Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems, 86490-86519 [2016-27981]

Download as PDF 86490 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 98 [EPA–HQ–OAR–2015–0764; FRL–9955–12– OAR] RIN 2060–AS73 Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: The Environmental Protection Agency is finalizing revisions and confidentiality determinations for the petroleum and natural gas systems source category of the Greenhouse Gas Reporting Program. In particular, this action adds new monitoring methods for detecting leaks from oil and gas equipment in the petroleum and natural gas systems source category consistent with the fugitive emissions monitoring methods in the recently finalized new source performance standards for the oil and gas industry. This action also adds emission factors for leaking equipment to be used in conjunction with these monitoring methods to calculate and report greenhouse gas emissions resulting from equipment leaks. Finally, this action finalizes reporting requirements and confidentiality determinations for nine new or SUMMARY: substantially revised data elements contained in these amendments. DATES: This final rule is effective on January 1, 2017. ADDRESSES: The EPA has established a docket for this action under Docket ID No. EPA–HQ–OAR–2015–0764. All documents in the docket are listed on the https://www.regulations.gov Web site. Although listed in the index, some information is not publicly available, e.g., confidential business information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available electronically through https:// www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Carole Cook, Climate Change Division, Office of Atmospheric Programs (MC– 6207A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone number: (202) 343–9334; fax number: (202) 343–2342; email address: GHGReporting@epa.gov. For technical information, please go to the Greenhouse Gas Reporting Rule Web site, https://www.epa.gov/ghgreporting/. To submit a question, select Help Center, followed by ‘‘Contact Us.’’ Worldwide Web (WWW). In addition to being available in the docket, an electronic copy of this final rule will also be available through the WWW. Following the Administrator’s signature, a copy of this action will be posted on the EPA’s Greenhouse Gas Reporting Rule Web site at https://www.epa.gov/ ghgreporting/. SUPPLEMENTARY INFORMATION: Regulated Entities. These revisions affect entities that must submit annual greenhouse gas (GHG) reports under the Greenhouse Gas Reporting Program (GHGRP), codified in the Code of Federal Regulations (CFR) at 40 CFR part 98. This rule applies to all petroleum and natural gas systems facilities that are subject to 40 CFR part 98, regardless of the facility’s location, and ensures that all these facilities across the United States (U.S.) report GHG data consistently, and therefore is ‘‘nationally applicable’’ within the meaning of section 307(b)(1) of the Clean Air Act (CAA). Further, the Administrator has determined that rules codified in 40 CFR part 98 are subject to the provisions of CAA section 307(d). (See CAA section 307(d)(1)(V) (the provisions of section 307(d) apply to ‘‘such other actions as the Administrator may determine’’).) These are amendments to existing regulations. These amended regulations affect owners or operators of petroleum and natural gas systems that directly emit GHGs. Regulated categories and entities include, but are not limited to, those listed in Table 1 of this preamble: TABLE 1—EXAMPLES OF AFFECTED ENTITIES BY CATEGORY NAICS a Category Petroleum and Natural Gas Systems ......................................... sradovich on DSK3GMQ082PROD with RULES3 a North 486210 221210 211111 211112 Examples of affected facilities Pipeline transportation of natural gas. Natural gas distribution. Crude petroleum and natural gas extraction. Natural gas liquid extraction. American Industry Classification System. Table 1 of this preamble is not intended to be exhaustive, but rather provides a guide for readers regarding facilities likely to be affected by this action. Other types of facilities than those listed in the table could also be subject to reporting requirements. To determine whether you are affected by this action, you should carefully examine the applicability criteria found in 40 CFR part 98, subpart A and 40 CFR part 98, subpart W. If you have questions regarding the applicability of this action to a particular facility, consult the person listed in the preceding FOR FURTHER INFORMATION CONTACT section. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 What is the effective date? The final rule is effective on January 1, 2017. Section 553(d) of the Administrative Procedure Act (APA), 5 U.S.C. Chapter 5, generally provides that rules may not take effect earlier than 30 days after they are published in the Federal Register. The EPA is issuing this final rule under section 307(d)(1) of the Clean Air Act, which states: ‘‘The provisions of section 553 through 557 * * * of Title 5 shall not, except as expressly provided in this section, apply to actions to which this subsection applies.’’ Thus, section 553(d) of the APA does not apply to this rule. The EPA is nevertheless acting consistently with the purposes underlying APA section 553(d) in PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 making the first set of amendments to this rule effective on January 1, 2017. Section 553(d) allows an effective date less than 30 days after publication for a rule that ‘‘grants or recognizes an exemption or relieves a restriction’’ or ‘‘as otherwise provided by the agency for good cause found and published with the rule.’’ As explained below, the EPA finds that there is good cause for the first set of amendments to this rule to become effective on January 1, 2017, even though this may result in an effective date fewer than 30 days from date of publication in the Federal Register. While this action is being signed prior to December 1, 2016, there is likely to E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations be a significant delay in the publication of this rule as it contains complex equations and tables and is relatively long. As an example, the EPA Administrator signed the Greenhouse Gas Reporting Rule: 2015 Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems final rule on October 1, 2015, but the rule was not published in the Federal Register until October 22, 2015 (80 FR 64262). The purpose of the 30-day waiting period prescribed in 5 U.S.C. 553(d) is to give affected parties a reasonable time to adjust their behavior and prepare before the final rule takes effect. To employ the APA section 553(d)(3) ‘‘good cause’’ exemption, an agency must balance the necessity for immediate implementation against principles of fundamental fairness which require that all affected persons be afforded a reasonable amount of time to prepare for the effective date of its ruling.1 Where, as here, the final rule will be signed and made available on the EPA Web site more than 30 days before the effective date, but where the publication is likely to be delayed due to the complexity and length of the rule, the regulated entities are afforded this reasonable amount of time. We balance these circumstances with the need for the amendments to be effective by January 1, 2017; a delayed effective date would result in regulatory uncertainty, program disruption, and an inability to have the amendments effective for the 2017 reporting year. Accordingly, we find good cause exists to make this rule effective on January 1, 2017, consistent with the purposes of APA section 553(d)(3). Judicial Review. Under CAA section 307(b)(1), judicial review of this final rule is available only by filing a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit (the Court) by January 30, 2017 Under CAA section 307(d)(7)(B), only an objection to this final rule that was raised with reasonable specificity during the period for public comment can be raised during judicial review. Section 307(d)(7)(B) of the CAA also provides a mechanism for the EPA to convene a proceeding for reconsideration, ‘‘[i]f the person raising an objection can demonstrate to the EPA that it was impracticable to raise such objection within [the period for public comment] or if the grounds for such objection arose after the period for public comment (but within the time specified for judicial review) and if such objection is of central relevance to the 1 Omnipoint Corp. v. FCC, 78 F3d 620, 630 (D.C. Cir. 1996), quoting U.S. v. Gavrilovic, 551 F.2d 1099, 1105 (8th Cir. 1977). VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 outcome of the rule.’’ Any person seeking to make such a demonstration to us should submit a Petition for Reconsideration to the Office of the Administrator, Environmental Protection Agency, Room 3000, William Jefferson Clinton Building, 1200 Pennsylvania Ave. NW., Washington, DC 20460, with a copy to the person listed in the preceding FOR FURTHER INFORMATION CONTACT section, and the Associate General Counsel for the Air and Radiation Law Office, Office of General Counsel (Mail Code 2344A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20004. Note that under CAA section 307(b)(2), the requirements established by this final rule may not be challenged separately in any civil or criminal proceedings brought by the EPA to enforce these requirements. Acronyms and Abbreviations. The following acronyms and abbreviations are used in this document. APA Administrative Procedure Act CAA Clean Air Act CBI Confidential Business Information CFR Code of Federal Regulations CH4 methane CO2 carbon dioxide CRA Congressional Review Act DOT Department of Transportation EPA U.S. Environmental Protection Agency FR Federal Register GHG greenhouse gas GHGRP Greenhouse Gas Reporting Program GRI Gas Research Institute ICR Information Collection Request LNG liquefied natural gas NAICS North American Industry Classification System NSPS New Source Performance Standards NTTAA National Technology Transfer and Advancement Act OGI optical gas imaging OMB Office of Management and Budget ppmv parts per million by volume PRA Paperwork Reduction Act RFA Regulatory Flexibility Act U.S. United States UMRA Unfunded Mandates Reform Act VOC volatile organic compounds WWW Worldwide Web Organization of This Document. The following outline is provided to aid in locating information in this preamble. I. Background A. Organization of This Preamble B. Background on This Action C. Legal Authority D. How do these amendments apply to 2016 and 2017 reports? II. Summary of Final Revisions and Other Amendments to Subpart W and Responses to Public Comment A. Summary of Final Amendments— General B. Summary of Final Amendments to the Requirement To Use the Calculation Methodology Based on Equipment Leak Surveys PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 86491 C. Summary of Final Amendments to Monitoring Methods D. Summary of Final Amendments to Components To Be Surveyed E. Summary of Final Amendments to Leaker Emission Factors and the Calculation Methodology Based on Equipment Leak Surveys F. Summary of Final Amendments to Reporting Requirements III. Final Confidentiality Determinations A. Summary of Final Confidentiality Determinations for New or Substantially Revised Subpart W Data Elements B. Summary of Public Comments and Responses on the Proposed Confidentiality Determinations IV. Impacts of the Final Amendments to Subpart W A. Impacts of the Final Amendments B. Summary of Comments and Responses on the Impacts of the Proposed Rule V. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review B. Paperwork Reduction Act C. Regulatory Flexibility Act (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 J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations K. Congressional Review Act I. Background A. Organization of This Preamble Section I of this preamble provides background information regarding the origin of the final amendments. This section also discusses the EPA’s legal authority under the CAA to promulgate and amend 40 CFR part 98 of the Greenhouse Gas Reporting Rule (hereafter referred to as ‘‘part 98’’) as well as the legal authority for making confidentiality determinations for the data to be reported. Section II of this preamble contains information on the final amendments to part 98, subpart W (Petroleum and Natural Gas Systems) (hereafter referred to as ‘‘subpart W’’), including a summary of the major comments that the EPA considered in the development of this final rule. Section III of this preamble discusses the final confidentiality determinations for new or substantially revised data E:\FR\FM\30NOR3.SGM 30NOR3 86492 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations reporting elements. Section IV of this preamble discusses the impacts of the final amendments to subpart W. Finally, section V of this preamble describes the statutory and executive order requirements applicable to this action. sradovich on DSK3GMQ082PROD with RULES3 B. Background on This Action The EPA’s GHGRP requires annual reporting of GHG data and other relevant information from large sources and suppliers in the United States. On October 30, 2009, the EPA published part 98 in the Federal Register (FR) for collecting information regarding GHG emissions from a broad range of industry sectors (74 FR 56260). Although reporting requirements for petroleum and natural gas systems were originally proposed to be part of part 98 (74 FR 16448, April 10, 2009), the final October 2009 rulemaking did not include the petroleum and natural gas systems source category as one of the 29 source categories for which reporting requirements were finalized. The EPA re-proposed subpart W in 2010 (75 FR 18608; April 12, 2010), and a subsequent final rulemaking was published on November 30, 2010, with the requirements for the petroleum and natural gas systems source category at 40 CFR part 98, subpart W (75 FR 74458). Following promulgation, the EPA finalized several actions revising subpart W (76 FR 22825, April 25, 2011; 76 FR 53057, August 25, 2011; 76 FR 59533, September 27, 2011; 76 FR 80554, December 23, 2011; 77 FR 51477, August 24, 2012; 78 FR 25392, May 1, 2013; 78 FR 71904, November 29, 2013; 79 FR 70352, November 25, 2014; 80 FR 64262, October 22, 2015).2 The Strategy to Reduce Methane Emissions in the President’s Climate Action Plan summarizes the sources of CH4 emissions, commits to new steps to cut emissions of this potent GHG, and outlines the Administration’s efforts to improve the measurement of these emissions. The strategy builds on progress to date and takes steps to further cut CH4 emissions from several sectors, including the oil and natural gas sector. In the strategy, the EPA was specifically tasked with continuing to review GHGRP regulatory requirements to address potential gaps in coverage, improve methods, and ensure high quality data reporting.3 On January 14, 2 See Greenhouse Gas Reporting Program, Historical Rulemakings. Available at https:// www.epa.gov/ghgreporting/rulemaking-notices-ghgreporting. 3 Climate Action Plan—Strategy to Reduce Methane Emissions. The White House, Washington, DC, March 2014. Available at https:// www.whitehouse.gov/sites/default/files/ strategy_to_reduce_methane_emissions_2014-0328_final.pdf. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 2015, the Obama administration provided additional direction to the EPA to ‘‘explore potential regulatory opportunities for applying remote sensing technologies and other innovations in measurement and monitoring technology to further improve the identification and quantification of emissions’’ in the oil and natural gas sector, such as the emissions submitted as part of GHGRP annual reporting.4 Under subpart W, GHGs that must be reported by each industry segment and applicable source types are specified in 40 CFR 98.232, including equipment leaks from listed component types. In order to fulfill these equipment leak emissions reporting requirements, reporters must utilize one of two calculation methodologies 5 to calculate GHG emissions from equipment leaks as specified in 40 CFR 98.233: (1) Calculation methodology based on equipment leak surveys (40 CFR 98.233(q)), or (2) calculation methodology based on population counts (40 CFR 98.233(r).6 For example, facilities in the Onshore Natural Gas Processing and Onshore Natural Gas Transmission Compression industry segments use the calculation methodology based on equipment leak surveys for most components at their facilities. If 40 CFR 98.233(q) specifies that an equipment leak survey is required for the subsection of listed component types in 40 CFR 98.232, reporters must use one of the monitoring methods specified in 40 CFR 98.234 when conducting those equipment leak surveys to detect leaking components at the facility. The calculation methodology based on equipment leak surveys requires that the reporter then determine the total 4 FACT SHEET: Administration Takes Steps Forward on Climate Action Plan by Announcing Actions to Cut Methane Emissions. The White House, Office of the Press Secretary, January 14, 2015. Available at https://www.whitehouse.gov/thepress-office/2015/01/14/fact-sheet-administrationtakes-steps-forward-climate-action-plan-anno-1. 5 Throughout this preamble, the term ‘‘calculation methodology’’ refers to the procedures used to calculate emissions (e.g., ‘‘calculation methodology based on equipment leak surveys’’ refers to the methodology described in 40 CFR 98.233(q)) and ‘‘monitoring method’’ refers to the technology, test method, or other method of determining whether an individual component is leaking (see 40 CFR 98.234(a)). The term ‘‘leak detection method’’ that is used in the 40 CFR part 98 subpart W regulatory text has the same meaning as ‘‘monitoring method’’ used in this preamble. 6 Reporters using the calculation methodology based on population counts determine the total number of all components in the facility and multiply that count by the average estimated time of operation, the concentration of the CH4 and CO2 in the gas, and the applicable emission factor (referred to as a ‘‘population emission factor’’) to calculate emissions. PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 amount of time each component was assumed to be leaking and multiply that by the concentration of the methane (CH4) and carbon dioxide (CO2) in the gas and the applicable emission factor (referred to as a ‘‘leaker emission factor’’), listed in Table W–1E and Table W–2 through Table W–7, to calculate emissions. Finally, 40 CFR 98.236 specifies the data elements that must be reported to the EPA. On January 29, 2016, the EPA proposed ‘‘Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ (81 FR 4987) to add new monitoring methods for detecting leaks from oil and gas equipment, to revise which industry segments and sources use the calculation methodology based on equipment leak surveys or the calculation methodology based on population counts, to clarify how the definition of fugitive emission components in the new source performance standards (NSPS) for the oil and natural gas sector (40 CFR part 60, subpart OOOOa, at 81 FR 35824) (hereafter referred to as the ‘‘NSPS subpart OOOOa’’) aligns with the equipment components subject to subpart W, to add leaker emission factors for multiple industry segments, and to add reporting requirements and confidentiality determinations for new or substantially revised data elements. Under those proposed amendments, facilities with fugitive emissions components at a well site or compressor station subject to the NSPS subpart OOOOa would use data derived from the NSPS subpart OOOOa fugitive emissions requirements (i.e., which components were determined to have fugitive emissions) along with the subpart W leaker emission factors to calculate and report GHG emissions to the GHGRP. The proposed revisions provided the opportunity for owners and operators of sources not subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions standards (e.g., sources participating in a voluntarily implemented program) and not already required to conduct leak surveys under subpart W to optionally use the calculation methodology at 40 CFR 98.233(q) to calculate and report their GHG emissions to the GHGRP. The EPA also proposed that facilities that are already required to conduct leak surveys under subpart W would be able to use the newly proposed monitoring method(s) in 40 CFR 98.234. In addition, the EPA proposed new reporting requirements for all reporters using the calculation methodology E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations based on equipment leak surveys and proposed to require reporters using the calculation methodology for the first time to begin reporting the information associated with that methodology. Finally, the EPA proposed confidentiality determinations for nine new or substantially revised data elements. The public comment period for these proposed rule amendments ended on March 15, 2016, following a 15-day extension of the original comment period end date (81 FR 9797; February 26, 2016). On June 3, 2016, the EPA published the final NSPS subpart OOOOa requirements (81 FR 35824). In this action, the EPA is finalizing revisions to subpart W largely as proposed, with some changes made after consideration of public comments. Summaries of significant comments submitted on the proposed amendments and the EPA’s responses to those comments can be found in sections II, III, and IV of this preamble. All comments submitted on the proposed amendments and the EPA’s additional responses to the comments can be found in ‘‘Response to Public Comments on Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 0764. As further detailed in the preamble to the proposed amendments, these revisions advance the EPA’s goal of maximizing rule effectiveness by providing a mechanism for facilities to use the NSPS subpart OOOOa monitoring results for purposes of GHGRP subpart W reporting. This alignment reduces burden for entities subject to the fugitive emissions/ equipment leak detection method requirements in both programs, and, when combined with the other amendments being finalized in this revision, provides clear monitoring methods, equipment leak survey and calculation methodologies and emission factors, and reporting requirements in subpart W, thus enabling government, regulated entities, and the public to easily identify and understand regulatory requirements. These amendments also further advance the ability of the GHGRP to provide access to high quality data on GHG emissions by adding the ability for reporters to use data collected during equipment leak surveys and to perform site-specific equipment leak calculations. C. Legal Authority The EPA is finalizing these rule amendments under its existing CAA authority provided in CAA section 114. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 As stated in the preamble to the 2009 final GHG reporting rule (74 FR 56260; October 30, 2009), CAA section 114(a)(1) provides the EPA broad authority to require the information to be gathered by this rule because such data will inform and are relevant to the EPA’s carrying out a wide variety of CAA provisions. See the preambles to the proposed (74 FR 16448; April 10, 2009) and final GHG reporting rule (74 FR 56260; October 30, 2009) for further information. In addition, pursuant to sections 114, 301, and 307 of the CAA, the EPA is publishing final confidentiality determinations for the new or substantially revised data elements required by these amendments. Section 114(c) requires that the EPA make information obtained under section 114 available to the public, except for information (excluding emission data) that qualifies for confidential treatment. The Administrator has determined that this action is subject to the provisions of section 307(d) of the CAA. Section 307(d) contains a set of procedures relating to the issuance and review of certain CAA rules. D. How do these amendments apply to 2016 and 2017 reports? These amendments are effective on January 1, 2017. Starting with the 2017 reporting year, facilities must follow the revised methods to detect equipment leaks (if applicable) and to calculate and report their annual equipment leak emissions. The first annual reports of emissions calculated using the amended requirements will be those submitted by April 2, 2018, covering reporting year 2017. For reporting year 2016, reporters will calculate emissions according to the requirements in part 98 that are applicable to reporting year 2016 (i.e., the requirements in place until the effective date of this final rule). II. Summary of Final Revisions and Other Amendments to Subpart W and Responses to Public Comment Sections II.A through II.F of this preamble describe the revisions that we are finalizing in this rulemaking. Section II.A provides a general summary of the final amendments to subpart W. Section II.B describes the final amendments to the requirement to use the calculation methodology based on equipment leak surveys. Section II.C describes the final amendments to the subpart W monitoring methods. Section II.D describes the final amendments for component types to be surveyed. Section II.E describes the final amendments to the subpart W leaker emission factors. Finally, section II.F PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 86493 provides a summary of the final amendments to the subpart W reporting requirements. The amendments described in each section are followed by a summary of the major comments on those amendments and the EPA’s responses. See ‘‘Response to Public Comments on Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 0764 for a complete listing of all comments and the EPA’s responses. A. Summary of Final Amendments— General 1. Summary of Final Amendments In this action, the EPA is amending subpart W to add new monitoring methods for detecting leaks from oil and gas equipment in the petroleum and natural gas systems source category consistent with the NSPS subpart OOOOa. The EPA is also specifying that facilities with a collection of fugitive emissions components at a well site or compressor station subject to the NSPS subpart OOOOa (40 CFR 60.5397a) would be required to survey those components, except as otherwise specified in this subpart W final rule, for the subpart W calculation methodology based on equipment leak surveys using one of the new monitoring methods being added to subpart W. In practice, this means that facilities can use the results of the NSPS subpart OOOOa-required fugitive emissions monitoring survey to fulfill these subpart W requirements. The EPA is adding leaker emission factors to be used in conjunction with the calculation methodology based on equipment leak surveys to calculate and report GHG emissions. The revisions provide the opportunity for owners and operators of sources not subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions standards (e.g., sources participating in a voluntarily implemented program) and not already required to conduct leak surveys under subpart W to optionally use the calculation methodology at 40 CFR 98.233(q) to calculate and report their GHG emissions, and to use the new monitoring methods in 40 CFR 98.234 to do so. Facilities in certain subpart W industry segments 7 that are already required to conduct leak surveys will be able to use the new monitoring methods 7 These segments are Onshore Natural Gas Transmission Compression, Underground Natural Gas Storage, LNG Storage, and LNG Import and Export Equipment. E:\FR\FM\30NOR3.SGM 30NOR3 86494 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES3 in 40 CFR 98.234. If they use either of the two new monitoring methods in 40 CFR 98.234(a)(6) or (7) that are consistent with the NSPS subpart OOOOa, then in addition to surveying the components currently subject to the survey requirements in subpart W, they must also survey all other components that are fugitive emissions components in the NSPS subpart OOOOa, with limited exceptions, as specified in 40 CFR 98.232 (see sections II.C and II.D of this preamble). If they use any of the monitoring methods currently in 40 CFR 98.234(a)(1) through (5), then in addition to surveying the components currently subject to the survey requirements in subpart W, they may elect to survey the other components specified in 40 CFR 98.232. The comments received on this rule generally do not dispute the merit of allowing the use of new monitoring methods in subpart W, but they do include issues related to the adequacy of the notice and comment process, the calculation methodology based on equipment leak surveys, reporting, and applicability. 2. Summary of Comments and Responses Comment: Numerous commenters stated that the EPA’s reference to the proposed NSPS subpart OOOOa included in the subpart W proposal was premature, and substantively and procedurally flawed. According to these commenters, by relying on a proposed action, the EPA did not provide the opportunity for notice or comment on how the rule would ultimately affect stakeholders. These commenters stated that at the very least the EPA made it difficult and increased burden for stakeholders to evaluate scope and impacts and to provide comment. Commenters stated that they could only comment on the effect of the incorporation of the NSPS subpart OOOOa proposed requirements, as they could not review and comment on the effect of the finalized NSPS subpart OOOOa requirements on subpart W prior to closure of the comment period for the subpart W proposal. Specifically, the commenters expressed concern that because the EPA received so many comments on the proposed NSPS subpart OOOOa, the final NSPS subpart OOOOa provisions would likely be significantly different in certain aspects and that those details were unknowable at the time of comment. Noting that the EPA expressed intent in the preamble to the subpart W proposed amendments to incorporate the final NSPS subpart OOOOa provisions in the final subpart W rule, the commenters stated they VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 inherently would have no formal opportunity to meaningfully comment on the effect those final NSPS subpart OOOOa provisions would have on subpart W reporters. Several commenters stated that this created substantive and procedural flaws in the proposed rule, as the EPA provided neither the ‘‘terms or substance’’ nor a ‘‘description of the subjects and issues involved’’ of the proposed rule as required for notice and comment rulemaking under the Administrative Procedure Act, 5 U.S.C. 553(b), nor did the EPA meet the more stringent notice and comment requirements of CAA section 307. Several commenters stated that EPA similarly did not consider changes that might be made to the final NSPS subpart OOOOa through the judicial review process. Several commenters requested that the EPA either finalize, or re-propose or re-open the public comment period for, the proposed alignment of subpart W with the NSPS subpart OOOOa only after the NSPS subpart OOOOa is finalized. Other commenters requested that the EPA withdraw the proposal to amend subpart W and reconsider whether any revisions are necessary once the NSPS subpart OOOOa is in effect. Response: The EPA disagrees that the proposed rule for this subpart W revision was premature, or substantively and procedurally flawed. This action is focused on aligning the subpart W requirements, to the extent possible, with the finalized NSPS subpart OOOOa fugitive emission requirements so that facilities may use the results of the NSPS subpart OOOOa-required fugitive emissions monitoring surveys to fulfill subpart W requirements, and does so through revisions that incorporate final NSPS subpart OOOOa monitoring methods into subpart W and make their use mandatory in subpart W surveys for most components subject to NSPS subpart OOOOa. The proposed rule for subpart W clearly specified that only a monitoring method finalized in the NSPS subpart OOOOa rule would be finalized for subpart W, which ensured that no requirement would reference any monitoring method that was merely at proposal stage. The proposed rule provided adequate notice and opportunity to comment on how the rule will affect stakeholders, and thus this final rule is in compliance with the relevant requirements of CAA section 307(d). Multiple commenters cited the Administrative Procedure Act (APA), including 5 U.S.C. 553(b)(3), which requires that a notice of proposed rulemaking shall include ‘‘either the terms or substance of the proposed rule PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 or a description of the subjects and issues involved.’’ The EPA notes that our process is also consistent with the notice and comment requirements of the APA, 5 U.S.C. 551–559. In the preamble to the proposed and final rule, as well as in ‘‘Response to Public Comments on Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 0764, the EPA describes at length the statement and purpose of the revisions, provides explanations for any changes in the rule, and responds to all comments submitted. Specifically, in regards to the proposed rule referencing the then proposed NSPS subpart OOOOa monitoring method(s) and fugitive emissions component definition,8 the EPA disagrees that the proposed rule did not give adequate notice and therefore the EPA did not re-propose or re-open the comment period for this action. The proposed rule clearly laid out the EPA’s proposal and requested comment regarding alternatives, as well as the detailed reasoning behind and goals of the proposal. The EPA provided this detailed explanation to ensure that commenters had ample notice of the revisions under consideration, and provided 45 days for the public comment period. This process accords with proper notice and comment procedure. Commenters posit that referencing the then proposed NSPS subpart OOOOa standard in the proposed rule renders this notice premature and inadequate, and the EPA respectfully disagrees. First, in proposing to add the NSPS subpart OOOOa equipment leak detection methods as approved monitoring methods for subpart W surveys, the EPA was not proposing to require any new collection of data under subpart W, as the data on fugitive emissions components would already be collected to meet the requirements of NSPS subpart OOOOa. Instead, the EPA proposed to add these new monitoring methods under subpart W so that reporters would be able to use, for the purpose of compliance with the proposed mandatory subpart W equipment leak survey, calculation, and reporting requirements, whatever data would already be collected as a result of complying with the monitoring method(s) that would be finalized in the NSPS subpart OOOOa. Similarly, while the EPA proposed to include all fugitive emissions components subject to the 8 The NSPS subpart OOOOa rule has since been finalized. 81 FR 35824 (June 3, 2016). E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations final NSPS subpart OOOOa monitoring methods within subpart W emissions reporting requirements, with some exceptions, which would mean that additional components would fall within the scope of subpart W applicability, these data would already be collected under the NSPS subpart OOOOa, meaning that no new data would need to be collected for subpart W that was not already required by another CAA program. As such, the substance of the monitoring method(s) and fugitive emission component definition was not at issue for purposes of subpart W within these revisions, as that process took place within the NSPS subpart OOOOa rulemaking. Rather, the EPA ensured that reporters were provided notice of the proposal to add the monitoring methods and scope of components that would be finalized under the NSPS OOOOa as additional monitoring methods and applicable components for subpart W, provided notice of the proposed additional subpart W equipment leak survey, calculation, and reporting requirements for equipment components subject to the NSPS subpart OOOOa, and made clear that the intent of these revisions was to align the programs so that reporters would use the data gathered in complying with the finalized NSPS subpart OOOOa to comply with their subpart W requirements. The proposed rule further explained the purpose behind this proposed revision, as detailed in the proposed rule (81 FR 4987; January 29, 2016), including reducing burden on reporters by minimizing the potential equipment leak surveys required at a given facility across CAA programs. As noted earlier, the proposed rule for subpart W clearly specified that only a monitoring method finalized in the NSPS subpart OOOOa rule would be finalized for subpart W, which ensured that no requirement would reference any monitoring method that was merely at proposal stage. In fact, the proposed rule for subpart W clearly detailed the NSPS subpart OOOOa proposed monitoring method, and identified that the NSPS subpart OOOOa proposal included a potential alternative monitoring method, and furthermore explained that any method(s) added in this final subpart W action would be the method(s) that were finalized in the NSPS subpart OOOOa. Furthermore, Subpart W currently includes an optical gas imaging (OGI) method (see 40 CFR 98.234(a)(1)) and Method 21 (40 CFR 98.234(a)(2)) in the subpart W list of monitoring methods. While there are differences in the application of the methods between the VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 current subpart W and the final NSPS subpart OOOOa,9 necessitating this revision, current use of OGI and Method 21 for purposes of subpart W provides support that the methods at issue provide reliable data for use in subpart W emissions reporting. This final rule incorporates the monitoring methods finalized in the NSPS subpart OOOOa with some changes from proposal. To the extent the specifics of how this final subpart W rule is adding method(s) in accordance with the NSPS subpart OOOOa differ from the specifics in the subpart W proposal, as explained further in section II.C of this preamble, these changes are consistent with the purpose detailed in the proposed rule and were made to ensure only those portions of the final NSPS subpart OOOOa that are essential to the integrity of the methods are referenced within the requirements of subpart W. This final rule revises applicable components subject to subpart W to include all components subject to the final NSPS subpart OOOOa, except for the finalized as proposed exclusion of certain components, as further detailed in section II.D of this preamble. The EPA notes that while we finalized the reference to the NSPS subpart OOOOa with certain exceptions regarding applicable components as proposed, the final NSPS subpart OOOOa definition of fugitive emission components was narrower in scope than that rule’s proposal. This final rule also includes revisions, with some changes from proposal as detailed in Sections II.B, II.D, II.E, and II.F of this preamble, to how reporters must use the data obtained in accordance with the methods finalized in the NSPS subpart OOOOa for subpart W reporting. Although the EPA’s own reasoned consideration and its assessment of public comment have resulted in some modifications to the final rule, as explained further in sections II.B through II.F of this preamble, such changes reflect the goals and alternatives in the EPA’s original proposal, and the proposed rule ensured that interested parties were ‘‘fairly apprised’’ of the elements ultimately included in this final rulemaking. See, e.g., United Steelworkers of America v. Schuylkill Metals, 828 F.2d 314 (5th Cir. 1987). While some changes occurred to the NSPS subpart OOOOa requirements from proposal to final in that rulemaking, including changes to the substance of the monitoring methods and the fugitive emission component 9 See PO 00000 section II.C of this preamble. Frm 00007 Fmt 4701 Sfmt 4700 86495 definition, those substantive changes are out of scope of this subpart W rulemaking that is intended to align with the final NSPS subpart OOOOa requirements; however, commenters were provided full notice and opportunity to comment within that NSPS subpart OOOOa rulemaking, as fully explained within those proposed and final preambles, the EPA’s response to comments, and the docket of that action.10 The commenter is correct that the EPA did not consider changes that may be made to the final NSPS subpart OOOOa through the judicial review process. Any such potential, future changes are premature to consider at this time. B. Summary of Final Amendments to the Requirement To Use the Calculation Methodology Based on Equipment Leak Surveys 1. Summary of Final Amendments As noted in section I.B of this preamble, subpart W presently requires reporters with sources in certain industry segments to use the calculation methodology based on population counts according to 40 CFR 98.233(r). For example, reporters in the Onshore Petroleum and Natural Gas Production and the Onshore Petroleum and Natural Gas Gathering and Boosting industry segments are required either to count the number of equipment components of each type (e.g., valve, connector, open-ended line, or pressure relief valve) or to count the number of major equipment at the facility and then calculate the number of equipment components of each type using default average component counts for each piece of major equipment in Tables W– 1B and W–1C to subpart W (40 CFR 98.233(r)(2)). The resulting equipment component counts are then multiplied by default ‘‘population emission factors’’ in Table W–1A to subpart W to calculate emissions from equipment leaks. Other reporters are required to use the calculation methodology based on equipment leak surveys according to 40 CFR 98.233(q) using one of the monitoring methods in 40 CFR 98.234(a). For example, reporters in the Onshore Natural Gas Transmission Compression industry segment must conduct at least one equipment leak survey in a calendar year for the compressor and non-compressor components in gas service listed in Table W–3A to subpart W. These reporters then use the number of leaking 10 Docket E:\FR\FM\30NOR3.SGM ID No. EPA–HQ–OAR–2010–0505. 30NOR3 86496 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations components in the calendar year, the average amount of time each component was leaking, and the default ‘‘leaker emission factors’’ in Table W–3A to subpart W to calculate emissions according to Equation W–30. The EPA is finalizing the proposal to apply the calculation methodology based on equipment leak surveys in 40 CFR 98.233(q) to additional reporters in subpart W. Specifically, reporters in any subpart W industry segment with a well site(s) and/or compressor station(s) required to conduct fugitive emissions monitoring to comply with the NSPS subpart OOOOa will be required to use the calculation methodology based on equipment leak surveys for those components 11 under subpart W using the new monitoring methods consistent with the NSPS subpart OOOOa (see section II.C of this preamble). While these are new calculation methodology and equipment leak survey requirements for the subpart W reporting of these components, reporters may meet the survey requirements by counting the actual number of components with fugitive emissions identified through implementation of the NSPS subpart OOOOa as leaks for purposes of subpart W and use those counts with the calculation methodologies specified in 40 CFR 98.233(q) to determine equipment leak emissions for those components. We received extensive comment regarding the proposed revisions to require facilities in the Onshore Natural Gas Processing industry segment to use the results of the leak surveys conducted to comply with the NSPS subpart OOOOa equipment leak requirements for reporting under subpart W. We are still reviewing those comments and are not taking final action on those revisions at this time. For other sources of equipment leaks (i.e., those not subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions standards),12 the amended subpart W requirements depend on whether the component types are currently required to be reported using the calculation methodology based on equipment leak surveys (40 CFR 98.233(q)) or the calculation methodology based on population counts (40 CFR 98.233(r)). For components at facilities in industry segments that are currently required to use the calculation methodology based on equipment leak surveys to comply with subpart W, the EPA is finalizing as proposed that reporters must continue to conduct equipment leak surveys as required by subpart W but may use any monitoring method in 40 CFR 98.234(a). If they use either of the two new monitoring methods in 40 CFR 98.234(a)(6) or (7) that are consistent with the NSPS subpart OOOOa, then in addition to surveying the components currently subject to the survey requirements in subpart W, they must also survey all other components that are fugitive emissions components in the NSPS subpart OOOOa, with limited exceptions, as specified in 40 CFR 98.232 (see sections II.C and II.D of this preamble). If they use any of the monitoring methods currently in 40 CFR 98.234(a)(1) through (5), then in addition to surveying the components currently subject to the survey requirements in subpart W, they may elect to survey the other components specified in 40 CFR 98.232. For components at facilities in industry segments that are currently required to use the calculation methodology based on population counts, the reporter may continue to use that methodology. Alternatively, the EPA is finalizing as proposed the option that the reporter may elect to use the calculation methodology based on equipment leak surveys (40 CFR 98.233(q)(1)(iv)) in lieu of the calculation methodology based on population counts (40 CFR 98.233(r)). If this option is selected, then the reporter must use any of the monitoring methods in 40 CFR 98.234(a). If they use a monitoring method in 40 CFR 98.234(a)(6) or (7), then they must survey all components that would otherwise be subject to the calculation methodology based on population counts, and they must also survey all other components that are fugitive emissions components in the NSPS subpart OOOOa, with limited exceptions, as specified in 40 CFR 98.232. If they use any of the monitoring methods currently in 40 CFR 98.234(a)(1) through (5), then in addition to surveying the components that would otherwise be subject to the calculation methodology based on population counts, they may elect to survey the other specified in 40 CFR 98.232. The intent of the new provision in 40 CFR 98.233(q)(1)(iv) is to allow flexibility for reporters currently required to use the calculation methodology based on population counts for components that are not subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions standards. The burden of using the calculation methodology based on equipment leak surveys will be similar to using the existing subpart W calculation methodology based on population counts, and the results will be more representative of the number of leaks at the facility than the calculation methodology based on population counts. Table 2 of this preamble provides a summary of the equipment leak calculation methodologies and monitoring methods that will be available to each industry segment covered by subpart W under these amendments. TABLE 2—FINAL EQUIPMENT LEAK REQUIREMENTS FOR SUBPART W Subpart W industry segments a sradovich on DSK3GMQ082PROD with RULES3 Onshore Petroleum and Natural Gas Production. Components subject to 40 CFR 60.5397a of the NSPS subpart OOOOa Subpart W calculation methodology b Subpart W monitoring method for leak detection c Leak survey (40 CFR 98.233(q)). OGI or Method 21 as specified in the NSPS subpart OOOOa. Onshore Natural Gas Leak survey (40 CFR Transmission Compres98.233(q)). sion; Underground Natural Gas Storage: Storage stations, gas service. OGI or Method 21 as specified in the NSPS subpart OOOOa. 11 See section II.D of this preamble. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 Components not subject to 40 CFR 60.5397a of the NSPS subpart OOOOa Subpart W calculation methodology Leak survey (40 CFR 98.233(q)); OR Population count (40 CFR 98.233(r)). Leak survey (40 CFR 98.233(q)) e. 12 Except for onshore natural gas processing and natural gas distribution. PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 E:\FR\FM\30NOR3.SGM 30NOR3 Subpart W monitoring method for leak detection d Any method in 40 CFR 98.234(a). N/A. Any method in 40 CFR 98.234(a). Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations 86497 TABLE 2—FINAL EQUIPMENT LEAK REQUIREMENTS FOR SUBPART W—Continued Subpart W industry segments a Components subject to 40 CFR 60.5397a of the NSPS subpart OOOOa Subpart W calculation methodology b Subpart W monitoring method for leak detection c Underground Natural Gas Storage: Storage wellheads, gas service. Leak survey (40 CFR 98.233(q)). OGI or Method 21 as specified in the NSPS subpart OOOOa. LNG f Storage: LNG Service; LNG Import and Export Equipment: LNG Service. LNG Storage: Gas Service; LNG Import and Export Equipment: Gas Service. Leak survey (40 CFR 98.233(q)). OGI or Method 21 as specified in the NSPS subpart OOOOa. Leak survey (40 CFR 98.233(q)). OGI or Method 21 as specified in the NSPS subpart OOOOa. Components not subject to 40 CFR 60.5397a of the NSPS subpart OOOOa Subpart W calculation methodology Leak survey (40 CFR 98.233(q)); OR Population count (40 CFR 98.233(r)). Leak survey (40 CFR 98.233(q)). Leak survey (40 CFR 98.233(q)); OR Population count (40 CFR 98.233(r)) g. Subpart W monitoring method for leak detection d Any method in 40 CFR 98.234(a). N/A. Any method in 40 CFR 98.234(a). Any method in 40 CFR 98.234(a). N/A. a Onshore Natural Gas Processing and Natural Gas Distribution are not included in this table because we are not revising the calculation methodology and monitoring method for leak detection for these industry segments in this action. The current requirements are still applicable to components in these industry segments. b The term ‘‘calculation methodology’’ refers to the procedures used to calculate emissions (e.g., ‘‘calculation methodology based on equipment leak surveys’’ refers to the methodology described in 40 CFR 98.233(q)) and ‘‘monitoring method’’ refers to the technology, test method, or other method of determining whether an individual component is leaking (see 40 CFR 98.234(a)). c OGI as specified in the NSPS subpart OOOOa is codified in subpart W at 40 CFR 98.234(a)(6) and Method 21 as specified in the NSPS subpart OOOOa is codified in subpart W at 40 CFR 98.234(a)(7). d ‘‘Any method in 40 CFR 98.234(a)’’ means any of the following methods: OGI as specified in 40 CFR 60.18 (40 CFR 98.234(a)(1)), Method 21 with a leak definition of 10,000 parts per million by volume (ppmv)(40 CFR 98.234(a)(2)), Infrared laser beam illuminated instrument (40 CFR 98.234(a)(3)), Acoustic leak detection device (40 CFR 98.234(a)(5)), OGI as specified in the NSPS subpart OOOOa (40 CFR 98.234(a)(6)) or Method 21 with a leak definition of 500 ppmv (40 CFR 98.234(a)(7)). e Reporting is required for emissions from valves, connectors, open-ended lines, pressure relief valves, and meters but is optional for instruments and other components unless the reporter elects to use either OGI or Method 21 as specified in the NSPS subpart OOOOa (40 CFR 98.234(a)(6) or (7)), in which case reporting is also required for instruments and other fugitive emissions components.13 f LNG = liquefied natural gas. g Reporting is only required for emissions from vapor recovery compressors if this option is chosen. 2. Summary of Comments and Responses sradovich on DSK3GMQ082PROD with RULES3 Comment: Several commenters stated that facilities in the Onshore Petroleum and Natural Gas Production and Onshore Petroleum and Natural Gas Gathering and Boosting industry segments should not be required to use the NSPS subpart OOOOa results to calculate GHG emissions to comply with subpart W. They stated that the proposed NSPS subpart OOOOa leak detection program was limited to one monitoring method, which is inconsistent with the current flexibility for reporters conducting equipment leak surveys for subpart W to choose any monitoring method within 40 CFR 98.234(a). The commenters asserted that this requirement will result in some subpart W reporters having to manage multiple equipment leak survey programs within one facility, especially if the facility is located within a state with a different leak detection program, and this result is overly burdensome. In 13 See section II.D.1 of this preamble for the EPA’s decision on the final subpart W requirements for components not subject to 40 CFR 60.5397a of the NSPS Subpart OOOOa from affected facilities in the Onshore Natural Gas Transmission Compression industry segment, and storage stations in gas service within the Underground Natural Gas Storage industry segment. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 addition, the commenters stated that the equipment leak survey results will be internally inconsistent if they use different methods, and a facility’s emissions could appear to increase one year simply because the number of sites subject to the NSPS subpart OOOOa increases, requiring the reporter to use the OGI method in the NSPS subpart OOOOa for an increased number of components. Instead, the reporters suggested, use of the calculation methodology based on equipment leak surveys, including the selection of monitoring method within 40 CFR 98.234(a), should be voluntary for all facilities not currently required to conduct leak surveys under subpart W. In contrast, another commenter requested that the EPA require all subpart W reporters to detect leaks using direct equipment leak detection technologies such as OGI. The commenter stated that leak detection using OGI can produce more accurate data than current subpart W methods and that the EPA’s approach is consistent with the EPA’s stated goals to enhance the rigor and transparency of subpart W data. In addition, the commenter stated that applying OGI detection uniformly across subpart W sources will produce data that is readily comparable across facilities and will PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 allow the EPA to assess the performance of facilities over time. Response: For facilities that have affected sources required to conduct fugitive emissions monitoring to comply with the NSPS subpart OOOOa well site or compressor station fugitive emissions standards, the EPA is finalizing as proposed that these components must meet the subpart W calculation methodology based on equipment leak survey requirements. In practice, this means reporters can meet these requirements by counting the actual number of components with fugitive emissions identified through implementation of the NSPS subpart OOOOa as leaks for purposes of subpart W. This requirement will achieve the EPA’s stated goal of alignment with the NSPS subpart OOOOa and will assist in providing the EPA with a greater understanding of emission reductions. At this time, we are not requiring all subpart W facilities to perform a leak detection survey using direct equipment leak detection technologies such as OGI. Rather this action is focused on aligning the subpart W requirements, to the extent possible, with the NSPS subpart OOOOa fugitive emission requirements so that facilities may use the results of the NSPS subpart OOOOa-required E:\FR\FM\30NOR3.SGM 30NOR3 86498 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations fugitive emissions monitoring surveys to fulfill subpart W requirements. The EPA does not agree that a subpart W requirement to use the results of a previously completed leak survey within the subpart W calculation methodology based on equipment leak surveys will result in an undue burden to these reporters. For components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions standards, there is little to no burden associated with using the number of components found to have fugitive emissions as the number of leaking components in the subpart W calculation methodology based on equipment leak surveys. The only additional piece of information these reporters need to calculate emissions is the amount of time each component was leaking, and this is a straightforward determination based on the dates of the equipment leak surveys. See section IV.B of this preamble for information and responses to comments related to the EPA’s burden estimates for these amendments. sradovich on DSK3GMQ082PROD with RULES3 C. Summary of Final Amendments to Monitoring Methods 1. Summary of Final Amendments The EPA is finalizing the proposal to add OGI, as specified in the NSPS subpart OOOOa, to the list of monitoring methods in 40 CFR 98.234(a). The addition of this specific OGI method to subpart W at 40 CFR 98.234(a)(6) aligns the methods in the two rulemakings and allows subpart W facilities to directly use information derived from the implementation of the fugitive emissions monitoring conducted under the NSPS subpart OOOOa to calculate and report equipment leak emissions to the GHGRP. The EPA has made changes to the proposed subpart W amendments after consideration of public comment and/or to be consistent with the final revisions made to the corresponding proposed NSPS subpart OOOOa specifications. The proposed subpart W amendments cross-referenced the proposed 40 CFR 60.5397a(b) through (e) and (g) through (i), which included the requirements to: (1) Develop a corporate-wide fugitive emissions monitoring plan; (2) develop a site-specific monitoring plan; (3) observe each fugitive emissions component for fugitive emissions; (4) conduct monitoring surveys semiannually; and (5) adjust the frequency of monitoring surveys based on the percent of the fugitive emissions components detected to have fugitive emissions. For the reasons described VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 below, the final amendments to subpart W for the OGI method cross-reference a portion of the NSPS subpart OOOOa requirements to develop the fugitive emissions monitoring plan and the NSPS subpart OOOOa requirements to observe each fugitive emissions component for fugitive emissions. The final NSPS subpart OOOOa requires an emissions monitoring plan that covers the affected sources within each company-defined area. This monitoring plan includes information about the survey frequency, monitoring method and instrument selected, repair procedures and timeframes, recordkeeping, and procedures for calibrating the monitoring instrument and verifying that it can detect fugitive emissions at the required levels. For the final subpart W amendments, the EPA evaluated the NSPS subpart OOOOa requirements for the monitoring plan along with the level of detail in the existing monitoring methods in 40 CFR 98.234(a). The EPA determined that information about the monitoring instrument selected and procedures for calibrating the monitoring instrument and verifying that it can detect fugitive emissions at the required levels is necessary to ensure the OGI monitoring is performed correctly. Therefore, the new OGI detection method in subpart W does include the NSPS subpart OOOOa requirement to develop a monitoring plan that describes the OGI instrument (40 CFR 60.5397a(c)(3)) and how the OGI survey will be conducted to ensure that fugitive emissions can be imaged effectively (40 CFR 60.5397a(c)(7)). The EPA determined that the NSPS subpart OOOOa survey frequency should not be cross-referenced in subpart W because cross-referencing these frequencies would override the current annual survey requirement in subpart W regardless of whether the use of the new monitoring methods is voluntary or mandatory. The EPA determined that the repair procedures and timeframes should not be cross-referenced because subpart W is part of a reporting program and does not require repair of detected leaks. The EPA also determined that the NSPS subpart OOOOa recordkeeping requirements should not be crossreferenced because they include provisions that are not applicable to greenhouse gas reporting, such as records related to repairs. Applicable recordkeeping requirements for all leak detection methods in subpart W are specified at 40 CFR 98.237. The final site-specific monitoring plan in the NSPS subpart OOOOa includes three items specific to the OGI method: (1) A sitemap; (2) a defined observation path for the operator that ensures that PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 all fugitive emissions components are within sight of the path; and (3) a monitoring plan for difficult-to-monitor and unsafe-to-monitor fugitive emissions components. The EPA has reviewed these elements as well and determined not to cross-reference these three elements in subpart W. The observation path and the sitemap ensure that the OGI operator visualizes all of the components that must be surveyed, analogous to requirements in some rules to identify all of the equipment that must be monitored using Method 21 (e.g., 40 CFR 60.486a(e)(1) and 40 CFR 63.162(c)). Subpart W does not include these identification requirements as part of the Method 21 requirements in 40 CFR 98.234(a)(2), so it would be inconsistent to require the observation path as part of the new OGI method. However, while we are not finalizing the explicit requirement to define the observation path the operator will follow during their survey, we do note that 40 CFR part 98, subpart A requires a written GHG monitoring plan for all facilities subject to the GHGRP (see 40 CFR 98.4(g)(5)). Defining an observation path is one item that could be included in the GHG monitoring plan to meet the requirement to describe ‘‘procedures and methods that are used for quality assurance . . . of all . . . other instrumentation’’ used to collect data to comply with the GHGRP (40 CFR 98.3(g)(5)(i)(C)). The EPA is finalizing the proposed requirement to observe each fugitive emissions component for fugitive emissions (40 CFR 60.5397a(e)).14 The EPA considers surveying all fugitive emissions components (instead of just the current list of equipment in subpart W for a particular industry segment) to be an inherent part of the NSPS subpart OOOOa OGI method. The EPA is not cross-referencing the semi-annual (well sites) and quarterly (compressor stations) monitoring frequencies of the final NSPS subpart OOOOa. As noted above, crossreferencing these monitoring frequencies would override the current annual survey requirement in subpart W regardless of whether the use of the new monitoring methods is voluntary or mandatory. The EPA is instead clarifying that for reporters with components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and for which surveys are required or elected, the results from each equipment leak 14 See section II.D.1 of this preamble for details regarding the specific NSPS subpart OOOOadefined fugitive emissions components that are not considered sources of ‘‘equipment leaks’’ in subpart W. E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations survey must be used to calculate GHG emissions for subpart W. The EPA is further clarifying that it is not our intent to require reporters that are not subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements to conduct more than one equipment leak survey in a calendar year for purposes of GHGRP reporting, solely because they choose to use the OGI method. The EPA also notes that the proposed NSPS subpart OOOOa provisions for adjusting the frequency of equipment leak surveys based on the percent of the fugitive emissions components detected to have fugitive emissions were not included in the final NSPS subpart OOOOa and therefore are not cross-referenced in the final subpart W revisions. Finally, consistent with the final NSPS subpart OOOOa, the EPA is finalizing the use of Method 21 as an alternative monitoring method to OGI (as specified in the NSPS subpart OOOOa) at 40 CFR 98.234(a)(7). As the EPA noted in the preamble for this proposed revision to subpart W (81 FR 4989; Jan. 29, 2016), the NSPS subpart OOOOa proposal identified EPA Method 21 as a monitoring method that may also be used to conduct resurveys of repaired components when fugitive emissions are detected (80 FR 56612 (well sites) and 80 FR 56612 (compressor stations)), and the EPA requested comment on including in the final rule the use of Method 21 for fugitive emissions monitoring as well (80 FR 56638 (well sites) and 80 FR 56643 (compressor stations)). The EPA also made clear in the preamble to these proposed revisions to subpart W that, consistent with the goal of aligning the methods in the two rulemakings (subpart W and the NSPS subpart OOOOa), the EPA expected that the final amendments to subpart W for monitoring methods would reference the final version of the method(s) in the NSPS subpart OOOOa, including any changes made to the NSPS subpart OOOOa in response to comments on the proposed monitoring method(s) (81 FR 4991). Accordingly, the EPA is finalizing the use of Method 21 as an alternative monitoring method to OGI (as specified in the NSPS subpart OOOOa) at 40 CFR 98.234(a)(7). For reporters that elect to use Method 21 as specified in 40 CFR 98.234(a)(7), either for components that are subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements or voluntarily, a leak is detected if an instrument reading of 500 ppmv or greater is measured. As explained in this section regarding the NSPS subpart OOOOa OGI monitoring VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 method, we determined that the requirements in 40 CFR 60.5397a(b) are consistent with the requirements of subpart W regarding the development of an emissions monitoring plan; this monitoring plan is required to include verification that the procedures of Method 21 are followed consistent with the requirements in 40 CFR 60.5397a(c)(8). Also, as with the NSPS subpart OOOOa OGI method, the EPA is requiring in subpart W observation of each fugitive emissions component for fugitive emissions consistent with the requirements in 40 CFR 60.5397a(e); the EPA considers surveying all fugitive emissions components to be an inherent part of the NSPS subpart OOOOa Method 21 alternative to the OGI method and is consistent with requirements in subpart W to conduct a complete equipment leak survey. At this time, the EPA is not adding any other monitoring methods to subpart W. We will continue to evaluate equipment leak detection methods and technologies 15 and may amend subpart W to allow the use of additional methods in the future. 