6560.50

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 98

[EPA-HQ-OAR-2011-0417; FRL- XXXX-X]

RIN 2060-AP99

Mandatory Reporting of Greenhouse Gases: Petroleum and Natural Gas
Systems: Revisions to Best Available Monitoring Method Provisions

AGENCY:  Environmental Protection Agency (EPA).

ACTION:  Proposed Rule. 

SUMMARY:  EPA is proposing to amend certain provisions related to best
available monitoring methods in regulations for Petroleum and Natural
Gas Systems of the Greenhouse Gas Reporting Rule.  Specifically, EPA is
proposing to extend the time period during which owners and operators of
covered facilities would be permitted to use best available monitoring
methods during 2011 without submitting a request to the Administrator
for approval.  In addition, EPA is proposing to expand the list of types
of emissions sources for which owners and operators would not be
required to submit a request to the Administrator to use best available
monitoring methods for 2011 and extend the deadline by which owners and
operators of covered facilities would request use of best available
monitoring methods for beyond 2011.  These proposed amendments are in
response to a request for reconsideration of specific provisions.

DATES:  Comments.  Comments must be received on or before [INSERT THE
DATE, 30 DAYS AFTER PUBLICATION OF THIS PROPOSED RULE IN THE FEDERAL
REGISTER], unless a public hearing is held, in which case comments must
be received on or before [INSERT THE DATE 45 DAYS AFTER PUBLICATION OF
THIS PROPOSED RULE IN THE FEDERAL REGISTER].  

Public Hearing.  A public hearing will be held if requested.  To request
a hearing, please contact the person listed in the following FOR FURTHER
INFORMATION CONTACT section by [INSERT DATE 7 DAYS AFTER DATE OF
PUBLICATION OF THIS PROPOSED RULE IN THE FEDERAL REGISTER].  If
requested, the hearing will be conducted on [INSERT DATE 15 DAYS AFTER
DATE OF PUBLICATION OF THIS PROPOSED RULE IN THE FEDERAL REGISTER], in
the Washington, DC area.  EPA will provide further information about the
hearing on its webpage if a hearing is requested.

ADDRESS:  You may submit your comments, identified by docket ID No.
EPA-HQ-OAR-2011-0417 by any of the following methods:

Federal eRulemaking Portal: http://www.regulations.gov.  Follow the
online instructions for submitting comments.

E-mail: GHG_Reporting_Rule_Oil_And_Natural_Gas@epa.gov. Include Docket
ID No.  HYPERLINK
"https://fdms.erulemaking.net/fdms-web-agency/custom/jsp/agency/docketwi
zard/DocketWizardContainer.jsp" \t "_blank" EPA-HQ-OAR-2011- 0417 in the
subject line of the message.

Fax: (202) 566–9744.

Mail: Environmental Protection Agency, EPA Docket Center (EPA/DC),
Mailcode 28221T, Attention Docket ID No. EPA-HQ-OAR–2011-0147, 1200
Pennsylvania Avenue, NW., Washington, DC 20460.

Hand/Courier Delivery: EPA Docket Center, Public Reading Room, EPA West
Building, Room 3334, Attention Docket ID No. EPA-HQ-OAR–2011-0147,
1301 Constitution Avenue, NW., Washington, DC 20004.  Such deliveries
are only accepted during the docket’s normal hours of operation, and
special arrangements should be made for deliveries of boxed information.

Instructions:  Direct your comments to Docket ID No.
EPA-HQ-OAR-2011-0417, Mandatory Reporting of Greenhouse Gases: Petroleum
and Natural Gas Systems.  EPA's policy is that all comments received
will be included in the public docket without change and may be made
available online at http://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed to
be confidential business information (CBI) or other information whose
disclosure is restricted by statute.  Do not submit information that you
consider to be CBI or otherwise protected through
http://www.regulations.gov or e-mail.  The http://www.regulations.gov
Web site is an “anonymous access” system, which means EPA will not
know your identity or contact information unless you provide it in the
body of your comment.  If you send an e-mail comment directly to EPA
without going through http://www.regulations.gov your e-mail address
will be automatically captured and included as part of the comment that
is placed in the public docket and made available on the Internet.  If
you submit an electronic comment, EPA recommends that you include your
name and other contact information in the body of your comment and with
any disk or CD-ROM you submit.  If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA may
not be able to consider your comment.  Electronic files should avoid the
use of special characters, any form of encryption, and be free of any
defects or viruses.

