Rule2022-20870
Limited Approval, Limited Disapproval of California Air Plan Revisions; California Air Resources Board
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 30, 2022
Effective
October 31, 2022
Issuing agencies
Environmental Protection Agency
Abstract
The Environmental Protection Agency (EPA) is finalizing a limited approval and limited disapproval of California Code of Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 4, Subarticle 13: Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (Oil and Gas Methane Rule) into the California State Implementation Plan (SIP). These revisions concern emissions of volatile organic compounds (VOCs) from crude oil and natural gas facilities. Under the authority of the Clean Air Act (CAA or the Act), this action simultaneously approves a state rule that regulates these emission sources and identifies deficiencies with the rule that must be corrected for the EPA to grant full approval of the rule. We are also finalizing disapprovals of the reasonably available control technology (RACT) demonstrations for the 2008 and 2015 ozone National Ambient Air Quality Standards (NAAQS) for sources covered by the EPA's 2016 Control Techniques Guidelines for the Oil and Natural Gas Industry (Oil and Gas CTG) for the Sacramento Metropolitan Air Quality Management District (SMAQMD), San Joaquin Valley Air Pollution Control District (SJVAPCD), South Coast Air Quality Management District (SCAQMD), Ventura County Air Pollution Control District (VCAPCD), and the Yolo-Solano Air Quality Management District (YSAQMD).
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 189 (Friday, September 30, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 189 (Friday, September 30, 2022)]
[Rules and Regulations]
[Pages 59314-59320]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-20870]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R09-OAR-2022-0416; FRL-9820-02-R9]
Limited Approval, Limited Disapproval of California Air Plan
Revisions; California Air Resources Board
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is finalizing a
limited approval and limited disapproval of California Code of
Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 Climate
Change, Article 4, Subarticle 13: Greenhouse Gas Emission Standards for
Crude Oil and Natural Gas Facilities (Oil and Gas Methane Rule) into
the California State Implementation Plan (SIP). These revisions concern
emissions of volatile organic compounds (VOCs) from crude oil and
natural gas facilities. Under the authority of the Clean Air Act (CAA
or the Act), this action simultaneously approves a state rule that
regulates these emission sources and identifies deficiencies with the
rule that must be corrected for the EPA to grant full approval of the
rule. We are also finalizing disapprovals of the reasonably available
control technology (RACT) demonstrations for the 2008 and 2015 ozone
National Ambient Air Quality Standards (NAAQS) for sources covered by
the EPA's 2016 Control Techniques Guidelines for the Oil and Natural
Gas Industry (Oil and Gas CTG) for the Sacramento Metropolitan Air
Quality Management District (SMAQMD), San Joaquin Valley Air Pollution
Control District (SJVAPCD), South Coast Air Quality Management District
(SCAQMD), Ventura County Air Pollution Control District (VCAPCD), and
the Yolo-Solano Air Quality Management District (YSAQMD).
DATES: This rule will be effective on October 31, 2022.
ADDRESSES: The EPA has established a docket for this action under
Docket No. EPA-R09-OAR-2022-0416. All documents in the docket are
listed on the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website. Although listed in
the index, 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 form. Publicly available docket
materials are available through <a href="https://www.regulations.gov">https://www.regulations.gov</a>, or please
contact the person identified in the FOR FURTHER INFORMATION CONTACT
section for additional availability information. If you need assistance
in a language other than English or if you are a person with
disabilities who needs a reasonable accommodation at no cost to you,
please contact the person identified in the FOR FURTHER INFORMATION
CONTACT section.
FOR FURTHER INFORMATION CONTACT: Nicole Law, EPA Region IX, 75
Hawthorne St., San Francisco, CA 94105. By phone: (415) 947-4126 or by
email at <a href="/cdn-cgi/l/email-protection#6e020f194000070d01020b2e0b1e0f40090118"><span class="__cf_email__" data-cfemail="acc0cddb82c2c5cfc3c0c9ecc9dccd82cbc3da">[email protected]</span></a>. Donnique Sherman, EPA Region IX, 75
Hawthorne St., San Francisco, CA 94105. By phone: (415) 947-4129 or by
email at <a href="/cdn-cgi/l/email-protection#780b101d0a151916561c17161611090d1d381d0819561f170e"><span class="__cf_email__" data-cfemail="2f5c474a5d424e41014b404141465e5a4a6f4a5f4e01484059">[email protected]</span></a>. Sina Schwenk-Mueller, EPA Region IX,
75 Hawthorne St., San Francisco, CA 94105. By phone: (415) 947-4100 or
by email at <a href="/cdn-cgi/l/email-protection#5e0d3d36293b3035132b3b32323b2c700d37303f1e3b2e3f70393128"><span class="__cf_email__" data-cfemail="81d2e2e9f6e4efeaccf4e4edede4f3afd2e8efe0c1e4f1e0afe6eef7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us,''
and ``our'' refer to the EPA.
