82 FR 16331 - Review of the 2016 Oil and Gas New Source Performance Standards for New, Reconstructed, and Modified Sources
ENVIRONMENTAL PROTECTION AGENCY Federal Register Volume 82, Issue 63 (April 4, 2017)
Federal Register Volume 82, Issue 63 (April 4, 2017)
| Page Range | 16331-16332 | |
| FR Document | 2017-06658 |
[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)] [Proposed Rules] [Pages 16331-16332] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-06658] ----------------------------------------------------------------------- ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 60 [FRL-9961-09-OAR] Review of the 2016 Oil and Gas New Source Performance Standards for New, Reconstructed, and Modified Sources AGENCY: Environmental Protection Agency (EPA). ACTION: Announcement of review. ----------------------------------------------------------------------- SUMMARY: The U.S. Environmental Protection Agency (EPA) announces it is reviewing the 2016 Oil and Gas New Source Performance Standards and, if appropriate, will initiate reconsideration proceedings to suspend, revise or rescind this rule. DATES: April 4, 2017. FOR FURTHER INFORMATION CONTACT: Mr. Peter Tsirigotis, Sector Policies and Programs Division (D205-01), U.S. Environmental Protection Agency, Research Triangle Park, NC 27711; telephone number: (888) 627-7764; email address: airaction@epa.gov. SUPPLEMENTARY INFORMATION: The EPA announces it is reviewing the 2016 Oil and Gas New Source Performance Standards (Rule) 81 FR 35,824 (June 3, 2016), and, if appropriate, will initiate proceedings to suspend, revise, or rescind it. I. Background Section 111 of the Clean Air Act authorizes the EPA to issue nationally applicable New Source Performance Standards (NSPS) limiting air pollution from ``new sources'' in source categories that cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare. 42 U.S.C. 7411(b)(1). Under this authority, [[Page 16332]] the EPA had regulated sulfur dioxide emissions from natural gas processing and volatile organic chemicals (VOCs) from a number of equipment and operations at oil and gas facilities. 40 CFR part 60 subpart OOOO. In 2016, the EPA promulgated this Rule, which expanded the existing NSPS by requiring methane reductions from previously regulated sources and limiting methane and VOCs from other types of new oil and gas facilities never before regulated under Section 111. Several state and industry petitioners challenged this Rule in the U.S. Court of Appeals for the District of Columbia alleging, inter alia, that EPA acted arbitrarily and capriciously, and in excess of statutory authority. See, e.g., West Virginia v. EPA, 16-1264, State Petitioners' Nonbinding Statement of the Issues to be Raised. These cases have been consolidated and are pending before the court. Many of these parties also submitted petitions for reconsideration of this Rule to EPA. The Agency has not yet acted on these petitions. II. Initiation of Review of This Rule On March 28, 2017, President Trump issued an Executive Order establishing a national policy in favor of energy independence, economic growth, and the rule of law. The purpose of that Executive Order is to facilitate the development of U.S. energy resources-- including oil and gas--and to reduce unnecessary regulatory burdens associated with the development of those resources. The President has directed agencies to review existing regulations that potentially burden the development of domestic energy resources, and appropriately suspend, revise, or rescind regulations that unduly burden the development of U.S. energy resources beyond what is necessary to protect the public interest or otherwise comply with the law. The Executive Order also directs agencies to take appropriate actions, to the extent permitted by law, to promote clean air and clean water while also respecting the proper roles of Congress and the States. This Executive Order specifically directs EPA to review and, if appropriate, initiate proceedings to suspend, revise or rescind this Rule. Pursuant to the Executive Order, EPA is initiating its review of this Rule and providing advanced notice of forthcoming rulemaking proceedings consistent with the President's policies. If EPA's review concludes that suspension, revision or rescission of this Rule may be appropriate, EPA's review will be followed by a rulemaking process that will be transparent, follow proper administrative procedures, include appropriate engagement with the public, employ sound science, and be firmly grounded in the law. EPA's ability to revisit existing regulations is well-grounded in the law. Specifically, the agency has inherent authority to reconsider past decisions and to rescind or revise a decision to the extent permitted by law when supported by a reasoned explanation. FCC v. Fox Television Stations, Inc., 556 U.S. 502, 515 (2009) (``Fox''); Motor Vehicle Manufacturers Ass'n of the United States, Inc., et al., v. State Farm Mutual Automobile Insurance Co., et al., 463 U.S. 29, 42 (1983) (``State Farm''). Moreover, the Clean Air Act itself authorizes EPA to reconsider its rulemakings. 