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Proposed Rule2021-24202

Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review

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Published

November 15, 2021

Issuing agencies

Environmental Protection Agency

Abstract

This document comprises three distinct groups of actions under the Clean Air Act (CAA) which are collectively intended to significantly reduce emissions of greenhouse gases (GHGs) and other harmful air pollutants from the Crude Oil and Natural Gas source category. First, the EPA proposes to revise the new source performance standards (NSPS) for GHGs and volatile organic compounds (VOCs) for the Crude Oil and Natural Gas source category under the CAA to reflect the Agency's most recent review of the feasibility and cost of reducing emissions from these sources. Second, the EPA proposes emissions guidelines (EG) under the CAA, for states to follow in developing, submitting, and implementing state plans to establish performance standards to limit GHGs from existing sources (designated facilities) in the Crude Oil and Natural Gas source category. Third, the EPA is taking several related actions stemming from the joint resolution of Congress, adopted on June 30, 2021 under the Congressional Review Act (CRA), disapproving the EPA's final rule titled, "Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources Review," Sept. 14, 2020 ("2020 Policy Rule"). This proposal responds to the President's January 20, 2021, Executive order (E.O.) titled "Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis," which directed the EPA to consider taking the actions proposed here.

Full Text

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[Federal Register Volume 86, Number 217 (Monday, November 15, 2021)]
[Proposed Rules]
[Pages 63110-63263]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24202]

[[Page 63109]]

Vol. 86

Monday,

No. 217

November 15, 2021

Part II

Environmental Protection Agency

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40 CFR Part 60

Standards of Performance for New, Reconstructed, and Modified Sources
and Emissions Guidelines for Existing Sources: Oil and Natural Gas
Sector Climate Review; Proposed Rule

Federal Register / Vol. 86 , No. 217 / Monday, November 15, 2021 /
Proposed Rules

[[Page 63110]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[EPA-HQ-OAR-2021-0317; FRL-8510-02-OAR]
RIN 2060-AV16

Standards of Performance for New, Reconstructed, and Modified
Sources and Emissions Guidelines for Existing Sources: Oil and Natural
Gas Sector Climate Review

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: This document comprises three distinct groups of actions under
the Clean Air Act (CAA) which are collectively intended to
significantly reduce emissions of greenhouse gases (GHGs) and other
harmful air pollutants from the Crude Oil and Natural Gas source
category. First, the EPA proposes to revise the new source performance
standards (NSPS) for GHGs and volatile organic compounds (VOCs) for the
Crude Oil and Natural Gas source category under the CAA to reflect the
Agency's most recent review of the feasibility and cost of reducing
emissions from these sources. Second, the EPA proposes emissions
guidelines (EG) under the CAA, for states to follow in developing,
submitting, and implementing state plans to establish performance
standards to limit GHGs from existing sources (designated facilities)
in the Crude Oil and Natural Gas source category. Third, the EPA is
taking several related actions stemming from the joint resolution of
Congress, adopted on June 30, 2021 under the Congressional Review Act
(CRA), disapproving the EPA's final rule titled, ``Oil and Natural Gas
Sector: Emission Standards for New, Reconstructed, and Modified Sources
Review,'' Sept. 14, 2020 (``2020 Policy Rule''). This proposal responds
to the President's January 20, 2021, Executive order (E.O.) titled
``Protecting Public Health and the Environment and Restoring Science to
Tackle the Climate Crisis,'' which directed the EPA to consider taking
the actions proposed here.

DATES:
Comments. Comments must be received on or before January 14, 2022.
Under the Paperwork Reduction Act (PRA), comments on the information
collection provisions are best assured of consideration if the Office
of Management and Budget (OMB) receives a copy of your comments on or
before December 15, 2021.
Public hearing: The EPA will hold a virtual public hearing on
November 30, 2021 and December 1, 2021. See SUPPLEMENTARY INFORMATION
for information on the hearing.

ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OAR-2021-0317 by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>
(our preferred method). Follow the online instructions for submitting
comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#a8c985c9c6cc85da85ccc7cbc3cddce8cdd8c986cfc7de">[email&#160;protected]</a>. Include Docket ID No. EPA-
HQ-OAR-2021-0317 in the subject line of the message.
<bullet> Fax: (202) 566-9744. Attention Docket ID No. EPA-HQ-OAR-
2021-0317.
<bullet> Mail: U.S. Environmental Protection Agency, EPA Docket
Center, Docket ID No. EPA-HQ-OAR-2021-0317, Mail Code 28221T, 1200
Pennsylvania Avenue NW, Washington, DC 20460.
<bullet> Hand/Courier Delivery: EPA Docket Center, WJC West
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004.
The Docket Center's hours of operation are 8:30 a.m.-4:30 p.m., Monday-
Friday (except Federal holidays).
Instructions: All submissions received must include the Docket ID
No. for this rulemaking. Comments received may be posted without change
to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>, including any personal information
provided. For detailed instructions on sending comments and additional
information on the rulemaking process, see the ``Public Participation''
heading of the SUPPLEMENTARY INFORMATION section of this document. Out
of an abundance of caution for members of the public and our staff, the
EPA Docket Center and Reading Room are closed to the public, with
limited exceptions, to reduce the risk of transmitting COVID-19. Our
Docket Center staff will continue to provide remote customer service
via email, phone, and webform. We encourage the public to submit
comments via <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> or email, as there may be a
delay in processing mail and faxes. Hand deliveries and couriers may be
received by scheduled appointment only. For further information on EPA
Docket Center services and the current status, please visit us online
at <a href="https://www.epa.gov/dockets">https://www.epa.gov/dockets</a>.

FOR FURTHER INFORMATION CONTACT: For questions about this proposed
action, contact Ms. Karen Marsh, Sector Policies and Programs Division
(E143-05), Office of Air Quality Planning and Standards, U.S.
Environmental Protection Agency, Research Triangle Park, North Carolina
27711; telephone number: (919) 541-1065; fax number: (919) 541-0516;
and email address: <a href="/cdn-cgi/l/email-protection#abc6cad9d8c385c0cad9cec5ebcedbca85ccc4dd">[email&#160;protected]</a> or Ms. Amy Hambrick, Sector
Policies and Programs Division (E143-05), Office of Air Quality
Planning and Standards, Environmental Protection Agency, Research
Triangle Park, North Carolina 27711, telephone number: (919) 541-0964;
facsimile number: (919) 541-3470; email address: <a href="/cdn-cgi/l/email-protection#bad2dbd7d8c8d3d9d194dbd7c3fadfcadb94ddd5cc">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:
Participation in virtual public hearing. Please note that the EPA
is deviating from its typical approach for public hearings, because the
President has declared a national emergency. Due to the current Centers
for Disease Control and Prevention (CDC) recommendations, as well as
state and local orders for social distancing to limit the spread of
COVID-19, the EPA cannot hold in-person public meetings at this time.
The public hearing will be held via virtual platform on November
30, 2021, and December 1, 2021, and will convene at 11:00 a.m. Eastern
Time (ET) and conclude at 9:00 p.m. ET each day. On each hearing day,
the EPA may close a session 15 minutes after the last pre-registered
speaker has testified if there are no additional speakers. The EPA will
announce further details at <a href="https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry">https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry</a>. If the EPA receives a high
volume of registrations for the public hearing, we may continue the
public hearing on December 2, 2021. The EPA does not intend to publish
a document in the Federal Register announcing the potential addition of
a third day for the public hearing or any other updates to the
information on the hearing described in this document. Please monitor
<a href="https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry">https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry</a> for any updates to the information described in this document,
including information about the public hearing. For information or
questions about the public hearing, please contact the public hearing
team at (888) 372-8699 or by email at <a href="/cdn-cgi/l/email-protection#94c7c4c4d0e4e1f6f8fdf7fcf1f5e6fdfaf3d4f1e4f5baf3fbe2">[email&#160;protected]</a>.
The EPA will begin pre-registering speakers for the hearing upon
publication of this document in the Federal Register. The EPA will
accept registrations on an individual basis. To register to speak at
the virtual hearing, follow the directions at <a href="https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry">https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry</a> or contact the
public hearing team at (888) 372-

[[Page 63111]]

8699 or by email at <a href="/cdn-cgi/l/email-protection#c596959581b5b0a7a9aca6ada0a4b7acaba285a0b5a4eba2aab3">[email&#160;protected]</a>. The last day to pre-
register to speak at the hearing will be November 24, 2021. Prior to
the hearing, the EPA will post a general agenda that will list pre-
registered speakers in approximate order at: <a href="https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry">https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry</a>.
The EPA will make every effort to follow the schedule as closely as
possible on the day of the hearing; however, please plan for the
hearings to run either ahead of schedule or behind schedule.
Each commenter will have 5 minutes to provide oral testimony. The
EPA encourages commenters to provide the EPA with a copy of their oral
testimony electronically (via email) by emailing it to
<a href="/cdn-cgi/l/email-protection#3954584b4a511752584b5c57795c4958175e564f">[email&#160;protected]</a> and <a href="/cdn-cgi/l/email-protection#2149404c435348424a0f404c58614451400f464e57">[email&#160;protected]</a>. The EPA also recommends
submitting the text of your oral testimony as written comments to the
rulemaking docket.
The EPA may ask clarifying questions during the oral presentations
but will not respond to the presentations at that time. Written
statements and supporting information submitted during the comment
period will be considered with the same weight as oral testimony and
supporting information presented at the public hearing.
If you require the services of an interpreter or a special
accommodation such as audio description, please pre-register for the
hearing with the public hearing team and describe your needs by
November 22, 2021. The EPA may not be able to arrange accommodations
without advanced notice.
Docket. The EPA has established a docket for this rulemaking under
Docket ID No. EPA-HQ-OAR-2021-0317. All documents in the docket are
listed in <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>. Although listed, some
information is not publicly available, e.g., Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute. Certain other material, such as copyrighted material, is
not placed on the internet and will be publicly available only in hard
copy. With the exception of such material, publicly available docket
materials are available electronically in <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>.
Instructions. Direct your comments to Docket ID No. EPA-HQ-OAR-
2021-0317. The EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>, including any personal
information provided, unless the comment includes information claimed
to be CBI or other information whose disclosure is restricted by
statute. Do not submit information that you consider to be CBI or
otherwise protected through <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> or email. This
type of information should be submitted by mail as discussed below.
The EPA may publish any comment received to its public docket.
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, the full EPA
public comment policy, information about CBI or multimedia submissions,
and general guidance on making effective comments, please visit <a href="https://www.epa.gov/dockets/commenting-epa-dockets">https://www.epa.gov/dockets/commenting-epa-dockets</a>.
The <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> website allows you to submit your
comment anonymously, which means the EPA will not know your identity or
contact information unless you provide it in the body of your comment.
If you send an email comment directly to the EPA without going through
<a href="https://www.regulations.gov/">https://www.regulations.gov/</a>, your email 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, the EPA recommends that you include your name and
other contact information in the body of your comment and with any
digital storage media you submit. If the EPA cannot read your comment
due to technical difficulties and cannot contact you for clarification,
the EPA may not be able to consider your comment. Electronic files
should not include special characters or any form of encryption and be
free of any defects or viruses. For additional information about the
EPA's public docket, visit the EPA Docket Center homepage at <a href="https://www.epa.gov/dockets">https://www.epa.gov/dockets</a>.
The EPA is temporarily suspending its Docket Center and Reading
Room for public visitors, with limited exceptions, to reduce the risk
of transmitting COVID-19. Our Docket Center staff will continue to
provide remote customer service via email, phone, and webform. We
encourage the public to submit comments via <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> as there may be a delay in processing mail and
faxes. Hand deliveries or couriers will be received by scheduled
appointment only. For further information and updates on EPA Docket
Center services, please visit us online at <a href="https://www.epa.gov/dockets">https://www.epa.gov/dockets</a>.
The EPA continues to carefully and continuously monitor information
from the CDC, local area health departments, and our Federal partners
so that we can respond rapidly as conditions change regarding COVID-19.
Submitting CBI. Do not submit information containing CBI to the EPA
through <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> or email. Clearly mark the part or
all of the information that you claim to be CBI. For CBI information on
any digital storage media that you mail to the EPA, mark the outside of
the digital storage media as CBI and then identify electronically
within the digital storage media the specific information that is
claimed as CBI. In addition to one complete version of the comments
that includes information claimed as CBI, you must submit a copy of the
comments that does not contain the information claimed as CBI directly
to the public docket through the procedures outlined in Instructions
above. If you submit any digital storage media that does not contain
CBI, mark the outside of the digital storage media clearly that it does
not contain CBI. Information not marked as CBI will be included in the
public docket and the EPA's electronic public docket without prior
notice. Information marked as CBI will not be disclosed except in
accordance with procedures set forth in 40 CFR part 2. Send or deliver
information identified as CBI only to the following address: OAQPS
Document Control Officer (C404-02), OAQPS, U.S. Environmental
Protection Agency, Research Triangle Park, North Carolina 27711,
Attention Docket ID No. EPA-HQ-OAR-2021-0317. Note that written
comments containing CBI submitted by mail may be delayed and no hand
deliveries will be accepted.
Preamble acronyms and abbreviations. We use multiple acronyms and
terms in this preamble. While this list may not be exhaustive, to ease
the reading of this preamble and for reference purposes, the EPA
defines the following terms and acronyms here:

ACE Affordable Clean Energy rule
AEO Annual Energy Outlook
AMEL alternate means of emissions limitation
ANGA American Natural Gas Alliance
ANSI American National Standards Institute
APCD air pollution control devices
API American Petroleum Institute
ARPA-E Advanced Research Projects Agency-Energy
ASME American Society of Mechanical Engineers

[[Page 63112]]

ASTM American Society for Testing and Materials
AVO audio, visual, olfactory
BACT best achievable control technology
BOEM Bureau of Ocean Energy Management
BLM Bureau of Land Management
BMP best management practices
boe barrels of oil equivalents
BSER best system of emission reduction
BTEX benzene, toluene, ethylbenzene, and xylenes
CAA Clean Air Act
CBI Confidential Business Information
CDC Center for Disease Control
CDX EPA's Central Data Exchange
CEDRI Compliance and Emissions Data Reporting Interface
CFR Code of Federal Regulations
CH<INF>4</INF> methane
cm centimeter
CPI consumer price index
CPI-U consumer price index urban
CO carbon monoxide
COPD chronic obstructive pulmonary disease
CO<INF>2</INF> carbon dioxide
CO<INF>2</INF> Eq. carbon dioxide equivalent
COA condition of approval
COS carbonyl sulfide
CRA Congressional Review Act
CS<INF>2</INF> carbon disulfide
CVS closed vent systems
DC direct current
DOE Department of Energy
DOI Department of the Interior
DOT Department of Transportation
EAV equivalent annualized value
EDF Environmental Defense Fund
EG emission guidelines
ECOS Environmental Council of the States
EGU electricity generating units
EIA U.S. Energy Information Administration
EJ environmental justice
EO Executive Order
EPA Environmental Protection Agency
ERT Electronic Reporting Tool
FERC The U.S. Federal Energy Regulatory Commission
fpm feet per minute
GC gas chromatograph
GHGs greenhouse gases
GHGI Inventory of U.S. Greenhouse Gas Emissions and Sinks
GHGRP Greenhouse Gas Reporting Program
GRI Gas Research Institute
GWP global warning potential
HAP hazardous air pollutant(s)
HC hydrocarbons
HFC hydrofluorocarbons
H<INF>2</INF>S hydrogen sulfide
ICR Information Collection Request
IOGCC Interstate Oil and Gas Compact Commission
IPCC Intergovernmental Panel on Climate Change
IR infrared
IRFA initial regulatory flexibility analysis
kt kilotons
kg kilograms
low-e low emission
LDAR leak detection and repair
Mcf thousand cubic feet
MMT million metric tons
MRR monitoring, recordkeeping, and reporting
MW megawatt
NAAQS National Ambient Air Quality Standards
NAICS North American Industry Classification System
NCA4 2017-2018 Fourth National Climate Assessment
NEI National Emissions Inventory
NEMS National Energy Modeling System
NESHAP National Emissions Standards for Hazardous Air Pollutants
NGL natural gas liquid
NGO non-governmental organization
NOAA National Oceanic and Atmospheric Administration
NO<INF>X</INF> nitrogen oxides
NSPS new source performance standards
NTTAA National Technology Transfer and Advancement Act
OCSLA The Outer Continental Shelf Lands Act
OAQPS Office of Air Quality Planning and Standards
OIG Office of the Inspector General
OGI optical gas imaging
OMB Office of Management and Budget
PE professional engineer
PFCs perfluorocarbons
PHMSA Pipeline and Hazardous Materials Safety Administration
PM particulate matter
PM<INF>2.5</INF> PM with a diameter of 2.5 micrometers or less
ppb parts per billion
ppm parts per million
PRA Paperwork Reduction Act
PRD pressure release device
PRV pressure release valve
PSD Prevention of Significant Deterioration
psig pounds per square inch gauge
PTE potential to emit
PV present value
REC reduced emissions completion
RFA Regulatory Flexibility Act
RIA Regulatory Impact Analysis
RTC response to comments
SBAR Small Business Advocacy Review
SC-CH<INF>4</INF> social cost of methane
SCF significant contribution finding
scf standard cubic feet
scfh standard cubic feet per hour
scfm standard cubic feet per minute
SF<INF>6</INF> sulfur hexafluoride
SIP State Implementation Plan
SO<INF>2</INF> sulfur dioxide
SO<INF>X</INF> sulfur oxides
tpy tons per year
D.C. Circuit U.S. Court of Appeals for the District of Columbia
Circuit
TAR Tribal Authority Rule
TIP Tribal Implementation Plan
TSD technical support document
TTN Technology Transfer Network
UAS unmanned aircraft systems
UIC underground injection control
UMRA Unfunded Mandates Reform Act
U.S. United States
USGCRP U.S. Global Change Research Program
USGS U.S. Geologic Survey
VCS Voluntary Consensus Standards
VOC volatile organic compounds
VRD vapor recovery device
VRU vapor recovery unit