Table of Contents
I. Proposed Action
II. Public Comments and EPA Responses
III. EPA Action
[[Page 59315]]
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews
I. Proposed Action
On May 12, 2022 (87 FR 29103), the EPA proposed a limited approval
and limited disapproval of the following rule that was submitted for
incorporation into the California SIP.
----------------------------------------------------------------------------------------------------------------
Agency Rule title Adopted Submitted
----------------------------------------------------------------------------------------------------------------
California Air Resources Board............. California Code of Regulations, 03/23/2017 12/11/2018
Title 17, Division 3, Chapter 1,
Subchapter 10 Climate Change,
Article 4 Subarticle 13:
Greenhouse Gas Emission Standards
for Crude Oil and Natural Gas
Facilities (Oil and Gas Methane
Rule).
----------------------------------------------------------------------------------------------------------------
The submission also contained a staff report evaluating the Oil and
Methane Rule against the Federal RACT standard, concluding that the Oil
and Gas Methane Rule, in combination with applicable SIP-approved local
air district rules, met the RACT requirement for the 2008 and 2015
ozone NAAQS for sources covered by the EPA's 2016 Control Techniques
Guidelines for the Oil and Natural Gas Industry for SMAQMD, SJVAPCD,
SCAQMD, VCAPCD, and YSAQMD.
We proposed a limited approval of the Oil and Gas Methane Rule
because we determined that this rule strengthens the SIP and is largely
consistent with the relevant CAA requirements. We simultaneously
proposed a limited disapproval because some rule provisions do not
comply with the requirements of section 110 and part D of the Act. In
addition, we proposed a disapproval of the RACT demonstrations for the
2008 and 2015 ozone NAAQS for sources covered by the Oil and Gas CTG
for SMAQMD, SJVAPCD, SCAQMD, VCAPCD, and YSAQMD.
The provisions identified in our proposed limited disapproval of
the Oil and Gas Methane Rule include the following:
Reoccurring Deficiencies
1. Subsections 95668(a)(2)(C), 95669(b)(1), and 95670(a)(1) include
insufficiently specific exemptions for storage tanks or components
``approved for use by a local air district'' or ``subject to a local
air district requirement.''
2. Subsections 95668(a), 95668(b)(4), and 95671 do not contain a
requirement for initial and continuous compliance demonstration and do
not specify test methods or reporting requirements.
3. The Rule provides exemptions from the vapor control requirements
of the Rule for low use compressors in subsections 95668(c)(2)(A) and
95668(d)(2)(A) that has not been demonstrated to implement RACT.
4. In subsections 95668(c)(4)(F) and 95668(d)(9) the Rule
potentially allows a leak to go unrepaired for an additional year after
being identified.
5. Subsections 95668(c)(4)(B), 95668(d)(4), and 95668(g)(1) do not
specify test methods or a calculation methodology for determining flow
rate.
6. Subsections of 95668: (c)(3)(D)(1)(a), (c)(4)(D)(1)(a),
(d)(6)(A)(1) and Subsections of 95669: (h)(4)(A)(1) and (i)(5)(A)(1)
provide for an open ended, and potentially indefinite period during
which a leak could remain unrepaired.
Rule Deficiencies by Section
95668 Standards
7. According to the 2016 Oil and Natural Gas CTG, storage vessels
with a potential to emit at or greater than 6 tons per year (tpy) VOC
are required to implement RACT-level control. It is not clear whether
the Rule captures all storage vessels at oil and gas facilities that
meet or exceed the CTG Potential to Emit (PTE) threshold because the
Oil and Gas Methane Rule only requires evaluation of the separator and
first tank connected to the separator, to determine if they fall above
or below the 10 tpy methane emissions applicability threshold.
8. Subsection (a)(2)(A) exempts separator and tank systems that
receive an average of less than 50 barrels of crude oil or condensate
per day from the Oil and Gas Methane Rule's flash testing and vapor
control requirements for storage vessels. By using the word ``or,''
this exemption potentially exempts tanks that receive a minor amount of
either crude oil or condensate, but a significant quantity of the other
organic liquid.
