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EPA/OAR RIN: 2060-AT90 Publication ID: Fall 2018 
Title: Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources Review 
Abstract:

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.

 
Agency: Environmental Protection Agency(EPA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: Deregulatory 
CFR Citation: 40 CFR 60   
Legal Authority: 42 U.S.C. 7401 et seq., Clean Air Act   
Legal Deadline:  None

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.

Timetable:
Action Date FR Cite
NPRM  12/00/2018 
Final Rule  06/00/2019 
Additional Information: Docket #:EPA-HQ-OAR-2017-0757
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Information URL: https://www.epa.gov/stationary-sources-air-pollution/clean-air-act-standards-and-guidelines-oil-and-natural-gas-industry  
Sectors Affected: 211111 Crude Petroleum and Natural Gas Extraction; 211112 Natural Gas Liquid Extraction; 221210 Natural Gas Distribution; 486110 Pipeline Transportation of Crude Oil; 486210 Pipeline Transportation of Natural Gas 
RIN Data Printed in the FR: No 
Agency Contact:
Amy Hambrick
Environmental Protection Agency
Office of Air and Radiation
109 T.W. Alexander Drive, Mail Code E143-05,
Research Triangle Park, NC 27711
Phone:919 541-0964
Fax:919 541-0516
Email: hambrick.amy@epa.gov