Docket:  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, will be publicly available for viewing at the
EPA Docket Center.  Publicly available docket materials are available
either electronically in http://www.regulations.gov or in hard copy at
the EPA Docket Center, 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; e-mail address:
GHGReportingRule@epa.gov.

Worldwide Web (WWW).  In addition to being available in the docket, an
electronic copy of today's proposal will also be available through the
WWW.  Following the Administrator's signature, a copy of this action
will be posted on EPA's greenhouse gas reporting rule Web site at 
HYPERLINK
"http://www.epa.gov/climatechange/emissions/ghgrulemaking.html"
http://www.epa.gov/climatechange/emissions/ghgrulemaking.html .

Additional information on Submitting Comments.  To expedite review of
your comments by Agency staff, you are encouraged to send a separate
copy of your comments, in addition to the copy you submit to the
official docket, to Carole Cook, U.S. EPA, Office of Atmospheric
Programs, Climate Change Division, Mail Code 6207-J, Washington, DC
20460, telephone (202) 343-9263, e-mail address:  HYPERLINK
"mailto:GHGReportingRule@epa.gov" GHGReportingRule@epa.gov . 

SUPPLEMENTARY INFORMATION: 

Organization of this document.  The information presented in this
preamble is organized as follows:

I. General Information

A.  Does this Action apply to me?

B.  Acronyms and Abbreviations

II.  Background

III. Proposed Amendments to 40 CFR part 98

IV. 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

D.  Unfunded Mandates Reform Act

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

  TOC \n \p " " \h \z \t "_Level 2-GHG Preamble,2,_Level 1-GHG
Preamble,1"  

 I.  General Information

A.  Does this Action apply to me?

These are proposed amendments to optional methods under an existing
regulation.  If finalized, these amended regulations could affect owners
or operators of petroleum and natural gas systems.  Regulated categories
and entities include those listed in Table 1 of this preamble: 

Table 1.  Examples of Affected Entities by Category

Source Category	NAICS	Examples of affected facilities

Petroleum and Natural Gas Systems	486210	Pipeline transportation of
natural gas.

	221210	Natural gas distribution facilities.

	211	Extractors of crude petroleum and natural gas.

	211112	Natural gas liquid extraction facilities.



Table 1 of this preamble is not intended to be exhaustive, but rather
provides a guide for readers regarding facilities likely to be affected
by this action.  Although Table 1 of this preamble lists the types of
facilities of which EPA is aware that could be potentially affected by
this action, 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 examine the applicability criteria found in 40 CFR
part 98, subpart W or the relevant criteria in the sections related to
petroleum and natural gas systems.  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. 

B.  Acronyms and Abbreviations 

The following acronyms and abbreviations are used in this document. 

API	American Petroleum Institute

AXPC	American Exploration & Production Council

BAMM	best available monitoring methods

CAA	Clean Air Act

CBI	confidential business information

CEC	Chesapeake Energy Corporation

CFR	Code of Federal Regulations

EO	Executive Order

EPA	U.S. Environmental Protection Agency

FR	Federal Register

GHG	greenhouse gas

IBR	incorporation by reference

ICR	information collection request

ISO	International Organization for Standardization

MRR	mandatory GHG reporting rule

OMB	Office of Management and Budget

RFA	Regulatory Flexibility Act

RIA	Regulatory Impact Analysis

SBA	Small Business Administration

SBREFA	Small Business Regulatory Enforcement and Fairness Act

U.S.	United States

UMRA	Unfunded Mandates Reform Act of 1995

USC	United States Code

II.  Background 

The EPA published Subpart W: Petroleum and Natural Gas Systems of the
Greenhouse Gas Reporting Rule on November 30, 2010, 40 CFR Part 98,
subpart W (75 FR 74458)(subpart W).  Included in the final rule were new
provisions that were added in response to comments on the proposal
allowing owners or operators the option of using best available
monitoring methods(BAMM) for specified parameters in 40 CFR 98.233. 