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

I. Executive Summary
A. Purpose of the Regulatory Action
B. Summary of the Major Provisions of This Regulatory Action
C. Costs and Benefits
II. General Information
A. Does this action apply to me?
B. How do I obtain a copy of this document, background
information, other related information?
III. Air Emissions From the Crude Oil and Natural Gas Sector and
Public Health and Welfare
A. Impacts of GHGs, VOC and SO<INF>2</INF> Emissions on Public
Health and Welfare
B. Oil and Natural Gas Industry and Its Emissions
IV. Statutory Background and Regulatory History
A. Statutory Background of CAA Sections 111(b), 111(d) and
General Implementing Regulations
B. What is the regulatory history and litigation background of
NSPS and EG for the oil and natural gas industry?
C. Effect of the CRA
V. Related Emissions Reduction Efforts
A. Related State Actions and Other Federal Actions Regulating
Oil and Natural Gas Sources
B. Industry and Voluntary Actions To Address Climate Change
VI. Environmental Justice Considerations, Implications, and
Stakeholder Outreach
A. Environmental Justice and the Impacts of Climate Change
B. Impacted Stakeholders
C. Outreach and Engagement
D. Environmental Justice Considerations
VII. Other Stakeholder Outreach
A. Educating the Public, Listening Sessions, and Stakeholder
Outreach
B. EPA Methane Detection Technology Workshop
C. How is this information being considered in this proposal?
VIII. Legal Basis for Proposal Scope
A. Recent History of the EPA's Regulation of Oil and Gas Sources
and Congress's Response
B. Implications of Congress's Disapproval of the 2020 Policy
Rule
C. Alternative Conclusion Affirming the Legal Interpretations in
the 2016 Rule
D. Impacts on Regulation of Methane Emissions From Existing
Sources
IX. Overview of Control and Control Costs
A. Control of Methane and VOC Emissions in the Crude Oil and
Natural Gas Source Category--Overview
B. How does EPA evaluate control costs in this action?
X. Summary of Proposed Action for NSPS OOOOa
A. Amendments to Fugitive Emissions Monitoring Frequency
B. Technical and Implementation Amendments
XI. Summary of Proposed NSPS OOOOb and EG OOOOc
A. Fugitive Emissions From Well Sites and Compressor Stations

[[Page 63113]]

B. Storage Vessels
C. Pneumatic Controllers
D. Well Liquids Unloading Operations
E. Reciprocating Compressors
F. Centrifugal Compressors
G. Pneumatic Pumps
H. Equipment Leaks at Natural Gas Processing Plants
I. Well Completions
J. Oil Wells With Associated Gas
K. Sweetening Units
L. Centralized Production Facilities
M. Recordkeeping and Reporting
N. Prevention of Significant Deterioration and Title V
Permitting
XII. Rationale for Proposed NSPS OOOOb and EG OOOOc
A. Proposed Standards for Fugitive Emissions From Well Sites and
Compressor Stations
B. Proposed Standards for Storage Vessels
C. Proposed Standards for Pneumatic Controllers
D. Proposed Standards for Well Liquids Unloading Operations
E. Proposed Standards for Reciprocating Compressors
F. Proposed Standards for Centrifugal Compressors
G. Proposed Standards for Pneumatic Pumps
H. Proposed Standards for Equipment Leaks at Natural Gas
Processing Plants
I. Proposed Standards for Well Completions
J. Proposed Standards for Oil Wells With Associated Gas
K. Proposed Standards for Sweetening Units
XIII. Solicitations for Comment on Additional Emission Sources and
Definitions
A. Abandoned Wells
B. Pigging Operations and Related Blowdown Activities
C. Tank Truck Loading
D. Control Device Efficiency and Operation
E. Definition of Hydraulic Fracturing
XIV. State, Tribal, and Federal Plan Development for Existing
Sources
A. Overview
B. Components of EG
C. Establishing Standards of Performance in State Plans
D. Components of State Plan Submission
E. Timing of State Plan Submissions and Compliance Times
F. EPA Action on State Plans and Promulgation of Federal Plans
G. Tribes and The Planning Process Under CAA Section 111(d)
XV. Prevention of Significant Deterioration and Title V Permitting
A. Overview
B. Applicability of Tailoring Rule Thresholds Under the PSD
Program
C. Implications for Title V Program
XVI. Impacts of This Proposed Rule
A. What are the air impacts?
B. What are the energy impacts?
C. What are the compliance costs?
D. What are the economic and employment impacts?
E. What are the benefits of the proposed standards?
XVII. 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 (PRA)
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 Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act (NTTAA)
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations

I. Executive Summary

A. Purpose of the Regulatory Action

This proposed rulemaking takes a significant step forward in
mitigating climate-destabilizing pollution and protecting human health
by reducing GHG and VOC emissions from the Oil and Natural Gas
Industry,\1\ specifically the Crude Oil and Natural Gas source
category.\2\ The Oil and Natural Gas Industry is the United States'
largest industrial emitter of methane, a highly potent GHG. Human
activity-related emissions of methane are responsible for about one
third of the warming due to well-mixed GHGs and constitute the second
most important warming agent arising from human activity after carbon
dioxide (a well-mixed gas is one with an atmospheric lifetime longer
than a year or two, which allows the gas to be mixed around the world,
meaning that the location of emission of the gas has little importance
in terms of its impacts). According to the Intergovernmental Panel on
Climate Change (IPCC), strong, rapid, and sustained methane reductions
are critical to reducing near-term disruption of the climate system and
are a vital complement to reductions in other GHGs that are needed to
limit the long-term extent of climate change and its destructive
impacts. The Oil and Natural Gas Industry also emits other harmful
pollutants in varying concentrations and amounts, including carbon
dioxide (CO<INF>2</INF>), VOC, sulfur dioxide (SO<INF>2</INF>),
nitrogen oxide (NO<INF>X</INF>), hydrogen sulfide (H<INF>2</INF>S),
carbon disulfide (CS<INF>2</INF>), and carbonyl sulfide (COS), as well
as benzene, toluene, ethylbenzene, and xylenes (this group is commonly
referred to as ``BTEX''), and n-hexane.
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\1\ The EPA characterizes the Oil and Natural Gas Industry
operations as being generally composed of four segments: (1)
Extraction and production of crude oil and natural gas (``oil and
natural gas production''), (2) natural gas processing, (3) natural
gas transmission and storage, and (4) natural gas distribution.
\2\ The EPA defines the Crude Oil and Natural Gas source
category to mean (1) crude oil production, which includes the well
and extends to the point of custody transfer to the crude oil
transmission pipeline or any other forms of transportation; and (2)
natural gas production, processing, transmission, and storage, which
include the well and extend to, but do not include, the local
distribution company custody transfer station. For purposes of this
proposed rulemaking, for crude oil, the EPA's focus is on operations
from the well to the point of custody transfer at a petroleum
refinery, while for natural gas, the focus is on all operations from
the well to the local distribution company custody transfer station
commonly referred to as the ``city-gate''.
---------------------------------------------------------------------------

Under the authority of CAA section 111, this rulemaking proposes
comprehensive standards of performance for GHG emissions (in the form
of methane limitations) and VOC emissions for new, modified, and
reconstructed sources in the Crude Oil and Natural Gas source category,
including the production, processing, transmission and storage
segments. For designated facilities,\3\ this rulemaking proposes EG
containing presumptive standards for GHG in the form of methane
limitations. When finalized, States shall utilize these EG to submit to
the EPA plans that establish standards of performance for designated
facilities and provide for implementation and enforcement of such
standards. The EPA will provide support for States in developing their
plans to reduce methane emissions from designated facilities within the
Crude Oil and Natural Gas source category.
---------------------------------------------------------------------------

\3\ The term ``designated facility'' means ``any existing
facility which emits a designated pollutant and which would be
subject to a standard of performance for that pollutant if the
existing facility were an affected facility.'' See 40 CFR 60.21a(b).
---------------------------------------------------------------------------

The EPA is proposing these actions in accordance with its legal
obligations and authorities following a review directed by E.O. 13990,
``Protecting Public Health and the Environment and Restoring Science to
Tackle the Climate Crisis,'' issued on January 20, 2021. The EPA
intends for these proposed actions to address the far-reaching harmful
consequences and real economic costs of climate change. According to
the IPCC AR6 assessment, ``It is unequivocal that human influence has
warmed the atmosphere, ocean and land. Widespread and rapid changes in
the atmosphere, ocean, cryosphere and biosphere have occurred.'' The
IPCC AR6 assessment states these changes have led to increases in heat
waves and wildfire weather, reductions in air quality, more intense
hurricanes and

[[Page 63114]]

rainfall events, and rising sea level. These changes, along with future
projected changes, endanger the physical survival, health, economic
well-being, and quality of life of people living in the United States
(U.S.), especially those in the most vulnerable communities.
Methane is both the main component of natural gas and a potent GHG.
One ton of methane in the atmosphere has 80 times the warming impact of
a ton of CO<INF>2</INF>, and contributes to the creation of ground-
level ozone which is another greenhouse gas. Because methane has a
shorter lifetime than CO<INF>2</INF>, it has a smaller relative
impact--although still significantly greater than CO<INF>2</INF>--when
considering longer time periods. One standard metric is the 100-year
global warming potential (GWP), which is a measure of the climate
impact of emissions of one ton a greenhouse gas over 100 years relative
to the impact of the emissions of one ton of CO<INF>2</INF>. Even over
this long timeframe, methane has a 100-year GWP of almost 30. The IPCC
AR6 assessment found that ``Over time scales of 10 to 20 years, the
global temperature response to a year's worth of current emissions of
SLCFs (short lived climate forcer) is at least as large as that due to
a year's worth of CO<INF>2</INF> emissions.'' \4\ The IPCC estimated
that, depending on the reference scenario, collective reductions in
these SLCFs (methane, ozone precursors, and HFCs) could reduce warming
by 0.2 degrees Celsius ([deg]C) (more than one-third of a degree
Fahrenheit ([deg]F) in 2040 and 0.8 [deg]C (almost 1.5 [deg]F) by the
end of the century, which is important in the context of keeping
warming to well below 2 [deg]C (3.6 [deg]F). As methane is the most
important SLCF, this makes methane mitigation one of the best
opportunities for reducing near term warming. Emissions from human
activities have already more than doubled atmospheric methane
concentrations since 1750, and that concentration has been growing
larger at record rates in recent years.\5\ In the absence of additional
reduction policies, methane emissions are projected to continue rising
through at least 2040.
---------------------------------------------------------------------------

\4\ However, the IPCC AR6 assessment cautioned that ``The
effects of the SLCFs decay rapidly over the first few decades after
pulse emission. Consequently, on time scales longer than about 30
years, the net long-term temperature effects of sectors and regions
are dominated by CO<INF>2</INF>.''
\5\ Naik, V., S. Szopa, B. Adhikary, P. Artaxo, T. Berntsen,
W.D. Collins, S. Fuzzi, L. Gallardo, A. Kiendler 41 Scharr, Z.
Klimont, H. Liao, N. Unger, P. Zanis, 2021, Short-Lived Climate
Forcers. In: Climate Change 42 2021: The Physical Science Basis.
Contribution of Working Group I to the Sixth Assessment Report of
the 43 Intergovernmental Panel on Climate Change [Masson-Delmotte,
V., P. Zhai, A. Pirani, S.L. Connors, C. 44 P[eacute]an, S. Berger,
N. Caud, Y. Chen, L. Goldfarb, M.I. Gomis, M. Huang, K. Leitzell, E.
Lonnoy, J.B.R. 45 Matthews, T.K. Maycock, T. Waterfield, O.
Yelek[ccedil]i, R. Yu and B. Zhou (eds.)]. Cambridge University 46
Press. In Press.
---------------------------------------------------------------------------

Methane's radiative efficiency means that immediate reductions in
methane emissions, including from sources in the Crude Oil and Natural
Gas source category, can help reduce near-term warming. As natural gas
is comprised primarily of methane, every natural gas leak, or
intentional release of natural gas through venting or other processes,
constitutes a release of methane. Reducing human-caused methane
emissions, such as controlling natural gas leaks and releases as
proposed in these actions, would contribute substantially to global
efforts to limit temperature rise, aiding efforts to remain well below
2 [deg]C above pre-industrial levels. See preamble section III for
further discussion on the Crude Oil and Natural Gas Emissions and
Climate Change, including discussion of the GHGs, VOCs, and
SO<INF>2</INF> Emissions on Public Health and Welfare.
Methane and VOC emissions from the Crude Oil and Natural Gas source
category result from a variety of industry operations across the supply
chain. As natural gas moves through the necessarily interconnected
system of exploration, production, storage, processing, and
transmission that brings it from wellhead to commerce, emissions
primarily result from intentional venting, unintentional gas carry-
through (e.g., vortexing from separator drain, improper liquid level
settings, liquid level control valve on an upstream separator or
scrubber does not seat properly at the end of an automated liquid
dumping event, inefficient separation of gas and liquid phases occurs
upstream of tanks allowing some gas carry-through), routine
maintenance, unintentional fugitive emissions, flaring, malfunctions,
abnormal process conditions, and system upsets. These emissions are
associated with a range of specific equipment and practices, including
leaking valves, connectors, and other components at well sites and
compressor stations; leaks and vented emissions from storage vessels;
releases from natural gas-driven pneumatic pumps and controllers;
liquids unloading at well sites; and venting or under-performing
flaring of associated gas from oil wells. But technical innovations
have produced a range of technologies and best practices to monitor,
eliminate or minimize these emissions, which in many cases have the
benefit of reducing multiple pollutants at once and recovering saleable
product. These technologies and best practices have been deployed by
individual oil and natural gas companies, required by State
regulations, or reflected in regulations issued by the EPA and other
Federal agencies.
In this action, the EPA has taken a comprehensive analysis of the
available data from emission sources in the Crude Oil and Natural Gas
source category and the latest available information on control
measures and techniques to identify achievable, cost-effective measures
to significantly reduce emissions, consistent with the requirements of
section 111 of the CAA. If finalized and implemented, the actions
proposed in this rulemaking would lead to significant and cost-
effective reductions in climate and health-harming pollution and
encourage development and deployment of innovative technologies to
further reduce this pollution in the Crude Oil and Natural Gas source
category. The actions proposed in this rulemaking would:
<bullet> Update, strengthen, and expand current requirements under
CAA section 111(b) for methane and VOC emissions from new, modified,
and reconstructed facilities,
<bullet> establish new limits for methane, and VOC emissions from
new, modified, and reconstructed facilities that are not currently
regulated under CAA section 111(b),
<bullet> establish the first nationwide EG for States to limit
methane pollution from existing designated facilities in the source
category under CAA section 111(d), and
<bullet> take comment on additional sources of pollution that, with
understanding gained from more information, may offer opportunities for
emission reductions, which the EPA would present in a supplemental
rulemaking proposal under both CAA section 111(b) and (d).
In developing this proposal, the EPA drew on its own prior
experience in regulating sources in the Crude Oil and Natural Gas
source category under section 111 and other CAA programs; applied
lessons learned from States' regulatory efforts, the emission reduction
efforts of leading companies, and the EPA's long-standing voluntary
emission reduction programs; and reviewed the latest available
information about new and developing technologies, as well as, peer-
reviewed research from emission measurement campaigns across the U.S.
Further, the EPA undertook extensive pre-proposal outreach to the
public and to stakeholders, including three full days

