supplier.
(h) Changes in owners and operators. Except as provided in
paragraph (n) of this section, in the event an owner or operator of the
facility or supplier is not included in the list of owners and
operators in the certificate of representation under this section for
the facility or supplier, such owner or operator shall be deemed to be
subject to and bound by the certificate of representation, the
representations, actions, inactions, and submissions of the designated
representative and any alternate designated representative of the
facility or supplier, as if the owner or operator were included in such
list. Within 90 days after any change in the owners and operators of
the facility or supplier (including the addition of a new owner or
operator), the designated representative or any alternate designated
representative shall submit a certificate of representation that is
complete under this section except that such list shall be amended to
reflect the change. If the designated representative or alternate
designated representative determines at any time that an owner or
operator of the facility or supplier is not included in such list and
such exclusion is not the result of a change in the owners and
operators, the designated representative or any alternate designated
representative shall submit, within 90 days of making such
determination, a certificate of representation that is complete under
this section except that such list shall be amended to include such
owner or operator.
* * * * *
(n) * * *
(2) If the entire facility is acquired by an owner or operator that
already has a reporting facility in the same industry segment and basin
(for onshore petroleum and natural gas production or onshore petroleum
and natural gas gathering and boosting) or state (for natural gas
distribution), the new owner or operator shall merge the acquired
facility with their existing facility for purposes of the annual
greenhouse gas (GHG) report. The owner or operator shall also follow
the provisions of Sec. 98.2(i)(6) to notify EPA that the acquired
facility will discontinue reporting and shall provide the e-GGRT
identification number of the merged, or reconstituted, facility. The
owner or operator of the merged facility shall be responsible for
submitting the annual report for the merged facility for the entire
reporting year beginning with the reporting year in which the
acquisition occurred.
* * * * *
PART 99--[Removed and Reserved]
0
6. Remove and reserve part 99.
[FR Doc. 2025-08688 Filed 5-16-25; 8:45 am]
BILLING CODE 6560-50-P