As stated in the preamble to the 2009 final rule (74 FR 56260), CAA
section 114 provides EPA broad authority to require the information
required to be gathered under subpart W.  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 subject to the CAA, manufacturers of control or process
equipment, or persons whom 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 EPA’s legal
authority, see the preamble to the April 2009 (74 FR 16448) proposal and
October 2010 (74 FR 56260) final rules for the Mandatory Reporting of
Greenhouse Gases.

Following the publication of subpart W in the Federal Register, several
industry groups requested reconsideration of several provisions in the
final rule, including the provisions for BAMM.  In a follow up action,
EPA granted reconsideration and extended specific BAMM deadlines in a
rule that was promulgated on April 25, 2011 (76 FR 22825).

In further response to that request for reconsideration of specific BAMM
provisions, EPA is seeking comment on several proposed amendments to the
BAMM provisions in this proposal, including extension of the time period
during which owners and operators of covered facilities with emissions
sources listed in 40 CFR 98.234(f)(2), (f)(3), (f)(4), and (f)(5)(iv)
would be permitted to use BAMM during calendar year 2011 without having
to request approval from the Administrator.  Additionally, EPA is
seeking comment on the proposed amendment to the BAMM provisions beyond
2011 outlined in this proposal which includes an initial submission of a
notice of intent to request use of BAMM beyond 2011 followed by a
submission of a BAMM request  consistent with 40 CFR 98.234(f)(8)(ii) to
the Administrator for approval to use BAMM beyond 2011. 

III.  Proposed Amendments to 40 CFR part 98 

Subpart W of the GHG reporting rule includes provisions allowing owners
and operators of covered facilities to use BAMM in lieu of specified
data input requirements for determining greenhouse gas emissions in
certain circumstances for specified emissions sources.  Methods that
constitute BAMM are: supplier data; monitoring methods currently used by
the facility that do not meet the specifications of a relevant subpart;
engineering calculations; and/or other company records.  When using
BAMM, the owner or operator must use the equations and calculation
methods set forth in 40 CFR 98.233, but may use BAMM to estimate the
parameters in the equations as specified in the rule.  

EPA carefully evaluated each emissions source outlined in subpart W, and
the required calculation methodologies for determining greenhouse gas
emissions from that emissions source.  Based on this evaluation, EPA has
identified the specific emission sources for which the use of BAMM would
be appropriate.  Those emission sources are categorized into the
following four groups. 

Well-related emissions.  This group of emissions sources includes those
well-related data that cannot reasonably be measured according to the
monitoring and QA/QC requirements of subpart W such as well testing,
venting, and flaring, for example.  

Specified activity data.  This group includes those activity data that
cannot reasonably be obtained according to the monitoring and QA/QC
requirements specified in subpart W such as cumulative hours of venting,
days, or times of operation, for example. 

Leak Detection and Measurement.  This group includes those sources of
emissions that require leak detection and/or measurement such as the
measurement of equipment leaks from valves and connectors. 

Unique or Unusual Circumstances.  These circumstances include emission
sources not covered under the previous three categories for which the
owner or operator of a covered facility is facing unique or unusual
circumstances, such as data collection methods that do not meet safety
regulations, technical infeasibility such as a compressor never having
maintenance during the calendar year rendering the installation of a
port or meter difficult, or legal issues rendering them unable to meet
the requirements of subpart W.  

EPA is proposing the following amendments to subpart W: 

Best available monitoring methods for well-related emissions.  EPA is
proposing to extend the time period for use of BAMM without EPA
approval, by three months, such that owners and operators of facilities
with emissions sources listed in 40 CFR 98.234(f)(2) would not be
required to request approval by the Administrator to use BAMM between
January  1, 2011 and December 31, 2011. 