42 U.S.C. 7607(b)(1), (d)(7)(B). The Clean Air Act complements the EPA's inherent authority to reconsider prior rulemakings by providing the agency with broad authority to prescribe regulations as necessary. 42 U.S.C. 7601(a). The authority to reconsider prior decisions exists in part because EPA's interpretations of statutes it administers ``are not carved in stone'' but must be evaluated ``on a continuing basis,'' Chevron U.S.A. Inc. v. NRDC, Inc., 467 U.S. 837, 857-58 (1984). This is true when--as is the case here-- review is undertaken ``in response to . . . a change in administrations.'' National Cable & Telecommunications Ass'n v. Brand X Internet Services, 545 U.S. 967, 981 (2005). Importantly, such a revised decision need not be based upon a change of facts or circumstances. Rather, a revised rulemaking based ``on a reevaluation of which policy would be better in light of the facts'' is ``well within an agency's discretion,'' and ``[a] change in administration brought about by the people casting their votes is a perfectly reasonable basis for an executive agency's reappraisal of the costs and benefits of its programs and regulations.'' National Ass'n of Home Builders v. EPA, 682 F.3d 1032, 1038 & 1043 (D.C. Cir. 2012) (citing Fox, 556 U.S. at 514-15; quoting State Farm, 463 U.S. at 59 (Rehnquist, J., concurring in part and dissenting in part)). In conducting this review, EPA will follow each of the principles and policies set forth in the Executive Order, consistent with the EPA's statutory authority. The Agency will reevaluate whether this Rule or alternative approaches are appropriately grounded in EPA's statutory authority and consistent with the rule of law. The EPA will assess whether this Rule or alternative approaches would appropriately promote cooperative federalism and respect the authority and powers that are reserved to the States. EPA will also examine whether this Rule or alternative approaches effect the Administration's dual goals of protecting public health and welfare while also supporting economic growth and job creation. EPA will review whether this Rule or alternative approaches appropriately maintain the diversity of reliable energy resources and encourage the production of domestic energy sources to achieve energy independence and security. Additionally, EPA will assess this Rule and alternative approaches to determine whether they will provide benefits that substantially exceed their costs. In taking any actions subsequent to this review, EPA will use its appropriated funds and agency resources wisely by firmly grounding in the statute its actions to protect public health and welfare. Dated: March 28, 2017. E. Scott Pruitt, Administrator. [FR Doc. 2017-06658 Filed 4-3-17; 8:45 am] BILLING CODE 6560-50-P
![Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules 16331
Source Rule, EPA for the first time used FCC v. Fox Television Stations, Inc., 556 and encourage the production of
Section 111(b) to limit carbon dioxide U.S. 502, 515 (2009) (‘‘Fox’’); Motor domestic energy sources to achieve
emissions from new power plants. Vehicle Manufacturers Ass’n of the energy independence and security.
Due to concerns about EPA’s legal United States, Inc., et al, v. State Farm Additionally, EPA will assess this Rule
authority and record, 24 States and a Mutual Automobile Insurance Co., et al, and alternative approaches to determine
number of other parties sought judicial 463 U.S. 29, 42 (1983) (‘‘State Farm’’). whether they will provide benefits that
review of the New Source Rule in the Moreover, the Clean Air Act itself substantially exceed their costs. In
U.S. Court of Appeals for the District of authorizes EPA to reconsider its taking any actions subsequent to this
Columbia. State of North Dakota v. EPA, rulemakings. 42 U.S.C. 7607(b)(1), review, EPA will use its appropriated
No. 15–1381 (and consolidated cases) (d)(7)(B). The Clean Air Act funds and agency resources wisely by
(D.C. Cir.). The case has been fully complements the EPA’s inherent firmly grounding in the statute its
briefed, and oral argument in the D.C. authority to reconsider prior actions to protect public health and
Circuit is currently scheduled for April rulemakings by providing the agency welfare.
17, 2017. with broad authority to prescribe Dated: March 28, 2017.