[[Page 63115]]

of public listening sessions, roundtables with State energy and
environmental regulators, a two-day workshop on innovative methane
detection technologies, and a nonregulatory docket established in May
2021 to receive written comments. Through this outreach, the EPA heard
from diverse voices and perspectives including State and local
governments, Tribal nations, communities affected by oil and gas
pollution, environmental and public health organizations, and
representatives of the oil and natural gas industry, all of which
provided ideas and information that helped shape and inform this
proposal.
The EPA also considered community and environmental justice
implications in the development of this proposal and sought to ensure
equitable treatment and meaningful involvement of all people regardless
of race, color, national origin, or income in the process. The EPA
engaged and consulted representatives of frontline communities that are
directly affected by and particularly vulnerable to the climate and
health impacts of pollution from this source category through
interactions such as webinars, listening sessions and meetings. These
opportunities allowed the EPA to hear directly from the public,
especially overburdened and underserved communities, on the development
of the proposed rule and to factor these concerns into this proposal.
For example, in addition to establishing EG that extend fugitive
emission requirements to existing oil and natural gas facilities, the
EPA is proposing to expand leak detection programs already in effect
for new sources to include known sources of large emission events and
proposing to require more frequent monitoring at sites with more
emissions. The EPA is also taking comment on innovative mechanisms to
ensure compliance and minimize emissions, including the possibility of
providing a pathway for communities to detect and report large emitting
events that may require follow-up and mitigation by owners and
operators. The extensive pollution reduction measures in this proposal,
if finalized, would collectively reduce a suite of harmful pollutants
and their associated health impacts in communities adjacent to these
emission sources. Further, to help ensure that the needs and
perspectives of communities with environmental justice concerns are
considered as States develop plans to establish and implement standards
of performance for existing sources, the EPA is proposing to require
that States demonstrate they have undertaken meaningful outreach and
engagement with overburdened and underserved communities as part of
their State plan submissions under the EPA. A full discussion of the
Environmental Justice Considerations, Implications, and Stakeholder
Outreach can be found in section VI of the preamble. A full discussion
of Other Stakeholder Outreach is found in section VII of the preamble.
As described in more detail below, the EPA recognizes that several
States and other Federal agencies currently regulate the Oil and
Natural Gas Industry. The EPA also recognizes that these State and
other Federal agency regulatory programs have matured since the EPA
began implementing the current NSPS requirements in 2012 and 2016. The
EPA further acknowledges the technical innovations that the Oil and
Natural Gas Industry has made during the past decade; this industry
operates at a fast pace and changes constantly as technology evolves.
The EPA commends these efforts and recognizes States for their
innovative standards, alternative compliance options, and
implementation strategies, and intends these proposed actions to build
upon progress made by certain States and Federal agencies in reducing
GHG and VOC emissions. See preamble section V for fuller discussion of
Related State Actions and Other Federal Actions Regulating Oil and
Natural Gas Sources and Industry and Voluntary Actions to Address
Climate Change.
The EPA believes that a broad ensemble of mutually leveraging
efforts across all States and all Federal agencies is essential to
meaningfully address climate change effectively. As the Federal agency
with primary responsibility to protect human health and the
environment, the EPA has the unique responsibility and authority to
regulate harmful air pollutants emitted by the Crude Oil and Natural
Gas source category. The EPA recognizes that States and other Federal
agencies regulate in accordance with their respective legal authorities
and within their respective jurisdictions but collectively do not fully
and consistently address the range of sources and emission reduction
measures contained in this proposal. Direct Federal regulation of
methane from new, reconstructed, and modified sources in this category,
combined with approved State plans that are consistent with the EPA's
presumptive standards for designated facilities (existing sources),
will help reduce both climate- and other health-harming pollution from
a large number of sources that are either unregulated or from which
additional, cost-effective reductions are available, level the
regulatory playing field, and help promote technological innovation.
Throughout this action, unless noted otherwise, the EPA is
requesting comments on all aspects of the proposal to enable the EPA to
develop a final rule that, consistent with our responsibilities under
section 111 of the CAA, achieves the greatest possible reductions in
methane and VOC emissions while remaining achievable, cost effective,
and conducive to technological innovation. As a further step in the
rulemaking process and to solicit additional public input, the EPA
plans to issue a supplemental proposal and supplemental RIA for the
supplemental proposal to provide regulatory text for the proposed NSPS
OOOOb and EG OOOOc. In light of certain innovative elements of this
proposed rule and the EPA's request for information that would support
the regulation of additional sources in the Crude Oil and Natural Gas
source category as part of this rulemaking, the EPA is considering
including additional provisions in this supplemental proposal and RIA
based on information and comment collected in response to this
document.
As noted later in this preamble, the supplemental proposal may
address, among other issues: (1) Ways to mitigate methane from
abandoned wells, (2) measures to reduce emissions from pipeline pigging
operations and other pipeline blowdowns, (3) ways to minimize emissions
from tank truck loading operations, and (4) ways to strengthen
requirements to ensure proper operation and optimal performance of
control devices. In addition, and as noted in the solicitations of
comment in this document, the supplemental proposal may revisit and
refine certain provisions of this proposal in response to information
provided by the public. For instance, the EPA is seeking input on
multiple aspects of the proposed approach for fugitive emissions
monitoring at well sites, including the baseline emission threshold and
other criteria (such as the presence of specific types of malfunction-
prone equipment) that should be used to determine whether a well site
is required to undertake ongoing fugitive emissions monitoring; the
methodology for calculating baseline methane emissions and whether it
should account for malfunctions or improper operation of controls at
storage vessels; and ways to ensure that emissions from wells owned by
small businesses are addressed while still recognizing the greater
challenges that small businesses with less dedicated staff and
resources for

[[Page 63116]]

environmental compliance may have. The EPA is also seeking input on
ways to ensure that captured associated gas is collected for a useful
purpose rather than flared, and the feasibility of requiring broader
use of zero-emitting technology for pneumatic pumps.
Finally, the EPA is seeking comment and information on alternative
measurement technologies, which we are proposing to allow in the rule.
We have heard strong interest from various stakeholders on employing
new tools for methane identification and quantification, particularly
for large emission sources (commonly known as ``super-emitters'').
Information provided in response to this proposal may be used to
evaluate whether a change in BSER from the proposed quarterly OGI
monitoring to a monitoring program using alternative measurement
technologies is appropriate. Separate from the role of these
alternative measurement technologies in a regulatory monitoring
program, we are also soliciting comment on ways to structure a pathway
for communities to identify large emission events which owners or
operators would then be required to investigate, and mechanisms for the
collection and public dissemination of this information, for possible
further development as part of a supplemental proposal.
This preamble includes comment solicitations/requests on several
topics and issues. We have prepared a separate memorandum that presents
these comment requests by section and topic as a guide to assist
commenters in preparing comments. This memorandum can be obtained from
the Docket for this action (see Docket ID No. EPA-HQ-OAR-2021-0317).
The title of the memorandum is ``Standards of Performance for New,
Reconstructed, and Modified Sources and Emissions Guidelines for
Existing Sources: Oil and Natural Gas Sector Climate Review--Proposed
Rule Summary of Comment Solicitations.''

B. Summary of the Major Provisions of This Regulatory Action

This proposed rulemaking includes three distinct groups of actions
under the CAA that are each severable from the other. First, pursuant
to CAA 111(b)(1)(B), the EPA has reviewed, and is proposing revisions
to, the standards of performance for the Crude Oil and Natural Gas
source category published in 2016 and amended in 2020, codified at 40
CFR part 60, subpart OOOOa--Standards of Performance for Crude Oil and
Natural Gas Facilities for which Construction, Modification or
Reconstruction Commenced After September 18, 2015 (2016 NSPS OOOOa).
Specifically, the EPA is proposing to update, strengthen, and expand
the current requirements under CAA section 111(b) for methane and VOC
emissions from sources that commenced construction, modification, or
reconstruction after November 15, 2021. These proposed standards of
performance will be in a new subpart, 40 CFR part 60, subpart OOOOb
(NSPS OOOOb), and include standards for emission sources previously not
regulated under the 2016 NSPS OOOOa.
Second, pursuant to CAA 111(d), the EPA is proposing the first
nationwide EG for States to limit methane pollution from designated
facilities in the Crude Oil and Natural Gas source category. The EG
being proposed in this rulemaking will be in a new subpart, 40 CFR part
60, subpart OOOOc (EG OOOOc). The EG are designed to inform States in
the development, submittal, and implementation of State plans that are
required to establish standards of performance for GHGs from their
designated facilities in the Crude Oil and Natural Gas source category.
Third, the EPA is taking several related actions stemming from the
joint resolution of Congress, adopted on June 30, 2021 under the CRA,
disapproving the EPA's final rule titled, ``Oil and Natural Gas Sector:
Emission Standards for New, Reconstructed, and Modified Sources
Review,'' 85 FR 57018 (Sept. 14, 2020) (``2020 Policy Rule''). As
explained in Section X of this action (Summary of Proposed Action for
NSPS OOOOa), the EPA is proposing amendments to the 2016 NSPS OOOOa to
address (1) certain inconsistencies between the VOC and methane
standards resulting from the disapproval of the 2020 Policy Rule, and
(2) certain determinations made in the final rule titled ``Oil and
Natural Gas Sector: Emission Standards for New, Reconstructed, and
Modified Sources Reconsideration,'' 85 FR 57398 (September 15, 2020)
(2020 Technical Rule), specifically with respect to fugitive emissions
monitoring at low production well sites and gathering and boosting
stations. With respect to the latter, as described below, the EPA is
proposing to rescind provisions of the 2020 Technical Rule that were
not supported by the record for that rule, or by our subsequent
information and analysis. The regulatory text for these proposed
amendments is included in the docket for this rulemaking at Docket ID
EPA-HQ-OAR-2021-0317.
In addition, in the final rule for this action, the EPA will update
the NSPS OOOO and NSPS OOOOa provisions in the Code of Federal
Regulations (CFR) to reflect the Congressional Review Act (CRA)
resolution's disapproval of the final 2020 Policy Rule, specifically,
the reinstatement of the NSPS OOOO and NSPS OOOOa requirements that the
2020 Policy Rule repealed but that came back into effect immediately
upon enactment of the CRA resolution. It should be noted that these
requirements have come back into effect already even though the EPA has
not yet updated the CFR text to reflect them.\6\ These updates to the
CFR text are also included in the docket for this rulemaking at Docket
ID EPA-HQ-OAR-2021-0317 for public awareness, but the EPA is not
soliciting comment on them as they merely reflect current law. Under 5
U.S.C. 553(b)(3)(B), notice and comment is not required ``when the
agency for good cause finds . . . that notice and public procedure
thereon are . . . unnecessary . . . ,'' \7\ and, as just noted, notice
and comment is not necessary for these updates. The EPA is waiting to
make these updates to the CFR text until the final rule simply because
it would be more efficient and clearer to amend the CFR once at the end
of this rulemaking process to account for all changes to the 2012 NSPS
OOOO (77 FR 49490, August 16, 2012) and 2016 NSPS OOOOa at the same
time.
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\6\ See Congressional Review Act Resolution to Disapprove EPA's
2020 Oil and Gas Policy Rule Questions and Answers (June 30, 2021)
available at <a href="https://www.epa.gov/system/files/documents/2021-07/qa_cra_for_2020_oil_and_gas_policy_rule.6.30.2021.pdf">https://www.epa.gov/system/files/documents/2021-07/qa_cra_for_2020_oil_and_gas_policy_rule.6.30.2021.pdf</a>.
\7\ 5 U.S.C. 553(b)(3)(B) is applicable to rules promulgated
under CAA section 111(b), under CAA section 307(d)(1) (flush
language at end).
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As CAA section 111(a)(1) requires, the standards of performance
being proposed in this action reflect ``the degree of emission
limitation achievable through the application of the best system of
emission reduction [BSER] which (taking into account the cost of
achieving such reduction and any non-air quality health and
environmental impact and energy requirement) the Administrator
determines has been adequately demonstrated.'' This action further
proposes EG for designated facilities, under which States must submit
plans which establish standards of performance that reflect the degree
of emission limitation achievable through application of the BSER, as
identified in the final EG. In this proposed rulemaking, we evaluated
potential control measures available for the affected facilities, the
emission reductions achievable through these measures, and employed
multiple approaches to evaluate the reasonableness of control costs
associated with the options under

[[Page 63117]]

consideration. For example, in evaluating controls for reducing VOC and
methane emissions from new sources, we considered a control measure's
cost-effectiveness under both a ``single pollutant cost-effectiveness''
approach and a ``multipollutant cost-effectiveness'' approach, to
appropriately consider that the systems of emission reduction
considered in this rule typically achieve reductions in multiple
pollutants at once and secure a multiplicity of climate and public
health benefits. For a detailed discussion of the EPA's consideration
of this and other BSER statutory elements, please see sections IV and
IX of this preamble.

Table 1--Applicability Dates for Proposed Subparts Addressed in This
Proposed Action
------------------------------------------------------------------------
Subpart Source type Applicable dates
------------------------------------------------------------------------
40 CFR part 60, subpart OOOO New, modified, or After August 23,
reconstructed 2011 and on or
sources. before September
18, 2015.
40 CFR part 60, subpart New, modified, or After September 18,
OOOOa. reconstructed 2015 and on or
sources. before November 15,
2021.
40 CFR part 60, subpart New, modified, or After November 15,
OOOOb. reconstructed 2021.
sources.
40 CFR part 60, subpart Existing sources.... On or before
OOOOc. November 15, 2021.
------------------------------------------------------------------------

1. Proposed Standards for New, Modified and Reconstructed Sources After
November 15, 2021 (Proposed NSPS OOOOb)
As described in sections XI and XII of this preamble, under the
authority of CAA section 111(b)(1)(B) the EPA has reviewed the VOC, GHG
(in the form of limitations on methane), and SO<INF>2</INF> standards
in the 2016 NSPS OOOOa (as amended in 2020 by the Technical Rule).
Based on its review, the EPA is proposing revisions to the standards
for certain emissions sources to reflect the updated BSER for those
affected sources. Where our analyses show that the BSER for an affected
source remains the same, the EPA is proposing to retain the current
standard for that affected source. In addition, the EPA is proposing
methane and VOC standards for several new sources that are currently
unregulated. The proposed NSPS described above would apply to new,
modified, and reconstructed emission sources across the Crude Oil and
Natural Gas source category, including the production, processing,
transmission, and storage segments, for which construction,
reconstruction, or modification commenced after November 15, 2021,
which is the date of publication of the proposed revisions to the NSPS.
In particular, this action proposes to retain the 2016 NSPS OOOOa
SO<INF>2</INF> performance standard for sweetening units and the 2016
OOOOa VOC and methane performance standards for well completions and
centrifugal compressors; proposes revisions to strengthen the 2016 NSPS
OOOOa VOC and methane standards addressing fugitive emissions from well
sites and compressor stations, storage vessels, pneumatic controllers,
reciprocating compressors, pneumatic pumps, and equipment leaks at
natural gas processing plants; and proposes new VOC and methane
standards for well liquids unloading operations and intermittent vent
pneumatic controllers, and oil wells with associated gas previously not
regulated in the 2016 NSPS OOOOa. A summary of the proposed BSER
determination and proposed NSPS for new, modified, and reconstructed
sources (NSPS OOOOb) is presented in Table 2. See sections XI and XII
of this preamble for a complete discussion of BSER determination and
proposed NSPS requirements.
This proposal also solicits certain information relevant to the
potential identification of additional emissions sources as affected
facilities. Specifically, the EPA is evaluating the potential for
establishing standards for abandoned and unplugged wells, blowdown
emissions associated with pipeline pig launchers and receivers, and
tank truck loading operations. While the EPA has assessed these sources
based on currently available information, we have determined that we
need additional information to evaluate BSER and to propose NSPS for
these emissions sources. A full discussion of the solicitation for
comment regarding these additional emission sources is found in section
XIII of the preamble.
2. Proposed EG for Sources Constructed Prior to November 15, 2021
(Proposed EG OOOOc)
As described in sections XI and XII of this preamble, under the
authority of CAA section 111(d), the EPA is proposing the first
nationwide EG for GHG (in the form of methane limitations) for the
Crude Oil and Natural Gas source category, including the production,
processing, transmission, and storage segments (EG OOOOc). When the EPA
establishes NSPS for a source category, the EPA is required to issue EG
to reduce emissions of certain pollutants from existing sources in that
same source category. In such circumstances, under CAA section 111(d),
the EPA must issue regulations to establish procedures under which
States submit plans to establish, implement, and enforce standards of
performance for existing sources for certain air pollutants to which a
Federal NSPS would apply if such existing source were a new source.
Thus, the issuance of CAA section 111(d) final EG does not impose
binding requirements directly on sources but instead provides
requirements for states in developing their plans. Although State plans
bear the obligation to establish standards of performance, under CAA
sections 111(a)(1) and 111(d), those standards of performance must
reflect the degree of emission limitation achievable through the
application of the BSER as determined by the Administrator. As provided
in section 111(d), a State may choose to take into account remaining
useful life and other factors in applying a standard of performance to
a particular source, consistent with the CAA, the EPA's implementing
regulations, and the final EG.
In this action, the EPA is proposing BSER determinations and the
degree of limitation achievable through application of the BSER for
certain existing equipment, processes, and activities across the Crude
Oil and Natural Gas source category. Section XIV of this preamble
discusses the components of EG, including the steps, requirements, and
considerations associated with the development, submittal, and
implementation of State, Tribal, and Federal plans, as appropriate. For
the EG, the EPA is proposing to translate the degree of emission
limitation achievable through application of the BSER (i.e., level of
stringency) into presumptive standards that States may use in the
development of State plans for specific designated facilities. By doing
this, the EPA has formatted the proposed EG such that if a State
chooses to adopt these

[[Page 63118]]

presumptive standards, once finalized, as the standards of performance
in a State plan, the EPA could approve such a plan as meeting the
requirements of CAA section 111(d) and the finalized EG, if the plan
meets all other applicable requirements. In this way, the presumptive
standards included in the EG serve a function similar to that of a
model rule,\8\ because they are intended to assist States in developing
their plan submissions by providing States with a starting point for
standards that are based on general industry parameters and
assumptions. The EPA believes that providing these presumptive
standards will create a streamlined approach for States in developing
plans and the EPA in evaluating State plans. However, the EPA's action
on each State plan submission is carried out via rulemaking, which
includes public notice and comment. Inclusion of presumptive standards
in the EG does not seek to pre-determine the outcomes of any future
rulemaking.
---------------------------------------------------------------------------

\8\ The presumptive standards are not the same as a Federal plan
under CAA section 111(d)(2). The EPA has an obligation to promulgate
a Federal plan if a state fails to submit a satisfactory plan. In
such circumstances, the final EG and presumptive standards would
serve as a guide to the development of a Federal plan. See section
XIV.F. for information on Federal plans.
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Designated facilities located in Indian country would not be
encompassed within a State's CAA section 111(d) plan. Instead, an
eligible Tribe that has one or more designated facilities located in
its area of Indian country would have the opportunity, but not the
obligation, to seek authority and submit a plan that establishes
standards of performance for those facilities on its Tribal lands. If a
Tribe does not submit a plan, or if the EPA does not approve a Tribe's
plan, then the EPA has the authority to establish a Federal plan for
that Tribe. A summary of the proposed EG for existing sources (EG
OOOOc) for the oil and natural gas sector is presented in Table 3. See
sections XI and XII of this preamble for a complete discussion of the
proposed EG requirements.
As discussed above for the proposed NSPS OOOOb, the EPA is
considering including additional sources as affected facilities in a
potential future supplemental rulemaking proposal \9\ under CAA section
111(b). The EPA is also considering including these additional sources
as designated facilities under the EG in OOOOc in a potential future
supplemental rulemaking proposal under CAA section 111(d). As with the
proposed NSPS OOOOb, the EPA is evaluating the potential for
establishing EG applicable to abandoned and unplugged wells, blowdown
emissions associated with pipeline pig launchers and receivers, and
tank truck loading operations (assuming the EPA establishes NSPS for
these emissions points). As described in section XIII of this preamble,
the EPA is soliciting information to assist in this effort.
---------------------------------------------------------------------------

\9\ A supplemental proposal would include an updated RIA.
---------------------------------------------------------------------------

3. Proposed Amendments to 2016 NSPS OOOOa, and CRA-Related CFR Updates
The EPA is also proposing certain modifications to the 2016 NSPS
OOOOa to address certain amendments to the VOC standards for sources in
the production and processing segments finalized in the 2020 Technical
Rule. Because the methane standards for the production and processing
segments and all standards for the transmission and storage segment
were removed from the 2016 NSPS OOOOa via the 2020 Policy Rule prior to
the finalization of the 2020 Technical Rule, the latter amendments
apply only to the 2016 NSPS OOOOa VOC standards for the production and
processing segments. In this proposed rulemaking, the EPA also is
proposing to apply some of the 2020 Technical Rule amendments to the
methane standards for all industry segments and to VOC standards for
the transmission and storage segment in the 2016 NSPS OOOOa. These
amendments are associated with the requirements for well completions,
pneumatic pumps, closed vent systems, fugitive emissions, alternative
means of emission limitation (AMELs), onshore natural gas processing
plants, as well as other technical clarifications and corrections. The
EPA also is proposing to repeal the amendments in the 2020 Technical
Rule that (1) exempted low production well sites from monitoring
fugitive emissions and (2) changed monitoring of VOC emissions at
gathering and boosting compressor stations from quarterly to
semiannual, which currently apply only to VOC standards (not methane
standards) from the production and processing segments. A summary of
the proposed amendments to the 2016 OOOOa NSPS is presented in section
X of this preamble.
Lastly, in the final rule for this action, the EPA will update the
NSPS OOOO and OOOOa provisions in the CFR to reflect the CRA
resolution's disapproval of the final 2020 Policy Rule, specifically,
the reinstatement of the OOOO and OOOOa requirements that the 2020
Policy Rule repealed but that came back into effect immediately upon
enactment of the CRA resolution. The EPA is waiting to make the updates
to the CFR text until the final rule simply because it would be more
efficient and clearer to amend the CFR once at the end of this
rulemaking process to account for all changes to the 2012 NSPS OOOO and
2016 NSPS OOOOa at the same time. In accordance with 5 U.S.C.
553(b)(3)(B), the EPA is not soliciting comment on these updates.