Best available monitoring methods for specified activity data.  EPA is
proposing to extend the time period for use of BAMM without EPA
approval, by three months, such that owners and operators of facilities
with emissions sources listed in 40 CFR 98.234(f)(3) would not be
required to request approval by the Administrator to use BAMM between
January  1, 2011 and December 31, 2011.

Best available monitoring methods for leak detection and measurement. 
EPA is proposing to allow owners and operators of facilities with
emissions sources listed in 40 CFR 98.234(f)(4) to use BAMM between
January 1, 2011 and December 31, 2011 without having to request approval
from the Administrator.  

Best available monitoring methods for unique or unusual circumstances. 
EPA is proposing to allow owners and operators of facilities with
emissions sources listed in 40 CFR 98.234(f)(5)(iv) to use BAMM between
January 1, 2011 and December 31, 2011 without having to request approval
from the Administrator. 

Best available monitoring methods for use beyond December 31, 2011.  EPA
is proposing to revise the introductory sentence in 40 CFR 98.234(f)(8)
by removing reference to extreme circumstances.  In addition, EPA is
proposing to amend 40 CFR 98.234(f)(8)(i) such that owners and operators
of facilities with emissions sources listed in 40 CFR 98.234(f)(8) may
submit a notice of intent to submit a request for  BAMM beyond 2011 to
EPA by December 31, 2011.  Facilities that submit a BAMM request
consistent with 40 CFR 98.234(f)(8)(ii) by March 30, 2012 who have also
submitted a notice of intent by December 31, 2011 would automatically be
granted BAMM through June 30, 2012.  Facilities which submit such a
notice of intent but do not follow up with a BAMM request by March 30,
2012 would not be allowed to use BAMM after December 31, 2011.

Following promulgation of subpart W on November 30, 2010, industry
groups sought reconsideration of several provisions in the final rule,
including the provisions allowing owners and operators of facilities
with emissions sources listed in 40 CFR 98.234(f)(2), (f)(3),(f)(4), and
(f)(5)(iv) to use BAMM.  

By letter dated January 31, 2011, Chesapeake Energy Corporation (CEC)
and the American Exploration & Production Council (AXPC) stated that
“BAMM should be allowed without EPA approval for entities reporting
under subpart W for the entire first reporting year 2011 and for all
data necessary to conduct the calculations required under the rule.” 
Also, by letter dated January 31, 2011, the American Petroleum Institute
(API) stated that “[u]pon reconsideration, API requests that EPA
provide pre-approval for (1) leak detection and measurement…”  and
also “[u]pon reconsideration, API requests that EPA allow BAMM to be
used for the onshore production sector and activity data categories
through December 31, 2011.”    

EPA met with several trade associations and companies that own or
operate facilities subject to subpart W.  During those meetings, several
companies requested an extension of the BAMM provisions in order to
complete initial equipment inventories and to secure internal resources
to report data to EPA in accordance with the rule requirements.  In
particular, companies stated that a large number of data points that are
necessary to determine greenhouse gas emissions using the calculation
methodologies outlined in subpart W are not currently tracked by
internal company data systems and may not be managed by the company in
such a way that would enable those data to be readily reported to EPA in
a timely manner.  

By letter dated May 3, 2011 API submitted information to EPA regarding
the number of sources for which information must be collected.  The
letter states that “[g]iven the extraordinary scope of Subpart W –
both the hundreds of thousands of discrete sites and sources whose
emissions must be quantified and reported and their broad geographic
dispersion – compliance with the monitoring and reporting deadlines
and the deadlines to apply for approval to extend the use of BAMM are
not only unrealistic but infeasible.”  The letter further states that
“[t]he Onshore Petroleum and Natural Gas Production segment of the
Petroleum and Natural Gas Systems source category (Onshore Production)
alone covers hundreds of thousands [emphasis in original] of well sites
along with tens of thousands of sites “associated with a well pad”
(which is not defined or discussed in the rule).  These sites are widely
dispersed across hundreds of thousands of square miles in all of the oil
and gas producing basins across the United States.  The seven additional
industry segments subject to subpart W extend this coverage to tens of
thousands of additional offshore platforms, onshore sites and
facilities, and natural gas distribution sites.  Within each of these
industry segments, subpart W mandates that reporters monitor and
determine emissions from multiple source types; for example, the Onshore
Production portion of the rule covers 22 distinct source types.  Each of
these source types requires the collection of a broad variety of
information, data points, analyses, models, and/or measurements to
determine emissions and submit emission reports.”

