California Air Plan Revisions; California Air Resources Board and Local California Air Districts; Crude Oil and Natural Gas Facilities, 36729-36737 [2024-09306]

Download as PDF Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules that fact to the Federal, State, or local bar or other licensing authority of the covered attorney concerned. If so reported, notice to the covered attorney shall be provided by the Rules Counsel. This decision in no way diminishes a covered attorney’s responsibility to report adverse professional disciplinary action as required by the attorney’s Federal, State, and local bar or other licensing authority. § 776.14 Public notice. The JAG will periodically publish JAGNOTE 5803, a listing of attorneys whose certification or authority to practice law in any area under the cognizance of the JAG is currently suspended, revoked, or limited. lotter on DSK11XQN23PROD with PROPOSALS1 § 776.15 Requests for reinstatement. (a) Attorneys whose certification or authority to practice law in any area under the cognizance of the JAG has been suspended may request reinstatement no earlier than 5 years after the effective date of suspension. Attorneys whose certification or authority to practice law in any area under the cognizance of the JAG has been revoked may not request reinstatement. (b) Requests for reinstatement must be signed under oath, and must describe with particularity the manner in which he or she meets each of the criteria listed as follows: (1) The attorney has fully complied with all conditions imposed at the time of the imposition of sanctions; (2) The attorney has not engaged in or attempted to engage in the unauthorized practice of law within the Department of the Navy during the period of suspension; (3) If the attorney was suffering under a physical disability or other infirmity at the time of the imposition of sanctions, including alcohol abuse, the attorney must provide independent evidence that the disability or infirmity has been removed. Attorneys whose disability or infirmity included the possession or use of controlled substances in violation of Article 112a, UCMJ, shall not be reinstated; (4) The attorney has recognized the wrongfulness and seriousness of the misconduct for which sanctions were imposed; (5) The attorney has not engaged in other professional or personal misconduct since sanctions were imposed; (6) Notwithstanding the misconduct that resulted in imposition of sanctions, the attorney has the requisite honesty and integrity to practice before general courts-martial and all other VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 administrative and judicial proceedings under the cognizance of the JAG; (7) The attorney has kept informed about recent legal developments and is competent to practice before general courts-martial and all other administrative and judicial proceedings under the cognizance of the JAG; and (8) Sufficient time has elapsed since imposition of sanctions and revocation of sanctions would be appropriate in view of the seriousness of the misconduct that resulted in sanctions and the effect that revocation of sanctions would have on the reputation of the community of covered attorneys who practice under the cognizance and supervision of the JAG. (c) The decision whether to grant a request for reinstatement is solely within the discretion of the JAG. Although the JAG will consider the factors listed in this section and any additional information provided by the requesting attorney, the JAG has complete discretion to determine whether reinstatement would be appropriate. The JAG’s decision is final. Dated: April 25, 2024. J.E. Koningisor, Lieutenant Commander, Judge Advocate General’s Corps, U.S. Navy, Federal Register Liaison Officer. [FR Doc. 2024–09257 Filed 5–2–24; 8:45 am] BILLING CODE 3810–FF–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R09–OAR–2024–0175; FRL–11888– 01–R9] California Air Plan Revisions; California Air Resources Board and Local California Air Districts; Crude Oil and Natural Gas Facilities Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing to approve revisions to a California statewide rule and six California air district rules into the California State Implementation Plan (SIP) under the Clean Air Act (CAA or the Act). These revisions concern emissions of volatile organic compounds (VOCs) from crude oil and natural gas facilities. Based on our proposed finding that these revisions correct previously-identified deficiencies in these rules, we are now proposing to fully approve the reasonably available control technology SUMMARY: PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 36729 (RACT) requirement for the 2008 and 2015 ozone National Ambient Air Quality Standards (NAAQS) for sources covered by the EPA’s 2016 Control Techniques Guidelines for the Oil and Natural Gas Industry (‘‘2016 Oil and Gas CTG’’) for the Sacramento Metropolitan Air Quality Management District (SMAQMD), San Joaquin Valley Unified Air Pollution Control District (SJVUAPCD), Ventura County Air Pollution Control District (VCAPCD), and the Yolo-Solano Air Quality Management District (YSAQMD). We are also proposing to conditionally approve the RACT requirement for the 2008 and 2015 ozone NAAQS for sources covered by the EPA’s 2016 Oil and Gas CTG for the South Coast Air Quality Management District (SCAQMD). We are taking comments on this proposal and plan to follow with a final action. DATES: Comments must be received on or before June 3, 2024. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–R09– OAR–2024–0175 at https:// www.regulations.gov. For comments submitted at Regulations.gov, follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from Regulations.gov. The EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. The EPA will generally not consider comments or comment contents located outside of the primary submission (i.e., on the web, cloud, or other file sharing system). For additional submission methods, please contact the person identified in the FOR FURTHER INFORMATION CONTACT section. For the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit https://www.epa.gov/dockets/ commenting-epa-dockets. If you need assistance in a language other than English or if you are a person with disabilities who needs a reasonable accommodation at no cost to you, please contact the person identified in the FOR FURTHER INFORMATION CONTACT section. FOR FURTHER INFORMATION CONTACT: Nicole Law, EPA Region IX, 75 Hawthorne St., San Francisco, CA, E:\FR\FM\03MYP1.SGM 03MYP1 36730 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules 94105. By phone: (415) 947–4126 or by email at law.nicole@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document, ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to the EPA. Table of Contents I. The State’s Submittal A. What did the State submit? B. Are there earlier versions of the submitted documents in the SIP? C. What is the purpose of the submitted rules? II. The EPA’s Evaluation and Action A. How is the EPA evaluating these rules? B. Do these rules meet the evaluation criteria? C. Were there any newly identified deficiencies with the April 2, 2024 submitted CARB Oil and Gas Methane Rule? D. The EPA’s Recommendations To Further Improve the Rules E. Public Comment and Proposed Action III. Incorporation by Reference IV. Statutory and Executive Order Reviews I. The State’s Submittal A. What did the State submit? Table 1 lists the rules addressed by this proposal with the dates that they were adopted and submitted by the California Air Resources Board (CARB). TABLE 1—SUBMITTED RULES Agency Rule title CARB ................ California Code of Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 4 Subarticle 13: Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (‘‘CARB Oil and Gas Methane Rule’’). Rule 4409—Components at Light Crude Oil Production Facilities, Natural Gas Production Facilities, and Natural Gas Processing Facilities. Rule 4623—Storage of Organic Liquids * ........................................................................................ Rule 4401—Steam-Enhanced Crude Oil Production Wells * .......................................................... Rule 71.1—Crude Oil Production and Separation .......................................................................... Rule 463—Organic Liquid Storage .................................................................................................. Rule 1178—Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities SJVUAPCD ....... SJVUAPCD ....... SJVUAPCD ....... VCAPCD ........... SCAQMD ........... SCAQMD ........... Adopted/ amended Submitted 06/22/2023 04/02/2024 06/15/2023 10/13/2023 06/15/2023 06/15/2023 07/11/2023 05/05/2023 09/01/2023 10/13/2023 10/13/2023 01/10/2024 10/13/2023 02/14/2024 * In two letters from Sheraz Gill, Deputy Air Pollution Control Officer, SJVUAPCD, to Lisa Beckham, Manager, EPA Region IX, both dated April 18, 2024, SJVUAPCD described administrative corrections to Rule 4401 section 5.4.4.2 to clarify which tables to refer to for repair leak time frames and Rule 4623 to correct table numbers and references throughout Rule 4623. The administrative corrections are minor, only clarify what is already in the rule, and do not impact our analysis of the approvability of the rules. The corrections are consistent with SJVUAPCD’s Board’s intent and SJVUAPCD has submitted the revised rules to the EPA to replace earlier submitted versions. For this proposed action, we are basing our evaluation on the SJVUAPCD rules as corrected. lotter on DSK11XQN23PROD with PROPOSALS1 The EPA has reviewed the submittals containing the documents listed in table 1 and finds that they fulfill the completeness criteria in 40 CFR part 51, appendix V, which must be met before formal EPA review. The March 26, 2024, submittal letter to the EPA from CARB included a commitment to submit an amended version of SCAQMD Rule 1148.1 within 12 months of the effective date of our final action that will remedy the deficiency identified in this document.1 B. Are there earlier versions of the submitted documents in the SIP? On September 30, 2022 (87 FR 59314), we finalized a limited approval and limited disapproval of California Code of Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 4 Subarticle 13: Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (‘‘CARB Oil and Gas Methane Rule’’) as adopted on March 23, 2017. That action also finalized a disapproval of the RACT requirement for the 2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil and Gas CTG regulated by various California air districts. CARB adopted revisions to the SIP-approved 1 Letter dated March 26, 2024, submitted with the CARB Oil and Gas Methane Rule, from Steven S. Cliff, Executive Officer, CARB, to Martha Guzman, Regional Administrator, EPA, Region 9. VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 version of the CARB Oil and Gas Methane Rule on June 22, 2023, and submitted them to us on April 2, 2024. We previously approved earlier versions of the six local air rules listed in table 1 into the SIP as follows: SJVUAPCD Rule 4409 on March 23, 2006 (71 FR 14652), SJVUAPCD Rule 4623 on September 13, 2005 (70 FR 53936), SJVUAPCD Rule 4401 on November 16, 2011 (76 FR 70886), VCAPCD Rule 71.1 on August 4, 1994 (59 FR 39690), SCAQMD Rule 463 on March 28, 2013 (78 FR 18853), and SCAQMD Rule 1178 on August 28, 2007 (72 FR 49196). If we finalize our approval as proposed, the amended versions of the rules listed in table 1 will replace the previously approved versions of these rules in the SIP. C. What is the purpose of the submitted rules? Emissions of VOCs contribute to the production of ground-level ozone, smog and particulate matter (PM), which harm human health and the environment. Section 110(a) of the CAA requires states to submit plans that provide for implementation, maintenance, and enforcement of the NAAQS. In addition, CAA section 182(b)(2) requires, among other things, that SIPs for ozone nonattainment areas classified as ‘‘Moderate’’ or higher PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 implement RACT for any category of sources covered by a control techniques guidelines (CTG) document. SMAQMD, SJVUAPCD, VCAPCD, SCAQMD, and YSAQMD all regulate ozone nonattainment areas that are classified as Moderate or higher for the 2008 and 2015 8-hour ozone NAAQS.2 The State is required to submit SIP revisions that implement RACT-level controls for all sources covered by a CTG document within the applicable nonattainment areas. The CARB Oil and Gas Methane Rule was submitted to establish RACTlevel VOC controls on sources covered by the 2016 Oil and Gas CTG in these areas. The CARB Oil and Gas Methane Rule establishes methane emission standards for crude oil and natural gas facilities in furtherance of the California Global Warming Solutions Act (AB 32, as codified in sections 38500–38599 of the California Health and Safety Code). The rule can be used to limit VOC emissions to meet RACT requirements because many of the methane controls in the CARB Oil and Gas Methane Rule also reduce VOC emissions. Additionally, the CARB Oil and Gas Methane Rule relies, in part, on requirements in local air district rules to establish RACT-level controls on VOC emissions. Five of 2 40 CFR 81.305. We refer to these air districts collectively as the ‘‘applicable local air districts.’’ E:\FR\FM\03MYP1.SGM 03MYP1 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules those rules are already approved into the California SIP and we are proposing approval of the other six in this rulemaking. SJVUAPCD Rule 4401 is designed to limit VOC emissions at steam-enhanced crude oil production wells. SJVUAPCD Rule 4409 is designed to control VOC emissions from leaking components at natural gas processing facilities and light crude oil and natural gas production facilities. SJVUAPCD Rule 4623 is designed to decrease VOC emissions from the storage of organic liquids. VCAPCD Rule 71.1 controls VOCs by establishing requirements for equipment used in the production, gathering, storage, processing, and separation of crude oil and natural gas from any petroleum production permit unit prior to custody transfer. SCAQMD Rule 463 and Rule 1178 control VOCs by establishing roof and cover requirements as well as vapor recovery system requirements for stationary above-ground tanks storing organic liquids. The EPA’s technical support documents (TSDs) for this action have more information about these rules and are included in the docket for this rulemaking.3 lotter on DSK11XQN23PROD with PROPOSALS1 II. The EPA’s Evaluation and Action A. How is the EPA evaluating these rules? Rules in the SIP must be enforceable (see CAA section 110(a)(2)) and must not interfere with applicable requirements concerning attainment and reasonable further progress or other CAA requirements (see CAA section 110(l)). In addition, because these rules were submitted in part to satisfy the RACT requirement for sources covered by the 2016 Oil and Gas CTG in the applicable local air districts, these rules must establish RACT level controls for such sources. Section III.D of the preamble to the EPA’s final rule to implement the 2008 8-hour ozone NAAQS and sections III.F and IV.B of the preamble to the EPA’s final rule to implement the 2015 8-hour ozone NAAQS discusses RACT requirements.4 The CARB Oil and Gas Methane Rule applies statewide, including within the applicable local air districts. However, the CARB Oil and Gas Methane Rule contains exemptions for certain equipment, provided that the equipment is subject to one of several specified local air district rules. Therefore, in order to establish RACT level controls 3 There are seven TSDs that support this action, one for each rule listed in table 1. 