II. Initiation of Review of New Source regulations as necessary. 42 U.S.C. E. Scott Pruitt,
Rule 7601(a). The authority to reconsider
Administrator.
prior decisions exists in part because
On March 28, 2017, President Trump EPA’s interpretations of statutes it [FR Doc. 2017–06519 Filed 4–3–17; 8:45 am]
issued an Executive Order establishing administers ‘‘are not carved in stone’’ BILLING CODE 6560–50–P
a national policy in favor of energy but must be evaluated ‘‘on a continuing
independence, economic growth, and basis,’’ Chevron U.S.A. Inc. v. NRDC,
the rule of law. The purpose of that Inc., 467 U.S. 837, 857–58 (1984). This
ENVIRONMENTAL PROTECTION
Executive Order is to facilitate the AGENCY
is true when—as is the case here—
development of U.S. energy resources
review is undertaken ‘‘in response to 40 CFR Part 60
and to reduce unnecessary regulatory
. . . a change in administrations.’’
burdens associated with the [FRL–9961–09–OAR]
National Cable & Telecommunications
development of those resources. The
Ass’n v. Brand X Internet Services, 545
President has directed agencies to Review of the 2016 Oil and Gas New
U.S. 967, 981 (2005). Importantly, such
review existing regulations that Source Performance Standards for
a revised decision need not be based
potentially burden the development of New, Reconstructed, and Modified
upon a change of facts or circumstances.
domestic energy resources, and Sources
Rather, a revised rulemaking based ‘‘on
appropriately suspend, revise, or
rescind regulations that unduly burden a reevaluation of which policy would be AGENCY: Environmental Protection
the development of U.S. energy better in light of the facts’’ is ‘‘well Agency (EPA).
resources beyond what is necessary to within an agency’s discretion,’’ and ‘‘[a] ACTION: Announcement of review.
protect the public interest or otherwise change in administration brought about
by the people casting their votes is a SUMMARY: The U.S. Environmental
comply with the law. The Executive
perfectly reasonable basis for an Protection Agency (EPA) announces it is
Order also directs agencies to take
executive agency’s reappraisal of the reviewing the 2016 Oil and Gas New
appropriate actions, to the extent
costs and benefits of its programs and Source Performance Standards and, if
permitted by law, to promote clean air
and clean water while also respecting regulations.’’ National Ass’n of Home appropriate, will initiate
the proper roles of Congress and the Builders v. EPA, 682 F.3d 1032, 1038 & reconsideration proceedings to suspend,
States. The Executive Order specifically 1043 (D.C. Cir. 2012) (citing Fox, 556 revise or rescind this rule.
directs EPA to review and, if U.S. at 514–15; quoting State Farm, 463 DATES: April 4, 2017.
appropriate, initiate reconsideration U.S. at 59 (Rehnquist, J., concurring in FOR FURTHER INFORMATION CONTACT: Mr.
proceedings to suspend, revise or part and dissenting in part)). Peter Tsirigotis, Sector Policies and
rescind the New Source Rule. In conducting this review, EPA will Programs Division (D205–01), U.S.
Pursuant to the Executive Order, EPA follow each of the principles and Environmental Protection Agency,
is initiating its review of the New policies set forth in the Executive Order, Research Triangle Park, NC 27711;
Source Rule and providing advanced consistent with EPA’s statutory telephone number: (888) 627–7764;
notice of forthcoming rulemaking authority. The Agency will reevaluate email address: airaction@epa.gov.
proceedings consistent with the whether this Rule and alternative SUPPLEMENTARY INFORMATION: The EPA
President’s policies. If EPA’s review approaches are appropriately grounded announces it is reviewing the 2016 Oil
concludes that suspension, revision or in EPA’s statutory authority and and Gas New Source Performance
rescission of the New Source Rule may consistent with the rule of law. EPA will Standards (Rule) 81 FR 35,824 (June 3,
be appropriate, EPA’s review will be assess whether this Rule or alternative 2016), and, if appropriate, will initiate
followed by a rulemaking process that approaches would appropriately proceedings to suspend, revise, or
will be transparent, follow proper promote cooperative federalism and rescind it.