The letter also states that “[t]he problems created by the large
number of facilities that are subject to the rule are exacerbated by
their wide geographic distribution.  Unlike a chemical plant or a
refinery, oil and natural gas operations are spread out over huge
geographic areas and are typically not staffed at all times.  Often
there is no electricity, difficult access, and little existing
infrastructure or communications ability at these disparate locations. 
Given this geographic dispersion of oil and natural gas facilities,
installation of any additional equipment, monitors, and/or data
acquisition and transmitting systems will be very challenging.  Even
traveling to each of these sites requires significant time and effort. 
When this is combined with the specific monitoring methods demanded by
the rule, reporters cannot realistically meet the rule’s BAMM
extension application deadlines or have the full suite of required
monitoring and recordkeeping systems in place by September 30.”  

For example, companies that own or operate facilities subject to subpart
W, such as API members, and as discussed in API’s May 3, 2011
correspondence, the data collection systems that would be necessary to
collect and process the numerous inputs required for subpart W are very
complex.  Because of the extensive, inter-related, complex nature of
these data collection systems, many companies described the need for
automatic BAMM for emissions sources that fall under 40 CFR
98.234(f)(5)(iv).  For some sources, it would be nearly impossible to
gauge in advance the exact nature of the BAMM that would be needed; for
example, if one specific tank pressure measurement was not available and
an alternate method was required to be used, a company or facility may
not have had advance knowledge of that need and may not have prepared a
specific BAMM request for that alternate measurement by the BAMM
application deadline.  

Because EPA did not include specific BAMM provisions in the proposed
rule for subpart W (75 FR 18609), companies did not have the opportunity
to comment on BAMM timelines and how those timelines would affect their
facilities.  Therefore, after evaluating the information provided, EPA
has concluded that it is appropriate to propose extending the time
period, to December 31, 2011, that owners and operators of covered
facilities would be allowed to use BAMM without having to submit a
request for approval from the Administrator.  EPA believes these
proposed amendments to the BAMM provisions are appropriate in order to
provide sufficient time for companies to collect, prepare and submit
data to EPA during the initial year of reporting. 

In this action, EPA is proposing to amend 40 CFR part 98 subpart W to
allow facilities with the emissions sources listed in 40 CFR
98.234(f)(2), (f)(3), (f)(4), and (f)(5)(iv) to automatically use BAMM,
without EPA approval, for the entire 2011 reporting year.  

We are also proposing to amend 40 CFR 98.234(f)(8) for owners and
operators who want to request to use BAMM beyond 2011.  In this
proposal, owners or operators requesting to use BAMM beyond 2011 are
required to electronically notify EPA by December 31, 2011 that they
intend to apply for BAMM for unique or unusual circumstances such as
data collection methods that do not meet safety, technical, or legal
issues rendering them unable to meet the requirements of subpart W. 
Owners or operators must submit the full extension request for BAMM by
March 30, 2012.  The full extension request must include a list of
specific source categories and parameters at the facility for which the
owner or operator is seeking to use BAMM.  The full request must also
include a description of the unique or unusual circumstances, including
data collection methods that do not meet safety regulations, methods
that are technically infeasible, or specific laws or regulations that
conflict with each specific source for which BAMM is being requested. 
In addition, the full request must include supporting documentation of
how and when the owner or operator will come into full compliance with
subpart W, including but not limited to acquiring necessary services or
equipment to comply with all of subpart W reporting requirements. The
contents of the full BAMM request for post 2011 remain unchanged from
the 2010 final rule (75 FR 74508) with the exception that we are
clarifying in this proposal that the circumstances under which BAMM may
be requested beyond 2011 are not limited to concerns about safety,
technical infeasibility or instances where meeting monitoring
requirements under subpart W would conflict with specific laws or
regulations.  Other unique or unusual circumstances may be appropriate
for requesting BAMM, if properly demonstrated.  We are seeking comment
only on these amendments to 40 CFR 98.234(f)(8)(iv) which we have
proposed to change and not other elements of the post 2011 BAMM process.
 

