TO:	Docket EPA-HQ-OAR-2011-0147
FROM:	Akachi Imegwu, U.S. EPA, Climate Change Division
DATE:	May 11, 2012
SUBJECT:	2012 Technical Corrections and Amendments Cost Memo 
      
      The 2009 final GHG Reporting Rule was signed by EPA Administrator Lisa Jackson on September 22, 2009 and published in the Federal Register on October 30, 2009 (74 FR 56260). The 2009 final rule, which became effective on December 29, 2009, requires reporting of GHGs from various facilities and suppliers, consistent with the 2008 Consolidated Appropriations Act. After the promulgation of the 2009 main rule, additional notices were published in 2010 finalizing the requirements for subpart TT (75 FR 39736, July 12, 2010), subpart W (75 FR 74458, November 30, 2010), and subpart L (75 FR 74774, December 1, 2010).
      EPA further finalized five technical corrections and clarifying amendments to these and other subparts under the Greenhouse Gas Reporting Program (GHGRP) from 2010 to early 2012 (please see 75 FR 66434, October 28, 2010; 75 FR 79092, December 17, 2010; 76 FR 73866, November 29, 2011; 76 FR 80554, December 23, 2011 and 77 FR 10373, February 22, 2012). The corrections and amendments within those five actions generally did not change the basic requirements of the rule, but were intended to improve clarity and ensure consistency across the calculation, monitoring, and data reporting requirements. Similarly, in this action, the corrections, clarifying and other amendments are intended to provide greater clarity and flexibility to facilities subject to reporting in 2012.
      The four source categories being amended in the 2012 technical corrections rulemaking are the general provisions (subpart A), fluorinated gas production (subpart L), petroleum and natural gas systems (subpart W) and industrial waste landfills (subpart TT).  The amendments to these subparts do not change the respondent burden.  The amendments can be categorized as follows:

   * Revisions to correct equations under Subpart W.
   * Revisions to provide additional flexibility for reporters based on questions raised during implementation.  
   * Revisions and harmonizing changes that correct and clarify inconsistencies in monitoring methodologies or reporting requirements.
   * Revisions that clarify terms and definitions based on questions raised during implementation.   
   
See Appendix A for examples of proposed amendments that would fall under each of these categories.  
Appendix A: Revisions that Do Not Affect Burden


Corrections, clarifications, and amendments to data reporting requirements: 
For subpart A, we are proposing to add a data element in Subpart A that impacts only Subpart I reporters. This additional data element is a harmonizing change that makes the subpart A requirements consistent with the recently finalized February 22, 2012 subpart I amendments (77 FR 10373).  As EPA stated in the preamble to that rule, the amendments made in that action did not impose additional burden on reporters.  

For subpart L, we are proposing the greenhouse gas emissions be reported in a less detailed manner for two years.  During these two years, reporters would still have to use the same monitoring and calculation methodologies as is in the current rule.  As a result, there is no change in burden from these proposed amendments.  

For subpart W, potential reporters have identified several inconsistencies in and expressed confusion about the reporting requirements in §98.236.  EPA is proposing corrections and providing clarification based on questions submitted by potential reporters.  EPA, for example, included a proposed clarification  in 40 CFR 98.236(c)(13) to state that the emissions resulting from centrifugal compressors using calculation methodologies in 40 CFR 98.233(o) must be reported in metric tons of CO2e for each gas, instead of the current provision which required reporting in cubic feet per hour, which was incorrect. As a result, there is no change in burden from the proposed amendments to subpart A in this action.
	
Corrections and clarifications to equations and monitoring methods: 
 Based on input from reporters and EPA internal review, EPA has identified several inconsistencies in and confusion about the calculation methodologies in §98.233 in Subpart W.  EPA is proposing corrections and providing clarification to these equations. A detailed list of corrections to subpart W Equations is available in the Technical Support Document Memo for the Technical Corrections Rule in Docket EPA-HQ-OAR-2011-0147.  The following is a listing of some of the corrections  and clarifications to equations;
      * Desiccant dehydrator  -  removed the divisor of 1,000 in the equation to provide output in cubic feet rather than thousand cubic feet.
      * Well completions and workovers with hydraulic fracturing  -  clarified that output from choke measurement calculations in Equations W-11A and W-11B are in actual conditions.
      * Conversion from actual to standard conditions  -  clarified that paragraph 98.233(t) does not apply if the output from an equation is already in standard units. 
These proposed amendments do not change the overall calculation or monitoring requirements for facilities, rather they clarify the existing rule requirements.  Therefore, there is no change in burden from these types of proposed changes. 

																			     


Increased flexibility for reporters: 
EPA has proposed additional flexibility in the monitoring methods for estimating emissions from the following sources under subparts TT and W.   These proposed amendments are based on questions submitted by potential reporters.  

Under subpart TT, we are proposing to clarify how a facility can determine whether they receive only inert wastes, and therefore would not be subject to subpart TT. Specifically, we are proposing to add an additional methodological option to enable facilities to make this assessment. 

For subpart W, examples of proposed amendments that provide additional flexibility are as follows. For gas well liquids unloading we are proposing to allow facilities to voluntarily take more than the required one sample measurement per sub-basin, well-tubing diameter, and pressure grouping.   Similarly, for gas well completions and workover with hydraulic fracturing, we are proposing to allow facilities to voluntarily take more than the required one sample measurement per sub-basin and well type.
         
Because EPA is not changing the number of measurements required, but merely providing the option for reporters to use additional measurements if available, there is no change in the burden.


