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Unified Agenda 2060-AP76

Oil and Natural Gas Sector--New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants

Summary

New Source Performance Standards (NSPS) regulate criteria pollutants from new stationary sources. Two NSPS (subparts KKK and LLL) for the oil and natural gas industry were promulgated in 1985. Section 111 of the Clean Air Act (CAA) requires that NSPS be reviewed every 8 years and revised as appropriate. National Emission Standards for Hazardous Air Pollutants (NESHAP) regulate hazardous air pollutants (HAP) from new and existing stationary sources. Two NESHAP (subparts HH and HHH) for the oil and natural gas industry were promulgated in 1999. Section 112 of the CAA requires that NESHAP be reviewed every 8 years and revised as appropriate. In addition, section 112(f) requires that each category regulated under section 112(d) be reviewed to ensure that such regulations provide for an ample margin of safety to protect public health (i.e., address "residual risk" for each category). This action will include the required reviews under sections 111 and 112. Because the existing regulations are narrow in scope, the reviews will include consideration of broadening the scope of operations and emission points covered by the NSPS and MACT.

Statement of need

Not yet determined.

Legal Basis

Not yet determined.

Alternatives

Not yet determined.

Costs and Benefits

For the NSPS, the annual costs are estimated at $738 million. After taking into account the value of the natural gas and condensate recovered, there would be a net savings of $45 million annually. For the NESHAP, the annual costs of compliance will be $16 million. EPA estimates benefits for the VOCs 540,000 tons per year, or about 25 percent reduction overall; for methane, 3.4 million tpy, which is equal to 65 million metric tons of carbon dioxide equivalent (CO2e), which is a reduction of about 26 percent; and for air toxics, 38,000 tons, or a reduction of nearly 30 percent.

Risks

Not yet determined.

Timeline

3 actions from August 23rd, 2011 to March 2012

  • August 23rd, 2011
  • August 26th, 2011
  • March 2012
    • Final Action

Contacts

Federal Register Activity

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