Further, we would note that the notice of intent, due December 31, 2011
to request BAMM post 2011 is intended for known issues (e.g., a
monitoring requirement in the rule is counter to another federal, state
or local regulation).  EPA does not intend for the proposed amendments
to 40 CFR 98.234(f)(8) to lead to a submission of a notification of
intent and a subsequent BAMM request consistent with 40 CFR
98.234(f)(8)(ii) by a facility to cover that facility in the event that
the facility might need BAMM in a future year (sometimes referred to as
a “protective filing”).   Submission of a BAMM request for these
possible future issues (e.g, newly acquired operations) is covered under
40 CFR 98.234(f)(1), which states “EPA reserves the right to review
petitions after the deadline but will only consider and approve late
petitions which demonstrate extreme or unusual circumstances.” EPA
recognizes that it is not reasonable to predict all potential future
issues and, as such, reserves the right to consider those BAMM requests
in future years, without the reporter’s having to notify EPA by the
December 31, 2011 notification of intent deadline described in 40 CFR
98.234(f)(8).   

 Once the owner or operator has notified EPA, by December 31, 2011, of
their intent to apply for BAMM and has subsequently submitted a full
extension request, by March 30, 2012, they can automatically use BAMM
for the specific parameters identified in their request through June 30,
2012, regardless of the final determination by EPA on approval or denial
of the BAMM request.  This automatic extension would be necessary
because under the proposed rule, facilities would have only been granted
automatic BAMM through December 31, 2011.  For facilities that are
requesting BAMM for beyond 2011, BAMM must be extended automatically to
provide EPA the time to review thoroughly the BAMM requests submitted
for beyond 2011, while ensuring that the requesting facilities are not
out of compliance with the rule during that review process.  The owners
and operators who apply for BAMM beyond 2011 must follow the
requirements as stated in subpart W by July 1, 2012, unless EPA approves
their BAMM extension request (due March 30, 2012).  Under the proposal,
facilities that submit a notice of intent but do not follow up with a
BAMM request consistent with 40 CFR 98.234(f)(8)(ii) by March 30, 2012
cannot use BAMM after December 31, 2011.   

EPA is seeking comment on these proposed deadlines for BAMM beyond 2011.
 EPA recognizes that there may be additional concerns related to BAMM
for post 2011 that were raised in the petitions for reconsideration. 
Although EPA is aware of these concerns, we are not proposing amendments
related to these concerns at this time.  We are seeking comments only on
the proposal to extend the BAMM deadlines (for both 2011 and post 2011)
and to clarify that BAMM may be sought for unique or unusual (as opposed
to “extreme”) circumstances, including data collection methods that
do not meet safety regulations, technical infeasibility and instances
where subpart W monitoring requirements would conflict with regulations.
 

EPA is also re-numbering several paragraphs that were incorrectly
numbered.  40 CFR 98.234(f)(8)(iii) is re-designated as 40 CFR
98.234(f)(8)(ii)(A).  40 CFR 98.234(f)(8)(iv) is re-designated as 40 CFR
98.234(f)(8)(ii)(B).  40 CFR 98.234(f)(8)(v) is re-designated as 40 CFR
98.234(f)(8)(ii)(C).  40 CFR 98.234(f)(8)(v)(C) is re-designated as 40
CFR 98.234(f)(8)(iii).

The Administrator has 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”).  

