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On June 3, 2016, the Environmental Protection Agency (EPA) published a final rule titled "Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources; Final Rule." Following promulgation of the final rule, the Administrator received petitions for reconsideration of several provisions of the rule. The EPA is addressing those specific reconsideration issues in a separate proposal. A number of states and industry associations sought judicial review of the rule, and the litigation is currently being held in abeyance. On March 28, 2017, newly elected President Donald Trump issued Executive Order 13783 titled "Promoting Energy Independence and Economic Growth," which directs 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. In 2017, the EPA provided notice to initiate the review of the 2016 rule and stated that, if appropriate, it will initiate proceedings to suspend, revise or rescind the rule. Subsequently, in a notice dated June 5, 2017, the EPA further committed to look broadly at the entire 2016 rule. The purpose of this action is to propose amendments to address key policy issues, such as the regulation of greenhouse gases, in this sector.

Statement of Need:

On June 3, 2016, the EPA published a final rule titled "Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources; Final Rule." On March 28, 2017, newly elected President Donald Trump issued Executive Order 13783 titled "Promoting Energy Independence and Economic Growth," which directs 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. In 2017, the EPA provided notice to initiate the review of the 2016 rule and stated that, if appropriate, it will initiate proceedings to suspend, revise or rescind the rule. Subsequently, in a notice dated June 5, 2017, the EPA further committed to look broadly at the entire 2016 rule. The purpose of this action is to propose amendments to address key policy issues, such as the regulation of greenhouse gases, in this sector. This proposal will solicit comments and/or information from the public regarding the Agency's proposed requirements and options under consideration. These amendments are anticipated to remove regulatory duplication in an effort to reduce burden.

Summary of the Legal Basis:

The review of the 2016 OOOOa rule is an exercise of the EPA's authority under section 111(b)(1)(B), section 307(d)(7)(B) and section 301(a) of the Clean Air Act.

Alternatives:

For the 2016 OOOOa review proposal, we anticipate soliciting comment on a lead policy option for the regulation of greenhouse gases and the sector regulatory structure and an alternative policy option under consideration.

Anticipated Costs and Benefits:

These values are estimates that are likely to change. Note all values at 7 percent discount rate in 2016 dollars. Total Present Value of Cost (2019 through 2025): $101 million Costs Annually: $18 million Forgone Benefits (2019 through 2025); $13 million Forgone Benefits Annually: $2.3 million

Risks:

We do not anticipate any risks to health related to this action.