administrative procedures, include respect the authority and powers that
appropriate engagement with the public, are reserved to the States. EPA will also I. Background
employ sound science, and be firmly examine whether this Rule or Section 111 of the Clean Air Act
nlaroche on DSK30NT082PROD with PROPOSALS
grounded in the law. alternative approaches effect the authorizes the EPA to issue nationally
EPA’s ability to revisit existing Administration’s dual goals of applicable New Source Performance
regulations is well-grounded in the law. protecting public health and welfare Standards (NSPS) limiting air pollution
Specifically, the agency has inherent while also supporting economic growth from ‘‘new sources’’ in source categories
authority to reconsider past decisions and job creation. EPA will review that cause or contribute to air pollution
and to rescind or revise a decision to the whether this Rule or alternative that may reasonably be anticipated to
extent permitted by law when approaches appropriately maintain the endanger public health or welfare. 42
supported by a reasoned explanation. diversity of reliable energy resources U.S.C. 7411(b)(1). Under this authority,
VerDate Sep<11>2014 15:42 Apr 03, 2017 Jkt 241001 PO 00000 Frm 00025 Fmt 4702 Sfmt 4702 E:\FR\FM\04APP1.SGM 04APP1](https://thefederalregister.org/doc/82_FR_16394/page/1.svg)
![16332 Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules
the EPA had regulated sulfur dioxide proper administrative procedures, powers that are reserved to the States.
emissions from natural gas processing include appropriate engagement with EPA will also examine whether this
and volatile organic chemicals (VOCs) the public, employ sound science, and Rule or alternative approaches effect the
from a number of equipment and be firmly grounded in the law. Administration’s dual goals of
operations at oil and gas facilities. 40 EPA’s ability to revisit existing protecting public health and welfare
CFR part 60 subpart OOOO. In 2016, the regulations is well-grounded in the law. while also supporting economic growth
EPA promulgated this Rule, which Specifically, the agency has inherent and job creation. EPA will review
expanded the existing NSPS by authority to reconsider past decisions whether this Rule or alternative
requiring methane reductions from and to rescind or revise a decision to the approaches appropriately maintain the
previously regulated sources and extent permitted by law when diversity of reliable energy resources
limiting methane and VOCs from other supported by a reasoned explanation. and encourage the production of
types of new oil and gas facilities never FCC v. Fox Television Stations, Inc., 556 domestic energy sources to achieve
before regulated under Section 111. U.S. 502, 515 (2009) (‘‘Fox’’); Motor energy independence and security.
Several state and industry petitioners Vehicle Manufacturers Ass’n of the Additionally, EPA will assess this
challenged this Rule in the U.S. Court United States, Inc., et al., v. State Farm Rule and alternative approaches to
of Appeals for the District of Columbia Mutual Automobile Insurance Co., et al., determine whether they will provide
alleging, inter alia, that EPA acted 463 U.S. 29, 42 (1983) (‘‘State Farm’’). benefits that substantially exceed their
arbitrarily and capriciously, and in Moreover, the Clean Air Act itself costs. In taking any actions subsequent
excess of statutory authority. See, e.g., authorizes EPA to reconsider its to this review, EPA will use its
West Virginia v. EPA, 16–1264, State rulemakings. 42 U.S.C. 7607(b)(1), appropriated funds and agency
Petitioners’ Nonbinding Statement of (d)(7)(B). The Clean Air Act resources wisely by firmly grounding in
the Issues to be Raised. These cases complements the EPA’s inherent the statute its actions to protect public
have been consolidated and are pending authority to reconsider prior health and welfare.
before the court. Many of these parties rulemakings by providing the agency
Dated: March 28, 2017.
also submitted petitions for with broad authority to prescribe
reconsideration of this Rule to EPA. The regulations as necessary. 42 U.S.C. E. Scott Pruitt,
Agency has not yet acted on these 7601(a). The authority to reconsider Administrator.