2. Summary of Comments and Responses Comment: Many commenters disagreed with the EPA’s proposal to add only the OGI method as specified in the NSPS subpart OOOOa to 40 CFR 98.234(a) of subpart W. They asserted that while OGI is an effective method for finding the majority of emissions more quickly than EPA Method 21, it is also a costly technology that cannot quantify emissions. The commenters stated that OGI has other limitations, especially in non-ideal weather conditions; one commenter also stated that use of the OGI camera requires a hot work permit in many instances. Response: Due to similar comments on the proposed NSPS subpart OOOOa, the final NSPS subpart OOOOa provides owners and operators of new, modified, or reconstructed well sites or compressor stations with the option of using EPA Method 21 with a repair threshold of 500 ppmv if they elect not to use the OGI method (40 CFR 60.5397a). As discussed in section II.C.1 of this preamble, the final amendments to subpart W provide for the use of EPA Method 21 where a leak is detected for purposes of subpart W if an instrument reading of 500 ppmv or greater is measured. This amendment to subpart W maintains the alignment with the 15 For example, the EPA has issued a voluntary request for information inviting all parties to provide information on innovative technologies to detect, measure, and mitigate emissions from the oil and gas industry. See 81 FR 46670 (July 18, 2016). PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 86499 NSPS subpart OOOOa well site and compressor station fugitive emissions monitoring requirements, so that reporters can directly use the NSPS subpart OOOOa monitoring results to count the number of leaks under subpart W. Comment: Many commenters stated that leak detection technology is a rapidly growing field and there are many alternative technologies and new technologies in development that may be more accurate and less costly than OGI. Some commenters noted that recent emphasis on CH4 emissions has caused vendors to focus on CH4 leak detection. Therefore, according to the commenters, some of those technologies may be better options for the purpose of reporting emissions under subpart W than other leak detection programs. The commenters stated that the EPA’s proposal to limit leak surveys to a prescriptive list of methods could limit development of these new technologies. Commenters provided a variety of suggestions for incorporation of new and emerging technologies into subpart W. Three commenters recommended that the EPA establish a clear process for industry, vendors, and/or the EPA to evaluate the efficacy and accuracy of alternative CH4 monitoring technologies and approve the use of those technologies. One of these commenters noted that any technology evaluation process should be straightforward and more streamlined than the years-long process needed to approve emissions control devices or continuous emissions monitoring systems. Another of these commenters suggested that the EPA model a technology evaluation process after the vendor testing program for flares and combustors, in which the EPA sets testing protocols and vendors demonstrate that they can meet specific criteria. A fourth commenter suggested that the EPA develop a pilot program to incentivize the accelerated development and deployment of advanced monitoring and detection technologies and to compare the effectiveness of these approaches to periodic, OGI-based surveys. Response: The EPA agrees with the commenters that emissions monitoring in the oil and gas sector is a field of emerging technology, and major advances are expected in the near future. We are seeing a rapidly growing push to develop and produce low-cost monitoring technologies to find fugitive CH4 emissions sooner and at lower levels than current technology allows, thus enhancing the ability of operators to detect fugitive emissions. The EPA agrees that continued development of these cost-effective technologies is E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 86500 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations important. However, the EPA does not have enough information at this time to evaluate specific technologies to determine if they are equivalent to or better than the monitoring methods provided in and being added to 40 CFR 98.234(a). The EPA may evaluate new options as they become available and determine if they are equivalent to existing methods. For example, the final NSPS subpart OOOOa provides a process for the EPA to determine that a technology can be used as an ‘‘alternative means of emission limitation.’’ 16 As technologies are approved through this process, the EPA anticipates that it would contemporaneously incorporate these monitoring methods in subpart W to ensure continued alignment between the NSPS subpart OOOOa and subpart W through future notice and comment rulemaking. Comment: Multiple commenters addressed the proposed requirement to consider any fugitive emissions observed using OGI during the NSPS subpart OOOOa fugitive emissions monitoring as a leak for purposes of subpart W. Most of these commenters objected to the proposal and stated that the definition of a leak for subpart W should be 10,000 ppmv, regardless of the monitoring method used. These commenters asserted that setting the leak definition consistent with the current methods in subpart W would ensure that the new methods result in new information being collected and reported consistently within a facility and consistent with the equipment leak data already in the GHGRP. One commenter noted that defining a leak as emissions at a set concentration is much less subjective than defining a leak as any emissions observed with OGI, and setting the leak definition at 10,000 ppmv rather than a lower concentration would allow operators to focus on finding (and fixing) large leaks instead of spending resources to identify many small leaks that do not contribute much to overall emissions. Another commenter noted that a leak definition of 10,000 ppmv is consistent with the leaker emission factors currently provided in subpart W as well as the proposed new leaker emission factors. One commenter agreed with a subpart W leak being defined as any fugitive emissions observed using OGI during the NSPS subpart OOOOa fugitive 16 See 40 CFR 60.5398a titled ‘‘What are the alternative means of emission limitations for GHG and volatile organic compounds from well completions, reciprocating compressors, the collection of fugitive emissions components at a well site and the collection of fugitive emissions components at a compressor station?’’ VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 emissions monitoring or emissions above 500 ppmv detected via EPA Method 21, but the commenter asserted that the leak definition for any new or emerging technologies used in a voluntary leak survey should be 5,000 ppmv. The commenter noted that these new technologies are likely to be more sensitive and detect emissions at lower concentrations than OGI, and companies that are employing more accurate instruments should not be ‘‘penalized’’ by having to report more leaks than if they used OGI. Response: Subpart W already includes OGI and EPA Method 21 with a leak definition of 10,000 ppmv for use by reporters currently required to conduct leak surveys for subpart W. The final amendments also provide for use of these methods by reporters electing to conduct an equipment leak survey voluntarily (i.e., for sources currently required to use the calculation methodology based on population counts that are not subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements). The EPA is adding the methods used for fugitive emissions monitoring in the NSPS subpart OOOOa to 40 CFR 98.234(a), as approved monitoring methods for subpart W leak surveys. This addition facilitates alignment with the NSPS subpart OOOOa and will allow reporters to directly use the NSPS subpart OOOOa monitoring results to count the number of leaks under subpart W. Finally, as noted in section II.C.1 of this preamble, the EPA is not adding any other monitoring methods to subpart W at this time, so it is not necessary to consider a different leak definition for new or emerging technologies. The EPA disagrees that using a leak definition other than 10,000 ppmv would undermine the quality of the data reported to the GHGRP. First, subpart W currently includes an OGI monitoring method in 40 CFR 98.234(a)(1). While this monitoring method allows facilities to screen the observed leaks using Method 21, it does not require it, and we do not expect that many reporters actively use dual monitoring methods in their leak surveys to screen all OGIdetected leaks using Method 21. Second, we are also finalizing, consistent with the final NSPS subpart OOOOa rule, the ability to use Method 21 with a leak definition of 500 ppmv as an alternative to the OGI method. We agree with commenters that the average emissions rate of leaks identified using Method 21 with a leak definition of 500 ppmv would be less than the average emissions rate of leaks identified using Method 21 with a leak definition of PO 00000 Frm 00012 Fmt 4701 Sfmt 4700 10,000 ppmv. To address this issue, we are also finalizing separate leaker factors that are appropriate for reporters using this alternative method (Method 21 with a leak definition of 500 ppmv). As described in further detail in section II.E.1 of this preamble and in the document ‘‘Greenhouse Gas Reporting Rule: Technical Support for Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems Final Rule’’ in Docket ID No. EPA–HQ– OAR–2015–0764, these additional emission factors were developed from the same data set that was used to develop the original population emission factors and the proposed leaker factors.17 Therefore, this additional Method 21 monitoring method, which includes a different leak definition than the other Method 21based method already available in subpart W at 40 CFR 98.234(a)(2), has been specifically considered and new emission factors are provided in the final rule to ensure that this new monitoring method’s leak definition will not undermine the quality of the emissions reported under subpart W. If the EPA did not provide the ability for reporters to use the monitoring methods required by the NSPS subpart OOOOa within subpart W, reporters would not be able to use the NSPS subpart OOOOa monitoring results directly; instead, they would have to measure each occurrence of fugitive emissions individually to determine if it is a leak for purposes of subpart W, which would increase the burden for those reporters. D. Summary of Final Amendments for Components To Be Surveyed 1. Summary of Final Amendments The EPA proposed to align the subpart W equipment components with the NSPS subpart OOOOa definition of ‘‘fugitive emissions component,’’ with certain exceptions.18 After careful consideration of comments, the EPA is finalizing that provision consistent with the final NSPS subpart OOOOa definition of ‘‘fugitive emissions component’’ with certain exceptions consistent with the proposal, as described in further detail in this section below. A ‘‘fugitive emissions component’’ is defined in 40 CFR 60.5430a of the final NSPS subpart 17 This data set was developed from monitoring conducted using Method 21 with a leak definition of 10,000 ppmv. 18 See 81 FR 4994 for a discussion of the differences between the proposed definition of ‘‘fugitive emissions component’’ and the proposed components subject to equipment leak reporting in subpart W. E:\FR\FM\30NOR3.SGM 30NOR3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations OOOOa to include any component that has the potential to emit fugitive emissions of CH4 or volatile organic compounds at a well site or compressor station, including but not limited to valves, connectors, pressure relief devices, open-ended lines, flanges, covers and closed vent systems not subject to 40 CFR 60.5411a, thief hatches or other openings on a controlled storage vessel not subject to 40 CFR 60.5395a, compressors, instruments, and meters. Devices that vent as part of normal operations, such as natural gas-driven pneumatic controllers or natural gas-driven pumps, are not fugitive emissions components, as the natural gas discharged from the device’s vent is not considered a fugitive emission. Emissions originating from a location other than the vent are considered fugitive emissions. As noted in the preamble to the proposed subpart W amendments, some of the components listed in the NSPS subpart OOOOa definition of fugitive emissions component are already included as part of the subpart W equipment leaks calculation methodologies (either based on equipment leak surveys or on population counts), while other fugitive emissions components are specifically addressed in other calculation methodologies in subpart W. As part of developing the proposed amendments for subpart W, we compared the list of components in the NSPS subpart OOOOa proposed definition of fugitive emissions component with the current 86501 methodologies in subpart W to identify which fugitive emissions components were already covered by an existing requirement in subpart W and which fugitive emissions components would be specifically covered in subpart W when using the OGI method as specified in the proposed NSPS subpart OOOOa. Table 3 of this preamble provides a summary of the applicable subpart W calculation methodologies for components subject to the fugitive emissions standards in the final NSPS subpart OOOOa. The basis for excluding certain components that are subject to the fugitive emissions standards in the final NSPS subpart OOOOa from the final equipment leak survey requirements in 40 CFR 98.233(q) is discussed below. TABLE 3—FINAL SUBPART W CALCULATION METHODOLOGY REQUIREMENTS FOR COMPONENTS SUBJECT TO THE FUGITIVE EMISSIONS STANDARDS IN NSPS SUBPART OOOOa Type of component in definition of fugitive emissions component and subject to the fugitive emissions standards in NSPS subpart OOOOa Applicable GHG emissions calculation methodology in subpart W by industry segment for components that are also subject to the fugitive emissions standards for well sites or compressor stations in the NSPS subpart OOOOaa Onshore petroleum and natural gas production, onshore petroleum and natural gas gathering and boosting Underground natural gas storage, LNG storage, LNG import and export equipment Onshore natural gas transmission compression Thief hatches or other openings on controlled storage vessels not subject to 40 CFR 60.5395a. • 40 CFR 98.233(j) ...................... • 40 CFR 98.233(k). Compressors, excluding emissions from vents that are part of normal operations (i.e., wet seal oil degassing vents). • 40 CFR 98.233(q) for blowdown valve leakage and isolation valve leakage (use factor for ‘‘open-ended line’’ in Table W– 1E to subpart W) b. • 40 CFR 98.233(q) for all other leaks from the housing (use factor for ‘‘other’’ components in Table W–1E to subpart W) b. • 40 CFR 98.233(p)(10) for rod packing venting from reciprocating compressors. All other components ..................... • 40 CFR 98.233(q) (use factors for applicable component types in Table W–1E to subpart W) b. • 40 CFR 98.233(q) (use factor for ‘‘other’’ components in Tables W–4A, W–5A, and W–6A to subpart W) b. • 40 CFR 98.233(o) for blowdown valve leakage and isolation valve leakage from centrifugal compressors. • 40 CFR 98.233(p) for blowdown valve leakage, isolation valve leakage, and rod packing venting from reciprocating compressors. • 40 CFR 98.233(q) for all other leaks from the housing (use factor for ‘‘other’’ components in Table W–4A, W–5A, and W–6A to subpart W) b. • 40 CFR 98.233(q) (use factors for applicable component types in Tables W–4A, W–5A, and W–6A to subpart W) c. • 40 CFR 98.233(o) for blowdown valve leakage and isolation valve leakage from centrifugal compressors • 40 CFR 98.233(p) for blowdown valve leakage, isolation valve leakage, and rod packing venting from reciprocating compressors • 40 CFR 98.233(q) for all other leaks from the housing (use factor for ‘‘other’’ components in Tables W–3A, to subpart W) b • 40 CFR 98.233(q) (use factors for applicable component types in Table W–3A to subpart W) c. sradovich on DSK3GMQ082PROD with RULES3 a Onshore Natural Gas Processing and Natural Gas Distribution are not included in this table because we are not revising the calculation methodology and monitoring method for leak detection for these industry segments in this action. The current requirements are still applicable to components in these industry segments. b The leaker emission factors for ‘‘other’’ components are being finalized in this revision. c The leaker emission factors include both factors in the current rule and factors that are being finalized in this action, depending on the specific component and the monitoring method used to conduct the survey, as discussed in section II.E.1 of this preamble. At proposal, we determined that the subpart W calculation methodology for storage tanks in 40 CFR 98.233(j) already includes emissions from thief hatches or other openings on storage vessels in the Onshore Petroleum and Natural Gas Production and Onshore Petroleum and Natural Gas Gathering and Boosting industry segments. However, we requested comment on VerDate Sep<11>2014 19:20 Nov 29, 2016 Jkt 241001 whether the agency should consider separate approaches for controlled storage tanks and uncontrolled storage tanks. The final definition of ‘‘fugitive emissions component’’ in the NSPS subpart OOOOa (40 CFR 60.5430a) includes only thief hatches or other openings on a controlled storage vessel; it does not specifically list openings on uncontrolled storage vessels. We PO 00000 Frm 00013 Fmt 4701 Sfmt 4700 reviewed the subpart W calculation methodology specifically for storage tanks with a vapor recovery system (40 CFR 98.233(j)(4)) and storage tanks with a flare (40 CFR 98.233(j)(5)). The procedure for determining emissions from a tank with a vapor recovery system instructs reporters to adjust the storage tank emissions downward by the magnitude of emissions recovered using E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 86502 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations a vapor recovery system as determined by engineering estimate based on best available data (40 CFR 98.233(j)(4)(i)). The procedure for determining emissions from a tank with a flare references 40 CFR 98.233(n), which instructs reporters to use engineering calculations based on process knowledge, company records, and best available data to determine the flow to the flare if the flare does not have a continuous flow measurement device. If a reporter sees fugitive emissions from a thief hatch or other opening on a controlled storage vessel during an equipment leak survey conducted using OGI, the reporter should consider that information as part of the ‘‘best available data’’ used to calculate emissions from that storage tank. Therefore, we have concluded that emissions from thief hatches or other openings on storage vessels in the Onshore Petroleum and Natural Gas Production and Onshore Petroleum and Natural Gas Gathering and Boosting industry segments are already included in the subpart W storage tank emission calculations in 40 CFR 98.233(j) and are finalizing, consistent with the proposal, that they are not to be considered when determining emissions from equipment leaks for purposes of subpart W. We are also finalizing as proposed the exclusion of thief hatches and other openings on transmission storage tanks from the equipment leak reporting requirements.19 We note that, for purposes of subpart W reporting, a leaking thief hatch or other opening is functionally a secondary vent, and thus subject to annual screening on an uncontrolled tank according to 40 CFR 98.233(k)(1). If screening shows vapors from the thief hatch or opening are continuous for 5 minutes, then a method in 40 CFR 98.233(k)(2) must be used to quantify the leak rate, and this amount must be combined with any other vent leak rates for reporting. We are also finalizing the proposed distinction between equipment leak emissions and compressor emissions. Specifically, for centrifugal compressors, emission sources include wet seal oil degassing vents (for centrifugal compressors with wet seals), blowdown valve leakage, and isolation valve leakage. For reciprocating compressors, emission sources include reciprocating compressor rod packing vents, blowdown valve leakage, and isolation valve leakage. 19 The exceptions to equipment leak reporting requirements were included in Tables W–1E and W–3 through W–6 of the proposal. The final rule moves these exceptions to 40 CFR 98.232, to increase clarity and reduce confusion while achieving the same purpose and effect. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 For compressors in the Onshore Petroleum and Natural Gas Production and the Onshore Petroleum and Natural Gas Gathering and Boosting industry segments under subpart W, the compressor methodologies only cover emissions from centrifugal compressor wet seal oil degassing vents and from reciprocating compressor rod packing vents. Thus, the EPA is finalizing as proposed, for these industry segments, that blowdown valve leakage and isolation valve leakage are considered equipment leaks (i.e., open-ended lines), and finalizing as proposed that emissions from centrifugal compressor wet seal oil degassing vents and from reciprocating compressor rod packing vents are not considered equipment leaks when using the calculation methodology based on equipment leak surveys in 40 CFR 98.233(q).20 For the Onshore Natural Gas Transmission Compression, Underground Natural Gas Storage, LNG Storage, and LNG Import and Export Equipment segments, subpart W requires reporters to make ‘‘as found’’ or continuous measurements for compressor emission sources, so the reporters will have either direct measurement data or site-specific emission factors by which to calculate emissions from all of the compressor sources listed above (i.e., wet seal oil degassing vents for centrifugal compressors with wet seals, rod packing vents for reciprocating compressors, and blowdown valve leakage and isolation valve leakage for both centrifugal and reciprocating compressors). Therefore, we are finalizing as proposed to exclude these compressor emission sources from the requirements in the calculation methodology based on equipment leak surveys so that reporters do not doublecount emissions from these sources in their GHGRP reports. Finally, as noted in section II.C.1 of this preamble, we are finalizing the proposed determination that for purposes of subpart W, all other fugitive emissions components as defined in the NSPS subpart OOOOa not specifically identified above (e.g., thief hatches or other openings on a controlled storage vessel, compressor sources with explicit calculation methodologies in subpart W) will be considered equipment components when conducting an equipment leak survey using the OGI method as specified in the NSPS 20 40 CFR 98.233(q) specifies which subsections in 40 CFR 98.232 (i.e., which components) must follow the calculation methodology based on equipment leak surveys in 40 CFR 98.233(q), and 40 CFR 98.232 subsections identify exceptions from the list of components for which equipment leak reporting is required. PO 00000 Frm 00014 Fmt 4701 Sfmt 4700 subpart OOOOa or EPA Method 21 with a leak definition of 500 ppmv. In other words, we consider the provision requiring monitoring of fugitive emissions components as defined in the NSPS subpart OOOOa in 40 CFR 60.5397a(e) to be an inherent part of the NSPS subpart OOOOa OGI method and EPA Method 21 with a leak definition of 500 ppmv. Therefore, if a reporter with components not subject to the NSPS subpart OOOOa well site or compressor station fugitive emission requirements elects to use the NSPS subpart OOOOa OGI method or EPA Method 21 with a leak definition of 500 ppmv for purposes of subpart W, they are also electing to survey these additional components. 2. Summary of Comments and Responses Comment: Several commenters stated that the NSPS subpart OOOOa proposed definition of ‘‘fugitive emissions component’’ is too expansive. Because it includes many more emission sources than a more traditional definition of equipment, the commenters asserted that it is inconsistent with current subpart W requirements. The commenters stated that aligning subpart W with the NSPS subpart OOOOa in this respect will complicate the question of which components must be monitored at subpart W facilities and will result in facilities having higher numbers of leaks than they would have if they used any other equipment leak detection method in subpart W. Some commenters stated that even for well sites and compressor station sites subject to the NSPS subpart OOOOa, component types considered to be equipment under subpart W should be consistent with a more traditional definition of equipment. Other commenters requested that equipment under subpart W only include component types for which the EPA can provide specific population factors and leaker emission factors. Response: As noted in section II.D.1 of this preamble, the final definition of ‘‘fugitive emissions component’’ in the NSPS subpart OOOOa (40 CFR 60.5430a) does not list as many explicit individual component types, as originally proposed. The EPA is finalizing, with the exceptions discussed in section II.D.1 of this preamble and consistent with the extent proposed, this alignment with the NSPS subpart OOOOa, so that reporters may directly use the NSPS subpart OOOOa monitoring results to count the number of leaks under subpart W. Reporters using the calculation methodology based on equipment leak surveys for E:\FR\FM\30NOR3.SGM 30NOR3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations components not subject to the NSPS subpart OOOOa may choose which monitoring method to use. If a reporter chooses to use one of the monitoring methods listed in 40 CFR 98.234(a)(1) through (5), that reporter would use the current list of equipment components for the appropriate industry segment in 40 CFR 98.232 (e.g., the list of equipment at 40 CFR 98.232(e)(7) for the Onshore Natural Gas Transmission Compression industry segment). If a reporter chooses to use the OGI method as specified in the NSPS subpart OOOOa or EPA Method 21 with a leak definition of 500 ppmv, the reporter would use both the current list and the newly added list of equipment components for the appropriate industry segment in 40 CFR 98.232, which in conjunction include the NSPS subpart OOOOa definition of ‘‘fugitive emissions component’’ in 40 CFR 60.5430a with the exceptions discussed in section II.D.1 of this preamble (e.g., the list of equipment at 40 CFR 98.232(e)(7) and (8) for the Onshore Natural Gas Transmission Compression industry segment). sradovich on DSK3GMQ082PROD with RULES3 E. Summary of Final Amendments to Leaker Emission Factors and the Calculation Methodology Based on Equipment Leak Surveys 1. Summary of Final Amendments To quantify emissions from leaking equipment components, subpart W includes leaker emission factors for each component type in each industry segment currently required to use the calculation methodology based on equipment leak surveys. In contrast to the population emission factors, which are multiplied by the total facility component counts, leaker emission factors are multiplied by the actual number of leaks for each component type, as identified by the equipment leak survey. These amendments increase the component types that are required or may elect to use the calculation methodology based on equipment leak surveys, including most of the component types currently using the subpart W calculation methodology based on population counts.21 Therefore, new leaker emission factors are being added so that reporters can calculate their GHG emissions for these new component types. Specifically, the EPA proposed to add new sets of leaker emission factors to subpart W for: (1) The Onshore Petroleum and Natural Gas Production 21 The NSPS subpart OOOOa fugitive emission requirements do not apply to fugitive emissions components in the Natural Gas Distribution industry segment. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 industry segment; (2) the Onshore Petroleum and Natural Gas Gathering and Boosting industry segment; (3) storage wellheads in gas service in the Underground Natural Gas Storage industry segment; (4) LNG storage components in gas service in the LNG Storage industry segment; and (5) LNG terminals components in gas service for the LNG Import and Export Equipment industry segment. For industry segments that already include a set of leaker emission factors, the EPA also proposed to expand that set of leaker emission factors to include certain additional components to better align with the definition of fugitive emissions components in the NSPS subpart OOOOa. See the document ‘‘Greenhouse Gas Reporting Rule: Technical Support for Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket Item No. EPA–HQ–OAR–2015–0764–0028, for more information on the development of the proposed leaker emission factors. We are finalizing the leaker emission factors for the Onshore Petroleum and Natural Gas Production and the Onshore Petroleum and Natural Gas Gathering and Boosting industry segments as proposed, with clarifications for flanges and connectors noted below. We are also finalizing the following leaker emission factors as proposed: (1) The leaker emission factors for ‘‘other’’ components in Tables W–3A, W–4A, W–5A, and W–6A to subpart W; (2) the leaker emission factors for storage wellhead equipment in gas service within Table W–4A to subpart W; and (3) the leaker emission factors for equipment in gas service for LNG storage components within Table W–5A to subpart W and for LNG terminal components within Table W–6A to subpart W. We are also finalizing the proposal to expand the existing leaker emission factor for meters to also include instruments in Tables W–3A and W–4A to subpart W for the Onshore Natural Gas Transmission Compression and Underground Natural Gas Storage industry segments, respectively. All but one of the proposed leaker factors for flanges in Tables W–3 through W–6 to subpart W (Tables W–3A, W–4A, W–5A, and W–6A to subpart W in these final amendments) were the same as the leaker factors for connectors; the exception was for flanges in gas service associated with storage wellheads at Underground Natural Gas Storage facilities, which had a proposed leaker factor that differed from the proposed leaker factor for connectors in the same PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 86503 service. Flanges are a type of connector, which means the proposed flange factors that were identical to the existing connector factors were redundant. Therefore, we have not finalized the proposed separate factors for flanges where the factor was the same as the factor for connectors and are finalizing that flanges must use the final connector factor, meaning the effect of the final amendments is the same as the proposal. The separate factors for connectors and flanges for storage wellheads in gas service at Underground Natural Gas Storage facilities are finalized as proposed, but to clarify that the factor for connectors applies only to all types of connectors other than flanges, the component name has been changed from ‘‘connector’’ in the proposal to ‘‘connector (other)’’ in Table W–4A of the final amendments. This change also makes the terminology in Table W–4A consistent with the terminology in Tables W–1A and W–1E, which also specify factors for flanges that differ from the factors for other types of connectors. We are not finalizing the proposed addition of pumps to the leaker factors in Table W–2 for the Onshore Natural Gas Processing industry segment. As described in section II.B.1 of this preamble, we are not taking final action on the Onshore Natural Gas Processing revisions at this time. In addition to finalizing nearly all of the proposed leaker factors, we are also finalizing an additional set of emission factors corresponding to the average emissions rates of components identified using Method 21 with a leak definition of 500 ppmv. The proposed leaker factors were developed based on Method 21 monitoring using a leak definition of 10,000 ppmv and were to be applied by all reporters regardless of the leak survey monitoring method used. As noted in section II.C of this preamble, the final NSPS subpart OOOOa includes an additional alternative that allows reporters to use Method 21 with a leak definition of 500 ppmv. On average, the emissions from a leak identified with a Method 21 reading above 500 ppmv are less than the emissions from a leak identified with a Method 21 reading of 10,000 ppmv or higher. Consequently, the leaker factor (which is the average emissions rate) for leaks identified when using a leak definition of 500 ppmv is smaller than the leaker factor for leaks identified when using a leak definition of 10,000 ppmv. Therefore, in order to use the NSPS subpart OOOOa survey results directly to calculate equipment leak emissions for subpart W when Method 21 with a leak definition of 500 E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 86504 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations ppmv is used, leaker factors were developed consistent with the average emissions rate of a ‘‘leak’’ defined as a measurement reading of 500 ppmv or more using Method 21. We developed these new leaker factors using data from EPA’s Protocol for Equipment Leak Emissions Estimates 22 consistent with the data used to develop the proposed leaker factors for Onshore Petroleum and Natural Gas Production and the Onshore Petroleum and Natural Gas Gathering and Boosting industry segments. See the document ‘‘Greenhouse Gas Reporting Rule: Technical Support for Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems Final Rule’’ in Docket ID No. EPA–HQ– OAR–2015–0764, which provides more information on the development of the final leaker emission factors. The inclusion of leaker factors specific to Method 21 with a leak definition of 500 ppmv is consistent with our proposal to align subpart W calculation methodologies with the monitoring requirements in the NSPS subpart OOOOa. We are also finalizing the proposed amendments to the time variable Tp,z in Equation W–30 to clarify the total time a surveyed component found leaking is assumed to be leaking and operational. The previous language for the definition of the time variable specifically considers a first leak survey and a last leak survey in the year but does not provide specific language with respect to the duration of any ‘‘intermediate’’ survey conducted between the first and last survey. Therefore, the EPA proposed to amend the definition of the time variable to clarify how to determine the duration of a leak if more than two leak surveys are conducted in a year and to instruct reporters to sum the individual durations to determine the total time the component was leaking during the year. The EPA is finalizing this amendment as proposed. The amendments to the time variable Tp,z define each equipment leak survey as covering a unique, nonoverlapping time period and we are clarifying our intent that a leak detected in the first or any intermediate survey is not considered to continue leaking past the date of that specific equipment leak survey. For the last survey conducted in the calendar year, the leak is assumed to continue until the end of the year. For example, if a reporter 22 U.S. Environmental Protection Agency. Protocol for Equipment Leak Emissions Estimates. EPA–453/R–95–017. November 1995. Docket Item No. EPA–HQ–OAR–2009–0927–0043. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 conducts three equipment leak surveys in a calendar year and a particular component is found to be leaking in the first and second surveys but not the third, the total leak duration is the sum of the time from January 1 to the date of the second survey. If a reporter conducts three equipment leak surveys in a calendar year and a particular component is found to be leaking in the first and last surveys but not the second, then the total leak duration is the sum of the time from January 1 to the date of the first survey and the time from the date of the second survey to December 31. See ‘‘Response to Public Comments on Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 0764 for all comments and the EPA’s responses to comments on other aspects of the time variable Tp,z in Equation W– 30. Finally, 40 CFR 98.233(q) includes a provision requiring reporters to conduct one equipment leak survey in a calendar year (which must include ‘‘all component types’’ subject to 40 CFR 98.233(q)) or multiple ‘‘complete’’ equipment leak surveys in a calendar year. In response to comments as part of the 2010 subpart W final rule, the EPA noted that subsequent equipment leak surveys should be ‘‘conducted for an entire facility.’’ 23 The EPA has reviewed how this interpretation could interact with these final amendments for components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and finds that additional clarification is necessary. For example, a facility in the Onshore Petroleum and Natural Gas Production industry segment or the Onshore Petroleum and Natural Gas Gathering and Boosting industry segment may have some components that are subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and some components that are not. In such a case, multiple equipment leak surveys would be conducted for the components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements, to fulfill the requirements of the NSPS subpart OOOOa for those components, that would be consistent 23 U.S. Environmental Protection Agency. Mandatory Greenhouse Gas Reporting Rule Subpart W—Petroleum and Natural Gas: EPA’s Response to Public Comments. November 2010. Docket Item No. EPA–HQ–OAR–2009–0923–3608. Response to Comment Number EPA–HQ–OAR–2009–0923– 1014–9, pp. 1281–1282. PO 00000 Frm 00016 Fmt 4701 Sfmt 4700 with subpart W monitoring methods under these final revisions. However, under the current interpretation of a ‘‘complete’’ survey, it would appear that these reporters would either: (1) Be unable to use the NSPS subpart OOOOa fugitive emissions monitoring results as directed, because they did not survey all components at the facility; or (2) be forced to monitor all components at the facility on the same frequency as the components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements to meet the subpart W requirement to use all additional leak surveys conducted in accordance with NSPS OOOOa. The first interpretation would render these final amendments useless, and the second interpretation would increase the burden beyond the EPA’s intentions, and could also have unintended consequences for the components subject to the NSPS subpart OOOOa (e.g., a subpart W facility with some components subject to the NSPS subpart OOOOa well site fugitive emissions requirements and others subject to the NSPS subpart OOOOa compressor station fugitive emissions requirements could end up being required to monitor the fugitive emissions components at a well site four times a year instead of twice). Therefore, the EPA is clarifying in 40 CFR 98.233(q)(2)(i) that any monitoring conducted pursuant to and in compliance with the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements constitutes a ‘‘complete’’ survey for purposes of subpart W and must be used for subpart W reporting. The EPA is further clarifying that, to meet the requirements of 40 CFR 98.233(q), at least one equipment leak survey must be conducted in a calendar year. 2. Summary of Comments and Responses Comment: Several commenters addressed the EPA’s proposed leaker emission factors. Some of the commenters indicated that the EPA/Gas Research Institute (GRI) data set upon which the proposed factors are based is an older data set and asserted that it may not be representative of operating practices and procedures that have changed significantly over the past 20 years. In addition, the commenters stated that the EPA/GRI data set includes a limited population of measurements, so the proposed leaker emission factors may not account for operational variability on a regional or national level. Some commenters requested that the EPA consider newer studies, including those cited in E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations ‘‘Greenhouse Gas Reporting Rule: Technical Support for Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ (Docket Item No. EPA–HQ–OAR–2015– 0764–0028) either instead of or in combination with the EPA/GRI data set. Several commenters urged the EPA to work with the regulated community to improve the default leaker emission factors in subpart W. One commenter noted that the proposed leaker emission factors may be a viable interim solution but recommended that the EPA analyze more robust data sets consisting of the combined results of all studies for each industry segment and evaluate whether the subpart W leaker emission factors should be revised. Response: As described in the preamble to the proposed rule and the document ‘‘Greenhouse Gas Reporting Rule: Technical Support for Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems Final Rule’’ (Docket ID No. EPA–HQ– OAR–2015–0764), the EPA has determined that the EPA/GRI data set is appropriate to base leaker emission factors in these subpart W amendments. We note that the EPA/GRI data set provides sufficient data to develop leaker emission factors and that using this data set for the leaker emission factors provides consistency with the population emission factors used by reporters that do not conduct equipment leak surveys. The EPA agrees that there are numerous recent studies that could be used to either replace or supplement the EPA/GRI study data, and many of these are described in the technical support document. The EPA evaluated these other studies and found that the leaker emission factors determined from these data sets agreed reasonably well with the leaker emission factors developed from the EPA/GRI data set, suggesting that the EPA/GRI leaker emission factors are still valid. Commenters that supported a different basis for the leaker emission factors than the EPA/GRI data set did not provide specific information explaining why another study would be a better basis or address any of the specific considerations listed above, although the comments received suggest that stakeholders are interested in further involvement in the assessment of the available data. Therefore, for the reasons stated in the preamble to the proposed rule and the document ‘‘Greenhouse Gas Reporting Rule: Technical Support for Leak Detection Methodology Revisions and Confidentiality Determinations for VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 Petroleum and Natural Gas Systems Final Rule’’ in Docket ID No. EPA–HQ– OAR–2015–0764, the EPA is finalizing the leaker emission factors as proposed. The EPA appreciates the commenters’ interest in providing a thorough review of the available study data to develop an accurate set of leaker emission factors. The EPA is committed to working with stakeholders to ensure that GHGRP requirements and calculation methods are based upon the most robust data available. If the EPA determines that revisions to the subpart W leaker emission factors are appropriate in the future based on additional information, we anticipate that we will propose to amend the rule accordingly. Comment: Numerous commenters stated that reporters should be allowed to use site-specific leak quantification data if available, either directly for each individual leak (i.e., direct measurement data) or to develop their own leaker emission factors on a facility-specific, company-specific, or product-specific basis. Most of these commenters supported the EPA’s proposal to include default leaker emission factors, but stated that reporters should not be limited to using them if the facility has more accurate, site-specific information. Some commenters further noted that the site-specific data reported to the GHGRP could be used to improve the default leaker emission factors in the future. One commenter also requested that the EPA require quantification of any leak that a reporter elects not to repair. Response: The EPA did not propose and, after review and consideration of comments, is not finalizing provisions allowing reporters to use site-specific information to calculate equipment leak emissions for subpart W. While we agree that direct measurement has the potential to provide more accurate emissions data than using emission factors, we would need to develop criteria and guidelines for using direct measurement data consistently across subpart W reporters for calculating equipment leak emissions. Similarly, we agree that using site-specific emission factors can provide more accurate emissions data than using default emission factors, but a robust set of requirements would be needed for reporters to use when developing their own emission factors to ensure that those factors are as unbiased and representative as possible. In addition, if reporters are using direct measurement or their own emission factors, we would most likely need to amend the reporting requirements (e.g., to require reporters to provide site-specific emission factors), and we would need to consider whether any other amendments would PO 00000 Frm 00017 Fmt 4701 Sfmt 4700 86505 be needed to enable us to review and verify reported data. In either of these cases, we would provide the opportunity for the public to comment on those amended requirements before finalizing them within subpart W. F. Summary of Final Amendments to Reporting Requirements 1. Summary of Final Amendments The EPA is finalizing largely as proposed the new reporting requirements for facilities conducting equipment leak surveys under subpart W. Reporters in the Onshore Petroleum and Natural Gas Production and the Onshore Petroleum and Natural Gas Gathering and Boosting industry segments, reporters with storage wellheads in the Underground Natural Gas Storage industry segment, and reporters with components in gas service in the LNG Storage and LNG Import and Export Equipment industry segments that begin using the calculation methodology based on equipment leak surveys must report the information currently listed in 40 CFR 98.236(q)(1) and (2), which includes the number of equipment leak surveys, component types, number of leaking components, average time the components were assumed to be leaking, and annual CO2 and CH4 emissions. Facilities that conduct surveys using the new monitoring methods in 40 CFR 98.234(a)(6) or (7) must also report the data elements in 40 CFR 98.236(q)(2) for additional component types specified in 40 CFR 98.232. Reporters may elect to report the data elements in 40 CFR 98.236(q)(2) for the additional component types if they conduct surveys using a monitoring method in 40 CFR 98.234(a)(1) through (5). The data elements in 40 CFR 98.236(q)(1) and (2) are already required to be reported by facilities conducting equipment leak surveys in the Onshore Natural Gas Transmission Compression, Underground Natural Gas Storage (storage stations), and LNG Storage and LNG Import and Export Equipment (components in LNG service) industry segments. However, facilities in those segments conducting equipment leak surveys using the new OGI method or Method 21, as specified in the NSPS subpart OOOOa (finalized in subpart W as 40 CFR 98.234(a)(6) or (7)), must begin reporting the data elements in 40 CFR 98.236(q)(2) for component types with the new leaker emission factors, including component types that are not currently subject to reporting. Facilities conducting equipment leak surveys using a monitoring method in 40 CFR E:\FR\FM\30NOR3.SGM 30NOR3 86506 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES3 98.234(a)(1) through (5) may elect to begin reporting the data elements in 40 CFR 98.236(q)(2) for other components that are not currently subject to reporting. In addition, the EPA is finalizing as proposed three new reporting requirements for facilities conducting equipment leak surveys in all of the above segments as well as the Onshore Natural Gas Processing and Natural Gas Distribution segments. First, facilities in those segments will be required to report the monitoring method(s) in 40 CFR 98.234(a) used to conduct the survey(s). Second, facilities in the above segments except for Onshore Natural Gas Processing and Natural Gas Distribution will be required to indicate whether any of their component types are subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements. Finally, facilities with components for which the calculation methodology based on equipment leak surveys is optional (e.g., facilities in the Onshore Petroleum and Natural Gas Production segment) will be required to indicate whether they elected to use the calculation methodology based on equipment leak surveys for any of their component types at the facility. Additionally, in reviewing specific reporting requirements while responding to public comments, we recognized that the reporting requirements at 40 CFR 98.236(r)(3)(ii) were unclear, and could be misinterpreted with respect to how this reporting element relates to the calculated emissions. Therefore, we are revising 40 CFR 98.236(r)(3)(ii) by adding the phrase ‘‘. . . for which equipment leak emissions are calculated using the methodology in § 98.233(r)’’ to clarify our original intent that the major equipment counts reported under this requirement are specific to equipment for which emissions are calculated using the population count methodology. 2. Summary of Comments and Responses Comment: Two commenters addressed the proposed requirement in 40 CFR 98.236(q)(1)(iii) to indicate whether any component types at a facility are subject to the NSPS subpart OOOOa. One commenter opposed the addition, stating that it is overly burdensome to require reporters to delineate reporting of emission sources subject to the NSPS subpart OOOOa, especially if this is intended to be a numeric response regarding the number of individual components subject to the NSPS subpart OOOOa. Another VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 commenter asserted that it is not clear if the response to proposed 40 CFR 98.236(q)(1)(iii) is a single yes or no for each facility or if the EPA will be expecting a yes or no response for each component type. Response: In the final rule, the EPA has revised the proposed requirement in 40 CFR 98.236(q)(1)(iii) (indicate whether any component types are subject to the NSPS subpart OOOOa) to be clear that the EPA expects only one yes or no response for an entire facility. While the EPA understands that the number of leaking components and equipment leak emissions may increase as the number of components subject to the NSPS subpart OOOOa increases, this response will allow the EPA to provide transparent data related to changes in emissions for facilities with components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements over time. This data element will also support verification that the appropriate GHGRP monitoring method was used by the facility. III. Confidentiality Determinations A. Summary of Final Confidentiality Determinations for New Subpart W Data Elements As noted in the proposed rule, we are applying the same approach as previously used for making confidentiality determinations for data elements reported under the GHGRP. In the ‘‘Confidentiality Determinations for Data Required Under the Mandatory Greenhouse Gas Reporting Rule and Amendments to Special Rules Governing Certain Information Obtained Under the Clean Air Act’’ (hereafter referred to as ‘‘2011 Final CBI Rulemaking’’) (76 FR 30782, May 26, 2011), the EPA grouped part 98 data elements for which EPA was determining confidentiality status through that rulemaking into 22 data categories (11 direct emitter data categories and 11 supplier data categories) with each of the 22 data categories containing data elements that are similar in type or characteristics. The EPA then made categorical confidentiality determinations for eight direct emitter data categories and eight supplier data categories and applied the categorical confidentiality determination to all data elements assigned to the category. Of these data categories with categorical determinations, the EPA determined that four direct emitter data categories are comprised of those data elements that meet the definition of ‘‘emission data,’’ as defined at 40 CFR 2.301(a), PO 00000 Frm 00018 Fmt 4701 Sfmt 4700 and are, therefore, not entitled to confidential treatment under section 114(c) of the CAA.24 The EPA determined that the other four direct emitter data categories and the eight supplier data categories do not meet the definition of ‘‘emission data.’’ For these data categories that are determined not to be emission data, the EPA determined categorically that data in three direct emitter data categories and five supplier data categories are eligible for confidential treatment as CBI, and that the data in one direct emitter data category and three supplier data categories are ineligible for confidential treatment as CBI. For two direct emitter data categories, ‘‘Unit/Process ‘Static’ Characteristics that Are Not Inputs to Emission Equations’’ and ‘‘Unit/Process Operating Characteristics that Are Not Inputs to Emission Equations,’’ and three supplier data categories, ‘‘GHGs Reported,’’ ‘‘Production/Throughput Quantities and Composition,’’ and ‘‘Unit/Process Operating Characteristics,’’ the EPA determined in the 2011 Final CBI Rulemaking that the data elements assigned to those categories are not emission data, but the EPA did not make categorical CBI determinations for them. Rather, the EPA made CBI determinations for each individual data element included in those categories on a case-by-case basis taking into consideration the criteria in 40 CFR 2.208. The EPA did not make a final confidentiality determination for data elements assigned to the inputs to emission equation data category (a direct emitter data category) in the 2011 Final CBI Rulemaking. However, the EPA has since proposed and finalized an approach for addressing disclosure concerns associated with inputs to emissions equations.25 In the proposed rule, we assigned the nine proposed new or substantially revised data elements to the appropriate direct emitter data categories created in the 2011 Final CBI Rulemaking based on the type and characteristics of each data element. For the seven data elements the EPA assigned to a direct emitter category with a categorical determination, the EPA proposed that the categorical determination for the category be applied to the proposed new or substantially revised data elements, 24 Direct emitter data categories that meet the definition of ‘‘emission data’’ in 40 CFR 2.301(a) are ‘‘Facility and Unit Identifier Information,’’ ‘‘Emissions,’’ ‘‘Calculation Methodology and Methodological Tier,’’ and ‘‘Data Elements Reported for Periods of Missing Data that are not Inputs to Emission Equations.’’ 25 Revisions to Reporting and Recordkeeping Requirements, and Confidentiality Determinations Under the Greenhouse Gas Reporting Program; Final Rule. (79 FR 63750, October 24, 2014). E:\FR\FM\30NOR3.SGM 30NOR3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations used for data elements previously assigned to these two data categories, as shown in Table 5 of this preamble. Refer to the preamble to the proposed rule (81 FR 4987; January 29, 2016) for additional information regarding the proposed confidentiality determinations. as shown in Table 4 of this preamble. For the two data elements assigned to the ‘‘Unit/Process Operating Characteristics that Are Not Inputs to Emission Equations,’’ we proposed confidentiality determinations on a case-by-case basis taking into consideration the criteria in 40 CFR 2.208, consistent with the approach 86507 With consideration of the information provided by commenters, the EPA is finalizing the confidentiality determinations as proposed. Specifically, the EPA is finalizing the proposed determination for each of the nine new or substantially revised data elements to be designated as ‘‘emission data’’ or ‘‘not CBI.’’ TABLE 4—FINAL DATA CATEGORY ASSIGNMENTS AND CONFIDENTIALITY DETERMINATIONS FOR NEW DATA ELEMENTS ASSIGNED TO CATEGORIES WITH CATEGORICAL DETERMINATIONS Citation Data element Final category assignment Categorical determination (as established in 2011) 26 § 98.236(q)(1)(i) ................... The number of complete equipment leak surveys performed during the calendar year. Whether any component types were subject to 40 CFR part 60, subpart OOOOa. Whether you elected to comply with § 98.233(q) per § 98.233(q)(1)(iii). Each type of method described in § 98.234(a) that was used to conduct leak surveys. For each component type that is located at your facility, component type. For each component type that is located at your facility, annual CO2 emissions, in metric tons CO2. For each component type that is located at your facility, annual CH4 emissions, in metric tons CH4. Test and Calibration Methods. Facility and Unit Identifier Information. Facility and Unit Identifier Information. Test and Calibration Methods. Facility and Unit Identifier Information. Emissions .......................... Not Emission Data and Not CBI. Emission Data. Emissions .......................... Emission Data. § 98.236(q)(1)(iii) .................. § 98.236(q)(1)(iv) ................. § 98.236(q)(1)(v) .................. § 98.236(q)(2)(i) ................... § 98.236(q)(2)(iv) ................. § 98.236(q)(2)(v) .................. Emission Data. Not Emission Data and Not CBI. Emission Data. Emission Data. TABLE 5—FINAL CONFIDENTIALITY FOR DATA ELEMENTS ASSIGNED TO THE ‘‘UNIT/PROCESS OPERATING CHARACTERISTICS THAT ARE NOT INPUTS TO EMISSION EQUATIONS’’ DATA CATEGORY Data element Final confidentiality determination and rationale § 98.236(q)(2)(ii) ................... For each component type that is located at your facility, total number of the surveyed component type that were identified as leaking in the calendar year (‘‘xp’’ in Equation W–30). § 98.236(q)(2)(iii) .................. sradovich on DSK3GMQ082PROD with RULES3 Citation For each component type that is located at your facility, average time the surveyed components are assumed to be leaking and operational, in hours (average of ‘‘Tp,z’’ from Equation W–30). Not Emission Data (Categorical Determination as Established in 2011). Not CBI. The term ‘‘equipment leaks’’ refers to those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally-equivalent opening. Leaking components at a facility may have a correlation to the level of maintenance at a facility. However, there is no direct correlation between the level of maintenance and process efficiency, i.e., a higher number of leaks in one facility do not indicate that the processes have been running longer or more frequently than those processes at another facility that has a lower number of leaks. Furthermore, Department of Transportation (DOT) regulations require natural gas distribution companies and transmission pipeline companies to conduct periodic leak detection and fix any leaking equipment. The number of leaks detected and fixed is reported to the DOT and is publicly available. Finally, 40 CFR part 60, subpart OOOOa requires reporting for each component with visible emissions at affected well sites and compressor station sites. The EPA is finalizing that this data element is not confidential; and that it will be considered ‘‘not CBI.’’ Not Emission Data (Categorical Determination as Established in 2011). Not CBI. This data element will provide information on the amount of time operational components were found to be leaking. This information provides little insight into maintenance practices at a facility because it does not identify the cause of the leaks or the nature and cost of repairs. Therefore, this information would not be likely to cause substantial competitive harm to reporters. For this reason, we are finalizing the average time operational components were found leaking be designated as ‘‘not CBI.’’ B. Summary of Comments and Responses This section summarizes the major comments and responses related to the proposed categorical assignments and confidentiality determinations. See ‘‘Response to Public Comments on Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 26 The categorical confidentiality determinations for the data categories listed in this table were finalized on May 26, 2011 (see 76 FR 30782). VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 PO 00000 Frm 00019 Fmt 4701 Sfmt 4700 E:\FR\FM\30NOR3.SGM 30NOR3 86508 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations 0764 for a complete listing of all comments and responses. See the memorandum ‘‘Final Data Category Assignments and Confidentiality Determinations for Data Elements in the ‘Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems; Final Rule’ ’’ in Docket ID No. EPA–HQ– OAR–2015–0764 for a complete listing of final data category assignments and confidentiality determinations. Comment: One commenter stated that the EPA should reconsider the proposed determination of ‘‘not CBI’’ for the number of components identified as leaking in a calendar year and the average time the surveyed components are assumed to be leaking. The commenter asserted that designating this information as CBI would encourage more reporters to voluntarily conduct leak surveys. The commenter also noted that this information is publically available for some sources and suggested that the rule provide an exception from classification as CBI for components subject to State programs or NSPS that already require public disclosure. Another commenter requested that the EPA protect the community’s right to know and not allow companies to keep the public from finding out about leaks from hydrocarbon facilities. Response: While it is possible that the requirement to report the number of leaking components and the average time those components were leaking could discourage some reporters from conducting voluntary equipment leak surveys, this is not a valid reason to allow reporters to claim these data elements as confidential. As noted in section III.C of the preamble to the proposed rule, the EPA proposed that disclosure of these data elements is unlikely to cause substantial harm to a business’s competitive position, and the commenter did not indicate that the EPA’s determination was incorrect. Therefore, the EPA is finalizing the confidentiality determinations for these data elements as ‘‘not CBI.’’ sradovich on DSK3GMQ082PROD with RULES3 IV. Impacts of the Final Amendments to Subpart W A. Impacts of the Final Amendments The final amendments to subpart W revise costs associated with the use of the monitoring methods and the calculation methodology based on equipment leak surveys for reporters in the following industry segments: Onshore Petroleum and Natural Gas Production, Onshore Petroleum and Natural Gas Gathering and Boosting, VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 Onshore Natural Gas Transmission Compression, Underground Natural Gas Storage, LNG Storage, and LNG Import and Export Equipment. Reporters in these industry segments are required to use the results of fugitive emissions component monitoring required for well sites and compressor stations under the NSPS subpart OOOOa. Reporters in these segments with components not subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and for which they are currently required to use the calculation methodology based on population counts under subpart W may voluntarily use the calculation methodology based on equipment leak surveys for those components if the equipment leak survey is conducted following a monitoring method listed in subpart W. The EPA received comments from one commenter regarding the specific impacts of the proposed amendments. After evaluating these comments and reviewing other changes from proposal, the EPA revised the impacts assessment from proposal. The EPA estimates that the costs of the final amendments to subpart W are slightly more burdensome than we estimated at proposal, but they do not significantly change the overall burden to subpart W reporters. The EPA estimated that the additional costs to subpart W reporters in the Onshore Petroleum and Natural Gas Production and the Onshore Petroleum and Natural Gas Gathering and Boosting industry segments to transition their existing equipment leak recordkeeping, calculating, and reporting systems to use the calculation methodology based on equipment leak surveys and to determine which components are subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and which are not, will be approximately $110,000 per year, or about $410 per reporter. The EPA estimated that the additional costs for subpart W reporters in the other industry segments (i.e., Onshore Natural Gas Transmission Compression, Underground Natural Gas Storage, Liquefied Natural Gas (LNG) Storage, and LNG Import and Export Equipment) to add a few new emission factors to their existing systems (rather than transitioning their recordkeeping, calculating, and reporting systems) and to determine which components are covered by the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and which are not, will be approximately $20,000 per year or about $110 per reporter. The total costs are approximately $128,400 PO 00000 Frm 00020 Fmt 4701 Sfmt 4700 per year for all reporters, or about $286 per reporter. See the memorandum, ‘‘Assessment of Impacts of the Final Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 0764 for additional information. B. Summary of Comments and Responses This section summarizes the major comments and responses related to the impacts of the proposed amendments to subpart W of part 98. We note that while several commenters asserted that the proposed rule would be burdensome for many operators and suggested revisions to the rule requirements that would reduce the burden, only one commenter provided comments on the EPA’s impacts estimate and supporting statement, and that commenter’s major comments are summarized in this section. See ‘‘Response to Public Comments on Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 0764 for a complete listing of all comments and responses. Comment: One commenter stated that the EPA’s estimate of two hours of labor and $198 per reporter significantly underestimates and misrepresents the amount of time and effort that goes into implementing a new rule. The commenter provided a cost estimate that assumes more labor hours than in the EPA’s memorandum ‘‘Assessment of Impacts of the Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ (Docket Item No. EPA–HQ–OAR–2015– 0764–0025). The commenter noted that as more sites become subject to the NSPS subpart OOOOa at a facility, the costs of managing the data and processing it into a usable format for the GHGRP will increase each year for that reporter. The commenter also noted that the EPA was incorrect in assuming that there would be no costs for facilities in the Onshore Natural Gas Processing segment. Response: The EPA has evaluated the comments and has made changes to the estimate of burden in the supporting statement. The following paragraphs address each of the points in the commenter’s detailed cost estimate included with the comment letter and explain how the points are being addressed in the final burden and cost estimate. E:\FR\FM\30NOR3.SGM 30NOR3 sradovich on DSK3GMQ082PROD with RULES3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations The commenter suggested adding burden of two hours in the first year related to the initial monitoring plan development and burden of 0.5 hours in subsequent years related to yearly monitoring plan revisions. The EPA did not include costs at proposal related to the monitoring plan because the subpart W amendments do not require the development of a separate monitoring plan. Instead, the subpart W amendments cross reference the monitoring plan that is already being developed according to the NSPS subpart OOOOa. The EPA recognizes that reporters that are not subject to the NSPS subpart OOOOa would not already be required to develop a monitoring plan under the NSPS subpart OOOOa; however, reporters that elect to use one of the new leak detection methods are also electing to incur the burden of developing a monitoring plan. Therefore, there is no monitoring plan burden associated with the subpart W amendments and the final burden and cost estimate has not changed from proposal as a result of this comment. The commenter suggested changing the number of hours to revise the reporting system to five hours and to allow one hour for maintenance in each subsequent year. At proposal, the EPA estimated that revising the reporting system to use the calculation methodology based on equipment leak surveys would require two hours. The commenter did not provide the basis for their estimate of five hours to update the data management system. The overall reporting costs for compliance already include a burden of ten hours per year and the EPA disagrees that updating the data management system would encompass half of that allotment because EPA anticipates that reporters would only need to add a few emission factors for leaking components to their existing system, rather than something more time-intensive such as creating a new data management system. We reviewed the revisions expected to be needed in the data management system. While we maintain that two hours are sufficient to implement the calculation methodology based on equipment leak surveys into a reporter’s existing system, we recognize that this process will also require quality assurance reviews and testing to ensure the data are stored properly and the calculations are performed correctly. Therefore, we increased the number of hours estimated to revise the reporting system from two hours to 3.5 hours to account for these additional quality reviews of the data management system. However, VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 the EPA has made no changes to burden associated with maintenance of the revised reporting system because the EPA asserts that any reporting system maintenance related to subpart W is already reflected in the twenty hours per year allotted to each subpart W reporter for recordkeeping and reporting activities. The commenter suggested that the EPA adjust the proposed burden and cost estimate by adding the following activities and burden estimates: (1) Time for staff to process the survey data resulting from the calculation methodology based on equipment leak surveys and to enter it into the GHGRP system at a burden of three hours per year; (2) time for staff training at a burden of two hours for initial training and one hour per year in subsequent years; and (3) time for staff to review the data for quality assurance, follow missing data requirements, report data to the EPA, and retain all records at a burden of four total hours per year. At proposal, the EPA did not include burden related to these activities because they are covered by the twenty hours per year already accounted for in the overall subpart W reporter burden for recordkeeping and reporting activities. Therefore, the final burden and cost estimate has not changed from proposal as a result of these comments. However, at proposal, the EPA did not account for the time associated with determining which components in the reporting system are covered by the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and which are not. As a result, the EPA has added 0.5 hours per reporter in the first year that the reporter has an affected collection of fugitive emissions components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements and 0.1 hours per reporter in subsequent years. Finally, for the reasons described in section II.B.2 of this preamble, the final rule language specifies that the requirement to use the NSPS subpart OOOOa results as part of the calculation methodology based on equipment leak surveys only applies to components subject to the NSPS subpart OOOOa well site or compressor station fugitive emissions requirements. The subpart W equipment leak survey requirements for facilities in the Onshore Natural Gas Processing segment do not change as a result of these amendments. Therefore, the EPA is not including any burden estimate for Onshore Natural Gas Processing reporters (i.e., the revisions to the burden estimate described in this PO 00000 Frm 00021 Fmt 4701 Sfmt 4700 86509 response do not apply to the Onshore Natural Gas Processing segment). Overall, the burden and cost estimate has been revised as discussed above from 502 hours and $50,000 per year at proposal to approximately 1,295 hours and $128,400 per year for all reporters. V. Statutory and Executive Order Reviews Additional information about these statutes and Executive Orders can be found at https://www2.epa.gov/laws-andexecutive orders. A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review This action is not a significant regulatory action and was therefore not submitted to the Office of Management and Budget (OMB) for review. B. Paperwork Reduction Act (PRA) The information collection activities in this rule have been submitted for approval to the OMB under the PRA. The Information Collection Request (ICR) document that the EPA prepared has been assigned EPA ICR number 2300.19. You can find a copy of the ICR in the docket for this rule, and it is briefly summarized here. The information collection requirements are not enforceable until OMB approves them. This action increases burden for industry segments that conduct equipment leak surveys. These revisions are expected to increase respondent burden for subpart W reporters that become subject to the NSPS subpart OOOOa well site or compressor station fugitive requirements. To accommodate the new methods and emission factors added by these final amendments, the EPA expects that each affected subpart W reporter will either revise their reporter-specific calculation mechanism (i.e., calculation spreadsheet, recordkeeping database, etc.) or add a few new emission factors to the reporter-specific calculation mechanism, when and if the reporter becomes subject to the NSPS subpart OOOOa well site or compressor station fugitive requirements. The recordkeeping and reporting requirements are being finalized as proposed. Impacts associated with the final revisions to the recordkeeping and reporting requirements are detailed in the memorandum ‘‘Assessment of Impacts of the Final Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ E:\FR\FM\30NOR3.SGM 30NOR3 86510 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES3 (see Docket ID No. EPA–HQ–OAR– 2015–0764). Data collection provides a critical tool for communities to identify nearby sources of GHGs and provides information to state and local governments. The data can be used to complement atmospheric GHG studies and inform updates to emission inventories such as the Inventory of U.S. Greenhouse Gas Emissions and Sinks (Inventory). Various activity data are collected that can be used to improve understanding of the occurrence of emissions from a variety of sources. Data collected must be made available to the public unless the data qualify for CBI treatment under the CAA and EPA regulations. All data determined by the EPA to be CBI are safeguarded in accordance with regulations in 40 CFR chapter 1, part 2, subpart B. Respondents/affected entities: The respondents in this information collection include owners and operators of petroleum and natural gas systems facilities that report their GHG emissions from equipment leaks to the EPA to comply with subpart W. Respondent’s obligation to respond: The respondent’s obligation to respond is mandatory under the authority provided in CAA section 114. Estimated number of respondents: Approximately 899 respondents per year. Frequency of response: Annual. Total estimated burden: 1,295 hours (per year). Burden is defined at 5 CFR 1320.3(b). Total estimated cost: $128,400 (per year), includes $0 annualized capital or operation and maintenance costs. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for the EPA’s regulations in 40 CFR are listed in 40 CFR part 9. When OMB approves this ICR, the EPA will announce that approval in the Federal Register and publish a technical amendment to 40 CFR part 9 to display the OMB control number for the approved information collection activities contained in this final rule. C. Regulatory Flexibility Act (RFA) I certify that this action will not have a significant economic impact on a substantial number of small entities under the RFA. The small entities directly regulated by this final rule include small businesses in the petroleum and natural gas industry. The EPA has determined that some small businesses will be affected because their production processes emit GHGs VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 exceeding the reporting threshold. This action includes amendments that may result in a small burden increase on some subpart W reporters, but the EPA has determined that the increased cost of less than $286 per reporter is not a significant impact. Details of this analysis are presented in ‘‘Assessment of Impacts of the Final Leak Detection Methodology Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems’’ in Docket ID No. EPA–HQ–OAR–2015– 0764. D. Unfunded Mandates Reform Act (UMRA) This action does not contain an unfunded mandate of $100 million or more as described in UMRA, 2 U.S.C. 1531–1538, and does not significantly or uniquely affect small governments. As shown in sections IV.A and V.B of this preamble, the annual cost of this action is $128,400, which is well under $100 million per year. E. Executive Order 13132: Federalism This action does not have federalism implications. It will not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments This action has tribal implications. However, it will neither impose substantial direct compliance costs on federally recognized tribal governments, nor preempt tribal law. This regulation will apply directly to petroleum and natural gas facilities that emit GHGs. Although few facilities that will be subject to the rule are likely to be owned by tribal governments, the EPA sought opportunities to provide information to tribal governments and representatives during the development of the proposed and final subpart W that was promulgated on November 30, 2010 (75 FR 74458). The EPA consulted with tribal officials under the EPA Policy on Consultation and Coordination with Indian Tribes early in the process of developing this regulation to permit them to have meaningful and timely input into its development. A summary of that consultation is provided in section IV.F of the preamble to the reproposal of subpart W published on April 12, 2010 (75 FR 18608), and section IV.F of the preamble to the PO 00000 Frm 00022 Fmt 4701 Sfmt 4700 subpart W 2010 final rule published on November 30, 2010 (75 FR 74458). G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks The EPA interprets Executive Order 13045 as applying only to those regulatory actions that concern environmental health or safety risks that the EPA has reason to believe may disproportionately affect children, per the definition of ‘‘covered regulatory action’’ in section 2–202 of the Executive Order. This action is not subject to Executive Order 13045 because it does not concern an environmental health risk or safety risk. H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use This action is not subject to Executive Order 13211, because it is not a significant regulatory action under Executive Order 12866. I. National Technology Transfer and Advancement Act (NTTAA) This rulemaking does not involve technical standards. J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations The EPA believes that this action is not subject to Executive Order 12898 (59 FR 7629, February 16, 1994) because it does not establish an environmental health or safety standard. Instead, this rule addresses information collection and reporting and verification procedures. K. Congressional Review Act (CRA) This action is subject to the CRA, and the EPA will submit a rule report to each House of the Congress and to the Comptroller General of the United States. This action is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). List of Subjects in 40 CFR Part 98 Environmental protection, Administrative practice and procedure, Greenhouse gases, Reporting and recordkeeping requirements. Dated: November 10, 2016. Gina McCarthy, Administrator. For the reasons stated in the preamble, title 40, chapter I, of the Code of Federal Regulations is amended as follows: E:\FR\FM\30NOR3.SGM 30NOR3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations PART 98—MANDATORY GREENHOUSE GAS REPORTING 1. The authority citation for part 98 continues to read as follows: ■ Authority: 42 U.S.C. 7401–7671q. Subpart W—Petroleum and Natural Gas Systems 2. Section 98.232 is amended by: a. Revising paragraph (c)(21); b. Adding paragraph (e)(8); c. Revising paragraph (f)(5); d. Adding paragraphs (f)(6) through (8); ■ e. Revising paragraphs (g)(3) and (4); ■ f. Adding paragraphs (g)(5) through (7); ■ g. Revising paragraphs (h)(4) and (5); ■ h. Adding paragraphs (h)(6) through (8); and ■ i. Revising paragraph (j)(10). The revisions and additions read as follows: ■ ■ ■ ■ ■ § 98.232 GHGs to report. sradovich on DSK3GMQ082PROD with RULES3 * * * * * (c) * * * (21) Equipment leaks from valves, connectors, open ended lines, pressure relief valves, pumps, flanges, and other components (such as instruments, loading arms, stuffing boxes, compressor seals, dump lever arms, and breather caps, but does not include components listed in paragraph (c)(11) or (19) of this section, and it does not include thief hatches or other openings on a storage vessel). * * * * * (e) * * * (8) Equipment leaks from all other components that are not listed in paragraph (e)(1), (2), or (7) of this section and are either subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter or you elect to survey using a leak detection method described in § 98.234(a)(6) or (7). The other components subject to this paragraph (e)(8) also do not include thief hatches or other openings on a storage vessel. If these other components are not subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter, you may also elect to report emissions from these other components if you elect to survey them using a leak detection method described in § 98.234(a)(1) through (5). (f) * * * (5) Equipment leaks from valves, connectors, open ended lines, pressure relief valves, and meters associated with storage stations. (6) Equipment leaks from all other components that are associated with VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 storage stations, are not listed in paragraph (f)(1), (2), or (5) of this section, and are either subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter or you elect to survey using a leak detection method described in § 98.234(a)(6) or (7). If these other components are not subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter, you may also elect to report emissions from these other components if you elect to survey them using a leak detection method described in § 98.234(a)(1) through (5). (7) Equipment leaks from valves, connectors, open-ended lines, and pressure relief valves associated with storage wellheads. (8) Equipment leaks from all other components that are associated with storage wellheads, are not listed in paragraph (f)(1), (2), or (7) of this section, and are either subject to the well site or compressor station fugitive emissions standards in § 60.5397a, of this chapter or you elect to survey using a leak detection method described in § 98.234(a)(6) or (7). If these other components are not subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter, you may also elect to report emissions from these other components if you elect to survey them using a leak detection method described in § 98.234(a)(1) through (5). (g) * * * (3) Flare stack emissions. (4) Equipment leaks from valves, pump seals, connectors, and other equipment leak sources in LNG service. (5) Equipment leaks from vapor recovery compressors, if you do not survey components associated with vapor recovery compressors in accordance with paragraph (g)(6) of this section. (6) Equipment leaks from all components in gas service that are associated with a vapor recovery compressor, are not listed in paragraph (g)(1) or (2) of this section, and that are either subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter or you elect to survey using a leak detection method described in § 98.234(a). (7) Equipment leaks from all components in gas service that are not associated with a vapor recovery compressor, are not listed in paragraph (g)(1) or (2) of this section, and are either subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter or you elect to survey using a leak PO 00000 Frm 00023 Fmt 4701 Sfmt 4700 86511 detection method described in § 98.234(a)(6) or (7). If these components are not subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter, you may also elect to report emissions from these components if you elect to survey them using a leak detection method described in § 98.234(a)(1) through (5). (h) * * * (4) Flare stack emissions. (5) Equipment leaks from valves, pump seals, connectors, and other equipment leak sources in LNG service. (6) Equipment leaks from vapor recovery compressors, if you do not survey components associated with vapor recovery compressors in accordance with paragraph (h)(7) of this section. (7) Equipment leaks from all components in gas service that are associated with a vapor recovery compressor, are not listed in paragraph (h)(1) or (2) of this section, and that are either subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter or you elect to survey using a leak detection method described in § 98.234(a). (8) Equipment leaks from all components in gas service that are not associated with a vapor recovery compressor, are not listed in paragraph (h)(1) or (2) of this section, and that are either subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter or you elect to survey using a leak detection method described in § 98.234(a)(6) or (7). If these components are not subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter, you may also elect to report emissions from these components if you elect to survey them using a leak detection method described in § 98.234(a)(1) through (5). * * * * * (j) * * * (10) Equipment leaks from valves, connectors, open ended lines, pressure relief valves, pumps, flanges, and other components (such as instruments, loading arms, stuffing boxes, compressor seals, dump lever arms, and breather caps, but does not include components in paragraph (j)(8) or (9) of this section, and it does not include thief hatches or other openings on a storage vessel). * * * * * ■ 3. Section 98.233 is amended by: ■ a. Revising the parameter EFt of Equation W–1 in paragraph (a) introductory text, and paragraph (q); E:\FR\FM\30NOR3.SGM 30NOR3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations * * * * (q) Equipment leak surveys. For the components identified in paragraphs (q)(1)(i) through (iii) of this section, you must conduct equipment leak surveys using the leak detection methods specified in paragraphs (q)(1)(i) through (iii) of this section. For the components identified in paragraph (q)(1)(iv) of this section, you may elect to conduct equipment leak surveys, and if you elect to conduct surveys, you must use a leak detection method specified in paragraph (q)(1)(iv) of this section. This paragraph (q) applies to components in streams with gas content greater than 10 percent CH4 plus CO2 by weight. Components in streams with gas content less than or equal to 10 percent CH4 plus CO2 by weight are exempt from the requirements of this paragraph (q) and do not need to be reported. Tubing systems equal to or less than one half inch diameter are exempt from the requirements of this paragraph (q) and do not need to be reported. (1) Survey requirements. (i) For the components listed in § 98.232(e)(7), (f)(5), (g)(4), and (h)(5), that are not subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter, you must conduct surveys using any of the leak detection methods listed in § 98.234(a) and calculate equipment leak emissions using the procedures specified in paragraph (q)(2) of this section. (ii) For the components listed in § 98.232(d)(7) and (i)(1), you must conduct surveys using any of the leak detection methods listed in § 98.234(a)(1) through (5) and calculate equipment leak emissions using the procedures specified in paragraph (q)(2) of this section. (iii) For the components listed in § 98.232(c)(21), (e)(7), (e)(8), (f)(5), (f)(6), (f)(7), (f)(8), (g)(4), (g)(6), (g)(7), (h)(5), (h)(7), (h)(8), and (j)(10) that are subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter, you must conduct surveys using any of the leak detection methods in § 98.234(a)(6) or (7) and calculate equipment leak emissions using the procedures specified in paragraph (q)(2) of this section. (iv) For the components listed in § 98.232(c)(21), (e)(8), (f)(6), (f)(7), (f)(8), (g)(6), (g)(7), (h)(7), (h)(8), or (j)(10), that are not subject to fugitive emissions standards in § 60.5397a of this chapter, you may elect to conduct surveys according to this paragraph (q), and, if you elect to do so, then you must use one of the leak detection methods in § 98.234(a). (A) If you elect to use a leak detection method in § 98.234(a)(1) through (5) for the surveyed component types in § 98.232(c)(21), (f)(7), (g)(6), (h)(7), or (j)(10) in lieu of the population count methodology specified in paragraph (r) of this section, then you must calculate emissions for the surveyed component types in § 98.232(c)(21), (f)(7), (g)(6), Where: Es,p,i = Annual total volumetric emissions of GHGi from specific component type ‘‘p’’ (in accordance with paragraphs (q)(1)(i) through (iv) of this section) in standard (‘‘s’’) cubic feet, as specified in paragraphs (q)(2)(ii) through (x) of this section. xp = Total number of specific component type ‘‘p’’ detected as leaking in any leak survey during the year. A component found leaking in two or more surveys during the year is counted as one leaking component. EFs,p = Leaker emission factor for specific component types listed in Tables W–1E, W–2, W–3A, W–4A, W–5A, W–6A, and W–7 to this subpart. GHGi = For onshore petroleum and natural gas production facilities and onshore b. Removing the first two sentences of paragraph (r) introductory text and adding four sentences in their place; and ■ c. Revising the parameters Counte and EFs,e of Equation W–32A in paragraph (r) introductory text, and paragraphs (r)(3) through (5). The revisions read as follows: ■ § 98.233 Calculating GHG emissions. * * * (a) * * * * * * * * * * EFt = Population emission factors for natural gas pneumatic device vents (in standard cubic feet per hour per device) of each type ‘‘t’’ listed in Tables W–1A, W–3B, and W–4B to this subpart for onshore petroleum and natural gas production, onshore natural gas transmission compression, and underground natural gas storage facilities, respectively. Onshore petroleum and natural gas gathering and boosting facilities must use the population emission factors listed in Table W–1A to this subpart. sradovich on DSK3GMQ082PROD with RULES3 * VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 PO 00000 Frm 00024 Fmt 4701 Sfmt 4700 (h)(7), or (j)(10) using the procedures in paragraph (q)(2) of this section. (B) If you elect to use a leak detection method in § 98.234(a)(1) through (5) for the surveyed component types in § 98.232(e)(8), (f)(6), (f)(8), (g)(7), and (h)(8), then you must use the procedures in paragraph (q)(2) of this section to calculate those emissions. (C) If you elect to use a leak detection method in § 98.234(a)(6) or (7) for any elective survey under this subparagraph (q)(1)(iv), then you must survey the component types in § 98.232(c)(21), (e)(8), (f)(6), (f)(7), (f)(8), (g)(6), (g)(7), (h)(7), (h)(8), and (j)(10) that are not subject to fugitive emissions standards in § 60.5397a of this chapter, and you must calculate emissions from the surveyed component types in § 98.232(c)(21), (e)(8), (f)(6), (f)(7), (f)(8), (g)(6), (g)(7), (h)(7), (h)(8), and (j)(10) using the emission calculation requirements in paragraph (q)(2) of this section. (2) Emission calculation methodology. For industry segments listed in § 98.230(a)(2) through (9), if equipment leaks are detected during surveys required or elected for components listed in paragraphs (q)(1)(i) through (iv) of this section, then you must calculate equipment leak emissions per component type per reporting facility using Equation W–30 of this section and the requirements specified in paragraphs (q)(2)(i) through (xi) of this section. For the industry segment listed in § 98.230(a)(8), the results from Equation W–30 are used to calculate population emission factors on a meter/ regulator run basis using Equation W–31 of this section. If you chose to conduct equipment leak surveys at all above grade transmission-distribution transfer stations over multiple years, ‘‘n,’’ according to paragraph (q)(2)(x)(A) of this section, then you must calculate the emissions from all above grade transmission-distribution transfer stations as specified in paragraph (q)(2)(xi) of this section. petroleum and natural gas gathering and boosting facilities, concentration of GHGi, CH4, or CO2, in produced natural gas as defined in paragraph (u)(2) of this section; for onshore natural gas processing facilities, concentration of GHGi, CH4 or CO2, in the total hydrocarbon of the feed natural gas; for onshore natural gas transmission compression and underground natural E:\FR\FM\30NOR3.SGM 30NOR3 ER30NO16.000</GPH> 86512 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES3 (i) You must conduct at least one leak detection survey in a calendar year. The leak detection surveys selected must be conducted during the calendar year. If you conduct multiple complete leak detection surveys in a calendar year, you must use the results from each complete leak detection survey when calculating emissions using Equation W–30. For components subject to the well site and compressor station fugitive emissions standards in § 60.5397a of this chapter, each survey conducted in accordance with § 60.5397a of this chapter will be considered a complete leak detection survey for purposes of this section. Where: EFs,MR,i = Meter/regulator run population emission factor for GHGi based on all surveyed above grade transmissiondistribution transfer stations over ‘‘n’’ years, in standard cubic feet of GHGi per operational hour of all meter/regulator runs. Es,p,i,y = Annual total volumetric emissions at standard conditions of GHGi from component type ‘‘p’’ during year ‘‘y’’ in standard (‘‘s’’) cubic feet, as calculated using Equation W–30 of this section. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 (ii) Calculate both CO2 and CH4 mass emissions using calculations in paragraph (v) of this section. (iii) Onshore petroleum and natural gas production facilities must use the appropriate default whole gas leaker emission factors for components in gas service, light crude service, and heavy crude service listed in Table W–1E to this subpart. (iv) Onshore petroleum and natural gas gathering and boosting facilities must use the appropriate default whole gas leaker factors for components in gas service listed in Table W–1E to this subpart. (v) Onshore natural gas processing facilities must use the appropriate default total hydrocarbon leaker emission factors for compressor components in gas service and noncompressor components in gas service listed in Table W–2 to this subpart. (vi) Onshore natural gas transmission compression facilities must use the appropriate default total hydrocarbon leaker emission factors for compressor components in gas service and noncompressor components in gas service listed in Table W–3A to this subpart. (vii) Underground natural gas storage facilities must use the appropriate default total hydrocarbon leaker emission factors for storage stations or storage wellheads in gas service listed in Table W–4A to this subpart. (viii) LNG storage facilities must use the appropriate default methane leaker emission factors for LNG storage components in LNG service or gas service listed in Table W–5A to this subpart. (ix) LNG import and export facilities must use the appropriate default methane leaker emission factors for LNG terminals components in LNG service or gas service listed in Table W–6A to this subpart. (x) Natural gas distribution facilities must use Equation W–30 of this section and the default methane leaker emission factors for transmission-distribution transfer station components in gas service listed in Table W–7 to this subpart to calculate component emissions from annual equipment leak surveys conducted at above grade transmission-distribution transfer stations. Natural gas distribution facilities are required to perform equipment leak surveys only at above grade stations that qualify as transmission-distribution transfer stations. Below grade transmissiondistribution transfer stations and all metering-regulating stations that do not meet the definition of transmissiondistribution transfer stations are not required to perform equipment leak surveys under this section. (A) Natural gas distribution facilities may choose to conduct equipment leak surveys at all above grade transmissiondistribution transfer stations over multiple years ‘‘n,’’ not exceeding a five year period to cover all above grade transmission-distribution transfer stations. If the facility chooses to use the multiple year option, then the number of transmission-distribution transfer stations that are monitored in each year should be approximately equal across all years in the cycle. (B) Use Equation W–31 of this section to determine the meter/regulator run population emission factors for each GHGi. As additional survey data become available, you must recalculate the meter/regulator run population emission factors for each GHGi annually according to paragraph (q)(2)(x)(C) of this section. p = Seven component types listed in Table W–7 to this subpart for transmissiondistribution transfer stations. Tw,y = The total time the surveyed meter/ regulator run ‘‘w’’ was operational, in hours during survey year ‘‘y’’ using an engineering estimate based on best available data. CountMR,y = Count of meter/regulator runs surveyed at above grade transmissiondistribution transfer stations in year ‘‘y’’. y = Year of data included in emission factor ‘‘EFs,MR,i’’ according to paragraph (q)(2)(x)(C) of this section. n = Number of years of data, according to paragraph (q)(2)(x)(A) of this section, whose results are used to calculate emission factor ‘‘EFs,MR,i’’ according to paragraph (q)(2)(x)(C) of this section. PO 00000 Frm 00025 Fmt 4701 Sfmt 4700 (C) The emission factor ‘‘EFs,MR,i,’’ based on annual equipment leak surveys at above grade transmission-distribution transfer stations, must be calculated E:\FR\FM\30NOR3.SGM 30NOR3 ER30NO16.001</GPH> gas storage, GHGi equals 0.975 for CH4 and 1.1 × 10¥2 for CO2; for LNG storage and LNG import and export equipment, GHGi equals 1 for CH4 and 0 for CO2; and for natural gas distribution, GHGi equals 1 for CH4 and 1.1 × 10¥2 CO2. Tp,z = The total time the surveyed component ‘‘z,’’ component type ‘‘p,’’ was assumed to be leaking and operational, in hours. If one leak detection survey is conducted in the calendar year, assume the component was leaking for the entire calendar year. If multiple leak detection surveys are conducted in the calendar year, assume a component found leaking in the first survey was leaking since the beginning of the year until the date of the survey; assume a component found leaking in the last survey of the year was leaking from the preceding survey through the end of the year; assume a component found leaking in a survey between the first and last surveys of the year was leaking since the preceding survey until the date of the survey; and sum times for all leaking periods. For each leaking component, account for time the component was not operational (i.e., not operating under pressure) using an engineering estimate based on best available data. 86513 sradovich on DSK3GMQ082PROD with RULES3 86514 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations annually. If you chose to conduct equipment leak surveys at all above grade transmission-distribution transfer stations over multiple years, ‘‘n,’’ according to paragraph (q)(2)(x)(A) of this section and you have submitted a smaller number of annual reports than the duration of the selected cycle period of 5 years or less, then all available data from the current year and previous years must be used in the calculation of the emission factor ‘‘EFs,MR,i’’ from Equation W–31 of this section. After the first survey cycle of ‘‘n’’ years is completed and beginning in calendar year (n+1), the survey will continue on a rolling basis by including the survey results from the current calendar year ‘‘y’’ and survey results from all previous (n¥1) calendar years, such that each annual calculation of the emission factor ‘‘EFs,MR,i’’ from Equation W–31 is based on survey results from ‘‘n’’ years. Upon completion of a cycle, you may elect to change the number of years in the next cycle period (to be 5 years or less). If the number of years in the new cycle is greater than the number of years in the previous cycle, calculate ‘‘EFs,MR,i’’ from Equation W–31 in each year of the new cycle using the survey results from the current calendar year and the survey results from the preceding number years that is equal to the number of years in the previous cycle period. If the number of years, ‘‘nnew,’’ in the new cycle is smaller than the number of years in the previous cycle, ‘‘n,’’ calculate ‘‘EFs,MR,i’’ from Equation W–31 in each year of the new cycle using the survey results from the current calendar year and survey results from all previous (nnew¥1) calendar years. (xi) If you chose to conduct equipment leak surveys at all above grade transmission-distribution transfer stations over multiple years, ‘‘n,’’ according to paragraph (q)(2)(x)(A) of this section, you must use the meter/ regulator run population emission factors calculated using Equation W–31 of this section and the total count of all meter/regulator runs at above grade transmission-distribution transfer stations to calculate emissions from all above grade transmission-distribution transfer stations using Equation W–32B in paragraph (r) of this section. (r) * * * This paragraph (r) applies to emissions sources listed in § 98.232(c)(21), (f)(7), (g)(5), (h)(6), and (j)(10) if you are not required to comply with paragraph (q) of this section and if you do not elect to comply with paragraph (q) of this section for these components in lieu of this paragraph (r). This paragraph (r) also applies to emission sources listed in § 98.232(i)(2), (i)(3), (i)(4), (i)(5), (i)(6), and (j)(11). To VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 be subject to the requirements of this paragraph (r), the listed emissions sources also must contact streams with gas content greater than 10 percent CH plus CO2 by weight. Emissions sources that contact streams with gas content less than or equal to 10 percent CH4 plus CO2 by weight are exempt from the requirements of this paragraph (r) and do not need to be reported. * * * * * * * * Counte = Total number of the emission source type at the facility. For onshore petroleum and natural gas production facilities and onshore petroleum and natural gas gathering and boosting facilities, average component counts are provided by major equipment piece in Tables W–1B and Table W–1C to this subpart. Use average component counts as appropriate for operations in Eastern and Western U.S., according to Table W– 1D to this subpart. Onshore petroleum and natural gas gathering and boosting facilities must also count the miles of gathering pipelines by material type (protected steel, unprotected steel, plastic, or cast iron). Underground natural gas storage facilities must count each component listed in Table W–4B to this subpart. LNG storage facilities must count the number of vapor recovery compressors. LNG import and export facilities must count the number of vapor recovery compressors. Natural gas distribution facilities must count: (1) The number of distribution services by material type; (2) miles of distribution mains by material type; and (3) number of below grade metering-regulating stations, by pressure type; as listed in Table W–7 to this subpart. * * * * * EFs,e = Population emission factor for the specific emission source type, as listed in Tables W–1A, W–4B, W–5B, W–6B, and W–7 to this subpart. Use appropriate population emission factor for operations in Eastern and Western U.S., according to Table W–1D to this subpart. * * * * * (3) Underground natural gas storage facilities must use the appropriate default total hydrocarbon population emission factors for storage wellheads in gas service listed in Table W–4B to this subpart. (4) LNG storage facilities must use the appropriate default methane population emission factor for LNG storage compressors in gas service listed in Table W–5B to this subpart. (5) LNG import and export facilities must use the appropriate default methane population emission factor for LNG terminal compressors in gas service listed in Table W–6B to this subpart. * * * * * ■ 4. Section 98.234 is amended by: PO 00000 Frm 00026 Fmt 4701 Sfmt 4700 a. Revising paragraph (a) introductory text, the paragraph (a)(1) heading, and the fourth sentence in paragraph (a)(2); and ■ b. Adding paragraphs (a)(6) and (7). The revisions and additions read as follows: * * * * * ■ § 98.234 Monitoring and QA/QC requirements. (a) You must use any of the methods described in paragraphs (a)(1) through (5) of this section to conduct leak detection(s) of through-valve leakage from all source types listed in § 98.233(k), (o), and (p) that occur during a calendar year. You must use any of the methods described in paragraphs (a)(1) through (7) of this section to conduct leak detection(s) of equipment leaks from components as specified in § 98.233(q)(1)(i) that occur during a calendar year. You must use any of the methods described in paragraphs (a)(1) through (5) of this section to conduct leak detection(s) of equipment leaks from components as specified in § 98.233(q)(1)(ii) that occur during a calendar year. You must use one of the methods described in paragraph (a)(6) or (7) of this section to conduct leak detection(s) of equipment leaks from components as specified in § 98.233(q)(1)(iii). If electing to comply with § 98.233(q) as specified in § 98.233(q)(1)(iv), you must use any of the methods described in paragraphs (a)(1) through (7) of this section to conduct leak detection(s) of equipment leaks from component types as specified in § 98.233(q)(1)(iv) that occur during a calendar year. (1) Optical gas imaging instrument as specified in § 60.18 of this chapter. * * * * * * * * (2) * * * If the equipment leak detection methods in this paragraph cannot be used, you must use alternative leak detection devices as described in paragraph (a)(1) of this section to monitor inaccessible equipment leaks or vented emissions. * * * * * (6) Optical gas imaging instrument as specified in § 60.5397a of this chapter. Use an optical gas imaging instrument for equipment leak detection in accordance with § 60.5397a(b), (c)(3), (c)(7), and (e) of this chapter and paragraphs (a)(6)(i) through (iii) of this section. Unless using methods in paragraph (a)(7) of this section, an optical gas imaging instrument must be used for all source types that are inaccessible and cannot be monitored without elevating the monitoring E:\FR\FM\30NOR3.SGM 30NOR3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES3 personnel more than 2 meters above a support surface. (i) For the purposes of this subpart, any visible emissions from a component listed in § 98.232 observed by the optical gas imaging instrument is a leak. (ii) For the purposes of this subpart, the term ‘‘fugitive emissions component’’ in § 60.5397a of this chapter means ‘‘component.’’ (iii) For the purpose of complying with § 98.233(q)(1)(iv), the phrase ‘‘the collection of fugitive emissions components at well sites and compressor stations’’ in § 60.5397a(b) of this chapter means ‘‘the collection of components for which you elect to comply with § 98.233(q)(1)(iv).’’ (7) Method 21 as specified in § 60.5397a of this chapter. Use the equipment leak detection methods in appendix A–7 to part 60 of this chapter, Method 21, in accordance with § 60.5397a(b), (c)(8), and (e) of this chapter and paragraphs (a)(7)(i) through (iii) of this section. Inaccessible emissions sources, as defined in part 60 of this chapter, are not exempt from this subpart. If the equipment leak detection methods in this paragraph cannot be used, you must use alternative leak detection devices as described in paragraph (a)(6) of this section to monitor inaccessible equipment leaks. (i) For the purposes of this subpart, any instrument reading from a component listed in § 98.232 of this chapter of 500 ppm or greater using Method 21 is a leak. (ii) For the purposes of this subpart, the term ‘‘fugitive emissions component’’ in § 60.5397a of this chapter means ‘‘component.’’ (iii) For the purpose of complying with § 98.233(q)(1)(iv), the phrase ‘‘the collection of fugitive emissions components at well sites and compressor stations’’ in § 60.5397a(b) of this chapter means ‘‘the collection of components for which you elect to comply with § 98.233(q)(1)(iv).’’ * * * * * ■ 5. Section 98.236 is amended by: ■ a. Redesignating paragraphs (a)(1)(xiv) through (xvii) as paragraphs (a)(1)(xv) through (xviii), respectively; ■ b. Adding new paragraph (a)(1)(xiv); ■ c. Redesignating paragraphs (a)(9)(x) and (xi) as paragraphs (a)(9)(xi) and (xii), respectively; VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 d. Adding new paragraph (a)(9)(x); e. Revising paragraph (q) introductory text, paragraph (q)(1), paragraph (q)(2) introductory text, paragraph (r)(3)(ii) introductory text, and the second sentence of paragraph (z) introductory text. The revisions and additions read as follows: ■ ■ § 98.236 Data reporting requirements. * * * * * (a) * * * (1) * * * (xiv) Equipment leak surveys. Report the information specified in paragraph (q) of this section. * * * * * (9) * * * (x) Equipment leak surveys. Report the information specified in paragraph (q) of this section. * * * * * (q) Equipment leak surveys. For any components subject to or complying with the requirements of § 98.233(q), you must report the information specified in paragraphs (q)(1) and (2) of this section. Natural gas distribution facilities with emission sources listed in § 98.232(i)(1) must also report the information specified in paragraph (q)(3) of this section. (1) You must report the information specified in paragraphs (q)(1)(i) through (v) of this section. (i) Except as specified in paragraph (q)(1)(ii) of this section, the number of complete equipment leak surveys performed during the calendar year. (ii) Natural gas distribution facilities performing equipment leak surveys across a multiple year leak survey cycle must report the number of years in the leak survey cycle. (iii) Except for onshore natural gas processing facilities and natural gas distribution facilities, indicate whether any equipment components at your facility are subject to the well site or compressor station fugitive emissions standards in § 60.5397a of this chapter. Report the indication per facility, not per component type. (iv) For facilities in onshore petroleum and natural gas production, onshore petroleum and natural gas gathering and boosting, onshore natural gas transmission compression, underground natural gas storage, LNG PO 00000 Frm 00027 Fmt 4701 Sfmt 4700 86515 storage, and LNG import and export equipment, indicate whether you elected to comply with § 98.233(q) according to § 98.233(q)(1)(iv) for any equipment components at your facility. (v) Report each type of method described in § 98.234(a) that was used to conduct leak surveys. (2) You must indicate whether your facility contains any of the component types subject to or complying with § 98.233(q) that are listed in § 98.232(c)(21), (d)(7), (e)(7), (e)(8), (f)(5), (f)(6), (f)(7), (f)(8), (g)(4), (g)(6), (g)(7), (h)(5), (h)(7), (h)(8), (i)(1), or (j)(10) for your facility’s industry segment. For each component type that is located at your facility, you must report the information specified in paragraphs (q)(2)(i) through (v) of this section. If a component type is located at your facility and no leaks were identified from that component, then you must report the information in paragraphs (q)(2)(i) through (v) of this section but report a zero (‘‘0’’) for the information required according to paragraphs (q)(2)(ii) through (v) of this section. * * * * * (r) * * * (3) * * * (ii) Onshore petroleum and natural gas production facilities and onshore petroleum and natural gas gathering and boosting facilities must report the information specified in paragraphs (r)(3)(ii)(A) and (B) of this section, for each major equipment type, production type (i.e., natural gas or crude oil), and geographic location combination in Tables W–1B and W–1C to this subpart for which equipment leak emissions are calculated using the methodology in § 98.233(r). * * * * * (z) * * * If your facility contains any combustion units subject to reporting according to paragraph (a)(1)(xviii), (a)(8)(i), or (a)(9)(xii) of this section, then you must report the information specified in paragraphs (z)(1) and (2) of this section, as applicable. * * * * * 6. Add Table W–1E to subpart W of part 98 in numerical order to read as follows: ■ E:\FR\FM\30NOR3.SGM 30NOR3 86516 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations TABLE W–1E TO SUBPART W OF PART 98—DEFAULT WHOLE GAS LEAKER EMISSION FACTORS FOR ONSHORE PETROLEUM AND NATURAL GAS PRODUCTION AND ONSHORE PETROLEUM AND NATURAL GAS GATHERING AND BOOSTING Emission factor (scf/hour/component) Equipment components If you survey using any of the methods in § 98.234(a)(1) through (6) If you survey using Method 21 as specified in § 98.234(a)(7) Leaker Emission Factors—All Components, Gas Service 1 Valve ................................................................................................................................................ Flange .............................................................................................................................................. Connector (other) ............................................................................................................................. Open-Ended Line 2 .......................................................................................................................... Pressure Relief Valve ...................................................................................................................... Pump Seal ....................................................................................................................................... Other 3 .............................................................................................................................................. 4.9 4.1 1.3 2.8 4.5 3.7 4.5 3.5 2.2 0.8 1.9 2.8 1.4 2.8 3.2 2.7 1.0 1.6 3.7 3.7 3.1 2.2 1.4 0.6 1.1 2.6 2.6 2.0 3.2 2.7 1.0 1.6 3.7 3.7 3.1 2.2 1.4 0.6 1.1 2.6 2.6 2.0 Leaker Emission Factors—All Components, Light Crude Service 4 Valve ................................................................................................................................................ Flange .............................................................................................................................................. Connector (other) ............................................................................................................................. Open-Ended Line ............................................................................................................................. Pump ................................................................................................................................................ Agitator Seal .................................................................................................................................... Other 3 .............................................................................................................................................. Leaker Emission Factors—All Components, Heavy Crude Service 5 Valve ................................................................................................................................................ Flange .............................................................................................................................................. Connector (other) ............................................................................................................................. Open-Ended Line ............................................................................................................................. Pump ................................................................................................................................................ Agitator Seal .................................................................................................................................... Other 3 .............................................................................................................................................. 1 For multi-phase flow that includes gas, use the gas service emission factors. open-ended lines component type includes blowdown valve and isolation valve leaks emitted through the blowdown vent stack for centrifugal and reciprocating compressors. 3 ‘‘Others’’ category includes any equipment leak emission point not specifically listed in this table, as specified in § 98.232(c)(21) and (j)(10). 4 Hydrocarbon liquids greater than or equal to 20°API are considered ‘‘light crude.’’ 5 Hydrocarbon liquids less than 20°API are considered ‘‘heavy crude.’’ 2 The 7. Remove Table W–3 to subpart W of part 98 and add Table W–3A and Table ■ W–3B to subpart W of part 98 in numerical order to read as follows: TABLE W–3A TO SUBPART W OF PART 98—DEFAULT TOTAL HYDROCARBON LEAKER EMISSION FACTORS FOR ONSHORE NATURAL GAS TRANSMISSION COMPRESSION Emission factor (scf/hour/component) Onshore natural gas transmission compression If you survey using any of the methods in § 98.234(a)(1) through (6) If you survey using Method 21 as specified in § 98.234(a)(7) sradovich on DSK3GMQ082PROD with RULES3 Leaker Emission Factors—Compressor Components, Gas Service Valve 1 .............................................................................................................................................. Connector ........................................................................................................................................ Open-Ended Line ............................................................................................................................. Pressure Relief Valve ...................................................................................................................... Meter or Instrument ......................................................................................................................... Other 2 .............................................................................................................................................. 14.84 5.59 17.27 39.66 19.33 4.1 9.51 3.58 11.07 25.42 12.39 2.63 6.42 5.71 11.27 4.12 3.66 7.22 Leaker Emission Factors—Non-Compressor Components, Gas Service Valve 1 .............................................................................................................................................. Connector ........................................................................................................................................ Open-Ended Line ............................................................................................................................. VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 PO 00000 Frm 00028 Fmt 4701 Sfmt 4700 E:\FR\FM\30NOR3.SGM 30NOR3 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations 86517 TABLE W–3A TO SUBPART W OF PART 98—DEFAULT TOTAL HYDROCARBON LEAKER EMISSION FACTORS FOR ONSHORE NATURAL GAS TRANSMISSION COMPRESSION—Continued Emission factor (scf/hour/component) Onshore natural gas transmission compression If you survey using any of the methods in § 98.234(a)(1) through (6) Pressure Relief Valve ...................................................................................................................... Meter or Instrument ......................................................................................................................... Other 2 .............................................................................................................................................. If you survey using Method 21 as specified in § 98.234(a)(7) 2.01 2.93 4.1 1.29 1.88 2.63 1 Valves include control valves, block valves and regulator valves. includes any potential equipment leak emission point in gas service that is not specifically listed in this table, as specified in § 98.232(e)(8). 2 Other TABLE W–3B TO SUBPART W OF PART 98—DEFAULT TOTAL HYDROCARBON POPULATION EMISSION FACTORS FOR ONSHORE NATURAL GAS TRANSMISSION COMPRESSION Emission factor (scf/hour/component) Population emission factors—gas service onshore natural gas transmission compression Low Continuous Bleed Pneumatic Device Vents 1 .................................................................................................................. High Continuous Bleed Pneumatic Device Vents 1 ................................................................................................................. Intermittent Bleed Pneumatic Device Vents 1 .......................................................................................................................... 1 Emission 1.37 18.20 2.35 Factor is in units of ‘‘scf/hour/device.’’ 8. Remove Table W–4 to subpart W of part 98 and add Table W–4A and Table ■ W–4B to subpart W of part 98 in numerical order to read as follows: TABLE W–4A TO SUBPART W OF PART 98—DEFAULT TOTAL HYDROCARBON LEAKER EMISSION FACTORS FOR UNDERGROUND NATURAL GAS STORAGE Emission factor (scf/hour/component) Underground natural gas storage If you survey using any of the methods in § 98.234(a)(1) through (6) If you survey using Method 21 as specified in § 98.234(a)(7) Leaker Emission Factors—Storage Station, Gas Service Valve 1 .............................................................................................................................................. Connector (other) ............................................................................................................................. Open-Ended Line ............................................................................................................................. Pressure Relief Valve ...................................................................................................................... Meter and Instrument ...................................................................................................................... Other 2 .............................................................................................................................................. 14.84 5.59 17.27 39.66 19.33 4.1 9.51 3.58 11.07 25.42 12.39 2.63 4.5 1.2 3.8 2.5 4.1 4.1 3.2 0.7 2.0 1.7 2.5 2.5 Leaker Emission Factors—Storage Wellheads, Gas Service Valve 1 .............................................................................................................................................. Connector (other than flanges) ........................................................................................................ Flange .............................................................................................................................................. Open-Ended Line ............................................................................................................................. Pressure Relief Valve ...................................................................................................................... Other 2 .............................................................................................................................................. 1 Valves include control valves, block valves and regulator valves. includes any potential equipment leak emission point in gas service that is not specifically listed in this table, as specified in § 98.232(f)(6) and (8). sradovich on DSK3GMQ082PROD with RULES3 2 Other TABLE W–4B TO SUBPART W OF PART 98—DEFAULT TOTAL HYDROCARBON POPULATION EMISSION FACTORS FOR UNDERGROUND NATURAL GAS STORAGE Emission factor (scf/hour/component) Underground natural gas storage Population Emission Factors—Storage Wellheads, Gas Service Connector ................................................................................................................................................................................ VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 PO 00000 Frm 00029 Fmt 4701 Sfmt 4700 E:\FR\FM\30NOR3.SGM 30NOR3 0.01 86518 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations TABLE W–4B TO SUBPART W OF PART 98—DEFAULT TOTAL HYDROCARBON POPULATION EMISSION FACTORS FOR UNDERGROUND NATURAL GAS STORAGE—Continued Emission factor (scf/hour/component) Underground natural gas storage Valve ........................................................................................................................................................................................ Pressure Relief Valve .............................................................................................................................................................. Open-Ended Line ..................................................................................................................................................................... 0.1 0.17 0.03 Population Emission Factors—Other Components, Gas Service Low Continuous Bleed Pneumatic Device Vents 1 .................................................................................................................. High Continuous Bleed Pneumatic Device Vents 1 ................................................................................................................. Intermittent Bleed Pneumatic Device Vents 1 .......................................................................................................................... 1 Emission 1.37 18.20 2.35 Factor is in units of ‘‘scf/hour/device.’’ 9. Remove Table W–5 to subpart W of part 98 and add Table W–5A and Table ■ W–5B to subpart W of part 98 in numerical order to read as follows: TABLE W–5A TO SUBPART W OF PART 98—DEFAULT METHANE LEAKER EMISSION FACTORS FOR LIQUEFIED NATURAL GAS (LNG) STORAGE Emission factor (scf/hour/component) LNG storage If you survey using any of the methods in § 98.234(a)(1) through (6) If you survey using Method 21 as specified in § 98.234(a)(7) Leaker Emission Factors—LNG Storage Components, LNG Service Valve ................................................................................................................................................ Pump Seal ....................................................................................................................................... Connector ........................................................................................................................................ Other 1 .............................................................................................................................................. 1.19 4.00 0.34 1.77 0.23 0.73 0.11 0.99 14.84 5.59 17.27 39.66 19.33 4.1 9.51 3.58 11.07 25.42 12.39 2.63 Leaker Emission Factors—LNG Storage Components, Gas Service Valve 2 .............................................................................................................................................. Connector ........................................................................................................................................ Open-Ended Line ............................................................................................................................. Pressure Relief Valve ...................................................................................................................... Meter and Instrument ...................................................................................................................... Other 3 .............................................................................................................................................. 1 ‘‘Other’’ equipment type for components in LNG service should be applied for any equipment type other than connectors, pumps, or valves. include control valves, block valves and regulator valves. 3 ‘‘Other’’ equipment type for components in gas service should be applied for any equipment type other than valves, connectors, flanges, open-ended lines, pressure relief valves, and meters and instruments, as specified in § 98.232(g)(6) and (7). 2 Valves TABLE W–5B TO SUBPART W OF PART 98—DEFAULT METHANE POPULATION EMISSION FACTORS FOR LIQUEFIED NATURAL GAS (LNG) STORAGE Emission factor (scf/hour/component) LNG storage Population Emission Factors—LNG Storage Compressor, Gas Service Vapor Recovery Compressor 1 ................................................................................................................................................ 1 Emission Factor is in units of ‘‘scf/hour/device.’’ 10. Remove Table W–6 to subpart W of part 98 and add Table W–6A and sradovich on DSK3GMQ082PROD with RULES3 ■ VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 Table W–6B to subpart W of part 98 in numerical order to read as follows: PO 00000 Frm 00030 Fmt 4701 Sfmt 4700 E:\FR\FM\30NOR3.SGM 30NOR3 4.17 Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations 86519 TABLE W–6A TO SUBPART W OF PART 98—DEFAULT METHANE LEAKER EMISSION FACTORS FOR LNG IMPORT AND EXPORT EQUIPMENT Emission factor (scf/hour/component) LNG import and export equipment If you survey using any of the methods in § 98.234(a)(1) through (6) If you survey using Method 21 as specified in sect; 98.234(a)(7) Leaker Emission Factors—LNG Terminals Components, LNG Service Valve ................................................................................................................................................ Pump Seal ....................................................................................................................................... Connector ........................................................................................................................................ Other 1 .............................................................................................................................................. 1.19 4.00 0.34 1.77 0.23 0.73 0.11 0.99 14.84 5.59 17.27 39.66 19.33 4.1 9.51 3.58 11.07 25.42 12.39 2.63 Leaker Emission Factors—LNG Terminals Components, Gas Service Valve 2 .............................................................................................................................................. Connector ........................................................................................................................................ Open-Ended Line ............................................................................................................................. Pressure Relief Valve ...................................................................................................................... Meter and Instrument ...................................................................................................................... Other 3 .............................................................................................................................................. 1 ‘‘Other’’ equipment type for components in LNG service should be applied for any equipment type other than connectors, pumps, or valves. include control valves, block valves and regulator valves. 3 ‘‘Other’’ equipment type for components in gas service should be applied for any equipment type other than valves, connectors, flanges, open-ended lines, pressure relief valves, and meters and instruments, as specified in § 98.232(h)(7) and (8). 2 Valves TABLE W–6B TO SUBPART W OF PART 98—DEFAULT METHANE POPULATION EMISSION FACTORS FOR LNG IMPORT AND EXPORT EQUIPMENT Emission factor (scf/hour/component) LNG import and export equipment Population Emission Factors—LNG Terminals Compressor, Gas Service Vapor Recovery Compressor 1 ................................................................................................................................................ 1 Emission Factor is in units of ‘‘scf/hour/compressor.’’ [FR Doc. 2016–27981 Filed 11–29–16; 8:45 am] sradovich on DSK3GMQ082PROD with RULES3 BILLING CODE 6560–50–P VerDate Sep<11>2014 18:04 Nov 29, 2016 Jkt 241001 PO 00000 Frm 00031 Fmt 4701 Sfmt 9990 E:\FR\FM\30NOR3.SGM 30NOR3 4.17