IV. 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. 
These amendments affect provisions in the rule related to best available
monitoring methods, which is an optional provision and is not mandatory.
 Furthermore, the proposed amendments would significantly reduce the
administrative burden on industry by removing the requirement to make a
formal application to use best available monitoring methods in 2011. 
However, the Office of Management and Budget (OMB) has previously
approved the information collection requirements contained in the
existing regulations, 40 CFR 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 EPA's regulations in 40 CFR are listed in 40 CFR part 9.  The ICR
number for 40 CFR part 98, subpart W is 2376.03. 

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 proposed 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 today’s proposed rule 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 analyses is to identify and
address regulatory alternatives “which minimize any significant
economic impact of the rule on small entities.” 5 USC 603 and 604.
Thus, an agency may certify that a rule will not have a significant
economic impact on a substantial number of small entities if the rule
relieves regulatory burden, or otherwise has a positive economic effect
on all of the small entities subject to the rule.  	

Based on these proposed amendments, certain companies would be granted
additional time to use BAMM during 2011 without being required to submit
an application for approval to the Administrator. In addition, these
proposed amendments increase the scope of the types of companies who
would be granted the option to use BAMM in 2011 without being required
to submit an application for approval to the Administrator.  Finally,
companies who choose to request BAMM for 2012 and beyond would be given
additional time by which they would be required to submit their
application to the EPA Administrator for approval.  We have therefore
concluded that these proposed amendments will relieve regulatory burden
for all affected small entities.  We continue to be interested in the
potential impacts of the proposed rule on small entities and welcome
comments on issues related to such impacts.

D.  Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C.
1531–1538, requires Federal agencies, unless otherwise prohibited by
law, to assess the effects of their regulatory actions on State, local,
and Tribal governments and the private sector.  Federal agencies must
also develop a plan to provide notice to small governments that might be
significantly or uniquely affected by any regulatory requirements.  The
plan must enable officials of affected small governments to have
meaningful and timely input in the development of EPA regulatory
proposals with significant Federal intergovernmental mandates and must
inform, educate, and advise small governments on compliance with the
regulatory requirements. 

The proposed rule amendments do not contain a Federal mandate that may
result in expenditures of $100 million or more for State, local, and
tribal governments, in the aggregate, or the private sector in any one
year.  Thus, the proposed rule amendments are not subject to the
requirements of section 202 and 205 of the UMRA.  This rule 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.  

The proposed amendments will not impose any new requirements that are
not currently required for 40 CFR part 98, and the rule amendments would
not unfairly apply to small governments.  Therefore, this action is not
subject to the requirements of section 203 of the UMRA. 

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 levels of government, as
specified in Executive Order 13132.  

These amendments apply to an optional provision in the final rule for
subpart W, which applies to petroleum and natural gas facilities that
emit greenhouse gases.  Few, if any, State or local government
facilities would be affected.  This regulation 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).  The proposed rule
amendments would not result in any changes to the current requirements
of 40 CFR part 98 subpart W.  The amendments proposed in this rule only
apply 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, 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.D 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

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 No. 104-113, 12(d) (15 U.S.C. 272 note)
directs 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 EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards. 

This proposed rulemaking does not involve technical standards. 
Therefore, 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.  

EPA has determined that this proposed rule 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.

List of Subjects in 40 CFR Part 98

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

Date:				

					

Lisa P. Jackson, 

Administrator.

For the reasons discussed in the preamble, EPA proposes to amend 40 CFR
part 98 as follows:

PART 98 [AMENDED]

1.  The authority citation for part 98 continues to read as follows:

Authority:  42 U.S.C. 7401–7671q.

Subpart W [Amended]

2.  Section 98.234 is amended as follows:

a.  By revising paragraph (f)(2) introductory text. 

b.  By revising paragraph (f)(3) introductory text. 

c.  By revising paragraph (f)(4) introductory text. 

d.  By revising paragraph (f)(5).

e.  By removing and reserving paragraph (f)(6).

f.  By removing and reserving paragraph (f)(7).

g.  By revising paragraph (f)(8). 