4 80 FR 12264, March 6, 2015, and 83 FR 62998, December 6, 2018. VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 for all facilities covered by the 2016 Oil and Gas CTG, both the CARB Oil and Gas Methane Rule and the local air district rules referenced within the CARB Oil and Gas Methane Rule must implement RACT. In our September 30, 2022 action, we found that the CARB Oil and Gas Methane Rule, and the associated local air district rules were largely consistent with the relevant CAA requirements, including the requirement to implement RACT for sources covered by the CTG. However, in that action we identified a list of specific deficiencies that prevented full approval of the CARB Oil and Gas Methane Rule and the underlying RACT requirement in the applicable local air districts, which served as the bases for our disapproval of the RACT requirement for the 2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil and Gas CTG. Our proposed approval of the CARB Oil and Gas Methane Rule and the associated local air district rules in this action does not otherwise alter our previous determination that these rules together establish RACT-level controls for all sources subject to the 2016 Oil and Gas CTG within the applicable local air districts, but for the specified deficiencies. As a result, in this action, we focus our analysis primarily on the revisions that have been made to these seven rules, and supporting analysis, to cure the previously identified deficiencies and serve as the bases for now proposing to approve and conditionally approve 5 the associated RACT requirement for the 2008 and 2015 ozone NAAQS. Guidance and policy documents that we used to evaluate enforceability, revision/relaxation, and rule stringency requirements for the applicable criteria pollutants include the following: 1. ‘‘State Implementation Plans; General Preamble for the Implementation of Title I of the Clean Air Act Amendments of 1990,’’ 57 FR 13498 (April 16, 1992); 57 FR 18070 (April 28, 1992). 2. ‘‘Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations,’’ EPA, May 25, 1988 (the Bluebook, revised January 11, 1990). 3. ‘‘Guidance Document for Correcting Common VOC & Other Rule Deficiencies,’’ EPA Region 9, August 21, 2001 (the Little Bluebook). 4. EPA 453/B–16–001, Control Techniques Guidelines for the Oil and Natural Gas Industry, October 2016. 5 See Section II.E of this preamble. We are proposing to approve the RACT requirement for SMAQMD, SJVUAPCD, VCAPCD, and YSAQMD, and conditionally approve the RACT requirement for SCAQMD. PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 36731 B. Do these rules meet the evaluation criteria? In our 2022 action, we determined that the CARB Oil and Gas Methane Rule established RACT level controls except for certain deficiencies that are addressed by this rulemaking.6 The revisions to the submitted CARB Oil and Gas Methane Rule as well as the six submitted California District rules correct the deficiencies identified in the EPA’s previous action. Our analysis in our previous action relied on the CARB Oil and Gas Methane Rule and the SIPapproved local air district rules regulating sources covered by the 2016 Oil and Gas CTG. Some of the deficiencies were contained in the applicable local air district rules and precluded approval of the RACT requirement for these districts, even if the deficiencies in the CARB Oil and Gas Methane Rule were rectified. Our proposed approval of the CARB Oil and Gas Methane Rule and the revised local air district rules addressing these deficiencies does not otherwise alter our previous RACT determination. On April 2, 2024, CARB submitted the CARB Oil and Gas Methane Rule (adopted June 22, 2023), to correct the deficiencies of the limited disapproval. CARB also submitted rules for the SCAQMD, VCAPCD, and SJVUAPCD on the dates specified in table 1 to correct the deficiencies of the disapproved RACT requirement from our September 30, 2022 action. Below we describe the prior deficiencies, explain how they have been corrected, and evaluate the overall enforceability and stringency of the submitted rules. Our TSD for the CARB Oil and Gas Methane Rule and six additional TSDs for the district rules include in-depth descriptions of the deficiencies and how they have been corrected. 1. Deficiencies in the CARB Oil and Gas Methane Rule Subsections 95668(a)(2)(C), 95669(b)(1), and 95670(a)(1) of the CARB Oil and Gas Methane Rule provided general exemptions from the requirements for storage tanks or components when ‘‘approved for use by a local air district’’ or ‘‘subject to a local air district requirement.’’ It was unclear which specific requirements these provisions pointed to and whether these requirements were in the SIP. Additionally, absent specificity about what is required for ‘‘approv[al],’’ these exemptions appeared to provide unbounded director’s discretion. To address this deficiency, for areas that 6 See E:\FR\FM\03MYP1.SGM 87 FR 59314. 03MYP1 36732 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules lotter on DSK11XQN23PROD with PROPOSALS1 must meet RACT, CARB revised the Rule to specify the local air district rule(s) a source must follow in place of the specified requirements in the CARB Oil and Gas Methane Rule. Subsections 95668(a), 95668(b)(4), and section 95671 of the CARB Oil and Gas Methane Rule did not contain a requirement for separator and tank systems to demonstrate initial and continuous compliance with the requirement to control emissions with a vapor collection system. Nor did the subsections specify which test methods must be used to determine compliance or requirements to report information demonstrating initial and continuous compliance. To address this deficiency, Appendices D and E were added to the CARB Oil and Gas Methane Rule to require initial and continuous compliance for subsection 95668(a) and section 95671. These appendices closely follow the CTG model rule requirements.7 Subsection 95668(a) and section 95671 were also revised to require owners and operators to follow the provisions in Appendix D and E. Subsection 95668(b)(4) was removed in response to another deficiency, so no further revisions were needed to address this deficiency with respect to subsection 95668(b)(4). The CARB Oil and Gas Methane Rule provided exemptions from the vapor control requirements of the Rule for low use compressors in subsections 95668(c)(2)(A) and 95668(d)(2)(A); however, the 2016 Oil and Gas CTG does not provide for this type of exemption. To address this deficiency, CARB conducted an analysis using compressor data from 2018,8 which demonstrated that the active exempted compressors estimated emissions were 2.4 MT CH4/yr,9 and the total emissions 7 CARB Oil and Gas Rule Appendix D is modeled very closely to the 2016 Oil and Gas CTG Appendix A sections A.2–A.4, which is the section of the CTG model rule for requirements of VOC Emission control, initial compliance, and continuous compliance for storage vessels. CARB Oil and Gas Rule Appendix E is modeled very closely to the 2016 Oil and Gas CTG Appendix A section A.2(d)– (e) which is the closed vent and control device requirements for storage vessels under the model rule, and Appendix A section A.3–A.4 which details the requirements for continuous and continuous compliance for VOC emission control for storage vessels. 8 CARB stated in the ‘‘Technical Clarifications Document’’ page 14, that Data from 2018 was used because CARB had previously been provided data about the operating hours of the compressors at issue for that year. 9 Using Table 7–2 of Methane Emission Factors for Reciprocating and Centrifugal Compressors in EPA’s 2021 Emissions Guidelines and New Source Performance Standards Technical Support Document. U.S. EPA, Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Background Technical Support VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 from the compressors complying with subsections 95668(c) and (d) of the CARB Oil and Gas Methane Rule is 7,000 MT CH4/yr for reciprocating compressors and 52 MT CH4/yr for centrifugal compressors.10 According to CARB’s analysis, the emissions from all of the exempted low use compressors in 2018 amounted to 0.03% of total methane emissions from compressors subject to subsections 95668(c) and (d). CARB expects the relative composition of methane and VOCs in natural gas to be similar for compressors subject to control requirements as for those qualifying for the low-use exemption.11 Based on this analysis, we consider the VOC emissions exempted for low use reciprocating natural gas compressors to represent a de minimis amount of emissions and therefore addresses this deficiency. Subsections 95668(c)(4)(F) and 95668(d)(9) of the CARB Oil and Gas Methane Rule potentially allowed a leak to go unrepaired for an additional year after being identified, but the 2016 Oil and Gas CTG does not allow for this extended timeline. To address this deficiency, CARB removed the extended repair provisions in subsections 95668(c)(4)(F) and 95668(d)(9). Subsections 95668(c)(4)(B), 95668(d)(4), and 95668(g)(1) of the CARB Oil and Gas Methane Rule required measuring flowrate using ‘‘direct measurement (high volume sampling, bagging, calibrated flow measuring instrument).’’ However, the Rule did not specify test methods or a calculation methodology for determining flowrate. To address this deficiency, in place of the parenthetical following the term ‘‘direct measurement’’ in these subsections, CARB added a definition of direct measurement in subsection 95667(a)(17) of the rule that only allows high volume sampling or measurement with a calibrated flow measuring instrument. The definition requires high-volume sampling be performed in accordance with the procedures in the new Appendix G, requires owners and operators using a calibrated flow Document Proposed NSPS and EG, 40 CFR subparts OOOOb and OOOOc, 2021. 10 CARB (2016a). Proposed Regulation for Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities. Staff Report: Initial Statement of Reasons. Appendix B: Economic Analysis. Posted 31 May 2016. https:// ww2.arb.ca.gov/sites/default/files/barcu/regact/ 2016/oilandgas2016/oilgasappb.pdf. 11 CARB, ‘‘Technical Clarifications on the Resubmission of California’s Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities into the California State Implementation Plan Following Amendments Effective April 1, 2024’’, at p.15. PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 measuring instrument to meet the requirements in U.S. EPA Method 2D, and requires that the instrument is calibrated annually according to that test method. Given the addition of the test methods in Appendix G, along with the definitional changes described above. These amendments correct the deficiency. Subsections 95668(c)(3)(D)(1)(a), (c)(4)(D)(1)(a), (d)(6)(A)(1) and subsections 95669(h)(4)(A)(1) and (i)(5)(A)(1) of the CARB Oil and Gas Methane Rule described delay of repair that is not allowed to exceed a specified number of days unless CARB is notified and provided with an estimated repair completion time. This provided an open-ended and potentially indefinite period during which a leak could remain unrepaired. To address this deficiency, CARB added section 95670.1 to the Rule, which requires operators to submit an estimated repair date that is as soon as practicable and to complete repairs by that date. This request must be substantiated with specified documentation providing justification for any delay. CARB must approve or deny a delay of repair request within five days. This removes the open-ended, potentially indefinite periods for unrepaired leaks. Subsection 95668(c)(3)(D)(1)(a) of the Rule was removed, and subsections 95668(c)(4)(D)(1)(a) and (d)(6)(A)(1) and subsections 95669(h)(4)(A)(1) and (i)(5)(A)(1) were revised to require that the operators use the delay of repair provisions in section 95670.1 of the amended Rule. These amendments address the deficiency. The 2016 Oil and Gas CTG applies to most storage vessels in the oil and natural gas industry constructed primarily of non-earthen materials that contain an accumulation of crude oil, condensate, intermediate hydrocarbon liquids, or produced water. Those storage vessels with a potential to emit (PTE) of 6 tons per year (tpy) or greater of VOC are required to implement RACT-level control. The 2016 Oil and Gas CTG recommends RACT-level control to provide for at least (1) 95% vapor control efficiency or (2) maintenance of actual VOC emissions below 4 tpy. Because CARB’s rule only considers the separator and first tank connected to the separator to determine whether the source meets the 10 tpy methane emissions applicability threshold,12 it was not clear whether the 12 The definition of ‘‘separator and tank system’’ found in section 95667(a)(57) limits the system to ‘‘the first separator in a crude oil or natural gas production system and any tank or sump connected directly to the first separator.’’ The 10 tpy methane threshold is found in section 95668(a)(4), (5), and E:\FR\FM\03MYP1.SGM 03MYP1 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules lotter on DSK11XQN23PROD with PROPOSALS1 rule captured all storage vessels at oil and gas facilities that meet or exceed the 2016 Oil and Gas CTG PTE threshold, and which are therefore required to implement RACT. To address this deficiency, CARB and the applicable local air districts have demonstrated that storage vessels at oil and gas facilities in ozone nonattainment areas are required to have RACT-level controls for VOCs when the PTE exceeds 6 tpy of VOCs. SJVUAPCD Rule 4623, SCAQMD Rule 463, and SCAQMD Rule 1178 have been amended to include storage vessels with PTE of 6 tpy VOC or greater. VCAPCD demonstrated that an explicit 6 tpy VOC applicability threshold was not needed in the rule because most storage vessels are already required to meet the 95% vapor control efficiency requirement in VCAPCD Rule 71.1, and the exemptions to that requirement would not be available to storage vessels with a PTE of 6 tpy or greater.13 CARB demonstrated that sources regulated by SMAQMD and YSAQMD only have single tank systems (i.e., separator and connected tank), and therefore the issue raised in this deficiency does not apply in these areas and the CARB Oil and Gas Methane Rule alone is sufficient to require RACT level controls for storage tanks regulated by these two districts.14 The amendments to the local SJVUAPCD and SCAQMD rules, along with VCAPCD and CARB’s demonstrations address this deficiency. Subsection 95668(a)(2)(A) of the CARB Oil and Gas Methane Rule exempted separator and tank systems, as defined within the rule, that receive an average of less than 50 barrels of crude oil or condensate per day from the rule’s flash testing and vapor control requirements for storage vessels. By using the word ‘‘or,’’ this exemption potentially exempted tanks that receive a minor amount of either crude oil or condensate, but a significant quantity of the other organic liquid. To address this deficiency, CARB amended subsection (a)(2)(A) and replaced ‘‘or’’ with ‘‘and’’ so that only separator and tank systems that receive an average of less than 50 barrels of crude oil and less than 50 (6). CARB’s staff report estimates that the 10 tpy of methane emissions threshold in the Rule is about ∼1.8 tpy VOC and below the CTG requirement that systems maintain emissions less than 4 tpy VOC. CARB Staff Report, 4. 13 The TSD for VCAPCD Rule 71.1 has more detailed information. 