Agencies

ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)]
[Rules and Regulations]
[Pages 86490-86519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27981]

[[Page 86489]]

Vol. 81

Wednesday,

No. 230

November 30, 2016

Part III

Environmental Protection Agency

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40 CFR Part 98

Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and
Confidentiality Determinations for Petroleum and Natural Gas Systems;
Final Rule

Federal Register / Vol. 81 , No. 230 / Wednesday, November 30, 2016 /
Rules and Regulations

[[Page 86490]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 98

[EPA-HQ-OAR-2015-0764; FRL-9955-12-OAR]
RIN 2060-AS73

Greenhouse Gas Reporting Rule: Leak Detection Methodology
Revisions and Confidentiality Determinations for Petroleum and Natural
Gas Systems

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency is finalizing revisions
and confidentiality determinations for the petroleum and natural gas
systems source category of the Greenhouse Gas Reporting Program. In
particular, this action adds new monitoring methods for detecting leaks
from oil and gas equipment in the petroleum and natural gas systems
source category consistent with the fugitive emissions monitoring
methods in the recently finalized new source performance standards for
the oil and gas industry. This action also adds emission factors for
leaking equipment to be used in conjunction with these monitoring
methods to calculate and report greenhouse gas emissions resulting from
equipment leaks. Finally, this action finalizes reporting requirements
and confidentiality determinations for nine new or substantially
revised data elements contained in these amendments.

DATES: This final rule is effective on January 1, 2017.

ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-HQ-OAR-2015-0764. All documents in the docket are
listed on the https://www.regulations.gov Web site. Although listed in
the index, some information is not publicly available, e.g.,
confidential business information (CBI) or other information whose
disclosure is restricted by statute. Certain other material, such as
copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available electronically through https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Carole Cook, Climate Change Division,
Office of Atmospheric Programs (MC-6207A), Environmental Protection
Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone
number: (202) 343-9334; fax number: (202) 343-2342; email address:
GHGReporting@epa.gov. For technical information, please go to the
Greenhouse Gas Reporting Rule Web site, https://www.epa.gov/ghgreporting/. To submit a question, select Help Center, followed by
``Contact Us.''
Worldwide Web (WWW). In addition to being available in the docket,
an electronic copy of this final rule will also be available through
the WWW. Following the Administrator's signature, a copy of this action
will be posted on the EPA's Greenhouse Gas Reporting Rule Web site at
https://www.epa.gov/ghgreporting/.

SUPPLEMENTARY INFORMATION:
Regulated Entities. These revisions affect entities that must
submit annual greenhouse gas (GHG) reports under the Greenhouse Gas
Reporting Program (GHGRP), codified in the Code of Federal Regulations
(CFR) at 40 CFR part 98. This rule applies to all petroleum and natural
gas systems facilities that are subject to 40 CFR part 98, regardless
of the facility's location, and ensures that all these facilities
across the United States (U.S.) report GHG data consistently, and
therefore is ``nationally applicable'' within the meaning of section
307(b)(1) of the Clean Air Act (CAA). Further, the Administrator has
determined that rules codified in 40 CFR part 98 are subject to the
provisions of CAA section 307(d). (See CAA section 307(d)(1)(V) (the
provisions of section 307(d) apply to ``such other actions as the
Administrator may determine'').) These are amendments to existing
regulations. These amended regulations affect owners or operators of
petroleum and natural gas systems that directly emit GHGs. Regulated
categories and entities include, but are not limited to, those listed
in Table 1 of this preamble:

Table 1--Examples of Affected Entities by Category
------------------------------------------------------------------------
Examples of affected
Category NAICS \a\ facilities
------------------------------------------------------------------------
Petroleum and Natural Gas 486210 Pipeline transportation
Systems. of natural gas.
221210 Natural gas
distribution.
211111 Crude petroleum and
natural gas
extraction.
211112 Natural gas liquid
extraction.
------------------------------------------------------------------------
\a\ North American Industry Classification System.