Table 2--Summary of Proposed BSER and Proposed Standards of Performance
for GHGS and VOC
[NSPS OOOOb]
------------------------------------------------------------------------
Proposed standards of
Affected source Proposed BSER performance for GHGs
and VOCs
------------------------------------------------------------------------
Fugitive Emissions: Well Sites Demonstrate Perform survey to
with Baseline Emissions >0 to actual site verify that actual
<3 tpy \1\ Methane. emissions are site emissions are
reflected in reflected in
calculation. calculation.
Fugitive Emissions: Well Sites Monitoring and Quarterly OGI
>=3 tpy Methane. repair based on monitoring following
quarterly appendix K.
monitoring using (Optional quarterly
OGI \2\. EPA Method 21
monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
(Co-proposal) Fugitive Monitoring and Semiannual OGI
Emissions: Well Sites with repair based on monitoring following
Baseline Emissions >=3 to <8 semiannual appendix K.
tpy Methane. monitoring using (Optional semiannual
OGI. EPA Method 21
monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.

[[Page 63119]]

(Co-proposal) Fugitive Monitoring and Quarterly OGI
Emissions: Well Sites with repair based on monitoring following
Baseline Emissions >=8 tpy quarterly appendix K.
Methane. monitoring using (Optional quarterly
OGI. EPA Method 21
monitoring with 500
ppm \3\ defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
Fugitive Emissions: Compressor Monitoring and Quarterly OGI
Stations. repair based on monitoring following
quarterly appendix K.
monitoring using (Optional quarterly
OGI. EPA Method 21
monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
Fugitive Emissions: Well Sites Monitoring and Annual OGI monitoring
and Compressor Stations on repair based on following appendix
Alaska North Slope. annual K. (Optional annual
monitoring using EPA Method 21
OGI. monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
Fugitive Emissions: Well Sites (Optional) (Optional)
and Compressor Stations. Screening, Alternative
monitoring, and bimonthly screening
repair based on with advanced
bimonthly measurement
screening using technology with
an advanced annual OGI
measurement monitoring following
technology and appendix K.
annual
monitoring using
OGI.
Storage Vessels: A Single Capture and route 95 percent reduction
Storage Vessel or Tank to a control of VOC and methane.
Battery with PTE \4\ of 6 tpy device.
or More of VOC.
Pneumatic Controllers: Natural Use of zero- VOC and methane
Gas Driven that Vent to the emissions emission rate of
Atmosphere. controllers. zero.
Pneumatic Controllers: Alaska Installation of Natural gas bleed
(at sites where onsite power low-bleed rate no greater than
is not available--continuous pneumatic 6 scfh.\5\
bleed natural gas driven). controllers.
Pneumatic Controllers: Alaska Monitor and OGI monitoring and
(at sites where onsite power repair through repair of emissions
is not available-- fugitive from controller
intermittent natural gas emissions malfunctions.
driven). program.
Well Liquids Unloading........ Perform liquids Each affected well
unloading with that unloads liquids
zero methane or employ techniques or
VOC emissions. technology(ies) that
If this is not eliminate or
feasible for minimize venting of
safety or emissions during
technical liquids unloading
reasons, employ events to the
best management maximum extent.
practices to
minimize venting.
Co Proposal Options:
Option One--Affected
facility would be
defined as every
well that undergoes
liquids unloading.
--If the method is
one that does not
result in any
venting to the
atmosphere, maintain
records specifying
the technology or
technique and record
instances where an
unloading event
results in
emissions.
--For unloading
technologies or
techniques that
result in venting to
the atmosphere,
implement BMPs \6\
to ensure that
venting is
minimized.
--Maintain BMPs as
records, and record
instances when they
were not followed.
Option Two--Affected
facility would be
defined as every
well that undergoes
liquids unloading
using a method that
is not designed to
eliminate venting.
--Wells that utilize
non-venting methods
would not be
affected facilities
that are subject to
the NSPS OOOOb.
Therefore, they
would not have
requirements other
than to maintain
records to document
that they used non-
venting liquids
unloading methods.
--The requirements
for wells that use
methods that vent
would be the same as
described above
under Option 1.
Wet Seal Centrifugal Capture and route Reduce emissions by
Compressors (except for those emissions from 95 percent.
located at single well sites). the wet seal
fluid degassing
system to a
control device
or to a process.
Reciprocating Compressors Replace the Replace the
(except for those located at reciprocating reciprocating
single well sites). compressor rod compressor rod
packing based on packing when
annual measured leak rate
monitoring (when exceeds 2 scfm based
measured leak on the results of
rate exceeds 2 annual monitoring or
scfm \7\) or collect and route
route emissions emissions from the
to a process. rod packing to a
process through a
closed vent system
under negative
pressure.

[[Page 63120]]

Pneumatic Pumps: Natural Gas A natural gas A natural gas
Processing Plants. emission rate of emission rate of
zero. zero from diaphragm
and piston pneumatic
pumps.
Pneumatic Pumps: Production Route diaphragm 95 percent control of
Segment. and piston diaphragm and piston
pneumatic pumps pneumatic pumps if
to an existing there is an existing
control device control or process
or process. on site. 95 percent
control not required
if (1) routed to an
existing control
that achieves less
than 95 percent or
(2) it is
technically
infeasible to route
to the existing
control device or
process.
Pneumatic Pumps: Transmission Route diaphragm 95 percent control of
and Storage Segment. pneumatic pumps diaphragm pneumatic
to an existing pumps if there is an
control device existing control or
or process. process on site. 95
percent control not
required if (1)
routed to an
existing control
that achieves less
than 95 percent or
(2) it is
technically
infeasible to route
to the existing
control device or
process.
Well Completions: Subcategory Combination of Applies to each well
1 (non-wildcat and non- REC \8\ and the completion operation
delineation wells). use of a with hydraulic
completion fracturing.
combustion
device.
REC in combination
with a completion
combustion device;
venting in lieu of
combustion where
combustion would
present safety
hazards.
Initial flowback
stage: Route to a
storage vessel or
completion vessel
(frac tank, lined
pit, or other
vessel) and
separator.
Separation flowback
stage: Route all
salable gas from the
separator to a flow
line or collection
system, re-inject
the gas into the
well or another
well, use the gas as
an onsite fuel
source or use for
another useful
purpose that a
purchased fuel or
raw material would
serve. If
technically
infeasible to route
recovered gas as
specified above,
recovered gas must
be combusted. All
liquids must be
routed to a storage
vessel or well
completion vessel,
collection system,
or be re-injected
into the well or
another well.
The operator is
required to have
(and use) a
separator onsite
during the entire
flowback period.
Well Completions: Subcategory Use of a Applies to each well
2 (exploratory and completion completion operation
delineation wells and low- combustion with hydraulic
pressure wells). device. fracturing.
The operator is not
required to have a
separator onsite.
Either: (1) Route
all flowback to a
completion
combustion device
with a continuous
pilot flame; or (2)
Route all flowback
into one or more
well completion
vessels and commence
operation of a
separator unless it
is technically
infeasible for a
separator to
function. Any gas
present in the
flowback before the
separator can
function is not
subject to control
under this section.
Capture and direct
recovered gas to a
completion
combustion device
with a continuous
pilot flame.
For both options (1)
and (2), combustion
is not required in
conditions that may
result in a fire
hazard or explosion,
or where high heat
emissions from a
completion
combustion device
may negatively
impact tundra,
permafrost, or
waterways.
Equipment Leaks at Natural Gas LDAR \9\ with LDAR with OGI
Processing Plants. bimonthly OGI. following procedures
in appendix K.
Oil Wells with Associated Gas. Route associated Route associated gas
gas to a sales to a sales line. If
line. If access access to a sales
to a sales line line is not
is not available, the gas
available, the can be used as an
gas can be used onsite fuel source,
as an onsite used for another
fuel source, useful purpose that
used for another a purchased fuel or
useful purpose raw material would
that a purchased serve, or routed to
fuel or raw a flare or other
material would control device that
serve, or routed achieves at least 95
to a flare or percent reduction in
other control methane and VOC
device that emissions.
achieves at
least 95 percent
reduction in
methane and VOC
emissions.
Sweetening Units.............. Achieve SO2 Achieve required
emission minimum SO2 emission
reduction reduction
efficiency. efficiency.
------------------------------------------------------------------------
\1\ tpy (tons per year).

[[Page 63121]]

\2\ OGI (optical gas imaging).
\3\ ppm (parts per million).
\4\ PTE (potential to emit).
\5\ scfh (standard cubic feet per hour).
\6\ BMP (best management practices).
\7\ scfm (standard cubic feet per minute).
\8\ REC (reduced emissions completion).
\9\ LDAR (leak detection and repair).

Table 3--Summary of Proposed BSER and Proposed Presumptive Standards for
GHGS From Designated Facilities
[EG OOOOc]
------------------------------------------------------------------------
Proposed presumptive
Designated facility Proposed BSER standards for GHGs
------------------------------------------------------------------------
Fugitive Emissions: Well Sites Demonstrate Perform survey to
>0 to <3 tpy Methane. actual site verify that actual
emissions are site emissions are
reflected in reflected in
calculation. calculation.
Fugitive Emissions: Well Sites Monitoring and Quarterly OGI
>=3 tpy Methane. repair based on monitoring following
quarterly appendix K.
monitoring using (Optional quarterly
OGI. EPA Method 21
monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
(Co-proposal) Fugitive Monitoring and Semiannual OGI
Emissions: Well Sites >=3 to repair based on monitoring following
<8 tpy Methane. semiannual appendix K.
monitoring using (Optional semiannual
OGI. EPA Method 21
monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
(Co-proposal) Fugitive Monitoring and Quarterly OGI
Emissions: Well Sites >=8 tpy repair based on monitoring following
Methane. quarterly appendix K.
monitoring using (Optional quarterly
OGI. EPA Method 21
monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
Fugitive Emissions: Compressor Monitoring and Quarterly OGI
Stations. repair based on monitoring following
quarterly appendix K.
monitoring using (Optional quarterly
OGI. EPA Method 21
monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
Fugitive Emissions: Well Sites Monitoring and Annual OGI monitoring
and Compressor Stations on repair based on following appendix
Alaska North Slope. annual K. (Optional annual
monitoring using EPA Method 21
OGI. monitoring with 500
ppm defined as a
leak).
First attempt at
repair within 30
days of finding
fugitive emissions.
Final repair within
30 days of first
attempt.
Fugitive Emissions: Well Sites (Optional) (Optional)
and Compressor Stations. Screening, Alternative
monitoring, and bimonthly screening
repair based on with advanced
bimonthly measurement
screening using technology with
an advanced annual OGI
measurement monitoring following
technology and appendix K.
annual
monitoring using
OGI.
Storage Vessels: Tank Battery Capture and route 95 percent reduction
with PTE of 20 tpy or More of to a control of methane.
Methane. device.
Pneumatic Controllers: Natural Use of zero- VOC and methane
Gas Driven that Vent to the emissions emission rate of
Atmosphere. controllers. zero.
Pneumatic Controllers: Alaska Installation of Natural gas bleed
(at sites where onsite power low-bleed rate no greater than
is not available--continuous pneumatic 6 scfh.
bleed natural gas driven). controllers.
Pneumatic Controllers: Alaska Monitor and OGI monitoring and
(at sites where onsite power repair through repair of emissions
is not available-- fugitive from controller
intermittent natural gas emissions malfunctions.
driven). program.
Wet Seal Centrifugal Capture and route Reduce emissions by
Compressors (except for those emissions from 95 percent.
located at single well sites). the wet seal
fluid degassing
system to a
control device
or to a process.
Reciprocating Compressors Replace the Replace the
(except for those located at reciprocating reciprocating
single well sites). compressor rod compressor rod
packing based on packing when
annual measured leak rate
monitoring (when exceeds 2 scfm based
measured leak on the results of
rate exceeds 2 annual monitoring,
scfm) or route or collect and route
emissions to a emissions from the
process. rod packing to a
process through a
closed vent system
under negative
pressure.
Pneumatic Pumps: Natural Gas A natural gas Zero natural gas
Processing Plants. emission rate of emissions from
zero. diaphragm and piston
pneumatic pumps.
Pneumatic Pumps: Locations Route diaphragm 95 percent control of
Other Than Natural Gas pumps to an diaphragm pneumatic
Processing Plants. existing control pumps if there is an
device or existing control or
process. process on site. 95
percent control not
required if (1)
routed to an
existing control
that achieves less
than 95 percent or
(2) it is
technically
infeasible to route
to the existing
control device or
process.
Equipment Leaks at Natural Gas LDAR with LDAR with OGI
Processing Plants. bimonthly OGI. following procedures
in appendix K.

[[Page 63122]]

Oil Wells with Associated Gas. Route associated Route associated gas
gas to a sales to a sales line. If
line. If access access to a sales
to a sales line line is not
is not available, the gas
available, the can be used as an
gas can be used onsite fuel source,
as an onsite used for another
fuel source, useful purpose that
used for another a purchased fuel or
useful purpose raw material would
that a purchased serve, or routed to
fuel or raw a flare or other
material would control device that
serve, or routed achieves at least 95
to a flare or percent reduction in
other control methane and VOC
device that emissions.
achieves at
least 95 percent
reduction in
methane and VOC
emissions.
------------------------------------------------------------------------

C. Costs and Benefits

To satisfy requirements of E.O. 12866, the EPA projected the
emissions reductions, costs, and benefits that may result from this
proposed action. These results are presented in detail in the
regulatory impact analysis (RIA) accompanying this proposal developed
in response to E.O. 12866. The RIA focuses on the elements of the
proposed rule that are likely to result in quantifiable cost or
emissions changes compared to a baseline without the proposal that
incorporates changes to regulatory requirements induced by the CRA
resolution. We estimated the cost, emissions, and benefit impacts for
the 2023 to 2035 period. We present the present value (PV) and
equivalent annual value (EAV) of costs, benefits, and net benefits of
this action in 2019 dollars.
The initial analysis year in the RIA is 2023 as we assume the
proposed rule will be finalized towards the end of 2022. The NSPS will
take effect immediately and impact sources constructed after
publication of the proposed rule. The EG will take longer to go into
effect as States will need to develop implementation plans in response
to the rule and have them approved by the EPA. We assume in the RIA
that this process will take three years, and so EG impacts will begin
in 2026. The final analysis year is 2035, which allows us to provide
ten years of projected impacts after the EG is assumed to take effect.
The cost analysis presented in the RIA reflects a nationwide
engineering analysis of compliance cost and emissions reductions, of
which there are two main components. The first component is a set of
representative or model plants for each regulated facility, segment,
and control option. The characteristics of the model plant include
typical equipment, operating characteristics, and representative
factors including baseline emissions and the costs, emissions
reductions, and product recovery resulting from each control option.
The second component is a set of projections of activity data for
affected facilities, distinguished by vintage, year, and other
necessary attributes (e.g., oil versus natural gas wells). Impacts are
calculated by setting parameters on how and when affected facilities
are assumed to respond to a particular regulatory regime, multiplying
activity data by model plant cost and emissions estimates, differencing
from the baseline scenario, and then summing to the desired level of
aggregation. In addition to emissions reductions, some control options
result in natural gas recovery, which can then be combusted in
production or sold. Where applicable, we present projected compliance
costs with and without the projected revenues from product recovery.
The EPA expects climate and health benefits due to the emissions
reductions projected under this proposed rule. The EPA estimated the
global social benefits of CH<INF>4</INF> emission reductions expected
from this proposed rule using the SC-CH<INF>4</INF> estimates presented
in the ``Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide Interim Estimates under E.O. 13990 (IWG 2021)''.
These SC-CH<INF>4</INF> estimates are interim values developed under
E.O. 13990 for use in benefit-cost analyses until updated estimates of
the impacts of climate change can be developed based on the best
available science and economics.
Under the proposed rule, the EPA expects that VOC emission
reductions will improve air quality and are likely to improve health
and welfare associated with exposure to ozone, PM<INF>2.5</INF>, and
HAP. Calculating ozone impacts from VOC emissions changes requires
information about the spatial patterns in those emissions changes. In
addition, the ozone health effects from the proposed rule will depend
on the relative proximity of expected VOC and ozone changes to
population. In this analysis, we have not characterized VOC emissions
changes at a finer spatial resolution than the national total. In light
of these uncertainties, we present an illustrative screening analysis
in Appendix B of the RIA based on modeled oil and natural gas VOC
contributions to ozone concentrations as they occurred in 2017 and do
not include the results of this analysis in the estimate of benefits
and net benefits projected from this proposal.
The projected national-level emissions reductions over the 2023 to
2035 period anticipated under the proposed requirements are presented
in Table 4. Table 5 presents the PV and EAV of the projected benefits,
costs, and net benefits over the 2023 to 2035 period under the proposed
requirements using discount rates of 3 and 7 percent.