14 CARB, ‘‘Technical Clarifications on the Resubmission of California’s Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities into the California State Implementation Plan Following Amendments Effective April 1, 2024’’, at pp.18–19. VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 barrels of condensate per day will be exempted. Subsections 95668(a)(3) and (4) of the CARB Oil and Gas Methane Rule required existing and new tanks that are not equipped with vapor collection systems to comply with specified requirements for flash testing. The rule required tanks with emissions greater than 10 tpy of methane to meet specified vapor control requirements. The rule did not specify requirements for how tanks equipped with vapor control (either vapor collection systems, or tanks with floating roofs) determine their emissions (PTE or actual) to assess whether they must meet RACT-level control requirements (i.e., vapor collection systems that meet 95% control, or to maintain actual emissions at less than 4 tpy VOC). To address this deficiency, CARB amended the Rule to include specific requirements for how tanks equipped with vapor controls must conduct compliance testing, performance testing, and flash testing. The new requirements were added in subsections 95671(d) and (e). Subsection 95668(b)(4) of the CARB Oil and Gas Methane Rule required circulation tanks for well completion to be controlled with at least 95% vapor collection and control efficiency unless CARB made a determination that controlling emissions was not possible. This provision was deficient because it insufficiently bounded CARB’s discretion and provided for an exemption for these tanks that is inconsistent with the 2016 Oil and Gas CTG. To address this deficiency, CARB removed this section of the Rule and clarified that circulation tanks are now covered under requirements for separator and tank systems. Since this section of the rule, including the exemption, has been removed, CARB’s discretion is now sufficiently bounded. These amendments address this deficiency. Subsections 95668(c)(3)(B) and (c)(4)(B)(3) of the CARB Oil and Gas Methane Rule contained the term ‘‘inspection period.’’ The term was not defined, nor was it used in the relevant part of section 95669—Leak Detection and Repair—that specifies when to conduct equipment inspections. It was not clear if ‘‘inspection period’’ was referencing the section 95669(g) quarterly testing requirement or something else. To address this deficiency, section 95668(c)(3)(B) of the Rule, which addressed compressor rod packing and seals, has been deleted and the inspection requirement for this equipment is now included under subsection 95669(g), which requires leak detection testing each calendar PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 36733 quarter for all components. While rod packings and seals are not explicitly mentioned in section 95669, the definition of components includes ‘‘reciprocating compressor rod packing or seals for compressors located at onshore or offshore crude or natural gas production facilities.’’ Additionally, the ‘‘inspection period’’ language in subsection 95668(c)(4)(B)(3) was replaced with ‘‘calendar year.’’ Generally, in the places where the term ‘‘inspection period’’ was used, it has been replaced with ‘‘calendar year.’’ This quantifies the inspection period and clarifies the requirements. These amendments address the deficiency. Subsection 95669(b)(7) of the CARB Oil and Gas Methane Rule exempted one-half inch and smaller stainless steel tube fittings used to supply natural gas to equipment or instrumentation from continuous monitoring. When these stainless-steel tube fittings are at natural gas processing plants or gathering and boosting stations, the 2016 Oil and Gas CTG recommends quarterly testing for leaks, as well as semi-annual fugitive emissions testing at well sites and gathering/boosting stations. Thus, this exemption was inconsistent with the CTG and identified as a deficiency in the Rule. To address this deficiency, CARB removed this exemption. Subsection 95669(i)(1) of the CARB Oil and Gas Methane Rule required leaks of 1,000–9,999 ppm be repaired within 14 days, but this timing did not meet RACT level stringency because the 2016 Oil and Gas CTG recommends attempting repairs within 5 days of the detected leak.15 To address this deficiency, subsection 95669(h)(1) now contains additional language requiring that a first attempt at repair be made within five calendar days for leaks between 1,000–9,999 ppm. The 2016 Oil and Gas CTG contains a requirement to maintain a list of identification numbers for all the equipment subject to leak regulation.16 Section 95669 of the CARB Oil and Gas Methane Rule did not contain a similar requirement, which undermined the enforceability of CARB’s rule. To address this deficiency, subsection 95669(d)(1) was revised to require that 15 2016 Oil and Gas CTG recommends implementation of an LDAR program equivalent to what is required under 40 CFR part 60, subpart VVa. Subpart VVa contains the requirement for first attempt at repair within 5 days in several sections for various types of components: 60.482–2a Pumps in liquid service, 60.482–31 Compressors, 60.482– 7a Valves in gas/vapor service and in light liquid service, 60.482–8a Pumps, valves, and connectors in heavy liquid service and pressure relief devices in light liquid or heavy liquid service, and 60.482– 10a Closed vent systems and control devices. 16 2016 Oil and Gas CTG, 8–15. E:\FR\FM\03MYP1.SGM 03MYP1 lotter on DSK11XQN23PROD with PROPOSALS1 36734 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules operators develop and maintain detailed facility-specific leak detection and repair plans. Given the level of detail in these plan requirements, and specifically the inclusion of subsection 95669(d)(1)(C) in the Rule that specifies that the plan must include a list of equipment with an identification number or detailed description for each piece of equipment, these amendments correct the previous deficiency. Section 95669 of the CARB Oil and Gas Methane Rule did not contain a requirement to maintain a list of equipment that is designated as ‘‘unsafe to monitor’’ consistent with the 2016 Oil and Gas CTG. This deficiency was corrected by an added requirement in subsection 95669(d)(1)(E) that leak detection and repair plans include a list of equipment and components that are designated as inaccessible or unsafe to monitor. Subsection 95671(f) of the CARB Oil and Gas Methane Rule allowed vapor control systems (VCS) to be taken out of service for up to 30 calendar days per year while maintenance is performed. The 2016 Oil and Gas CTG does not specify time allowed for maintenance. Moreover, this maintenance requirement resulted in CARB having unbounded discretion to remove control equipment from service by not having requirements specifying the necessity of taking the system out of service and minimizing the outage time. To address this deficiency, subsection 95671(g) (formerly subsection 95671(f)) was revised to lower the number of nonoperation days for maintenance of vapor collection systems per year from 30 to 14. Subsection 95671(g)(1) was revised to require that for any further extension to the number of maintenance days per year, the owner or operator must obtain approval from CARB and, among other requirements, provide CARB justification for the maintenance, the number of additional days requested, and justification that the number of additional days is necessary to perform the maintenance. These amendments correct the previous deficiency by lowering the standard number of days allowed for maintenance and any further extension is now sufficiently bounded. Section 95672 of the CARB Oil and Gas Methane Rule did not specify what type of records needed to be kept for certain units, such as separator and tank systems, vapor collection systems, vapor control devices, compressors, and pneumatic devices. The section was not sufficiently enforceable because it did not describe what type of records need to be kept such as testing and monitoring results. To address this VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 deficiency, section 95672 was revised to include several requirements specifying the types of records that must be kept. In addition, Appendix A also now contains recordkeeping and reporting forms that more specifically identify the types of records that must be kept. Given the additional specificity about the types of records that must be kept that have been added to the rule, including for the categories mentioned in the previously identified deficiency, these amendments correct the deficiency. Previously, the CARB Oil and Gas Methane Rule relied on test methods that had otherwise not been approved by the EPA, and allowed alternative test procedures, sampling methods, or laboratory methods to be used if written permission was obtained from CARB. This created a deficiency because it undermined the enforceability of the rule and allowed CARB the discretion to modify rule provisions without a SIP revision. To address this deficiency, CARB revised Appendix C by removing references to test methods that have not been approved by the EPA and removing the relevant unbounded director’s discretion language related to changing test methods. 2. Deficiencies Identified in District SIPApproved Rules We previously identified three deficiencies related to SMAQMD Rule 446 and one deficiency related to YSAQMD Rule 2.21. The deficiencies related to ensuring all the storage vessels required to be covered by the 2016 Oil and Gas CTG would be subject to these rules, and, in the case of Rule 446, ensuring the rule met RACT-level stringency. To address this deficiency, the CARB Oil and Gas Methane Rule now includes a specific list of local rules that allow equipment to be exempt from the Rule’s requirements, and this list does not include SMAQMD Rule 446 or YSAQMD 2.21 as exemptions to CARB’s requirements for separator and tank systems. As a result, all the storage tanks within the jurisdiction of SMAQMD and YSAQMD that are covered by the 2016 Oil and Gas CTG are now subject to the requirements in the CARB Oil and Gas Methane Rule and will meet RACT-level stringency. SCAQMD Rule 463, SCAQMD Rule 1178, SJVUAPCD Rule 4623, VCAPCD Rule 71.1, and VCAPCD Rule 71.2 were each determined to potentially not apply to all the storage vessels at oil and gas facilities required to be covered by the 2016 Oil and Gas CTG. The 2016 Oil and Gas CTG recommends determining applicability for this equipment based on PTE and each of these rules PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 determined applicability based only on a tank’s volumetric capacity or vapor pressure. To address this deficiency, SCAQMD Rule 463, SCAQMD Rule 1178, and SJVUAPCD Rule 4623 were revised to establish the 6 tpy PTE threshold from the 2016 Oil and Gas CTG in determining applicability. For VCAPCD Rule 71.1, VCAPCD provided additional information and calculations to address the deficiency.17 VCAPCD performed calculations for each of the three vapor recovery exemptions in the rule and showed that all tanks currently using those exemptions are below the 6 tpy PTE threshold. The memo also demonstrates that no future tanks that exceed the 6 tpy PTE threshold will be exempt because either those exemptions are not available to future tanks or the size of tank that would be necessary to exceed the threshold is not a realistic tank size. Finally, the amended CARB Oil and Gas Methane Rule does not rely on VCAPCD 71.2 to meet RACT-level stringency and no revisions to this Rule were needed to address this deficiency. VCAPCD Rule 71.1 was determined to not be sufficiently enforceable because it did not include initial or continuous compliance demonstration requirements. VCAPCD corrected this deficiency by adding such requirements that are consistent with the 2016 Oil and Gas CTG. We previously determined that SJVUAPCD Rule 4401 did not meet RACT-level stringency because it required annual leak inspections with a threshold of 1,000 ppm, using Method 21, at a lower frequency and threshold than the 2016 Oil and Gas CTG (which recommends semiannual inspection frequency with threshold of 500 ppm). To address this deficiency, SJVUAPCD amended Rule 4401 to lower the minimum leak threshold and increase inspection frequency. SJVUAPCD lowered the minimum leak rate threshold for a minor leak from 2,000 ppm to 500 ppm for all components, except for pressure relief devices, which already had a lower threshold of 400 ppm. These revisions are consistent with the 2016 Oil and Gas CTG. The inspection frequency was also changed from annual to quarterly, which exceeds the 2016 Oil and Gas CTG’s recommendation of semiannual inspections and aligns with the inspection frequency in SJVUAPCD Rule 4409 and the CARB Oil and Gas Methane Rule. These amendments correct the previously identified deficiency. 17 Appendix A, VCAPCD Rule 71.1 Vapor Recovery Exemption Analysis’’ in VCAPCD’s Staff Report for Rule 71.1. E:\FR\FM\03MYP1.SGM 03MYP1 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules 3. Deficiency Identified in CARB Oil and Gas Methane Rule and SJVUAPCD Rule 4409 The CARB Oil and Gas Methane Rule and SJVUAPCD Rule 4409 provide exemptions from leak detection and repair (LDAR) requirements based on the API gravity of crude oil at well sites. We previously determined that these exemptions had not been demonstrated to meet RACT because the 2016 Oil and Gas CTG does not provide for such an exemption based on API gravity. However, as described herein and in greater detail in our TSD for the CARB Oil and Gas Methane Rule, we have determined that the CARB Oil and Gas Methane Rule ensures RACT-level stringency for LDAR requirements at well sites. The 2016 Oil and Gas CTG limits its RACT recommendation for semiannual LDAR monitoring to well sites with crude oil that has a gas to oil ratio (GOR) greater than or equal to 300.18 This was based on the EPA’s conclusion that monitoring for well sites producing heavy oils would not be sufficiently cost effective, as leaks associated with heavy oil production will generally emit less VOC. In developing the 2016 Oil and Gas CTG, the EPA defined a heavy oil well as a well that produces crude oil with a GOR of 300 standard cubic feet (scf)/barrel (bbl) or less.19 However, GOR is not the only metric that can be used to classify whether crude oil is heavy oil. Upon review of available information, we can conclude that an API gravity equal to or greater than 20 degrees, as used in the CARB Oil and Gas Rule to exempt well sites from LDAR requirements, is consistent with the 2016 Oil and Gas CTG recommendation to only exclude heavy oils from such requirements.20 However, SJVUAPCD Rule 4409 is intended to apply to ‘‘light’’ crude oil production and uses an API gravity equal to or greater than 30 degrees to make this determination. As a result, we do not agree that Rule 4409 alone ensures only heavy crude oils are exempt from LDAR requirements for sources regulated by SJVUAPCD. But well sites producing crude oil with an API gravity between 20 degrees and 30 degrees will still be required to meet lotter on DSK11XQN23PROD with PROPOSALS1 18 2016 Oil and Gas CTG, 9–39. 19 EPA, ‘‘Information Collection Request Supporting Statement, Information Collection Effort for Oil and Gas Facilities,’’ EPA ICR No. 2548.01, November 9, 2016, https://www.epa.gov/sites/ default/files/2016-11/documents/oil-natural-gasicr-supporting-statement-epa-icr-2548-01.pdf. 20 As further explained in our TSD for the CARB Oil and Gas Methane Rule, both API gravity and GOR are metrics that reflect the volatility of crude, with greater VOC emissions coming from crude with higher values—both of API gravity and of GOR. VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 RACT-level stringency because such sources will be subject to LDAR requirements under the CARB Oil and Gas Methane Rule. Sources can only be exempted from the requirements in the CARB Oil and Gas Methan Rule if they are ‘‘subject to’’ the specified local air district rules. Sources regulated by SJVUAPCD that are exempt from Rule 4409 are not ‘‘subject to’’ such rules, and thus do not qualify to be exempted from the CARB Oil and Gas Methane Rule. Thus, this deficiency has been addressed because we were able to determine that all sources regulated by the SJVUAPCD covered by the 2016 Oil and Gas CTG are required to meet RACT-level requirements by either the CARB Oil and Gas Methane Rule or SJVUAPCD Rule 4409. 