9. Subsections (a)(3) and (a)(4) require existing and new tanks
that are not equipped with vapor collection systems (VCS) to comply
with specified requirements for flash testing. The Oil and Gas Methane
Rule requires tanks with emissions greater than 10 tpy of methane to
meet specified vapor control requirements. The Oil and Gas Methane Rule
does not specify requirements for how tanks equipped with vapor control
determine their emissions to assess whether they must meet RACT-level
control requirements.
10. Subsection (b)(4) includes an exemption for when the California
Air Resources Board (CARB) Executive Officer makes a determination that
controlling emissions is not possible. This provides insufficiently
bounded director's discretion, and is not an exemption included in the
CTG.
11. Subsections (c)(3)(B) and (c)(4)(B)(3) contain the term
``inspection period.'' The term is not defined.
95669 Leak Detection and Repair
12. Subsection (b)(7) includes an exemption that is not included in
the CTG for one-half inch and smaller stainless steel tube fittings
used to supply natural gas to equipment or instrumentation.
13. Subsection (i)(1) requires leaks of 1,000-9,999 parts per
million (ppm) be repaired in 14 days, but the CTG recommends that
within 5 days of the detected leak an attempt at repair be made.
14. The CTG contains a requirement to maintain a list of
identification numbers for all the equipment subject to leak
regulation. Subsection 95669 does not contain a similar requirement.
15. The CTG contains a requirement to maintain a list of equipment
that is designated as ``unsafe to monitor.'' Subsection 95669 does not
contain a similar requirement.
95671 Vapor Collection Systems and Vapor Control Devices
16. Subsection (f) allows VCS to be taken out of service for up to
30 calendar days per year while maintenance is performed. The State has
not justified that a smaller amount of time, or less frequent interval
is not reasonably available. Moreover, this maintenance requirement is
not bounded by requirements specifying the necessity of taking the
system out of service and minimizing the outage time.
95672 Record Keeping Requirements
17. Subsection 95672 does not contain specification on what type of
records need to be kept.
Appendix C Test Procedure for Determining Annual Flash Emission Rate of
Gaseous Compounds From Crude Oil, Condensate, and Produced Water
18. The flash emission test procedure established in Appendix C
relies upon
[[Page 59316]]
several test methods that have not been approved by the EPA. In
addition, paragraph 13 of Appendix C indicates that alternative test
procedures, sampling methods, or laboratory methods may be used if
written permission is obtained from CARB. This constitutes unapprovable
director's discretion.
In addition to the deficiencies identified in the CARB Oil and Gas
Methane Rule, the following deficiencies, organized by California
District Rule, serve as additional bases for disapproval of the RACT
demonstrations that the CARB Oil and Gas Methane Rule along with the
associated California District Rules meet RACT for sources covered by
the 2016 Oil and Gas CTG in the associated districts.
Sacramento Metropolitan AQMD
Rule 446: Storage of Petroleum Products
A. The State has not demonstrated that Rule 446 will capture all
storage vessels at oil and gas facilities that meet or exceed the CTG
PTE threshold because the applicability of Rule 446 is based on vapor
pressure of the liquid stored and the CTG applicability is based on a
PTE threshold.
B. The definition of ``gas tight'' in section 202 of Rule 446 is
much higher than the 500 ppm threshold used in the CTG and other
California district rules and does not represent RACT.
C. Rule 446 does not contain initial or continuous testing
requirements to demonstrate compliance with the vapor control
efficiency requirements. While Rule 446 does require inspections, it
does not require recordkeeping of these inspections.
South Coast AQMD
Rule 463: Organic Liquid Storage and Rule 1178: Further Reductions of
VOC Emissions From Storage Tanks at Petroleum Facilities
D. The State has not demonstrated that Rules 463 and 1178 will
capture all storage vessels at oil and gas facilities that meet or
exceed the CTG PTE threshold because the applicability of Rules 463 and
1178 is based on a tank's volumetric capacity and the CTG applicability
is based on a PTE threshold.
San Joaquin Valley APCD
Rule 4623: Storage of Organic Liquids
E. The State has not demonstrated that Rule 4623 will capture all
storage vessels at oil and gas facilities that meet or exceed the CTG
PTE threshold because the applicability of Rule 4623 is based on a
tank's volumetric capacity and the CTG applicability is based on a PTE
threshold.
Rule 4401: Steam-Enhanced Crude Oil Production Wells
F. Rule 4401 does not require controls that are reasonably
available because the leak inspection requirements in Rule 4401 are
less stringent than the CTG and other comparable California district
rules.