Table 1 of this preamble is not intended to be exhaustive, but
rather provides a guide for readers regarding facilities likely to be
affected by this action. Other types of facilities than those listed in
the table could also be subject to reporting requirements. To determine
whether you are affected by this action, you should carefully examine
the applicability criteria found in 40 CFR part 98, subpart A and 40
CFR part 98, subpart W. If you have questions regarding the
applicability of this action to a particular facility, consult the
person listed in the preceding FOR FURTHER INFORMATION CONTACT section.
What is the effective date? The final rule is effective on January
1, 2017. Section 553(d) of the Administrative Procedure Act (APA), 5
U.S.C. Chapter 5, generally provides that rules may not take effect
earlier than 30 days after they are published in the Federal Register.
The EPA is issuing this final rule under section 307(d)(1) of the Clean
Air Act, which states: ``The provisions of section 553 through 557 * *
* of Title 5 shall not, except as expressly provided in this section,
apply to actions to which this subsection applies.'' Thus, section
553(d) of the APA does not apply to this rule. The EPA is nevertheless
acting consistently with the purposes underlying APA section 553(d) in
making the first set of amendments to this rule effective on January 1,
2017. Section 553(d) allows an effective date less than 30 days after
publication for a rule that ``grants or recognizes an exemption or
relieves a restriction'' or ``as otherwise provided by the agency for
good cause found and published with the rule.'' As explained below, the
EPA finds that there is good cause for the first set of amendments to
this rule to become effective on January 1, 2017, even though this may
result in an effective date fewer than 30 days from date of publication
in the Federal Register.
While this action is being signed prior to December 1, 2016, there
is likely to

[[Page 86491]]

be a significant delay in the publication of this rule as it contains
complex equations and tables and is relatively long. As an example, the
EPA Administrator signed the Greenhouse Gas Reporting Rule: 2015
Revisions and Confidentiality Determinations for Petroleum and Natural
Gas Systems final rule on October 1, 2015, but the rule was not
published in the Federal Register until October 22, 2015 (80 FR 64262).
The purpose of the 30-day waiting period prescribed in 5 U.S.C. 553(d)
is to give affected parties a reasonable time to adjust their behavior
and prepare before the final rule takes effect. To employ the APA
section 553(d)(3) ``good cause'' exemption, an agency must balance the
necessity for immediate implementation against principles of
fundamental fairness which require that all affected persons be
afforded a reasonable amount of time to prepare for the effective date
of its ruling.\1\ Where, as here, the final rule will be signed and
made available on the EPA Web site more than 30 days before the
effective date, but where the publication is likely to be delayed due
to the complexity and length of the rule, the regulated entities are
afforded this reasonable amount of time. We balance these circumstances
with the need for the amendments to be effective by January 1, 2017; a
delayed effective date would result in regulatory uncertainty, program
disruption, and an inability to have the amendments effective for the
2017 reporting year. Accordingly, we find good cause exists to make
this rule effective on January 1, 2017, consistent with the purposes of
APA section 553(d)(3).
---------------------------------------------------------------------------

\1\ Omnipoint Corp. v. FCC, 78 F3d 620, 630 (D.C. Cir. 1996),
quoting U.S. v. Gavrilovic, 551 F.2d 1099, 1105 (8th Cir. 1977).
---------------------------------------------------------------------------

Judicial Review. Under CAA section 307(b)(1), judicial review of
this final rule is available only by filing a petition for review in
the U.S. Court of Appeals for the District of Columbia Circuit (the
Court) by January 30, 2017 Under CAA section 307(d)(7)(B), only an
objection to this final rule that was raised with reasonable
specificity during the period for public comment can be raised during
judicial review. Section 307(d)(7)(B) of the CAA also provides a
mechanism for the EPA to convene a proceeding for reconsideration,
``[i]f the person raising an objection can demonstrate to the EPA that
it was impracticable to raise such objection within [the period for
public comment] or if the grounds for such objection arose after the
period for public comment (but within the time specified for judicial
review) and if such objection is of central relevance to the outcome of
the rule.'' Any person seeking to make such a demonstration to us
should submit a Petition for Reconsideration to the Office of the
Administrator, Environmental Protection Agency, Room 3000, William
Jefferson Clinton Building, 1200 Pennsylvania Ave. NW., Washington, DC
20460, with a copy to the person listed in the preceding FOR FURTHER
INFORMATION CONTACT section, and the Associate General Counsel for the
Air and Radiation Law Office, Office of General Counsel (Mail Code
2344A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20004. Note that under CAA section 307(b)(2), the
requirements established by this final rule may not be challenged
separately in any civil or criminal proceedings brought by the EPA to
enforce these requirements.
Acronyms and Abbreviations. The following acronyms and
abbreviations are used in this document.

APA Administrative Procedure Act
CAA Clean Air Act
CBI Confidential Business Information
CFR Code of Federal Regulations
CH4 methane
CO2 carbon dioxide
CRA Congressional Review Act
DOT Department of Transportation
EPA U.S. Environmental Protection Agency
FR Federal Register
GHG greenhouse gas
GHGRP Greenhouse Gas Reporting Program
GRI Gas Research Institute
ICR Information Collection Request
LNG liquefied natural gas
NAICS North American Industry Classification System
NSPS New Source Performance Standards
NTTAA National Technology Transfer and Advancement Act
OGI optical gas imaging
OMB Office of Management and Budget
ppmv parts per million by volume
PRA Paperwork Reduction Act
RFA Regulatory Flexibility Act
U.S. United States
UMRA Unfunded Mandates Reform Act
VOC volatile organic compounds
WWW Worldwide Web

Organization of This Document. The following outline is provided to
aid in locating information in this preamble.

I. Background
A. Organization of This Preamble
B. Background on This Action
C. Legal Authority
D. How do these amendments apply to 2016 and 2017 reports?
II. Summary of Final Revisions and Other Amendments to Subpart W and
Responses to Public Comment
A. Summary of Final Amendments--General
B. Summary of Final Amendments to the Requirement To Use the
Calculation Methodology Based on Equipment Leak Surveys
C. Summary of Final Amendments to Monitoring Methods
D. Summary of Final Amendments to Components To Be Surveyed
E. Summary of Final Amendments to Leaker Emission Factors and
the Calculation Methodology Based on Equipment Leak Surveys
F. Summary of Final Amendments to Reporting Requirements
III. Final Confidentiality Determinations
A. Summary of Final Confidentiality Determinations for New or
Substantially Revised Subpart W Data Elements
B. Summary of Public Comments and Responses on the Proposed
Confidentiality Determinations
IV. Impacts of the Final Amendments to Subpart W
A. Impacts of the Final Amendments
B. Summary of Comments and Responses on the Impacts of the
Proposed Rule
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act (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
J. Executive Order 12898: Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income
Populations
K. Congressional Review Act

I. Background

A. Organization of This Preamble

Section I of this preamble provides background information
regarding the origin of the final amendments. This section also
discusses the EPA's legal authority under the CAA to promulgate and
amend 40 CFR part 98 of the Greenhouse Gas Reporting Rule (hereafter
referred to as ``part 98'') as well as the legal authority for making
confidentiality determinations for the data to be reported. Section II
of this preamble contains information on the final amendments to part
98, subpart W (Petroleum and Natural Gas Systems) (hereafter referred
to as ``subpart W''), including a summary of the major comments that
the EPA considered in the development of this final rule. Section III
of this preamble discusses the final confidentiality determinations for
new or substantially revised data

[[Page 86492]]

reporting elements. Section IV of this preamble discusses the impacts
of the final amendments to subpart W. Finally, section V of this
preamble describes the statutory and executive order requirements
applicable to this action.

B. Background on This Action

The EPA's GHGRP requires annual reporting of GHG data and other
relevant information from large sources and suppliers in the United
States. On October 30, 2009, the EPA published part 98 in the Federal
Register (FR) for collecting information regarding GHG emissions from a
broad range of industry sectors (74 FR 56260). Although reporting
requirements for petroleum and natural gas systems were originally
proposed to be part of part 98 (74 FR 16448, April 10, 2009), the final
October 2009 rulemaking did not include the petroleum and natural gas
systems source category as one of the 29 source categories for which
reporting requirements were finalized. The EPA re-proposed subpart W in
2010 (75 FR 18608; April 12, 2010), and a subsequent final rulemaking
was published on November 30, 2010, with the requirements for the
petroleum and natural gas systems source category at 40 CFR part 98,
subpart W (75 FR 74458). Following promulgation, the EPA finalized
several actions revising subpart W (76 FR 22825, April 25, 2011; 76 FR
53057, August 25, 2011; 76 FR 59533, September 27, 2011; 76 FR 80554,
December 23, 2011; 77 FR 51477, August 24, 2012; 78 FR 25392, May 1,
2013; 78 FR 71904, November 29, 2013; 79 FR 70352, November 25, 2014;
80 FR 64262, October 22, 2015).\2\
---------------------------------------------------------------------------

\2\ See Greenhouse Gas Reporting Program, Historical
Rulemakings. Available at https://www.epa.gov/ghgreporting/rulemaking-notices-ghg-reporting.
---------------------------------------------------------------------------

The Strategy to Reduce Methane Emissions in the President's Climate
Action Plan summarizes the sources of CH4 emissions, commits
to new steps to cut emissions of this potent GHG, and outlines the
Administration's efforts to improve the measurement of these emissions.
The strategy builds on progress to date and takes steps to further cut
CH4 emissions from several sectors, including the oil and
natural gas sector. In the strategy, the EPA was specifically tasked
with continuing to review GHGRP regulatory requirements to address
potential gaps in coverage, improve methods, and ensure high quality
data reporting.\3\ On January 14, 2015, the Obama administration
provided additional direction to the EPA to ``explore potential
regulatory opportunities for applying remote sensing technologies and
other innovations in measurement and monitoring technology to further
improve the identification and quantification of emissions'' in the oil
and natural gas sector, such as the emissions submitted as part of
GHGRP annual reporting.\4\
---------------------------------------------------------------------------

\3\ Climate Action Plan--Strategy to Reduce Methane Emissions.
The White House, Washington, DC, March 2014. Available at https://www.whitehouse.gov/sites/default/files/strategy_to_reduce_methane_emissions_2014-03-28_final.pdf.
\4\ FACT SHEET: Administration Takes Steps Forward on Climate
Action Plan by Announcing Actions to Cut Methane Emissions. The
White House, Office of the Press Secretary, January 14, 2015.
Available at https://www.whitehouse.gov/the-press-office/2015/01/14/fact-sheet-administration-takes-steps-forward-climate-action-plan-anno-1.
---------------------------------------------------------------------------

Under subpart W, GHGs that must be reported by each industry
segment and applicable source types are specified in 40 CFR 98.232,
including equipment leaks from listed component types. In order to
fulfill these equipment leak emissions reporting requirements,
reporters must utilize one of two calculation methodologies \5\ to
calculate GHG emissions from equipment leaks as specified in 40 CFR
98.233: (1) Calculation methodology based on equipment leak surveys (40
CFR 98.233(q)), or (2) calculation methodology based on population
counts (40 CFR 98.233(r).\6\ For example, facilities in the Onshore
Natural Gas Processing and Onshore Natural Gas Transmission Compression
industry segments use the calculation methodology based on equipment
leak surveys for most components at their facilities. If 40 CFR
98.233(q) specifies that an equipment leak survey is required for the
subsection of listed component types in 40 CFR 98.232, reporters must
use one of the monitoring methods specified in 40 CFR 98.234 when
conducting those equipment leak surveys to detect leaking components at
the facility. The calculation methodology based on equipment leak
surveys requires that the reporter then determine the total amount of
time each component was assumed to be leaking and multiply that by the
concentration of the methane (CH4) and carbon dioxide
(CO2) in the gas and the applicable emission factor
(referred to as a ``leaker emission factor''), listed in Table W-1E and
Table W-2 through Table W-7, to calculate emissions. Finally, 40 CFR
98.236 specifies the data elements that must be reported to the EPA.
---------------------------------------------------------------------------

\5\ Throughout this preamble, the term ``calculation
methodology'' refers to the procedures used to calculate emissions
(e.g., ``calculation methodology based on equipment leak surveys''
refers to the methodology described in 40 CFR 98.233(q)) and
``monitoring method'' refers to the technology, test method, or
other method of determining whether an individual component is
leaking (see 40 CFR 98.234(a)). The term ``leak detection method''
that is used in the 40 CFR part 98 subpart W regulatory text has the
same meaning as ``monitoring method'' used in this preamble.
\6\ Reporters using the calculation methodology based on
population counts determine the total number of all components in
the facility and multiply that count by the average estimated time
of operation, the concentration of the CH4 and
CO2 in the gas, and the applicable emission factor
(referred to as a ``population emission factor'') to calculate
emissions.
---------------------------------------------------------------------------

On January 29, 2016, the EPA proposed ``Leak Detection Methodology
Revisions and Confidentiality Determinations for Petroleum and Natural
Gas Systems'' (81 FR 4987) to add new monitoring methods for detecting
leaks from oil and gas equipment, to revise which industry segments and
sources use the calculation methodology based on equipment leak surveys
or the calculation methodology based on population counts, to clarify
how the definition of fugitive emission components in the new source
performance standards (NSPS) for the oil and natural gas sector (40 CFR
part 60, subpart OOOOa, at 81 FR 35824) (hereafter referred to as the
``NSPS subpart OOOOa'') aligns with the equipment components subject to
subpart W, to add leaker emission factors for multiple industry
segments, and to add reporting requirements and confidentiality
determinations for new or substantially revised data elements. Under
those proposed amendments, facilities with fugitive emissions
components at a well site or compressor station subject to the NSPS
subpart OOOOa would use data derived from the NSPS subpart OOOOa
fugitive emissions requirements (i.e., which components were determined
to have fugitive emissions) along with the subpart W leaker emission
factors to calculate and report GHG emissions to the GHGRP. The
proposed revisions provided the opportunity for owners and operators of
sources not subject to the NSPS subpart OOOOa well site or compressor
station fugitive emissions standards (e.g., sources participating in a
voluntarily implemented program) and not already required to conduct
leak surveys under subpart W to optionally use the calculation
methodology at 40 CFR 98.233(q) to calculate and report their GHG
emissions to the GHGRP. The EPA also proposed that facilities that are
already required to conduct leak surveys under subpart W would be able
to use the newly proposed monitoring method(s) in 40 CFR 98.234. In
addition, the EPA proposed new reporting requirements for all reporters
using the calculation methodology

[[Page 86493]]

based on equipment leak surveys and proposed to require reporters using
the calculation methodology for the first time to begin reporting the
information associated with that methodology. Finally, the EPA proposed
confidentiality determinations for nine new or substantially revised
data elements. The public comment period for these proposed rule
amendments ended on March 15, 2016, following a 15-day extension of the
original comment period end date (81 FR 9797; February 26, 2016). On
June 3, 2016, the EPA published the final NSPS subpart OOOOa
requirements (81 FR 35824).
In this action, the EPA is finalizing revisions to subpart W
largely as proposed, with some changes made after consideration of
public comments. Summaries of significant comments submitted on the
proposed amendments and the EPA's responses to those comments can be
found in sections II, III, and IV of this preamble. All comments
submitted on the proposed amendments and the EPA's additional responses
to the comments can be found in ``Response to Public Comments on
Greenhouse Gas Reporting Rule: Leak Detection Methodology Revisions and
Confidentiality Determinations for Petroleum and Natural Gas Systems''
in Docket ID No. EPA-HQ-OAR-2015-0764.
As further detailed in the preamble to the proposed amendments,
these revisions advance the EPA's goal of maximizing rule effectiveness
by providing a mechanism for facilities to use the NSPS subpart OOOOa
monitoring results for purposes of GHGRP subpart W reporting. This
alignment reduces burden for entities subject to the fugitive
emissions/equipment leak detection method requirements in both
programs, and, when combined with the other amendments being finalized
in this revision, provides clear monitoring methods, equipment leak
survey and calculation methodologies and emission factors, and
reporting requirements in subpart W, thus enabling government,
regulated entities, and the public to easily identify and understand
regulatory requirements. These amendments also further advance the
ability of the GHGRP to provide access to high quality data on GHG
emissions by adding the ability for reporters to use data collected
during equipment leak surveys and to perform site-specific equipment
leak calculations.

C. Legal Authority

The EPA is finalizing these rule amendments under its existing CAA
authority provided in CAA section 114. As stated in the preamble to the
2009 final GHG reporting rule (74 FR 56260; October 30, 2009), CAA
section 114(a)(1) provides the EPA broad authority to require the
information to be gathered by this rule because such data will inform
and are relevant to the EPA's carrying out a wide variety of CAA
provisions. See the preambles to the proposed (74 FR 16448; April 10,
2009) and final GHG reporting rule (74 FR 56260; October 30, 2009) for
further information.
In addition, pursuant to sections 114, 301, and 307 of the CAA, the
EPA is publishing final confidentiality determinations for the new or
substantially revised data elements required by these amendments.
Section 114(c) requires that the EPA make information obtained under
section 114 available to the public, except for information (excluding
emission data) that qualifies for confidential treatment. The
Administrator has determined that this action is subject to the
provisions of section 307(d) of the CAA. Section 307(d) contains a set
of procedures relating to the issuance and review of certain CAA rules.

D. How do these amendments apply to 2016 and 2017 reports?

These amendments are effective on January 1, 2017. Starting with
the 2017 reporting year, facilities must follow the revised methods to
detect equipment leaks (if applicable) and to calculate and report
their annual equipment leak emissions. The first annual reports of
emissions calculated using the amended requirements will be those
submitted by April 2, 2018, covering reporting year 2017. For reporting
year 2016, reporters will calculate emissions according to the
requirements in part 98 that are applicable to reporting year 2016
(i.e., the requirements in place until the effective date of this final
rule).

II. Summary of Final Revisions and Other Amendments to Subpart W and
Responses to Public Comment

Sections II.A through II.F of this preamble describe the revisions
that we are finalizing in this rulemaking. Section II.A provides a
general summary of the final amendments to subpart W. Section II.B
describes the final amendments to the requirement to use the
calculation methodology based on equipment leak surveys. Section II.C
describes the final amendments to the subpart W monitoring methods.
Section II.D describes the final amendments for component types to be
surveyed. Section II.E describes the final amendments to the subpart W
leaker emission factors. Finally, section II.F provides a summary of
the final amendments to the subpart W reporting requirements. The
amendments described in each section are followed by a summary of the
major comments on those amendments and the EPA's responses. See
``Response to Public Comments on Greenhouse Gas Reporting Rule: Leak
Detection Methodology Revisions and Confidentiality Determinations for
Petroleum and Natural Gas Systems'' in Docket ID No. EPA-HQ-OAR-2015-
0764 for a complete listing of all comments and the EPA's responses.

A. Summary of Final Amendments--General

1. Summary of Final Amendments
In this action, the EPA is amending subpart W to add new monitoring
methods for detecting leaks from oil and gas equipment in the petroleum
and natural gas systems source category consistent with the NSPS
subpart OOOOa. The EPA is also specifying that facilities with a
collection of fugitive emissions components at a well site or
compressor station subject to the NSPS subpart OOOOa (40 CFR 60.5397a)
would be required to survey those components, except as otherwise
specified in this subpart W final rule, for the subpart W calculation
methodology based on equipment leak surveys using one of the new
monitoring methods being added to subpart W. In practice, this means
that facilities can use the results of the NSPS subpart OOOOa-required
fugitive emissions monitoring survey to fulfill these subpart W
requirements. The EPA is adding leaker emission factors to be used in
conjunction with the calculation methodology based on equipment leak
surveys to calculate and report GHG emissions. The revisions provide
the opportunity for owners and operators of sources not subject to the
NSPS subpart OOOOa well site or compressor station fugitive emissions
standards (e.g., sources participating in a voluntarily implemented
program) and not already required to conduct leak surveys under subpart
W to optionally use the calculation methodology at 40 CFR 98.233(q) to
calculate and report their GHG emissions, and to use the new monitoring
methods in 40 CFR 98.234 to do so.
Facilities in certain subpart W industry segments \7\ that are
already required to conduct leak surveys will be able to use the new
monitoring methods

[[Page 86494]]

in 40 CFR 98.234. If they use either of the two new monitoring methods
in 40 CFR 98.234(a)(6) or (7) that are consistent with the NSPS subpart
OOOOa, then in addition to surveying the components currently subject
to the survey requirements in subpart W, they must also survey all
other components that are fugitive emissions components in the NSPS
subpart OOOOa, with limited exceptions, as specified in 40 CFR 98.232
(see sections II.C and II.D of this preamble). If they use any of the
monitoring methods currently in 40 CFR 98.234(a)(1) through (5), then
in addition to surveying the components currently subject to the survey
requirements in subpart W, they may elect to survey the other
components specified in 40 CFR 98.232.
---------------------------------------------------------------------------

\7\ These segments are Onshore Natural Gas Transmission
Compression, Underground Natural Gas Storage, LNG Storage, and LNG
Import and Export Equipment.
---------------------------------------------------------------------------

The comments received on this rule generally do not dispute the
merit of allowing the use of new monitoring methods in subpart W, but
they do include issues related to the adequacy of the notice and
comment process, the calculation methodology based on equipment leak
surveys, reporting, and applicability.

2. Summary of Comments and Responses

Comment: Numerous commenters stated that the EPA's reference to the
proposed NSPS subpart OOOOa included in the subpart W proposal was
premature, and substantively and procedurally flawed. According to
these commenters, by relying on a proposed action, the EPA did not
provide the opportunity for notice or comment on how the rule would
ultimately affect stakeholders. These commenters stated that at the
very least the EPA made it difficult and increased burden for
stakeholders to evaluate scope and impacts and to provide comment.
Commenters stated that they could only comment on the effect of the
incorporation of the NSPS subpart OOOOa proposed requirements, as they
could not review and comment on the effect of the finalized NSPS
subpart OOOOa requirements on subpart W prior to closure of the comment
period for the subpart W proposal. Specifically, the commenters
expressed concern that because the EPA received so many comments on the
proposed NSPS subpart OOOOa, the final NSPS subpart OOOOa provisions
would likely be significantly different in certain aspects and that
those details were unknowable at the time of comment. Noting that the
EPA expressed intent in the preamble to the subpart W proposed
amendments to incorporate the final NSPS subpart OOOOa provisions in
the final subpart W rule, the commenters stated they inherently would
have no formal opportunity to meaningfully comment on the effect those
final NSPS subpart OOOOa provisions would have on subpart W reporters.
Several commenters stated that this created substantive and procedural
flaws in the proposed rule, as the EPA provided neither the ``terms or
substance'' nor a ``description of the subjects and issues involved''
of the proposed rule as required for notice and comment rulemaking
under the Administrative Procedure Act, 5 U.S.C. 553(b), nor did the
EPA meet the more stringent notice and comment requirements of CAA
section 307. Several commenters stated that EPA similarly did not
consider changes that might be made to the final NSPS subpart OOOOa
through the judicial review process.
Several commenters requested that the EPA either finalize, or re-
propose or re-open the public comment period for, the proposed
alignment of subpart W with the NSPS subpart OOOOa only after the NSPS
subpart OOOOa is finalized. Other commenters requested that the EPA
withdraw the proposal to amend subpart W and reconsider whether any
revisions are necessary once the NSPS subpart OOOOa is in effect.
Response: The EPA disagrees that the proposed rule for this subpart
W revision was premature, or substantively and procedurally flawed.
This action is focused on aligning the subpart W requirements, to the
extent possible, with the finalized NSPS subpart OOOOa fugitive
emission requirements so that facilities may use the results of the
NSPS subpart OOOOa-required fugitive emissions monitoring surveys to
fulfill subpart W requirements, and does so through revisions that
incorporate final NSPS subpart OOOOa monitoring methods into subpart W
and make their use mandatory in subpart W surveys for most components
subject to NSPS subpart OOOOa. The proposed rule for subpart W clearly
specified that only a monitoring method finalized in the NSPS subpart
OOOOa rule would be finalized for subpart W, which ensured that no
requirement would reference any monitoring method that was merely at
proposal stage. The proposed rule provided adequate notice and
opportunity to comment on how the rule will affect stakeholders, and
thus this final rule is in compliance with the relevant requirements of
CAA section 307(d). Multiple commenters cited the Administrative
Procedure Act (APA), including 5 U.S.C. 553(b)(3), which requires that
a notice of proposed rulemaking shall include ``either the terms or
substance of the proposed rule or a description of the subjects and
issues involved.'' The EPA notes that our process is also consistent
with the notice and comment requirements of the APA, 5 U.S.C. 551-559.
In the preamble to the proposed and final rule, as well as in
``Response to Public Comments on Greenhouse Gas Reporting Rule: Leak
Detection Methodology Revisions and Confidentiality Determinations for
Petroleum and Natural Gas Systems'' in Docket ID No. EPA-HQ-OAR-2015-
0764, the EPA describes at length the statement and purpose of the
revisions, provides explanations for any changes in the rule, and
responds to all comments submitted.
Specifically, in regards to the proposed rule referencing the then
proposed NSPS subpart OOOOa monitoring method(s) and fugitive emissions
component definition,\8\ the EPA disagrees that the proposed rule did
not give adequate notice and therefore the EPA did not re-propose or
re-open the comment period for this action. The proposed rule clearly
laid out the EPA's proposal and requested comment regarding
alternatives, as well as the detailed reasoning behind and goals of the
proposal. The EPA provided this detailed explanation to ensure that
commenters had ample notice of the revisions under consideration, and
provided 45 days for the public comment period. This process accords
with proper notice and comment procedure. Commenters posit that
referencing the then proposed NSPS subpart OOOOa standard in the
proposed rule renders this notice premature and inadequate, and the EPA
respectfully disagrees. First, in proposing to add the NSPS subpart
OOOOa equipment leak detection methods as approved monitoring methods
for subpart W surveys, the EPA was not proposing to require any new
collection of data under subpart W, as the data on fugitive emissions
components would already be collected to meet the requirements of NSPS
subpart OOOOa. Instead, the EPA proposed to add these new monitoring
methods under subpart W so that reporters would be able to use, for the
purpose of compliance with the proposed mandatory subpart W equipment
leak survey, calculation, and reporting requirements, whatever data
would already be collected as a result of complying with the monitoring
method(s) that would be finalized in the NSPS subpart OOOOa. Similarly,
while the EPA proposed to include all fugitive emissions components
subject to the

[[Page 86495]]

final NSPS subpart OOOOa monitoring methods within subpart W emissions
reporting requirements, with some exceptions, which would mean that
additional components would fall within the scope of subpart W
applicability, these data would already be collected under the NSPS
subpart OOOOa, meaning that no new data would need to be collected for
subpart W that was not already required by another CAA program. As
such, the substance of the monitoring method(s) and fugitive emission
component definition was not at issue for purposes of subpart W within
these revisions, as that process took place within the NSPS subpart
OOOOa rulemaking. Rather, the EPA ensured that reporters were provided
notice of the proposal to add the monitoring methods and scope of
components that would be finalized under the NSPS OOOOa as additional
monitoring methods and applicable components for subpart W, provided
notice of the proposed additional subpart W equipment leak survey,
calculation, and reporting requirements for equipment components
subject to the NSPS subpart OOOOa, and made clear that the intent of
these revisions was to align the programs so that reporters would use
the data gathered in complying with the finalized NSPS subpart OOOOa to
comply with their subpart W requirements. The proposed rule further
explained the purpose behind this proposed revision, as detailed in the
proposed rule (81 FR 4987; January 29, 2016), including reducing burden
on reporters by minimizing the potential equipment leak surveys
required at a given facility across CAA programs. As noted earlier, the
proposed rule for subpart W clearly specified that only a monitoring
method finalized in the NSPS subpart OOOOa rule would be finalized for
subpart W, which ensured that no requirement would reference any
monitoring method that was merely at proposal stage. In fact, the
proposed rule for subpart W clearly detailed the NSPS subpart OOOOa
proposed monitoring method, and identified that the NSPS subpart OOOOa
proposal included a potential alternative monitoring method, and
furthermore explained that any method(s) added in this final subpart W
action would be the method(s) that were finalized in the NSPS subpart
OOOOa.
---------------------------------------------------------------------------

\8\ The NSPS subpart OOOOa rule has since been finalized. 81 FR
35824 (June 3, 2016).
---------------------------------------------------------------------------

Furthermore, Subpart W currently includes an optical gas imaging
(OGI) method (see 40 CFR 98.234(a)(1)) and Method 21 (40 CFR
98.234(a)(2)) in the subpart W list of monitoring methods. While there
are differences in the application of the methods between the current
subpart W and the final NSPS subpart OOOOa,\9\ necessitating this
revision, current use of OGI and Method 21 for purposes of subpart W
provides support that the methods at issue provide reliable data for
use in subpart W emissions reporting.
---------------------------------------------------------------------------

\9\ See section II.C of this preamble.
---------------------------------------------------------------------------

This final rule incorporates the monitoring methods finalized in
the NSPS subpart OOOOa with some changes from proposal. To the extent
the specifics of how this final subpart W rule is adding method(s) in
accordance with the NSPS subpart OOOOa differ from the specifics in the
subpart W proposal, as explained further in section II.C of this
preamble, these changes are consistent with the purpose detailed in the
proposed rule and were made to ensure only those portions of the final
NSPS subpart OOOOa that are essential to the integrity of the methods
are referenced within the requirements of subpart W. This final rule
revises applicable components subject to subpart W to include all
components subject to the final NSPS subpart OOOOa, except for the
finalized as proposed exclusion of certain components, as further
detailed in section II.D of this preamble. The EPA notes that while we
finalized the reference to the NSPS subpart OOOOa with certain
exceptions regarding applicable components as proposed, the final NSPS
subpart OOOOa definition of fugitive emission components was narrower
in scope than that rule's proposal. This final rule also includes
revisions, with some changes from proposal as detailed in Sections
II.B, II.D, II.E, and II.F of this preamble, to how reporters must use
the data obtained in accordance with the methods finalized in the NSPS
subpart OOOOa for subpart W reporting.
Although the EPA's own reasoned consideration and its assessment of
public comment have resulted in some modifications to the final rule,
as explained further in sections II.B through II.F of this preamble,
such changes reflect the goals and alternatives in the EPA's original
proposal, and the proposed rule ensured that interested parties were
``fairly apprised'' of the elements ultimately included in this final
rulemaking. See, e.g., United Steelworkers of America v. Schuylkill
Metals, 828 F.2d 314 (5th Cir. 1987).
While some changes occurred to the NSPS subpart OOOOa requirements
from proposal to final in that rulemaking, including changes to the
substance of the monitoring methods and the fugitive emission component
definition, those substantive changes are out of scope of this subpart
W rulemaking that is intended to align with the final NSPS subpart
OOOOa requirements; however, commenters were provided full notice and
opportunity to comment within that NSPS subpart OOOOa rulemaking, as
fully explained within those proposed and final preambles, the EPA's
response to comments, and the docket of that action.\10\
---------------------------------------------------------------------------

\10\ Docket ID No. EPA-HQ-OAR-2010-0505.
---------------------------------------------------------------------------

The commenter is correct that the EPA did not consider changes that
may be made to the final NSPS subpart OOOOa through the judicial review
process. Any such potential, future changes are premature to consider
at this time.

B. Summary of Final Amendments to the Requirement To Use the
Calculation Methodology Based on Equipment Leak Surveys

1. Summary of Final Amendments
As noted in section I.B of this preamble, subpart W presently
requires reporters with sources in certain industry segments to use the
calculation methodology based on population counts according to 40 CFR
98.233(r). For example, reporters in the Onshore Petroleum and Natural
Gas Production and the Onshore Petroleum and Natural Gas Gathering and
Boosting industry segments are required either to count the number of
equipment components of each type (e.g., valve, connector, open-ended
line, or pressure relief valve) or to count the number of major
equipment at the facility and then calculate the number of equipment
components of each type using default average component counts for each
piece of major equipment in Tables W-1B and W-1C to subpart W (40 CFR
98.233(r)(2)). The resulting equipment component counts are then
multiplied by default ``population emission factors'' in Table W-1A to
subpart W to calculate emissions from equipment leaks.
Other reporters are required to use the calculation methodology
based on equipment leak surveys according to 40 CFR 98.233(q) using one
of the monitoring methods in 40 CFR 98.234(a). For example, reporters
in the Onshore Natural Gas Transmission Compression industry segment
must conduct at least one equipment leak survey in a calendar year for
the compressor and non-compressor components in gas service listed in
Table W-3A to subpart W. These reporters then use the number of leaking

[[Page 86496]]

components in the calendar year, the average amount of time each
component was leaking, and the default ``leaker emission factors'' in
Table W-3A to subpart W to calculate emissions according to Equation W-
30.
The EPA is finalizing the proposal to apply the calculation
methodology based on equipment leak surveys in 40 CFR 98.233(q) to
additional reporters in subpart W. Specifically, reporters in any
subpart W industry segment with a well site(s) and/or compressor
station(s) required to conduct fugitive emissions monitoring to comply
with the NSPS subpart OOOOa will be required to use the calculation
methodology based on equipment leak surveys for those components \11\
under subpart W using the new monitoring methods consistent with the
NSPS subpart OOOOa (see section II.C of this preamble). While these are
new calculation methodology and equipment leak survey requirements for
the subpart W reporting of these components, reporters may meet the
survey requirements by counting the actual number of components with
fugitive emissions identified through implementation of the NSPS
subpart OOOOa as leaks for purposes of subpart W and use those counts
with the calculation methodologies specified in 40 CFR 98.233(q) to
determine equipment leak emissions for those components.
---------------------------------------------------------------------------

\11\ See section II.D of this preamble.
---------------------------------------------------------------------------

We received extensive comment regarding the proposed revisions to
require facilities in the Onshore Natural Gas Processing industry
segment to use the results of the leak surveys conducted to comply with
the NSPS subpart OOOOa equipment leak requirements for reporting under
subpart W. We are still reviewing those comments and are not taking
final action on those revisions at this time.
For other sources of equipment leaks (i.e., those not subject to
the NSPS subpart OOOOa well site or compressor station fugitive
emissions standards),\12\ the amended subpart W requirements depend on
whether the component types are currently required to be reported using
the calculation methodology based on equipment leak surveys (40 CFR
98.233(q)) or the calculation methodology based on population counts
(40 CFR 98.233(r)). For components at facilities in industry segments
that are currently required to use the calculation methodology based on
equipment leak surveys to comply with subpart W, the EPA is finalizing
as proposed that reporters must continue to conduct equipment leak
surveys as required by subpart W but may use any monitoring method in
40 CFR 98.234(a). If they use either of the two new monitoring methods
in 40 CFR 98.234(a)(6) or (7) that are consistent with the NSPS subpart
OOOOa, then in addition to surveying the components currently subject
to the survey requirements in subpart W, they must also survey all
other components that are fugitive emissions components in the NSPS
subpart OOOOa, with limited exceptions, as specified in 40 CFR 98.232
(see sections II.C and II.D of this preamble). If they use any of the
monitoring methods currently in 40 CFR 98.234(a)(1) through (5), then
in addition to surveying the components currently subject to the survey
requirements in subpart W, they may elect to survey the other
components specified in 40 CFR 98.232.
---------------------------------------------------------------------------

\12\ Except for onshore natural gas processing and natural gas
distribution.
---------------------------------------------------------------------------

For components at facilities in industry segments that are
currently required to use the calculation methodology based on
population counts, the reporter may continue to use that methodology.
Alternatively, the EPA is finalizing as proposed the option that the
reporter may elect to use the calculation methodology based on
equipment leak surveys (40 CFR 98.233(q)(1)(iv)) in lieu of the
calculation methodology based on population counts (40 CFR 98.233(r)).
If this option is selected, then the reporter must use any of the
monitoring methods in 40 CFR 98.234(a). If they use a monitoring method
in 40 CFR 98.234(a)(6) or (7), then they must survey all components
that would otherwise be subject to the calculation methodology based on
population counts, and they must also survey all other components that
are fugitive emissions components in the NSPS subpart OOOOa, with
limited exceptions, as specified in 40 CFR 98.232. If they use any of
the monitoring methods currently in 40 CFR 98.234(a)(1) through (5),
then in addition to surveying the components that would otherwise be
subject to the calculation methodology based on population counts, they
may elect to survey the other specified in 40 CFR 98.232. The intent of
the new provision in 40 CFR 98.233(q)(1)(iv) is to allow flexibility
for reporters currently required to use the calculation methodology
based on population counts for components that are not subject to the
NSPS subpart OOOOa well site or compressor station fugitive emissions
standards.
The burden of using the calculation methodology based on equipment
leak surveys will be similar to using the existing subpart W
calculation methodology based on population counts, and the results
will be more representative of the number of leaks at the facility than
the calculation methodology based on population counts. Table 2 of this
preamble provides a summary of the equipment leak calculation
methodologies and monitoring methods that will be available to each
industry segment covered by subpart W under these amendments.

Table 2--Final Equipment Leak Requirements for Subpart W
----------------------------------------------------------------------------------------------------------------
Components subject to 40 CFR 60.5397a Components not subject to 40 CFR
of the NSPS subpart OOOOa 60.5397a of the NSPS subpart OOOOa
-------------------------------------------------------------------------------
Subpart W industry segments \a\ Subpart W Subpart W
Subpart W monitoring method Subpart W monitoring method
calculation for leak detection calculation for leak detection
methodology \b\ \c\ methodology \d\
----------------------------------------------------------------------------------------------------------------
Onshore Petroleum and Natural Leak survey (40 OGI or Method 21 Leak survey (40 Any method in 40
Gas Production. CFR 98.233(q)). as specified in CFR 98.233(q)); CFR 98.234(a).
the NSPS subpart OR N/A.
OOOOa. Population count
(40 CFR
98.233(r)).
Onshore Natural Gas Transmission Leak survey (40 OGI or Method 21 Leak survey (40 Any method in 40
Compression; Underground CFR 98.233(q)). as specified in CFR 98.233(q)) CFR 98.234(a).
Natural Gas Storage: Storage the NSPS subpart \e\.
stations, gas service. OOOOa.

[[Page 86497]]

Underground Natural Gas Storage: Leak survey (40 OGI or Method 21 Leak survey (40 Any method in 40
Storage wellheads, gas service. CFR 98.233(q)). as specified in CFR 98.233(q)); CFR 98.234(a).
the NSPS subpart OR N/A.
OOOOa. Population count
(40 CFR
98.233(r)).
LNG \f\ Storage: LNG Service; Leak survey (40 OGI or Method 21 Leak survey (40 Any method in 40
LNG Import and Export CFR 98.233(q)). as specified in CFR 98.233(q)). CFR 98.234(a).
Equipment: LNG Service. the NSPS subpart
OOOOa.
LNG Storage: Gas Service; LNG Leak survey (40 OGI or Method 21 Leak survey (40 Any method in 40
Import and Export Equipment: CFR 98.233(q)). as specified in CFR 98.233(q)); CFR 98.234(a).
Gas Service. the NSPS subpart OR N/A.
OOOOa. Population count
(40 CFR
98.233(r)) g.
----------------------------------------------------------------------------------------------------------------
a Onshore Natural Gas Processing and Natural Gas Distribution are not included in this table because we are not
revising the calculation methodology and monitoring method for leak detection for these industry segments in
this action. The current requirements are still applicable to components in these industry segments.
b The term ``calculation methodology'' refers to the procedures used to calculate emissions (e.g., ``calculation
methodology based on equipment leak surveys'' refers to the methodology described in 40 CFR 98.233(q)) and
``monitoring method'' refers to the technology, test method, or other method of determining whether an
individual component is leaking (see 40 CFR 98.234(a)).
c OGI as specified in the NSPS subpart OOOOa is codified in subpart W at 40 CFR 98.234(a)(6) and Method 21 as
specified in the NSPS subpart OOOOa is codified in subpart W at 40 CFR 98.234(a)(7).
d ``Any method in 40 CFR 98.234(a)'' means any of the following methods: OGI as specified in 40 CFR 60.18 (40
CFR 98.234(a)(1)), Method 21 with a leak definition of 10,000 parts per million by volume (ppmv)(40 CFR
98.234(a)(2)), Infrared laser beam illuminated instrument (40 CFR 98.234(a)(3)), Acoustic leak detection
device (40 CFR 98.234(a)(5)), OGI as specified in the NSPS subpart OOOOa (40 CFR 98.234(a)(6)) or Method 21
with a leak definition of 500 ppmv (40 CFR 98.234(a)(7)).
e Reporting is required for emissions from valves, connectors, open-ended lines, pressure relief valves, and
meters but is optional for instruments and other components unless the reporter elects to use either OGI or
Method 21 as specified in the NSPS subpart OOOOa (40 CFR 98.234(a)(6) or (7)), in which case reporting is also
required for instruments and other fugitive emissions components.13
f LNG = liquefied natural gas.
g Reporting is only required for emissions from vapor recovery compressors if this option is chosen.