Table 4--Projected Emissions Reductions Under the Proposed Rule, 2023-
2035 Total
------------------------------------------------------------------------
Emissions reductions
Pollutant (2023-2035 total)
------------------------------------------------------------------------
Methane (million short tons) a.................... 41
VOC (million short tons).......................... 12
Hazardous Air Pollutant (million short tons)...... 0.48

[[Page 63123]]

Methane (million metric tons CO2 Eq.) b........... 920
------------------------------------------------------------------------
a To convert from short tons to metric tons, multiply the short tons by
0.907. Alternatively, to convert metric tons to short tons, multiply
metric tons by 1.102.
b CO2 Eq. calculated using a global warming potential of 25.

Table 5--Benefits, Costs, Net Benefits, and Emissions Reductions of the Proposed Rule, 2023 Through 2035
[Dollar Estimates in Millions of 2019 Dollars] a
----------------------------------------------------------------------------------------------------------------
3 percent discount rate 7 percent discount rate
---------------------------------------------------------------
Equivalent Equivalent
Present value annual value Present value annual value
----------------------------------------------------------------------------------------------------------------
Climate Benefits b.............................. $55,000 $5,200 .............. ..............
Net Compliance Costs............................ 7,200 680 6,300 760
Compliance Costs............................ 13,000 1,200 10,000 1,200
Product Recovery............................ 5,500 520 3,900 470
Net Benefits.................................... 48,000 4,500 49,000 4,500
---------------------------------------------------------------
Non-Monetized Benefits.......................... Climate and ozone health benefits from reducing 41 million
short tons of methane from 2023 to 2035.
PM2.5 and ozone health benefits from reducing 12 million short
tons of VOC from 2023 to 2035 c.
HAP benefits from reducing 480 thousand short tons of HAP from
2023 to 2035.
Visibility benefits.
Reduced vegetation effects.
----------------------------------------------------------------------------------------------------------------
a Values rounded to two significant figures. Totals may not appear to add correctly due to rounding.
b Climate benefits are based on reductions in methane emissions and are calculated using four different
estimates of the social cost of methane (SC-CH4) (model average at 2.5 percent, 3 percent, and 5 percent
discount rates; 95th percentile at 3 percent discount rate). For the presentational purposes of this table, we
show the benefits associated with the average SC-CH4 at a 3 percent discount rate, but the Agency does not
have a single central SC-CH4 point estimate. We emphasize the importance and value of considering the benefits
calculated using all four SC-CH4 estimates; the present value (and equivalent annual value) of the additional
benefit estimates ranges from $22 billion to $150 billion ($2.4 billion to $14 billion) over 2023 to 2035 for
the proposed option. Please see Table 3-5 and Table 3-7 of the RIA for the full range of SC-CH4 estimates. As
discussed in Section 3 of the RIA, a consideration of climate benefits calculated using discount rates below 3
percent, including 2 percent and lower, are also warranted when discounting intergenerational impacts. All net
benefits are calculated using climate benefits discounted at 3 percent.
c A screening-level analysis of ozone benefits from VOC reductions can be found in Appendix B of the RIA, which
is included in the docket.

II. General Information

A. Does this action apply to me?

Categories and entities potentially affected by this action
include:

Table 6--Industrial Source Categories Affected by This Action
----------------------------------------------------------------------------------------------------------------
Category NAICS code 1 Examples of regulated entities
----------------------------------------------------------------------------------------------------------------
Industry........................... 211120 Crude Petroleum Extraction.
211130 Natural Gas Extraction.
221210 Natural Gas Distribution.
486110 Pipeline Distribution of Crude Oil.
486210 Pipeline Transportation of Natural Gas.
Federal Government................. ................ Not affected.
State/local/Tribal government...... ................ Not affected.
----------------------------------------------------------------------------------------------------------------
1 North American Industry Classification System (NAICS).

This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be affected by this
action. Other types of entities not listed in the table could also be
affected by this action. To determine whether your entity is affected
by this action, you should carefully examine the applicability criteria
found in the final rule. If you have questions regarding the
applicability of this action to a particular entity, consult the person
listed in the FOR FURTHER INFORMATION CONTACT section, your air
permitting authority, or your EPA Regional representative listed in 40
CFR 60.4 (General Provisions).

[[Page 63124]]

B. How do I obtain a copy of this document, background information, and
other related information?

In addition to being available in the docket, an electronic copy of
the proposed action is available on the internet. Following signature
by the Administrator, the EPA will post a copy of this proposed action
at <a href="https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry">https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry</a>. Following publication in the Federal Register, the EPA will
post the Federal Register version of the final rule and key technical
documents at this same website. A redline version of the regulatory
language that incorporates the proposed changes described in section X
for NSPS OOOO and NSPS OOOOa is available in the docket for this action
(Docket ID No. EPA-HQ-OAR-2021-0317). The EPA plans to propose the
regulatory language for NSPS OOOOb and EG OOOOc through a supplemental
action.

III. Air Emissions From the Crude Oil and Natural Gas Sector and Public
Health and Welfare

A. Impacts of GHGs, VOCs and SO<INF>2</INF> Emissions on Public Health
and Welfare

As noted previously, the Oil and Natural Gas Industry emits a wide
range of pollutants, including GHGs (such as methane and
CO<INF>2</INF>), VOCs, SO<INF>2</INF>, NO<INF>X</INF>, H<INF>2</INF>S,
CS<INF>2</INF>, and COS. See 49 FR 2636, 2637 (January 20, 1984). As
noted below, to this point, the EPA has focused its regulatory efforts
on GHGs, VOC, and SO<INF>2</INF>.\10\
---------------------------------------------------------------------------

\10\ We note that the EPA's focus on GHGs (in particular
methane), VOC, and SO<INF>2</INF> in these analyses, does not in any
way limit the EPA's authority to promulgate standards that would
apply to other pollutants emitted from the Crude Oil and Natural Gas
source category, if the EPA determines in the future that such
action is appropriate.
---------------------------------------------------------------------------

1. Climate Change Impacts From GHGs Emissions
Elevated concentrations of GHGs are and have been warming the
planet, leading to changes in the Earth's climate including changes in
the frequency and intensity of heat waves, precipitation, and extreme
weather events; rising seas; and retreating snow and ice. The changes
taking place in the atmosphere as a result of the well-documented
buildup of GHGs due to human activities are changing the climate at a
pace and in a way that threatens human health, society, and the natural
environment. Human induced GHGs, largely derived from our reliance on
fossil fuels, are causing serious and life-threatening environmental
and health impacts.
Extensive additional information on climate change is available in
the scientific assessments and the EPA documents that are briefly
described in this section, as well as in the technical and scientific
information supporting them. One of those documents is the EPA's 2009
Endangerment and Cause or Contribute Findings for GHGs Under Section
202(a) of the CAA (74 FR 66496, December 15, 2009).\11\ In the 2009
Endangerment Findings, the Administrator found under section 202(a) of
the CAA that elevated atmospheric concentrations of six key well-mixed
GHGs--CO<INF>2,</INF> CH<INF>4</INF>, N<INF>2</INF>O,
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur
hexafluoride (SF<INF>6</INF>)--``may reasonably be anticipated to
endanger the public health and welfare of current and future
generations'' (74 FR 66523, December 15, 2009), and the science and
observed changes have confirmed and strengthened the understanding and
concerns regarding the climate risks considered in the Finding. The
2009 Endangerment Findings, together with the extensive scientific and
technical evidence in the supporting record, documented that climate
change caused by human emissions of GHGs threatens the public health of
the U.S. population. It explained that by raising average temperatures,
climate change increases the likelihood of heat waves, which are
associated with increased deaths and illnesses (74 FR 66497, December
15, 2009). While climate change also increases the likelihood of
reductions in cold-related mortality, evidence indicates that the
increases in heat mortality will be larger than the decreases in cold
mortality in the U.S. (74 FR 66525, December 15, 2009). The 2009
Endangerment Findings further explained that compared to a future
without climate change, climate change is expected to increase
tropospheric ozone pollution over broad areas of the U.S., including in
the largest metropolitan areas with the worst tropospheric ozone
problems, and thereby increase the risk of adverse effects on public
health (74 FR 66525, December 15, 2009). Climate change is also
expected to cause more intense hurricanes and more frequent and intense
storms of other types and heavy precipitation, with impacts on other
areas of public health, such as the potential for increased deaths,
injuries, infectious and waterborne diseases, and stress-related
disorders (74 FR 66525, December 15, 2009). Children, the elderly, and
the poor are among the most vulnerable to these climate-related health
effects (74 FR 66498, December 15, 2009).
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\11\ In describing these 2009 Findings in this proposal, the EPA
is neither reopening nor revisiting them.
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The 2009 Endangerment Findings also documented, together with the
extensive scientific and technical evidence in the supporting record,
that climate change touches nearly every aspect of public welfare \12\
in the U.S. with resulting economic costs, including: Changes in water
supply and quality due to increased frequency of drought and extreme
rainfall events; increased risk of storm surge and flooding in coastal
areas and land loss due to inundation; increases in peak electricity
demand and risks to electricity infrastructure; and the potential for
significant agricultural disruptions and crop failures (though offset
to some extent by carbon fertilization). These impacts are also global
and may exacerbate problems outside the U.S. that raise humanitarian,
trade, and national security issues for the U.S. (74 FR 66530, December
15, 2009).
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\12\ The CAA states in section 302(h) that ``[a]ll language
referring to effects on welfare includes, but is not limited to,
effects on soils, water, crops, vegetation, manmade materials,
animals, wildlife, weather, visibility, and climate, damage to and
deterioration of property, and hazards to transportation, as well as
effects on economic values and on personal comfort and well-being,
whether caused by transformation, conversion, or combination with
other air pollutants.'' 42 U.S.C. 7602(h).
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In 2016, the Administrator similarly issued Endangerment and Cause
or Contribute Findings for GHG emissions from aircraft under section
231(a)(2)(A) of the CAA (81 FR 54422, August 15, 2016).\13\ In the 2016
Endangerment Findings, the Administrator found that the body of
scientific evidence amassed in the record for the 2009 Endangerment
Findings compellingly supported a similar endangerment finding under
CAA section 231(a)(2)(A), and also found that the science assessments
released between the 2009 and the 2016 Findings, ``strengthen and
further support the judgment that GHGs in the atmosphere may reasonably
be anticipated to endanger the public health and welfare of current and
future generations.'' (81 FR 54424, August 15, 2016).
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\13\ In describing these 2016 Findings in this proposal, the EPA
is neither reopening nor revisiting them.
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Since the 2016 Endangerment Findings, the climate has continued to
change, with new records being set for several climate indicators such
as global average surface temperatures, GHG concentrations, and sea
level rise. Moreover, heavy precipitation events

[[Page 63125]]

have increased in the eastern U.S. while agricultural and ecological
drought has increased in the western U.S. along with more intense and
larger wildfires.\14\ These and other trends are examples of the risks
discussed the 2009 and 2016 Endangerment Findings that have already
been experienced. Additionally, major scientific assessments continue
to demonstrate advances in our understanding of the climate system and
the impacts that GHGs have on public health and welfare both for
current and future generations. These updated observations and
projections document the rapid rate of current and future climate
change both globally and in the U.S. These assessments include:
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\14\ See later in this section for specific examples. An
additional resource for indicators can be found at <a href="https://www.epa.gov/climate-indicators">https://www.epa.gov/climate-indicators</a>.
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<bullet> U.S. Global Change Research Program's (USGCRP) 2016
Climate and Health Assessment \15\ and 2017-2018 Fourth National
Climate Assessment (NCA4). \16\ \17\
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\15\ USGCRP, 2016: The Impacts of Climate Change on Human Health
in the United States: A Scientific Assessment. Crimmins, A., J.
Balbus, J.L. Gamble, C.B. Beard, J.E. Bell, D. Dodgen, R.J. Eisen,
N. Fann, M.D. Hawkins, S.C. Herring, L. Jantarasami, D.M. Mills, S.
Saha, M.C. Sarofim, J. Trtanj, and L. Ziska, Eds. U.S. Global Change
Research Program, Washington, DC, 312 pp.
\16\ USGCRP, 2017: Climate Science Special Report: Fourth
National Climate Assessment, Volume I [Wuebbles, D.J., D.W. Fahey,
K.A. Hibbard, D.J. Dokken, B.C. Stewart, and T.K. Maycock (eds.)].
U.S. Global Change Research Program, Washington, DC, USA, 470 pp,
doi: 10.7930/J0J964J6.
\17\ USGCRP, 2018: Impacts, Risks, and Adaptation in the United
States: Fourth National Climate Assessment, Volume II [Reidmiller,
D.R., C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K.
Maycock, and B.C. Stewart (eds.)]. U.S. Global Change Research
Program, Washington, DC, USA, 1515 pp. doi: 10.7930/NCA4.2018.
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<bullet> IPCC's 2018 Global Warming of 1.5 [deg]C,\18\ 2019 Climate
Change and Land,\19\ and the 2019 Ocean and Cryosphere in a Changing
Climate \20\ assessments, as well as the 2021 IPCC Sixth Assessment
Report (AR6).\21\
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\18\ IPCC, 2018: Global Warming of 1.5 [deg]C. An IPCC Special
Report on the impacts of global warming of 1.5 [deg]C above pre-
industrial levels and related global greenhouse gas emission
pathways, in the context of strengthening the global response to the
threat of climate change, sustainable development, and efforts to
eradicate poverty [Masson-Delmotte, V., P. Zhai, H.-O. P[ouml]rtner,
D. Roberts, J. Skea, P.R. Shukla, A. Pirani, W. Moufouma-Okia, C.
P[eacute]an, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X.
Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T.
Waterfield (eds.)].
\19\ IPCC, 2019: Climate Change and Land: an IPCC special report
on climate change, desertification, land degradation, sustainable
land management, food security, and greenhouse gas fluxes in
terrestrial ecosystems [P.R. Shukla, J. Skea, E. Calvo Buendia, V.
Masson-Delmotte, H.-O. P[ouml]rtner, D.C. Roberts, P. Zhai, R.
Slade, S. Connors, R. van Diemen, M. Ferrat, E. Haughey, S. Luz, S.
Neogi, M. Pathak, J. Petzold, J. Portugal Pereira, P. Vyas, E.
Huntley, K. Kissick, M. Belkacemi, J. Malley, (eds.)].
\20\ IPCC, 2019: IPCC Special Report on the Ocean and Cryosphere
in a Changing Climate [H.-O. P[ouml]rtner, D.C. Roberts, V. Masson-
Delmotte, P. Zhai, M. Tignor, E. Poloczanska, K. Mintenbeck, A.
Alegr[iacute]a, M. Nicolai, A. Okem, J. Petzold, B. Rama, N.M. Weyer
(eds.)].
\21\ IPCC, 2021: Summary for Policymakers. In: Climate Change
2021: The Physical Science Basis. Contribution of Working Group I to
the Sixth Assessment Report of the Intergovernmental Panel on
Climate Change [Masson-Delmotte, V., P. Zhai, A. Pirani, S.L.
Connors, C. P[eacute]an, S. Berger, N. Caud, Y. Chen, L. Goldfarb,
M.I. Gomis, M. Huang, K. Leitzell, E. Lonnoy, J.B.R. Matthews, T.K.
Maycock, T. Waterfield, O. Yelek[ccedil]i, R. Yu and B. Zhou
(eds.)]. Cambridge University Press. In Press.
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<bullet> The NAS 2016 Attribution of Extreme Weather Events in the
Context of Climate Change,\22\ 2017 Valuing Climate Damages: Updating
Estimation of the Social Cost of Carbon Dioxide,\23\ and 2019 Climate
Change and Ecosystems \24\ assessments.
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\22\ National Academies of Sciences, Engineering, and Medicine.
2016. Attribution of Extreme Weather Events in the Context of
Climate Change. Washington, DC: The National Academies Press.
<a href="https://dio.org/10.17226/21852">https://dio.org/10.17226/21852</a>.
\23\ National Academies of Sciences, Engineering, and Medicine.
2017. Valuing Climate Damages: Updating Estimation of the Social
Cost of Carbon Dioxide. Washington, DC: The National Academies
Press. <a href="https://doi.org/10.17226/24651">https://doi.org/10.17226/24651</a>.
\24\ National Academies of Sciences, Engineering, and Medicine.
2019. Climate Change and Ecosystems. Washington, DC: The National
Academies Press. <a href="https://doi.org/10.17226/25504">https://doi.org/10.17226/25504</a>.
---------------------------------------------------------------------------

<bullet> National Oceanic and Atmospheric Administration's (NOAA)
annual State of the Climate reports published by the Bulletin of the
American Meteorological Society,\25\ most recently in August of 2020.
---------------------------------------------------------------------------

\25\ Blunden, J., and D.S. Arndt, Eds., 2020: State of the
Climate in 2019. Bull. Amer. Meteor. Soc, S1-S429, <a href="https://doi.org/10.1175/2020BAMSStateoftheClimate.1">https://doi.org/10.1175/2020BAMSStateoftheClimate.1</a>.
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<bullet> EPA Climate Change and Social Vulnerability in the United
States: A Focus on Six Impacts (2021).\26\
---------------------------------------------------------------------------