Ventura County APCD
Rule 71.1: Crude Oil Production and Separation and Rule 71.2 Storage of
Reactive Organic Compound Liquids
G. The State has not demonstrated that Rules 71.1 and 71.2 will
capture all storage vessels at oil and gas facilities that meet or
exceed the CTG PTE threshold because the applicability of Rules 71.1
and 71.2 is based on the vapor pressure of the liquid stored and a
tank's volumetric capacity, while the CTG applicability is based on a
PTE threshold.
H. Rule 71.1 does not contain inspection or initial compliance
determination requirements.
Yolo Solano AQMD
Rule 2.21: Organic Liquid Storage and Transfer
I. The State has not demonstrated that Rule 2.21 will capture all
storage vessels at oil and gas facilities that meet or exceed the CTG
PTE threshold because the applicability of Rule 2.21 is based on vapor
pressure of the liquid stored and a tank's volumetric capacity, while
the CTG applicability is based on a PTE threshold.
Our proposed action and technical support document (TSD) contain
more information on the basis for this rulemaking and on our evaluation
of the submittal.
II. Public Comments and EPA Responses
The EPA's proposed action provided a 30-day public comment period.
During the comment period we received one comment submitted by
Earthjustice on behalf of the Center for Biological Diversity, Central
California Asthma Collaborative, Central Valley Air Quality Coalition,
Clean Water Action, Earthjustice, Little Manila Rising, Mi Familia
Vota, and Sierra Club (Kern-Kaweah Chapter) (collectively, the ``Valley
Coalition''). The comment and our response are summarized below.
Comment: The Valley Coalition comment addresses ``what appears to
be a systematic failure to control significant leaks of volatile
organic compounds (VOCs) from oil and gas wells in neighborhoods in
Bakersfield, California.'' The commenters state that the leaks may fall
within loopholes in the Oil and Gas Methane Rule, and related local air
district rules. They claim that such loopholes would preclude a finding
that the State is implementing RACT.
The Valley Coalition writes that at least 30 idle wells in and
nearby to Bakersfield neighborhoods are leaking methane, with many
wells near homes, and leaking methane at volumes that would make the
air near the escaping gas explosive. The comment describes the
discovery of the leaks, and states that two wells were hissing audibly
within a few hundred feet of homes, and that concentrations near other
wells exceeded 50,000 parts per million.
The Valley Coalition asserts that the leaks are undoubtedly also
sources of VOCs and that ``EPA therefore must assume these leaks are
significant sources of VOCs.'' The commenters state that there are
approximately 38,000 idle wells in California and cite a study that,
according to the commenters, suggests that idle well leaks are
widespread.
The commenters encourage the EPA to learn about where the leaks
fall within the regulatory scheme, and then require state and local air
districts to remedy any loopholes or inadequacies that may allow such
leaks. Commenters assert that ``[s]uch remediation plainly falls within
the scope of the requirement in section 182(b)(2) of the Clean Air Act
that the State implement RACT.''
The Valley Coalition also writes: ``Specifically, it appears that
if a well within the jurisdiction of the San Joaquin Valley Unified Air
Pollution Control District is used for oil with an American Petroleum
Institute (API) gravity below 20 and is not steam-enhanced, that well
is exempt from leak detection and repair (LDAR) requirements under the
Oil and Gas Methane Rule and the San Joaquin Valley Air District's
relevant local rules. The Oil and Gas Methane Rule itself, in Cal. Code
Regs., title 17, section 95669(b)(2), exempts `components found on
tanks, separators, wells, and pressure vessels [ ] used exclusively for
crude oil with an API gravity less than 20 averaged on an annual
basis.' San Joaquin Valley Rule 4401--which regulates VOC emissions
from steam-enhanced crude oil production wells--applies only to
components at wells that are steam-enhanced. And San Joaquin Valley
Rule 4409--which regulates VOC emissions from leaking components at
light crude oil production facilities, natural gas production
facilities, and natural gas processing facilities--does
[[Page 59317]]
not apply to facilities used for oil with an API gravity below 30
degrees.''
The commenters write that it appears that the Bakersfield wells,
and potentially the majority of wells in California, fall within these
exemptions. The Valley Coalition states that the Bakersfield wells at
issue were not involved in steam injection, and that oil from two of
the fields at issue had API gravities of 15.3 and 19.2. They note that
in 2018, 68% of California's crude oil production was heavy (that is,
with an API gravity between 10 and 22.3). Consequently, the commenters
claim, exemptions for equipment with an API gravity below 20 ``could
allow a vast proportion of California's oil production to escape LDAR
requirements.''