4. Overall Stringency and Enforceability of the Submitted Rules In our 2022 action, we reviewed the CARB Oil and Gas Methane Rule and applicable local air district rules that regulated the sources covered by the 2016 Oil and Gas CTG and determined that these rules together established RACT level controls, except for certain deficiencies.21 As described above, the submitted rules that contained deficiencies that precluded approval of the RACT demonstration were either amended to address the deficiencies, or were removed from the list of local air district rules that allow exemptions from the requirements of the CARB Oil and Gas Methane Rule. The CARB Oil and Gas Methane Rule and the local air district rules listed in table 1 strengthen the SIP by establishing enforceable emission limits and by clarifying monitoring, recordkeeping, and reporting provisions. Except for one issue described below, these rules are consistent with CAA requirements and relevant guidance regarding enforceability, RACT, and SIP revisions. The TSDs for each of the rules we are proposing to approve into the California SIP in this rulemaking also include more information regarding the basis for our proposed approval. 21 See ‘‘Technical Support Document for EPA’s Rulemaking for the California State Implementation Plan California Air Resources Board (CARB) Regulation for Greenhouse Gas Emissions Standards for Crude Oil and Natural Gas Facilities California Code of Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 4 Subarticle 13: Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities’’ p. 8 (stating that ‘‘we have reviewed the local air district rules and conclude that the provisions in those rules that relate to the Oil and Gas CTG generally establish RACT level controls’’ with the exception of specifically enumerated deficiencies). PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 36735 C. Were there any newly identified deficiencies with the April 2, 2024, submitted CARB Oil and Gas Methane Rule? The CARB Oil and Gas Methane Rule exempts sources from compliance with portions of the Rule if those sources comply with certain existing California air district rules. One such rule is SCAQMD Rule 1148.1—Oil and Gas Production Wells (Amended March 5, 2004). SCAQMD Rule 1148.1 lacks reporting requirements comparable to the reporting requirements included in the CARB Oil and Gas Methane Rule and applicable local air district rules. SCAQMD Rule 1148.1 otherwise contains comparable inspection requirements, recordkeeping and records retention requirements, and appropriate test methods to determine compliance, but it does not contain reporting requirements equivalent to similar CARB and local air district rules. For example, by comparison, section 95673 of the CARB Oil and Gas Methane Rule requires annual reports of LDAR inspections, and SJVUAPCD Rule 4401 contains annual reporting requirements for Operator Managment Plans. In a letter included in their submittal on April 2, 2024, CARB has committed to submit an amended version of South Coast Rule 1148.1 that will address this deficiency. Consistent with the requirements of CAA section 110(k)(4), CARB has committed to submit the adopted rule to EPA within 12 months of the effective date of EPA’s final rulemaking conditionally approving the RACT requirement for the 2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil and Gas CTG and regulated by SCAQMD. D. The EPA’s Recommendations to Further Improve the Rules The TSDs include recommendations for the next time CARB and SJVUAPCD modify their rules. E. Public Comment and Proposed Action As authorized in section 110(k)(3) of the Act, the EPA is proposing to approve the SIP submissions amending: the CARB Oil and Gas Methane Rule, SJVUAPCD Rule 4401, SJVUAPCD Rule 4409, SJVUAPCD Rule 4623, VCAPCD Rule 71.1, SCAQMD Rule 463, and SCAQMD Rule 1178. Based on our proposed conclusion that the amended rules cure the previously identified deficiencies, and our prior analysis concluding that these rules met the RACT requirement but for the identified deficiencies, we are also proposing to fully approve the CTG RACT E:\FR\FM\03MYP1.SGM 03MYP1 lotter on DSK11XQN23PROD with PROPOSALS1 36736 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules requirement for the 2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil and Gas CTG in SMAQMD, SJVUAPCD, VCAPCD, and YSAQMD because the rules fulfill all relevant requirements. In addition, we propose to find that the CARB Oil and Gas Methane Rule, in combination with the specified local air district rules in the SCAQMD largely fulfills the relevant CAA section 110 and part D requirements, except for the newly identified deficiency in SCAQMD Rule 1148.1. As discussed in section II.C, this deficiency precludes full approval of the RACT requirement for the 2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil and Gas CTG and regulated by SCAQMD. Section 110(k)(4) authorizes the EPA to conditionally approve SIP revisions based on a commitment by the state to adopt specific enforceable measures by a date certain but not later than one year after the date of the plan approval.22 Because CARB has committed to provide the EPA with a SIP submission within 12 months of this final action that would adequately address the identified deficiency, we are proposing to conditionally approve the CTG RACT requirement for the 2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil and Gas CTG in SCAQMD, pursuant to section 110(k)(4) of the Act. If CARB and SCAQMD submit the required rule revisions by the specified deadline, and the EPA approves the submission, then the identified deficiency will be cured. However, if this proposed conditional approval is finalized, and SCAQMD, through CARB, fails to submit these revisions within the required timeframe, the conditional approval would be treated as a disapproval for the RACT requirement for sources covered by the 2016 Oil and Gas CTG in SCAQMD. If we finalize this rulemaking as proposed, CARB and the applicable local air districts will have corrected the deficiencies identified in our September 30, 2022 action, and all sanction and Federal implementation plan clocks started by our September 30, 2022 action would be permanently stopped. We are concurrently making an interim final determination to defer CAA section 179 sanctions associated with our 2022 action finalizing a limited approval and limited disapproval of the 2018 submittal of the CARB Oil and Gas Methane Rule and a disapproval of the associated CTG RACT requirements. Consistent with our order of sanction regulations,23 this determination is 22 42 23 40 U.S.C. 7410(k)(4). CFR 52.31. VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 based on this proposal to approve and conditionally approve SIP revisions from CARB that resolve the deficiencies that were the basis of our prior disapproval that triggered sanctions under section 179 of the CAA. The deficiency associated with our proposed conditional approval in this action is for a newly identified deficiency in SCAQMD Rule 1148.1, as discussed in section C, and is distinct from the deficiencies that formed the basis of our 2022 disapproval that triggered sanctions under sanction 179 of the CAA. We will accept comments from the public on this proposal until June 3, 2024. If we take final action to approve the submitted rules, our final action will incorporate these rules into the federally enforceable SIP. III. Incorporation by Reference In this rule, the EPA is proposing to include in a final EPA rule, regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by reference the CARB Oil and Gas Methane Rule, SJVUAPCD Rule 4409, SJVUAPCD Rule 4401, SJVUAPCD Rule 4623, SCAQMD Rule 1178, SCAQMD Rule 463, and VCAPCD Rule 71.1 described in section I.C. of this preamble. The EPA has made, and will continue to make, these materials available through https:// www.regulations.gov and at the EPA Region IX Office (please contact the person identified in the FOR FURTHER INFORMATION CONTACT section of this preamble for more information). IV. Statutory and Executive Order Reviews Under the Clean Air Act, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, the EPA’s role is to approve state choices, provided that they meet the criteria of the Clean Air Act. Accordingly, this proposed action merely proposes to approve state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action: • Is not a significant regulatory action subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 14094 (88 FR 21879, April 11, 2023); • Does not impose an information collection burden under the provisions PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.); • Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.); • Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4); • Does not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999); • Is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997) because it proposes to approve a state program; • Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); and • Is not subject to requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Clean Air Act. In addition, the SIP is not approved to apply on any Indian reservation land or in any other area where the EPA or an Indian tribe has demonstrated that a tribe has jurisdiction. In those areas of Indian country, the rules do not have tribal implications and will not impose substantial direct costs on tribal governments or preempt tribal law as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). Executive Order 12898 (Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations, 59 FR 7629, February 16, 1994) directs Federal agencies to identify and address ‘‘disproportionately high and adverse human health or environmental effects’’ of their actions on minority populations and low-income populations to the greatest extent practicable and permitted by law. The EPA defines environmental justice (EJ) as ‘‘the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.’’ The EPA further defines the term fair treatment to mean that ‘‘no group of people should bear a disproportionate burden of environmental harms and risks, including those resulting from the negative environmental consequences of industrial, governmental, and commercial operations or programs and policies.’’ E:\FR\FM\03MYP1.SGM 03MYP1 Federal Register / Vol. 89, No. 87 / Friday, May 3, 2024 / Proposed Rules The State did not evaluate environmental justice considerations as part of its SIP submittal; the CAA and applicable implementing regulations neither prohibit nor require such an evaluation. The EPA did not perform an EJ analysis and did not consider EJ in this action. Consideration of EJ is not required as part of this action, and there is no information in the record inconsistent with the stated goal of Executive Order 12898 of achieving environmental justice for people of color, low-income populations, and Indigenous peoples. List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Reporting and recordkeeping requirements, Volatile organic compounds. Dated: April 24, 2024. Martha Guzman Aceves, Regional Administrator, Region IX. [FR Doc. 2024–09306 Filed 5–2–24; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 180 [EPA–HQ–OPP–2024–0059; FRL–11682–03– OCSPP] Receipt of a Pesticide Petition Filed for Residues of Pesticide Chemicals in or on Various Commodities (March 2024) Environmental Protection Agency (EPA). ACTION: Notice of filing of petition and request for comment. AGENCY: lotter on DSK11XQN23PROD with PROPOSALS1 VerDate Sep<11>2014 17:28 May 02, 2024 Jkt 262001 Madison H. Le, Biopesticides and Pollution Prevention Division (BPPD) (7511M), main telephone number: (202) 566–1400, email address: BPPDFRNotices@epa.gov; or Charles Smith, Registration Division (RD) (7505T), main telephone number: (202) 566–2427, email address: RDFRNotices@epa.gov. The mailing address for each contact person is Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460–0001. As part of the mailing address, include the contact person’s name, division, and mail code. The division to contact is listed at the end of each application summary. SUPPLEMENTARY INFORMATION: I. General Information A. Does this action apply to me? You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. The following list of North American Industrial Classification System (NAICS) codes is not intended to be exhaustive, but rather provides a guide to help readers determine whether this document applies to them. Potentially affected entities may include: • Crop production (NAICS code 111). • Animal production (NAICS code 112). • Food manufacturing (NAICS code 311). • Pesticide manufacturing (NAICS code 32532). B. What should I consider as I prepare my comments for EPA? This document announces the Agency’s receipt of an initial filing of a pesticide petition requesting the establishment or modification of regulations for residues of pesticide chemicals in or on various commodities. DATES: Comments must be received on or before June 3, 2024. ADDRESSES: Submit your comments, identified by docket identification (ID) number EPA–HQ–OPP–2024–0059, through the Federal eRulemaking Portal at https://www.regulations.gov. Follow the online instructions for submitting comments. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Additional instructions on commenting and visiting the docket, along with more information about dockets generally, is available at https://www.epa.gov/dockets. SUMMARY: FOR FURTHER INFORMATION CONTACT: 1. Submitting CBI. Do not submit this information to EPA through regulations.gov or email. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD–ROM that you mail to EPA, mark the outside of the disk or CD–ROM as CBI and then identify electronically within the disk or CD–ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 2. Tips for preparing your comments. When preparing and submitting your comments, see the commenting tips at PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 36737 https://www.epa.gov/dockets/ commenting-epa-dockets. 3. Environmental justice. EPA seeks to achieve environmental justice, the fair treatment and meaningful involvement of any group, including minority and/or low-income populations, in the development, implementation, and enforcement of environmental laws, regulations, and policies. To help address potential environmental justice issues, the Agency seeks information on any groups or segments of the population who, as a result of their location, cultural practices, or other factors, may have atypical or disproportionately high and adverse human health impacts or environmental effects from exposure to the pesticides discussed in this document, compared to the general population. II. What action is the Agency taking? EPA is announcing receipt of a pesticide petition filed under section 408 of the Federal Food, Drug, and Cosmetic Act (FFDCA), 21 U.S.C. 346a, requesting the establishment or modification of regulations in 40 CFR part 180 for residues of pesticide chemicals in or on various food commodities. The Agency is taking public comment on the request before responding to the petitioner. EPA is not proposing any particular action at this time. EPA has determined that the pesticide petition described in this document contains data or information prescribed in FFDCA section 408(d)(2), 21 U.S.C. 346a(d)(2); however, EPA has not fully evaluated the sufficiency of the submitted data at this time or whether the data supports granting of the pesticide petition. After considering the public comments, EPA intends to evaluate whether and what action may be warranted. Additional data may be needed before EPA can make a final determination on this pesticide petition. Pursuant to 40 CFR 180.7(f), a summary of the petition that is the subject of this document, prepared by the petitioner, is included in a docket EPA has created for this rulemaking. The docket for this petition is available at https://www.regulations.gov. As specified in FFDCA section 408(d)(3), 21 U.S.C. 346a(d)(3), EPA is publishing notice of the petition so that the public has an opportunity to comment on this request for the establishment or modification of regulations for residues of pesticides in or on food commodities. Further information on the petition may be obtained through the petition summary referenced in this unit. E:\FR\FM\03MYP1.SGM 03MYP1