2. Summary of Comments and Responses

Comment: Several commenters stated that facilities in the Onshore
Petroleum and Natural Gas Production and Onshore Petroleum and Natural
Gas Gathering and Boosting industry segments should not be required to
use the NSPS subpart OOOOa results to calculate GHG emissions to comply
with subpart W. They stated that the proposed NSPS subpart OOOOa leak
detection program was limited to one monitoring method, which is
inconsistent with the current flexibility for reporters conducting
equipment leak surveys for subpart W to choose any monitoring method
within 40 CFR 98.234(a). The commenters asserted that this requirement
will result in some subpart W reporters having to manage multiple
equipment leak survey programs within one facility, especially if the
facility is located within a state with a different leak detection
program, and this result is overly burdensome. In addition, the
commenters stated that the equipment leak survey results will be
internally inconsistent if they use different methods, and a facility's
emissions could appear to increase one year simply because the number
of sites subject to the NSPS subpart OOOOa increases, requiring the
reporter to use the OGI method in the NSPS subpart OOOOa for an
increased number of components. Instead, the reporters suggested, use
of the calculation methodology based on equipment leak surveys,
including the selection of monitoring method within 40 CFR 98.234(a),
should be voluntary for all facilities not currently required to
conduct leak surveys under subpart W.
---------------------------------------------------------------------------

\13\ See section II.D.1 of this preamble for the EPA's decision
on the final subpart W requirements for components not subject to 40
CFR 60.5397a of the NSPS Subpart OOOOa from affected facilities in
the Onshore Natural Gas Transmission Compression industry segment,
and storage stations in gas service within the Underground Natural
Gas Storage industry segment.
---------------------------------------------------------------------------

In contrast, another commenter requested that the EPA require all
subpart W reporters to detect leaks using direct equipment leak
detection technologies such as OGI. The commenter stated that leak
detection using OGI can produce more accurate data than current subpart
W methods and that the EPA's approach is consistent with the EPA's
stated goals to enhance the rigor and transparency of subpart W data.
In addition, the commenter stated that applying OGI detection uniformly
across subpart W sources will produce data that is readily comparable
across facilities and will allow the EPA to assess the performance of
facilities over time.
Response: For facilities that have affected sources required to
conduct fugitive emissions monitoring to comply with the NSPS subpart
OOOOa well site or compressor station fugitive emissions standards, the
EPA is finalizing as proposed that these components must meet the
subpart W calculation methodology based on equipment leak survey
requirements. In practice, this means reporters can meet these
requirements by counting the actual number of components with fugitive
emissions identified through implementation of the NSPS subpart OOOOa
as leaks for purposes of subpart W. This requirement will achieve the
EPA's stated goal of alignment with the NSPS subpart OOOOa and will
assist in providing the EPA with a greater understanding of emission
reductions.
At this time, we are not requiring all subpart W facilities to
perform a leak detection survey using direct equipment leak detection
technologies such as OGI. Rather this action is focused on aligning the
subpart W requirements, to the extent possible, with the NSPS subpart
OOOOa fugitive emission requirements so that facilities may use the
results of the NSPS subpart OOOOa-required

[[Page 86498]]

fugitive emissions monitoring surveys to fulfill subpart W
requirements.
The EPA does not agree that a subpart W requirement to use the
results of a previously completed leak survey within the subpart W
calculation methodology based on equipment leak surveys will result in
an undue burden to these reporters. For components subject to the NSPS
subpart OOOOa well site or compressor station fugitive emissions
standards, there is little to no burden associated with using the
number of components found to have fugitive emissions as the number of
leaking components in the subpart W calculation methodology based on
equipment leak surveys. The only additional piece of information these
reporters need to calculate emissions is the amount of time each
component was leaking, and this is a straightforward determination
based on the dates of the equipment leak surveys. See section IV.B of
this preamble for information and responses to comments related to the
EPA's burden estimates for these amendments.

C. Summary of Final Amendments to Monitoring Methods

1. Summary of Final Amendments
The EPA is finalizing the proposal to add OGI, as specified in the
NSPS subpart OOOOa, to the list of monitoring methods in 40 CFR
98.234(a). The addition of this specific OGI method to subpart W at 40
CFR 98.234(a)(6) aligns the methods in the two rulemakings and allows
subpart W facilities to directly use information derived from the
implementation of the fugitive emissions monitoring conducted under the
NSPS subpart OOOOa to calculate and report equipment leak emissions to
the GHGRP.
The EPA has made changes to the proposed subpart W amendments after
consideration of public comment and/or to be consistent with the final
revisions made to the corresponding proposed NSPS subpart OOOOa
specifications. The proposed subpart W amendments cross-referenced the
proposed 40 CFR 60.5397a(b) through (e) and (g) through (i), which
included the requirements to: (1) Develop a corporate-wide fugitive
emissions monitoring plan; (2) develop a site-specific monitoring plan;
(3) observe each fugitive emissions component for fugitive emissions;
(4) conduct monitoring surveys semiannually; and (5) adjust the
frequency of monitoring surveys based on the percent of the fugitive
emissions components detected to have fugitive emissions. For the
reasons described below, the final amendments to subpart W for the OGI
method cross-reference a portion of the NSPS subpart OOOOa requirements
to develop the fugitive emissions monitoring plan and the NSPS subpart
OOOOa requirements to observe each fugitive emissions component for
fugitive emissions.
The final NSPS subpart OOOOa requires an emissions monitoring plan
that covers the affected sources within each company-defined area. This
monitoring plan includes information about the survey frequency,
monitoring method and instrument selected, repair procedures and
timeframes, recordkeeping, and procedures for calibrating the
monitoring instrument and verifying that it can detect fugitive
emissions at the required levels.
For the final subpart W amendments, the EPA evaluated the NSPS
subpart OOOOa requirements for the monitoring plan along with the level
of detail in the existing monitoring methods in 40 CFR 98.234(a). The
EPA determined that information about the monitoring instrument
selected and procedures for calibrating the monitoring instrument and
verifying that it can detect fugitive emissions at the required levels
is necessary to ensure the OGI monitoring is performed correctly.
Therefore, the new OGI detection method in subpart W does include the
NSPS subpart OOOOa requirement to develop a monitoring plan that
describes the OGI instrument (40 CFR 60.5397a(c)(3)) and how the OGI
survey will be conducted to ensure that fugitive emissions can be
imaged effectively (40 CFR 60.5397a(c)(7)). The EPA determined that the
NSPS subpart OOOOa survey frequency should not be cross-referenced in
subpart W because cross-referencing these frequencies would override
the current annual survey requirement in subpart W regardless of
whether the use of the new monitoring methods is voluntary or
mandatory. The EPA determined that the repair procedures and timeframes
should not be cross-referenced because subpart W is part of a reporting
program and does not require repair of detected leaks. The EPA also
determined that the NSPS subpart OOOOa recordkeeping requirements
should not be cross-referenced because they include provisions that are
not applicable to greenhouse gas reporting, such as records related to
repairs. Applicable recordkeeping requirements for all leak detection
methods in subpart W are specified at 40 CFR 98.237.
The final site-specific monitoring plan in the NSPS subpart OOOOa
includes three items specific to the OGI method: (1) A sitemap; (2) a
defined observation path for the operator that ensures that all
fugitive emissions components are within sight of the path; and (3) a
monitoring plan for difficult-to-monitor and unsafe-to-monitor fugitive
emissions components. The EPA has reviewed these elements as well and
determined not to cross-reference these three elements in subpart W.
The observation path and the sitemap ensure that the OGI operator
visualizes all of the components that must be surveyed, analogous to
requirements in some rules to identify all of the equipment that must
be monitored using Method 21 (e.g., 40 CFR 60.486a(e)(1) and 40 CFR
63.162(c)). Subpart W does not include these identification
requirements as part of the Method 21 requirements in 40 CFR
98.234(a)(2), so it would be inconsistent to require the observation
path as part of the new OGI method. However, while we are not
finalizing the explicit requirement to define the observation path the
operator will follow during their survey, we do note that 40 CFR part
98, subpart A requires a written GHG monitoring plan for all facilities
subject to the GHGRP (see 40 CFR 98.4(g)(5)). Defining an observation
path is one item that could be included in the GHG monitoring plan to
meet the requirement to describe ``procedures and methods that are used
for quality assurance . . . of all . . . other instrumentation'' used
to collect data to comply with the GHGRP (40 CFR 98.3(g)(5)(i)(C)).
The EPA is finalizing the proposed requirement to observe each
fugitive emissions component for fugitive emissions (40 CFR
60.5397a(e)).\14\ The EPA considers surveying all fugitive emissions
components (instead of just the current list of equipment in subpart W
for a particular industry segment) to be an inherent part of the NSPS
subpart OOOOa OGI method.
---------------------------------------------------------------------------

\14\ See section II.D.1 of this preamble for details regarding
the specific NSPS subpart OOOOa-defined fugitive emissions
components that are not considered sources of ``equipment leaks'' in
subpart W.
---------------------------------------------------------------------------

The EPA is not cross-referencing the semi-annual (well sites) and
quarterly (compressor stations) monitoring frequencies of the final
NSPS subpart OOOOa. As noted above, cross-referencing these monitoring
frequencies would override the current annual survey requirement in
subpart W regardless of whether the use of the new monitoring methods
is voluntary or mandatory. The EPA is instead clarifying that for
reporters with components subject to the NSPS subpart OOOOa well site
or compressor station fugitive emissions requirements and for which
surveys are required or elected, the results from each equipment leak

[[Page 86499]]

survey must be used to calculate GHG emissions for subpart W. The EPA
is further clarifying that it is not our intent to require reporters
that are not subject to the NSPS subpart OOOOa well site or compressor
station fugitive emissions requirements to conduct more than one
equipment leak survey in a calendar year for purposes of GHGRP
reporting, solely because they choose to use the OGI method. The EPA
also notes that the proposed NSPS subpart OOOOa provisions for
adjusting the frequency of equipment leak surveys based on the percent
of the fugitive emissions components detected to have fugitive
emissions were not included in the final NSPS subpart OOOOa and
therefore are not cross-referenced in the final subpart W revisions.
Finally, consistent with the final NSPS subpart OOOOa, the EPA is
finalizing the use of Method 21 as an alternative monitoring method to
OGI (as specified in the NSPS subpart OOOOa) at 40 CFR 98.234(a)(7). As
the EPA noted in the preamble for this proposed revision to subpart W
(81 FR 4989; Jan. 29, 2016), the NSPS subpart OOOOa proposal identified
EPA Method 21 as a monitoring method that may also be used to conduct
resurveys of repaired components when fugitive emissions are detected
(80 FR 56612 (well sites) and 80 FR 56612 (compressor stations)), and
the EPA requested comment on including in the final rule the use of
Method 21 for fugitive emissions monitoring as well (80 FR 56638 (well
sites) and 80 FR 56643 (compressor stations)). The EPA also made clear
in the preamble to these proposed revisions to subpart W that,
consistent with the goal of aligning the methods in the two rulemakings
(subpart W and the NSPS subpart OOOOa), the EPA expected that the final
amendments to subpart W for monitoring methods would reference the
final version of the method(s) in the NSPS subpart OOOOa, including any
changes made to the NSPS subpart OOOOa in response to comments on the
proposed monitoring method(s) (81 FR 4991). Accordingly, the EPA is
finalizing the use of Method 21 as an alternative monitoring method to
OGI (as specified in the NSPS subpart OOOOa) at 40 CFR 98.234(a)(7).
For reporters that elect to use Method 21 as specified in 40 CFR
98.234(a)(7), either for components that are subject to the NSPS
subpart OOOOa well site or compressor station fugitive emissions
requirements or voluntarily, a leak is detected if an instrument
reading of 500 ppmv or greater is measured. As explained in this
section regarding the NSPS subpart OOOOa OGI monitoring method, we
determined that the requirements in 40 CFR 60.5397a(b) are consistent
with the requirements of subpart W regarding the development of an
emissions monitoring plan; this monitoring plan is required to include
verification that the procedures of Method 21 are followed consistent
with the requirements in 40 CFR 60.5397a(c)(8). Also, as with the NSPS
subpart OOOOa OGI method, the EPA is requiring in subpart W observation
of each fugitive emissions component for fugitive emissions consistent
with the requirements in 40 CFR 60.5397a(e); the EPA considers
surveying all fugitive emissions components to be an inherent part of
the NSPS subpart OOOOa Method 21 alternative to the OGI method and is
consistent with requirements in subpart W to conduct a complete
equipment leak survey.
At this time, the EPA is not adding any other monitoring methods to
subpart W. We will continue to evaluate equipment leak detection
methods and technologies \15\ and may amend subpart W to allow the use
of additional methods in the future.
---------------------------------------------------------------------------

\15\ For example, the EPA has issued a voluntary request for
information inviting all parties to provide information on
innovative technologies to detect, measure, and mitigate emissions
from the oil and gas industry. See 81 FR 46670 (July 18, 2016).
---------------------------------------------------------------------------

2. Summary of Comments and Responses
Comment: Many commenters disagreed with the EPA's proposal to add
only the OGI method as specified in the NSPS subpart OOOOa to 40 CFR
98.234(a) of subpart W. They asserted that while OGI is an effective
method for finding the majority of emissions more quickly than EPA
Method 21, it is also a costly technology that cannot quantify
emissions. The commenters stated that OGI has other limitations,
especially in non-ideal weather conditions; one commenter also stated
that use of the OGI camera requires a hot work permit in many
instances.
Response: Due to similar comments on the proposed NSPS subpart
OOOOa, the final NSPS subpart OOOOa provides owners and operators of
new, modified, or reconstructed well sites or compressor stations with
the option of using EPA Method 21 with a repair threshold of 500 ppmv
if they elect not to use the OGI method (40 CFR 60.5397a). As discussed
in section II.C.1 of this preamble, the final amendments to subpart W
provide for the use of EPA Method 21 where a leak is detected for
purposes of subpart W if an instrument reading of 500 ppmv or greater
is measured. This amendment to subpart W maintains the alignment with
the NSPS subpart OOOOa well site and compressor station fugitive
emissions monitoring requirements, so that reporters can directly use
the NSPS subpart OOOOa monitoring results to count the number of leaks
under subpart W.
Comment: Many commenters stated that leak detection technology is a
rapidly growing field and there are many alternative technologies and
new technologies in development that may be more accurate and less
costly than OGI. Some commenters noted that recent emphasis on
CH4 emissions has caused vendors to focus on CH4
leak detection. Therefore, according to the commenters, some of those
technologies may be better options for the purpose of reporting
emissions under subpart W than other leak detection programs. The
commenters stated that the EPA's proposal to limit leak surveys to a
prescriptive list of methods could limit development of these new
technologies.
Commenters provided a variety of suggestions for incorporation of
new and emerging technologies into subpart W. Three commenters
recommended that the EPA establish a clear process for industry,
vendors, and/or the EPA to evaluate the efficacy and accuracy of
alternative CH4 monitoring technologies and approve the use
of those technologies. One of these commenters noted that any
technology evaluation process should be straightforward and more
streamlined than the years-long process needed to approve emissions
control devices or continuous emissions monitoring systems. Another of
these commenters suggested that the EPA model a technology evaluation
process after the vendor testing program for flares and combustors, in
which the EPA sets testing protocols and vendors demonstrate that they
can meet specific criteria. A fourth commenter suggested that the EPA
develop a pilot program to incentivize the accelerated development and
deployment of advanced monitoring and detection technologies and to
compare the effectiveness of these approaches to periodic, OGI-based
surveys.
Response: The EPA agrees with the commenters that emissions
monitoring in the oil and gas sector is a field of emerging technology,
and major advances are expected in the near future. We are seeing a
rapidly growing push to develop and produce low-cost monitoring
technologies to find fugitive CH4 emissions sooner and at
lower levels than current technology allows, thus enhancing the ability
of operators to detect fugitive emissions. The EPA agrees that
continued development of these cost-effective technologies is

[[Page 86500]]

important. However, the EPA does not have enough information at this
time to evaluate specific technologies to determine if they are
equivalent to or better than the monitoring methods provided in and
being added to 40 CFR 98.234(a). The EPA may evaluate new options as
they become available and determine if they are equivalent to existing
methods. For example, the final NSPS subpart OOOOa provides a process
for the EPA to determine that a technology can be used as an
``alternative means of emission limitation.'' \16\ As technologies are
approved through this process, the EPA anticipates that it would
contemporaneously incorporate these monitoring methods in subpart W to
ensure continued alignment between the NSPS subpart OOOOa and subpart W
through future notice and comment rulemaking.
---------------------------------------------------------------------------

\16\ See 40 CFR 60.5398a titled ``What are the alternative means
of emission limitations for GHG and volatile organic compounds from
well completions, reciprocating compressors, the collection of
fugitive emissions components at a well site and the collection of
fugitive emissions components at a compressor station?''
---------------------------------------------------------------------------

Comment: Multiple commenters addressed the proposed requirement to
consider any fugitive emissions observed using OGI during the NSPS
subpart OOOOa fugitive emissions monitoring as a leak for purposes of
subpart W. Most of these commenters objected to the proposal and stated
that the definition of a leak for subpart W should be 10,000 ppmv,
regardless of the monitoring method used. These commenters asserted
that setting the leak definition consistent with the current methods in
subpart W would ensure that the new methods result in new information
being collected and reported consistently within a facility and
consistent with the equipment leak data already in the GHGRP. One
commenter noted that defining a leak as emissions at a set
concentration is much less subjective than defining a leak as any
emissions observed with OGI, and setting the leak definition at 10,000
ppmv rather than a lower concentration would allow operators to focus
on finding (and fixing) large leaks instead of spending resources to
identify many small leaks that do not contribute much to overall
emissions. Another commenter noted that a leak definition of 10,000
ppmv is consistent with the leaker emission factors currently provided
in subpart W as well as the proposed new leaker emission factors.
One commenter agreed with a subpart W leak being defined as any
fugitive emissions observed using OGI during the NSPS subpart OOOOa
fugitive emissions monitoring or emissions above 500 ppmv detected via
EPA Method 21, but the commenter asserted that the leak definition for
any new or emerging technologies used in a voluntary leak survey should
be 5,000 ppmv. The commenter noted that these new technologies are
likely to be more sensitive and detect emissions at lower
concentrations than OGI, and companies that are employing more accurate
instruments should not be ``penalized'' by having to report more leaks
than if they used OGI.
Response: Subpart W already includes OGI and EPA Method 21 with a
leak definition of 10,000 ppmv for use by reporters currently required
to conduct leak surveys for subpart W. The final amendments also
provide for use of these methods by reporters electing to conduct an
equipment leak survey voluntarily (i.e., for sources currently required
to use the calculation methodology based on population counts that are
not subject to the NSPS subpart OOOOa well site or compressor station
fugitive emissions requirements). The EPA is adding the methods used
for fugitive emissions monitoring in the NSPS subpart OOOOa to 40 CFR
98.234(a), as approved monitoring methods for subpart W leak surveys.
This addition facilitates alignment with the NSPS subpart OOOOa and
will allow reporters to directly use the NSPS subpart OOOOa monitoring
results to count the number of leaks under subpart W. Finally, as noted
in section II.C.1 of this preamble, the EPA is not adding any other
monitoring methods to subpart W at this time, so it is not necessary to
consider a different leak definition for new or emerging technologies.
The EPA disagrees that using a leak definition other than 10,000
ppmv would undermine the quality of the data reported to the GHGRP.
First, subpart W currently includes an OGI monitoring method in 40 CFR
98.234(a)(1). While this monitoring method allows facilities to screen
the observed leaks using Method 21, it does not require it, and we do
not expect that many reporters actively use dual monitoring methods in
their leak surveys to screen all OGI-detected leaks using Method 21.
Second, we are also finalizing, consistent with the final NSPS
subpart OOOOa rule, the ability to use Method 21 with a leak definition
of 500 ppmv as an alternative to the OGI method. We agree with
commenters that the average emissions rate of leaks identified using
Method 21 with a leak definition of 500 ppmv would be less than the
average emissions rate of leaks identified using Method 21 with a leak
definition of 10,000 ppmv. To address this issue, we are also
finalizing separate leaker factors that are appropriate for reporters
using this alternative method (Method 21 with a leak definition of 500
ppmv). As described in further detail in section II.E.1 of this
preamble and in the document ``Greenhouse Gas Reporting Rule: Technical
Support for Leak Detection Methodology Revisions and Confidentiality
Determinations for Petroleum and Natural Gas Systems Final Rule'' in
Docket ID No. EPA-HQ-OAR-2015-0764, these additional emission factors
were developed from the same data set that was used to develop the
original population emission factors and the proposed leaker
factors.\17\ Therefore, this additional Method 21 monitoring method,
which includes a different leak definition than the other Method 21-
based method already available in subpart W at 40 CFR 98.234(a)(2), has
been specifically considered and new emission factors are provided in
the final rule to ensure that this new monitoring method's leak
definition will not undermine the quality of the emissions reported
under subpart W.
---------------------------------------------------------------------------

\17\ This data set was developed from monitoring conducted using
Method 21 with a leak definition of 10,000 ppmv.
---------------------------------------------------------------------------

If the EPA did not provide the ability for reporters to use the
monitoring methods required by the NSPS subpart OOOOa within subpart W,
reporters would not be able to use the NSPS subpart OOOOa monitoring
results directly; instead, they would have to measure each occurrence
of fugitive emissions individually to determine if it is a leak for
purposes of subpart W, which would increase the burden for those
reporters.

D. Summary of Final Amendments for Components To Be Surveyed

1. Summary of Final Amendments
The EPA proposed to align the subpart W equipment components with
the NSPS subpart OOOOa definition of ``fugitive emissions component,''
with certain exceptions.\18\ After careful consideration of comments,
the EPA is finalizing that provision consistent with the final NSPS
subpart OOOOa definition of ``fugitive emissions component'' with
certain exceptions consistent with the proposal, as described in
further detail in this section below. A ``fugitive emissions
component'' is defined in 40 CFR 60.5430a of the final NSPS subpart

[[Page 86501]]

OOOOa to include any component that has the potential to emit fugitive
emissions of CH4 or volatile organic compounds at a well site or
compressor station, including but not limited to valves, connectors,
pressure relief devices, open-ended lines, flanges, covers and closed
vent systems not subject to 40 CFR 60.5411a, thief hatches or other
openings on a controlled storage vessel not subject to 40 CFR 60.5395a,
compressors, instruments, and meters. Devices that vent as part of
normal operations, such as natural gas-driven pneumatic controllers or
natural gas-driven pumps, are not fugitive emissions components, as the
natural gas discharged from the device's vent is not considered a
fugitive emission. Emissions originating from a location other than the
vent are considered fugitive emissions.
---------------------------------------------------------------------------

\18\ See 81 FR 4994 for a discussion of the differences between
the proposed definition of ``fugitive emissions component'' and the
proposed components subject to equipment leak reporting in subpart
W.
---------------------------------------------------------------------------

As noted in the preamble to the proposed subpart W amendments, some
of the components listed in the NSPS subpart OOOOa definition of
fugitive emissions component are already included as part of the
subpart W equipment leaks calculation methodologies (either based on
equipment leak surveys or on population counts), while other fugitive
emissions components are specifically addressed in other calculation
methodologies in subpart W. As part of developing the proposed
amendments for subpart W, we compared the list of components in the
NSPS subpart OOOOa proposed definition of fugitive emissions component
with the current methodologies in subpart W to identify which fugitive
emissions components were already covered by an existing requirement in
subpart W and which fugitive emissions components would be specifically
covered in subpart W when using the OGI method as specified in the
proposed NSPS subpart OOOOa.
Table 3 of this preamble provides a summary of the applicable
subpart W calculation methodologies for components subject to the
fugitive emissions standards in the final NSPS subpart OOOOa. The basis
for excluding certain components that are subject to the fugitive
emissions standards in the final NSPS subpart OOOOa from the final
equipment leak survey requirements in 40 CFR 98.233(q) is discussed
below.

Table 3--Final Subpart W Calculation Methodology Requirements for Components Subject to the Fugitive Emissions
Standards in NSPS Subpart OOOOa
----------------------------------------------------------------------------------------------------------------
Applicable GHG emissions calculation methodology in subpart W by industry
segment for components that are also subject to the fugitive emissions
standards for well sites or compressor stations in the NSPS subpart
Type of component in definition of OOOOaa
fugitive emissions component and --------------------------------------------------------------------------
subject to the fugitive emissions Onshore petroleum and
standards in NSPS subpart OOOOa natural gas production, Underground natural gas Onshore natural gas
onshore petroleum and storage, LNG storage, transmission
natural gas gathering LNG import and export compression
and boosting equipment
----------------------------------------------------------------------------------------------------------------
Thief hatches or other openings on 40 CFR 40 CFR 40 CFR
controlled storage vessels not 98.233(j). 98.233(q) (use factor 98.233(k).
subject to 40 CFR 60.5395a. for ``other''
components in Tables W-
4A, W-5A, and W-6A to
subpart W) b.
Compressors, excluding emissions from 40 CFR 40 CFR 40 CFR
vents that are part of normal 98.233(q) for blowdown 98.233(o) for blowdown 98.233(o) for blowdown
operations (i.e., wet seal oil valve leakage and valve leakage and valve leakage and
degassing vents). isolation valve isolation valve isolation valve
leakage (use factor leakage from leakage from
for ``open-ended centrifugal centrifugal
line'' in Table W-1E compressors. compressors
to subpart W) b. 40 CFR 40 CFR
40 CFR 98.233(p) for blowdown 98.233(p) for blowdown
98.233(q) for all valve leakage, valve leakage,
other leaks from the isolation valve isolation valve
housing (use factor leakage, and rod leakage, and rod
for ``other'' packing venting from packing venting from
components in Table W- reciprocating reciprocating
1E to subpart W) b. compressors. compressors
40 CFR 40 CFR 40 CFR
98.233(p)(10) for rod 98.233(q) for all 98.233(q) for all
packing venting from other leaks from the other leaks from the
reciprocating housing (use factor housing (use factor
compressors. for ``other'' for ``other''
components in Table W- components in Tables W-
4A, W-5A, and W-6A to 3A, to subpart W) b
subpart W) b.
All other components................. 40 CFR 40 CFR 40 CFR
98.233(q) (use factors 98.233(q) (use factors 98.233(q) (use factors
for applicable for applicable for applicable
component types in component types in component types in
Table W-1E to subpart Tables W-4A, W-5A, and Table W-3A to subpart
W) b. W-6A to subpart W) c. W) c.
----------------------------------------------------------------------------------------------------------------
\a\ Onshore Natural Gas Processing and Natural Gas Distribution are not included in this table because we are
not revising the calculation methodology and monitoring method for leak detection for these industry segments
in this action. The current requirements are still applicable to components in these industry segments.
\b\ The leaker emission factors for ``other'' components are being finalized in this revision.
\c\ The leaker emission factors include both factors in the current rule and factors that are being finalized in
this action, depending on the specific component and the monitoring method used to conduct the survey, as
discussed in section II.E.1 of this preamble.

At proposal, we determined that the subpart W calculation
methodology for storage tanks in 40 CFR 98.233(j) already includes
emissions from thief hatches or other openings on storage vessels in
the Onshore Petroleum and Natural Gas Production and Onshore Petroleum
and Natural Gas Gathering and Boosting industry segments. However, we
requested comment on whether the agency should consider separate
approaches for controlled storage tanks and uncontrolled storage tanks.
The final definition of ``fugitive emissions component'' in the NSPS
subpart OOOOa (40 CFR 60.5430a) includes only thief hatches or other
openings on a controlled storage vessel; it does not specifically list
openings on uncontrolled storage vessels. We reviewed the subpart W
calculation methodology specifically for storage tanks with a vapor
recovery system (40 CFR 98.233(j)(4)) and storage tanks with a flare
(40 CFR 98.233(j)(5)). The procedure for determining emissions from a
tank with a vapor recovery system instructs reporters to adjust the
storage tank emissions downward by the magnitude of emissions recovered
using

[[Page 86502]]

a vapor recovery system as determined by engineering estimate based on
best available data (40 CFR 98.233(j)(4)(i)). The procedure for
determining emissions from a tank with a flare references 40 CFR
98.233(n), which instructs reporters to use engineering calculations
based on process knowledge, company records, and best available data to
determine the flow to the flare if the flare does not have a continuous
flow measurement device. If a reporter sees fugitive emissions from a
thief hatch or other opening on a controlled storage vessel during an
equipment leak survey conducted using OGI, the reporter should consider
that information as part of the ``best available data'' used to
calculate emissions from that storage tank. Therefore, we have
concluded that emissions from thief hatches or other openings on
storage vessels in the Onshore Petroleum and Natural Gas Production and
Onshore Petroleum and Natural Gas Gathering and Boosting industry
segments are already included in the subpart W storage tank emission
calculations in 40 CFR 98.233(j) and are finalizing, consistent with
the proposal, that they are not to be considered when determining
emissions from equipment leaks for purposes of subpart W.
We are also finalizing as proposed the exclusion of thief hatches
and other openings on transmission storage tanks from the equipment
leak reporting requirements.\19\ We note that, for purposes of subpart
W reporting, a leaking thief hatch or other opening is functionally a
secondary vent, and thus subject to annual screening on an uncontrolled
tank according to 40 CFR 98.233(k)(1). If screening shows vapors from
the thief hatch or opening are continuous for 5 minutes, then a method
in 40 CFR 98.233(k)(2) must be used to quantify the leak rate, and this
amount must be combined with any other vent leak rates for reporting.
---------------------------------------------------------------------------

\19\ The exceptions to equipment leak reporting requirements
were included in Tables W-1E and W-3 through W-6 of the proposal.
The final rule moves these exceptions to 40 CFR 98.232, to increase
clarity and reduce confusion while achieving the same purpose and
effect.
---------------------------------------------------------------------------

We are also finalizing the proposed distinction between equipment
leak emissions and compressor emissions. Specifically, for centrifugal
compressors, emission sources include wet seal oil degassing vents (for
centrifugal compressors with wet seals), blowdown valve leakage, and
isolation valve leakage. For reciprocating compressors, emission
sources include reciprocating compressor rod packing vents, blowdown
valve leakage, and isolation valve leakage.
For compressors in the Onshore Petroleum and Natural Gas Production
and the Onshore Petroleum and Natural Gas Gathering and Boosting
industry segments under subpart W, the compressor methodologies only
cover emissions from centrifugal compressor wet seal oil degassing
vents and from reciprocating compressor rod packing vents. Thus, the
EPA is finalizing as proposed, for these industry segments, that
blowdown valve leakage and isolation valve leakage are considered
equipment leaks (i.e., open-ended lines), and finalizing as proposed
that emissions from centrifugal compressor wet seal oil degassing vents
and from reciprocating compressor rod packing vents are not considered
equipment leaks when using the calculation methodology based on
equipment leak surveys in 40 CFR 98.233(q).\20\
---------------------------------------------------------------------------

\20\ 40 CFR 98.233(q) specifies which subsections in 40 CFR
98.232 (i.e., which components) must follow the calculation
methodology based on equipment leak surveys in 40 CFR 98.233(q), and
40 CFR 98.232 subsections identify exceptions from the list of
components for which equipment leak reporting is required.
---------------------------------------------------------------------------

For the Onshore Natural Gas Transmission Compression, Underground
Natural Gas Storage, LNG Storage, and LNG Import and Export Equipment
segments, subpart W requires reporters to make ``as found'' or
continuous measurements for compressor emission sources, so the
reporters will have either direct measurement data or site-specific
emission factors by which to calculate emissions from all of the
compressor sources listed above (i.e., wet seal oil degassing vents for
centrifugal compressors with wet seals, rod packing vents for
reciprocating compressors, and blowdown valve leakage and isolation
valve leakage for both centrifugal and reciprocating compressors).
Therefore, we are finalizing as proposed to exclude these compressor
emission sources from the requirements in the calculation methodology
based on equipment leak surveys so that reporters do not double-count
emissions from these sources in their GHGRP reports.
Finally, as noted in section II.C.1 of this preamble, we are
finalizing the proposed determination that for purposes of subpart W,
all other fugitive emissions components as defined in the NSPS subpart
OOOOa not specifically identified above (e.g., thief hatches or other
openings on a controlled storage vessel, compressor sources with
explicit calculation methodologies in subpart W) will be considered
equipment components when conducting an equipment leak survey using the
OGI method as specified in the NSPS subpart OOOOa or EPA Method 21 with
a leak definition of 500 ppmv. In other words, we consider the
provision requiring monitoring of fugitive emissions components as
defined in the NSPS subpart OOOOa in 40 CFR 60.5397a(e) to be an
inherent part of the NSPS subpart OOOOa OGI method and EPA Method 21
with a leak definition of 500 ppmv. Therefore, if a reporter with
components not subject to the NSPS subpart OOOOa well site or
compressor station fugitive emission requirements elects to use the
NSPS subpart OOOOa OGI method or EPA Method 21 with a leak definition
of 500 ppmv for purposes of subpart W, they are also electing to survey
these additional components.
2. Summary of Comments and Responses
Comment: Several commenters stated that the NSPS subpart OOOOa
proposed definition of ``fugitive emissions component'' is too
expansive. Because it includes many more emission sources than a more
traditional definition of equipment, the commenters asserted that it is
inconsistent with current subpart W requirements. The commenters stated
that aligning subpart W with the NSPS subpart OOOOa in this respect
will complicate the question of which components must be monitored at
subpart W facilities and will result in facilities having higher
numbers of leaks than they would have if they used any other equipment
leak detection method in subpart W. Some commenters stated that even
for well sites and compressor station sites subject to the NSPS subpart
OOOOa, component types considered to be equipment under subpart W
should be consistent with a more traditional definition of equipment.
Other commenters requested that equipment under subpart W only include
component types for which the EPA can provide specific population
factors and leaker emission factors.
Response: As noted in section II.D.1 of this preamble, the final
definition of ``fugitive emissions component'' in the NSPS subpart
OOOOa (40 CFR 60.5430a) does not list as many explicit individual
component types, as originally proposed. The EPA is finalizing, with
the exceptions discussed in section II.D.1 of this preamble and
consistent with the extent proposed, this alignment with the NSPS
subpart OOOOa, so that reporters may directly use the NSPS subpart
OOOOa monitoring results to count the number of leaks under subpart W.
Reporters using the calculation methodology based on equipment leak
surveys for

[[Page 86503]]

components not subject to the NSPS subpart OOOOa may choose which
monitoring method to use. If a reporter chooses to use one of the
monitoring methods listed in 40 CFR 98.234(a)(1) through (5), that
reporter would use the current list of equipment components for the
appropriate industry segment in 40 CFR 98.232 (e.g., the list of
equipment at 40 CFR 98.232(e)(7) for the Onshore Natural Gas
Transmission Compression industry segment). If a reporter chooses to
use the OGI method as specified in the NSPS subpart OOOOa or EPA Method
21 with a leak definition of 500 ppmv, the reporter would use both the
current list and the newly added list of equipment components for the
appropriate industry segment in 40 CFR 98.232, which in conjunction
include the NSPS subpart OOOOa definition of ``fugitive emissions
component'' in 40 CFR 60.5430a with the exceptions discussed in section
II.D.1 of this preamble (e.g., the list of equipment at 40 CFR
98.232(e)(7) and (8) for the Onshore Natural Gas Transmission
Compression industry segment).