§98.234 Monitoring and QA/QC Requirements

*	*	*	*	*

(f)	*	*	*

(2)  Best available monitoring methods for well-related emissions. 
During January 1, 2011 through December 31, 2011, owners and operators
may use best available monitoring methods for any well-related data that
cannot reasonably be measured according to the monitoring and QA/QC
requirements of this subpart.  These well-related sources are:

*	*	*	*	*

(3)  Best available monitoring methods for specified activity data. 
During January 1, 2011 through December 31, 2011, owners or operators
may use best available monitoring methods for activity data as listed
below that cannot reasonably be obtained according to the monitoring and
QA/QC requirements of this subpart.  These sources are:

*	*	*	*	*

(4)  Best available monitoring methods for leak detection and
measurement.  During January 1, 2011 through December 31, 2011, owners
or operators may use best available monitoring methods for sources
requiring leak detection and/or measurement.  These sources include:

*	*	*	*	*

(5)  Requests for the use of best available monitoring methods.

(i)  No request or approval by the Administrator is necessary to use
best available monitoring methods between January 1, 2011 and December
31, 2011 for the sources specified in paragraph (f)(2) of this section. 

(ii)  No request or approval by the Administrator is necessary to use
best available monitoring methods between January 1, 2011 and December
31, 2011 for sources specified in paragraph (f)(3) of this section. 

(iii)  No request or approval by the Administrator is necessary to use
best available monitoring methods between January 1, 2011 and December
31, 2011 for sources specified in paragraph (f)(4) of this section.  

(iv)  No request or approval by the Administrator is necessary to use
best available monitoring methods between January 1, 2011 and December
31, 2011 for sources not listed in paragraph (f)(2), (f)(3), and (f)(4)
of this section.

(6)  [Reserved]

(7)  [Reserved]

(8)  Requests for extension of the use of best available monitoring
methods beyond 2011 for sources listed in paragraphs (f)(2), (f)(3),
(f)(4), and (f)(5)(iv) of this section.  The owner or operator must
first provide the Administrator an initial electronic notification of
intent to submit an extension request for use of best available
monitoring methods beyond December 31, 2011 for unique or unusual
circumstances which include data collection methods that do not meet
safety regulations, a requirement being technically infeasible, or
counter to other local, State, or Federal regulations.  The owner or
operator must follow-up this initial notification with an extension
request containing the information specified in 98.234(f)(8)(ii). 
Facilities that submit both a timely notice of intent and  extension
request consistent with 98.234(f)(8)(ii) can automatically use BAMM
through June 30, 2012, for the specific parameters identified in their
notification of intent and BAMM request regardless of whether the BAMM
request is ultimately approved. Facilities that submit a notice of
intent but do not follow up with a BAMM request by March 30, 2012 cannot
automatically use BAMM after December 31, 2011.

(i)  Timing of Request.  The initial electronic notice of intent to
request BAMM must be submitted by December 31, 2011.  The completed
extension request must be submitted to the Administrator no later than
March 30, 2012. 

(ii)  Content of request.  Requests must contain the following
information: 

(A)  A list of specific source categories and parameters for which the
owner or operator is seeking use of best available monitoring methods.

(B)  A description of the unique or unusual circumstances, such as data
collection methods that do not meet safety regulations, technical
infeasibility, or specific laws or regulations that conflict with each
specific source for which an owner or operator is requesting use of best
available monitoring methodologies. 

(C)  A detailed explanation and supporting documentation of how and when
the owner or operator will receive the services or equipment to comply
with all of this subpart W reporting requirements.

(iii)  Approval criteria.  To obtain approval to use BAMM after June 30,
2012, the owner or operator must demonstrate to the Administrator’s
satisfaction that the owner or operator faces unique or unusual
circumstances such as data collection methods that do not meet safety
regulations, technical infeasibility, or legal issues rendering them
unable to meet the requirements of this subpart. 

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Mandatory Reporting of Greenhouse Gases: Petroleum and Natural Gas
Systems: Revisions to Best Available Monitoring Method Provisions