Agencies

[Federal Register Volume 89, Number 87 (Friday, May 3, 2024)]
[Proposed Rules]
[Pages 36729-36737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09306]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2024-0175; FRL-11888-01-R9]


California Air Plan Revisions; California Air Resources Board and 
Local California Air Districts; Crude Oil and Natural Gas Facilities

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve revisions to a California statewide rule and six California air 
district rules into the California State Implementation Plan (SIP) 
under the Clean Air Act (CAA or the Act). These revisions concern 
emissions of volatile organic compounds (VOCs) from crude oil and 
natural gas facilities. Based on our proposed finding that these 
revisions correct previously-identified deficiencies in these rules, we 
are now proposing to fully approve the reasonably available control 
technology (RACT) requirement for the 2008 and 2015 ozone National 
Ambient Air Quality Standards (NAAQS) for sources covered by the EPA's 
2016 Control Techniques Guidelines for the Oil and Natural Gas Industry 
(``2016 Oil and Gas CTG'') for the Sacramento Metropolitan Air Quality 
Management District (SMAQMD), San Joaquin Valley Unified Air Pollution 
Control District (SJVUAPCD), Ventura County Air Pollution Control 
District (VCAPCD), and the Yolo-Solano Air Quality Management District 
(YSAQMD). We are also proposing to conditionally approve the RACT 
requirement for the 2008 and 2015 ozone NAAQS for sources covered by 
the EPA's 2016 Oil and Gas CTG for the South Coast Air Quality 
Management District (SCAQMD). We are taking comments on this proposal 
and plan to follow with a final action.

DATES: Comments must be received on or before June 3, 2024.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2024-0175 at https://www.regulations.gov. For comments submitted at 
Regulations.gov, follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or removed from 
Regulations.gov. The EPA may publish any comment received to its public 
docket. Do not submit electronically any information you consider to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Multimedia submissions (audio, 
video, etc.) must be accompanied by a written comment. The written 
comment is considered the official comment and should include 
discussion of all points you wish to make. The EPA will generally not 
consider comments or comment contents located outside of the primary 
submission (i.e., on the web, cloud, or other file sharing system). For 
additional submission methods, please contact the person identified in 
the FOR FURTHER INFORMATION CONTACT section. For the full EPA public 
comment policy, information about CBI or multimedia submissions, and 
general guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets. If you need assistance in a 
language other than English or if you are a person with disabilities 
who needs a reasonable accommodation at no cost to you, please contact 
the person identified in the FOR FURTHER INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Nicole Law, EPA Region IX, 75 
Hawthorne St., San Francisco, CA,

[[Page 36730]]

94105. By phone: (415) 947-4126 or by email at [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us'' and 
``our'' refer to the EPA.

Table of Contents

I. The State's Submittal
    A. What did the State submit?
    B. Are there earlier versions of the submitted documents in the 
SIP?
    C. What is the purpose of the submitted rules?
II. The EPA's Evaluation and Action
    A. How is the EPA evaluating these rules?
    B. Do these rules meet the evaluation criteria?
    C. Were there any newly identified deficiencies with the April 
2, 2024 submitted CARB Oil and Gas Methane Rule?
    D. The EPA's Recommendations To Further Improve the Rules
    E. Public Comment and Proposed Action
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews

I. The State's Submittal

A. What did the State submit?

    Table 1 lists the rules addressed by this proposal with the dates 
that they were adopted and submitted by the California Air Resources 
Board (CARB).

                        Table 1--Submitted Rules
------------------------------------------------------------------------
                                                  Adopted/
        Agency                Rule title          amended     Submitted
------------------------------------------------------------------------
CARB..................  California Code of       06/22/2023   04/02/2024
                         Regulations, Title
                         17, Division 3,
                         Chapter 1, Subchapter
                         10 Climate Change,
                         Article 4 Subarticle
                         13: Greenhouse Gas
                         Emission Standards
                         for Crude Oil and
                         Natural Gas
                         Facilities (``CARB
                         Oil and Gas Methane
                         Rule'').
SJVUAPCD..............  Rule 4409--Components    06/15/2023   10/13/2023
                         at Light Crude Oil
                         Production
                         Facilities, Natural
                         Gas Production
                         Facilities, and
                         Natural Gas
                         Processing Facilities.
SJVUAPCD..............  Rule 4623--Storage of    06/15/2023   10/13/2023
                         Organic Liquids *.
SJVUAPCD..............  Rule 4401--Steam-        06/15/2023   10/13/2023
                         Enhanced Crude Oil
                         Production Wells *.
VCAPCD................  Rule 71.1--Crude Oil     07/11/2023   01/10/2024
                         Production and
                         Separation.
SCAQMD................  Rule 463--Organic        05/05/2023   10/13/2023
                         Liquid Storage.
SCAQMD................  Rule 1178--Further       09/01/2023   02/14/2024
                         Reductions of VOC
                         Emissions from
                         Storage Tanks at
                         Petroleum Facilities.
------------------------------------------------------------------------
* In two letters from Sheraz Gill, Deputy Air Pollution Control Officer,
  SJVUAPCD, to Lisa Beckham, Manager, EPA Region IX, both dated April
  18, 2024, SJVUAPCD described administrative corrections to Rule 4401
  section 5.4.4.2 to clarify which tables to refer to for repair leak
  time frames and Rule 4623 to correct table numbers and references
  throughout Rule 4623. The administrative corrections are minor, only
  clarify what is already in the rule, and do not impact our analysis of
  the approvability of the rules. The corrections are consistent with
  SJVUAPCD's Board's intent and SJVUAPCD has submitted the revised rules
  to the EPA to replace earlier submitted versions. For this proposed
  action, we are basing our evaluation on the SJVUAPCD rules as
  corrected.

    The EPA has reviewed the submittals containing the documents listed 
in table 1 and finds that they fulfill the completeness criteria in 40 
CFR part 51, appendix V, which must be met before formal EPA review.
    The March 26, 2024, submittal letter to the EPA from CARB included 
a commitment to submit an amended version of SCAQMD Rule 1148.1 within 
12 months of the effective date of our final action that will remedy 
the deficiency identified in this document.\1\
---------------------------------------------------------------------------

    \1\ Letter dated March 26, 2024, submitted with the CARB Oil and 
Gas Methane Rule, from Steven S. Cliff, Executive Officer, CARB, to 
Martha Guzman, Regional Administrator, EPA, Region 9.
---------------------------------------------------------------------------

B. Are there earlier versions of the submitted documents in the SIP?

    On September 30, 2022 (87 FR 59314), we finalized a limited 
approval and limited disapproval of California Code of Regulations, 
Title 17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 
4 Subarticle 13: Greenhouse Gas Emission Standards for Crude Oil and 
Natural Gas Facilities (``CARB Oil and Gas Methane Rule'') as adopted 
on March 23, 2017. That action also finalized a disapproval of the RACT 
requirement for the 2008 and 2015 ozone NAAQS for sources covered by 
the 2016 Oil and Gas CTG regulated by various California air districts. 
CARB adopted revisions to the SIP-approved version of the CARB Oil and 
Gas Methane Rule on June 22, 2023, and submitted them to us on April 2, 
2024.
    We previously approved earlier versions of the six local air rules 
listed in table 1 into the SIP as follows: SJVUAPCD Rule 4409 on March 
23, 2006 (71 FR 14652), SJVUAPCD Rule 4623 on September 13, 2005 (70 FR 
53936), SJVUAPCD Rule 4401 on November 16, 2011 (76 FR 70886), VCAPCD 
Rule 71.1 on August 4, 1994 (59 FR 39690), SCAQMD Rule 463 on March 28, 
2013 (78 FR 18853), and SCAQMD Rule 1178 on August 28, 2007 (72 FR 
49196).
    If we finalize our approval as proposed, the amended versions of 
the rules listed in table 1 will replace the previously approved 
versions of these rules in the SIP.

C. What is the purpose of the submitted rules?

    Emissions of VOCs contribute to the production of ground-level 
ozone, smog and particulate matter (PM), which harm human health and 
the environment. Section 110(a) of the CAA requires states to submit 
plans that provide for implementation, maintenance, and enforcement of 
the NAAQS. In addition, CAA section 182(b)(2) requires, among other 
things, that SIPs for ozone nonattainment areas classified as 
``Moderate'' or higher implement RACT for any category of sources 
covered by a control techniques guidelines (CTG) document. SMAQMD, 
SJVUAPCD, VCAPCD, SCAQMD, and YSAQMD all regulate ozone nonattainment 
areas that are classified as Moderate or higher for the 2008 and 2015 
8-hour ozone NAAQS.\2\ The State is required to submit SIP revisions 
that implement RACT-level controls for all sources covered by a CTG 
document within the applicable nonattainment areas. The CARB Oil and 
Gas Methane Rule was submitted to establish RACT-level VOC controls on 
sources covered by the 2016 Oil and Gas CTG in these areas.
---------------------------------------------------------------------------

    \2\ 40 CFR 81.305. We refer to these air districts collectively 
as the ``applicable local air districts.''
---------------------------------------------------------------------------

    The CARB Oil and Gas Methane Rule establishes methane emission 
standards for crude oil and natural gas facilities in furtherance of 
the California Global Warming Solutions Act (AB 32, as codified in 
sections 38500-38599 of the California Health and Safety Code). The 
rule can be used to limit VOC emissions to meet RACT requirements 
because many of the methane controls in the CARB Oil and Gas Methane 
Rule also reduce VOC emissions. Additionally, the CARB Oil and Gas 
Methane Rule relies, in part, on requirements in local air district 
rules to establish RACT-level controls on VOC emissions. Five of

[[Page 36731]]

those rules are already approved into the California SIP and we are 
proposing approval of the other six in this rulemaking.
    SJVUAPCD Rule 4401 is designed to limit VOC emissions at steam-
enhanced crude oil production wells. SJVUAPCD Rule 4409 is designed to 
control VOC emissions from leaking components at natural gas processing 
facilities and light crude oil and natural gas production facilities. 
SJVUAPCD Rule 4623 is designed to decrease VOC emissions from the 
storage of organic liquids. VCAPCD Rule 71.1 controls VOCs by 
establishing requirements for equipment used in the production, 
gathering, storage, processing, and separation of crude oil and natural 
gas from any petroleum production permit unit prior to custody 
transfer. SCAQMD Rule 463 and Rule 1178 control VOCs by establishing 
roof and cover requirements as well as vapor recovery system 
requirements for stationary above-ground tanks storing organic liquids.
    The EPA's technical support documents (TSDs) for this action have 
more information about these rules and are included in the docket for 
this rulemaking.\3\
---------------------------------------------------------------------------

    \3\ There are seven TSDs that support this action, one for each 
rule listed in table 1.
---------------------------------------------------------------------------

II. The EPA's Evaluation and Action

A. How is the EPA evaluating these rules?

    Rules in the SIP must be enforceable (see CAA section 110(a)(2)) 
and must not interfere with applicable requirements concerning 
attainment and reasonable further progress or other CAA requirements 
(see CAA section 110(l)). In addition, because these rules were 
submitted in part to satisfy the RACT requirement for sources covered 
by the 2016 Oil and Gas CTG in the applicable local air districts, 
these rules must establish RACT level controls for such sources. 
Section III.D of the preamble to the EPA's final rule to implement the 
2008 8-hour ozone NAAQS and sections III.F and IV.B of the preamble to 
the EPA's final rule to implement the 2015 8-hour ozone NAAQS discusses 
RACT requirements.\4\
---------------------------------------------------------------------------

    \4\ 80 FR 12264, March 6, 2015, and 83 FR 62998, December 6, 
2018.
---------------------------------------------------------------------------