E. Summary of Final Amendments to Leaker Emission Factors and the
Calculation Methodology Based on Equipment Leak Surveys

1. Summary of Final Amendments
To quantify emissions from leaking equipment components, subpart W
includes leaker emission factors for each component type in each
industry segment currently required to use the calculation methodology
based on equipment leak surveys. In contrast to the population emission
factors, which are multiplied by the total facility component counts,
leaker emission factors are multiplied by the actual number of leaks
for each component type, as identified by the equipment leak survey.
These amendments increase the component types that are required or may
elect to use the calculation methodology based on equipment leak
surveys, including most of the component types currently using the
subpart W calculation methodology based on population counts.\21\
Therefore, new leaker emission factors are being added so that
reporters can calculate their GHG emissions for these new component
types.
---------------------------------------------------------------------------

\21\ The NSPS subpart OOOOa fugitive emission requirements do
not apply to fugitive emissions components in the Natural Gas
Distribution industry segment.
---------------------------------------------------------------------------

Specifically, the EPA proposed to add new sets of leaker emission
factors to subpart W for: (1) The Onshore Petroleum and Natural Gas
Production industry segment; (2) the Onshore Petroleum and Natural Gas
Gathering and Boosting industry segment; (3) storage wellheads in gas
service in the Underground Natural Gas Storage industry segment; (4)
LNG storage components in gas service in the LNG Storage industry
segment; and (5) LNG terminals components in gas service for the LNG
Import and Export Equipment industry segment. For industry segments
that already include a set of leaker emission factors, the EPA also
proposed to expand that set of leaker emission factors to include
certain additional components to better align with the definition of
fugitive emissions components in the NSPS subpart OOOOa. See the
document ``Greenhouse Gas Reporting Rule: Technical Support for Leak
Detection Methodology Revisions and Confidentiality Determinations for
Petroleum and Natural Gas Systems'' in Docket Item No. EPA-HQ-OAR-2015-
0764-0028, for more information on the development of the proposed
leaker emission factors.
We are finalizing the leaker emission factors for the Onshore
Petroleum and Natural Gas Production and the Onshore Petroleum and
Natural Gas Gathering and Boosting industry segments as proposed, with
clarifications for flanges and connectors noted below. We are also
finalizing the following leaker emission factors as proposed: (1) The
leaker emission factors for ``other'' components in Tables W-3A, W-4A,
W-5A, and W-6A to subpart W; (2) the leaker emission factors for
storage wellhead equipment in gas service within Table W-4A to subpart
W; and (3) the leaker emission factors for equipment in gas service for
LNG storage components within Table W-5A to subpart W and for LNG
terminal components within Table W-6A to subpart W. We are also
finalizing the proposal to expand the existing leaker emission factor
for meters to also include instruments in Tables W-3A and W-4A to
subpart W for the Onshore Natural Gas Transmission Compression and
Underground Natural Gas Storage industry segments, respectively. All
but one of the proposed leaker factors for flanges in Tables W-3
through W-6 to subpart W (Tables W-3A, W-4A, W-5A, and W-6A to subpart
W in these final amendments) were the same as the leaker factors for
connectors; the exception was for flanges in gas service associated
with storage wellheads at Underground Natural Gas Storage facilities,
which had a proposed leaker factor that differed from the proposed
leaker factor for connectors in the same service. Flanges are a type of
connector, which means the proposed flange factors that were identical
to the existing connector factors were redundant. Therefore, we have
not finalized the proposed separate factors for flanges where the
factor was the same as the factor for connectors and are finalizing
that flanges must use the final connector factor, meaning the effect of
the final amendments is the same as the proposal. The separate factors
for connectors and flanges for storage wellheads in gas service at
Underground Natural Gas Storage facilities are finalized as proposed,
but to clarify that the factor for connectors applies only to all types
of connectors other than flanges, the component name has been changed
from ``connector'' in the proposal to ``connector (other)'' in Table W-
4A of the final amendments. This change also makes the terminology in
Table W-4A consistent with the terminology in Tables W-1A and W-1E,
which also specify factors for flanges that differ from the factors for
other types of connectors.
We are not finalizing the proposed addition of pumps to the leaker
factors in Table W-2 for the Onshore Natural Gas Processing industry
segment. As described in section II.B.1 of this preamble, we are not
taking final action on the Onshore Natural Gas Processing revisions at
this time.
In addition to finalizing nearly all of the proposed leaker
factors, we are also finalizing an additional set of emission factors
corresponding to the average emissions rates of components identified
using Method 21 with a leak definition of 500 ppmv. The proposed leaker
factors were developed based on Method 21 monitoring using a leak
definition of 10,000 ppmv and were to be applied by all reporters
regardless of the leak survey monitoring method used. As noted in
section II.C of this preamble, the final NSPS subpart OOOOa includes an
additional alternative that allows reporters to use Method 21 with a
leak definition of 500 ppmv. On average, the emissions from a leak
identified with a Method 21 reading above 500 ppmv are less than the
emissions from a leak identified with a Method 21 reading of 10,000
ppmv or higher. Consequently, the leaker factor (which is the average
emissions rate) for leaks identified when using a leak definition of
500 ppmv is smaller than the leaker factor for leaks identified when
using a leak definition of 10,000 ppmv. Therefore, in order to use the
NSPS subpart OOOOa survey results directly to calculate equipment leak
emissions for subpart W when Method 21 with a leak definition of 500

[[Page 86504]]

ppmv is used, leaker factors were developed consistent with the average
emissions rate of a ``leak'' defined as a measurement reading of 500
ppmv or more using Method 21. We developed these new leaker factors
using data from EPA's Protocol for Equipment Leak Emissions Estimates
\22\ consistent with the data used to develop the proposed leaker
factors for Onshore Petroleum and Natural Gas Production and the
Onshore Petroleum and Natural Gas Gathering and Boosting industry
segments. See the document ``Greenhouse Gas Reporting Rule: Technical
Support for Leak Detection Methodology Revisions and Confidentiality
Determinations for Petroleum and Natural Gas Systems Final Rule'' in
Docket ID No. EPA-HQ-OAR-2015-0764, which provides more information on
the development of the final leaker emission factors. The inclusion of
leaker factors specific to Method 21 with a leak definition of 500 ppmv
is consistent with our proposal to align subpart W calculation
methodologies with the monitoring requirements in the NSPS subpart
OOOOa.
---------------------------------------------------------------------------

\22\ U.S. Environmental Protection Agency. Protocol for
Equipment Leak Emissions Estimates. EPA-453/R-95-017. November 1995.
Docket Item No. EPA-HQ-OAR-2009-0927-0043.
---------------------------------------------------------------------------

We are also finalizing the proposed amendments to the time variable
Tp,z in Equation W-30 to clarify the total time a surveyed
component found leaking is assumed to be leaking and operational. The
previous language for the definition of the time variable specifically
considers a first leak survey and a last leak survey in the year but
does not provide specific language with respect to the duration of any
``intermediate'' survey conducted between the first and last survey.
Therefore, the EPA proposed to amend the definition of the time
variable to clarify how to determine the duration of a leak if more
than two leak surveys are conducted in a year and to instruct reporters
to sum the individual durations to determine the total time the
component was leaking during the year.
The EPA is finalizing this amendment as proposed. The amendments to
the time variable Tp,z define each equipment leak survey as
covering a unique, non-overlapping time period and we are clarifying
our intent that a leak detected in the first or any intermediate survey
is not considered to continue leaking past the date of that specific
equipment leak survey. For the last survey conducted in the calendar
year, the leak is assumed to continue until the end of the year. For
example, if a reporter conducts three equipment leak surveys in a
calendar year and a particular component is found to be leaking in the
first and second surveys but not the third, the total leak duration is
the sum of the time from January 1 to the date of the second survey. If
a reporter conducts three equipment leak surveys in a calendar year and
a particular component is found to be leaking in the first and last
surveys but not the second, then the total leak duration is the sum of
the time from January 1 to the date of the first survey and the time
from the date of the second survey to December 31.
See ``Response to Public Comments on Greenhouse Gas Reporting Rule:
Leak Detection Methodology Revisions and Confidentiality Determinations
for Petroleum and Natural Gas Systems'' in Docket ID No. EPA-HQ-OAR-
2015-0764 for all comments and the EPA's responses to comments on other
aspects of the time variable Tp,z in Equation W-30.
Finally, 40 CFR 98.233(q) includes a provision requiring reporters
to conduct one equipment leak survey in a calendar year (which must
include ``all component types'' subject to 40 CFR 98.233(q)) or
multiple ``complete'' equipment leak surveys in a calendar year. In
response to comments as part of the 2010 subpart W final rule, the EPA
noted that subsequent equipment leak surveys should be ``conducted for
an entire facility.'' \23\
---------------------------------------------------------------------------

\23\ U.S. Environmental Protection Agency. Mandatory Greenhouse
Gas Reporting Rule Subpart W--Petroleum and Natural Gas: EPA's
Response to Public Comments. November 2010. Docket Item No. EPA-HQ-
OAR-2009-0923-3608. Response to Comment Number EPA-HQ-OAR-2009-0923-
1014-9, pp. 1281-1282.
---------------------------------------------------------------------------

The EPA has reviewed how this interpretation could interact with
these final amendments for components subject to the NSPS subpart OOOOa
well site or compressor station fugitive emissions requirements and
finds that additional clarification is necessary. For example, a
facility in the Onshore Petroleum and Natural Gas Production industry
segment or the Onshore Petroleum and Natural Gas Gathering and Boosting
industry segment may have some components that are subject to the NSPS
subpart OOOOa well site or compressor station fugitive emissions
requirements and some components that are not. In such a case, multiple
equipment leak surveys would be conducted for the components subject to
the NSPS subpart OOOOa well site or compressor station fugitive
emissions requirements, to fulfill the requirements of the NSPS subpart
OOOOa for those components, that would be consistent with subpart W
monitoring methods under these final revisions.
However, under the current interpretation of a ``complete'' survey,
it would appear that these reporters would either: (1) Be unable to use
the NSPS subpart OOOOa fugitive emissions monitoring results as
directed, because they did not survey all components at the facility;
or (2) be forced to monitor all components at the facility on the same
frequency as the components subject to the NSPS subpart OOOOa well site
or compressor station fugitive emissions requirements to meet the
subpart W requirement to use all additional leak surveys conducted in
accordance with NSPS OOOOa. The first interpretation would render these
final amendments useless, and the second interpretation would increase
the burden beyond the EPA's intentions, and could also have unintended
consequences for the components subject to the NSPS subpart OOOOa
(e.g., a subpart W facility with some components subject to the NSPS
subpart OOOOa well site fugitive emissions requirements and others
subject to the NSPS subpart OOOOa compressor station fugitive emissions
requirements could end up being required to monitor the fugitive
emissions components at a well site four times a year instead of
twice). Therefore, the EPA is clarifying in 40 CFR 98.233(q)(2)(i) that
any monitoring conducted pursuant to and in compliance with the NSPS
subpart OOOOa well site or compressor station fugitive emissions
requirements constitutes a ``complete'' survey for purposes of subpart
W and must be used for subpart W reporting. The EPA is further
clarifying that, to meet the requirements of 40 CFR 98.233(q), at least
one equipment leak survey must be conducted in a calendar year.
2. Summary of Comments and Responses
Comment: Several commenters addressed the EPA's proposed leaker
emission factors. Some of the commenters indicated that the EPA/Gas
Research Institute (GRI) data set upon which the proposed factors are
based is an older data set and asserted that it may not be
representative of operating practices and procedures that have changed
significantly over the past 20 years. In addition, the commenters
stated that the EPA/GRI data set includes a limited population of
measurements, so the proposed leaker emission factors may not account
for operational variability on a regional or national level. Some
commenters requested that the EPA consider newer studies, including
those cited in

[[Page 86505]]

``Greenhouse Gas Reporting Rule: Technical Support for Leak Detection
Methodology Revisions and Confidentiality Determinations for Petroleum
and Natural Gas Systems'' (Docket Item No. EPA-HQ-OAR-2015-0764-0028)
either instead of or in combination with the EPA/GRI data set.
Several commenters urged the EPA to work with the regulated
community to improve the default leaker emission factors in subpart W.
One commenter noted that the proposed leaker emission factors may be a
viable interim solution but recommended that the EPA analyze more
robust data sets consisting of the combined results of all studies for
each industry segment and evaluate whether the subpart W leaker
emission factors should be revised.
Response: As described in the preamble to the proposed rule and the
document ``Greenhouse Gas Reporting Rule: Technical Support for Leak
Detection Methodology Revisions and Confidentiality Determinations for
Petroleum and Natural Gas Systems Final Rule'' (Docket ID No. EPA-HQ-
OAR-2015-0764), the EPA has determined that the EPA/GRI data set is
appropriate to base leaker emission factors in these subpart W
amendments. We note that the EPA/GRI data set provides sufficient data
to develop leaker emission factors and that using this data set for the
leaker emission factors provides consistency with the population
emission factors used by reporters that do not conduct equipment leak
surveys.
The EPA agrees that there are numerous recent studies that could be
used to either replace or supplement the EPA/GRI study data, and many
of these are described in the technical support document. The EPA
evaluated these other studies and found that the leaker emission
factors determined from these data sets agreed reasonably well with the
leaker emission factors developed from the EPA/GRI data set, suggesting
that the EPA/GRI leaker emission factors are still valid. Commenters
that supported a different basis for the leaker emission factors than
the EPA/GRI data set did not provide specific information explaining
why another study would be a better basis or address any of the
specific considerations listed above, although the comments received
suggest that stakeholders are interested in further involvement in the
assessment of the available data. Therefore, for the reasons stated in
the preamble to the proposed rule and the document ``Greenhouse Gas
Reporting Rule: Technical Support for Leak Detection Methodology
Revisions and Confidentiality Determinations for Petroleum and Natural
Gas Systems Final Rule'' in Docket ID No. EPA-HQ-OAR-2015-0764, the EPA
is finalizing the leaker emission factors as proposed.
The EPA appreciates the commenters' interest in providing a
thorough review of the available study data to develop an accurate set
of leaker emission factors. The EPA is committed to working with
stakeholders to ensure that GHGRP requirements and calculation methods
are based upon the most robust data available. If the EPA determines
that revisions to the subpart W leaker emission factors are appropriate
in the future based on additional information, we anticipate that we
will propose to amend the rule accordingly.
Comment: Numerous commenters stated that reporters should be
allowed to use site-specific leak quantification data if available,
either directly for each individual leak (i.e., direct measurement
data) or to develop their own leaker emission factors on a facility-
specific, company-specific, or product-specific basis. Most of these
commenters supported the EPA's proposal to include default leaker
emission factors, but stated that reporters should not be limited to
using them if the facility has more accurate, site-specific
information. Some commenters further noted that the site-specific data
reported to the GHGRP could be used to improve the default leaker
emission factors in the future. One commenter also requested that the
EPA require quantification of any leak that a reporter elects not to
repair.
Response: The EPA did not propose and, after review and
consideration of comments, is not finalizing provisions allowing
reporters to use site-specific information to calculate equipment leak
emissions for subpart W. While we agree that direct measurement has the
potential to provide more accurate emissions data than using emission
factors, we would need to develop criteria and guidelines for using
direct measurement data consistently across subpart W reporters for
calculating equipment leak emissions. Similarly, we agree that using
site-specific emission factors can provide more accurate emissions data
than using default emission factors, but a robust set of requirements
would be needed for reporters to use when developing their own emission
factors to ensure that those factors are as unbiased and representative
as possible. In addition, if reporters are using direct measurement or
their own emission factors, we would most likely need to amend the
reporting requirements (e.g., to require reporters to provide site-
specific emission factors), and we would need to consider whether any
other amendments would be needed to enable us to review and verify
reported data. In either of these cases, we would provide the
opportunity for the public to comment on those amended requirements
before finalizing them within subpart W.

F. Summary of Final Amendments to Reporting Requirements

1. Summary of Final Amendments
The EPA is finalizing largely as proposed the new reporting
requirements for facilities conducting equipment leak surveys under
subpart W. Reporters in the Onshore Petroleum and Natural Gas
Production and the Onshore Petroleum and Natural Gas Gathering and
Boosting industry segments, reporters with storage wellheads in the
Underground Natural Gas Storage industry segment, and reporters with
components in gas service in the LNG Storage and LNG Import and Export
Equipment industry segments that begin using the calculation
methodology based on equipment leak surveys must report the information
currently listed in 40 CFR 98.236(q)(1) and (2), which includes the
number of equipment leak surveys, component types, number of leaking
components, average time the components were assumed to be leaking, and
annual CO2 and CH4 emissions. Facilities that
conduct surveys using the new monitoring methods in 40 CFR 98.234(a)(6)
or (7) must also report the data elements in 40 CFR 98.236(q)(2) for
additional component types specified in 40 CFR 98.232. Reporters may
elect to report the data elements in 40 CFR 98.236(q)(2) for the
additional component types if they conduct surveys using a monitoring
method in 40 CFR 98.234(a)(1) through (5).
The data elements in 40 CFR 98.236(q)(1) and (2) are already
required to be reported by facilities conducting equipment leak surveys
in the Onshore Natural Gas Transmission Compression, Underground
Natural Gas Storage (storage stations), and LNG Storage and LNG Import
and Export Equipment (components in LNG service) industry segments.
However, facilities in those segments conducting equipment leak surveys
using the new OGI method or Method 21, as specified in the NSPS subpart
OOOOa (finalized in subpart W as 40 CFR 98.234(a)(6) or (7)), must
begin reporting the data elements in 40 CFR 98.236(q)(2) for component
types with the new leaker emission factors, including component types
that are not currently subject to reporting. Facilities conducting
equipment leak surveys using a monitoring method in 40 CFR

[[Page 86506]]

98.234(a)(1) through (5) may elect to begin reporting the data elements
in 40 CFR 98.236(q)(2) for other components that are not currently
subject to reporting.
In addition, the EPA is finalizing as proposed three new reporting
requirements for facilities conducting equipment leak surveys in all of
the above segments as well as the Onshore Natural Gas Processing and
Natural Gas Distribution segments. First, facilities in those segments
will be required to report the monitoring method(s) in 40 CFR 98.234(a)
used to conduct the survey(s). Second, facilities in the above segments
except for Onshore Natural Gas Processing and Natural Gas Distribution
will be required to indicate whether any of their component types are
subject to the NSPS subpart OOOOa well site or compressor station
fugitive emissions requirements. Finally, facilities with components
for which the calculation methodology based on equipment leak surveys
is optional (e.g., facilities in the Onshore Petroleum and Natural Gas
Production segment) will be required to indicate whether they elected
to use the calculation methodology based on equipment leak surveys for
any of their component types at the facility.
Additionally, in reviewing specific reporting requirements while
responding to public comments, we recognized that the reporting
requirements at 40 CFR 98.236(r)(3)(ii) were unclear, and could be
misinterpreted with respect to how this reporting element relates to
the calculated emissions. Therefore, we are revising 40 CFR
98.236(r)(3)(ii) by adding the phrase ``. . . for which equipment leak
emissions are calculated using the methodology in Sec. 98.233(r)'' to
clarify our original intent that the major equipment counts reported
under this requirement are specific to equipment for which emissions
are calculated using the population count methodology.
2. Summary of Comments and Responses
Comment: Two commenters addressed the proposed requirement in 40
CFR 98.236(q)(1)(iii) to indicate whether any component types at a
facility are subject to the NSPS subpart OOOOa. One commenter opposed
the addition, stating that it is overly burdensome to require reporters
to delineate reporting of emission sources subject to the NSPS subpart
OOOOa, especially if this is intended to be a numeric response
regarding the number of individual components subject to the NSPS
subpart OOOOa. Another commenter asserted that it is not clear if the
response to proposed 40 CFR 98.236(q)(1)(iii) is a single yes or no for
each facility or if the EPA will be expecting a yes or no response for
each component type.
Response: In the final rule, the EPA has revised the proposed
requirement in 40 CFR 98.236(q)(1)(iii) (indicate whether any component
types are subject to the NSPS subpart OOOOa) to be clear that the EPA
expects only one yes or no response for an entire facility. While the
EPA understands that the number of leaking components and equipment
leak emissions may increase as the number of components subject to the
NSPS subpart OOOOa increases, this response will allow the EPA to
provide transparent data related to changes in emissions for facilities
with components subject to the NSPS subpart OOOOa well site or
compressor station fugitive emissions requirements over time. This data
element will also support verification that the appropriate GHGRP
monitoring method was used by the facility.

III. Confidentiality Determinations

A. Summary of Final Confidentiality Determinations for New Subpart W
Data Elements

As noted in the proposed rule, we are applying the same approach as
previously used for making confidentiality determinations for data
elements reported under the GHGRP. In the ``Confidentiality
Determinations for Data Required Under the Mandatory Greenhouse Gas
Reporting Rule and Amendments to Special Rules Governing Certain
Information Obtained Under the Clean Air Act'' (hereafter referred to
as ``2011 Final CBI Rulemaking'') (76 FR 30782, May 26, 2011), the EPA
grouped part 98 data elements for which EPA was determining
confidentiality status through that rulemaking into 22 data categories
(11 direct emitter data categories and 11 supplier data categories)
with each of the 22 data categories containing data elements that are
similar in type or characteristics. The EPA then made categorical
confidentiality determinations for eight direct emitter data categories
and eight supplier data categories and applied the categorical
confidentiality determination to all data elements assigned to the
category. Of these data categories with categorical determinations, the
EPA determined that four direct emitter data categories are comprised
of those data elements that meet the definition of ``emission data,''
as defined at 40 CFR 2.301(a), and are, therefore, not entitled to
confidential treatment under section 114(c) of the CAA.\24\ The EPA
determined that the other four direct emitter data categories and the
eight supplier data categories do not meet the definition of ``emission
data.'' For these data categories that are determined not to be
emission data, the EPA determined categorically that data in three
direct emitter data categories and five supplier data categories are
eligible for confidential treatment as CBI, and that the data in one
direct emitter data category and three supplier data categories are
ineligible for confidential treatment as CBI. For two direct emitter
data categories, ``Unit/Process `Static' Characteristics that Are Not
Inputs to Emission Equations'' and ``Unit/Process Operating
Characteristics that Are Not Inputs to Emission Equations,'' and three
supplier data categories, ``GHGs Reported,'' ``Production/Throughput
Quantities and Composition,'' and ``Unit/Process Operating
Characteristics,'' the EPA determined in the 2011 Final CBI Rulemaking
that the data elements assigned to those categories are not emission
data, but the EPA did not make categorical CBI determinations for them.
Rather, the EPA made CBI determinations for each individual data
element included in those categories on a case-by-case basis taking
into consideration the criteria in 40 CFR 2.208. The EPA did not make a
final confidentiality determination for data elements assigned to the
inputs to emission equation data category (a direct emitter data
category) in the 2011 Final CBI Rulemaking. However, the EPA has since
proposed and finalized an approach for addressing disclosure concerns
associated with inputs to emissions equations.\25\
---------------------------------------------------------------------------

\24\ Direct emitter data categories that meet the definition of
``emission data'' in 40 CFR 2.301(a) are ``Facility and Unit
Identifier Information,'' ``Emissions,'' ``Calculation Methodology
and Methodological Tier,'' and ``Data Elements Reported for Periods
of Missing Data that are not Inputs to Emission Equations.''
\25\ Revisions to Reporting and Recordkeeping Requirements, and
Confidentiality Determinations Under the Greenhouse Gas Reporting
Program; Final Rule. (79 FR 63750, October 24, 2014).
---------------------------------------------------------------------------

In the proposed rule, we assigned the nine proposed new or
substantially revised data elements to the appropriate direct emitter
data categories created in the 2011 Final CBI Rulemaking based on the
type and characteristics of each data element. For the seven data
elements the EPA assigned to a direct emitter category with a
categorical determination, the EPA proposed that the categorical
determination for the category be applied to the proposed new or
substantially revised data elements,

[[Page 86507]]

as shown in Table 4 of this preamble. For the two data elements
assigned to the ``Unit/Process Operating Characteristics that Are Not
Inputs to Emission Equations,'' we proposed confidentiality
determinations on a case-by-case basis taking into consideration the
criteria in 40 CFR 2.208, consistent with the approach used for data
elements previously assigned to these two data categories, as shown in
Table 5 of this preamble. Refer to the preamble to the proposed rule
(81 FR 4987; January 29, 2016) for additional information regarding the
proposed confidentiality determinations.
With consideration of the information provided by commenters, the
EPA is finalizing the confidentiality determinations as proposed.
Specifically, the EPA is finalizing the proposed determination for each
of the nine new or substantially revised data elements to be designated
as ``emission data'' or ``not CBI.''

Table 4--Final Data Category Assignments and Confidentiality Determinations for New Data Elements Assigned to
Categories With Categorical Determinations
----------------------------------------------------------------------------------------------------------------
Categorical
Final category determination (as
Citation Data element assignment established in 2011)
\26\
----------------------------------------------------------------------------------------------------------------
Sec. 98.236(q)(1)(i)............. The number of complete Test and Calibration Not Emission Data and
equipment leak surveys Methods. Not CBI.
performed during the
calendar year.
Sec. 98.236(q)(1)(iii)........... Whether any component types Facility and Unit Emission Data.
were subject to 40 CFR Identifier
part 60, subpart OOOOa. Information.
Sec. 98.236(q)(1)(iv)............ Whether you elected to Facility and Unit Emission Data.
comply with Sec. Identifier
98.233(q) per Sec. Information.
98.233(q)(1)(iii).
Sec. 98.236(q)(1)(v)............. Each type of method Test and Calibration Not Emission Data and
described in Sec. Methods. Not CBI.
98.234(a) that was used to
conduct leak surveys.
Sec. 98.236(q)(2)(i)............. For each component type Facility and Unit Emission Data.
that is located at your Identifier
facility, component type. Information.
Sec. 98.236(q)(2)(iv)............ For each component type Emissions............. Emission Data.
that is located at your
facility, annual CO2
emissions, in metric tons
CO2.
Sec. 98.236(q)(2)(v)............. For each component type Emissions............. Emission Data.
that is located at your
facility, annual CH4
emissions, in metric tons
CH4.
----------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------

\26\ The categorical confidentiality determinations for the data
categories listed in this table were finalized on May 26, 2011 (see
76 FR 30782).

Table 5--Final Confidentiality for Data Elements Assigned to the ``Unit/Process Operating Characteristics That
Are Not Inputs to Emission Equations'' Data Category
----------------------------------------------------------------------------------------------------------------
Final confidentiality determination and
Citation Data element rationale
----------------------------------------------------------------------------------------------------------------
Sec. 98.236(q)(2)(ii)................. For each component type Not Emission Data (Categorical
that is located at your Determination as Established in 2011).
facility, total number of Not CBI. The term ``equipment leaks''
the surveyed component refers to those emissions which could
type that were identified not reasonably pass through a stack,
as leaking in the calendar chimney, vent, or other functionally-
year (``xp'' in Equation W- equivalent opening. Leaking components
30). at a facility may have a correlation to
the level of maintenance at a facility.
However, there is no direct correlation
between the level of maintenance and
process efficiency, i.e., a higher
number of leaks in one facility do not
indicate that the processes have been
running longer or more frequently than
those processes at another facility that
has a lower number of leaks.
Furthermore, Department of
Transportation (DOT) regulations require
natural gas distribution companies and
transmission pipeline companies to
conduct periodic leak detection and fix
any leaking equipment. The number of
leaks detected and fixed is reported to
the DOT and is publicly available.
Finally, 40 CFR part 60, subpart OOOOa
requires reporting for each component
with visible emissions at affected well
sites and compressor station sites. The
EPA is finalizing that this data element
is not confidential; and that it will be
considered ``not CBI.''
Sec. 98.236(q)(2)(iii)................ For each component type Not Emission Data (Categorical
that is located at your Determination as Established in 2011).
facility, average time the Not CBI. This data element will provide
surveyed components are information on the amount of time
assumed to be leaking and operational components were found to be
operational, in hours leaking. This information provides
(average of ``Tp,z'' from little insight into maintenance
Equation W-30). practices at a facility because it does
not identify the cause of the leaks or
the nature and cost of repairs.
Therefore, this information would not be
likely to cause substantial competitive
harm to reporters. For this reason, we
are finalizing the average time
operational components were found
leaking be designated as ``not CBI.''
----------------------------------------------------------------------------------------------------------------

B. Summary of Comments and Responses

This section summarizes the major comments and responses related to
the proposed categorical assignments and confidentiality
determinations. See ``Response to Public Comments on Greenhouse Gas
Reporting Rule: Leak Detection Methodology Revisions and
Confidentiality Determinations for Petroleum and Natural Gas Systems''
in Docket ID No. EPA-HQ-OAR-2015-

[[Page 86508]]

0764 for a complete listing of all comments and responses. See the
memorandum ``Final Data Category Assignments and Confidentiality
Determinations for Data Elements in the `Greenhouse Gas Reporting Rule:
Leak Detection Methodology Revisions and Confidentiality Determinations
for Petroleum and Natural Gas Systems; Final Rule' '' in Docket ID No.
EPA-HQ-OAR-2015-0764 for a complete listing of final data category
assignments and confidentiality determinations.
Comment: One commenter stated that the EPA should reconsider the
proposed determination of ``not CBI'' for the number of components
identified as leaking in a calendar year and the average time the
surveyed components are assumed to be leaking. The commenter asserted
that designating this information as CBI would encourage more reporters
to voluntarily conduct leak surveys. The commenter also noted that this
information is publically available for some sources and suggested that
the rule provide an exception from classification as CBI for components
subject to State programs or NSPS that already require public
disclosure. Another commenter requested that the EPA protect the
community's right to know and not allow companies to keep the public
from finding out about leaks from hydrocarbon facilities.
Response: While it is possible that the requirement to report the
number of leaking components and the average time those components were
leaking could discourage some reporters from conducting voluntary
equipment leak surveys, this is not a valid reason to allow reporters
to claim these data elements as confidential. As noted in section III.C
of the preamble to the proposed rule, the EPA proposed that disclosure
of these data elements is unlikely to cause substantial harm to a
business's competitive position, and the commenter did not indicate
that the EPA's determination was incorrect. Therefore, the EPA is
finalizing the confidentiality determinations for these data elements
as ``not CBI.''

IV. Impacts of the Final Amendments to Subpart W

A. Impacts of the Final Amendments

The final amendments to subpart W revise costs associated with the
use of the monitoring methods and the calculation methodology based on
equipment leak surveys for reporters in the following industry
segments: Onshore Petroleum and Natural Gas Production, Onshore
Petroleum and Natural Gas Gathering and Boosting, Onshore Natural Gas
Transmission Compression, Underground Natural Gas Storage, LNG Storage,
and LNG Import and Export Equipment. Reporters in these industry
segments are required to use the results of fugitive emissions
component monitoring required for well sites and compressor stations
under the NSPS subpart OOOOa. Reporters in these segments with
components not subject to the NSPS subpart OOOOa well site or
compressor station fugitive emissions requirements and for which they
are currently required to use the calculation methodology based on
population counts under subpart W may voluntarily use the calculation
methodology based on equipment leak surveys for those components if the
equipment leak survey is conducted following a monitoring method listed
in subpart W.
The EPA received comments from one commenter regarding the specific
impacts of the proposed amendments. After evaluating these comments and
reviewing other changes from proposal, the EPA revised the impacts
assessment from proposal. The EPA estimates that the costs of the final
amendments to subpart W are slightly more burdensome than we estimated
at proposal, but they do not significantly change the overall burden to
subpart W reporters. The EPA estimated that the additional costs to
subpart W reporters in the Onshore Petroleum and Natural Gas Production
and the Onshore Petroleum and Natural Gas Gathering and Boosting
industry segments to transition their existing equipment leak
recordkeeping, calculating, and reporting systems to use the
calculation methodology based on equipment leak surveys and to
determine which components are subject to the NSPS subpart OOOOa well
site or compressor station fugitive emissions requirements and which
are not, will be approximately $110,000 per year, or about $410 per
reporter. The EPA estimated that the additional costs for subpart W
reporters in the other industry segments (i.e., Onshore Natural Gas
Transmission Compression, Underground Natural Gas Storage, Liquefied
Natural Gas (LNG) Storage, and LNG Import and Export Equipment) to add
a few new emission factors to their existing systems (rather than
transitioning their recordkeeping, calculating, and reporting systems)
and to determine which components are covered by the NSPS subpart OOOOa
well site or compressor station fugitive emissions requirements and
which are not, will be approximately $20,000 per year or about $110 per
reporter. The total costs are approximately $128,400 per year for all
reporters, or about $286 per reporter. See the memorandum, ``Assessment
of Impacts of the Final Leak Detection Methodology Revisions and
Confidentiality Determinations for Petroleum and Natural Gas Systems''
in Docket ID No. EPA-HQ-OAR-2015-0764 for additional information.

B. Summary of Comments and Responses

This section summarizes the major comments and responses related to
the impacts of the proposed amendments to subpart W of part 98. We note
that while several commenters asserted that the proposed rule would be
burdensome for many operators and suggested revisions to the rule
requirements that would reduce the burden, only one commenter provided
comments on the EPA's impacts estimate and supporting statement, and
that commenter's major comments are summarized in this section. See
``Response to Public Comments on Greenhouse Gas Reporting Rule: Leak
Detection Methodology Revisions and Confidentiality Determinations for
Petroleum and Natural Gas Systems'' in Docket ID No. EPA-HQ-OAR-2015-
0764 for a complete listing of all comments and responses.
Comment: One commenter stated that the EPA's estimate of two hours
of labor and $198 per reporter significantly underestimates and
misrepresents the amount of time and effort that goes into implementing
a new rule. The commenter provided a cost estimate that assumes more
labor hours than in the EPA's memorandum ``Assessment of Impacts of the
Leak Detection Methodology Revisions and Confidentiality Determinations
for Petroleum and Natural Gas Systems'' (Docket Item No. EPA-HQ-OAR-
2015-0764-0025). The commenter noted that as more sites become subject
to the NSPS subpart OOOOa at a facility, the costs of managing the data
and processing it into a usable format for the GHGRP will increase each
year for that reporter. The commenter also noted that the EPA was
incorrect in assuming that there would be no costs for facilities in
the Onshore Natural Gas Processing segment.
Response: The EPA has evaluated the comments and has made changes
to the estimate of burden in the supporting statement. The following
paragraphs address each of the points in the commenter's detailed cost
estimate included with the comment letter and explain how the points
are being addressed in the final burden and cost estimate.

[[Page 86509]]

The commenter suggested adding burden of two hours in the first
year related to the initial monitoring plan development and burden of
0.5 hours in subsequent years related to yearly monitoring plan
revisions. The EPA did not include costs at proposal related to the
monitoring plan because the subpart W amendments do not require the
development of a separate monitoring plan. Instead, the subpart W
amendments cross reference the monitoring plan that is already being
developed according to the NSPS subpart OOOOa. The EPA recognizes that
reporters that are not subject to the NSPS subpart OOOOa would not
already be required to develop a monitoring plan under the NSPS subpart
OOOOa; however, reporters that elect to use one of the new leak
detection methods are also electing to incur the burden of developing a
monitoring plan. Therefore, there is no monitoring plan burden
associated with the subpart W amendments and the final burden and cost
estimate has not changed from proposal as a result of this comment.
The commenter suggested changing the number of hours to revise the
reporting system to five hours and to allow one hour for maintenance in
each subsequent year. At proposal, the EPA estimated that revising the
reporting system to use the calculation methodology based on equipment
leak surveys would require two hours. The commenter did not provide the
basis for their estimate of five hours to update the data management
system. The overall reporting costs for compliance already include a
burden of ten hours per year and the EPA disagrees that updating the
data management system would encompass half of that allotment because
EPA anticipates that reporters would only need to add a few emission
factors for leaking components to their existing system, rather than
something more time-intensive such as creating a new data management
system. We reviewed the revisions expected to be needed in the data
management system. While we maintain that two hours are sufficient to
implement the calculation methodology based on equipment leak surveys
into a reporter's existing system, we recognize that this process will
also require quality assurance reviews and testing to ensure the data
are stored properly and the calculations are performed correctly.
Therefore, we increased the number of hours estimated to revise the
reporting system from two hours to 3.5 hours to account for these
additional quality reviews of the data management system. However, the
EPA has made no changes to burden associated with maintenance of the
revised reporting system because the EPA asserts that any reporting
system maintenance related to subpart W is already reflected in the
twenty hours per year allotted to each subpart W reporter for
recordkeeping and reporting activities.
The commenter suggested that the EPA adjust the proposed burden and
cost estimate by adding the following activities and burden estimates:
(1) Time for staff to process the survey data resulting from the
calculation methodology based on equipment leak surveys and to enter it
into the GHGRP system at a burden of three hours per year; (2) time for
staff training at a burden of two hours for initial training and one
hour per year in subsequent years; and (3) time for staff to review the
data for quality assurance, follow missing data requirements, report
data to the EPA, and retain all records at a burden of four total hours
per year.
At proposal, the EPA did not include burden related to these
activities because they are covered by the twenty hours per year
already accounted for in the overall subpart W reporter burden for
recordkeeping and reporting activities. Therefore, the final burden and
cost estimate has not changed from proposal as a result of these
comments.
However, at proposal, the EPA did not account for the time
associated with determining which components in the reporting system
are covered by the NSPS subpart OOOOa well site or compressor station
fugitive emissions requirements and which are not. As a result, the EPA
has added 0.5 hours per reporter in the first year that the reporter
has an affected collection of fugitive emissions components subject to
the NSPS subpart OOOOa well site or compressor station fugitive
emissions requirements and 0.1 hours per reporter in subsequent years.
Finally, for the reasons described in section II.B.2 of this
preamble, the final rule language specifies that the requirement to use
the NSPS subpart OOOOa results as part of the calculation methodology
based on equipment leak surveys only applies to components subject to
the NSPS subpart OOOOa well site or compressor station fugitive
emissions requirements. The subpart W equipment leak survey
requirements for facilities in the Onshore Natural Gas Processing
segment do not change as a result of these amendments. Therefore, the
EPA is not including any burden estimate for Onshore Natural Gas
Processing reporters (i.e., the revisions to the burden estimate
described in this response do not apply to the Onshore Natural Gas
Processing segment).
Overall, the burden and cost estimate has been revised as discussed
above from 502 hours and $50,000 per year at proposal to approximately
1,295 hours and $128,400 per year for all reporters.

V. Statutory and Executive Order Reviews

Additional information about these statutes and Executive Orders
can be found at https://www2.epa.gov/laws-and-executive orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.

B. Paperwork Reduction Act (PRA)

The information collection activities in this rule have been
submitted for approval to the OMB under the PRA. The Information
Collection Request (ICR) document that the EPA prepared has been
assigned EPA ICR number 2300.19. You can find a copy of the ICR in the
docket for this rule, and it is briefly summarized here. The
information collection requirements are not enforceable until OMB
approves them.
This action increases burden for industry segments that conduct
equipment leak surveys. These revisions are expected to increase
respondent burden for subpart W reporters that become subject to the
NSPS subpart OOOOa well site or compressor station fugitive
requirements. To accommodate the new methods and emission factors added
by these final amendments, the EPA expects that each affected subpart W
reporter will either revise their reporter-specific calculation
mechanism (i.e., calculation spreadsheet, recordkeeping database, etc.)
or add a few new emission factors to the reporter-specific calculation
mechanism, when and if the reporter becomes subject to the NSPS subpart
OOOOa well site or compressor station fugitive requirements. The
recordkeeping and reporting requirements are being finalized as
proposed. Impacts associated with the final revisions to the
recordkeeping and reporting requirements are detailed in the memorandum
``Assessment of Impacts of the Final Leak Detection Methodology
Revisions and Confidentiality Determinations for Petroleum and Natural
Gas Systems''

[[Page 86510]]

(see Docket ID No. EPA-HQ-OAR-2015-0764).
Data collection provides a critical tool for communities to
identify nearby sources of GHGs and provides information to state and
local governments. The data can be used to complement atmospheric GHG
studies and inform updates to emission inventories such as the
Inventory of U.S. Greenhouse Gas Emissions and Sinks (Inventory).
Various activity data are collected that can be used to improve
understanding of the occurrence of emissions from a variety of sources.
Data collected must be made available to the public unless the data
qualify for CBI treatment under the CAA and EPA regulations. All data
determined by the EPA to be CBI are safeguarded in accordance with
regulations in 40 CFR chapter 1, part 2, subpart B.
Respondents/affected entities: The respondents in this information
collection include owners and operators of petroleum and natural gas
systems facilities that report their GHG emissions from equipment leaks
to the EPA to comply with subpart W.
Respondent's obligation to respond: The respondent's obligation to
respond is mandatory under the authority provided in CAA section 114.
Estimated number of respondents: Approximately 899 respondents per
year.
Frequency of response: Annual.
Total estimated burden: 1,295 hours (per year). Burden is defined
at 5 CFR 1320.3(b).
Total estimated cost: $128,400 (per year), includes $0 annualized
capital or operation and maintenance costs.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for the
EPA's regulations in 40 CFR are listed in 40 CFR part 9. When OMB
approves this ICR, the EPA will announce that approval in the Federal
Register and publish a technical amendment to 40 CFR part 9 to display
the OMB control number for the approved information collection
activities contained in this final rule.

C. Regulatory Flexibility Act (RFA)

I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. The
small entities directly regulated by this final rule include small
businesses in the petroleum and natural gas industry. The EPA has
determined that some small businesses will be affected because their
production processes emit GHGs exceeding the reporting threshold. This
action includes amendments that may result in a small burden increase
on some subpart W reporters, but the EPA has determined that the
increased cost of less than $286 per reporter is not a significant
impact. Details of this analysis are presented in ``Assessment of
Impacts of the Final Leak Detection Methodology Revisions and
Confidentiality Determinations for Petroleum and Natural Gas Systems''
in Docket ID No. EPA-HQ-OAR-2015-0764.

D. Unfunded Mandates Reform Act (UMRA)

This action does not contain an unfunded mandate of $100 million or
more as described in UMRA, 2 U.S.C. 1531-1538, and does not
significantly or uniquely affect small governments. As shown in
sections IV.A and V.B of this preamble, the annual cost of this action
is $128,400, which is well under $100 million per year.

E. Executive Order 13132: Federalism

This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

This action has tribal implications. However, it will neither
impose substantial direct compliance costs on federally recognized
tribal governments, nor preempt tribal law. This regulation will apply
directly to petroleum and natural gas facilities that emit GHGs.
Although few facilities that will be subject to the rule are likely to
be owned by tribal governments, the EPA sought opportunities to provide
information to tribal governments and representatives during the
development of the proposed and final subpart W that was promulgated on
November 30, 2010 (75 FR 74458).
The EPA consulted with tribal officials under the EPA Policy on
Consultation and Coordination with Indian Tribes early in the process
of developing this regulation to permit them to have meaningful and
timely input into its development. A summary of that consultation is
provided in section IV.F of the preamble to the re-proposal of subpart
W published on April 12, 2010 (75 FR 18608), and section IV.F of the
preamble to the subpart W 2010 final rule published on November 30,
2010 (75 FR 74458).

G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that the EPA has reason to believe may disproportionately affect
children, per the definition of ``covered regulatory action'' in
section 2-202 of the Executive Order. This action is not subject to
Executive Order 13045 because it does not concern an environmental
health risk or safety risk.

H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use

This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

The EPA believes that this action is not subject to Executive Order
12898 (59 FR 7629, February 16, 1994) because it does not establish an
environmental health or safety standard. Instead, this rule addresses
information collection and reporting and verification procedures.

K. Congressional Review Act (CRA)

This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).

List of Subjects in 40 CFR Part 98

Environmental protection, Administrative practice and procedure,
Greenhouse gases, Reporting and recordkeeping requirements.

Dated: November 10, 2016.
Gina McCarthy,
Administrator.

For the reasons stated in the preamble, title 40, chapter I, of the
Code of Federal Regulations is amended as follows:

[[Page 86511]]

PART 98--MANDATORY GREENHOUSE GAS REPORTING

0
1. The authority citation for part 98 continues to read as follows:

Authority: 42 U.S.C. 7401-7671q.

Subpart W--Petroleum and Natural Gas Systems

0
2. Section 98.232 is amended by:
0
a. Revising paragraph (c)(21);
0
b. Adding paragraph (e)(8);
0
c. Revising paragraph (f)(5);
0
d. Adding paragraphs (f)(6) through (8);
0
e. Revising paragraphs (g)(3) and (4);
0
f. Adding paragraphs (g)(5) through (7);
0
g. Revising paragraphs (h)(4) and (5);
0
h. Adding paragraphs (h)(6) through (8); and
0
i. Revising paragraph (j)(10).
The revisions and additions read as follows:

Sec. 98.232 GHGs to report.