\26\ EPA. 2021. Climate Change and Social Vulnerability in the
United States: A Focus on Six Impacts. U.S. Environmental Protection
Agency, EPA 430-R-21-003.
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The most recent information demonstrates that the climate is
continuing to change in response to the human-induced buildup of GHGs
in the atmosphere. These recent assessments show that atmospheric
concentrations of GHGs have risen to a level that has no precedent in
human history and that they continue to climb, primarily as a result of
both historic and current anthropogenic emissions, and that these
elevated concentrations endanger our health by affecting our food and
water sources, the air we breathe, the weather we experience, and our
interactions with the natural and built environments. For example,
atmospheric concentrations of one of these GHGs, CO<INF>2</INF>,
measured at Mauna Loa in Hawaii and at other sites around the world
reached 414 ppm in 2020 (nearly 50 percent higher than pre-industrial
levels),\27\ and has continued to rise at a rapid rate. Global average
temperature has increased by about 1.1 degrees Celsius ([deg]C) (2.0
degrees Fahrenheit ([deg]F)) in the 2011-2020 decade relative to 1850-
1900.\28\ The years 2014-2020 were the warmest seven years in the 1880-
2020 record, contributing to the warmest decade on record with a
decadal temperature of 0.82 [deg]C (1.48 [deg]F) above the 20th
century.\29\ \30\ The IPCC determined (with medium confidence) that
this past decade was warmer than any multi-century period in at least
the past 100,000 years.\31\ Global average sea level has risen by about
8 inches (about 21 centimeters (cm)) from 1901 to 2018, with the rate
from 2006 to 2018 (0.15 inches/year or 3.7 millimeters (mm)/year)
almost twice the rate over the 1971 to 2006 period, and three times the
rate of the 1901 to 2018 period.\32\ The rate of sea level rise over
the 20th century was higher than in any other century in at least the
last 2,800 years.\33\ Higher CO<INF>2</INF> concentrations have led to
acidification of the surface ocean in recent decades to an extent
unusual in the past 2 million years, with negative impacts on marine
organisms that use calcium carbonate to build shells or skeletons.\34\
Arctic sea ice extent continues to decline in all months of the year;
the most rapid reductions occur in September (very likely almost a 13
percent decrease per decade between 1979 and 2018) and are
unprecedented in at least 1,000 years.\35\ Human-induced climate change
has led to heatwaves and heavy precipitation becoming more frequent and
more intense, along with increases in

[[Page 63126]]

agricultural and ecological droughts \36\ in many regions.\37\
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\27\ <a href="https://climate.nasa.gov/vital-signs/carbon-dioxide/">https://climate.nasa.gov/vital-signs/carbon-dioxide/</a>.
\28\ IPCC, 2021.
\29\ NOAA National Centers for Environmental Information, State
of the Climate: Global Climate Report for Annual 2020, published
online January 2021, retrieved on February 10, 2021 from <a href="https://www.ncdc.noaa.gov/sotc/global/202013">https://www.ncdc.noaa.gov/sotc/global/202013</a>.
\30\ Blunden, J., and D.S. Arndt, Eds., 2020: State of the
Climate in 2019. Bull. Amer. Meteor. Soc, S1-S429, <a href="https://doi.org/10.1175/2020BAMSStateoftheClimate.1">https://doi.org/10.1175/2020BAMSStateoftheClimate.1</a>.
\31\ IPCC, 2021.
\32\ IPCC, 2021.
\33\ USGCRP, 2018: Impacts, Risks, and Adaptation in the United
States: Fourth National Climate Assessment, Volume II [Reidmiller,
D.R., C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K.
Maycock, and B.C. Stewart (eds.)]. U.S. Global Change Research
Program, Washington, DC, USA, 1515 pp. doi: 10.7930/NCA4.2018.
\34\ IPCC, 2021.
\35\ IPCC, 2021.
\36\ These are drought measures based on soil moisture.
\37\ IPCC, 2021.
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The assessment literature demonstrates that modest additional
amounts of warming may lead to a climate different from anything humans
have ever experienced. The present-day CO<INF>2</INF> concentration of
414 ppm is already higher than at any time in the last 2 million
years.\38\ If concentrations exceed 450 ppm, they would likely be
higher than any time in the past 23 million years:\39\ at the current
rate of increase of more than 2 ppm a year, this would occur in about
15 years. While GHGs are not the only factor that controls climate, it
is illustrative that 3 million years ago (the last time CO<INF>2</INF>
concentrations were this high) Greenland was not yet completely covered
by ice and still supported forests, while 23 million years ago (the
last time concentrations were above 450 ppm) the West Antarctic ice
sheet was not yet developed, indicating the possibility that high GHGs
concentrations could lead to a world that looks very different from
today and from the conditions in which human civilization has
developed. If the Greenland and Antarctic ice sheets were to melt
substantially, sea levels would rise dramatically--the IPCC estimated
that over the next 2,000 years, sea level will rise by 7 to 10 feet
even if warming is limited to 1.5 [deg]C (2.7 [deg]F), from 7 to 20
feet if limited to 2 [deg]C (3.6 [deg]F), and by 60 to 70 feet if
warming is allowed to reach 5 [deg]C (9 [deg]F) above preindustrial
levels.\40\ For context, almost all of the city of Miami is less than
25 feet above sea level, and the NCA4 stated that 13 million Americans
would be at risk of migration due to 6 feet of sea level rise.
Moreover, the CO<INF>2</INF> being absorbed by the ocean has resulted
in changes in ocean chemistry due to acidification of a magnitude not
seen in 65 million years,\41\ putting many marine species--particularly
calcifying species--at risk.
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\38\ IPCC, 2021.
\39\ IPCC, 2013.
\40\ IPCC, 2021.
\41\ IPCC, 2018.
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The NCA4 found that it is very likely (greater than 90 percent
likelihood) that by mid-century, the Arctic Ocean will be almost
entirely free of sea ice by late summer for the first time in about 2
million years.\42\ Coral reefs will be at risk for almost complete (99
percent) losses with 1 [deg]C (1.8 [deg]F) of additional warming from
today (2 [deg]C or 3.6 [deg]F since preindustrial). At this
temperature, between 8 and 18 percent of animal, plant, and insect
species could lose over half of the geographic area with suitable
climate for their survival, and 7 to 10 percent of rangeland livestock
would be projected to be lost.\43\
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\42\ USGCRP, 2018.
\43\ IPCC, 2018.
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Every additional increment of temperature comes with consequences.
For example, the half degree of warming from 1.5 to 2 [deg]C (0.9
[deg]F of warming from 2.7 [deg]F to 3.6 [deg]F) above preindustrial
temperatures is projected on a global scale to expose 420 million more
people to frequent extreme heatwaves, and 62 million more people to
frequent exceptional heatwaves (where heatwaves are defined based on a
heat wave magnitude index which takes into account duration and
intensity--using this index, the 2003 French heat wave that led to
almost 15,000 deaths would be classified as an ``extreme heatwave'' and
the 2010 Russian heatwave which led to thousands of deaths and
extensive wildfires would be classified as ``exceptional''). It would
increase the frequency of sea-ice-free Arctic summers from once in a
hundred years to once in a decade. It could lead to 4 inches of
additional sea level rise by the end of the century, exposing an
additional 10 million people to risks of inundation, as well as
increasing the probability of triggering instabilities in either the
Greenland or Antarctic ice sheets. Between half a million and a million
additional square miles of permafrost would thaw over several
centuries. Risks to food security would increase from medium to high
for several lower income regions in the Sahel, southern Africa, the
Mediterranean, central Europe, and the Amazon. In addition to food
security issues, this temperature increase would have implications for
human health in terms of increasing ozone concentrations, heatwaves,
and vector-borne diseases (for example, expanding the range of the
mosquitoes which carry dengue fever, chikungunya, yellow fever, and the
Zika virus, or the ticks which carry Lyme. babesiosis, or Rocky
Mountain Spotted Fever).\44\ Moreover, every additional increment in
warming leads to larger changes in extremes, including the potential
for events unprecedented in the observational record. Every additional
degree will intensify extreme precipitation events by about 7 percent.
The peak winds of the most intense tropical cyclones (hurricanes) are
projected to increase with warming. In addition to a higher intensity,
the IPCC found that precipitation and frequency of rapid
intensification of these storms has already increased, while the
movement speed has decreased, and elevated sea levels have increased
coastal flooding, all of which make these tropical cyclones more
damaging.\45\
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\44\ IPCC, 2018.
\45\ IPCC, 2021.
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The NCA4 also evaluated a number of impacts specific to the U.S.
Severe drought and outbreaks of insects like the mountain pine beetle
have killed hundreds of millions of trees in the western U.S. Wildfires
have burned more than 3.7 million acres in 14 of the 17 years between
2000 and 2016, and Federal wildfire suppression costs were about a
billion dollars annually.\46\ The National Interagency Fire Center has
documented U.S. wildfires since 1983, and the ten years with the
largest acreage burned have all occurred since 2004.\47\ Wildfire smoke
degrades air quality increasing health risks, and more frequent and
severe wildfires due to climate change would further diminish air
quality, increase incidences of respiratory illness, impair visibility,
and disrupt outdoor activities, sometimes thousands of miles from the
location of the fire. Meanwhile, sea level rise has amplified coastal
flooding and erosion impacts, requiring the installation of costly pump
stations, flooding streets, and increasing storm surge damages. Tens of
billions of dollars of U.S. real estate could be below sea level by
2050 under some scenarios. Increased frequency and duration of drought
will reduce agricultural productivity in some regions, accelerate
depletion of water supplies for irrigation, and expand the distribution
and incidence of pests and diseases for crops and livestock. The NCA4
also recognized that climate change can increase risks to national
security, both through direct impacts on military infrastructure, but
also by affecting factors such as food and water availability that can
exacerbate conflict outside U.S. borders. Droughts, floods, storm
surges, wildfires, and other extreme events stress nations and people
through loss of life, displacement of populations, and impacts on
livelihoods.\48\
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\46\ USGCRP, 2018
\47\ NIFC (National Interagency Fire Center). 2021. Total
wildland fires and acres (1983-2020). Accessed August 2021.
<a href="http://www.nifc.gov/fireInfo/fireInfo_stats_totalFires.html">www.nifc.gov/fireInfo/fireInfo_stats_totalFires.html</a>.
\48\ USGCRP, 2018.
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Some GHGs also have impacts beyond those mediated through climate
change. For example, elevated concentrations of carbon dioxide
stimulate plant growth (which can be positive in the case of beneficial
species, but negative in terms of weeds and invasive species, and can
also lead to a reduction in plant

[[Page 63127]]

micronutrients) \49\ and cause ocean acidification. Nitrous oxide
depletes the levels of protective stratospheric ozone.\50\
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\49\ Ziska, L., A. Crimmins, A. Auclair, S. DeGrasse, J.F.
Garofalo, A.S. Khan, I. Loladze, A.A. P[eacute]rez de Le[oacute]n,
A.Showler, J. Thurston, and I. Walls, 2016: Ch. 7: Food Safety,
Nutrition, and Distribution. The Impacts of Climate Change on Human
Health in the United States: A Scientific Assessment. U.S. Global
Change Research Program, Washington, DC, 189-216. <a href="http://dx.doi.org/10.7930/J0ZP4417">http://dx.doi.org/10.7930/J0ZP4417</a>
\50\ WMO (World Meteorological Organization), Scientific
Assessment of Ozone Depletion: 2018, Global Ozone Research and
Monitoring Project--Report No. 58, 588 pp., Geneva, Switzerland,
2018.
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As methane is the primary GHG addressed in this proposal, it is
relevant to highlight some specific trends and impacts specific to
methane. Concentrations of methane reached 1879 parts per billion (ppb)
in 2020, more than two and a half times the preindustrial concentration
of 722 ppb.\51\ Moreover, the 2020 concentration was an increase of
almost 13 ppb over 2019--the largest annual increase in methane
concentrations of the period since the early 1990s, continuing a trend
of rapid rise since a temporary pause ended in 2007.\52\ Methane has a
high radiative efficiency--almost 30 times that of carbon dioxide per
ppb (and therefore, 80 times as much per unit mass).\53\ In addition,
methane contributes to climate change through chemical reactions in the
atmosphere that produce tropospheric ozone and stratospheric water
vapor. Human emissions of methane are responsible for about one third
of the warming due to well-mixed GHGs, the second most important human
warming agent after carbon dioxide.\54\ Because of the substantial
emissions of methane, and its radiative efficiency, methane mitigation
is one of the best opportunities for reducing near term warming.
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\51\ Blunden et al., 2020.
\52\ NOAA, <a href="https://gml.noaa.gov/webdata/ccgg/trends/ch4/ch4_annmean_gl.txt">https://gml.noaa.gov/webdata/ccgg/trends/ch4/ch4_annmean_gl.txt</a>, accessed August 19th, 2021.
\53\ IPCC, 2021.
\54\ IPCC, 2021.
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The tropospheric ozone produced by the reaction of methane in the
atmosphere has harmful effects for human health and plant growth in
addition to its climate effects.\55\ In remote areas, methane is an
important precursor to tropospheric ozone formation.\56\ Approximately
50 percent of the global annual mean ozone increase since preindustrial
times is believed to be due to anthropogenic methane.\57\ Projections
of future emissions also indicate that methane is likely to be a key
contributor to ozone concentrations in the future.\58\ Unlike
NO<INF>X</INF> and VOC, which affect ozone concentrations regionally
and at hourly time scales, methane emissions affect ozone
concentrations globally and on decadal time scales given methane's long
atmospheric lifetime when compared to these other ozone precursors.\59\
Reducing methane emissions, therefore, will contribute to efforts to
reduce global background ozone concentrations that contribute to the
incidence of ozone-related health effects.\60\ The benefits of such
reductions are global and occur in both urban and rural areas.
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\55\ Nolte, C.G., P.D. Dolwick, N. Fann, L.W. Horowitz, V. Naik,
R.W. Pinder, T.L. Spero, D.A. Winner, and L.H. Ziska, 2018: Air
Quality. In Impacts, Risks, and Adaptation in the United States:
Fourth National Climate Assessment, Volume II [Reidmiller, D.R.,
C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K.
Maycock, and B.C. Stewart (eds.)]. U.S. Global Change Research
Program, Washington, DC, USA, pp. 512-538. doi: 10.7930/NCA4. 2018.
CH13
\56\ U.S. EPA. 2013. ``Integrated Science Assessment for Ozone
and Related Photochemical Oxidants (Final Report).'' EPA-600-R-10-
076F. National Center for Environmental Assessment--RTP Division.
Available at <a href="http://www.epa.gov/ncea/isa/">http://www.epa.gov/ncea/isa/</a>.
\57\ Myhre, G., D. Shindell, F.-M. Br[eacute]on, W. Collins, J.
Fuglestvedt, J. Huang, D. Koch, J.-F. Lamarque, D. Lee, B. Mendoza,
T. Nakajima, A. Robock, G. Stephens, T. Takemura and H. Zhang, 2013:
Anthropogenic and Natural Radiative Forcing. In: Climate Change
2013: The Physical Science Basis. Contribution of Working Group I to
the Fifth Assessment Report of the Intergovernmental Panel on
Climate Change [Stocker, T.F., D. Qin, G.-K. Plattner, M. Tignor,
S.K. Allen, J. Boschung, A. Nauels, Y. Xia, V. Bex and P.M. Midgley
(eds.)]. Cambridge University Press, Cambridge, United Kingdom and
New York, NY, USA. Pg. 680.
\58\ Ibid.
\59\ Ibid.
\60\ USGCRP, 2018.
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These scientific assessments and documented observed changes in the
climate of the planet and of the U.S. present clear support regarding
the current and future dangers of climate change and the importance of
GHG mitigation.
2. VOC
Many VOC can be classified as HAP (e.g., benzene),\61\ which can
lead to a variety of health concerns such as cancer and noncancer
illnesses (e.g., respiratory, neurological). Further, VOC are one of
the key precursors in the formation of ozone. Tropospheric, or ground-
level, ozone is formed through reactions of VOC and NO<INF>X</INF> in
the presence of sunlight. Ozone formation can be controlled to some
extent through reductions in emissions of the ozone precursors VOC and
NO<INF>X.</INF> Recent observational and modeling studies have found
that VOC emissions from oil and natural gas operations can impact ozone
levels.\62\ \63\ \64\ \65\ A significantly expanded body of scientific
evidence shows that ozone can cause a number of harmful effects on
health and the environment. Exposure to ozone can cause respiratory
system effects such as difficulty breathing and airway inflammation.
For people with lung diseases such as asthma and chronic obstructive
pulmonary disease (COPD), these effects can lead to emergency room
visits and hospital admissions. Studies have also found that ozone
exposure is likely to cause premature death from lung or heart
diseases. In addition, evidence indicates that long-term exposure to
ozone is likely to result in harmful respiratory effects, including
respiratory symptoms and the development of asthma. People most at risk
from breathing air containing ozone include children; people with
asthma and other respiratory diseases; older adults; and people who are
active outdoors, especially outdoor workers. An estimated 25.9 million
people have asthma in the U.S., including almost 7.1 million children.
Asthma disproportionately affects children, families with lower
incomes, and minorities, including Puerto Ricans, Native Americans/
Alaska Natives, and African Americans.\66\
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\61\ Benzene Integrated Risk Information System (IRIS)
Assessment: <a href="https://cfpub.epa.gov/ncea/iris2/chemicalLanding.cfm?substance_nmbr=276">https://cfpub.epa.gov/ncea/iris2/chemicalLanding.cfm?substance_nmbr=276</a>.
\62\ Benedict, K. B., Zhou, Y., Sive, B. C., Prenni, A. J.,
Gebhart, K. A., Fischer, E. V., . . . & Collett Jr, J. L. 2019.
Volatile organic compounds and ozone in Rocky Mountain National Park
during FRAPPE. Atmospheric Chemistry and Physics, 19(1), 499-521.
\63\ Lindaas, J., Farmer, D. K., Pollack, I. B., Abeleira, A.,
Flocke, F., & Fischer, E. V. 2019. Acyl peroxy nitrates link oil and
natural gas emissions to high ozone abundances in the Colorado Front
Range during summer 2015. Journal of Geophysical Research:
Atmospheres, 124(4), 2336-2350.
\64\ McDuffie, E. E., Edwards, P. M., Gilman, J. B., Lerner, B.
M., Dub[eacute], W. P., Trainer, M., . . . & Brown, S. S. 2016.
Influence of oil and gas emissions on summertime ozone in the
Colorado Northern Front Range. Journal of Geophysical Research:
Atmospheres, 121(14), 8712-8729.
\65\ Tzompa[hyphen]Sosa, Z. A., & Fischer, E. V. 2021. Impacts
of emissions of C2[hyphen]C5 alkanes from the US oil and gas sector
on ozone and other secondary species. Journal of Geophysical
Research: Atmospheres, 126(1), e2019JD031935.
\66\ National Health Interview Survey (NHIS) Data, 2011. <a href="http://www.cdc.gov/asthma/nhis/2011/data.htm">http://www.cdc.gov/asthma/nhis/2011/data.htm</a>.
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In the EPA's 2020 Integrated Science Assessment (ISA) for Ozone and
Related Photochemical Oxidants,\67\ the EPA estimates the incidence of
air pollution effects for those health endpoints above where the ISA
classified as either causal or likely-to-be-causal. In brief, the ISA
for ozone found short-term (less than one month) exposures to ozone to
be