    The CARB Oil and Gas Methane Rule applies statewide, including 
within the applicable local air districts. However, the CARB Oil and 
Gas Methane Rule contains exemptions for certain equipment, provided 
that the equipment is subject to one of several specified local air 
district rules. Therefore, in order to establish RACT level controls 
for all facilities covered by the 2016 Oil and Gas CTG, both the CARB 
Oil and Gas Methane Rule and the local air district rules referenced 
within the CARB Oil and Gas Methane Rule must implement RACT.
    In our September 30, 2022 action, we found that the CARB Oil and 
Gas Methane Rule, and the associated local air district rules were 
largely consistent with the relevant CAA requirements, including the 
requirement to implement RACT for sources covered by the CTG. However, 
in that action we identified a list of specific deficiencies that 
prevented full approval of the CARB Oil and Gas Methane Rule and the 
underlying RACT requirement in the applicable local air districts, 
which served as the bases for our disapproval of the RACT requirement 
for the 2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil 
and Gas CTG. Our proposed approval of the CARB Oil and Gas Methane Rule 
and the associated local air district rules in this action does not 
otherwise alter our previous determination that these rules together 
establish RACT-level controls for all sources subject to the 2016 Oil 
and Gas CTG within the applicable local air districts, but for the 
specified deficiencies. As a result, in this action, we focus our 
analysis primarily on the revisions that have been made to these seven 
rules, and supporting analysis, to cure the previously identified 
deficiencies and serve as the bases for now proposing to approve and 
conditionally approve \5\ the associated RACT requirement for the 2008 
and 2015 ozone NAAQS.
---------------------------------------------------------------------------

    \5\ See Section II.E of this preamble. We are proposing to 
approve the RACT requirement for SMAQMD, SJVUAPCD, VCAPCD, and 
YSAQMD, and conditionally approve the RACT requirement for SCAQMD.
---------------------------------------------------------------------------

    Guidance and policy documents that we used to evaluate 
enforceability, revision/relaxation, and rule stringency requirements 
for the applicable criteria pollutants include the following:

    1. ``State Implementation Plans; General Preamble for the 
Implementation of Title I of the Clean Air Act Amendments of 1990,'' 
57 FR 13498 (April 16, 1992); 57 FR 18070 (April 28, 1992).
    2. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, 
and Deviations,'' EPA, May 25, 1988 (the Bluebook, revised January 
11, 1990).
    3. ``Guidance Document for Correcting Common VOC & Other Rule 
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).
    4. EPA 453/B-16-001, Control Techniques Guidelines for the Oil 
and Natural Gas Industry, October 2016.

B. Do these rules meet the evaluation criteria?

    In our 2022 action, we determined that the CARB Oil and Gas Methane 
Rule established RACT level controls except for certain deficiencies 
that are addressed by this rulemaking.\6\ The revisions to the 
submitted CARB Oil and Gas Methane Rule as well as the six submitted 
California District rules correct the deficiencies identified in the 
EPA's previous action. Our analysis in our previous action relied on 
the CARB Oil and Gas Methane Rule and the SIP-approved local air 
district rules regulating sources covered by the 2016 Oil and Gas CTG. 
Some of the deficiencies were contained in the applicable local air 
district rules and precluded approval of the RACT requirement for these 
districts, even if the deficiencies in the CARB Oil and Gas Methane 
Rule were rectified. Our proposed approval of the CARB Oil and Gas 
Methane Rule and the revised local air district rules addressing these 
deficiencies does not otherwise alter our previous RACT determination.
---------------------------------------------------------------------------

    \6\ See 87 FR 59314.
---------------------------------------------------------------------------

    On April 2, 2024, CARB submitted the CARB Oil and Gas Methane Rule 
(adopted June 22, 2023), to correct the deficiencies of the limited 
disapproval. CARB also submitted rules for the SCAQMD, VCAPCD, and 
SJVUAPCD on the dates specified in table 1 to correct the deficiencies 
of the disapproved RACT requirement from our September 30, 2022 action. 
Below we describe the prior deficiencies, explain how they have been 
corrected, and evaluate the overall enforceability and stringency of 
the submitted rules. Our TSD for the CARB Oil and Gas Methane Rule and 
six additional TSDs for the district rules include in-depth 
descriptions of the deficiencies and how they have been corrected.
1. Deficiencies in the CARB Oil and Gas Methane Rule
    Subsections 95668(a)(2)(C), 95669(b)(1), and 95670(a)(1) of the 
CARB Oil and Gas Methane Rule provided general exemptions from the 
requirements for storage tanks or components when ``approved for use by 
a local air district'' or ``subject to a local air district 
requirement.'' It was unclear which specific requirements these 
provisions pointed to and whether these requirements were in the SIP. 
Additionally, absent specificity about what is required for 
``approv[al],'' these exemptions appeared to provide unbounded 
director's discretion. To address this deficiency, for areas that

[[Page 36732]]

must meet RACT, CARB revised the Rule to specify the local air district 
rule(s) a source must follow in place of the specified requirements in 
the CARB Oil and Gas Methane Rule.
    Subsections 95668(a), 95668(b)(4), and section 95671 of the CARB 
Oil and Gas Methane Rule did not contain a requirement for separator 
and tank systems to demonstrate initial and continuous compliance with 
the requirement to control emissions with a vapor collection system. 
Nor did the subsections specify which test methods must be used to 
determine compliance or requirements to report information 
demonstrating initial and continuous compliance. To address this 
deficiency, Appendices D and E were added to the CARB Oil and Gas 
Methane Rule to require initial and continuous compliance for 
subsection 95668(a) and section 95671. These appendices closely follow 
the CTG model rule requirements.\7\ Subsection 95668(a) and section 
95671 were also revised to require owners and operators to follow the 
provisions in Appendix D and E. Subsection 95668(b)(4) was removed in 
response to another deficiency, so no further revisions were needed to 
address this deficiency with respect to subsection 95668(b)(4).
---------------------------------------------------------------------------

    \7\ CARB Oil and Gas Rule Appendix D is modeled very closely to 
the 2016 Oil and Gas CTG Appendix A sections A.2-A.4, which is the 
section of the CTG model rule for requirements of VOC Emission 
control, initial compliance, and continuous compliance for storage 
vessels. CARB Oil and Gas Rule Appendix E is modeled very closely to 
the 2016 Oil and Gas CTG Appendix A section A.2(d)-(e) which is the 
closed vent and control device requirements for storage vessels 
under the model rule, and Appendix A section A.3-A.4 which details 
the requirements for continuous and continuous compliance for VOC 
emission control for storage vessels.
---------------------------------------------------------------------------

    The CARB Oil and Gas Methane Rule provided exemptions from the 
vapor control requirements of the Rule for low use compressors in 
subsections 95668(c)(2)(A) and 95668(d)(2)(A); however, the 2016 Oil 
and Gas CTG does not provide for this type of exemption. To address 
this deficiency, CARB conducted an analysis using compressor data from 
2018,\8\ which demonstrated that the active exempted compressors 
estimated emissions were 2.4 MT CH4/yr,\9\ and the total emissions from 
the compressors complying with subsections 95668(c) and (d) of the CARB 
Oil and Gas Methane Rule is 7,000 MT CH4/yr for reciprocating 
compressors and 52 MT CH4/yr for centrifugal compressors.\10\ According 
to CARB's analysis, the emissions from all of the exempted low use 
compressors in 2018 amounted to 0.03% of total methane emissions from 
compressors subject to subsections 95668(c) and (d). CARB expects the 
relative composition of methane and VOCs in natural gas to be similar 
for compressors subject to control requirements as for those qualifying 
for the low-use exemption.\11\ Based on this analysis, we consider the 
VOC emissions exempted for low use reciprocating natural gas 
compressors to represent a de minimis amount of emissions and therefore 
addresses this deficiency.
---------------------------------------------------------------------------

    \8\ CARB stated in the ``Technical Clarifications Document'' 
page 14, that Data from 2018 was used because CARB had previously 
been provided data about the operating hours of the compressors at 
issue for that year.
    \9\ Using Table 7-2 of Methane Emission Factors for 
Reciprocating and Centrifugal Compressors in EPA's 2021 Emissions 
Guidelines and New Source Performance Standards Technical Support 
Document. U.S. EPA, Oil and Natural Gas Sector: Emission Standards 
for New, Reconstructed, and Modified Sources and Emissions 
Guidelines for Existing Sources: Background Technical Support 
Document Proposed NSPS and EG, 40 CFR subparts OOOOb and OOOOc, 
2021.
    \10\ CARB (2016a). Proposed Regulation for Greenhouse Gas 
Emission Standards for Crude Oil and Natural Gas Facilities. Staff 
Report: Initial Statement of Reasons. Appendix B: Economic Analysis. 
Posted 31 May 2016. https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2016/oilandgas2016/oilgasappb.pdf.
    \11\ CARB, ``Technical Clarifications on the Resubmission of 
California's Greenhouse Gas Emission Standards for Crude Oil and 
Natural Gas Facilities into the California State Implementation Plan 
Following Amendments Effective April 1, 2024'', at p.15.
---------------------------------------------------------------------------

    Subsections 95668(c)(4)(F) and 95668(d)(9) of the CARB Oil and Gas 
Methane Rule potentially allowed a leak to go unrepaired for an 
additional year after being identified, but the 2016 Oil and Gas CTG 
does not allow for this extended timeline. To address this deficiency, 
CARB removed the extended repair provisions in subsections 
95668(c)(4)(F) and 95668(d)(9).
    Subsections 95668(c)(4)(B), 95668(d)(4), and 95668(g)(1) of the 
CARB Oil and Gas Methane Rule required measuring flowrate using 
``direct measurement (high volume sampling, bagging, calibrated flow 
measuring instrument).'' However, the Rule did not specify test methods 
or a calculation methodology for determining flowrate. To address this 
deficiency, in place of the parenthetical following the term ``direct 
measurement'' in these subsections, CARB added a definition of direct 
measurement in subsection 95667(a)(17) of the rule that only allows 
high volume sampling or measurement with a calibrated flow measuring 
instrument. The definition requires high-volume sampling be performed 
in accordance with the procedures in the new Appendix G, requires 
owners and operators using a calibrated flow measuring instrument to 
meet the requirements in U.S. EPA Method 2D, and requires that the 
instrument is calibrated annually according to that test method. Given 
the addition of the test methods in Appendix G, along with the 
definitional changes described above. These amendments correct the 
deficiency.
    Subsections 95668(c)(3)(D)(1)(a), (c)(4)(D)(1)(a), (d)(6)(A)(1) and 
subsections 95669(h)(4)(A)(1) and (i)(5)(A)(1) of the CARB Oil and Gas 
Methane Rule described delay of repair that is not allowed to exceed a 
specified number of days unless CARB is notified and provided with an 
estimated repair completion time. This provided an open-ended and 
potentially indefinite period during which a leak could remain 
unrepaired. To address this deficiency, CARB added section 95670.1 to 
the Rule, which requires operators to submit an estimated repair date 
that is as soon as practicable and to complete repairs by that date. 
This request must be substantiated with specified documentation 
providing justification for any delay. CARB must approve or deny a 
delay of repair request within five days. This removes the open-ended, 
potentially indefinite periods for unrepaired leaks. Subsection 
95668(c)(3)(D)(1)(a) of the Rule was removed, and subsections 
95668(c)(4)(D)(1)(a) and (d)(6)(A)(1) and subsections 95669(h)(4)(A)(1) 
and (i)(5)(A)(1) were revised to require that the operators use the 
delay of repair provisions in section 95670.1 of the amended Rule. 
These amendments address the deficiency.
    The 2016 Oil and Gas CTG applies to most storage vessels in the oil 
and natural gas industry constructed primarily of non-earthen materials 
that contain an accumulation of crude oil, condensate, intermediate 
hydrocarbon liquids, or produced water. Those storage vessels with a 
potential to emit (PTE) of 6 tons per year (tpy) or greater of VOC are 
required to implement RACT-level control. The 2016 Oil and Gas CTG 
recommends RACT-level control to provide for at least (1) 95% vapor 
control efficiency or (2) maintenance of actual VOC emissions below 4 
tpy. Because CARB's rule only considers the separator and first tank 
connected to the separator to determine whether the source meets the 10 
tpy methane emissions applicability threshold,\12\ it was not clear 
whether the

[[Page 36733]]

rule captured all storage vessels at oil and gas facilities that meet 
or exceed the 2016 Oil and Gas CTG PTE threshold, and which are 
therefore required to implement RACT. To address this deficiency, CARB 
and the applicable local air districts have demonstrated that storage 
vessels at oil and gas facilities in ozone nonattainment areas are 
required to have RACT-level controls for VOCs when the PTE exceeds 6 
tpy of VOCs. SJVUAPCD Rule 4623, SCAQMD Rule 463, and SCAQMD Rule 1178 
have been amended to include storage vessels with PTE of 6 tpy VOC or 
greater. VCAPCD demonstrated that an explicit 6 tpy VOC applicability 
threshold was not needed in the rule because most storage vessels are 
already required to meet the 95% vapor control efficiency requirement 
in VCAPCD Rule 71.1, and the exemptions to that requirement would not 
be available to storage vessels with a PTE of 6 tpy or greater.\13\ 
CARB demonstrated that sources regulated by SMAQMD and YSAQMD only have 
single tank systems (i.e., separator and connected tank), and therefore 
the issue raised in this deficiency does not apply in these areas and 
the CARB Oil and Gas Methane Rule alone is sufficient to require RACT 
level controls for storage tanks regulated by these two districts.\14\ 
The amendments to the local SJVUAPCD and SCAQMD rules, along with 
VCAPCD and CARB's demonstrations address this deficiency.
---------------------------------------------------------------------------