The Valley Coalition writes that other loopholes and exemptions may
exist and encourages the EPA to identify and close any such loopholes
and inadequacies.
Response: With respect to the commenters' concerns regarding
leaking wells, the EPA agrees that if wells are leaking methane, they
are likely to also leak VOCs. As a result, leaking wells might
implicate the RACT requirement. We note, however, that this rulemaking
evaluates California's Oil and Gas Methane Rule submittal with respect
to a specific part of section 182(b)(2)'s RACT requirement. Section
182(b)(2) obligates states with nonattainment areas that are classified
as Moderate or above to submit SIP revisions that require the
implementation of RACT in these areas with respect to two distinct
categories of VOC sources: sections 182(b)(2)(A) and (B) govern VOC
sources covered by a CTG, whereas section 182(b)(2)(C) relates to major
stationary sources of VOCs (i.e., ``non-CTG major sources''). As
explained in our proposed action, California submitted the Oil and Gas
Methane Rule for the purpose of satisfying the RACT requirements for
the first category, i.e., VOC sources covered by a CTG (namely, the
EPA's 2016 Oil and Gas CTG). Therefore, this rulemaking evaluates
California's submissions with respect to CAA section 182(b)(2)(A) and
the provisions of the 2016 Oil and Gas CTG and does not evaluate the
submissions with respect to section 182(b)(2)(C) and non-CTG major
sources in Moderate and above nonattainment areas.
The above point regarding the scope of this rulemaking is important
because idle wells are not within the scope of the EPA's 2016 Oil and
Gas CTG. Section 9.1 of the 2016 Oil and Gas CTG provides: ``[f]or
purposes of this CTG, the emissions and programs to control emissions
discussed herein would apply to the collection of fugitive emissions
components at well sites with an average production of greater than 15
barrel equivalents per well per day.'' The CTG further explains that
``[f]or the purposes of this CTG, fugitive emission reduction
recommendations would not apply to well sites that only contain
wellheads.'' \1\ We further note that no other CTGs apply to emissions
from idle wells. As a result, the commenters' concerns regarding idle
wells relate to emissions from sources not covered by the CTG (i.e.,
well sites with average production less than or equal to 15 barrel
equivalents per day) and are therefore beyond the scope of this
rulemaking.\2\
---------------------------------------------------------------------------
\1\ 2016 Oil and Gas CTG, 9-1.
\2\ The EPA notes that the Biden Administration recently awarded
$560 million to plug orphaned oil and gas wells across 24 states,
including California. See U.S. Department of the Interior Press
Release ``Through President Biden's Bipartisan Infrastructure Law,
24 States Set to Begin Plugging Over 10,000 Orphaned Wells'' August
25, 2022, <a href="https://www.doi.gov/pressreleases/through-president-bidens-bipartisan-infrastructure-law-24-states-set-begin-plugging">https://www.doi.gov/pressreleases/through-president-bidens-bipartisan-infrastructure-law-24-states-set-begin-plugging</a>.
---------------------------------------------------------------------------
Although the Valley Coalition comment focuses on idle wells, the
comment also identifies specific exemptions that the commenters suggest
may constitute loopholes or inadequacies in the regulatory scheme that
could allow a large number of wells in California to escape LDAR
requirements. To the extent that these exemptions may represent an
inadequacy in the regulation of non-idle wells that are covered by the
CTG, the validity of these exemptions is within the scope of the
present rulemaking.
The commenters raise the following exemptions as potential
loopholes in the regulatory scheme:
(1) CARB Oil and Gas rule section 95669(b)(2), exemption for
``components found on tanks, separators, wells, and pressure vessels [
] used exclusively for crude oil with an API gravity less than 20
averaged on an annual basis.''
(2) San Joaquin Valley Rule 4401, which regulates VOC emissions
from steam-enhanced crude oil production wells. applies only to
components at wells that are steam-enhanced.
(3) San Joaquin Valley Rule 4409, which regulates VOC emissions
from leaking components at light crude oil production facilities,
natural gas production facilities, and natural gas processing
facilities, does not apply to facilities used for oil with an API
gravity below 30 degrees.
The commenters assert that this combination of regulations exempts
from LDAR requirements wells in the San Joaquin Valley that are not
steam-enhanced and that produce oil from fields with an API gravity
below 20 degrees.