[[Page 63128]]

causally related to respiratory effects, a ``likely to be causal''
relationship with metabolic effects and a ``suggestive of, but not
sufficient to infer, a causal relationship'' for central nervous system
effects, cardiovascular effects, and total mortality. The ISA reported
that long-term exposures (one month or longer) to ozone are ``likely to
be causal'' for respiratory effects including respiratory mortality,
and a ``suggestive of, but not sufficient to infer, a causal
relationship'' for cardiovascular effects, reproductive effects,
central nervous system effects, metabolic effects, and total mortality.
An example of quantified incidence of ozone health effects can be found
in the Regulatory Impact Analysis for the Final Revised Cross-State Air
Pollution Rule (CSAPR) Update.
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\67\ Integrated Science Assessment (ISA) for Ozone and Related
Photochemical Oxidants (Final Report). U.S. Environmental Protection
Agency, Washington, DC, EPA/600/R-20/012, 2020.
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Scientific evidence also shows that repeated exposure to ozone can
reduce growth and have other harmful effects on sensitive plants and
trees. These types of effects have the potential to impact ecosystems
and the benefits they provide.
3. SO<INF>2</INF>
Current scientific evidence links short-term exposures to
SO<INF>2</INF>, ranging from 5 minutes to 24 hours, with an array of
adverse respiratory effects including bronchoconstriction and increased
asthma symptoms. These effects are particularly important for
asthmatics at elevated ventilation rates (e.g., while exercising or
playing).
Studies also show an association between short-term exposure and
increased visits to emergency departments and hospital admissions for
respiratory illnesses, particularly in at-risk populations including
children, the elderly, and asthmatics.
SO<INF>2</INF> in the air can also damage the leaves of plants,
decrease their ability to produce food--photosynthesis--and decrease
their growth. In addition to directly affecting plants, SO<INF>2</INF>,
when deposited on land and in estuaries, lakes, and streams, can
acidify sensitive ecosystems resulting in a range of harmful indirect
effects on plants, soils, water quality, and fish and wildlife (e.g.,
changes in biodiversity and loss of habitat, reduced tree growth, loss
of fish species). Sulfur deposition to waterways also plays a causal
role in the methylation of mercury.\68\
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\68\ U.S. EPA. Integrated Science Assessment (ISA) for Oxides of
Nitrogen and Sulfur Ecological Criteria (2008 Final Report). U.S.
Environmental Protection Agency, Washington, DC, EPA/600/R-08/082F,
2008.
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B. Oil and Natural Gas Industry and Its Emissions

This section generally describes the structure of the Oil and
Natural Gas Industry, the interconnected production, processing,
transmission and storage, and distribution segments that move product
from well to market, and types of emissions sources in each segment and
the industry's emissions.
1. Oil and Natural Gas Industry--Structure
The EPA characterizes the oil and natural gas industry's operations
as being generally composed of four segments: (1) Extraction and
production of crude oil and natural gas (``oil and natural gas
production''), (2) natural gas processing, (3) natural gas transmission
and storage, and (4) natural gas distribution.\69\ \70\ The EPA
regulates oil refineries as a separate source category; accordingly, as
with the previous oil and gas NSPS rulemakings, for purposes of this
proposed rulemaking, for crude oil, the EPA's focus is on operations
from the well to the point of custody transfer at a petroleum refinery,
while for natural gas, the focus is on all operations from the well to
the local distribution company custody transfer station commonly
referred to as the ``city-gate.'' \71\
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\69\ The EPA previously described an overview of the sector in
section 2.0 of the 2011 Background Technical Support Document to 40
CFR part 60, subpart OOOO, located at Docket ID Item No. EPA-HQ-OAR-
2010-0505-0045, and section 2.0 of the 2016 Background Technical
Support Document to 40 CFR part 60, subpart OOOOa, located at Docket
ID Item No. EPA-HQ-OAR-2010-0505-7631.
\70\ While generally oil and natural gas production includes
both onshore and offshore operations, 40 CFR part 60, subpart OOOOa
addresses onshore operations.
\71\ For regulatory purposes, the EPA defines the Crude Oil and
Natural Gas source category to mean (1) Crude oil production, which
includes the well and extends to the point of custody transfer to
the crude oil transmission pipeline or any other forms of
transportation; and (2) Natural gas production, processing,
transmission, and storage, which include the well and extend to, but
do not include, the local distribution company custody transfer
station. The distribution segment is not part of the defined source
category.
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a. Production Segment
The oil and natural gas production segment includes the wells and
all related processes used in the extraction, production, recovery,
lifting, stabilization, and separation or treatment of oil and/or
natural gas (including condensate). Although many wells produce a
combination of oil and natural gas, wells can generally be grouped into
two categories, oil wells and natural gas wells. Oil wells comprise two
types, oil wells that produce crude oil only and oil wells that produce
both crude oil and natural gas (commonly referred to as ``associated''
gas). Production equipment and components located on the well pad may
include, but are not limited to, wells and related casing heads; tubing
heads; ``Christmas tree'' piping, pumps, compressors; heater treaters;
separators; storage vessels; pneumatic devices; and dehydrators.
Production operations include well drilling, completion, and
recompletion processes, including all the portable non-self-propelled
apparatuses associated with those operations.
Other sites that are part of the production segment include
``centralized tank batteries,'' stand-alone sites where oil,
condensate, produced water, and natural gas from several wells may be
separated, stored, or treated. The production segment also includes
gathering pipelines, gathering and boosting compressor stations, and
related components that collect and transport the oil, natural gas, and
other materials and wastes from the wells to the refineries or natural
gas processing plants.
Of these products, crude oil and natural gas undergo successive,
separate processing. Crude oil is separated from water and other
impurities and transported to a refinery via truck, railcar, or
pipeline. As noted above, the EPA treats oil refineries as a separate
source category, accordingly, for present purposes, the oil component
of the production segment ends at the point of custody transfer at the
refinery.\72\
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\72\ See 40 CFR part 60, subparts J and Ja, and 40 CFR part 63,
subparts CC and UUU.
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The separated, unprocessed natural gas is commonly referred to as
field gas and is composed of methane, natural gas liquids (NGL), and
other impurities, such as water vapor, H<INF>2</INF>S, CO<INF>2</INF>,
helium, and nitrogen. Ethane, propane, butane, isobutane, and pentane
are all considered NGL and often are sold separately for a variety of
different uses. Natural gas with high methane content is referred to as
``dry gas,'' while natural gas with significant amounts of ethane,
propane, or butane is referred to as ``wet gas.'' Natural gas typically
is sent to gas processing plants in order to separate NGLs for use as
feedstock for petrochemical plants, burned for space heating and
cooking, or blended into vehicle fuel.
b. Processing Segment
The natural gas processing segment consists of separating certain
hydrocarbons (HC) and fluids from the natural gas to produce ``pipeline
quality'' dry natural gas. The degree and

[[Page 63129]]

location of processing is dependent on factors such as the type of
natural gas (e.g., wet or dry gas), market conditions, and company
contract specifications. Typically, processing of natural gas begins in
the field and continues as the gas is moved from the field through
gathering and boosting compressor stations to natural gas processing
plants, where the complete processing of natural gas takes place.
Natural gas processing operations separate and recover NGL or other
non-methane gases and liquids from field gas through one or more of the
following processes: oil and condensate separation, water removal,
separation of NGL, sulfur and CO<INF>2</INF> removal, fractionation of
NGL, and other processes, such as the capture of CO<INF>2</INF>
separated from natural gas streams for delivery outside the facility.
c. Transmission and Storage Segment
Once natural gas processing is complete, the resulting natural gas
exits the natural gas process plant and enters the transmission and
storage segment where it is transmitted to storage and/or distribution
to the end user.
Pipelines in the natural gas transmission and storage segment can
be interstate pipelines, which carry natural gas across state
boundaries, or intrastate pipelines, which transport the gas within a
single state. Basic components of the two types of pipelines are the
same, though interstate pipelines may be of a larger diameter and
operated at a higher pressure. To ensure that the natural gas continues
to flow through the pipeline, the natural gas must periodically be
compressed, thereby increasing its pressure. Compressor stations
perform this function and are usually placed at 40- to 100-mile
intervals along the pipeline. At a compressor station, the natural gas
enters the station, where it is compressed by reciprocating or
centrifugal compressors.
Another part of the transmission and storage segment are
aboveground and underground natural gas storage facilities. Storage
facilities hold natural gas for use during peak seasons. The main
difference between underground and aboveground storage sites is that
storage takes place in storage vessels constructed of non-earthen
materials in aboveground storage. Underground storage of natural gas
typically occurs in depleted natural gas or oil reservoirs and salt
dome caverns. One purpose of this storage is for load balancing
(equalizing the receipt and delivery of natural gas). At an underground
storage site, typically other processes occur, including compression,
dehydration, and flow measurement.
d. Distribution Segment
The distribution segment provides the final step in delivering
natural gas to customers.\73\ The natural gas enters the distribution
segment from delivery points located along interstate and intrastate
transmission pipelines to business and household customers. The
delivery point where the natural gas leaves the transmission and
storage segment and enters the distribution segment is a local
distribution company's custody transfer station, commonly referred to
as the ``city-gate.'' Natural gas distribution systems consist of over
2 million miles of piping, including mains and service pipelines to the
customers. If the distribution network is large, compressor stations
may be necessary to maintain flow; however, these stations are
typically smaller than transmission compressor stations. Distribution
systems include metering stations and regulating stations, which allow
distribution companies to monitor the natural gas as it flows through
the system.
---------------------------------------------------------------------------

\73\ The distribution segment is not included in the definition
of the Crude Oil and Natural Gas source category that is currently
regulated under 40 CFR part 60, subpart OOOOa.
---------------------------------------------------------------------------

2. Oil and Natural Gas Industry--Emissions
The oil and natural gas industry sector is the largest source of
industrial methane emissions in the U.S.\74\ Natural gas is comprised
primarily of methane; every natural gas leak or intentional release
through venting or other industrial processes constitutes a release of
methane. Methane is a potent greenhouse gas; over a 100-year timeframe,
it is nearly 30 times more powerful at trapping climate warming heat
than CO<INF>2</INF>, and over a 20-year timeframe, it is 83 times more
powerful.\75\ Because methane is a powerful greenhouse gas and is
emitted in large quantities, reductions in methane emissions provide a
significant benefit in reducing near-term warming. Indeed, one third of
the warming due to GHGs that we are experiencing today is due to human
emissions of methane. Additionally, the Crude Oil and Natural Gas
sector emits, in varying concentrations and amounts, a wide range of
other health-harming pollutants, including VOCs, SO<INF>2</INF>,
NO<INF>X</INF>, H<INF>2</INF>S, CS<INF>2</INF>, and COS. The year 2016
modeling platform produced by U.S. EPA estimated about 3 million tons
of VOC are emitted by oil and gas-related sources.\76\
---------------------------------------------------------------------------

\74\ H.R. Rep. No. 117-64, 4 (2021) (Report by the House
Committee on Energy and Commerce concerning H.J. Res. 34, to
disapprove the 2020 Policy Rule) (House Report).
\75\ IPCC, 2021.
\76\ <a href="https://www.epa.gov/sites/default/files/2020-11/documents/2016v1_emismod_tsd_508.pdf">https://www.epa.gov/sites/default/files/2020-11/documents/2016v1_emismod_tsd_508.pdf</a>.
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Emissions of methane and these co-pollutants occur in every segment
of the Crude Oil and Natural Gas source category. Many of the processes
and equipment types that contribute to these emissions are found in
every segment of the source category and are highly similar across
segments. Emissions from the crude oil portion of the regulated source
category result primarily from field production operations, such as
venting of associated gas from oil wells, oil storage vessels, and
production-related equipment such as gas dehydrators, pig traps, and
pneumatic devices. Emissions from the natural gas portion of the
industry can occur in all segments. As natural gas moves through the
system, emissions primarily result from intentional venting through
normal operations, routine maintenance, unintentional fugitive
emissions, flaring, malfunctions, and system upsets. Venting can occur
through equipment design or operational practices, such as the
continuous and intermittent bleed of gas from pneumatic controllers
(devices that control gas flows, levels, temperatures, and pressures in
the equipment). In addition to vented emissions, emissions can occur
from leaking equipment (also referred to as fugitive emissions) in all
parts of the infrastructure, including major production and processing
equipment (e.g., separators or storage vessels) and individual
components (e.g., valves or connectors). Flares are commonly used
throughout each segment in the Oil and Natural Gas Industry as a
control device to provide pressure relief to prevent risk of explosions
and to destroy methane, which has a high global warming potential, and
convert it to CO<INF>2</INF> which has a lower global warming
potential, and to also control other air pollutants such as VOC.
``Super-emitting'' events, sites, or equipment, where a small
proportion of sources account for a large proportion of overall
emissions, can occur throughout the Oil and Natural Gas Industry and
have been observed to occur in the equipment types and activities
covered by this proposed action. There are a number of definitions for
the term ``super-emitter.'' A 2018 National Academies of Sciences,
Engineering, and Medicine report \77\ on methane discussed three
categories of ``high-emitting'' sources:
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\77\ <a href="https://www.nap.edu/download/24987#">https://www.nap.edu/download/24987#</a>.

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[[Page 63130]]

<bullet> Routine or ``chronic'' high-emitting sources, which
regularly emit at higher rates relative to ``peers'' in a sample.
Examples include large facilities, or large emissions at smaller
facilities caused by poor design or operational practices.
<bullet> Episodic high-emitting sources, which are typically large
in nature and are generally intentional releases from known maintenance
events at a facility. Examples include gas well liquids unloading, well
workovers and maintenance activities, and compressor station or
pipeline blowdowns.
<bullet> Malfunctioning high-emitting sources, which can be either
intermittent or prolonged in nature and result from malfunctions and
poor work practices. Examples include malfunctioning intermittent
pneumatic controllers and stuck open dump valves. Another example is
well blowout events. For example, a 2018 well blowout in Ohio was
estimated to have emitted over 60,000 tons of methane.\78\
---------------------------------------------------------------------------