    \12\ The definition of ``separator and tank system'' found in 
section 95667(a)(57) limits the system to ``the first separator in a 
crude oil or natural gas production system and any tank or sump 
connected directly to the first separator.'' The 10 tpy methane 
threshold is found in section 95668(a)(4), (5), and (6). CARB's 
staff report estimates that the 10 tpy of methane emissions 
threshold in the Rule is about ~1.8 tpy VOC and below the CTG 
requirement that systems maintain emissions less than 4 tpy VOC. 
CARB Staff Report, 4.
    \13\ The TSD for VCAPCD Rule 71.1 has more detailed information.
    \14\ CARB, ``Technical Clarifications on the Resubmission of 
California's Greenhouse Gas Emission Standards for Crude Oil and 
Natural Gas Facilities into the California State Implementation Plan 
Following Amendments Effective April 1, 2024'', at pp.18-19.
---------------------------------------------------------------------------

    Subsection 95668(a)(2)(A) of the CARB Oil and Gas Methane Rule 
exempted separator and tank systems, as defined within the rule, that 
receive an average of less than 50 barrels of crude oil or condensate 
per day from the rule's flash testing and vapor control requirements 
for storage vessels. By using the word ``or,'' this exemption 
potentially exempted tanks that receive a minor amount of either crude 
oil or condensate, but a significant quantity of the other organic 
liquid. To address this deficiency, CARB amended subsection (a)(2)(A) 
and replaced ``or'' with ``and'' so that only separator and tank 
systems that receive an average of less than 50 barrels of crude oil 
and less than 50 barrels of condensate per day will be exempted.
    Subsections 95668(a)(3) and (4) of the CARB Oil and Gas Methane 
Rule required existing and new tanks that are not equipped with vapor 
collection systems to comply with specified requirements for flash 
testing. The rule required tanks with emissions greater than 10 tpy of 
methane to meet specified vapor control requirements. The rule did not 
specify requirements for how tanks equipped with vapor control (either 
vapor collection systems, or tanks with floating roofs) determine their 
emissions (PTE or actual) to assess whether they must meet RACT-level 
control requirements (i.e., vapor collection systems that meet 95% 
control, or to maintain actual emissions at less than 4 tpy VOC). To 
address this deficiency, CARB amended the Rule to include specific 
requirements for how tanks equipped with vapor controls must conduct 
compliance testing, performance testing, and flash testing. The new 
requirements were added in subsections 95671(d) and (e).
    Subsection 95668(b)(4) of the CARB Oil and Gas Methane Rule 
required circulation tanks for well completion to be controlled with at 
least 95% vapor collection and control efficiency unless CARB made a 
determination that controlling emissions was not possible. This 
provision was deficient because it insufficiently bounded CARB's 
discretion and provided for an exemption for these tanks that is 
inconsistent with the 2016 Oil and Gas CTG. To address this deficiency, 
CARB removed this section of the Rule and clarified that circulation 
tanks are now covered under requirements for separator and tank 
systems. Since this section of the rule, including the exemption, has 
been removed, CARB's discretion is now sufficiently bounded. These 
amendments address this deficiency.
    Subsections 95668(c)(3)(B) and (c)(4)(B)(3) of the CARB Oil and Gas 
Methane Rule contained the term ``inspection period.'' The term was not 
defined, nor was it used in the relevant part of section 95669--Leak 
Detection and Repair--that specifies when to conduct equipment 
inspections. It was not clear if ``inspection period'' was referencing 
the section 95669(g) quarterly testing requirement or something else. 
To address this deficiency, section 95668(c)(3)(B) of the Rule, which 
addressed compressor rod packing and seals, has been deleted and the 
inspection requirement for this equipment is now included under 
subsection 95669(g), which requires leak detection testing each 
calendar quarter for all components. While rod packings and seals are 
not explicitly mentioned in section 95669, the definition of components 
includes ``reciprocating compressor rod packing or seals for 
compressors located at onshore or offshore crude or natural gas 
production facilities.'' Additionally, the ``inspection period'' 
language in subsection 95668(c)(4)(B)(3) was replaced with ``calendar 
year.'' Generally, in the places where the term ``inspection period'' 
was used, it has been replaced with ``calendar year.'' This quantifies 
the inspection period and clarifies the requirements. These amendments 
address the deficiency.
    Subsection 95669(b)(7) of the CARB Oil and Gas Methane Rule 
exempted one-half inch and smaller stainless steel tube fittings used 
to supply natural gas to equipment or instrumentation from continuous 
monitoring. When these stainless-steel tube fittings are at natural gas 
processing plants or gathering and boosting stations, the 2016 Oil and 
Gas CTG recommends quarterly testing for leaks, as well as semi-annual 
fugitive emissions testing at well sites and gathering/boosting 
stations. Thus, this exemption was inconsistent with the CTG and 
identified as a deficiency in the Rule. To address this deficiency, 
CARB removed this exemption.
    Subsection 95669(i)(1) of the CARB Oil and Gas Methane Rule 
required leaks of 1,000-9,999 ppm be repaired within 14 days, but this 
timing did not meet RACT level stringency because the 2016 Oil and Gas 
CTG recommends attempting repairs within 5 days of the detected 
leak.\15\ To address this deficiency, subsection 95669(h)(1) now 
contains additional language requiring that a first attempt at repair 
be made within five calendar days for leaks between 1,000-9,999 ppm.
---------------------------------------------------------------------------

    \15\ 2016 Oil and Gas CTG recommends implementation of an LDAR 
program equivalent to what is required under 40 CFR part 60, subpart 
VVa. Subpart VVa contains the requirement for first attempt at 
repair within 5 days in several sections for various types of 
components: 60.482-2a Pumps in liquid service, 60.482-31 
Compressors, 60.482-7a Valves in gas/vapor service and in light 
liquid service, 60.482-8a Pumps, valves, and connectors in heavy 
liquid service and pressure relief devices in light liquid or heavy 
liquid service, and 60.482-10a Closed vent systems and control 
devices.
---------------------------------------------------------------------------

    The 2016 Oil and Gas CTG contains a requirement to maintain a list 
of identification numbers for all the equipment subject to leak 
regulation.\16\ Section 95669 of the CARB Oil and Gas Methane Rule did 
not contain a similar requirement, which undermined the enforceability 
of CARB's rule. To address this deficiency, subsection 95669(d)(1) was 
revised to require that

[[Page 36734]]

operators develop and maintain detailed facility-specific leak 
detection and repair plans. Given the level of detail in these plan 
requirements, and specifically the inclusion of subsection 
95669(d)(1)(C) in the Rule that specifies that the plan must include a 
list of equipment with an identification number or detailed description 
for each piece of equipment, these amendments correct the previous 
deficiency.
---------------------------------------------------------------------------

    \16\ 2016 Oil and Gas CTG, 8-15.
---------------------------------------------------------------------------

    Section 95669 of the CARB Oil and Gas Methane Rule did not contain 
a requirement to maintain a list of equipment that is designated as 
``unsafe to monitor'' consistent with the 2016 Oil and Gas CTG. This 
deficiency was corrected by an added requirement in subsection 
95669(d)(1)(E) that leak detection and repair plans include a list of 
equipment and components that are designated as inaccessible or unsafe 
to monitor.
    Subsection 95671(f) of the CARB Oil and Gas Methane Rule allowed 
vapor control systems (VCS) to be taken out of service for up to 30 
calendar days per year while maintenance is performed. The 2016 Oil and 
Gas CTG does not specify time allowed for maintenance. Moreover, this 
maintenance requirement resulted in CARB having unbounded discretion to 
remove control equipment from service by not having requirements 
specifying the necessity of taking the system out of service and 
minimizing the outage time. To address this deficiency, subsection 
95671(g) (formerly subsection 95671(f)) was revised to lower the number 
of non-operation days for maintenance of vapor collection systems per 
year from 30 to 14. Subsection 95671(g)(1) was revised to require that 
for any further extension to the number of maintenance days per year, 
the owner or operator must obtain approval from CARB and, among other 
requirements, provide CARB justification for the maintenance, the 
number of additional days requested, and justification that the number 
of additional days is necessary to perform the maintenance. These 
amendments correct the previous deficiency by lowering the standard 
number of days allowed for maintenance and any further extension is now 
sufficiently bounded.
    Section 95672 of the CARB Oil and Gas Methane Rule did not specify 
what type of records needed to be kept for certain units, such as 
separator and tank systems, vapor collection systems, vapor control 
devices, compressors, and pneumatic devices. The section was not 
sufficiently enforceable because it did not describe what type of 
records need to be kept such as testing and monitoring results. To 
address this deficiency, section 95672 was revised to include several 
requirements specifying the types of records that must be kept. In 
addition, Appendix A also now contains recordkeeping and reporting 
forms that more specifically identify the types of records that must be 
kept. Given the additional specificity about the types of records that 
must be kept that have been added to the rule, including for the 
categories mentioned in the previously identified deficiency, these 
amendments correct the deficiency.
    Previously, the CARB Oil and Gas Methane Rule relied on test 
methods that had otherwise not been approved by the EPA, and allowed 
alternative test procedures, sampling methods, or laboratory methods to 
be used if written permission was obtained from CARB. This created a 
deficiency because it undermined the enforceability of the rule and 
allowed CARB the discretion to modify rule provisions without a SIP 
revision. To address this deficiency, CARB revised Appendix C by 
removing references to test methods that have not been approved by the 
EPA and removing the relevant unbounded director's discretion language 
related to changing test methods.
2. Deficiencies Identified in District SIP-Approved Rules
    We previously identified three deficiencies related to SMAQMD Rule 
446 and one deficiency related to YSAQMD Rule 2.21. The deficiencies 
related to ensuring all the storage vessels required to be covered by 
the 2016 Oil and Gas CTG would be subject to these rules, and, in the 
case of Rule 446, ensuring the rule met RACT-level stringency. To 
address this deficiency, the CARB Oil and Gas Methane Rule now includes 
a specific list of local rules that allow equipment to be exempt from 
the Rule's requirements, and this list does not include SMAQMD Rule 446 
or YSAQMD 2.21 as exemptions to CARB's requirements for separator and 
tank systems. As a result, all the storage tanks within the 
jurisdiction of SMAQMD and YSAQMD that are covered by the 2016 Oil and 
Gas CTG are now subject to the requirements in the CARB Oil and Gas 
Methane Rule and will meet RACT-level stringency.
    SCAQMD Rule 463, SCAQMD Rule 1178, SJVUAPCD Rule 4623, VCAPCD Rule 
71.1, and VCAPCD Rule 71.2 were each determined to potentially not 
apply to all the storage vessels at oil and gas facilities required to 
be covered by the 2016 Oil and Gas CTG. The 2016 Oil and Gas CTG 
recommends determining applicability for this equipment based on PTE 
and each of these rules determined applicability based only on a tank's 
volumetric capacity or vapor pressure. To address this deficiency, 
SCAQMD Rule 463, SCAQMD Rule 1178, and SJVUAPCD Rule 4623 were revised 
to establish the 6 tpy PTE threshold from the 2016 Oil and Gas CTG in 
determining applicability. For VCAPCD Rule 71.1, VCAPCD provided 
additional information and calculations to address the deficiency.\17\ 
VCAPCD performed calculations for each of the three vapor recovery 
exemptions in the rule and showed that all tanks currently using those 
exemptions are below the 6 tpy PTE threshold. The memo also 
demonstrates that no future tanks that exceed the 6 tpy PTE threshold 
will be exempt because either those exemptions are not available to 
future tanks or the size of tank that would be necessary to exceed the 
threshold is not a realistic tank size. Finally, the amended CARB Oil 
and Gas Methane Rule does not rely on VCAPCD 71.2 to meet RACT-level 
stringency and no revisions to this Rule were needed to address this 
deficiency.
---------------------------------------------------------------------------

    \17\ Appendix A, VCAPCD Rule 71.1 Vapor Recovery Exemption 
Analysis'' in VCAPCD's Staff Report for Rule 71.1.
---------------------------------------------------------------------------

    VCAPCD Rule 71.1 was determined to not be sufficiently enforceable 
because it did not include initial or continuous compliance 
demonstration requirements. VCAPCD corrected this deficiency by adding 
such requirements that are consistent with the 2016 Oil and Gas CTG.
    We previously determined that SJVUAPCD Rule 4401 did not meet RACT-
level stringency because it required annual leak inspections with a 
threshold of 1,000 ppm, using Method 21, at a lower frequency and 
threshold than the 2016 Oil and Gas CTG (which recommends semiannual 
inspection frequency with threshold of 500 ppm). To address this 
deficiency, SJVUAPCD amended Rule 4401 to lower the minimum leak 
threshold and increase inspection frequency. SJVUAPCD lowered the 
minimum leak rate threshold for a minor leak from 2,000 ppm to 500 ppm 
for all components, except for pressure relief devices, which already 
had a lower threshold of 400 ppm. These revisions are consistent with 
the 2016 Oil and Gas CTG. The inspection frequency was also changed 
from annual to quarterly, which exceeds the 2016 Oil and Gas CTG's 
recommendation of semiannual inspections and aligns with the inspection 
frequency in SJVUAPCD Rule 4409 and the CARB Oil and Gas Methane Rule. 
These amendments correct the previously identified deficiency.