* * * * *
(c) * * *
(21) Equipment leaks from valves, connectors, open ended lines,
pressure relief valves, pumps, flanges, and other components (such as
instruments, loading arms, stuffing boxes, compressor seals, dump lever
arms, and breather caps, but does not include components listed in
paragraph (c)(11) or (19) of this section, and it does not include
thief hatches or other openings on a storage vessel).
* * * * *
(e) * * *
(8) Equipment leaks from all other components that are not listed
in paragraph (e)(1), (2), or (7) of this section and are either subject
to the well site or compressor station fugitive emissions standards in
Sec. 60.5397a of this chapter or you elect to survey using a leak
detection method described in Sec. 98.234(a)(6) or (7). The other
components subject to this paragraph (e)(8) also do not include thief
hatches or other openings on a storage vessel. If these other
components are not subject to the well site or compressor station
fugitive emissions standards in Sec. 60.5397a of this chapter, you may
also elect to report emissions from these other components if you elect
to survey them using a leak detection method described in Sec.
98.234(a)(1) through (5).
(f) * * *
(5) Equipment leaks from valves, connectors, open ended lines,
pressure relief valves, and meters associated with storage stations.
(6) Equipment leaks from all other components that are associated
with storage stations, are not listed in paragraph (f)(1), (2), or (5)
of this section, and are either subject to the well site or compressor
station fugitive emissions standards in Sec. 60.5397a of this chapter
or you elect to survey using a leak detection method described in Sec.
98.234(a)(6) or (7). If these other components are not subject to the
well site or compressor station fugitive emissions standards in Sec.
60.5397a of this chapter, you may also elect to report emissions from
these other components if you elect to survey them using a leak
detection method described in Sec. 98.234(a)(1) through (5).
(7) Equipment leaks from valves, connectors, open-ended lines, and
pressure relief valves associated with storage wellheads.
(8) Equipment leaks from all other components that are associated
with storage wellheads, are not listed in paragraph (f)(1), (2), or (7)
of this section, and are either subject to the well site or compressor
station fugitive emissions standards in Sec. 60.5397a, of this chapter
or you elect to survey using a leak detection method described in Sec.
98.234(a)(6) or (7). If these other components are not subject to the
well site or compressor station fugitive emissions standards in Sec.
60.5397a of this chapter, you may also elect to report emissions from
these other components if you elect to survey them using a leak
detection method described in Sec. 98.234(a)(1) through (5).
(g) * * *
(3) Flare stack emissions.
(4) Equipment leaks from valves, pump seals, connectors, and other
equipment leak sources in LNG service.
(5) Equipment leaks from vapor recovery compressors, if you do not
survey components associated with vapor recovery compressors in
accordance with paragraph (g)(6) of this section.
(6) Equipment leaks from all components in gas service that are
associated with a vapor recovery compressor, are not listed in
paragraph (g)(1) or (2) of this section, and that are either subject to
the well site or compressor station fugitive emissions standards in
Sec. 60.5397a of this chapter or you elect to survey using a leak
detection method described in Sec. 98.234(a).
(7) Equipment leaks from all components in gas service that are not
associated with a vapor recovery compressor, are not listed in
paragraph (g)(1) or (2) of this section, and are either subject to the
well site or compressor station fugitive emissions standards in Sec.
60.5397a of this chapter or you elect to survey using a leak detection
method described in Sec. 98.234(a)(6) or (7). If these components are
not subject to the well site or compressor station fugitive emissions
standards in Sec. 60.5397a of this chapter, you may also elect to
report emissions from these components if you elect to survey them
using a leak detection method described in Sec. 98.234(a)(1) through
(5).
(h) * * *
(4) Flare stack emissions.
(5) Equipment leaks from valves, pump seals, connectors, and other
equipment leak sources in LNG service.
(6) Equipment leaks from vapor recovery compressors, if you do not
survey components associated with vapor recovery compressors in
accordance with paragraph (h)(7) of this section.
(7) Equipment leaks from all components in gas service that are
associated with a vapor recovery compressor, are not listed in
paragraph (h)(1) or (2) of this section, and that are either subject to
the well site or compressor station fugitive emissions standards in
Sec. 60.5397a of this chapter or you elect to survey using a leak
detection method described in Sec. 98.234(a).
(8) Equipment leaks from all components in gas service that are not
associated with a vapor recovery compressor, are not listed in
paragraph (h)(1) or (2) of this section, and that are either subject to
the well site or compressor station fugitive emissions standards in
Sec. 60.5397a of this chapter or you elect to survey using a leak
detection method described in Sec. 98.234(a)(6) or (7). If these
components are not subject to the well site or compressor station
fugitive emissions standards in Sec. 60.5397a of this chapter, you may
also elect to report emissions from these components if you elect to
survey them using a leak detection method described in Sec.
98.234(a)(1) through (5).
* * * * *
(j) * * *
(10) Equipment leaks from valves, connectors, open ended lines,
pressure relief valves, pumps, flanges, and other components (such as
instruments, loading arms, stuffing boxes, compressor seals, dump lever
arms, and breather caps, but does not include components in paragraph
(j)(8) or (9) of this section, and it does not include thief hatches or
other openings on a storage vessel).
* * * * *

0
3. Section 98.233 is amended by:
0
a. Revising the parameter EFt of Equation W-1 in paragraph
(a) introductory text, and paragraph (q);

[[Page 86512]]

0
b. Removing the first two sentences of paragraph (r) introductory text
and adding four sentences in their place; and
0
c. Revising the parameters Counte and EFs,e of
Equation W-32A in paragraph (r) introductory text, and paragraphs
(r)(3) through (5).
The revisions read as follows:

Sec. 98.233 Calculating GHG emissions.

* * * * *
(a) * * *
* * * * *

EFt = Population emission factors for natural gas
pneumatic device vents (in standard cubic feet per hour per device)
of each type ``t'' listed in Tables W-1A, W-3B, and W-4B to this
subpart for onshore petroleum and natural gas production, onshore
natural gas transmission compression, and underground natural gas
storage facilities, respectively. Onshore petroleum and natural gas
gathering and boosting facilities must use the population emission
factors listed in Table W-1A to this subpart.

* * * * *
(q) Equipment leak surveys. For the components identified in
paragraphs (q)(1)(i) through (iii) of this section, you must conduct
equipment leak surveys using the leak detection methods specified in
paragraphs (q)(1)(i) through (iii) of this section. For the components
identified in paragraph (q)(1)(iv) of this section, you may elect to
conduct equipment leak surveys, and if you elect to conduct surveys,
you must use a leak detection method specified in paragraph (q)(1)(iv)
of this section. This paragraph (q) applies to components in streams
with gas content greater than 10 percent CH4 plus
CO2 by weight. Components in streams with gas content less
than or equal to 10 percent CH4 plus CO2 by
weight are exempt from the requirements of this paragraph (q) and do
not need to be reported. Tubing systems equal to or less than one half
inch diameter are exempt from the requirements of this paragraph (q)
and do not need to be reported.
(1) Survey requirements. (i) For the components listed in Sec.
98.232(e)(7), (f)(5), (g)(4), and (h)(5), that are not subject to the
well site or compressor station fugitive emissions standards in Sec.
60.5397a of this chapter, you must conduct surveys using any of the
leak detection methods listed in Sec. 98.234(a) and calculate
equipment leak emissions using the procedures specified in paragraph
(q)(2) of this section.
(ii) For the components listed in Sec. 98.232(d)(7) and (i)(1),
you must conduct surveys using any of the leak detection methods listed
in Sec. 98.234(a)(1) through (5) and calculate equipment leak
emissions using the procedures specified in paragraph (q)(2) of this
section.
(iii) For the components listed in Sec. 98.232(c)(21), (e)(7),
(e)(8), (f)(5), (f)(6), (f)(7), (f)(8), (g)(4), (g)(6), (g)(7), (h)(5),
(h)(7), (h)(8), and (j)(10) that are subject to the well site or
compressor station fugitive emissions standards in Sec. 60.5397a of
this chapter, you must conduct surveys using any of the leak detection
methods in Sec. 98.234(a)(6) or (7) and calculate equipment leak
emissions using the procedures specified in paragraph (q)(2) of this
section.
(iv) For the components listed in Sec. 98.232(c)(21), (e)(8),
(f)(6), (f)(7), (f)(8), (g)(6), (g)(7), (h)(7), (h)(8), or (j)(10),
that are not subject to fugitive emissions standards in Sec. 60.5397a
of this chapter, you may elect to conduct surveys according to this
paragraph (q), and, if you elect to do so, then you must use one of the
leak detection methods in Sec. 98.234(a).
(A) If you elect to use a leak detection method in Sec.
98.234(a)(1) through (5) for the surveyed component types in Sec.
98.232(c)(21), (f)(7), (g)(6), (h)(7), or (j)(10) in lieu of the
population count methodology specified in paragraph (r) of this
section, then you must calculate emissions for the surveyed component
types in Sec. 98.232(c)(21), (f)(7), (g)(6), (h)(7), or (j)(10) using
the procedures in paragraph (q)(2) of this section.
(B) If you elect to use a leak detection method in Sec.
98.234(a)(1) through (5) for the surveyed component types in Sec.
98.232(e)(8), (f)(6), (f)(8), (g)(7), and (h)(8), then you must use the
procedures in paragraph (q)(2) of this section to calculate those
emissions.
(C) If you elect to use a leak detection method in Sec.
98.234(a)(6) or (7) for any elective survey under this subparagraph
(q)(1)(iv), then you must survey the component types in Sec.
98.232(c)(21), (e)(8), (f)(6), (f)(7), (f)(8), (g)(6), (g)(7), (h)(7),
(h)(8), and (j)(10) that are not subject to fugitive emissions
standards in Sec. 60.5397a of this chapter, and you must calculate
emissions from the surveyed component types in Sec. 98.232(c)(21),
(e)(8), (f)(6), (f)(7), (f)(8), (g)(6), (g)(7), (h)(7), (h)(8), and
(j)(10) using the emission calculation requirements in paragraph (q)(2)
of this section.
(2) Emission calculation methodology. For industry segments listed
in Sec. 98.230(a)(2) through (9), if equipment leaks are detected
during surveys required or elected for components listed in paragraphs
(q)(1)(i) through (iv) of this section, then you must calculate
equipment leak emissions per component type per reporting facility
using Equation W-30 of this section and the requirements specified in
paragraphs (q)(2)(i) through (xi) of this section. For the industry
segment listed in Sec. 98.230(a)(8), the results from Equation W-30
are used to calculate population emission factors on a meter/regulator
run basis using Equation W-31 of this section. If you chose to conduct
equipment leak surveys at all above grade transmission-distribution
transfer stations over multiple years, ``n,'' according to paragraph
(q)(2)(x)(A) of this section, then you must calculate the emissions
from all above grade transmission-distribution transfer stations as
specified in paragraph (q)(2)(xi) of this section.
[GRAPHIC] [TIFF OMITTED] TR30NO16.000

Where:

Es,p,i = Annual total volumetric emissions of GHGi from
specific component type ``p'' (in accordance with paragraphs
(q)(1)(i) through (iv) of this section) in standard (``s'') cubic
feet, as specified in paragraphs (q)(2)(ii) through (x) of this
section.
xp = Total number of specific component type ``p''
detected as leaking in any leak survey during the year. A component
found leaking in two or more surveys during the year is counted as
one leaking component.
EFs,p = Leaker emission factor for specific component
types listed in Tables W-1E, W-2, W-3A, W-4A, W-5A, W-6A, and W-7 to
this subpart.
GHGi = For onshore petroleum and natural gas production
facilities and onshore petroleum and natural gas gathering and
boosting facilities, concentration of GHGi,
CH4, or CO2, in produced natural gas as
defined in paragraph (u)(2) of this section; for onshore natural gas
processing facilities, concentration of GHGi,
CH4 or CO2, in the total hydrocarbon of the
feed natural gas; for onshore natural gas transmission compression
and underground natural

[[Page 86513]]

gas storage, GHGi equals 0.975 for CH4 and 1.1
x 10^-2 for CO2; for LNG storage and LNG import
and export equipment, GHGi equals 1 for CH4
and 0 for CO2; and for natural gas distribution,
GHGi equals 1 for CH4 and 1.1 x
10^-2 CO2.
Tp,z = The total time the surveyed component ``z,''
component type ``p,'' was assumed to be leaking and operational, in
hours. If one leak detection survey is conducted in the calendar
year, assume the component was leaking for the entire calendar year.
If multiple leak detection surveys are conducted in the calendar
year, assume a component found leaking in the first survey was
leaking since the beginning of the year until the date of the
survey; assume a component found leaking in the last survey of the
year was leaking from the preceding survey through the end of the
year; assume a component found leaking in a survey between the first
and last surveys of the year was leaking since the preceding survey
until the date of the survey; and sum times for all leaking periods.
For each leaking component, account for time the component was not
operational (i.e., not operating under pressure) using an
engineering estimate based on best available data.

(i) You must conduct at least one leak detection survey in a
calendar year. The leak detection surveys selected must be conducted
during the calendar year. If you conduct multiple complete leak
detection surveys in a calendar year, you must use the results from
each complete leak detection survey when calculating emissions using
Equation W-30. For components subject to the well site and compressor
station fugitive emissions standards in Sec. 60.5397a of this chapter,
each survey conducted in accordance with Sec. 60.5397a of this chapter
will be considered a complete leak detection survey for purposes of
this section.
(ii) Calculate both CO2 and CH4 mass
emissions using calculations in paragraph (v) of this section.
(iii) Onshore petroleum and natural gas production facilities must
use the appropriate default whole gas leaker emission factors for
components in gas service, light crude service, and heavy crude service
listed in Table W-1E to this subpart.
(iv) Onshore petroleum and natural gas gathering and boosting
facilities must use the appropriate default whole gas leaker factors
for components in gas service listed in Table W-1E to this subpart.
(v) Onshore natural gas processing facilities must use the
appropriate default total hydrocarbon leaker emission factors for
compressor components in gas service and non-compressor components in
gas service listed in Table W-2 to this subpart.
(vi) Onshore natural gas transmission compression facilities must
use the appropriate default total hydrocarbon leaker emission factors
for compressor components in gas service and non-compressor components
in gas service listed in Table W-3A to this subpart.
(vii) Underground natural gas storage facilities must use the
appropriate default total hydrocarbon leaker emission factors for
storage stations or storage wellheads in gas service listed in Table W-
4A to this subpart.
(viii) LNG storage facilities must use the appropriate default
methane leaker emission factors for LNG storage components in LNG
service or gas service listed in Table W-5A to this subpart.
(ix) LNG import and export facilities must use the appropriate
default methane leaker emission factors for LNG terminals components in
LNG service or gas service listed in Table W-6A to this subpart.
(x) Natural gas distribution facilities must use Equation W-30 of
this section and the default methane leaker emission factors for
transmission-distribution transfer station components in gas service
listed in Table W-7 to this subpart to calculate component emissions
from annual equipment leak surveys conducted at above grade
transmission-distribution transfer stations. Natural gas distribution
facilities are required to perform equipment leak surveys only at above
grade stations that qualify as transmission-distribution transfer
stations. Below grade transmission-distribution transfer stations and
all metering-regulating stations that do not meet the definition of
transmission-distribution transfer stations are not required to perform
equipment leak surveys under this section.
(A) Natural gas distribution facilities may choose to conduct
equipment leak surveys at all above grade transmission-distribution
transfer stations over multiple years ``n,'' not exceeding a five year
period to cover all above grade transmission-distribution transfer
stations. If the facility chooses to use the multiple year option, then
the number of transmission-distribution transfer stations that are
monitored in each year should be approximately equal across all years
in the cycle.
(B) Use Equation W-31 of this section to determine the meter/
regulator run population emission factors for each GHGi. As
additional survey data become available, you must recalculate the
meter/regulator run population emission factors for each
GHGi annually according to paragraph (q)(2)(x)(C) of this
section.
[GRAPHIC] [TIFF OMITTED] TR30NO16.001

Where:

EFs,MR,i = Meter/regulator run population emission factor
for GHGi based on all surveyed above grade transmission-
distribution transfer stations over ``n'' years, in standard cubic
feet of GHGi per operational hour of all meter/regulator
runs.
Es,p,i,y = Annual total volumetric emissions at standard
conditions of GHGi from component type ``p'' during year
``y'' in standard (``s'') cubic feet, as calculated using Equation
W-30 of this section.
p = Seven component types listed in Table W-7 to this subpart for
transmission-distribution transfer stations.
Tw,y = The total time the surveyed meter/regulator run
``w'' was operational, in hours during survey year ``y'' using an
engineering estimate based on best available data.
CountMR,y = Count of meter/regulator runs surveyed at
above grade transmission-distribution transfer stations in year
``y''.
y = Year of data included in emission factor ``EFs,MR,i''
according to paragraph (q)(2)(x)(C) of this section.
n = Number of years of data, according to paragraph (q)(2)(x)(A) of
this section, whose results are used to calculate emission factor
``EFs,MR,i'' according to paragraph (q)(2)(x)(C) of this
section.

(C) The emission factor ``EFs,MR,i,'' based on annual
equipment leak surveys at above grade transmission-distribution
transfer stations, must be calculated

[[Page 86514]]

annually. If you chose to conduct equipment leak surveys at all above
grade transmission-distribution transfer stations over multiple years,
``n,'' according to paragraph (q)(2)(x)(A) of this section and you have
submitted a smaller number of annual reports than the duration of the
selected cycle period of 5 years or less, then all available data from
the current year and previous years must be used in the calculation of
the emission factor ``EFs,MR,i'' from Equation W-31 of this
section. After the first survey cycle of ``n'' years is completed and
beginning in calendar year (n+1), the survey will continue on a rolling
basis by including the survey results from the current calendar year
``y'' and survey results from all previous (n-1) calendar years, such
that each annual calculation of the emission factor
``EFs,MR,i'' from Equation W-31 is based on survey results
from ``n'' years. Upon completion of a cycle, you may elect to change
the number of years in the next cycle period (to be 5 years or less).
If the number of years in the new cycle is greater than the number of
years in the previous cycle, calculate ``EFs,MR,i'' from
Equation W-31 in each year of the new cycle using the survey results
from the current calendar year and the survey results from the
preceding number years that is equal to the number of years in the
previous cycle period. If the number of years, ``nnew,'' in
the new cycle is smaller than the number of years in the previous
cycle, ``n,'' calculate ``EFs,MR,i'' from Equation W-31 in
each year of the new cycle using the survey results from the current
calendar year and survey results from all previous (nnew-1)
calendar years.
(xi) If you chose to conduct equipment leak surveys at all above
grade transmission-distribution transfer stations over multiple years,
``n,'' according to paragraph (q)(2)(x)(A) of this section, you must
use the meter/regulator run population emission factors calculated
using Equation W-31 of this section and the total count of all meter/
regulator runs at above grade transmission-distribution transfer
stations to calculate emissions from all above grade transmission-
distribution transfer stations using Equation W-32B in paragraph (r) of
this section.
(r) * * * This paragraph (r) applies to emissions sources listed in
Sec. 98.232(c)(21), (f)(7), (g)(5), (h)(6), and (j)(10) if you are not
required to comply with paragraph (q) of this section and if you do not
elect to comply with paragraph (q) of this section for these components
in lieu of this paragraph (r). This paragraph (r) also applies to
emission sources listed in Sec. 98.232(i)(2), (i)(3), (i)(4), (i)(5),
(i)(6), and (j)(11). To be subject to the requirements of this
paragraph (r), the listed emissions sources also must contact streams
with gas content greater than 10 percent CH plus
CO2 by weight. Emissions sources that contact streams with
gas content less than or equal to 10 percent CH4 plus
CO2 by weight are exempt from the requirements of this
paragraph (r) and do not need to be reported. * * *
* * * * *

Counte = Total number of the emission source type at the
facility. For onshore petroleum and natural gas production
facilities and onshore petroleum and natural gas gathering and
boosting facilities, average component counts are provided by major
equipment piece in Tables W-1B and Table W-1C to this subpart. Use
average component counts as appropriate for operations in Eastern
and Western U.S., according to Table W-1D to this subpart. Onshore
petroleum and natural gas gathering and boosting facilities must
also count the miles of gathering pipelines by material type
(protected steel, unprotected steel, plastic, or cast iron).
Underground natural gas storage facilities must count each component
listed in Table W-4B to this subpart. LNG storage facilities must
count the number of vapor recovery compressors. LNG import and
export facilities must count the number of vapor recovery
compressors. Natural gas distribution facilities must count: (1) The
number of distribution services by material type; (2) miles of
distribution mains by material type; and (3) number of below grade
metering-regulating stations, by pressure type; as listed in Table
W-7 to this subpart.
* * * * *
EFs,e = Population emission factor for the specific
emission source type, as listed in Tables W-1A, W-4B, W-5B, W-6B,
and W-7 to this subpart. Use appropriate population emission factor
for operations in Eastern and Western U.S., according to Table W-1D
to this subpart.
* * * * *

(3) Underground natural gas storage facilities must use the
appropriate default total hydrocarbon population emission factors for
storage wellheads in gas service listed in Table W-4B to this subpart.
(4) LNG storage facilities must use the appropriate default methane
population emission factor for LNG storage compressors in gas service
listed in Table W-5B to this subpart.
(5) LNG import and export facilities must use the appropriate
default methane population emission factor for LNG terminal compressors
in gas service listed in Table W-6B to this subpart.
* * * * *

0
4. Section 98.234 is amended by:
0
a. Revising paragraph (a) introductory text, the paragraph (a)(1)
heading, and the fourth sentence in paragraph (a)(2); and
0
b. Adding paragraphs (a)(6) and (7).
The revisions and additions read as follows:
* * * * *

Sec. 98.234 Monitoring and QA/QC requirements.

(a) You must use any of the methods described in paragraphs (a)(1)
through (5) of this section to conduct leak detection(s) of through-
valve leakage from all source types listed in Sec. 98.233(k), (o), and
(p) that occur during a calendar year. You must use any of the methods
described in paragraphs (a)(1) through (7) of this section to conduct
leak detection(s) of equipment leaks from components as specified in
Sec. 98.233(q)(1)(i) that occur during a calendar year. You must use
any of the methods described in paragraphs (a)(1) through (5) of this
section to conduct leak detection(s) of equipment leaks from components
as specified in Sec. 98.233(q)(1)(ii) that occur during a calendar
year. You must use one of the methods described in paragraph (a)(6) or
(7) of this section to conduct leak detection(s) of equipment leaks
from components as specified in Sec. 98.233(q)(1)(iii). If electing to
comply with Sec. 98.233(q) as specified in Sec. 98.233(q)(1)(iv), you
must use any of the methods described in paragraphs (a)(1) through (7)
of this section to conduct leak detection(s) of equipment leaks from
component types as specified in Sec. 98.233(q)(1)(iv) that occur
during a calendar year.
(1) Optical gas imaging instrument as specified in Sec. 60.18 of
this chapter. * * *
* * * * *
(2) * * * If the equipment leak detection methods in this paragraph
cannot be used, you must use alternative leak detection devices as
described in paragraph (a)(1) of this section to monitor inaccessible
equipment leaks or vented emissions.
* * * * *
(6) Optical gas imaging instrument as specified in Sec. 60.5397a
of this chapter. Use an optical gas imaging instrument for equipment
leak detection in accordance with Sec. 60.5397a(b), (c)(3), (c)(7),
and (e) of this chapter and paragraphs (a)(6)(i) through (iii) of this
section. Unless using methods in paragraph (a)(7) of this section, an
optical gas imaging instrument must be used for all source types that
are inaccessible and cannot be monitored without elevating the
monitoring

[[Page 86515]]

personnel more than 2 meters above a support surface.
(i) For the purposes of this subpart, any visible emissions from a
component listed in Sec. 98.232 observed by the optical gas imaging
instrument is a leak.
(ii) For the purposes of this subpart, the term ``fugitive
emissions component'' in Sec. 60.5397a of this chapter means
``component.''
(iii) For the purpose of complying with Sec. 98.233(q)(1)(iv), the
phrase ``the collection of fugitive emissions components at well sites
and compressor stations'' in Sec. 60.5397a(b) of this chapter means
``the collection of components for which you elect to comply with Sec.
98.233(q)(1)(iv).''
(7) Method 21 as specified in Sec. 60.5397a of this chapter. Use
the equipment leak detection methods in appendix A-7 to part 60 of this
chapter, Method 21, in accordance with Sec. 60.5397a(b), (c)(8), and
(e) of this chapter and paragraphs (a)(7)(i) through (iii) of this
section. Inaccessible emissions sources, as defined in part 60 of this
chapter, are not exempt from this subpart. If the equipment leak
detection methods in this paragraph cannot be used, you must use
alternative leak detection devices as described in paragraph (a)(6) of
this section to monitor inaccessible equipment leaks.
(i) For the purposes of this subpart, any instrument reading from a
component listed in Sec. 98.232 of this chapter of 500 ppm or greater
using Method 21 is a leak.
(ii) For the purposes of this subpart, the term ``fugitive
emissions component'' in Sec. 60.5397a of this chapter means
``component.''
(iii) For the purpose of complying with Sec. 98.233(q)(1)(iv), the
phrase ``the collection of fugitive emissions components at well sites
and compressor stations'' in Sec. 60.5397a(b) of this chapter means
``the collection of components for which you elect to comply with Sec.
98.233(q)(1)(iv).''
* * * * *

0
5. Section 98.236 is amended by:
0
a. Redesignating paragraphs (a)(1)(xiv) through (xvii) as paragraphs
(a)(1)(xv) through (xviii), respectively;
0
b. Adding new paragraph (a)(1)(xiv);
0
c. Redesignating paragraphs (a)(9)(x) and (xi) as paragraphs (a)(9)(xi)
and (xii), respectively;
0
d. Adding new paragraph (a)(9)(x);
0
e. Revising paragraph (q) introductory text, paragraph (q)(1),
paragraph (q)(2) introductory text, paragraph (r)(3)(ii) introductory
text, and the second sentence of paragraph (z) introductory text.
The revisions and additions read as follows:

Sec. 98.236 Data reporting requirements.

* * * * *
(a) * * *
(1) * * *
(xiv) Equipment leak surveys. Report the information specified in
paragraph (q) of this section.
* * * * *
(9) * * *
(x) Equipment leak surveys. Report the information specified in
paragraph (q) of this section.
* * * * *
(q) Equipment leak surveys. For any components subject to or
complying with the requirements of Sec. 98.233(q), you must report the
information specified in paragraphs (q)(1) and (2) of this section.
Natural gas distribution facilities with emission sources listed in
Sec. 98.232(i)(1) must also report the information specified in
paragraph (q)(3) of this section.
(1) You must report the information specified in paragraphs
(q)(1)(i) through (v) of this section.
(i) Except as specified in paragraph (q)(1)(ii) of this section,
the number of complete equipment leak surveys performed during the
calendar year.
(ii) Natural gas distribution facilities performing equipment leak
surveys across a multiple year leak survey cycle must report the number
of years in the leak survey cycle.
(iii) Except for onshore natural gas processing facilities and
natural gas distribution facilities, indicate whether any equipment
components at your facility are subject to the well site or compressor
station fugitive emissions standards in Sec. 60.5397a of this chapter.
Report the indication per facility, not per component type.
(iv) For facilities in onshore petroleum and natural gas
production, onshore petroleum and natural gas gathering and boosting,
onshore natural gas transmission compression, underground natural gas
storage, LNG storage, and LNG import and export equipment, indicate
whether you elected to comply with Sec. 98.233(q) according to Sec.
98.233(q)(1)(iv) for any equipment components at your facility.
(v) Report each type of method described in Sec. 98.234(a) that
was used to conduct leak surveys.
(2) You must indicate whether your facility contains any of the
component types subject to or complying with Sec. 98.233(q) that are
listed in Sec. 98.232(c)(21), (d)(7), (e)(7), (e)(8), (f)(5), (f)(6),
(f)(7), (f)(8), (g)(4), (g)(6), (g)(7), (h)(5), (h)(7), (h)(8), (i)(1),
or (j)(10) for your facility's industry segment. For each component
type that is located at your facility, you must report the information
specified in paragraphs (q)(2)(i) through (v) of this section. If a
component type is located at your facility and no leaks were identified
from that component, then you must report the information in paragraphs
(q)(2)(i) through (v) of this section but report a zero (``0'') for the
information required according to paragraphs (q)(2)(ii) through (v) of
this section.
* * * * *
(r) * * *
(3) * * *
(ii) Onshore petroleum and natural gas production facilities and
onshore petroleum and natural gas gathering and boosting facilities
must report the information specified in paragraphs (r)(3)(ii)(A) and
(B) of this section, for each major equipment type, production type
(i.e., natural gas or crude oil), and geographic location combination
in Tables W-1B and W-1C to this subpart for which equipment leak
emissions are calculated using the methodology in Sec. 98.233(r).
* * * * *
(z) * * * If your facility contains any combustion units subject to
reporting according to paragraph (a)(1)(xviii), (a)(8)(i), or
(a)(9)(xii) of this section, then you must report the information
specified in paragraphs (z)(1) and (2) of this section, as applicable.
* * * * *

0
6. Add Table W-1E to subpart W of part 98 in numerical order to read as
follows:

[[Page 86516]]

Table W-1E to Subpart W of Part 98--Default Whole Gas Leaker Emission
Factors for Onshore Petroleum and Natural Gas Production and Onshore
Petroleum and Natural Gas Gathering and Boosting
------------------------------------------------------------------------
Emission factor (scf/hour/component)
-------------------------------------------
If you survey using
Equipment components any of the methods If you survey using
in Sec. Method 21 as
98.234(a)(1) specified in Sec.
through (6) 98.234(a)(7)
------------------------------------------------------------------------
Leaker Emission Factors--All Components, Gas Service
------------------------------------------------------------------------
Valve....................... 4.9 3.5
Flange...................... 4.1 2.2
Connector (other)........... 1.3 0.8
Open-Ended Line 2........... 2.8 1.9
Pressure Relief Valve....... 4.5 2.8
Pump Seal................... 3.7 1.4
Other 3..................... 4.5 2.8
------------------------------------------------------------------------
Leaker Emission Factors--All Components, Light Crude Service
------------------------------------------------------------------------
Valve....................... 3.2 2.2
Flange...................... 2.7 1.4
Connector (other)........... 1.0 0.6
Open-Ended Line............. 1.6 1.1
Pump........................ 3.7 2.6
Agitator Seal............... 3.7 2.6
Other 3..................... 3.1 2.0
------------------------------------------------------------------------
Leaker Emission Factors--All Components, Heavy Crude Service
------------------------------------------------------------------------
Valve....................... 3.2 2.2
Flange...................... 2.7 1.4
Connector (other)........... 1.0 0.6
Open-Ended Line............. 1.6 1.1
Pump........................ 3.7 2.6
Agitator Seal............... 3.7 2.6
Other 3..................... 3.1 2.0
------------------------------------------------------------------------
1 For multi-phase flow that includes gas, use the gas service emission
factors.
2 The open-ended lines component type includes blowdown valve and
isolation valve leaks emitted through the blowdown vent stack for
centrifugal and reciprocating compressors.
3 ``Others'' category includes any equipment leak emission point not
specifically listed in this table, as specified in Sec.
98.232(c)(21) and (j)(10).
4 Hydrocarbon liquids greater than or equal to 20[deg]API are considered
``light crude.''
5 Hydrocarbon liquids less than 20[deg]API are considered ``heavy
crude.''

0
7. Remove Table W-3 to subpart W of part 98 and add Table W-3A and
Table W-3B to subpart W of part 98 in numerical order to read as
follows:

Table W-3A to Subpart W of Part 98--Default Total Hydrocarbon Leaker
Emission Factors for Onshore Natural Gas Transmission Compression
------------------------------------------------------------------------
Emission factor (scf/hour/component)
-------------------------------------------
If you survey using
Onshore natural gas any of the methods If you survey using
transmission compression in Sec. Method 21 as
98.234(a)(1) specified in Sec.
through (6) 98.234(a)(7)
------------------------------------------------------------------------
Leaker Emission Factors--Compressor Components, Gas Service
------------------------------------------------------------------------
Valve \1\................... 14.84 9.51
Connector................... 5.59 3.58
Open-Ended Line............. 17.27 11.07
Pressure Relief Valve....... 39.66 25.42
Meter or Instrument......... 19.33 12.39
Other \2\................... 4.1 2.63
------------------------------------------------------------------------
Leaker Emission Factors--Non-Compressor Components, Gas Service
------------------------------------------------------------------------
Valve \1\................... 6.42 4.12
Connector................... 5.71 3.66
Open-Ended Line............. 11.27 7.22

[[Page 86517]]

Pressure Relief Valve....... 2.01 1.29
Meter or Instrument......... 2.93 1.88
Other \2\................... 4.1 2.63
------------------------------------------------------------------------
\1\ Valves include control valves, block valves and regulator valves.
\2\ Other includes any potential equipment leak emission point in gas
service that is not specifically listed in this table, as specified in
Sec. 98.232(e)(8).

Table W-3B to Subpart W of Part 98--Default Total Hydrocarbon Population
Emission Factors for Onshore Natural Gas Transmission Compression
------------------------------------------------------------------------
Population emission factors--gas service onshore Emission factor (scf/
natural gas transmission compression hour/component)
------------------------------------------------------------------------
Low Continuous Bleed Pneumatic Device Vents \1\... 1.37
High Continuous Bleed Pneumatic Device Vents \1\.. 18.20
Intermittent Bleed Pneumatic Device Vents \1\..... 2.35
------------------------------------------------------------------------
1 Emission Factor is in units of ``scf/hour/device.''

0
8. Remove Table W-4 to subpart W of part 98 and add Table W-4A and
Table W-4B to subpart W of part 98 in numerical order to read as
follows:

Table W-4A to Subpart W of Part 98--Default Total Hydrocarbon Leaker
Emission Factors for Underground Natural Gas Storage
------------------------------------------------------------------------
Emission factor (scf/hour/component)
-------------------------------------------
If you survey using
Underground natural gas any of the methods If you survey using
storage in Sec. Method 21 as
98.234(a)(1) specified in Sec.
through (6) 98.234(a)(7)
------------------------------------------------------------------------
Leaker Emission Factors--Storage Station, Gas Service
------------------------------------------------------------------------
Valve \1\................... 14.84 9.51
Connector (other)........... 5.59 3.58
Open-Ended Line............. 17.27 11.07
Pressure Relief Valve....... 39.66 25.42
Meter and Instrument........ 19.33 12.39
Other \2\................... 4.1 2.63
------------------------------------------------------------------------
Leaker Emission Factors--Storage Wellheads, Gas Service
------------------------------------------------------------------------
Valve \1\................... 4.5 3.2
Connector (other than 1.2 0.7
flanges)...................
Flange...................... 3.8 2.0
Open-Ended Line............. 2.5 1.7
Pressure Relief Valve....... 4.1 2.5
Other \2\................... 4.1 2.5
------------------------------------------------------------------------
\1\ Valves include control valves, block valves and regulator valves.
\2\ Other includes any potential equipment leak emission point in gas
service that is not specifically listed in this table, as specified in
Sec. 98.232(f)(6) and (8).

Table W-4B to Subpart W of Part 98--Default Total Hydrocarbon Population
Emission Factors for Underground Natural Gas Storage
------------------------------------------------------------------------
Emission factor
Underground natural gas storage (scf/hour/component)
------------------------------------------------------------------------
Population Emission Factors--Storage Wellheads, Gas Service
------------------------------------------------------------------------
Connector......................................... 0.01

[[Page 86518]]

Valve............................................. 0.1
Pressure Relief Valve............................. 0.17
Open-Ended Line................................... 0.03
------------------------------------------------------------------------
Population Emission Factors--Other Components, Gas Service
------------------------------------------------------------------------
Low Continuous Bleed Pneumatic Device Vents \1\... 1.37
High Continuous Bleed Pneumatic Device Vents \1\.. 18.20
Intermittent Bleed Pneumatic Device Vents \1\..... 2.35
------------------------------------------------------------------------
\1\ Emission Factor is in units of ``scf/hour/device.''

0
9. Remove Table W-5 to subpart W of part 98 and add Table W-5A and
Table W-5B to subpart W of part 98 in numerical order to read as
follows:

Table W-5A to Subpart W of Part 98--Default Methane Leaker Emission
Factors for Liquefied Natural Gas (LNG) Storage
------------------------------------------------------------------------
Emission factor (scf/hour/component)
-------------------------------------------
If you survey using
LNG storage any of the methods If you survey using
in Sec. Method 21 as
98.234(a)(1) specified in Sec.
through (6) 98.234(a)(7)
------------------------------------------------------------------------
Leaker Emission Factors--LNG Storage Components, LNG Service
------------------------------------------------------------------------
Valve....................... 1.19 0.23
Pump Seal................... 4.00 0.73
Connector................... 0.34 0.11
Other \1\................... 1.77 0.99
------------------------------------------------------------------------
Leaker Emission Factors--LNG Storage Components, Gas Service
------------------------------------------------------------------------
Valve \2\................... 14.84 9.51
Connector................... 5.59 3.58
Open-Ended Line............. 17.27 11.07
Pressure Relief Valve....... 39.66 25.42
Meter and Instrument........ 19.33 12.39
Other \3\................... 4.1 2.63
------------------------------------------------------------------------
\1\ ``Other'' equipment type for components in LNG service should be
applied for any equipment type other than connectors, pumps, or
valves.
\2\ Valves include control valves, block valves and regulator valves.
\3\ ``Other'' equipment type for components in gas service should be
applied for any equipment type other than valves, connectors, flanges,
open-ended lines, pressure relief valves, and meters and instruments,
as specified in Sec. 98.232(g)(6) and (7).

Table W-5B to Subpart W of Part 98--Default Methane Population Emission
Factors for Liquefied Natural Gas (LNG) Storage
------------------------------------------------------------------------
Emission factor
LNG storage (scf/hour/component)
------------------------------------------------------------------------
Population Emission Factors--LNG Storage Compressor, Gas Service
------------------------------------------------------------------------
Vapor Recovery Compressor \1\..................... 4.17
------------------------------------------------------------------------
\1\ Emission Factor is in units of ``scf/hour/device.''

0
10. Remove Table W-6 to subpart W of part 98 and add Table W-6A and
Table W-6B to subpart W of part 98 in numerical order to read as
follows:

[[Page 86519]]

Table W-6A to Subpart W of Part 98--Default Methane Leaker Emission
Factors for LNG Import and Export Equipment
------------------------------------------------------------------------
Emission factor (scf/hour/component)
-------------------------------------------
If you survey using
LNG import and export any of the methods If you survey using
equipment in Sec. Method 21 as
98.234(a)(1) specified in Sec.
through (6) 98.234(a)(7)
------------------------------------------------------------------------
Leaker Emission Factors--LNG Terminals Components, LNG Service
------------------------------------------------------------------------
Valve....................... 1.19 0.23
Pump Seal................... 4.00 0.73
Connector................... 0.34 0.11
Other \1\................... 1.77 0.99
------------------------------------------------------------------------
Leaker Emission Factors--LNG Terminals Components, Gas Service
------------------------------------------------------------------------
Valve \2\................... 14.84 9.51
Connector................... 5.59 3.58
Open-Ended Line............. 17.27 11.07
Pressure Relief Valve....... 39.66 25.42
Meter and Instrument........ 19.33 12.39
Other \3\................... 4.1 2.63
------------------------------------------------------------------------
\1\ ``Other'' equipment type for components in LNG service should be
applied for any equipment type other than connectors, pumps, or
valves.
\2\ Valves include control valves, block valves and regulator valves.
\3\ ``Other'' equipment type for components in gas service should be
applied for any equipment type other than valves, connectors, flanges,
open-ended lines, pressure relief valves, and meters and instruments,
as specified in Sec. 98.232(h)(7) and (8).

Table W-6B to Subpart W of Part 98--Default Methane Population Emission
Factors for LNG Import and Export Equipment
------------------------------------------------------------------------
Emission factor
LNG import and export equipment (scf/hour/component)
------------------------------------------------------------------------
Population Emission Factors--LNG Terminals Compressor, Gas Service
------------------------------------------------------------------------
Vapor Recovery Compressor \1\..................... 4.17
------------------------------------------------------------------------
\1\ Emission Factor is in units of ``scf/hour/compressor.''

[FR Doc. 2016-27981 Filed 11-29-16; 8:45 am]
BILLING CODE 6560-50-P

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