The exemption found in section 95669(b)(2) is not found in the CTG;
the CTG does not provide for an exemption for wells based on API
gravity or volatility of the oil in the produced field. Although a
state may provide for an exemption for sources that are not exempted in
the CTG, if it chooses to do so it must provide an analysis of why the
exemption is consistent with the RACT requirement. The State has not
done so here.\3\ Although some of the active wells producing oil from
fields with API gravity less than 20 degrees are regulated by SIP-
approved local district rules, the submission does not analyze the
impacts of this exemption or show how it is consistent with the section
182(b)(2) RACT requirement.
---------------------------------------------------------------------------
\3\ In its submission, the State indicated that components
associated with heavy oil emit less total hydrocarbons than
components found in gas or other liquid service. CARB Staff Report:
Initial Statement of Reasons, Date of Release: May 31, 2016, 55. The
fact that these wells emit less per well is not, on its own,
sufficient to justify the exemption.
---------------------------------------------------------------------------
Based on the submission before us, the scope of the exemption from
LDAR requirements is unclear in terms of number of wells and associated
emissions. Similarly, the submission does not address the cost of
potential monitoring and control options. As a result, the EPA agrees
that CARB's submission does not sufficiently demonstrate that RACT is
in place for wells that are subject to the section 95669(b)(2)
exemption. We recognize that, given the low volatility of the oil in
such fields, the State may have valid reasons for exempting such
components. Analyses demonstrating that controls are not cost
effective, or that emissions are minimal may, in some instances,
satisfy the RACT requirement. However, no such analysis was included
with the submission of the Oil and Gas Methane Rule.
Therefore, in addition to the grounds for disapproval that we
identified in our notice of proposed rulemaking, we are also
disapproving the CTG RACT demonstrations for the relevant districts
based on the inclusion of an exemption for production from fields with
API gravity below 20 degrees, that has not been justified as RACT.
III. EPA Action
No comments were submitted that change our proposed simultaneous
limited approval and limited disapproval of the rule or our disapproval
of the RACT demonstrations for the 2008 and 2015 ozone National Ambient
Air Quality
[[Page 59318]]
Standards (NAAQS) for sources covered by the EPA's 2016 Control
Techniques Guidelines for the Oil and Natural Gas Industry (Oil and Gas
CTG) for the SMAQMD, SJVAPCD, SCAQMD, VCAPCD, and the YSAQMD. As noted
in Section II of this rule, in addition to the deficiencies listed in
the TSD, and summarized in Section I above, subsection 95669(b)(2)
includes an exemption for components used for crude oil with an API
Gravity less than 20 that is not in the CTG, that the State has not
justified as meeting the RACT requirement.
Because the rule strengthens the SIP and is largely consistent with
the relevant CAA requirements, the EPA is finalizing a limited approval
of the submitted rule, as authorized in sections 110(k)(3) and 301(a)
of the Act. This action incorporates the submitted rule into the
California SIP, including those provisions identified as deficient. Due
to the deficiencies enumerated above, the EPA is simultaneously
finalizing a limited disapproval of the rule as authorized under
sections 110(k)(3) and 301(a).
As a result, the EPA must promulgate a Federal implementation plan
(FIP) under section 110(c) unless we approve subsequent SIP revisions
that correct the rule deficiencies within 24 months. In addition, the
offset sanction in CAA section 179(b)(2) will be imposed 18 months
after the effective date of this action, and the highway funding
sanction in CAA section 179(b)(1) will be imposed six months after the
offset sanction. A sanction will not be imposed if the EPA determines
that a subsequent SIP submission corrects the identified deficiencies
before the applicable deadline.
Note that the submitted rule has been adopted by CARB, and the
EPA's final limited disapproval does not prevent CARB from enforcing
it. The limited disapproval also does not prevent any portion of the
rules from being incorporated by reference into the federally
enforceable SIP as discussed in a July 9, 1992 EPA memo found at:
<a href="https://www.epa.gov/sites/production/files/2015-07/documents/procsip.pdf">https://www.epa.gov/sites/production/files/2015-07/documents/procsip.pdf</a>.
IV. Incorporation by Reference
In this rule, the EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, the EPA is finalizing the incorporation by reference of
California Code of Regulations, Title 17, Division 3, Chapter 1,
Subchapter 10 Climate Change, Article 4 Subarticle 13: Greenhouse Gas
Emission Standards for Crude Oil and Natural Gas Facilities as
described in Section I of this preamble and set forth in the amendments
to 40 CFR part 52 below. Therefore, these materials have been approved
by EPA for inclusion in the SIP, have been incorporated by reference by
EPA into that plan, are fully federally enforceable under sections 110
and 113 of the CAA as of the effective date of this final rulemaking,
and will be incorporated by reference in the next update to the SIP
compilation.\4\ The EPA has made, and will continue to make, these
documents available through <a href="http://www.regulations.gov">www.regulations.gov</a> and at the EPA Region
IX Office (please contact the person identified in the FOR FURTHER
INFORMATION CONTACT section of this preamble for more information).