\78\ Pandey et al. (2019). Satellite observations reveal extreme
methane leakage from a natural gas well blowout. PNAS December 26,
2019 116 (52) 26376-26381.
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Super-emitters have been observed at many different scales, from
site-level to component-level, across many research studies.\79\
Studies will often develop a study-specific definition such as a top
percentile of emissions in a study population (e.g., top 10 percent),
emissions exceeding a certain threshold (e.g., 26 kg/day), emissions
over a certain detection threshold (e.g., 1-3 g/s) or as facilities
with the highest proportional emission rate.\80\ For certain equipment
types and activities, the EPA's GHG emission estimates include the full
range of conditions, including ``super-emitters.'' For other
situations, where data are available, emissions estimates for abnormal
events are calculated separately and included in the Inventory of U.S.
Greenhouse Gas Emissions and Sinks (``GHGI'') (e.g., Aliso Canyon leak
event).\81\ Given the variability of practices and technologies across
oil and gas systems and the occurrence of episodic events, it is
possible that the EPA's estimates do not include all methane emissions
from abnormal events. The EPA continues to work through its stakeholder
process to review new data from the EPA's Greenhouse Gas Reporting
Program (``GHGRP'') petroleum and natural gas systems source category
(40 CFR part 98, subpart W, also referred to as ``GHGRP subpart W'')
and research studies to assess how emissions estimates can be improved.
Because lost gas, whether through fugitive emissions, unintentional gas
carry through, or intentional releases, represents lost earning
potential, the industry benefits from capturing and selling emissions
of natural gas (and methane). Limiting super-emitters through actions
included in this rule such as reducing fugitive emissions, using lower
emitting equipment where feasible, and employing best management
practices will not only reduce emissions but reduce the loss of revenue
from this valuable commodity.
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\79\ See for example, Brandt, A., Heath, G., Cooley, D. (2016)
Methane leaks from natural gas systems follow extreme distributions.
Environ. Sci. Technol., DOI: 10.1021/acs.est.6b04303; Zavala-Araiza,
D., Alvarez, R.A., Lyon, D.R., Allen, D.T., Marchese, A.J.,
Zimmerle, D.J., & Hamburg, S.P. (2017). Super-emitters in natural
gas infrastructure are caused by abnormal process conditions. Nature
communications, 8, 14012; Mitchell, A., et al. (2015), Measurements
of Methane Emissions from Natural Gas Gathering Facilities and
Processing Plants: Measurement Results. Environmental Science &
Technology, 49(5), 3219-3227; Allen, D., et al. (2014), Methane
Emissions from Process Equipment at Natural Gas Production Sites in
the United States: Pneumatic Controllers. Environmental Science &
Technology.
\80\ Caulton et al. (2019). Importance of Super-emitter Natural
Gas Well Pads in the Marcellus Shale. Environ. Sci. Technol. 2019,
53, 4747-4754; Zavala-Araiza, D., Alvarez, R., Lyon, D, et al.
(2016). Super-emitters in natural gas infrastructure are caused by
abnormal process conditions. Nat Commun 8, 14012 (2017). <a href="https://www.nature.com/articles/ncomms14012">https://www.nature.com/articles/ncomms14012</a>; Lyon, et al. (2016). Aerial
Surveys of Elevated Hydrocarbon Emissions from Oil and Gas
Production Sites. Environ. Sci. Technol. 2016, 50, 4877-4886.
<a href="https://pubs.acs.org/doi/10.1021/acs.est.6b00705">https://pubs.acs.org/doi/10.1021/acs.est.6b00705</a>; and Zavala-Araiza
D, et al. (2015). Toward a functional definition of methane
superemitters: Application to natural gas production sites. 49
ENVTL. SCI. & TECH. 8167, 8168 (2015). <a href="https://pubs.acs.org/doi/10.1021/acs.est.5b00133">https://pubs.acs.org/doi/10.1021/acs.est.5b00133</a>.
\81\ The EPA's emission estimates in the GHGI are developed with
the best data available at the time of their development, including
data from the Greenhouse Gas Reporting Program (GHGRP) in 40 CFR
part 98, subpart W, and from recent research studies. GHGRP subpart
W emissions data used in the GHGI are quantified by reporters using
direct measurements, engineering calculations, or emission factors,
as specified by the regulation. The EPA has a multi-step data
verification process for GHGRP subpart W data, including automatic
checks during data-entry, statistical analyses on completed reports,
and staff review of the reported data. Based on the results of the
verification process, the EPA follows up with facilities to resolve
mistakes that may have occurred.
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Below we provide estimated emissions of methane, VOC, and
SO<INF>2</INF> from Oil and Natural Gas Industry operation sources.
Methane emissions in the U.S. and from the Oil and Natural Gas
industry. Official U.S. estimates of national level GHG emissions and
sinks are developed by the EPA for the GHGI in fulfillment of
commitments under the United Nations Framework Convention on Climate
Change. The GHGI, which includes recent trends, is organized by
industrial sector. The oil and natural gas production, natural gas
processing, and natural gas transmission and storage sectors emit 28
percent of U.S. anthropogenic methane. Table 7 below presents total
U.S. anthropogenic methane emissions for the years 1990, 2010, and
2019.
In accordance with the practice of the EPA GHGI, the EPA GHGRP, and
international reporting standards under the UN Framework Convention on
Climate Change, the 2007 IPCC Fourth Assessment Report value of the
methane 100-year GWP is used for weighting emissions in the following
tables. The 100-year GWP value of 25 for methane indicates that one ton
of methane has approximately as much climate impact over a 100-year
period as 25 tons of carbon dioxide. The most recent IPCC AR6
assessment has estimated a slightly larger 100-year GWP of methane of
almost 30 (specifically, either 27.2 or 29.8 depending on whether the
value includes the carbon dioxide produced by the oxidation of methane
in the atmosphere). As mentioned earlier, because methane has a shorter
lifetime than carbon dioxide, the emissions of a ton of methane will
have more impact earlier in the 100-year timespan and less impact later
in the 100-year timespan relative to the emissions of a 100-year GWP-
equivalent quantity of carbon dioxide: When using the AR6 20-year GWP
of 81, which only looks at impacts over the next 20 years, the total US
emissions of methane in 2019 would be equivalent to about 2140 MMT
CO<INF>2</INF>.

Table 7--U.S. Methane Emissions by Sector
[Million metric tons carbon dioxide equivalent (MMT CO2 EQ.)]
----------------------------------------------------------------------------------------------------------------
Sector 1990 2010 2019
----------------------------------------------------------------------------------------------------------------
Oil and Natural Gas Production, and Natural Gas Processing and 189 176 182
Transmission and Storage.......................................
Landfills....................................................... 177 124 114
Enteric Fermentation............................................ 165 172 179

[[Page 63131]]

Coal Mining..................................................... 96 82 47
Manure Management............................................... 37 55 62
Other Oil and Gas Sources....................................... 46 17 15
Wastewater Treatment............................................ 20 19 18
Other Methane Sources \82\...................................... 46 47 42
-----------------------------------------------
Total Methane Emissions..................................... 777 692 660
----------------------------------------------------------------------------------------------------------------
Emissions from the Inventory of United States Greenhouse Gas Emissions and Sinks: 1990-2019 (published April 14,
2021), calculated using GWP of 25. Note: Totals may not sum due to rounding.

Table 8 below presents total methane emissions from natural gas
production through transmission and storage and petroleum production,
for years 1990, 2010, and 2019, in MMT CO<INF>2</INF> Eq. (or million
metric tons CO<INF>2</INF> Eq.) of methane.
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\82\ Other sources include rice cultivation, forest land,
stationary combustion, abandoned oil and natural gas wells,
abandoned coal mines, mobile combustion, composting, and several
sources emitting less than 1 MMT CO<INF>2</INF> Eq. in 2019.

Table 8--U.S. Methane Emissions From Natural Gas and Petroleum Systems
[MMT CO2 EQ.]
----------------------------------------------------------------------------------------------------------------
Sector 1990 2010 2019
----------------------------------------------------------------------------------------------------------------
Natural Gas Production.......................................... 63 97 94
Natural Gas Processing.......................................... 21 10 12
Natural Gas Transmission and Storage............................ 57 30 37
Petroleum Production............................................ 48 39 38
----------------------------------------------------------------------------------------------------------------
Emissions from the Inventory of United States Greenhouse Gas Emissions and Sinks: 1990-2019 (published April 14,
2021), calculated using GWP of 25. Note: Totals may not sum due to rounding.

Global GHG Emissions. For additional background information and
context, we used 2018 World Resources Institute Climate Watch data to
make comparisons between U.S. oil and natural gas production and
natural gas processing and transmission and storage emissions and the
emissions inventories of entire countries and regions.\83\ The U.S.
methane emissions from oil and natural gas production and natural gas
processing and transmission and storage constitute 0.4 percent of total
global emissions of all GHGs (48,601 MMT CO2 Eq.) from all sources.\84\
Ranking U.S. emissions of methane from oil and natural gas production
and natural gas processing and transmission and storage against total
GHG emissions for entire countries (using 2018 Climate Watch data),
shows that these emissions are comparatively large as they exceed the
national-level emissions totals for all GHGs and all anthropogenic
sources for Colombia, the Czech Republic, Chile, Belgium, and over 160
other countries. What that means is that the U.S. emits more of a
single GHG--methane--from a single sector--the oil and gas sector--than
the total combined GHGs emitted by 164 out of 194 total countries.
Furthermore, U.S. emissions of methane from oil and natural gas
production and natural gas processing and transmission and storage are
greater than the sum of total emissions of 64 of the lowest-emitting
countries and territories, using the 2018 Climate Watch data set.
---------------------------------------------------------------------------

\83\ The Climate Watch figures presented here come from the PIK
PRIMAP-hist dataset included on Climate Watch. The PIK PRIMAP-hist
dataset combines the United Nations Framework Convention on Climate
Change (UNFCCC) reported data where available and fills gaps with
other sources. It does not include land use change and forestry but
covers all other sectors. <a href="https://www.climatewatchdata.org/ghg-emissions?end_year=2018&source=PIK&start_year=1990">https://www.climatewatchdata.org/ghg-emissions?end_year=2018&source=PIK&start_year=1990</a>.
---------------------------------------------------------------------------

As illustrated by the domestic and global GHGs comparison data
summarized above, the collective GHG emissions from the Crude Oil and
Natural Gas source category are significant, whether the comparison is
domestic (where this sector is the largest source of methane emissions,
accounting for 28 percent of U.S. methane and 3 percent of total U.S.
emissions of all GHGs), global (where this sector, accounting for 0.4
percent of all global GHG emissions, emits more than the total national
emissions of over 160 countries, and combined emissions of over 60
countries), or when both the domestic and global GHG emissions
comparisons are viewed in combination. Consideration of the global
context is important. GHG emissions from U.S. Oil and Natural Gas
production and natural gas processing and transmission and storage will
become globally well-mixed in the atmosphere, and thus will have an
effect on the U.S. regional climate, as well as the global climate as a
whole for years and indeed many decades to come. No single GHG source
category dominates on the global scale. While the Crude Oil and Natural
Gas source category, like many (if not all) individual GHG source
categories, could appear small in comparison to total emissions, in
fact, it is a very important contributor in terms of both absolute
emissions, and in comparison to other source categories globally or
within the U.S.
The IPCC AR6 assessment determined that ``From a physical science
perspective, limiting human-induced global warming to a specific level
requires limiting cumulative CO<INF>2</INF> emissions, reaching at
least net zero CO<INF>2</INF> emissions, along with strong reductions
in other GHG emissions.'' The report also singled out the importance of
``strong and sustained CH<INF>4</INF> emission reductions'' in part due
to the short lifetime of methane leading to the near-term cooling from
reductions in methane emissions, which can offset the warming that will
result due to reductions in emissions of cooling aerosols such as
SO<INF>2</INF>. Therefore, reducing methane emissions globally is an
important facet in any strategy to limit warming. In the oil and gas
sector,

[[Page 63132]]

methane reductions are highly achievable and cost-effective using
existing and well-known solutions and technologies that actually result
in recovery of saleable product.
VOC and SO<INF>2</INF> emissions in the U.S. and from the oil and
natural gas industry. Official U.S. estimates of national level VOC and
SO<INF>2</INF> emissions are developed by the EPA for the National
Emissions Inventory (NEI), for which States are required to submit
information under 40 CFR part 51, subpart A. Data in the NEI may be
organized by various data points, including sector, NAICS code, and
Source Classification Code. Tables 9 and 10 below present total U.S.
VOC and SO<INF>2</INF> emissions by sector, respectively, for the year
2017, in kilotons (kt) (or thousand metric tons). The oil and natural
gas sector represents the top anthropogenic U.S. sector for VOC
emissions after removing the biogenics and wildfire sectors in Table 9
(about 20% of the total VOC emitting by anthropogenic sources). About
2.5 percent of the total U.S. anthropogenic SO<INF>2</INF> comes from
the oil and natural gas sector.

Table 9--U.S. VOC Emissions by Sector
[kt]
------------------------------------------------------------------------
Sector 2017
------------------------------------------------------------------------
Biogenics--Vegetation and Soil.......................... 25,823
Fires--Wildfires........................................ 4,578
Oil and Natural Gas Production, and Natural Gas 2,504
Processing and Transmission............................
Fires--Prescribed Fires................................. 2,042
Solvent--Consumer and Commercial Solvent Use............ 1,610
Mobile--On-Road non-Diesel Light Duty Vehicles.......... 1,507
Mobile--Non-Road Equipment--Gasoline.................... 1,009
Other VOC Sources \85\.................................. 4,045
---------------
Total VOC Emissions................................. 43,118
------------------------------------------------------------------------
Emissions from the 2017 NEI (released April 2020). Note: Totals may not
sum due to rounding.

Table 10--U.S. SO2 Emissions by Sector
[kt]
------------------------------------------------------------------------
Sector 2017
------------------------------------------------------------------------
Fuel Combustion--Electric Generation--Coal.............. 1,319
Fuel Combustion--Industrial Boilers, Internal Combustion 212
Engines--Coal..........................................
Mobile--Commercial Marine Vessels....................... 183
Industrial Processes--Not Elsewhere Classified.......... 138
Fires--Wildfires........................................ 135
Industrial Processes--Chemical Manufacturing............ 123
Oil and Natural Gas Production and Natural Gas 65
Processing and Transmission............................
Other SO2 Sources \86\.................................. 551
---------------
Total SO2 Emissions................................. 2,726
------------------------------------------------------------------------
Emissions from the 2017 NEI (released April 2020). Note: Totals may not
sum due to rounding.

Table 11 below presents total VOC and SO<INF>2</INF> emissions from
oil and natural gas production through transmission and storage, for
the year 2017, in kt. The contribution to the total anthropogenic VOC
emissions budget from the oil and gas sector has been increasing in
recent NEI cycles. In the 2017 NEI, the oil and gas sector makes up
about 25 percent of the total VOC emissions from anthropogenic sources.
The SO<INF>2</INF> emissions have been declining in just about every
anthropogenic sector, but the oil and gas sector is an exception where
SO<INF>2</INF> emissions have been slightly increasing or remaining
steady in some cases in recent years.
---------------------------------------------------------------------------

\85\ Other sources include remaining sources emitting less than
1,000 kt VOC in 2017.
\86\ Other sources include remaining sources emitting less than
100 kt SO<INF>2</INF> in 2017.

Table 11--U.S. VOC and SO2 Emissions From Natural Gas and Petroleum
Systems
[kt]
------------------------------------------------------------------------
Sector VOC SO2
------------------------------------------------------------------------
Oil and Natural Gas Production.......... 2,478 41
Natural Gas Processing.................. 12 23
Natural Gas Transmission and Storage.... 14 1
------------------------------------------------------------------------
Emissions from the 2017 NEI, (published April 2020), in kt (or thousand
metric tons). Note: Totals may not sum due to rounding.

[[Page 63133]]

IV. Statutory Background and Regulatory History

A. Statutory Background of CAA Sections 111(b), 111(d) and General
Implementing Regulations

The EPA's authority for this rule is CAA section 111, which governs
the establishment of standards of performance for stationary sources.
This section requires the EPA to list source categories to be
regulated, establish standards of performance for air pollutants
emitted by new sources in that source category, and establish EG for
States to establish standards of performance for certain pollutants
emitted by existing sources in that source category.
Specifically, CAA section 111(b)(1)(A) requires that a source
category be included on the list for regulation if, ``in [the EPA
Administrator's] judgment it causes, or contributes significantly to,
air pollution which may reasonably be anticipated to endanger public
health or welfare.'' This determination is commonly referred to as an
``endangerment finding'' and that phrase encompasses both of the
``causes or contributes significantly to'' component and the ``endanger
public health or welfare'' component of the determination. Once a
source category is listed, CAA section 111(b)(1)(B) requires that the
EPA propose and then promulgate ``standards of performance'' for new
sources in such source category. CAA section 111(a)(1) defines a
``standard of performance'' as ``a standard for emissions of air
pollutants which reflects the degree of emission limitation achievable
through the application of the best system of emission reduction which
(taking into account the cost of achieving such reduction and any non-
air quality health and environmental impact and energy requirements)
the Administrator determines has been adequately demonstrated.'' As
long recognized by the D.C. Circuit, ``[b]ecause Congress did not
assign the specific weight the Administrator should accord each of
these factors, the Administrator is free to exercise his discretion in
this area.'' New York v. Reilly, 969 F.2d 1147, 1150 (D.C. Cir. 1992).
See also Lignite Energy Council v. EPA, 198 F.3d 930, 933 (D.C. Cir.
1999) (``Lignite Energy Council'') (``Because section 111 does not set
forth the weight that be [sic] should assigned to each of these
factors, we have granted the agency a great degree of discretion in
balancing them'').
In determining whether a given system of emission reduction
qualifies as ``the best system of emission reduction . . . adequately
demonstrated,'' or ``BSER,'' CAA section 111(a)(1) requires that the
EPA take into account, among other factors, ``the cost of achieving
such reduction.'' As described in the proposal \87\ for the 2016 Rule
(85 FR 35824, June 3, 2016), the U.S. Court of Appeals for the District
of Columbia Circuit (the D.C. Circuit) has stated that in light of this
provision, the EPA may not adopt a standard the cost of which would be
``exorbitant,'' \88\ ``greater than the industry could bear and
survive,'' \89\ ``excessive,'' \90\ or ``unreasonable.'' \91\ These
formulations appear to be synonymous, and for convenience, in this
rulemaking, as in previous rulemakings, we will use reasonableness as
the standard, so that a control technology may be considered the ``best
system of emission reduction . . . adequately demonstrated'' if its
costs are reasonable, but cannot be considered the BSER if its costs
are unreasonable. See 80 FR 64662, 64720-21 (October 23, 2015).
---------------------------------------------------------------------------

\87\ 80 FR 56593, 56616 (September 18, 2015).
\88\ Lignite Energy Council, 198 F.3d at 933.
\89\ Portland Cement Ass'n v. EPA, 513 F.2d 506, 508 (D.C. Cir.
1975).
\90\ Sierra Club v. Costle, 657 F.2d 298, 343 (D.C. Cir. 1981).
\91\ Id.
---------------------------------------------------------------------------

CAA section 111(a) does not provide specific direction regarding
what metric or metrics to use in considering costs, affording the EPA
considerable discretion in choosing a means of cost consideration.\92\
In this rulemaking, we evaluated whether a control cost is reasonable
under a number of approaches that we find appropriate for assessing the
types of controls at issue. For example, in evaluating controls for
reducing VOC and methane emissions from new sources, we considered a
control's cost effectiveness under both a ``single pollutant cost-
effectiveness'' approach and a ``multipollutant cost-effectiveness''
approach, in order to appropriately take into account that the systems
of emission reduction considered in this rule typically achieve
reductions in multiple pollutants at once and secure a multiplicity of
climate and public health benefits.\93\ We also evaluated costs at a
sector level by assessing the projected new capital expenditures
required under the proposal (compared to overall new capital
expenditures by the sector) and the projected compliance costs
(compared to overall annu

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