petitions. prior decisions exists in part because [FR Doc. 2017–06658 Filed 4–3–17; 8:45 am]
EPA’s interpretations of statutes it BILLING CODE 6560–50–P
II. Initiation of Review of This Rule
administers ‘‘are not carved in stone’’
On March 28, 2017, President Trump but must be evaluated ‘‘on a continuing
issued an Executive Order establishing basis,’’ Chevron U.S.A. Inc. v. NRDC, DEPARTMENT OF VETERANS
a national policy in favor of energy Inc., 467 U.S. 837, 857–58 (1984). This AFFAIRS
independence, economic growth, and is true when—as is the case here—
the rule of law. The purpose of that review is undertaken ‘‘in response to 48 CFR Parts 816, 828 and 852
Executive Order is to facilitate the . . . a change in administrations.’’ RIN 2900–AP82
development of U.S. energy resources— National Cable & Telecommunications
including oil and gas—and to reduce Ass’n v. Brand X Internet Services, 545 Revise and Streamline VA Acquisition
unnecessary regulatory burdens U.S. 967, 981 (2005). Importantly, such Regulation To Adhere to Federal
associated with the development of a revised decision need not be based Acquisition Regulation Principles
those resources. The President has upon a change of facts or circumstances. (VAAR Case 2014–V002—Parts 816,
directed agencies to review existing Rather, a revised rulemaking based ‘‘on 828)
regulations that potentially burden the a reevaluation of which policy would be
development of domestic energy better in light of the facts’’ is ‘‘well AGENCY: Department of Veterans Affairs.
resources, and appropriately suspend, within an agency’s discretion,’’ and ‘‘[a] ACTION: Proposed rule; correction.
revise, or rescind regulations that change in administration brought about
unduly burden the development of U.S. SUMMARY: The Department of Veterans
by the people casting their votes is a
energy resources beyond what is Affairs (VA) is correcting a proposed
perfectly reasonable basis for an
necessary to protect the public interest rule regarding Federal Acquisition
executive agency’s reappraisal of the
or otherwise comply with the law. The Regulation Principles. This correction
costs and benefits of its programs and
Executive Order also directs agencies to addresses minor technical errors in the
regulations.’’ National Ass’n of Home
take appropriate actions, to the extent proposed rule.
Builders v. EPA, 682 F.3d 1032, 1038 &
permitted by law, to promote clean air 1043 (D.C. Cir. 2012) (citing Fox, 556 DATES: April 4, 2017. The comments
and clean water while also respecting U.S. at 514–15; quoting State Farm, 463 due date remains May 12, 2017.
the proper roles of Congress and the U.S. at 59 (Rehnquist, J., concurring in ADDRESSES: Written comments may be
States. This Executive Order specifically part and dissenting in part)). submitted through
directs EPA to review and, if In conducting this review, EPA will www.Regulations.gov; by mail or hand-
appropriate, initiate proceedings to follow each of the principles and delivery to the Director, Regulation
suspend, revise or rescind this Rule. policies set forth in the Executive Order, Policy and Management (00REG),
Pursuant to the Executive Order, EPA consistent with the EPA’s statutory Department of Veterans Affairs, 810
is initiating its review of this Rule and authority. The Agency will reevaluate Vermont Avenue NW., Room 1068,
nlaroche on DSK30NT082PROD with PROPOSALS
providing advanced notice of whether this Rule or alternative Washington, DC 20420; or by fax to
forthcoming rulemaking proceedings approaches are appropriately grounded (202) 273–9026. Comments should
consistent with the President’s policies. in EPA’s statutory authority and indicate that they are submitted in
If EPA’s review concludes that consistent with the rule of law. The EPA response to ‘‘RIN 2900–AP82–Revise
suspension, revision or rescission of this will assess whether this Rule or and Streamline VA Acquisition
Rule may be appropriate, EPA’s review alternative approaches would Regulation to Adhere to Federal
will be followed by a rulemaking appropriately promote cooperative Acquisition Regulation Principles.’’
process that will be transparent, follow federalism and respect the authority and Copies of comments received will be
VerDate Sep<11>2014 15:42 Apr 03, 2017 Jkt 241001 PO 00000 Frm 00026 Fmt 4702 Sfmt 4702 E:\FR\FM\04APP1.SGM 04APP1](https://thefederalregister.org/doc/82_FR_16394/page/2.svg)
Document Created: 2017-04-03 23:53:28
Document Modified: 2017-04-03 23:53:28
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Announcement of review. | |
| Dates | April 4, 2017. | |
| Contact | Mr. Peter Tsirigotis, Sector Policies and Programs Division (D205-01), U.S. Environmental Protection Agency, Research Triangle Park, NC 27711; telephone number: (888) 627-7764; | |
| FR Citation | 82 FR 16331 |
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