---------------------------------------------------------------------------
\4\ 62 FR 27968 (May 22, 1997).
---------------------------------------------------------------------------
V. Statutory and Executive Order Reviews
Additional information about these statutes and Executive orders
can be found at <a href="https://www.epa.gov/laws-regulations/laws-and-executive-orders">https://www.epa.gov/laws-regulations/laws-and-executive-orders</a>.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Paperwork Reduction Act (PRA)
This action does not impose an information collection burden under
the PRA because this action does not impose additional requirements
beyond those imposed by state law.
C. Regulatory Flexibility Act (RFA)
I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. This
action will not impose any requirements on small entities beyond those
imposed by state law.
D. Unfunded Mandates Reform Act (UMRA)
This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. This action does not impose additional requirements
beyond those imposed by state law. Accordingly, no additional costs to
State, local, or tribal governments, or to the private sector, will
result from this action.
E. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the National Government and the states, or on the distribution of power
and responsibilities among the various levels of government.
F. Executive Order 13175: Coordination With Indian Tribal Governments
This action does not have tribal implications, as specified in
Executive Order 13175, because the SIP is not approved to apply on any
Indian reservation land or in any other area where the EPA or an Indian
tribe has demonstrated that a tribe has jurisdiction, and will not
impose substantial direct costs on tribal governments or preempt tribal
law. Thus, Executive Order 13175 does not apply to this action.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that the EPA has reason to believe may disproportionately affect
children, per the definition of ``covered regulatory action'' in
section 2-202 of the Executive order. This action is not subject to
Executive Order 13045 because it does not impose additional
requirements beyond those imposed by state law.
H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act (NTTAA)
Section 12(d) of the NTTAA directs the EPA to use voluntary
consensus standards in its regulatory activities unless to do so would
be inconsistent with applicable law or otherwise impractical. The EPA
believes that this action is not subject to the requirements of section
12(d) of the NTTAA because application of those requirements would be
inconsistent with the CAA.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
The state did not evaluate environmental justice considerations as
part of its SIP submittal. There is no information in the record
inconsistent with the stated goals of E.O. 12898 of
[[Page 59319]]
achieving environmental justice for people of color, low-income
populations, and indigenous peoples.
K. Congressional Review Act (CRA)
This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).
L. Petitions for Judicial Review
Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by November 29, 2022. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this rule for the purposes of judicial
review nor does it extend the time within which a petition for judicial
review may be filed and shall not postpone the effectiveness of such
rule or action. This action may not be challenged later in proceedings
to enforce its requirements (see section 307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Ozone, Reporting and
recordkeeping requirements, Volatile organic compounds.
Dated: September 21, 2022.
Martha Guzman Aceves,
Regional Administrator, Region IX.
Part 52, chapter I, title 40 of the Code of Federal Regulations is
amended as follows:
PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart F--California
0
2. Section 52.220a is amended by adding at the end of table 1 to
paragraph (c) an undesignated center heading and entries ``95665''
through ``95677,'' ``Appendix A,'' ``Appendix B,'' and ``Appendix C''
to read as follows:
Sec. 52.220a Identification of plan--in part.
* * * * *
(c) * * *
Table 1--EPA-Approved Statutes and State Regulations \1\
----------------------------------------------------------------------------------------------------------------
State Additional
State citation Title/subject effective date EPA approval date explanation
----------------------------------------------------------------------------------------------------------------
* * * * * *
Title 17 (Public Health), Division 3 (Air Resources), Chapter 1 (Air Resources Board); Subchapter 10 (Climate
Change); Article 4 (Regulations to Achieve Greenhouse Gas Emission Reductions); Subarticle 13 (Greenhouse Gas
Emission Standards for Crude Oil and Natural Gas Facilities).
----------------------------------------------------------------------------------------------------------------
95665...................... Purpose and Scope.... 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95666...................... Applicability........ 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95667...................... Definitions.......... 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95668...................... Standards............ 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95669...................... Leak Detection and 3/23/2017 [INSERT Federal Submitted on December
Repair. Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95670...................... Critical Components.. 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95671...................... Vapor Collection 3/23/2017 [INSERT Federal Submitted on December
Systems and Vapor Register CITATION], 11, 2018 as an
Control Devices. 9/30/2022. attachment to a
letter dated
December 4, 2018.
