[Federal Register Volume 86, Number 217 (Monday, November 15, 2021)]
[Proposed Rules]
[Pages 63110-63263]
[FR Doc No: 2021-24202]

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

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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:
     Federal eRulemaking Portal: https://www.regulations.gov/
(our preferred method). Follow the online instructions for submitting
comments.
     Email: [email protected]. Include Docket ID No. EPA-
HQ-OAR-2021-0317 in the subject line of the message.
     Fax:<PHONE_NUMBER>. Attention Docket ID No. EPA-HQ-OAR-
2021-0317.
     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.
     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 https://www.regulations.gov/, 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 https://www.regulations.gov/ 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 https://www.epa.gov/dockets.

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:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>;
and email address: [email protected] 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:<PHONE_NUMBER>;
facsimile number:<PHONE_NUMBER>; email address: [email protected].

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 https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry. 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
https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry 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<PHONE_NUMBER> or by email at [email protected].
    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 https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry or contact the
public hearing team at (888) 372-

8699 or by email at [email protected]. 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: https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry.
    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
[email protected] and [email protected]. 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 https://www.regulations.gov/. 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 https://www.regulations.gov/.
    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 https://www.regulations.gov/, 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 https://www.regulations.gov/ 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 https://www.epa.gov/dockets/commenting-epa-dockets.
    The https://www.regulations.gov/ 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
https://www.regulations.gov/, 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 https://www.epa.gov/dockets.
    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 https://www.regulations.gov/ 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 https://www.epa.gov/dockets.
    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 https://www.regulations.gov/ 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

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
CH4 methane
cm centimeter
CPI consumer price index
CPI-U consumer price index urban
CO carbon monoxide
COPD chronic obstructive pulmonary disease
CO2 carbon dioxide
CO2 Eq. carbon dioxide equivalent
COA condition of approval
COS carbonyl sulfide
CRA Congressional Review Act
CS2 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
H2S 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
NOX 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
PM2.5 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-CH4 social cost of methane
SCF significant contribution finding
scf standard cubic feet
scfh standard cubic feet per hour
scfm standard cubic feet per minute
SF6 sulfur hexafluoride
SIP State Implementation Plan
SO2 sulfur dioxide
SOX 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 SO2 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

    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 (CO2), VOC, sulfur dioxide (SO2),
nitrogen oxide (NOX), hydrogen sulfide (H2S),
carbon disulfide (CS2), 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''.
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    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.
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    \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).
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    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

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 CO2, and contributes to the creation of ground-
level ozone which is another greenhouse gas. Because methane has a
shorter lifetime than CO2, it has a smaller relative
impact--although still significantly greater than CO2--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 CO2. 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 CO2 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.
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    \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 CO2.''
    \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
SO2 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:
     Update, strengthen, and expand current requirements under
CAA section 111(b) for methane and VOC emissions from new, modified,
and reconstructed facilities,
     establish new limits for methane, and VOC emissions from
new, modified, and reconstructed facilities that are not currently
regulated under CAA section 111(b),
     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
     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

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

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.
---------------------------------------------------------------------------

    \6\ See Congressional Review Act Resolution to Disapprove EPA's
2020 Oil and Gas Policy Rule Questions and Answers (June 30, 2021)
available at https://www.epa.gov/system/files/documents/2021-07/qa_cra_for_2020_oil_and_gas_policy_rule.6.30.2021.pdf.
    \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).
---------------------------------------------------------------------------

    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

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 SO2 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
SO2 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

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.
---------------------------------------------------------------------------

    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.

(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.

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).

\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.

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 CH4 emission reductions expected
from this proposed rule using the SC-CH4 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-CH4 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, PM2.5, 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

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).

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 https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry. 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 SO2 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
CO2), VOCs, SO2, NOX, H2S,
CS2, 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 SO2.\10\
---------------------------------------------------------------------------

    \10\ We note that the EPA's focus on GHGs (in particular
methane), VOC, and SO2 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.
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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--CO2, CH4, N2O,
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur
hexafluoride (SF6)--``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

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 https://www.epa.gov/climate-indicators.
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     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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     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.