[[Page 36735]]

3. Deficiency Identified in CARB Oil and Gas Methane Rule and SJVUAPCD 
Rule 4409
    The CARB Oil and Gas Methane Rule and SJVUAPCD Rule 4409 provide 
exemptions from leak detection and repair (LDAR) requirements based on 
the API gravity of crude oil at well sites. We previously determined 
that these exemptions had not been demonstrated to meet RACT because 
the 2016 Oil and Gas CTG does not provide for such an exemption based 
on API gravity. However, as described herein and in greater detail in 
our TSD for the CARB Oil and Gas Methane Rule, we have determined that 
the CARB Oil and Gas Methane Rule ensures RACT-level stringency for 
LDAR requirements at well sites. The 2016 Oil and Gas CTG limits its 
RACT recommendation for semiannual LDAR monitoring to well sites with 
crude oil that has a gas to oil ratio (GOR) greater than or equal to 
300.\18\ This was based on the EPA's conclusion that monitoring for 
well sites producing heavy oils would not be sufficiently cost 
effective, as leaks associated with heavy oil production will generally 
emit less VOC. In developing the 2016 Oil and Gas CTG, the EPA defined 
a heavy oil well as a well that produces crude oil with a GOR of 300 
standard cubic feet (scf)/barrel (bbl) or less.\19\ However, GOR is not 
the only metric that can be used to classify whether crude oil is heavy 
oil. Upon review of available information, we can conclude that an API 
gravity equal to or greater than 20 degrees, as used in the CARB Oil 
and Gas Rule to exempt well sites from LDAR requirements, is consistent 
with the 2016 Oil and Gas CTG recommendation to only exclude heavy oils 
from such requirements.\20\ However, SJVUAPCD Rule 4409 is intended to 
apply to ``light'' crude oil production and uses an API gravity equal 
to or greater than 30 degrees to make this determination. As a result, 
we do not agree that Rule 4409 alone ensures only heavy crude oils are 
exempt from LDAR requirements for sources regulated by SJVUAPCD. But 
well sites producing crude oil with an API gravity between 20 degrees 
and 30 degrees will still be required to meet RACT-level stringency 
because such sources will be subject to LDAR requirements under the 
CARB Oil and Gas Methane Rule. Sources can only be exempted from the 
requirements in the CARB Oil and Gas Methan Rule if they are ``subject 
to'' the specified local air district rules. Sources regulated by 
SJVUAPCD that are exempt from Rule 4409 are not ``subject to'' such 
rules, and thus do not qualify to be exempted from the CARB Oil and Gas 
Methane Rule. Thus, this deficiency has been addressed because we were 
able to determine that all sources regulated by the SJVUAPCD covered by 
the 2016 Oil and Gas CTG are required to meet RACT-level requirements 
by either the CARB Oil and Gas Methane Rule or SJVUAPCD Rule 4409.
---------------------------------------------------------------------------

    \18\ 2016 Oil and Gas CTG, 9-39.
    \19\ EPA, ``Information Collection Request Supporting Statement, 
Information Collection Effort for Oil and Gas Facilities,'' EPA ICR 
No. 2548.01, November 9, 2016, https://www.epa.gov/sites/default/files/2016-11/documents/oil-natural-gas-icr-supporting-statement-epa-icr-2548-01.pdf.
    \20\ As further explained in our TSD for the CARB Oil and Gas 
Methane Rule, both API gravity and GOR are metrics that reflect the 
volatility of crude, with greater VOC emissions coming from crude 
with higher values--both of API gravity and of GOR.
---------------------------------------------------------------------------

4. Overall Stringency and Enforceability of the Submitted Rules
    In our 2022 action, we reviewed the CARB Oil and Gas Methane Rule 
and applicable local air district rules that regulated the sources 
covered by the 2016 Oil and Gas CTG and determined that these rules 
together established RACT level controls, except for certain 
deficiencies.\21\ As described above, the submitted rules that 
contained deficiencies that precluded approval of the RACT 
demonstration were either amended to address the deficiencies, or were 
removed from the list of local air district rules that allow exemptions 
from the requirements of the CARB Oil and Gas Methane Rule.
---------------------------------------------------------------------------

    \21\ See ``Technical Support Document for EPA's Rulemaking for 
the California State Implementation Plan California Air Resources 
Board (CARB) Regulation for Greenhouse Gas Emissions Standards for 
Crude Oil and Natural Gas Facilities California Code of Regulations, 
Title 17, Division 3, Chapter 1, Subchapter 10 Climate Change, 
Article 4 Subarticle 13: Greenhouse Gas Emission Standards for Crude 
Oil and Natural Gas Facilities'' p. 8 (stating that ``we have 
reviewed the local air district rules and conclude that the 
provisions in those rules that relate to the Oil and Gas CTG 
generally establish RACT level controls'' with the exception of 
specifically enumerated deficiencies).
---------------------------------------------------------------------------

    The CARB Oil and Gas Methane Rule and the local air district rules 
listed in table 1 strengthen the SIP by establishing enforceable 
emission limits and by clarifying monitoring, recordkeeping, and 
reporting provisions. Except for one issue described below, these rules 
are consistent with CAA requirements and relevant guidance regarding 
enforceability, RACT, and SIP revisions. The TSDs for each of the rules 
we are proposing to approve into the California SIP in this rulemaking 
also include more information regarding the basis for our proposed 
approval.

C. Were there any newly identified deficiencies with the April 2, 2024, 
submitted CARB Oil and Gas Methane Rule?

    The CARB Oil and Gas Methane Rule exempts sources from compliance 
with portions of the Rule if those sources comply with certain existing 
California air district rules. One such rule is SCAQMD Rule 1148.1--Oil 
and Gas Production Wells (Amended March 5, 2004). SCAQMD Rule 1148.1 
lacks reporting requirements comparable to the reporting requirements 
included in the CARB Oil and Gas Methane Rule and applicable local air 
district rules. SCAQMD Rule 1148.1 otherwise contains comparable 
inspection requirements, recordkeeping and records retention 
requirements, and appropriate test methods to determine compliance, but 
it does not contain reporting requirements equivalent to similar CARB 
and local air district rules. For example, by comparison, section 95673 
of the CARB Oil and Gas Methane Rule requires annual reports of LDAR 
inspections, and SJVUAPCD Rule 4401 contains annual reporting 
requirements for Operator Managment Plans.
    In a letter included in their submittal on April 2, 2024, CARB has 
committed to submit an amended version of South Coast Rule 1148.1 that 
will address this deficiency. Consistent with the requirements of CAA 
section 110(k)(4), CARB has committed to submit the adopted rule to EPA 
within 12 months of the effective date of EPA's final rulemaking 
conditionally approving the RACT requirement for the 2008 and 2015 
ozone NAAQS for sources covered by the 2016 Oil and Gas CTG and 
regulated by SCAQMD.

D. The EPA's Recommendations to Further Improve the Rules

    The TSDs include recommendations for the next time CARB and 
SJVUAPCD modify their rules.

E. Public Comment and Proposed Action

    As authorized in section 110(k)(3) of the Act, the EPA is proposing 
to approve the SIP submissions amending: the CARB Oil and Gas Methane 
Rule, SJVUAPCD Rule 4401, SJVUAPCD Rule 4409, SJVUAPCD Rule 4623, 
VCAPCD Rule 71.1, SCAQMD Rule 463, and SCAQMD Rule 1178. Based on our 
proposed conclusion that the amended rules cure the previously 
identified deficiencies, and our prior analysis concluding that these 
rules met the RACT requirement but for the identified deficiencies, we 
are also proposing to fully approve the CTG RACT

[[Page 36736]]

requirement for the 2008 and 2015 ozone NAAQS for sources covered by 
the 2016 Oil and Gas CTG in SMAQMD, SJVUAPCD, VCAPCD, and YSAQMD 
because the rules fulfill all relevant requirements.
    In addition, we propose to find that the CARB Oil and Gas Methane 
Rule, in combination with the specified local air district rules in the 
SCAQMD largely fulfills the relevant CAA section 110 and part D 
requirements, except for the newly identified deficiency in SCAQMD Rule 
1148.1. As discussed in section II.C, this deficiency precludes full 
approval of the RACT requirement for the 2008 and 2015 ozone NAAQS for 
sources covered by the 2016 Oil and Gas CTG and regulated by SCAQMD. 
Section 110(k)(4) authorizes the EPA to conditionally approve SIP 
revisions based on a commitment by the state to adopt specific 
enforceable measures by a date certain but not later than one year 
after the date of the plan approval.\22\ Because CARB has committed to 
provide the EPA with a SIP submission within 12 months of this final 
action that would adequately address the identified deficiency, we are 
proposing to conditionally approve the CTG RACT requirement for the 
2008 and 2015 ozone NAAQS for sources covered by the 2016 Oil and Gas 
CTG in SCAQMD, pursuant to section 110(k)(4) of the Act.
---------------------------------------------------------------------------

    \22\ 42 U.S.C. 7410(k)(4).
---------------------------------------------------------------------------

    If CARB and SCAQMD submit the required rule revisions by the 
specified deadline, and the EPA approves the submission, then the 
identified deficiency will be cured. However, if this proposed 
conditional approval is finalized, and SCAQMD, through CARB, fails to 
submit these revisions within the required timeframe, the conditional 
approval would be treated as a disapproval for the RACT requirement for 
sources covered by the 2016 Oil and Gas CTG in SCAQMD.
    If we finalize this rulemaking as proposed, CARB and the applicable 
local air districts will have corrected the deficiencies identified in 
our September 30, 2022 action, and all sanction and Federal 
implementation plan clocks started by our September 30, 2022 action 
would be permanently stopped. We are concurrently making an interim 
final determination to defer CAA section 179 sanctions associated with 
our 2022 action finalizing a limited approval and limited disapproval 
of the 2018 submittal of the CARB Oil and Gas Methane Rule and a 
disapproval of the associated CTG RACT requirements. Consistent with 
our order of sanction regulations,\23\ this determination is based on 
this proposal to approve and conditionally approve SIP revisions from 
CARB that resolve the deficiencies that were the basis of our prior 
disapproval that triggered sanctions under section 179 of the CAA. The 
deficiency associated with our proposed conditional approval in this 
action is for a newly identified deficiency in SCAQMD Rule 1148.1, as 
discussed in section C, and is distinct from the deficiencies that 
formed the basis of our 2022 disapproval that triggered sanctions under 
sanction 179 of the CAA.
---------------------------------------------------------------------------

    \23\ 40 CFR 52.31.
---------------------------------------------------------------------------

    We will accept comments from the public on this proposal until June 
3, 2024. If we take final action to approve the submitted rules, our 
final action will incorporate these rules into the federally 
enforceable SIP.

III. Incorporation by Reference

    In this rule, the EPA is proposing to include in a final EPA rule, 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by 
reference the CARB Oil and Gas Methane Rule, SJVUAPCD Rule 4409, 
SJVUAPCD Rule 4401, SJVUAPCD Rule 4623, SCAQMD Rule 1178, SCAQMD Rule 
463, and VCAPCD Rule 71.1 described in section I.C. of this preamble. 
The EPA has made, and will continue to make, these materials available 
through https://www.regulations.gov and at the EPA Region IX Office 
(please contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section of this preamble for more information).

IV. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, the EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this proposed action merely proposes to approve state law 
as meeting Federal requirements and does not impose additional 
requirements beyond those imposed by state law. For that reason, this 
proposed action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 14094 (88 FR 21879, April 11, 2023);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not subject to Executive Order 13045 (62 FR 19885, 
April 23, 1997) because it proposes to approve a state program;
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001); and
     Is not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act.
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where the EPA or an Indian tribe 
has demonstrated that a tribe has jurisdiction. In those areas of 
Indian country, the rules do not have tribal implications and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law as specified by Executive Order 13175 (65 FR 67249, November 9, 
2000).
    Executive Order 12898 (Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations, 59 FR 7629, 
February 16, 1994) directs Federal agencies to identify and address 
``disproportionately high and adverse human health or environmental 
effects'' of their actions on minority populations and low-income 
populations to the greatest extent practicable and permitted by law. 
The EPA defines environmental justice (EJ) as ``the fair treatment and 
meaningful involvement of all people regardless of race, color, 
national origin, or income with respect to the development, 
implementation, and enforcement of environmental laws, regulations, and 
policies.'' The EPA further defines the term fair treatment to mean 
that ``no group of people should bear a disproportionate burden of 
environmental harms and risks, including those resulting from the 
negative environmental consequences of industrial, governmental, and 
commercial operations or programs and policies.''

[[Page 36737]]

    The State did not evaluate environmental justice considerations as 
part of its SIP submittal; the CAA and applicable implementing 
regulations neither prohibit nor require such an evaluation. The EPA 
did not perform an EJ analysis and did not consider EJ in this action. 
Consideration of EJ is not required as part of this action, and there 
is no information in the record inconsistent with the stated goal of 
Executive Order 12898 of achieving environmental justice for people of 
color, low-income populations, and Indigenous peoples.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Reporting and recordkeeping 
requirements, Volatile organic compounds.

    Dated: April 24, 2024.
Martha Guzman Aceves,
Regional Administrator, Region IX.
[FR Doc. 2024-09306 Filed 5-2-24; 8:45 am]
BILLING CODE 6560-50-P


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