95672...................... Record Keeping 3/23/2017 [INSERT Federal Submitted on December
Requirements. Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95673...................... Reporting 3/23/2017 [INSERT Federal Submitted on December
Requirements. Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95674...................... Implementation....... 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95675...................... Enforcement.......... 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
95676...................... No Preemption of More 3/23/2017 [INSERT Federal Submitted on December
Stringent Air Register CITATION], 11, 2018 as an
District or Federal 9/30/2022. attachment to a
Requirements. letter dated
December 4, 2018.
95677...................... Severability......... 3/23/2017 [INSERT Federal Submitted on December
Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
[[Page 59320]]
Appendix A................. Record Keeping and 3/23/2017 [INSERT Federal Submitted on December
Reporting Forms. Register CITATION], 11, 2018 as an
9/30/2022. attachment to a
letter dated
December 4, 2018.
Appendix B................. Calculation for 3/23/2017 [INSERT Federal Submitted on December
Determining Vented Register CITATION], 11, 2018 as an
Natural Gas Volume 9/30/2022. attachment to a
from Liquids letter dated
Unloading of Natural December 4, 2018.
Gas Wells.
Appendix C................. Test Procedure for 3/23/2017 [INSERT Federal Submitted on December
Determining Annual Register CITATION], 11, 2018 as an
Flash Emission Rate 9/30/2022. attachment to a
of Gaseous Compounds letter dated
from Crude Oil, December 4, 2018.
Condensate, and
Produced Water.
----------------------------------------------------------------------------------------------------------------
\1\ Table 1 lists EPA-approved California statutes and regulations incorporated by reference in the applicable
SIP. Table 2 of paragraph (c) lists approved California test procedures, test methods and specifications that
are cited in certain regulations listed in Table 1. Approved California statutes that are nonregulatory or
quasi-regulatory are listed in paragraph (e).
* * * * *
0
3. Section 52.237 is amended by adding paragraphs (b)(1)(ii) and (b)(3)
through (6) to read as follows:
Sec. 52.237 Part D disapproval.
* * * * *
(b) * * *
(1) * * *
(ii) RACT Determinations for the source category Control Techniques
Guidelines for the Oil and Natural Gas Industry (EPA-453/B-16-001) for
the 2008 and 2015 ozone NAAQS, as contained in the submittal titled
``California Greenhouse Gas Emission Standards for Crude Oil and
Natural Gas Facilities,'' dated December 4, 2018, as adopted March 23,
2017 and submitted on December 11, 2018.
* * * * *
(3) San Joaquin Valley Air Pollution Control District.
(i) RACT Determinations for the source category Control Techniques
Guidelines for the Oil and Natural Gas Industry (EPA-453/B-16-001) for
the 2008 and 2015 ozone NAAQS, as contained in the submittal titled
``California Greenhouse Gas Emission Standards for Crude Oil and
Natural Gas Facilities,'' dated December 4, 2018, as adopted March 23,
2017 and submitted on December 11, 2018.
(ii) [Reserved]
(4) South Coast Air Quality Management District.
(i) RACT Determinations for the source category Control Techniques
Guidelines for the Oil and Natural Gas Industry (EPA-453/B-16-001) for
the 2008 and 2015 ozone NAAQS, as contained in the submittal titled
``California Greenhouse Gas Emission Standards for Crude Oil and
Natural Gas Facilities,'' dated December 4, 2018, as adopted March 23,
2017 and submitted on December 11, 2018.
(ii) [Reserved]
(5) Ventura County Air Pollution Control District.
(i) RACT Determinations for the source category Control Techniques
Guidelines for the Oil and Natural Gas Industry (EPA-453/B-16-001) for
the 2008 and 2015 ozone NAAQS, as contained in the submittal titled
``California Greenhouse Gas Emission Standards for Crude Oil and
Natural Gas Facilities,'' dated December 4, 2018, as adopted March 23,
2017 and submitted on December 11, 2018.
(ii) [Reserved]
(6) Yolo-Solano Air Quality Management District.
(i) RACT Determinations for the source category Control Techniques
Guidelines for the Oil and Natural Gas Industry (EPA-453/B-16-001) for
the 2008 and 2015 ozone NAAQS, as contained in the submittal titled
``California Greenhouse Gas Emission Standards for Crude Oil and
Natural Gas Facilities,'' dated December 4, 2018, as adopted March 23,
2017 and submitted on December 11, 2018.
(ii) [Reserved]
[FR Doc. 2022-20870 Filed 9-29-22; 8:45 am]
BILLING CODE 6560-50-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on September 30, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.